personal investment capsule 1new

7/31/2019 Personal Investment Capsule 1New

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Personal Financial Investment

Girish Sawant


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Disclosure


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What is mean By Investment


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Investment

Stock Market

Charity

Mutual fund

Real Estate

Study

Physical

exercise

LifeInsurance

Job

Performance


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Definition

Investing is a actions to reap the benefit in

future.

Financial

Intellectual

Mythological

.so on


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Entering in Financialinstrument to reap thebenefits in the future

February 7,

2007

Financial Investments

Saving is not investment if it is not

with above intention, it is liquid asset

available for investment


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Behavioral Finance

is the study of how emotions and cognitiveapproach affects decision in financial

affairs


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Why to Invest - ERODING of Capital

Future Cost

Future Value100

105

118

130

145

160

178

200

10 0

110115

12 5

13 3

16 0

17 0

18 0

90

110

130

150

170

190

210

2001 2002 2003 2004 2005 2006 2007 2008

Prchasing Power Future Value


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Dont let it happen!!!!!!!!!!!!!!


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Comfort Levels / Savings Commitments

Resources / Incomes

Investment

Allocation Process Delays


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Success in investing doesntcorrelate with IQ once you

are above the level of 25.

Once you have ordinary

intelligence, what you need

is the temperament to

control the urges that get

other people in to trouble in

investing.

- Warren Buffet

What do you need to be successful Investor

It means intelligence is not directly proportional to successful investor


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." Sir Isaac Newton, one of the world's mostrenowned physicists, in 1720, after he lost in

stock market when the South Sea Trading

Company, in which he was an investor,

tanked.

Many of the investors in that company werewiped out. Newton had foreseen a stock

market crash and sold his shares early, for a

profit of 7,000 pounds.

Afterwards, however, Newton watched as

the bubble kept inflating and he bought more

shares. Unfortunately, he lost more than

20,000 pounds, which was a huge amount in

those days.

Wanna Challenge ???????????????


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Method of Investments

Intellectual

Physical

Emotional

Informed


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Liquidity

Term/ Time

Horizon

Type of

Returns

Risk

Open/Closed

Ended

Investment Instruments

Moveable /

ImmoveableType


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Investment is a Individual plan

Investment is a Individual plan which will vary dependingupon

Age

Liabilities

Capacity to earn/ lose


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Different Vehicle for Different Plan

Tractor & Truck

Distance - 800 K.m.

Load 8 T

Priority Medium

Cost of Transportation

Truck Rs.15/ KM

Tractor- Rs.8/ KM

Preferred Truck

Tractor & Truck

Distance - 80 K.m.

Load 12 T

Priority LOW

Cost of Transportation

Truck Rs.15/ KM

Tractor- Rs.8/ KM

Preferred Tractor


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Strategy Of Investments

Long

If one were to buy an investment product and ahold it.

Short - If one were to sell an investment product and thenbuy it

Trading - - If one buys & then sell an investment product

SpeculationInvesting in expectation sporadic

rise/decline in near future.

Hedging

Investing using the method of buying andselling different instruments at same time to ensure

profit.


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Prospect Theory


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Mental accounting

Prospect Theory

Loss aversion/Sunk Cost

Decision Paralysis

Endowment effect

Informed


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Challenging the Myths

I know the proper /exact value

I do not want to take risk hence I kept in savingaccount.

I am reasonably insured

Equity Exposure should be ( 100- age ) %

NFO means Cheap purchase

Dividend plans are better than growth

SIP is suitable for all


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Plan of actions


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Thank You

Happy

Investing

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