Presentation on theme: "Ambalal Shares & Stocks Pvt Ltd, No 163,Durga Bhavan II Floor, New Katpadi Road, Vellore - 04 Little by little… Make your money work hard for you."— Presentation transcript:
Ambalal Shares & Stocks Pvt Ltd, No 163,Durga Bhavan II Floor, New Katpadi Road, Vellore - 04 Little by little… Make your money work hard for you
Ambalal Shares & Stocks Pvt Ltd, No 163,Durga Bhavan II Floor, New Katpadi Road, Vellore - 04. You can achieve a lot through Ambalal Periodic Investment Practice (PIP) Little by little…
Saving is income not spent or deferred consumption. Methods of saving include putting money aside in a bank, Chits, Gold, Land and pension plan. Savings Do not save what is left after spending, but spend what is left after saving. - Warren buffett
Why Savings? All individuals need to save for Retirement Child’s education / Marriage Medical emergency Other family obligations Your above objectives can be fulfilled by the savings? If you buy things that you don’t need then one day you will have to sell the things that you need.
Inflation eating your savings Is your savings enough to meet your future expenditure? 30 year average CPI is 8.83 Your Savings pattern: Fixed deposit: ? % Gold: ? % Land: ? % Insurance : ? % Equity: ? % Cash in Hand: ? % Do you have enough savings to beat inflation and maintain present lifestyle?
Performance of your different investment With last 10 years average inflation of 6.89%, What's your real return on savings & investment? Your Savings pattern: Fixed deposit: ? % Gold: ? % Land: ? % Insurance : ? % Equity: ? % Cash in Hand: ? % Real Gain = Returns - Inflation
Smart savings: Indian or American? Indians are having the highest saving rate in world but still we are poor. Why? Americans are having the lowest saving rate in world but they are one of the richest country in world. Why? Indians saving rate is 30 % and American’s saving rate is 4%. Nearly 60% of savings are invested in stock market by Americans against 11% by Indians. Source: Gallup Inc, SEBI, NCAER Source: SEBI, NCAER
Investment in Equity Only buy a share that you would be perfectly happy to hold if the market shut down for 10 years. - Warren Buffett
x Meant for Corporate and HNIs x Short term/Long term in nature x Gambling x Risky in nature x Too Complicated x Don’t know how to invest x Markets are not right to start Equity perceived as Our Perceptions … Is not a function of income i.e even you can invest Rs 1000 Is not a function of investment expertise Is really a matter of Regular Savings Whereas creating wealth through equity.. See the picture and identify the various images
Timing doesn’t matter for long-term investment Regular savings on stocks or Periodic Investment Practice (PIP) yields the return of 16.91%
Periodic Investment Practice (PIP) in Stocks Fixed deposits are like 1 run & 2 runs in cricket; it is safe but not match winning tactic. PIP is a winning tactics in your financial match.
PIP – Periodic Investment Practice PIP is an investment program that allows you to contribute a fixed amount in Stocks at regular intervals of weekly, monthly or quarterly. Little drops of water form a mighty ocean Why PIP’s? Can avoid stock market volatility. Systematic buying. Cost averaging. Easy to invest. Power of Compounding
Benefits of PIP: 5 year returns Just 3 years PIP in stocks gives the return of 3375 % Investment duration is 2000-2002. Returns are calculated during 1week of 2008. Make Your money work hard for you
Benefits of PIP : Returns as on 31 st Dec 2013 Just 3 years PIP in stocks gives the return of 1491 % Investment duration is 2000-2002. Returns are calculated during 31 st Dec 2013 Little drops of money IN STOCKS form an OCEAN of wealth
Investment Clock Generally, one economic cycle will takes 8-12 years to complete these all four phases. Right now we are in trough phase which is same as the period of 2000-2003. Indian Economy Trough2000-2003Recession2010-2012 Boom2003-2007Trough2013-2015 Peak2008-2009Boom2015-2019 PIP investment during next 2-3 years would give you the unimaginable returns One should compulsory invest for next 2-3 years
PIP – Rupee Cost Averaging Nifty Levels Scenario 1Scenario 2Scenario 3 13-Dec6200 14-Jan6100 6300 14-Feb6000 6400 14-Mar5900 6500 14-Apr5800 6600 14-May5700 6700 14-Jun5600 6800 14-Jul5500 6900 14-Aug5400 7000 14-Sep5300 7100 14-Oct5200 7200 14-Nov5100 7300 14-Dec5000 7400 15-Jan5100 7500 15-Feb5200 7600 15-Mar5300 7700 15-Apr5400 7800 15-May5500 7900 15-Jun5600 8000 15-Jul5700 8100 15-Aug5800 8200 15-Sep5900 8300 15-Oct6000 8400 15-Nov6100 8500 15-Dec6200 8600 Avg Invest562456007400 Stock market trading near the life time high. So, is it right time to start PIP? Scenario 1 & scenario 2 implies that the investor who starts his investment right now has the same average price through PIP when compare to investor who invest at bottom. Scenario 3 shows the risk of opportunity lost if stock market doesn’t falls to expected level. But in scenario 1, the investor’s total net worth will be high since he is investing form Dec 2013. Hence, invest earlier.
Invest Earlier ManishaVikram Starting Age25 years40 years Monthly PIPRs.5,000Rs.15,000 Saving Years till Age 6035 years20 years Total Amount InvestedRs.21 lacsRs.36 lacs Wealth at Age 60 yearsRs.12.62 croresRs.98.44 lacs A drop of money forms an ocean of returns Rate of Returns: 16.91%
PIP in Stocks Illustration Past, Present & Future
BHEL- Comparison b/w 2000 and 2013 The average price of BHEL traded between 2000-2002 was 15.15. during the year 2008 it has touched the high 586. Nearly 38 times or 3800 % returns. Additional Income: Dividend. Current Market price is 141. If we starts PIP now then our average price would comes between 120-160. When bull run starts BHEL may go to 500 or even 1000 rupee per share.
SAIL- Comparison b/w 2000 and 2013 The average price of SAIL traded between 2000-2002 was 6.75. during the year 2008 it has touched the high 293. Nearly 43 times or 4300 % returns. Additional Income: Dividend. Current Market price is 66. If we starts PIP now then our average price would comes between 70-50. When bull run starts SAIL may go to 300 or even 500 rupee per share.
SBI - Comparison b/w 2000 and 2013 The average price of SBIN traded between 2000-2002 was 214. during the year 2008 it has touched the high 2574. Nearly 12 times or 1200 % returns. Additional Income: Dividend. Current Market price is 1821. If we starts PIP now then our average price would comes between 1600-1900. When bull run starts SBIN may go to 6000 or even 8000 rupee per share.
L&T - Comparison b/w 2000 and 2013 The average price of L&T traded between 2000-2002 was 56. during the year 2007 it has touched the high 2345. Nearly 42 times or 4200 % returns. Additional Income: Dividend. Current Market price is 994. If we starts PIP now then our average price would comes between 900-1050. When bull run starts L&T may go to 5000 or even 7000 rupee per share.
NIFTY BeES Benchmark IndexS&P CNX Nifty Index NSE SymbolNiftyBEES BSE Code590103 Minimum Investment2000 Nifty Bees inception28-Dec-01 InvestmentInvests in underlying securities of S&P CNX Nifty Index Pricing (Per Unit)1/10th of Index Minimum Lot (Exchange)One Unit Investment date5th of every month Time FrameNo limit Mode of PaymentCheques (Post-dated) / ECS Exit modeAs per investor request Advantage: Low Risk Well diversified Mirror of Nifty 50 movement.
GOLD BeES Benchmark IndexDomestic Price of Gold NSE SymbolGoldBeES BSE Code590095 Minimum Investment4000 Gold Bees inception8-Mar-07 InvestmentInvestment in underlying Physical Gold Pricing (Per Unit)Approx. 1 gram of gold Minimum Lot (Exchange)One Unit Investment date5th of every month Time FrameNo limit Mode of PaymentCheques (Post-dated) / ECS Exit modeAs per investor request Advantage: Mirror of gold price. Easy to buy or Sell.
High potential growth stocks for PIP SectorStocksPrice Rs.5,000 PIP Investment Rs.10,000 PIP Investment QtyAmountQtyAmount Food processingReiAgro7.1775471541093 Banking - publicBank of india176352861056 Banking - privateIndusInd bank425285031275 Power GenerationNHPC19.528546561092 EngineeringBHEL140342081120 CementsIndia Cement489432221056 Edible oilsGuj Ambuja Export25.720514411054 DiversifiedSintex Ind36.2516580301088 MiningCoalindia292258441168 TOTAL 5001 10002 Investment Highlights: In each sector, top 5 companies are chosen based on various fundamental and technical factors and we picked 1 high potential growth stocks in that sector. Hence these stocks are industry leaders your risk is minimized. By investing in 9 sectors your investment is well diversified.
Nifty High Weightage Stocks for PIP SectorStocksPrice CigarettesITC342 SoftwareINFOSYS3320 RefinariesRELIANCE905 FinanceHDFC813 BankingHDFC BANK669 BankingICICI BANK1012 SoftwareTCS2088 InfraLT936 AutomobileTATAMOTORS381 Oil & GasONGC286 Total 10752 Investment Highlights: An alternative to Nifty Bees. The above 10 stocks contributes 57 percentage of weightage in NIFTY INDEX. It other words, these stocks are trend indicator for nifty. Investing in these stocks is merely equal to investment in NIFTY INDEX hence our risk is reduced. Well diversified PIP investment.
Good Dividend Yield Stocks for PIP StocksPrice Rs.5,000 PIP Investment Rs.10,000 PIP Investment Dividend Yield QtyAmountQtyAmount PNB4901 314705.51 COALINDIA293258638794.78 BHEL1464584811683.7 CAIRNINDIA3322664413283.46 ONGC2852570411403.32 SAIL6284961710543.21 Manappuram Finance15.1534515507589.9 Reiagro77854615710996.83 Gujarat NRE Coke13.75405508111140 TOTAL 5001 10009 Investment Highlights: The above 9 stocks are picked based on dividend yield, bonus and potential growth of company in future. Selectively picked from various sectors. Dividend and growth in stock price is expected.