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Benchmark Investments

Investing can be complicated and overwhelming. Understanding the fundamentals of investing can help you make sense of the risks and opportunities associated with investing. It can also help you make more informed—and more confident—decisions about your portfolio, so you can put your investments to work toward achieving your goals

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As early you startas early you end

  • Let the compounding work
  • Maximize what you can afford to invest
  • Time in the market is key
  • Save first spend later.

Investments can increase in value over the years, and generally, the earlier you invest, the more time your investment has to grow. One important advantage that young people have is time. They usually have more time to allow an investment to increase in value than older people.

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An investment of Rs. 10,000

monthly investment ends in age 60

42 lacs Total investment
24 lacs Total investment
Investment started in Age 25 6.5 cr Savings to grow to*
Investmentstarted in Age 40 99.9 lacs Savings to grow to*

Difference in returns of 5.5 crores whereas difference in investment just 18 lacs

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10.92% Annual return on a well-diversified portfolio,(multi asset fund) over the past 15 years. Source: MFI Explorer, Data as on Jan 31, 2022

Do not put all the eggs in a single basket

  • Understand that asset classes behave differently
  • Don't chase past performance.
  • In the last 15 years, the world has endured a global pandemic, multiple natural disasters, and numerous geopolitical conflicts
  • Through it all, a diversified portfolio of stocks, bonds and other uncorrelated asset classes proved itself a winner.

It's been nearly impossible to predict which asset classes will perform best in a given year. Ninety percent of investment results depend on your asset allocation decisions; 10 percent is due to selection and timing. Most investors spend 90 percent of their time in "timing" and "selecting."

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3

Invest regularly

  • Start with small amounts
  • protected against market fluctuations
  • great flexibility
  • Stay rational
  • Compounding can make an exponential difference over time, compared to stock price appreciation alone

India is a country of saver and we save almost 30% of our income. This saving is one of the highest in the world. By investing what you can afford on a regular basis – and forgetting about it – those small amounts could soon turn into something worth having.

Regular investments matters for potential growth

So what if you had continued with your SIP throughout the global financial crisis (January 2008 to December 2012)
  • Scenario 1 - SIP Stop and withdraw full amount SIP gains Rs. 2.80 lakhs against investment of Rs. 3.80 lakhs at January 2008 end
  • Scenario 2- SIP Stop but remain investedSIP gains Rs. 17.54 lakhs against investment of Rs. 3.80 lakhs at Jan 2022 end
  • Scenario 3 – SIP continue through GFCSIP gains Rs. 42.91 lakhs against investment of Rs. 20.90 lakhs at April 2022 end
Consider SIP start of Rs. 10,000 in BSE Sensex since December 2004 and now are in midst of the crisis period (Global Financial Crisis –GFC, January 2008 to December 2012)
Past performance may or may not be sustained in future. Source: BSE India. Data as at 30 April 2021. 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. SIP does not ensure a profit or guarantee protection against a loss in a declining market data taken from 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.
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Out of last 41 years16%is market returns
Source: S&P BSE SENSEX - data taken since 1979 to 2020

Don't try to predict market highs and lows.

  • Volatility is normal
  • Use Time not timing
  • Don’t panic on market lows
  • On average, the market suffers a double decline every year
  • Volatility is normal , Don’t let it derail

Investors tend to buy high and sell low because they "time" their buy-and-sell decisions. Invariably they make the wrong decision. No one can accurately predict the market

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Rebalance / Monitor your portfolio regularly

  • Be disciplined about your tolerance for risk
  • Stay engaged with your investments
  • Understand that asset classes behave differently

Regular rebalancing helps keep your portfolio aligned with your risk tolerance.

A portfolio began with a 50/50 allocation to Equity and Debt, if was never rebalanced. Over the next 10 years, the portfolio drifted to an allocation that was 71% Equity and only 29% Debt —It is experienced that in market crash time portfolios is badly affected……

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The percentage of time, the S&P BSE Sensex posted a positive return over different rolling time periods

The probability of generating positive rate of return is higher when invested for a longer period

Stay long / Stay focused on your plan

  • Ignore the noise
  • Press makes noise to sell advertising
  • Markets fluctuate
  • While markets can always have a bad day or even year, history suggests investors are less likely to suffer losses over longer periods

$81.5 Billion of Wrarren Buffett’s $84.5 Billion net worth came after his 65th birthday. Build your mind to handle such absurdities. Progress toward your goal is more important than short-term performance. Over 20 years, markets went up and down—but a long-term investor who stuck to plan would have been rewarded.

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7

Understanding the Product / Investment

  • Risk/Return
  • Taxation/Costing/Loads/ Inflation/Real Return
  • Locking /Maturity/Liquidity/Cash Flow
  • Investment Behavior / Cycle
  • Avoid emotional biases to sticking with brand ,scheme, product ,country or stock
  • Your own risk appetite
  • Invest only your surplus funds
  • Follow a disciplined investment approach
  • Take advice from experts
Earning money is hard but managing is a lot harder

Within the investment market, investment products can be structured in various ways. Thus, investors have a wide variety of options in addition to buying an investment product focused on the movement of a single security, structured investment products, mutual funds, exchange traded funds, money market funds, corporate deposits and more. In the India and globally, investment products is highly regulated requiring substantial documentation to provide investors with a detailed understanding of investment products for which they may choose to invest.

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Disclaimer: Benchmark Investments is a Registered Mutual Fund Distributor.

Benchmark Investments is NOT an advisory firm & NOR an Investments advisor.

The contents herein mentioned are solely for informational and educational purpose only

This document is marketing material for a retail audience and does not constitute advice or recommendations. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

The above calculation and illustration of figures are indicative only and not on actual basis.

We Benchmark Investments are not warrant the accuracy or completeness of the information, text, graphics, links or other items contained in this website.

We may make changes to the contents, or to the information described therein, at any time without any notice.

In case of any variance between what has been stated and what is contained in the relevant Act, Rules, Regulations, Policy Statements, etc, is possible and we do update as per our update made.

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Please consult your CA / Tax expert for taxation before investing.

The information provided on this website is to help investors in their decision-making process and shall not be considered as a recommendation or solicitation of an investment or investment strategy.

We do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Tax law is subject to continual change, at times on a retroactive basis and may result in incremental taxes, interest or penalties.

There are risks associated with fixed income investments, including credit risk, interest rate risk, and prepayment and extension risk. In general, bond prices rise when interest rates fall and vice versa. This effect is usually more pronounced for longer-term securities.

Stock investments have an element of risk. High-quality stocks may be appropriate for some investments strategies. Ensure that your investment objectives, time horizon and risk tolerance are aligned with stocks before investing, as they can lose value.

Benchmark Investments only acts as a mediator between its clients and the company inviting/accepting deposits, known as Principal Company.

The contents herein above shall not be considered as an invitation or persuasion to trade or invest. We accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.

BENCHMARK INVESTMENTS

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Mutual fund and other investments are always subject to market risks. Please read all, Scheme Information Documents (SID), Key Information Memorandum (KIM), Addendums(if any) issued there to from time to time and any other related documents or information carefully before investing. Past performance is not indicative or assurance of future performance or returns. Please consider your specific investment requirements before choosing a fund.

For any grievances, investors can contact at: hello@benchmarkinvestments.in,  Tel: +91-755-4938282 / +91-9826310337.
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