This document discusses wealth creation and retirement planning. It begins by highlighting Wealth First's credentials as an investment advisory firm, including their experience, client assets under management, and team size. It then discusses important considerations for investment planning like safety, liquidity, taxation, expenses, and returns. The document provides examples of retirement planning through systematic investment plans at different expected returns. It also shares equity mutual fund return data over different time periods. Overall, the document provides an overview of Wealth First's approach and credentials, as well as examples and data related to long-term investment and retirement planning.
8. Earlier Scenario - 80: 20 phenomena
40 Working years
(age 20 to age 60)
10 Retirement years
(age 60 to age 70)
Age 20 Age 60 Age 70
During working years savings were high
Life style was simple
Additional expenses like mobile, cinema,
holiday tours, cable, etc. were not there
Fuel expenses were less
Savings
Joint family
Pension
9. Today’s Scenario : 50-50 phenomena
30 Working years
(age 25 to age 55)
30 Retirement years
(age 55 to age 85)
Age 25 Age 55 Age 85
During working years expenses are high
Life style maintenance cost is high
Additional expenses like mobile, cable,
cinema, holiday tours, etc..
Fuel expenses are high
Savings are less
Nuclear Family
No Pension
High Medical cost
No Medicare
High cost of living
10. Non - Negotiables
Risk Instrument
Life cover for income replacement Term Plan Policy
Medical need Mediclaim
Personal Accident PA policy
Tax saving instruments u/s 80C, 80CCD (1B)
Public Provident fund
Fixed Deposit
Insurance
Equity Linked Saving Scheme
National Pension Scheme
13. 5 commandments of Equity investment
1. Do not Borrow.
2. Do not put all investment in one sector.
3. Do not invest all money in one day - Staggered.
4. Invest only that money which is not required at least for 3 years.
5. If market goes down by 30%, Be prepared for that. It should not affect your
personal & professional activity.
14. Power of Compounding
The longer the period of your investment, the more you
accumulate, because of the power of compounding... which is why it makes
sense to start investing early. As illustrated in the graph below you can see
the power of compounding if you start early :
17. This is very Interesting data, how Sensex swings in a year & how much drawn down every calendar year. If
someone invested in Sensex SIP, how much XIRR it generates. One thing is very clear though volatile, most of the
time market is positive.
Sensex History
19. Any Day is Good Day – MF Returns
SCHEME NAME INCEPTION DATE
NAV AS ON
BASE DATE
CURRENT
NAV
INCEPTION
RETURN
Franklin India Bluechip Fund 1-Dec-93 10 692.13 19.42
SBI Magnum Global Fund 30-Sep-94 10 289.21 14.61
HDFC Top 100 Fund 11-Oct-96 10 722.48 18.91
ICICI Prudential Large & Mid Cap Fund 9-Jul-98 10 563.47 18.15
ICICI Prudential Technology Fund 3-Mar-00 10 130.51 12.09
Quant Tax Plan 1-Apr-00 10 239.89 15.22
Quant Mid Cap Fund 9-Mar-01 10 131.46 12.73
Quant Active Fund 21-Mar-01 10 434.65 19.21
Kotak Equity Opportunities Fund - Regular Plan 9-Sep-04 10 204.44 18.26
Kotak Small Cap Fund - Regular Plan 24-Feb-05 10 167.67 17.45
Kotak Emerging Equity Fund Regular Plan 30-Mar-07 10 76.86 14.12
Invesco India Growth Opportunities Fund 09-Aug-07 10 52.03 11.56
Mirae Asset Large Cap Fund - Regular Plan 4-Apr-08 10 78.24 15.33
SBI Small Cap Fund 9-Sep-09 10 113.31 20.55
Mirae Asset Emerging Bluechip Fund - Regular Plan 9-Jul-10 10 96.32 20.48
Parag Parikh Flexi Cap Fund - Regular Plan 28-May-13 10 47.97 18.43
PGIM India Midcap Opportunities Fund - Regular Plan 2-Dec-13 10 45.23 18.81
PGIM India Flexi Cap Fund - Regular Plan 4-Mar-15 10 25.46 13.26
Mahindra Manulife Mid Cap Unnati Yojana - Regular Plan 30-Jan-18 10 17.95 15.35
Mirae Asset Focused Fund - Regular Plan 15-May-19 10 18.74 20.94
Mirae Asset Midcap Fund - Regular Plan 29-Jul-19 10 21.66 28.33
Mahindra Manulife Focused Equity Yojana - Regular Plan 17-Nov-20 10 15.55 27.92
Quant Quantamental Fund - Regular Plan 27-Apr-21 10 12.83 20.29
21. SIP / STP >>>> SWP
RETIREMENT BENEFIT-
SWP BENEFIT
Ways Of Investing In Mutual Funds
22. MONTHLY INVESTMENT AMOUNT Rs1,00,000
EXPECTED END VALUE OF YOUR MONTHLY INVESTMENT OF
EXPECTED
RETURN
NUMBER OF YEARS
5 10 15 20 25 30
COST Rs.60,00,000 Rs.1,20,00,000 Rs.1,80,00,000 Rs.2,40,00,000 Rs.3,00,00,000 Rs.3,60,00,000
10.00% 77,43,707 2,04,84,498 4,14,47,035 7,59,36,884 13,26,83,340 22,60,48,792
12.00% 81,66,967 2,30,03,869 4,99,58,020 9,89,25,537 18,78,84,663 34,94,96,413
15.00% 88,57,451 2,75,21,706 6,68,50,676 14,97,23,948 32,43,52,962 69,23,27,961
Sip is a good approach to stay
disciplined when it comes to investing
24. Wealth First, promoted in 1992, is an independent Investment Advisory Firm
Focused on “Treasury and Wealth Solutions”
Advise/ Manage Assets in excess of Rs.8,000 Crores across Corporates, Family offices, Provident Funds, Trusts & HNIs
Team of 20 client-focused investment professionals with relevant experience of 300+ years
Core Team unchanged since inception
Team strength of over 70
Wealth First does not follow a “one-shoe-fit-all “policy, but there are a few protocols which we follow for all our clients
across the stratum. These being of Safety – Liquidity- Taxation- Expenses – Return (a function of the previous
four)
Our endeavour is to understand his needs, risk appetite, risk tolerance both communicated and perceived, cash flow
requirement etc.
After knowing and understanding all of this we make an Asset allocation for the client what we adhere to monitor and
follow on an ongoing basis. How we differentiate ourselves from others is, our IPS or Solutions come in after the client
needs are communicated understood (both explicit and latent) and not before that.
We always believe in simple vanilla easy to understand (by the investor) solutions. Only an exclusivity of the product
does not make it a good product. Something, which is not easy to monitor if the risk or cost is high, or the lock-in is
longer, then that product’s return should also be better than that which are otherwise available
Past achievements including winning the prestigious CNBC – TV 18 award for India’s Best Investment Advisor in the IFA
segment
Wealth First broke a big glass ceiling - an IFA’s practice was not only corporatized but was taken to the market, thereby
became the first Independent Financial Advisor in India to list practice on a stock exchange(NSE) on 30th March,2016
About us : Inclusive Services, Exclusive Advisory
25. Wealth First Mantra
We always believe in
simple vanilla easy to
understand (by the
investor) solutions. Only
an exclusivity of the
product does not make it a
good product.
26. Wealth First Differentiators, We always act what we
preach
Irrespective of any situation, there are some things we have always
stayed away from and protected our clients interest.
No CRB – no defaults
No F&O – believe it’s a weapon of mass destructions
No Intraday Trading
No Real Estate
No Close ended Fund – Structured Products
No NFO’s
No NSEL
Not a single client had investments in the large MF debt crisis of
2020.
All of this sums up to not loosing a single client
Catering all Asset Class from PPF, NSC to LIC PMVVY to our All
set of clients to get all products under one Roof
“Strong Management Team with
rich Industry experience”
“To have knowledge is one thing
& to have the courage to use it in
favor of the clients interests is
another”
27. Unearthing the gems before they get their
name
Franklin India Prima
Nippon India Growth Fund
Aditya Birla SL Flexi Cap
Sundarm Midcap
Mirae Asset Emerging
Bluechip
Axis Midcap
Quant Smallcap
PGIM Midcap Opp.
01/01/1990
24/06/1995
14/12/2000
06/06/2006
27/11/2011
19/05/2017
09/11/2022
1 2 3 4 5 6 7 8
28. Fixed Income investment : (SLTER)
S – Safety : Protection of capital
L – Liquidity : Anytime liquid, tradable
T – Taxation : To be considered for better return
E – Expense : Plays an important role
R – Return : It’s a by-product of above all
Accordingly, we recommend to invest in selected bonds such as RBI Bonds, Central
Government and State Government Bonds, AAA rated selected PSU as well as
Private companies bonds for regular interest cash flow along with capital safety.
We also recommend to invest in selected bond funds for tax efficient return above 3
years investment horizon.
Choosing the right investment for you:
Fixed income oriented investment :
keeping capital preservation as a prime Dictum
29. Credit Rating
universe
AAA
PSU PVT
Sovereign
Debt Avenues
Interest bearing
(for steady cash flows)
PVT/PSU Taxable
Bond
PSU Tax free
Bonds
GOI / SDL
Non Interest bearing
(interest reinvested & tax efficient )
Target Maturity
Funds
Bifurcating the Available Debt Options :
30. Avenues
Investment
years
Indicative
Yield (%) Safety Liquidity Taxation
Indicative
Post Tax
Returns (%)
Rationale
Financial Co.
(Fixed
Deposit)
1 – 5 years 7.25%
AAA
rated
Prematur
e
withdraw
alpossible
at a cost
Interest
income :As
per applicable
tax slab
5.08%
To reduce the duration of the
portfolioFund can be used to
grab an opportunity available
in the mean time
Taxable Bonds
(SDL / G-sec /
PSU, Private) 10-15 years
7.50% -
7.75%
Sovereig
n
Tradable
Interest
income :As
per applicable
tax slab
*LTCG / STCG
5.25% -
5.425%
Sovereign / AAA rated
bonds
Semi annualised /
Annualized regular
income
Govt Guaranteed
Securities (SDL & G-sec)
/ PSU , Private companies
bond
Debt Mutual
Funds (Index
Funds) 5-7 years 7% - 7.60%
Sovereig
nand
AAA
rated
PSU
Bonds
Redeemab
le
STCG: As per
income tax
slab,(below
36 months)
LTCG: 20%
after
indexation
(above 36
months)
6.50%-7%
Minimal credit risk
Underlying investment in
SDL & PSU
Indexation + tax
benefit (@ 20%)after
holding for more than
3 years
DEBT AVENUES
31. • Before selecting, any fund there are a few parameters and some rationale, which we keep in
mind and on an ongoing basis monitored and tracked. Both Qualitative & Quantitative
1. AMC's philosophy & outlook as an Equity Fund House
2. Scheme Performance in rising and falling market
3. Fund Size of the Scheme ( in most cases we prefer to have a low to midsized fund depending on the
category)
4. Understand fund Manager’s stock selection & monitoring parameters , also try to understand his
earning expectation from the portfolio
5. Current Portfolio Holding, Quality of stocks and overlapping with Other same category Schemes
6. Other factors like Alpha, Standard deviation , P/E of portfolio & Average churning are also looked at
We believe that India is an under researched market that active fund managers have a lot of
opportunities to generate alpha than doing indexing. For the same instead of investing in just large
cap funds we like to take the exposure of large cap through Multi cap/Flexi cap/Large & mid kind of
funds. By doing this the fund manager gets a leeway to invest in large caps only when justifiable and
not by mandate.
We do not recommend over diversification of funds. For large cap funds we can invest in an Index
fund while for Small and Mid we can use the fund manager’s expertise. We believe to optimize
return of the risk taker while investing in equity.
Our Recommendation Rationale for Equity Mutual Fund
33. Other than Equity Mutual Fund
• Other than Mutual Funds there equity vehicles like PMSs, AIFs, PE Investments, VCs..
• One of the shortlisted PMS is the Small Cap PMS of Equirus. We recommend this for 5-7 years with a very long
term view
The rationale for investing in very selected managed equity funds is being able to have an exposure in something
which is not possible with a open ended Equity Mutual Fund.
Otherwise handsome, consistent, cost & tax efficient long term returns have been generated by investing only in
Mutual Funds.
36. Cash Flow of HDFC Life
HDFC Sanchay plus - Long Term Income
Age Year Contribution Remarks
41 01-Sep-22 -25,08,000
Premium Paid
42 01-Sep-23 -24,54,000
43 01-Sep-24 -24,54,000
44 01-Sep-25 -24,54,000
45 01-Sep-26 -24,54,000
46 01-Sep-27 -24,54,000
47 01-Sep-28 -24,54,000
48 01-Sep-29 -24,54,000
49 01-Sep-30 -24,54,000
50 01-Sep-31 -24,54,000
51 01-Sep-32 0
Cooling Period
52 01-Sep-33 0
53 01-Sep-34 0
54 01-Sep-35 29,22,000
Guaranteed Payout
" " "
" " "
82 01-Sep-63 29,22,000
83 01-Sep-64 29,22,000
83 01-Sep-64 2,40,00,000 Return of Premium
POST TAX XIRR 6.71%
PRE TAX XIRR 11.69%
37. Systematic Withdrawal plan (swp) :
A systematic withdrawal plan (SWP) is a facility which allows you to withdraw a fixed amount from your mutual fund at
regular periodic intervals.
• Flexibility
• Regular Income
• Capital appreciation