1. Welcome to Tax & Investment Planning Seminar

4. Section 88 100,000/= Rs. 30,000/= Infrastructure bond LIC, PPF, CPF, and pension plan..etc-40K 40,000/= ELSS-10K Repayment of Housing loan principal-20K

5. Other Deductions Section 80 CCC: Jeevan Suraksha upto Rs. 10,000/= Section 80 D :Upto Rs. 10,000/= towards mediclaim Section DD:Handicapped dependant expenses upto Rs. 40000/= Section 80 DDB:Medical expenses towards chronic disease - upto Rs. 40,000/=

6. Section 24 (I) Upto Rs 1,50,000/- paid towards interest on housing loan is deductible from taxable income. Recommendation Make a house - don’t just live in it.

7. Myths: Insurance is just another tax saving instrument. I do not need an insurance now. May be later... Why wait for 30 years? - let me take a policy for 15 years (or may be 10). Insurance The Facts: Lower the age, lower the premium, - higher the age higher the premium. As we get older - Health becomes a major impediment to getting high insurance cover. Longer the duration of policy - lesser is the premium.

8. A THIEF CALLED INFLATION

9. Inflation ….The silent killer! Present cost of living RS. 20,000 p.m 30 yrs from now Rs.3,83,887 p.m. Retire today Rs. 20 lacs @ 12% Retire 30 yrs from nowRs. 3.83 crores

10. Value Of Re. 1 Invested In 1980 (Rs.) Rs. 33.52 Rs. 4.81 Rs. 11.21 Stocks Co. Deposits Bank Deposits Period - April 1980 to December 1997

11. Value Of Re. 1 After Taxes (Rs.) Rs. 13.80 Rs. 3.00 Rs. 5.44 Stocks Co. Deposits Bank Deposits Apr-80Oct-82Apr-85Oct-87Apr-90Oct-92Apr-95Oct-97 0 5 10 15 Period - April 1980 to December 1997

12. (Rs.) Rs. 3.16 Re. 0.68 Rs. 1.24 Stocks Co. Deposits Bank Deposits Period - April 1980 to December 1997 Value Of Re. 1 After Taxes & Inflation

13. Post inflation & Taxes Recap - value of 1 Rupee in 17 years.

15. Equities are the best long term bet Investment avenues

16. Carry out extensive research and identify the right share/company. Identify a reliable broker. Track your investment regularly. How do we invest in equities or Company Fixed Deposits? Time …is money

17. MUTUAL FUND AS AN ENTITY - IT IS A TRUST AS A CONCEPT - IT IS A SERVICE AS A FUNCTION - IT IS INVESTMENT MANAGEMENT

18. What Is A Mutual Fund? It is an investment company through which an investor can pool his money with other investors who have a similar objective.

19. Mutual Funds: A Packaged Product Diversification Liquidity Professional Management Convenience Tax Benefits

20. Mutual Funds & Tax Benefits INCOME TAX BENEFITS CAPITAL GAINS BENEFITS Section 112 Section 88 Section 88 (2)

22. RISK Vs RETURNS RETURN Time RISK BALANCED FUND DIVERSIFIED EQUITY SECTOR INCOME FUND BANK FD EQUITY

23. Mutual Fund - The Top Scorer FDsFI BondsOpen-ended Mutual Funds Accessibility LowLow High Tenor Fixed (Medium)Fixed (Long)No Lock-in Min. Investment Rs. 1000Rs. 5000Rs. 500 Tax Benefits None80L80L, 112 Liquidity LowVery LowVery High Convenience MediumTediousVery High Transparency NoneNoneVery High

24. What Is Wrong With The Way We Save? èOver 50% of our household savings are invested in assets that are èpoor inflation fighters ènot tax efficient. èOur saving habits are not disciplined and systematic in approach èWe face the possibility of outliving our savings.

25. EFFECT OF COMPOUNDING (Re. 1 invested for 30 years) Rs. 4 Rs. 17 Rs. 67 Rs. 234 Rs. 808 SB LIC PPF NSC Bk FD COM FD BUSINESS OR EQUITY

26. Invest Early Anu starts investing at 25 year’s age Invests Rs. 5000 monthly for 10 years Total Investment : Rs. 6 lakhs Prakash starts investing at 35 year’s age Invests Rs. 5000 monthly for 25 years Total Investment : Rs. 15 lakhs Who has more money at the age of 60? BOTH ARE OF SAME AGE

27. Invest Early It costs Prakash Rs. 3.1 crores to wait 10 years Anu has Rs. 4.6 croresPrakash has Rs. 1.5 crores At the age of 60…. Assumed 15% p.a. compounded annually

28. START EARLY; SAVE REGULARLY Every Year Counts * Return of 15% p.a. 7,643,653 330,000 10,133,456 350,000 Saves from age 25 to 60 Saves from age 27 to 60 Saves from age 30 to 60 SavingsReturns * 300,000 4,999,569 Rs. 10000/= p.a. or Rs.833.33 p.m.

29. Identify Objectives Harness the power of compounding – Start early – Focus long-term - Stay invested Be aware of the effects of inflation & taxes Diversify Strategy To Smart Investing

30. SUMMARY Banks effectively destroy purchasing power. Manage salary pro-actively and get that raise in salary. Insure adequately - 5 times annual gross. Have liquidity in Income Funds. Use all products - judiciously and maximize your wealth. Be disciplined.

31. MUTUAL FUNDS LIFE INSURANCE GENERAL INSURANCE PRIMARY AND SECONDARY MARKET OPERATIONS RBI BONDS, POST OFFICE DEPOSITS, NSC 54EA INVESTMENTS HOUSING LOANS (IDBI BANK) REAL ESTATE (BUYING AND SELLING OF PROPERTY) INVESTMENT OPTIONS