Icici Mutual Fund Equity by xxu15159

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									Wealth Creation for you and
 your Customers via SIP’s
      Where can one invest ??
• Postal Savings
• RBI bonds / GOI bonds ( G secs )‫‏‬
• PSU/ F I bonds - NHAI/ REC/ NABARD/ IDBI /
  ICICI etc
• Fixed Deposit - Bank / Co
• Shares & Stocks , Derivatives
• Commodities
• Real Estate
      Cost of Living
     Items                                  1987               1997
                                            ( Rs )‫‏‬           ( Rs. )‫‏‬
Colgate toothpaste                           8.05              18.90
      ( 100 gm tube )‫‏‬                                         ( 8.91 % )‫‏‬



   Hamam Soap                                3.05              7.85
                                                               ( 9.92 % )‫‏‬



   Masala Dosa                               3.50             14.00
                                                               ( 14.87 % )‫‏‬



      Petrol                                 7.99             25.48
        ( per litre )‫‏‬                                         ( 12.30 % )‫‏‬



  L P G Cylinder                            56.15             137.85
                                                               ( 9.40 % )‫‏‬



Zodiac men’s shirt                        225.00              510.00
                                                               ( 8.53 % )‫‏‬



                         Source : Readers Digest – Nov 1997
              Cost of Living
      Items                            1997                            2017
                                       ( Rs )‫‏‬                        ( Rs. )‫‏‬
Colgate toothpaste                      18.90                         104.00
      ( 100 gm tube )‫‏‬


   Hamam Soap                            7.85                           52.00

   Masala Dosa                          14.00                         224.00

      Petrol                            25.48                          259.12
        ( per litre )‫‏‬


  L P G Cylinder                      137.85                          830.85

Zodiac men’s shirt                    510.00                         2620.27

                 Assuming inflation to grow at the same rate during 1987-97
INFLATION ROBS YOUR PURCHASING POWER
        (Assuming inflation @ 8% p.a.)‫‏‬


      Rs. 10,000 today                      217,200




                               100,600

                   46,600
      21,500



  10 years     20 years     30 years     40 years
                   Why equities are the best bet for long term. ….

25%
                                                                                  20.16%
20%
                 real growth = growth - inflation
                                                                 14.47%
15%
                                                                                       10.97%
         9.19%                                   9.74%
10%                             7.62%
                                                                          5.28%
5%
                                                         0.55%
                                        -1.57%
0%
           Inflation               Gold           Bank FD        Company FD        Equities
-5%




Source : RBI Report(1997-98)‫‏‬
Analyzed on 15 Year Data
EQUITIES ARE THE BEST LONG TERM BET
% OF STUDIED PERIOD IN WHICH


  Other investment                                                14%
  outperformed                44%                37%



  Stocks
  outperformed
                              56%                63%              86%


                     1 year             3 year           5 year
Source : RBI Report on Currency and Finance (1997-98)‫‏‬
        BSE Sensitive Index of Equity Prices - BSE
           EQUITY = LOSS ?


               SENSEX 1991-2006

   IT IS UP 90 TIMES IN 26 YEARS ^




Source : Bloomberg   ^ Since BSE Sensex Inception to June 13,2006
EQUITY = WEALTH
           EARNINGS DRIVE RETURNS
COMPANY    CAGR PAT PRICE       INVESTING IS SIMPLE
           10 YRS   10 YRS
Reliance   22%      26%
                                ASK TWO QUESTIONS?
SBI        20%      18%
Bharti     333%     62%
Infosys    65%      73%         WILL THESE COMPANIES BE
Ranbaxy    16%      23%
                             THERE TEN YEARS FROM NOW
HLL        20%      12%
ITC        27%      24%
Tisco      22%      10%         IF YES,WILL PROFITS THEN BE
Hero Honda 46%      45%      HIGHER THAN TODAY?
HDFC       20%      25%
                 MUTUAL FUND = LOSS ?


                      Prudential ICICI Growth Plan 1999-2006


       NAV IS UP 6 TIMES IN 8 YEARS
                  From Jan 1,1999 to June 9,2006




Past performance is not an indicator of future performance. It may or may not be sustained in the future
                 MUTUAL FUND = LOSS


              REMEMBER THE TECH FUNDS




                  Prudential ICICI Technology Fund



Past performance is not an indicator of future performance. It may or may not be sustained in the future
                 MUTUAL FUND = LOSS


              REMEMBER THE TECH FUNDS




                    Prudential ICICI Technology Fund


Past performance is not an indicator of future performance. It may or may not be sustained in the future
     ICICI Prudential
Systematic Investment Plan
    A recurring deposit
account with a mutual fund
             What is an SIP?
• Investing a fixed sum, regularly in a
  mutual fund

• Allows one to buy units in a particular
  scheme on a given date every month

• Similar to regular savings schemes like a
  recurring deposit
                                  Benefits of Cost Averaging
                                                           Avg. Cost vs Nav since inception~
90

80                                 Avg Cost                           Nav(Rs.)

70

60

50

40
30

20

10

 0
                                Jul-96




                                                                                                                 Jan-02




                                                                                                                                                              Jan-05
                       Dec-95




                                                                    Dec-98




                                                                                                                                            Nov-03




                                                                                                                                                                                         Nov-06
              May-95




                                                           May-98




                                                                                                        May-01




                                                                                                                                                     Jun-04
                                         Mar-97




                                                                                      Mar-00




                                                                                                                                   Mar-03
     Oct-94




                                                  Oct-97




                                                                                               Oct-00
                                                                             Aug-99




                                                                                                                          Aug-02




                                                                                                                                                                       Aug-05

                                                                                                                                                                                Apr-06
 Past performance may or may not be sustained in future
 ~Assume a hypothetical investment of Rs.1000 every month in PruICICI Power since inception

                                         An SIP reduces the average cost of
                                          investment in fluctuating markets
     The above is for illustration purposes only
                      Lump sum investment vs. SIP
  The direction of the markets is unpredictable.
                  Rs.80000 invested in lumpsum at inception in Pru ICICI
                        Tech vs. Rs.1000 invested every month
280000                       (for 82 months) since inception
                                                                                                                                                                             247329
                                                                                                                                                                                                      Performanc
240000
                                                                                                                                                                                                      e of lump
200000
                                                                                                                                                                                                      sum
160000
                                                                                                                                                                                                      investment
120000                                                                                                                                                                     107172
                                                                                                                                                                                                      depends on
80000
                                                                                                                                                                                                      the price at
40000
                                                                                                                                                                                                      which they
     0                                                                                                                                                                                                are bought
                           Nov-00




                                                      Nov-01




                                                                                 Nov-02




                                                                                                            Nov-03




                                                                                                                                       Nov-04




                                                                                                                                                                  Nov-05




                                                                                                                                                                                             Nov-06
                  Jul-00




                                             Jul-01




                                                                        Jul-02




                                                                                                   Jul-03




                                                                                                                              Jul-04




                                                                                                                                                         Jul-05




                                                                                                                                                                                    Jul-06
         Mar-00




                                    Mar-01




                                                               Mar-02




                                                                                          Mar-03




                                                                                                                     Mar-04




                                                                                                                                                Mar-05




                                                                                                                                                                           Mar-06
                                                        Lumpsum Invstt                                                    Sip Invstt

                    Past performance may or may not be sustained in future

          An SIP reduces these risks by spreading the
          investments over a longer period of time, at
                  various levels of the market
    The above is for illustration purposes only
                     SIP MAKES SENSE


                                   FUND RETURN –0.74 %
                                     SIP RETURN 36.29 %
                               MAR 7,2000 TO JAN 8,2004




                              Prudential ICICI Growth Plan



Past performance is not an indicator of future performance. It may or may not be sustained in the future
  Sensible Equity Investing for Long
          Rs.1000 invested in Sensex via SIP on the first day of every month for
  14000
                Term                    332 months
                             (from April '79 to November '06)
                                                                                   10

                                                                                   9
  12000
                                                                                   8
                                     Index     Units bought
  10000                                                                            7

                                                                                   6
  8000
                                                                                   5
  6000
                                                                                   4

  4000                                                                             3

                                                                                   2
  2000
                                                                                   1

     0                                                                             0
          Dec-80




          Dec-85




          Dec-90




          Dec-95




          Dec-00




          Dec-05
          Aug-82




          Aug-87




          Aug-92




          Aug-97




          Aug-02
          Feb-80

          Oct-81

          Jun-83

          Feb-85

          Oct-86

          Jun-88

          Feb-90

          Oct-91

          Jun-93

          Feb-95

          Oct-96

          Jun-98

          Feb-00

          Oct-01

          Jun-03

          Feb-05

          Oct-06
          Apr-79




          Apr-84




          Apr-89




          Apr-94




          Apr-99




          Apr-04
Total amount invested as of Nov ’06 : Rs.3,32,000
Mkt Value of investment as of Nov 01 ’06: Rs.74,56,554
                             SIP vs Lump Sum Investment

      Returns on
      Lump Sum
      investment




Returns on SIP




Mutual Fund investments are subject to market risks Please read the offer documents carefully before investing. Past performance may or may not be sustained in
                                                                             future
ICICI Pru Dynamic Plan
Inception : Oct 2002
Diversified Equity Scheme

Rs 10,000 Invested @ Inception : Today Rs 79,490

Rs 1000 invested as SIP since Inception :

59 Installments : Cost Value Rs 59,000

Today’s Value : Rs . 1,80,534 = 48.90% XIRR Retn
ICICI Pru Emerging Star Fund
Inception : Oct 2004
Diversified MID Cap fund

 Rs 10,000 Invested @ Inception : Today Rs.34,530


Rs 1000 Invested as SIP since Incpetion

36 installments : cost Value Rs 36,000

Today’s Value : Rs 64,418 retn 44.11 % XIRR
 ICICI Pru Infrastructure Fund
 Inception : Aug 2005
 Infrastructure Theme Fund


 Rs 10,000 invested @ inception : Today Rs 27,120

Rs 1000 invested as SIP since Inception :

25 installments : cost Value Rs, 25,000

Today’s Value : Rs 38,093 = 48.10% XIRR Retn
  Thank you
Happy Investing

								
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