Upload
iria
View
30
Download
1
Embed Size (px)
DESCRIPTION
Plan for your future. Rs. 92,800/-. Rs. 26.5 lakhs. Rs. 1.33 Crores. Believe it or not ……… After 20 years. After 20 years…. “Once upon a time”. Your today’s monthly grocery bill of Rs 35,000 will become…. An IIM degree for your child which costs Rs. 10 lakhs today will cost……. - PowerPoint PPT Presentation
Citation preview
1
I. Plan for your future
2
Believe it or not ……… After 20 years
Your today’s monthly grocery bill of Rs 35,000 will become…..
An IIM degree for your child which costs Rs. 10 lakhs today will cost……
Rs. 92,800/-
Rs. 26.5 lakhs
Assuming inflation @ 5% p.a
Your dream home which costs Rs 50 lakhs today will be more dearer to you
Rs. 1.33 Crores
After 20 years…. “Once upon a time”
3
92,865
72,762
57,011
44,67035,000
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
Today 5 10 15 20
37,689
48,102
61,391
78,353
100,000
-
20,000
40,000
60,000
80,000
100,000
120,000
Today 5 10 15 20
Prepare yourself to spend more on your favorite items in future…
Because somebody is continuously eroding the value your money, without
letting you know
Worth of Rs. 100,000 after 20 years
Amount required to maintain the same lifestyle as today
after 20 years
“Worthy today” becomes “Worthless tomorrow”“Affordable today” is “Unaffordable tomorrow”
Life will never be the same again…
Assuming inflation @ 5% p.a
4
Therefore you need to save for….
Capital Assets- House, Car
Medical emergency
Child’s education / Marriage
Other family obligations
Post Retirement expenses- To maintain at least present standard of living
Every individual has one or more of the above goals
5
Time and Tide waits for none…. Everybody has limited time to Save
Time to SaveEarnings
Consumption
Savings
Education Earning YearsAge- 22 yrs Age- 60 yrs
22 yrs22 yrs 38 yrs38 yrs 10- 20 yrs10- 20 yrsPost Retirement Years
6
Have you planned for your future
7
Some people work for money
While Some make money work for them!!!
Which category would you prefer
8
Writing on the wall… “Disciplined Approach” can lead to Wealth Creation !!!
Retiring Rich is simpler than you think !!
Start Early1
Invest Regularly
2
Don’t time the Market
3
Identify the best Asset Class
4
Let time be on your side5
9
Rule is “Early to bed, Early to rise makes a person Healthy, Wealthy & Wise”
YouAge : 25 yearsStart: TodayInvest : 5 yearsAmount : Rs 5000 p.a.
Your FriendAge : 25 yearsStart : at age 40Invest : 20 yearsAmount : Rs 5,000 p.a.
Note- Returns are assumed to be 10% p.a.
0.05 0.341.75
4.53
0.050.88
11.76
3.15
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
25 30 40 50 60
Age (in years)
Val
ue o
f Inv
estm
ent
(Rs.
Lak
h)
You start investing Your Friend starts investing
You stop investing
So why are your investments an exception to this rule
10
Because Time is ticking & every second counts.. Delays affect Wealth Creation….
It Always Pays To Start Early & Save For Your Retirement
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
25 30 35 40 45 50
If you start investing when you are (years)
(Rs.
Lak
hs)
Investment Gains from Investment
Rs. 1000 invested p.m. @ 10% p.a. till the age of 60 yrs
2.14.27.7
13.4
22.8
38.3
Just 5 years of delay reduces the wealth by
half!!!
11
Invest Regularly – Let the 8th Wonder work in your favor
70 lakhs
15%
23 lakhs
8 lakhs
5% 10%Rs.1000 invested every month for 30 years
Even small amounts invested regularly can grow substantially
“Compound Interest is the Most Powerful force in the Universe” …Albert Einstein
12
And please don’t predict the “Unforeseen”
Source: ICRA MFIE
“Time in the market” is more important that “Timing the market”…
“Predicting the market a folly”
Investing in the BSE Sensex – 26 years
Hope that you get it
right more
often than not!
19.11%
Fixed investment atlowest sensex value
every year – Best day to buy
17.19%
Fixed investment on 1st day of every month
17.13%
Fixed investment athighest sensex value
every year – Worst day to buy
13
Identify the best asset class
Source : CLSA
19.0
7.1
8.5
4.0
8.0
0.0 5.0 10.0 15.0 20.0
Equity
Gold
Bank FD's
Inflation
G-Sec
1980
- 200
7
%
CAGR
19.0%
8.0%
4.0%
8.5%
7.1%
Equities have outperformed all other asset classes in the long run – Globally as well as in India
14
Equities: Not risky in Long Term
As the time horizon increases, the probability of loosing money decreases
36 64
19 81
13 88
14 86
5 95
- 100
- 10 20 30 40 50 60 70 80 90 100
1
3
5
7
10
15
Inve
stm
ent H
oriz
on (Y
ears
)
Probability of Loss Probability of Profit
Invest for Long term…. Let Time be on your side
Source : BSE Sensex
15
Is India an attractive destination?
Fundamentals still in place
By 2032, India will be world’s third largest economy, next only to the U.S. and China
Large pool of English speaking skilled labor available leading to MNCs setting facilities, generating employment
Significant rise in the income levels continuing India on the consumption led growth trajectory
India remains attractive to Foreign Investors as indicated by strong FII flows
Inflow of Domestic savings to further drive the markets as equities continue to enjoy tax benefits
Indian corporates increasingly target world market – exploiting low cost base
Largest section of population in the age bracket of 20 – 60 yrs , which is the largest consumer group
Structural shifts in the population pattern will lead to India’s growth inline with global trends
Source : Brics Report