Investment Presentation 1
Transcript of Investment Presentation 1
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OVERVIEW
M & M
MAHINDRAFINANCE
MAHINDRAFINSMART
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PRODUCT BASKET
REFINNCE
REFINANCE
INVESTMENT ADVISORY SERVICES
INSURANCE
RURAL HOUSINGFINANCE
PERSONAL LOAN
VEHICLE FINANCE
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MAHINDRA FINSMART
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MAHINDRA FINSMART INVESTMENT ADVISORY SERVICES
MAHINDRA FINSMART
THE ONLY MUTUAL FUND DISTRIBUTOR PAN INDIA
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PROFESSIONALADVICE
PERSONALIZEDSERVICE
REGULARPORTFOLIOSTATEMENT
ONLINEACCESS TOPORTFOLIO
MAHINDRA FINSMART INVESTMENT ADVISORY SERVICES
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MUTUAL FUND DISTRIBUTION
INVEST THROUGH US
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8
SavingsReal Income Value of Expenses
Savings vs. Investments
but due to the effect of inflation
Savings is Money saved from regular income after accounting forall expenditure
Thus the value of savings decreases!
SAVING VS INVESTMENT
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Saving An Indian Religion
Indiansare
amongstthe
highestsaversin theworld! H
o u s e
h o
l d S a v
i n g s R a
t e
A
C o m p a r i s o n
USA1.4%
UK5.5%
Japan6.3%
Germany10.7%
France11.1%
INDIA24.3%
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SAVINGS How we are INVESTING.
Total annual householdsavings in 2004 was$145 bn
It was invested in thismanner
Source: CMIE,Nov04
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Inflation. Actually deflates our savings..
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Inflation Your
ENEMY!
InflationRate
5.05%
Inflation and dailycosts
Commodities Actual cost inMay 2001 (Rs) Actual cost inMay 2005 (Rs)
Expected cost5 years later
(Rs)
Expected cost10 years later
(Rs)
Sugar (per kg) 16.5 20.5 30.8 43.1
Groundnut Oil (per kg) 38 52 78.0 109.5
Onion (per kg) 6 7.5 11.3 15.8
Salt pack (per kg) 7 8 12.0 16.8
Petrol# (per litre) 31.73 43.23 64.9 91.0
Source: Department of Consumer Affairs
# HPCL Petrol Pump
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Inflation and Fixed IncomeInvestments
Consider the 8%taxable RBI
Savings Bonds
Interestrate = 8%
Verynegligiblereturns!
Less:[email protected]%* Less: tax
@33.99%**
i.e. 2.72%Post-tax
& inflationInterest =
0.23%!
Inflation - Your
ENEMY!
* 1 year average of inflation rates (Nov 2007),RBI
** Assuming highest tax rate
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INVESTMENT OPTIONS
FIXED DEPOSITS
BONDS
SMALL SAVING SCHEMES
INSURANCE
GOLD
REAL ESTATE
EQUITIES
MUTUAL FUND
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RISK - RETURNRELATIVE 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
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Which Asset delivers ?
6.8
7.2
10.4
11.3
17.9
0 5 10 15 20
Inflation
Gold
Bank FD
G Sec
Equity
Source: CLSA
Cumulative Annualized Returns (1985-2006)
Equities are the clear winner..
In %
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THE EMOTIONS OFINVESTING
DOUBT & SUSPICION
CAUTION
CONFIDENCE
GREED
DENIAL
CONCERN
FEAR
PANIC
BUY
SELL
LOSS
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ALWAYS INVEST
FOR THE LONGTERM
SELL WHEN
THEY YELL,BUY WHEN THEY
CRY
HISTORY SHOWS THAT TIME, NOT
TIMING, IS THE KEY TOINVESTMENT SUCCESS
WARREN BUFFET
SIR JOHN TEMPLETON
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So Investments in Equity is theclear choice
But what are the options to invest.
Investing directly in stocks is risky
needs time to understand and expertise
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Here comes the Mutual Fund
A MUTUAL FUND is a pool of money that isinvested in various securities, professionallymanaged by a Fund Manager , with the aim ofmaximizing return and diversifying risk.
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BENEFITS OF INVESTING IN MUTUAL FUNDS
Diversification
Flexibility
Choice of schemes
Professional Management
Convenient administration
Liquidity
Transparency
Well regulated Liquidity
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MUTUAL FUND BASICS
INVESTORS
PROFESSIONALMANAGER
INCOME/DIVIDEND
/TOTAL RETURN
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TYPES OF MUTUAL FUNDS
EQUITY
DIVERSIFIED
INDEX
TAX SAVING
SECTORAL
DEBT
GILT
MIP
FMP
BALANCED
EQUITY
BALANCED
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TWO WAYS OFINVESTING
LUMPSUM SIP
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What is a Systematic Investment Plan(SIP)?
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
+ +at regularintervals
A Systematic Investment Plan is an investmentstrategy used in mutual fund investing that allows
investments
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Mr. X has 10,000Where can he INVEST ?
EQUTIES
TIPS NEWS
STUDY
4 5 SECTORS2000 EACH
VOLATILE RETURNS
MUTUALFUND
MONEYINVESTED IN
15-20SECTORS
DIVERSIFICATION PROFESSIONALMANAGEMENT
STABILE RETURNS WITH VERYLOW RISK
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TH NK YOU