How to MakeMoney ? April 2015 It’s all about Money Money Is Not Everything In Life, Money Doesn’t Matter. Make Sure That You Have Made Enough Money Before Making Such Statement. --Warren Buffet India or Abroad ? India India 200% 0% 176% Infosys Software 69% 76% Microsoft IBM 10 years India 600% Automobiles 516% 400% 200% 30% 0% Maruti Honda 10 years 89% Toyota . Debt or Equity ? . Equity 780 800 400 193 0 1.87 4.55 47 48 16 years 62 . Trade or Invest ? . Trading ? Sell Sell Buy Sell Buy Sell Buy Sell Buy Sell Buy Sell Buy Buy Buy Buy . Trading ? Buy the market is red hot Stock market is for gamblers Buy more when the prices are down See I was right to buy at low What happened ? What happened ? Cut the loss Time to short more See I was right to sell. stock market is for bears only . let me short also It will fall further. Trading Is Injurious to Your Financial Health . Invest Maruti to Mercedes Benz 6 times in 6 years . Invest Economy to Luxury From ‘place’ to ‘palace’ in 14 years . Invest Paint a house or buy one? Century in 22 years . Invest Dreams in a decade Nirvana in 10 years . Invest 114 times 90 times 66 times 22 times 19 times 15 years Invest what you consumed . Why Do I Lose Money In Indian Equity Markets ? . You Work Hard to do it 7.5 times in 16 years 42 times in 26 years 236 times in 36 years . SENSEX Perfect timing to lose money .Price to Book Value . I Am Worried About Negative Returns in Equities . 33 % Drop .74 % Drop .Buy Good Companies and Give Time R G A C % 46 .50 % Drop . I Am Worried About The Corrections In Market . Infosys – 70 % Down . Where Is The Correction ? . Hero Honda – 35 % Down . Where is the Correction ? . I am worried about Prices going down even temporarily? . Correction is an Opportunity 100 25 % 100 80 100 % .90 % 40 100 % 10 20 100 % 900 % . 921 .437 15.Time on Pitch 29. What if I don’t invest in equity ? . . 4 Billion Source : Forbes Oct 1998 issue .000 times in 41 years & Today the value would stand at $1.That was in 1998 up 30. But There is only one Warren Buffet . 2011 US citizen moves court seeking release of his shares MUMBAI: A US citizen has moved the Bombay high court for direction to the Custodian of Enemy Property to release 120 shares along with bonus shares and accrued dividend of Western India Vegetable Products Ltd ( WIPRO). A division bench of Justice P B Majmudar and Justice Mridula Bhatkar on Wednesday was hearing a petition filed by Abubaker Cochinwala. and there may be conflicting claims if the shares are surrendered to him.Times of India July 14. they were in his name by a declaration of gift deed by his father in 1951 and being US citizen the shares could not be enemy property. the judges adjourned the matter asking Cochinwala to state if he was willing to file a substantive civil suit in appropriate court to get his title adjudicated. stating that at the time of vesting. saying its no more enemy property. Additional solicitor general Darius Khambata told the court that the shares are worth Rs 750 crore today. a Texas resident. . His advocate Rajiv Narula argued that the property (shares ) is vested with the custodian only for management purposes in a "fiduciary capacity". some based in Pakistan and others in the US. Khambata said Cochinwalla has a stepmother and 10 other siblings. Observing that prima facie the high court cannot go into these issues. It happens in Fund also . 000/. Fund Managed by Mr.It happens in Fund also Kotak 50* (Div) Performance (%) as on 31st March. Harish Krishnan. . 2015 Scheme Inception date is 29/12/1998.A stands for data not available. Returns > 1 year: CAGR (Compounded Annualised Growth Rate).*All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Note: Point to Point (PTP) Returns in INR shows the value of 10..investment made at inception. # Name of Scheme Benchmark. Source: ICRA MFI Explorer. N. Returns <= 1 year: Absolute. ## Name of Additional Benchmark.^Past performance may or may not be sustained in future. Returns > 1 year: CAGR (Compounded Annualised Growth Rate).A stands for data not available.000/. Fund Managed by Mr Abhishek Bisen & Mr Deepak Agrawal. . Classification of schemes in short term & long term is based on the average maturity of the scheme. Deepak Agrawal. Abhishek Bisen & Mr. # Name of Scheme Benchmark. 2015 Scheme Inception date is 29/12/1998. *All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV.investment made at inception. Returns <= 1 year: Absolute.It happens in Fund also Kotak Gilt Investment*Performance (%) as on 31st March. N. Source: ICRA MFI Explorer. Please refer the slides after “Thank you” for top 3 and bottom 3 schemes managed by Mr. Note: Point to Point (PTP) Returns in INR shows the value of 10. ## Name of Additional Benchmark.^Past performance may or may not be sustained in future. Why don’t I invest in Real Estate or Gold only ? . 97% .000 per sq. 12.Don’t put all eggs in one Basket • Real Estate – Dubai has witnessed the boom and doom – Back in India.95 16.76 30-Jan-15 29182. real estate is still considered a profitable asset – Price: Rs 600 per sq foot in 70’s to Rs 125.56% Source: Internal Research Calculations SENSEX 01-Jan-80 -118. foot in 2015 – 208 times up in 45 Years – Exclude Maintenance and Repair Charges – CAGR is approx.56 % REAL ESTATE 01-Jan-70 -600 30-Jan-15 125000 12. 21% 14.73% -3.27% 3.GOLD PRICE CHART FROM 01-01-1970 01-01-1980 01-01-1990 01-01-2000 01-01-2010 TO 31-12-1979 31-12-1989 31-12-1999 31-12-2009 30-01-2015 26 PLUS YEAR 62 % FALL IN PRICES Data Source: Bloomberg RETUR N P.14 % -32% .27% -3.A % 30. I always made money in Real Estate…. . Making Money • Long Term Investment • No Trading • Adequate Research and Due Diligence • Judicious use of Leverage • This are all Key to make money on any asset class. . Regular Investment Balanced Investment Long Term Investment . 91 To Jan 30.Facts about Sensex • Sensex has given a compounded return of 15. • TIME IN THE MARKET IS MORE IMPORTANT THAN TIMING THE MARKET Internal calculation of S&P BSE SENSEX from 1/1/91 to 30/1/15 .03 % return From Jan 1.2015 • There are only 21 days when Sensex has hit a Six ( More than 6 % daily Return ) • There are only 90 days when Sensex has hit a Four ( More than 4 % Daily Return ) • If you had not invested for Just 53 days out of total period of 5812 days your return from Sensex will become NIL. If you are expert why can’t you promise 24 % p.a return ? . 000.000.000 50.Risk and Return go together Original Investment Target Amount 1.000 Returns Compounded @ Years to Reach There 10% 186 12% 156 15% 127 18% 107 24% 82 36% 58 That is the World’s Market Cap Source: Internal Research Calculations .000.000. Value SELL MORE EXPENSIVE SELL MORE SELL FAIR VALUE BUY CHEAP BUY MORE BUY MORE .Price Vs. Long term Gain Equity : Buy on Dips and Do SIPs Gold : Invest Through Gold ETF Fixed Income : Grab Duration Real Estate: Consult the expert ● .Summary Asset Allocation ● Regular Investment Short term Pain vs. Joshua Bell Experience . Disclaimer This Document is strictly confidential and is meant for private circulation only. Mutual Fund Investments are subject to market risk. Past performance is no guarantee of future performance . Ltd. This document does not constitute advice to buy/sell any scheme of Kotak Mahindra Mutual Fund. and must not be taken as the basis for an investment decision. completeness or fairness of the information and opinions contained herein. Neither Kotak Mahindra Mutual Fund. This document represents the views of Kotak Mahindra Management Co. The document is solely for the understanding of intended recipients only. No representation or warranty is made as to the accuracy. 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