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Equity Investment Through

Equity Investment Through. Mutual Funds. Agenda. Why Save Why Save through Equities Why Equities through mutual funds Why Systematic Investment Plan. Why Save?. B’cos the cost of living is  … Toothpaste LPG Gas Education . 1983 Rs.4 Rs.27 1000’s. 2003 Rs.20

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Equity Investment Through

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  1. Equity Investment Through Mutual Funds Sayali Investments

  2. Agenda • Why Save • Why Save through Equities • Why Equities through mutual funds • Why Systematic Investment Plan Sayali Investments

  3. Why Save? • B’cos the cost of living is … • Toothpaste • LPG Gas • Education 1983 Rs.4 Rs.27 1000’s 2003 Rs.20 Rs.250 100,000’s 2023 Rs.100 Rs.2315 ? Sayali Investments

  4. Why Save? • …while sources of revenue are • Age 25 Start career 100% dependent on job • Age 30 Marriage • Age 40 Buying a house • Age 55 Children’s Education/ • Marriage • Age 60 Retirement 100% dependent on earnings from investment Sayali Investments

  5. Are your savings earning you enough? • Ram, 30 yrs • Present monthly • spending: Rs. 15,000 • Estimated monthly • spending at 60: Rs. 65,000 • Accumulation • required at 60: Rs. 85 lakhs Inflation assumed @5% p.a Returns assumed @9% p.a. Sayali Investments

  6. 9% 8% 7% 6% Reality Check… • Falling rates will reduce the net accumulation from traditional Investment avenues • Age: 30 yrs; Annual savings: Rs.40,000; Increase in Annual Saving: 5% Rs.85.0 lakhs Accumulation at 60 Rs.71.4 lakhs Rs.60.1 lakhs Rs.50.9 lakhs Sayali Investments

  7. Savings(Wealth creation)– Basic Principles…(1) • Start early… Value at the age 60 Rs.17.45 lakhs Rs.12.97 lakhs Ram: Rs.1 lakh invested at the age of 30 Shyam: Rs.5 lakhs invested at the age of 50 Returns: 10% Power of Compounding Sayali Investments

  8. Savings(Wealth creation)– Basic Principles…(2) • Save regularly…it all adds up! Rs.21.7 lakhs Rs.1000 invested every month for 30 years @10% 30 A small amount invested regularly can grow to substantial lumpsum Sayali Investments

  9. Savings(Wealth creation)– Basic Principles…(3) • Earn more…it can make a big difference One time investment of Rs.1 lakh invested for 30 yrs @ 6% @ 10% @ 15% 5.7 lakhs 17.45 lakhs 66.2 lakhs Sayali Investments

  10. O R Wealth Creation Principle is nothing but Enhancement Of future Value. Sayali Investments

  11. Enhancing Future Value • Wealth creation is nothing but enhancement of future value • FV = PV (1 + r ) n n PV r The more you save, makes a difference The sooner you start, makes a difference The more you earn, makes a difference Sayali Investments

  12. How to enhance Future Value in the Long run ?? • Starting Early & Saving Regularly helps in wealth creation but the most important part in wealth creation are the returns & EQUITY is the only asset class which has a potential to generate higher returns in the long term……… BUT PEOPLE OFTEN LOOSE MONEY IN EQUITY ……… Sayali Investments

  13. Why People Loose money in Equity ? Investors gets trapped in the Cycle of fear , greed and hope Sayali Investments

  14. Other Reasons of Failure • Equity Investments are made on Tips & Flavors • Equity Investments are tracked part time & not full time • Equity Investments are made for short term • Equity Investments are not adequately diversified • People look at acquisition price & not future value Sayali Investments

  15. Wealth Creation MANTRA To break the cycle of Fear,Greed & Hope & become a successful equity investor one should START SIPs of Mutual Funds WHY !!!! Sayali Investments

  16. Why Equity Mutual Funds are successful? Sayali Investments

  17. Why Equity Mutual Funds are successful? Sayali Investments

  18. Why Systematic Investment Plan? Sayali Investments

  19. What is Rupee Cost Averaging / SIP Sayali Investments

  20. We call it Disciplined Regular Investment • Science, Art or A Habit? • The Markets are volatile: they move up and down in an unpredictable manner • Invest a fixed amount, at regular, predetermined intervals and use the market fluctuations to your benefit • How does it help you: • You buy more more when the market is down • You buy less when the market is up • Over time the market fluctuations are averaged • Most likely you will realise a saving on the cost per unit • This leads to HIGHER RETURNS Sayali Investments

  21. Power of Compounding - QUIZ • Rs. 10,000 invested every month for a period of 30 years At 8% - At 15% - At 20% - 1.5 crores Postal Recurring SIP in Balance Funds SIP in Equity Funds 7.0 crores 23 crores Sayali Investments

  22. Working of SIP in any kind of market Sayali Investments

  23. Happy Investing !!! Sayali Investments

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