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1. Little by little… Make your money work hard for you Ambalal Shares & Stocks Pvt Ltd, No 163,Durga Bhavan II Floor, New Katpadi Road, Vellore - 04

2. Little by little… You can achieve a lot through Ambalal Periodic Investment Practice (PIP) Ambalal Shares & Stocks Pvt Ltd, No 163,Durga Bhavan II Floor, New Katpadi Road, Vellore - 04.

3. Savings Do not save what is left after spending, but spend what is left after saving. - Warren buffett • Saving is income not spent or deferred consumption. • Methods of saving include putting money aside in a bank, Chits, Gold, Land and pension plan.

4. Why Savings? • All individuals need to save for • Retirement • Child’s education / Marriage • Medical emergency • Other family obligations If you buy things that you don’t need then one day you will have to sell the things that you need.            Your above objectives can be fulfilled by the savings?

5. Inflation eating your savings • Is your savings enough to meet your future expenditure? Your Savings pattern: Fixed deposit : ? % Gold : ? % Land : ? % Insurance : ? % Equity : ? % Cash in Hand : ? % 30 year average CPI is 8.83 Do you have enough savings to beat inflation and maintain present lifestyle?

6. Performance of your different investment • With last 10 years average inflation of 6.89%, What's your real return on savings & investment? Real Gain = Returns - Inflation Your Savings pattern: Fixed deposit : ? % Gold : ? % Land : ? % Insurance : ? % Equity : ? % Cash in Hand : ? %

7. Smart savings: Indian or American? • Indians are having the highest saving rate in world but still we are poor. Why? • Americans are having the lowest saving rate in world but they are one of the richest country in world. Why? Nearly 60% of savings are invested in stock market by Americans against 11% by Indians. Source: Gallup Inc, SEBI, NCAER Indians saving rate is 30 % and American’s saving rate is 4%. Source: SEBI, NCAER

8. Investment in Equity Only buy a share that you would be perfectly happy to hold if the market shut down for 10 years. - Warren Buffett

9. Our Perceptions… Equity perceived as • Meant for Corporate and HNIs • Short term/Long term in nature • Gambling • Risky in nature • Too Complicated • Don’t know how to invest • Markets are not right to start See the picture and identify the various images Whereas creating wealth through equity.. • Is not a function of income i.e even you can invest Rs 1000 • Is not a function of investment expertise • Is really a matter of Regular Savings

10. Timing doesn’t matter for long-term investment Regular savings on stocks or Periodic Investment Practice (PIP) yields the return of 16.91%

11. Periodic Investment Practice (PIP) in Stocks Fixed deposits are like 1 run & 2 runs in cricket; it is safe but not match winning tactic. PIP is a winning tactics in your financial match.

12. PIP – Periodic Investment Practice • PIP is an investment program that allows you to contribute a fixed amount in Stocks at regular intervals of weekly, monthly or quarterly. • Little drops of water form a mighty ocean • Why PIP’s? • Can avoid stock market volatility. • Systematic buying. • Cost averaging. • Easy to invest. • Power of Compounding

13. Benefits of PIP: 5 year returns Just 3 years PIP in stocks gives the return of 3375 % Investment duration is 2000-2002. Returns are calculated during 1week of 2008. Make Your money work hard for you

14. Benefits of PIP : Returns as on 31st Dec 2013 Just 3 years PIP in stocks gives the return of 1491 % Investment duration is 2000-2002. Returns are calculated during 31st Dec 2013 Little drops of money IN STOCKS form an OCEAN of wealth

15. Investment Clock PIP investment during next 2-3 years would give you the unimaginable returns Generally, one economic cycle will takes 8-12 years to complete these all four phases. Right now we are in trough phase which is same as the period of 2000-2003. One should compulsory invest for next 2-3 years

16. PIP – Rupee Cost Averaging Stock market trading near the life time high. So, is it right time to start PIP? Scenario 1 & scenario 2 implies that the investor who starts his investment right now has the same average price through PIP when compare to investor who invest at bottom. Scenario 3 shows the risk of opportunity lost if stock market doesn’t falls to expected level. • But in scenario 1, the investor’s total net worth will be high since he is investing form Dec 2013. Hence, invest earlier.

17. Invest Earlier Rate of Returns: 16.91% A drop of money forms an ocean of returns

18. PIP in StocksIllustration Past, Present & Future

19. BHEL- Comparison b/w 2000 and 2013 The average price of BHEL traded between 2000-2002 was 15.15.during the year 2008 it has touched the high 586. Nearly 38 times or 3800 % returns. Additional Income: Dividend. Current Market price is 141. If we starts PIP now then our average price would comes between 120-160. When bull run starts BHEL may go to 500 or even 1000 rupee per share.

20. SAIL- Comparison b/w 2000 and 2013 The average price of SAIL traded between 2000-2002 was 6.75. during the year 2008 it has touched the high 293. Nearly 43 times or 4300 % returns. Additional Income: Dividend. Current Market price is 66. If we starts PIP now then our average price would comes between 70-50. When bull run starts SAIL may go to 300 or even 500 rupee per share.

21. SBI - Comparison b/w 2000 and 2013 The average price of SBIN traded between 2000-2002 was 214. during the year 2008 it has touched the high 2574. Nearly 12 times or 1200 % returns. Additional Income: Dividend. Current Market price is 1821. If we starts PIP now then our average price would comes between 1600-1900. When bull run starts SBIN may go to 6000 or even 8000 rupee per share.

22. L&T - Comparison b/w 2000 and 2013 The average price of L&T traded between 2000-2002 was 56. during the year 2007 it has touched the high 2345. Nearly 42 times or 4200 % returns. Additional Income: Dividend. Current Market price is 994. If we starts PIP now then our average price would comes between 900-1050. When bull run starts L&T may go to 5000 or even 7000 rupee per share.

23. PIP - MODEL INVESTMENT

24. NIFTY BeES • Advantage: • Low Risk • Well diversified • Mirror of Nifty 50 movement.

25. GOLD BeES • Advantage: • Mirror of gold price. • Easy to buy or Sell.

26. High potential growth stocks for PIP Investment Highlights: • In each sector, top 5 companies are chosen based on various fundamental and technical factors and we picked 1 high potential growth stocks in that sector. • Hence these stocks are industry leaders your risk is minimized. • By investing in 9 sectors your investment is well diversified.

27. Nifty High Weightage Stocks for PIP Investment Highlights: • An alternative to Nifty Bees. • The above 10 stocks contributes 57 percentage of weightage in NIFTY INDEX. • It other words, these stocks are trend indicator for nifty. • Investing in these stocks is merely equal to investment in NIFTY INDEX hence our risk is reduced. • Well diversified PIP investment.

28. Good Dividend Yield Stocks for PIP Investment Highlights: • The above 9 stocks are picked based on dividend yield, bonus and potential growth of company in future. • Selectively picked from various sectors. • Dividend and growth in stock price is expected.