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Presented by:-
Vishal Thakkar
M.Com, CA, MBA(fin)
Managing Director
Brianna Knowledge Resources Pvt. Ltd.
Time & Money
• Let’s begin with a story! There was a village with a
drought. The Chief of the village found the two
smartest men he could find and gave them each
Rs.10,000. Their mission…..bring water to the people.
• The 1st man was a hard worker and started a business.
• The 2nd man was an investor and built a pipeline.
And the winner is……
• Not only did the second man win the
contest, but he found a way to have water
(money) come in even when he wasn’t
working.
Monthly
Expense
Household /
Monthly Expense
Freedom / Wealth Ratio…
ü Academic
ü Professional
ü Financial
EXPENSE
ASSETS LIABILITIES
What Are Liabilities?
Housing Loan “Anything
EXPENSE
ASSETS LIABILITIES
What Is Wealth?
INCOME
EXPENSE
ASSET
LIABILITY
Let’s Take a Break…
Savers Are Losers…
Ø How many of you have a Savings Account…?
EXPENSE EXPENSE
2100
1400
10%
700
8%
0
0 5 10 15 20 25
Growth of Rs. 100/-
More About Time
• Time diversification reduces
investment volatility
• The Rule of 72
LIABILITY
EXPENSE
ASSET
So what do we
recommend…
Take the Steering Wheel in your hand…
Do it on your own
Give in for Portfolio Management
Service (PMS)
Discretionary V/s Non-Discretionary
PMS
Let us do a Mass Role Play
Which Company will you choose to
invest in?
Name of Company: Wise Co. Prudent Co.
Sales Rs. Crore 1000 800
Net Profit 120 200
Profit Margin 12% 25%
Equity Capital 200 500
Debt Funds 200 100
Return on Equity 60% 40%
Safety of Capital
Lowest Return
Mostly to Balance the Investment
Portfolio
Tax Saving at other times
Foreign Exchange
Hedging Instruments
Now used for Investment because of
Volatility
Large in Base, Deep in Scope
Booming because of Foreign
Institutional Investment Inflows
Mutual Funds
25 Years
What is the Average Retirement Age?
60 Years
What is an Average Income of an
Middle-Class House-hold?
Rs.15,000/- p.m.
How much can a person
save on a regular basis?
Rs.5,000/- p.m.
If a person can save Rs.5,000/- per month
What will be his wealth when he retires?
Assuming:
He increases his investments by 5% every year
Invests in an Asset class that gives returns of 20%
At Age 60 his wealth would have been
Rs.27 Crores
THE TRUTH
Save Regularly
Even a small amount saved regularly, is good
Starting Early
Ram Shyam 27
Crores*
Savings Starting Age 25 40
4.90
Give time to your investments Crores*
rather than timing
Sensex
Company Bank
Deposits Deposits
Inflation
Gold
Past Performance (BSE Sensex)
This is in spite of …