How to invest smartly

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    21-May-2015

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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.

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<ul><li> 1. Investor Presentation </li></ul> <p> 2. Agenda Common mistakes Investors make The right way to Invest Some food for thought 3. 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 savings only in FDs Past performance may or may not be sustained in the future Source: NSE website, RBI website 4. The brave traders of equity markets Doesnt mean all equity investors invest smartly! Story of many people. Equity research is not easy as it seems 5. Common mistakes Investors make Not investing as per risk profile Not investing as per financial goals Not diversifying the portfolio 6. Common mistakes Investors make Ignoring tax implications of investments Not buying adequate insurance Not saving enough for retirement 7. Agenda Common mistakes Investors make The right way to Invest Some food for thought 8. 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 &amp; increase financial growth To avoid financial insecurity later in life To avoid borrowing a lot &amp; falling in debt trap 9. 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 10. Retirement Planning Source: Economic Times 37% of urban Indians feel they will not have money 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 11. Why start investing today? Corpus value in lakhs at age 65 (Investing at 12% returns) You invest only 5 lakhs &amp; get 3 crores You invest 15 lakhs &amp; get only 1.3 crores Start Early!! 12. Life Insurance Planning In case something happens to you, the financial insecurity can lead to many hardships for your family A small premium paid every year is more than enough to prevent your family from becoming helpless Over insurance leads to wastage of money &amp; 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 13. Agenda Common mistakes Investors make The right way to Invest Some food for thought 14. 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 15. Equity vs Fixed Income Past performance may or may not be sustained in the future Source: 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 16. So how to invest in equities? Answer Mutual Funds! Highly experienced fund managers Investments based on detailed research Diversified Portfolio Lower overheads due to economies of scale Stable &amp; Superior returns 17. Equity Mutual Funds Past performance may or may not be sustained in the future Source: NSE website, AMFI website Top mutual Funds have consistently provided superior returns compared to the Index 18. Should I invest only in Equities? No! Portfolio should be diversified as per risk profile &amp; 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 risk tolerant investor Asset Allocation for elderly risk averse investor 19. FD or Debt Mutual Funds? Heads Debt Mutual Funds Fixed Deposits Capital Gains Tax 10% without indexation or 20% with indexation According to Tax slab Diversification Yes No Past performance may or may not be sustained in the future Source: NSE website, AMFI website, RBI website Debt Mutual Funds fare better due to tax advantage &amp; diversification 20. 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 future Source: NSE website How should I time my investments? Danger Area 21. SIP Benefits SIP 22. 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 future Source: NSE website, AMFI website, NJ Fundz India 23. 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 &amp; diverse experience in the Financial Services industry. mintster.in wishes to empower the youth of the country through financial planning. Who are we? Vision: 24. 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 Online Planning Tools Advice on financial products suitable for users risk profile, financial goals &amp; tax profile Consultation 25. Why choose mintster.in? Get free consultation on all aspects of financial planning Buy products most appropriate to your risk profile, financial goals &amp; 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 26. enquiry@mintster.in www.mintster.in +91 9870 687507 </p>