how to become crorepati in 25 years
TRANSCRIPT
Presenter: Neeraj MauryaDate : 13-Oct-2015Venue : Capgemini, Airoli
Presented at an internal knowledge sharing session (Guftgu) for the benefit of all the colleagues
How to become
CrorePati
1,00,00,000in 25 years
ELSSDebt
Compounding
ULIP
ETFExposur
e
Diversific
ation
Bonds
Liquidity
Equity
RISK
Your investment must grow at (For 5000 per month)
Every month investment Req. (with 10% Rate Growth)
Age 25 13% per annum 8000/-Age 30 17% per annum 14000/-Age 35 26% per annum 25000/-Age 40 44% per annum 50000/-
Fixed Deposit returns (7-8%)
Saving Account returns (4%)
Recurring Deposit returns (8.2%)
SAVING ACCOUNT INTEREST CALCULATIONBefore 2010 After 2010Annual Interest of 4% Daily interest = Interest per
annum/365 i.e. = 4/365 = 0.010958%
For 3000/- for 1 month interest is 7/-
For 3000/- for 1 month interest is 20/-
Opening Balance
Credit Debit Closing Balance
1-Jan-2015 3,000 0 0 300021-Jan-2015 1000 200025-Jan-2015 2000 400031-Jan-2015 4000
Before 2010 After 2010Lowest Balance * 4% = 2000 * 4% = 80/12 = 7/Interest Earned =7/-
3000 * 20 days * 0.010958% = 7/-2000 * 4 days * 0.010958% = 4/-4000 * 7 days * 0.010958% = 9/- Interest Earned =20/-
Sample Scenario & Calculation
8th Wonder of world
Interest earned is added to principle
Compounded Monthly,
Quarterly, Half- Quarterly, Yearly
Rule of 72
GOLD (RETURNS 10 TO 12%)
To become Crorepati
Duration : 25 Years Every month Investment : 8000/-
Recognized/ReliableEasy to
buy/sell
Can be used as
Ornaments
Very Liquid
Threat of TheftETF or
Gold Funds
Minimum(Per year)
Maximum(Per year)
Returns Lock-in Period
PPF 500 100, 000 8.8% 15 years + 5 Years
NSC Sold in denomination of Rs 100/-
- 8.8% 6 Years
Bank Fix Deposit
- - 7-8% 5 Years
Mortgage/Lease
- - Agreement
Agreement
Bonds - - Agreement
Agreement
Provident Fund (PF)
- - 8% 5 Years, till Employment
DEBT (RETURNS 8-9%)
IS LOAN, AND CARRIES A FIXED RATE OF INTEREST, AND A PROMISE TO REPAY.
Other Post Office Instruments : Kisan Vikas Patra, Monthly Income Sheme, Recurring Deposit….
NSC, PPF, BOND
SHARE MARKET (RETURNS 15-18%)
Good Analysis required
Big growth
Know Settlement
System
High Risk
Position/Day/Margin
Trading
Stock Year Investment Returns Year 2015
Infosys 1993 9500/- 3 CroreSatyam 2005 38000/- 2 Lac
Sample Growth
Demat Ac required
MUTUAL FUND RETURNS (15-20%)
Mr. A Mr. B Mr. B(Double Tenure)
Age 25 35 35Every Month Investment
5000 5000 10000
Duration 5 Years 5 Years 10 YearsTotal Investment 3 Lac 3 Lac 6 LacReturns (at Age 60) 7 Crore 1.33 Crore 2 Crore
SIP & LumpSum
Investment Diversificati
on
Medium to High Risk
Safe Returns
Liquidity Open/Closed Ended
Large/Mid/Small CapSectorial &
Gold Funds
REAL ESTATE
Capital Growth
Regular Monthly Income
Tax Benefit
Physical Asset/Used for Living
Require Good Amount initially
Hidden cost like Stamp Duty ,VAT,
Maintenance, Repair
Rent Free
Periods
Bad Tenants
Not so easy to
LiquidateBlack Money
ELSS V/S ULIP
Predictable Cost
Very high first year charges
Easily understandable returns
Short Lock-in(3-5 years)
Exit Load 1%(if withdrawn bef. 3 years)
Transparent Investment
PurelyInvestment
Premium = Life Insurance + Admin Charges+ Fund Mang. Charge+ Investment
Extra 30% charges(If withdrawn before 5 years)
Less Transparency
Insurance + Investment
ELSS(Equity-Linked Savings
Schemes)
ULIP(Unit Linked Insurance Plan)
• Axis Long Term Equity, • BNP Paribas Long term Equity, • Franklin India Taxshield,
• HDFC Standard Life• ICICI Prudential
INSURANCE POLICIESEndowment ULIP Term
Insurance & Maturity
Insurance & Investment & Maturity)
Only Insurance No Maturity
Yearly Premium 31000 25000 12200
Sum Assured 10 Lacs 2.5 Lacs 1 Crore
Maturity Amount
21 Lacs Units * Rate Nil
Returns 5.4% 10 year plan (6-12%)
Nil
NEVER PUT ALL EGGS IN ONE BASKET (DIVERSIFICATION)
Low Risk/ No Risk (50%)
Medium Risk (30%) High Risk (20%)
- Saving Account (4%)
- ULIP - Stock Trading
- Fixed Deposit(8-10%)
- ELSS
- NSE (8.8%) - Mutual Fund- PPF (8.8%) - Real Estate- Gold (10%)- Insurance (6%)
Instrument Interest Rate Every Month Investment Req.
Risk Category
Saving Account 4% 20000/- Low
Fixed Deposit 8% 11000/- Low
NSC 8.8% 9500/- Low
PPF 8.8% 9500/- Low
Insurance(ULIP)
9% 9000/- Medium
Gold 10% 8000/- Medium
Mutual Fund 16% 3500/- Medium to High
Real State Medium to High
Share Trading 15% 4000/- High
To become Crorepati in 25 years
IDEAL PORTFOLIO TO BECOME CROREPATI
Instrument Monthly
Yearly
Total Yearly Investment
Returns(After 25 Years)
Saving Account (4%)
500 6000 2,57,922
Fixed Deposit (8.5%)
500 6000 4,78,683
NSE (8.8%) 1000 12000 9,57,367PPF (8.8%) 1000 12000 9,57,367Gold (10%) 1000 12000 6,68,945ELSS (16%) 1000 12000 39,65,218Mutual Fund (15%) 500 6000 32,84,074 Equity Portfolio (16%)
500 6000 39,65,218
Term Insurance(Rate from LIC for 25 years)
12200 12200 No Returns(On death 1 Crore)
Mediclaim 3500 For Self, Spouse and kid(Medical Cover of 2 Lac)
6000 15700 84200
Every month invested : 7308 Returns : 1.18 Crore (With: Life cover of 1 Crore + Mediclaim of 2 Lac for each)
Assuming a person with monthly take home of 20000/-s/he just has to pay 30% of his salary for this goal
INFLATION (6%)
Today’s value for future Rs. 1 crore are as follows 10 years- Rs.56 Lakhs 20 years- Rs.31 Lakhs 25 years- Rs.23 Lakhs 30 years- Rs.17 Lakhs
Go for debt mutual funds over fixed deposits. Never consider Insurance for investment. Surrender ULIP to restrain losses. Surrender Endowment Plans, Take Term Insurance. Make a balanced portfolio with diversification. Keep the EMI dates during end of month. We earn regularly. We spend regularly. Shouldn’t we
also invest regularly?
ADVICE