WealthSIP

Anand Rathi Digital Wealth Private Limited is a AMFI-Registered Mutual Fund Distributor.
 Myth of Savings
Does this make sense when it comes to savings?

Not to us!

For two very basic reasons:

 We will save way lesser than what we are capable of saving.

 We will save inconsistently.

It defeats the very purpose of savings and lets not forget that today’s ‘savings’ is tomorrow’s ‘wealth’
 What the experts say !!!
Isn't this the right way?

We will tell you why

First:

 It creates a discipline around savings

 Paying yourself first ensures that savings are intact
 Even Warren Buffet says “Do not save what is left after spending, but spend what is left after saving”
Question: What Rate Should The Savings Grow
Answer: Rate at which it beats ‘HNI Inflation’!

We all know what’s Inflation ?

It’s the rate at which the average price of a specific basket of goods and specific grow over a period of time!
So, my savings have to grow at least at the inflation rate to maintain my purchasing power in future

Govt Inflation Wt
11%
3% Food & Fuel
7% House Rent
Govt. Published Inflation (CPI) for Transport & Comm
last 20 years – 7.5% 7%
54% Clothing & personal Care

8% Health
Education
10% Others

Govt. Published Inflation assigns 50% weight to Food & Fuel which is not applicable to us.
Question: What Rate Should The Savings Grow
Answer: Rate at which it beats ‘HNI Inflation’!

HNI Inflation - spending across those categories for which one has to dig into his wealth rather than income!

CAGR rise in 30 yrs

16.6

11.8
10.4 9.7 10.5
9.0 8.4
7.9

Toor Dal Education Flight Tickets Banquet Halls Apparels Entertainment HealthCare Avg. HNI
Inflation

Average HNI inflation is greater than 10% and our savings need to grow higher than HNI
inflation to maintain current lifestyles!
 10 Lakh invested in 1990, NOW would be:
21% - 24% p.a.

89.4

68.6

50.7 49

10%- 11% p.a. 14% p.a.

7% p.a. 9% p.a.

7.1
1.1 1.5 1.9 2.2 2.5

Fixed Deposit Gold Delhi (Vasant Bangalore Mumbai Sensex HDFC Flexi Cap Birla Sunlife 95 Franklin India Reliance Growth
Vihar) (Koramangala) (Malabar Hills) Fund 1995 Fund 1995 Bluechip Fund Fund 1992
1993
*Return includes Sensex Returns from Jan 1990 and actual return thenafter till 31st March 2022.
Final fig. in Cr.
 Mode of Mutual Fund Investments

• Single Investment or Lump sum Investment : While it creates a possibility of high returns if your timing of
purchase is right. To hedge against this, it is important to have a long term horizon and invest in schemes
that have a steady record

• Systematic Investment Plan (SIP) : Works similar to recurring deposit where a fixed amount gets invested
every month in selected schemes. This is a perfect and most preferred option for investors having regular
income

*Expected returns and risk are based on statistical and other analysis and may differ in the future
 Benefits of SIP

• Fixed Amount at Fixed Intervals : A methodology offered by Mutual Funds wherein one could invest a
fixed amount in a Mutual Fund scheme periodically, at fixed intervals instead of making a lump-sum
investment

• Ease of Operations : A very convenient method of investing in Mutual Funds through standing instructions
to debit your bank account, without the hassle of having to write out a cheque / transfer funds to the AMC
account each time

• Discipline Approach : A simpler approach to long-term investing in disciplining and committing to a fixed
sum for a fixed period and sticking to this schedule regardless of the conditions of the market

• Rupee Cost Averaging : In this approach, you invest a fixed amount of money at regular intervals
irrespective of whether the markets are going high or low. This ensures that you buy more units when the
markets are low and lesser units when they are high. This approach brings down your average cost per unit
over the long-term.

*Expected returns and risk are based on statistical and other analysis and may differ in the future
 Power of Compounding

Amount in Cr.
SIP Lump Sum
10 years 15 years 20 years 25 years 30 years
Amount investment required
20,000 0.46 1.01 2.00 3.80 7.06 ₹ 20,71,569
30,000 0.70 1.51 3.00 5.69 10.59 ₹ 31,07,353
40,000 0.93 2.02 4.00 7.59 14.12 ₹ 41,43,137
50,000 1.16 2.52 5.00 9.49 17.65 ₹ 51,78,922
75,000 1.74 3.78 7.49 14.23 26.47 ₹ 77,68,382
1,00,000 2.32 5.05 9.99 18.98 35.30 ₹ 1,03,57,843

Above illustration of monthly SIP growing @12% p.a over various time frames. And lump sum
investment required to meet your desired wealth in 20 years

*Expected returns and risk are based on statistical and other analysis and may differ in the future
 Benefits of WealthSIP

• Model Portfolio : A customized model portfolio created by Anand Rathi Private Wealth product team

• Continuous Monitoring : 81 member product team to continuously track, monitor and re-align portfolio,
thus ensuring your portfolio is geared up for market dynamics

• Unmatched Flexibility : You can Start, Top up, Stop, Pause and Restart your ongoing SIPs as per your need.

• Mobile App : Track your investments at the tip of your fingers and also get market updates

*Expected returns and risk are based on statistical and other analysis and may differ in the future
 Next Steps

• Start your WealthSIP by opening a free demat account

• Move your existing SIPs to WealthSIP model portfolio if any.

• Select an amount and date of your choice for your monthly execution

• Register one time mandate for smooth transaction

AND ENJOY YOUR WEALTH JOURNEY!!!

 THANK YOU
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