buy right...sit tight...wealth creation through equity

7/25/2019 Buy Right...Sit Tight...Wealth Creation through Equity

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Financial Planning

Vikas Agrawal ZonalHead

Motilal Oswal AMC


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COMMON ISSUES WITH EQUITYINVESTORS


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http://getricher.in/201/in!e"t#ent$%&$r"$10000$t%$r"$'('$cr%re"$in$($)e*r"/


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Introduction

C%ntent"

Planning Financial Planning (FP)

FP Pyramid


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Planning

Introduction


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Planningmeans looking ahead and chalking

out future courses of action to be followed

Examples:

- Preparation for competitie exams- Planning a acation

Introduction

Planning


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Financial Planning is the process of meeting

your life goals through the proper management of

your finances!

Examples of goals:

- "uying a house

- #igher Education

Introduction

Financial Planning


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$ealth

%istribution

(&ransfer what you hae)

$ealth 'reation(ccumulate)

$ealth Protection(Protect what you hae)

Introduction

Financial Planning Pyramid


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In!e"t#ent E+perience

Indian benchmark indices rise 100x in

30 years


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! end"ring 100x stocks o#er 1$$%&01

'ote( M"lti)les are based on stocks being bo"ght at the low )rice *or the res)ecti#e

year+ and held on to Mar%&01,

In!e"t#ent E+perience


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What we learn from history is thatpeople dont learn from history!!!


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,%-er& #*ntr* &%r ig We*th Cre*ti%n

-o make money in stocks yo" m"st ha#e

the Vi"i%n t% "ee the#the C%r*get% ) the# *n

the ,*tience t% h% the#

.atience is the rarest o* the

three

hi


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n%- thi" #*n3...He -% h*!e "ept in 14546

6thi" i" h%- he -%-*7e p t%*)6


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8e- i"c*i#er" *n c*ri9c*ti%n"

%ng ter# pr%"pect" %& e;it) *" *n *""et c*"" I#pr%!ing #*cr%" < %c* *n g%*

Me*n re!er"i%n &%r e;it)

We *re c%ncerne ec*"e %&

In!e"t%r eh*!i%r

In"tr) eh*!i%r

O h*it" ie h*r6re!erting t% % h*it"


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R%* t% We*th Cre*ti%n

E;it) Wh)3

E;it) Wh) n%-3

E;it) H%-3

E;it) H%- #ch3

E;it) itn* egi3


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/hy "ities is necessary#il2

Investing is foregoing current purchasingpower now for a greater purchasing power in

future.- Warren Bufett


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e) O=ecti!e %& In!e"tingnh*ncing ,rch*"ing ,%-er

O#er 4!$513 C.I in6ation has been 7,89+ eroding )"rchasing

)ower o* :")ee by $9

S%rce: Centre &%r M%nit%ring Ini*n Ec%n%#) >CMIE?@ M%ti* O"-* 8in*nci* Ser!ice" t >MO8S?@ A%%#erg@ M%ti* O"-*

B""et M*n*ge#ent C%#p*n) >MOBMC? Intern* Bn*)"i".

C.I ; Cons"mer.rice Index

In6ation erodes )"rchasing )ower o* money


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e) O=ecti!e %& In!e"ting:Enh*ncing ,rch*"ing ,%-er

S%rce: A%%#erg@ MOBMC Intern* Bn*)"i". .


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e) O=ecti!e %& In!e"ting:Enh*ncing ,rch*"ing ,%-er

E;itie" "igni9c*nt) enh*nce prch*"ing p%-er %& p%rt&%i%"

In6ation%ad


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?Market has gone @) % /hyIn#est 'O/ ?

e)ends what yo" areb"ying?

BMarket has gone ") 5 doesnot a))ly to all stocksDDD


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BIEm not a*raid o* being in the next &>9 downtick, IEm a*raido* MIFFI'G the next 1009 ")tick% One cannot time the

market,

-he great long%term risk o* stocks is not owning themD


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"ality

Val"ati

on

%- High

%-

High

Q*it) !". V**ti%n:Wh*t "h% -e A)3


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Q*it) St%c7" :%-n" *re te#p%r*r) p" *re per#*nent

0

200

00

F00

500

1@000

0

'00

1@000

1@'00

2@000

2@'00

C%rrecti%n"

HCank

-CF


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C%rrecti%n"

0

1000

2000

(000

000

'000

F000

G000

5000More pronounced in the Index

'i*ty

Q*it) St%c7" :%-n" *re te#p%r*r) p" *re per#*nent


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Th*n7 Y%

buy right...sit tight...wealth creation through equity

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