This document provides information on making investments work for you through saving and investing regularly from an early age. It discusses starting small investments early in life to benefit from compound returns over time. The key is for investment returns to exceed inflation rates over the long run. Various low and high risk investment options are outlined including fixed deposits, mutual funds, real estate, and gold. The document emphasizes that while fixed deposits are safe, their returns may be outpaced by inflation, making higher-return investments like mutual funds more suitable for achieving long-term financial goals when invested in for periods of 3-5 years or more despite short-term volatility. It provides contact information for a financial planner to help readers develop an optimal investment strategy.

1. Make your money work for
you!!

2. Save & invest regularly
Investing for a longer time is more effective than waiting
until you have a large amount to invest.
Start early
Small investment made early in life can generate a larger amount
than a larger investment made later in life.
Investment returns should exceed
inflation
The returns on investments should exceed the rate of inflation (FD
rates usually do not fulfil this criteria).
“Slow, steady and smart wins the race”
Cornerstones for Successful Investing

3. Investment Options
• Debt : Fixed returns, low rates of interest
- Fixed Deposits (8% - 9.5% for 1 year)
- Public Provident Fund (8.70% lock in 15 years)
- National Savings Certificate (8.5% lock in 5 years)
• Equity : Varying returns (yearly average is 15%)
- Shares
- Mutual Funds
• Alternative Investments
- Real Estate
- Gold
"In investing, what is comfortable is rarely profitable."

4. FD / PPF v/s Stock Market
-60
-40
-20
0
20
40
60
80
100
2005 2006 2007 2008 2009 2010 2011 AVG
FD
MF
PPF
1. Stock Markets can give negative returns eg. 2008 and 2011
2. To beat negative returns one needs to be invested for longer periods
of time ( 3 – 5 years).
3. The losses of 2008 have turned into gains in 2009 and 2010 for those
who waited patiently.
"Investing should be more like watching paint dry or watching grass grow. If you
want excitement, take $800 and go to Las Vegas."

5. Fixed Deposits – Pros and Cons
Safe Investment, low risk.
Benefit of income tax if held for 5 years.
Low rate of interest.
Rising inflation can wipe out the interest benefit.
Taxed at normal rates if not held for 5 years.
Penalty for premature withdrawal.
Bank Guarantees only of Rs. 1,00,000 per depositor per bank.
"How many millionaires do you know who have become wealthy by investing in savings
accounts / fixed deposits? I rest my case."
I
N
F
L
A
T
I
O
N

6. Mutual Fund Definition
- Pools money from many investors
- Invests in a mix of stocks, bonds and other securities
- Managed by professionals
“Small drops of water make a big ocean”

7. FALSE Impressions
about
Mutual Funds
• Mutual Funds are only for experts - FALSE
• Mutual Funds invest only in stock markets - FALSE
• One needs to have a large sum of money to invest - FALSE
• All funds have high risk - FALSE
• One needs to constantly track the movements in the market
- FALSE
“ Myths have a very long memory”

8. Benefits of Mutual Funds
• Professional Manager
• Portfolio Diversification
• Tax Benefit (ELSS schemes)
• Flexibility & Convenience
• Well regulated
• Transparency
• Power of compounding
• Outperformed every other
asset in the long run

9. Growth of Mutual Fund
Assets Under Management in 2014 is 9.87 lakh crores
Ask yourself
What is your contribution towards the same?
Why are there so many people investing in MFs?
0
200000
400000
600000
800000
1000000
1200000
2005 2006 2007 2008 2009 2010 2011 2014
Rs. In Crores
Rs. In Crores

10. Mutual Fund Houses in the market
• SBI
• HDFC
• ICICI
• Reliance
• Franklin Templeton
• Etc. (another 35 + mutual fund houses)

11. Who should invest
• Anyone who has a time frame of 3 years plus
• Anyone who has a basic idea on the
concept of Mutual Funds
• Anyone who has Funds of Rs. 1000 and
above as cash in hand or in the bank
“Do something today that your future self will thank you for”

12. Reasons for not investing
• Ignorance, is it a bliss?
• No guarantee of returns
• Negative publicity
• Financial Terminology
• Neophobia : Fear of anything new
• Confused about choices and options
“Replace fear of the unknown with curiosity”

13. Do you need a Financial Planner???
• Are your returns on investments optimal?
• Are you financially ready for – Marriage, New
carhouse, starting a family, Children’s
education, Retirement etc. ?
• Who advises you on cash flow management,
retirement planning, investment planning,
insurance planning, tax planning etc. ?

14. Financial Planning
Just like
A
doctor is consulted for better health
A
financial planner is consulted for better wealth
“ A year from now you may wish you had started today”

15. Lets Begin
Contact Details
E-Mail : presleyffernandes@hotmail.com
Mobile : +91 9820890098
“ There's nothing wrong with procrastination. Or is there? I'll leave it to you to decide, but only if you
make the time “