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Vikalpa Finvest

Vikalpa Finvest. CONTENTS . FINANCIAL PLANNING EQUITY SIP. Financial Goals. Phase I. Phase II. Phase III. Child’s Marriage. Child’s Education. Housing. Child birth. Marriage. 38 yrs. 10- 20 yrs. 22 yrs. Earning Years. Post Retirement Years . Education. Age- 22 yrs.

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Vikalpa Finvest

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  1. VikalpaFinvest

  2. CONTENTS • FINANCIAL PLANNING • EQUITY • SIP

  3. Financial Goals Phase I Phase II Phase III Child’s Marriage Child’s Education Housing Child birth Marriage 38 yrs 10- 20 yrs 22 yrs Earning Years Post Retirement Years Education Age- 22 yrs Age- 60 yrs

  4. INVESTMENT OPTIONS TO REALISE YOUR FINANCIAL DREAMS • GOLD • BANK FD’S. • SMALL SAVING SCHEMES • RBI BONDS • CO. DEPOSITS • EQUITY • MUTUAL FUNDS

  5. Why equities in long run ? Gold Bank FD Co’s Deposit Equity Source: RBI Data from 1980 - 2008

  6. THE BIGGER RISKLOSS OF PURCHASING POWER But equities are risky?????

  7. INFLATION YOUR ENEMY!(Assuming Inflation rate 7%) • RS. 10000 TODAY WILL BE WORTH…… • AFTER 5 YEARS RS 6957 • AFTER 10 YEARS RS 4840 • AFTER 20 YEARS RS 2342 • AFTER 30 YEARS RS 1134

  8. EQUITY INVESTMENT??

  9. What is Equity? EQUITY IS ‘EQUAL OWNERSHIP’ OF THE COMPANY Returns from equities have trailed profit growth rates for very long Long term returns from Equities = Profit growth rates + Dividends Over 1871-2008(US MARKET) real returns from US stocks : 7 % p.a. real profit growth + real dividends yields : 6.7 %p.a.

  10. Sensex Growth from 1980 -2008 • After all, in the last 28 years, we’ve seen …. • Two wars • At least three major financial scandals • Assassination of 2 prime ministers • At least 3 recessionary periods • 10 different governments and • An unfair share of natural disasters, yet • However had one invested in the Sensex Rs 1 lacs in 1980 it has grown to 170 Lakh equivalent to GDP growth of 17%

  11. EQUITY MARKET-DRIVERS • FUNDAMENTALS • LIQUIDITY • SENTIMENTS

  12. Strong GDP growth • Agriculture can provide extra kicker • Services leading to employment opportunities. • Demographics in India’s favour • Infrastructure spending and Capex – Multiplier effect • Global Advantage spreading to other sectors • Strong corporate performance • Valuations relative to growth reasonable. • Flows, domestic and global expected to remain strong. Markets appear promising

  13. When will India overtake the g6? Source:Goldman Sachs BRIC’s* Model Projections *Brazil, Russia, India, China

  14. WHY MUTUAL FUND ?

  15. Definition of Mutual Fund A mutual fund is a collective investment that allows many investors, with a common objective, to pool individual investments and give to a professional manager who in turn would invest this money in line with the common objective.

  16. Why Mutual Fund? • Experience of managing funds across market cycles • Impeccable track record • Suitable for investors who value consistency in the long-term over short-term rewards

  17. Tax Benefits Liquidity Prof. Mgt. Risk Diversification Flexibility Transparency Regulated Plus Benefits of Mutual Funds

  18. CAN WE USE MUTUAL FUND FOR SAVING TAX?

  19. THE SECRET OF BECOMING WEALTHY • “You don’t have to be wealthy to be an investor. . . • But… • You have to be an investor to be wealthy.”

  20. What does the investor want? I don’t want too much risk !! Steady Returns What do I do when interest rates are volatile? What do I do when stock markets volatile?

  21. EQUITIES THROUGH SIP OF MUTUAL FUNDS BUILDING WEALTH DROP BY DROP

  22. What is SIP? • We call it Disciplined Regular Investment • 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: • Light on pocket. • Over time the market fluctuations are averaged • RUPEE COST AVERAGING • This leads to HIGHER RETURNS • HELP IN ACHIEVING FINANCIAL GOALS!

  23. How Do I Build Wealth? • There is simple and straight forward way • Start investing early. • Put time on your side. • Invest regularly. • Don’t worry about market timing. BUT……….IT’S BORRING!

  24. The alternative is to…. • Follow market very closely. • Time your entry and exit very well. • Select your stocks judiciously. • And hope that you get it right more often than not! • THE CHOICE IS YOURS ………………..

  25. Wealth Creation Principle is nothing but “Enhancement Of future Value”.

  26. To Create Wealth – Enhance Future Value? n • FV = PV (1 + r)n PV r The more you earn, makes a difference The sooner you start, makes a difference The more you save, makes a difference

  27. Difference is quiet significant in long run. Power of Compounding Einstein refers to the “Power of Compounding” as the “Eight wonder of the world”. • Growth of Rs. 100 • Equity Best Bet of Investments in Long Run

  28. Delays affect wealth creation Rs. 1000 invested p.m. @ 10% p.a. till the age of 60 yrs Just 5 years of delay reduces the wealth by half!

  29. AMT INVESTED RS.12,40,00O (12.4 Lakh) • RETURNS (COMPOUNDED ANNUALISED) 46.03% • WEALTH BUILD RS. 1,57,95,387 (1.57 Cr) • VALUE AS ON 31st Oct 06

  30. 1.5 crores Postal Recurring SIP in Equity Funds SIP in Equity Funds 7.0 crores 23 crores Power of Compounding – QUIZRs. 10,000 invested every month for a period of 30 years(TOTAL INVESTMENT WILL BE 36 LAKH) • At 8% - • At 15% - • At 20% -

  31. Conclusion – Strike the GOLDMINE START YOUR SIP NOW

  32. Investment Objective: • “The primary objective of the scheme will be to provide capital appreciation to its unit holders through judicious deployment of the corpus of the Scheme in sectors categorized under “basic industry” in the normal parlance and in context of the Indian economy, including but not limited to, energy, petrochemicals, oil & gas, power generation & distribution and electrical equipment suppliers, metals and building material.”

  33. GROW WITH INDIA INVEST IN MUTUAL FUNDS.

  34. CONTACT

  35. “Failing to Plan is Planning to Fail” • Robin Sharma, Monk who sold his Ferrari

  36. Thank You !!

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