Basic about personal finance and investment ideas also strategy.

1. Investment
Presented By
Arup Kumar Sikdar
Lecturer in Automobile Engineering

2. What is an Investment?
●An investment plan is like a
roadmap for your financial
journey. It helps you decide why,
where to invest, and how much to
invest so that you can achieve your
financial goals. These goals can be
buying a or rent a house or car,
children’s education or marriage or
retirement planning.

3. ●Capital is protected.
●One should earn good profits on investment.
●Beat the inflation.
●Investment should have lesser risk.
●Investment should tax efficient ( lesser tax on profits ).
●Should be able to build wealth for needs (Marriage, travel,
retirement etc.)
●Investment should be easy to redeem.
What is Good Investment?

4. Invest to your own
●Before investing for creating wealth, first protect
yourself to take life insurance and health insurance.
Insurance can help protect you and your family from
financial difficulties that can arise from accidents,
illness, and disasters. It can provide financial
stability and help cover expenses like education,
loans, housing, groceries, medical expenses and
property damage etc.
Remember
• Do not mix insurance and investment;
• Treat insurance as purely protection against risk.

5. Insurance Types
General Insurance.
Health Care
Coverage
Automobile
Insurance
Homeowners
Insurance
Insurance
against fire
Travel
Insurance
Term Life
Insurance
Unit-Linked
Insurance Plans
(ULIP)
Whole Life
Insurance
Endowment
Plans
Child Plans
for Education
Retirement
Plans
Life Insurance

6. Investment Options
●Low-risk investments:
●Medium-risk investments:
●High-risk investments:

7. Low-risk investments
●Low-risk investments are those types of investments that possess a very
minimal level of risk or zero level of risk. They offer stable returns, which
are typically the guaranteed return on the investment.
●Saving Bank A/C, Bank FDs, Government Bonds, PPF, NSC, POMIS, Liquid
mutual funds, Sovereign Gold Bond etc. are the example of Low-risk
investments.

8. Advantage and disadvantage of Low risk
investment
●Disadvantage
1) Lower gains in long term.
2) May not beat Inflation.
3) Lower flexibility for locking
period.
●Advantage:
1) Stability
2) Security
3) Safer for Short term goal.
4) Tax exemption benefit in profit
(some cases).

9. Medium-risk investments
●Medium-risk investments are those types of investments that are slightly
riskier than low-risk investments. These investments seek to produce decent
returns while assuming a moderate level of risk. They are appropriate for
investors seeking a portfolio that balances growth and stability.
●NPS, Corporate bonds, Money market, Treasury bills, Treasury bonds, Real
estate investment trust, Debt fund, Government Bond etc. are the example of
Low-risk investments.

10. Advantage and disadvantage
●Advantage:
1) Low risk high returns compare Low risk investment.
2) Investment horizon 3 to 5 years.
3) Safer for Short term goal.
4) Capital gains by beat inflation.
●Disadvantage
1) Limited flexibility.
2) Returns depends on several factor like: Act of God, Government stability,
Government initiative, Geopolitical issues in other countries etc.
3) Little volatile.

11. High-risk investments
●High-risk investments are generally market-linked investments that carry
higher levels of risk. These types of investments seek to give higher
returns in future, that too with significant volatility and uncertainty.
They are suitable for investors willing to take higher risks and want to
earn a return from market fluctuations.
●Stocks, mutual funds, Unit Linked Insurance Plans, Venture capital
investment, Cryptocurrencies, IPOs, Forex, Commodity Futures etc.

12. ● Disadvantage
1) Volatility.
2) Uncertainty.
3) Illiquidity.
4) Higher Investment Thresholds.
5) Greater Emotional Involvement.
6) No tax benefit.
7) Money might be Zero at any point of time
frame.
● Advantage:
1) Higher the investment horizon, lower the
risk and higher return.
2) Capital gains by beat inflation.
3) Easy to achieve long term goal.
4) Diversification opportunities.

13. Strategy for Investment
1) Know Your Why
2) Establish Financial Goals
3) Assess Risk Tolerance
4) Be Honest About Your Budget
5) Understand Investment Options
6) Time is Your Superpower.
7) Diversification
8) Start Early and Invest Regularly
9) Educate Yourself
10) Monitor and Rebalance
11) Manage Fees
12) Stay Disciplined and Patient

14. Important disclosure
“The first rule of investment is don't lose. The
second rule of investment is don't forget the
first rule.” – Warrant Buffet.