fp cfps kumar case study_casestudy

Private and Confidential ARB Financial Consultants

Strictly Private & Confidential

Comprehensive Financial Planning Service

Plan By : Ashish Ramesh Bhave CFPCM of 37

Comprehensive Financial Planning Service

Planning for MR.Kumar & Family

For Planning year July -2011

Plan By : Ashish Ramesh Bhave CFPCM Page 1 of 37


Disclaimer

A Financial Plan is a generic direction to your cash flows over a period of time. Your future financial

condition may alter due to changes in income/expense patterns, new family commitments, macro

economic scenario etc which may prompt you to alter some aspects of your goals and add new goals.

Therefore this Financial Plan and the Cashflows depicted in it should be used to give you a long term

direction for managing your personal finances while taking immediate actions as a step towards

accomplishing your financial objectives.

These recommendations are subject to review at the time when you are actually taking actions as

recommended because of changes in legal circumstances, economic conditions etc. If considerable time has

elapsed since the date of this plan, you should not act on any specific recommendation without further

consideration with the planner.

Returns from each recommended investment will vary in line with market conditions and investment policies of

the fund manager. Income and growth assumptions are intended as a guide only and should be treated with

caution. The planner should not be held responsible for the accuracy of the same. Most equity/ growth

investment are long term in nature and significant variations including capital loss, may occur over shorter

periods. Neither the authorized representative nor the company guarantees the performance or return of

capital on any of these investments. Performances of investments are subject to market risks. Past

performances of a particular asset class or investment may not be the true indicator of their performance in

future.

These recommendations are based on the information you have supplied. If any material information has been

withheld or any inaccurate, these recommendations could prove to be inappropriate for you.

While we have made every attempt to ensure that the calculations contained in this Financial Plan are correct

and complete, kindly note the plan may contain inaccuracies or errors due the manual-computer interface

involved in making the calculations and we expressly exclude liability for any such inaccuracies or errors. In the

case where a error or omission is involved, you can request us to rectify the error or omission, we shall do

needful.

Disclosure

If the product recommendation are implemented through us, we would receive applicable brokerage from

all/some the investments recommended. We will be entitled to commission directly from product providers.

We will be also eligible to other incentives including allowances and incentives based on volumes, discounted

services and awards.



Life Goals Yes/No

Insurance Planning (HLV - Income replacement Method ) Yes

Contingency Planning & Funding Yes

Children Higher education & Marrige Exp. Planning Yes

Retirement Planning Yes

Purchase of House Yes

Purchase of Car Yes

International Vacation Yes

Others Yes

Analysis Yes/No

Inflow/Outflow Yes

Assets/Liabilities Yes

Life Cashflows & Goal feasibility study Yes

Insurance Policies Yes

Mutual Funds Yes

Equity Portfolio Yes

Debt Instruments Yes

Others Yes

Scope of Work For Comprehensive Financial Planning consultancy Service.

Further to the Data Gathering Meeting held, we shall be covering the following in the your Personal Financial Plan to give you

Financial Planning Recommendations & a Goal-Oriented Investment Strategy;

Plan By : Ashish Ramesh Bhave CFPCM of 37Plan By : Ashish Ramesh Bhave CFPCM Page 3 of 37



Financial Planners Summary



Sr. No GoalsFuture value of

GoalGoal can be achived

1 Graduation 3,379,488 Yes Successfully

2 MS 5,694,633 Yes Successfully

3 Marriage 4,322,427 Yes Successfully

4 Others NA

1 0 NA Yes Successfully




1 Retirement Fund 85,124,708 Yes Successfully

1 Europe Tour 674,023 Yes Successfully

2 Europe Tour 1,135,768 Yes Successfully





1 Car 1 562,432 Yes Successfully

2 1 st change 769,727

3 2nd change 1,053,425

4 3rd change 1,441,684

Planners Comment - Planning year July 2011

Child 1 Education

Child 2 Education

Retirement

International Tours

Car



Sr. No Discription Need Calculation criteria Amount / Action to takeC

on

tin

ge

ncy

Contingency Fund

This is the fund required

as a support to Families

requirements in

emergencies.

6 X (monthly Household Exp +

Monthly Life style exp. + Monthly

commited Exp. Like insurance

premiums, EMI Etc.)

Rs. 638100/- to be maintained (

50% in Savings Flexi Fix a/c &

remaining in FD )

Medical Insurance To protect our existing

asset. The Life style of Individual & Age. Continue with existing plan

Accidenental &

Disability Policy

To protect our existing

asset.

For earning member in the family.

Monthly income X 75

SA : 7500000/- to Self & 4500000

for spouce

2 wheeler Plolicy To protect liability Third party liability insurance. As per company rules.

Life

in

sura

nce

Term insurance

To protect the

important financial goals

& liabilities

Creation of Fund to take care of Basic

Financial Goals & liabinities - Existing

life insurance.

Additional SA of Rs. 66 lac& 33 lac

to you & your spouce each for 10

& 20 years duration

Life insurance Investments to be made

in Efficient way Yield from investment Continue all the policies

PPF Self NA NA NA

Immidiate Corrective actions - Planning year July 2011

Financial plan - Portection system

Ge

ne

ral

Insu

ran

ce

Financial Plan - Existing Investment

Fix

ed

Inco

me

inst

rum

en

t



Products SIP Amount Yearly amount Remarks

HDFC Equity Fund 6000 72,000

DSPBR Equity Fund 6000 72,000

IDFC Premier equity

Fund13000 156,000

HDFC Midcap

Opportunities Fund8000 96,000

Canara Robeco

emerging Equity5400 64,800

ICICI Pru Dynamic Fund 5400 64,800

Birla Divident Yield Plus 3600 43,200

DSPBR Micro cap fund 3000 36,000

SBI Gold ETF 3,000 36,000

Nationlised Bank 319,050 50% of Contingency Fund

Savings A/C with Auto

sweep facility 319,050 50% of Contingency Fund

Nationlised Bank 72,000 Debt Portion of asset

allocationNationlised Bank 179,879 Reserves to time market

Investment strategy - Planning year July 2011Investment Statistics

Existing Financial Asset 680,473

Goals Funding for current year. 638,100

Reserves to be maintained in short term deposits

timing market 179,879

investment Product recommnendation

Bank FD

Net asset 42,373

Income in this year - regular exp. 857,022

Total investable surplus 899,395

Available funds for regular investment 719,516

Total Equity & Gold 640,800

Total Debt 889,979



Asset Class Amount investment % Distribution

Large cap Equity 144000 16%

Midcap Equity 316800 35%

Small cap Equity 36000 4%

Opportunity Equity 108000 12%

Gold 36000 4%

Debt 72000 8%

Reserves to time market 179879.0375 20%

Total 892679.0375 100%

Investment strategy - Planning year July 2011



Large cap Equity

16%

Midcap Equity

36%

Small cap Equity

4%

Opportunity Equity

12%Gold

4%

Debt

8%

Reserves to time

market

20%





Data & ARBARBARBARB's Recommendation



Personal & Dependent Details

Today's Date 19-Jul-11

Particulars Self Spouse

Title(Mr,Mrs,Ms) Mr. Mrs. Mr.

First Name Kumar Kumari Mrs.

Gender Male Female

Date of Birth 18-Sep-76 10-Sep-77 Male

PAN No. KYC complied ? Yes Yes Female

Residential Status Indian Indian

State of Health Good Good Service Private

Critical illness? N Diabetis Service Govt.

Smoker? N N Self employed

Date of Marriage(if applicable) 15/2/1994 Professional

Occupation Service Housewife Housewife

Life Expectancy 85 85 Retired

NA

Dependent Details

Name of Dependent Date of Birth Relationship Occupation Health Status

Chiranjiv 21-Mar-05 Child -1 NA Good

End of page



Income & Expenses details

Monthly Income

Income Head Self Spouse Total

Income from salary( NET/GROSS) 120000 60000 180000

Income from Business or Profession 0 0 0

Income from Other Sources 0 0 0

Gross Total 120000 60000 180000

Deductions if any 0 0 0

Net Income 120000 60000 180000

Growth in salary in % 9% 9%

Income from House property 0 0% 0

Total income 120000 60000 180000

Monthly Expenditure

Monthly Annual % of Income Inflation rate

15,000 180,000

8,000 96,000

5,000 60,000

1,000 12,000

1,600 19,200

1,500 18,000

32,100 385,200 18% 13%

2,000 24,000

5,000 60,000

1,000 12,000

0 0

5,000 60,000

13,000 156,000 7% 13%

2,000 24,000

0 0

2,000 24,000 1% 11%

0 20,790

0 3,988

250 5,000

250 29,778 0% 0%

22,000 264,000

0 0

12,000 144,000

34,000 408,000 19% 0%

81,350 1,002,978 45%

98,650 1,183,800 55%

0 0

0 0

25,000 300,000

8,500 102,000

33,500 402,000 19%

65,150 781,800 36%

12.92% 47,100

Electricity / Water / Labour / AMCs

Particulars

Food & Grocery

House Rent / Maintenance / Repair

Conveyance, Fuel & Maintenance

Medicines / Doctor / Healthcare

Life Insurance (Term)

Mobile / Telephone / Internet

Household Expenses

Clothes & Accessories

Shopping, Gifts, Whitegoods, Gadgets

Dining / Movies / Sports

Personal Care / Others

Travel & Annual Vacations

Lifestyle Expenses

Children's Schooling/College Expenses

Contribution to Parents, Siblings etc

Dependent Expenses

Insurance Premiums (Investments)

Mediclaim/PA/CI

Motor Insurance

Pure Insurance Premiums

Home Loan 1 EMIs

Home Loan 2 EMIs

Personal Loan EMIs

Loan Servicing

Surplus (Savings-Investments)

Customised Economic inflation

End of page

Net Outflows

Savings (Inflows-Outflows)

PF + VPF+PPF

Recurring Deposits (RDs)

Mutual Fund SIPs

Regular Monthly Investments



Sr. No. Holder Script Market rate No of script Total value ARB's

Recommendation

1 Self ASHOK LEYLAND LIMITED 24.75� 350 8,662.50 Sale

2 Self TATA CONSULTANCY SERVICES 965.00 25 24,125.00 Sale

3 Self HDFC BANK LIMITED 464.45� 125 58,056.25 Sale

4 Self SATYAM COMPUTER SERVICES LIMITED 71.05� 50 3,552.50 Sale

5 Self SHREE RENUKA SUGARS LIMITED 57.35� 500 28,675.00 Sale

6

7

8

9

10

11

12

13

14

15

16

17

18

19

Total 123071

Note : These all the scripts to be sold in Phased manner to enter in Our proposed portfolio.

Equity Investments


Total 123071

End of page



Sr.

NoFund Name

Option

(gr./div.)Holder

SIP

Y/NAmount

Total

Units

Latest

NAV

Present

Value

Locked in

(Y/N)

ARB's

Recommendation

1 Birla frontline growth self yes 3,000 560.00 67.79 37,962 No Hold

2 Franklin India BLUECHIP growth self yes 3,000 140.552 215.76 30,325 No Sale

3 HDFC TOP 200 growth self no 25,000 110 212.46 23,370 No Sale

4 HDFC BALANCED growth self no 45,000 917.436 58.78 53,926 No Sale

5 HDFC MidCap Opportunities growth self no 30,000 1,890.96 16.83 31,819 No Hold

6

7

8

9

Total 106,000 177,402

1

2

3

4

Total 0 0

Mutual Funds

Equity & Hybrid MF

To be sold or switched as per the requirement of portfolio.

Debt MF

End of page



Sr.No Particulars On NameInvestment

amount

Current

Accumulated

value

Investment

start date

Interest

rate

Date of

maturityMaturity Value

ARB's

Recommendation

1 PF Self 350000 0-Jan-00 9.50% 0-Jan-00 1,428,486.37

2 PF Spouce 125000 0-Jan-00 9.50% 0-Jan-00

3 PPF

4 PPF

5 PF

6 SA

7 Gratuity

8 PPF

9 PPF

10 PPF

11 PPF

12 PPF

13 PPF

14 PPF

15 PPF

16 PPF

Total 0 475000 1428486

End of page

Retirement Related investments / Benefits



Sr.No ParticularsInvested

amount

Current

Accumula

ted value

Investment

date

Coupon/

Interest

rate

Passive

income

p.a

Date of

maturityMaturity Value

ARB's

Recommendation

1 bank FD 50,000.00 19-Apr-11 9.25% 6-Jul-12 55,871.00

2 bank FD 50,000.00 19-Apr-11 9.25% 6-Jul-12 55,871.00

3 bank FD 45,000.00 15-Jul-11 9.25% 30-Jul-12 49,497.00

4 bank FD 150,000.00 9-Oct-10 8.00% 8-Dec-12 178,077.00

5

6

7

8

9

10

11

12

13

14

15

16

Total 295,000.00 0 0 339316

Fixed Income Instruments

End of page



Sr.No Type of PropertyPurchase

Value

Purchase

DatePresent Value On loan

Passive

income

Willing to

Liquidate

(Y/N)

ARB's

recomme

ndation

1 Resi House 2,500,000 1-Jan-00 4,500,000 yes No

2 Land 250,000 1-Jun-08 400,000 no Yes Hold

3

4

5

6

7

8

9

Total 4900000 0

Real Estate Investments

End of page



Sr. No ParticularsPurchase

Value

Purchase

Date

Present

Value

Willing to

Liquidate

(Y/N)

Liquidatio

n

Proportio

n

Liquidatio

n Amount

ARB's

Recommendati

on

1 Car / Bike NA No

2 Car / Bike NA No

3 Car / Bike NA No

4 Car / Bike NA No

5 Jwellery NA No

6 Gold ETF's 25000 50000 y

7 eGold NA No

8 Gold physical NA No

9 Silver No

No

Total Value 50000

End of page

Tangible Asset Investments



Liquid Assets

Sr No. Particulars Present Value ARB's Recommendation

1 Bank a/c 320,000.00�

2 cash in Hand 10,000.00�

3

4

5

6

7

8

9

10

11

12

13

14

15

Total 330000

End of page



Sr No. TypeName of

policyMode

Yearly

premiumDate of Issue

Maturity

DateCover

Surrender

Value

Maturity

Amount

ARB's

Recommendation

1 Endowment 0 Yly 5,113 11/09/90 11/09/15 100,000 130,000 Continue

2 Endowment 0 Yly 565 01/01/97 01/01/17 10,000 20,000 Continue



5 Endowment 0 Yly 10,224 06/07/01 06/09/25 260,000 Pension Continue

6 Endowment 0 Yly 20,790 03/05/11 03/05/27 3,000,000 0 Continue

1 NAV ULIP HIGH NAV Yly 50,000 03/01/19

98414 3570000 0

Life Insurance

Self

Spouce

Total Premium

End of page



Sr No. TypeCompany

Name

Individual /

Family coverDate of Start

Insurance Cover

Amount

Premium

Amount

ARB's

Recommendation

1 Mediclaim National 250000 Continue

2

3

4

5

6

7

8

9

0

Health Insurance

Premium Total

End of page



Sr No.Policy

Name

Policy

Type

Policy

HolderValid Upto

Premium

Amount

Claims (

if any )

ARB's

Recommenda

tion

1

2

3

4

5

6

0

General Insurance

Date of

CommencementInsured Amount

End of page



Sr.No Liability Type Borrers Name.Current rate of

interest p.aCurrent EMI

No.of

installments

Remaining

Balance

OutstandingARB's Recommendation

1 Housing Loan 1 8.25% 22,000 200 2387100 Continue

2

3

4 Personal loan 12000 12 144000 Continue

5 Personal loan 0

6 Credit Card Debt 0

7 Credit Card Debt 0

8 Other loans 0

9 0

Total 34000 2531100

Liabilities

End of page




Financial assessment & Goals quantification



Financial Objectives

Particulars Present value of expenses At Age Years till expenses Priority

Child 1 Education Chiranjiv

Graduation 1000000 18 High

MS 1000000 23 High

Marriage 500000 27 Medium

Others NA

Child 2 Education 0

Retirement

At Age 55 Maintining Std. of living High

Medical corpus 400000 High

International Tours

Europe Tour 400000 5 5 Low

Car Frequency of Change For first Such Exp. After

Car 1 500000 8 3 Low

Car 2 0 0 0

Child's Business seed capital



Particulars

Name

Date of Birth

Current Age

Retirement Age

Life Expectancy

% Income Increase

Dependents

Particulars Child-1 Child-2 Father Mother

Name Chiranjiv NA NA NA

Date of Birth 3/21/2005 NA NA NA

Current Age 6 NA NA NA

Real estate Auto. International tour Education Rental Income

14% 4% 11% 11% 6%

Investment

StrategyAggressive Coutious Conservative Protective

Expected returns 16% 12% 10% 8%

Plan Date

7/19/2011

Economic InflationInflation Post

retirement

Post tax return post

retirement

13% 8% 9%

85

18-Sep-76 10-Sep-77

Data & Assumptions For Financial plan structuring

Self Spouce

Kumar Kumari

8% 10%

Growth rate assumptions

Returns Assumptions

Other Assumptions

35 34

55 55

85



Particulars Total Percentage

Residential Property 4,500,000

Vehicle 0

Jewellery 0

Inheritance of Wealth 0

Others 0

Personal Assets 4500000 71%

Savings Bank/Cash in Hand 330,000

Receivables 0

Total Liquid Assets 330000 5%

Fixed Deposits 295,000

PPF (Public Provident Fund) 475,000

EPF + Superannuation +

Gratuity0

NSC / POMIS / KVP / RDs etc 0

Debt Mutual Funds 0

Traditional Insurance Policies

SV0

Bonds/Debentures/CDs 0

Total Debt Assets 770000 12%

Direct Equity 123,071

Equity & Hybrid Mutual Funds 177,402

Unit-linked Insurance Policies

SV0

Total Equity Assets 300473.1875 5%

Gold/Silver (ETFs, MF, Bars) 50000 1%

Real Estate 400000 6%

Total Assets 6350473.187 100%

Home Loan 2,387,100

Vehicle Loan 144,000

Personal Loan 0

Total Liabilities 2531100

Networth (Assets-Liabilities) 3819373.187

Networth Statement



%

Networth 3,819,373 60%

Total Liabilities 2,531,100 40%

Total Assets 6,350,473

%

Monthly Income 180,000 100%

Monthly Exp. 81,350 45%

Investable Surplus 98,650 55%

Networth

ARB's Comment : The Solvency ratio is very Good .

Requested to maintain the same.

Monthly Cashflow

ARB's Comment : The expenses are with in the

Networth Total Liabilities Total Assets

3,819,373

2,531,100

6,350,473

Networth

180,000

81,35098,650

Monthly Cashflow

limits & investment surplus ratio is healthy, a good

sign.

Monthly Income Monthly Exp. Investable Surplus



Existing investment portfolio %

Debt 1,100,000 59%

Equity 300,473 16%

Commodity 50,000 3%

Real estate 400,000 22%

Total Assets 1,850,473 100%

%

Income 180,000 100%

Household

Expenses32,100 18%

Lifestyle Expenses 13,000 7%

Dependents

Expenses2,000 1%

Pure Insurance

Premiums250 0%

Loan Servicing 34,000 19%

Regular

Investments33,500 19%

Surplus 65,150 36%

Current Income - Expenses distribution

ARB's Comment : The Investment portfolio is slightly tilted

towards Debt , less exposure to commodity.Debt

59%

Equity

16%

Commodity

3%

Real estate

22%

Existing investment portfolio

18%

7%

1%

0%

19%

36%

Current Income - Expenses distribution

Household Expenses

Lifestyle Expenses

Dependents Expenses

Pure Insurance Premiums

Loan Servicing

Regular Investments

Surplus


ARB's Comment : Proportion to House hold , Life style ,Loan

servising to Income is with in the limits.

19%

Surplus



Type Discription Present value of Financial goals

Child Education 3066309.185

Retirement 7591947.235

Contingency Fund 638,100.00

Other goals 2,820,248.20

Household Exp. 7,552,113.05

Life style Exp. 3,058,488.15

Loans 2,531,100.00

Total liability 27258305.82

Existing life cover (Post

surrendered policies)3,570,000.00

Existing Asset 680,473.19

Additional required 23007833

Life insurance need analysis

Goals

Liabilities



Existing life cover

(Post surrendered

policies)

13%Existing Asset

3%

Additional required

84%




Contingency Fund

Particulars Amount

Current Monthly Expenses

Household Exp. 32,100

Life style exp 13,000

Commited Exp. 2,000

Insurance premiums 25,250

Loan EMI 34,000

Total Monthly Expenses 106,350

Contingency Funding Requirement

Contingency Period (No. of Months) 6

Contingency Funds 638,100

Planners Comment : This is the Fund which is required to be maintained in the

easily accassable form. This will help a Family to Sustain in any type of

contingency.



Child-1 Name

Goal Graduation Post Graduation Marriage Others

Goal @ Age 18 23 27 NA

Years to Goal 12 17 21 NA

Current Value 1,000,000 1,000,000 500,000 0

Year OF Goal 3/17/2023 3/15/2028 3/14/2032 NA

Future value of

Goal3379488 5694633 4322427 NA

Child-2 Name

Goal Graduation Post Graduation Marriage Others

Goal @ Age 0 0 0 0

Years to Goal #VALUE! #VALUE! #VALUE! #VALUE!

Current Value 0 0 0 0

Year OF Goal #VALUE! #VALUE! #VALUE! #VALUE!

Future value of

Goal#VALUE! #VALUE! #VALUE! #VALUE!

Child's Education.

Children's Future

Child 1

Children's Future

Child 2



Car Purchase Planning

Car 1

Year to buyToday's price

of a Car

Funture Projected

price of a carYear Count

21-Jul-12 500000 562432 3

19-Jul-20 500000 769727.0282 11

17-Jul-28 500000 1053424.588 19

15-Jul-36 500000 1441684.288 27

Car 2

Year to buyToday's price

of a Car

Funture Projected

price of a carYear Count

0 #VALUE!



Retirement Planning

Particulars Amount Remarks/Notes

Current Expenses

Household Exp. 32,100

Life style exp. 13,000

Addition/Deduction (Vacations,

Insurance etc)2,000

Total Monthly Expenses 47,100

Total Annual Expenses 565,200

Future Expenses at Retirement

Retirement Age 55

Reduction in Exp. 20%Reduction is considered as family

size will reduce to 2 from 3

Inflation 10%

No. of Years for Retirement 20

Retirement Year 5-Sep-31

Expenses in the First Year of

Retirement3,084,298

Corpus Required to Fund Retirement

Expenses

No. of Years in Retirement 30

Inflation during Retirement Years 8.00%

Tax adjusted Investment Returns on

Retirement Corpus9.00%

Net Returns 0.93%

Retirement Corpus Required

considering rental income80,503,470

Medical corpus

Amount at present value 400,000

Inflation 13%

Amount at the time of retirement 4,621,238

Total Corpus required

Retirement Fund ( Cost of living ) 80,503,470

Medical corpus 4,621,238

Total 85,124,708



International Tours

Year to tourToday's price of a

Tour

Funture

Projected priceYear Count

17-Jul-16 400000 674023 5

16-Jul-21 400000 1135768.394 10

15-Jul-26 400000 1913835.795 15

14-Jul-31 400000 3224924.614 20

12-Jul-36 400000 5434185.521 25

11-Jul-41 400000 9156918.629 30



Other Goals

Plan For Year Of GoalToday's

Amount

Funture

Projected

Amount

Year

Count

0 0-Jan-00 0 0 0.00

0 0-Jan-00 0 0

0 0-Jan-00 0 0

0 0-Jan-00 0 0

0 0-Jan-00 0 0

0 0-Jan-00 0 0

0 0-Jan-00 0 0

0 0-Jan-00 0 0

0 0-Jan-00 0 0



Mobile : 8793107044

Financial plan Prepared by

Ashish Ramesh Bhave. MBA. CFPCM

Contact Details :

Flat no . 33, 1535,Sadashiv peth , Tilak Road

Pune -411030

email : [email protected]


fp cfps kumar case study_casestudy

Economy & Finance