3. We Start at 8:00 am everyday…
8:30 am leave home
an hour to office
10 hours of high stress environment
another hour to get back home...
….continues for 6 days a week !!
4. And Back at home...
Ageing Parents
Loving spouse
Growing Children
5. We all want...
A house of our own
A car
Good education for children
A peaceful retired life
Money doesn’t ensure happiness
but certainly it saves you from miseries of life……
6. To achieve this - Save and Invest
Saving is putting aside money, but
Investing means making your money work hard...
7. …and Investment Options are
Provident Fund, LIC, NSC, PPF
Tax efficient, Safety but Liquidity Constraints.
Fixed Deposits and RBI Bonds
High Safety but Moderate Returns, High Tax incidence
and Liquidity Constraints.
Savings Bank Account
Highly Liquid but Low Returns and High Tax
incidence.
Mutual Funds…
8. Traditional Products – Returns
Fixed
Deposit
RBI Bonds
/NSCs
PPF
Investment 100.00 100.00 100.00
Interest 9.00 8.00 8.80
Tax (@30.90%) 2.78 2.47 0.00
Net Return (Rs.) 6.22 5.53 8.80
Net Return (%) 6.22 5.53 8.80
Lock-in 3 years 6 years 15 years
Returns at best can meet the inflation. Thus
these don’t give any tangible gains.
10. “The policy of being too cautious,
is the greatest risk of all”
- Jawaharlal Nehru
11. We face……..>>>>
• The Risks of…..
Inflation
Inadequate Planning
Lack of Care of our Investments
What does one do ?
12. Five Important
Financial Lessons
1. Start Early
2. Invest Regularly
3. Plan Adequately
4. Save and Invest
5. Manage Risk
Building Wealth Through Customized
Investment Management….
14. Benefits of Mutual Funds
Liquidity Redemptions within One to Three days
Easy to Invest and Easy to Redeem
Diversified Portfolio Leads to Risk Control
Switching Between Funds Allowed
Disclosure of Portfolio & NAVs Declared Daily
Regulated by SEBI
Section 80 C, Tax Free Dividend and Capital
Gains Tax benefits
Convenience
Risk Diversification
Flexibility
Transparency
Regulated
Plus
Tax Benefits
15. What Mutual Funds are…
A common Pool of Money
In the Form of a Trust
Managed by a Team of Professionals
Regulated by SEBI
Monitoring by RBI of Money Market Funds
Transparent.
16. …Why we need them.
Information
• …real time, to take an “informed” decision
Skill
Time
• …to constantly monitor your investments
• …ability to interpret information and use it
Timely Execution
• …trying to time the market
17. Types of Mutual Funds
Debt Funds
• Invest in Bonds, Commercial Papers, Govt. Securities and T-Bills
• The objective is to maximize returns with security
Equity Funds
• Invests in shares and stocks of companies
• Returns are dependent on the Capital Market movement
Balanced Funds
• Invests in Equity as well as debt to strike a balance between growth and
safety
• Offer higher returns than a debt fund but is prone to more risks due to
equity component
18. And for your regular savings
SYSTEMATICSYSTEMATIC
INVESTMENT PLANINVESTMENT PLAN
(SIP)(SIP)
An attempt to make life easier
19. Features
• As simple as a Provident Fund deduction
• Tailor made plans
• Automatic savings
• Adequately Liquid
• Tax efficient returns
20. Liquid and FMPs – Underlying
Investments
Government Securities
Corporate Bonds
Treasury Bills
Call Money
Reverse Repos
Commercial Papers
Structured Debt Instruments
The Instruments are chosen as per the stated
investment objective of the scheme.
What you can GAIN
25. You Achieve
• Freedom
To put all your efforts into what you do best
• Peace of mind
At the end of a tiring day in office
• Time
Your family has a right to it