Sample Financial Plan For - ICICI Direct

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Sample Sample Sample Sample Financial PlanFinancial PlanFinancial PlanFinancial Plan

ForForForFor

Mr. Mr. Mr. Mr. A*** BA*** BA*** BA*** B************

Name of Advisor : Name of Advisor : Name of Advisor : Name of Advisor :

Contact No. : Contact No. : Contact No. : Contact No. :

Date : Date : Date : Date :

Prepared By : Prepared By : Prepared By : Prepared By :

Contact No. Contact No. Contact No. Contact No. : : : :


ContentsContentsContentsContents

Sr. No.Sr. No.Sr. No.Sr. No. TopicTopicTopicTopic Page No.Page No.Page No.Page No.

1 Scope 3

2 Assumptions 4

3 Personal Details & Goals 5

4 Income – Expense Analysis 7

5 Your Networth 10

6 Key Ratios 11

7 Your Risk Profile 12

8 Insurance Planning 13

9 Cash Flow 18

10 Goal Planning 21

11 Retirement Planning 24

12 Summary of Recom. Investments 28

13 Asset Allocation 29

14 Action Plan 31

15 Disclosures & Disclaimer 41


ScopeScopeScopeScope

The Financial Plan identifies your present financial condition and what you want to achieve in

future. Based on the information we have obtained during our meeting, a comprehensive

financial plan has been developed for you which will provide you a guidance on your financial

objectives.

The scope of your financial plan is as follows:

• Your income - expenses analysis - this analyses your current income & expenses, your

investments and savings

• Insurance planning identifies your insurance requirement against possible risks

• Cash flow gives you an understanding of your future cash inflows and outflows at various

stages in your life

• Goal planning identifies and analyses the requirements for your various financial goals

including your children goals

• Retirement planning analyses your post-retirement needs and a suitable solution which

addresses those needs

• Asset Allocation analysis – this is based on the criticality and tenure of your future goals.

Taking every aspect into consideration, this report will give you an insight into your financial

goals and a suitable action plan for them.


Note:Note:Note:Note: In the entire report ‘Self’ denotes the husband & ‘Spouse’ denotes the wife.

AssumptionsAssumptionsAssumptionsAssumptions

While creating your financial plan we have based our calculations on certain assumptions.

• The financial plan & the various requirements are based on your present financial

condition.

• The average inflation rate assumed for current education expenses of your children is

10% p.a., whereas the average inflation rate assumed for all other expenses is 7% p.a.

till your lifetime.

• Self is expecting a growth in salary at an average rate of 6% p.a.

• Self is expecting a growth in rental income at an average rate of 5% p.a.

• The increase in cost of your goals has been assumed as per the rates mentioned in

page no.6.

• Self has planned to retire at the age of 58 years, but we have considered the retirement

age of self to be 55 years.

• The life expectancy for self & spouse has been taken at the respective age of 70 years.

• The value of your existing financial assets has been considered as on December 01,

2015 in the plan and this date is considered as the date of the plan.


Personal DetailsPersonal DetailsPersonal DetailsPersonal Details

SelfSelfSelfSelf DetailsDetailsDetailsDetails

Name: Name: Name: Name: Mr. A*** B*** AgeAgeAgeAge: : : : 44 years Occupation: Occupation: Occupation: Occupation: Salaried

Family DetailsFamily DetailsFamily DetailsFamily Details

NameNameNameName RelationshipRelationshipRelationshipRelationship AgeAgeAgeAge OccupationOccupationOccupationOccupation

Ms. C*** D*** Spouse 41 years Home Maker

X Son 13 years Student

Y Daughter 13 years Student


Your Financial GoalsYour Financial GoalsYour Financial GoalsYour Financial Goals

The first step in creating a financial plan is to identify your financial goals. You have mentioned

the below financial goals for you and your family.

Your goals have been classified into 2 types – Critical and Discretionary – based on your

priorities & tenure of goals.

Goal NameGoal NameGoal NameGoal Name Year of Year of Year of Year of

GoalGoalGoalGoal

Years to Years to Years to Years to

GoalGoalGoalGoal

Present Present Present Present Value Value Value Value

of Goal (Rs.)of Goal (Rs.)of Goal (Rs.)of Goal (Rs.)

Inflation Inflation Inflation Inflation

Rate%Rate%Rate%Rate% Type of GoalType of GoalType of GoalType of Goal

X - Graduation 2020 4 1,200,000 8% Critical

Y - Graduation 2020 4 1,200,000 8% Critical

Buying Plot 2021 5 2,500,000 5% Discretionary

X - Post Graduation 2024 8 1,500,000 8% Critical

Y - Post Graduation 2024 8 1,500,000 8% Critical

Retirement 2027 11 946,900 p.a. 7% Critical

X - Marriage 2028 12 1,000,000 7% Critical

Y - Marriage 2028 12 1,000,000 7% Critical

Identifying and prioritizing your goals and the associated costs is the first step in your journey

towards a financially secure future.


IIIIncome ncome ncome ncome –––– Expense AnalysisExpense AnalysisExpense AnalysisExpense Analysis

IncomeIncomeIncomeIncome (post(post(post(post----tax) (for next 12 montax) (for next 12 montax) (for next 12 montax) (for next 12 months)ths)ths)ths)

Source of IncomeSource of IncomeSource of IncomeSource of Income Amount p.a. (in Rs.)Amount p.a. (in Rs.)Amount p.a. (in Rs.)Amount p.a. (in Rs.)

Salary of Self 2,064,000

Bonus - Self 600,000

Rental Income 114,000

TotalTotalTotalTotal 2,778,0002,778,0002,778,0002,778,000

It is advantageous to spread your family’s income through at least 2 or more sources to reduce

the risk of relying on only one source.

ExpensesExpensesExpensesExpenses (for next 12 months)(for next 12 months)(for next 12 months)(for next 12 months)

Expenses TypeExpenses TypeExpenses TypeExpenses Type Amount p.a. (in Rs.)Amount p.a. (in Rs.)Amount p.a. (in Rs.)Amount p.a. (in Rs.)

Household 400,000

Entertainment 100,000

Medical 50,000

Education 200,000

Traveling 50,000

Vehicle Maintenance 120,000

Home Loan 99,392

General Insurance Premiums 15,000

Term Insurance Premium 20,817

TotalTotalTotalTotal 1,055,2091,055,2091,055,2091,055,209


The next chart gives you a break up of your expenses. This can be used to review your

discretionary expenses for any additional saving opportunities.

Expenses Break Up

39%

9%5%

19%

5%

11%

9%1%

2%Household

Entertainment

Medical

Education

Traveling

Vehicle Maintenance

Home Loan

General Insurance

Premiums

Term Insurance

Premiums

Insurance & InvestmentsInsurance & InvestmentsInsurance & InvestmentsInsurance & Investments (Outflow for next 12 mo(Outflow for next 12 mo(Outflow for next 12 mo(Outflow for next 12 months)nths)nths)nths)

The following are your current insurance premium and investment outflows.

ParticularsParticularsParticularsParticulars Amount p.a. (in Rs.)Amount p.a. (in Rs.)Amount p.a. (in Rs.)Amount p.a. (in Rs.)

Investments – Chit Fund (Rs. 6,000 p.m. for 4 months

& Rs. 13,000 p.m. for 1 month) 37,000

Life Insurance Premiums (except term plan) 118,430

TotalTotalTotalTotal 155,430155,430155,430155,430

SavingsSavingsSavingsSavings

ParticularsParticularsParticularsParticulars Amount p.a. (in Rs.)Amount p.a. (in Rs.)Amount p.a. (in Rs.)Amount p.a. (in Rs.)

Your Total Savings (Rs.)Your Total Savings (Rs.)Your Total Savings (Rs.)Your Total Savings (Rs.) 1,722,791

The part of savings you are investing currently (Rs.)The part of savings you are investing currently (Rs.)The part of savings you are investing currently (Rs.)The part of savings you are investing currently (Rs.) 155,430

The part of savings available to invest (Rs.)The part of savings available to invest (Rs.)The part of savings available to invest (Rs.)The part of savings available to invest (Rs.) 1,567,361


Cash Management

2,778,000

1,055,209

1,722,791

1,567,361

Type

Amount in Rs.

Annual Income

Annual Expenses

Savings

Investible Surplus


Your NetworthYour NetworthYour NetworthYour Networth

Net worth Analysis shows your financial condition as on a specific date. This will help you to

monitor your progress as you build your assets.

BreakBreakBreakBreak----up of Assetsup of Assetsup of Assetsup of Assets Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)

Home Value 5,500,000

Home Content 100,000

Real Estate Investments 6,260,000

Vehicles 700,000

Fixed Assets Fixed Assets Fixed Assets Fixed Assets ---- TotalTotalTotalTotal 12,560,00012,560,00012,560,00012,560,000

PF Accumulation (Self) 1,200,000

Gratuity (Self) 357,000

Encashment of Privileged Leave (Self) 88,400

PPPPF &F &F &F & otherotherotherother retirement benefits retirement benefits retirement benefits retirement benefits –––– TotalTotalTotalTotal 1,645,4001,645,4001,645,4001,645,400

Equity 335,887

Mutual Fund Equity & Balanced 40,000

Chit Funds 283,000

Savings Bank Balance 400,000

Other Financial Assets Other Financial Assets Other Financial Assets Other Financial Assets ---- TotalTotalTotalTotal 1,058,8871,058,8871,058,8871,058,887

Total AssetsTotal AssetsTotal AssetsTotal Assets 15,264,28715,264,28715,264,28715,264,287

BreakBreakBreakBreak----up of Liabilitiesup of Liabilitiesup of Liabilitiesup of Liabilities Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)

Home Loan 300,000

Total LiabilitiesTotal LiabilitiesTotal LiabilitiesTotal Liabilities 300,000300,000300,000300,000

Your current NetworthYour current NetworthYour current NetworthYour current Networth 14,964,28714,964,28714,964,28714,964,287


Key RatiosKey RatiosKey RatiosKey Ratios

1) Savings R1) Savings R1) Savings R1) Savings Ratioatioatioatio

Savings Ratio is the percentage of annual income that you are able to save.

Your Savings Ratio = Your Savings Ratio = Your Savings Ratio = Your Savings Ratio = 62.02%62.02%62.02%62.02%

The above savings ratio has been calculated after taking into account the recommended

reduction in your expenses. The average savings of an Indian household is around 30% of the

household income.

2) Debt Servic2) Debt Servic2) Debt Servic2) Debt Servicinginginging RatioRatioRatioRatio

Debt Servicing Ratio measures the extent of pressure your existing liabilities can put on your

finances. It is calculated as Debt Servicing Commitment ÷ Income.

Your Debt SerYour Debt SerYour Debt SerYour Debt Servicing Ratio = vicing Ratio = vicing Ratio = vicing Ratio = 3.58%3.58%3.58%3.58%

Debt servicing requirements should ideally not be more than 25% of your total income. If you

have an existing home loan, then debt servicing ratio should not be more than 40% of your

total income. Higher debt servicing ratio multiplies the overall risk during economic downturns

specifically if the interest rates increase.

3) Leverage Ratio3) Leverage Ratio3) Leverage Ratio3) Leverage Ratio

This is a measure of the role of debt in your asset build-up. It is calculated as Total Liabilities ÷

Total Assets.

Your Leverage Ratio = Your Leverage Ratio = Your Leverage Ratio = Your Leverage Ratio = 1.97%1.97%1.97%1.97%

Higher the leverage, more risky it is. Further, you need to ensure that a risky investment

position is not compounded with high leverage financing it.


4) Financial Assets Ratio4) Financial Assets Ratio4) Financial Assets Ratio4) Financial Assets Ratio

Your assets can broadly be categorised as financial assets (e.g. shares, debentures, bank

deposits, Public Provident Fund, mutual fund investments) and physical assets (e.g. gold, other

precious metals, diamonds and real estate). In many ways, financial assets are part of a more

transparent and better regulated market. Physical assets suffer risks of loss by fire, theft etc.

and also lack transparency in pricing and transactions. Therefore, you should maximise your

financial assets ratio viz. financial assets as a percentage of total assets.

Your Financial Assets Ratio = Your Financial Assets Ratio = Your Financial Assets Ratio = Your Financial Assets Ratio = 30.17%30.17%30.17%30.17%

Assets like self-occupied house, home contents & vehicles, which are meant for your regular

use, have not been included in total assets for the purpose of calculation of this ratio. You

should seek to increase this ratio over a period of time.

5) Liquidi5) Liquidi5) Liquidi5) Liquidity Ratioty Ratioty Ratioty Ratio

The role of liquid assets is to meet your near-term liquidity needs. It is normal to calculate the

liquidity needs, as the expenses you need to incur over the next 6 months (including loan

repayments). Liquidity Ratio is calculated as Liquid Assets ÷ Liquidity Needs.

Your Liquidity Ratio = Your Liquidity Ratio = Your Liquidity Ratio = Your Liquidity Ratio = 0.930.930.930.93

Liquid assets include all assets which can be liquidated immediatley like shares, open-ended

mutual funds, savings balance, fixed deposits, gold etf etc. This ratio should be more than 1.

The higher it is, the more is the comfort for you.

Your Risk ProfileYour Risk ProfileYour Risk ProfileYour Risk Profile

Based on your response to the risk analyzer questionnaire, your risk profile is:

Your Risk Profile:Your Risk Profile:Your Risk Profile:Your Risk Profile: MODERATEMODERATEMODERATEMODERATE


Insurance PlanningInsurance PlanningInsurance PlanningInsurance Planning

Life InsuranceLife InsuranceLife InsuranceLife Insurance ---- SelfSelfSelfSelf

Being adequately insured is essential to help your family/dependents lead an independent

lifestyle in the event something unfortunate was to happen to you. The following have to be

considered while evaluating your life insurance needs:

Family's Expenses:Family's Expenses:Family's Expenses:Family's Expenses: This is one of the most important factors when determining your life

insurance coverage. If you are the sole earning member of your family, it is crucial to have a

policy that can replace your income or take care of your family's expenses. It is important to

account for inflation.

Outstanding Debt:Outstanding Debt:Outstanding Debt:Outstanding Debt: All of your debts should be payable in full in case of your demise. Home

loans, car loans, credit card and other loans should be paid off in full.

Future Obligations:Future Obligations:Future Obligations:Future Obligations: Your child's future education requirements, spouse's needs etc have to be

considered when arriving at an adequate insurance cover. If your child plans to pursue an

MBA, he/she should be able to financially achieve the goal even in your absence.

Family's ExpensesFamily's ExpensesFamily's ExpensesFamily's Expenses Annual Amount (in Rs.)Annual Amount (in Rs.)Annual Amount (in Rs.)Annual Amount (in Rs.)

Regular Expenses till Lifetime (post deduction of 25%,

as Self's expenses) 551,250

Regular Expenses till limited term (Children schooling

expenses & life insurance premiums of Spouse) 250,000

Outstanding DebtOutstanding DebtOutstanding DebtOutstanding Debt Present Value (in Rs.)Present Value (in Rs.)Present Value (in Rs.)Present Value (in Rs.)

Home Loan 300,000

Future Obligations (Goals)Future Obligations (Goals)Future Obligations (Goals)Future Obligations (Goals) Present Value (in Rs.)Present Value (in Rs.)Present Value (in Rs.)Present Value (in Rs.)

X - Graduation 1,200,000

Y - Graduation 1,200,000

X - Post Graduation 1,500,000

Y - Post Graduation 1,500,000

X - Marriage 1,000,000

Y - Marriage 1,000,000


Annual Family IncomeAnnual Family IncomeAnnual Family IncomeAnnual Family Income

SourceSourceSourceSource Annual Amount (Rs.)Annual Amount (Rs.)Annual Amount (Rs.)Annual Amount (Rs.) Start YearStart YearStart YearStart Year End YearEnd YearEnd YearEnd Year

Rental Income 114,000 2016 2044

Cash flow scenario in case of an unfortunate eventCash flow scenario in case of an unfortunate eventCash flow scenario in case of an unfortunate eventCash flow scenario in case of an unfortunate event

In case of an unfortunate death of the primary income earner of the family, the family should

be sufficiently insured to manage the day-to-day expenses and to achieve the future goals. In

addition, the surviving family members will have to pay the outstanding liabilities.

The table below will tell you for how many years your family will be able to sustain the above

requirements with your existing net worth and insurance cover, in case of an immediate

unfortunate death.

YearYearYearYear Age of Age of Age of Age of

spousespousespousespouse

Family Family Family Family

IncomeIncomeIncomeIncome

Existing Existing Existing Existing

Insurance Cover Insurance Cover Insurance Cover Insurance Cover

& Saleable assets& Saleable assets& Saleable assets& Saleable assets

Family Family Family Family

ExpensesExpensesExpensesExpenses

Liabilities / Liabilities / Liabilities / Liabilities /

GoalsGoalsGoalsGoals

Networth Networth Networth Networth ----

Closing Closing Closing Closing

Balance Balance Balance Balance

Dec.'15Dec.'15Dec.'15Dec.'15 41 18,914,287 300,000 18,614,287

2016201620162016 42 114,000 801,250 - 19,002,660

2017201720172017 43 119,700 859,838 - 19,358,273

2018201820182018 44 125,685 1,165,126 - 19,417,962

2019201920192019 45 131,969 1,207,705 3,265,174 15,981,676

2020202020202020 46 138,568 722,576 - 16,321,528

2021202120212021 47 145,496 773,157 - 16,635,499

2022202220222022 48 152,771 827,278 - 16,918,652

2023202320232023 49 160,409 885,187 5,552,791 11,279,549

2024202420242024 50 168,430 947,150 - 11,130,878

2025202520252025 51 176,851 1,013,451 - 10,911,936

2026202620262026 52 185,694 1,084,392 - 10,614,032

2027202720272027 53 790,840 1,160,300 4,504,383 6,084,600

2028202820282028 54 204,728 1,241,521 - 5,350,676

2029202920292029 55 214,964 1,328,427 - 4,491,445

2030203020302030 56 225,712 1,421,417 - 3,493,485

2031203120312031 57 236,998 1,520,916 - 2,342,141

2032203220322032 58 248,848 1,627,380 - 1,021,425

2033203320332033 59 261,290 1,741,297 - -486,097


Note:Note:Note:Note: The maturity proceeds from HDFC SL Classic Assure Insurance policy of spouse have

been added into ‘Family Income’ in their respective years of receipt.

Action PlanAction PlanAction PlanAction Plan

As can be seen from the table above, your existing networth & insurance cover will be

sufficient to achieve your goals, repay your liabilities and also support your family's expenses

till spouse's age of 58 years. However, since you expect the life expectancy of spouse to be 70

years, it is crucial to have adequate insurance to take care of her expenses for the remaining 12

years.

AdditionalAdditionalAdditionalAdditional Insurance Cover Insurance Cover Insurance Cover Insurance Cover ---- SelfSelfSelfSelf

Ideal Insurance Cover (to cover your family's expenses till spouse's life

expectancy, liabilities & goals) 23,387,02323,387,02323,387,02323,387,023

Less: Less: Less: Less: Existing saleable assets (except assets to be utilized for family's use) 8,064,2878,064,2878,064,2878,064,287

Less:Less:Less:Less: Existing life insurance cover 10,850,00010,850,00010,850,00010,850,000

Additional insurance cover required 4,472,7364,472,7364,472,7364,472,736

Note:Note:Note:Note: Saleable assets include assets which can be sold by the family after the demise of self &

does not include value of self-occupied house, home contents, vehicles, physical gold & real

estate investments (if assumed to be rented out after the demise of self). It also includes the

present value of retirement benefits like PF, Gratuity, Encashment of Privileged Leave, etc. of

self.

Life InsuranceLife InsuranceLife InsuranceLife Insurance ---- SpouseSpouseSpouseSpouse

Additional Insurance CovAdditional Insurance CovAdditional Insurance CovAdditional Insurance Cover er er er ---- SpouseSpouseSpouseSpouse

We do not recommend any additional life insurance cover for spouse, as she does not earn

any income currently.


General InsuranceGeneral InsuranceGeneral InsuranceGeneral Insurance

Apart from protecting your life, there are certain other aspects like health and assets which you

need to protect. In this section, we will cover the other insurance covers which you need to

have for you & your family.

Personal Accident InsurancePersonal Accident InsurancePersonal Accident InsurancePersonal Accident Insurance

While covering risk of death through life insurance, there is one more risk which every

individual carries which is the risk of disability due to accidents. You have to protect the loss of

your income due to any disability, just as in case of a death, to ensure you and your family do

not suffer financially and have money to spend for regular expenses, to repay liabilities and to

achieve your child goals. It is advisable to take a Personal Accident Insurance, which will cover

the risk of disability and pay a part amount or full amount of the sum assured, depending on

the extent of disability.

The ideal amount to be covered should be the same as your life insurance requirement. You

can either take a rider of Personal accidental cover with any of your existing policies or else

you can take a standalone Personal Accidental Cover.

AdvisoAdvisoAdvisoAdvisor’s comments:r’s comments:r’s comments:r’s comments:

We recommend you to take a personal accident cover of Rs. 1.53 crore for self.

Medical InsuranceMedical InsuranceMedical InsuranceMedical Insurance –––– BasicBasicBasicBasic

Medical Insurance should be the next thing on your mind. You should always think about

medical insurance for you and your family. There may not be sufficient resources to take care

of your medical expense in case of any urgent medical treatment. Especially in today's world

where cost of medical treatment is soaring, these insurance proceeds will be very much helpful

in an emergency. If you are covered under a group medical insurance by your employer, you

need to check who all are covered in the plan & how much is the coverage.


In your case, you do not have a separate medical insurance cover. Hence, we recommend you

to take a family floater medical cover of Rs.5 lakh.


Medical InsuranceMedical InsuranceMedical InsuranceMedical Insurance –––– Top up Top up Top up Top up

Top up health insurance plans are a unique type of health cover policies that offer the insured

with an additional coverage, which goes beyond the maximum limit of the existing health

insurance policies. Such plans come handy when the threshold of the existing health cover is

already used or exhausted and there are some medical costs left to deal with, which would

otherwise exert pressure on the savings. The top up plans normally work on the basis of a

cost-sharing model, wherein the medical expenses up to the deductible limit have to be borne

by the insured. They are the most affordable means of extending the health cover, through a

perfect combination of a basic policy and an ideal medical top-up.

AdvisoAdvisoAdvisoAdvisor’s r’s r’s r’s comments:comments:comments:comments:

We recommend you to opt for a top up medical cover of Rs.15 lakh for your family. Also, we

recommend you to create a medical contingency fund of Rs.10 lakh (in today’s value), by the

time self retires.

Home InsuranceHome InsuranceHome InsuranceHome Insurance

It is prudent on your part to cover your physical assets. The vehicles you drive are covered

through motor insurance, and the same is also mandatory by law. While vehicles are movable

and the probability of damage / theft is higher, the same is much lower in case of a physical

asset like house. But the extent of damage might be much higher in a house.

Hence, it is essential to take a home insurance, which will cover any loss to structure and

contents due to both natural and man made calamities including fire, earthquake, explosion,

lightning, storms, floods, riots, strikes, landslide, missile testing operations, impact damage,

aircraft damage, bush fire, leakage from overhead tanks, etc.

The contents are also covered against the risk of burglary. Ideally, the structure of a house

needs to be covered for the re-construction cost. Reconstruction cost is defined as the cost

incurred to reconstruct the house if it is damaged. The ideal cover can be arrived at by

multiplying the built up square feet area and the construction rate per square feet.


We recommend you to get all your existing house properties insured. We also recommend you

to insure your home contents.


Cash FlowCash FlowCash FlowCash Flow (till retirement)(till retirement)(till retirement)(till retirement)

YearYearYearYear

Age Age Age Age

of of of of

SelfSelfSelfSelf

Age of Age of Age of Age of

SpouseSpouseSpouseSpouse

Total Total Total Total

Income Income Income Income

( A )( A )( A )( A )


Living Living Living Living

EEEExpenses xpenses xpenses xpenses

( B )( B )( B )( B )

EMI's + EMI's + EMI's + EMI's +


Life Life Life Life

Insurance Insurance Insurance Insurance

Premiums Premiums Premiums Premiums

( C )( C )( C )( C )


Invsts. Invsts. Invsts. Invsts.

( D )( D )( D )( D )

Recom. Recom. Recom. Recom.

Life Life Life Life


( E )( E )( E )( E )


Health / Health / Health / Health /

Accident Accident Accident Accident


( F )( F )( F )( F )


Home Home Home Home


( G )( G )( G )( G )

PPPPayouts ayouts ayouts ayouts

from from from from LIC LIC LIC LIC

Money Money Money Money

Back.Back.Back.Back. ( H )( H )( H )( H )

Maturity Maturity Maturity Maturity

proceeds proceeds proceeds proceeds

from from from from

exisexisexisexisting ting ting ting

Invsts. Invsts. Invsts. Invsts.

( I )( I )( I )( I )

Surplus Surplus Surplus Surplus

available for available for available for available for

further further further further

invsts. (Ainvsts. (Ainvsts. (Ainvsts. (A----

BBBB----CCCC----DDDD----EEEE----FFFF----

G+H+I)G+H+I)G+H+I)G+H+I)

Dec.'15Dec.'15Dec.'15Dec.'15 44 41 775,887 775,887

2016201620162016 45 42 2,778,000 935,000 238,639 37,000 13,000 50,800 5,100 - 320,000 1,818,461

2017201720172017 46 43 2,943,540 1,006,450 238,639 - 13,000 53,340 5,457 - 2,100,000 3,726,654

2018201820182018 47 44 3,118,955 1,325,502 226,025 - 13,000 56,007 5,839 - 220,000 1,712,583

2019201920192019 48 45 3,304,836 1,432,807 102,230 - 13,000 58,807 6,248 - 275,000 1,966,744

2020202020202020 49 46 3,501,806 963,435 60,817 - 13,000 61,748 6,685 30,000 - 2,426,121

2021202120212021 50 47 3,710,529 1,030,876 60,817 - 13,000 64,835 7,153 - - 2,533,848

2022202220222022 51 48 3,931,706 1,103,037 60,817 - 13,000 68,077 7,654 - - 2,679,121

2023202320232023 52 49 4,166,080 1,180,249 60,817 - 13,000 71,481 8,189 - - 2,832,344

2024202420242024 53 50 4,414,441 1,262,867 60,817 - 13,000 75,055 8,763 - - 2,993,940

2025202520252025 54 51 4,677,623 1,351,268 20,817 - 13,000 78,807 9,376 - 773,451 3,977,806

2026202620262026 55 52 4,956,512 1,445,856 20,817 - 13,000 82,748 10,032 - 10,454,638 13,838,697

Notes for CNotes for CNotes for CNotes for Cash Flowash Flowash Flowash Flow

• Total Income

� This includes income from self’s salary, which has been inflated at an average rate of 6% p.a.


� This also includes rental income, which has been inflated at an average rate of 5% p.a.

• Total Living Expenses

� This includes all your living expenses, which have been inflated by 7% p.a. and schooling expenses of your children.

� From 2018, additional amount of Rs. 100,000 p.a. (in today’s cost) has been added towards X’s & Y’s schooling expenses

respectively.

� From 2020, schooling expenses of X & Y has been reduced, as they move in their higher education.

� The schooling expenses of your children have been inflated at 10% p.a.

• EMIs + Existing Life Insurance premiums

� From 2020, EMI paid towards your existing home loan would stop, as the loan tenure gets completed.

� The life insurance premiums have been reduced after the payment term gets complete for the respective policies.

• Existing Investments

� This includes your existing investments being made into Chit Funds.

• Recommended Life Insurance

� From 2016 till retirement, premium has been provided for the recommended addl. life insurance cover (term insurance).

• Recommended Health / Accident Insurance

� From 2016, premium has been provided for recommended additional personal accident cover.

� From 2016, premium has been provided for recommended medical cover – basic & top up.


• Recommended Home Insurance

� From 2016, premium has been provided for insuring your existing house properties and home contents.

• Maturity proceeds from existing investments

YearYearYearYear ParticularsParticularsParticularsParticulars AAAAmount mount mount mount ((((in in in in Rs.)Rs.)Rs.)Rs.)

Dec.'15Dec.'15Dec.'15Dec.'15 Financial assets available currently which can be utilized towards goals 775,887

2016201620162016 Maturity proceeds from Chit Funds (Rs. 6,000 p.m. for 10 months) Rs. 60,000 & Chit Fund (Rs. 13,000 p.m. for 20

months) Rs. 260,000 320,000

2017201720172017 Future Value of ESOP's 2,100,000

2018201820182018 Maturity proceeds from LIC Money Back (Premium Rs. 12,614 p.a.) 220,000

2019201920192019 Maturity proceeds from LIC Money Back (Premium Rs. 15,816 p.a.) 275,000

2025202520252025 Maturity proceeds from LIC Money Back (Premium Rs. 20,000 p.a.) Rs. 280,000 & HDFC Young Star Rs. 493,451 773,451

2026202620262026 Self’s Retirement benefits: PF Rs. 8,851,324, Gratuity Rs. 1,445,003 & Encashment of Privileged Leave Rs. 158,311 10,454,638

Returns assumedReturns assumedReturns assumedReturns assumed: ULIPs – 6% p.a. & PF – 8.50% p.a.

• Surplus available for further investments

� This shows the surplus of your income (including payout & maturity proceeds of existing investments) every year over your

expenses, existing investments, recommended premiums, which is available for further investments.


GoalGoalGoalGoal PlanPlanPlanPlanningningningning

Classification of GoalsClassification of GoalsClassification of GoalsClassification of Goals

Your goals have been classified into 2 types – Critical and Discretionary – based on your

priorities & tenure of goals.

Critical Critical Critical Critical GoalsGoalsGoalsGoals

These are commitments that are largely non discretionary and where you do not want to take

any risk of non-fulfillment. These goals cannot be postponed and little or no deviation is

acceptable in the expected corpus. Therefore, allocation with a tight shortfall risk is done for

these goals.

Based on the tenure of each of these goals, the expected return of each asset class and risk

levels of each asset class, we suggest you a specific asset allocation every year for each of the

above goals till their occurrence.

Discretionary Discretionary Discretionary Discretionary GoalsGoalsGoalsGoals

These are lifestyle goals which are beyond the Critical and Important goals. These are

discretionary in nature and can be postponed or modified based on the performance of the

portfolio. Allocation with a median shortfall risk is done for these goals. This strategy is a

higher risk strategy, but also gives higher expected returns.

Based on the tenure of each of these goals, the expected return of each asset class and risk

levels of each asset class, we suggest you a specific asset allocation every year for each of the

above goals till their occurrence.

FutureFutureFutureFuture Value of Value of Value of Value of GoalsGoalsGoalsGoals

Based on your assumption of the present cost of your goals and considering the rise in the

cost of these goals, you will need more amount at the time of goal realization.

The table below gives you the amount you will need in future for your goals.


Goal NameGoal NameGoal NameGoal Name YearYearYearYear ofofofof

GoalGoalGoalGoal

Years to Years to Years to Years to

GoalGoalGoalGoal

Present Present Present Present

ValueValueValueValue

Future Future Future Future

ValueValueValueValue Type of GoalType of GoalType of GoalType of Goal

X - Graduation 2020 4 1,200,000 1,632,587

Critical

Y - Graduation 2020 4 1,200,000 1,632,587

Buying Plot 2021 5 2,500,000 3,190,704 Discretionary

X - Post Graduation 2024 8 1,500,000 2,776,395

Critical

Y - Post Graduation 2024 8 1,500,000 2,776,395

X - Marriage 2028 12 1,000,000 2,252,192

Y - Marriage 2028 12 1,000,000 2,252,192

Financial Assets available for immediate allocation for goals:Financial Assets available for immediate allocation for goals:Financial Assets available for immediate allocation for goals:Financial Assets available for immediate allocation for goals:

The below financial assets are currently available with you to utilize for your goals:

Financial Assets Financial Assets Financial Assets Financial Assets –––– TotalTotalTotalTotal (refer ‘Networth’ section for details)(refer ‘Networth’ section for details)(refer ‘Networth’ section for details)(refer ‘Networth’ section for details) 1,058,887

Less:Less:Less:Less: Chit Funds 283,000283,000283,000283,000

Financial Assets to be utilized for goalsFinancial Assets to be utilized for goalsFinancial Assets to be utilized for goalsFinancial Assets to be utilized for goals 775,887775,887775,887775,887


Recommended Investments fRecommended Investments fRecommended Investments fRecommended Investments for goalsor goalsor goalsor goals

Type of Type of Type of Type of

GoalGoalGoalGoal CriticalCriticalCriticalCritical DiscretionaryDiscretionaryDiscretionaryDiscretionary CriticalCriticalCriticalCritical

Goal Goal Goal Goal

NameNameNameName

XXXX ----

GraduationGraduationGraduationGraduation

YYYY ––––

GraduationGraduationGraduationGraduation Buying Buying Buying Buying PlotPlotPlotPlot

XXXX ---- Post Post Post Post


YYYY ---- Post Post Post Post


XXXX ----

MarriageMarriageMarriageMarriage

YYYY ----

MarriageMarriageMarriageMarriage

Years Years Years Years

to Goalto Goalto Goalto Goal 4444 4444 5555 8888 8888 12121212 12121212

Year of Year of Year of Year of

GoalGoalGoalGoal 2020202020202020 2020202020202020 2021202120212021 2024202420242024 2024202420242024 2028202820282028 2028202820282028

YearYearYearYear Existing Financial Assets to be utilized (in Rs.)Existing Financial Assets to be utilized (in Rs.)Existing Financial Assets to be utilized (in Rs.)Existing Financial Assets to be utilized (in Rs.)

Dec.'15Dec.'15Dec.'15Dec.'15 - - 775,887 - - - -

YearYearYearYear Recommended Investments to be done from surplus & inflow from existing invsts. (in Rs.)Recommended Investments to be done from surplus & inflow from existing invsts. (in Rs.)Recommended Investments to be done from surplus & inflow from existing invsts. (in Rs.)Recommended Investments to be done from surplus & inflow from existing invsts. (in Rs.)

2016201620162016 - - - - - - -

2017201720172017 661,000 661,000 - - - - -

2018201820182018 856,000 856,000 - - - - -

2019201920192019 - - 1,770,000 - - - -

2020202020202020 - - - - - - -

2021202120212021 - - - 1,234,000 1,234,000 - -

2022202220222022 - - - 1,340,000 1,340,000 - -

2023202320232023 - - - - - - -

2024202420242024 - - - - - - -

2025202520252025 - - - - - - -

2026202620262026 - - - - - 2,143,000 2,143,000


Retirement PlanningRetirement PlanningRetirement PlanningRetirement Planning

The tables below brief your requirement for your life after retirement.

PostPostPostPost----retirement Liferetirement Liferetirement Liferetirement Life

ParticularsParticularsParticularsParticulars SelfSelfSelfSelf SpouseSpouseSpouseSpouse

Planned Retirement Age 55-58 -

Recommended Retirement AgeRecommended Retirement AgeRecommended Retirement AgeRecommended Retirement Age 55555555 ----

Life Expectancy (Age) 70 70

Expenses postExpenses postExpenses postExpenses post----retirementretirementretirementretirement

Lifetime Expenses postLifetime Expenses postLifetime Expenses postLifetime Expenses post----retirementretirementretirementretirement

Expenses TypeExpenses TypeExpenses TypeExpenses Type Annual Amount (in Annual Amount (in Annual Amount (in Annual Amount (in

Rs.) in today's valueRs.) in today's valueRs.) in today's valueRs.) in today's value

Household 500,000

Entertainment 20,000

Medical 120,000

Vehicle Maintenance 60,000

Holiday 100,000

Car Insurance Premium 15,000

Others 100,000

Home Insurance Premiums - Recommended 5,100

Medical Insurance Premiums - Recommended 26,800

Total Expenses (Present Value)Total Expenses (Present Value)Total Expenses (Present Value)Total Expenses (Present Value) 946,900946,900946,900946,900

Total Expenses (Future Value)Total Expenses (Future Value)Total Expenses (Future Value)Total Expenses (Future Value) 1,993,0841,993,0841,993,0841,993,084

% of Expenses required for spouse after self's lifetime% of Expenses required for spouse after self's lifetime% of Expenses required for spouse after self's lifetime% of Expenses required for spouse after self's lifetime 60%60%60%60%

Note:Note:Note:Note: Apart from the above expenses, life insurance premiums of self continuing post self’s

retirement have been considered till their respective years of payment.

RecommendationRecommendationRecommendationRecommendation – We recommend you to create a medical contingency fund of Rs. 10 lakh (in

today’s value), by the time self retires.


OneOneOneOne----Time ExpensesTime ExpensesTime ExpensesTime Expenses postpostpostpost----retirementretirementretirementretirement

Expenses TypeExpenses TypeExpenses TypeExpenses Type Present Value Present Value Present Value Present Value

(in Rs.)(in Rs.)(in Rs.)(in Rs.)

Future Value Future Value Future Value Future Value


Required at Required at Required at Required at

ageageageage

Medical Contingency Fund 1,000,000 2,104,852 55 of Self

Annual Income planned postAnnual Income planned postAnnual Income planned postAnnual Income planned post----retirementretirementretirementretirement

Income TypeIncome TypeIncome TypeIncome Type Value at Retirement / Value at Retirement / Value at Retirement / Value at Retirement /

Start Year (in Rs.)Start Year (in Rs.)Start Year (in Rs.)Start Year (in Rs.)

RetiRetiRetiRetirement Year rement Year rement Year rement Year

/ Start Year/ Start Year/ Start Year/ Start Year

Inflation (%) Inflation (%) Inflation (%) Inflation (%)

post thatpost thatpost thatpost that End YearEnd YearEnd YearEnd Year

Rental Income – PV

Rs. 1.44 lakh p.a. 194,979 2027 5% 2044

Recommended Investments Recommended Investments Recommended Investments Recommended Investments ---- RetirementRetirementRetirementRetirement

The table below provides the recommended amount to be invested every year from your pre-

retirement income, your retirement benefits, inflow from existing investments & post-

retirement income to fund your post-retirement expenses.

YearYearYearYear Existing Financial Assets to be utilized (in Rs.)Existing Financial Assets to be utilized (in Rs.)Existing Financial Assets to be utilized (in Rs.)Existing Financial Assets to be utilized (in Rs.)

Dec.’Dec.’Dec.’Dec.’15151515 ----

YearYearYearYear Recommended Investments to be done from Recommended Investments to be done from Recommended Investments to be done from Recommended Investments to be done from

income & inincome & inincome & inincome & inflow from existing invsts. (in Rs.)flow from existing invsts. (in Rs.)flow from existing invsts. (in Rs.)flow from existing invsts. (in Rs.)

2016201620162016 1,819,000

2017201720172017 2,404,000

2018201820182018 -

2019201920192019 197,000

2020202020202020 2,425,000

2021202120212021 65,000

2022202220222022 -

2023202320232023 2,833,000

2024202420242024 2,994,000

2025202520252025 3,977,000

2026202620262026 4,537,000


PostPostPostPost----retirement CashFlowretirement CashFlowretirement CashFlowretirement CashFlow

YearYearYearYear Age of Age of Age of Age of

selfselfselfself

Age of Age of Age of Age of

spousespousespousespouse

AnnualAnnualAnnualAnnual

expenses expenses expenses expenses

( A )( A )( A )( A )

OneOneOneOne----time time time time

expense expense expense expense

( B )( B )( B )( B )

Planned Planned Planned Planned

Annual Annual Annual Annual

Regular Regular Regular Regular

Income Income Income Income

( C )( C )( C )( C )

OneOneOneOne----time time time time

income income income income

( ( ( ( DDDD ))))

Deficit Deficit Deficit Deficit

(C+D(C+D(C+D(C+D----AAAA----BBBB))))

Outflow Outflow Outflow Outflow

towards towards towards towards

goals goals goals goals

occurring occurring occurring occurring

postpostpostpost----

retirement retirement retirement retirement

from corpusfrom corpusfrom corpusfrom corpus

Corpus to be Corpus to be Corpus to be Corpus to be

utilized for utilized for utilized for utilized for

retirement (incl. retirement (incl. retirement (incl. retirement (incl.

ggggoals occurring oals occurring oals occurring oals occurring

postpostpostpost----retirement)retirement)retirement)retirement)

31,865,59431,865,59431,865,59431,865,594

2027202720272027 56 53 2,013,901 2,104,852 194,979 595,861 -3,327,913 - 30,298,387

2028202820282028 57 54 2,153,417 - 204,728 - -1,948,690 4,504,383 26,042,358

2029202920292029 58 55 2,302,699 - 214,964 - -2,087,735 - 25,988,387

2030203020302030 59 56 2,462,431 - 225,712 - -2,236,719 - 25,835,864

2031203120312031 60 57 2,633,344 - 236,998 - -2,396,346 - 25,538,168

2032203220322032 61 58 2,795,404 - 248,848 - -2,546,556 - 25,095,350

2033203320332033 62 59 2,991,082 - 261,290 - -2,729,792 - 24,464,914

2034203420342034 63 60 3,200,458 - 274,355 - -2,926,103 - 23,621,691

2035203520352035 64 61 3,424,490 - 288,072 - -3,136,418 - 22,517,297

2036203620362036 65 62 3,664,204 - 302,476 - -3,361,728 - 21,123,585

2037203720372037 66 63 3,920,699 - 317,600 - -3,603,099 - 19,389,958

2038203820382038 67 64 4,195,147 - 333,480 - -3,861,668 - 17,251,273

2039203920392039 68 65 4,488,808 - 350,154 - -4,138,654 - 14,652,479

2040204020402040 69 66 4,803,024 - 367,661 - -4,435,363 - 11,533,277

2041204120412041 70 67 5,139,236 - 386,044 - -4,753,192 - 7,819,376

2042204220422042 - 68 3,299,389 - 405,347 - -2,894,043 - 5,637,211

2043204320432043 - 69 3,530,347 - 425,614 - -3,104,733 - 3,046,174

2044204420442044 - 70 3,777,471 - 446,895 - -3,330,576 - -

Note:Note:Note:Note: Annual/one-time post-retirement income has to be utilized to fund the expenses in the respective years of income. Deficit has to be

funded through the corpus built.


Details of OneDetails of OneDetails of OneDetails of One----time expense & time expense & time expense & time expense & IncomeIncomeIncomeIncome

YearYearYearYear ParticularsParticularsParticularsParticulars OneOneOneOne----time expensetime expensetime expensetime expense OneOneOneOne----time incometime incometime incometime income

2027202720272027 Maturity proceeds from HDFC SL Classic Assure Insurance (Spouse)(Spouse)(Spouse)(Spouse) (One(One(One(One----time income)time income)time income)time income); ; ; ; Future

Value of Medical Contingency Fund (One(One(One(One----time expensetime expensetime expensetime expense)))) 2,104,852 595,861

Returns Returns Returns Returns AAAAssumedssumedssumedssumed: Endowment policies – 4.50% p.a.


Summary of Recommended Summary of Recommended Summary of Recommended Summary of Recommended

InvestmentsInvestmentsInvestmentsInvestments

YearYearYearYear Existing financial assets Existing financial assets Existing financial assets Existing financial assets to be utilized to be utilized to be utilized to be utilized for for for for

goals & retirementgoals & retirementgoals & retirementgoals & retirement (in Rs.)(in Rs.)(in Rs.)(in Rs.)

Surplus left over (in Rs.)Surplus left over (in Rs.)Surplus left over (in Rs.)Surplus left over (in Rs.) Dec.'15Dec.'15Dec.'15Dec.'15 775,887

YearYearYearYear RecommendedRecommendedRecommendedRecommended investments froinvestments froinvestments froinvestments from future m future m future m future

surplussurplussurplussurplus for goals & retirement for goals & retirement for goals & retirement for goals & retirement (in Rs.)(in Rs.)(in Rs.)(in Rs.)

2016201620162016 1,819,000 -

2017201720172017 3,726,000 -

2018201820182018 1,712,000 -

2019201920192019 1,967,000 -

2020202020202020 2,425,000 -

2021202120212021 2,533,000 -

2022202220222022 2,680,000 -

2023202320232023 2,833,000 -

2024202420242024 2,994,000 -

2025202520252025 3,977,000 -

2026202620262026 8,823,000 5,015,000

Note:Note:Note:Note: Assuming the left over surplus also gets invested, you will be able to create an additional

wealth of Rs. 21,336,958Rs. 21,336,958Rs. 21,336,958Rs. 21,336,958 at the end of spouse’s expected lifetime over and above the

requirement for goals & retirement, and the same can be passed on as an estate.


Asset AllocationAsset AllocationAsset AllocationAsset Allocation

Current Asset Allocation vsCurrent Asset Allocation vsCurrent Asset Allocation vsCurrent Asset Allocation vs.... Recommended Asset AllocationRecommended Asset AllocationRecommended Asset AllocationRecommended Asset Allocation

One of the most important stages in analyzing your investments is to understand your asset

allocation. Asset allocation represents the mix of stocks, bonds and cash that you own. It is

important to have a right asset mix based on the tenure and criticality of all your goals.

Your Current Your Current Your Current Your Current Asset AllocationAsset AllocationAsset AllocationAsset Allocation ****

Current Asset AllocationCurrent Asset AllocationCurrent Asset AllocationCurrent Asset Allocation - Financial Assets available for immediate

allocation for goals

48.45%

51.55%

Equity

Fixed Income

* excluding life insurance policies, PPF & retirement benefits

Based on all your goals, Based on all your goals, Based on all your goals, Based on all your goals, our recommended asset aour recommended asset aour recommended asset aour recommended asset allocationllocationllocationllocation for this year for this year for this year for this year

Recommended Asset AllocationRecommended Asset AllocationRecommended Asset AllocationRecommended Asset Allocation - Financial Assets available for

immediate allocation for goals

60.00%

40.00%

Equity

Fixed Income


Based on all your goals, Based on all your goals, Based on all your goals, Based on all your goals, ourourourour yearyearyearyear----wisewisewisewise recommended asset allocationrecommended asset allocationrecommended asset allocationrecommended asset allocation for next 5 years isfor next 5 years isfor next 5 years isfor next 5 years is::::

YearYearYearYear No. of No. of No. of No. of

yearsyearsyearsyears

Recommended Allocation (in %)Recommended Allocation (in %)Recommended Allocation (in %)Recommended Allocation (in %) Expected Expected Expected Expected Value Value Value Value

of total assets of total assets of total assets of total assets

(in Rs.)(in Rs.)(in Rs.)(in Rs.) EquityEquityEquityEquity

Fixed Fixed Fixed Fixed

IncomeIncomeIncomeIncome GoldGoldGoldGold

Dec.'15Dec.'15Dec.'15Dec.'15 60.00% 40.00% - 775,887775,887775,887775,887

2016201620162016 1111 73.59% 26.41% - 2,676,8362,676,8362,676,8362,676,836

2017201720172017 2222 61.46% 38.54% - 6,654,4716,654,4716,654,4716,654,471

2018201820182018 3333 49.98% 50.02% - 8,924,6488,924,6488,924,6488,924,648

2019201920192019 4444 61.90% 38.10% - 8,320,8008,320,8008,320,8008,320,800

2020202020202020 5555 73.03% 26.97% - 8,293,4858,293,4858,293,4858,293,485

Note:Note:Note:Note:

� Expected value of total assets is as at the end of eExpected value of total assets is as at the end of eExpected value of total assets is as at the end of eExpected value of total assets is as at the end of every year, as reduced by the outflow very year, as reduced by the outflow very year, as reduced by the outflow very year, as reduced by the outflow

towards goals towards goals towards goals towards goals & post& post& post& post----retirement expenses retirement expenses retirement expenses retirement expenses in the respective yearin the respective yearin the respective yearin the respective year,,,, from the accumulation from the accumulation from the accumulation from the accumulation

from recommended investments. from recommended investments. from recommended investments. from recommended investments. This also includes the accumulation from the This also includes the accumulation from the This also includes the accumulation from the This also includes the accumulation from the left over left over left over left over

surplus, isurplus, isurplus, isurplus, if any, assuming the same also getsf any, assuming the same also getsf any, assuming the same also getsf any, assuming the same also gets ininininvested.vested.vested.vested.

� The above yearThe above yearThe above yearThe above year----wise asset allocation is based only on the current outlook on the asset wise asset allocation is based only on the current outlook on the asset wise asset allocation is based only on the current outlook on the asset wise asset allocation is based only on the current outlook on the asset

classes. The plan has to be reviewed every year to know the changes required in your classes. The plan has to be reviewed every year to know the changes required in your classes. The plan has to be reviewed every year to know the changes required in your classes. The plan has to be reviewed every year to know the changes required in your

asset allocation every year.asset allocation every year.asset allocation every year.asset allocation every year.

Returns (preReturns (preReturns (preReturns (pre----tax) assumed on different assettax) assumed on different assettax) assumed on different assettax) assumed on different asset classes:classes:classes:classes: Equity – 13% p.a.; Debt – 8.50% p.a.;

Liquid – 7% p.a. and Gold – 7.50% p.a. In the plan, these returns are considered post-tax and

after adjusting for the risk, as measured by standard deviation of each of these asset classes.


Action Plan (YAction Plan (YAction Plan (YAction Plan (Your copy)our copy)our copy)our copy)

1) Re1) Re1) Re1) Re----structuring of structuring of structuring of structuring of existing financial assets existing financial assets existing financial assets existing financial assets for future goalsfor future goalsfor future goalsfor future goals

Asset TypeAsset TypeAsset TypeAsset Type

Current Asset AllocationCurrent Asset AllocationCurrent Asset AllocationCurrent Asset Allocation RecommendedRecommendedRecommendedRecommended Asset Asset Asset Asset

AllocationAllocationAllocationAllocation

Recommended Action to meet Recommended Action to meet Recommended Action to meet Recommended Action to meet

Recommended Asset AllocationRecommended Asset AllocationRecommended Asset AllocationRecommended Asset Allocation

Amount Amount Amount Amount

(Rs.) (Rs.) (Rs.) (Rs.) held held held held

with with with with

Self ‘s Self ‘s Self ‘s Self ‘s

ICICIdirectICICIdirectICICIdirectICICIdirect


(Rs.) (Rs.) (Rs.) (Rs.) hhhheld eld eld eld

outside outside outside outside

Self’s Self’s Self’s Self’s




(Rs.)(Rs.)(Rs.)(Rs.)

Percentage Percentage Percentage Percentage

(%)(%)(%)(%)




(%)(%)(%)(%)

Equity 335,887 40,000 375,887375,887375,887375,887 48.45%48.45%48.45%48.45% 465,532 60.00%60.00%60.00%60.00% Beyond Corridor Limits, Add and Rebalance from other

Assets where you are over-exposed.

Fixed Income 40,193 359,807 400,000400,000400,000400,000 51.55%51.55%51.55%51.55% 310,355 40.00%40.00%40.00%40.00% Beyond Corridor Limits, Sell and Rebalance to other

Assets where you are under-exposed.

TotalTotalTotalTotal 376,080376,080376,080376,080 399,807399,807399,807399,807 775,887775,887775,887775,887 775,887775,887775,887775,887

Advisor’s Comment:Advisor’s Comment:Advisor’s Comment:Advisor’s Comment:

� Re-balance as per recommendation.


2) Savings Target for ne2) Savings Target for ne2) Savings Target for ne2) Savings Target for next 1 year for goalsxt 1 year for goalsxt 1 year for goalsxt 1 year for goals

ParticularsParticularsParticularsParticulars Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)

Savings Target for next 1 year 1,819,0001,819,0001,819,0001,819,000

Advisor’s Comments:Advisor’s Comments:Advisor’s Comments:Advisor’s Comments:

� As per your financial plan, you should target to save Rs. 1,819Rs. 1,819Rs. 1,819Rs. 1,819,000,000,000,000 in next 1 year and allocate in a way that your Asset Allocation after a year

is in line with the target asset allocation. For eg., if your target asset allocation after a year has more allocation to equity compared to current

recommended asset allocation, then you will have to allocate more savings towards equity.

� Please refer to the Product Recommendations for the recommended funds in each of the asset classes.

3333)))) Target Asset Allocation by Target Asset Allocation by Target Asset Allocation by Target Asset Allocation by DecemberDecemberDecemberDecember, , , , 2016201620162016 –––– To be targeted over next 1 year, after shifting from current asset allocation to recommended To be targeted over next 1 year, after shifting from current asset allocation to recommended To be targeted over next 1 year, after shifting from current asset allocation to recommended To be targeted over next 1 year, after shifting from current asset allocation to recommended

asset allocation immediasset allocation immediasset allocation immediasset allocation immediately as per point no.1ately as per point no.1ately as per point no.1ately as per point no.1

Asset TypeAsset TypeAsset TypeAsset Type Current Asset Current Asset Current Asset Current Asset


Recommended Recommended Recommended Recommended

Asset AllocationAsset AllocationAsset AllocationAsset Allocation ----

ImmediateImmediateImmediateImmediate

TTTTarget Asset arget Asset arget Asset arget Asset

Allocation by Allocation by Allocation by Allocation by

DecemberDecemberDecemberDecember, 2016, 2016, 2016, 2016

Equity 48.45% 60.00% 73.59%

Fixed Income 51.55% 40.00% 26.41%

TotalTotalTotalTotal 775,887775,887775,887775,887 775,887775,887775,887775,887 2,676,8362,676,8362,676,8362,676,836


Advisor’s Advisor’s Advisor’s Advisor’s Comment:Comment:Comment:Comment: This section gives you the target allocation that you have to keep in mind while investing during this year so

that you are as close to this allocation by the end of 1 year from the date of the plan.

Rs.Rs.Rs.Rs. 2,672,672,672,676666,8,8,8,836363636 comprises accumulation of existing financial assets (which can be liquidated immediately for future goals) after a

year, including the savings made during the next 1 year.

Other Recommendations & Comments:Other Recommendations & Comments:Other Recommendations & Comments:Other Recommendations & Comments:

As per your financial plan, the following points have to be acted upon immediately.

• Insure self’s life for an additional amount of Rs.44.72 lakh, through a term insurance.

• Take a personal accident insurance cover for self for an amount of Rs.1.53 crore.

• Take a family floater basic medical insurance cover for your family for Rs.5 lakh.

• Take a family floater top up medical insurance cover for your family for Rs.15 lakh.

• Insure your existing house properties and home contents through home insurance.

• Make nomination in all your existing investments / Draft a WILL to pass on your estate to the desired beneficiaries.

• Review your financial plan after a year from now.

Refer following pages for the product recommendations.


PPPProduct Recommendationsroduct Recommendationsroduct Recommendationsroduct Recommendations

Recommended Products for reRecommended Products for reRecommended Products for reRecommended Products for re----structuring of existing financial assets for goalsstructuring of existing financial assets for goalsstructuring of existing financial assets for goalsstructuring of existing financial assets for goals::::

Based on the recommended asset allocation in point no.1 in Action Plan, we suggest you to re-structure your existing asset allocation as below:

Exit FromExit FromExit FromExit From Invest IntoInvest IntoInvest IntoInvest Into

AssetAssetAssetAsset Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)Amount (in Rs.) AssetAssetAssetAsset Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)

EquityEquityEquityEquity EquityEquityEquityEquity 89,645

Fixed IncomeFixed IncomeFixed IncomeFixed Income:::: Fixed IncFixed IncFixed IncFixed Incomeomeomeome::::

Savings Bank Balance 400,000 MF Debt - Mid to Long Term 310,355

TotalTotalTotalTotal 400,000400,000400,000400,000 TotalTotalTotalTotal 400,000400,000400,000400,000


Recommended Recommended Recommended Recommended ProductsProductsProductsProducts BUY):

Product Product Product Product / Fund / Fund / Fund / Fund NameNameNameName Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)Amount (in Rs.) TypeTypeTypeType RationaleRationaleRationaleRationale

Fund A 44,645

Equity

�

Fund B 45,000 �

Fund C 77,000

Fixed Income

(>=4 years)

�

Fund D 77,000 �

Fund E 78,000 �

Fund F 78,355 �

TotalTotalTotalTotal 400,000400,000400,000400,000

Note:Note:Note:Note: For long-term debt investments, you can also consider investing into tax-free bonds, if there is any issue available with a credit rating of

AA or above. If you invest into the same, you have to ensure that you re-invest the interest payouts into MF Debt.


Recommended Products for Savings to be made in next 1 yearRecommended Products for Savings to be made in next 1 yearRecommended Products for Savings to be made in next 1 yearRecommended Products for Savings to be made in next 1 year::::

ParticularsParticularsParticularsParticulars Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)Amount (in Rs.) Amount p.m. Amount p.m. Amount p.m. Amount p.m.


BreakBreakBreakBreak----up up up up of Monthlyof Monthlyof Monthlyof Monthly Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)

EquityEquityEquityEquity Fixed IncomeFixed IncomeFixed IncomeFixed Income GoGoGoGoldldldld

Savings Target for next 1 year 1,819,0001,819,0001,819,0001,819,000 151,500151,500151,500151,500 121,000 30,500 -

Recommended ProductsRecommended ProductsRecommended ProductsRecommended Products B

Product / Fund NameProduct / Fund NameProduct / Fund NameProduct / Fund Name Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)Amount (in Rs.) TypeTypeTypeType RationaleRationaleRationaleRationale

Fund A 24,000

Equity

�

Fund B 24,000 �

Fund G 24,500 �

Fund H 24,500 �

Fund I 24,000 �


Product / Fund Product / Fund Product / Fund Product / Fund NameNameNameName Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)Amount (in Rs.) TypeTypeTypeType RationaleRationaleRationaleRationale

Fund D 10,000

Fixed

Income

(>=4 years)

�

Fund E 10,000 �

Fund F 10,500 �

TotalTotalTotalTotal 151,500 151,500 151,500 151,500 p.m.p.m.p.m.p.m.

):

Note:Note:Note:Note: For long-term debt investments, you can also consider investing into tax-free bonds, if there is any issue available with a credit rating of

AA or above. If you invest into the same, you have to ensure that you re-invest the interest payouts into MF Debt.

Note:Note:Note:Note:

A. Debt Debt Debt Debt Investments:Investments:Investments:Investments: We recommend that you invest in the growth option for debt funds. This ensures that you pay taxes only on capital

gains, which are lower as compared to tax paid on distributed income (for short term holdings). It also ensures lower effective tax rates

due to indexation benefit for investments held for over 3 years. We also recommend an accrual strategy for your debt investments to

provide stability in income with lower interest rate risk.

B. Equity Investments:Equity Investments:Equity Investments:Equity Investments: We recommend that you choose growth funds for equity mutual funds investments. This would ensure that the

funds continue to be invested till they are required for any goal. For your direct equity investments, we recommend that you hold a

diversified portfolio with a strict upper limit on single stock (upto 10-15%), sector (upto 20-25%) and small/mid cap stocks (upto 5-10%).


Action PlAction PlAction PlAction Plan (RM copy)an (RM copy)an (RM copy)an (RM copy)

1) Re1) Re1) Re1) Re----structuring of existing financial assets for future goalsstructuring of existing financial assets for future goalsstructuring of existing financial assets for future goalsstructuring of existing financial assets for future goals

Asset TypeAsset TypeAsset TypeAsset Type

Current Asset AllocationCurrent Asset AllocationCurrent Asset AllocationCurrent Asset Allocation RecommendedRecommendedRecommendedRecommended Asset Asset Asset Asset


Recommended Action to meet Recommended Action to meet Recommended Action to meet Recommended Action to meet

Recommended Asset AllocationRecommended Asset AllocationRecommended Asset AllocationRecommended Asset Allocation


(Rs.) (Rs.) (Rs.) (Rs.) held held held held

with with with with

Self ‘s Self ‘s Self ‘s Self ‘s



(Rs.(Rs.(Rs.(Rs.) ) ) ) held held held held

outside outside outside outside

Self’s Self’s Self’s Self’s






(%)(%)(%)(%)




(%)(%)(%)(%)

Equity 335,887 40,000 375,887375,887375,887375,887 48.45%48.45%48.45%48.45% 465,532 60.00%60.00%60.00%60.00% Beyond Corridor Limits, Add and Rebalance from other

Assets where you are over-exposed.

Fixed Income 40,193 359,807 400,000400,000400,000400,000 51.55%51.55%51.55%51.55% 310,355 40.00%40.00%40.00%40.00% Beyond Corridor Limits, Sell and Rebalance to other

Assets where you are under-exposed.

TotalTotalTotalTotal 376,080376,080376,080376,080 399,807399,807399,807399,807 775,887775,887775,887775,887 775,887775,887775,887775,887

Advisor’s Comment:Advisor’s Comment:Advisor’s Comment:Advisor’s Comment:

� Re-balance as per recommendation.


2) Savings Target for2) Savings Target for2) Savings Target for2) Savings Target for next 1 year for goals next 1 year for goals next 1 year for goals next 1 year for goals

ParticularsParticularsParticularsParticulars Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)Amount (in Rs.)

Savings Target for next 1 year 1,819,0001,819,0001,819,0001,819,000

Advisor’s Comments:Advisor’s Comments:Advisor’s Comments:Advisor’s Comments:

� As per your financial plan, you should target to save Rs. 1,819Rs. 1,819Rs. 1,819Rs. 1,819,000,000,000,000 in next 1 year and allocate in a way that your Asset Allocation after a year

is in line with the target asset allocation. For eg., if your target asset allocation after a year has more allocation to equity compared to current

recommended asset allocation, then you will have to allocate more savings towards equity.

� Please refer to the Product Recommendations for the recommended funds in each of the asset classes.

3) Target Asset Allocation by December, 2016 3) Target Asset Allocation by December, 2016 3) Target Asset Allocation by December, 2016 3) Target Asset Allocation by December, 2016 –––– To be targeted over next 1 year, after shifting from current asset allocation to recommended To be targeted over next 1 year, after shifting from current asset allocation to recommended To be targeted over next 1 year, after shifting from current asset allocation to recommended To be targeted over next 1 year, after shifting from current asset allocation to recommended

asset allocation immasset allocation immasset allocation immasset allocation immediately as per point no.1ediately as per point no.1ediately as per point no.1ediately as per point no.1

Asset TypeAsset TypeAsset TypeAsset Type Current Asset Current Asset Current Asset Current Asset


Recommended Recommended Recommended Recommended

Asset AllocationAsset AllocationAsset AllocationAsset Allocation ----

ImmediateImmediateImmediateImmediate

TTTTarget Asset arget Asset arget Asset arget Asset

Allocation by Allocation by Allocation by Allocation by

December, 2016December, 2016December, 2016December, 2016

Equity 48.45% 60.00% 73.59%

Fixed Income 51.55% 40.00% 26.41%

TotalTotalTotalTotal 775,887775,887775,887775,887 775,887775,887775,887775,887 2,676,8362,676,8362,676,8362,676,836


AdvisorAdvisorAdvisorAdvisor’s Comment:’s Comment:’s Comment:’s Comment: This section gives you the target allocation that you have to keep in mind while investing during this year so

that you are as close to this allocation by the end of 1 year from the date of the plan.

Rs.Rs.Rs.Rs. 2,672,672,672,676666,8,8,8,836363636 comprises accumulation of existing financial assets (which can be liquidated immediately for future goals) after a

year, including the savings made during the next 1 year.

Other Recommendations & Comments:Other Recommendations & Comments:Other Recommendations & Comments:Other Recommendations & Comments:

As per your financial plan, the following points have to be acted upon immediately.

• Insure self’s life for an additional amount of Rs.44.72 lakh, through a term insurance.

• Take a personal accident insurance cover for self for an amount of Rs.1.53 crore.

• Take a family floater basic medical insurance cover for your family for Rs.5 lakh.

• Take a family floater top up medical insurance cover for your family for Rs.15 lakh.

• Insure your existing house properties and home contents through home insurance.

• Make nomination in all your existing investments / Draft a WILL to pass on your estate to the desired beneficiaries.

• Review your financial plan after a year from now.


Disclosures and DisclaimerDisclosures and DisclaimerDisclosures and DisclaimerDisclosures and Disclaimer

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The Mutual Fund Schemes recommended above are based on last issued ICICI Securities’

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reference to the words “Research Report” herein would imply Mutual Fund Research Reports

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Clients make their own investment decisions, based on their own investment objectives,

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It is confirmed that Research Analysts or any of their family members do not serve as an

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You acknowledge that the Risk Profile Report and financial plan suggested to you is based on

the information provided by you to I-Sec and on certain assumptions as stated in the Report.

The suggested financial plan to achieve your financial goals may not be accurate or yield

expected results if the information provided by you is incorrect or any of the assumptions

made are rendered invalid due to uncontrollable external forces like change in interest rates,

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You acknowledge that you will exercise your own independent judgment and discretion in

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can differ and may require you to make adjustments in the asset allocation strategy as well as

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assumptions regularly. You agree to generally comply with the instructions and materials


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