Money Simplified. By Team Wealth Management

Transcription

1 Money Simplified By Team Wealth Management

2 Financial Planning Bringing On To Your Finger Tips What? Certainly not a budget preparation as we think Why? To make your money work for you When? Now! Already We Started How? As per needs of each individual Whom? You and Your Family Will be made as easy as ABC

3 Where To Begin For Financial Planning? Start With Your Personal Financial Details What you own and what you owe (You Will come To know only when you organize your papers) Net worth Knowing, Understanding and deciding how you behave with your money(profile Yourself) Risk Appetite Is your Financial diet suitably balanced (Well Diversified portfolio is key to financial health) Asset Allocation

4 Investment Planning The Ways And Means Of Investing S.M.A.R.T Goals S Specific M - Measurable A Attainable R - Relevant T Time Based S-M-A-R-T S M A R T S.M.A.R.T Results S Success M Momentum A Attitude R Reality T - Trust

5 Know Your Fundamentals Simple And Dramatic Factors That Influence Your Income and Investments 1. Inflation 2. Power Of Compounding 3. Time Value Of Money 4. Rupee Cost Averaging 5. Diversification

6 Guiding Principles To Intelligent Investing Do not save what is left after spending but spend what is left after saving THE MUST FOLLOW RULES 1. Returns: Look for returns in line with your risk taking capability and market reality. 2. Liquidity: Invest with ease, Time and cost to convert your investment into cash. 3. Safety: Remember risk affects the return on investment and return of investment. 4. Inflation: Try to beat the inflation 5. Taxation: Try not to be beaten by taxation.

7 The Big Five And How To Achieve Them ( For An Average Indian Family) 1. A house to live in 2. Educating Children 3. A Car to go with Family 4. Children s Marriage and 5. Retirement 1. Equity 2. Mutual Funds 3. Real Estate 4. Gold 5. Fixed Income Instruments

8 EQUITY Spend At Least As Much Time Researching A stock As You Would Choosing a Refrigerator The 4 P s to look for in a stock The Time tested principles of stock investing 1. Promoter 2.Performance 3.Prospects 4.Price Always remember market is not a single word It comprises both buying and selling Do not get married to your stocks. Realize only when you sell at right time you get a profit. Day Trading not only spoils your wealth but your health also. It is not timing the market but it is time in the market that benefits you.

9 Mutual Funds Put Not Your Trust In Money, But put Your Money In Trust Choose the fund that matches your financial profile. Say a strict NO to New Fund Offers. A minimum Three to Five year track record is necessary to decide fund s potential. Remember NAV is a meaningless number. If your investment horizon is more than one year go for growth option. Less than one year opt for dividend option ( To reap the tax benefit). Liquid mutual Funds and Fixed Maturity Plans offer you investment options suitable for your time frame. SIP, STP and SWP are the right ways for investing in Mutual Fund. The Funds To Watch 1. UTI Opportunities Fund 2. HDFC Prudence Fund 3. Quantum Long Term Equity Fund 4. IDFC Premier Equity Fund 5. Reliance Pharma Fund 6. Franklin Templeton Tax Shield Fund 7. ICICI focused Bluechip Fund

10 Real Estate Owning a Home Is A Keystone Of Wealth Both Financial Affluence And Emotional Security 1. Decide property is for own use or for investments. 2. Decide on the budget, when you go for a home loan. 3. Liquidity is most important. Go for property buying only when you don t need the money in near future. 4. For clear title take the help of a lawyer. 5. Beware of frauds. 6. Home Loans offer you great tax benefits. 7. Save tax upto Rs.1.5 lakhs on home loan interest and Rs. 1 lakh on principal repaid.

11 Gold The Desire Of Gold Is not For Gold. It Is for The Means Of Freedom And Benefit 1. Universally favourite commodity 2. Looked for a long time as a hedge against inflation 3. Please note buying jewellery is not investing in gold. 4. Price Cyclical in nature 5. Modes of investment A. Coins Bars ( Storage Risk) B. ETF S ( Easy Liquidity, Market Related returns, No Storage Risk) C. E Gold ( Market Volatility but no storage risk)

12 Fixed Income Instruments The Most Powerful Force In The Universe Is Compound Interest 1. Liquidity is more 2. Can enjoy benefit of compounding 3. Low risk low return instruments 4. Interest is taxable 5. Prone to Interest rate risk 6. Should look for ratings while investing in private firms

13 Insurance Planning Insurance Is Like Marriage. You Pay, Pay, Pay And You Never Get Anything Back 1. Life Insurance Pure Risk Cover Term Policies, The Best. 2. Health Insurance - Family Floater With TPA Facility (Arogya Raksha) 3. Personal Accidental Insurance ( Don t be misguided that your credit card insurance will take care of this portion) 4. Auto Insurance Don t Take With An Idea That Police Person Will Catch You. Avoid Smaller Claims To Get Benefit Of Unclaimed Bonus 5. Property Insurance Take For Longer Duration Single Premium Policies Thumb Rules: Never Think Insurance Is Investment Insurance Is Not For Tax Saving Purpose The Value Of Your Life Is More Valuable Than Your Car

14 Tax Planning The Difference Between Tax Planning And Tax Evasion Is The Thickness Of A Prison Wall 1. Take Maximum Benefit Under Sec80C For Normal Savings And Investments 2. Check Post-Tax Yield Rather Than Pre-Tax Yield As Per Your Tax Bracket 3. Dividends From Equities and Equity Mutual Funds Are Tax Free 4. Long Term Capital Gains on Equity Investments Are Tax Free; On Debt Investments Tax is Only 10 Percent 5. Indexation Benefit Reduces The Capital Gains Liability

15 Retirement Planning When A Man Retires, His Wife Gets Twice The Husband But Half The Income The R.S.S (Retirement.Strategy. Statement) 1. Your Current Assets 2. Time Horizon 3. Expected Return 4. Risk Tolerance Level 5. Benchmark Portfolio Based on the above R.S.S decide A.How Much To Invest B. What Are The Suitable Instruments C.What Changes Be Made During Investment Tenure

16 Contact Team Wealth Management Mr.K.Rambabu, Chief Manager Mr.Bino Joseph, Wealth Manager Ms.V.Priyadharsini, Wealth Manager