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    Wealth Creation: - Fire Bolt Investments

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    krish3291
    https://zerodha.com/open-account?c=ZMPJHR This presentation helps you understand better on how the investment should be , returns on various investment opportunities

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    Wealth Creation: - Fire Bolt Investments

    Uploaded by

    krish3291
    39 views22 pages
    https://zerodha.com/open-account?c=ZMPJHR This presentation helps you understand better on how the investment should be , returns on various investment opportunities

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    Wealth Creation

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    https://zerodha.com/open-account?c=ZMPJHR This presentation helps you understand better on how the investment should be , returns on various investment opportunities

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    Download as pdf or txt
    39 views22 pages

    Wealth Creation: - Fire Bolt Investments

    Uploaded by

    krish3291
    https://zerodha.com/open-account?c=ZMPJHR This presentation helps you understand better on how the investment should be , returns on various investment opportunities

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    © All Rights Reserved
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    WEALTH CREATION

    - Fire bolt investments


    TYPICAL INVESTMENT AND SPEND LIFE CYCLE

    Retirement
    Children
    Marriage
    Children
    Education
    Car
    House
    Children
    Marriage
    SAVINGS

    Money saved from regular income after accounting for all expenditure

    Income Expenses Savings

    However, due to the effect of inflation the value of savings keeps decreasing!
    INVESTMENT

    In most cases the amount saved is to meet future needs of self and family.
    It is important to make their savings work for them.
    When savings start generating income, they become Investments!
    Savings need to generate the maximum possible returns within the constraint of their
    risk appetite and time horizon to be able to meet not only their needs, but wants and
    desires too.
    Hence the need to INVEST!
    INVESTMENT MENU CARD
    Investment Tax Benefit Return Duration
    PPF Yes 7.8% Long Term
    NSC Yes 7.5-7.8% Long Term
    FDs Bank & Post Yes ( 5 years deposit) 6.25% Long Term
    Office
    Mutual Funds Yes Market Linked Long Term & Short
    Term
    ULIP Yes Market Linked Long Term
    NPS Yes Market Linked Long Term
    Direct Equity Yes Market Linked Long Term
    Gold No Market Linked Long Term & Short
    Term
    Real Estate Yes Market Linked Long Term
    COST OF MONEY LYING IDLE IN BANK

    Money in Savings Account 4,00,000


    Interest earned in 1 year (4% pa) 4,16,241
    Compounded Quarterly

    Tax on Interest (10%) 624


    Impact of Inflation (4.75% pa) 19,000

    Value at the end of year 3,96,617

    OOPS!!! My
    Savings
    WHAT IS INFLATION???

    Product 1991 2001 2017 CAGR


    Coconut Oil (1 litre) 45 74 320 9.6%
    Black Gram (Urd) 1kg NA 27 110 9.2%
    Rice
    Paste
    Soap
    Atta
    Gingelly oil

    If we consider actual average inflation is 9%... Our 4lac savings is equivalent


    to Rs.378617
    AVERAGE HOUSE HOLD EXPENSES

    Reference Period
    April 2015 March
    2016

    http://www.livemint.com/Consumer/O0I6Mgk5
    VqBsrprjtDslOO/How-India-spends.html
    INFLATION DATA

    Year Inflation Year Inflation Year Inflation

    2017 4.75 % 2008 9.7 % 1999 0.47 %


    2016 2.23 % 2007 5.51 % 1998 15.32 %
    2015 6.32 % 2006 6.53 % 1997 6.23 %
    2014 5.86 % 2005 5.57 % 1996 10.41 %
    2013 9.13 % 2004 3.78 % 1995 9.69 %
    2012 11.17 % 2003 3.72 % 1994 9.47 %
    2011 6.49 % 2002 3.2 % 1993 8.64 %
    2010 9.47 % 2001 5.16 % 1992 8%
    2009 14.97 % 2000 3.48 % 1991 13.07 %
    Average Inflation Rate : 7.6% http://www.inflation.eu/inflation-rates/india/historic-inflation/cpi-inflation-india.aspx
    GROWTH OF VARIOUS INVESTMENTS

    Product Price in 1991 Price in 2001 Price in 2017 CAGR


    GOLD 3,466 4,300 30,260 8.7%
    Silver 7,332 7,447 35,666 6.27%
    Sensex 1,000 4,100 32,300 14.3%
    INFLATION VS FIXED DEPOSITS

    Inflation (WPI) vs FD
    18

    16

    14

    12

    10

    Inflation (WPI) FD rate


    SENSEX VS GOLD

    SENSEX Vs GOLD
    35000
    GOLD SENSEX
    30000
    Making Charges -6 to -18% X
    25000 Wastage @ Buy -10% X

    20000
    Wastage @ Sell -10% X

    Brokerage @ Buy X -0.5%


    15000
    Brokerage @ Sell X -0.5%
    10000
    Dividend X +2%
    5000

    0
    Considering these
    factors which is the
    Sensex Gold (10grams)
    best investment???
    CONFUSED???

    Do we need to invest only in share market?


    Here is the answer.
    We dont recommend you invest your entire portion of your savings in share market.
    Diversify Your Savings [ Real Estate, Gold, Deposits, PPF etc.,]
    Based on age, return on investment, risk you can choose your investment portfolio
    INVESTMENT OPTIONS

    Specific company shares - Equity

    Mutual funds
    HOW MUTUAL FUND WORKS???
    ADVANTAGES OF MUTUAL FUNDS

    Professional Management
    Diversification
    Convenient Administration
    Return potential
    Low cost
    Liquidity
    Transparency
    Flexibility
    Choice of schemes
    Well regulated
    Tax benefits
    INVESTMENT IN MUTUAL FUNDS THROUGH
    SIP

    SIP Systematic Investment Planning it is a method of investing a fixed sum, at a regular interval, in a mutual fund.
    It is very similar to monthly saving schemes like a recurring monthly deposit / post office deposit

    Advantages of Systematic Investment Planning


    Encourages Regular Investments (just like recurring deposit schemes)
    A Convenient way to invest regularly Lower initial investment without cutting into regular expense
    Long term perspective
    Rupee Cost Averaging Benefit to counter volatility - it brings down the average cost of your Investments
    No timing the market!!!
    Meet investment objective with investment needs
    Helps to match the risk / return profile
    PAST PERFORMANCE AND PROJECTION

    Do you
    want to
    know how
    much
    wealth you
    would have
    created in
    25years?
    With this
    CAGR???

    Lets see
    DO YOU WANNA KNOW THE MAGIC FORMULA???

    Clue is its our middle level school formula

    Guess???

    Yes its our compound interest formula Hope you remember the formula

    The investment is similar to it


    t is the magic factor See t is the
    position of power
    Thats the power of compounding Compound interest is the eighth
    wonder of the world. He who
    understands it, earns it... he who
    doesn't ... pays it
    INVESTING IN EQUITY

    We all Heard of some stories


    If anyone would have bought the shares of Eicher Motors instead of a Royal Enfield
    bike in 2001, is now worth 10crores
    Now he could have bought Rolls Royce
    Infy shares for Rs 9.5k in '93 now worth Rs 4 cr
    How an investment of Rs.10000 grew to Rs.535 Crores in 34 years
    Can You identify the company Yes it is WIPRO Yes its true
    OMG!!! Good Company Good
    Business, Good Returns
    on your investment
    STOCK MARKET SINCE 1900

    Same pattern
    for Indian
    market

    Huge Capital
    gains in long
    term
    perspective
    TAKE SMALL STEPS FOR A GOOD FUTURE

    Advantages of Zerodha:
    Zero brokerage on equity delivery
    0.01% or 20rs (which ever is less) flat brokerage on F&O, Intraday Equity, Commodity
    Choose 100s of direct mutual fund
    Tools and study materials
    To Open Account:
    https://zerodha.com/open-account?c=ZMPJHR
    For further details: write here https://fireboltinvestments.wordpress.com/contact/

    Thank You

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