Presenter: Neeraj MauryaDate : 13-Oct-2015Venue : Capgemini, Airoli

Presented at an internal knowledge sharing session (Guftgu) for the benefit of all the colleagues

How to become

CrorePati

1,00,00,000in 25 years

ELSSDebt

Compounding

ULIP

ETFExposur

e

Diversific

ation

Bonds

Liquidity

Equity

RISK

Your investment must grow at (For 5000 per month)

Every month investment Req. (with 10% Rate Growth)

Age 25 13% per annum 8000/-Age 30 17% per annum 14000/-Age 35 26% per annum 25000/-Age 40 44% per annum 50000/-

Fixed Deposit returns (7-8%)

Saving Account returns (4%)

Recurring Deposit returns (8.2%)

SAVING ACCOUNT INTEREST CALCULATIONBefore 2010 After 2010Annual Interest of 4% Daily interest = Interest per

annum/365 i.e. = 4/365 = 0.010958%

For 3000/- for 1 month interest is 7/-

For 3000/- for 1 month interest is 20/-

Opening Balance

Credit Debit Closing Balance

1-Jan-2015 3,000 0 0 300021-Jan-2015 1000 200025-Jan-2015 2000 400031-Jan-2015 4000

Before 2010 After 2010Lowest Balance * 4% = 2000 * 4% = 80/12 = 7/Interest Earned =7/-

3000 * 20 days * 0.010958% = 7/-2000 * 4 days * 0.010958% = 4/-4000 * 7 days * 0.010958% = 9/- Interest Earned =20/-

Sample Scenario & Calculation

8th Wonder of world

Interest earned is added to principle

Compounded Monthly,

Quarterly, Half- Quarterly, Yearly

Rule of 72

GOLD (RETURNS 10 TO 12%)

To become Crorepati

Duration : 25 Years Every month Investment : 8000/-

Recognized/ReliableEasy to

buy/sell

Can be used as

Ornaments

Very Liquid

Threat of TheftETF or

Gold Funds

Minimum(Per year)

Maximum(Per year)

Returns Lock-in Period

PPF 500 100, 000 8.8% 15 years + 5 Years

NSC Sold in denomination of Rs 100/-

- 8.8% 6 Years

Bank Fix Deposit

- - 7-8% 5 Years

Mortgage/Lease

- - Agreement

Agreement

Bonds - - Agreement

Agreement

Provident Fund (PF)

- - 8% 5 Years, till Employment

DEBT (RETURNS 8-9%)

IS LOAN, AND CARRIES A FIXED RATE OF INTEREST, AND A PROMISE TO REPAY. 

Other Post Office Instruments : Kisan Vikas Patra, Monthly Income Sheme, Recurring Deposit….

NSC, PPF, BOND

SHARE MARKET (RETURNS 15-18%)

Good Analysis required

Big growth

Know Settlement

System

High Risk

Position/Day/Margin

Trading

Stock Year Investment Returns Year 2015

Infosys 1993 9500/- 3 CroreSatyam 2005 38000/- 2 Lac

Sample Growth

Demat Ac required

MUTUAL FUND RETURNS (15-20%)

Mr. A Mr. B Mr. B(Double Tenure)

Age 25 35 35Every Month Investment

5000 5000 10000

Duration 5 Years 5 Years 10 YearsTotal Investment 3 Lac 3 Lac 6 LacReturns (at Age 60) 7 Crore 1.33 Crore 2 Crore

SIP & LumpSum

Investment Diversificati

on

Medium to High Risk

Safe Returns

Liquidity Open/Closed Ended

Large/Mid/Small CapSectorial &

Gold Funds

REAL ESTATE

Capital Growth

Regular Monthly Income

Tax Benefit

Physical Asset/Used for Living

Require Good Amount initially

Hidden cost like Stamp Duty ,VAT,

Maintenance, Repair

Rent Free

Periods

Bad Tenants

Not so easy to

LiquidateBlack Money

ELSS V/S ULIP

Predictable Cost

Very high first year charges

Easily understandable returns

Short Lock-in(3-5 years)

Exit Load 1%(if withdrawn bef. 3 years)

Transparent Investment

PurelyInvestment

Premium = Life Insurance + Admin Charges+ Fund Mang. Charge+ Investment

Extra 30% charges(If withdrawn before 5 years)

Less Transparency

Insurance + Investment

ELSS(Equity-Linked Savings

Schemes)

ULIP(Unit Linked Insurance Plan)

• Axis Long Term Equity, • BNP Paribas Long term Equity, • Franklin India Taxshield,

• HDFC Standard Life• ICICI Prudential

INSURANCE POLICIESEndowment ULIP Term

Insurance & Maturity

Insurance & Investment & Maturity)

Only Insurance No Maturity

Yearly Premium 31000 25000 12200

Sum Assured 10 Lacs 2.5 Lacs 1 Crore

Maturity Amount

21 Lacs Units * Rate Nil

Returns 5.4% 10 year plan (6-12%)

Nil

NEVER PUT ALL EGGS IN ONE BASKET (DIVERSIFICATION)

Low Risk/ No Risk (50%)

Medium Risk (30%) High Risk (20%)

- Saving Account (4%)

- ULIP - Stock Trading

- Fixed Deposit(8-10%)

- ELSS

- NSE (8.8%) - Mutual Fund- PPF (8.8%) - Real Estate- Gold (10%)- Insurance (6%)

Instrument Interest Rate Every Month Investment Req.

Risk Category

Saving Account 4% 20000/- Low

Fixed Deposit 8% 11000/- Low

NSC 8.8% 9500/- Low

PPF 8.8% 9500/- Low

Insurance(ULIP)

9% 9000/- Medium

Gold 10% 8000/- Medium

Mutual Fund 16% 3500/- Medium to High

Real State Medium to High

Share Trading 15% 4000/- High

To become Crorepati in 25 years

IDEAL PORTFOLIO TO BECOME CROREPATI

Instrument Monthly

Yearly

Total Yearly Investment

Returns(After 25 Years)

Saving Account (4%)

500 6000 2,57,922

Fixed Deposit (8.5%)

500 6000 4,78,683

NSE (8.8%) 1000 12000 9,57,367PPF (8.8%) 1000 12000 9,57,367Gold (10%) 1000 12000 6,68,945ELSS (16%) 1000 12000 39,65,218Mutual Fund (15%) 500 6000 32,84,074 Equity Portfolio (16%)

500 6000 39,65,218

Term Insurance(Rate from LIC for 25 years)

12200 12200 No Returns(On death 1 Crore)

Mediclaim 3500 For Self, Spouse and kid(Medical Cover of 2 Lac)

6000 15700 84200

Every month invested : 7308 Returns : 1.18 Crore (With: Life cover of 1 Crore + Mediclaim of 2 Lac for each)

Assuming a person with monthly take home of 20000/-s/he just has to pay 30% of his salary for this goal

INFLATION (6%)

Today’s value for future Rs. 1 crore are as follows 10 years- Rs.56 Lakhs 20 years- Rs.31 Lakhs 25 years- Rs.23 Lakhs 30 years- Rs.17 Lakhs

Go for debt mutual funds over fixed deposits. Never consider Insurance for investment. Surrender ULIP to restrain losses. Surrender Endowment Plans, Take Term Insurance. Make a balanced portfolio with diversification. Keep the EMI dates during end of month. We earn regularly. We spend regularly. Shouldn’t we

also invest regularly?

ADVICE