The document emphasizes the importance of investment planning and setting financial goals across different life phases. It highlights that many investors overlook inflation and real returns, urging a disciplined approach to investing through methods like Systematic Investment Plans (SIPs). Additionally, it illustrates the significant benefits of starting early and investing in equity to maximize returns over time.

1. Mantras
for
Investment
Ventura Securities Ltd. April 2016

2. Why do I need to
do Investment
Planning?
I’m young and
want to enjoy
my life!
I don’t have any
spare money to
invest or save!
I’m already
investing in
Bank FDs!

3. The ET WEALTH Retail Investors' and
Consumers' Survey 2015-16
The survey was carried out among 10,000 consumers and was spread across metropolitan cities, tier-2 and tier-3 towns.
Only 3% of the respondents says they can achieve all GOALs

4. What are these goals?
Phase I Phase II Phase III
Child’s Education
Child’s Marriage
Education
Earning Years Post Retirement Years
Age- 22 yrs Age- 60 yrs
Marriage
Child birth
Housing
22 yrs 38 yrs 15- 20 yrs
Non-Earning Years

6. Common Reasons
Savings Vs. Investment
Time Value of Money
Investors ignore Real Return
Inappropriate InvestmentsInappropriate Investments
Long term invest into Debt (PPF; FDs; Tax free bonds etc.)
Short term invest into Equity

7. Savings Vs Investments
Short-term goals
Manages
Long term goals
Normally, for a
You
decide
Savings Investment
Manages
immediate
liquidity needs
Earn small
amount of
money
Normally, for a
longer duration
Usually earn a
larger amount of
money
decide
what is
good
for
you…

8. Time value of money
Impact of inflation on monthly
expenses of Rs. 30,000 today
Decreasing Value of Rs.
100,000 over time
62,368
79,599
100,000
78,353
At inflation of 5%
30,000
38,288
62,368
Today 5 years 15 years 20 years
48,102
37,689
Today 5 years 15 years 20 years
Hence objective of any investment is to beat inflation

9. Investors ignore Real Return
Actual
Return – Tax
Applicable
Post Tax
Return
––
InflationReal Return

10. Real Returns….
Date Bank FD^ PPF Gold Sensex
Nov-90
9.00% 9.00%
3200 1196
Mar-16 29,766 24,646
XIRR (%) 9.21% 12.69%
^Weighted average rate for last 25 years
**Weighted average inflation for the past 25 years
*Assuming the investor is in Rs.10 lacs and above tax slab who is taxed at 30.90%
XIRR (%) 9.21% 12.69%
Real Return (%) -1.78% 1.00% 0.26% 4.69%
Post Tax Returns 6.22% 9.00% 8.26% 12.69%
Inflation (%)** 8.00%

11. Today’s value of Rs. 1 lakh invested in different asset
classes 15 years back
10.00
12.00
14.00
AmountRs.Lakhs
Performance of Asset Classes
13.59
8.14
3.64 4.18
0.00
2.00
4.00
6.00
8.00
10.00
Equity Gold Bank FD PPF
AmountRs.Lakhs
Equity Gold Bank FD PPF

12. Select Proper Asset Class
Define your goals between Short term & Long Term
Invest into Debt Instrument Invest into Equity Instrument

13. Million Dollar Question
Equity seems to
be attractive…
but I don’t have
much knowledge
Kaise invest
karu?
Kaunse
shares buy
karu?
much knowledge
about it

14. Systematic Investment Plan

15. Benefits of SIP!!
1. Rupee Cost Averaging
2. Power of Compounding
3. Investment Convenience
4. Disciplined Savings
5. Flexibility

16. SIP Journey of Ramesh
Ramesh is a 45 years old
married man and has
been investing Rs. 5000
per month in Equity
Mutual Funds via SIPMutual Funds via SIP
since age 25 .
Let’s take a look of his
SIP Journey….

18. “Start Early” for the extra zero
“The Power of compounding is the Eighth wonder of the world”
- Albert Einstein

19. “Start Early” for the extra zero
At the Age 60
Ram’s Corpus
The Difference due to early
start of 5 years.
Investment Ram’s Corpus
Rs. 3,22,00,000
Shyam’s Corpus
Rs. 1,75,00,000
Rs.
1,47,00,000
Does that sound BIG enough?
Investment
Period
35 years
Investment
Period
30 years

20. Scheme Performance
SIP returns on monthly investment of Rs. 5,000/-
Tenure 5 Years 10 Years 20 Years
Investment amount (RS.) 300,000 600,000 1,200,000
Scheme Name
Present
value(Rs) XIRR(%)
Present
value(Rs) XIRR(%)
Present
value(Rs) XIRR(%)
Franklin India Prima Fund 529,085 23.60 1,509,574 17.81 20,622,702 24.17Franklin India Prima Fund 529,085 23.60 1,509,574 17.81 20,622,702 24.17
SBI Magnum Multiplier
Fund 453,500 17.07 1,213,947 13.70 9,233,046 17.99
Birla SL Advantage Fund 460,578 17.72 1,135,105 12.43 9,432,650 17.93
SBI Magnum Equity Fund 409,735 12.82 1,109,186 11.99 7,900,892 16.50
Reliance Growth Fund 409,724 12.82 1,097,148 11.78 20,444,586 24.10
Benchmark Index
NIFTY 50 356,993 7.12 885,062 7.66 4,511,563 11.91
Returns as on 7th April, 2016

21. Recap..
1. Set your Financial Goals.
2. Start Early.
3. Target Real Returns.
4. Do not ignore EQUITY as an asset class.4. Do not ignore EQUITY as an asset class.
5. Adopt disciplined way of SIP.

22. Thank you!
Email: mfcustomercare@ventura1.com
Time is ticking and every second counts….START
INVESTING NOW….ITS NEVER TOO LATE !!