The document discusses the essentials of financial investment planning, including definitions, purposes, types of mutual funds, and their advantages. It emphasizes the importance of not solely relying on historical performance for investment decisions, as mutual funds are subject to market risks and their returns can fluctuate significantly. The author suggests a calculated approach to investing that accounts for average returns and risks, rather than unrealistic expectations based on past performance.

1. my articleis :-
don’t invest on the basisof a
Mutualfund’s best performance
Period :view

2. CONTENT
1. What do you mean by financial investment plan?
2. Purpose of financial investment plan .
3. What are various ways of financial investment ?
4. What is mutual fund investment ?
5. Different types of mutual fund.
6. Advantages of mutual fund investment.
7. Article example And suggestion by the writer.
8. Conclusion.

3. WhatDo You Mean By FinancialInvestmentPlan
 DEFINITION :- We allhave financialneeds that change with
circumstances and environment we are in.
 To be able to handle these financialneeds well , we need to plan
for them in time and plan well.
 Six steps of financialplanning are :-
1. Establishingrelation. 4. Asset allocation status
2. Goal setting. 5. Implementation
3. Accessing financialstatus. 6. Review

4. Purpose OfFinancialInvestment Plan:-
1. Marriage
2. House
3. Children education
4. Other emergency
5. Retirement

5. WhatDo You Mean By MutualFundInvestment?
• A mutual fund is formed by putting together a group of
investors pool in their and the investment is done by a
professional fund house for a fee through its
professional fund managers.
Investor
Mutual
fund
Security Returns

6. DifferentTypes Of MutualFund :-
 On the basis of duration :-
1. Closed ended fund 2. Open ended fund
 On the basisof asset managed :-
1. Equity Fund = Growth Fund , Index Fund etc.
2. Debt Fund = Gilt Fund , Income Fund etc .
3. Hybrid Fund .
4. Special Fund = Gold ETF , Foreign fund etc.

7. Advantages OfMutualFund :-
Professional management
Affordable portfolio diversification
Economic scale.
Investmentconvert
Regulatory comfort
Systematic approach to investment

8. SituationsFrom My Article :-
1. One investor is eager to invest Rs 7cr. in mutual fund
2. Another isready to invest about Rs 4cr .
3. A businessman who wantsto invest Rs 7cr earned after hishouse issold.
to earn 1.25cr yearly idea taken by a friend.
4. As his friend has invested Rs 5cr for 3year ago and get return of Rs 8cr as
Rs 1.25 yearly.

9. SuggestionFrom Writer For These InvestmentPlan:-
The first two investor want to invest Rs 7cr & Rs 4cr :-
These particular investors are trying to invest infund
with unrealistichigh expectations on returns.
which make huge changes in their personal financial
structure.

10. CONTD. :-
One is the example with successfulproof of investing
Rs 5cr and getting return of Rs 8cr shown to writer.
But writer suggest that :-
in past half decade was explosion in mutual fund
investor. But things will not be same all time .
‘As mutualfundsare subject to marketrisk ‘

11. CONTD. :-
 Writer do give a idea of non consistency in mutual fund
return as follows :-
 In 2014 = 40% + returns.
 In 2015 = Flat means no returns.
 In 2016 = Flat means no returns.
 In 2017 = 20%+ returns.

12. CONTD.:-
After seeing this figure anyone can say that total gainis
75% .
 As someone can shows you an account statement
with only initialinvestment and finalinvestment.
 But the annualisedis 17% it looks magic and makes no
mistakes. The volatility is much part of it as returns.
 We cannot consider 17% asfixed deposit as it is Return
which canbe flatin some years which canmake big loss.

13. CONCLUSION :-
 One should not take returns as for-granted .
 Should not invest only in particular period
of exposure.
 Should calculate the average returns of funds
for the investment instead of going with
net returns .
 And as per the thumb rule is that :-
1. More risk more return.
2. Less risk less return .
 But investor should invest according to regular
fluctuating returns. Not in periodic basis.

14. THANK YOU !!!!!!
BY SANA MUSHTAQUE