inestment plan

8/18/2019 Inestment Plan

1/17

Investment Planning

By

Suraj S. Kapur CFPSuraj S. Kapur CFP

CMCM

,,

Financial Planning Academy (FPA)Financial Planning Academy (FPA)


2/17

Agenda

Investment Planning Basics


3/17

Golden Rules of Investin Rule1: Investment and Speculation are 2 entirely different

Rule2: Do not Disregard the Investment Time Horizon

Rule3: Asset Allocation is Im ortant

Rule4: Understand the Investment Tripod

Rule5: Systematic Investment is Good For You

u e : ou can con ro s

Rule 7: Never forget the 3 reliable truths of EquityInvestment

Rule 8: Take some trouble to equip yourself with basicknowledge about investment

….


4/17


5/17

Golden Rules of Investin Investment: is the purchase of an

asset for the conservation of wealthand the increase of wealth, with theemphasis on the conservation of

wealth.

Speculation: is the purchase of an

asset or the conservation o wealthand the increase of wealth, with the

emphasis on the increase of wealth.


6/17

Golden Rules of Investin

, .

Speculation is hazardousinvestment.


7/17


,

goes against an investmenttime horizon.


8/17


Rule Two:Do not disregard

time horizon.


9/17

is a time element attached to

every investment, which if

,

and delivers optimum

returns.


10/17

Investment Alternatives

Non marketableFinancial Assets

Equity

Debt InstrumentsMoney Market

Instruments

Mutual Funds Life Insurance Policies

Real Estate Precious Objects

Derivatives


11/17

Bank deposits

Post office savings accounts Post office time deposits (POTDs)

Post office monthly income scheme(POMIS)

Kisan Vikas Patra KVP

National Saving Certificate

Provident fund deposits

Em lo ee Provident Fund Schemes EPF

Public Provident Fund Scheme (PPF)


12/17

Deposits in scheduled banks are due to regulations by RBI and

100,000) per depositor per bank) There is a ceiling on interest rates payable on deposits in

savings account (currently it is: 3.5%)

Interest rate on Fixed deposits varies with term of deposit. Forshorter term, interest rate is lower, and for longer term, interest

rate is higher an epos ts en oy g qu ty. t raw premature y a

portion or whole of FD’s, with interest rate corresponding toperiods of deposit. Also we have flexi accounts (FDs with ATMfacilit

Loans can be raised against bank deposits

For savings bank accounts, banks calculate interest on theminimum de osit between 10th and last date of month. Tomaximize returns on savings account is to treat it like current

account between 1st

& 10th

, and a fixed deposit for rest of themonth


13/17

A/c can be opened at any post office

Single adult or 2/3 adults jointly can open a/c Interest rate is decided by Central government

from time to time, w.e.f 1.3.2001 It is 3.5% per

annum Interest is tax exempt

In case of ordinary account Minimum First

deposit is Rs. 20, for checking a/s it is Rs. 250 Maximum balance in single a/c Rs. 1,00,000;

or o n a c s. , ,


14/17


Accounts can be of 1 year(6.25%p.a),2year(6.5%p.a),3year (7.25% p.a) & 5 year(7.5% p.a)

Interest rate calculated on quarterly compounding basis

with interest payable annually, so effective rate is muchg er

Minimum amount is Rs. 200, No max limit

.Between 6 months-1 year, no interest is payable. After 1year, interest is paid for the period deposit is held,

Since AY08-09, POTD comes under Section 80C Taxbenefit


15/17

Post office monthl income scheme A/c can be opened at any post office

ng e a u or a u s o n y can open a c

Single account minimum Rs. 1000/ (max Rs. 3 lacs) oroint account max Rs. 6 lacs can be o ened max Limitsare before 1st August 2007]

Since 1

st

August 2007, Single a/c max Rs. 4.5 lacs, Joint. .

Maturity period is 6 years

Interest rate is 8% p.a, payable monthly

Before 10th February 2006, 10% bonus on maturity From August 1 2008, 5% bonus on maturity

No 80C Tax benefit is available


16/17


Single adult or 2/3 adults jointly can open a/c Period of maturity is 5 years

60 monthly equated payments in multiples of

Rs. 5 subject to minimum of Rs. 10 On investment of Rs. 10 for 60 months, the

maturity amount is Rs. 728.90

Premature closure available after expiry of 3years, at interest rate applicable to post office

sav ngs accoun


17/17

An adult, minor, trust or joint owners can

purchase Available at any post office

Maturity period is 8 years 7 months I.e

Money doubles in this period No 80C tax benefit for KVP

Certificates are available in Rs. 100, Rs. 500,

Rs. 1000, Rs. 5000, Rs. 10000, Rs. 50000. Premature withdrawal is allowed after 2.5 years

.

inestment plan

Documents