investment planning for young investors

8/16/2019 Investment Planning for Young Investors

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A Workshopon

Sponsored BySecurities and Exchange Board ofIndia (SEBI)

Financial Planning for Young In estors

Presented By

!r" Su#at $ain (SEBI%esource Person)


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A &rief a&out SEBI• In ' the Securities and Exchange Board of

India (SEBI) *as esta&lished &y the+o ern#ent of India"

,he &asic o&-ecti es of SEBI are .

• ,o protect the interests of in estors insecurities/• ,o pro#ote the de elop#ent of Securities

0arket/

• ,o regulate the securities #arketAddressSEBI Bhavan, C- 4A ‘G’ BlockBandra Kurla complex, Bandra (E!um"a#-4$$$%&


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P1%P2SE 2F ,3EW2%4S32P

,o Educate and ,rain the Participantsa&out Sa ing and In est#ent0atters for their 5nancially safe and

secure life"After co#pletion of this session you*ill &e a&le to educate your Fa#ily0e#&ers6 %elati es6 colleagues andstudents a&out sa ing andin est#ent #atters"

You *ill also &e a&le to run 5nanciala*areness ca#paign in the society"


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LIFESTAGES


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o* #uc s ou sa e or #yretire#ent7

• Sa e at least '89 of your take

ho#e salary for your retire#ent ifyou are starting at :8 years"

• For e ery year you delay6 add a&out

'9 in your :;s and :9 in your


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,he =;>


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,he =;?:;?'; %ule to Sa e 0oney

,he =;?:;?'; %ule• One easy way to sa#e is to fo ow the ()-*)-+)

,u e' i#ide your income in the fo owin. manner/• =;9 for li ing expenses "rent$ food$ c othin.$

fue &• :;9 for sa ings

– ';9 for retire#ent %ension – 89 for e#ergencies "car re%airs$ medica e0%enses$

unem% oyment& – 89 for speci5c goals "#acation$ car$ schoo tuition$ a

new com%uter&• ';9 for de&t "student oans$ car %ayments$

credit cards&


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Budgeting. Prioritizing the needs!

• iscuss the de#ands andprioriti@e the# on the basis ofim%ortance and ur.ency'

• eeds are &asic necessities onecannot wish away' For e0am% e insummer fan becomes a need'

• Wants #ake your life co#forta&le'An air conditioner makes ife morecomfortab e in summer'


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Budgeting

• Budgeting is the %rocess oftrackin.$ % annin. andcontro in. the in5ow andout5ow of money

• In o* of #oney 6 income

• 2ut o* of #oney 6e0%enses


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Budgeting. CetDs 5rst learn fe*ter#s a&out Budgeting

• Budget. A % an for ba ancin. ofincome and e0%enditures or a%ro7ection of one8s income and

e0%enditure'• Budget surplus 9ro7ected income: 9ro7ected E0%enditure

• Budget de5cit 9ro7ected income ;9ro7ected E0%enditure• ashG o* State#ent. A record of

your income and e0%enses'


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ecessity of Budget

• O%timiS%endin.8'

• Sa#e accurate y for a %articu arshort? on. term .oa '

• E@ecti#e y a ot funds to #arious areas

of e0%enditure in ad#ance'• Art of bud.etin. he %s a %erson

de#e o% economic way of thinkin. and

%rob em so #in.

#


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ea t s eter# ne y etWorth

• Asset/ Somethin. you own• Liabi ity/ Somethin. you owe "you ha#e to %ay&• et worth 6 Assets BLiabi ities

Sa#in.s bank account

ba ance

CC$))) 3ar D$*C$))

)Shares of istedcom%anies

)$))) 1ouse *C$))$)))

Life Insurance B

Surrender a ue

C$))) Air

3onditioner

+H$)))

9ayment to maid not%aid

+$C)) La%to% **$)))

3ar Loan Outstandin. *$))$+)) Furniture +*$C))


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Personal Financial Position (Balance Sheet)As on


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0onthly Inco#e J ExpenditureInco#e 3eads ,s

Sa ary$ bonus$ commission C)$)))

i#idends *$)))Interest D))9ension H$)))Other C))

,otal 0onthly Inco#e 8 6 ;;Expenses 3eads ,s

,e.u ar month y E0%enses +($ H)1ouseho d O%ertatin. E0%enses +$ C)

Food E0%enses $)))9ersona E0%enses +D( D

Ta0 E0%enses +C$*HC,otal 0onthly expenses 8H68'

,otal #onthly Sa ing a aila&le *$* *


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I FCA,I2• A rise in the .enera %rices of .oods and

ser#ices in a %articu ar country o#er a%eriod of time$ resu tin. in a fa in the #a ueof moneyJ the rate at which this ha%%ens/

• In5ation rose a.ain this year' the currentow rate of in5ation an annua in5ation rateof DK

• In5ation falls>rises falling>risingin ation a -u#p>rise>surge in in ationa decline>drop>fall in in ationhigh>lo*>sta&le>@ero in ation

galloping>rapid>runa*ay>


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32W I FCA,I2 AFFE ,S P%I ES 2F2002!I,IES

Year Year In ation Year

Price :;;: :;'H +PY :;:;Sugar('4g) ,s' + ,s' DH K ,s' ()

ooking 2il('lit) ,s' C ,s' C K

,s'+CC

+old (';g#s)

,s'H$H(H ,s'D)$))) *HK

*$)+$+*

Sil er ('kg) ,s'($,s'H)$))) *)K

*$)D$DCC

%ice ('kg),s' +H ,s' HC +HK

,s'+HH

Petrol ('lit) ,s'


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I %EASE I 02 ,3CY ELPE SES !1E,2 I FCA,I2

" &


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• ow et us assume$ the %rice of yourschoo ba. was ,s'*)) ast year and itcosts ,s'*+) this year'

• ,he in ation rate therefore is 89

ELA0PCE ? ,he In ation


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%EAC %A,E 2F I ,E%ES,

• Suppose you ha e deposited so#ea#ount in a Bank at 9 %ate ofInterest and in ation %ate is 9"

Actual %ate of Interest ? %ate

of In ation,hen %eal %ate ofInterest

9 ? 9


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Inves'men'

In#'#al #nves'men' s) &,$$$

In'eres' on #nves'men' *+ p)a)alue a 'er a .ear s) &,$*$

In la'#on /+ p)a) 0our expenses a 'er a

.ear s) &,$/$

In la'#on E ec's on Inves'men's


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A,,E !A E

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,oll Free 3elpline of SEBI• ,o facilitate replies to arious Mueries

of the general pu&lic on #attersrelating to securities #arket6SEBI has launched toll free helpline

ser ice nu#&er"• ,i#ing ? .


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SE%OI ES AOAICABCE 2 ,3E,2CC F%EE 3ECPCI E 10BE%+uidance pertaining to • Status of com%anies - whether un isted$ sick$ de isted$

iquidated ?wound u% etc'• 3han.es in names of com%anies %ursuant to

ama .amation?mer.er?demer.er etc• etai s of ,e.istrar and Share Transfer A.ent of a isted

com%any'• etai s and Information on names and addresses of

#arious re.istered intermediaries of SE2I• Mhere to .et information on re.u atory action taken by

SE2IN• Mhere to .et information on 3or%orate action ike

i#idend$ 2onus$ ,i.ht issue etcN


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SE%OI ES AOAICABCE 2 ,3E,2CC F%EE 3ECPCI E 10BE%+uidance pertaining to • Mhere to .et Latest et Asset a ue " A & for a

mutua Fund SchemeN• 1ow to od.e a com% aint with SE2IN• A.ainst whom to od.e a com% aint on S3O,ESN• Status of com% aint od.ed with SE2I'• ames and addresses of #arious ,e.istrar of

3om%anies$ O=cia iquidators$ 2IF, etc'• The re.u ators?authorities whom the in#estor has to

a%%roach for redressa of their .rie#ances that arenot under SE2I %ur#iew e0/ ,2I$ I, A$ 9F, A$ 43A

etc'


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SE%OI ES AOAICABCE 2 ,3E,2CC F%EE 3ECPCI E 10BE%Assistance in procedures i@"• 1ow to o%en demat ?c ient account etcN• Transfer of shares'• Transmission of shares'

• ocuments required for transfer?transmission of shares'• Information on what to do if shares are ost?for.ed?fake'• 9rocedure for a%% yin. for du% icate shares'• 1ow to a%% y in an I9ON• ames and address of com%anies of who ha#e ed

their o@er documents with SE2I'• The he % ine ser#ice does not o@er any e.a o%inion or

in#estment ad#ice to the in#estors'


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S0A%, +2AC ( )

S Speci5c 0 0easura&le?

A Achie a&le?

! % %ealistic ?

i#e?&ound?


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Speci5c+2AC S %eci c focused$ OT .enera '

Pou need to know e0act y whatyou want and when you want it'

2,

S0A%,

I need money to %ay my co e.e

fees in a year8s timeI need to set aside money for my.rand dau.hter8s birthday ne0tyear'

S0A%,

I wi sa#e the money of ,s' C)$)))to %ay my fees at co e.eI need to set aside ,s +)$))) formy .rand dau.hter8s birthday ne0t


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0easura&le+2AC 0 easurab e you can te when you8#e

reached them' Pour .oa shou d bemeasurab e so that you know whenyou can achie#e it' ,emember when itcomes to .oa s$ they are either

measurab e or they aren8t rea y .oa sat a '

2,

S0A%,

I wi %ay o@ my debts to my friendsA .oa shou d ha#e concretemeasurement' For e0am% e$ QrichR isnot a measurab e .oa $ because youcan8t measure QrichnessR but ,s +crore is measurab e'


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Achie a&le6 attaina&le oractiona&le

+2AC Achie#ab e they are %ossib e'Pour.oa s shou d be reasonab e i'e' withinyour reach

A .oa shou d be attainab e oractionab e'For e0am% e$ to ha#e ,s + crore$ you8ha#e to reduce your e0%enses$ sa#e

money$ in#est$ and et com%oundin.work for you o#er time

2,S0A%,

I wi sa#e money'


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%ealistic+2AC %ea istic based on the resources'

Pour .oa s need to be based onresources and tasks that you canreasonab y accom% ish'A .oa has to be within the rea m of

%ossibi ity2,

S0A%,If I sa#e money I wi berich

S0A%, In .enera $ it8s better to take +)sma er ste%s than one hu.e ea%'For e0am% e$ ,s + crore mi.ht not berea istic and you mi.ht considersa#in ,s +$))$))) rst' Once ou


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,i#e?&ound+2AC ,i#e &oundQthere is a

deadline"+oals *ith ti#elines allo*you to track your progressand encourage you tokeep going until you reachyour goal

2,S0A%,

I *ill sa e #oney for #yehicle"

S0A%, I *ill sa e %s"';;;; a year


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I OES,0E ,

• If you lend ';; rupees toso#eone6 *ill he gi e it &ack toyou i.e. is your capital (%s"';;)

safe7 i.e. Safety• Will you get your #oney &ack ifyou need it i##ediately7 i.e.

CiMuidity• What is the return you *ill get

on your in est#ent7 It could &ein the for# of inco#e or


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6 !":;'<


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In est#entSa ings In esting4eeping aside a partof your inco#e

If in ested *isely6your #oney can gro*#anifold o er years

Sa ing to #eet short?ter# safety fore#ergency expenses

1sing #oney to &eco#e*ealthier *ith eachpassing year

Short ter# Cong ter#

Oalue re#ains sta&le Oalue #o es up anddo*n in short ter#Co*er returns o erlong ter#

Potentially higherreturns o er longter#


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WEAC,3 2% 2%P1S %EA,I2

A#ount %eMuired ';6;;6; ;;o of years for

retire#ent


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Situatio

n

Star-tin.A.e

Pear

s To,etir-

ement

4onth yIn#est-ment

TOTALI EST4ET

I TE,EST9TOAGE )

TOTAL ATAGE )

+*C DC

D$)))

+*$ )$)))

+$)+$* $+H

+$+D$ $+H

**C DC

*$)))

$H)$))) ($CD$*( (C$ D$*(

D*C DC

+$)))

H$*)$))) DD$( $ D D($ $ D

H*C DC C))

*$+)$))) + $ $D+ + $ $D+

WEAC,3 2% 2%P1S %EA,I2(Price for Co*er In est#ent)

(($))$)))


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Situatio

n

StartingAge

Years,o

%etire#en

t

0onthlyIn es?t#ent

,otalIn est#e

nt

Interest1pto Age

;,otal AtAge ;

+ *C DC C

D$ )$D

)

* $ ($+

C

D*$C($C+

* D) D) +$)))D$ )$))

)+ $))$H

(**$ )$H

(

D H) *) +$C))D$ )$))

)($( $)C

D++$D $)C

D

H C) +) D$)))D$ )$))

)*$CH$CD

C $+H$CDC

Price of Procrastination(Equal But Late Investment)

+)$))$))):'6;;6

;;;

: 6;;6

;;;

"#$ % o#poun ng


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# $ % o#poun ngE ect

Ruarterlyo#pounding

Yearlyo#pounding

9rinci%a Amount +$))$)))

9rinci%aAmount

+$))$)))

+st uarter InterestU *$C))Interest +)$)))

Tota +$)*$C))

Tota +$+)$)))

*nd uarter InterestU *$C D

Tota +$)C$)D

Drd uarter Interest *$ *(


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The Eighth Wonder -Compounding

9OME, OF 3O49O I GAmount ,s' C$))$)))

Interest rate +)K

PEA, 3O49O I TE,ESTSI49LE

I TE,EST+ ,s' C$C)$))) ,s' C$C)$)))* ,s' $)C$))) ,s' $))$)))D ,s' $ C$C)) ,s' $C)$)))H ,s' ($D*$)C) ,s' ($))$)))C ,s' $)C$*CC ,s' ($C)$)))

*) ,s' DD$ D$(C) ,s' +C$))$)))

*C ,s' CH$+($DCD ,s' +($C)$)))


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alculation of 0oney!ou&ling Period OR

%ule of =:

Su%%ose the rate of Interest 9er year is

K then ,s'+)$))) wi become,s'*)$))) in years$ because if wea%% y the abo#e formu a as fo owin. it

is years'


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AOAICABCE

I OES,0E , 2P,I2 S

P2S 2FFI E SAOI +


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P2S, 2FFI E SAOI +S 3E0ES

a#e of Sche#e

Interest %atefro#

April '6 :;'<

Interest

FreMuency

Sa ings Account H'))K 3alf Yearly,i#e !eposit ' Year '*)K Ruarterly

,i#e !eposit : Year '*)K Ruarterly,i#e !eposit < Year 'D)K Ruarterly,i#e !eposit 8 Year 'H)K Ruarterly%ecurring !eposit 8 Year 'D)K RuarterlySenior iti@en Sche#e 8Years '*)K Ruarterly8?years ational Sa ing

erti5cate 'C)K3alf

Yearly';?years ational Sa ing

erti5cate ' )K3alf

Yearly

F! Interest %ates


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F! Interest %atesInstitution ,ate Add#'#onal In orma'#on

I 2I 2ank 9.25 Public Sector Bank.

i7aya 2ank 9 Public Sector Bank.Indian 2ank 9 Public Sector Bank.State 2ank Of India 9 Public Sector Bank.Orienta 2ank of3ommerce

9 Public Sector Bank.

Indian O#erseas 2ank 9 Public Sector Bank.3O 2ank 8.75 Public Sector Bank.

1 F3 2ank 8.75 Indian Private Sector Bank.3anara 2ank 8.75 Public Sector Bank.I3I3I 2ank 8.75 Indian Private Sector Bank.A ahabad 2ank 8.5 Public Sector Bank.

ena 2ank 8.5 Public Sector Bank.3entra 2ank Of India 8.5 Public Sector Bank.

A0is 2ank 8.25 Indian Private Sector Bank.

!IFFE%E E I I E%ES

http://www.ratekhoj.com/fixed-deposits/tax-savings-fixed-deposits/tssresults.php?duration=all%20periods&citizentype=non-senior&firmtype=&amt=all%20deposit%20amounts&sorttype=name&sortorder=ASChttp://www.ratekhoj.com/fixed-deposits/tax-savings-fixed-deposits/tssresults.php?duration=all%20periods&citizentype=non-senior&firmtype=&amt=all%20deposit%20amounts&sorttype=rate&sortorder=ASChttp://www.ratekhoj.com/fixed-deposits/tax-savings-fixed-deposits/tssresults.php?duration=all%20periods&citizentype=non-senior&firmtype=&amt=all%20deposit%20amounts&sorttype=rate&sortorder=ASChttp://www.ratekhoj.com/fixed-deposits/tax-savings-fixed-deposits/tssresults.php?duration=all%20periods&citizentype=non-senior&firmtype=&amt=all%20deposit%20amounts&sorttype=name&sortorder=ASC


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!IFFE%E E I I ,E%ES,S

o

%ate

ofInterest

Interest

for8 Yearson%s"'6;;6;;;

!i ere

nce of;":89

!i ere

nce of;"8;9

!i eren

ce of;"=89

' "8 ;68;'

: ":8 8 68:< '6 =

< 8 68


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BA 4 A 21 ,S

• Sa ing Account (,ax Free upto%s"';;;;)

• Fixed>,er# !eposit Account

• %ecurring !eposit (%!)

Account ( o ,!S)

• Special ,er# !eposit (S,!%)

!eposit Insurance and redit


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!eposit Insurance and redit+uarantee orporation (!I + )

• In the e ent of a &ank failure6 !I +protects &ank deposits that arepaya&le in India"

• ,he !I + insures all deposits suchas sa ings6 5xed6 current6 recurring"

• Each depositor in a &ank is insured

upto a #axi#u# of %s"'6;;6;;;(%upees 2ne Cakh) for &oth principaland interest a#ount held &y hi#"

ypes of &ank Accounts


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,ypes of &ank AccountsSa ings Account.• It is usefu for de%ositin. your sur% us money

and withdrawin. money needed for e0%enses'• One needs to kee% a minimum ba ance usua y'

• 2anks %ay owest interest rate on the moneyke%t in this account'• 9resent 4inimum %ate of interest is H9

urrent Account.• This account is for basica y business

transactions' 2anks do not %ay any interest onthe money ke%t in this account'

pes of &ank Acco nts


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,ypes of &ank Accounts%egular Fixed !eposit A#ount.• 4oney is de%osited for a 0ed and %redetermined

term'• Interest rate is hi.her than sa#in.s account'

• 9resent %ate of interest is to ';9Special F! / In s%ecia tenure F schemes$the fund can be in#ested for a s%ecia

%eriod ike DDD$ D or CCC days$ and rateof interest is hi.her'Floating F! / nder this scheme$ an in#estor cano%t for a market-based interest rate' The rate of

interest is renewed automatica y with the chan.e

32W ,2 SAOE ,!S 2 FILE! !EP2SI,S


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32W ,2 SAOE ,!S 2 FILE! !EP2SI,S

'" By suitting For# '8+>'83For senior citi


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%ecurring > u#ulati e !eposit (%!)

• ,ecurrin. e%osits are a s%ecia kind of

Term e%osits'• In , account a %erson has to deposit a

5xed a#ount e ery #onth"

• ,ate of Interest o@ered is simi ar to thatin Fi0ed e%osits i.e. ?';9• It is simi ar to makin. F s of a certain

amount in month y insta ments$• , account is o%ened by those who wantto sa#e re.u ar y for a certain %eriod oftime and earn a hi.her interest rate'



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• In India$ #ini#u# a#ount thatcan be de%osited is %s"'; at re.u arinter#a s

• The %eriod of de%osit is #ini#u# six#onths and ma0imum ten years'

• 2 ,!S on %!s"• 1owe#er interest from , is not ta0 free'• o *ithdra*als are a owed'• 2ne can a ail loans u% to ) to )K

Cock?in Period


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Cock?in Period

Instru#ent

Cock?in

PeriodECSS < YearsBank Fixed!eposit 8 YearsP2 ,i#e !eposit 8 Years

S yearsPPF (Partial*ithdra*al after '8 Years

BEY2 ! ,AL SAOI +


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BEY2 ! ,AL SAOI9arameter 99F S3 ELSS

Tenure O, Lock-in+C years years D years

,eturns Annua y'() K

1a f-year y'C) K

i#idends

4inimumin#estments

,s'C)) ,s'+)) ,s'C))

4a0imumin#estments +$C)$))) o imit o imit

eduction )3 +$C)$))) +$C)$)))

+$C)$)))

%IS4 BACA I +


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%IS4 BACA I +

Stock 0arket


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• A >stock e0chan.e8 is an or.ani


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• 2oth are 4umbaiVbased stock e0chan.es'

• Thou.h a number of other e0chan.es e0ist$SE and 2SE are the two most si.ni cant

stock e0chan.es in India$ and are res%onsib efor the #ast ma7ority of share transactions'

• At %resent there are *D stock e0chan.es areworkin. in India'

• The function of the securities market is to

a ow com%anies to raise ca%ita from %ub ic"%rimary market& and to enab e tradin. in theshares of %ub ic com%anies "secondarymarket&'

Stock 0arket

? E0 h


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E0chan.e

?E0 h


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E0chan.e

What are securities7


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What are securities7• Securities are nancia instruments and

inc ude instruments such as shares$ bonds$debentures of a com%any or bodycor%orate or a .o#ernment'

• Thus$ a stock e0chan.e %ro#ides a tradin.% atform$ where buyers and se ers canmeet to transact in securities'

• A stock e0chan.e cou d be a re.iona stock

e0chan.e whose area ofo%eration?7urisdiction is imited to a re.ionor a nationa e0chan.e %ermitted to ha#enationwide tradin.'

P1% 3ASE 2F FI A IAC


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P%2!1 ,SWhere to purchase 5nancial products7

(Sellers6Inter#ediaries and &rokers)• Inter#ediaries> !istri&utors B In IP2s6

su&scription can #e #ade through&rokers and for#s can &e o&tained fro#&rokers and distri&utors for the sa#e

•Brokers Brokers o er se eral ser iceslike purchase>sale of eMuity6 de&t andderi ati e products6 0utual fund units6IP2 su&scription6 etc"

P1% 3ASE 2F FI A IAC


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P%2!1 ,S• Internet 0utual Funds and Banks

that are in #utual funds &usinessfacilitate online &uying of #utualfunds and exchange traded funds

• Stock Exchanges losed end #utualfunds are traded on stock exchangesand can &e &rought through &rokers

• 0utual Fund co#panies 2pen endfunds can &e &ought at the AO fro##utual fund co#pany

3o* to Select a Broker7


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3o* to Select a Broker7

• ,he &roker #ust &e registered*ith SEBI"• ,he stock exchanges ha e no*

gi en details of actions>casesagainst &rokers and the reasonsfor the sa#e"

•,he action taken against the&roker and any pending cases arealso gi en" An in estor can perusethis list &efore #aking his choice"


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Basic Ser ices !E0A Account (BS!A)


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Basic Ser ices !E0A, Account (BS!A)

• 3olding alue in !E0A, accountis less than %s"8;;;; ? o Annual0aintenance harges (A0 )

• 3olding alue is fro# %s" 8;6;;'to %s" :6;;6;;;6 A0 notexceeding %s" ';; #ay &e

charged"• 3oldings is a&o e %s" :6;;6;;;

then nor#al charge "

0utual Funds


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0utual Funds• A #utual fund is generally a

professionally #anaged pool of#oney fro# a group of In estors"

• A #utual fund #anager in ests your

funds in securities6 including stocksand &onds6 #oney #arketinstru#ents or so#e co#&ination ofthese6 &ased upon the fundDsin est#ent o&-ecti es"

• By in esting in a #utual fund you candi ersify6 there&y sharply reducing

your risk"

0utual Funds


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0utual Funds

Oarious ,ypes of 0utualFunds

2pen?ended Funds

losed?end Funds• EMuity funds (stocks)

• Fixed?inco#e funds(&onds)

• 0oney #arket funds 0utual Funds


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• SIP in estor gets good rateof returns co#pared to a

one ti#e in estor"• ,his is a si#ple6 disciplined

strategy of in esting your#oney in a #utual fund"

• ,his is a longter# strategy

for accu#ulation of *ealth"

Syste#atic In est#entplan (SIP)


80/143


81/143

01,1AC F1 !S ,AL


82/143

, ,• If the units are so d *ithin ': #onths

from the date of %urchase$ these areconsidered short-term ca%ita assets'

EMuity sche#es

– The long?ter# capital gains ? exe#pt – Short?ter# capital gains ?'89"

!e&t sche#es

• The assessee can o%t for one of thefo owin. rates/ – +)K on the ca%ita .ain without inde0ation'

– *)K on the ca%ita .ain with inde0ation

01,1AC F1 !S ,AL


83/143

01,1AC F1 !S ,AL!e&t sche#es• ,he short?ter# capital gain on debt

schemes is c ubbed with the income of thein#estor and is ta0ed at the s ab rate'

• For long?ter# capital gains Theassessee can o%t for one of the fo owin.rates/

– ';9 on the capital gain *ithoutindexation" – :;9 on the capital gain *ith

indexation

01,1AC F1 !S ,AL Exa#ple


84/143

0 , C !S , a p e

• In the 5nancial year :;; ?';6 0r Asold 8;; units of a de&t fund at %s 'per unit"

• 3e had purchased these in the

5nancial year :;;H?8 for %s '; perunit"• ,he cost in ation index for the

5nancial year :;;H?8 *as H ;6 and for:;; ?';6 it *as


85/143

, , p

01,1AC F1 !S 3ECP E ,%E I


86/143

SA+A%• o#puter Age 0anage#ent

Ser ices ( A0S)62pp" So#aniAuto#o&iles6 Bhag*angan-6 Sagar(0"P)?H=;;;:

• Phone o"? ;=8 :?


87/143

• ELSS is a ty%e of mutua fund'

• An in#estment in ELSS comes with a lockin period of < Years• ,ax &ene5ts 1>s ;c upto '"8 lakh"

• ELSS schemes are o%en ended'• A or the %rice of the fund is dec ared on

e#ery business day'

• Growth o%tion• i#idend o%tion• i#idend rein#estments o%tion

• SI9 Compan. 6#xed ;epos#'s


88/143

S1o Scheme 1ame a'#n2

In'eres' a'es + % .r 0#eld& 0 3 0 0 4 0 % 0

& Shr#ram 5ranspor' 6#nanceCo) 7'd

C ISI7-6AA89 IC A-!AA8 /)3% /):% &$):% &$):% &$):% & ) 3+

3 ;e


89/143

@ g ;;

• ,enure -C years$ which can be e0tended by Dyears'

• %ate of interest - '* %er cent %er annumuarter y

• Fu y Ta0ab e and ,!S• In est#ent in #ultiples of -+)))?-• 0axi#u# in est#ent li#it - +C akh• 0ini#u# age - ) "CC ,S& ,etired %ersonne

of efence irres%ecti#e of the a.e imits• Pre#ature closure>*ithdra*al facility

9ermitted after one year with %ena ty'

0onthly Inco#e Sche#e Account


90/143

• All resident indi iduals eligi&le to open a

account in single>-oint na#e>s"• A aila&le in All Banks J Post 2Uces• Interest is paid #onthly at the

discounted alue• Interest is paid>credited to the Sa ings

account during the last *eek of e ery#onth"

• #onths to ':; #onths• o#ination facilities"• urrent Interest %ate "8?';9 (;"89

extra for senior iti@ens)

ational Pension Syste#


91/143

• All citi@ens of India &et*eenthe age of ' and ; yearscan $oin PS With e ect

fro# 'st

0ay6 :;;• ,o inculcate the ha&it ofsa ing for retire#ent

• Per#anent %etire#entAccount u#&er (P%A )"

ontri&ution ,o PS


92/143

,

0ini#u# ontri&ution For ,ier I60ini#u# opening a#ount ? %s"8;;0ini#u# a#ount percontri&ution? %s"8;;0ini#u# contri&ution per year? %s" 6;;;0ini#u# nu#&er of contri&utions

,ier I Account.• on?Withdra*a&le Account•Sa ings for %etire#ent"•,ax &ene5t is a aila&le on thisaccount

ontri&ution

ontri&ution ,o PS


93/143

ontri&ution

0ini#u# ontri&ution For ,ier II64inimum account o%enin. - %s" +)))4inimum amount %er contribution - %s" *C)

4inimum number of contributions in a year- one4aintain minimum ba ance of %s" *))) atthe end of each nancia year

,,ier II Account.

•Sa#in.s Faci ity'•Subscriber is free to withdraw• o ta0 bene t is a#ai ab e on this account '

1norganised Sector Workers


94/143

S*a ala#&an Yo-ana 2% PS Cite

• ,o encourage people tooluntarily sa e for their

retire#ent the entral+o ern#ent launched aVS*a ala#&an Sche#e"

• +o ern#ent *ill contri&ute asu# of %s"'6;;; to eacheligi&le PS su&scri&er per year"

• his sche#e is applica&le upto PS Cite Account 2%


95/143

S*a ala#&an Yo-ana

ontri&ution• 0ini#u# 2pening ?%s"';;

• o #ini#u# contri&ution• 0ini#u# contri&ution of%s"';;;>? and 0axi#u#

upto %s"':;;; to a ailS*a ala#&an &ene5t"

PE SI2 F1 ! %E+1CA,2%Y A !!EOEC2P0E , A1,32%I,Y(PF%!A)


96/143

F2% +E E%AC R1E%IES .

0r" 4a#al 4u#ar haudhry6 hief +eneral0anagerE#ail. ka#al"chaudhryNpfrda"org"inF2% +%IEOA ES .

0r"Akhilesh 4u#ar6 !eputy +eneral 0anager E#ail. grcNpfrda"org"in2 ,A , A!!%ESS. ?

• Pension Fund %egulatory and !e elop#entAuthority(PF%!A) First Floor6 I A!% Building6 Plot o"

6 Oasant 4un- Institutional Area6 Phase ? Ii6 e* !elhi '';;=;

• ,el . '?''?: = H >H• Fax. '?''?: = <

!EOEC2P0E , A1,32%I,Y(PF%!A)

PS (,oll Free)

' ;; ''; =; Address of Insurance 2#&uds#an

mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


97/143

• 2Uce of the Insurance2#&uds#an6 $anak Oihar

o#plex6 : nd Floor6 6 0al iyaagar6 2pp" Airtel6 ear e*

0arket6 B32PAC(0"P")?H : ;:


98/143

• Shri A"F" aM i>o %eser e Bank of India

3oshanga&ad %oad6Post Box o"


99/143

Protection %elated Products

Why Insurance Planning 7


100/143

• Insurance is like aparachute"

• If it isnVt there the5rst ti#e6

chances are you*onVt need it thesecond ti#eT

• Insurance isprotection for theperson and hisfa#ily

4EEP I 0I ! BEF2%E B1YI +A S1%A 2C


101/143

A I S1%A E P2CI Y •

Are you &uying insurance for protectionpurpose7• Are you &uying insurance for in est#ent

purpose7

• Are you &uying insurance -ust for sa ing ,AL7

!i erent policies a aila&le in the

#arket cater to di erent needs",herefore6 donDt &uy insurance forthe sake of &uying it/Buy insurance &ecause you need it"

,YPES 2F CIFE I S1%A E P2CI IES


102/143

• ,er# Insurance (Pure Insurance)• Endo*#ent Policy (Sa ings &ased)• Whole Cife Assurance

• 0oney Back Policy (Sa ings &ased)• 1nit Cinked Insurance Plan (1CIP)

(Sa ings &ased6 #arket linked)

CIFE I S1%A E ? ,E%0 PCA S


103/143

• ,he &asic feature of ter# assurance

plans is that they pro ide death risk?co er"• ,er# insurance is the purest for# of

insurance policy"• It pro ides you a high a#ount of

co erage at a ery lo* pre#iu#"• ,his type of policy caters to the need

for protection"• +enerally ter# insurance policies are

for the duration of ';6 '86 :;6 :8 or


104/143

!eath Bene5t

• In case of your demise durin. the %eriodof the %o icy$ the amount of co#era.etaken under the %o icy is %ayab e to your

nominee'0aturity Bene5t• In case you sur#i#e the %o icy term then

nothin. is %ayab e at the time of maturity',ax Bene5t• The %remium %aid qua i es for

deduction u?s ) 3'

CIFE I S1%A E ? ,E%0 PCA Sheapest er# Insurance Plan


105/143

heapest ,er# Insurance Plan

Insuranceo#pany

Plan a#e Pre#iu#

CI A#ulya $ee an

II

:


106/143

(1CIP)• A LI9 is basica y a co#&ination of

insurance as *ell as in est#ent "• A %art of the %remium %aid is uti i


107/143

(1CIP)• 9o icy ho ders ha#e the o%tion of se ectin.

the ty%e of funds "debt or equity& or a mi0of both'• LI9 %o icy ho ders are a otted units and

each unit has a net asset #a ue " A & thatis dec ared on a dai y basis'

• The A is the #a ue based on which thenet rate of returns on LI9s are determined'

• The A #aries from one LI9 to anotherbased on market conditions and the fund8s%erformance'

3ealth Insurance


108/143

3ealth Insurance policies insure

you against se eral illnesses andguarantee you stay 5nanciallysecure should you e er reMuire

treat#ent"• o#prehensi e health insurance

co erage

• 3ospitalisation Plan• ritical Illness Plans• Speci5c onditions o erage


109/143

Borro*ing %elated Products

+ood loans Os Bad loans


110/143

• +ood loans . It is the loan *hichhelps you &uild or &uy the #ostprecious asset of lifeti#e e"g"6house6 land6 education loan etc"

• Bad loans . ,his loan is usuallytaken to satisfy i##ediate

personal reMuire#ents orexpenses like6 &uying consu#erdura&les or going on acation

etc"


111/143

!i erent ,ypes of Coans A aila&le


112/143

• Personal Coans• 3ousing Coans• %e erse 0ortgage• Coan Against Securities• Securities Cending and

Borro*ing• redit ard !e&t

%e erse 0ortgage Coan


113/143

• Banks introduces %e erse0ortgage Coan for seniorciti@ens"

• ,he sche#e in ol es the Senioriti@en &orro*er(s) #ortgaging

the house property to Banks6 inreturn of periodic pay#ents tothe &orro*er(s) during thelatterDs lifeti#e to help the# insustaining the#sel es"

%e erse 0ortgage Coan


114/143

• Eligi&ility riteria. ,heresidential house> at o*ner6 ofthe age of ; years J a&o e

• ,enor. ,he #axi#u# tenorupto :; years"

• Coan A#ount. ,he #ini#u# %s"

8 lacs and #axi#u# :";;crore"


115/143

nco#e ax s a or ?(AY?:;'8?' )

Ind#v#duals or !en 9 >omen (Belo< ?$


116/143

Ind#v#duals or !en 9 >omen (Belo< ?$Net Income Range Income-'ax ra'es

p'o s) 3,%$,$$$ 1#l

3,%$,$$$- %,$$,$$$ s) &$+ o ('o'al #ncome m#nuss) 3,%$,$$$

%,$$,$$$- &$,$$,$$$ s) 3%,$$$ 8 3$+ o ('o'al #ncomem#nus s) %,$$,$$$

A"ove &$,$$,$$$ s) &,3%,$$$ 8 $+ o ('o'al #ncome

m#nus s)&$,$$,$$$

Inco#e tax sla& for FY :;'H?'8(AY?:;'8?' )


117/143

( ; )Sen#or C#'# ens ( A2e ?$ or a"ove "u' "elo< *$

1e' Income an2e Income-'ax ra'es

p'o ,$$,$$$ 1#l

,$$,$$$ - %,$$,$$$ &$+ o ('o'al #ncome m#nus,$$,$$$

%,$$,$$$- &$,$$,$$$ 3$,$$$ 8 3$+ o ('o'al #ncomem#nus %,$$,$$$

A"ove &$,$$,$$$ &,3$,$$$ 8 $+ o ('o'al #ncomem#nus&$,$$,$$$

nco#e ax s a or ?(AY?:;'H?'8)

S S # C#'# (A2 *$ "


118/143

Super Sen#or C#'# ens (A2e *$ or a"ove

Net Income Range Income-'ax ra'esp'o s) %$$,$$$ 1#l

s) %,$$,$$$ - s)&$,$$,$$$

3$+ o ('o'al #ncome m#nus s)%,$$,$$$

A"ove s) &$,$$,$$$ s) &,$$,$$$ 8 $+ o ('o'al #ncomem#nus s)&$,$$,$$$

Education cess ? :9 of inco#e?tax"Secondary and higher education cess ? '9of inco#e?tax",otal ess


119/143

!E!1 ,I2 # %

'"Actual A#ount of 3%A%ecei ed

:"Actual %ent Paid ';9 ofSalary


120/143

$ % ( ;++)

'"%s" :;;; Per 0onth:"Actual %ent Paid ';9 of

Salary


121/143

• Pre#iu# on life insurance policies

• hildren J Spouse full?ti#e

education fees

• Principal repay#ent on ho#e loan

• ontri&ution to e* Pension Sche#e

• Pu&lic Pro ident Fund (PPF)

• ational Sa ings erti5cate ( S )

!eduction 1nder Section ;


122/143

• Fixed deposits (F!) (,ax Sa ing)

• EMuity Cinked Sa ings Sche#e (ECSS)

• Senior iti@en Sa ing Sche#e (S SS)

• Bonds ? ational Bank for Agricultureand %ural !e elop#ent ( ABA%!)

• 1nit Cinked Insurance Plan (1CIP)

• E#ployee Pro ident Fund (EPF)

,AL SAOI + 2P,I2 S


123/143

• Professional ,ax (';;9)

• ;• ;!?Pay#ent of 0edical Insurance

Pre#ia (0ediclai#)?#axi#u# of %s"'86;;; (%s" :;6;;; in case the personinsured is a senior citi@en)

• ;!! ?Expenditure on #edical ,reat#entetc" and deposit for #aintenance ofhandicapped dependents" X8;;;; FILE!

• ;!!B ?0edical ,reat#ent ofassess>dependant relati e ?H;;;;> ;;;;"

,AL SAOI + 2P,I2 S


124/143

• ;E ?Interest on Coan taken for 3igher

Education"• ;EE ?Interest on Coan taken for 5rstresidential house?';;;;;

• ;+ ?!onation for harita&le Purposes• ;++ ?Expenditure on %ent"• ;++A ?!onations to speci5ed

institutions>associations for %esearch or

for %ural !e elop#ent"• ;1 ?Physical !isa&ility XSec" . %s"

8;6;;; for disa&ility and %s" '6 ;;6;;;for se ere disa&ility"

,2CC F%EE 3ECPCI E 2F


125/143

+E E%AC E R1A%Y

' ;;?' ;?' '

I 20E ,AL 2FFI E

,ALA,I2 %1CESE R1A%Y

' ?' ? 3o#e Purchase or onstruction


126/143

• If one #e#&er of the ouple is

earning ,axa&le Inco#e thenonstruct or Purchase the 3ouse in

the na#e of o inco#e or Co*er

Inco#e #e#&er and pay rent *holeEarning life for 3%A exe#ption"

$2I , 320E C2A ( & ' ( ) *+ )


127/143

• 0ost of the ti#e you *ant to

purchase the high alue ho#e"• For this you *ant ho#e loan fro#

&ank" But You are not eligi&le forfull reMuired a#ount" In this caseyou can opt for $oint 3o#e Coan"

• $oint 3o#e Coan can &e taken &y &orro*ers $ointly i"e 3us&and?

*ife6 Parent?children"

,ax Bene5ts on 3o#eC


128/143

Coans

Particular

s

Ruantu# of !eduction(%s")

Self2ccupiedProperty

on?Self2ccupiedProperty

Section :H '68;6;;; o Ci#itSection

; '68;6;;; '68;6;;;

Section $2I , 320E C2A (,ax Bene5ts)


129/143

Single 3o#e Coan ,ax Bene5ts ?

• !eduction 1>s ; %s"'68;6;;;"• Single 3o#e Coan Interest 1>s :H(&)

%s"'68;6;;;" $oint 3o#e Coan !ou&le ,ax Bene5ts?If you take -oint 3o#e Coan *ith spouse then• Each person can take a deduction ( ;c) of

%s"'68;6;;; (


130/143

':?:;'<

,hursdaypage?


131/143


132/143

& ' D+') '+H 9


133/143


134/143


135/143

Pon@i sche#es


136/143

ainik 2haskar + ') '+H 9+)

Pon@i sche#es


137/143

ainik 2haskar ) ') '+H 9)+

Pon@i sche#es


138/143

• It is an in est#ent operationthat pays returns to its existingin estors fro# existing capital

or ne* capital paid &y ne*in estors6 rather than fro#pro5t earned &y the indi idual

or organi@ation operating it"


139/143

I49O,TA T ME2SITE• www'%o icyba


140/143

• www %o icyba


141/143

authorities

6can approach the follo*ingauthorities


142/143

authorities

o"

Pro&le

#relatedto

First authority to

approach

If not sol ed

+ 2ank ,e ated 2ankin.

3om%any Loca $,e.iona $ ationaO=ce

2ankin. Ombudsman

at ,2I$ 4umbai and AStates ,e.iona O=ces

* Insurance

,e ated Insurance3om%any Loca $,e.iona $ ationaO=ce

InsuranceOmbudsman at I, A$1P E,A2A and AStates ,e.iona O=ces

D 9S ,e ated 9ension fund4ana.ers Loca $

e iona $ ationa

9F, A$ ew e hi andA States ,e.iona


143/143

3A 4 Y21

investment planning for young investors

Documents