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Basics of investing-1
- 1. Basics of Investing- 1
- 2. Somebody is taking your wealth away from you Slowly and Silently ? And May be you do not even know about this…
- 3. MR. X earns 8 % interest on his money and has to pay 10 % as account maintenance charges . Calculate his profit/loss in 5 years if he deposited 50,000/Month in his bank. Money Growing Wealth Reducing
- 4. Mr. X would loose around 2 Lakhs in 5 years While you are working hard to make money ;your money is lazy . It also need to work hard to create wealth for you.
- 5. Its was just one of the reason, why you should Invest ? Its not ONLY about keeping your wealth but also about something far more important YOUR FREEDOM
- 7. Income from Labor Income from Assets
- 8. Meet the Characters Mr. Labor Mr. Creator Mr. Power Mr. Investor
- 9. How Rich you think Mr. Labor can become ????
- 10. Mr. Labor has physical capacity of doing work, Other three do not have any such constraint
- 11. How Rich you think other three characters can become????
- 12. Idea of Financial Freedom Investing is your only Income source which is independent of any physical constraint.
- 13. Gold Real estate Fixed income, Bonds, Debt Stock market
- 14. WRONG CLASSIFICATION Store Wealth -> Non-productive assets Create Wealth-> Productive assets
- 15. Bank Example Client -> FD safe keeping Bank -> Productive assets
- 16. EQUITIES: THE ONLY ASSET CLASS CONSISTENTLY DELIVERING HIGHER PURCHASING POWER HISTORICAL 5-YR AVERAGE INCREASE (%) 5-YR AV RETURNS EX-INFLATION (%) Inflation Gold Sensex G-Sec 1970-75 12 29 1975-80 4 17 1980-85 10 11 8 1985-90 8 10 11 1990-95 10 8 29 12 1995-2000 8 -1 9 13 2000-2005 4 7 5 8 2005-2010 8 21 22 8 2010-2014 10 12 6 8 1984-2014 CAGR 8 9 20 10 Gold Sensex G-Sec 1970-75 17 1975-80 13 1980-85 1 -2 1985-90 2 3 1990-95 -2 19 2 1995-2000 -9 1 5 2000-2005 3 1 4 2005-2010 13 14 0 2010-2014 2 -4 -2 1984-2014 CAGR 1 12 2 SENSEX AVERAGES 20% RETURNS VS 9% FOR GOLD,VS 10% FOR FIXED INCOME AND 8% INFLATION Stocks also happen to be the only asset class attracting NO long-term capital gains tax Source: RBI
- 17. 0 5,000 10,000 15,000 20,000 25,000 Mar-84 Mar-85 Mar-86 Mar-87 Mar-88 Mar-89 Mar-90 Mar-91 Mar-92 Mar-93 Mar-94 Mar-95 Mar-96 Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Cash (0% CAGR) Gold (9% CAGR) GSec (9.8% CAGR) Sensex (20% CAGR) 10% DELTA RETURN CAN MAKE YOU VERY RICH! Mar-84 Mar-14 Gold 100 1333 Gsec 100 1,652 Sensex 100 22,386
- 18. WHO HAS MOST OF THE WEALTH?
- 19. Who is the owner of Corporate ?
- 20. That’s Why Inertia Recommends
- 21. Then Why Everyone who invested in equities is not RICH?
- 22. Any Guesses ?
- 23. Check out this and more our next session Basics of Investing- 2 service@equities4wealth.com www.equties4wealth.com