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Mutual Funds

Mutual Funds



Know what Mutual Funds can do for you!!

Know what Mutual Funds can do for you!!



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  • MonthAmountNAVUnits11,00010.00100.0021,0009.40106.3831,00010.6094.34Total3,0009.98300.72

Mutual Funds Mutual Funds Presentation Transcript

  • Mutual Funds Module
    Padmavati Wealth Advisors
  • Executive Summary
    Padmavati Wealth Advisors
    • Concept – Mutual Fund
    • What is Mutual Fund ?
    • Types of Mutual Fund
    • Benefits
    • Drawbacks
    • What is NAV ?
    • Equity As an Asset Class
    • Why to stay invested for a Long-Term ?
    • Systematic Investment Plan (SIP)
    • Power of Compounding
    • Rupee cost Averaging
    • Tax Aspects
    • Past Performance
  • What is Mutual Fund?
    Padmavati Wealth Advisors
  • Types of Mutual Funds
    Padmavati Wealth Advisors
  • Why Mutual Funds ?
    Padmavati Wealth Advisors
  • De-merits : Mutual Funds
    Padmavati Wealth Advisors
    • Exit load
    • No control over costs
    • No tailor-made portfolio
    • No assured Returns
    • Management Risk
  • Net Assets Value (NAV)
    Padmavati Wealth Advisors
    • The net asset value of the fund is the cumulative market value of the assets fund net of its liabilities
    Market Value of All Securities Held by Fund + Cash
    and Equivalent Holdings - Fund Liabilities & Outstanding Exp
    Total Fund Units Outstanding
    • A fund's NAV will change daily as the value of a fund's securities, cash held, liabilities, and the number of shares outstanding fluctuate.
    NAV =
  • Risk Return Profile
    Padmavati Wealth Advisors
  • 9
    All time high & correction begins
    22% one-day decline in US, no linkage then
    Start of five-year bull market
    Asian Crisis; Unaffected
    Harshad Mehta Scam
    Tech bull market & bust
    First Major Bull Market
    Long Term really matters!!
    Annual returns 17.6% for equity index
    BSE Sensitive Index
    Deep corrections do not matter for long-term investors
    Padmavati Wealth Advisors
    Figures as of July 2008; Data Source: Bloomberg; Analysis: In house
  • Volatility of returns reduces over time
    • Height of each bar shows the range of returns. Smaller the range shown by the bar, the better for investors
    • Longer the time frame, the greater is the reduction in risk without an impact on returns
    Returns %
    Effective Annual Returns %
    Padmavati Wealth Advisors
    Source: Bloomberg; Analysis: as of July 31, 2008
  • Padmavati Wealth Advisors
    Systematic Investment Plan (SIP)
    • SIP is an investment program that allows you to contribute a fixed amount (as low as Rs.1000) in mutual funds at regular intervals.
    • SIP allows you to combine -
    • Convenience
    • Rupee Cost Averaging
    • Flexibility
    • Power of Compounding
    • Investment experts the world over advocate Systematic
    Investment Plan (SIP)
    • Instills the much needed investment discipline
  • Power of Compounding!!!
    Albert Einstein called “The most powerful force in the universe is compound interest“  because of its amazing abilities.  Essentially, compounding is the idea that you can make money on the money you’ve already earned. 
    Padmavati Wealth Advisors
  • Power of Compounding (An Example)
    25 year old Preeti invests
    Rs.10000 annually for
    10 years and stops. She
    does not withdraw any money.
    Rohit begins investing
    at 35 a similar amount
    of Rs.10000 annually.
    He invests for the next
    25 years and he too does
    not withdraw any money.
    76.9 lacs
    24.6 lacs
    P.S : 1) Assumed Rate of Return: 13% CAGR
    2) Its doesn’t give any guarantee of future returns
    Padmavati Wealth Advisors
  • Rupee Cost Averaging
    Padmavati Wealth Advisors
    • Technique of buying a fixed rupee amount of a particular investment at regular intervals, regardless of the NAV
    Average Cost of Purchase
  • Start early to reap maximum benefits
    Value in Rs lacs
    Rs 1000 a-month investment till age 55
    Portfolio value reckoned at age 60
    Asset Allocation: Equity 70% and Fixed Income 30%
    Returns based on historical average. In the equity, based on the Sensex and in the Fixed income, based on the government bond yield
    Returns assumed 15.3%
    Starting age of investing
    From age 25, Rs 1000-a-month could deliver Rs 1.55 crore at age 60
    Padmavati Wealth Advisors
  • Tax Treatment : Equity Funds
    Padmavati Wealth Advisors
  • Past Performance of Equity Schemes
    Source: Value Research, as on Dt 9th sept 2009
    Padmavati Wealth Advisors
  • Back Testing Results
    Padmavati Wealth Advisors
    Figures as of July 2008; Data Source: Bloomberg;
  • Rich Dad V/S Poor Dad
    Income Statement
    Income Statement
    Balance Sheet
    Balance Sheet
    Padmavati Wealth Advisors
  • How Qualified Advisor can Make a Difference?
    Padmavati Wealth Advisors
    Source: Value Research 3 Yrs CAGR Returns
  • Padmavati Wealth Advisors
    Mutual fund investments are subject to market risks. Please read the offer document carefully before taking an investment decision.
    Risk Factors: All mutual funds and securities investments are subject to market risks, and there can be no assurance or guarantee that fund's objectives will be achieved. NAV may go up or down, depending on the factors and forces affecting the securities market. There is uncertainty of dividend distribution and risk of capital loss
  • Happy Investing!!
    Padmavati Wealth Advisors
    Kunal Doshi
    +91 98334 67999 | O. 91-22-28081677 padmavatiwealth@yahoo.in