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					                B'MAP Financial Services




B'MAP Financial Services




                                   1
                                                            B'MAP Financial Services
     Contents

              Content           Page                  Content               Page
Concept of Financial Planning    3     Mutual Fund Classifications           16
Depreciating Value of Money      4     Equity & Debt - Definition            17
Appreciating Cost of Living      5     Risks to be offset                    18
Real – “Return On Investment”    6     Advantages of Mutual Funds            19
Life Cycle Stage Guide           7     Returns - Equity and Debt             20
Benefits of Investing Early      8     Stock Markets & Returns               21
Investment Avenues               9     Index Vs MF                           22
Asset Types                      10    Tax Benefits                          23
Asset Allocation                 11    Current House Hold Savings Pattern    24
What is a Mutual Fund?           12    At B’MAP We…                          25
MF-Operations Flow Chart         13    B’MAP Financial Services              26
Portfolio - Sample               14    Contact us                            27
Sector Allocation - Sample       15


                                                                                   2
                              B'MAP Financial Services

    Concept of Financial Planning

   Financial planning

   Identifies all the financial needs of a
    person

   Translates the needs    into   monetarily
    measurable goals

   These goals can be short term, medium
    term and long term

   Plans the financial investments that will
    allow these goals to be met.
                                                 3
                                                            B'MAP Financial Services
Value of Money (Rs.)
                       Depreciating Value of Money

                       120000   100,000
                       100000             78,353
                        80000
                        60000                      48,102
                                                              37,689
                        40000                                            30,189
                        20000
                            0
                                Current   5 yrs    10 yrs     15 yrs     20 yrs
                                                   Years
                                                                                  4
                                                            B'MAP Financial Services

                       Appreciating Cost of Living

                       120000
Cost of Living (Rs.)


                                                                        98,839
                       100000
                                                             79,599
                        80000
                                                   62,368
                        60000
                                          38,288
                        40000   30,000

                        20000

                           0
                                Current   5 yrs    10 yrs     15 yrs     20 yrs

                                                   Years
                                                                                  5
                                                 B'MAP Financial Services


     Real – “Return On Investment”
   The above said couple of pictorial representations are derived and
    designed taking into consideration,5.5% as the rate of inflation,
    which depict:

   Value of Money which is not invested depreciates @ 5.5% YOY.

   At the same, time cost of living gets appreciated @ 5.5% YOY.

   As a result, a Real Return on Investment is achieved only if it
    outshines the above said effects of inflation.

   Therefore, the need of the hour is not just to invest, but to
    “Invest Intelligently”.

   To invest intelligently requires, careful planning and analysis.

   We @ B’MAP steer you in identifying the right avenues to invest
    in, where the “Return On Investment is REAL”.


                                                                      6
                         B'MAP Financial Services

Life Cycle Stage Guide




                                            7
                       B'MAP Financial Services

Benefits of Investing Early




                                          8
                                                           B'MAP Financial Services

   Investment Avenues - Comparison
                       Investment Objective     Risk Tolerance   Investment Horizon

       Equity           Capital Appreciation        High             Long Term

     FI Bonds                 Income                 Low         Medium to Long Term

Corporate Debentures          Income               H-M-Low            The same

    Company FD                Income              The same             Medium

   Bank Deposits              Income            Generally Low     Flexible-All Terms

        PPF                   Income                 Low             Long Term

   Life Insurance           Risk Cover               Low             Long Term

       Gold               Inflation Hedge            Low             Long Term

    Real Estate           Inflation Hedge            Low             Long Term

   Mutual Funds        Capital Growth, Income      H-M-Low        Flexible-All Terms



                                                                                       9
                                    B'MAP Financial Services
    Asset Types

   Physical & Financial Assets
   Guaranteed & Non Guaranteed investments
   Physical Assets – Gold & property
   Financial Assets – products offered by -
   Banks
   Corporate
   Financial Institutions
   Government – PPF, RBI relief bonds, NSC,
    government securities
   Life Insurance
                                                       10
                             B'MAP Financial Services

  Asset Allocation

Asset allocation is the process of how an
investor distributes his or her investments
among various classes of investment
vehicles-such as,
      Stocks
      Bonds
      Insurance
      Real Estate
      Commodities
                                                11
                                           B'MAP Financial Services
     What is a Mutual Fund?

   A Mutual Fund is a trust that pools the savings of a
    number of investors who share a common financial goal.

   The money thus collected is then invested in capital
    market instruments such as shares, debentures and
    other securities.

   The income earned through these investments and the
    capital appreciation realized is shared by its unit holders
    in proportion to the number of units owned by them.

   Thus a Mutual Fund is the most suitable investment for
    the common man as it offers an opportunity to invest in
    a diversified, professionally managed basket of
    securities at a relatively low cost.
                                                              12
                               B'MAP Financial Services

MF - Operations Flow Chart

               INVESTORS
                            Pool their
   Passed
                            money with
   back to



RETURNS                         FUND MANAGER



   Generates                Invest in


               SECURITIES

                                                  13
                                                           B'MAP Financial Services

  Portfolio - Sample

                    PORTFOLIO OF RELIANCE VISION FUND
        Holdings Weightage (%)                Tata Consultancy Services Ltd 3.51
             Equities 77.34                            Tata Steel Ltd 3.23
       Divis Laboratories Ltd 7.67                    Tata Motors Ltd 2.99
       Reliance Industries Ltd 5.91             Reliance Infrastructure Ltd 2.60
         State Bank of India 5.02                  Indian Hotels Co Ltd 2.36
           ICICI Bank Ltd 4.78                    Hindalco Industries Ltd 2.33
   Reliance Communications Ltd 4.42              Alstom Projects India Ltd 2.04
       Maruti Suzuki India Ltd 4.09                    Siemens Ltd 1.85
      Infosys Technologies Ltd 3.99            Television Eighteen India Ltd 1.66
       Grasim Industries Ltd 3.99              Patni Computers System Ltd 1.57
        Larsen & Toubro Ltd 3.58                    Deccan Aviation Ltd 1.47
         Gammon India Ltd 1.28              Triveni Engeering And Industries Ltd 1.09
          Bharat Forge Ltd 1.23              Oil & Natural Gas Corporation Ltd 1.07
   Equity Less Than 1% of Corpus 3.62       Preference Shares, Warrants, Debt, And
Other Derivatives, Cash Receivables 22.66             Grand Total 100.00
                                                                                        14
                      B'MAP Financial Services

Sector Allocation - Sample




                                         15
                         B'MAP Financial Services

Mutual Fund Classifications

   Equity Mutual Fund

   Debt Mutual Fund




                                            16
                                   B'MAP Financial Services
    Equity & Debt - Definition

   Equity funds invest in shares or equity of
    companies with a potential for growth and
    capital appreciation. They invest in well-
    established companies where the company
    itself and the industry in which it operates are
    thought to have good long-term growth
    potential.

   Debt funds or fixed income funds invest in
    government or corporate securities / bonds that
    offer fixed rates of return. The goal of fixed
    income funds is to provide current income
    consistent with the preservation of capital.
                                                      17
                          B'MAP Financial Services

Risks to be offset..

   Downside Risk in Equities

   Risk of Market Volatility

   Risk of Market Timing



                                             18
                                  B'MAP Financial Services

    Advantages of Mutual Funds

   Diversification

   Professional management

   Reduction in risk

   Reduction in transaction cost

   Liquidity

   Convenience and flexibility
                                                     19
                           B'MAP Financial Services

    Returns - Equity and Debt

   Past performance of the diversified
    equity mutual funds has delivered
    close to 25% annualized returns.

   Debt FMP can outperform Bank FD
    by atleast 2.5% in terms of
    incremental revenue.


                                              20
                                                       B'MAP Financial Services
           Stock Markets & Returns

                              Inflation and Return Comparison
                                                                    28.32%
         30.00%

         25.00%

         20.00%
Values




                               13.00%
         15.00%                                                                   S
                                                        10.78%
                   10.00%
         10.00%
                                            6.05%

         5.00%

         0.00%
                  Inflation    Gold       Bank FD       Co. FD     Stocks
                                          Avenues
                                                                             21
                                                       B'MAP Financial Services

     Index Vs MF

                            Historical Data

          350%

          300%

          250%

          200%
Returns




          150%
                                                                      Index
          100%
                                                                      MF
           50%
                                                                      Returns
            0%
                  1 yr   3 yr   5 yr   7 yr   10 yr   15 yr   20 yr
          -50%

          -100%
                                       Yrs

                                                                          22
                                              B'MAP Financial Services

       Tax Benefits
   Dividends declared by debt-oriented mutual funds (i.e. mutual
    funds with less than 65% of assets in equities), are tax-free in
    the hands of the investor.

   However, a dividend distribution tax (which varies for individual
    and corporate investors) is to be paid by the mutual fund on the
    dividends declared. Dividends declared by equity-oriented funds
    (i.e. mutual funds with more than 65% of assets in equities) are
    tax-free in the hands of investor. There is also no dividend
    distribution tax applicable on these funds. Diversified equity
    funds, sector funds, balanced funds (with more than 65% of net
    assets in equities) are examples of equity-oriented funds.

   The amount invested in tax-saving funds (ELSS) is eligible for
    deduction under Section 80C, however the aggregate amount
    deductible under the said section cannot exceed Rs 100,000 (in
    a financial year).
                                                                 23
                           B'MAP Financial Services
Current House Hold Savings Pattern


       10% 1%
      10% 1%
                          Bank F.DBank F.D
                                  Small
                          Small Savings Savings
                43% 43%
28%
                                  Contractual
                          Contractual Savings Sa
28%
                          Cash    Cash
                                  Shares & Debe
                          Shares & Debendures
          18%
        18%

                                              24
                                       B'MAP Financial Services

   At B’MAP We…
Step I    : Establish and define the relationship with the
            client
Step II   : Define the client’s goals
Step III : Analyze and evaluate client’s financial status
Step IV : Determine and shape the client’s risk
            tolerance level
Step V    : Ascertain client’s tax situation
Step VI : Recommend the appropriate asset allocation
            and specific investments
Step VII : Execute the plan
Step VIII : Periodically Review
                                                          25
                                         B'MAP Financial Services

     B’MAP Financial Services
   The core objective of B’MAP Financial Services is to
    provide financial planning for individuals,corporates and
    ensure they maximize their wealth, thereby achieve
    their financial objective.

   Financial Planning is an exclusive profession which
    squeezes out the maximum “Return On Investment” for
    the investor. Everyone will have their own ideas, plans
    and convictions on their personal finance based on their
    knowledge, but we have taken up financial planning as
    our profession, passion and we possess the expertise,
    in-depth knowledge and experience in financial
    planning.

                                                            26
                                  B'MAP Financial Services

Contact us

B’MAP Financial Services
#73-F1, II Main Road
Alwarthirunagar Annexe
Chennai – 600087

Primary Contact : S. Arunramalingam

Phone : +91 44 23772232

HP      :   9382605432

e-mail : bmapfinancialservices@yahoo.com
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B'MAP Financial Services




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