FINCIAL EDUCATION

1. Taking control of your
financial future

2. Know yourself

3. Cash Flow
Income
Mandatory
outflows
Expenses Savings

4. Why do we save?
Support to Family
Vehicle
Child’s Education
House Retirement
Child’s Marriage

5. Inflation
Pulses Fruits & Vegetable
Chocolates Transportation

6. Invest
Tax
Inflation
Spend

7. Lifestyle Inflation
1995 2005 2019

8. Fixed Deposits
Note: Tax calculated at 30%
1,00,000
0 1
1,06,500
6.5%
0 1
1,06,500 1950 1,04,500
Before Tax After Tax
Tax
1,04,500
7%
Inflation
97,664

9. Fixed Deposits
Rs. 1,00,00 invested for specified terms
Note: FD returns @5.85% post 10% tax and inflation is 7%

10. Equity
Rs. 1,00,00 invested for specified terms
Note: Equity returns @15% and inflation is 7%

11. Products
Rs. 1,00,000 invested per year for 30 years
Insurance FD Inflation Equity
Maturity amount 8400000 12300000 13500000 50000000
0
10000000
20000000
30000000
40000000
50000000
60000000
Maturity amount
8%
Note: Post tax returns
Source: Internal
comparison
6%
8.5%
15%

12. Rs. 1CR. v/s Re. 1
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 Total: 30 Crores

13. Rs. 1CR. v/s Re. 1
Sun Mon Tue Wed Thu Fri Sat
1
Rs. 1
2
Rs. 2
3
Rs. 4
4
Rs. 8
5
Rs. 16
6
Rs. 32
7
Rs. 64
8
Rs. 128
9
Rs. 256
10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 Total: 30 Crores

14. The Deal
Sun Mon Tue Wed Thu Fri Sat
1 2 4 8 16 32
64 128 256 512 1,024 2,048 4,096
8,192 16,384 32,768 65,536 131,072 262,144 524,288
10,48,576 20,97,152 41,94,304 83,88,608 1.67 Crores 3.35 Crores 6.71 Crores
13.42
Crores
26.84
Crores
53.68
Crores
Total = Rs. 1,07,37,41,823
(107 crores – 30 crores)
30
16
9
2
23
17
10
3
24
18
11
4
25
19
12
5
26
20
13
6
27
1
15
8
22
29
14
7
21
28

15. Equity
Which Asset Class
beats inflation & is Tax
Efficient?

16. Sensex Return Since 1979
16% Compounded
Annual Return*
Past returns are not guaranteed

17. Mutual Fund
How does it
work?
Investor
Mutual
Fund - Fund
Manager
Securities
Returns

18. 18
Mutual Fund - Features
• High Returns over long term.
• High Liquidity at NAV based prices.
• Dividend tax free in the hands of investor.
• Low Investment Size
• Risk is minimized through diversification
• Various Types of Funds to choose from
• Periodic Investment (SIP)/Withdrawal (SWP) facility
• Other facilities like STP available

19. 19
Mutual Fund – Type of Schemes
Investment Collection Options Other Scheme Plans
Equity - Open Ended - Growth - Direct
- Sectoral - Close Ended - Dividend - Regular
- Indices Based - Dividend Reinv.
- Thematic
- Tax Saving (ELSS)
Debt / Money Market
- Liquid
- Short Term
- Long Term
Hybrid/Balanced
Gold
International Funds

20. Mutual Funds Comparison - What to Check
• Returns (10/5/3/1 Years 6/3/1 Months)
• Expense Ratio
• Portfolio Composition
• Size of Fund
• Category (Small Cap/Mid Cap/Large Cap etc.)
• Investment Blend (Growth/Value)
• Alpha (Performance of Fund compared to Benchmark)
• Performance compared to category average
• Where: Valueresearchonline.com; Morningstar.in;
Moneycontrol.com

21. 21
Mutual Funds – Covid 19 Impact
• The pandemic and subsequent lockdown is rattling markets across the globe. We have
seen significant drawdowns in the equity markets since Mid- Feb. The correction has
been swift and unrelenting across the board, with stocks across sectors and market
capitalizations witnessing a sharp drop in prices.
• Equity mutual fund performance has been no different in this bear market, although
we have witnessed several funds fall lesser than their category benchmarks.
• Large caps witnessed 87.5% of the funds fall lesser than their category benchmark. For
mid-caps this is at 72.5% and multi-caps at 63.2%.
• Healthcare funds have been the most resilient during this fall, followed by consumption
funds & technology funds.
Source: Morningstar

22. 22
Mutual Fund Industry Growth -1 year
Assets managed by the Indian mutual fund industry have grown from Rs. 24.25 trillion in February
2019 to Rs. 28.29 trillion in February 2020. That represents a 16.65% growth in assets over February
2019.
Source: AMFI

23. Risk Categories
Debt
Hybrid
Equity

24. Risk Categories
Liquid Short Term
Credit
Opportunities
Income Fund
Balanced
Fund
ELSS
Equity
Diversified
Mid Cap Small Cap

25. Map MF to your Goals
1 Year
1-3 Years
3-6 years
6-10 Years
10 + Years
Liquid Mutual
Funds
Earn more than Saving
Accounts
Very Short Term
Debt Mutual
Funds
Vacations
Short Term
Balanced Mutual
Funds
Car Purchase
Medium Term
Diversified, Mid Cap
& Small Cap
Retirement, Wealth Creation
for Next Generation
Very Long Term
Diversified Equity
Mutual Funds
Children’s Education, Children’s
Marriage, Dream House
Long Term
Balanced Mutual
Funds
Diversified, Mid Cap
& Small Cap

26. Systematic Investment Plan (SIP)
 Daily, Monthly, Weekly, quarterly basis
 Direct debit
 Brings in discipline
 Power of Compounding

27. SIP of 1,000 per month
Years Investment Debt ( 9%) Balanced ( 12 %) Equity ( 15 %)
5 60000 75271 81104 87342
10 120000 1,91,086 224036 2,63,018
15 180000 3,69,281 475931 6,16,366
20 240000 6,43,456 919857 13.27 Lakhs
25 300000 10.65 Lakhs 17 Lakhs 27.56 Lakhs
30 360000 17.14 Lakhs 31 Lakhs 56.31 Lakhs
35 420000 27.13 Lakhs 55.1 Lakhs 1.14 crore

28. SIP of 5,000 per month
Years Investment Debt ( 9%) Balanced ( 12 %) Equity ( 15 %)
5 300000 3,76,357 405518 4,36,710
10 600000 9,55,430 11.2 Lakhs 13.15 Lakhs
15 900000 18.46 Lakhs 23.79 Lakhs 30.81 Lakhs
20 1200000 32.17 Lakhs 46 Lakhs 66.35 Lakhs
25 1500000 53.26 Lakhs 85.11 Lakhs 1.38 crore
30 1800000 85.71 Lakhs 1.54 crore 2.81 crore
35 2100000 1.35 crore 2.75 crore 5.70 crore

29. Equity SIP
Term
Outflow Fund Value Difference
1000 5000 1000 5000 Outflow Returns
5 60,000 3,00,000 87,000 4,37,000 2,40,000 3,50,000
10 1,20,000 6,00,000 2,63,000 13,15,000 4,80,000 10,52,000
15 1,80,000 9,00,000 6,16,000 30,81,000 7,20,000 24,65,000
20 2,40,000 12,00,000 13,20,000 66,35,000 9,60,000 53,15,000
25 3,00,000 15,00,000 27,56,000 1,37,00,000 12,00,000 1,09,44,000
30 3,60,000 18,00,000 56,31,000 2,81,00,000 14,40,000 2,24,69,000
35 4,20,000 21,00,000 1,15,00,000 5,71,00,000 16,80,000 4,56,00,000

30. Step-Up SIP
Term SIP Step Up SIP at 5%
Additional
Investment/Returns
1 60000 60000 0
2 60000 63000 3000
3 60000 66000 6000
4 60000 70000 10000
5 60000 73000 13000
6 60000 77000 17000
7 60000 80000 20000
8 60000 84000 24000
9 60000 89000 29000
10 60000 93000 33000
Debt 9,55,000 12,08,000 2,53,000
Balanced 11,20,000 14,18,000 2,98,000
Equity 13,15,000 16,68,000 3,53,000
1,55,000

31. Start investing today!
-35%
Impact on wealth if
one delays investing by
just 3 years
1.21 Cr
1.05 Cr.
0.91 Cr.
0.79 Cr.
Disclaimer : This calculation is for illustration purpose only. The return
shown are XIRR returns. Mutual Fund investments are subject to market
risks, read all scheme related documents carefully.

32. Achieving Financial Goal
Benefit of starting early :
Raj Ajay
Raj and Ajay both aged 25 years want to retire at the age of 55,
for which they want to make investment for happy retired life.
Raj creates
more wealth
than Ajay by
investing
lesser amount
Raj Creates Wealth of
Rs. 3.08 Crores
by Investing Rs.36 Lacs
Ajay Creates Wealth of
Rs. 1.18 Crores
by Investing Rs. 45 Lacs
Who do you
think will create
more wealth for
their retirement
at the Age of 55?
Longer the term, higher the compounding effect
Raj starts investing at the age of
25. He Invests Rs.10,000 per month
for 30 years in a fund earning 12%
rate of return per annum.
Ajay starts investing at the age of
40. He invests Rs.25,000 per month
for 15 years in a fund earning 12%
rate of return per annum.

33. Systematic Withdrawal Plan (SWP)
Scheme
Amount
Invested
No. of
Monthly
installments
Total
Withdrawal
Amount
Value after
5 Years
Pre Tax
Return (%)
Post Tax
Return (%)
Short
Term
10,00,000 60 325,000 10,77,489 8.1 6.48
Scheme
Amount
Invested
No. of
Monthly
installments
Total
Withdrawal
Amount
Value after
5 Years
Pre Tax
Return (%)
Post Tax
Return (%)
Fixed
Deposit
10,00,000 60 325,000 10,00,000 6.5 4.55
Internal Comparison

34. Savings to MF SIP
Total Initial
Investment
Amount
Monthly SIP
Amount (Rs.)
STP Period
No of
Installments
Total Amount
Transferred
Current Value Returns (%)
500,000 10000 5 Years 54 540000 0 3.5
Note - Internal Comparison
Monthly SIP
Amount
(Rs.)
STP Period No of Installments
Total Amount
Invested
Current Value Returns (%)
10000 5 Years 54 540,000 793835 17.22
Total
Investment
Amount
Total Current
Value
Total Returns (%)
No. of
installments
500,000 7,93,835 9.68 54

35. Systematic Transfer Plan (STP)
Total Initial
Investment
Amount
Monthly STP
Amount (Rs.)
STP Period
No of
Installments
Total Amount
Transferred
Current Value Returns (%)
500,000 10000 5 Years 60 600,000 22,491 9.21
Note - Internal Comparison
Monthly STP
Amount
(Rs.)
STP Period No of Installments
Total Amount
Invested
Current Value Returns (%)
10000 5 Years 60 600,000 1,045,099 17.22
Total
Investment
Amount
Total Current
Value
Total Returns (%)
No. of
installments
500,000 1,067,590 13.97 60

36. Life Insurance
 Why to buy Life insurance
- Financial Dependants
- Liability
 Term Plan
- Benefits
- Premium Cost for Rs. 1 Crore of Sum Assured
Age 25 35 45 50
Premium (pa) 9,285 17,575 31,192 37,657

37. Traditional Plan vs Term Plan + Debt Mutual Funds
Particulars Endowment Plan Term Plan + Debt Mutual Fund
Monthly Payment Rs. 4200
400 (Term Insurance) + 3800
(remaining in investments)
Tenure 15 Years 15 Years
Total Insurance Payment Rs. 7,56,000 Rs. 72,000
Insurance Coverage Rs. 6,00,000 Rs. 25,00,000
Maturity Benefit Rs. 11,17,000 Rs. 14,03,267

38. ULIP vs Term Plan + Equity Mutual Funds
Particulars ULIP Term Plan + Equity Mutual Fund
Monthly Payment Rs. 4200
400 (Term Insurance) + 3800
(remaining in investments)
Tenure 15 Years 15 Years
Total Insurance Payment Rs. 7,56,000 Rs. 72,000
Insurance Coverage Rs. 6,00,000 Rs. 25,00,000
Maturity Benefit Rs. 16,69,000 Rs. 23,43,000

39. Medical Expenses
Sr. No Treatment 2007 Cost 2017 Cost Growth Rate (pa) After 20 years
1 Cataract ₹ 16,000.00 ₹ 24,000.00 8% ₹ 1,21,500
2 Angiography ₹ 14,000.00 ₹ 22,000.00 9% ₹ 1,34,153
3
Coronary Artery By pass Graft
(CAGB)
₹ 1,65,000.00 ₹ 2,35,000.00 7% ₹ 9,66,948
4 Appendectomy ₹ 28,000.00 ₹ 42,000.00 8% ₹ 2,12,625
5 Haemorrhoidectomy (Piles) ₹ 21,000.00 ₹ 35,000.00 11% ₹ 2,70,061
6
Cholecystectomy (Gall Bladder
removal)
₹ 32,000.00 ₹ 52,000.00 10% ₹ 3,62,590
7 Angioplasty (PTCA) with 2 stents ₹ 1,55,000.00 ₹ 2,45,000.00 10% ₹ 15,29,338

40. Health Insurance
 Healthcare is becoming increasingly expensive
 Immediate cash arrangement
 Liquidation of Funds
 Cashless treatments
 Income tax benefits u/s 80D

41. Financial Products available at BSE
• Equity
• Derivatives (Futures & Options)
• Currency Derivatives
• Commodity Derivatives
• Interest Rate Derivatives
• Debt (Corporate/Wholesale/Bonds)
• Mutual Funds/ETFs (BSE StAR MF Platform)
• BSE SME Platform
41

42. Investor Grievance Redressal Mechanism
• BSE provides Investor Grievance Redressal Mechanism for complaints
against Companies and Brokers/ Sub brokers.
• Currently IGRC & Arbitration facility is available in 24 cities across India.
• BSE provides IGRC, Arbitration as well as Appeal facility which is quasi
judicial dispute resolution mechanism
• Fast (Time bound)
• Award binding on parties
• For claim upto Rs. 10 lakhs, arbitration fee is Exempt for Investor
• Exchange sets aside award amount, if award is in favour of Investor
• Advance payment to investors for pending matters through IPF.
• Compensation from IPF in case of Broker becoming Defaulter upto
Rs. 15 Lakhs.
42

43. BSE Website : www.bseindia.com
• Most popular web site of the Capital Market
• Focal point for information dissemination
• Site provides information ranging from
• Trade information - Live prices & Volumes across all segments
• Corp. information- Quarterly Results & Shareholding Patterns of BSE listed companies
• Real time Corporate announcements
• BSE Plus - Personal Portfolio Management (Valuation)/Watch list etc.
• New Features are added on continuous basis so as to convert data into useful information
• Trade Verification facility available for Investors
• Website available on Mobile & Tabs as a Application
43

44. Happy Investing!

45. Thank You