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How It can Happen |
Make crores and crores of rupee |
- Top Diversified equity mutual funds have given compounded annual return of more than 35% per annum for the last 10 years.
- The annual growth rate of reputed Indian companies is 20-30% p.a.
- Diversified Equity Mutual funds invest their money in Indian and multinational companies engaged in manufacturing and services industries. The demand for their products will go on increasing every year because of increase in population and increase in purchasing power in India. The value of their shares will go up when companies make more money, In turn the value of investment made by the mutual funds in these companies will also go up. Hence the investor who has invested in these mutual fund would get handsome returns.
- Your money will be invested by the mutual funds in number of reputed Indian and multinational companies engaged in different industries, hence your risk is reduced as you “do not put all your eggs in one basket”
- Indian economy is on the growth path according to Indian and international economists
- Your investment will be handled by highly experienced and qualified mutual fund managers who have excellent track record
Disclaimer
(a) The calculation and growth chart is just indicative. Your amount is likely to grow to more than Rs. 1 crore or may remain less than Rs. 1 crore, depending upon future performance of mutual funds in which you choose to invest. Read their offer documents before investing
(b) The example above is merely illustrative in nature and should not be construed as investment advice by Bajaj capital. The trend of such returns may/ may not be uniform during the SIP period and / or in future. It does not in any manner imply/ suggest performance of any scheme of any mutual fund.
(c) Mutual Funds do not assure any fixed return on your investment and neither past performance is a guarantee for future return. But since Top -Performing Mutual Funds have been giving return upto 35% per annum for the last 10 years, they are likely to show good performance in future also. |
No other investment in india offers so
many unique features as mutual funds
SEBI Regulation:
Mutual fund in India are governed by SEBI (Securities Exchange Board of India)
Tax free return
According to current income-tax rules dividends received from mutual funds are tax free as compared to a Bank Recurring Deposit, where interest is taxable. Also, when you get lump sum amount, you do not have to pay any tax as long-term capital gains from Mutual Funds are tax-free as per current tax rules.
Transparency
Quarterly statement will be sent to you by the mutual funds showing you as to where your money is invested.
Flexibility: Your total control
It is your money, hence you should keep on monitoring the performance of the mutual funds in which you chose to invest. If need be you can shift your investment from one mutual fund to another which is performing better.
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Patience pays
- A seed needs time and patience to become a fruit tree.
- A child needs time and patience to become an adult.
- SIP of Diversified Equity Mutual Funds (Growth Schemes) need time and patience to grow into huge amount. SIPs reward only long term investors because of rupee cost averaging and power of compounding.
- In short-term SIPs of 6 month or 1 year, return can be negative also.
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*Calculated at an expected 18% rate of return per annum, though the average return for the last 10 years has been more than 35% in some top performing equity funds
This is a hypothetical example Showing power of compound interest and benefit of long-term equity investment |
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It was never so easy to accumulate
crores of rupees in the past… as it is NOW
In the past, Equity market was not wide, India growth story was not there, Indian companies were not growing so fast nationally and internationally. Mutual Funds and their innovative schemes were not there, tax-free investment options were not there, computerized calculations and compounding of return was not possible. With all these facilities now available, every investor in Diversified Equity Mutual Funds can hope to accumulate crores of rupees over a period of time. |
SIP IS THE SAVIOUR FOR INVESTOR
Systematic investment plan (SIP) in the growth schemes of Diversified Equity Mutual Funds have proved to be the best and time-tested method for wealth creation and for earning higher return. Inspite of various depressions in the stock market for the last 10 years, average return by top-performing equity mutual funds was 35%. SIP saves the investors from the jerks and jolts of the share market fluctuations. SIP has proved to be saviour for the long term investors. |
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“Top Ranking Indian Mutual Funds gave highest returns for the last 10 years: up to 35% PA.” Times of India, News Delhi, Date:-20-11-06
Risk Factors:- All investments in mutual funds are subject to market risks. Please read offer document of the Mutual Fund before investing. The Net Asset value (NAV) of the Scheme(s) may go up or down depending upon the factors and forces affecting the stock markets. There can be no assurance that the objectives of the Scheme(s) will be achieved.
#Past performance of the Sponsor, AMC, Mutual Fund or any associates of the sponsor /AMC does not indicate the future performance of the scheme(s) of the mutual Funds.
*Growth charts are worked out @18% p.a. assumed return in diversified equity mutual funds Although for the last 10 years return of diversified equity funds has been around 35% p.a in top performing equity mutual funds. Charts shown in this booklet give a hypothetical example indicating power of compounding, rupee cost averaging and benefit of long term equity investments. |
