2. Chennai DIY Investor Workshop

3. Objective Make us think Take action, immediately, consistently and feel in control

4. Cash Flow Home Loan EMI Unexpected expenses Save for Short-term goals Invest for long-term goals Monthly expenses Retirement

5. Protection! Insurance Investment Saving

6. 6. Action Plan insurance 4. Accident insurance 1. Term Life insurance 2. Emergency insurance 3 Health insurance 5. Inflation insurance

7. Power of non-compounding Power of compounding does not matter for ~ 5Y or less

8. Dividing the goal timeline ~ 5 years Save Invest

9. Recurring Goals Insurance premium, School fees, AMC fees etc. Use RDs, If comfortable liquid debt fund.

10. Short-term goal (0-3) years Only fixed income Fds and RDs If comfortable, liquid funds and ultra-short term funds (above 1Y )

11. Short-term goal (<3-5) years Only fixed income Fds and RDs Consider debt mutual funds – liquid funds, ultra-short term funds

12. Intermediate term goals (5-10Y) ‘Some’ equity/stock exposure will help ‘Less’ for important goals (10-30%) ‘More’ for less-important goals (30-70%) Rest in fixed income, debt mutual funds

13. Long-term goals (10Y+) Equity/stock exposure essential About 50-70% Rest in fixed income, debt funds, PPF (15Y+), EPF (retirement) (don’t switch to NPS!!) Do not invest 1.5L in PPF!

14. Retirement Planning

15. Pension

16. Indexed pension

17. Cash Flow Home Loan EMI Min 10% buffer Fix savings Amt for short-term goals Remaining = investible surplus Monthly expenses

18. Investible Surplus Short-term goals Individual long-term goals retirementSon’s education Daughter's education

19. Investible Surplus Short-term goals Singe portfolio For long-term goals

20. Single long-term portfolio

21. How Important is Mutual Fund Selection?

22. Large Cap funds 10-year old funds: 34 13 index + LIC Nomura+ JM fund 10 year SIP XIRR Baroda Pioneer Growth: 13.44% UTI Equity: 16.82%

23. Mid and Small-cap funds 10-year old funds: 20 17 + Sahara+Escorts+Taurus 10 year SIP XIRR Can Rob Emer Eq: 23.26% Kotak Mid-cap: 17.68%

24. How to select an equity mutual fund? Decide on the strategy. (1)Why are you investing? (2) What kind of portfolio will you be using?

25. Minimalist equity portfolios 1 large cap mutual fund + 1 mid/small cap fund 1 large and mid-cap fund 1 equity-oriented balanced fund

26. Mutual Fund Screener

27. An approach to understanding investment risk

28. A lump sum investment in ICICI Top 100 Rs. 10,000 invested on 1 st Jan 2003 would have grown to Rs. 1.19 Lakhs on Dec 31 st 2014. Return = 22.91%

29. Annual Returns of ICICI Top 100

30. Understanding the 22.9% CAGR = 22.9%

31. Annual Returns of ICICI Top 100 Average: 29.3% Standard Deviation: 38.6%

32. What can I expect from ICIC Top 100? Average: 17.5% Stdev: 13.7% 17.5% +/- 13.7%

33. Sensex Total Returns Index: 1979 to 2013

34. 0% 10-30% 50-70%

35. Equity mf investing: What to expect!

37. Oct 2001, after 6+ years and 74 SIP installments, FIBCF had an XIRR of …..0% Journey of a Mutual Fund SIP

38. How to select a debt mutual fund?