Investor Awareness Programme - PuneICAIpuneicai.org/wp-content/uploads/2015/03/ICAI-PPT-Pune-26122014.pdf · Investor Awareness Programme 26th December 2014 Speaker 1: CA Lakshminarayanan

Investor Awareness Programme26th December 2014

Speaker 1: CA Lakshminarayanan. R

Contact No: +91 9923032570

Speaker 2: Ashwin Kumar

Contact No: +91 7259775555

Focus

Concept of Financial Planning

Constituents of Financial Planning

Investment Avenues

Road ahead for the Indian Stock Market

Stock Selection – The Technical Way

Importance & Simplicity of Technical Analysis in making investment decisions

© Copyright, Kings & Prince Training Academy Private Limited & Intelliplan Investment Advisors

What is Financial Planning?


Concept of Financial Planning

Evolved because of two major factors

Inflation

Taxes

Requirements to formulate a Financial Plan

Financial Goal

Time Frame

Investment Vehicle


Constituents of Financial Planning

Risk Management

Retirement Planning

Goals Planning

Estate Planning

Tax Planning


Risk Management

Contingency Fund

Life Insurance

Health Insurance

Critical illness Insurance

Personal Accident Insurance

Householders Insurance


Retirement Planning

Plan your retirement by having a tax & inflation adjusted retirement corpus

Gap Analysis

Have a suitable asset allocation for retirement


Goals Planning

Child’s Education & Marriage

House Purchase

Car Purchase

International Vacation

Other Specific Goals


Tax & Estate Planning

Availing suitable deductions & exemptions

Taxability of various financial instruments

“WILL” drafting & registration

POA drafting & registration

Estate Consolidation


Financial Planning Process

o Data Collection

o Analyze existing cash flows & investments

o Map financial assets to financial goal

o Gap Analysis

o Decide on investment vehicle

o Implement the plan



How to formulate a Financial Plan?

o Data Collection Form

o Sample Financial Plan


../Financial Planning Data Collection Form.pdf

../Sample Financial Plan.pdf

Fixed Income Securities

Mutual Funds Real Estate Insurance Equity

Asset Class


Small Savings

Bonds

Debentures

Fixed Income Securities


Mutual Funds

Equity Funds

Debt Funds

Hybrid Funds


Equity, Commodities & Currency

Cash Market

Equity Futures & Options

Commodity Futures

Currency Futures


Real Estate

Site/Land

House/Flat

Commercial Property


Insurance

Life insurance

Non – Life insurance


Life Insurance

Term

Whole – Life

Endowment

ULIP

Pension Plans


Non - Life Insurance


Calculation of Return on Investment (XIRR)

Essentials

Cash Flow

Time Period


Road ahead for the Indian Stock Market

Stock Selection – The Technical Way and

The importance of Technical Analysis


Indian Markets so far…



What Next for the Indian

Markets?The Big Question



Interesting fact about Sensex – Historical Statistics

Year Growth (Approx) Sensex (Approx)

1979 - 100

1988 (9 yrs) 6 x 600

1998 (10 yrs) 6 x 3,600

2008 (10 yrs) 6 x 21,200

2018 (10 yrs) 6 x? 127,200 and beyond?


What next for the Indian Stock Market?

Multi-year Bull Market is in formation and will hold good if supported by earning growth, economic revival and reforms

Bull markets usually have a lot of time to go in terms of price and time

Smart money is buying the market

It is never too late to buy high quality companies but do not expect them to be priced cheap

Good news and good prices rarely come together

Second best time to invest is NOW

Investment in the Stock Market is only as risky as we make it to be


Investment Methodology – End to End Process

Stock selection or watchlist

Choosing an investment time frame or horizon

Scanning the market for opportunities

Define a strategy and investment plan

Execution and follow up

Money management © Copyright, Kings & Prince Training Academy Private Limited & Intelliplan Investment Advisors

Stock Selection – How do we do it?

Fundamental Analysis

Technical Analysis

Value Picks© Copyright, Kings & Prince Training Academy Private Limited & Intelliplan Investment Advisors

Stock Selection – Technical Analysis

ATR Based

Techno – Funda approach – Invest/trade in fundamentally strong companies using technical indicators for

entry and exit signals


Value Picks


Buy the Stock not just the Product – Hero MotoCorp


Buy the Stock not just the Product

Sl. No Scrip As on Dec 31, 2012 As on Dec 24, 2014 ROI

1 Maruti Suzuki 149,000 @ 1,490 per share 336,500 @ 3,365 per share 125.84 %

2 Havells (I) 127,000 @ 127 per share 265,000 @ 265 per share 108.66 %

3 Hindustan Unilever 52,500 @ 525 per share 75,700 @ 757 per share 44.19 %

4 Supreme Industries 29,500 @ 295 per share 59,800 @ 598 per share 102.71 %


Technical Analysis

• A study of historical price movements to predict future direction/movement of a stock/index/commodity.

• The analysis is almost entirely based on price and volume data

• Helps understand the psychology of the overall market


News on Nov 21, 2014 – Business Line - Any conclusion?


A Picture speaks a thousand words


A Picture speaks a thousand words



Making Sense of emotions studying Price & Vol. Data



What to Buy/Sell vs When to Buy/Sell



Tries to make sense of market emotions by studying price and volume actions compared to

hard to interpret fundamental data



Technical Analysis and its importance

A picture speaks a thousand words

Tries to make sense of market emotions by studying price and volume actions compared to hard to interpret

fundamental data

Fundamental Analysis is WHAT to Buy/Sell and Technical Analysis is WHEN to Buy/Sell

Serves as an investment roadmap – emphases on the EFFECT and not the REASON for the effect

Yet only 14% of the trading population use Technical Analysis in India as compared to 40% + in developed

markets


Key Highlights

Plan your financial goal

Implement as planned

Follow it up with strict monitoring

Focus on stock selection and money management

Make use of Technical Analysis whilst planning your entries and exits in Stocks for better results© Copyright, Kings & Prince Training Academy Private Limited & Intelliplan Investment Advisors

Interactive Session


Thank you© Copyright, Kings & Prince Training Academy Private Limited & Intelliplan Investment Advisors

Presented by

Lakshminarayanan. R

[email protected]

www.i2a.in

Ashwin Kumar

[email protected]

www.kingsandprinceacademy.com


Documents

Investor Awareness Programme - PuneICAIpuneicai.org/wp-content/uploads/2015/03/ICAI-PPT-Pune-26122014.pdf · Investor Awareness Programme 26th December 2014 Speaker 1: CA Lakshminarayanan