INFLATION

RISING INFLATION...

Inflation means

rising prices of all

the items, which

we consume in

day to day life..

What is the average inflation ratein India in last 5 years?

A.B. C.D.

5%7%8%10%

INFLATION

A.B. C.D.

5%7%8%10%

INFLATION

What is the average inflation ratein India in last 5 years?

A.B. C.D.

5%7%8%10%

INFLATION

A.B. C.D.

5%7%8%10%

INFLATION

INFLATIONHow many of you have Savings

Account / Current Account in bank?

What is the rate of interest in Savings Account/Current Account?

But What is Net Returns?

Net return = Interest – Inflation

Savings Account = 4% - 8% = -4%Current Account = 0% - 8% = -8%

How to Beat Negative Returns?

Invest in bank FD, Equities, real estate, gold etc.?But money lying in SB/CA is for daily use and not for

investment

Also, there is a risk in investing in equities and gold &

charges on bank FD

What needs to be done then?

Is There Any Alternative ?

Should be able to generate returns close to/better than inflation

Should have low charges

Should have least risk as compared to other products

Should be easy to transact (to deposit and withdraw money)

An alternative to SB/CA should have following qualities

An alternative o SB/CA should have following qualities

IntroducingLiquid Funds

What is a Liquid fund?

Liquid Funds are mutual fund schemes, which invest in

very short term commercial papers (CP), Certificate of

Deposits (CD), Treasury bills etc.

There are no entry/exit charges.

Can invest as low as Rs. 10,000.

Minimum investment period is 1 day.

Liquid Funds DO NOT invest in Equity Markets or Gold.

Highly liquid, money is credited back to your bank

account in 1 day.

Performance of Liquid Funds

Liquid funds have been delivering more than 8% returns to

investors.

In comparison, SB returns are 4% while Current Account offers

0% return.

With such a high return differential selling liquid funds become

far more easier to retail investors.

Scheme Name 1 Year 8.68 9.33 8.64 8.75

10.21 10.63 9.56 9.668.37 9.06 8.34 8.48

30  Days 90  Days 180  Days Birla Sun Life Cash Manager - Growth Kotak Flexi Debt Scheme Plan A - Growth DSP BlackRock Money Manager Fund Gr

Returns on lumpsum investment as on 31 May 2013Returns on CAGR basis

What Extra with Liquid?

Income Earned in 1 Year Additional Income

50,000 2,000 0 4,000 2,000 4,000100,000 4,000 0 8,000 4,000 8,000500,000 20,000 0 40,000 20,000 40,000

* Assuming returns of Savings Bank A/c at 4%, Current A/c at 0% and liquid funds at 8%

Average Balance

Savings Account

Current Account

Liquid Funds

Savings Account

Current Account

Mutual fund investments are subject to market risks. Past performance is no guarantee of future returns.

Is it Safe to Invest ?

You invest in MF schemes which are under the purview of SEBI.

Only 44 companies in India in MF space. Renowned companies like HDFC, Reliance, Kotak,

Birla, DSP, ICICI, Tata etc. in the MF business.

MF Regulations

Liquid Funds

Money invested in very short term instruments. Extremely low/negligible interest rate risk. Transparency of NAV and returns.

What are the Charges in Liquid Funds?

There are no charges for entry/exit in liquid funds.

There is a fund management charge in the scheme,

which can vary from 0.50% to 0.75% depending from

scheme to scheme.

The returns highlighted in the performance earlier are

net of charges to the investor.

Can I Invest Even for 1 Day ?

Yes you can.

You will get return even for 1 day.

Also, minimum amount of investment also starts from as

low as Rs. 10,000!

Liquid funds are for everybody and not just for the wealthy.

TaxabilityReturns from liquid funds are taxable as follows:

Short Term Capital Gain (STCG)For investments of less than 1 year, the income is taxable according to the tax slab of the investor.Long Term Capital Gain (LTCG)For investments of 1 year and above, the income is taxable at 10% flat or 20% with indexation .

It is advisable to invest in the Growth option, unless you fall in the highest tax bracket.

For Growth Option

For Dividend OptionIn case you invest in Dividend option, there is a Dividend Distribution Tax at 28%

Money Lying idle in your SB/CA on the following counts

Which Money Should be Invested in Liquid Funds?

Your EMI is due on 25th of the month & you maintain the balance for the same for the whole month.

School fees of your kids is due on a quarterly/half yearly basis, but you keep it in your account.

Your salary gets credited on 3rd of the month & you withdraw money over the period of the month.

If you are a businessman & have a cash balance in your lean season.

Money Lying idle in your SB/CA on following counts

Which Money Should be Invested in Liquid Funds ?

If you recieve a bulk payment and are not having any fresh purchase lined up in coming 3-4 days.

You sold a property and got the payment for it in your account.

You are about to buy a property & payment is due after 5-10 days.

Any additional balance lying in your account above the minimum balance required in the bank.

How to Invest in Liquid Funds?

Investing in liquid funds is easy. You can invest through NJ TADA

Online Mobile Call & Transact

Fast & accurate way of transaction

Transaction from anywhere (Online & on call)

Payment through registered VISA debit card - any bank

8 largest banks available through net banking.

Saves time & efforts

Transaction confirmation via e-mail / SMS @

'Invest Easy' - Convenience at your FingertipsOnline Purchase

Login to your NJ Trading Account Select the fund Make Payment through net banking/

debit card Your investment is completed in less than

a minute

Online Sell Login to your NJ Trading Account Select the fund to redeem Your transaction is completed in less than

a minute Money gets credited to your bank account

the next day

'Invest Easy' – Convenience at your FingertipsMobile Application (Blackberry, Android, ios)

TransactionRedeem & SwitchPurchase, SIP, STP

Mode of Payment -

Pre registered ECS mandate

BenefitsAccess anywhere 24*7High Speed

'Invest Easy' – Convenience at your Fingertips

Call N Transact – 0261 3987500

How to Transact

Call on the CNT number.

Confirm your access details.

Execute your transaction

(Purchase/Sales/Switch) in

less than a minute!

“Invest Easy” – Convenience at your fingertipsGreat Convenience of Transaction.

Access anywhere

24*7

Multiple channels of transaction

(Online, Mobile, Call Center)

Multiple modes of payments

(Net banking, Debit Card, ECS Mandate)

High speed & accuracy

NO form filling

Transaction conformation on SMS/E-mail

What to Do Now ?

Contact your Financial Advisor Open your NJ Trading & Demat Account Start enjoying benefits of Liquid Funds !!

Be a smart investor. Let your money make money for you!

Contact your Financial Advisor

To change the way you invest