By- Suyog ( CSS, Cash)

Human Life Cycle

EducationEducation Earning YearsEarning Years

Cycle ICycle I Cycle IICycle II Cycle IIICycle III

Age- 25 yrsAge- 25 yrs Age- 60 yrsAge- 60 yrs

25 yrs25 yrs 40 yrs40 yrs 10- 20 yrs10- 20 yrs

Post Retirement Years Post Retirement Years

Cycle II: The Most Crucial Phase Meet current recurring expenses

• Rent, Electricity, Telephone

• Child’s education, Child’s marriage

• Annual Holiday with family….

Build capital assets• House; Car….

Make provisions for• Retirement ; Contingencies- Illness, Accidents, etc.

Do you save and invest so that your dreams turn into reality

Investment???

Money we earn is partly spent and rest saved for meeting future expenses

Instead if keeping the saving idle we like to use saving in order to get return on it in the future….

Saving =Investment

Return??

Interest Capital Appreciation When we borrow money we are expected

to pay for using it…Amount charged to borrower for using

lender’s money…Bonus shares, etc…

Dreams & Future????

Go for Investment………

Investment Options..

Real Asset

Gold

Commodities

Physical Assets

Investment Options.. Financial Assets

Shares, Bonds, Etc..

Fixed Deposits with Banks

Post Office Schemes ,PF, Pension Fund

Mutual Funds

Insurance

Having Understood how Important is financial Planning Now The Big Question ??

Which Investment Option should I take ????

Stocks

Bonds

Bank Deposits

Real Estate

Gold

OR

All of them in just one Investment Vehicle

Mutual Funds….

A Mutual Fund is a pool of the savings of a number of investors who share a common financial goal.

The money thus collected is then invested in capital & money market instruments such as shares, debentures, securities, Treasury Bills etc…

The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them.

Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.

Mutual Fund Cycle

Types of Schemes By Structure

• Open Ended Schemes

• Close Ended Schemes

• Interval Schemes By Investment Objective

• Growth Schemes

• Income Schemes

• Balance Schemes

• Money Market Schemes Tax Schemes

• Tax Saving Schemes Special Schemes

• Index Schemes

• Sector Specific Schemes

PERFECT COMBINATION OF RISK & RETURN

MF Industry in India and some facts

100 % growth in the last 6 years. In the period still it is maintaining stability Number of foreign AMC’s are in the que to enter the Indian Markets Our saving rate is 23% highest in the world We have less number of MF in comparisition to US, they are having

800 MF companies so there is big scope for expansion B and C class cities are growing rapidly today most of the MF

concentrating on only A class cities. MF can achieve the success like Insurance in rural sector if they bring

simple and limited scheme for them. Emphasis on better Corporate Governance Introduction of Financial Planner who can provide need based advice.