Ambalal Shares & Stocks Pvt Ltd, No 163,Durga Bhavan II Floor, New Katpadi Road, Vellore - 04 Little by little… Make your money work hard for you

Ambalal Shares & Stocks Pvt Ltd, No 163,Durga Bhavan II Floor, New Katpadi Road, Vellore - 04

Little

by little…

Make your money work hard for you

Ambalal Shares & Stocks Pvt Ltd, No 163,Durga Bhavan II Floor, New Katpadi Road, Vellore - 04.

You can achieve a lot through Ambalal Periodic Investment Practice

(PIP)

Little

by little…

Saving is income not spent or deferred consumption.

Methods of saving include putting money aside in a bank, Chits, Gold, Land and pension plan.

Savings

Do not save what is left after spending, but spend what is left after saving. - Warren buffett

Why Savings?

All individuals need to save for •Retirement•Child’s education / Marriage•Medical emergency•Other family obligations

Your above objectives can be fulfilled by the savings?

If you buy things that you don’t need then one day

you will have to sell the things that you need.

Inflation eating your savings

Is your savings enough to meet your future expenditure?

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

30 year average CPI is 8.83

Your Savings pattern:Fixed deposit : ? %Gold : ? %Land : ? %Insurance : ? %Equity : ? %Cash in Hand : ? %

Today 5 years 15 years 20 years0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000100000

78353

48102

37689 Do you have enough savings to beat inflation and maintain present lifestyle?

Performance of your different investment

With last 10 years average inflation of 6.89%, What's your real return on savings & investment?

Inflation Fixed deposits

Real estate Gold Equity0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

6.89% 7.28%

14.71%15.43%

18.48%

10 yr returns of different asset class as on 2011

Your Savings pattern:Fixed deposit : ? %Gold : ? %Land : ? %Insurance : ? %Equity : ? %Cash in Hand : ? %

Real Gain = Returns - Inflation

Smart savings: Indian or American?

Indians are having the highest saving rate in world but still we are poor. Why?

Americans are having the lowest saving rate in world but they are one of the richest country in world. Why?

Shares FD & RD Insurance Investment Non saving0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

11%

39%

15%

22%

13%

Indian Household Savings

Indians saving rate is 30 % and American’s saving rate is 4%.

Nearly 60% of savings are invested in stock market by Americans against 11% by Indians.

Source: Gallup Inc, SEBI, NCAER

Source: SEBI, NCAER

Investment in Equity

Only buy a share that you would be perfectly happy to hold if the market shut down for 10 years.

- Warren Buffett

x Meant for Corporate and HNIsx Short term/Long term in naturex Gamblingx Risky in naturex Too Complicatedx Don’t know how to invest x Markets are not right to start

Equity perceived as

Our Perceptions…

Is not a function of income i.e even you can invest Rs 1000 Is not a function of investment expertise Is really a matter of Regular Savings

Whereas creating wealth through equity..

See the picture and identify the various images

Timing doesn’t matter for long-term investment

Regular savings on stocks or Periodic Investment Practice (PIP) yields the return of 16.91%

Periodic Investment Practice (PIP) in Stocks

Fixed deposits are like 1 run & 2 runs in cricket; it is safe but not match winning tactic. PIP is a winning tactics in your financial match.

PIP – Periodic Investment Practice

PIP is an investment program that allows you to contribute a fixed amount in Stocks at regular intervals of weekly, monthly or quarterly.

Little drops of water form a mighty ocean

Why PIP’s?• Can avoid stock market volatility.• Systematic buying.• Cost averaging.• Easy to invest.• Power of Compounding

Benefits of PIP: 5 year returns

FD/RD Gold SIP Chit Mutual fund SIP (BHEL,LT,SAIL& SBIN) SIP

0%

500%

1000%

1500%

2000%

2500%

3000%

3500%

4000%

77% 162%237%

1159%

3375%

PIP in various asset class & its returns.

Just 3 years PIP in stocks gives the return of 3375 %Investment duration is 2000-2002. Returns are calculated during 1week of 2008.

Make Your money work hard

for you

Benefits of PIP : Returns as on 31st Dec 2013

Just 3 years PIP in stocks gives the return of 1491 %Investment duration is 2000-2002.Returns are calculated during 31st Dec 2013Little drops of money

IN STOCKS form an OCEAN

of wealth

FD/RD Gold SIP Chit Mutual fund SIP (BHEL,LT,SAIL& SBIN) SIP

0%

200%

400%

600%

800%

1000%

1200%

1400%

1600%

466% 507%

956%

1243%

1491%

Investment Clock

Generally, one economic cycle will takes 8-12 years to complete these all four phases.

Right now we are in trough phase which is same as the period of 2000-2003.

Indian EconomyTrough 2000-2003 Recession 2010-2012Boom 2003-2007 Trough 2013-2015Peak 2008-2009 Boom 2015-2019

PIP investment during next 2-3 years would give you the unimaginable returns

One should compulsory invest for next 2-3 years

PIP – Rupee Cost Averaging Nifty Levels Scenario 1 Scenario 2 Scenario 313-Dec 6200 620014-Jan 6100 630014-Feb 6000 640014-Mar 5900 650014-Apr 5800 660014-May 5700 670014-Jun 5600 680014-Jul 5500 690014-Aug 5400 700014-Sep 5300 710014-Oct 5200 720014-Nov 5100 730014-Dec 5000 5000 740015-Jan 5100 5100 750015-Feb 5200 5200 760015-Mar 5300 5300 770015-Apr 5400 5400 780015-May 5500 5500 790015-Jun 5600 5600 800015-Jul 5700 5700 810015-Aug 5800 5800 820015-Sep 5900 5900 830015-Oct 6000 6000 840015-Nov 6100 6100 850015-Dec 6200 6200 8600Avg Invest 5624 5600 7400

Stock market trading near the life time high. So, is it right time to start PIP?

Scenario 1 & scenario 2 implies that the investor who starts his investment right now has the same average price through PIP when compare to investor who invest at bottom.

Scenario 3 shows the risk of opportunity lost if stock market doesn’t falls to expected level.

But in scenario 1, the investor’s total net worth will be high since he is investing form Dec 2013.

Hence, invest earlier.

Invest Earlier

Manisha Vikram Starting Age 25 years 40 years Monthly PIP Rs.5,000 Rs.15,000 Saving Years till Age 60 35 years 20 years Total Amount Invested Rs.21 lacs Rs.36 lacs Wealth at Age 60 years Rs.12.62 crores Rs.98.44 lacs

A drop of

money forms an ocean

of returns

Rate of Returns: 16.91%

PIP in StocksIllustration

Past, Present & Future

BHEL- Comparison b/w 2000 and 2013

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BHEL 2000-2002

Rupees

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BHEL 2010-2013

The average price of BHEL traded between 2000-2002 was 15.15. during the year 2008 it has touched the high 586. Nearly 38 times or 3800 % returns.

Additional Income: Dividend.

Current Market price is 141. If we starts PIP now then our average price would comes between 120-160. When bull run starts BHEL may go to 500 or even 1000 rupee per share.

SAIL- Comparison b/w 2000 and 2013

The average price of SAIL traded between 2000-2002 was 6.75. during the year 2008 it has touched the high 293. Nearly 43 times or 4300 % returns.


Current Market price is 66. If we starts PIP now then our average price would comes between 70-50. When bull run starts SAIL may go to 300 or even 500 rupee per share.

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SAIL 2000-2002

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SAIL 2010-2013

Ru

pee

SBI - Comparison b/w 2000 and 2013

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SBIN 2000-2002

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3500

SBIN 2010-2013

The average price of SBIN traded between 2000-2002 was 214. during the year 2008 it has touched the high 2574. Nearly 12 times or 1200 % returns.


Current Market price is 1821. If we starts PIP now then our average price would comes between 1600-1900. When bull run starts SBIN may go to 6000 or even 8000 rupee per share.

L&T - Comparison b/w 2000 and 2013

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LT 2000-2002

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LT 2010-2013

The average price of L&T traded between 2000-2002 was 56. during the year 2007 it has touched the high 2345. Nearly 42 times or 4200 % returns.


Current Market price is 994. If we starts PIP now then our average price would comes between 900-1050. When bull run starts L&T may go to 5000 or even 7000 rupee per share.

PIP - MODEL INVESTMENT

NIFTY BeES

Benchmark Index S&P CNX Nifty IndexNSE Symbol NiftyBEES

BSE Code 590103Minimum Investment 2000Nifty Bees inception 28-Dec-01Investment Invests in underlying securities of S&P CNX Nifty IndexPricing (Per Unit) 1/10th of IndexMinimum Lot (Exchange) One UnitInvestment date 5th of every month Time Frame No limitMode of Payment Cheques (Post-dated) / ECSExit mode As per investor request

Advantage: • Low Risk• Well diversified• Mirror of Nifty 50 movement.

GOLD BeES

Benchmark Index Domestic Price of GoldNSE Symbol GoldBeESBSE Code 590095Minimum Investment 4000Gold Bees inception 8-Mar-07Investment Investment in underlying Physical GoldPricing (Per Unit) Approx. 1 gram of goldMinimum Lot (Exchange) One UnitInvestment date 5th of every month Time Frame No limitMode of Payment Cheques (Post-dated) / ECSExit mode As per investor request

Advantage:• Mirror of gold price.• Easy to buy or Sell.

High potential growth stocks for PIP

Sector Stocks PriceRs.5,000 PIP Investment

Rs.10,000 PIP Investment

Qty Amount Qty AmountFood processing ReiAgro 7.1 77 547 154 1093Banking - public Bank of india 176 3 528 6 1056Banking - private IndusInd bank 425 2 850 3 1275Power Generation NHPC 19.5 28 546 56 1092Engineering BHEL 140 3 420 8 1120Cements India Cement 48 9 432 22 1056Edible oils Guj Ambuja Export 25.7 20 514 41 1054Diversified Sintex Ind 36.25 16 580 30 1088Mining Coalindia 292 2 584 4 1168TOTAL 5001 10002

Investment Highlights:

In each sector, top 5 companies are chosen based on various fundamental and technical factors and we picked 1 high potential growth stocks in that sector.

Hence these stocks are industry leaders your risk is minimized.

By investing in 9 sectors your investment is well diversified.

Nifty High Weightage Stocks for PIP

Sector Stocks PriceCigarettes ITC 342Software INFOSYS 3320Refinaries RELIANCE 905Finance HDFC 813Banking HDFC BANK 669Banking ICICI BANK 1012Software TCS 2088Infra LT 936Automobile TATAMOTORS 381Oil & Gas ONGC 286Total 10752


An alternative to Nifty Bees.

The above 10 stocks contributes 57 percentage of weightage in NIFTY INDEX.

It other words, these stocks are trend indicator for nifty.

Investing in these stocks is merely equal to investment in NIFTY INDEX hence our risk is reduced.

Well diversified PIP investment.

Good Dividend Yield Stocks for PIP

Stocks PriceRs.5,000 PIP Investment

Rs.10,000 PIP Investment

Dividend Yield Qty Amount Qty AmountPNB 490 1 490 3 1470 5.51COALINDIA 293 2 586 3 879 4.78BHEL 146 4 584 8 1168 3.7CAIRNINDIA 332 2 664 4 1328 3.46ONGC 285 2 570 4 1140 3.32SAIL 62 8 496 17 1054 3.21Manappuram Finance 15.15 34 515 50 758 9.9Reiagro 7 78 546 157 1099 6.83Gujarat NRE Coke 13.75 40 550 81 1114 0TOTAL 5001 10009


The above 9 stocks are picked based on dividend yield, bonus and potential growth of company in future.

Selectively picked from various sectors.

Dividend and growth in stock price is expected.

Documents

Ambalal Shares & Stocks Pvt Ltd, No 163,Durga Bhavan II Floor, New Katpadi Road, Vellore - 04 Little by little… Make your money work hard for you