WHY INVESTMENT IS NECESSARY AT EARLY STAGE…….Elite Wealth Advisors will give you best services for:- *Finance Planning *Wealth Management*Portfolio Management ServicesFor More Call us -011-40000919 or visit us
http://www.elitewealth.in
Contact Us
25 Years
What is the Average Age when one starts Earning?
Contact Us
What is the Average Retirement Age?
60 Years
Contact Us
Rs.15,000/- p.m.
What is an Average Income of anMiddle-Class House-hold?
Contact Us
Rs.5,000/- p.m.
How much can a personsave on a regular basis?
Contact Us
If a person can save Rs.5,000/- per monthWhat will be his wealth when he retires?
Assuming: He increases his investments by 5% every year
Invests in an Asset class that gives returns of 20%
Contact Us
At Age 60 his wealth would have been
Rs.27 Crores
Contact Us
4.90 Crores*
27 Crores*
40 years25 years 60 years
Ram ShyamSavings Starting Age 25 40
Savings - Monthly SIP Rs.5,000/- Rs.15,000/-
Saving Years till age 60 35 years 20 years
Total Amount Saved (appx.) Rs.57 lacs Rs.62 lacs
Give time to your investments rather than timing
Assumptions: (a) Savings grows at 5% annually (b) Returns assumed at 20% CAGR
Give time to your investments rather than timing
START EARLYContact Us
INVEST REGULARLY Builds wealth over the long term
Just Rs. 1500 per month invested for 17 years @10% would grow to approx Rs. 8 lakhs…could be used for your daughter’s marriage
Take advantage of market volatility Buy more when the markets are down
Rs. 10,000 worth of Gold bought every month
5600 5400
61005900
6650
6070
57006000
5000
58005400
6100
4000
4500
5000
5500
6000
6500
7000
J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec
Pric
e pe
r 10
gram
s
Highest priceLowest
quantity
Lowest priceHighest quantity
20 grams 15
grams
Contact Us
It is the small drops that make an ocean!! Relieves you of the last minute pressure Slow and steady wins the race
o E.g. Split your Sec 80C investments into smaller amounts and invest every month
Reduces the risk of investing at the wrong timeo Difficult to predict the market and know when is the right time
We earn regularly; We spend regularly
Shouldn’t we also invest regularly?
INVEST REGULARLYContact Us
A small amount invested regularly can grow to substantial lumpsum
A=P*{(1+i)**n-1}/i*(1+i)
…….It all adds up!
0
5
10
15
20
25
1 5 9 13 17 21 25 29
No. years
Rs. L
akhs
Rs. 22.6 lakhs
30
Rs.1000 invested every month for 30 years @10%
INVEST REGULARLYContact Us
One time investment of Rs.1 lakh invested for 30 yrs
@ 6%
5.7 lakhs
@ 10% @ 15%
17.45 lakhs 66.2 lakhs
Earn more…it can make a big difference
A= P(1+r)**n
EARN MOREContact Us
POWER OF COMPOUNDING - QUIZ
Rs. 10,000 invested every month for a period of 30 years
At 8% -
At 15% -
At 20% -
1.5 crores
5.6 crores
15.5 crores
EARN MOREContact Us
Create Wealth
Start Early
Invest Regularly
Make your money work hard for you
0
1,000
2,000
3,000
4,000
5,000
6,000
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
Earn More
The Formula for Creating Wealth
Contact Us
NEED FOR FINANCIAL PLANNING
One of the most common reasons cited for not doing proper
financial planning is “if I continue to earn as much as I do now, what
is the big problem? And always my salary will only increase with
experience and hence I will always have enough money at hand for
unexpected expenses and regular living expenses.”
The objective of financial planning is to ensure that the right money
is available to the investor at the right time to enable him to meet
the different goals in his life.
Contact Us
NEED FOR FINANCIAL PLANNING (contd..)
Examples:
Saving to buy a car costing around Rs 3,50,000 after 3 years. Investing for higher education of children where money is
required after 10 and 12 years. Planning for retirement to meet expenses for 25 years after
retirement. Investing to save taxes in an efficient manner. Passing on wealth to the next generation (estate planning) etc
Contact Us
Medical CareExpenses
Unemployment
Property Losses
Protection against
Personal Losses
Long Term Care Expenses
Emergency Funding
OBJECTIVES
OBJECTIVES OF PERSONAL FINANCIAL PLANNING
Contact Us
THE MILLION DOLLAR QUESTION
I am convinced that I should save and invest regularly,
but the million dollar question is…
Where should I invest?
Contact Us
A PERSONAL PLAN FOR INVESTING
1. Establish realistic goals
2. Determine the amount of money needed to meet your goals
3. Specify the amount of money available to fund your investments
4. List different investments you want to evaluate
5. Evaluate risk and potential return for each
6. Reduce possible investments to a reasonable number
7. Choose at least two different investments
8. Continue to evaluate your investment program
Contact Us
INVESTMENT AVENUES
Investment Avenues
Equity Shares
Money Market Instruments
Life Insurance Policies
Precious Objects
Non-marketable Financial
Assets
Bonds
Mutual Fund Schemes
Real Estate
Financial Derivatives
Contact Us
RISK-RETURN TRADEOFF OF VARIOUS INVESTMENT AVENUES
Contact Us
SAFETY AND RISK
The Risk-Return Trade-Off Choosing higher risk investments, investors expect higher
returns
Contact Us
When Diversification Works
Must combine stocks that are not perfectly positively correlated with
each other to reduce variance.
The greater the negative correlation between two stocks, the greater the
reduction in risk achieved by investing in both stocks
The combination of these stocks reduces the range of potential outcomes
compared to 100% investment in a single stock.
It may be possible to reduce risk without reducing potential return.
Contact Us
Adding More Stocks to the Portfolio: Systematic and Unsystematic Risk
Total risk is made up of two parts:
1. Unsystematic or Diversifiable risk and
2. Systematic or Non-diversifiable risk.
Unsystematic risk, Company specific risk, Diversifiable Risk
– product or labor problems.
Systematic risk, Market risk, Non-diversifiable Risk
– recession or inflation
Well-diversified portfolio -- one whose unsystematic risk has been completely eliminated.
– Large mutual fund companies.
Contact Us
Adding More Stocks To The Portfolio: Systematic And Unsystematic Risk
As the number of stocks in a portfolio approaches around 25, almost all of the unsystematic risk is eliminated, leaving behind only systematic risk.
Contact Us
Portfolio Management Process
Specification of investment objective and constraints
Choice of asset mix
Formulation of portfolio strategy
Selection of securities
Portfolio execution
Portfolio revision
Portfolio evaluation
Contact Us
Area of Knowledge required by Financial Planner
Developing personal financial statements and budgeting
Investment decisions and strategies
Retirement Planning
Insurance
Taxes and their implications on personal financial decision
Estate Planning
Knowledge of Law, Standards & Code of Ethics
Contact Us
Warren Buffett Investment Principles
Look for the absence of change. Look for the business whose only change
in the future will be doing more business.
Its far better to buy a wonderful company at a fair price rather than
buying a fair company at a wonderful price.
Be fearful when others are greedy and greedy only when others are
fearful.
If someone tells you they have a “foolproof” method to get rich in the
stock market, run, don’t walk, for the nearest exit.
Contact Us
Warren Buffett Investment Principles (contd..)
View stocks as businesses, not pieces of paper.
There are times when doing nothing is a sign of investing brilliance.
Take a close look at management.
Read, Read some more and then Think.
A few good investments are all that is needed.
Know the value of something rather than the price of everything.
Contact Us
We can direct our savings in such a manner that we create wealth,
the way we wish
DISCIPLINED SAVINGS +
SUFFICIENT TIME+
RIGHT ASSET CLASS=
Smart Investor’s Preference
Using The Wisdom
Contact Us
Elite Wealth Advisors LtdMake Your Money Work For You
Why Elite Wealth
Become Your “Financial Ally” – Coordinating all aspects of your financial infrastructure
Make Smart Decisions About Your Money
One Point of Contact for all Financial Matters
Provide Integrated Investment, i.e. – Retirement, Tax, Insurance, Wealth Accumulation Advice & Specialized Financial Service
Help you to align your values and finances in pursuit of your stated goals, whatever they might be!
Contact Us
Elite Wealth Advisors LtdMake Your Money Work For You
We enjoy a trusted relationship with our clients because we give them honest appropriate
advice.
Contact Us
CONTACT US
Registered OfficeS-110, Sahara Mall, M.G.RoadHaryana-122002Ph # 0124-4068107
Corporate Office S-8, DDA Shopping Complex, Near Jeevan Anmol Hospital, Mayur Vihar Phase-1, Delhi-110091.
Ph: 22758145, 22758165,22755894,22755896, 43035555(90 Lines) Fax: 011-22793402
Visit: www.elitewealth.inE-mail: [email protected]
Branch – Sarita Vihar B-104,LOCAL SHOPPING COMPLEX
SARITA VIHAR , DELHI-110044, Ph-26972552/57,41000784
Branch - Greater Noida 604,TRADEX TOWER-1,3-B,
ALPHA COMMERCIAL BELT,OPP.GOLF COURSE,, GREATER NOIDA -201306Ph-0120-2321156, 2326851/52, 2321149 Fax-4298286
Elite Wealth Advisors LtdMake Your Money Work For You
Contact Us
Elite Wealth Advisors LtdMake Your Money Work For You
Contact Us
