Retire with a smile

Investment solutions…
Think about it, now you never have to ask for a
day off again.
Happy retirement wishes!
All the best for an amazing retirement!
As one chapter ends, another begins, welcome
to your newfound freedom!
Happy retired life is all about enjoying the fruits
of your hard work put in during your active
service life.
You worked hard, toiled and now ready to reap
the rewards.
Rewards are
• Recognition
• Active social life
• Financial security
• Lumpsum payment (ex--gracia, Savings & PF etc.)
• Regular pension
• Returns from investments made
 Problems! Problems!!
House
Social
commitments

Rising Holidays
Medical
expenses

Children
education &
Household
marriage
expenses

Where is the money coming from??

Only source is savings and pension…
Relax! There
are ways
of doing
called Financial things!
planning

Remember!
u can make Saving is
oney work a good
for you habit
nvestment Options

Fixed Deposit Real Estate

Gold
Stocks
nvestment Options – Real Estate
vantages of investing in Real Estate
Can Be Financed and Leveraged
Real Estate is a Hedge Against Inflation
Real Estate Properties Exist in an Inefficient Market
advantages of investing in Real Estate
Stagnant market with lot of unsold inventory with
builders
Higher Transaction Costs
Low Liquidity
Requires Management and Maintenance
"Fools build houses, and wise men buy them." -English Proverb
Case study of investment in real estate v/s MF
You decide to buy property of 75 lakh, with Rs 15 Lakh
as down payment and 60 lakh as Loan @ 10.15%
interest for 20 years.
Total interest paid Rs 80.3 Lakh
Considering rental income etc, total amount paid 1.39
crs With 12% appreciation, after selling you get 5.17
crs..
crs as net gain.
Same EMI invested in MF with moderate returns from
7
7-15% would give 10.28 crs on maturity
Source:
https://www.stableinvestor.com/2015/06/mutual
https://www.stableinvestor.com/2015/06/mutual-
funds
funds-vs-real-estate-investing-india.html
estment Options
d Investment
ages Disadvantages
ving will be free from inflation. The price of gold will Dealers charge premium prices and fees for gold coin
rise
ed as low-risk investment, as gold prices always go up liquidation can be expensive
e long term
ng in gold is more liquid than investments in other Difficult/costly/ Risky to store
e.g. Real estate)
tional Recognition Poor choice for short term investment
ot to follow the Stock Market Possibility of theft
ability You might end up paying a lot of commission to the
the name of the making charges if invested in jewell
antages Gold in itself doesn't create any value . There is no in
value of a gold bar or coins.
How to make the money work??
Strategy 1
• Invest amount received as lumpsum into various investment scheme
• Live off the pension received
F Y NIFTY GWT
CAGR 12%
35%
30%
25%
20%
15%
10%
5%
0%
-5% 2014 2015 2016 2017 2018
-10%

ming ex-gracia payment of Rs 50 lakhss is received and invested. Assuming 12% CAGR growth as explained in a
, Rs. 50 Lakhs will grow to Rs. 4.30 Crs in 20 years, or Rs. 1.93 Crs in FD @7.5% interest and monthly expense
with pension amount (50K/ Month), ), which do not provide any value addition.
rising cost of living, in due course the pension amount may not be enough, and one may have to break the
tments
How to make the money work??
Strategy 2
• Invest amount received as lumpsum into MF investment schemes
• Convert the pension received into SIP
• With intelligent application of SIP/SWP make both funds grow while one SWP takes care of
household expenses.
Case 1: Lumpsum investment for 20 Case 2: SIP for 20 years
years SIP amount/ Mon ₹ 50,000
Investment/ Year ₹ 600,000
vestment amount ₹ 4,400,000
Total investment ₹ 12,000,000
turn with FD ₹ 19,348,422
SIP Returns with strategy ₹ 8,569,037
turn at 12% CAGR ₹ 43,331,307 Total withdrawals in 19 yrs ₹ 11,400,000
turn with Strategy ₹ 60,041,835
FD Interest 7.50%
Total Return Strategy ₹ 68,610,872
ddl. Return ₹ 16,710,528
Without strategy ₹ 43,331,307
Gain over plain growth 139%
Addl. Return ₹ 25,279,565

n 20 years, expected returns from Lumpsum investment of Rs 44 lakhs are expec

o be Rs. 6.0 Crs, and with 50K SIP the returns are expected to be Rs 0.85 Crs. To
eturns expected Rs 6.86 Crs compared to 4.30 Crs in previous case
How to make the money work??
Strategy 2
Year wise growth of both scenarios are as under:
Investment
Strategy Total of Lumpsum Investment
SIP
Gain amount amount in in FD
MF
₹ 66 ₹ 8 ₹ 73 ₹ 66 ₹ 54
₹ 85 ₹ 12 ₹ 97 ₹ 86 ₹ 70
₹ 167 ₹ 25 ₹ 192 ₹ 147 ₹ 98
₹ 327 ₹ 47 ₹ 374 ₹ 253 ₹ 138
₹ 598 ₹ 86 ₹ 684 ₹ 433 ₹ 193
years, expected returns from Lumpsum investment of Rs 44 lakhs are expected t
Crs, and with 50K SIP the returns are expected to be Rs 0.86 Crs. Total return
cted Rs 6.86 Crs compared to 2.60 Crs in simple MF or 1.93 Cr in FD with 7.5
ns
Questions? Questions?? Questions???
1. How does the strategy work?
The strategy is a basic application of math and uses power of compounding
All basic assumptions, market conditions and schemes are identical.
2. Where the money will be invested?
The money will be invested in various MF Schemes based on individual ris
profiling and preference directly by you from your account to the fund.
3. Is my money safe?
The money invested remains in your holding account and is safe sans marke
fluctuations.
4. What are the assumptions made?
Example discussed here is based on last five years NIFTY growth and with
assumption of cycle repeating itself.
itself Actual results may vary depending on
the market movement and fund performance of the finds selected. Please
remember that investment decisions are subject to market risks and investo
is advised to read scheme documents carefully before selecting any fund fo
investing.
5. Who will manage my portfolio?
We will be managing your portfolio and will take your consent before makin
any change
 Questions? Questions?? Questions???
What are the Tax implications?
There are two types of income that one can receive from a mutual fund investment. First i
dividend and second is capital gain/loss at the time of sale. Both have different tax implications.
also depends upon the type of scheme—equityequity or nonequity— and the duration of holding th
investment.

Dividend income
People who have invested in the dividend option receive dividend as an income and it’s tax-free
However, dividend distribution tax (DDT) is applicable and is paid by the fund house at the time o
declaration of dividends. For equity funds, the DDT is 10% plus applicable surcharge and cess. Fo
non-equity schemes the applicable tax depends upon the type of tax assessee —individual or HU
@20%.

Capital gain–Equity funds

Profit made on sale of mutual fund investments is termed capital gain. For equity-oriente
schemes, if the investment is held for 12 months or less, it is termed as short-term capital gai
and taxed at 15%. If the investment is held for more than 12 months, it is termed as long-term
capital gain (LTCG) and taxed at 20%, in case the total LTCG for the year is above Rs 1 lakh.

Capital gain–Non-equity
For non-equity schemes, if the investment is held for 36 months or less, it is termed as short-term
capital gain and taxed at 20%. If the investment is held for more than 36 months, it is termed a
LTCG and taxed at the highest tax slab applicable to the investor.
What additional benefits are available??
We also provide Mediclaim facility from Aditya Birla Capital, which
can take care of medical expenses post retirement period.
Important tips for Mediclaim insurance-
insurance
• Recommended cover = 50 percent of Income + 100 percent of last 3 yrs.
expenses on Health (hospitals).
• Get your self examined to know current condition, this will help in
estimating your medical requirements in immediate future
• Get the list of affiliated hospitals nearby for cashless treatment
Deduction on Section 80D in Income Tax Act (Tax deduction based on Health
Insurance Premiums Paid).Deduction up to Rs. 25,000 per budgetary year for
medical insurance premium instalments are allowed under prevailing tax laws.
The premium should be for self, your spouse, and dependent children. In case
of senior citizen, deductions up to 50,000000 are allowed.
 Who we are? Param Associates
a multi faceted entity providing solutions to customer’s requirements. We are based at Indore havi
e in Delhi NCR & other Metros and can service the needs of our customers in the following fields:
al planning and asset management: We are franchise partner of Motilal Oswal for investing
IPO, Mutual funds & trading in derivatives, currency and commodity markets. We also have ties
itya Birla Capital for investing into MF & SBI Life to provide insurance cover to our customers. W
p in getting loan against securities from Yes Bank.
Bank Home loan and Vehicle loan is arranged throu
Mahindra Bank
ancy services: We provide technical consultancy in the field of steel plant operations, Produ
planning, positioning, placement, promotion and branding. We also undertake inventory positioni
to optimize inventories in a supply chain to maximize customer satisfaction and reduce overall cos
ices: we as a HR Consultant, specializing in providing customized in-house HR solutions with respe
fic Management requirements like Manpower restructuring, Cost optimization - the requirements
blished basis objectives stated by the Organization for immediate transformation.
Contact us at 205, Royal Diamond, Opp SBI, 3 YN Road, Indore 452003
Call us at 8800981333/ 971395050
Mail us at paramsaxena@gmail.com / paramassociates500@gmail.com/