Академический Документы
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(SIP)
1
Human Life Cycle
Child’s Marriage
Child’s Education
Housing
Child birth
Marriage
2
Phase II: The Most Challenging Phase
3
It is Critical, Yet Most Don’t Do It
The alternatives
The paper work is
are not exciting
just too tedious
enough
4
Getting rich is simpler than you
think !!
Rs.1000 invested every month for 30 years
Value of investment (Rs.)
8000000
7000000
Rs.70 lakhs
6000000
5000000
6% p.a.
4000000
10% p.a.
3000000
15% p.a.
2000000
1000000
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 Rs.22 lakhs
No. of years
Rs.10 lakhs
6
Start Early!
You Your Twin
• Age : 25 years • Age : 25 years
• Start : Today • Start : at age 40
• Invest : 5 years • Invest : 20 years
• Amount : Rs 10,000 p.a. • Amount : Rs 10,000 p.a.
• Redemption on • Redemption on
retirement (age 60) retirement (age 60)
Value of Investments
11.72
You Your Twin
(Rs. in Lacs)
6.3
25 30 40 50 60
Age (in yrs)
Rs. 1000 invested p.m. @ 10% p.a. till the age of 60 yrs
3,500,000
3,000,000
8
Invest Regularly
9
Invest Regularly
11
Create Wealth 2+2 > 5
12
Systematic Investing
13
The Million Dollar Question
14
Risk Return Spectrum
High
Equity
Real Estate
Gold
Return potential
Debt Funds
PPF, NSC, KVP, PO Deposits, RBI Bonds
Liquid Funds
Savings Bank/ FD
Low
Equities have outperformed all other asset classes in the long run -
globally as well as in India
18.25%
10.64% 10.27%
7.47% 7.12%
16
Equities outperform in long term
100%
18
Benefits of long term investing
109
121
13
25
85
37
49
61
73
97
1
19
Outperformance
20
BMF vs Benchmark
21
Mutual Funds: The easy way to invest
• Professional Management
– Ensures that the best brains are managing your money
• Diversification
– Ensures risk reduction
• Liquidity
– Ensures that you get back your money, whenever you want
• Transparent
– Ensures you are apprised of the portfolio regularly
• Extremely well regulated
– Ensures that the fund follows laid down processes
• Tax efficient
– Tax free dividends, LTCG on equity completely tax free, Sec 80C
22
Birla Sun Life
23
Start an SIP today
and
24
Asset Allocation
Savings Account ??
Fixed Deposit ??
26
Did You Know
• Returns
– Current Savings Bank interest rate is 3.5% p.a.
– Current FD returns for a 7-15 day FD is 3.5%-3.75% p.a.
• Savings bank interest- calculated on the min of the
balances in the account between the 10th and 31st
– Effective interest rate turns out to be MUCH lower !!
• Taxation
– Interest Income is taxable at the Maximum Marginal Tax Rate
• 30% (+ surch. & edu. cess) for assesses in the highest tax slab
– Sec 80L deduction no longer available
..\savingsbank_effectiverateofreturn.xls
27
Birla Cash Plus*- A superior alternative
• Taxation
Particulars Savings 30days BCP- Div
Account FD Reinv
Annual Appreciation(Assumed) 3.50% 4.00% 4.50%
Appreciationfor 30days 0.29% 0.33% 0.37%
Tax Rate 33.66% 33.66% 14.025%
Tax 0.10% 0.11% 0.05%
Post Tax Returnsfor 30 days 0.19% 0.22% 0.32%
Effective Pre-Tax Returnfor 30days 0.29% 0.33% 0.49%
Effective Pre-Tax Return(Annualised) 3.50% 4.00% 5.95%
assumedassesse's GTI is >Rs. 10lacs
* select locations 28
Readicheque*
30
Thank
You
31