FINANCIAL PLANNING AND WEALTH MANA

CLIENT
INFORMATION

ASSET RETIREMENT
ALLOCATION PLANNING

NAVIGATOR

FINANCIAL MARRIAGE
POSITION PLANNING

HOUSE
PLANNING
ALTH MANAGEMENT

GROUP-7
Akshita Sood 22DM024
RETIREMENT Anamika Mahapatra 22DM032
PLANNING Bhavna Yadav 22DM074
Dimple Garg 22DM090
Jatin Bajaj 22DM114
Kartik Panpalia 22DM122
Rishabh Kumar 22DM214
MARRIAGE
PLANNING
 Client - Ms. Naina, 34 years old
Dependents Sagar 14 years old
Disha 9 years old
Retirement 55 years
Expected Life expectancy 85 years

Financial Information
Salary Income (2019-2020) Annual (₹ ) Monthly (₹)
Basic Salary : 3,000,000
Employer’s contribution to NPS : 350,000
HRA : 800,000
Other allowances and reimbursements : 500,000
Total 4,300,000 358,333.33
Regular Outgoings: Monthly (₹) Annual (₹ )
Basic Household Expenses : 40,000
Services availed : 18,000
School Fees : 25,000
House Rent : 35,000
Other Utility expenses : 12,000
Car Loan EMI : 20,000
Total 150,000 1,800,000.00
Outgoings towards investment and insurance: (₹) Monthly (₹)
Equity Mutual Fund : 25,000 (Systematic Investment Plan -
Debt Mutual Fund : 15,000 (Systematic Investment Plan -
Insurance Premium ` : 38,759 3229.9166667
Health Insurance Premium 27,631 2302.5833333
Car Insurance Premium : 8,637 719.75
Total 46,252
Assets: (Valued on 31st March, 2019) (₹ lakh)
Equity Mutual Fund schemes : 1,545,000 11%
Debt Mutual Fund schemes : 765,000 7.50%
Equity Shares in Demat Account 2,392,000 11%
Equity Linked Saving Scheme 385,000 11%
National Pension System (NPS) balance 2,187,000 9.50%
Gold & Diamond Jewellery : 1,075,000 6%
Car : 450,000
Bank Account (Salary) (Cash) 382,000 6.00%
Fixed Deposits : 600,000 6.50%
300,000 6.50%

Liabilities: (Outstanding on 31st March, 2019) (₹ lakh)

Car loan : 570,000
 Total Monthly Exp 196,252.25
Total Monthly Income 358,333.33
Savings 162081.0833

(Systematic Investment Plan - SIP)

(Systematic Investment Plan - SIP)

2019) (₹ lakh)
 Existing Asset Allocation of Naina
Particulars
Equity Mutual Fund schemes
Debt Mutual Fund schemes
Equity Shares in Demat Account
Equity Linked Saving Scheme
National Pension System (NPS) balance
Fixed Deposit
Car
Bank Account (Salary)
Gold & Diamond Jewellery
Amount (₹ ) Amount (₹ )
₹ 1,545,000.00
₹ 3,000,000.00
₹ 765,000.00 ₹ 2,500,000.00
₹ 2,392,000.00 ₹ 2,000,000.00
₹ 1,500,000.00
₹ 385,000.00 ₹ 1,000,000.00
₹ 2,187,000.00 ₹ 500,000.00
₹-
₹ 900,000.00 es es nt e e it r y) ry
m m ou em nc pos Ca ar le
₹ 450,000.00 he he cc ch a la De Sa
l el
w
sc sc
at
A
g
S )b d t( Je
₹ 382,000.00 nd nd in S xe un nd
Fu Fu m av NP Fi co o
l l De S (
Ac am
₹ 1,075,000.00 tua tua i n
ke d
tem
nk Di
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ty btM ha tyL n ld
ui
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S ui si o Go
Eq ui Eq Pen
q
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pos Ca ar le
De Sa
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 Financial Position
Ratios Ideal Actual Position
Liquidity Ratio 4-8 or 15% 30.49137 Very Good
Savings Ratio 3 to 5 2.167957 Poor
Debt to Asset Ratio < 50% 5.65% Very good
Debt Servicing Ratio less than 40% 5.16% Very good
Solvency Ratio >= 50% 94.35% Very Good
Life Insurance Coverage Ratio > 10 7.530261 Average

Calculation of Various Ratios

Liquidity Ratio Cash ( near Cash) / Monthly Expense
Cash 5984000 30.49137
Monthly Expenses 196,252

Savings Ratio Savings / Gross Income

Savings 10081000 2.167957
Gross Income 4650000

Debt to Asset Ratio Total Liabilities/ Total Assets

Total Liablities 570000 0.056542
Total Assets 10081000

Debt Servicing Ratio Short term Liab. / Total net income

Short term Liabilities 20,000 0.051613
Total net income 387500
(monthly)

Solvency Ratio Net worth/ Total Assets

Net worth 9511000 0.943458
Total Assets 10081000

Life Insurance Coverage Ratio Net worth + exisitng life cover / Pos
Net worth 9511000 7.530261
Existing life cover 15000000
Tax 1,395,000
Post Tax salary 3,255,000
ar Cash) / Monthly Expenses

Gross Income

ilities/ Total Assets

m Liab. / Total net income (monthly)

h/ Total Assets

h + exisitng life cover / Post tax salary

Home Purchase
Current Value 12,500,000
Time 3
Real estate appreciation 6.50%
Value After 3 years ₹ 15,099,370.31

Balance as on 31st 19 Current Value (2019)

Equity ₹ 1,545,000.00
Debt ₹ 765,000.00
ELSS ₹ 385,000.00
Total
 Since, we have taken all the funds out from the savings to purchase the ho

Total monthly salary after deducting all the expenses

Ongoing SIPs
Yearly Pension Scheme Amount
Monthly Pension Scheme Amount
Total remaining Amount for Investment

Suggestions:-
1 Equity SIPs
Debt SIPs
Equity Shares in Demat Account
Fixed Deposit
 House Planning

Returns After 3 Years

11% ₹ 2,112,989.90
7.50% ₹ 950,357.11
11% ₹ 526,537.94
₹ 3,589,884.94

Equity Calculation
SIP Amount 25,000
Value of Initial Investment after 3 years

Debt Calculation
SIP Amount 15,000
Value of Initial Investment after 3 years

Total Investment after 3 years ₹ 5,253,933.74

Remaining Balance for House ₹ 9,845,436.57

Recommendation for House Planning

Monthly Savings 162081.083333333

New Equity SIP 75,000
New Debt SIP 50,000
Fixed Deposits 1,087,155
 New Monthly savings 37,081
Total SIP Amount after 3 Years ₹ 5,193,303.32
Demat Total after 3 years ₹ 3,271,373.35
Total Amount for House ₹ 14,805,765.08

from the savings to purchase the house. We recommend new investements into different asset classes.

133306.333333333
₹ 12,822.72
₹ 239,525.39
₹ 19,960.45
₹ 100,523.16

₹ 25,000.00
₹ 15,000.00 These are her additional savings apart from
₹ 30,000.00 children's marriage and pension scheme
₹ 30,000.00
ulation
₹ 1,060,578.08
₹ 2,112,989.90
₹ 3,173,567.97

lation
₹ 603,470.73
₹ 950,357.11
₹ 1,553,827.83

House Planning

Rate Time SIP Amount after 3 years

11% 3 ₹ 3,181,734.24
7.50% 3 ₹ 2,011,569.08
 Basic Details
Current Age 34
Retirement Age 55
Life Expectancy 85
Saving Period(in years) 21
Desired Period of Annuity(in years) 30
Desired Monthly Annuity ₹ 100,000.00
Inflation 4.50%
RFRR 5%

Calculation of Effective Rate of return

Investment Category Rate of Return Current Investment

Equity Mutual Fund schemes 11.00% ₹ 1,545,000.00
Debt Mutual Fund schemes 7.50% ₹ 765,000.00
Equity 11.00% ₹ 2,392,000.00
Equity Linked Saving Scheme 9.50% ₹ 385,000.00
National Pension System (NPS) balance 6.50% ₹ 2,187,000.00
Gold & Diamond Jewellery 6.00% ₹ 1,075,000.00
Fixed Deposits 6.50% ₹ 600,000.00
₹ 8,949,000.00

Real Rate of Return 3.96%

Amount Required at age 55 ₹ 21,057,405.99

Amount Required at age 34 ₹ 7,558,395.10 If lumsum is to be invested but since Naina has do not
Yearly Annuities(if amt saved in annuities) ₹ 589,525.39
Amount contributed by NPS employer ₹ 350,000.00
Remaining amount to be contributed ₹ 239,525.39 Recomendation for tax saving/pension
 NPS Calculation
Current NPS value ₹ 2,187,000.00
Yearly contribution from employer ₹ 350,000.00
Total ₹ 2,537,000.00
NPS return Rate 6.50%
Time period(after 2019) 21

te of return

Weights Effective Rate

17.3%
8.5%
26.7%
4.3% 8.63%
24.4%
12.0%
6.7%

is to be invested but since Naina has do not have enough fund we are going for Annuity.

dation for tax saving/pension

 Name Current age
Sagar 14
Disha 9

Final Amount ₹ 2,132,928.26

Amount Req Returns Monthly Returns
Equity 50% ₹ 1,066,464.13 11% 0.92%
Gold 20% ₹ 426,585.65 6% 0.50%
Debt 30% ₹ 639,878.48 7.50% 0.63%

Final Amount ₹ 2,854,339.15

Amount Req Returns Monthly Returns
Equity 50% ₹ 1,427,169.58 11% 0.92%
Gold 20% ₹ 570,867.83 6% 0.50%
Debt 30% ₹ 856,301.75 7.50% 0.63%

Recommendation:-
SIPs can be started in year 2019 as she is able to save Rs.37,000 monthly apart from fulfilling her other commitments.
 MARRIAGE PLAN

1,000,000 Year in which money is req

₹ 2,132,928.26 2032
₹ 2,854,339.15 2037
₹ 4,987,267.41
Basic Details
Current Age
No. of Years No. of Months SIP Marriage Age
13 156 ₹ 3,101.92 Years Remaining
13 156 ₹ 1,811.81 Inflation
13 156 ₹ 2,433.91 Expense(T0)
SIP Value ₹ 7,347.64 Total Money required Today

Amount Required
Year of Marriage
No. of Years No. of Months SIP
18 216 ₹ 2,117.68
18 216 ₹ 1,473.77
18 216 ₹ 1,883.64
SIP Value ₹ 5,475.08

lling her other commitments.

 Son Daughter
14 9
27 27
13 18
6% 6%
1,000,000 1,000,000
2,000,000

₹ 2,132,928 ₹ 2,854,339
2032 2037