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Dollar Cost AveragingaThe essential investment strategyfor your monthly savings : 

Dollar Cost AveragingaThe essential investment strategyfor your monthly savings

Slide 2: 

Warren Buffet Investing is the art of putting cash in now to get even more cash out later

Dollar Cost Averaging : 

Dollar Cost Averaging b) “Lump sum” investment a) Regular savings (from your salary) Two ways of adding capital to your portfolio:

Investing your ongoing monthly savings : 

Investing your ongoing monthly savings Your stream of savings of income Ongoing (relatively small) amounts of money Build up into a chunk of money over time Position this stream cheaply now, to profit later

Dollar Cost Averaging : 

Dollar Cost Averaging WarrenBuffet Investing is the art of putting cash in now to get even more cash out later

Dollar Cost Averaging – collecting units : 

Dollar Cost Averaging – collecting units “Confiscate those assets and attach them to my holdings”

Dollar Cost Averaging : 

Dollar Cost Averaging What market characteristics should you look for?

Collecting units in a rising market : 

233 $50 $45 $40 $35 $20 $30 $55 227 222 217 213 204 Total Units 1316 Collecting units in a rising market

Collecting units in a dipping market : 

233 244 Total Units 1695 Collecting units in a dipping market 294 345 323 256 $50 $45 $40 $35 $20 $30 $55

Collect more units in a dipping market : 

Collect more units in a dipping market $50 $45 $40 $35 $20 $30 $55 244 294 345 323 256 233 227 222 217 213 204

DCA: Collecting units : 

DCA: Collecting units 1316 units 1695 units You collected In rising market In dipping market

DCA: Collecting units : 

$ 64,498 $ 66,105 You invested 1316 units 1695 units $ 4,498 $ 6,105 Now worth Current profit You collected In rising market In dipping market $ 60,000 $ 60,000 7% 10% DCA: Collecting units

Collecting units in a rising market : 

Total Units 1316 Now worth $ 64,498 Collecting units in a rising market $50 $45 $40 $35 $20 $30 $55

Collecting units in a dipping market : 

Total Units 1695 Now worth $ 66,105 Collecting units in a dipping market $50 $45 $40 $35 $20 $30 $55

DCA: Collecting units : 

$ 64,498 $ 66,105 You invested 1316 units 1695 units $ 4,498 $ 6,105 Now worth Current profit You collected In rising market In dipping market $ 60,000 $ 60,000 7% 10% DCA: Collecting units

Dollar Cost Averaging : 

Dollar Cost Averaging What happens if you Dollar Cost cheaply … then wait?

Slide 17: 

Total Units 1316 Now worth $ 65,814 Collecting units in a rising market $50 $45 $40 $35 $20 $30 $55

Slide 18: 

Total Units 1695 Now worth $ 84,750 Collecting units in a dipping market $50 $45 $40 $35 $20 $30 $55

DCA: Collecting units : 

$ 65,814 $ 84,750 You invested 1316 units 1695 units $ 5,814 $ 24,750 Now worth Current profit You collected In rising market In dipping market $ 60,000 $ 60,000 10% 41% DCA: Collecting units

Slide 20: 

7% 10% Collecting units in a rising market $50 $45 $40 $35 $20 $30 $55

Slide 21: 

10% 41% Collecting units in a dipping market $50 $45 $40 $35 $20 $30 $55

Dollar Cost Averaging : 

Dollar Cost Averaging Warren Buffet Investing is the art of putting cash in now to get even more cash out later

Dollar Cost Averaging : 

Dollar Cost Averaging Dollar Cost a cheap market to lower your average purchase price

Slide 24: 

Collecting units in a rising market $50 $45 $40 $35 $20 $30 $55

Slide 25: 

Collecting units in a dipping market $50 $45 $40 $35 $20 $30 $55

DCA: Collecting units : 

DCA: Collecting units $ 35.40 $ 45.60 $50 $45 $40 $35 $20 $30 $55

Dollar Cost Averaging : 

Dollar Cost Averaging “Confiscate those assets and attach them to my holdings”

Where investors go wrong… : 

Where investors go wrong… $ 1,000 invested monthly for 5 years What your statements will look like…

India (Aug 2000 to 2005) : 

India (Aug 2000 to 2005) 175 100 150 50 0% | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004

India (Aug 2000 to 2005) : 

India (Aug 2000 to 2005) 175 100 150 50 +4% | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004

India (Aug 2000 to 2005) : 

India (Aug 2000 to 2005) 175 100 150 50 -15% | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004

India (Aug 2000 to 2005) : 

India (Aug 2000 to 2005) 175 100 150 50 -7% | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004

India (Aug 2000 to 2005) : 

India (Aug 2000 to 2005) 175 100 150 50 -12% | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004

India (Aug 2000 to 2005) : 

India (Aug 2000 to 2005) 175 100 150 50 -12% | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004

India (Aug 2000 to 2005) : 

India (Aug 2000 to 2005) 175 100 150 50 +4% | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004

India (Aug 2000 to 2005) : 

India (Aug 2000 to 2005) 175 100 150 50 +18% | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004

India (Aug 2000 to 2005) : 

India (Aug 2000 to 2005) 175 100 150 50 +34% | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004

India (Aug 2000 to 2005) : 

India (Aug 2000 to 2005) 175 100 150 50 +24% | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004

India (Aug 2000 to 2005) : 

India (Aug 2000 to 2005) 175 100 150 50 +37% | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004

India (Aug 2000 to 2005) : 

India (Aug 2000 to 2005) 175 100 150 50 +85% | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004

The most common mistakes : 

The most common mistakes Choosing a steadily rising market Being impatient: “It’s not working” Getting scared – stopping buying Or worse….. selling

India (Aug 2000 to 2005) : 

India (Aug 2000 to 2005) 175 100 150 50 +85% | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004

The most common mistakes : 

The most common mistakes Trying to dollar cost single stocks

Dollar Cost Averaging : 

Dollar Cost Averaging Can protect you even in a really lousy market

Slide 45: 

Japan (Aug 2000 to 2005) 100 75 125 50 | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004 0%

Slide 46: 

Japan (Aug 2000 to 2005) 100 75 125 50 21% | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004

Slide 47: 

Japan (Aug 2000 to 2005) 100 75 125 50 -7% -27% -21% -22% -22% -12% 0% 0% 0% 6% 11% | Aug 2000 | Aug 2001 | Aug 2002 | Aug 2003 | Aug 2005 | Aug 2004

Dollar Cost Averaging : 

Dollar Cost Averaging Can protect you even in a really lousy market

Dollar Cost Averaging : 

Dollar Cost Averaging Using small amounts of capital To build a worthwhile position At an excellent average purchase price To reap a meaningful profit in due course

Dollar Cost Averaging enables you to: : 

Dollar Cost Averaging enables you to: Start investing before you have a large chunk of money Confiscate cheap assets and attach them to your holdings Get organised financially with a disciplined savings strategy Make excellent long term returns

The Recipe for Explosive Returns : 

The Recipe for Explosive Returns Find a market that’s down and has long term potential Dollar Cost it like mad Once it’s rising strongly, leave your invested money there Start hammering another low market Repeat If it falls further, scoop up even more at cheaper prices

Dollar Cost Averaging : 

“Confiscate those assets and attach them to my holdings” Dollar Cost Averaging

www.philippahuckle.coma : 

www.philippahuckle.coma Copyright © The Philippa Huckle Group Ltd 2011 All rights reserved

Important InformationThe material contained herein is for information only and does not constitute investment advice or a recommendation to any reader of this material to buy or sell investments and shall not be capable of creating any contractual or other legal obligations on the part of The PhilippaHuckle Group Ltd and The PhilippaHuckle Group. The information is intended to provide only a general outline of the subjects covered. It should not be regarded as comprehensive or sufficient for making decisions, nor should it be used in place of professional advice. This presentation is intended for information only. Care has been taken to ensure the accuracy of this presentation but The PhilippaHuckle Group Ltd and The PhilippaHuckle Group accepts no responsibility for any errors or omissions contained therein. This is neither an offer to sell nor a solicitation of an offer to purchase any securities. If you require any further information or explanations, or specific advice, please contact us and we will be happy to discuss matters further. Accordingly, The PhilippaHuckle Group Ltd and The PhilippaHuckle Group accepts no responsibility for loss arising from any action taken or not taken by anyone using this information. : 

Important InformationThe material contained herein is for information only and does not constitute investment advice or a recommendation to any reader of this material to buy or sell investments and shall not be capable of creating any contractual or other legal obligations on the part of The PhilippaHuckle Group Ltd and The PhilippaHuckle Group. The information is intended to provide only a general outline of the subjects covered. It should not be regarded as comprehensive or sufficient for making decisions, nor should it be used in place of professional advice. This presentation is intended for information only. Care has been taken to ensure the accuracy of this presentation but The PhilippaHuckle Group Ltd and The PhilippaHuckle Group accepts no responsibility for any errors or omissions contained therein. This is neither an offer to sell nor a solicitation of an offer to purchase any securities. If you require any further information or explanations, or specific advice, please contact us and we will be happy to discuss matters further. Accordingly, The PhilippaHuckle Group Ltd and The PhilippaHuckle Group accepts no responsibility for loss arising from any action taken or not taken by anyone using this information.

Important InformationThe value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Where overseas investments are held the rate of currency exchange may cause the value of such investments to go down as well as up. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in established markets. Economies in Emerging Markets generally are heavily dependent upon international trade and, accordingly, have been and may continue to be affected adversely by trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which they trade. These economies also have been and may continue to be affected adversely by economic conditions in the countries in which they trade.Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. The PhilippaHuckle Group Ltd and The PhilippaHuckle Group accepts no liability for any failure to meet such forecast, projection or target. Any performance information shown refers to the past and should not be seen as an indication of future returns. Stockmarket investments should be viewed as a medium to long term investment and should be held for at least five years..ThePhilippaHuckle Group Ltd and The PhilippaHuckle Group has based this presentation on information obtained from sources it believes to be reliable but which it has not independently verified. The PhilippaHuckle Group Ltd and The PhilippaHuckle Group accept no responsibility as to its accuracy or completeness. : 

Important InformationThe value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Where overseas investments are held the rate of currency exchange may cause the value of such investments to go down as well as up. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in established markets. Economies in Emerging Markets generally are heavily dependent upon international trade and, accordingly, have been and may continue to be affected adversely by trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which they trade. These economies also have been and may continue to be affected adversely by economic conditions in the countries in which they trade.Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. The PhilippaHuckle Group Ltd and The PhilippaHuckle Group accepts no liability for any failure to meet such forecast, projection or target. Any performance information shown refers to the past and should not be seen as an indication of future returns. Stockmarket investments should be viewed as a medium to long term investment and should be held for at least five years..ThePhilippaHuckle Group Ltd and The PhilippaHuckle Group has based this presentation on information obtained from sources it believes to be reliable but which it has not independently verified. The PhilippaHuckle Group Ltd and The PhilippaHuckle Group accept no responsibility as to its accuracy or completeness.

Important InformationThe information and opinions contained in this document are for background purposes only and do not purport to be full or complete. No reliance may be placed for any purpose on the information or opinions contained in this document or their accuracy or completeness. No representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or opinions contained in this document by the Investment Manager / Investment Advisor and no liability is accepted by the Investment Manager / Investment Advisor for the accuracy or completeness of any such information or opinions. The Investment Manager / Investment Advisor believes that the source of this information is reliable however it cannot and does not guarantee, either expressly or implicitly, and accepts no liability for, the accuracy, validity, timeliness, merchantability or completeness of any information or data (whether prepared by the Investment Manager / Investment Advisor or by any third party) for any particular purpose or use or that the information or data will be free from error. The Investment Advisor does not undertake any responsibility for any reliance which is placed by any person on any statements or opinions which are expressed herein. Neither the information nor any opinions expressed herein constitute a solicitation by the Investment Advisor for the purchase or sale of any securities or other financial instruments. Neither the Investment Manager/ Investment Advisor, nor any of its affiliates, directors, officers or employees will be liable or have any responsibility of any kind for any loss or damage that any person may incur resulting from the use of this information. The information contained herein is solely for information purposes, is current as of the date indicated above and is subject to change from time to time. None of the Fund, the Investment Advisor, or other persons or entities named herein are obligated to notify you of changes to this information and none of the foregoing assume any responsibility for any loss suffered in reliance on this information. The views expressed above were held at the time of preparation and are subject to change without notice. : 

Important InformationThe information and opinions contained in this document are for background purposes only and do not purport to be full or complete. No reliance may be placed for any purpose on the information or opinions contained in this document or their accuracy or completeness. No representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or opinions contained in this document by the Investment Manager / Investment Advisor and no liability is accepted by the Investment Manager / Investment Advisor for the accuracy or completeness of any such information or opinions. The Investment Manager / Investment Advisor believes that the source of this information is reliable however it cannot and does not guarantee, either expressly or implicitly, and accepts no liability for, the accuracy, validity, timeliness, merchantability or completeness of any information or data (whether prepared by the Investment Manager / Investment Advisor or by any third party) for any particular purpose or use or that the information or data will be free from error. The Investment Advisor does not undertake any responsibility for any reliance which is placed by any person on any statements or opinions which are expressed herein. Neither the information nor any opinions expressed herein constitute a solicitation by the Investment Advisor for the purchase or sale of any securities or other financial instruments. Neither the Investment Manager/ Investment Advisor, nor any of its affiliates, directors, officers or employees will be liable or have any responsibility of any kind for any loss or damage that any person may incur resulting from the use of this information. The information contained herein is solely for information purposes, is current as of the date indicated above and is subject to change from time to time. None of the Fund, the Investment Advisor, or other persons or entities named herein are obligated to notify you of changes to this information and none of the foregoing assume any responsibility for any loss suffered in reliance on this information. The views expressed above were held at the time of preparation and are subject to change without notice.