RETIREMENT SAVINGS FUND - Presenting An open-ended retirement solution oriented scheme having a lock-in of 5 years or till retirement age ...
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Presenting
RETIREMENT SAVINGS FUND
( An op e n- e nd e d reti re me nt sol u ti on orie nte d sche me
hav ing a l ock- in of 5 ye ars or ti l l reti re me nt age
(w hicheve r is e arl ie r) )
NFO Period: 29 th Nov - 13 th Dec 2019
What does retirement mean to you?
Happy, Healthy & Wealthy
19, F 58, F
35, F
Having enough money to do To stay healthy and do what I
the things I want – travel, To be able to shop without feel like without worrying
start a new career, etc. checking the price tag. about money.
41, M 56, M
25, M
To be the master of To do what I want (travel)
To be financially free and
my own time. instead of what I am
healthy to enjoy the wealth.
supposed to do.
Source: Axis MF Internal Research 1
What are the typical retirement fears?
48% people worldwide are scared that their corpus will not suffice
Difficulty to meet Feeling isolated and
Declining basic financial needs dependent
health
Being laid off Financial compromises
abruptly
Source: Transamerica Centre – Retirement Studies. Data as on Dec 2018. 2
Life expectancy is increasing
While people want to retire earlier
75 Life expectancy at birth (years)
The 80+ population has nearly
70
tripled globally over the past
30 years and stands at
65 143 million in 2019.
60
55 It is expected to further triple to
426 million by 2050 and double
50 to 881 million by 2100.
45
40
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
India World
Source: UN World Population Prospects 2019, World Bank. Data as on 31st Mar 2019. 3Typical challenges are here to stay
Manage one’s income in working years for comfortable non-working years
18-29 yrs 30-59 yrs 60+ yrs
Young Age Middle Age Old Age
Education Post Retirement
Wedding
Sustenance
Savings Children’s Emergency Medical
Education Expense
Children’s
Wedding
4You will retire, but inflation won’t!
Savings is not investing Savings does not grow money.
Investing does.
Assuming inflation at 5%,
`1 lakh saved today will be worth only
`61,391 after 10 years.
What you can buy today for `1 lakh will
cost `1.63 lakhs 10 years later.
Above figures and assumptions are strictly for illustration purpose. 5Cost of living is rising rapidly
Are you ready for it?
Movie ticket Petrol/Diesel Milk Rice
prices have prices have prices have prices have tripled
increased 5-10x increased 2-3x doubled over the in last 15 years
in last 20 years in 15 years last 5 years
Source: Axis MF Internal Research, data.gov.in. Data as on 31st Dec 2018. 6Maintaining health has become an expensive affair
Health Insurance
Premium Collection ($ bn) 5.9
63 million people fall into poverty 4.8
each year due to lack of financial 4.1
protection for medical needs
3.6 3.5
2.8 2.9 2.9
2.4
50% of beneficiaries travel more than
100 kms to access quality care
FY 11 Fy 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19*
Source: ibef.org. Data as on 30th Sep 2019 7Deciding retirement corpus is critical
Inflation will impact monthly expenses
6.00 If you were to retire today
5.00 The earlier you plan to retire, the
bigger the size of corpus required
Retirement corpus (Rs crs)
4.00
3.00 Risk appetite reduces as you near
the retirement age
2.00
Staying financially disciplined post
1.00
`1cr corpus will
serve for 20 years
`1.5 crs corpus will
serve for 34 years
`2 crs corpus will
serve for 54 years
retirement gives more predictability
0.00
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54
Years
Corpus @ `1crs Corpus @ `1.5 crs Corpus @ `2 crs
Above figures and assumptions are strictly for illustration purpose and does not indicate any future returns. Assumptions: If you were to retire
today with a set corpus, Monthly expense: `50,000 (increasing at an inflation rate of 5%) Retirement Corpus growing at 7% interest rate.
The effect of taxation is not considered. 8So, how prepared are you for retirement?
Key things to consider:
PRE-RETIREMENT POST-RETIREMENT
Find the right investment product(s) Be aware of your risk appetite
Map your investment goals Decide a reasonable withdrawal rate
Stay disciplined Stay disciplined
Don’t attempt to time the market Adjust the withdrawal rate based on
investment return/real rate
Adjust your risk appetite with age
9YOU’LL LIVE LONGER THAN YOU THINK.
WILL YOUR MONEY LAST AS LONG?
Presenting
In India, modern medicine has increased life
expectancy by 47% over the last 50 years*. RETIREMENT SAVINGS FUND
Have you planned your future accordingly? (An o pe n-e nde d retire me nt so lu tio n o r i e nte d sche m e h av in g
a lo ck-i n of 5 ye a rs o r till retire me nt a ge (w hi cheve r is earl ier) )
*Source: United Nations Population Fund Report dated April 2019 10Product Construct
The fund aims to help investors with their retirement planning
Ideal for young investors
Aggressive Plan
in the early stages of their careers
Ideal for 35-45 year old investors
Dynamic Plan
with financial responsibilities
Ideal for investors about to
Conservative Plan
enter their retirement years
11Product Construct
Aggressive Plan Dynamic Plan Conservative Plan
Equity exposure Equity exposure 65-100, 40-80% debt
65-80%. will be through a exposure in
Rest spread across combination of Hedged & high quality
other asset classes* Unhedged equity. Rest debt instruments,
spread across 20-40% in
other asset classes* Equity exposure.
Default retirement age: 58 years. Please refer to SID for detailed investment strategy and asset allocation
* Other asset classes include Debt & Money Market Instruments, Gold ETF and REITs & InvITs. 12Equity Investment Approach
Risk return tradeoff is likely to be
favourable over the medium term
Good ideas can do better irrespective of
their sector/theme/size
Focus on fast growing sectors with
bottom-up stock picking approach
*Investment focus is based on current market outlook and is subject to fund manager
discretion. Investors are advised to refer SID for investment strategy of the scheme 13Debt Investment Approach
The portfolio duration and credit exposures
will be decided based on thorough research
Flexibility to invest in the entire range of debt
instruments across credit/duration spectrum
Active duration management
*Investment focus is based on current market outlook and is subject to fund manager
discretion. Investors are advised to refer SID for investment strategy of the scheme 14Apply disciplined approach to investing
Trying to pick the top or bottom of markets is notoriously difficult
Return (XIRR) Regular investing helps ensure you don’t miss out on the best gains
14.0% 13.5% 15.9% Illustration
12.8%
(Last 39 years in Sensex)
12.9%
9.0%
4.6%
0.9%
Invested `1,000 on Invested `1,000 on Invested `1,000 on any
Fully invested Missed 10 bestMissed 30 bestMissed 60 bestMissed 90 best
market high of every year market low of every year random date of every year
days days days days
(In this case, 1st Dec)
Past performance may or may not be sustained in future. Source of data: Bloomberg. SIP calculation are done based on monthly SIP (last day of the month). The returns are in XIRR. XIRR calculates the internal rate of return for
series of cash flows. Above chart/figures/data is for illustration purpose and does not indicate performance of any scheme. Data as on 31st Mar 2019. Data calculated based on S&P BSE Sensex Index; Source: Bloomberg.
Above chart/data is for illustration purpose and does not indicate performance of any scheme. In the above chart, missed ‘n’ best days refers to not staying invested to
capture ‘n’ best daily gains in the period from Jan 1980 to Mar 2018. Eg: Missed 10 days means Assuming daily return for the best 10 days (as per daily gains) as 0%.
Data as on 31st Mar 2019. Data calculated based on S&P BSE Sensex Index.
15A small delay can cost more
Start Early
And benefit from the Power of Compounding
200.00 SIP In S&P BSE Sensex for last 20 & 25 years
180.00 `1.7crs
Illustration: Cost of
160.00
Monthly SIP of `10,000 delay:
140.00 `66lacs
Investor A: Investing since 25 years
120.00 Investor B: Investing since 20 years Investor A Investor B `1.1crs
100.00
80.00
60.00
40.00
20.00
0.00
Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
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
Past performance may or may not be sustained in future. Source of data: Bloomberg. SIP calculation are done based on monthly SIP (last day of the month).
The returns are in XIRR. XIRR calculates the internal rate of return for series of cash flows Above chart/figures/data is for illustration purpose and does not
indicate performance of any scheme. Data as on 31st Mar 2019. Data calculated based on S&P BSE Sensex Index. 16SECURE YOUR
INVESTMENT
GOALS,
NO MATTER
WHAT.
The Axis Retirement
Savings Fund
comes with the
exclusive provision
of iPlus SIP.
(An open-ended retirement solution oriented scheme having
a lock-in of 5 years or till retirement age (whichever is earlier))
17Complimentary insurance cover for long term SIPs*
We ensure that iPlus SIP is a special In an unfortunate
the investor’s feature that provides event of the demise
planned investors with of the investor, the
investments complimentary insurance cover will
are taken care of insurance cover take care of unpaid
on long term SIPs instalments of SIP
committed by
the investor
18A SIMPLE EXPLANATION
INVESTMENT
GOAL OF
12 L
` `10,000/month x 10 yrs
` Mr Kumar starts a ʻiPlus SIPʼ for `10,000/- per month for 10 years.
The life insurance aims to cover the residual component of his goal
and gets activated after 12 successful instalments.
Insurance
`10,000 x 108 months `10.8L
After 12 SIP instalments, Mr. Kumar becomes eligible for
insurance benefit equal to remaining SIP instalments.
For every SIP instalment paid, the insurance coverage falls by the
monthly SIP amount.
Mr Kumar's demise post Year 3
GGOAL In the case of Mr Kumar's unfortunate demise after 3 years, Insurance company will pay `8,40,000 to the
OAL registered nominee.
ACAH
CHIEV
IEVEDED
Insurance Investment
`8.4L ` 3.6L (120-36 months) x `10,000
19Let Axis lend you a helping hand with insurance cover
Commencement of
Eligibility Termination of Cover
Insurance Cover
• Resident individual investors aged • Insurance will commence upon • Insurance cover lapses immediately
above 18 years and not more than 51 investment of 12 successful SIP upon reaching 55 years of age or if the
years at the time of submission of SIP instalments. The insurance cover will investor misses 3 continuous SIP
application. be limited to the extent of the residual payments, whichever is earlier.
• Minimum tenure of SIP is 3 years at a instalments of the SIP upto the age • Partial or full redemption/switch-out
monthly frequency. of 55 years subject to a maximum of units purchased under Axis iPlus
of `50 lakhs. SIP before completion of the
• Minimum SIP amount of `1,000 per
instalment mandated SIP tenure/instalments.
Some of the key Terms & Conditions are: 1) Only the first unit holder will be eligible for the insurance cover. 2) Nominee will not have any claim if the death of investor occurs before 12 payments of SIP are completed 3) The insurance
cover does not cover market related losses incurred on investment amount.
*Please refer to SID of the scheme for detailed terms and conditions on iPlus SIP facility.
The AMC is offering insurance cover to the investors under iPlus SIP as an additional Opt in facility in the interest of investor and is not acting as an insurance agent for marketing/sales of insurance policies. AMC is not intending/nor
soliciting sale of any insurance services/products. The discretion to obtain the Facility rests with the investor at the time of SIP application.
AMC/Trustee reserves the right to change/modify the terms & conditions.
20Key features of the fund
Points Description
Scheme Position Solution Oriented Product aimed at investing for one’s retirement
Fund Structure Open-ended fund with 3 Plans: Aggressive, Dynamic & Conservative
Lock In 5 years from the date of allotment of units of the investment plan(s) under the scheme or
till retirement age of unit holder (i.e. completion of 58 years), whichever is earlier
Minimum Application Amount First Application: `5,000 and in multiples of `1 thereafter.
Additional Investment: `1,000 and in multiples of `1 thereafter.
Exit Load Nil
iPlus SIP Optionally available
21Product Label & Riskometer
Axis Retirement Savings Fund - Aggressive Plan Riskometer
This product is suitable for investors who are seeking*:
• Capital appreciation over long term
• Investments primarily in equity and equity related instruments M
ly Moderate od
e
at er
Axis Retirement Savings Fund - Dynamic Plan er Hi at
od ow gh el
y
This product is suitable for investors who are seeking*: M L
• Capital appreciation and income generation over long term
• Investment in equity and equity related instruments as well as debt and money
market instruments while managing risk through active asset allocation.
Hig
Low
h
Axis Retirement Savings Fund - Conservative Plan
This product is suitable for investors who are seeking*:
LOW HIGH
• Capital appreciation and income generation over long term
• Investments in debt and money market instruments as well as equity Investors understand that their principal will be
and equity related instruments at moderately high risk
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Statutory Details and Risk Factors
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to `1 Lakh). Trustee: Axis Mutual
Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from
the operation of the scheme.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
22THANK YOU!
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