Way to Wealth . . .

Welcome
ING – A Complete Solution . . . Way to Wealth

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Paisa sirf Paisa nahi hai ……………..

Phir Bhi ….

Paisa bahut kuch hai …………….

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Earn Spend Save

Financial Failure

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Earn Save Spend

Financial Dependence

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Earn Save Invest Spend

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It means making money work for
you, while you work for money

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How my money will work for me ?

by way of Planned Investments

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 Three GOLDEN rules of Investment

INVEST EARLY . . .

INVEST REGULARLY . . .

INVEST FOR LooooooNG TERM . . .

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 Benefits of Early Investment

A LATE SAVING by 5 yrs needs 67% MORE savings to

make up the amount within the same time period

An EARLIER WITHDRAWAL by 5 yrs likewise reduces 67%

of the final savings

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 Benefits of Regular Investments with Long Term

Magical word is called power of Compounding

Do you know how much will this amount to?

11Rupee
Rupeesaved
savedper
per
yearover
year overaaperiod
period 10%
10% Rupees63
Rupees 63
of20
of 20years
years

11Rupee
Rupeesaved
savedper
per
yearover
year overaaperiod
period 10%
10% Rupees108
Rupees 108
of25
of 25years
years

Power of Compounding

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 Rule of 72
Tool to calculate doubling

72 divided by the interest rate gives:

The number of years it takes for your money to double with the
given rate of interest

Example: If the interest rate is 6%, the number of years

it takes to double your investment is …
72
= 12 years
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Rule of 72 ……………….

72 divided by the number of years gives

The Compound Interest Rate required for your money to double

In the given number of years

Example: If your money needs to double in 12 years, then the

Interest rate required is…
72 = 6% compound interest
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 How much to invest?

How long to invest?

When to invest?

Where to invest?

What is the best Asset Allocation Strategy?

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SELECTION OF ASSET CLASS DEPENDS UPON . . .

Life Cycle Stage of Individuals

Risk Temperament of Investors

Risk Tolerance Capacity of

Investors

Time Period of Investments

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CONSIDERATIONS FOR INVESTING

Safety Liquidity

Capital
Return
Appreciation

Volatility

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 SAFETY

Soundness of issuer of security to

repay the principal amount and interest
thereon on due dates.

Typically higher the safety, lower the

return

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 LIQUIDITY

Quickness with which you can

convert your investment into cash
and the costs associated with such
conversion.

Typically higher the liquidity, lower

the return.

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 RETURNS

Assured Returns / Un-

guaranteed Returns

Fixed Returns / Floating

Returns

Regular Returns / One Time

Returns

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 VOLATILITY

Fluctuation in returns /
capital appreciation is called
Volatility

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Life Cycle Stages of
Individuals

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 Age in Life … As Well As Stage in Life

Responsibilities

Children’s
Higher Children’s
Children Education Marriage

?
DOB Childhood Career Marriage Pre- Retirement
Retirement

Own Life

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Risk Temperaments of Individuals

 Conservative
 Enterprising
 Speculative

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 What is Risk Tolerance?

It is our :
Ability to understand the volatility
inherent in our investments

Willingness to accept the possibility

of
loss due to volatility, for a
possibility of
greater return

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 Factors affecting Risk Tolerance

Age
 Income
 Family & Dependents
 Saving
 Life Insurance

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RISK REWARD RELATIONSHIP

Higher the safety, lower

the returns

Higher the liquidity, lower

the returns

Higher the risk, higher

the expected returns
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 Options …………….

* Fixed Deposits in Banks

* Gold

* Real Estate

* Direct Equity / Mutual Funds

* Mutual Funds – One time / SIP

* PPF / NSC / Post Office Monthly Income Plan
* Life Insurance

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 Evaluating Various
Investment Instruments

Instruments Safety Liquidity Returns

Bank Deposits HIGH HIGH LOW

Gold MEDIUM MEDIUM MEDIUM

PPF HIGH LOW MEDIUM

PO MIS / NSC HIGH LOW MEDIUM

Real Estate MEDIUM LOW MEDIUM

Equity LOW HIGH HIGH

Insurance HIGH MEDIUM MEDIUM

Mutual Funds MEDIUM HIGH MEDIUM

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SO WHICH IS THE BEST
OPTION TO CREATE
WEALTH???

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Actually it`s different
for every
Individual

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Step 1 - Need Analysis

Step 2 – Calculate your Risk Tolerance Capacity

Step 3 – Selection of Right Instrument

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 Step – 1 : Need Analysis

Responsibilities

Children’s
Higher Children’s
Children Education Marriage

?
DOB Childhood Career Marriage Pre- Retirement
Retirement

Own Life

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Find out yourself . . .

Your Need

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Asset Allocation

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Right Instrument must …

• Having Multiple Benefits .

• Gives you as well as your family a Financial Protection.
• Be used to build financial assets to meet your –
• Children's educational needs
• Children`s marriage needs
• For your own second stage of your life.
• Be able to protect you as per your risk tolerance capacity
• Be helpful in your tax planning too.

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Remember – Money is not … the only Money

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ING is here with you . . .
On your way to wealth

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