2. 2
Savings and Investments,
Investment Objectives and Philosophy
Investors Age and Asset Allocation,
Investment wisdom
Do’s and Not to Do’s for Investment in Capital
Market
FLOW OF DISCUSSIONS
3. Save Prudently ……. Invest even more wisely
One need to invest otherwise the savings would be eaten away
by inflation.
Be a an investor not a trader or a gambler.
3
WHY TAKE INVESTMENT
DISCUSSION
5. 5
Follow Life – cycle Investment
Greater risks when young
Gradual exit from risky investments as you turn 50
years of your age
Ensure risk free investments once reaching 60 years
AGE AND INVESTMENT
ALLOCATION
6. 6
Capital Markets: i) Primary Capital market & ii)
Secondary Markets (Equity Securities, Bond, Mutual
Funds)
Banking Product: FDR & Other Deposits,
Different Life Insurance Products
Government Saving Schemes
Other Alternative Investment (i.e. land, flat etc.)
AVAILABLE INVESTMENT
AVENUES
7. 7
• Your capital grows quickly
• Much faster than any other
investment
• Highly liquid investment
• Can sell it anytime and make cash
WHY INVEST IN CAPITAL
MARKET?
8. 8
Less capital requirement
You can start your business by investing just 5,000
Taka
Easily Manageable
Its only a matter of keeping your eyes and ears open
• Not Speculation
• Its not like u are Playing Casino,
it’s an investment
WHY INVEST IN CAPITAL
MARKET?
9. 9
Invest only in fundamentally strong companies
Will stand market pressures
Capital will not be eroded away
WHERE YOU INVEST YOUR
SAVINGS?
10. 10
SHOULD KNOW BEFORE INVEST
DECISION?
Look Inside the Company
The basics of a company to know
11. 11
SHOULD KNOW BEFORE INVEST
DECISION?
Is the management dynamic
and forward looking?
13. 13
SHOULD KNOW BEFORE INVEST
DECISION?
Is the environment good
enough?
Is the company facing
any labor problem?
14. 14
SHOULD KNOW BEFORE INVEST
DECISION?
Read carefully and take informed decisions
Do the own due diligence.
Read at least the risk factors, litigations, management
perception, promoters and companies track records
15. 15
NOT TO DO FOR INVEST
DECISION?
Don’t take decisions based just on summary accounts
Don’t borrow to invest in bear market
Don’t over depend on comfort factors
Don’t put all investment in single sector
Cheap shares are not necessarily worth buying
Beware about rumors
16. 16
SELECTING A COMPANY TO
INVEST IN
Don’t buy in a boom
Don’t wait for the highest price
Sell a share when your target price is
reached
The Right Price & The Right Time
17. 17
SELECTING A COMPANY TO
INVEST IN
If you have a promising growth share in mind the
best time to buy it is when the public losses
interest in the share
Share prices usually record a sharp rise just before
any expansion project
Companies often issue press releases about their
expansion plans
