This document outlines an I.D.E.A.S. investment plan approach. It discusses the dangers of unplanned investments and emphasizes that asset allocation is the most important investment decision. The benefits of a systematic, regularly planned investment approach are highlighted such as meeting financial goals and adequately considering risks. Equity investment is recommended for consistent long term returns, especially through mutual funds and SIP for their benefits like rupee cost averaging and convenience. The I.D.E.A.S. approach identifies goals, assesses risks and returns, estimates required funds, and advocates starting investments early for enhanced portfolio returns.

1. I.D.E.A.S Investment Plan

2. Investment Planning?
Investment Decisions Based on
 Newest Hot Tip in the market
 “Friendly” Advise
 Tax Saving Benefit
 Favorite Investment Avenues
 So-called financial “advisors”

3. Investment Planning?
Dangers of Unplanned Investments
 Portfolio returns highly compromised
 Asset Allocation not considered
 Financial goals not met
 Risks not covered adequately
 Lack of systematic / regularly planned investments
 Unable to make exit decisions

4. Points to Consider. 1
Asset Allocation decision is the
most important decision of an
investor
 Risk – Return tradeoff
 Diversification between asset classes
 Balancing of long term and short term goals

5. Points to Consider. 2
 Which remuneration would you pick for 30 days work?
 Would you choose…
 Choice 1: You get Rs 2 lakh net payment
 Choice 2: You get paid as per paise plan
i.e , Day 1 – 0.01
Day 2 – 0.02
Day 3 – 0.04
Day 30 – x amount
 Total pay will be sum of all 30 days

6. Points to Consider. 2
 Total Pay of Compounding
Day Pay Day Pay Day Pay
1 0.01 11 10 21 10000
2 0.02 12 20 22 20000
3 0.04 13 40 23 40000
4 0.08 14 80 24 80000
5 0.16 15 160 25 160000
6 0.32 16 320 26 320000
7 0.64 17 640 27 640000
8 1.28 18 1280 28 1280000
9 2.56 19 2560 29 2560000
10 ~5 20 ~5000 30 5120000
Total Pay:
10240120
Total Pay:
10240120

7. Why Equity?
 Consistent Higher Returns over long term

8. Why Equity?
 Probability of Negative Returns

9. Why Equity?
 Advantage of Equity over other Asset
Classes
 Diversification possible at low amounts
 Regular investment possible
 Liquidity (Ease of selling / Part selling)
 Efficient post tax returns
 High Transparency and well regulated
 Negligible cost of maintenance
 Low transaction cost

10. Why Mutual Funds?
 Advantages of MFs over Direct Equity
 Equities require extensive research
 Mutual funds are suitable for most investors
 Diversification is much easier
 Fixed income assets like bonds are not available to
individual investor
 SIP is easier to implement in mutual funds
 If the investor is skilled enough, they can do it. However,
equity investors are by nature optimistic and that makes
them overestimate their own skills. That’s an expensive
mistake

11. Why SIP?
Advantages of SIP
 Regular, disciplined investing is much easier
 Rupee cost averaging
 Power of compounding
 Flexibility in tenure
 Timing the market is not necessary
 Investment convenience through ECS
 SIP can be aligned with your financial goals

12. What is I.D.E.A.S @ Capitalworx?
Capitalworx helps you with I.D.E.A.S
 Identify your goals
 Determine time horizon
 Estimate of funds required
 Assess investment capacity
 Start early

13. Why I.D.E.A.S @ Capitalworx?
Benefits of I.D.E.A.S @ Capitalworx
 No haphazard investment
 Enhanced portfolio returns due to better asset
allocation
 Financial goals will be met
 Adequate consideration of risk coverage
 Systematic & disciplined
 Know when to exit

14. Thank You!
Contact us on:
 www.capitalworx.in
 Email: info@capitalworx.in
 Tel: +91 – 98256 13726