Sip Letter

Dear Investor,

It is Time to take Wise Decisions in Volatile Market Lets take one this Diwali and Start our journey from Being Rich to Being Wealthy. We all work hard to earn money but how many of us make sure that our money also works for us as hard as we work to earn it. We all do 'Laxmipuja' on Diwali but how many of us know the trick to accumulate 'Laxmi' in real sense. The road that takes us from being 'rich' to being 'wealthy' is less traveled but it is inevitable to take. We have heard about Seven Wonders of the World. But have you ever thought or heard about eighth wonder of the world. Here we offer the eighth wonder of the world in form of Power of Compounding and SIP. SIP allows you to take journey to ultimate wealth creation through step-by-step process of investing. SIP works on basic principle of regular investment. This creates discipline investment habit even with small amount. Through SIP you can invest conveniently, regularly, take advantage of equity growth and can time the market automatically. Now you must be wondering why we are saying SIP an 8th wonder of the world. Here is the proof: Mon. Inv.

Exp. Retn.

Yrs

Total Inv.

Final Amount

Recurring Product

Rs.5000

8%

15

Rs.9 lakhs

Rs.16.98 lakhs

Equity Fund SIP

Rs.5000

15%

15

Rs.9 lakhs

Rs.30.81 lakhs

The same amount of Rs.5000 per month can grow to Rs.17 lakhs in recurring product and same amount can grow to Rs.31 lakhs in SIP. So the same amount of investment gives you double the final value in SIP compared to recurring. So SIP is not just a tool of investment but also a wealth creation machine. Just look at how few of the leading equity schemes have created wealth in last few years by investing only Rs. 2000 per month. 5-Year Return: Scheme

10 Year Return: Amount

CAGR

Scheme

Amount

CAGR

Reliance Growth

Rs. 2,65,451

32.74%

Reliance Growth

Rs. 19,35,923

39.36%

HDFC Top 200

Rs. 2,32,813

27.14%

HDFC Top 200

Rs. 12,12,811

30.60%

Reliance Vision

Rs.2,08,173

22.44%

Reliance Vision

Rs.14,85,698

34.39%

Sundaram Select Midcap

Rs.2,40,919

28.61%

(SIP done on 10th of every month. Returns are as of 31st Aug 2008) Remember in last five years an investor would have invested Rs.1.20 lakhs and in last ten years Rs.2.40 lakhs but when we compare return between five and ten years, when amount invested gets doubled (from Rs.1.20 lakh to Rs.2.40 lakh) end value becomes close to 7.5 times in Reliance Growth Fund. (Rs.2.65 lakh for 5-year return and Rs.19.35 lakh for 10-year return.). This shows the power of compounding. So lets start our journey from being 'Rich' to being 'Wealthy' by taking advantage of this wonderful 'All Time Wealth Machine - ATWM' called SIP. Always remember it is the time in the market that matters and not timing the market. Take advantage of the market volatility by keeping yourself invested and continuing investments in a disciplined manner. Wish you a happy festive season ahead. Regards

Drashti Investments [email protected] 09221890056

YOUR DETAILS

Super Performing Funds for SIP

Tenure Investment Rs. 10,000/month

5 years 600,000

7 years 840,000

10 years 1,200,000

12 years 1,440,000

Current Value of Investment (Rs.)

Scheme Name Reliance MF 1,381,517

4,384,816

9,887,516

34.42%

47.31%

39.74%

37.07%

Reliance Vision Fund

1,065,870

3,192,419

7,488,599

11,436,789

23.39%

37.96%

34.51%

31.62%

Reliance Banking Fund

1,085,925

--

--

--

24.18%

--

--

--

1,383,311

39,393,441

--

--

34.47%

44.13%

--

--

SBI Magnum Global Fund

1,220,795

3,249,895

--

--

29.12%

38.48%

--

--

SBI Magnum Multiplier Fund

1,217,496

2,995,216

4,884,458

6,561,355

29%

36.10%

26.56%

23.37%

1,027,325

2,512,526

4,103,251

5,409,636

21.85%

31.03%

23.33%

20.51%

1,125,331

--

--

--

25.67%

--

--

--

1,104,580

2,792,910

4,659,583

--

24.89%

34.08%

25.69%

--

1,026,713

2,513,061

--

--

29.13%

30.81%

--

--

874,453

2,044,884

--

--

15.19%

25.14%

--

--

944,267

2,481,414

--

--

18.35%

30.67%

--

--

1,083,952

2,827,122

6,510,410

12,100,428

24.10%

34.43%

31.90%

32.46%

1,155,067

3,021,838

5,914,845

--

26.77%

36.36%

30.12%

--

1,023,276

2,566,811

4,408,373

6,637,710

21.69%

31.65%

25.68%

25.17%

1,238,302

--

--

--

29.72%

--

--

--

1,099,691

2,619,811

4,606,651

--

24.70%

32.23%

25.48%

--

1,220,195

--

--

--

29.10%

--

--

--

Reliance Growth Fund

16,466,520

SBI MF SBI MSFU Contra Fund

Tata MF Tata Select Equity Fund Tata Equity Opportnities Fund Tata Pure Equity Fund Principal MF Principal Tax Savings Fund Principal Growth Fund Principal Resurgent India Equity Fund HDFC MF HDFC Equity Fund HDFC Top 200 Fund HDFC Capital Builder Fund Sundaram MF Sundaram Select Midcap Fund Sundaram Growth Fund Sundaram Select Focus Fund

Note: Returns as on 31 July 2008 All % returns on CAGR Basis SIP installment assumed to be hit on 10th of every month SIP value of Rs. 10,000 per month considered for the above calculations Last installment for all the schemes taken above is assumed for the month of July 08