Kuwait India

Extends a Warm Welcome to

Keralite Engineers’ Association (K.E.A.)

A Presentation

About Kuwait India Int’l Exchange Co. KIRAN On-line NIKI Sabhan International Consulting Organisation Building Personal Wealth: Financial Planning &

Strategy October 4, 2011

Kuwait India• Pre-eminent India-focused Exchange Co.• Established 1979• Managed by top executives of SBI, since inception• Strong ties with State Bank Group• Wide bouquet of products/services: paper,

electronic• Retail, Corporate, Trade Business -- Global • Millions & Millions of customers served “It takes 20 years to build a reputation and five minutes to ruin it. If you

think about that, you’ll do things differently.”

Kuwait India

Compelling Value-Proposition

• Customer Focusedness• Cost Competitiveness• Superior Technology-based Products/Services• Efficacious Corporate Delivery Systems• Excellence in Feedback, Follow-up and After Sales• Strong Management Skills – expertise, traditions of SBI• Networking abilities with SBI and other Correspondent Banks• Looked up to by NRIs for guidance in remittance/savings/investment

needs Customers’ Trust - - Kuwait India’s Pre-eminence

Kuwait India Int’l Exchange Co.Kuwait India Int’l Exchange Co.W.L.LW.L.L

Kuwait India—A Feedback “Kuwait India has really embraced its customers in

the true sense of the word and has provided a level of service which is quite unparalleled…this is evident in the way the team takes all the customers thru the paces, putting them at ease, speaking their language and providing the necessary money transfer service in an utterly transparent and super efficient manner. This is in addition to solving their personal problems, giving advice, helping with contacts in India etc. etc. The customer service culture is so deep rooted that no customer would ever want to leave the Company

Kuwait India—A Feedback

ever want to leave the Company.” Mr. Kanna, further adds: “The top management of Kuwait India, together with their team (silent, dedicated, efficacious, ‘behind the scenes’ players) have, over the years, converted most customers to “apostles” i.e. those who, on their own volition after having experienced the acme of service levels, promote the Company and bring in more and more customers. He says….”this is the single-most outstanding achievement of this fine organization.”

Kuwait India—KIRAN Online

• Remittances from the comfort of your home/office; even from India and anywhere else in the world; it’s a child’s play!

• A brief presentation

KIRAN Online—A Child’s Play

N I K I

• Personal Accident Policy• Cover: KD 1000-1300• Annual Premium: KD 1.200 ( a mere 100 fils a

month!)• Residents of Kuwait – All Nationalities• Cover – Across the globe• From New India Assurance Co.• Eligibility: Age 18 to 65; Customer of Kuwait India

Better Safe Than Sorry…For Your Dear Ones

Sabhan Int’l Consulting Helping You Grow Your Wealth

• Provides services in the area of: Marketing Consultancy

Project Management Economic Consultancy Organising Fairs

• For guidance/facilitation in: Stock Market Investments

Mutual Funds Insurance Products Tax-Related Matters

Building Personal Wealth:Financial Planning &

Strategy

R.Kuppanna , General Manager Kuwait India International Exchange Co.

October

4, 2011

Trader or Investor?

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Save, Invest & Grow Wealth

• How does one save, protect savings, plan finances, invest, and build wealth?

• Principles & Framework ?• Process : long term, systematic, patient,

disciplined

Short Term thinking is the Enemy of long term Success

The Power of Compounding

• A sum of Rs. 100 invested would add up to:CAGR (%)/CAGR (%)/

YEARSYEARS 88 1010 1515 2020

10 216 259 405 619 15 317 418 814 1541 20 466 673 1637 3834

Compounding, says Einstein, is “the eighth wonder of the world”

Risk – Return Graph

Investment Concerns/Needs

• Safety• Volatility• Inflation• Liquidity• Growth• Financial Goals• Wealth Building & Preservation• Comfortable Life: Post-Retirement What the wise men do in the beginning, fools do in the end.

Investment Options• NSO/PO: Deposits, NSCs, PPF• Banks: Savings, Recurring, Fixed Deposits• Company: Deposits, Debentures• Mutual Funds: Cap-Specific; Sector-Specific; Balanced; Hybrid; Liquid; Money-Market• Equity: Traded Stocks; ETFs; • Futures & Options• Precious Metals• Real Estate• Exotica

If you cannot find an attractive idea, put your money in the bank a/c till you get one.

Qualitative Aspects

• Manage Greed & Fear• Avoid emotional attachment• Avoid actions based on hearsay/rumours/sentiments• Avoid over-leveraging• Don’t try to time the market

"Individuals who cannot master their emotions are ill-suited to profit from the investment process." - Benjamin Graham

Mutual Funds

Suitable for those who: --don’t have wherewithal for research --have limited resources --have little time and --still would like to benefit from equities “When you combine ignorance and borrowed money, the consequences

can be disastrous.”

Mutual Funds

• Not an alternative investment option to stocks/bonds• Pools monies of several investors and invests in

stocks/bonds/other securities• Owner of a mutual fund gets a proportional share of fund’s

gains/losses/income/expenses• Derives the benefits of professional management,

diversification, liquidity, affordability, convenience, flexibility, variety

"Proper accounting is like engineering. You need a margin of safety. Thank God we don't design bridges and airplanes the way we do accounting." - Charlie Munger

Mutual Funds

• Types of Funds: > Open-Ended (can enter/exit fund) > Close-Ended (exit after scheme period) > Interval-Fund (entry/exit at periodical intervals (quarterly/half-yearly etc.)

“An investment in knowledge always pays the best interest.”

. . Benjamin Franklin

Mutual Funds

OBJECTIVE INVESTMENTS

Equity (Growth) Stocks/Shares

Debt (income) Fixed Income Securities

Money Market Short-term Liquid Instruments

Balanced Partly Stocks/Partly Fixed Income

Wealth Protection Gold/Gold-Related

Making money on free advice, is like winning a lottery without a ticket

Exchange Traded Funds (ETFs)

• What? –Investment Schemes whose units are listed on stock exchanges: after listing, traded like equity stocks

• ETFs have some underlying security or group of securities (like an index), commodities (like gold or oil)

• Underlying securities determine the value of ETFs

Gold ETFs

• Has gold as the underlying security• Advantages: owning gold without the hassles

of physically holding them—avoiding expenses, bank vault charges, insurance etc.

• No concerns of quality—gold backing from LMBA and stored in vaults; fund house takes care of all risks of storage and safety; minimal expense ratio

• Buying/Selling : Very Easy

LIC’s Gold Plus

• Investments in Gold ETFs/Gold Spot• Investment Currency: US $• Comes with Life Insurance Cover (min. $2000)• Term: 5-35 years• Lock-In: 2 years• No exit charges after 4 years• Upfront (allocation) charges: 6-7%• Nominal annual charges “Only buy something that you’d be perfectly happy to hold if the market

shut down for 10 years.” – Warren Buffett

LIC’s Jeevan Astha - 2

• From LIC International• Single-Premium, Close-End $ Product• Guaranteed Returns: 5%, 5.5%, 5.75% for 3, 5, & 10 year maturity• Loyalty Additions• Unlimited Top-Up Amount• Age on Maturity: 18 to 70 Years• Minimum Plan: $ 2584.91

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THANK YOU