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Why Investment is Important for Everyone

Do you know why you do investment and why you do savings? You should save for short terms goals and you have to Invest for long term goals. Saving is basically you just reduce your expenditure and save your money. Passbook accounts, short term certificates of deposits (CDs) are the good place to save for short-term needs such as family vacations, a new car or emergencies. For long-term goals such as marriage, college education and retirement... For More please visit us and fill the contact form, http://www.elitestock.com/contactus1.aspx

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Why Investment is Important for Everyone

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  1. Contact Us Why Investment Is Necessary At Early Stage……. Elite Wealth Advisors will give you best services for:- *Finance Planning *Wealth Management *Portfolio Management Services For More Call us -011-40000919 or visit us http://www.elitewealth.in

  2. Contact Us What is the Average Age when one starts Earning? 25 Years

  3. Contact Us What is the Average Retirement Age? 60 Years

  4. Contact Us What is an Average Income of an Middle-Class House-hold? Rs.15,000/- p.m.

  5. Contact Us How much can a person save on a regular basis? Rs.5,000/- p.m.

  6. Contact Us If a person can save Rs.5,000/- per month What will be his wealth when he retires? Assuming: He increases his investments by 5% every year Invests in an Asset class that gives returns of 20%

  7. Contact Us At Age 60 his wealth would have been Rs.27 Crores

  8. 27 Crores* 4.90 Crores* 40 years 25 years 60 years Contact Us Start Early Give time to your investments rather than timing Give time to your investments rather than timing Assumptions: (a) Savings grows at 5% annually (b) Returns assumed at 20% CAGR

  9. Rs. 10,000 worth of Gold bought every month Highest price Lowest quantity 20 grams 15 grams Lowest price Highest quantity Contact Us Invest Regularly • Builds wealth over the long term • Just Rs. 1500 per month invested for 17 years @10% would grow to approx Rs. 8 lakhs…could be used for your daughter’s marriage • Take advantage of market volatility • Buy more when the markets are down

  10. Contact Us Invest Regularly • It is the small drops that make an ocean!! • Relieves you of the last minute pressure • Slow and steady wins the race • E.g. Split your Sec 80C investments into smaller amounts and invest every month • Reduces the risk of investing at the wrong time • Difficult to predict the market and know when is the right time We earn regularly; We spend regularly Shouldn’t we also invest regularly?

  11. Contact Us Invest Regularly Rs. 22.6 lakhs • …….It all adds up! Rs.1000 invested every month for 30 years @10% 30 A small amount invested regularly can grow to substantial lumpsum A=P*{(1+i)**n-1}/i*(1+i)

  12. Contact Us Earn More • Earn more…it can make a big difference One time investment of Rs.1 lakh invested for 30 yrs @ 6% @ 10% @ 15% 5.7 lakhs 17.45 lakhs 66.2 lakhs A= P(1+r)**n

  13. Contact Us POWER OF COMPOUNDING - QUIZ Earn More • Rs. 10,000 invested every month for a period of 30 years At 8% - At 15% - At 20% - 1.5 crores 5.6 crores 15.5 crores

  14. Invest Regularly Create Wealth Start Early Contact Us The Formula for Creating Wealth Earn More Make your money work hard for you

  15. Contact Us NEED FOR FINANCIAL PLANNING • One of the most common reasons cited for not doing proper financial planning is “if I continue to earn as much as I do now, what is the big problem? And always my salary will only increase with experience and hence I will always have enough money at hand for unexpected expenses and regular living expenses.” • The objective of financial planning is to ensure that the right money is available to the investor at the right time to enable him to meet the different goals in his life.

  16. Contact Us NEED FOR FINANCIAL PLANNING (contd..) Examples: • Saving to buy a car costing around Rs 3,50,000 after 3 years. • Investing for higher education of children where money is required after 10 and 12 years. • Planning for retirement to meet expenses for 25 years after retirement. • Investing to save taxes in an efficient manner. • Passing on wealth to the next generation (estate planning) etc

  17. Contact Us OBJECTIVES OF PERSONAL FINANCIAL PLANNING

  18. Contact Us THE MILLION DOLLAR QUESTION I am convinced that I should save and invest regularly, but the million dollar question is… Where should I invest?

  19. A PERSONAL PLAN FOR INVESTING Contact Us Establish realistic goals Determine the amount of money needed to meet your goals Specify the amount of money available to fund your investments List different investments you want to evaluate Evaluate risk and potential return for each Reduce possible investments to a reasonable number Choose at least two different investments Continue to evaluate your investment program

  20. Contact Us INVESTMENT AVENUES

  21. Contact Us RISK-RETURN TRADEOFF OF VARIOUS INVESTMENT AVENUES

  22. SAFETY AND RISK Contact Us The Risk-Return Trade-Off • Choosing higher risk investments, investors expect higher returns

  23. When Diversification Works Must combine stocks that are not perfectly positively correlated with each other to reduce variance. The greater the negative correlation between two stocks, the greater the reduction in risk achieved by investing in both stocks The combination of these stocks reduces the range of potential outcomes compared to 100% investment in a single stock. It may be possible to reduce risk without reducing potential return. Contact Us

  24. Adding More Stocks to the Portfolio: Systematic and Unsystematic Risk Contact Us Total risk is made up of two parts: • Unsystematic or Diversifiable risk and • Systematic or Non-diversifiable risk. Unsystematic risk, Company specific risk, Diversifiable Risk •   product or labor problems. Systematic risk, Market risk, Non-diversifiable Risk • recession or inflation Well-diversified portfolio -- one whose unsystematic risk has been completely eliminated. • Large mutual fund companies.

  25. Contact Us Adding More Stocks To The Portfolio: Systematic And Unsystematic Risk As the number of stocks in a portfolio approaches around 25, almost all of the unsystematic risk is eliminated, leaving behind only systematic risk.

  26. Portfolio Management Process Specification of investment objective and constraints Choice of asset mix Formulation of portfolio strategy Selection of securities Portfolio execution Portfolio revision Portfolio evaluation Contact Us

  27. Area of Knowledge required by Financial Planner Developing personal financial statements and budgeting Investment decisions and strategies Retirement Planning Insurance Taxes and their implications on personal financial decision Estate Planning Knowledge of Law, Standards & Code of Ethics Contact Us

  28. Warren Buffett Investment Principles Look for the absence of change. Look for the business whose only change in the future will be doing more business. Its far better to buy a wonderful company at a fair price rather than buying a fair company at a wonderful price. Be fearful when others are greedy and greedy only when others are fearful. If someone tells you they have a “foolproof” method to get rich in the stock market, run, don’t walk, for the nearest exit. Contact Us

  29. Warren Buffett Investment Principles (contd..) View stocks as businesses, not pieces of paper. There are times when doing nothing is a sign of investing brilliance. Take a close look at management. Read, Read some more and then Think. A few good investments are all that is needed. Know the value of something rather than the price of everything. Contact Us

  30. Contact Us Using The Wisdom We can direct our savings in such a manner that we create wealth, the way we wish DISCIPLINED SAVINGS + SUFFICIENT TIME + RIGHT ASSET CLASS = Smart Investor’s Preference

  31. Contact Us Why Elite Wealth Make Smart Decisions About Your Money One Point of Contact for all Financial Matters Become Your “Financial Ally” – Coordinating all aspects of your financial infrastructure Help you to align your values and finances in pursuit of your stated goals, whatever they might be! Provide Integrated Investment, i.e. – Retirement, Tax, Insurance, Wealth Accumulation Advice & Specialized Financial Service Elite Wealth Advisors Ltd Make Your Money Work For You

  32. Contact Us We enjoy a trusted relationship with our clients because we give them honest appropriate advice. Elite Wealth Advisors Ltd Make Your Money Work For You

  33. Contact Us CONTACT US Registered OfficeS-110, Sahara Mall, M.G.RoadHaryana-122002Ph # 0124-4068107 Corporate Office S-8, DDA Shopping Complex, Near Jeevan Anmol Hospital, Mayur Vihar Phase-1, Delhi-110091. Ph: 22758145, 22758165,22755894,22755896, 43035555(90 Lines) Fax: 011-22793402 Visit: www.elitewealth.inE-mail: info@elitewealth.in Branch – SaritaVihar B-104,LOCAL SHOPPING COMPLEX SARITA VIHAR , DELHI-110044,Ph-26972552/57,41000784 Branch - Greater Noida 604,TRADEX TOWER-1,3-B,ALPHA COMMERCIAL BELT,OPP.GOLF COURSE,, GREATER NOIDA -201306Ph-0120-2321156, 2326851/52, 2321149 Fax-4298286 Elite Wealth Advisors Ltd Make Your Money Work For You

  34. Contact Us Thank You Call us -011-40000919 Elite Wealth Advisors Ltd Make Your Money Work For You

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