buying gold during
TRANSCRIPT
Buying gold during
the festive season
We Indians love investing in gold, especially during the festive season. Gold has been a popular investment
option across cultures & ages, for its social, emotional and economic value. In the current volatile times, gold
acts as a diversifier and an investment class, to mitigate market losses.
Here’s a quick comparison to help you choose between buying physical gold (like jewellery, coins, bullion) or
investing in Sovereign Gold Bonds.
NOVEMBER 2021 | VOL. 6
Physical Gold
Is it time to shift towards digital gold?
Only when gold appreciates 1) When the gold price appreciates
2) Interest of 2.5% per annum
Sovereign Gold Bond
Whether you choose to invest in physical gold or in Sovereign Gold Bonds, investing in any type of gold is
recommended, as it offers high liquidity, hedge against inflation and diversification in your portfolio.
Risk of theft & concern
over its purity
Capital Gain tax, on sale
GST +Locker/Storage
charges
Not applicable
100% safe & purity guaranteed
No Capital Gain tax on redemption.
Only interest earned is taxable
No GST. Zero storage cost
Maturity after 8 years, with an
exit option from five and a half
years
Earn
Peace of
mind
Taxes
Additional
charges
Tenure
Tax
KNOW MORE
Cover
Story
Balancing celebrations
with prudenceAfter nearly two years of uncertainty, it is natural to want to
splurge during festive occasions. But, there are ways to
ensure that our expenses stay on track.
Cover
Story
NOVEMBER 2021 | VOL. 6
Savings
Festive
Spends
Shop Wisely
Make a list of all that you need and shop accordingly. This will help you avoid impulse
shopping, which is very common during festive sales.
Use EMIs to spread out a large expense, into smaller parts
Keep a watch on expenses that are purely for consumption and avoid over-indulgence in them.
Be conscious of the investment-consumption spectrum
Pure
Consumption
Pure
Investment
Eating out
Clothes
Entertainment
New Home
Gold
New SIPs, FDs, Stocks
1. Make a shopping list:
Allocate a fixed amount for festive shopping. Select the gifts and other articles, such that
they fit within your budget and accordingly prepare the shopping list.
2. Stick to a budget:
There are offers galore during the festive season that can help
you save money. Check out the amazing offers during ICICI
Bank’s Festive Bonanza.
3. Look out for deals and offers:
Use EMIs for your festive shopping, so that your regular monthly investments are not affected by any large
outflows from your account.
CHECK FESTIVE BONANZA OFFERS
FESTIVEFESTIVEBONANZABONANZA
6 EMIs of ₹20,824 each`1.2 lakh
KNOW MORE CONVERT CREDIT CARD TRANSACTIONS TO EMI
The best gift ever
that no one can take away from your kids
For a parent, the most important goal after their child’s health, is
their education. On the occasion of Children’s Day, the best gift
you can give your child, is a great education.
This requires careful planning, since quality higher education can
be expensive.
Cover
Story
NOVEMBER 2021 | VOL. 6
Scenario 1: Higher education is 3 or more years away
Scenario 2: Higher education is close at hand
Follow the below steps to build your child’s education kitty:
Start early and use the power of compounding, to reach your goal in time1
Factor in inflation while planning. Equities have the potential to beat inflation, so you can
invest directly in Equities
2
Remember that the value of money decreases with time, thanks to inflation. Analyse and
factor in the cost of education in the future, so that you know how much to save
3
Review your goal at regular intervals
Contact your Relationship Manager for the same
4
In case you want to send your child abroad for higher education, start sending money
abroad under Liberalised Remittance Scheme, to save in foreign currency and mitigate
impact of changes in forex rates
5
If you need funds for higher education at a short notice, you can apply for an Education Loan. You can get a
loan without security, up to ₹40 lakh and save income tax under section 80E on the interest paid.
INVEST IN SIP* OPEN AN RD OPEN A PPF ACCOUNT
APPLY NOW
START INVESTING IN EQUITIES
Children’s
Day
NOVEMBER 2021 | VOL. 6
Cover
Story
As parents, we take a great deal of effort to ensure that we teach
various skills to our children - be it sports or art or phonetics. But
most of us leave the most important life skill - 'Personal Finance
Management’ - to be learnt with experience, time and age.
Importance of Saving Providing monthly pocket money to your kids is a great way to inculcate the
habit of saving money. Let your children buy whatever they want with their
savings. Let them learn to manage their own money.
Importance of Goal SettingWhen your children ask for something expensive, teach them about
financial goal setting. Once a goal is set, you can add some initial amount,
but for the rest, help them pool all their resources, such as pocket money,
gifts from family and friends, etc.
Importance of BudgetingAllow your children to organise their birthday parties all on their
own. Hand over a specified budget to them and let them plan and
execute, with a free hand. This will teach them the art of planning
and budgeting.
Introduction to BankingOpen an ICICI Bank Young Stars Account, an iWish RD or a Pockets
wallet for your child and transfer the pocket money there. This will help
them learn about bank statements, interest income, e-wallets
and much more.
Here are four interesting ways to introduce
kids to personal finance:
Keep your children loved,
yet rooted
OPEN IWISH GET POCKETSKNOW MORE ABOUT YOUNG STARS ACCOUNT
A guide to IPOsThe last few months have seen a lot of high-profile IPOs, i.e. Initial Public Offerings being launched.
What’s more? The next few months have many prominent IPOs lined up. What better time than this, to
learn all about IPOs!
FinGuru
NOVEMBER 2021 | VOL. 6
What is an IPO?
When a privately-owned company
offers its shares to the general public
for the first time, it is called an IPO
or an Initial Public Offering.
Through the IPO, an unlisted company becomes listed in the stock market and its shares can be bought and
sold by the public.
When you buy a share in an IPO, you become a shareholder in the company, i.e.
you become the owner of a specific ratio of the company, based on the shares
you have invested in.
Why do companies launch their IPOs?
What are the advantages of investing in an IPO?
The complete information about the price valuation of equity shares in an IPO is available in the
prospectus filed by the company and is available publicly
This changes after IPO, when the price would depend on the changes in the sectorial performance
and investor interest.
Promoters
Venture
Capitalists
Other
Private
InvestorsPromoters
Public
Corporate
Investors
Public
Retail
InvestorsIPO
Opportunity to act early
You can buy shares in the company before they start getting traded in the stock markets and their
prices get impacted by forces of demand and supply
Price transparency
Long-term benefits
Investing in an IPO may help you get good returns in the long term, subject to market conditions
To raise capital for
expanding the business
To dilute the ownership
of venture capitalists or
other private investors
To pay off debts
FinGuru
NOVEMBER 2021 | VOL. 6
What should one do before investing in IPO?
Do an in-depth research
Before investing in an IPO, try to learn as much as you can about the company - its
past performance, financial records, how it fares when compared to its competitors,
press releases etc.
Look at the underwriters
Look at the banks/brokerage firms that act as underwriters, i.e. conduct the IPO
proceedings
Be cautious
Always be cautious when underwriters promote an IPO with claims of glowing
prospects
Consider the issue price
Evaluate the price at which shares are offered. To do this, compare with the share
price of a listed company in the same line of business and of a similar scale
`
Go through the prospectus
The prospectus has detailed information on the company's past financial records -
revenue, profits/ losses, debts etc.�
Best
Don’t fall for the hype or the brand
Don't invest in something just because people tell you it will do great or because it is
popular
A reputed brand doesn't guarantee a good IPO. Don't invest in an IPO because you
think the prospects of the brand are great. Look at the records of the specific
company that is offering the shares
CHECK YOUR RISK PROFILE
Ensure that you check your risk profile before investing
FinGuru
NOVEMBER 2021 | VOL. 6
OPEN NOWApply for IPOs with ICICI Bank’s 3-in-1 Savings, Demat & Trading Account
CHECK NOWKnow your risk profile before investing
Process for submitting a bid through the ASBA mechanism
ASBA (Applications Supported by Blocked Amount) allows the bank to block the application money in the
bank account for subscribing to an issue. The application money gets debited only if application is selected
for allotment.
Submit ASBA
physically or
electronically
to the bank
Bank blocks
the application
amount in
specified
accounts
Bank uploads
the application
data in the
electronic
bidding system
Application
money is blocked
until the
finalisation
of allotment
On allotment,
the relevant
bank account
is unblocked and
requisite amount
is transferred to
the issuer’s account
How does one invest in an IPO?
Investing
in
IPO
Decide where
to invest
Arrange
funds
Open a Demat
and Trading
Account
Apply for an
IPO (using
ASBA)
Bid, as per
lot sizes
Wait for share
allotment
to happen
Wait for
stock listing1
2
3
45
6
7
Herd MentalityHerd mentality in investing is following what other investors are perceived to be doing, rather than taking
decisions based on your own objective analysis. What is touted as ‘information’ is often someone’s opinion,
which herd mentality leads you to believe as ‘facts’.
FinGuru
NOVEMBER 2021 | VOL. 6
Invest in stocks that appear to be trading for less than their intrinsic or book value (Value Investing)
For any assistance, contact your Relationship Manager or reach out to your nearest ICICI Bank branch
Many of your friends are buying gold and not wanting to be left out, you also buy gold
Your friends, relatives are selling mutual funds fearing market may crash further and you also
follow the same
Examples of Herd Mentality
Herd Mentality in action
Buy and sell in contrast to the prevailing stock market sentiment (Contrarian Investing )
Have a disciplined approach in investing, i.e. invest as per your risk profile, make a financial plan
and stick to it, irrespective of market movements
How can you avoid falling prey to Herd Mentality?
In a bull market, you end up buying/
investing at very high prices, because
you don't want to be left behind.
Herd Mentality in bull & bear markets
Buy Low and Sell high = Success of investing in markets
Number of Buyers
`
Opposite happens when we make investment decisions based on Herd Mentality
In a bear market, you sell/ redeem at
very low prices because you feel what
others are doing is right and you don't
want to make more losses.
Herd Mentality
Sh
are
Pri
ce
Buy Low
Buy High
``
```
KNOW YOUR RISK PROFILE
Warm wishes
of the festive season!
As we celebrate the festival of lights, let us apply the dos and don’ts
of celebrations in our finances as well.
NOVEMBER 2021 | VOL. 6
Take care of risks:
We wish you and your loved ones health,
wealth, happiness and peace.
Cover
Story
Just like we take care to not wear loose or flowing clothes near lighted
lamps, let us also invest with care after evaluating and understanding risks.
We put a great deal of thought in choosing just the right gifts for our loved
ones. Similarly, let us choose the right investments based on our age,
goals, investment tenure and risk appetite
Just before the festive season, we embark on a cleanliness campaign at
home, and dispose goods that we no longer require. In the same manner, we
can review our investments and get rid of those that no longer meet our
goals.
We light lamps to banish darkness. Similarly, let us use the light of
knowledge to dispel the darkness of lack of information about finances and
investments.
Add a personal touch:
Do a thorough clean up:
Dispel the darkness:
Safe Banking tips to
safeguard festive joy
November 14-20, 2021 is International Fraud Awareness Week. Let us follow the below safe
banking tips so that we secure ourselves against frauds and safeguard the spirit of cheer and
celebration .
NOVEMBER 2021 | VOL. 6
Safe
Banking
Never download any application from unverified/unknown sources
One should not click on unknown links, and should delete the SMS/e-mail immediately,
to avoid accessing them in the future. Care should be taken to verify the website details,
especially where it requires entering your financial credentials
Never share your UPI wallet PIN, card details like PIN, One-Time Password (OTP),
CVV, expiry date, grid value, types of card (Visa, Master, Rupay etc.) with anyone, even if
the person claims to be from a bank
Bank officials/financial institutions/any genuine entity never asks the customer to share
their confidential information, such as Username/Password/Card details/CVV/OTP
Do not download or activate the screen share feature, with unknown people
Always remember that to receive money there is no need to enter your PIN/ Password,
anywhere
Never scan a QR code for receiving payments
If the UPI or any other app asks you to enter your PIN to complete a transaction, it
means you will end up sending money, instead of receiving it
Do not transfer funds, without knowing whom you are transferring it to. Ensure due
diligence
Send and Receive Money Safely
Stay safe online
Sharing is not always Caring
`
x
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*ICICI Bank Limited is a AMFI Registered Mutual Fund Distributor. Mutual Fund investments are subject to market risk. Read all
scheme related documents carefully. T&C Apply.
Do you have any doubts or questions about
personal finance? Ask us!
E-mail us at [email protected],
from your registered email address.
We will answer as many questions as possible,
in the next volume of The Orange Book.
NOVEMBER 2021 | VOL. 6