Introduction to investments and insurance

Blue sapphire Financial Services

Introduction to Investments and Insurance

By Ravi Kumar,Financial AdvisorBlue Sapphire Financial ServicesMobile: 9900113820 / 9900253820Email : [email protected] : rkyouradvisor.webs.com

mailto:[email protected]



Blue Sapphire Financial Services


“Don‟t save after what you have

spent, but spend after what you have saved”

- Warren Buffet

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*Primary Articles Inflation, also called as "core base raw materials" include food,tobacco, rubber,…



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* Your purchasing power has been eroded by 94%



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“Rule No.1: Never lose money.

Rule No.2: Never forget rule No.1!”

- Warren Buffet

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“Key Objective of investing is

Capital Appreciation which invariably enhances your purchasing power”

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Mutual Funds

Equities

Initial Public Offering (IPOs)

Deposits

National Pension System (NPS)

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“Mutual fund is a vehicle to

mobilize moneys from investors, to invest in different markets

securities, in line with the investment objectives agreed upon, between the mutual fund

and the investors.”

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“Their primary objective is to

assist investors in earning an income or building their wealth, by participating in the opportunities available in various securities and markets.”

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“Mutual funds seek to mobilize money from

all possible investors. Various investors have different investment preferences. In order to accommodate these preferences, mutual funds mobilize different pools of money. Each such pool of money is called a mutual fund scheme.”

e.g. Franklin India Bluechip Fund, HDFC Index Fund (Sensex), HDFC Top 200 Fund, etc.

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The investment that an investor makes in a scheme is translated into a certain number of „Units‟ in the scheme.

Under the law, every unit has a face value of Rs. 10.

The number of units multiplied by its face value (Rs. 10) is the capital of the scheme – its Unit Capital.

The scheme earns interest income or dividend income on the investments it holds.

Further,when it purchases and sells investments, it earns capital gains or incurs capital losses.

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Investments can be said to have been handled

profitably, if the following profitability metricis positive:

(A) +Interest income

(B) + Dividend income

(C) + Realized capital gains

(D) + Valuation gains

(E) – Realized capital losses

(F) – Valuation losses

(G) – Scheme expenses

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“This is the value per unit of the scheme on

a particular day.”

Formula: Unit-holders‟ Funds in the Scheme

No. of Units

E.g. : 217 crores / 20 crores = 10.85



Only Equity Linked Saving Schemes (ELSS) are entitled for tax benefits (80C).

ELSS schemes give investors the benefitof deduction of the amount invested, fromtheir income that is liable to tax.

Dividends received from mutual fund schemes are also tax-free in the hands of the investors.

However, the investment is subject to lock-in for a period of 3 years.

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HDFC Mid-Cap Opportunities Fund

Reliance Banking Fund

Tata Balanced Fund

IDBI Liquid Fund

UTI Opportunities Fund

ICICI Pru Focused BlueChip Fund

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“If you want to be rich…DON‟T

allow yourself the luxury of excuses.”

- Robert Kiyosaki

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“Equity trading is nothing trading in

the stock market where the investor directly invests in the shares of one or more companies.”

e.g. BSE, NSE

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“Initial Public Offering (IPO) is when an

unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. “



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“Company Fixed Deposit is the deposit

placed by investors with companies for a fixed term carrying a prescribed rate of interest.”



“Any Indian citizen between 18 and 55

years can invest in the National Pension System (NPS), launched by the Pension Fund Regulatory & Development Authority (PFRDA).”

Note: NPS offers tax benefits under the newly added Section 80 CCD(2).

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“Someone's sitting in the shade today

because someone planted a tree a long time ago.”

– Warren Buffet





Life Insurance

General Insurance

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“Transfer of Risk is the primary

objective of Insurance”.

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Term Insurance

Whole Life Insurance

Endowment Plans

Joint Endowment Plans

Children‟s Policies

Money Back Policies

Annuity Plans

Market Linked Plans

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* We offer Life Insurance from Life Insurance Corporation of India (LIC)



India‟s largest Insurance company

Winner of some of the most prestigious awards such as CNBC Awaaz, Outlook Money, Golden Peacock, etc.

Total Assets of Rs. 13,17, 416 crores

Life Fund in excess of Rs.11,51,200 crores

More than 53 different products

More than 30 crore customers

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“Health Insurance offers protection against

the risk of incurring medical expenses among individuals.”

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General Health Insurance

Critical Illness Insurance

Personal Accident Insurance

Travel Insurance

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*We offer health insurance from Apollo Munich Health Insurance Company



Founded in 1983, Apollo Group of Hospitals is the leading chain of specialty hospitals in India (Dr.Reddy‟s)

Munich Health Insurance, is the largest health insurance company in Europe.

Access to 4,000 hospitals in India

OPD Treatment & Medicine

Critical Illness Cover

Tax benefit under 80D of the IT Act

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Introduction to investments and insurance

Documents

mutual fund scheme

various investors

unit capital

insurancemutual funds

capital appreciation

capital gains

capital losses

possible investors