Presentation on Achieving Goals in Life

Let us begin with a little quiz

25 Years

What is the Average Age when one starts Earning?

What is the Average Retirement Age?

60 Years

Rs.15,000/- p.m.

What is an Average Income of anMiddle-Class House-hold?

Rs.5,000/- p.m.

How much can a personsave on a regular basis?

If a person can save Rs.5,000/- per monthWhat will be his wealth when he retires?

Assuming:

He increases his investments by 5% every year

Invests in an Asset class that gives returns of 20%

At Age 60 his wealth would have been

Rs.27 Crores

Creating Wealth is Easy

We can all be Wealthy

THE TRUTH

Start Saving Early

The longer you save, the more you make

Save in the Right Asset Class

This will dictate how much wealth you create …

Save Regularly

Even a small amount saved regularly, is good

How can you create wealth?

4.90 Crores*

27 Crores*

40 years25 years 60 years

  Ram Shyam

Savings Starting Age 25 40

Savings - Monthly SIP Rs.5,000/- Rs.15,000/-

Saving Years till age 60 35 years 20 years

Total Amount Saved (appx.) Rs.57 lacs Rs.62 lacs

Starting Early

Give time to your investments rather than timing

Assumptions: (a) Savings grows at 5% annually (b) Returns assumed at 20% CAGR

0

1,000

2,000

3,000

4,000

5,000

6,000

1990-

91

1991-

92

1992-

93

1993-

94

1994-

95

1995-

96

1996-

97

1997-

98

1998-

99

1999-

00

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

Sensex

Company Deposits

Bank Deposits

Inflation

Gold

Equity market (represented by BSE Sensex) has outperformed all other investment avenues

Selecting Right Asset Class

In past 27 years BSE Sensex has given about 18% returns

Past Performance (BSE Sensex)

Year Sensex Investment Rs.

1979 100 1,00,0000

2006 10,000 1,00,00,000

This is in spite of …

• Two wars• At least three major financial scandals• Assassination of 2 prime ministers

• At least 3 recessionary periods• 10 different governments and• An unfair share of natural disasters

Years YEAR END SENSEX level 1 year 3 years 5 years 7 years 10 years 15 years

0 31-Mar-79 100.00

1 31-Mar-80 128.57 28.57%

2 31-Mar-81 173.44 34.90%

3 31-Mar-82 217.71 25.52% 29.61%

4 31-Mar-83 211.51 -2.85% 18.05%

5 31-Mar-84 245.33 15.99% 12.25% 19.66%

6 31-Mar-85 353.86 44.24% 17.58% 22.44%

7 31-Mar-86 574.11 62.24% 39.49% 27.05% 28.36%

8 31-Mar-87 510.36 -11.10% 27.66% 18.58% 21.77%

9 31-Mar-88 398.37 -21.94% 4.03% 13.50% 12.61%

10 31-Mar-89 713.60 79.13% 7.52% 23.81% 18.48% 21.72%

11 31-Mar-90 781.05 9.45% 15.24% 17.16% 20.52% 19.77%

12 31-Mar-91 1167.97 49.54% 43.12% 15.26% 24.97% 21.01%

13 31-Mar-92 4285.00 266.88% 81.76% 53.04% 42.80% 34.71%

14 31-Mar-93 2280.52 -46.78% 42.93% 41.76% 21.78% 26.84%

15 31-Mar-94 3778.99 65.71% 47.90% 39.57% 33.11% 31.45% 27.40%

16 31-Mar-95 3260.96 -13.71% -8.70% 33.09% 35.03% 24.87% 24.05%

17 31-Mar-96 3366.61 3.24% 13.86% 23.58% 24.81% 19.35% 21.86%

18 31-Mar-97 3360.89 -0.17% -3.83% -4.74% 23.18% 20.74% 20.02%

19 31-Mar-98 3892.75 15.82% 6.08% 11.29% 18.77% 25.60% 21.43%

20 31-Mar-99 3739.96 -3.92% 3.57% -0.21% -1.92% 18.02% 19.92%

21 31-Mar-00 5001.28 33.73% 14.17% 8.93% 11.87% 20.40% 19.31%

22 31-Mar-01 3604.38 -27.93% -2.53% 1.37% -0.67% 11.93% 13.03%

22 31-Mar-02 3469.35 -3.75% -2.47% 0.64% 0.89% -2.09% 13.63%

22 31-Mar-03 3048.72 -12.12% -15.21% -4.77% -1.41% 2.95% 14.53%

23 31-Mar-04 5590.60 83.38% 15.76% 8.37% 7.54% 3.99% 14.71%

24 31-Mar-05 6492.82 16.14% 23.23% 5.36% 7.58% 7.13% 15.16%

25 31-Mar-06 11279.96 73.73% 54.67% 25.63% 17.08% 12.85% 16.32%

28.29% 19.43% 17.41% 17.48% 17.85% 18.57%

10/27 5/25 3/23 3/21 1/18 0/13Probability of Loss

PERFORMANCE OF BSE SENSITIVITY INDEX - Equities not risky in long run

Rolling Returns - Growth

Average Returns

18.57%

0 / 13

Equities:Not Risky in Long Run

Twin Benefits of Investing Regularly

Disciplined Investing through Systematic Investment Plans (SIPs) is the ideal way to reduce risk

Rupee Cost AveragingAverage Purchase cost

will be less

Automatic TimingAt higher prices – less unitsAt lower prices – more units

Rising Market Falling Market

Market Units Purchased MarketUnits Purchased

Save Regularly

You do an SIP of

Rs.10,000 per month

Total Amount Invested

Mutual Fund Equity Schemes

BSE Sensex

Invt. ValueAnn.

ReturnsInvt. Value

Ann. Returns

During last 5 years Rs. 6 lacs 18.64 lacs 47.09 13.96 lacs 34.93

During last 10 years Rs.12 lacs 89.94 lacs 37.89 30.65 lacs 17.92

Past Performance (SIP)

Performance of Systematic Investment Plans (SIPs) in Mutual Fund Equity oriented schemes

Also Equity Mutual Funds have outperformed Sensex, as shown above

Figures are as on 30th June 2006. For MF SIP performance for 5 year & 10 years around 30 and 5 large schemes respectively, have been considered. Mutual fund investments are subject to market risks. Past performance may

or may not be sustained in future. Please read the offer document offer investing.

• “We do not need to be wealthy to be an investor …But we can be wealthy if we are investors”

• The Right way to create wealth …

Buying potential big winning stocksSuccessfully timing the marketsFollowing Expert Advisors recommendationsSaving a lot of money

• Wealth can be successfully created if we just follow the three basic principles ...

Starting early and saving for longInvesting in the right asset classInvesting Regularly – big or small

Wisdom

XXXX

Child Marriage

We all have goals in life like…Car

Child Education

Dream House

Using the Wisdom

Using the Wisdom

We can direct our savings in such a manner that we achieve our goals,

the way we wish

DISCIPLINED SAVINGS +

SUFFICIENT TIME+

RIGHT ASSET CLASS=

GOAL ACHIEVEMENT

Presents

Set your Goal & we’ll help you Achieve it

• NJ GAP is a unique goal based investment programme through a Systematic Investment Plan (SIP)

• Investors in this programme have the flexibility of choosing a monthly investment amount as well as the investment duration of their choice

• This should enable the investors to plan for their goals without needing to review, re-invest or for that matter, time the markets.

Monthly Investment Options Investment Horizons

Rs.2,000/- Rs.5,000/- 5 years 10 years

Rs.10,000/- Rs.15,000/- 15 years

Presenting

• Investments in the right asset class …In Equities with potential to earn very attractive returns

• Investment at lower risk…By Diversification, professional management, and investing by way of SIP

• Investment in a Scheme with Sound Performance History Investments across market caps in companies like to deliver capital appreciation

Advantages to You …

• Investment with a Fund House of Repute Principal PNB AMC – a joint venture between Principal Finance Group, Punjab National Bank & Vijaya Bank

• Investments are highly liquid There is no lock-in period of any kind and investments can be very easily

redeemed at any time you wish

• Hassle-free process of wealth creation You only have to fill the GAP Application form and the Auto Debit

(ECS) form and submit it with one cheque*

Note: All cheques should be dated 15th August 2006. The monthly ECS will begin thereafter.

About Principal Pnb Asset Management Company Pvt Ltd (in association with Vijaya Bank)

Today Principal Mutual Fund in India manages around Rs.10,000 crore assets for over 5,41,000 investors

Scheme with a sound performance history, from a fund house of repute

Principal Growth Fund:

An open-ended diversified equity fund that invests in well managed companies that are likely to deliver superior capital appreciation over the medium-term.

• A diversified equity fund with a combination of top-down & bottom-up approaches

• One core portfolio offering equity across styles, market caps and sectors

• Choice of Large Cap and Mid Cap companies-Mid cap exposure restricted up to 30% of the portfolio

Investment PeriodAnnualised Returns

Principal Growth Fund S&P Nifty

1 Year 50.02% 47.11%

3 Years 58.36% 44.93%

5 Years 36.43% 21.32%

Monthly Investment of Rs.10,000/- in Principal Growth Fund for the last 60 months have generated 41.76% returns

All the figures are as on 31st May, 2006

Mutual fund in investments are subject to market risks. Past performance may or may not sustained in future. Please read the offer document carefully before investing

Impressive track record …

Statutory Details:Principal Mutual Fund has been constituted as a trust with Principal Financial Group (Mauritius) Limited, Punjab National Bank and Vijaya Bank as the co-settlors. Sponsor: Principal Financial Services Inc., USA. Trustee: Principal Trustee Company Private Limited. Investment Manager: Principal Pnb Asset Management Company Private Limited.

Risk Factors: Mutual funds and securities are subject to market risks and there can be no assurance and no guarantee that the objectives of Principal Mutual Fund can be achieved. As with any investment in securities, the NAV of the units issued under the Scheme (s) can go up or down, depending up on the factors and forces affecting the capital markets. Past performance of the Sponsor/AMC/ Principal Mutual Fund/Punjab National Bank/ Vijaya Bank does not indicate or guarantee the future performance of the Scheme (s) of Principal Mutual Fund. Principal Growth Fund is only the name of the Scheme and does not in any manner indicate either the quality of the Scheme or its future prospects or returns. Investors are therefore urged to read the Offer Document (s) carefully, and consult their legal/tax/investment advisor before they invest in the scheme(s). The Sponsor is not responsible or liable for any loss resulting from the operations of the Principal Mutual Fund beyond the initial contribution of an amount of Rs 25 lakhs towards setting up Principal Mutual Fund. Investors in the scheme(s) are not being offered a guaranteed or assured rate of return or monthly or regular/periodical income distribution, and the actual returns and/or periodical income distribution to an investor will be based on the actual NAV, which may go up or down, depending on the market conditions. Investment of the Scheme’s assets in fixed income securities is subject to credit risk, interest rate risk, settlement risk and liquidity risk. Scheme specific risk factors are mentioned in the offer document. Kindly refer to the Offer Document of the respective schemes carefully prior to investing.