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Investment Planning

Rtn.K.Raghu Past President Rotary Bangalore Peenya

Investment Planning
Investment Scenario 2005-2006

Booming Indian Economy Emergence of the Smart Investor Investor friendly Capital Markets Rewarding year for investors in capital markets, mutual funds and real estate Increased FII participation

Investment Strategy

Develop a habit of small savings Save for a rainy day since future is uncertain Pay your liabilities as soon as possible Plan for your retirement Create a source for Passive Income eg.Rental Income and Dividend income Invest in Tax Saving Investment schemes Spend less than what you earn Take person interest in Investment decisions

Investment Mix
Your investment portfolio should take care of your : Current needs of your family Children educational needs Childrens Marriage Buying a House Pension during retirement.

Tips for Investing Safely and Rightly

Dont make your investment decisions on hear say. Understand risk factors linked to investments Review and track your investments periodically. Buy Insurance for coverage and not tax purposes. Take the help of an Investment Consultant

Investment Tips for Beginners

Start saving and investing early in life. Prepare an investment roadmap. Invest in a diversified portfolio. Buy insurance for coverage and not tax purposes. Invest in Stocks if you are prepared to take risks. Invest in Mutual Funds if you are prepared to take moderate risks. Have an investment discipline.

Essentials requirements for a Good Investment

Safety Liquidity Return

Investment Options

Life Insurance Post Office Schemes Equity Shares Mutual Funds Company Deposits Bank Deposits Real Estate Gold and Silver

Equity Shares

Capital Appreciation Bonus Shares Annual Dividend Right Shares Can be pledged as a security Easy liquidity

Equity Shares - Problems

Changing Market Value. Uncertain government policies. No guarantee of profits. Need for constant monitoring Oversubscription of IPOs Professional Guidance required for making right investment in shares.

Life Insurance

Protects you and your family Promotes regular savings Tax Benefits Earn attractive bonus

Insurance Dos and Don'ts

Keep your premiums affordable Choose a right plan Dont over /under insure Pay premiums on time since partly paid policies are not eligible for bonuses. Revive Lapsed policies Keep your spouse informed about your Insurance coverage. File all the insurance receipts. Ensure you nominate your spouse. Consult a good insurance advisor.

Post Office Schemes - Options

Post Office Monthly Income Scheme National Savings Certificate Kisan Vikas Patra Public Provident Fund Senior Citizens Saving Schemes 5 year Recurring Deposit Time Deposits

Post Office Schemes Features

Backed by Government of India Tax Benefits Suitable for small investors Attractive rate of interest Liquidity

Mutual Funds

Professionally managed Diversification of risk Daily NAV High Liquidity Tax Concessions Freedom of Emotional attachment Automatic re-investment of Dividend Freedom from Monitoring and housekeeping

Bank Deposits

High Safety Low Interest High Liquidity Easy to manage

Bank Deposits - Suggestions

Keep Small Deposits Less than One lakh Deposits should be in Joint names Renew Matured Deposits New Tax benefits from FY 2006-2007 Rs.1,00,000 under Section 80 C

Mutual Funds - Options

Equity Funds Bond Funds Balanced Funds Tax Exemption Funds Liquidity Funds

Mutual Funds - Dangers

No guaranteed return Risk of inefficient management

Real Estate

Agricultural Land Farmhouses Urban Land Residential Property

Real Estate -Advantages

Emotional Satisfaction Savings of Rent Huge Capital Appreciation Tax Incentives Easy availability of Home Loans

Tax Benefits for Investments Under Section 80 C Rs.1,00,000

Provident Fund Public Provident Fund Life Insurance Pension Funds Infrastructure Bonds National Savings Certificate Kisan Vikas Patra Equity Linked Savings Scheme


World of investments becoming more interesting, exciting and complicated. Proliferation of various Investment schemes Investment Planning is a must for every person.. Investment Planning thus involves Intelligent analysis, judicious decision making and a strong sense of visualisation.