Systematic Investment Planning

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Systematic Investment Planning
Sampada Investment Consultancy Services Ph
0-9896151628 Sampada_at_aol.in
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Financial Planning

• Gazing in a crystal ball and assessing what lies
  ahead in future is something that not many of us
  undertake.
• We are so obsessed with the present that we
  never think about the future.
• Financial insecurity is a risk, which is
  inherent in everybody's lives. However, this is a
  risk that most of us fail to realise.
• Your financial applecart may get upset if you
  have insufficient retirement funds, large outgo
  on children's education marriage, housing,
  unforeseen expenses as also inflation.

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Battle with Inflation

• An MBA education which required just Rs. 50,000
  in 1980 costs around Rs. 5 lacs today.
• You could have bought an Ambassador car, (that
  was the luxury car then) for just Rs. 60, 000.
  Today the same Ambassador (even though it is no
  longer a luxury car) would cost you Rs. 4,00,000.

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Battle with Inflation
Inflation (or rise in prices) is always the
silent killer. It erodes the value of money with
passage of time. A monthly expense of Rs. 20,000
today would shoot up to Rs. 85,000 after 25
years, if the inflation rate is 6. Since the
living standards of people actually go up over
the years, the actual expense may even be
higher.If the return on retirement funds is 8,
one would need to save Rs. 1.25 crores to
generate a monthly income of Rs. 85,000. However,
this is not the only savings that one needs to
do. You also need to save for expenses related to
housing, children's education and marriage,
holidays and innumerable other major expenses,
during your lifetime. You can reduce a lot of
stress in your life and honor your financial
commitments with a little bit of discipline and
financial planning.
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Financial planning brings you a lot of benefits

• It puts you in control of your future. You no
  longer need windfall gains to fulfill your needs.
• It removes stress from future years. As and when
  your needs are met, you have more disposable
  income in your hands.

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Solution

• Systematic Investment Plans are an excellent
  mode for planning your future. Investing a fixed
  amount on a regular basis is known as Systematic
  Investment.
• Systematic' because it is a methodical way of
  investing. It helps you do away with the adhocism
  that is generally associated with investments,
  and thereby achieve your financial goals.

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SIP helps you to

• Inculcate financial discipline 
• Helps you make investment your first priority
  from it being your last priority. 
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• Reduce the risk 
• An SIP helps you average out your cost and
  thereby reduce risk resulting in generating
  superior returns. It is the best way to
  participate in equity markets without taking too
  much of risk.  
• Compound the returns 
• Each rupee you invest earns a return, which
  ends up as more rupees to earn a return,
  allowing your investment to grow at a fast pace.
  Systematic investing, thanks to the power of
  compounding, helps you reach your investment
  goals sooner.  
• Plan and build for your future 
• It helps you to attend to your long term goals
  before you're tempted to spend the money on
  anything else.  
• Accumulate Wealth in a much relaxed manner 
• It is designed to help accumulate wealth over
  the long-term, without having to keep aside huge
  sums of money (an SIP can be started with as
  little as Rs. 1,000 a month).
• Overpower the temptation to spend lavishly 
• An SIP acts as a forced saving, and thereby
  helps you overpower the temptation to spend
  unnecessarily.

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Thank You
Sampada Investment Consultancy Services Ph
0-9896151628 Sampada_at_aol.in