Types of investment plans in Finideas Index Long Term Strategy

The video discusses three types of investment plans in the Finideas Index Long Term Strategy:

Investment Plans:

• Relax Plan:

  • Invest one crore rupees by bifurcating it into 30 lakhs in equity and 70 lakhs in debt.
  • Buy index ETF of 30 lakhs and index futures of 70 lakhs.
  • Protect the portfolio by paying a 5% premium.
  • Pay a financing cost of around 4-5% for the futures.
  • Earn interest income on the debt portion.
  • Net cost is only 3.5 lakhs.

• Basic Plan:

  • Similar to the Relax Plan but suggests using the remaining 70 lakhs in a smarter way, based on individual opportunities for higher returns or loan repayments.

• Power Booster Plan:

  • Use existing equity or mutual fund portfolio as collateral to buy futures.
  • Pay a 5% premium for protection and a 5% financing cost on the full portfolio.
  • Net cost is 1.9% due to leveraging existing assets.
  • Generate returns on the full portfolio with limited risk.

Presenters

• Not mentioned