1. B'MAP Financial Services

2. Contents 3. Concept of Financial Planning

Financial planning

Identifies all the financial needs of a person

Translates the needs into monetarily measurable goals

These goals can be short term, medium term and long term

Plans the financial investments that will allow these goals to be met.

4. Depreciating Value of Money 5. Appreciating Cost of Living 6. Real Return On Investment

The above said couple of pictorial representations are derived and designed taking into consideration,5.5% as the rate of inflation, which depict:

Value of Money which is not invested depreciates @ 5.5% YOY.

At the same, time cost of living gets appreciated @ 5.5% YOY.

As a result, a Real Return on Investment is achieved only if it outshines the above said effects of inflation.

Therefore, the need of the hour is not just to invest, but toInvest Intelligently.

To invest intelligently requires,careful planning and analysis.

We @BMAPsteer you in identifying the right avenues to invest in, where theReturn On Investment is REAL.

7. Life Cycle Stage Guide 8. Benefits of Investing Early 9. Investment Avenues - Comparison 10. Asset Types

Physical & Financial Assets

Guaranteed & Non Guaranteed investments

Physical Assets Gold & property

Financial Assets products offered by -

Banks

Corporate

Financial Institutions

Government PPF, RBI relief bonds, NSC, government securities

Life Insurance

11. Asset Allocation

Asset allocation is the process of how an investor distributes his or her investments among various classes of investment vehicles-such as,

• • Stocks

• • Bonds

• • Insurance

• • Real Estate

• • Commodities

12. What is a Mutual Fund?

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

The money thus collected is then invested in capital market instruments such as shares, debentures and other securities.

The income earned through these investments and the capital appreciation realized is 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.

13. MF -Operations Flow Chart INVESTORS FUND MANAGER SECURITIES RETURNS Passed back to Pool their money with Invest in Generates 14. Portfolio - Sample Grand Total 100.00 Other Derivatives, Cash Receivables 22.66 Preference Shares, Warrants, Debt, And Equity Less Than 1% of Corpus 3.62 Oil & Natural Gas Corporation Ltd 1.07 Bharat Forge Ltd 1.23 Triveni Engeering And Industries Ltd 1.09 Gammon India Ltd 1.28 Deccan Aviation Ltd 1.47 Larsen & Toubro Ltd 3.58 Patni Computers System Ltd 1.57 Grasim Industries Ltd 3.99 Television Eighteen India Ltd 1.66 Infosys Technologies Ltd 3.99 Siemens Ltd 1.85 Maruti Suzuki India Ltd 4.09 Alstom Projects India Ltd 2.04 Reliance Communications Ltd 4.42 Hindalco Industries Ltd 2.33 ICICI Bank Ltd 4.78 Indian Hotels Co Ltd 2.36 State Bank of India 5.02 Reliance Infrastructure Ltd 2.60 Reliance Industries Ltd 5.91 Tata Motors Ltd 2.99 Divis Laboratories Ltd 7.67 Tata Steel Ltd 3.23 Equities 77.34 Tata Consultancy Services Ltd 3.51 Holdings Weightage (%) PORTFOLIO OF RELIANCE VISION FUND 15. Sector Allocation - Sample 16. Mutual Fund Classifications

Equity Mutual Fund

Debt Mutual Fund

17. Equity & Debt - Definition

Equity fundsinvest in shares or equity of companies with a potential for growth and capital appreciation. They invest in well-established companies where the company itself and the industry in which it operates are thought to have good long-term growth potential.

Debt funds or fixed income fundsinvest in government or corporate securities / bonds that offer fixed rates of return. The goal of fixed income funds is to provide current income consistent with the preservation of capital.

18. Risks to be offset..

DownsideRiskin Equities

Riskof Market Volatility

Riskof Market Timing

19. Advantages of Mutual Funds

Diversification

Professional management

Reduction in risk

Reduction in transaction cost

Liquidity

Convenience and flexibility

20. Returns - Equity and Debt

Past performance of the diversified equity mutual funds has delivered close to 25% annualized returns.

Debt FMP can outperform Bank FD by atleast 2.5% in terms of incremental revenue.

21. Stock Markets & Returns 22. Index Vs MF 23. Tax Benefits

Dividends declared by debt-oriented mutual funds (i.e. mutual funds with less than 65% of assets in equities), are tax-free in the hands of the investor.

However, a dividend distribution tax (which varies for individual and corporate investors) is to be paid by the mutual fund on the dividends declared. Dividends declared by equity-oriented funds (i.e. mutual funds with more than 65% of assets in equities) are tax-free in the hands of investor. There is also no dividend distribution tax applicable on these funds. Diversified equity funds, sector funds, balanced funds (with more than 65% of net assets in equities) are examples of equity-oriented funds.

The amount invested in tax-saving funds (ELSS) is eligible for deduction under Section 80C, however the aggregate amount deductible under the said section cannot exceed Rs 100,000 (in a financial year).

24. Current House Hold Savings Pattern 25. At BMAP We 26.

The core objective of BMAP Financial Services is to provide financial planning for individuals,corporates and ensure they maximize their wealth, thereby achieve their financial objective.

Financial Planning is an exclusive profession which squeezes out the maximum Return On Investment for the investor. Everyone will have their own ideas, plans and convictions on their personal finance based on their knowledge, but we have taken up financial planning as our profession, passion and we possessthe expertise, in-depth knowledge and experience in financial planning.

BMAP Financial Services 27. BMAP Financial Services #73-F1, II Main Road Alwarthirunagar Annexe Chennai 600087 Primary Contact : S. Arunramalingam Phone:+91 44 23772232 HP :9382605432 e-mail:[email_address] Contact us 28.