Investor Empowerment

1
Investor Empowerment
November 10, 2003
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Investment Avenues( Last Decade )

• Bank Fixed Deposit
• Unit Trust of India - Fixed Income Scheme
• Post Office Schemes - NSC, PPF etc..
• Company Fixed Deposits

Not much Asset based Investment
3

• Also
• India probably the only country with high
  Interest rates
• Savings focused on Earning High Interest
• Not many Investment options
• Investments only with sovereign guarantee
  preferred

4
Globalisation of Indian Economy

• Change in the Investment Scenario
• Alignment with global interest rates
• High fixed earning investment a thing of the past
• Interest Rate Volatility to stay
• Return on Investment - Market driven
• Proactive Interest Rate Management - The need
  today

5
Investors need to acknowledge .. ...

• Earning Competitive Return on Investments may not
  be easy
• High Interest rates not sustainable in a growing
  economy
• Re-look at Investment Avenues - A necessity

6

• Investments need to be
• Diversified to other than Government and Banks
  Fixed Deposit - Mutual Funds and Monthly Income
  Plan - New flavours
• Asset Building Investments like housing -
  Essential
• Need to monitor interest rate constantly by
  switching investments

7
Interest Rate Outlook

• Economic growth Inflation to determine Interest
  
• Interest Rate cannot be predicted - Trends could
  be known
• Volatility in Interest rate will continue
• Mutual Fund Managers Specialised to handle
  volatility

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THANK YOU