COMMON

CONCERNS
OF INVESTORS RELATED
TO EQUITY INVESTMENT 

[Link]
Concern 1

Equity Markets are 
RISKY, I want Safety 
First.

My Bank FD is giving 
me 9% (Guaranteed), 
Why should I invest 
in equity? 

[Link]
What Is The Meaning Of Safety?

PRESERVING 
THE CAPITAL 

OR 

PRESERVING 
THE PURCHASING 
POWER

[Link]
Real Life Example

[Link]
 Key Objective of Investing : 
Enhancing Purchasing Power

Over FY 1979–2015 CPI inflation has been 8.4%, eroding purchasing power of Rupee by 94%

Source: Bloomberg, MOAMC internal analysis, Data as on31st July 2015

[Link]
Key Objective of Investing : 
Enhancing Purchasing Power

Current Value CAGR(%) Times

Sensex ( Cum div.) 48292 18.55% 482.92
Sensex 28115 16.79% 281.15
Gold 3522 10.75% 40.85
Fixed Deposit 1866 7.97% 16.19

Source: Bloomberg, MOAMC internal analysis, Data as on 31st July 2015
Note: The information herein is used for comparison purpose and is illustrative and is not sufficient and shouldn’t be used for the
development or implementation of an investment strategy. It should not be construed as investment advice to any party.
Past performance may or may not be sustained in future.
[Link]
 Key Objective of Investing : 
Enhancing Purchasing Power

Equities significantly enhance purchasing power of portfolios

Current  CAGR 
Value (%) Times
Sensex 1568 7.87% 13
Gold 196 1.87% 2.51
FD 104 0.11% 0.99

Source: Bloomberg, MOAMC internal analysis, Data as on 31st July 2015
Note: The information herein is used for comparison purpose and is illustrative and is not sufficient and shouldn’t be used for the development or 
implementation of an investment strategy. It should not be construed as investment advice to any party.
Past performance may or may not be sustained in future.
[Link]
 Reality VS illusion

Normally House hold expense gets double at 
every 5 years due to CPI and lifestyle inflation.

Today’s house hold expense of 
Rs 25,000 will be Rs. 2,00,000, after 
15 years Money in your FD will become 
Rs.73971*

Biggest Risk in Equity market
“Not investing into it”
FD interest is taxable, while equity investment after 
one year of investment, capital gain tax is NIL
*7.5% interest is assumed in Bank FD
[Link]
Concern 2

Market is very High, 
It should correct.

I will wait for correction.

[Link]
 Time Is More Important

Name Mr. Sharma Mr. Mehta GREAT MOMENTS IN 

Investment Started at Age 19 26
SCIENCE: 
Annual Investment 50000 50000
EINSTEIN DISCOVERS 
Investment continued till Age 25 65
Investment Held till age 65 65 THAT TIME IS ACTUALL 
Total Investment 350000 2000000 MONEY.
Wealth At age 65* 52572371 42957119

*12% rate of return Assumed
[Link]
 Effect Of Compounding Vs. Time

“The most powerful force in the 
universe is the power of 
Compound.“
Value of Investment
15000/­ Per month 
Albert Einstein
Savings A/c Bank FD Equity Mutual Fund
No of Years 4% 9% 12% 15% 18%
2 3,75,390 3,95,773 4,08,648 4,22,032 4,35,945
5 9,97,800 11,39,847 12,37,295 13,45,225 14,64,868
10 22,16,110 29,24,485 34,85,086 41,79,859 50,43,863
15 37,03,662 57,18,657 75,68,640 1,01,52,946 1,37,88,133
20 55,19,958 1,00,93,440 1,49,87,219 2,27,39,325 3,51,52,308
25 77,37,650 1,69,42,955 2,84,64,526 4,92,61,106 8,73,49,682
30 1,04,45,444 2,76,67,111 5,29,48,707 10,51,47,309 21,48,79,338

Savings and Bank FD return is assumed at 4% and 9% respectively. For Equity MF various assumed return scenario.

[Link]
More Time = More Wealth

™ It’s Not Timing It’s Time 
Into The Market Which 
Is More Important.

™ Historically, those who 
stayed invested with 
their invested have 
made big fortunes.

[Link]
Behavior Gap

™ People who constantly try to  ™By constantly trying to time the 
time the market end up getting  market, chances of losing those 
lesser return than the actual  few days are very high.
asset class performance
™ “World is waiting for market to 
™ Major returns in equity market is  crash, market is waiting for your 
delivered in  few days.  passion to crash.”

[Link]
Risk Of Missing Few Best Days

Valuation as on 14th July 2014 of Rs 100000 invested for 10 years

Current  Impact of Best Days missed
Product
Value
2 days 5 days 10 days 20 days 30 days 40 days

Sensex 524,199 412,801 337,181 251,906 149,353 95,781 65,713

Birla Sun Life Equity Fund 769,417 611,452 512,141 388,639 251,137 173,938 125,811

DSP BlackRock Opportunities Fund  646,632 570,762 466,110 357,449 235,689 168,631 125,659

HDFC Equity Fund  875,144 768,618 645,569 498,366 324,265 230,057 168,017

[Link]
 What if you missed BEST days?

Value of Rs 1,00,000 invested before 10 years*

*as on 14th July 2014
[Link]
What if you missed BEST days?

Value of Rs 1,00,000 invested before 10 years*

*as on 14th July 2014
[Link]
Concern 3

Market has corrected 
and it will correct 
further.

I will wait till the things 
gets settled down.

[Link]
Emotion of FEAR

• The feeling of FEAR is common 
when market corrects.

• Emotion of FEAR sometimes 
overpowers the LOGIC.

• FEAR leads to the irrational 
decisions.

[Link]
[Link]
Every BULL run has witnessed Corrections

Corrections during Bull Market of 2003­2007

There were around 5 Correction 
of more than10%  of magnitude 
during the journey of Sensex 
from 6k to 21k.

The Biggest one was of 30% DIP.

Corrections are not predictable, 
we should not waste time in 
worrying.

Keep investing, Because..

“In investing, what is comfortable is rarely profitable.”
Robert Arnott

[Link]
 TURNING POINT on Road 
is PART of  Road NOT END
of it.

Similarly

CORRECTION in Stock 
Market is PART of Stock 
Market NOT END of it.

[Link]
Return After Correction

DON’T MISS THIS 
INVESTMENT 
OPPERTUNITY.

IT’S TIME TO ADD 
MORE IN

[Link]
Concern 4

Let The More Clarity 
Come, Then I Will 
Invest

“WALL OF WORRY”

[Link]
Market Doesn't’t Wait For Clarity

™ Market always reacts  in advance.

™ It goes up or down before the actual event takes place.

™ Waiting for the clarity may result in paying the 
premium and lesser returns.

™ So when odds are in favor of investment, don’t wait for 
the exact clarity.

™ People who were waiting for election to get over have 
missed the rally of 6000 points in Sensex.

[Link]
 Cost Of Clarity

Period Market Indicator Wall of Worry Sensex

Modi appointed as BJP's PM 
2013: Sept But there is infighting within BJP 19733
Candidate
BJP wins assembly election of 4 
2013: Dec But these are only Hindi heartlands 21326
states
Opinion polls accord majority to  But opinion polls were wrong in 
2014: March 21920
NDA 2004 & 2009

2014: April Heavy Campaigning by Modi But polarization of votes will happen 22702

2014:  But exit polls always underestimates 
Exit Polls gives NDA majority 23551
Early may Congress
But BJP does not have majority in 
2014: May BJP alone gets majority 24122
upper house

Market don’t care for “Wall of Worry”

[Link]
Concern 5

I don’t want to invest as the last 
3 years returns are not good.

Every time I invest in Equity 
Fund looking at performance,
but after my investments 
scheme performance 
deteriorates.

Investing based on past performance 
only is as risky as driving a car while 
looking into rear view mirror only.
[Link]
 Historical Returns

EPS for  PE (based 
BSE Sensex ( as 
Date financial  on EPS for  1 year 2 year 3 years 4 years 5 years 6 years 7 years 8 years 9 years 10 years 12 years 15 years
on Dec 31)
year FY)

24‐Dec‐93 3346 129 25.94

23‐Dec‐94 3927 181 21.70 17.36%
22‐Dec‐95 3110 250 12.44 ‐20.79% ‐3.58%
24‐Dec‐96 3085 266 11.60 ‐0.81% ‐11.36% ‐2.67%
31‐Dec‐97 3659 291 12.57 18.60% 8.46% ‐2.33% 2.26%
31‐Dec‐98 3055 278 10.99 ‐16.50% ‐0.48% ‐0.59% ‐6.08% ‐1.80%
30‐Dec‐99 5006 280 17.88 63.83% 16.97% 17.51% 12.63% 4.97% 6.94%
29‐Dec‐00 3972 216 18.39 ‐20.65% 14.02% 2.77% 6.52% 5.01% 0.19% 2.48%
31‐Dec‐01 3262 236 13.82 ‐17.87% ‐19.27% 2.21% ‐2.83% 1.12% 0.80% ‐2.61% ‐0.32%
31‐Dec‐02 3377 272 12.42 3.52% ‐7.79% ‐12.29% 2.54% ‐1.59% 1.52% 1.18% ‐1.87% 0.10%
31‐Dec‐03 5839 348 16.78 72.89% 33.78% 13.70% 3.92% 13.83% 8.10% 9.54% 8.19% 4.51% 5.73%
31‐Dec‐04 6603 450 14.67 13.08% 39.82% 26.49% 13.55% 5.69% 13.70% 8.80% 9.98% 8.72% 5.33%
30‐Dec‐05 9398 523 17.97 42.33% 26.87% 40.65% 30.28% 18.80% 11.07% 17.41% 12.51% 13.17% 11.69% 8.99%
29‐Dec‐06 13787 718 19.20 46.70% 44.50% 33.16% 42.14% 33.41% 23.05% 15.57% 20.73% 15.88% 16.15% 11.03%
31‐Dec‐07 20287 833 24.35 47.15% 21.30% 29.24% 36.53% 43.13% 35.61% 26.23% 19.12% 23.41% 18.68% 16.91%
31‐Dec‐08 9647 820 11.77 ‐52.45% ‐31.04% ‐11.22% 9.94% 10.56% 19.12% 16.75% 11.73% 7.56% 12.18% 9.97% 7.31%
31‐Dec‐09 17465 830 21.04 81.03% ‐7.22% ‐4.87% 16.76% 21.48% 20.03% 26.46% 23.33% 17.89% 13.31% 13.91% 10.46%
31‐Dec‐10 20509 1060 19.35 17.43% 45.80% 0.36% 10.44% 16.89% 20.79% 19.66% 25.29% 22.66% 17.84% 17.19% 13.40%
30‐Dec‐11 15455 1140 13.56 ‐24.64% ‐5.93% 17.01% ‐6.58% 2.31% 8.64% 12.92% 12.94% 18.41% 16.83% 9.85% 11.34%
31‐Dec‐12 19427 1196 16.24 25.70% ‐2.67% 3.61% 19.12% ‐0.86% 5.88% 10.93% 14.44% 14.29% 19.12% 14.14% 11.77%
31‐Dec‐13 21117 1326 15.93 8.70% 16.89% 0.98% 4.86% 16.96% 0.67% 6.28% 10.65% 13.79% 13.72% 16.84% 13.76%
31‐Dec‐14 27499 1404 19.59 30.22% 18.98% 21.18% 7.61% 9.50% 19.07% 4.44% 9.01% 12.67% 15.33% 19.10% 12.03%
Min ‐52.45% ‐31.04% ‐12.29% ‐6.58% ‐1.80% 0.19% ‐2.61% ‐1.87% 0.10% 5.33% 8.99% 7.31%
Max 81.03% 45.80% 40.65% 42.14% 43.13% 35.61% 26.46% 25.29% 23.41% 19.12% 19.10% 13.76%
Average 15.95% 9.90% 9.21% 11.31% 11.73% 12.20% 11.74% 12.55% 13.31% 13.83% 13.79% 11.44%

• Sensex is taken as on particular day( i.e last day of December of each calendar year.
• EPS is taken for the respective financial year. [Link]
 Future Returns

PE 
EPS for 
BSE Sensex (  (based 
Date financial  1 year 2 year 3 years 4 Years 5 years 6 years 7 years 8 years 9 years 10 years 12 years 15 years
as on Dec 31) on EPS 
year
for FY)
24‐Dec‐93 3346 129 25.94 17.36% ‐3.58% ‐2.67% 2.26% ‐1.80% 6.94% 2.48% ‐0.32% 0.10% 5.73% 8.99% 7.31%
23‐Dec‐94 3927 181 21.70 ‐20.79% ‐11.36% ‐2.33% ‐6.08% 4.97% 0.19% ‐2.61% ‐1.87% 4.51% 5.33% 11.03% 10.46%
22‐Dec‐95 3110 250 12.44 ‐0.81% 8.46% ‐0.59% 12.63% 5.01% 0.80% 1.18% 8.19% 8.72% 11.69% 16.91% 13.40%
24‐Dec‐96 3085 266 11.60 18.60% ‐0.48% 17.51% 6.52% 1.12% 1.52% 9.54% 9.98% 13.17% 16.15% 9.97% 11.34%
31‐Dec‐97 3659 291 12.57 ‐16.50% 16.97% 2.77% ‐2.83% ‐1.59% 8.10% 8.80% 12.51% 15.88% 18.68% 13.91% 11.77%
31‐Dec‐98 3055 278 10.99 63.83% 14.02% 2.21% 2.54% 13.83% 13.70% 17.41% 20.73% 23.41% 12.18% 17.19% 13.76%
30‐Dec‐99 5006 280 17.88 ‐20.65% ‐19.27% ‐12.29% 3.92% 5.69% 11.07% 15.57% 19.12% 7.56% 13.31% 9.85% 12.03%
29‐Dec‐00 3972 216 18.39 ‐17.87% ‐7.79% 13.70% 13.55% 18.80% 23.05% 26.23% 11.73% 17.89% 17.84% 14.14%
31‐Dec‐01 3262 236 13.82 3.52% 33.78% 26.49% 30.28% 33.41% 35.61% 16.75% 23.33% 22.66% 16.83% 16.84%
31‐Dec‐02 3377 272 12.42 72.89% 39.82% 40.65% 42.14% 43.13% 19.12% 26.46% 25.29% 18.41% 19.12% 19.10%
31‐Dec‐03 5839 348 16.78 13.08% 26.87% 33.16% 36.53% 10.56% 20.03% 19.66% 12.94% 14.29% 13.72%
31‐Dec‐04 6603 450 14.67 42.33% 44.50% 29.24% 9.94% 21.48% 20.79% 12.92% 14.44% 13.79% 15.33%
30‐Dec‐05 9398 523 17.97 46.70% 21.30% ‐11.22% 16.76% 16.89% 8.64% 10.93% 10.65% 12.67%
29‐Dec‐06 13787 718 19.20 47.15% ‐31.04% ‐4.87% 10.44% 2.31% 5.88% 6.28% 9.01%
31‐Dec‐07 20287 833 24.35 ‐52.45% ‐7.22% 0.36% ‐6.58% ‐0.86% 0.67% 4.44%
31‐Dec‐08 9647 820 11.77 81.03% 45.80% 17.01% 19.12% 16.96% 19.07%
31‐Dec‐09 17465 830 21.04 17.43% ‐5.93% 3.61% 4.86% 9.50%
31‐Dec‐10 20509 1060 19.35 ‐24.64% ‐2.67% 0.98% 7.61%
30‐Dec‐11 15455 1140 13.56 25.70% 16.89% 21.18%
31‐Dec‐12 19427 1196 16.24 8.70% 18.98%
31‐Dec‐13 21117 1326 15.93 30.22%
31‐Dec‐14 27499 1404 19.59
Min ‐52.45% ‐31.04% ‐12.29% ‐6.58% ‐1.80% 0.19% ‐2.61% ‐1.87% 0.10% 5.33% 8.99% 7.31%
Max 81.03% 45.80% 40.65% 42.14% 43.13% 35.61% 26.46% 25.29% 23.41% 19.12% 19.10% 13.76%
Average 15.95% 9.90% 9.21% 11.31% 11.73% 12.20% 11.74% 12.55% 13.31% 13.83% 13.79% 11.44%

• Sensex is taken as on particular day( i.e last day of December of each calendar year.
• EPS is taken for the respective financial year. [Link]
Concern 6

Sentiments are not good, 
just look at the NEWS.

National and International
Experts are predicting the
bear marketing

[Link]
Don’t Act On Headlines (Print Media)

“I think the worst mistake you can 
make in stock market is to buy or 
sell based on current headlines.”

Warrant Buffet

[Link]
Truth of Market Experts!!!

Nobody can 
predict
the market.

Don’t take 
these experts 
seriously.

[Link]
You Decide….

31st Aug., 2015

Are there any changes in 
Indian Fundaments in 
These 7 days which made 
this smiling face so 
serious??!!! 

7th Sep., 2015

[Link]
You Decide….

Jim Rogers is Bearish on India since year 2002, when Sensex was around 
3000,  Today Sensex Is 27000 points. 
Should You listen to him?...... You Decide

[Link]
Concern 7

No One Is Investing 
In Stock Market 
Right Now.

Don’t Follow the 
HERD.

[Link]
When To Invest?

Choice  1: When Market is cheap, attractive but no one wants to invest.

Choice  2: When Market is costly And everyone wants to invest. 

Why we opt for 2nd Choice?

Investor's Decision Vs Feeling
Alone Group
Wrong Very Bad Not So Bad
Right Very Good Not So Good

What is more profitable: buying cheap or buying costly?

[Link]
Concern 8

What if FIIs move 
out of market?

[Link]
 We think “Achhe din aane WALE hai”
FII believe “Achhe din aa GAYE hai.”

We are proud of our country and its economic power. 
FII invest in our economic power and earn from it.

[Link]
Understanding FII/FPI

™ FII/FPI is not a single entity

™ There are around more than 4054* FIIs/FPIs as on 8th Oct 2015

™ They are all from the different parts of the world

™ All of them may not require the money at the same time.

™ They come for the longer period of time.

™ Over a period of time FIIs/FPIs have increased their 
holding in Indian companies.

*Sourec:[Link]

[Link]
FII Inflow In Indian Equity Market

FII Flow cr  FII Flow cr 
Financial Year Financial Year Financial Year FII Flow cr in
in in

1992­93 13 2000­01 10,207 2008­09 ­47,706

1993­94 5,127 2001­02 8,072 2009­10 110,221
1994­95 4,796 2002­03 2,527 2010­11 110,121
1995­96 6,942 2003­04 39,960 2011­12 43,738
1996­97 8,546 2004­05 44,123 2012­13 140,033
1997­98 5,267 2005­06 48,801 2013­14 79,709
1998­99 ­717 2006­07 25,236 2014­15  111333
1999­00 9,670 2007­08 53,404 2015­16 ­17562

™ Since last 10 years FII is net seller only in 1 full financial year.
™ FIIs are continuously buying the Indian Equity markets
™ On daily basis due to the huge volumes of FIIs market may be volatile, 
but over long  term FIIs are interested only in buying.

Source: [Link]
**up to Oct 8, 2016
[Link]
What FIIs Own?

[Link]
[Link]
 How have we done over time?

Holding in  Holding in  Holding in CNX  Holding in CNX 

Type of 
NIFTY – March  NIFTY – June  500 – March  500 – June 
Shareholder
2008 2014 2008 2014

Promoter 54.95% 47.62% 58.47% 52.11%

Non Promoters

FII 16.05% 22.64% 14.59% 19.91%

DII 10.46% 11.92% 9.31% 10.33%

Public 8.20% 6.63% 8.36% 7.47%

Others 10.34% 11.19% 9.27% 10.20%

[Link]
Concern 9

Markets are at 
all time high, 

it can’t move up 
further.

[Link]
Valuation – Price vs Value

™ Sensex may be at all time high, but valuation are not.

™ One need to keep an eye the valuation measured by  
P/E ratio to find out weather the markets are cheap or 
costly

™ P/E of market swings like pendulum from low to high.

™ Current PE of market

[Link]
Valuations are comfortable

Sensex P/E (x)*

Sensex P/B (x)

Sensex ROE (%)‐ 10 Year 

Source: Motilal Oswal Securities Ltd,

as on 31st March, 2015

45
[Link]
Source : Bloomberg
 Sensex Projection

Sensex Projection at 15% EPS growth yoy  Sensex Projection at 18% EPS growth yoy 
Years 3 5 7 Years 3 5 7
EPS 1340* 2,038 2,695 3,564 EPS 1340* 2,202 3,066 4,269
15 30570 40428 53466 15 33025 45984 64028
18 36684 48514 64160 18 39630 55181 76834
PE PE
20 40759 53904 71289 20 44033 61312 85371
22 44835 59295 78417 22 48437 67443 93908

Low  PE 10.68
Historical 
Average PE  18.31
PE movement
High PE 28.47
**As on 31th Mar., 2015 Source: [Link]

[Link]
Concern 10

I don’t need Mutual Funds, 
they also go down with 
market. 

Mutual Funds are even not
Beating  Sensex,  why
should I invest in MF?

I can do it on my own,  I am educated and intelligent.

[Link]
Understanding And Doing It Different

Just by looking at the picture,
I am sure you can understand 
what the by pass surgery is ..

Now if you have understood 
what the bypass surgery is, 

If you or any of your 
member suffer from 
blockage of coronary artery,

WILL YOU DO IT YOURSELF? 

[Link]
It’s Not About Being Intelligent

“I can calculate the movement of stars, but not the madness of men.”
Sir Isaac Newton [Link]
It’s Not About High IQ It’s About High EQ

Newton lost his life saving of 20000 British pound in year 1720 trying on his own. 
His loss is equal to approx Rs 18 cr.  in today’s context.

Do you think you are more educated and intelligent than Isaac [Link]
 Can You Do This On Your Own?

Value As On  Value As On 
Investment  Smart Investor, Additional 
(Panic  (Confused  Abs. 
Particulars On Investment on 21st Sept 2001
Investor) Investor) Growth
14‐Feb‐00 21‐Sep‐01 23‐Nov‐04
25000 50000 100000
Sensex 5924.31 2600.12 6009.86 1.44%

HDFC Equity Fund 100000 51179 212360 112% 316094 419828 627296

Franklin Bluechip 100000 66222 202540 102% 279003 355465 508390

Reliance Vision Fund 100000 41240 255610 155% 410563 565515 875421

HDFC Prudence Fund 100000 71651 235370 135% 317494 399618 563865

Tata Pure Equity 100000 43927 182360 82% 286569 390509 598388

Franklin India Prima Fund 100000 45550 256670 156% 397543 538415 820161

HDFC Top 200 100000 46002 169780 69% 262048 354315 538851

ICICI Pru Diversified Power 100000 45433 221220 121% 342949 464677 708135

Reliance Growth Fund 100000 26818 221750 121% 428468 635185 1048620

Understanding something and doing something is all together different ball game.
[Link]
 Invested Amount  Value as on  Value as on 31st 
Scheme Name % Change
on 08th Jan 2008 09th Mar 2009 July 2016

Sensex  20873 8160 28051 34.39

Birla Sun Life Dividend Yield Plus  100000 49916 320777 220.78
Birla Sun Life Frontline Equity Fund 100000 44439 395523 295.52
Birla Sun Life India GenNext Fund 100000 43466 294232 194.23
Birla Sun Life India Opportunities Fund  100000 32219 306687 206.69
Birla Sun Life Top 100 Fund 100000 43947 293670 193.67
Canara Robeco Equity Diversified  100000 38944 282772 182.77
DSP BlackRock Equity Fund  100000 45092 438264 338.26
DSP BlackRock Small and Midcap Fund  100000 35172 283792 183.79
Franklin India Bluechip  100000 45027 324039 224.04
Franklin India Flexi Cap Fund  100000 39414 366385 266.39
Franklin India High Growth Companies Fund  100000 32802 428623 328.62
Franklin India Prima Fund  100000 30767 330802 230.80
Franklin India Prima Plus  100000 44214 487216 387.22
Franklin India Smaller Companies Fund  100000 29671 319620 219.62
HDFC Capital Builder Fund  100000 37604 318417 218.42
HDFC Equity Fund  100000 40507 492087 392.09
HDFC Mid‐Cap Opportunities Fund  100000 39683 285042 185.04
HDFC Top 200  100000 45480 287708 187.71
ICICI Prudential Dynamic Plan 100000 46929 340740 240.74
ICICI Prudential Exports and Other Services Fund  100000 28838 268995 168.99
ICICI Prudential Top 100 Fund  100000 46189 511506 411.51
ICICI Prudential Value Discovery Fund  100000 38791 433176 333.18
IDFC Premier Equity Fund 100000 40009 297890 197.89
L&T Equity Fund  100000 43682 282791 182.79
L&T India Large Cap Fund 100000 43643 294424 194.42
L&T India Special Situations Fund 100000 36007 382306 282.31
L&T Midcap Fund 100000 30316 377955 277.95
Reliance Equity Opportunities Fund  100000 36196 353995 253.99
Reliance Mid & Small Cap Fund  100000 38905 384174 284.17
SBI Emerg Buss Fund 100000 22624 366905 266.90
SBI Magnum Global Fund 94 100000 26798 431319 331.32
Sundaram Select Midcap  100000 32613 366775 266.77
Sundaram SMILE Fund  100000 33156 323452 223.45
Tata Dividend Yield Fund  100000 41430 320770 220.77
Tata Equity P/E Fund 100000 38729 331877 231.88
Tata Mid Cap Growth Fund  100000 32415 256025 156.02
Templeton India Equity Income Fund 100000 41593 249406 149.41
Templeton India Growth Fund  100000 41765
[Link]
220587 120.59
Concern 11

I want to stop my SIP, because
the returns are not good for
Last 5 year

[Link]
Equity Investment ­ Game of Patience 

You take a tiny seed, plant it and water it...you get a tiny 
1 sampling.... nothing more
You water it, fertilize it.... the sampling stays as it is.... 
2 nothing happens
You continue to water it, take care of it...still nothing 
YEARS 3 happens
Against your better judgment, you need to continue to 
4 water it, fertilise it... and still nothing will happen
To everyone's surprise, the tree sprouts and grows NINTY 
5 feet in SIX weeks

What was going on in first Few Years?
9The tiny sampling was actually developing its root system underground to 
sustain its impending over the ground growth fifth year onwards.
Chinese Bamboo tree  9If you had uprooted the sampling to see why it was not growing, it would die. 
tests your patience 9But if you were patient and had faith, you would witness the miraculous growth 
later on 

INVESTING – SIMILAR GAME OF PATIENTS
[Link]
[Link]
[Link]
SIP Stopped Vs SIP Continued

3 Years Return as on 17th Aug. 13  Return of same till 31stJuly 2016 

Scheme Name (SIP Stopped) (SIP continued ) 

Total  Total  Present 

Value CAGR CAGR
Investment Investment Value(SIP)
SIP of Rs 5000 per month 
Birla Sun Life Equity Fund  180000 171787 ‐3.17 355000 628587 19.5
Birla Sun Life Mid Cap Fund  180000 164416 ‐6.11 355000 669618 21.69
DSP BlackRock Equity Fund  180000 166851 ‐5.13 355000 554171 15.16
DSP BlackRock Small and Midcap Fund  180000 159774 ‐8.00 355000 703808 23.42
DSP BlackRock Top 100 Equity Fund  180000 179842 ‐0.06 355000 519538 12.95
HDFC Equity Fund  180000 164718 ‐5.98 355000 540384 14.3
HDFC Growth Fund  180000 165589 ‐5.63 355000 516304 12.74
HDFC Top 200  180000 168967 ‐4.28 355000 525666 13.35
Kotak 50  180000 176727 ‐1.25 355000 550164 14.91
Reliance Growth  180000 163569 ‐6.45 355000 581245 16.8
Reliance Vision  180000 153723 ‐10.52 355000 534363 13.92
Sundaram SMILE Fund  180000 150503 ‐11.89 355000 732447 24.81
Tata Equity P/E Fund  180000 163176 ‐6.61 355000 628722 19.51

Normally average Investor stops SIP after 3 or 5 years 
if returns are not good or negative
[Link]
SIP Stopped Vs SIP Continued

5 Years Return as on 17th Aug.13     Return of same till 31st July 2016 

Scheme Name (SIP Stopped) (SIP continued ) 

Total  Total Present 

Value CAGR CAGR
Investment Investment Value(SIP)
SIP of Rs 5000 per month 
Birla Sun Life Equity Fund  300000 326814 3.49 465000 979923 17.99
Birla Sun Life Mid Cap Fund 300000 330158 3.90 465000 1084507 20.49
DSP BlackRock Equity Fund  300000 332700 4.22 465000 880652 15.36
DSP BlackRock Small and Midcap Fund  300000 344293 5.62 465000 1211503 23.22
DSP BlackRock Top 100 Equity Fund  300000 351504 6.47 465000 809145 13.28
HDFC Equity Fund  300000 344709 5.67 465000 894725 15.75
HDFC Growth Fund  300000 333513 4.32 465000 820003 13.6
HDFC Top 200  300000 343043 5.47 465000 846769 14.4
Kotak 50  300000 336806 4.72 465000 847184 14.41
Reliance Growth  300000 319006 2.50 465000 912934 16.25
Reliance Vision  300000 291942 ‐1.11 465000 818157 13.55
Sundaram SMILE Fund  300000 291401 ‐1.18 465000 1164262 22.24
Tata Equity P/E Fund  300000 325948 3.38 465000 1011258 18.77

Normally average Investor stops SIP after 3 or 5 years if returns are 
not good or negative [Link]
Concern 12

I want to save for my Son’s 
education/My retirement;

why should I invest in 
equity? wherein there
is no surety of returns?

[Link]
PPF Returns

[Link]
ELSS Vs. PPF

[Link]
 Comparison Of ELSS Vs. PPF

The Table shows value of 1 lac invested every year in PPF, Sensex  and Various ELSS schemes on 31st March of every year. 
Valuation Date: 31 March 2015. (Past performance may or may not sustain in future)
1 Year 2 Years 3 Years 5 Years 7 Years 10 Years 12 Years 15 Years
CAPITAL INVESTED
Scheme Name
Rs. 1 Lac Rs. 2 Lacs Rs. 3 Lacs Rs. 5 Lacs Rs. 7 Lacs Rs. 10 Lacs Rs. 12 Lacs Rs. 15 Lacs
RETURNS GENERATED FROM VARIOUS ELSS SCHEMES (In Rs. Lacs)
Axis Long Term Equity Fund 1,62,028 3,81,420 6,29,637 11,66,023 NA NA NA NA
Birla Sun Life Tax Plan 1,56,836 3,50,800 5,62,113 9,73,374 15,88,678 26,40,985 51,50,592 97,78,801
Birla Sun Life Tax Relief 96 1,58,647 3,56,246 5,72,117 9,65,535 16,05,536 27,45,679 47,26,695 83,73,981
BNP Paribas Long Term Equity Fund 1,56,731 3,48,921 5,58,721 10,12,344 16,44,589 NA NA NA
Canara Robeco Equity Taxsaver 1,43,796 3,13,654 4,96,177 8,82,713 16,20,765 30,93,292 55,89,147 86,87,301
DSP BlackRock Tax Saver Fund 1,50,324 3,34,719 5,38,412 9,34,394 15,99,039 NA NA NA
Franklin India Taxshield 1,52,924 3,38,589 5,37,471 9,64,089 16,89,788 30,22,168 56,44,674 1,06,50,185
HDFC Long Term  Advantage Fund 1,34,361 3,01,035 4,79,543 8,51,978 15,03,929 25,60,361 51,45,850 NA
HDFC Taxsaver 1,43,848 3,20,550 4,99,101 8,63,638 15,35,762 27,25,964 58,54,380 1,23,71,365
HSBC Tax Saver Equity Fund 1,38,671 3,09,541 5,01,545 8,79,247 14,96,620 NA NA NA
ICICI Prudential Taxplan 1,44,860 3,31,738 5,31,134 9,36,035 17,04,294 29,16,493 63,25,118 1,22,91,715
IDFC Tax Advantage (ELSS) Fund 1,54,454 3,45,286 5,60,204 9,84,132 NA NA NA NA
Kotak Taxsaver 1,57,021 3,29,131 5,10,465 8,64,496 14,00,851 NA NA NA
L&T Tax Advantage Fund 1,39,549 3,09,182 4,86,529 8,50,352 14,83,695 NA NA NA
Principal Personal Taxsaver 1,35,268 3,02,287 4,80,623 8,12,305 13,18,008 22,14,769 38,78,960 67,24,847
Principal Tax Savings Fund 1,42,751 3,22,895 5,22,938 9,00,473 14,12,378 22,68,558 40,42,034 73,17,707
Reliance Tax Saver (ELSS) Fund 1,70,357 3,97,863 6,26,646 11,17,467 19,66,675 NA NA NA
Religare Invesco Tax Plan 1,55,527 3,47,633 5,56,324 9,91,468 17,39,161 NA NA NA
SBI Magnum Tax Gain Scheme 93 1,47,797 3,30,403 5,26,335 9,14,452 15,08,182 27,26,093 70,50,286 1,25,31,130
Sundaram Taxsaver 1,43,270 3,07,436 4,82,720 8,31,484 13,76,918 25,07,070 51,49,598 98,86,262
Tata Tax Saving Fund ‐ Plan A 1,51,674 3,33,538 5,29,609 9,29,306 15,55,152 25,68,343 47,39,223 84,78,271
UTI Equity Tax Savings Plan 1,40,040 3,05,575 4,82,480 8,25,144 13,30,579 21,58,779 35,70,806 63,53,832

[Link]
 Summary

1 Year 2 Years 3 Years 5 Years 7 Years 10 Years 12 Years 15 Years

CAPITAL INVESTED
Scheme Name
Rs. 1 Lac Rs. 2 Lacs Rs. 3 Lacs Rs. 5 Lacs Rs. 7 Lacs Rs. 10 Lacs Rs. 12 Lacs Rs. 15 Lacs
RETURNS GENERATED FROM VARIOUS ELSS SCHEMES (In Rs. Lacs)
Maximum 1,70,357 3,97,863 6,29,637 11,66,023 19,66,675 30,93,292 70,50,286 1,25,31,130
Minimum 1,34,361 3,01,035 4,79,543 8,12,305 13,18,008 21,58,779 35,70,806 63,53,832
Average 1,49,124 3,32,656 5,30,493 9,29,566 15,54,030 26,26,812 51,43,643 94,53,783
Sensex 1,24,887 2,73,314 4,33,951 7,37,230 12,03,905 20,96,219 35,13,323 56,53,825
PPF Calculated @ Actual Rates 1,08,726 2,26,911 3,55,496 6,44,940 9,82,547 15,97,279 20,93,487 30,21,949

past performance may or may not sustain in future.
As on 31st March, 2015

[Link]
Case Study – Retirement Planning

Name Raj Sharma  ­ Age 35

• Retirement Age 60 Years
• Life Expectancy  80 Years 
• Current Monthly Expense 25000
• Inflation  8%
• Post Tax Retirement 9%

• Monthly Expense at retirement  1,71,212 
• Corpus Required for the Retirement      37,699,209

[Link]
Case Study – Retirement Planning

Age Year Opening Balance Expense Withdrawal Balance after Withdrawal Year End Balance

61 37,699,209 2,054,543 35,644,666 38,852,686

62 38,852,686 2,218,906 36,633,780 39,930,821
63 39,930,821 2,396,418 37,534,402 40,912,498
64 40,912,498 2,588,132 38,324,367 41,773,560
65 41,773,560 2,795,182 38,978,377 42,486,431
66 42,486,431 3,018,797 39,467,634 43,019,721
67 43,019,721 3,260,301 39,759,420 43,337,768
68 43,337,768 3,521,125 39,816,643 43,400,141
69 43,400,141 3,802,815 39,597,326 43,161,085
70 43,161,085 4,107,040 39,054,045 42,568,909
71 42,568,909 4,435,603 38,133,306 41,565,304
72 41,565,304 4,790,452 36,774,852 40,084,589
73 40,084,589 5,173,688 34,910,901 38,052,882
74 38,052,882 5,587,583 32,465,300 35,387,177
75 35,387,177 6,034,589 29,352,587 31,994,320
76 31,994,320 6,517,356 25,476,964 27,769,890
77 27,769,890 7,038,745 20,731,145 22,596,948
78 22,596,948 7,601,845 14,995,104 16,344,663
79 16,344,663 8,209,992 8,134,671 8,866,791
80 8,866,791 8,866,791 0 0

[Link]
Years to Save – 25 Retirement Corpus needed 4.53 Cr.

Expected Return 8% 12% 15% 18% 20%

Monthly Investment 
49,550  26,630  16,444  10,069  7,241 
required 

Power of compounding is the 8th wonder of world.

Not investing into the Equity may be more risky.
[Link]
Case Study – Child Education Fund

Parent : Anil Kumar / Child Name : Samir

• Child Age 5 Years
• Higher Education Age 18 Years 
• Current Education expense 10,00,000 Rs.
• Inflation  8%

• Expected Education cost
(after 13 years) 27,19,623 Rs.

[Link]
Case Study – Child Marriage Fund

Parent : Anil Kumar / Child Name : Samir

• Child Age 5 Years
• Marriage Age 25 Years 
• Current Marriage expense 10,00,000
• Inflation  8%

• Expected Marriage cost after 20 years 9,321,914

[Link]
Case Study – Child Marriage Fund

Years to Save – 20       Child’s Marriage Fund Required 93.21 Lacs

Expected Return 8% 12% 15% 18% 20%

Monthly Investment 
16,278 10,134 7,024 4,838 3,765
required (Rs)

Power of compounding is the 8th wonder of world.

Not investing into the Equity may be more risky.

[Link]
Concern 13

What if the fund chosen
by me under­perform?

[Link]
• Don’t invest in Schemes 
based on Past Performance 
only.

• Consult your Financial 
Advisor

• Ask for Fund Selection 
Parameters.

[Link]
Past performance as on 31st July 2016

Particulars 15 Years 20 Years

Total Number of Schemes 62 26
Highest Return (%) 24.23% 25.20%
Lowest Return (%) 6.88% 11.23%
Average Return (%) 17.52% 17.59%
Schemes  with 20% plus CAGR 20 8
Schemes with 15% plus CAGR 44 17
Schemes with 12% plus CAGR 59 24
Schemes with 8% plus CAGR 62 26

All  diversified  equity  funds  which  has  completed  15

years and 20 years respectively as on 31st July., 2016

[Link]
Concern 14

Equity Can’t Beat the 
return from the Real Estate
Investments.

[Link]
Perception Vs Reality?

Are the Grey Lines Straight? 

[Link]
Perception Vs Reality?

Yes. The Lines are straight…

Things are not always the way they appear to us.
[Link]
Case Study

[Link]
Case Study

[Link]
Perception Vs Reality?

Things are not always the way they appear to us.

[Link]
Perception Vs Reality?

[Link]
THANK YOU

[Link]