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MAHINDRA
FINANCE
MAHINDRA
FINSMART
PRODUCT BASKET
VEHICLE FINANCE
REFINANCE
REFINNCE
INVESTMENT
ADVISORY SERVICES
INSURANCE
RURAL HOUSING
FINANCE
PERSONAL LOAN
MAHINDRA FINSMART
MAHINDRA FINSMART
MAHINDRA FINSMART INVESTMENT ADVISORY SERVICES
PROFESSIONAL
ADVICE
PERSONALIZED
SERVICE
REGULAR
PORTFOLIO
STATEMENT
ONLINE
ACCESS TO
PORTFOLIO
SAVING VS INVESTMENT
Savings vs. Investments
Value of Expenses
Thus the value of savings decreases!
Savings
France
11.1%
A Comparison
INDIA
24.3%
Germany
10.7%
Japan
6.3%
UK
5.5%
USA
1.4%
Indians
are
amongst
the
highest
savers
in the
world!
Source: CMIE,
Nov04
Inflation.
Actually deflates our savings..
Inflation
Rate
Inflation
Your
ENEMY!
5.05%
Actual cost in
May 2005 (Rs)
Expected cost
5 years later
(Rs)
Expected cost
10 years later
(Rs)
16.5
20.5
30.8
43.1
38
52
78.0
109.5
7.5
11.3
15.8
12.0
16.8
31.73
43.23
64.9
91.0
Commodities
Sugar (per kg)
Groundnut Oil (per kg)
Understanding Inflation
Inflation
Rate
5.05%*
Inflation Your
ENEMY!
Rs. 10,000 today
will
be worth
Rs. 7,817
after
5 years
Rs. 6,110
after
10 years
Rs. 3,733
after
20 years
Rs. 2,281
after
30 years
Inflation Your
ENEMY!
Interest
rate = 8%
Less:
inflation
@5.05%*
Less: tax
@33.99%**
i.e. 2.72%
Post-tax
& inflation
Interest =
0.23%!
Very
negligible
returns!
IMPORTANCE
OF INVESTING
Importance
of Investing
In most cases the amount saved is not enough to meet
current and future needs of self and family
It is important to make our savings work for us
INVESTMENT OPTIONS
FIXED DEPOSITS
BONDS
SMALL SAVING SCHEMES
INSURANCE
GOLD
REAL ESTATE
EQUITIES
MUTUAL FUND
RISK - RETURN
RELATIVE RISK
RETURN
LIQUIDITY
EQUITIES
HIGH
HIGH
HIGH
FIXED DEPOSITS
LOW
LOW
LOW
SMALL SAVING
SCHEMES
LOW
LOW
LOW
BONDS
LOW
LOW
VERY LOW
MUTUAL FUNDS
MEDIUM
MEDIUM
HIGH
GOLD
MEDIUM
MEDIUM
HIGH
REAL ESTATE
MEDIUM
MEDIUM
VERY LOW
17.9
Equity
11.3
G Sec
Bank FD
10.4
7.2
Gold
6.8
Inflation
In %0
10
15
20
THE EMOTIONS OF
INVESTING
GREED
DENIAL
BUY
CONCERN
CONFIDENCE
CAUTION
LOSS
FEAR
PANIC
SELL
ALWAYS INVEST
FOR THE LONG
TERM
WARREN BUFFET
SELL WHEN
THEY YELL,
BUY WHEN THEY
CRY
Fund
Convenient administration
Liquidity
Transparency
Well regulated
Liquidity
INVESTORS
INCOME/DIVIDEND
/TOTAL RETURN
PROFESSIONAL
MANAGER
DEBT
BALANCED
DIVERSIFIED
GILT
EQUITY
INDEX
MIP
BALANCED
TAX SAVING
FMP
SECTORAL
TWO WAYS OF
INVESTING
LUMPSUM
SIP
at regular
intervals
An Example
Investing Rs 500 each month in a mutual fund
The investment is done at the applicable NAV of the mutual
fund on the date of investment
MUTUAL
FUND
EQUTIES
TIPS
NEWS
MONEY
INVESTED IN
15-20
SECTORS
4 5 SECTORS
2000 EACH
VOLATILE RETURNS
DIVERSIFICATION
PROFESSIONAL
MANAGEMENT
THANK YOU