Upload
goldentomoto
View
110
Download
0
Tags:
Embed Size (px)
Citation preview
INFLATION
RISING INFLATION...
Inflation means
rising prices of all
the items, which
we consume in
day to day life..
What is the average inflation ratein India in last 5 years?
A.B. C.D.
5%7%8%10%
INFLATION
A.B. C.D.
5%7%8%10%
INFLATION
What is the average inflation ratein India in last 5 years?
A.B. C.D.
5%7%8%10%
INFLATION
A.B. C.D.
5%7%8%10%
INFLATION
INFLATIONHow many of you have Savings
Account / Current Account in bank?
What is the rate of interest in Savings Account/Current Account?
But What is Net Returns?
Net return = Interest – Inflation
Savings Account = 4% - 8% = -4%Current Account = 0% - 8% = -8%
How to Beat Negative Returns?
Invest in bank FD, Equities, real estate, gold etc.?But money lying in SB/CA is for daily use and not for
investment
Also, there is a risk in investing in equities and gold &
charges on bank FD
What needs to be done then?
Is There Any Alternative ?
Should be able to generate returns close to/better than inflation
Should have low charges
Should have least risk as compared to other products
Should be easy to transact (to deposit and withdraw money)
An alternative to SB/CA should have following qualities
An alternative o SB/CA should have following qualities
IntroducingLiquid Funds
What is a Liquid fund?
Liquid Funds are mutual fund schemes, which invest in
very short term commercial papers (CP), Certificate of
Deposits (CD), Treasury bills etc.
There are no entry/exit charges.
Can invest as low as Rs. 10,000.
Minimum investment period is 1 day.
Liquid Funds DO NOT invest in Equity Markets or Gold.
Highly liquid, money is credited back to your bank
account in 1 day.
Performance of Liquid Funds
Liquid funds have been delivering more than 8% returns to
investors.
In comparison, SB returns are 4% while Current Account offers
0% return.
With such a high return differential selling liquid funds become
far more easier to retail investors.
Scheme Name 1 Year 8.68 9.33 8.64 8.75
10.21 10.63 9.56 9.668.37 9.06 8.34 8.48
30 Days 90 Days 180 Days Birla Sun Life Cash Manager - Growth Kotak Flexi Debt Scheme Plan A - Growth DSP BlackRock Money Manager Fund Gr
Returns on lumpsum investment as on 31 May 2013Returns on CAGR basis
What Extra with Liquid?
Income Earned in 1 Year Additional Income
50,000 2,000 0 4,000 2,000 4,000100,000 4,000 0 8,000 4,000 8,000500,000 20,000 0 40,000 20,000 40,000
* Assuming returns of Savings Bank A/c at 4%, Current A/c at 0% and liquid funds at 8%
Average Balance
Savings Account
Current Account
Liquid Funds
Savings Account
Current Account
Mutual fund investments are subject to market risks. Past performance is no guarantee of future returns.
Is it Safe to Invest ?
You invest in MF schemes which are under the purview of SEBI.
Only 44 companies in India in MF space. Renowned companies like HDFC, Reliance, Kotak,
Birla, DSP, ICICI, Tata etc. in the MF business.
MF Regulations
Liquid Funds
Money invested in very short term instruments. Extremely low/negligible interest rate risk. Transparency of NAV and returns.
What are the Charges in Liquid Funds?
There are no charges for entry/exit in liquid funds.
There is a fund management charge in the scheme,
which can vary from 0.50% to 0.75% depending from
scheme to scheme.
The returns highlighted in the performance earlier are
net of charges to the investor.
Can I Invest Even for 1 Day ?
Yes you can.
You will get return even for 1 day.
Also, minimum amount of investment also starts from as
low as Rs. 10,000!
Liquid funds are for everybody and not just for the wealthy.
TaxabilityReturns from liquid funds are taxable as follows:
Short Term Capital Gain (STCG)For investments of less than 1 year, the income is taxable according to the tax slab of the investor.Long Term Capital Gain (LTCG)For investments of 1 year and above, the income is taxable at 10% flat or 20% with indexation .
It is advisable to invest in the Growth option, unless you fall in the highest tax bracket.
For Growth Option
For Dividend OptionIn case you invest in Dividend option, there is a Dividend Distribution Tax at 28%
Money Lying idle in your SB/CA on the following counts
Which Money Should be Invested in Liquid Funds?
Your EMI is due on 25th of the month & you maintain the balance for the same for the whole month.
School fees of your kids is due on a quarterly/half yearly basis, but you keep it in your account.
Your salary gets credited on 3rd of the month & you withdraw money over the period of the month.
If you are a businessman & have a cash balance in your lean season.
Money Lying idle in your SB/CA on following counts
Which Money Should be Invested in Liquid Funds ?
If you recieve a bulk payment and are not having any fresh purchase lined up in coming 3-4 days.
You sold a property and got the payment for it in your account.
You are about to buy a property & payment is due after 5-10 days.
Any additional balance lying in your account above the minimum balance required in the bank.
How to Invest in Liquid Funds?
Investing in liquid funds is easy. You can invest through NJ TADA
Online Mobile Call & Transact
Fast & accurate way of transaction
Transaction from anywhere (Online & on call)
Payment through registered VISA debit card - any bank
8 largest banks available through net banking.
Saves time & efforts
Transaction confirmation via e-mail / SMS @
'Invest Easy' - Convenience at your FingertipsOnline Purchase
Login to your NJ Trading Account Select the fund Make Payment through net banking/
debit card Your investment is completed in less than
a minute
Online Sell Login to your NJ Trading Account Select the fund to redeem Your transaction is completed in less than
a minute Money gets credited to your bank account
the next day
'Invest Easy' – Convenience at your FingertipsMobile Application (Blackberry, Android, ios)
TransactionRedeem & SwitchPurchase, SIP, STP
Mode of Payment -
Pre registered ECS mandate
BenefitsAccess anywhere 24*7High Speed
'Invest Easy' – Convenience at your Fingertips
Call N Transact – 0261 3987500
How to Transact
Call on the CNT number.
Confirm your access details.
Execute your transaction
(Purchase/Sales/Switch) in
less than a minute!
“Invest Easy” – Convenience at your fingertipsGreat Convenience of Transaction.
Access anywhere
24*7
Multiple channels of transaction
(Online, Mobile, Call Center)
Multiple modes of payments
(Net banking, Debit Card, ECS Mandate)
High speed & accuracy
NO form filling
Transaction conformation on SMS/E-mail
What to Do Now ?
Contact your Financial Advisor Open your NJ Trading & Demat Account Start enjoying benefits of Liquid Funds !!
Be a smart investor. Let your money make money for you!
Contact your Financial Advisor
To change the way you invest