Basics Tenets of Smart Investing

 Start Investing Early

Build Investment Gradually
 Don’t overspend
 Don’t let savings idle
 Invest regularly
 Invest with discipline
 Diversify Investments
 Don’t fall in love with
your portfolio
 No Free Lunch in
Investing
 What is a Mutual Fund?
• Diversified, professionally managed portfolio of securities
• Your investment is pooled along with others’ investments
• Benefits derived as those of an institutional investor
• Risk diversification - investing in a pool of funds comprising of 50-
60 stocks from various sectors
INVESTORS
• Tax Benefits Pool their
Passed back
to money with

RETURNS FUND
MANAGERS
Invest in
Generate
SECURITIES
8
 (Aggressive Portfolio)
Objective: Growth. This strategy
might be appropriate for
Aggressive Portfolio

investors who seek High

growth and who can tolerate
wide fluctuations in market
values, over the short term.

(Growth Portfolio)
Objective: Growth. This strategy
might be appropriate for
investors who have a
preference for growth and who
can withstand significant
fluctuations in market value.
 (Balanced Portfolio)
Objective: Capital appreciation and
Conservative Portfolio
income. This strategy might be
appropriate for investors who
want the potential for capital
appreciation and some growth,
and who can withstand moderate
fluctuations in market values.

.
Conservative Portfolio)
Objective: Income and capital
appreciation. This strategy may
be appropriate for investors who
want to preserve their capital
and minimize fluctuations in
market value.
 Equity Funds versus Equity - Risk Spreading
Investment outlay of Rs. 10,000/- can buy
Equity Funds (20th Apr. NAVs) Sensex Stocks (23rd Apr. prices)
• 1135 units of IDBI Eq Fund • 2.69 shares of Infosys
• 1400 units of JM Eq Fund • 9.10 shares of Cipla
• 1353 units of HDFC Gr Fund • 8.90 shares of Dr. Reddy
• 1692 units of ING Gr Fund • 12 shares of Hindalco
• 2037 units of Alliance Buy • 11 shares of ITC
India Fund
• 41 shares of Bajaj Auto
• 1942 units of Franklin
Templeton India Growth Fund

For the same investment you For the same investment you
can indirectly buy more equity can buy less equity directly
with greater diversification with lesser diversification
 Sy Direct
In s Credit ic
v e te m via ECS
t
a l
st a te m aw a
Pl m ti s
an e n c S thdr n
y
t i l a
W P

Direct MUTUAL Daily

Debit
via ECS
FUND Dividend
SERVICES
ARRAY
Al As
h n t lo se
a s e c
C em Pl a t t
a g n Dividend a n io
a n la n
M P Sweep
Facility