4. Macro Variables
Falling Crude & Gold
Prices
Reduction in CAD
Current Account Deficit
CAD =Export - Import
Appreciating Rupee
Reduction in Crude/ Gold Import bill
=falling Dollar * falling Crude/Gold prices
Reduction in Fiscal Deficit
Falling Inflation
Reduction in
Interest Rate
Improvement in GDP
GoodforDuration
based
DebtProducts
Positive for Equity
15. ???
Don't wait until the dust get settled
As when the path will get clear the sensex will
have already moved ahead
16. 15 Years of Wealth Creation Through
Mutual Funds
17. Performance Snapshot of Lumpsum Investment
Diversified equity
Funds have
clearly
Outperformed
SENSEX
Diversified Equity Funds with track record of 15 years have delivered 22% CAGR
Against SENSEX return of close to 12%. Lumpsum investment of Rs.1 lakh would have
Grown to Rs.25 lakhs in 15 years period. (Money multiplying by 25 times).
No of schemes covered: 21
18. Performance of Schemes With 15 Year History
Avg Return of all equity funds With 15 yrs history is close to 22% (Tax Free).Even worst
performing fund has given 9% tax free return.Better than Bank F.D.
A s of 31 -Dec -1 2 L um ps um R eturn C A G R V a lue of R s . 1 L a c
S c hem e N a m e 1 0 Y rs 1 5 Y rs 10 Y rs 15 Y rs
Birla S un Life Advantage Fund - Gr 20.93 19.60 6,68,868 14,65,439
Birla S un Life Tax R elief 96 Fund - Div 21.69 27.34 7,12,113 37,53,813
DS P BlackR ock E quity Fund - R eg. Plan - Div 29.27 21.85 13,03,099 19,38,130
Franklin India Bluechip Fund - Div 26.06 33.35 10,13,382 74,97,134
Franklin India Prima Fund Gr 27.49 27.10 11,34,387 36,49,079
Franklin India Prima Plus - Div 26.68 26.26 10,64,340 33,03,595
HDFC E quity Fund - Div 29.09 28.69 12,85,068 43,97,157
HDFC Taxsaver - Div 29.11 31.87 12,87,060 63,41,472
HDFC Top 200 Fund - Div 29.34 22.78 13,10,173 21,72,273
JME quity Fund Growth Option 17.11 8.93 4,85,221 3,60,755
Morgan S tanley Growth Fund - Gr 18.24 14.99 5,34,127 8,12,645
Principal Personal Tax S aver 20.23 23.44 6,31,144 23,54,175
R eliance Growth Fund Gr 32.16 27.46 16,25,550 38,07,226
R eliance Vision Fund Gr 25.92 23.00 10,02,183 22,31,396
S BI Magnum Multiplier Plus 93 - Div 27.67 17.49 11,50,505 11,22,053
S BI Magnum Tax Gain Fund - Div 30.50 22.61 14,32,535 21,27,592
S undaram Growth Fund Gr 22.61 16.51 7,67,819 9,89,573
Tata E thical Fund - Gr 25.34 16.00 9,56,967 9,26,552
Tata Tax S aving Fund - Div 23.33 22.04 8,14,118 19,83,960
Templeton India Growth Fund Gr 25.38 18.62 9,60,025 12,95,295
UTI Top 100 Fund - Div 19.76 11.03 6,06,901 4,80,402
Avg R eturn 25.14 21.95 987884.99 2524272.42
BS E S E NS E X 19.1 11.75 574392 530286
19. Becoming Crorepati Through SIP
SIP Amt assumed at Rs.10000
p.m.
Avg Return of SIP in Last 10 Years : 17.36% CAGR
Avg Return of SIP in Last 15 Years : 20.51% CAGR
Value of Rs.10000 SIP in 10 Years : Rs.30.46 lakhs
Value of Rs.10000 SIP in 15 Years : Rs.1.07 cr
20. SIP Performance
A s o f 3 1 -D e c -1 2 S I P R e tu rn S I P V a lu e
S cheme Name 1 0 Y rs 1 5 Y rs 1 0 Y rs 1 5 Y r s
B irla S un L ife Advantage F und - G r 13.23 15.79 23,92,329 66,02,218
B irla S un L ife T ax R elief 96 F und - D iv 14.59 21.11 25,72,980 1,05,39,858
D S P B lackR ock E quity F und - R eg. P lan - D iv 21.50 22.12 37,33,902 1,15,26,279
F ranklin India B luechip F und - D iv 18.89 23.21 32,42,803 1,26,96,379
F ranklin India P rima F und G r 18.35 24.74 31,49,689 1,45,44,210
F ranklin India P rima P lus - D iv 19.75 23.16 33,96,925 1,26,40,161
HD F C E quity F und - D iv 21.42 25.97 37,17,784 1,62,24,070
HD F C T axs aver - D iv 20.42 27.52 35,22,141 1,86,20,010
HD F C T op 200 F und - D iv 21.41 23.50 37,15,774 1,30,27,460
J M E quity F und G rowth O ption 8.72 10.84 18,82,852 43,11,789
Morgan S tanley G rowth F und - G r 12.55 13.94 23,07,022 56,22,840
P rincipal P ers onal T ax S aver 14.22 18.99 25,22,467 87,40,161
R eliance G rowth F und G r 22.87 27.81 40,21,114 1,91,05,968
R eliance Vis ion F und G r 16.65 23.71 28,74,028 1,32,72,638
S B I Magnum Multiplier P lus 93 - D iv 20.15 19.55 34,71,127 91,82,510
S B I Magnum T ax G ain F und - D iv 21.54 22.06 37,41,987 1,14,65,139
S undaram G rowth F und G r 14.74 16.84 25,93,756 72,36,301
T ata E thic al F und - G r 17.85 17.99 30,65,909 80,04,062
T ata T ax S aving F und - D iv 15.20 17.28 26,58,563 75,20,599
T empleton India G rowth F und G r 17.97 20.56 30,85,806 1,00,39,314
UT I T op 100 F und - D iv 12.63 14.01 23,16,890 56,56,959
Average R eturn 17.36 20.51 3046945 10789473
B S E S E NS E X 13.93 13.99 2483599 5647188
22. Dont Invest in Equity
“As it happens, retail investors are helping markets more by staying out than by investing in equities. So from a
purely selfish point of view, we (current equity market participants) do not mind if you stay away from equities.
Keep your money in low interest bearing savings accounts and this will help banks raise cheap funds.
Then, while you earn taxable 9% per year in fixed deposits and 4% in savings accounts, we will continue to buy
HDFC Bank, IndusInd Bank, Yes Bank and the like, which are up 3.5 times, 11 times and 5.9 times
respectively since December 2008. Also, remember to pay all your EMI installments on time so that retail loans
made by private banks do not get into trouble and we can continue do well owing their stocks.
Indian retail investors are more or less completely out of equities and would rather buy gold instead. So keep
buying gold so that we can do better than you by owning stocks in Titan Industries and other jewellery
companies. You should not care that at all that while the gold you bought is up 2.8 times in four years, the stock
of Titan Industries, which sell gold to you is up 6.9 times during the same period. If Rakesh Jhunjhunwala had
bought physical gold instead of shares in Titan when he did, he would not be a billionaire today.
In fact, go ahead and buy real estate, taking mortgages from HDFC and LIC Housing Finance. How else we
would have made 2.8 times and 5.7 times in these stocks in five years? And when you do buy these apartment
and houses, do insist on using the best construction material- cement, sanitary ware and so on. It is only
because you do not buy equities and spend on real things that we could make 192% on ACC and 4.5 times on
Hindustan Sanitaryware since 2008. A house is not done until it’s painted, so remember to keep a budget for
decorative paints from Asian Paints (stock is up 4.8 times in four years)
Why should you invest in equities when you can buy insurance products? This world is interesting precisely because
we think differently from each other- while you are happy buying insurance, we are happy owning shares in companies
that sell you insurance. Thanks to you, shares in Bajaj Finserve are up 6 times in value and shares in Max India are
up 2 times in the past four years.
23. Follow your heart and we will follow you. If you like going to malls and spending time there, please do some
shopping as well- some of us own shares in Phoenix Mills which is up 2.7 times since 2008. In fact, it may be
times for you to upgrade your car. Why buy equities when you can spend the same money on a new car or
motorcycle? Let us do the more boring job of continuing to own stocks in Maruti and Bajaj Auto which are up 2.9
and 10.8 times respectively since 2008. Why not add your name to the waiting list for an Enfield this year while we
own shares in its manufacturers, Eicher Motors which is up 12 times since 2008?
Life isn’t just about making and investing money; it’s important to enjoy life’s little pleasures. So go and watch a
movie at the multiplex and munch some popcorn while you’re there. Meanwhile, we’ll buy shares in PVR (up 3
times in 4 years).
You’d rather spend time in front of the telly? We’ll still love you- shares in Zee Telefilms and Sun are up 3 and 3.5
times because of loyal viewers such as you. Call for Pizza delivery at home. Jubliant Foodworks, which owns
Domino’s, is up 5.4 times since its IPO in 2010.
When you’re in mood to be sinfully self-indulgent, don’t make any resolutions to give up smoking or drinking. You
may not want to invest in equities but spare a thought for investors in these stocks. Your actions so far have
helped these investors make 3.8 times in ITC, 10.3 times in United Breweries and 2.2 times in United Spirits in 4
years but they still look for your continued patronage of these businesses.
We wish you a very happy and healthy 2013. If, God forbid, you have to visit a hospital, remember that as stake
holders in Apollo Hospitals (stock up 3.8 times) we will be thanking you from the bottom of our collective hearts.
And if you do fall sick in 2013, take comfort in the fact that you are helping investors in stock of companies such as
Dr.Reddy’s (stock up 4 times) and Cipla (stock up 2.3 times).
We invite you over to our side in 2013 but still love you for choosing instead to be loyal customers of the
businesses we own. Now it’s up to you to decide who you would rather be – part owners of Indian
companies or just their loyal customers.”
