A Presentation made by Shilpa Sharma

1. Efficient Tax
Planning Strategy
A Presentation by…..

3. We Start at 8:00 am everyday…
8:30 am leave home
an hour to office
10 hours of high stress environment
another hour to get back home...
….continues for 6 days a week !!

4. And Back at home...
Ageing Parents
Loving spouse
Growing Children

5. We all want...
A house of our own
A car
Good education for children
A peaceful retired life
Money doesn’t ensure happiness
but certainly it saves you from miseries of life……

6. To achieve this - Save and Invest
Saving is putting aside money, but
Investing means making your money work hard...

7. …and Investment Options are
Provident Fund, LIC, NSC, PPF
 Tax efficient, Safety but Liquidity Constraints.
Fixed Deposits and RBI Bonds
 High Safety but Moderate Returns, High Tax incidence
and Liquidity Constraints.
Savings Bank Account
 Highly Liquid but Low Returns and High Tax
incidence.
Mutual Funds…

8. Traditional Products – Returns
Fixed
Deposit
RBI Bonds
/NSCs
PPF
Investment 100.00 100.00 100.00
Interest 9.00 8.00 8.80
Tax (@30.90%) 2.78 2.47 0.00
Net Return (Rs.) 6.22 5.53 8.80
Net Return (%) 6.22 5.53 8.80
Lock-in 3 years 6 years 15 years
Returns at best can meet the inflation. Thus
these don’t give any tangible gains.

9. We may feel secure, but ...

10. “The policy of being too cautious,
is the greatest risk of all”
- Jawaharlal Nehru

11. We face……..>>>>
• The Risks of…..
 Inflation
 Inadequate Planning
 Lack of Care of our Investments
What does one do ?

12. Five Important
Financial Lessons
1. Start Early
2. Invest Regularly
3. Plan Adequately
4. Save and Invest
5. Manage Risk
Building Wealth Through Customized
Investment Management….

13. MUTUAL FUNDS
With Professional Guidelines…..
INVEST THRU

14. Benefits of Mutual Funds
 Liquidity Redemptions within One to Three days
Easy to Invest and Easy to Redeem
Diversified Portfolio Leads to Risk Control
Switching Between Funds Allowed
Disclosure of Portfolio & NAVs Declared Daily
Regulated by SEBI
Section 80 C, Tax Free Dividend and Capital
Gains Tax benefits
 Convenience
 Risk Diversification
 Flexibility
 Transparency
 Regulated
Plus
 Tax Benefits

15. What Mutual Funds are…
 A common Pool of Money
 In the Form of a Trust
 Managed by a Team of Professionals
 Regulated by SEBI
 Monitoring by RBI of Money Market Funds
 Transparent.

16. …Why we need them.
 Information
• …real time, to take an “informed” decision
 Skill
 Time
• …to constantly monitor your investments
• …ability to interpret information and use it
 Timely Execution
• …trying to time the market

17. Types of Mutual Funds
Debt Funds
• Invest in Bonds, Commercial Papers, Govt. Securities and T-Bills
• The objective is to maximize returns with security
Equity Funds
• Invests in shares and stocks of companies
• Returns are dependent on the Capital Market movement
Balanced Funds
• Invests in Equity as well as debt to strike a balance between growth and
safety
• Offer higher returns than a debt fund but is prone to more risks due to
equity component

18. And for your regular savings
SYSTEMATICSYSTEMATIC
INVESTMENT PLANINVESTMENT PLAN
(SIP)(SIP)
An attempt to make life easier

19. Features
• As simple as a Provident Fund deduction
• Tailor made plans
• Automatic savings
• Adequately Liquid
• Tax efficient returns

20. Liquid and FMPs – Underlying
Investments
 Government Securities
 Corporate Bonds
 Treasury Bills
 Call Money
 Reverse Repos
 Commercial Papers
 Structured Debt Instruments
The Instruments are chosen as per the stated
investment objective of the scheme.
What you can GAIN

21. 8.50%
Year Mont hly Inst . Annual Payment Annual Ret urn Value
1 5,000 60,000 2,728 62,728
2 5,000 60,000 5,332 62,728 125,456 130,788
3 5,000 60,000 11,117 130,788 193,516 204,633
4 5,000 60,000 17,394 204,633 267,361 284,755
5 5,000 60,000 24,204 284,755 347,483 371,687
6 5,000 60,000 31,593 371,687 434,415 466,009
7 5,000 60,000 39,611 466,009 528,737 568,348
8 5,000 60,000 48,310 568,348 631,076 679,385
9 5,000 60,000 57,748 679,385 742,113 799,861
10 5,000 60,000 67,988 799,861 862,589 930,577
11 5,000 60,000 79,099 930,577 993,305 1,072,404
12 5,000 60,000 91,154 1,072,404 1,135,132 1,226,287
13 5,000 60,000 104,234 1,226,287 1,289,015 1,393,249
14 5,000 60,000 118,426 1,393,249 1,455,977 1,574,403
15 5,000 60,000 133,824 1,574,403 1,637,132 1,770,956
16 5,000 60,000 150,531 1,770,956 1,833,684 1,984,215
17 5,000 60,000 168,658 1,984,215 2,046,943 2,215,602
18 5,000 60,000 188,326 2,215,602 2,278,330 2,466,656
19 5,000 60,000 209,666 2,466,656 2,529,384 2,739,050
20 5,000 60,000 232,819 2,739,050 2,801,778 3,034,597
21 5,000 60,000 257,941 3,034,597 3,097,325 3,355,266
22 5,000 60,000 285,198 3,355,266 3,417,994 3,703,191
23 5,000 60,000 314,771 3,703,191 3,765,919 4,080,691
24 5,000 60,000 346,859 4,080,691 4,143,419 4,490,277
25 5,000 60,000 381,674 4,490,277 4,553,005 4,934,679
1,500,000 3,369,205
Ret urn on Invt .

22. Creating Wealth – Start Early
8.50%
Year Mont hly I nst . A nnual Pay ment A nnual Ret ur n Value
1 5,000 60,000 2,728 62,728
2 5,000 60,000 5,332 130,788
3 5,000 60,000 11,117 204,633
4 5,000 60,000 17,394 284,755
5 5,000 60,000 24,204 371,687
6 5,000 60,000 31,593 466,009
7 5,000 60,000 39,611 568,348
8 5,000 60,000 48,310 679,385
9 5,000 60,000 57,748 799,861
10 5,000 60,000 67,988 930,577
11 0 79,099 1,012,404
12 0 86,054 1,101,187
13 0 93,601 1,197,516
14 0 101,789 1,302,033
15 0 110,673 1,415,433
16 0 120,312 1,538,473
17 0 130,770 1,671,972
18 0 142,118 1,816,817
19 0 154,429 1,973,975
20 0 167,788 2,144,491
21 0 182,282 2,329,501
22 0 198,008 2,530,236
23 0 215,070 2,748,034
24 0 233,583 2,984,345
25 0 253,669 3,240,743
600,000 2,575,269
Ret ur n on I nv t .

23. Creating Wealth – Start Late
Return on Invt. 8.50%
Year Monthly Inst. Annual Payment Annual Return Value
1 0 0 0
2 0 0 0
3 0 0 0
4 0 0 0
5 0 0 0
6 0 0 0
7 0 0 0
8 0 0 0
9 0 0 0
10 0 0 0
11 5,000 60,000 2,728 62,728
12 5,000 60,000 5,332 128,060
13 5,000 60,000 10,885 198,945
14 5,000 60,000 16,910 275,855
15 5,000 60,000 23,448 359,303
16 5,000 60,000 30,541 449,844
17 5,000 60,000 38,237 548,081
18 5,000 60,000 46,587 654,667
19 5,000 60,000 55,647 770,314
20 5,000 60,000 65,477 895,791
21 5,000 60,000 76,142 1,031,933
22 5,000 60,000 87,714 1,179,647
23 5,000 60,000 100,270 1,339,917
24 5,000 60,000 113,893 1,513,810
25 5,000 60,000 128,674 1,702,484
900,000 802,484

24. What you need to do ...

25. You Achieve
• Freedom
To put all your efforts into what you do best
• Peace of mind
At the end of a tiring day in office
• Time
Your family has a right to it

26. THANK YOU