Investment Avenues to grow your wealth.

1. INVESTMENTS

2. Beating
Inflation
Saving for
Retirement
Putting Your
Money to
Work
Generates
alternate
source of
income
Meeting
Goals
Investment Creates Wealth
Leads to
Consumption
Why Invest?

3. Avenues for
Investment
Direct
Equity
Debt Mutual Fund Real Estate Gold
Avenues for Investments

4. Mutual Funds

5. Mutual Fund (usually called Asset Management Company) manages the pool of money
collected from various investors for investing in various classes of assets to achieve certain
financial goals.
Depending upon risk appetite, Investor can choose to invest purely in Debt Funds or Equity
Funds or a combination of both with the help of Mutual Fund.
Mutual Fund Schemes can be open ended or closed ended in nature.
Each and every fund carries an exit load.
Exit load is a fee or an amount charged from an investor for exiting a scheme before the
specified tenure.
Mutual Funds

6. Working of a Mutual Fund

7. Diversification
 Affordability
 Professional Management
 Liquidity
 Flexibility
 Performance Monitoring
STAY INVESTED FOR WEALTH CREATION
Why Invest in Mutual Funds?

8.  Through MF, you can offer multiple solutions to your customers Equity Funds –
For Long Term Wealth creation
 Gold Funds – Investors can buy Gold through MF route
 Liquid Funds – For short term investment needs (upto 3 months)
 MIP - Low risk hybrid product for medium term investors
 Capital Protection Funds – Capital Protection+ Additional Returns
 FMPs – Tax efficient investment option for FD customer
 ELSS Funds – For Tax Saving needs of customers
 SIP – Appropriate tool for Financial planning
 International Funds – For benefiting from growth in other markets
Mutual Funds : Product Basket

9. Systematic Investment Plan

10. Systematic Investment Plan
What is SIP?
Systematic Investment Plan (SIP) is an approach to investing
small amounts at regular intervals rather than investing lump
sum amount at one time.
Considered to be the safest way to invest into Equity
Markets by going the SIP route, Investor is not trying to
capture the Highs and lows of the market, but trying to
average the cost by investing at regular interval.
Concept is that, When the markets fall investor gets more
units. Likewise investor acquires lesser units when the market
goes up. This means that investor buys less when the price is
high and investor buys more when the price is low. Hence the
average cost per unit falls down over a period of time.

11. Accumulate Wealth
Build your investment at regular
intervals
Affordability
Build your future
Liquidity
Reduce Risks
Features

12. Power of
compounding
Rupee Cost
Averaging
Convenience
Tax Saving
Advantages

13. 2011 2012 2013 2014 2015
Power of Compounding
Systematic Investment Plan

14. WORKING OF SIP:
Suppose 'X' decides to invest in a
mutual fund through SIP. He commits
making a monthly investment of Rs
1000 for a period of twelve months
(starting 1st January 2006) in a fund
named 'ABC'. The payment can be done
by issuing twelve post-dated cheques of
Rs 1000 each or through ECS facility (if
available).
Date
Monthly
Investment
(a)
NAV
(b)
Number of
Units
(a)/(b)
Jan 1 Rs. 1,000 46.29 21.603
Feb 1 Rs. 1,000 48.08 20.799
Mar 1 Rs. 1,000 52.78 18.947
Apr 1 Rs. 1,000 56.36 17.743
May 1 Rs. 1,000 58.42 17.117
Jun 1 Rs. 1,000 56.42 17.724
Jul 1 Rs. 1,000 62.14 16.093
Aug 1 Rs. 1,000 67.58 14.797
Sep 1 Rs. 1,000 71.70 13.947
Oct 1 Rs. 1,000 76.19 13.125
Nov 1 Rs. 1,000 83.97 11.909
Dec 1 Rs. 1,000 89.92 11.121
SIP Working

15. Date
Monthly
Investment
(a)
NAV
(b)
Number of
Units
(a)/(b)
Jan 1’2006 Rs. 1,000 46.29 21.603
Feb 1’2006 Rs. 1,000 48.08 20.799
Mar 1’2006 Rs. 1,000 52.78 18.947
Apr 1’2006 Rs. 1,000 56.36 17.743
May 1’2006 Rs. 1,000 58.42 17.117
Jun 1’2006 Rs. 1,000 56.42 17.724
Jul 1’2006 Rs. 1,000 62.14 16.093
Aug 1’2006 Rs. 1,000 67.58 14.797
Sep 1’2006 Rs. 1,000 71.70 13.947
Oct 1’2006 Rs. 1,000 76.19 13.125
Nov 1’2006 Rs. 1,000 83.97 11.909
Dec 1’2006 Rs. 1,000 89.92 11.121
Brief Summary:
•Monthly Investment: Rs. 1000
•Period of investment: 12 months
(1st Jan 2006 to 1st Dec 2006)
•Total amount invested: Rs. 12,000
•Total number of units credited to 'X': 194.925
•Average cost/unit:
Rs. 61.5621 ( Rs.12,000/194.925)
SIP Working

17.  ELSS, an acronym for Equity Linked Savings Scheme, which is a Tax
Saving Mutual Fund Scheme.
 ELSS mutual funds in simple term are mutual fund schemes
maintaining a minimum of 65% of their investments in equity.
 Open-ended scheme.
 Returns from an ELSS fund are market related and has a lock in
period of three years..
 Investors get the Tax Benefit on the amount invested as per the
Income Tax Act’1961.
 Lump sum, Systematic Investment Plan and Systematic Transfer
Plan options are also available.
About ELSS

18. • Equity oriented funds are exempt from long term capital gain tax and any capital
appreciation in equity oriented funds after 1 year is tax free.
• Tax Free Dividend in the hands of the investor.
• Shorter lock in period of 3 years as compared to other traditional tax saving vehicle.
• Investors are eligible for claiming Deduction up to Rs. 1.50 Lakh from there Income under
section 80C of the Income Tax Act’1961.
• Potential for Higher Returns.
• Flexibility to invest small amounts through SIP and STP
• Two benefit of Saving Tax and Capital Appreciation.
Benefits of ELSS

19. Scheme Name ELSS Tax Saving FD PPF
Installment Amount (Every Year) 1,50,000 1,50,000 1,50,000
Number of Installments (in Year) 15 15 15
Total Amount Invested 22.50 Lakhs 22.50 Lakhs 22.50 Lakhs
Fund Value as on (March-2014)
Approx.
1.17 Crs 47 Lakhs 47 Lakhs
CAGR (%) 18.96% 8.70% 8.70%
Amount (in Rs.)
Tax Saving Investment Comparison

20. Particulars Without ELSS/80C
Tax Saving Investment
With ELSS/80C
Tax Saving Investment
Gross Total Income Rs.7,50,000 Rs.7,50,000
Invested under Section 80C Nil Rs.1,50,000
Net Total Income Rs. 7,50,000 Rs. 6,00,000
Tax on Net Total Income Rs.75,000 * Rs. 45,000 *
Tax Saved on Investment Nil Rs. 30,000
What’s the impact on Tax when you invest in ELSS and on the
other side ignore investing in ELSS!
* Tax on Net Total Income is excluding cess @ 3%.
ELSS
Tax Implication

21.  Provides Diversification
 Risk Mitigation
 Most efficient Tax Saving Scheme.
 Provides Long-term Investing discipline.
 Serves the purpose of both Investing Money and Saving Tax .
To Conclude….

22. Disclaimer: Mutual Funds and securities investments are subject to market risk and there can be no assurance or
guarantee that the objectives of the Schemes will be achieved. Please read Offer Documents (OD), Scheme
Information Document(s) (SID) and (SAID) statement of Additional Information Document carefully. This document
is for information only and is meant for the use of the recipient & not for circulation. The information contained in
this document has been taken from publicly available information, trade and statistical services & other sources.
While the information contained herein is from sources believed to be reliable, we do not hold ourselves
responsible for its completeness and accuracy. All opinions and estimates included in this report constitute our
judgment as of this date and are subject to change without notice. Investors are expected to use the information
contained in this report at their own risk. This report is not and should not be construed as an offer or the
solicitation of an offer to buy or sell any securities. M/s Latin Manharlal Securities Pvt. Ltd. and its affiliates may
act as market maker or have assumed an underwriting position in the secure-ties of companies discussed herein
and may sell them to or buy them from customers on a principal basis.
Disciplined Investments Leads To Creation
Of Wealth

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