1. Vikalpa Finvest

2. CONTENTS
FINANCIAL PLANNING
EQUITY
SIP

3. Financial Goals Phase I Phase II Phase III Earning Years
Child’s Marriage
Child’s Education
Housing
Child birth
Marriage
22 yrs
38 yrs
yrs
Earning Years
Post Retirement Years
Education
Age- 22 yrs
Age- 60 yrs

4. INVESTMENT OPTIONS TO REALISE YOUR FINANCIAL DREAMS
GOLD
BANK FD’S.
SMALL SAVING SCHEMES
RBI BONDS
CO. DEPOSITS
EQUITY
MUTUAL FUNDS

5. Why equities in long run ?
Gold
Bank FD
Co’s Deposit
Equity
Source: RBI Data from

6. THE BIGGER RISKLOSS OF PURCHASING POWER
But equities are risky?????
THE BIGGER RISKLOSS OF PURCHASING POWER

7. INFLATION YOUR ENEMY! (Assuming Inflation rate 7%)
RS TODAY WILL BE WORTH……
AFTER 5 YEARS RS 6957
AFTER 10 YEARS RS 4840
AFTER 20 YEARS RS 2342
AFTER 30 YEARS RS 1134

9. EQUITY INVESTMENT??

10. What is Equity?
EQUITY IS ‘EQUAL OWNERSHIP’ OF THE COMPANY
Returns from equities have trailed profit growth rates for very long
Long term returns from Equities = Profit growth rates + Dividends
Over (US MARKET)
real returns from US stocks : 7 % p.a.
real profit growth + real dividends yields : 6.7 %p.a.

12. Sensex Growth from
After all, in the last 28 years, we’ve seen ….
Two wars
At least three major financial scandals
Assassination of 2 prime ministers
At least 3 recessionary periods
10 different governments and
An unfair share of natural disasters, yet
However had one invested in the Sensex Rs 1 lacs in 1980 it has grown to 170 Lakh equivalent to GDP growth of 17%

13. EQUITY MARKET-DRIVERS
FUNDAMENTALS
LIQUIDITY
SENTIMENTS

14. Markets appear promising
Strong GDP growth
Agriculture can provide extra kicker
Services leading to employment opportunities.
Demographics in India’s favour
Infrastructure spending and Capex – Multiplier effect
Global Advantage spreading to other sectors
Strong corporate performance
Valuations relative to growth reasonable.
Flows, domestic and global expected to remain strong.

15. When will India overtake the g6?
Source:Goldman Sachs BRIC’s* Model Projections
*Brazil, Russia, India, China

16. WHY MUTUAL FUND ?

17. Definition of Mutual Fund
A mutual fund is a collective investment that allows many investors, with a common objective, to pool individual investments and give to a professional manager who in turn would invest this money in line with the common objective.

18. Why Mutual Fund? Experience of managing funds across market cycles
Impeccable track record
Suitable for investors who value consistency in the long-term over short-term rewards

19. Benefits of Mutual Funds
Liquidity
Prof. Mgt.
Risk Diversification
Flexibility
Transparency
Regulated
Tax Benefits
Plus

20. CAN WE USE MUTUAL FUND FOR SAVING TAX?

21. THE SECRET OF BECOMING WEALTHY
“You don’t have to be wealthy to be an investor. . .
But…
You have to be an investor to be wealthy.”

22. What does the investor want?
I don’t want too much risk !!
Steady Returns
What do I do when interest rates are volatile?
What do I do when stock markets volatile?

23. EQUITIES THROUGH SIP OF MUTUAL FUNDS
BUILDING WEALTH
DROP BY DROP

24. What is SIP? HELP IN ACHIEVING FINANCIAL GOALS!
We call it Disciplined Regular Investment
The Markets are volatile: they move up and down in an unpredictable manner
Invest a fixed amount, at regular, predetermined intervals and use the market fluctuations to your benefit
How does it help you:
Light on pocket.
Over time the market fluctuations are averaged
RUPEE COST AVERAGING
This leads to HIGHER RETURNS
HELP IN ACHIEVING FINANCIAL GOALS!

25. How Do I Build Wealth? BUT……….IT’S BORRING!
There is simple and straight forward way
Start investing early.
Put time on your side.
Invest regularly.
Don’t worry about market timing.
BUT……….IT’S BORRING!

26. The alternative is to…. Follow market very closely.
Time your entry and exit very well.
Select your stocks judiciously.
And hope that you get it right more often than not!
THE CHOICE IS YOURS ………………..

27. Wealth Creation Principle is nothing “Enhancement Of future Value”.
but
“Enhancement Of future Value”.

28. To Create Wealth – Enhance Future Value?
FV = PV (1 + r)n n PV r
The more you earn, makes a difference
The sooner you start, makes a difference
The more you save, makes a difference

29. Power of Compounding Growth of Rs. 100
Einstein refers to the “Power of Compounding” as the “Eight wonder of the world”.
Difference is quiet significant in long run.
Growth of Rs. 100
Equity Best Bet of Investments in Long Run

31. Delays affect wealth creation
Rs invested 10% p.a. till the age of 60 yrs
Just 5 years of delay reduces the wealth by half!

33. AMT INVESTED RS.12,40,00O (12.4 Lakh)
RETURNS (COMPOUNDED ANNUALISED) 46.03%
WEALTH BUILD RS. 1,57,95,387 (1.57 Cr)
VALUE AS ON 31st Oct 06

34. Power of Compounding – QUIZ Rs
Power of Compounding – QUIZ Rs. 10,000 invested every month for a period of 30 years (TOTAL INVESTMENT WILL BE 36 LAKH)
1.5 crores
7.0 crores
23 crores
Postal Recurring
SIP in Equity Funds
At 8% -
At 15% -
At 20% -

36. Conclusion – Strike the GOLDMINE
START YOUR SIP
NOW

37. Investment Objective:
“The primary objective of the scheme will be to provide capital appreciation to its unit holders through judicious deployment of the corpus of the Scheme in sectors categorized under “basic industry” in the normal parlance and in context of the Indian economy, including but not limited to, energy, petrochemicals, oil & gas, power generation & distribution and electrical equipment suppliers, metals and building material.”

38. GROW WITH INDIA INVEST IN
MUTUAL FUNDS.

39. CONTACT

40. “Failing to Plan is Planning to Fail”
Robin Sharma, Monk who sold his Ferrari

41. Thank You !!