8. Credit card
◦ Usurious rates 2.5/3 per month ~ 36 % per annum
◦ Interest on whole outstanding amount even if
partially paid
ULIP is a mix of Investment + Insurance
◦ Charges
◦ Stories
Mutual Funds
◦ Classes & Categories
◦ Splitting hair !!
9. Safe & guaranteed returns
Fixed Deposit – Tax but guaranteed, No
Limit!!
EPF/PPF – Tax Fee but Limit!!
◦ Psychological factor
Bonds
NCDs
10. FD – Retail banks, Cooperative, NBFCs
Cooperative banks with higher Interest
◦ High risk
◦ Deposit only upto 1 lakh is insured
Better invest in NBFC with good credit rating
11. Capital Gains but Risk!
STCG is taxed but LTCG is tax-free!
Instrument - Debt Mutual Funds
◦ Liquid
◦ Income
◦ MIP
◦ Gilt
12. First best known investment to Indians
Plot, Residential, Commercial
Immovable, highly localized
No market, No price discovery
Mostly speculative as less number of
participants
Handsome returns in last decade but will it
last???
13. Second best investment known to Indians
Unproductive asset, mainly ornamental
Price is inversely proportional to economic
growth
Is it time to buy / sell???
14. Equity means ownership
Owning part of a business like a partnership
Routes
◦ Private Equity
Venture/Angel Funding/PE Investors
◦ Public Equity
Funded by general public (*)
15. Raise capital for
◦ Entrepreneurs
◦ Job creation
◦ Participation for general public
Governed By
◦ SEBI
16. High Risk, High Rewards !!
Returns are lumpy
Best returns as compared to any broad-based
asset classes
Capital Appreciation + Dividends
LTCG & Dividends are tax-free!!
Stories
◦ 10k invested in Infosys in IPO is > 1 Crore in 1993
◦ 2008 Financial
Routes – Mutual Funds, Direct Equity
17. Types
◦ Large/Mid/Small
◦ Hybride – Equity + Debt
◦ Thematic
Things to Look for
◦ AMC – Asset Management Company
◦ AUM – Asset Under Management
◦ Expense ratio
◦ Entry / Exit Load
◦ Lockin period
◦ Benchmark Index
◦ Fund Manager
18. Risk Category
Pros
◦ Diversified investment, so moderate gain/loss
Cons
◦ Difficult to understand underlying business
◦ May not be enough for risk taker investor
19. Directly investing into stocks
Need to have strategy
Need to understand markets
Need to evaluate, understand the company
Pros
◦ Highly rewarding
◦ Relate to the business, company
Cons
◦ Volatile
◦ Could be highly destroying
20. Fundamental Analysis
◦ Balance Sheet
◦ P&L statement
◦ Result statements
◦ Industry, Economic outlook
◦ Dividend history
◦ Promoters
Technical Analysis
◦ Identify chart patterns
◦ Useful to time the entry/exit
Use fundamentals to evaluate company, use
technical analysis to enter/exit
21. Place to buy/sell equities
Primary Market - IPO
Secondary Market
◦ Trade in already listed stocks
Stock Exchanges
◦ BSE/NSE
◦ Pune has a stock exchange !!
Brokers
◦ Consultants
◦ Online – ICICIDirect, Sharekhan etc.
25. Inflation
◦ CPI – Consumer Price Index
◦ WPI – Wholesale Price Index
Depreciation
◦ Time value of money
◦ Even cash is depreciating
◦ Opportunity cost
Growth
◦ GDP – Gross Domestic Product
Inflation is inversely proportional to Growth
26. Try to invest early in basket of High (Equity),
Medium (Mutual Funds), Low (Fixed Income)
return assets while minimizing risk
27. Conservative – Fixed Income & Debt
Slight appetite for Risk – Fixed Income/Debt
+ Equity (MF)
Risk appetite, not interested, Low Networth –
Equity MF
Risk appetite, not interested but HNI category
– PMS
Risk appetite & interested – Direct Equity +
Equity MF
28. Timed
◦ Buy on dips
SIP (Systematic Investment Plan)
◦ Recurring
◦ Available for all “Liquid” asset classes
29. Single view of your assets, liabilities,
investments, expenses called as Portfolio
◦ Links to online bank, trading, loan, deposit
accounts
◦ Include offline assets like land, house, gold etc.
Examples
◦ ICICIBank Money Manager (powered by Intuit)
◦ Perfios, Mprofit
30. Nobody’s interested
Why?
◦ Detrimental to Financial Industry
◦ Its like CSR
Financial Advisors
◦ Its like finding a good teacher/mentor
Half-hearted attempts by govt agencies
like Stock markets, SEBI etc.
Watch this short film (An Idiot by IDFC)
https://www.youtube.com/watch?v=vU1l
1TB7GzI
31. Get a Demat Account & Trading account for
self/family like ICICIDirect or FundsIndia
Apply to IPOs, Bonds
Start SIP into some MFs
Slowly dabble into equities
Keep track of your investments
