Human Life Cycle

Cycle I

Cycle II

Cycle III

25 yrs Education

35 yrs Earning Years AgeAge - 25 yrs

10 10- 20 yrs Post Retirement Years

AgeAge - 60 yrs

Cycle II: The Most Crucial Phase

Meet current recurring expenses Rent, Electricity, Telephone Childs education, Childs marriage Annual Holiday with family. Build capital assets House; Car. Make provisions for Retirement ; Contingencies- Illness, Accidents, etc.

Do you save and invest so that your dreams turn into reality

However Critical, Yet We skip Doing It

I dont have money

Where is the Time

Next month, Promise !!!

I lack the requisite skills

Poor returns, where to Invest

No alternatives

Too much paper work

And More..!!!!

How to Realise DREAMS???

Wealth Creation Formula

Early Start

Save Regularly

Enjoy Wealth

Make sure your money works for you and not vice-versa

Its not difficult getting rich!!!

Power of Consistency & Compounding

8000000 Rs. 70 Lakh 7000000 6000000 Value (Rs.) 5000000 4000000 3000000 Rs. 23 Lakh 2000000 1000000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 6.00% No. of Years 10.00% 15.00% Rs. 10 Lakh

Start Small but early & regularly

Earn Big

Assumptions: Rs.1000 invested every month in instruments giving 6% p.a, 10% p.a & 15% p.a compounded returns
This is a hypothetical example to explain the power of compounding

SIP is for all Season

SIP Bull Market

140000 120000 100000

12000

Period Jan 04 Dec 07

10000 8000

SIP Value (RS.)

80000 60000 40000 20000 0 4000 2000 0 Index Value 6000

BSE 100 SIP Value

BSE 100 Index Value

BSE 100 index value increased from 3132.96 to 11154.28 If one had invested Rs. 1000 as SIP for 48 months it would have become Rs. 120985 on 31.12.2007

Source: MFI Explorer

Past performance may or may not be sustained in the future.

SIP Bear Market

12000 10000 SIP Value (Rs.) 8000 6000 4000 2000 0

Period Jan 08 Mar 09

12000 10000 8000 6000 4000 2000 0 Index Value

BSE 100 SIP Value

BSE 100 Index Value

BSE 100 index value decreased from 11191.84 to 4942.51 If one had invested Rs. 1000 as SIP for 15 months it would have become Rs. 11184 on 31.03.2009

Source: MFI Explorer

Past performance may or may not be sustained in the future.

SIP Range Bound Period

Period - Jan 08 - May 11

60000 50000 SIP VAlue (Rs.) 40000 30000 20000 10000 0 12000 10000 8000 6000 4000 2000 0 Index Value

BSE 100 SIP Value (Rs.)

BSE 100 Index Value (Rs.)

BSE 100 index value remained range bound during the period with value decreasing slightly from 11191.84 to 9720.96 If one had invested Rs. 1000 as SIP for 41 months it would have become Rs. 50825 on 31.05.2011

Source: MFI Explorer

Past performance may or may not be sustained in the future.

SIP Overall Period

Period - Jan 04 - May 11

180000 160000 10000 140000 SIP Value (Rs.) 120000 100000 6000 80000 60000 40000 2000 20000 0 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 0 4000 8000 Index Value 12000

BSE 100 SIP Value (Rs.)

BSE 100 Index Value (Rs.)

BSE 100 index value increased from 3132.96 to 9720.96 If one had invested Rs. 1000 as SIP for 89 months it would have become Rs. 156263 on 31.05.2011

Source: MFI Explorer

Past performance may or may not be sustained in the future.

Does SIP really works in achieving your goals???????

Case Study 1: Education for your child

15 Year SIP in BSE Sensex

You were a proud parent this April when IIM Ahmedabad announced its results for the 2011-13 batch..your daughter has made into the final list.. And you were also proud of yourself.because you saw this coming 15 years back.. At your daughters third birthday, you started an SIP in BSE Sensex, to prepare yourself for this big day. A monthly SIP of Rs. 3000/- started on 01/06/1996 for 15 years ending on 01/05/2011, has grown into Rs. 18.62 lakh (15.08% CAGR) as on 31/05/2011, while it cost you just Rs. 5.40 lakh..sufficient to cover all the expenses of your daughters MBA. Synopsis: SIP Period 01/06/1996 to 01/05/2011 SIP Amount Rs. 3000/- p.m Total amount invested Rs. 5.40 lakh Investment value as on31/05/2011Rs. 18.62 lakh Investment return 15.08%
2500000 2000000 Amount (Rs.) 1500000 1000000 500000 0 Jun-96 Mar-97 Dec-97 Sep-98 Jun-99 Mar-00 Dec-00 Sep-01 Jun-02 Mar-03 Dec-03 Sep-04 Jun-05 Mar-06 Dec-06 Sep-07 Jun-08 Mar-09 Dec-09 Sep-10 Cumulative SIP Investment (Rs.) BSE Sensex SIP Value

Above calculations are for illustration purpose only. Past performance may or may not be sustained in the future. Source: MFI Explorer & internal calculations

Case Study 2: Retirement Planning

30 Year SIP in BSE Sensex

Today is a very emotional day in your life.its your last day in the office..in SBI.you are retiring after serving for 30 years in SBI You recollect that after graduating from IIM Ahmedabad in April 1981, you got a job in SBI..largest bank in India.your dream job.. And then you made a very wise decision.which was about your retirement planning.. In your first month in the office (01/06/1981) you started a monthly SIP in BSE Sensex. A monthly SIP of Rs. 3000/- started on 01/06/1981 for 30 years ending on 01/05/2011, has grown into Rs. 2.09 crore (16.04% CAGR) as on 31/05/2011, while it cost you just Rs. 10.80 lakh..sufficient to cover all the expenses post your retirement.

Synopsis: SIP Period 01/06/1981 to 01/05/2011 SIP Amount Rs. 3000/- p.m Total amount invested Rs. 10.80 lakh Investment value as on31/05/2011Rs. 2.09 crore Investment return 16.04%
25000000 20000000 Amount (Rs.) 15000000 10000000 5000000 0 Jun-81 Nov-82 May-84 Nov-85 May-87 Nov-88 May-90 Nov-91 May-93 Nov-94 May-96 Nov-97 May-99 Nov-00 May-02 Nov-03 May-05 Nov-06 May-08 Nov-09 Cumulative SIP Investment (Rs.) BSE Sensex SIP Value

Above calculations are for illustration purpose only. Past performance may or may not be sustained in the future. Source: MFI Explorer & internal calculations

Case Study 3: Marriage

20 Year SIP in BSE Sensex

You are amazed how much world has changed in last 2-3 decades..how much economy has become service oriented.all work can be done on phone. You are preparing for your sons marriage & you dont have to rush yourself to manage all the things.like you used to do in your times. And one factor which really made things easy is money..which was all because of your foresightedness.. 20 years back on 01/06/1991, you started a monthly SIP in BSE Sensex , to save money for your sons marriage. And today after 20 years, a monthly SIP of Rs. 3000/-, has gown into Rs. 30.47 lakh (12.81% CAGR) as on 31/05/2011, while it cost you just Rs. 7.20 lakh.sufficient to cover the costs of your sons marriage.

Synopsis: SIP Period 01/06/1991 to 01/05/2011 SIP Amount Rs. 3000/- p.m Total amount invested Rs. 7.20 lakh Investment value as on31/05/2011Rs. 30.47 lakh Investment return 12.81%
4000000 3500000 Amount (Rs.) 3000000 2500000 2000000 1500000 1000000 500000 0 Jun-91 Jun-92 Jun-93 Jun-94 Jun-95 Jun-96 Jun-97 Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Cumulative SIP Investment (Rs.) BSE Sensex SIP Value

Above calculations are for illustration purpose only. Past performance may or may not be sustained in the future. Source: MFI Explorer & internal calculations

SIP Benefits
Rupee Cost Averaging Capitalize on periodic dips in the stock market and get more units at lower NAV thus lowering your average unit cost resulting in higher returns. Disciplined Investing Approach Invest small amounts regularly to build a sizable amount. For as little as Rs 500/- pm a sizable amount can be build Compounding benefits - The amounts invested early and regularly, helps not only in creating a substantial amount of wealth but also returns compounded over the years. Simple and Convenient One time activity. Just need a completed application form along with post dated cheques or SIP ECS/Direct Debit facility *

* Available in select cities/Select banks

What does one need for a SIP ?

Just these 3 Bank account Mutual fund scheme which offers SIP facility Rs 500 per month

SIP ECS Facility*

Walk into a SBIMF Investor Service Centre/Desk Opt for the SIP ECS/Direct Debit Facility Fill in the required fields Choose the Amount ( minimum Rs 500/- p.m) Choose one Day of the month ( 5th / 10th / 15th / 20th / 25th / 30th) (in case of February, last business day)

And Relax.. Every month the said amount will be debited from your bank account and units will allocated to you. Statement Of Account (SOA) by mail every quarter Even Better - Register for a SOA on email

* Available in select cities/select banks only

What if my city doesnt fall in ECS facilitated centres ?

Use the Power of Post Dated Cheques (PDC). Draw PDCs favored to the scheme Submit it along with the application form The cheques will be presented for payment on the given dates. Units will be allocated based on the closing NAV of the cheque realization date.

SIP Returns

Scheme Magnum Equity Fund S & P CNX Nifty Magnum Sector Funds Umbrella Emerging Business Fund (MSFU-EBF) BSE 500 Magnum Global Fund CNX Midcap

One Year -1.09% -2.79%

Three Year 20.24% 15.29%

Five Year 13.38% 9.95%

Since Inception 16.11% 12.97%

4.49% -5.03% 3.09% -7.97%

31.21% 17.04% 27.04% 21.84%

15.19% 10.24% 13.43% 13.67%

15.62% 12.98% 21.17% N.A

Returns are as on 31/05/2011 with SIP being done on 1st business day of every month for 1 year, 3 years & 5 Years return and for since inception basis, the inception date of the scheme is taken into consideration as the SIP date. Returns are CAGR & have been calculated for cash flows at different point of time using XIRR function in excel spreadsheet for Dividend NAV with dividend reinvested at the then prevailing NAV before growth option was introduced & for Growth NAV after growth option was introduced. Growth option was introduced on 27/11/2006 for Magnum Equity Fund & on 27/06/2005 for Magnum Global Fund. NAV (Growth) as on 31/05/2011 - Magnum Equity Fund - Rs. 43.25, MSFU-EBF Rs. 41.04 & Magnum Global Fund 56.37. Inception date of Magnum Equity Fund is 01/01/1991, of MSFU-EBF is 11/10/2004 & of Magnum Global Fund 30/09/1994. Past performance may or may not be sustained in the future.

Performance

Scheme Magnum Equity Fund S & P CNX Nifty Magnum Sector Funds Umbrella Emerging Business Fund (MSFU-EBF) BSE 500 Magnum Global Fund CNX Midcap

One Year 9.88% 9.32%

Three Year 8.05% 4.51%

Five Year 14.97% 12.60%

Since Inception 15.40% 15.02%

17.22% 6.66% 12.63% 3.98%

7.48% 3.76% 7.18% 7.11%

9.67% 11.70% 9.79% 12.88%

23.44% 18.44% 13.94% N.A

Returns are as on 31/05/2011. Returns are CAGR & have been calculated for Dividend NAV with dividend reinvested at the then prevailing NAV before growth option was introduced & for Growth NAV after growth option was introduced. Growth option was introduced on 27/11/2006 for Magnum Equity Fund & on 27/06/2005 for Magnum Global Fund. NAV (Growth) as on 31/05/2011 - Magnum Equity Fund - Rs. 43.25, MSFU-EBF Rs. 41.04 & Magnum Global Fund 56.37. Inception date of Magnum Equity Fund is 01/01/1991, of MSFU-EBF is 11/10/2004 & of Magnum Global Fund 30/09/1994. Past performance may or may not be sustained in the future.

Disclaimer

This presentation is for information purposes only. These views alone are not sufficient and should not be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All recipients of this material should before dealing and or taking any decision of investment are advised to carefully review the Scheme Information Document and consult their legal, tax and financial advisors before making an investment decision. All opinions and estimates included here constitute our view as of this date and are subject to change without notice within the provision of the Scheme Information Document. Risk Factors: Mutual Funds and Securities Investments are subject to market risks and there is no assurance or guarantee that the scheme's objectives will be achieved. As with any other investment in securities, the NAV of the Magnums/Units issued under the scheme(s) may go up or down depending upon the various factors and forces affecting the securities market. Past performance of the Sponsor/AMC/Mutual Fund/Scheme(s) and their affiliates do not indicate the future performance of the Scheme(s) of the Mutual Fund. Investment Objective: Magnum Equity Fund (An open ended equity scheme) - To provide the investor long term capital appreciation by investing in high growth companies along with the liquidity of an open-ended scheme through investments primarily in equities and the balance in debt and money market instruments. Magnum Sector Funds Umbrella Emerging Business Fund (An open-ended Equity Scheme) The investment objective of the Emerging Business Fund would be to participate in the growth potential presented by various companies that are considered emergent and have export orientation/outsourcing opportunities or are globally competitive by investing in the stocks representing such companies. The fund may also evaluate emerging businesses with growth potential and domestic focus. Magnum Global Fund (An open-ended equity scheme) To provide the investors maximum growth opportunity through well researched investments in Indian equities, PCDs, and FCDs from selected industries with high growth potential, and Bonds. Magnum Equity Fund, Magnum Sector Funds Umbrella Emerging Business Fund & Magnum Global Fund are only the name of the schemes and does not in any manner indicate the quality of the scheme, its future prospects and returns. Statutory details: SBI Mutual Fund has been set up as a trust under the Indian Trusts Act, 1882. State Bank of India ('SBI'), the sponsor is not responsible or liable for any loss resulting from the operation of the schemes beyond the initial contribution made by it of an amount of Rs. 5 lakhs towards setting up of the mutual fund. Asset Management Company: SBI Funds Management Private Limited (A joint venture between SBI and AMUNDI). Trustee Company: SBI Mutual Fund Trustee Company Pvt. Ltd. Please read the Scheme Information Documents carefully before investing.