PLAN TODAY.

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Start a Systematic Investment Plan with Franklin Templeton Mutual Fund today and get a step closer to your dreams.
You may always have reasons not to invest. Some of them
could be:
I have put my money in the bank. Why should I worry?
I am young. Right now I should just spend. I have plenty
of time.
I dont have enough money to invest.
I dont have the time or expertise to follow market movements
and make investments at the right time.
If these are some of the reasons that keeps you away from
investing, a Systematic Investment Plan (SIP) is ideal for
you. SIPs allow you to invest a fixed amount in Mutual Funds
at regular intervals with an aim to create wealth over the long
term and help you achieve your financial goals. Read on to find
out more about this powerful and disciplined savings tool.
ADVANTAGE SIP
In addition to instilling the habit of saving regularly, SIP puts
two powerful forces to work for you:
Rupee Cost Averaging: Regular investing can help.
Assume you invest `1000/- per month for 5 months at various
NAVs:

What you see from this table is the fascinating aspect of Rupee
Cost Averaging. It lets you buy fewer units when the price is
high and more units when the price is low, thereby averaging
out your cost over time.
In this case, your average purchase price per unit is lower than
the average NAV. However, this may not be true if the market
is only moving up.
While Rupee Cost Averaging does not provide any assurance of
profit, it is known to have worked well for many investors.
Power of Compounding: Staying invested helps
The longer the period of your investment, the more you
accumulate, because of the power of compounding. As
illustrated in the graph below you can see how the power of
compounding proves beneficial in the long run:

Allow time to work for you

The magic of
compounding means
that your money
multiplies over time

If you invested
`100 and it grew at
a rate of 8% per
year

At the end of 50 years at a simple interest of

8% you would have `500 (`8 every yr. x 50
yrs. = `400 as interest + `100 as return of
principal)

But at a compounded
rate of 8%, your money
will be worth `4,690
after 50 years

Compound
Interest

Simple
Interest

Month

Amount you invest

NAV

No. of units

`1000

`10

100.000

`1000

`12

83.333

`1000

`10

100.000

`1000

`8

125.000

`1000

`10

100.000

Total

`5000

Here, the average NAV =

=
Your average price
=
per unit
=

Starting Early: How it can help?

The earlier you start investing, the more time you give your
money to grow. As illustrated in the example below, you can
see the benefit of power of compounding by starting early:

SITA,
Age 40

508.333
(10+12+10+8+10)/5
50/5 = `10.00
Your total investment / Total no.
of units
5000/508.333 = `9.84

1
1

`1,00,000 p.a.

` 63 lac

SITA,
Age 60

1
1
GEETA
Age 30

`1,00,000 p.a.

` 1.8 crore

Retirement corpus at age 60. Assuming annual rate of return 10%.

For illustrative purposes only.

Geeta started just 10 years earlier, yet her corpus is much

larger than that of Sita.

GEETA
Age 60

INFLATION: A RISING THREAT

Inflation is one of the main threats to your savings, as it
erodes the purchasing power of your future income. This
means that in real terms the purchasing power of your money
declines over time. For example, if a loaf of bread costs `20
currently, it could cost as much as `48 in 2030, (assuming
inflation @ 6% p.a.).
A Loaf of Bread

1 Litre Milk Carton

1 Litre Petrol

SUMMING UP
You need to plan well for your future financial needs taking into
consideration various factors. Once you do so, a Systematic
Investment Plan can help bring in a discipline to your savings
program and steer you towards your goals. Franklin Templeton
Mutual Fund offers a range of funds to invest in through an SIP.
To know more, call your financial advisor today or visit our
website www.franklintempletonindia.com
Hence the reasons why you dont invest, are the reasons why
you should:

Year

Amount

Year

Amount

Year

I have put my money in the bank. Why should I worry?

Although traditional saving avenues offer assured returns,
they may not suffice to meet all your future financial goals,
considering the impact of inflation.

I am young. Right now I should just spend. I have plenty

of time.
Delaying your investment only increases your burden and
makes the realization of your goals harder. You also lose
out on the power of compounding.

I dont have enough money to invest.

You can start a SIP with as little as `500 a month.As they
say, small drops of water make the ocean!

I dont have the time or expertise to follow market

movements and make investments at the right time.
Mutual Funds and SIPs are an ideal way to invest without
worrying too much about market movements. Mutual funds
are professionally managed by expert portfolio managers
and SIPs help to invest regularly across market cycles.

Amount

2000

`10

2000

`25

2000

`25

2015

`20

2015

`60

2015

`68

2020

`27

2020

`80

2020

`91

2030

`48

2030

`144

2030

`163

Assuming inflation @ 6% p.a. for years 2020 and 2030.

Historically, equities are acknowledged to have the potential

to deliver superior inflation adjusted returns over the long
term. Hence, investing in equity mutual funds over the long
term, through an SIP, may help you create wealth over time.
HOW DOES YOUR SIP GROW ACROSS TIME FRAMES ?
This is how much your monthly investment can grow to, at
different rates of return, over varied time horizons. Consider if
you invested `5,000 per month through an SIP:
5000

20 Years

25 Years

`920,828

`1,741,726 `2,964,736

`4,786,833

12% `412,432

`1,161,695

`2,522,880 `4,995,740

`9,488,175

15% `448,408

`1,393,286

`3,384,315 `7,579,775 `16,420,369

8%

5 Years

10 Years

`369,834

15 Years

SIP TERMS FOR ALL EQUITY SCHEMES

Minimum Installment
Amount :

Table is only for illustration

MONTHLY SIP TO ACCUMULATE RS.1 CRORE

See how much you need to invest per month, in SIPs, at
various rates of return, over varied periods to reach a crore:
10000000 5 Years

10 Years

15 Years

20 Years

25 Years

8%

`135,196

`54,299

`28,707

`16,865

`10,445

12%

`121,232

`43,041

`19,819

`10,009

`5,270

15%

`111,505

`35,886

`14,774

`6,597

`3,045

Installments dates:

` 500 for minimum

12 months or
` 1000 for minimum
6 months
1st / 7th / 10th / 20th / 25th
of each month
(All installments should
be uniformly dated)

Distributed by:

Table is only for illustration

Past performance may or may not be sustained in future. Examples / Illustrations provided herein are purely based on arithmetical calculations and does not indicate in any manner performance of any scheme of
Franklin Templeton. Calculations assume investment on the 1st day of every month. Load is not taken in to consideration. CAGR returns have been used for calculations unless otherwise specified.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Corporate Office: Franklin Templeton Asset Management (India) Pvt. Ltd.
Indiabulls Finance Centre, Tower 2, 12th & 13th Floor, Senapati Bapat Marg, Elphinstone (West), Mumbai 400 013.

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