Mutual Fund Investment Opportunities for Indians/NRI/PIO in India

Dear Friends,

Wish You n Family A Very Happy n Prosperous New Year. Let this new year brings all happiness and wealth. Rather than just wish by words, I wish to share my happiness, learning & experience to save, accumulate and grow our wealth.

So far, most of us invest mainly in gold, real estate or FD in banks/post office etc. and like to introduce Mutual Fund (or ParasparFund) an alternative investment.

Gold is a preferable investment across everyone. But with the recent price of the gold (it's peak in past 27 years), it doesn't seem to be a good investment. Also we all consider gold as just jewelry and not real investment. The price we are paying in excess to gold as making charge, wastage, stones etc. After few years, the jewelry may consider as out of fashion and if we think of remaking, its another big expense on it. Only very few of us, really making gold as a true investment by getting as gold coins or gold bars. In addition, for the safety reasons, we need to keep it in safety lockers which again require extra expense as fee.

Next if we think of real estate investment, it became a dream or lifetime achievement for many of us, due to a very high price these days. Even if we have money, getting a plot with proper documents and maintenance became a big question. In spite of all, only very few people doing successful investment in real estate and making good returns.

Rest of us maintain money in savings account (with a fee in some cases) or in fixed deposit (FD).

Investment still seems to be a big word for many of us. It may be true if we consider buying flat or getting jewelry for big amount. But through mutual fund, we can invest as little as from few thousand rupees to few hundred thousand whenever possible. Also we can choose to invest regularly by Systematic Investment Plan (SIP) (as little as Rs. 50) like RD. And we can expect a good return on long term and we can make use of this for our high value investment.

The following table quantifies the extent to which equity has outpaced other asset classes such as gold and fixed deposits.

Period	Investment (Rs)	FD (Rs)	Gold (Rs)	SENSEX (Rs)
5 Years	60,000	69,393	99,080	141,790
10 Years	120,000	174,495	222,893	311,032
15 Years	180,000	357,569	322,968	532,467
20 Years	240,000	667.431	415,269	1,525,423
25 Years	300,000	1,159,971	515,986	3,902,159

This is to indicate invest Rs. 1000 per month for 5 years i.e. total of Rs. 60,000 in FD may become Rs. 69,393. And the same Rs. 60,000 may gain 99,080 if invests in gold. But the same amount would translate as Rs. 141,790 on invest in stock market.

Even though BSE Sensex gain is above 40% for the past few consecutive years, only about 6.3% household income invested in it. Trading in the stock market is really can gain good value, but at the same time it’s very risky if we are not doing it professionally. Due to this most of us away from stock market and many still treat it as gambling!

• If we could invest through professionals in the financial/stock market

• Unlike gold or real estate, if we can invest depends on our income, risk taking capacity

• If we have option to buy/sell any time

• Depends on our age, background and expectations, if we could decide whether to invest in equity based or money market

• If we have possibility of 100% growth in few years

We all will interest towards the investment right! Yes Mutual Fund is the one that provides all the above features.

• Whether you wish to invest for Tax Relief (ELSS)

• Whether you just wish to get better return than FD but as safe as FD (FMP, Debt funds)

• Wish to invest a good sum and expect a monthly return like pension (MIP)

• Whether you are OK to take some extend of risk, but expect good return (Diversified Equity)

• If you wish to invest regularly either every month or every few months for fixed amount on long term like RD (SIP)

• If you can wait for 3 or more years but interested to invest in high return funds (Closed End Equity)

• If you wish to invest in booming sector companies like: Infrastructure, Banking, IT, Energy, Power, FMCG (Thematic/Sector Funds)

• Whether you wish to invest in large cap companies who’s part of SENSEX or NIFTY (Index Funds)

• Or instead of investing in gold, if you wish to invest in Gold based funds (Gold ETF)

For any type of your investment wish, there might be a solution in Mutual Fund. What’s mutual fund, how it return good money? Don’t we get loss by get in to it? This also again stock market? You may have thousands of questions & more confusion may be. Don’t worry, I’m here to help on all your queries.

• Apart from as an AMFI certified & registered mutual fund advisor & distributor - with mutual fund investment experience in India and Singapore, wish to share my experience as a co-investor.

• To introduce you to Mutual Fund world and to get the passport: PAN Card as it’s compulsory to invest, starting 01/Jan/08

• Based on your age, background, income, risk tolerance, investment horizon – to recommend good funds

• To track and update you on the status of your investment periodically

• To keep you updated on the market

• Keep in touch with you on further investments, redemption requirements

I’m ready, to be a friend to involve in your long term financial planning, hope you too.

Let our hard-earned money work for us now. Come… let’s invest and grow with India.

Warm Regards,

Anbu. S

Note:

1. Currently we are distributing the funds from the major fund houses: Reliance, UTI, Sundaram BNP Paribas, Canara Robeco, AIG and Lotus India and more in progress.

2. Please refer to the table: Mutual Fund Performance in the last page on the fund category average and some of the best options in each category.

3. As per SEBI norms, mutual fund investments through distributors/agents still entitle to entry/exit load depends on the mutual fund scheme.