how to invest smartly
DESCRIPTION
A simple presentation which will help you understand the smarter way to investing through Goal-Based planning. It will help you understand the way to maximise returns at low risks.TRANSCRIPT
Investor Presentation
Agenda
Common mistakes Investors make
The right way to Invest
Some food for thought
Smart spenders but not so smart investors
If you spend smartly, why not invest smartly too?
Hours of research for a smartphone
But blind investments of savingsonly in FDs
Past performance may or may not be sustained in the futureSource: NSE website, RBI website
The brave traders of equity markets…
Doesn’t mean all equity investors invest smartly!
Story of many people….
Equity research is not easy as it seems
Common mistakes Investors make
Not investing as per risk profile
Not investing as per financial goals
Not diversifying the portfolio
Common mistakes Investors make
Ignoring tax implications of investments
Not buying adequate insurance
Not saving enough for retirement
Agenda
Common mistakes Investors make
The right way to Invest
Some food for thought
Financial Planning
What is Financial Planning?
Deciding on financial goals in life Calculating expenses at various stages in life
Chalking out investment strategy Implementing the investment strategy Periodic Review of investments
Why should one do Financial Planning?
To do right investments for each goal To not miss out on financial growth
To reduce taxes & increase financial growth To avoid financial insecurity later in life To avoid borrowing a lot & falling in debt trap
Tax planning
You can get Tax deductions of more than ₹ 3 Lakhs on your Gross Income. Are you availing it?
Tax Planning is structuring of expenses and investments in a tax efficient manner
Our Tax Planning Tool helps the user calculate his tax deductions independently.
Our experts can do the optimum tax planning for you and also help you in all the later processes
Retirement Planning
Source: Economic Times
37% of urban Indians feel they will not havemoney for retirement
Retirement Planning is investing small portion of income in a retirement fund to avoid financially insecure retired life
Our Retirement Planning Tool helps you calculate the exact corpus you need at retirement.
Our tool also provides the yearly savings required
We also sell optimum retirement products as per your profile
Why start investing today?
Corpus value in lakhs at age 65(Investing at 12% returns)
You investonly 5 lakhs & get
3 crores
You invest15 lakhs & get only
1.3 crores
StartEarly!!
Life Insurance Planning
In case something happens to you, thefinancial insecurity can lead to many hardshipsfor your family
A small premium paid every year is morethan enough to prevent your family from becoming helpless
Over insurance leads to wastage of money & underinsurance leads to inadequate protection
Our tool helps you to calculate the optimum insurance amount
We also sell optimum life insurance products as per your profile
Agenda
Common mistakes Investors make
The right way to Invest
Some food for thought
Will Equity give me high returns in the long term?
It is a known fact that as earning of companies rise, the prices of stocks also rise• In past 15 years, the earnings of top companies increased 6 times• The share price of top companies also increased 6 times Nifty gave returns of 13.1% for 15 years
Equity vs Fixed Income
Past performance may or may not be sustained in the futureSource: NSE website, RBI website
In the long term Fixed Income
returns are taxed
Equity returns are NOT taxed
Even during the worst of 2008 recession equity returns were more than bond returns
Probability of loss decreases if you stay invested in stock markets for long
So how to invest in equities?
Answer – Mutual Funds!
Highly experienced fund managers
Investments based on detailed research
Diversified PortfolioLower overheads due to
economies of scale
Stable &Superior returns
Equity Mutual Funds
Past performance may or may not be sustained in the futureSource: NSE website, AMFI website
Top mutual Funds have consistently provided superior returns compared to the Index
Should I invest only in Equities?
No! Portfolio should be diversified as per risk profile & liquidity requirements
A retired gentleman will want stable returns and will be willing to expect lower returns to avoid high risks.
Asset Allocation for young risktolerant investor
Asset Allocation for elderly riskaverse investor
FD or Debt Mutual Funds?
Heads Debt Mutual Funds Fixed Deposits
Capital Gains Tax10% without indexation or
20% with indexation
According to
Tax slab
Diversification Yes No
Past performance may or may not be sustained in the futureSource: NSE website, AMFI website, RBI website
Debt Mutual Funds fare better due to tax
advantage & diversification
The Power of SIPs
SIP or Systematic Investment Plan is disciplined investment of pre-decided amount every month into a mutual fund.
The answer is SIP!
Past performance may or may not be sustained in the futureSource: NSE website
How shouldI time my
investments? Danger Area
SIP Benefits
SIP
How good are SIPs?
Equity Mutual Funds active since 1st Apr 99 15 years SIP returns
Average returns 18.9%
Highest returns 24.2%
Lowest returns 13.0%
Nifty returns 13.6%
No. of schemes with returns less than 15% 3/21
Tax Saving Mutual Funds active since 1st Apr 99 15 years SIP returns
Average returns 18.9%
Highest returns 22.8%
Lowest returns 16.2%
No. of schemes with returns less than 15% 0/6
Past performance may or may not be sustained in the futureSource: NSE website, AMFI website, NJ Fundz India
About mintster.in
mintster.in is a free financial planning website, found in 2013, by a vibrant team of top B-School MBAs with a rich & diverse experience in the Financial Services industry.
mintster.in wishes to empower the youth of the country through financial planning.
Who are we?
Vision:
Services
Purchase of various types of financial products like mutual funds, insurance, tax saving bonds, etc.
Purchase
Tax Planning
Retirement Planning
Goal Planning
Insurance Planning
Asset Allocation
OnlinePlanningTools
Advice on financial products suitable for user’s risk profile, financial goals & tax profile
Consultation
Why choose mintster.in?
Get free consultation on all aspects of financial planning
Buy products most appropriate to your risk profile, financial goals & tax profile
Buy products which are handpicked after conscientious study of financial products market
Get free quarterly review of your financial profile to adapt your portfolio to market dynamics
