1 / 23

Investment Planning

Investment Planning. Rtn.K.Raghu Past President Rotary Bangalore Peenya. Investment Planning. Investment Scenario – 2005-2006 Booming Indian Economy Emergence of the Smart Investor

james-french
Download Presentation

Investment Planning

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Investment Planning Rtn.K.Raghu Past President Rotary Bangalore Peenya

  2. Investment Planning Investment Scenario – 2005-2006 • Booming Indian Economy • Emergence of the Smart Investor • Investor friendly Capital Markets • Rewarding year for investors in capital markets, mutual funds and real estate • Increased FII participation

  3. Investment Strategy • Develop a habit of small savings • Save for a rainy day since future is uncertain • Pay your liabilities as soon as possible • Plan for your retirement • Create a source for Passive Income eg.Rental Income and Dividend income • Invest in Tax Saving Investment schemes • Spend less than what you earn • Take person interest in Investment decisions

  4. Investment Mix Your investment portfolio should take care of your : • Current needs of your family • Children educational needs • Children’s Marriage • Buying a House • Pension during retirement.

  5. Tips for Investing Safely and Rightly • Don’t make your investment decisions on hear say. • Understand risk factors linked to investments • Review and track your investments periodically. • Buy Insurance for coverage and not tax purposes. • Take the help of an Investment Consultant

  6. Investment Tips for Beginners • Start saving and investing early in life. • Prepare an investment roadmap. • Invest in a diversified portfolio. • Buy insurance for coverage and not tax purposes. • Invest in Stocks if you are prepared to take risks. • Invest in Mutual Funds if you are prepared to take moderate risks. • Have an investment discipline.

  7. Essentials requirements for a Good Investment • Safety • Liquidity • Return

  8. Investment Options • Life Insurance • Post Office Schemes • Equity Shares • Mutual Funds • Company Deposits • Bank Deposits • Real Estate • Gold and Silver

  9. Equity Shares • Capital Appreciation • Bonus Shares • Annual Dividend • Right Shares • Can be pledged as a security • Easy liquidity

  10. Equity Shares - Problems • Changing Market Value. • Uncertain government policies. • No guarantee of profits. • Need for constant monitoring • Oversubscription of IPO’s • Professional Guidance required for making right investment in shares.

  11. Life Insurance • Protects you and your family • Promotes regular savings • Tax Benefits • Earn attractive bonus

  12. Insurance – Do’s and Don'ts • Keep your premiums affordable • Choose a right plan • Don’t over /under insure • Pay premiums on time since partly paid policies are not eligible for bonuses. • Revive Lapsed policies • Keep your spouse informed about your Insurance coverage. • File all the insurance receipts. • Ensure you nominate your spouse. • Consult a good insurance advisor.

  13. Post Office Schemes - Options • Post Office Monthly Income Scheme • National Savings Certificate • Kisan Vikas Patra • Public Provident Fund • Senior Citizens Saving Schemes • 5 year Recurring Deposit • Time Deposits

  14. Post Office Schemes – Features • Backed by Government of India • Tax Benefits • Suitable for small investors • Attractive rate of interest • Liquidity

  15. Mutual Funds • Professionally managed • Diversification of risk • Daily NAV • High Liquidity • Tax Concessions • Freedom of Emotional attachment • Automatic re-investment of Dividend • Freedom from Monitoring and housekeeping

  16. Bank Deposits • High Safety • Low Interest • High Liquidity • Easy to manage

  17. Bank Deposits - Suggestions • Keep Small Deposits – Less than One lakh • Deposits should be in Joint names • Renew Matured Deposits • New Tax benefits from FY 2006-2007 – Rs.1,00,000 under Section 80 C

  18. Mutual Funds - Options • Equity Funds • Bond Funds • Balanced Funds • Tax Exemption Funds • Liquidity Funds

  19. Mutual Funds - Dangers • No guaranteed return • Risk of inefficient management

  20. Real Estate • Agricultural Land • Farmhouses • Urban Land • Residential Property

  21. Real Estate -Advantages • Emotional Satisfaction • Savings of Rent • Huge Capital Appreciation • Tax Incentives • Easy availability of Home Loans

  22. Tax Benefits for InvestmentsUnder Section 80 C – Rs.1,00,000 • Provident Fund • Public Provident Fund • Life Insurance • Pension Funds • Infrastructure Bonds • National Savings Certificate • Kisan Vikas Patra • Equity Linked Savings Scheme

  23. Conclusion • World of investments becoming more interesting, exciting and complicated. • Proliferation of various Investment schemes • Investment Planning is a must for every person.. • Investment Planning thus involves Intelligent analysis, judicious decision making and a strong sense of visualisation.

More Related