Me and my_finance

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Me & My FinanceJ.Karthikeyan

Director, Finerva


Agenda for the Day

• Money – Concept Behind It• Value of Money• Money Creation• Leveraging Concepts• Understanding a Business Newspaper• Your Way Ahead


Money – Concept Behind It

• Money is a measure of value exchanged

• More Money is not a Sin. It is greed for money which leads to Sins.

• Money can help us – Have Immediate Pleasure– Achieve Goals


Time Value of Money

• Power of Compounding

• Power of Regular Investment


Money Creation

• Money Creation = Value Creation

• Value Creation– By Being Employed (Employees)– Offering a Service (Professionals)– Running a Business (Business

People)– Owning a Business (Investors)


Leveraging…

• To Increase Value Creation• Borrowing – Taking a Loan

– Banks– Where do Banks get their Money from?– Regular payouts irrespective of profits

Ram borrow from Sam Rs.100,000 @ 8%

Year 1 Year 2

Loss Rs.20,000 Profit Rs.40,000

Payout Rs.8000 Payout Rs.8000

For Ram Loss Rs.20,000 For Ram Profit Rs.32,000


…Leveraging…

• Sharing Ownership– Partners– Payout Only When In Profits

Ram partners with Sam both invest Rs.100,000 each

Year 1 Year 2

Loss Rs.20,000 Profit Rs.40,000

Loss Suffered Rs.10,000 each

Profit Earned Rs.20,000 each


…Leveraging

• Higher Level of Leverage – Shares– Transferability– Higher Liquidity– Higher Safety– Runs on Fundamentals – Long Term– Swayed by Emotions – Short Term


Understanding a Business Newspaper

• Interest Rates• Why did TATA Chemicals share price drop

when there was good news?• Who are FIIs?• What is an Index? Nifty, Sensex, Others?• How do I Invest? (Why a Mutual Fund?)


Road Ahead…

• Indian Financial Markets is huge – Rs.4000 crores Per Month Life Insurance, – Rs.91,000 crores turnover in Shares Per Day,– Rs. 5,50,000 crores in Mutual Fund Assets

• 1,00,000 Opportunities to be Employed

• Opportunity to Excel – Abundant Fields

• Excellent Salaries, Business Opportunities


…Road Ahead

• Acquire Knowledge• Develop Skills• Develop a Professional Attitude• Learn Decision Making in Abstract Situations• Look Before You Leap• Look at the Whole Picture• Be Innovative• Take Risks• Be Positive


Summary

• Value for Money• Value Creation – Leverage Methods• Understanding Business papers• Opportunities For You• Expectations From You


Date post:	25-Dec-2014
Category:	Economy & Finance
Upload:	finerva-financial-wisdom
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Me and my_finance

Economy & Finance