logging in or signing up FinancialPlanning & MutualFunds chrisluke Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: Embed: Flash iPad Copy Does not support media & animations WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 70 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: August 21, 2012 This Presentation is Public Favorites: 0 Presentation Description Mutual funds are one of the smartest investment tools that help you to plan your finances & secure your future. Go through this PPT to know more about what is mutual fund? What are the types of mutual funds? & what are benefits of mutual funds? For more information visit - http://www.dspblackrock.com/ Comments Posting comment... Premium member Presentation Transcript PowerPoint Presentation: Financial Planning and Mutual FundsPowerPoint Presentation: Life is a roller coaster ride- full of ups and downs. We all know we have to save for many responsibilities life brings along with it. But no matter how much you save- It’s Never Enough! 2PowerPoint Presentation: Why Does One Need To Invest?PowerPoint Presentation: Why Invest? Retirement Daughter’s Marriage Children’s Education Buy House Buy Automobile Marriage Start Career AGE 25 28 30 35 40 50 60 4PowerPoint Presentation: Why Are Investment Decisions Difficult? • Selection of appropriate investments • What if I need the money before the targeted date? • What paper work is needed? • How often do I monitor these investments? • How do I ensure safety? • Who will inform me on the progress regularly? • What are the tax implications - Can I keep the return or will the tax-man keep it? • What if I lose the proof of investments? 5PowerPoint Presentation: What Investment Is Appropriate? • Debt: PPF, Post Office Scheme, Fixed Deposits, Debentures, Bonds, Income Funds, Liquid Funds • Equity: Individual Stocks, Growth Funds, Sectoral Funds • Banks: Bank Deposits Or a mix of the above! A good investment is one that helps you maximise your total returns, net of taxes and inflation over the time period you invest for! 6PowerPoint Presentation: When I was young, I used to think that money is everything in life Now that I’m old, I know it is. 7PowerPoint Presentation: Why financial planning?PowerPoint Presentation: Did You Know ? • If your current monthly expenses are Rs. 30,000/- per month, then after 20 years you will require Rs. 80,000/- a month to just maintain the same lifestyle! • An education degree for your child which currently costs Rs. 20 lakh could cost over Rs. 34 lakh after 11 years! At inflation of 5% 9PowerPoint Presentation: Individual Investor Needs: Investment Goals All individuals need to save for • Retirement • Child’s education / marriage • Medical emergency • Other family obligations Every individual has one or more of the above goals 10PowerPoint Presentation: Individual Investor: Life Stages Earnings (Consumption + Savings) Consumption Savings 22 27 40 60 Young Independent Young Married Middle Age Retirement All individuals have a finite period to save for their investment goals 11PowerPoint Presentation: Value Of Money Over Time Impact of inflation on monthly expenses of Rs. 30,000 today 79,599 62,368 38,288 30,000 Value of Rs. 100,000 over time 100,000 78,353 48,102 37,689 Today 5 years 15 years 20 years Today 5 years 15 years 20 years Investors need to beat inflation All figures in Rs.; At inflation of 5%; The above illustration above is merely indicative in nature and does not in any manner indicate the performance of any of the schemes of DSP BlackRock Mutual Fund. Please read the Scheme Information Document and Statement of Additional Information carefully before investing. 12PowerPoint Presentation: Performance Of Various Asset Classes Cumulative annualised returns: 1982 to 2011 8.96% 6.75% 2.08% 16.75% 9.37% WPI Inflation Bank FDs* BSE Sensex* Growth Real Growth Equities outperform other asset classes over the long term * Individual real growths for bank FD’s & BSE Sensex have been calculated for each year from 1982-2011. Post this calculation a CAGR has been calculated for the same. Hence the real growth of both Bank FD’s & Sensex is not equal to the growth minus the WPI Inflation. Source: IIFL, Internal; *1-3 year deposit rate; ^excluding dividends; data as at end FY2011 13PowerPoint Presentation: Individual Investors Are Scared Of … The Downside Risk in Equities The Risk of Market Volatility The Risk of Market Timing 14PowerPoint Presentation: What else makes a material impact on investments in equity?PowerPoint Presentation: Investing in the BSE Sensex Returns* are from Jan 1980- Mar 2011 17.39% 16.71% 16.00% Fixed investment at Fixed investment at lowest sensex value highest sensex value every year every year Fixed investment on 1 st day of every month Market timing does not matter over the long term Source: Internal; *XIRR, time period considered Jan 2, 1980 to Mar 31, 2011 16PowerPoint Presentation: The Power of Compounding Saving a small sum of money regularly in equity mutual funds can make your money work with greater power and can have a significant impact on wealth accumulation. BSE Sensex BSE Sensex Scenario A Scenario B Number of years 15 20 Monthly investment Rs 5000 Rs 5000 Total investment Rs 9 lakh Rs 12 lakh Assumed annualised return 18% 18% Final corpus Rs. 45.96 lakh Rs. 1.17 crore The above illustration is merely indicative in nature and does not in any manner indicate the performance of any of the schemes of DSP BlackRock Mutual Fund. Please read the Scheme Information Document and Statement of Additional Information carefully before investing. Even a seemingly small 5 year delay can cost you the ‘CROREPATI’ tag Time Period of 25 years; Hypothetical numbers meant only for illustration purpose 17PowerPoint Presentation: Summary Investors needs to save regularly and invest those savings in higher return assets to create wealth Long Term Systematic Monthly Investment In equity schemes is ideal for this ! 18PowerPoint Presentation: How Do You Achieve Your Financial Goals?PowerPoint Presentation: Retirement Planning Monthly Household Expenses Rs 30,000 Inflation 5% 21 Yrs Today Corpus required per month Rs 83,579 Retirement corpus required to meet post retirement expenses (if invested at 7%) : Rs 1.4 cr Monthly investment needed to achieve this corpus in 21 years at 12% Rs 12,583 at 15% Rs 8,083 at 18% Rs 5,090 At the time of retirement The above illustration is merely indicative in nature and does not in any manner indicate the performance of any of the schemes of DSP BlackRock Mutual Fund. Please read the Scheme Information Document and Statement of Additional Information carefully before investing. 20PowerPoint Presentation: Retirement Planning Educational Degree for Child Corpus required Rs 34,20,000 Rs 20,00,000 Inflation 5% Monthly investment needed to achieve this corpus in 11 years 11 Yrs at 12% Rs 12,456 at 15% Rs 10,166 at 18% Rs 8,237 Present When your Child actually goes for this degree The above illustration is merely indicative in nature and does not in any manner indicate the performance of any of the schemes of DSP BlackRock Mutual Fund. Please read the Scheme Information Document and Statement of Additional Information carefully before investing. 21PowerPoint Presentation: Retirement Planning Child’s Marriage Corpus required Rs 43,70,000 Rs 20,00,000 Inflation 5% Monthly investment needed to achieve this corpus in 16 years 16 Yrs at 12% Rs 7,509 at 15% Rs 5,466 at 18% Rs 3,925 Present When your Child actually gets married The above illustration is merely indicative in nature and does not in any manner indicate the performance of any of the schemes of DSP BlackRock Mutual Fund. Please read the Scheme Information Document and Statement of Additional Information carefully before investing. 22PowerPoint Presentation: Introduction to Mutual FundsPowerPoint Presentation: What Is A Mutual Fund? • A pool of money, collected from investors, invested according to certain investment objectives • Ownership in hands of investors who’ve pooled in their funds. • Managed by a team of investment professionals • The pool of funds invested in portfolio of marketable investments. • Investors share denominated by ‘Units’ that have a Net Asset Value ( NAV ) which changes everyday • The portfolio is created according to stated investment objectives • Investors make money through Capital appreciation and Income distribution 24PowerPoint Presentation: What Are The Advantages Of Mutual Funds? • Portfolio diversification • Professional Management • Reduction in Risk • Service • Affordability • Reduction in Transaction costs • Liquidity • Convenience and Flexibility • Tax Efficiency 25PowerPoint Presentation: Three Basic Types Mutual funds come in three basic types • Equity or stock funds • Bond or income funds and • Money market or cash funds. 26PowerPoint Presentation: Other Classifications • Growth/ Value/ Income Options- Growth / Dividend /Reinvestment • Sectoral Funds • Specialty Funds • Offshore Funds • Open ended/ Close ended • Diversified Equity • ELSS Funds • Index Funds • Hybrid/ Balanced Funds 27PowerPoint Presentation: How To Choose The Right Scheme? • Determine your financial goals and your time horizon • Determine your tolerance for risk • Study the objectives of the funds available and match them with your need 28PowerPoint Presentation: Fund Suitability - Risk Versus Return Sector Diversified Returns Balanced Income Liquid Risk 29PowerPoint Presentation: March is a particularly risky month to invest in the stock market, the others are…. July, February, January, April, September, August, May, June, December, October & November. 30PowerPoint Presentation: When they say time is money, they must mean Systematic Investment PlanningPowerPoint Presentation: Disclaimer This presentation shall not constitute any offer to sell or solicitation of an offer to buy units of any of the Schemes of the DSP BlackRock Mutual Fund . Mutual Fund investments are subject to market risks, read all scheme related documents carefully. 41 You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
FinancialPlanning & MutualFunds chrisluke Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: Embed: Flash iPad Copy Does not support media & animations WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 70 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: August 21, 2012 This Presentation is Public Favorites: 0 Presentation Description Mutual funds are one of the smartest investment tools that help you to plan your finances & secure your future. Go through this PPT to know more about what is mutual fund? What are the types of mutual funds? & what are benefits of mutual funds? For more information visit - http://www.dspblackrock.com/ Comments Posting comment... Premium member Presentation Transcript PowerPoint Presentation: Financial Planning and Mutual FundsPowerPoint Presentation: Life is a roller coaster ride- full of ups and downs. We all know we have to save for many responsibilities life brings along with it. But no matter how much you save- It’s Never Enough! 2PowerPoint Presentation: Why Does One Need To Invest?PowerPoint Presentation: Why Invest? Retirement Daughter’s Marriage Children’s Education Buy House Buy Automobile Marriage Start Career AGE 25 28 30 35 40 50 60 4PowerPoint Presentation: Why Are Investment Decisions Difficult? • Selection of appropriate investments • What if I need the money before the targeted date? • What paper work is needed? • How often do I monitor these investments? • How do I ensure safety? • Who will inform me on the progress regularly? • What are the tax implications - Can I keep the return or will the tax-man keep it? • What if I lose the proof of investments? 5PowerPoint Presentation: What Investment Is Appropriate? • Debt: PPF, Post Office Scheme, Fixed Deposits, Debentures, Bonds, Income Funds, Liquid Funds • Equity: Individual Stocks, Growth Funds, Sectoral Funds • Banks: Bank Deposits Or a mix of the above! A good investment is one that helps you maximise your total returns, net of taxes and inflation over the time period you invest for! 6PowerPoint Presentation: When I was young, I used to think that money is everything in life Now that I’m old, I know it is. 7PowerPoint Presentation: Why financial planning?PowerPoint Presentation: Did You Know ? • If your current monthly expenses are Rs. 30,000/- per month, then after 20 years you will require Rs. 80,000/- a month to just maintain the same lifestyle! • An education degree for your child which currently costs Rs. 20 lakh could cost over Rs. 34 lakh after 11 years! At inflation of 5% 9PowerPoint Presentation: Individual Investor Needs: Investment Goals All individuals need to save for • Retirement • Child’s education / marriage • Medical emergency • Other family obligations Every individual has one or more of the above goals 10PowerPoint Presentation: Individual Investor: Life Stages Earnings (Consumption + Savings) Consumption Savings 22 27 40 60 Young Independent Young Married Middle Age Retirement All individuals have a finite period to save for their investment goals 11PowerPoint Presentation: Value Of Money Over Time Impact of inflation on monthly expenses of Rs. 30,000 today 79,599 62,368 38,288 30,000 Value of Rs. 100,000 over time 100,000 78,353 48,102 37,689 Today 5 years 15 years 20 years Today 5 years 15 years 20 years Investors need to beat inflation All figures in Rs.; At inflation of 5%; The above illustration above is merely indicative in nature and does not in any manner indicate the performance of any of the schemes of DSP BlackRock Mutual Fund. Please read the Scheme Information Document and Statement of Additional Information carefully before investing. 12PowerPoint Presentation: Performance Of Various Asset Classes Cumulative annualised returns: 1982 to 2011 8.96% 6.75% 2.08% 16.75% 9.37% WPI Inflation Bank FDs* BSE Sensex* Growth Real Growth Equities outperform other asset classes over the long term * Individual real growths for bank FD’s & BSE Sensex have been calculated for each year from 1982-2011. Post this calculation a CAGR has been calculated for the same. Hence the real growth of both Bank FD’s & Sensex is not equal to the growth minus the WPI Inflation. Source: IIFL, Internal; *1-3 year deposit rate; ^excluding dividends; data as at end FY2011 13PowerPoint Presentation: Individual Investors Are Scared Of … The Downside Risk in Equities The Risk of Market Volatility The Risk of Market Timing 14PowerPoint Presentation: What else makes a material impact on investments in equity?PowerPoint Presentation: Investing in the BSE Sensex Returns* are from Jan 1980- Mar 2011 17.39% 16.71% 16.00% Fixed investment at Fixed investment at lowest sensex value highest sensex value every year every year Fixed investment on 1 st day of every month Market timing does not matter over the long term Source: Internal; *XIRR, time period considered Jan 2, 1980 to Mar 31, 2011 16PowerPoint Presentation: The Power of Compounding Saving a small sum of money regularly in equity mutual funds can make your money work with greater power and can have a significant impact on wealth accumulation. BSE Sensex BSE Sensex Scenario A Scenario B Number of years 15 20 Monthly investment Rs 5000 Rs 5000 Total investment Rs 9 lakh Rs 12 lakh Assumed annualised return 18% 18% Final corpus Rs. 45.96 lakh Rs. 1.17 crore The above illustration is merely indicative in nature and does not in any manner indicate the performance of any of the schemes of DSP BlackRock Mutual Fund. Please read the Scheme Information Document and Statement of Additional Information carefully before investing. Even a seemingly small 5 year delay can cost you the ‘CROREPATI’ tag Time Period of 25 years; Hypothetical numbers meant only for illustration purpose 17PowerPoint Presentation: Summary Investors needs to save regularly and invest those savings in higher return assets to create wealth Long Term Systematic Monthly Investment In equity schemes is ideal for this ! 18PowerPoint Presentation: How Do You Achieve Your Financial Goals?PowerPoint Presentation: Retirement Planning Monthly Household Expenses Rs 30,000 Inflation 5% 21 Yrs Today Corpus required per month Rs 83,579 Retirement corpus required to meet post retirement expenses (if invested at 7%) : Rs 1.4 cr Monthly investment needed to achieve this corpus in 21 years at 12% Rs 12,583 at 15% Rs 8,083 at 18% Rs 5,090 At the time of retirement The above illustration is merely indicative in nature and does not in any manner indicate the performance of any of the schemes of DSP BlackRock Mutual Fund. Please read the Scheme Information Document and Statement of Additional Information carefully before investing. 20PowerPoint Presentation: Retirement Planning Educational Degree for Child Corpus required Rs 34,20,000 Rs 20,00,000 Inflation 5% Monthly investment needed to achieve this corpus in 11 years 11 Yrs at 12% Rs 12,456 at 15% Rs 10,166 at 18% Rs 8,237 Present When your Child actually goes for this degree The above illustration is merely indicative in nature and does not in any manner indicate the performance of any of the schemes of DSP BlackRock Mutual Fund. Please read the Scheme Information Document and Statement of Additional Information carefully before investing. 21PowerPoint Presentation: Retirement Planning Child’s Marriage Corpus required Rs 43,70,000 Rs 20,00,000 Inflation 5% Monthly investment needed to achieve this corpus in 16 years 16 Yrs at 12% Rs 7,509 at 15% Rs 5,466 at 18% Rs 3,925 Present When your Child actually gets married The above illustration is merely indicative in nature and does not in any manner indicate the performance of any of the schemes of DSP BlackRock Mutual Fund. Please read the Scheme Information Document and Statement of Additional Information carefully before investing. 22PowerPoint Presentation: Introduction to Mutual FundsPowerPoint Presentation: What Is A Mutual Fund? • A pool of money, collected from investors, invested according to certain investment objectives • Ownership in hands of investors who’ve pooled in their funds. • Managed by a team of investment professionals • The pool of funds invested in portfolio of marketable investments. • Investors share denominated by ‘Units’ that have a Net Asset Value ( NAV ) which changes everyday • The portfolio is created according to stated investment objectives • Investors make money through Capital appreciation and Income distribution 24PowerPoint Presentation: What Are The Advantages Of Mutual Funds? • Portfolio diversification • Professional Management • Reduction in Risk • Service • Affordability • Reduction in Transaction costs • Liquidity • Convenience and Flexibility • Tax Efficiency 25PowerPoint Presentation: Three Basic Types Mutual funds come in three basic types • Equity or stock funds • Bond or income funds and • Money market or cash funds. 26PowerPoint Presentation: Other Classifications • Growth/ Value/ Income Options- Growth / Dividend /Reinvestment • Sectoral Funds • Specialty Funds • Offshore Funds • Open ended/ Close ended • Diversified Equity • ELSS Funds • Index Funds • Hybrid/ Balanced Funds 27PowerPoint Presentation: How To Choose The Right Scheme? • Determine your financial goals and your time horizon • Determine your tolerance for risk • Study the objectives of the funds available and match them with your need 28PowerPoint Presentation: Fund Suitability - Risk Versus Return Sector Diversified Returns Balanced Income Liquid Risk 29PowerPoint Presentation: March is a particularly risky month to invest in the stock market, the others are…. July, February, January, April, September, August, May, June, December, October & November. 30PowerPoint Presentation: When they say time is money, they must mean Systematic Investment PlanningPowerPoint Presentation: Disclaimer This presentation shall not constitute any offer to sell or solicitation of an offer to buy units of any of the Schemes of the DSP BlackRock Mutual Fund . Mutual Fund investments are subject to market risks, read all scheme related documents carefully. 41