3. What is the average inflation rate
in India in last 5 years?
A.
B.
C.
D.
5%
7%
8%
10%
INFLATION
A.
B.
C.
D.
5%
7%
8%
10%
INFLATION
4. What is the average inflation rate
in India in last 5 years?
A.
B.
C.
D.
5%
7%
8%
10%
INFLATION
A.
B.
C.
D.
5%
7%
8%
10%
INFLATION
5. INFLATION
How many of you have Savings
Account / Current Account in bank?
What is the rate of interest in
Savings Account/Current Account?
6. But What is Net Returns?
Net return = Interest – Inflation
Savings Account = 4% - 8% = -4%
Current Account = 0% - 8% = -8%
7. How to Beat Negative Returns?
Invest in bank FD, Equities, real estate, gold etc.?
But money lying in SB/CA is for daily use and not for
investment
Also, there is a risk in investing in equities and gold &
charges on bank FD
What needs to be done then?
8. Is There Any Alternative ?
Should be able to generate returns close to/better than inflation
Should have low charges
Should have least risk as compared to other products
Should be easy to transact (to deposit and withdraw money)
An alternative to SB/CA should have following qualities
9. An alternative o SB/CA should have following qualities
Introducing
Liquid Funds
10. What is a Liquid fund?
Liquid Funds are mutual fund schemes, which invest in
very short term commercial papers (CP), Certificate of
Deposits (CD), Treasury bills etc.
There are no entry/exit charges.
Can invest as low as Rs. 10,000.
Minimum investment period is 1 day.
Liquid Funds DO NOT invest in Equity Markets or Gold.
Highly liquid, money is credited back to your bank
account in 1 day.
11. Performance of Liquid Funds
Liquid funds have been delivering more than 8% returns to
investors.
In comparison, SB returns are 4% while Current Account offers
0% return.
With such a high return differential selling liquid funds become
far more easier to retail investors.
Scheme Name 1 Year
8.68 9.33 8.64 8.75
10.21 10.63 9.56 9.66
8.37 9.06 8.34 8.48
30 Days 90 Days 180 Days
Birla Sun Life Cash Manager - Growth
Kotak Flexi Debt Scheme Plan A - Growth
DSP BlackRock Money Manager Fund Gr
Returns on lumpsum investment as on 31 May 2013
Returns on CAGR basis
12. What Extra with Liquid?
Income Earned in 1 Year Additional Income
50,000 2,000 0 4,000 2,000 4,000
100,000 4,000 0 8,000 4,000 8,000
500,000 20,000 0 40,000 20,000 40,000
* Assuming returns of Savings Bank A/c at 4%, Current A/c at 0% and liquid funds at 8%
Average
Balance
Savings
Account
Current
Account
Liquid
Funds
Savings
Account
Current
Account
Mutual fund investments are subject to market risks. Past performance is no guarantee of future returns.
13. Is it Safe to Invest ?
You invest in MF schemes which are under the purview
of SEBI.
Only 44 companies in India in MF space.
Renowned companies like HDFC, Reliance, Kotak,
Birla, DSP, ICICI, Tata etc. in the MF business.
MF Regulations
Liquid Funds
Money invested in very short term instruments.
Extremely low/negligible interest rate risk.
Transparency of NAV and returns.
14. What are the Charges in Liquid Funds?
There are no charges for entry/exit in liquid funds.
There is a fund management charge in the scheme,
which can vary from 0.50% to 0.75% depending from
scheme to scheme.
The returns highlighted in the performance earlier are
net of charges to the investor.
15. Can I Invest Even for 1 Day ?
Yes you can.
You will get return even for 1 day.
Also, minimum amount of investment also starts from as
low as Rs. 10,000!
Liquid funds are for everybody and not just for the wealthy.
16. Taxability
Returns from liquid funds are taxable as follows:
Short Term Capital Gain (STCG)
For investments of less than 1 year, the income is taxable
according to the tax slab of the investor.
Long Term Capital Gain (LTCG)
For investments of 1 year and above, the income is taxable at
10% flat or 20% with indexation .
It is advisable to invest in the Growth option, unless you fall in the highest tax bracket.
For Growth Option
For Dividend Option
In case you invest in Dividend option, there is a Dividend
Distribution Tax at 28%
17. Money Lying idle in your SB/CA on the following counts
Which Money Should be Invested in Liquid Funds?
Your EMI is due on 25th
of the month
& you maintain the balance for the
same for the whole month.
School fees of your kids is due on a
quarterly/half yearly basis, but you
keep it in your account.
Your salary gets credited on
3rd
of the month & you
withdraw money over the period of
the month.
If you are a businessman & have a
cash balance in your lean season.
18. Money Lying idle in your SB/CA on following counts
Which Money Should be Invested in Liquid Funds ?
If you recieve a bulk payment and
are not having any fresh purchase
lined up in coming 3-4 days.
You sold a property and got the
payment for it in your account.
You are about to buy a property &
payment is due after 5-10 days.
Any additional balance lying in
your account above the minimum
balance required in the bank.
19. How to Invest in Liquid Funds?
Investing in liquid funds is easy. You can invest through NJ TADA
Online Mobile Call & Transact
20. Fast & accurate way of
transaction
Transaction from anywhere
(Online & on call)
22. Saves time & efforts
Transaction
confirmation via
e-mail / SMS @
23. 'Invest Easy' - Convenience at your Fingertips
Online Purchase
Login to your NJ Trading Account
Select the fund
Make Payment through net banking/
debit card
Your investment is completed in less than
a minute
Online Sell
Login to your NJ Trading Account
Select the fund to redeem
Your transaction is completed in less than
a minute
Money gets credited to your bank account
the next day
24. 'Invest Easy' – Convenience at your Fingertips
Mobile Application (Blackberry, Android, ios)
Transaction
Redeem & Switch
Purchase, SIP, STP
Mode of Payment -
Pre registered ECS mandate
Benefits
Access anywhere
24*7
High Speed
25. 'Invest Easy' – Convenience at your Fingertips
Call N Transact – 0261 3987500
How to Transact
Call on the CNT number.
Confirm your access details.
Execute your transaction
(Purchase/Sales/Switch) in
less than a minute!
26. “Invest Easy” – Convenience at your fingertips
Great Convenience of Transaction.
Access anywhere
24*7
Multiple channels of transaction
(Online, Mobile, Call Center)
Multiple modes of payments
(Net banking, Debit Card, ECS Mandate)
High speed & accuracy
NO form filling
Transaction conformation on SMS/E-mail
27. What to Do Now ?
Contact your Financial Advisor
Open your NJ Trading & Demat Account
Start enjoying benefits of Liquid Funds !!
28. Be a smart investor. Let your money make money for you!
