investment presentation 1

8/10/2019 Investment Presentation 1

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OVERVIEW

M & M

MAHINDRAFINANCE

MAHINDRAFINSMART


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PRODUCT BASKET

REFINNCE

REFINANCE

INVESTMENT ADVISORY SERVICES

INSURANCE

RURAL HOUSINGFINANCE

PERSONAL LOAN

VEHICLE FINANCE


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MAHINDRA FINSMART


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MAHINDRA FINSMART INVESTMENT ADVISORY SERVICES

MAHINDRA FINSMART

THE ONLY MUTUAL FUND DISTRIBUTOR PAN INDIA


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PROFESSIONALADVICE

PERSONALIZEDSERVICE

REGULARPORTFOLIOSTATEMENT

ONLINEACCESS TOPORTFOLIO

MAHINDRA FINSMART INVESTMENT ADVISORY SERVICES


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MUTUAL FUND DISTRIBUTION

INVEST THROUGH US


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8

SavingsReal Income Value of Expenses

Savings vs. Investments

but due to the effect of inflation

Savings is Money saved from regular income after accounting forall expenditure

Thus the value of savings decreases!

SAVING VS INVESTMENT


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Saving An Indian Religion

Indiansare

amongstthe

highestsaversin theworld! H

o u s e

h o

l d S a v

i n g s R a

t e

A

C o m p a r i s o n

USA1.4%

UK5.5%

Japan6.3%

Germany10.7%

France11.1%

INDIA24.3%


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SAVINGS How we are INVESTING.

Total annual householdsavings in 2004 was$145 bn

It was invested in thismanner

Source: CMIE,Nov04


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Inflation. Actually deflates our savings..


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Inflation Your

ENEMY!

InflationRate

5.05%

Inflation and dailycosts

Commodities Actual cost inMay 2001 (Rs) Actual cost inMay 2005 (Rs)

Expected cost5 years later

(Rs)

Expected cost10 years later

(Rs)

Sugar (per kg) 16.5 20.5 30.8 43.1

Groundnut Oil (per kg) 38 52 78.0 109.5

Onion (per kg) 6 7.5 11.3 15.8

Salt pack (per kg) 7 8 12.0 16.8

Petrol# (per litre) 31.73 43.23 64.9 91.0

Source: Department of Consumer Affairs

# HPCL Petrol Pump


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Inflation and Fixed IncomeInvestments

Consider the 8%taxable RBI

Savings Bonds

Interestrate = 8%

Verynegligiblereturns!

Less:[email protected]%* Less: tax

@33.99%**

i.e. 2.72%Post-tax

& inflationInterest =

0.23%!

Inflation - Your

ENEMY!

* 1 year average of inflation rates (Nov 2007),RBI

** Assuming highest tax rate


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INVESTMENT OPTIONS

FIXED DEPOSITS

BONDS

SMALL SAVING SCHEMES

INSURANCE

GOLD

REAL ESTATE

EQUITIES

MUTUAL FUND


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RISK - RETURNRELATIVE RISK RETURN LIQUIDITY

EQUITIES HIGH HIGH HIGH

FIXED DEPOSITS LOW LOW LOW

SMALL SAVING

SCHEMES

LOW LOW LOW

BONDS LOW LOW VERY LOW

MUTUAL FUNDS MEDIUM MEDIUM HIGH

GOLD MEDIUM MEDIUM HIGH

REAL ESTATE MEDIUM MEDIUM VERY LOW


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Which Asset delivers ?

6.8

7.2

10.4

11.3

17.9

0 5 10 15 20

Inflation

Gold

Bank FD

G Sec

Equity

Source: CLSA

Cumulative Annualized Returns (1985-2006)

Equities are the clear winner..

In %


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THE EMOTIONS OFINVESTING

DOUBT & SUSPICION

CAUTION

CONFIDENCE

GREED

DENIAL

CONCERN

FEAR

PANIC

BUY

SELL

LOSS


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ALWAYS INVEST

FOR THE LONGTERM

SELL WHEN

THEY YELL,BUY WHEN THEY

CRY

HISTORY SHOWS THAT TIME, NOT

TIMING, IS THE KEY TOINVESTMENT SUCCESS

WARREN BUFFET

SIR JOHN TEMPLETON


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So Investments in Equity is theclear choice

But what are the options to invest.

Investing directly in stocks is risky

needs time to understand and expertise


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Here comes the Mutual Fund

A MUTUAL FUND is a pool of money that isinvested in various securities, professionallymanaged by a Fund Manager , with the aim ofmaximizing return and diversifying risk.


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BENEFITS OF INVESTING IN MUTUAL FUNDS

Diversification

Flexibility

Choice of schemes

Professional Management

Convenient administration

Liquidity

Transparency

Well regulated Liquidity


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MUTUAL FUND BASICS

INVESTORS

PROFESSIONALMANAGER

INCOME/DIVIDEND

/TOTAL RETURN


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TYPES OF MUTUAL FUNDS

EQUITY

DIVERSIFIED

INDEX

TAX SAVING

SECTORAL

DEBT

GILT

MIP

FMP

BALANCED

EQUITY

BALANCED


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TWO WAYS OFINVESTING

LUMPSUM SIP


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What is a Systematic Investment Plan(SIP)?

An Example Investing Rs 500 each month in a mutual fund The investment is done at the applicable NAV of the mutual

fund on the date of investment

+ +at regularintervals

A Systematic Investment Plan is an investmentstrategy used in mutual fund investing that allows

investments


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Mr. X has 10,000Where can he INVEST ?

EQUTIES

TIPS NEWS

STUDY

4 5 SECTORS2000 EACH

VOLATILE RETURNS

MUTUALFUND

MONEYINVESTED IN

15-20SECTORS

DIVERSIFICATION PROFESSIONALMANAGEMENT

STABILE RETURNS WITH VERYLOW RISK


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TH NK YOU

investment presentation 1

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