Efficient Tax Planning Strategy

A Presentation by…..

We Start at 8:00 am everyday…

8:30 am leave homean hour to office10 hours of high stress environmentanother hour to get back home...

….continues for 6 days a week !!

And Back at home...Ageing Parents

Loving spouse

Growing Children

We all want...A house of our own

A car

Good education for children

A peaceful retired life

Money doesn’t ensure happiness but certainly it saves you from miseries of life……

To achieve this - Save and Invest

Saving is putting aside money, but

Investing means making your money work hard...

…and Investment Options areProvident Fund, LIC, NSC, PPF Tax efficient, Safety but Liquidity Constraints.Fixed Deposits and RBI Bonds High Safety but Moderate Returns, High Tax

incidence and Liquidity Constraints.Savings Bank Account Highly Liquid but Low Returns and High Tax

incidence.Mutual Funds…

Traditional Products – ReturnsFixed

DepositRBI Bonds

/NSCs PPF

Investment 100.00 100.00 100.00Interest 9.00 8.00 8.80Tax (@30.90%) 2.78 2.47 0.00Net Return (Rs.) 6.22 5.53 8.80Net Return (%) 6.22 5.53 8.80Lock-in 3 years 6 years 15 years

Returns at best can meet the inflation. Thus these don’t give any tangible gains.

We may feel secure, but ...

“The policy of being too cautious, is the greatest risk of all”

- Jawaharlal Nehru

We face……..>>>>• The Risks of….. Inflation Inadequate Planning Lack of Care of our Investments

What does one do ?

Five Important Financial Lessons

1. Start Early2. Invest Regularly3. Plan Adequately4. Save and Invest5. Manage Risk

Building Wealth Through Customized Investment Management….

MUTUAL FUNDSWith Professional Guidelines…..

INVEST THRU

Benefits of Mutual Funds

Liquidity Redemptions within One to Three days

Easy to Invest and Easy to Redeem

Diversified Portfolio Leads to Risk ControlSwitching Between Funds Allowed

Disclosure of Portfolio & NAVs Declared DailyRegulated by SEBI

Section 80 C, Tax Free Dividend and Capital Gains Tax benefits

Convenience Risk Diversification Flexibility Transparency Regulated

Plus Tax Benefits

What Mutual Funds are…

A common Pool of Money In the Form of a Trust Managed by a Team of Professionals Regulated by SEBI Monitoring by RBI of Money Market Funds Transparent.

…Why we need them. Information

• …real time, to take an “informed” decision Skill Time

• …to constantly monitor your investments• …ability to interpret information and use it

Timely Execution• …trying to time the market

Types of Mutual FundsDebt Funds• Invest in Bonds, Commercial Papers, Govt. Securities and T-Bills• The objective is to maximize returns with security

Equity Funds• Invests in shares and stocks of companies• Returns are dependent on the Capital Market movement

Balanced Funds• Invests in Equity as well as debt to strike a balance between

growth and safety• Offer higher returns than a debt fund but is prone to more risks

due to equity component

And for your regular savings

SYSTEMATICSYSTEMATICINVESTMENT PLANINVESTMENT PLAN

(SIP)(SIP)

An attempt to make life easier

Features• As simple as a Provident Fund

deduction• Tailor made plans• Automatic savings• Adequately Liquid• Tax efficient returns

Liquid and FMPs – Underlying Investments

Government Securities Corporate Bonds Treasury Bills Call Money Reverse Repos Commercial Papers Structured Debt Instruments

The Instruments are chosen as per the stated investment objective of the scheme.

What you can GAIN

8.50%Year Monthly Inst. Annual Payment Annual Return Value

1 5,000 60,000 2,728 62,7282 5,000 60,000 5,332 62,728 125,456 130,7883 5,000 60,000 11,117 130,788 193,516 204,6334 5,000 60,000 17,394 204,633 267,361 284,7555 5,000 60,000 24,204 284,755 347,483 371,6876 5,000 60,000 31,593 371,687 434,415 466,0097 5,000 60,000 39,611 466,009 528,737 568,3488 5,000 60,000 48,310 568,348 631,076 679,3859 5,000 60,000 57,748 679,385 742,113 799,86110 5,000 60,000 67,988 799,861 862,589 930,57711 5,000 60,000 79,099 930,577 993,305 1,072,40412 5,000 60,000 91,154 1,072,404 1,135,132 1,226,28713 5,000 60,000 104,234 1,226,287 1,289,015 1,393,24914 5,000 60,000 118,426 1,393,249 1,455,977 1,574,40315 5,000 60,000 133,824 1,574,403 1,637,132 1,770,95616 5,000 60,000 150,531 1,770,956 1,833,684 1,984,21517 5,000 60,000 168,658 1,984,215 2,046,943 2,215,60218 5,000 60,000 188,326 2,215,602 2,278,330 2,466,65619 5,000 60,000 209,666 2,466,656 2,529,384 2,739,05020 5,000 60,000 232,819 2,739,050 2,801,778 3,034,59721 5,000 60,000 257,941 3,034,597 3,097,325 3,355,26622 5,000 60,000 285,198 3,355,266 3,417,994 3,703,19123 5,000 60,000 314,771 3,703,191 3,765,919 4,080,69124 5,000 60,000 346,859 4,080,691 4,143,419 4,490,27725 5,000 60,000 381,674 4,490,277 4,553,005 4,934,679

1,500,000 3,369,205

Return on Invt.

Creating Wealth – Start Early8.50%

Year Monthly Inst. Annual Payment Annual Return Value1 5,000 60,000 2,728 62,7282 5,000 60,000 5,332 130,7883 5,000 60,000 11,117 204,6334 5,000 60,000 17,394 284,7555 5,000 60,000 24,204 371,6876 5,000 60,000 31,593 466,0097 5,000 60,000 39,611 568,3488 5,000 60,000 48,310 679,3859 5,000 60,000 57,748 799,86110 5,000 60,000 67,988 930,57711 0 79,099 1,012,40412 0 86,054 1,101,18713 0 93,601 1,197,51614 0 101,789 1,302,03315 0 110,673 1,415,43316 0 120,312 1,538,47317 0 130,770 1,671,97218 0 142,118 1,816,81719 0 154,429 1,973,97520 0 167,788 2,144,49121 0 182,282 2,329,50122 0 198,008 2,530,23623 0 215,070 2,748,03424 0 233,583 2,984,34525 0 253,669 3,240,743

600,000 2,575,269

Return on Invt.

Creating Wealth – Start LateReturn on Invt. 8.50%  

Year Monthly Inst. Annual Payment Annual Return Value1 0 0 02 0 0 03 0 0 04 0 0 05 0 0 06 0 0 07 0 0 08 0 0 09 0 0 0

10 0 0 011 5,000 60,000 2,728 62,72812 5,000 60,000 5,332 128,06013 5,000 60,000 10,885 198,94514 5,000 60,000 16,910 275,85515 5,000 60,000 23,448 359,30316 5,000 60,000 30,541 449,84417 5,000 60,000 38,237 548,08118 5,000 60,000 46,587 654,66719 5,000 60,000 55,647 770,31420 5,000 60,000 65,477 895,79121 5,000 60,000 76,142 1,031,93322 5,000 60,000 87,714 1,179,64723 5,000 60,000 100,270 1,339,91724 5,000 60,000 113,893 1,513,81025 5,000 60,000 128,674 1,702,484

    900,000 802,484 

What you need to do ...

You Achieve• Freedom

To put all your efforts into what you do best• Peace of mind

At the end of a tiring day in office• Time

Your family has a right to it

THANK YOU