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Individual

  1. 1. B'MAP Financial Services
  2. 2. Contents
  3. 3. Concept of Financial Planning <ul><li>Financial planning </li></ul><ul><li>Identifies all the financial needs of a person </li></ul><ul><li>Translates the needs into monetarily measurable goals </li></ul><ul><li>These goals can be short term, medium term and long term </li></ul><ul><li>Plans the financial investments that will allow these goals to be met. </li></ul>
  4. 4. Depreciating Value of Money
  5. 5. Appreciating Cost of Living
  6. 6. Real – “Return On Investment” <ul><li>The above said couple of pictorial representations are derived and designed taking into consideration,5.5% as the rate of inflation, which depict: </li></ul><ul><li>Value of Money which is not invested depreciates @ 5.5% YOY. </li></ul><ul><li>At the same, time cost of living gets appreciated @ 5.5% YOY. </li></ul><ul><li>As a result, a Real Return on Investment is achieved only if it outshines the above said effects of inflation. </li></ul><ul><li>Therefore, the need of the hour is not just to invest, but to “Invest Intelligently”. </li></ul><ul><li>To invest intelligently requires, careful planning and analysis. </li></ul><ul><li>We @ B’MAP steer you in identifying the right avenues to invest in, where the “Return On Investment is REAL”. </li></ul>
  7. 7. Life Cycle Stage Guide
  8. 8. Benefits of Investing Early
  9. 9. Investment Avenues - Comparison
  10. 10. Asset Types <ul><li>Physical & Financial Assets </li></ul><ul><li>Guaranteed & Non Guaranteed investments </li></ul><ul><li>Physical Assets – Gold & property </li></ul><ul><li>Financial Assets – products offered by - </li></ul><ul><li>Banks </li></ul><ul><li>Corporate </li></ul><ul><li>Financial Institutions </li></ul><ul><li>Government – PPF, RBI relief bonds, NSC, government securities </li></ul><ul><li>Life Insurance </li></ul>
  11. 11. Asset Allocation <ul><li>Asset allocation is the process of how an investor distributes his or her investments among various classes of investment vehicles-such as, </li></ul><ul><ul><ul><li>Stocks </li></ul></ul></ul><ul><ul><ul><li>Bonds </li></ul></ul></ul><ul><ul><ul><li>Insurance </li></ul></ul></ul><ul><ul><ul><li>Real Estate </li></ul></ul></ul><ul><ul><ul><li>Commodities </li></ul></ul></ul>
  12. 12. What is a Mutual Fund? <ul><li>A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. </li></ul><ul><li>The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. </li></ul><ul><li>The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. </li></ul><ul><li>Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. </li></ul>
  13. 13. MF - Operations Flow Chart INVESTORS FUND MANAGER SECURITIES RETURNS Passed back to Pool their money with Invest in Generates
  14. 14. Portfolio - Sample Grand Total 100.00 Other Derivatives, Cash Receivables 22.66 Preference Shares, Warrants, Debt, And Equity Less Than 1% of Corpus 3.62 Oil & Natural Gas Corporation Ltd 1.07 Bharat Forge Ltd 1.23 Triveni Engeering And Industries Ltd 1.09 Gammon India Ltd 1.28 Deccan Aviation Ltd 1.47 Larsen & Toubro Ltd 3.58 Patni Computers System Ltd 1.57 Grasim Industries Ltd 3.99 Television Eighteen India Ltd 1.66 Infosys Technologies Ltd 3.99 Siemens Ltd 1.85 Maruti Suzuki India Ltd 4.09 Alstom Projects India Ltd 2.04 Reliance Communications Ltd 4.42 Hindalco Industries Ltd 2.33 ICICI Bank Ltd 4.78 Indian Hotels Co Ltd 2.36 State Bank of India 5.02 Reliance Infrastructure Ltd 2.60 Reliance Industries Ltd 5.91 Tata Motors Ltd 2.99 Divis Laboratories Ltd 7.67 Tata Steel Ltd 3.23 Equities 77.34 Tata Consultancy Services Ltd 3.51 Holdings Weightage (%) PORTFOLIO OF RELIANCE VISION FUND
  15. 15. Sector Allocation - Sample
  16. 16. Mutual Fund Classifications <ul><li>Equity Mutual Fund </li></ul><ul><li>Debt Mutual Fund </li></ul>
  17. 17. Equity & Debt - Definition <ul><li>Equity funds invest in shares or equity of companies with a potential for growth and capital appreciation. They invest in well-established companies where the company itself and the industry in which it operates are thought to have good long-term growth potential. </li></ul><ul><li>Debt funds or fixed income funds invest in government or corporate securities / bonds that offer fixed rates of return. The goal of fixed income funds is to provide current income consistent with the preservation of capital. </li></ul>
  18. 18. Risks to be offset.. <ul><li>Downside Risk in Equities </li></ul><ul><li>Risk of Market Volatility </li></ul><ul><li>Risk of Market Timing </li></ul>
  19. 19. Advantages of Mutual Funds <ul><li>Diversification </li></ul><ul><li>Professional management </li></ul><ul><li>Reduction in risk </li></ul><ul><li>Reduction in transaction cost </li></ul><ul><li>Liquidity </li></ul><ul><li>Convenience and flexibility </li></ul>
  20. 20. Returns - Equity and Debt <ul><li>Past performance of the diversified equity mutual funds has delivered close to 25% annualized returns. </li></ul><ul><li>Debt FMP can outperform Bank FD by atleast 2.5% in terms of incremental revenue. </li></ul>
  21. 21. Stock Markets & Returns
  22. 22. Index Vs MF
  23. 23. Tax Benefits <ul><li>Dividends declared by debt-oriented mutual funds (i.e. mutual funds with less than 65% of assets in equities), are tax-free in the hands of the investor. </li></ul><ul><li>However, a dividend distribution tax (which varies for individual and corporate investors) is to be paid by the mutual fund on the dividends declared. Dividends declared by equity-oriented funds (i.e. mutual funds with more than 65% of assets in equities) are tax-free in the hands of investor. There is also no dividend distribution tax applicable on these funds. Diversified equity funds, sector funds, balanced funds (with more than 65% of net assets in equities) are examples of equity-oriented funds. </li></ul><ul><li>The amount invested in tax-saving funds (ELSS) is eligible for deduction under Section 80C, however the aggregate amount deductible under the said section cannot exceed Rs 100,000 (in a financial year). </li></ul>
  24. 24. Current House Hold Savings Pattern
  25. 25. At B’MAP We…
  26. 26. <ul><li>The core objective of B’MAP Financial Services is to provide financial planning for individuals,corporates and ensure they maximize their wealth, thereby achieve their financial objective. </li></ul><ul><li>Financial Planning is an exclusive profession which squeezes out the maximum “Return On Investment” for the investor. Everyone will have their own ideas, plans and convictions on their personal finance based on their knowledge, but we have taken up financial planning as our profession, passion and we possess the expertise, in-depth knowledge and experience in financial planning. </li></ul>B’MAP Financial Services
  27. 27. B’MAP Financial Services #73-F1, II Main Road Alwarthirunagar Annexe Chennai – 600087 Primary Contact : S. Arunramalingam Phone : +91 44 23772232 HP : 9382605432 e-mail : [email_address] Contact us

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