Presentation will give you simple tips on how to make right financial decision. Very small but disciplined investment over long time can make fortunes.

1. Power of Behavioral Finance!
Save more for tomorrow, not tomorrow!
Chintan Radia

2. CONTENTS
Introduction to behavioral finance
Challenges with personal finance
Open Discussion
Investment instrument available in India
Q & A

3. BEHAVIORAL FINANCE
What is it? Why it’s important? Long term impact?

4. INTRODUCTION TO BEHAVIORAL FINANCE
 In the complex environment, behavioural finance comes
as an antidote to investor anxiety and guide to safe
investments
It’s an understanding of behavioural and cognitive
phycology and decision making process and helps us
understand why people make irrational decisions.
 It’s not a technique, it’s a human phycology.

5. HUMAN BEHAVIOR
Lets take two situation :
Situation 1:
a) A sure gain of Rs. 2000
b) 25% chance to gain Rs. 4000 and 75% chance to gain nothing
Situation 2:
a) A sure loss of Rs. 2000
b) 75 % chance to lose Rs. 4000 and 25% chance to lose
nothing.

6. HUMAN BEHAVIOR
 Happiness of earning is less than compared to pain of
loss.
People tend to become more optimistic when markets go
up and more pessimistic when markets go down
 Investors are risk hesitant when chasing gains but
becomes risk lovers when trying to avoid loss.

7. CHALLENGES WITH
PERSONAL FINANCE

8. CHALLENGES
Lack of Time
Lack of knowledge
Fear of loss
Bad past experience
Hard times is the best time to
invest!

9. OPEN QUESTION
Are we giving enough time to personal finance ?

10. OPEN QUESTION
Are you a disciplined investor ?

11. OPEN QUESTION
Why people tend to spend more then what they earn?

12. OPEN QUESTION
Why it's important to start with small savings right
from the day you start earning?

13. SO HOW TO MASTER
YOUR MONEY?

14. MASTER YOUR MONEY
 Start saving from the day you start earning. DON’T wait for
right time!
 Amount of money you spend should be less then amount of
investments you make.
 Don’t ever go by market news and hot tips if you are a long
term investor.
 Give enough time to personal finance.

15. MASTER YOUR MONEY
 Plan your saving instead of planning your spending.
 Think of one thing that you can give up for next 2 years.
Invest that money for next 2 years.
 Investments should be regular through out the year not
just to save tax while filing IT returns.

16. FINANCIAL
INSTRUMENTS

17. INVESTMENT INSTRUMENTS
Stock
Market
Mutual
Funds
Bonds
Fix
Deposit
Gold
Real
Estate
PF , PPF

18. HISTORIC DATA OF STOCK MARKETS

19. STORY OF WIPRO

20. HISTORY OF MUTUAL FUND RETURNS

21. HISTORY OF SIP RETURNS

22. HISTORY OF ASSET CLASS RETURNS

23. HOW TO MAKE RIGHT
DECISION

24. HOW TO MAKE RIGHT DECISIONS
 Understand your current financial situation
 Set goal of what you want to achieve in next few years
(long term & short term)
 Be a disciplined investor

25. HOW TO MAKE RIGHT DECISIONS
 Don’t ever go by tips and recent trends. Always look at
the fundamentals and historic returns.
 Diversify your portfolio.

26. Think big!
When other are greedy be fearful and when others are fearful be greedy.
THANKS!