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Intro
Who Says Money Can’t Grow on Trees?!
Imagine you have cash to spare…Attribute Placements in 2009 Placements in 2014
Average CTC 7.0 Lacs 5.0-5.5 Lacs
Unplaced students <10 Still >40
CTC Range 4-9 Lacs 3-8.5 Lacs
NPV of CTC Range 5.44-12.24 LacsAt 8% p.a. inflation
3-8.5 Lacs
Given the reduced purchasing power, imagine you can spare 1 Lac to invest
What can you do with spare cash?• Invest it:
– Mutual Funds– Stocks– Debentures
• Lend it to the government:– Bonds– T-bills– Insurance– Infrastructure Projects
• Save it:– FD– Savings Account
Average Returns on InvestmentCategory Investment Type Average Return, 2013 (% p.a.)
Investments open to the public
Mutual Funds 14.7
Stocks 6.67 [2013], 20.56 [YTD]
Debentures 13.5
Money lend to the government
Bonds 9.06
T-bills 9.07
Insurance 10.0
Infrastructure Projects 8.0
Savings Fixed Deposit 8.0
Savings Account 4.0
Source: Bank and financial institution websites, RBI and news articles
What can you do with spare cash? (2)
• Or, if you’re wealthy enough, put it in a hedge fund:– Average Hedge fund returns: 20-23% p.a. [US]
• BUT• “Hedge Funds Trail Stocks for Fifth Year With 7.4%
Return” -BloombergYear Stock Market Returns* Hedge Fund Returns
2013 32.39% 11.12%
2012 16.00% 8.25%
2011 2.11% -5.48%
2010 15.06% 10.88%
Source: http://www.barclayhedge.com/research/indices/ghs/Hedge_Fund_Index.html
So, what do you do?
• Hire a portfolio manager?• Like this guy: [warren buffet]• Or this guy: [bloomberg or somebody
internationally recognizable – ask paps]• Or this guy: [jordan belfort real]• Who you may know as this guy [wolf of wall
street pic – crazy pic]
Like this man…
Or this man…
Or even this man…
Who you may know as this man…
Wolf of Wall Street
• Video of speech on opening IPO day after fish – leonardo speech [check youtube]
Or…
• Imitrade (logo)
• [picture of signal trader, highlight 400% return]
The power of COMPOUNDING
• [SHOW a few figures with Rs 1 lakh – multi crore pati – no need to go on KBC anymore]
• Caption: no need to follow this man anymore! ;)• https://www.google.co.in/search?
q=money+tree&espv=210&es_sm=122&source=lnms&tbm=isch&sa=X&ei=lw9EU_CEEIL_rAfhzoC4CQ&ved=0CAgQ_AUoAQ#q=kbc&tbm=isch&imgdii=_
The power of COMPOUNDINGTime-frame Value of Investment – if consistently re-invested
At 400% p.a. At 73% p.a.
Year 0 Rs 1 Lac Rs 1 Lac
Year 1 Rs 5 Lac Rs 1.73 Lac
Year 2 Rs 25 Lac Rs 3.0 Lac
… … …
Year 5 Rs 31.25 Crore Rs 15.5 Lac
… … …
Year 10 Rs 97656.25 Crore Rs 2.40 Crore
… … …
Year 20 Infinity!
This man becomes irrelevant!
Answer:
You!
What is Imitrade?
• Imitrade is a simple way to link your investments to someone else’s
• [video]