This document provides an overview of various asset classes and investment options including fixed income, real estate, equity, insurance, and loans. It discusses the basics of these asset classes including returns, risks, tax implications, and how to evaluate different options. The document emphasizes starting early with a diversified portfolio across high, medium, and low risk assets while minimizing costs and managing risks. It also provides tips on building an investment portfolio and getting started with various investment avenues.

1. Roopesh Kohad

2. Aspirations
◦ Home/Car/Holidays
◦ Luxuries
Retirement – No pension, More life
expectancy
When will I have enough money to fulfill my
dreams and not worry about future !!!

4. The session is for knowledge purpose
Please follow advice at your own risk 

5. Basics
◦ Asset Classes
◦ Liabilities Classes
Pitfalls
Deep dive

6. Fixed Income/Interest
◦ FD
◦ EPF/PPF
◦ Bonds
Real Estate
◦ Land/Residential/Commercial
Debt
◦ Mutual Funds
Equity
◦ Stocks
◦ Mutual Funds
Commodities
◦ Gold/Silver
◦ Others

7. Insurance
◦ Term
◦ Unit-Linked
◦ Others
Loans
◦ Home/Auto/Personal
◦ Credit Card

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.

22. Manipulated
Too Complex – require financial knowledge
Only for rich people
Symbol of greed

23. Formula
A=Amout
P=Principal
R=Rate of Interest percent per period
N=Number of periods

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

32. Which investment gives
highest returns?

33. Health
Education
Goodwill