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"Knowledge Plus for Wealth + " will give you the overview of the recent happenings in the financial market. Everyone wants to have more wealth with them. So accumulating wealth is a stage where investments in long term can create wealth for an individual. Growing wealth with protecting downside risks through diversification and making speculative investments with additional money can help to accumulate wealth in the long term. In this issue, we will cover: - Latest Happenings in the Financial Markets - Introduction To Wealth Accumulation - Growth - 1st stage in Wealth Accumulation - Diversification - Speculation - 2nd stage in Wealth Accumulation - Conclusion Kindly Download the details from following Link: http://www.youtube.com/watch?v=uDqlg5UzWjA&feature=youtu.be Kindly share your valuable feedback at [email protected] to help us serve you better.
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FromResearch Desk
VALUE PLUS - The Family Office
KNOWLEDGE PLUSFor Wealth
Plus+
16th November 2013
Hot Topic Of The Week
Wealth Accumulation
Knowledge Plus for Wealth +
Last week at the Financial Markets!!!
• SENSEX was down by 266 points (-1.29%) and closed to 20399 at end of the week.
• (FIIs) remained net buyers in equity with net inflow of Rs. 1043.6 and net sellers in debt segment with net outflow of Rs. 1153.8 crore.
News Impact
• India’s CPI-inflation accelerates to 10.09% in October 2013 as compared to 9.84% in the previous month
• GDP growth will be adversely affected• Savings rate will be reduced• Investment cycle will be delayed• Rating agency may downgrade
economy• RBI allows foreign investors to invest
up to $5 billion in credit enhanced bonds
• Will attract higher capital inflow into the country
• A rise in capital inflow will help support the rupee
• May support to finance CAD
Knowledge Plus for Wealth +
Last week at the Financial Markets!!!
Price Performance of Different Asset Class
News specific movement and mixed reaction was
seen in international markets
Dow Jones
USDINR EURUSD Gold (Spot)
WTI Crude $/bbl
Sensex LME Copper $/MT
Silver $/t oz (Spot)
-3.00%
-2.50%
-2.00%
-1.50%
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%1.27%
1.03% 0.97%
0.22% -0.80%-1.29% -2.20% -2.77%
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Next Week in the Financial Markets...?
• Merger & Acquisition guidelines for the telecom sector will be announced after the Empowered Group of Ministers meeting on November 22, 2013
Knowledge Plus for Wealth +
Hot Topic Of The Week
Wealth Accumulation
Knowledge Plus for Wealth +
• After wealth protection strategies are in place, the focus should be on accumulating wealth.
• For HNI’s wealth accumulation is achieved to a certain extent.
• There are two stages in Wealth Accumulation namely 1) Growth & Diversification and 2) Speculation.
• Efforts are to be made to allocate the wealth which enables
achieving goals, preserving wealth, growth, diversification and speculation.
Introduction
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• Growth in wealth can take place if the returns are able to beat the inflation. Thus, earning real returns can grow the wealth.
• Investing in traditional avenues like Equity, Mutual Funds, ETFs, etc. and alternative investments namely Private Equity, Hedge Funds, Arts & Antiques, etc. over longer period of time can leverage the growth in wealth.
• Proper Asset allocation and Selection of investment avenues based on Income, Age, Goals, Risk Profile and Time horizon of investment can help to achieve wealth growth through proper diversification.
Growth
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• Diversification is necessary tool to reduce the downside risk of portfolio.
• In case of improper diversification, underperformance in one asset class can massively impact the overall returns of the portfolio.
• There are two types of diversification strategies – Time Diversification– Diversification through Asset Allocation
• Even hedging strategies can be used for getting the benefit of diversification.
Diversification
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• HNIs have excess of money available at their disposal after taking care of everything. In this case, excess wealth can be routed to speculative investments.
• Such investments can provide better returns thereby tremendously increasing the net worth of an individual.
• Such investments focuses on short term profit with high risks.
• Examples of Speculative Investment avenues are Futures, Options, Forex, Commodities, etc.
Speculation
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• Sustainably accumulating wealth over long period of time is an art as well as science.
• Not everyone can manage the same, and so the guidance of experts is required.
Conclusion
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THANK YOU
Research Desk
@VALUE PLUS - The Family Office
Office: (0265 -2324600,6629800) Email: [email protected]
Website: www.valueplusinv.com
Knowledge Plus for Wealth +
