Investment Basics

Objec�ve of Inves�ng:

To fulfill the financial goals of an individual like Expenses towards Children Educa�on, Buying a House, Buying a Car, to perform Children Marriage, Post-re�rement expenditure, Wealth Crea�on,etc.,

Basics of Investments:

• Investment is a process of parking one’s money an�cipa�ng higher returns. • The basic objec�ve of an investor towards investment is to fulfill future financial goals • Most of the Investors choose an investment which can offer higher returns, Safety and

Liquidity • Investment Period depends on their goals

– Short Term (investment goals of < 5 years) – Medium Term and (investment goals of >= 5 to 10 years)

– Long Term (investment goals of >= 10 years)

Types of Investments:

Type Regulator Safety Liquidity Returns

FD, RD, CD RBI High Moderate to Low Low

NSC, PPF, Kisan Vikas Patra, Sukanya Samriddhi Yojana

Govt.

(Post Office)

High Moderate Low

Govt. and Private Bonds

State & Central Govt.

High to Moderate

High to Moderate Moderate

Shares SEBI Low High High

Mutual Funds SEBI Moderate High to Moderate High

Shares or Equity Investment:

Equi�es or stocks or shares give ownership of a company, to the extent of the share value. One can buy or sell shares through a broker. One can invest in the share market based on their risk appe�te, age and dependency for a period of short term or long term depending on their needs. The various investment op�ons in the Indian share market today are equity, mutual funds, SIP, IPO, bonds, debentures, deriva�ves, commodity, currency, etc.

Mutual funds: Here, the money is pooled from many investors and then invested in various financial instruments. Investors are referred to as unit holders. Profit generated is distributed to unit holders in propor�on to the units held by them. Mutual funds are a systema�c venture to invest in the share market where they are governed by Por�olios, which are a mix of shares from various companies (Low, Medium or High Risk) depending upon the safety the investor wants to put his money.

Mutual funds are subject to market risks, where the general rule governed is Higher the Risk, Higher the Returns. What is SIP?

• SIP is Systema�c Investment Planning • SIP is a simple, convenient and affordable way to invest for your future • SIPs can help you achieve these goals over a period of �me through regular periodic

investments. • By inves�ng a fixed amount every month, you may be able to pick up more units when the

prices are low and vice versa so that, over a period of �me, the acquisi�on cost per unit may come down. This is called Rupee Cost Averaging.

• MFs are professionally managed and backed by a dedicated research team; investors are provided with the services of an experienced fund manager who handles the investment decisions.

• Crea�on of Wealth: Regular inves�ng in equity mutual funds help in tackling cost of living and also plan for future goals. The poten�al for capital apprecia�on is one of the primary advantages of equity mutual funds which are a smart way to create wealth.

CShareT Func�onality: CShareT – is a trading pla�orm acquired and managed by Chlorus. SIP2 denotes Systema�c Investment Plan for Private Por�olio. Database – Chlorus Database is a library of the best analyzed database with the perfect history

Carla Finsol Investor Website Dashboard Terminologies:

EPS: Earnings per Share EPS = Net Income- Preferred Dividends/No. of Outstanding Shares A company with high EPS means that it is profitable, and it is in a posi�on to distribute this profit to its shareholders. P/E Ra�o: Price to Equity Ra�o PE Ra�o = Share Price/ EPS PE ra�o talks about the growth poten�al of a company. High PE simply means that investors are op�mis�c about the future earnings of the company and are willing to pay more. P/B Ra�o: Price / Book Ra�o P/B Ra�o=Book Value per Share/Market Price per Share

• The P/B ra�o measures the market's valua�on of a company rela�ve to its book value. • P/B ra�o is used by value investors to iden�fy poten�al investments. • P/B ra�o can be used to compare companies with one another

Expense Ra�o: Expense ra�o is the fee charged by the investment company to manage the funds of investors.

of accurate trends. Por�olio - Chlorus Share T manages the best por�olio to minimize the risk and maximize the

benefits. Customers/Clients – The benefits of the Database and the por�olio management are extended to all our Customers and Clients.