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ArthaYantraFinancial Life Management Advisors
Mr. Abhishek Mathur & FamilyDecember-2016
LIFE TIME IMPACT ₹2,95,70,040 SAVINGS INCREASE ₹26,973
Emergency Fund ✓
Retirement ✓
Shreeya Higher Education ✓
Shreeya Marriage ✓
Emergency/Risk Coverage Medical Insurance ✓
Personal Accident ✓
Term Insurance ✓
Financial Planner
Kautabh Singh (CFP)
Fulfillment Specialist
Sneha Next Review
Jun-2017
3 Things You Should Continue 11 Things You Should Act On Now
1 Congratulations! Your Loans/Debt is at reasonable level! 1 Reduce Your Non-essential expenses to improve your savings by Rs.
96,638
2 You Invest in Mutual Funds! That's a good place to make more returns than Inflation! 2 Get Better Returns By Realigning Your Existing Insurances Impact
Rs.55,895
3 You have Pure Term Insurance Policies that gets You Optimal Coverage and lowest Cost. Congratulations!
3 Do Not Invest Your Money In Low Return Yielding Fd,Rds,Savings Accounts Potential Impact Rs. 1,35,838
4 Restructure Existing Loans To Save More Rs. 3,43,342
5 Realign Your Existing Portfolio To Get Good Returns At Much Lower Risk
6 Build An Emergency Fund of Rs. 3,00,000 for emergenecies and Keep it in Money Market to get Better Returns.
7 Buy Recommended Insurances to cover Yourself and Your Family from Uncertainities
8 Open Your Goal Enabler Mutual Fund Investment Account
9 Make One Time Investment in Your Custom Built LONG TERM MODERATE Portfolio to reach Your Goals!
10 Initiate Your Monthly Investments via SIP in your Custom Built Vs NIFTY Performance Portfolio
11 Review and Realign Your Financial Plan in 6 months
ARTHAYANTRA FINANCIAL PLANNING FRAMEWORK
1 Increase Your Cash Surplus 2 Invest It Right 3 Reach Your
Goals
✓ Reduce Unwanted Expenses
✓Free up Bad Financial Investment
✓ FD/RD Analysis ➟ ➟✓ Insurance Analysis
✓ Loan Analysis
✓ Tax Analysis
1
1 INCREASE YOUR CASH SURPLUS
✓ Reduce Unwanted Expenses
✓ Free up Incorrect Financial Investment
✓Savings Instruments Analysis
✓Insurance Analysis
✓Loan Analysis
✓MF/Equity Analysis
✓Tax Analysis
1.1
1.1 GET BETTER RETURNS BY REALIGNING YOUR EXISTING INSURANCES
Your Current Investment In Insurance ₹57,453 WHY ENDOWMENT/MONEYBACK/ULIP INSURANCES ARE A BAD BUY
1 Effective Returns Are Low: X Money Bank/Endow: Money doubles in 15 yrs, while Inflation reduces value to 1/3. Net Result: Negative Return
X ULIP Policies 1st 5 years ~6% is deducted as charges!. You Need to get 15%+ Returns just to save the premium
2 Coverage/Premium Ratio is too Low:X Endow/Money back: ~15-20X of annual premium
X ULIPs: ~10X of annual premium
X Pure Term:: ~75X of annual premium
Current Recommended
RETURN
₹10,37,613
₹7,56,000
IF YOU CONTINUE ARTHAYANTRA RECOMMENDATIONPOLICY
TYPE POLICY NAMEPREMIUM
TERM PREMIUM Value@Maturity/Cover
% NET RETURN
FUND VALUE
% NET RETURN NET GAIN
RECOMMENDATION
Endow Jeevan Anand 15 ₹7,818 ₹1,76,000 4.92% ₹2,60,724 9.47% ₹84,724 Surrender
Endow Jeevan Mitra 20 ₹10,567 ₹4,00,000 5.75% ₹5,72,786 8.77% ₹1,72,786 Surrender
Endow The Endowment Assurance Policy 10 ₹7,687 ₹1,80,000 5.56% ₹2,04,104 6.39% ₹24,104 Surrender
Pure Term increasing cover + accidental benefit 20 ₹15,333 ₹1,25,00,000 Continue
Pure Term Click 2 C 25 ₹16,048 ₹10,00,000 Continue
Monthly Cash Increase ₹1,532 Investable Surplus Increase ₹55,895
1.2
1.2 DO NOT INVEST YOUR MONEY IN LOW RETURN YIELDING FD,RDS,SAVINGS ACCOUNTS
RETURN COMPARISON MONEY MARKET VS SAVINGS/FD/RDWHY MONEY MARKET WINS ANYDAY!
INVESTED AMOUNT AY Recommendation
1. Higher Returns: Over 10 yrs ~50% more returns than Savings, FDs/ RDs.
2. Liquidity As Good As Savings! Encash within 12-24 hrs. No Locking or penality
3. Low Taxation: FD/RD/Savings ~31% tax/annum on interest! Money Market individual pays indexation adjusted capital gain tax of approximately 4-5%.
4. Low Risk: Money Market invests in Government bonds backed by Gov Of India.
₹1,00,000 SAVINGS FIXED DEPOSIT
RECURRING DEPOSIT
MONEY MARKET
AY PORTFOLIO
INVESTEMENT PERIOD IN YEARS 5 5 5 5 5PAYMENT FREQUENCY 1 1 12 1 1ANNUAL INTEREST RATE 3.5% 7.5% 7.5% 8.8% 12.0%INTEREST AMOUNT EARNED ₹19,034 ₹44,995 ₹13,271 ₹52,456 ₹76,234TAX (%) 20% 20% 20% 0.4% 0.0%TAX AMOUNT ₹3,807 ₹8,999 ₹2,654 ₹210 ₹0MATURITY AMOUNT AFTER TAX ₹1,15,227 ₹1,35,996 ₹1,10,617 ₹1,52,246 ₹1,76,234% RETURN AFTER TAX 2.9% 6.3% 2.0% 8.8% 12.0%INFLATION 7% 7% 7% 7% 7%
INFLATION ADJ RETURN -₹11,916 -₹2,960 -₹2,960 ₹9,141 ₹27,628
AY RECOMMENDS
Type InstituteInvested
Amnt Tenure ReturnTax Adj Return*
Recommendation Return Eff Return Net Gain
Other Sources ₹2,00,000 5 3.50% 2.80% Invest Now In AY Portfolio 12.00% 11.60% ₹1,22,856
PPF SBI ₹1,000 15 8.70% 8.70% Pay Min Amnt 0.00%
Fixed DepositCitizen bank Nahik ₹1,70,000 2 8.25% 6.60% Invest Now In AY Portfolio 12.00% 11.60% ₹12,361
Fixed DepositCosmos Bank ₹20,000 3 8.00% 6.40% Invest Now In Money Market 8.80% 8.44% ₹621
* Effective return post tax, penalty implications TOTAL GAIN ₹1,35,837
Monthly Cash Increase- Investable Surplus Increase ₹3,93,031
1.3 RESTRUCTURE EXISTING LOANS TO SAVE MORE
ArthaYantra Recommendation
Loan Type Outstanding Amount
Effective Interest
Rate
Remaining Tenure
Effective Opportunity
Rate*
Charges If Any*
Net Savings (Annual)
Net Savings (Tenure)
Recommendation
Home Loan ₹27,67,554 8.40% 200 7.4% ₹13,838 ₹19,255 ₹3,43,341 Refinance
Total ₹19,255 ₹3,43,341
*Values are approximate
Monthly Cash Increase ₹1,605 Investable Surplus Increase ₹0
1.4 REALIGN YOUR EXISTING PORTFOLIO TO GET GOOD RETURNS AT MUCH LOWER RISK
Mr. Abhishek Current Asset Allocation Long Term Moderate
Asset Type Allocation Large Cap 15%
Large Cap 40% Mid Cap 15%
Mid Cap 5% Index 25%
Small Cap 25% MidTerm Corp Bond 15%
GILT 10%
Commodities 5%
ShortTerm Corp Bond 15%
Performance Indicator ValueNo Instruments Amount 4% 1 Yr Return 15%
1 Equity 18% 3 Yr Return 22%
2 Mutual ₹7,74,203 14% 5 Yr Return 19%
Total ₹7,74,203 18.31% Riskiness 9.11%
-0.11 Sharpe 0.92
1.63 Sortino 1.34
* Asset Allocation Only for Mutual Fund that we were able to Classify 18.73 Alpha 7.99
1.08 Beta 0.48
WHY DIVERSIFICATION IS MORE IMPORTANT THAN STOCK/MF PICKING WHY WE DIRECTLY NOT INVEST IN EQUITY
Monthly Cash Increase ₹0 Investable Surplus Increase ₹7,74,203
1.5
1.5 TAX OPTIMIZATION
Linked
No Area Max LimitShortfall To
Cover Recommendation Where
1 Section 80 C ₹1,50,000 ₹15,000 Buy Term Insurance as per plan
2 Section 80 D ( Self) ₹25,000 ₹23,500 Buy Medical Insurance as per plan bimadirect.com
3 Section 80 D ( Parents) ₹30,000 ₹23,400 Buy Medical Insurance for Mother and Father bimadirect.com
4 Section 80 CCD ₹50,000 ₹50,000 Invest in NPS as per provided asset allocation arthayantra.com
5 Section 24 B ₹2,00,000 ₹0 Already Covered arthayantra.com
6 Section 80 E
Monthly Cash Increase ₹0 Investable Surplus Increase ₹22,380
1
1 SUMMARY : INCREASE YOUR CASH SURPLUS
Monthly Cash Increase
Investable Surplus Increase
Existing Monthly Savings ₹16,432
Reduce Unwanted Expenses ₹8,053
Free up Incorrect Financial Investment
Savings Instruments Analysis - ₹3,93,031
Insurance Analysis ₹1,532 ₹55,895
Loan Analysis ₹1,605 ₹0
Existing MF/Equity Analysis ₹0 ₹7,74,203
Tax Analysis ₹22,380
TOTAL Cash Freed Up ₹27,622 ₹12,45,510
Risk Management Investments✓ Emergency Fund ✓ Portfolio Creation
✓Insurances
Goals Fulfilment
2 RISK MANAGEMENT
1 Increase Your Cash Surplus 2 Invest It Right 3 Reach Your
Goals
✓ Reduce Unwanted Expenses
✓Free up Bad Financial Investment
✓ FD/RD Analysis
➟ ➟✓ Insurance Analysis
✓ Loan Analysis
✓ Tax Analysis
2.1 Secure Your Present: Build An Emergency Fund, Buy Pure Term Coverage, Health Insurance and Critical Illness
1 Emergency Fund Requirement90% of Indians are not equipped to handle emergency situations be it medical, personal or professional. ArthaYantra Recommends to keep 3- 6 months of Expense Requirement in liquid Money Market Fund so that a) its easily available and b) You earn reasonable 8-9% returns
Recommended Amount ₹3,00,000Recommended Fund ABC Floating Rate Fund Short Term Plan
Money Market Fund Comparison ChartFund Name 1 Yr Return Riskiness Sharpe Sortino
ABC Floating Rate Fund - STP 8.80% 0.53 3.53 3.99 AY Recommends
XYZTreasury Advantage Fund 8.52% 0.51 3.41 4.09
DEF treasury Advantage 7.80% 0.72 2.41 3.72
2 Insurance RequirementInsurance Type Insurance For
Recommended Coverage Tenure Covered Priority
Term Insurance Mr. Abhishek ₹3,00,00,000 25
Mrs Smithi
Wife of Mr. Kunal (ArthaYantra Customer)
3
3 INVEST IT RIGHT : PORTFOLIO CREATION
1 Increase Your Cash Surplus 2 Invest It Right 3 Reach Your
Goals
✓ Reduce Unwanted Expenses
✓Free up Bad Financial Investment
✓ FD/RD Analysis ➟ ➟✓ Insurance Analysis
✓ Loan Analysis
✓ Tax Analysis
3.1 LONG TERM MODERATE : YOUR CUSTOM BUILD RECOMMENDED PORTFOLIO BASIS YOUR RISK PROFILING AND GOALS
Risk Profile Moderate Portfolio Long Term Moderate
RECOMMENDED ASSET ALLOCATION KEY METRICS AY NIFTY
Large Cap 15% 1 Yr Return 0.15194 0.1055 1 Yr Return 15.2% 10.6%
Mid Cap 15% 3 Yr Return 0.21671 0.1763 3 Yr Return 21.7% 17.6%
Index 25% 5 Yr Return 0.18524 0.1633 5 Yr Return 18.5% 16.3%
MidTerm Corp Bond 15% Riskiness 0.09111 0.1796 Riskiness 9.1% 18.0%
GILT 10% Sharpe 0.9158 0.197682 Sharpe 0.9 0.2
Commodities 5% Sortino 1.344 0.3063 Sortino 1.3 0.3
ShortTerm Corp Bond 15% Alpha 7.99 Alpha 8.0 0.0
Beta 0.48 1 Beta 0.5 1.0
LUMPSUM AMOUNT TO BE INVESTED ₹13,32,166 LONG TERM MODERATE
MONTHLY INVESTMENTS (SIP) ₹20,717 Vs NIFTY Performance
Asset Class Fund One Time SIP
Large Cap ACB Large cap ₹1,99,825 ₹3,107
Mid Cap DEF mid cap ₹1,99,825 ₹3,107
Index XYZ Index ₹3,33,042 ₹5,179
MidTerm Corp Bond DIQ Mid term corp bond ₹1,99,825 ₹3,107
GILT bise Gilt fund ₹1,33,217 ₹2,072
Commodities XYZ gold fund ₹66,608 ₹1,036
ShortTerm Corp Bond Uim Short term corp bond ₹1,99,825 ₹3,107
Total ₹13,32,166 ₹20,717
3.1 CONGRATULATIONS! YOUR 4 OUT OF 4 GOALS ARE ACHIEVABLE.
Money Required Linked
Priority
Goal Year Current Value
Future Value
One Time Investment/ Linked Assets
Monthly Investment
Investment Type
Status
1 Emergency Fund 2016 ₹3,00,000 ₹3,03,766 ₹3,00,000Money Market Achievable
2 Retirement 2044 ₹6,00,000 ₹3,21,88,898 ₹3,39,166 ₹13,473 AY Portfolio Achievable
3 Shreeya higher Education 2029 ₹5,00,000 ₹56,09,097 ₹3,43,000 AY Portfolio Achievable
4 Shreeya Marriage 2032 ₹5,00,000 ₹12,70,176 ₹3,50,000 AY Portfolio Achievable
Total Value ₹19,00,000 ₹3,93,71,936
4 THE CHEAT SHEET - Your Ready Reckoner of To Do's !Take a Print ! Act On IT ! Stick to
the Plan !
Name Mr. Abhishek Age 35 Planing For Individual
Personal Financial Planner Kautabh Singh (CFP) Fulfillment Specialist Sneha
Potential Impact ₹0 Insurance Coverage ₹3,00,00,000 Goals Achievability 4/4
Way to success is not just to plan but to act on it !Why What Money In/Out Where When Status
Save More
Reduce Your Non-essential expenses to improve your savings by Rs. 96,638 ₹96,638
Save More
Get Better Returns By Realigning Your Existing Insurances Impact Rs.55,895 ₹55,895
Save More
Do Not Invest Your Money In Low Return Yielding Fd,Rds,Savings Accounts Potential Impact Rs. 1,35,838 ₹1,35,837 arthayantra.com
Save More Restructure Existing Loans To Save More Rs. 3,43,342 ₹3,43,341 arthayantra.com
Save More Realign Your Existing Portfolio To Get Good Returns At Much Lower Risk ₹7,74,203 arthayantra.com
Secure Present
Build An Emergency Fund of Rs. 3,00,000 for emergenecies and Keep it in Money Market to get Better Returns. ₹3,00,000 arthayantra.com
Secure Present
Buy Recommended Insurances to cover Yourself and Your Family from Uncertainities
Build Future Open Your Goal Enabler Mutual Fund Investment Account arthayantra.com
Build Future
Make One Time Investment in Your Custom Built LONG TERM MODERATE Portfolio to reach Your Goals! ₹13,32,166 arthayantra.com
Build Future
Initiate Your Monthly Investments via SIP in your Custom Built Vs NIFTY Performance Portfolio ₹20,717 arthayantra.com
Review and Realign Your Financial Plan in 6 months
APPENDIX A: INSURANCE CALCULATIONS
ULIP Insurance Analysis
POLICY ISSUER ICICX
POLICY NAME Pru
ISSUED ON 29-Nov10
PREMIUM ₹65,000
INVESTMENT TILL DATE ₹0
LESS COMMISION ₹4,528
LESS MORTALITY CHARGES ₹283
NET INVESTMENT -₹4,810
FUND VALUE ₹66,352
% EFFECTIVE RETURN 0.34%
ENDOWMENT Insurance AnalysisPolicy Issuer LID LID LID
Name of policy Jeevan Anand Jeevan Mitra The Endowment Assurance Policy
Policy Term 15 20 20
Commencement Date Feb-2014 Jan-2011 Mar-2006
Premium ₹7,818 ₹10,567 ₹7,687
Premium Term 15 20 10
Sum Insured ₹1,00,000 ₹2,00,000 ₹1,00,000
Invested so far ₹23,454 ₹63,402 ₹76,870
Reversionary Bonus ₹50 ₹50 ₹40
Final Additional Bonus ₹10 ₹0 ₹0
Maturity Value ₹1,76,000 ₹4,00,000 ₹1,80,000
Return % 4.92% 5.75% 5.56%
Paid Up Money Back ₹35,000 ₹1,20,000 ₹1,40,000
Paid Up and rest premium in Recommended Portfolio ₹2,40,935 ₹4,88,348 ₹1,40,000
Return % 8.57% 7.44% 3.90%
Surrender Value ₹14,063 ₹41,832 ₹65,716
Surrendar & Invest in AY Portfolio ₹2,60,724 ₹5,72,786 ₹2,04,104
Return % 9.47% 8.77% 6.39%
APPENDIX B: MUTUAL FUND ANALYSIS
RECOMMENDED MUTUAL FUND 1 Yr Returns 3 Yr Returns 5-Year Return Standard DeviationSharpeRatio
SortinoRatio Beta Alpha
ACB Large cap
DEF mid cap
XYZ Index
DIQ Mid term corp bond
bise Gilt fund
XYZ gold fund
Uim Short term corp bond
YOUR MUTUAL FUND 1-Year Return 3-Year Return 5-Year Return Standard DeviationSharpeRatio
SortinoRatio Beta Alpha
Birla Sun Life Infrastructure Fund 1.06 19.99 14.14 21.05 0.97 1.29 1.31 11.66
Edelweiss Mid and Small Cap Fund 4.01 30.1 23.88 19.06 1.46 1.95 1.14 20.17
Franklin India High Growth Companies Fund 3.86 25.51 22.43 16.89 1.3 1.91 1.07 14.69
Franklin India Smaller Companies Fund 12.8 33.95 29.06 15.9 1.94 2.24 0.97 24.29
ICICI Prudential Exports and Other Services Fund -2.63 21.01 24.27 14.04 1.31 1.53 0.43 15.45
Reliance Small Cap Fund 6.11 37.43 28.24 22.31 1.62 1.98 1.16 28.4
SBI Bluechip Fund 6.29 19.75 18.28 12.73 1.31 1.58 0.88 10.81
SBI Magnum Midcap Fund 9.02 30.93 27 14.86 1.99 1.96 0.82 24.03
APPENDIX C: FIXED INCOME ANALYSISCitizen bank
Nahik Cosmos Bank
Bank Other Sources Fixed Deposit Fixed Deposit
Start Date 21-Jul16 31-Mar16
Amount ₹2,00,000 ₹1,70,000 ₹20,000
Interest Rate 3.50% 8.25% 8.00%
Post Tax Return 2.80% 6.60% 6.40%
Tenure (Years) 5 2 3
Amount Received at Maturity ₹2,29,613 ₹1,93,780 ₹24,197
RECOMMENDED ALTERNATEInvest Now In AY Portfolio
Invest Now In AY Portfolio
Invest Now In Money Market
Amount Value as of today ₹2,00,000 ₹1,73,506 ₹20,808
Less Breaking Charge (1%) ₹0 ₹425 ₹100
Less Tax @20.0% ₹0 ₹616 ₹142
Net In Hand ₹2,00,000 ₹1,72,465 ₹20,566
Expected Return 12.00% 12.00% 8.80%
Net Tax 0.40% 0.40% 0.36%
Value at Maturity for Alternative ₹3,52,468 ₹2,06,141 ₹24,817
Net Gain ₹1,22,856 ₹12,361 ₹621
ArthaYantra Mission 2016Make 1,00,000 Indian Family's Future Financially Secure
Fact SheetUsers Served 120000+
In 600+ Citiesin 30+ Countries
90% of Users On Track to Achieve Their Goals
64% of Our Customers Refer Us
Arthayantra Corporate Pvt LtdAddress: 3rd Floor, Sai Galleria, Plot No., 472, Rd Number 36, Aditya Enclave, Venkatagiri, Jubilee Hills, Hyderabad, Andhra Pradesh 500081Phone:040 6658 8259
Arthayantra Corporate Pvt LtdAddress: 3rd Floor, Sai Galleria, Plot No., 472, Rd Number 36, Aditya Enclave, Venkatagiri, Jubilee Hills, Hyderabad, Andhra Pradesh 500081Phone:040 6658 8259