Why Mutual Funds are Right for your Investment?

Why MF is Necessary?

1. MUTUAL FUNDS SAHI HAI Or JAROORI BHI

2. A Mutual Fund is a Pool of Money by a Pr ofessional Fund Manager. It is a trust that collects money from a number of INVESTORS who share a common objective and invests the same in EQUITIES, BONDS, MONEY MARKETINSTRUMENTS and /or OTHER SECURITIES.

3. We can classify into CLOSE ENDED OPEN ENDED Funds with lock in Period of 3 yrs. For e.g.. ELSS We can purchase & sell anytime

4. HOW TO INVEST ? LUMPSUM Investment Systematic Transfer Plan (STP) Systematic Investment Plan (SIP)

5. MARKET VOLATILE HAI!!

6. MARKET VOLATILE HAI!! Investments in stock market are fetching negative returns Will I have enou g h to save for retirement ? Pandemic have created job losses…. Its going to get worse… What should I do?

7. This is Not the 1 st Time Markets have Faced Such VOLATILITY Volatility in stock market 1992 Harshad Mehta Scam 2001 Dot com bubble 2008 Global financial crisis 2016 Demonetisation 2020 Pandemic 2022 Russia-Ukraine War Source: Invesco Asset Management (India) Note: The volatile periods mentioned above are used for illustration purpose only. There may be other volatile periods also, which may not be covered in above graph

8. Past performance may or may not be sustained in future. Source: BSE India. For SIP calculated as at 20 November 2008; time period includes - 1 year period is from: December 2007 to November 2008, 3 years: December 2005 to November 2008, 5 years: December 2003 to November 2008. For SIP calculated as at 23 Mar 2020; time period includes - 1 year period is from: April 2019 to Mar 2020, 3 years: April 2017 to Mar 2020, 5 years: April 2015 to Mar 2020. Note: XIRR method is used to calculate SIP returns. The above investment simulation is for illustrative purpose only and should not be construed as a promise on minimum returns and safeguard of capital. Invesco Asset Management (India) Private Limited/Invesco Mutual Fund is not guaranteeing or promising or forecasting any returns. SIP does not ensure a profit or guarantee protection against a loss in a declining market. Please refer SIP Enrolment Form or contact nearest ISC for Load Structure. Please refer last slide for disclaimer and risk factors. We have showcased November 2008 SIP performance given the lowest point of Global financial crisis. -72.53% -57.22% -27.65% -19.58% -2.66% 2 0- N ov- 8 23-Mar-20 XIRR (%) 1 Year 3 Year 5 Years Rs. 10,000 is invested in S&P BSE Sensex Index on the last business day of every month Lets us evaluate how SIP investments fared at the time of crisis… As per the below data the stress in short term was much deeper during the global financial crisis… Dec 07 to Nov 08 Dec 05 to Nov 08 Dec 03 to Nov 08 April 19 to Mar 20 April 17 to Mar 20 April 15 to Mar 20 SIP Period …but remember markets do react to events and gradually recover as things improve 9 -7.57%

9. Past performance may or may not be sustained in future. Source: BSE India. Data as at 29 April 2022. Rs. 10,000 is invested in S&P BSE Sensex Index on the first business day of every month. For detail analysis refer to slide on annexure. Note: The above investment simulation is for illustrative purpose only and should not be construed as a promise on minimum returns and safeguard of capital. Invesco Asset Management (India) Private Limited/Invesco Mutual Fund is not guaranteeing or promising or forecasting any returns. SIP does not ensure a profit or guarantee protection against a loss in a declining market. Please refer SIP Enrolment Form or contact nearest ISC for Load Structure. Please refer last slide for disclaimer and risk factors. We have showcased November 2008 SIP performance given the lowest point of Global financial crisis (GFC). The effect of global financial crisis in India was seen from the month of January 2008. Consider if you would have started SIP of Rs. 10,000 in S&P BSE Sensex since December 2004 and now are in midst of the crisis period You have the following Options Stop SIP and withdraw full amount – SIP gains will be of Rs. 2.80 lakhs as at January 2008 end. (total investment amount – Rs. 3.80 lakhs) Stop SIP but remain invested – SIP gains will be of Rs. 17.54 lakhs as at January 2022 end (total investment amount – Rs. 3.80 lakhs) Continue the Monthly SIP through GFC - SIP gains would be of Rs. 42.91 lakhs as at April 2022 end (total investment amount – Rs. 20.90 lakhs) So what if you had continued with your SIP throughout the global financial crisis (January 2008 to December 2012) Lesson Learnt – Continuing your SIP is more beneficial

10. Source: Invesco Asset Management (India). Equity investment is represented by the value of Nifty 50 from 1991 onwards, and does not account for any fees or expenses. Cash investments are assumed to be growing at a constant rate of 4% p.a. Right Hand Side – Market value as on 31st December 2021. Disclaimer: The illustration above is merely indicative in nature and should not be construed as investment advice. It does not in any manner imply or suggest the performance of any Invesco Mutual Fund Scheme(s). 2,385 3,853 617 4 , 5 4 , 3 , 5 3 , 2 , 50 2 , 1 , 5 1 , 500 1 9 91 1 9 92 1 9 93 1 9 94 1 9 95 1 9 96 1 9 97 1 9 98 1 9 99 2 00 2 01 2 02 2 03 2 04 2 05 2 06 2 07 2 08 2 09 2 10 2 11 2 12 2 13 2 14 2 15 2 16 2 17 2 1 8 2 19 2 20 2 21 (Rs. in Thousands) Equities-Worst Day (investing when the markets were highest each year) Equities-Best Day (investing when the markets were lowest each year) Cash at Bank Recurring investment of Rs. 10,000 at different times in the market each year 11 It’s not when, but if you invest that counts more Waiting for the right moment to enter the markets can lead to missed opportunities The penalty of not investing at all is far greater than getting the market timing wrong Even investing in worst market conditions can help us grow our wealth We re-emphasize - Any Time is a Good Time to Start Investing…

11. A Systematic Investment Plan (SIP) is a convenient way to achieve this objective A staggered approach to investment can help in combating volatility 12 Ple a s e a v o i d the ‘ T imi n g’ T r a p … “SIP is a strategy whereby an investor commits to invest a fixed amount at specified intervals. This ensures that he buys more units when prices are lower and fewer units when prices are rising, thereby resulting in lower average cost per unit in most situations”

12. Works on the principle of rupee cost averaging Investing at pre-defined intervals inculcates discipline Works well in volatile market conditions Allows you to buy more unit when markets are down, buys less units when markets are rising Results in a lower average cost per unit in most situations It is easy on the wallet too, as we don’t have to commit large sums of money at one go … 13 Why SIP helps?

13. IMPORTANT THINGS TO KEEP IN MIND Don’t keep looking at the market , they will keep going up & down Remember, even the worst fund has delivered 10%+ return in the long term Always Invest for LONG TERM Never STOP your SIP before its TENURE Redeem your money only & only when required for EMERGENCY Don’t worry if your funds are not performing, all funds go through high & low cycle Have a Faith on your ADVISOR, he is here to GENERATE RETURNS FOR YOU

14. OTHER SERVICES/PRODUCTS

15. If you are concerned that mutual funds are a type of dodgy investments, rest assured that they are COMPLETELY SAFE , as they are regulated by Securities & Exchange Board of India (SEBI) and the Association of Mutual Funds in India (AMFI).

16. इसलिए MUTUAL FUND सही है और जरूरी भी !!!!!!