Inestment Plan
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Transcript of Inestment Plan
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Investment Planning
By
Suraj S. Kapur CFPSuraj S. Kapur CFP
CMCM
,,
Financial Planning Academy (FPA)Financial Planning Academy (FPA)
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Agenda
Investment Planning Basics
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Golden Rules of Investin Rule1: Investment and Speculation are 2 entirely different
Rule2: Do not Disregard the Investment Time Horizon
Rule3: Asset Allocation is Im ortant
Rule4: Understand the Investment Tripod
Rule5: Systematic Investment is Good For You
u e : ou can con ro s
Rule 7: Never forget the 3 reliable truths of EquityInvestment
Rule 8: Take some trouble to equip yourself with basicknowledge about investment
….
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Golden Rules of Investin Investment: is the purchase of an
asset for the conservation of wealthand the increase of wealth, with theemphasis on the conservation of
wealth.
Speculation: is the purchase of an
asset or the conservation o wealthand the increase of wealth, with the
emphasis on the increase of wealth.
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Golden Rules of Investin
, .
Speculation is hazardousinvestment.
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Golden Rules of Investin
,
goes against an investmenttime horizon.
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Golden Rules of Investin
Rule Two:Do not disregard
time horizon.
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is a time element attached to
every investment, which if
,
and delivers optimum
returns.
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Investment Alternatives
Non marketableFinancial Assets
Equity
Debt InstrumentsMoney Market
Instruments
Mutual Funds Life Insurance Policies
Real Estate Precious Objects
Derivatives
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Bank deposits
Post office savings accounts Post office time deposits (POTDs)
Post office monthly income scheme(POMIS)
Kisan Vikas Patra KVP
National Saving Certificate
Provident fund deposits
Em lo ee Provident Fund Schemes EPF
Public Provident Fund Scheme (PPF)
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Deposits in scheduled banks are due to regulations by RBI and
100,000) per depositor per bank) There is a ceiling on interest rates payable on deposits in
savings account (currently it is: 3.5%)
Interest rate on Fixed deposits varies with term of deposit. Forshorter term, interest rate is lower, and for longer term, interest
rate is higher an epos ts en oy g qu ty. t raw premature y a
portion or whole of FD’s, with interest rate corresponding toperiods of deposit. Also we have flexi accounts (FDs with ATMfacilit
Loans can be raised against bank deposits
For savings bank accounts, banks calculate interest on theminimum de osit between 10th and last date of month. Tomaximize returns on savings account is to treat it like current
account between 1st
& 10th
, and a fixed deposit for rest of themonth
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A/c can be opened at any post office
Single adult or 2/3 adults jointly can open a/c Interest rate is decided by Central government
from time to time, w.e.f 1.3.2001 It is 3.5% per
annum Interest is tax exempt
In case of ordinary account Minimum First
deposit is Rs. 20, for checking a/s it is Rs. 250 Maximum balance in single a/c Rs. 1,00,000;
or o n a c s. , ,
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A/c can be opened at any post office
Accounts can be of 1 year(6.25%p.a),2year(6.5%p.a),3year (7.25% p.a) & 5 year(7.5% p.a)
Interest rate calculated on quarterly compounding basis
with interest payable annually, so effective rate is muchg er
Minimum amount is Rs. 200, No max limit
.Between 6 months-1 year, no interest is payable. After 1year, interest is paid for the period deposit is held,
Since AY08-09, POTD comes under Section 80C Taxbenefit
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Post office monthl income scheme A/c can be opened at any post office
ng e a u or a u s o n y can open a c
Single account minimum Rs. 1000/ (max Rs. 3 lacs) oroint account max Rs. 6 lacs can be o ened max Limitsare before 1st August 2007]
Since 1
st
August 2007, Single a/c max Rs. 4.5 lacs, Joint. .
Maturity period is 6 years
Interest rate is 8% p.a, payable monthly
Before 10th February 2006, 10% bonus on maturity From August 1 2008, 5% bonus on maturity
No 80C Tax benefit is available
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A/c can be opened at any post office
Single adult or 2/3 adults jointly can open a/c Period of maturity is 5 years
60 monthly equated payments in multiples of
Rs. 5 subject to minimum of Rs. 10 On investment of Rs. 10 for 60 months, the
maturity amount is Rs. 728.90
Premature closure available after expiry of 3years, at interest rate applicable to post office
sav ngs accoun
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An adult, minor, trust or joint owners can
purchase Available at any post office
Maturity period is 8 years 7 months I.e
Money doubles in this period No 80C tax benefit for KVP
Certificates are available in Rs. 100, Rs. 500,
Rs. 1000, Rs. 5000, Rs. 10000, Rs. 50000. Premature withdrawal is allowed after 2.5 years
.