SEBI_EXECUTIVE_PPT.pdf

7/28/2019 SEBI_EXECUTIVE_PPT.pdf

1/31

An initiative of SEBI & NISM

Financial education for working executives


2/31

Tax planningPonzi schemesFinances for entrepreneursRetirement planningBorrowing related products

Protection related productsSavings and investment related products

Asset allocation strategyChoosing the right investment optionsBasics of savings and investments

Need for and advantages of financial education

Agenda


3/31

financial products Proliferation of new and complex

of personal financesDeterioration

Need for financial education


4/31

Benefit other aspects of your lifeSetting a good example for your family

Awareness of questionable practicesDisciplined approach to moneyFeeling a sense of accomplishmentProtection from marketing gimmicksPrepared for financial emergencies

Helps build a secure financial future

Advantages of Financial Education


5/31

Financial planning


6/31

Basics of Savings and Investmen

InvestingSavings Long term

Short term

Value moves up and

Value remains stabledown in short term

Lower returns overPotentially higherlong term

returns over long term


7/31

BUDGETING


8/31

income.controlling the inflow and outflow of

A process for tracking, planning andis budgeting?What


9/31

Helps maintain standard of livingDisciplineUnexpected need for fundsChecks or balances to prevent overspending

of budgetingBenefits


10/31

Calculate your savingsDetermine your bill for non-essentialsNote down your total debtsDetermine your bill for essentialsCalculate your income

for budget planningSteps


11/31

WHAT IS INFLATION?


12/31

Rs. 1,0606% p.a.Rs. 1,0505% p.a.Rs. 1,000tInvestmen

yearYour expenses after aInflationValue after a yearInterest on investmentInitial investment

Inflation Effects on Investments


13/31

RISK AND RETURN


14/31

It is crucial to manage your riskratethe risk of earning less than the inflationaccounts and government bonds carry

Even no-risk products such as savings

return increases Risk increases as the expected potentia

and investing go hand in handRiskRisk and Return


15/31

10% for 5 years in bank FD?

What happens to Rs.100 invested @The eighth wonder - compounding


16/31

same as it will be in the futureThe value of the money today is not the

Time Value of Money


17/31

o They are what you want to achieveend up

o Goals are statements about where we want to What is a Goal?


18/31

o No, Most of our Goals are not achieved Are all goals achieved


19/31

Convert them in to SMART goalsThey need to be clearly definedThe goals seem to be vagueAre these goals clearly defined ?

What prevents you?


20/31


21/31

Savings & investment relatedproducts Bank deposits

Small savings schemes Bonds / debentures Company fixed deposits Mutual funds Equity shares


22/31

Health insurance

Specific condition coverageCritical illness planHospitalisation policyComprehensive health insurance

ULIPsAnnuities / Pension plansEndowment policiesTerm life insurance

Life insuranceInsurance

Protection Related Products


23/31

Non-withdrawable account till the age of60

maximum 60% withdrawn

Both: Minimum 40% for buying annuity andBuy immediate annuity, orOn maturity, eitherWithdraw the money, orDefined contribution system

Available to all Indians between 18 and55 years

New Pension System,2009


24/31

Credit card debt Loan against securities Reverse mortgage Home loans

Personalloans

Borrowing Related Products


25/31

Dont dip into your retirement savings Track and review your plan Plan wisely

early and retire peacefullyStart

Retirement Planning


26/31

financial needs of self and

designed to fund SMEs Apply for loans from organisations Start groundwork while still in job

strict business terms, if required Borrow from close relatives/ friends on

employment Save money in job before jumping in self

business

UnderstandFinances for entrepreneurs


27/31

not true. Its a Ponzi! If its too good to be true its probably

of funds, not investment of fundsnew investors thus it is only rotation

Money from initial investors is given toreturns

Initial investors may get high promisedlow risk

Ponzischemes promise high returns andPonzi schemes


28/31

important sectionsinterest repayment) are other(donations) and 24D (Housing loan

80D (medical insurance), 80Gfor equities

principal, PPF, ELSS,etc.

Long Term Capital Gains are not taxable

insurance premiums, housing loan1,00,000 for select investments like life

Section 80C gives rebate upto Rs.Tax Planning


29/31

investing does not require dematrequired for equity invsting. MF

Demat accounts & trading accountsbe filled

Know Your Client (KYC) form needs torequired for address proof

Telephone, electricity, utility bills aremust as personal identification proof

PAN Card, passport, driving license is a

How to begin?


30/31

Ministry of Finance (MoF)Ministry of Corporate Affairs (MCA)Authority (IRDA)

Insurance Regulatory & DevelopmentForward Markets Commission (FMC)Reserve Bank of India (RBI)Securities & Exchange Board of India (SEBI)

markets are:

Various regulators in Indian financalRegulators


31/31

THANK YOU!

SEBI_EXECUTIVE_PPT.pdf

Documents