MY CARE FINANCIAL PRODUCTS SUPPORT

FINANCIAL PRODUCTS SUPPORT

MY CARE
Health & Wealth
REG OFFICE: A-2/402, First Floor, Sector-8, Rohini, New Delhi 110085.
Registration No: 2013033853, Bank: Axis Bank, Sector7, Rohini, New Delhi 110085.

Current Account Name: My Care, Account No: 914020003802258, IFSC Code: UTIB0001813
WEBSITE: www.my-care.in Email: mycareindia@gmail.com & info@my-care.in

PHONES: +91 9810986644, +919582233598

TOPICS OF DISCUSSION
Financial Products Support & its Importance
Inflation & its Effect in your Financial Condition

Financial Tools & Comparison

Power of Compounding & 1 Crore Plan
Equity (Not Risky in Long Term) & other Asset Classes
Mutual Funds & Systematic Investment Plan (SIP)

Health Insurance, Life Insurance & their Importance

Personal Financial Products Support Package by My Care
Benefits of Financial Products Support by My Care

Process of Financial Products Support by My Care

01

MY CARE

FINANCIAL PRODUCTS SUPPORT:

FINANCIAL PRODUCTS SUPPORT is the

process of establishing financial goals and creating a way to reach them. The financial goals can
include buying a house, saving for your childs education / marriage or planning for your
retirement or simply creating a wealth for your future. FINANCIAL PRODUCTS SUPPORT IS
IMPORTANT FOR GOAL ACHIEVEMENT ON RIGHT TIME

IMPORTANCE OF FINANCIAL PRODUCTS SUPPORT, REAL EXAMPLE (VALUES AS ON 30-09-2014)

8,000 PM
INVESTED

AMOUNT
INVESTED

WITHOUT
PLANNING @8 %

LAST 19 YEARS

18,24,000

41,49,231

LAST 12 YEARS

11,52,000

18,99,821

LAST 6 YEARS

5,76,000

7,34,408

WITH PRUDENT FINANCIAL

PRODUCTS SUPPORT
3,45,45,550 @ 26.65%
RELIANCE GROWTH FUND -GR

64,73,386 @ 26.46%
SUNDARAM SELECT MIDCAP FUND GR

15,31,240 @ 32.96%
RELIANCE PHARMA FUND GR

DIFFERENCE
3,03,6,319
45,73,565
7,96,832

FINANCIAL PRODUCTS SUPPORT IS IMPORTANT FOR GOAL ACHIEVEMENT ON RIGHT TIME

02

MY CARE

INFLATION:

Inflation is a rise in the general level of prices of goods and services in

an economy over a period of time. Example: Effect of Inflation (See Table Below):
S.NO

PRODUCT

IN 1985

IN 2012

GROWTH

IN 2022

IN 2032

TOOTHPASTE

50

9.81%

127

325

MILK (1 Lt.)

36

8.48%

81

183

SUGAR (1 Kg)

45

9.38%

110

270

PETROL (1Lt.)

73

8.53%

166

378

ELECTRICITY (1 Unit)

0.27

12.81%

23

78

PRIMARY CLASS FEE

30/Month

1,500

15.59%

6,387

27,195

MBA

10,000

7,00,000

17.04%

STONE SURGERY

1,000

80,000

17.62%

03

33,76,301 1,62,84,870
4,05,17

20,54,535
MY CARE

INFLATION: Example: Suppose cost of a product this year is 100 & inflation is 8%
then next year you need 108 to buy the same product. (100 + 100 X 8% = 108)
S.NO

YEAR

MONTHLY EXPENSES OF A MIDDLE CLASS FAMILY

1960

100 ( ONE HUNDRED ONLY)

1980

1,000 ( ONE THOUSAND)

2000

10,000 ( TEN THOUSAND)

2020

1,00,000 ( ONE LAKH)

NOTE: AVERAGE INFLATION: 12.20% PER YEAR IN LAST 50 YEARS

(INCLUDES BASIC INFLATION + LIFESTYLE INFLATION)
INFLATION IS THE CAUSE OF MONEY EROSION & NEEDS ATTENTION DURING FINANCIAL PRODUCTS SUPPORT
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MY CARE

GOAL ACHIEVEMENT

(COMPARISION OF INVESTMENT OPTIONS {8%

& 18%})

CASE STUDY: Mr. A OF 35 YEARS & HAS A CHILD OF 3 YEARS (IMPORTANCE OF FINANCIAL PRODUCTS SUPPORT)
GOAL

CHILD EDUCATION
(WHEN CHILD IS OF
17 YEARS)

CHILD MARRIAGE
(WHEN CHILD IS OF
25 YEARS)

RETIREMENT
MONTHLY EXPENSE
(AT 60 YEARS OF
AGE)

TOTAL

SIP
NEEDED

LUMPSUM
NEEDED

AT 8%

AT 8%

SIP
NEEDED

LUMPSUM
NEEDED

AT 18%

AT 18%

PRESENT
COST

FUTURE COST

TIME
TO SAVE
(YEARS)

10,00,000

29,37,194

14

9,693

10,00,000

4,399

2,89,457

15,00,000

81,54,811

22

11,751

15,00,000

3,008

2,13,801

25

28,238

37,72,049

5,738

4,12,212

49,681

62,72,049

13,144

9,15,471

20,000
(PER MONTH)

25,00,000

1,36,980 PM
(CORPUS REQD)

2,58,32,787
3,69,24,791

ASSUMPTION: INFLATION-8%, POST RETIREMENT INFLATION-7%, LIFE EXPECTANCY-80 YEARS.

FINANCIAL PRODUCTS SUPPORT IS IMPORTANT FOR GOAL ACHIEVEMENT ON RIGHT TIME

05

MY CARE

FINANCIAL TOOLS: INVESTMENT OPTIONS AVAILABLE

PPF
Bonds
NSC/KVP
Bank Fixed Deposits
Corporate Fixed Deposits
Life Insurance
Gold
Real Estate
Direct Equity
Mutual Funds

ANALYSE BEFORE INVESTING

S.NO.

PRODUCT FEATURE

YES/NO

BEATS INFLATION

TAX EFFICIENT

LIQUIDITY

FLEXIBILITY

COST (TIME & MONEY)

GOAL ACHIEVEMENT

EXAMPLE: 1,00,000 INVESTED IN BANK FIXED DEPOSIT @ 9% FOR 1 YEAR , INFLATION 7%

THE VALUE AFTER 1 YEAR 1,00,000- 7,000+ 9,000(TAXABLE) = 1,02,000. POST TAX RETURN
AFTER 1 YEAR = 1,02,000 - 2,700(TAX) = 99,300}. {BUT OUR NEED IS 1,07,000 + GROWTH}.
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MY CARE

FINANCIAL TOOLS: COMPARISION TABLE

ANNUAL
RETURNS

TIME
HORIZON

TAX FREE
RETURNS

LIQUIDITY

CAN BEAT
INFLATION

GOOD FOR GOAL

ACHIEVEMENT

8.6%

15 YEARS

YES

NIL

NO

NO

8-10%

8-12 YEARS

NO

NIL

NO

NO

NSC/KVP

8.6%

7-8 YEARS

YES

NIL

NO

NO

BANK FD

8-9%

VARIABLE

NO

NO

NO

NO

CORPORATE FD

9-12%

VARIABLE

NO

NO

NO

NO

LIFE INSURANCE

5-8%

10-20 YEARS

YES

LOW

NO

NO

GOLD

8-12%

VARIABLE

NO

YES

NO

NO

REAL ESTATE

APROXX15%

VARIABLE

NO

NO

MAY BE

NO

DIRECT EQUITY

APROXX 15%

VARIABLE

YES

LOW

MAY BE

NO

MUTUAL FUNDS

15-20%

5-8 YEARS

YES

FULL

YES

YES

FINANCIAL TOOL

PPF
BONDS

07

MY CARE

IMPACT OF CHOOSING THE RIGHT INVESTMENT PRODUCT: SEE TABLE

EXAMPLE: 8,000 PM

10 YEARS

15 YEARS

20 YEARS

25 YEARS

AMOUNT INVESTED @ 0%

15,00,000

22,50,000

30,00,000

37,50,000

LIFE INSURANCE @ 6%

20,40,804

36,03,856

56,95,572

84,94,760

PPF/GPF @ 8%PA

22,66,040

42,47,231

71,58,250

1,14,35,493

ELSS @ 18% PA

38,63,501

1,13,00,871 2,40,84,428

5,62,74,455

GAP BETWEEN 8% & 18%

15,97,461

70,53,640

5,51,30,912

1,57,82,635

1. CHOICE OF THE INVESTMENT PRODUCT HAS A DEEP IMPACT ON YOUR FINANCIAL

CONDITION BECAUSE OF GROWTH RATE & EFFECT OF COMPOUNDING.
2. SO, BE CAREFUL & THINK AGAIN BEFORE YOU INVEST YOUR HARD EARNED MONEY.

3. INVESTMENT IS THE ONLY WAY IN THIS WORLD, WHERE YOU GET THE MONEY
WITHOUT WORKING.
FINANCIAL PRODUCTS SUPPORT IS IMPORTANT FOR GOAL ACHIEVEMENT ON RIGHT TIME
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MY CARE

START EARLY :

SEE TABLE TO SEE BENEFIT OF STARTING EARLY

FEATURE

(@15%CAGR)

RAM

SHYAM

INVESTMENT STARTING AGE

25 YEARS

40 YEARS

INVESTMENT-MONTHLY SIP

5,000

15,000

SAVING YEARS TILL AGE 60

35 YEARS

20 YEARS

TOTAL INVESTMENT MADE

21,00,000

36,00,000

5.70 Cr

1.99 Cr

WEALTH CREATION

DELAY COST: EXAMPLE: RAM INVESTED 5,000 FOR 35 YEARS IN SIP (@15%CAGR)
INVESTMENT

FINAL AMOUNT

LOSS (DELAY COST)

STARTED ON TIME (NO DELAY)

5,70,74,220

ONE MONTH DELAY IN STARTING

5,64,08,342

6,65,878

SIX MONTHS DELAY IN STARTING

5,31,92,840

38,81,380

ONE YEAR DELAY IN STARTING

4,95,73,434

75,00,786

09

MY CARE

THE POWER OF COMPOUNDING: (8

ONE TIME INVESTMENT @18%CAGR

TH

1 CRORE PLAN
SIP PER MONTH @18%CAGR

WONDER OF THE WORLD)

INVESTMENT

TIME PERIOD

FINAL AMOUNT

AMOUNT

TIME PERIOD

FINAL AMOUNT

20,000

37.5 YEARS

1,00,87,730

500

35 YEARS

1,00,99,910

50,000

32.1 YEARS

1,01,48,046

1,000

31 YEARS

1,12,11,824

70,000

30 YEARS

1,00,35,945

5,000

21 YEARS

1,00,41,260

1,00,000

27.9 YEARS

1,01,27,634

25,000

11.5 YEARS

1,04,18,850

2,00,000

23.7 YEARS

1,01,07,263

50,000

9 YEARS

1,14,51,512

5,00,000

18.1 YEARS

1,00,00,791

1,00,000

6 YEARS

1,13,30,361

1.

YEARS OF DOUBLING THE INITIAL AMOUNT = 72/RATE OF INTEREST, SO IF RATE OF RETURN IS 18%
THEN DOUBLING TIME IS 72/18 = 4 YEARS.

2.

SO 1 LAKH WILL BECOME 2 LAKHS IN 4 YEARS (@ 18 % RATE OF RETURN PER ANNUM), 4 LAKHS
IN 8 YEARS, 8 LAKHS IN 12 YEARS, 16 LAKHS IN 16 YEARS, 32 LAKHS IN 20 YEARS, 64 LAKHS IN 24
YEARS , 1.28 CRORE IN 28 YEARS & 2.56 CRORES IN 32 YEARS.

3.

DID YOU KNOW THAT 1 DOUBLED BY 30 TIMES BECOMES 100 CRORES.

10

MY CARE

EQUITY: WHAT IS EQUITY?

Equity is BUYING BUSINESSES or INVESTING IN A BUSINESS.
Equity is OWNERSHIP OF BUSINESS.
Equities are nothing but SLAVES OF EARNINGS (Consumption Theory)
10 yr deposit of the companies offering 8% PA...is it a good investment?
Geniuses like Aditya Puri, Ratan Tata, Sunil Mittal are managing the
companies.
They are borrowing at 8% because they are confident of earning 15% pa
over 10 years. (POWER OF EQUITY To deliver returns above the Inflation)
Why not partner them in this growth, instead of lending to them.
If we trust they will repay debt, then why doubt their ability to make profits.
HOW EQUITY DELIVERS RETURNS
INCREASED CONSUMPTION (FMCG, CARS, SHOPPING) BOOSTING BUSINESS OF RELATED COMPANIES
(PIZZA HUT, MARUTI, BSES, ITC) COMPANIES MAKE PROFIT THEIR VALUATION INCREASES OVER
TIME YOU ALSO EARN IN PROPORTION IF YOU PARTICIPATE IN THEIR BUSINESS (EQUITY/OWNERSHIP)
11

12

MY CARE

HOW EQUITY DELIVERS RETURNS: BASIC CONCEPT

2
3

CONSUMPTION (USE OF PRODUCT & SERVICES BY PUBLIC)

EXAMPLE: TEA, PIZZA, BRANDED GARMENTS, LAPTOPS, SMARTPHONES, CARS, FUEL ETC .

PROFIT EARNED BY THE RELATED COMPANIES (ITC, SAMSUNG, HP, MARUTI SUZUKI)
VALUATION OF COMPANIES INCREASE OVER TIME (INCREASE IN SHARE PRICES)

MUTUAL FUND SELECTS THE BEST COMPANIES TO INVEST - EQUITY (PORTFOLIO)

PROFESSIONAL MANAGEMENT BY FUND MANAGER - GENERATE RETURNS FOR US

INCREASE IN CONSUMPTION

PROFIT IN COMPANIES
12

RETURNS IN MUTUAL FUNDS

MY CARE

INDIAN CONSUMERS: COMPARISION WITH WORLDS POPULATION

INCREASED CONSUMPTION INCREASED PROFIT OF COMPANIES (ARE YOU PARTICIPATING IN THEIR GROWTH? EQUITY)
13
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INDIAN ECONOMY: GROWTH STORY SO FAR IN LAST 60 YEARS SUSTAINED GROWTH

SOURCE: MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION, ANNUAL REPORT 2010-2011

GROSS DOMESTIC PRODUCT(GDP) is the market value of all officially recognized final goods
and services produced within a country in a given period of time. Major contributors to GDP
are Agriculture, Industry & Service Sector.

GDP = C(Private Consumption)+I(Gross Investments)+G(Government Spending)+{X(Exports)-M(Imports)}

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INDIAN ECONOMY DEMOGRAPHICS & RISING AFFORDABILITY

15

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WHO ARE THE WEALTHIEST PEOPLE ON EARTH?

William Gates III Jr.

Warren Buffett
Lakshmi Mittal
Sam Waltons family (owner of Wal Mart Stores)

CLOSER HOME
The Ambanis
Azim Premji
The infocians
Rakesh Jhunjhunwala

YOU ????????

THE SECRET OF THEIR WEALTH

EQUITY

THEY ARE RICH BECAUSE THEY

UNDERSTOOD THE POWER OF EQUITY

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MY CARE

BEST WAY TO INVEST IN EQUITY:

MUTUAL FUNDS
Potentially High Returns
Professional Management
Diversification

Liquidity

MOST TRANSPARENT

Flexibility

ZERO ENTRY LOAD

Well Regulated
Tax Free Returns
17

MY CARE

MUTUAL FUNDS: HOW MUTUAL FUND WORKS?

18

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EQUITY- NOT RISKY OVER LONG TERM: SENSEX OBSERVATIONS

Sensex Earnings Chart

NOTE: PROBABILITY OF LOSS IS JUST 4.17% IN 10 YEARS PERIOD & NIL IN PERIOD OF MORE THAN 10 YEARS
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MY CARE

EQUITY- NOT RISKY OVER LONG TERM: MUTUAL FUNDS OBSERVATIONS

NOTE: PROBABILITY OF LOSS IN EQUITY MUTUAL FUNDS IS NIL IN PERIOD OF MORE THAN 5 YEARS.
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MY CARE

COST OF SECURITY: COMPARISION OF PPF (NON RISKY) & ELSS (RISKY) IN LAST 17 YEARS
PPF

ELSS (HDFC TAXSAVER- GROWTH)

DATES

INVESTMENT AMOUNT

INTEREST RATE

FUND VALUE

DATES

INVESTMENT
AMOUNT

NAV

FUND VALUE

29-3-1996

1,00,000

12.00%

1,00,000

29-3-1996

1,00,000

10

1,00,000

31-3-1997

1,00,000

12.00%

2,12,000

31-3-1997

1,00,000

9.04

1,90,400

31-3-1998

1,00,000

12.00%

3,37,440

31-3-1998

1,00,000

12.40

3,61,168

31-3-1999

1,00,000

12.00%

4,77,930

31-3-1999

1,00,000

19.85

6,78,160

31-3-2000

1,00,000

11.00%

6,30,510

31-3-2000

1,00,000

41.56

15,19,866

30-3-2001

1,00,000

9.50%

7,90,400

30-3-2001

1,00,000

15.72

12,61,505

28-3-2002

1,00,000

9.00%

9,61,540

28-3-2002

1,00,000

19.86

16,93,734

31-3-2003

1,00,000

8.00%

11,38,461

31-3-2003

1,00,000

18.64

16,89,688

31-3-2004

1,00,000

8.00%

13,29,540

31-3-2004

1,00,000

40.12

37,37,090

31-3-2005

1,00,000

8.00%

15,35,900

31-3-2005

1,00,000

67.56

63,92,223

31-3-2006

1,00,000

8.00%

17,58,780

31-3-2006

1,00,000

131.22

1,25,16,466

30-3-2007

1,00,000

8.00%

19,99,480

30-3-2007

1,00,000

133.88

1,28,70,090

31-3-2008

1,00,000

8.00%

22,59,440

31-3-2008

1,00,000

152.02

1,47,13,698

31-3-2009

1,00,000

8.00%

25,40,199

31-3-2009

1,00,000

97.06

94,94,524

31-3-2010

1,00,000

8.00%

28,43,410

31-3-2010

1,00,000

205.68

2,02,19,143

31-3-2011

1,00,000

8.00%

31,70,888

31-3-2011

1,00,000

232.90

2,29,95,086

30-3-2012

1,00,000

8.60%

35,43,584

30-3-2012

1,00,000

223.70

2,21,86,735

30-3-2013

1,00,000

8.80%

39,55,408

30-3-2013

1,00,000

225.53

3,09,43,066

30-3-2014

1,00,000

8.60%

43.99,528

30-3-2014

1,00,000

276.79

3,81,10,274

02 07-2014

19,00,000

02 07-2014

19,00,000

44,92,246

21

4,97,04,282
MY CARE

223.7

232.9

97.06
67.56
40.12

18.64

19.86

15.72

12.4

9.04

50

19.85

100

41.56

BURST OF IT
BUBBLE

133.88

131.22

150

10

NAV OF HDFC TAXSAVER FUND - GR

200

152.02

GLOBAL
SUBPRIME

250

205.68

NAV OF HDFC TAXSAVER FUND GROWTH IN LAST 17 YEARS (1997 TO 2013)

237.86

EQUITY- NOT RISKY OVER LONG TERM: NAV OBSERVATIONS OF A MUTUAL FUND

CAGR 20.49 %
IN LAST 17 YEARS

TIME PERIOD 1997 TO 2013

NOTE: PROBABILITY OF LOSS IN THIS EQUITY MUTUAL FUND IS NIL IN PERIOD OF MORE THAN 5 YEARS.
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MY CARE

EXAMPLE OF PROFESSIONAL MANAGEMENT: MUTAL FUNDS

INVESTMENT
14/02/2000

VALUE ON
21/09/2001

VALUE ON
23/11/2004

GROWTH

5,924

2,600

6,009

1.43%

HDFC EQUITY FUND GR

1,00,000

51,179

2,12,360

112%

FRANKLIN BLUECHIP FUND GR

1,00,000

66,222

2,02,540

102%

RELIANCE VISION FUND GR

1,00,000

41,240

2,55,610

155%

HDFC PRUDENCE FUND GR

1,00,000

71,651

2,35,370

135%

TATA PURE EQUITY FUND GR

1,00,000

43,927

1,82,630

82%

FRANKLIN INDIA PRIMA FUND GR

1,00,000

45,550

2,56,670

156%

HDFC TOP 200 FUND GR

1,00,000

46,002

1,69,780

69%

ICICI PRUDENTIAL POWER FUND GR

1,00,000

45,433

2,21,220

121%

RELIANCE GROWTH FUND GR

1,00,000

26,818

2,21,750

121%

YEAR 2000 2001 2004

SENSEX

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MY CARE

EXAMPLE OF PROFESSIONAL MANAGEMENT: MUTAL FUNDS

INVESTMENT
10/01/2008

VALUE ON
09/03/2009

VALUE ON
10/11/2010

GROWTH

20,582

8,160

20,875

1.42%

RELIANCE BANKING FUND GR

1,00,000

41,802

1,82,622

82.62%

RELIANCE PHARMA FUND GR

1,00,000

59,387

2,06,983

106.98%

BIRLA SUN LIFE MNC FUND GR

1,00,000

51,396

1,49,694

49.69%

UTI TRANSPORTATION & LOGISTICS

1,00,000

71,651

1,71,204

71.20%

SUNDARAM SELECT MIDCAP FUND GR

1,00,000

33,982

1,23,674

23.67%

HDFC EQUITY FUND GR

1,00,000

41,466

1,43,289

43.29%

HDFC TOP 200 FUND

1,00,000

47,152

1,41,858

41.8%

ICICI PRU BANK & FIN SERVICES FUND

1,00,000

40,291

1,47,065

47.07%

RELIANCE GROWTH FUND

1,00,000

55,919

1,66,668

66.67%

YEAR 2008 2009 2010

SENSEX

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SIP: BEST METHOD OF INVESTING IN EQUITY MUTUAL FUNDS

SIP (Systematic Investment Planning) is a method of investing a fixed amount, at a regular
interval, in a mutual fund.
Advantages of SIP: Encourages Regular Investments, Flexible & Very Convenient, Lower
initial investment without cutting into regular expense, Long term perspective, Rupee Cost
Averaging Benefit to counter volatility as it brings down the average cost of your
Investments, No need to time the market, Meet investment objective with investment
needs, Helps to match the risk / return profile.
EXAMPLE OF SIP: IN ADVERSE CONDITIONS
TIME

JANUARY 2008

FEBRUARY 2009

AUGUST 2009

NOVEMBER 2010

SENSEX

20,000

9,000

15,000

20,000

SIP RETURNS

33.70% CAGR From January 2008 to November 2010

Returns are based on average SIP returns of 150 Mutual Funds equity schemes available in Jan 2008
INVEST IN EQUITY FOR LONG TERM, DON'T TRY TO TIME THE MARKET, BE A REGULAR INVESTOR
**** EQUITY IS FOR LONG TERM ***
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SIP RETURNS: LAST 5 YEARS

Average Returns of Top 10 Schemes

Average Returns of Top 20 Schemes
Average Returns of Top 30 Schemes
Average Returns of Top 50 Schemes

= 24.99 %
= 22.31%
= 20.61%
= 18.56%

(SIP Return of 198 Diversified Equity Schemes in Percentage as on 31st December, 2012)

SIP RETURNS: LAST 10 YEARS

Average Returns of Top 10 Schemes

Average Returns of Top 20 Schemes
Average Returns of Top 30 Schemes

= 21.63 %
= 20.75%
= 19.98%

(SIP Return of 54 Diversified Equity Schemes in Percentage as on 31 st December, 2012)

SIP RETURNS: LAST 15 YEARS

Average Returns of Top 10 Schemes

= 23.91 %

(SIP Return of 22 Diversified Equity Schemes in Percentage as on 31 st December, 2012)

SIP RETURNS: IN NEXT

5 YEARS ? 10 YEARS? 15 YEARS ? < = > 18%

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MY CARE

VALUE OF 1,00,000 INVESTED 10 YEARS BEFORE (VALUE ON 31

ST

MUTUAL FUND

DEC2012)

CAGR (%)

CURRENT VALUE

Sundaram Select Midcap - Gr

32.6

16,80,487

Reliance Growth Fund

32.16

16,25,550

30

13,78,585

HDFC Top 200 Fund - Div

29.34

13,10,173

Franklin India Prima Fund - Gr

27.49

11,34,387

Tata Pure Equity Fund - Gr

27.29

11,16,716

DSP BlackRock Opportunities Fund - Gr

26.82

10,76,162

Kotak 50 Equity Scheme - Div

24.75

9,12,863

24.95

9,27,604

19.12

5,75.237

20

6,19,174

CNX Midcap

23.57

8,30,100

NSC 500

19.53

5,95,346

SBI Magnum Global Fund 94 - Div

Average of Diversified Equity Scheme

SENSEX (BSE 30)

BSE 200

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MY CARE

GROWTH IN DIFFERENT ASSET CLASSES: VALUE ON 31-12-2012

Growth of 10,000 in Different Asset Classes Since 1981-1982
10,00,000
8,93,170
9,00,000
8,00,000
7,00,000
6,00,000
5,00,000
4,00,000
3,00,000
1,51,480
2,00,000
1,11,840 1,41,460
66,510
53,740
1,00,000
0
Inflation
Gold
Silver
Co Deposit Bank Deposit
Sensex
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MY CARE

ANNUAL PERFORMANCE BY ASSET CLASSES

:LAST 14 YEARS {1999 -- 2012}

S.NO
1
2
3
4
5
6
7
8
9
10
11
12
13
14

CALANDER YEAR
GOLD (%)
PROPERTY (%)
EQUITY (%)
BANK FD (%)
1999
2
-3
95
10
2000
1
0
-21
9
2001
5
3
-22
9
2002
23
6
9
8
2003
13
9
87
6
2004
1
16
19
5
2005
9
29
41
6
2006
21
31
43
6
2007
16
49
61
8
2008
26
16
-54
8
2009
24
-11
86
10
2010
23
15
17
6
2011
32
7
-25
9
2012
12
10
31
9
Average
14.86
12.64
26.21
7.79
Value of 10,00,000 invested
69,56,061
52,73,239 2,60,20,326 28,58,239
(Value in 2012 if invested in 1999)
Source : Bloomberg, BSE, Company Data, HDFC Ltd, Morgan Stanley Research
29

MY CARE

PROPERTY VS EQUITY MUTUAL FUNDS

PROPERTY

EQUITY MUTUAL FUNDS

HUGE AMOUNT IS REQUIRED

HUGE AMOUNT IS NOT REQUIRED

HIGH TRANSACTION COST (12-15%)

NO TRANSACTION COST

HASSELS IN TRANSACTION

NO HASSELS IN TRANSACTION

NO LIQUIDITY & RESTRICTED FLEXIBILITY

FULL LIQUIDITY & HIGHLY FLEXIBLE

SECTOR IS NOT REGULATED

WELL REGULATED BY SEBI(GOVT.)

RISK OF FRAUD

NO SUCH RISK

BLACK MONEY MAY BE INVOLVED

BLACK MONEY IS NEVER INVOLVED

RETURNS ARE TAXABLE (LTCG: 20%)

RETURNS ARE TAX FREE (LTCG: 0% AFTER 1 YEAR)

PERFORMANCE IN LAST 14 YEARS 12.64%

PERFORMANCE IN LAST 14 YEARS 26.21%

10,00,000 TO 52,73,239 IN LAST 14 YEARS

10,00,000 TO 2,60,20,326 IN LAST 14 YEARS

30

MY CARE

DIRECT SHARE TRADING VS EQUITY MUTUAL FUNDS

DIRECT SHARE TRADING

EQUITY MUTUAL FUNDS

HIGH INVESTMENT AMOUNT NEEDED

LOW INVESTMENT AMOUNT IS NEEDED

LACK OF EXPERTISE (INVESTOR)

PROFESSIONAL EXPERTISE (FUND MANAGER)

INADEQUATE INFORMATION ON TIME

HIGH QUALITY & TIMELY INFORMATION

LOW DIVERSIFICATION

HIGH DIVERSIFICATION

HIGH RISK

LOW RISK

LOW FLEXIBILITY

HIGH FLEXIBILITY

HIGH TRANSACTION COSTS

LOW TRANSACTION COSTS (EXIT LOAD)

LOW TRANSPARENCY FROM BROKER

HIGHLY TRANSPARENT (FUND HOUSE)

LACK OF MANAGEMENT BY INVESTOR

FULL TIME FUND MANAGEMENT TEAM

INVESTOR ENGAGEMENT IS REQUIRED

INVESTOR ENGAGEMENT IS NOT REQUIRED

31

MY CARE

MUTUAL FUNDS:

LIQUID MONEY MANAGEMENT

SAVING BANK ACCOUNT

LIQUID MUTUAL FUNDS

RETURNS 4% ANNUAL

RETURNS 8% ANNUAL (APROXX, 7% TO 9%)

INTREST CREDITED QTLY OR HALF YEARLY

INTREST IS CREDITED DAILY

TDS DEDUCTED IF INTREST > 10,000 PA

TDS IS NOT DEDUCTED (NO ENRTY/EXIT LOAD)

ATM CUM DEBIT CARD FACILITY - YES

YES & MORE FLEXIBLE (IN SELECTED SCHEMES)

1,00,000 WILL GIVE YOU 21,665 IN 5 YEARS

1,00,000 WILL GIVE YOU 47,000 IN 5 YEARS

1. THIS IS THE RIGHT INSTRUMENT TO PARK YOUR LIQUID MONEY

2. VERY EASY TO OPERATE, ONLINE TRANSACTION FACILITY AVAILABLE

3. FIXED DEPOSITS LIKE PRODUCTS ARE ALSO AVAILABLE IN MUTUAL FUNDS WITH BETTER
RETURNS THAN BANK FIXED DEPOSITS.
4. MY CARE WILL FURTHER HELP YOU ON THESE PRODUCTS
32

MY CARE

HEALTH INSURANCE: YOU MUST HAVE ADEQUATE & RIGHT HEALTH INSURANCE POLICY
HEALTH INSURANCE IS A TYPE OF INSURANCE THAT COVERS YOUR MEDICAL EXPENSES

HEALTHCARE IS INCREASINGLY EXPENSIVE, WITH TECHNOLOGICAL ADVANCES

HEALTH INSURANCE PROTECTS US FROM SUDDEN, UNEXPECTED COSTS OF HOSPITALIZATION
SUM ASSURED OF 25,00,000 IS AVAILABLE IN JUST 12,000 TO 15,000 ONLY (AGE DEPENDENT)
CONVENIENT CASHLESS CLAIM BENEFITS & CAN BE USED MULTIPLE TIMES UPTO SUM ASSURED
THERE ARE MANY LOOPHOLES & TECHNICAL ISSUES IN BUYING A HEALTH INSURANCE POLICY

THERE ARE MANY ISSUES RELATED TO CLAIM SETTELMENT, WITH NETWORK HOSPITALS ETC.
My Care WILL HELP YOU TO BUY THE BEST HEALTH INSURANCE POLICY
33

MY CARE

LIFE INSURANCE: YOU MUST HAVE ADEQUATE & RIGHT TERMLIFE INSURANCE POLICY
LIFE INSURANCE IS A TYPE OF INSURANCE THAT COVERS THE RISK OF LIFE

ADEQUATE LIFE INSURANCE IS MUST FOR YOUR LOVEDONES/DEPENDENTS IN YOUR ABSENCE

PROTECTS YOUR LOVEDONES FROM SUDDEN FINANCIAL CRISIS IN UNEXPECTED MISHAPPENING
OTHERWISE THERE MAY BE MAJOR FINANCIAL CRISIS OR EVEN MAY LEAD TO INDEBTEDNESS
TERM INSURANCE POLICIES OF 1 CRORE SUM ASSURED ARE AVAILABLE IN JUST 8,000 ANNUAL
THERE ARE MANY LOOPHOLES & TECHNICAL ISSUES IN BUYING A LIFE INSURANCE POLICY

THERE ARE MANY ISSUES IN CLAIM SETTELMENT, VARIES WITH COMPANY TO COMPANY, ETC.
MY CARE WILL HELP YOU TO BUY THE BEST LIFE INSURANCE POLICY .
34

MY CARE

FINANCIAL PRODUCTS SUPPORT BY MY CARE:

DOING YOUR FINANCIAL HEALTH CHECKUP INCLUDING YOUR INCOME AND YOUR
EXPENDITURE, INVESTMENTS, ASSETS, LOANS, LIABILITIES ETC.
ANALYSIS OF YOUR CURRENT FINANCIAL SITUATION & FINANCIAL RESOURCES

HELPING YOU IN DEVELOPING YOUR FINANCIAL GOALS & SCANNING YOUR RISK TO KNOW YOUR
RISK PROFILE
PREPARING PERSONAL INVESTMENT NEED ASSESSMENT for you{WORTH 50,000 OR MORE}

RECOMMENDING YOU THE BEST FINANCIAL TOOLS AVAILABLE FOR INVESTMENTS, PROTECTION
NEEDS & OTHER STRATEGIES. {VERY IMPORTANT FOR PROTECTION OF YOUR HARD EARNED MONEY, WORTH ....???}
FULL IMPLEMENTATION SUPPORT (MANUAL, ONLINE AND CALL & TRANSACTION OPTIONS)

ONLINE TRANSACTION ACCOUNT LINKED TO YOUR BANK ACCOUNT WITH ZERO BROKERAGE IN
ALL MUTUAL FUND TRANSACTIONS (WORTH 1,00,000 OR MORE IN 25 YEARS)(MAINTAINANCE FEE OF JUST 300 PA)
PAPER FREE ACCOUNT FOR SIP, PURCHASE, REDEMPTION, STP, SWP IN MF, SHARES, ETF ETC.
FINANCIAL PRODUCTS SUPPORT IS IMPORTANT FOR GOAL ACHIEVEMENT ON RIGHT TIME
35

MY CARE

FINANCIAL PRODUCTS SUPPORT BY MY CARE:

PERSONAL WEALTH ACCOUNT FOR TRACKING OF YOUR INVESTMENTS {WORTH 50,000 OR MORE}
DETAILED TRACKING OF YOUR INVESTMENTS LIKE AMOUNT INVESTED, TRANSACTION
HISTORY, CURRENT STATUS, DETAILED PROFIT & LOSS CALCULATION, CAGR, COMPARISION WITH
BENCHMARKS, DETAILED REPORTING OF PORTFOLIO, INFLATION ETC & PDF & EXCEL EXPORT.

PERIODICAL ASSESSMENT OF YOUR INVESTMENTS & PORTFOLIO WITHOUT ANNUAL AUM

MAINTAINANCE CHARGES {WORTH 5,O0,000 OR MORE} & TAX PLANNING.
SUGGESTING YOU THE REQUIRED CHANGES IN YOUR PORTFOLIO PERIODICALLY (IF NEEDED)

My Care FINANCIAL EDUCATION SYSTEM. (WORTH..??? INVALUABLE)

BASIC CONCEPTS OF FINANCIAL PRODUCTS SUPPORT & MANAGEMENT, STUDY
MATERIAL, FINANCIAL EDUCATION SEMINARS , RECENT UPDATES
& MUCH MORE.
CONTINUOUS PROCESS.
FINANCIAL PRODUCTS SUPPORT IS IMPORTANT FOR GOAL ACHIEVEMENT ON RIGHT TIME

36

MY CARE

BENEFITS OF FINANCIAL PRODUCTS SUPPORT BY MY CARE:

ALL FINANCIAL TOOLS AVAILABE UNDER ONE ROOF
UNBIASED & TRANSPARENT ADVICE (VERY IMPORTANT FOR YOUR FINANCIAL HEALTH)
PREMIUM SERVICES AVAILABLE AT A VERY LOW COST PAPER FREE TRANSACTIONS
BETTER TAX PLANNING, BETTER RISK PLANNING (LIFE & HEALTH RISK COVERS)
FREE FINANCIAL EDUCATION SYSTEM CFE (CONTINUOUS FINANCIAL EDUCATION)
COST EFFECTIVE & BEST ASSISTANCE FOR YOUR GOAL ACHIEVEMENT
PLATFORM FOR UNDERSTANDING THE ART OF FINANCIAL MANAGEMENT
37

MY CARE

PROCESS OF FINANCIAL PRODUCTS SUPPORT BY MY CARE:

Register yourself to My Care Family & get your My Care Registration Number.

Fill up the Financial Products Support Application Form Carefully (Manual or Online)
Fill up the My Care Referral System Form, Paste your Photo & sign on both side of form.
(OPTIONAL)

Provide Your Details & Documents for Online Transaction Account

1. PAN Card Self Attested Copy
2. Address Proof Self Attested Copy

3. Cancelled Cheque with Name Print (else with passbook)

Check your Mobile Inbox & Email for welcome message.
Kindly go through the attachments of welcome mail for better understanding.

You will receive the soft copy of duly filled Online Transaction Form on your registered email
address.
38

MY CARE

PROCESS OF FINANCIAL PRODUCTS SUPPORT BY MY CARE:

Take print on both sides of paper, sign as per list, past photo, cross sign, attach necessary
documents & submit to your sponsor or My Care Office as soon as possible

Once your Investment Need Assessment & Accounts (Wealth Account & Transaction Account)
are ready, well call you for the initial first meeting with us (after one month of association).
The first meeting will include discussion of your Investment Need Assessment, Wealth
Account & Transaction Account and Implementation & Operational Procedures.

Contact us for next meetings, once in six months, for revision in your portfolio (mandatory).
Stay in touch with your sponsor for latest updates, attend all CFE (Continuous Financial
Education) like Financial Education Seminars for financial education, read email

communications, attend all important meetings etc.

Feel free to contact us or your sponsor for any support.
39

MY CARE

SUMMARY OF DISCUSSION
Financial Products Support & its Importance
Inflation & its Effect in your Financial Condition

Financial Tools & Comparison

Power of Compounding & 1 Crore Plan
Equity (Not Risky in Long Term) & other Asset Classes
Mutual Funds & Systematic Investment Plan (SIP)

Health Insurance, Life Insurance & their Importance

Personal Financial Products Support Package by My Care
Benefits of Financial Products Support by My Care

Process of Financial Products Support by My Care

40

MY CARE

IF YOU ARE BORN POOR, ITS NOT YOUR MISTAKE. BUT, IF YOU DIE POOR, IT'S YOUR
MISTAKE. - BILL GATES

THANK YOU
I THINK SOUND INVESTING CAN MAKE YOU VERY WEALTHY IF YOURE NOT IN TOO BIG
OF A HURRY. AND IT NEVER MAKES YOU POOR, WHICH IS BETTER. - WARREN BUFFET
MY CARE