Private & Confidential

Personal Financial Plan

Prepared for:

Vishal Rana
Prepared by:

Harsh Roongta
CEO

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15th April 2013 Dear Mr. Vishal, We would like to thank you for choosing our financial planning services. The enclosed plan formalizes our recent discussions on the investment of your available capital, allocation of surplus cash flows and reallocation of some of your existing portfolio. Our objective is to accurately assess your financial needs and to provide quality recommendations and ongoing services in accordance with those needs. The plan is based on the information provided by you on your current circumstances and objectives. Please read the plan carefully to check for accuracy of the information provided. This plan is an important document, in accordance with the best standards of the profession. However, it needs to be regularly reviewed and updated in response to changes in your own circumstances and other factors, such as pension regulation, taxation and market movements. Please feel free to contact us if you have any queries. We look forward to reviewing and implementing these recommendations with you.

Yours sincerely,

Pankaaj Maalde, CFPCM HeadFinancial Planning

Harsh Roongta C.E.O.

Email: fp@apnapaisa.com Ph.: 022-6613 1999

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Executive Summary
The main body of this report has your personal details and your life objectives and strategies to meet your objectives.
Name Relationship Age Health Status

Vishal Punam Shagun Vansh

Self Wife Daughter Son

31 33 4 0

Good Good Good Good

Goals and Objectives:

Retirement Planning: You would like to provide a corpus for your retirement at the age of 60 years. You would like to maintain the same standard of living, which you are living at present.

Children's Education Planning: You would like to provide for the higher education expenses for Shagun and Vansh when they reach the age of 18 years.

Marriage Planning for Shagun: You would like to provide for Shaguns marriage when she reaches the age of 24 years.

Home Purchase: You would like to construct a house after 10 years, which will cost you Rs. 20 lakhs today.

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Income-Expense Statement
As per the information provided by you, the following are the cash inflow and outflow for the current year:

Current Cashflow
17%

Household Expenses

Recommended Cashflow
Household Expenses

Children's Education

42% 43%
25% 4% 54%
Insurance Premium

Children's Education Loan EMI's

Actual Investments

12%

3%

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Net Worth Statement

Assets

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Asset Allocation

Current Asset Allocation

3% 1%

Cash & Equivalents Debt & Equivalents

Recommended Asset Allocation

5%
Cash & Equivalents

41% 48%

Equity & Equivalents Real Estate Gold & Other Metals

25% 70%

Debt & Equivalents

Equity & Equivalents

7%

Equity and debt, both, have an important role to play in your asset allocation. Equity can provide superior inflation adjusted returns over the long term and debt to protect your capital while growing. Personal Vehicle and Jewelry are not treated as your investment assets. Recommended allocation is for future investment. Gold Investment works as a hedge against inflation and provides safety in bad economic and political conditions. Real estate investment provides you a fixed income, potential for capital appreciation and also helps in diversification of your portfolio. However, it is highly capital intensive and most illiquid asset class. Please review and rebalance your investment portfolio periodically.

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Contingency Fund

Contingency Funding
2,00,000 1,56,000 44,000

Contingency Funding Required

Availabe Resources

Excess

You should keep aside at least 6 months expenses to be used only in emergencies such as job loss. Your existing FD with Sahara is allocated to contingency fund. We advise you to prematurely encash this deposit immediately or if that is not possible then take maximum possible loan from them against the deposit immediately to safeguard your interest, The money should be invested in money market mutual fund or a bank fixed deposit. Maintain discipline. Do not use except incase of emergencies

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Life Insurance
Adequate Life insurance is a must to make sure your familys life style is not affected if you die early.

Insurance Need Analysis:

Looking at your present age, income, life style and life goals and also taking into consideration your assets and liabilities, your life insurance need is calculated as under:
Insurance Need Alalysis 95,00,000 50,00,000

41,00,000 4,00,000 Total Life Insurance Required Present Life Insurance (After Recommendation) Total Assets

Insurance Cover Required

Analysis of current Policies and Recommendations: Taking into account various factors like present surrender value, maturity value and premiums to be paid till maturity we advise you to continue Jeevan Saral, Jeevan Surabhi and Endowment Plan and surrender both money back plans as IRR of these plans will not beat inflation. Stop Paying Premium for IDBI ULIP plan since the returns are poor as compared to the benchmark and surrender after completion of 5 years. Your wife is a homemaker and does not require life insurance. Buy Aviva ilife an online term plan for Rs. 50 lakhs for a term of 30 years which will cost you around Rs. 5,000 p.a. Disclose all facts while buying fresh insurance.

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Health Insurance
This section covers analysis of your current General Insurance policies, Need Analysis of the Client and our recommendations.

Health Insurance (Mediclaim):

A serious illness could be catastrophic to your financial well being therefore, it is imperative you have adequate medical insurance coverage. Recommended Apollo Easy Health Standard Apollo Optima Plus Sum Assured No Health Insurance 3 Lakhs 5Lakhs Rs. 13,350 Rs. 3,600 Premium Individual Individual Type 4 4 Members Buy Immediately Buy Immediately Recommendation Current

You do not have any health insurance for your family and we strongly advised to buy the above plan at earliest. Disability Insurance pays a lump sum in the event of suffering from a debilitating disease such as cancer, stroke, organ failure or disability arising from an accident. You should take an accident insurance policy covering disability for Rs.25 lakhs and a critical illness policy for Rs.25 lakhs for yourself. Both these policies put together will cost you around Rs. 10,000 per year. Disclose all facts while buying fresh insurance.

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Investment Planning
Analysis of Current Investment:
Direct Equity Investment: Direct investment in equity is not advised, as it requires depth research and analysis. Invest money in good mutual fund schemes. Sell your equity investments and reinvest in Mutual Fund schemes as recommended.

Mutual Fund Investment: Sr. No. 1 2 Name of Scheme DSP Blackrock Top 100 HDFC TOP 200 Fund Current Value 5,877 2,945 Recommendation Continue and increase SIP amount to Rs. 1,500 Continue existing investment but stop fresh SIP Redeem and Shift to HDFC TOP 200,stop fresh SIP Redeem and Shift to HDFC TOP 200,stop fresh SIP Continue existing investment but stop fresh SIP Continue, start fresh SIP of Rs. 200 p.m. Continue Allocated Goal Education of Shagun Education of Shagun Education of Shagun Education of Shagun Marriage of Shagun Marriage of Shagun Marriage of Shagun

IDFC Sterling Fund

3,831

IDBI TOP 100 Fund

57,550

Kotak Gold Fund

1,953

6 7

Reliance Gold Savings IDBI Gold ETF

64,843 50,121

Instead of investing in sectoral or thematic funds, invest in well-diversified funds, which invest in stocks of many sectors, which give good diversification across sectors. Hence, we recommend switching as above. We suggest you to keep all your Mutual Fund units under Growth option and in recommended Mutual Fund Portfolio. All your existing investments have been allocated towards your all major goals. Equity schemes of mutual fund invest around 90-100% in shares of listed companies and the balance 0-10% in highly rated debt instruments.

We suggest you to have a periodical review process to monitor your portfolio and rebalance your portfolio as per your asset allocation. Email: fp@apnapaisa.com Page 9 of 22 Ph.: 022-6613 1999

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Retirement Planning
You would like to provide a corpus for your retirement at the age of 60years. You would like to maintain the same standard of living, which you are living at present.
Retirement Alalysis 4,50,00,000

2,22,000 Current Annual Expenses

20,68,000 Annual Expenses at Retirement Age Corpus Required for Retirement

Your PPF balance and Fund value of ULIP is allocated to this goal. ULIP fund value is to be invested in equity fund of Mutual fund after completion of five years. To build the shortfall you need to start monthly investment of Rs. 11,000 till retirement in the equity mutual fund scheme and PPF in the ratio of 90% in equity and 10% in PPF. You are advised to start fresh monthly SIP of Rs. 6,000 in Franklin India Bluechip Fund and Rs. 4,000 in ICICI Prudential Discovery Fund. Advised to deposit Rs. 1,000 per month (Annual Rs. 12,000) in your PPF account.

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Shaguns Education Planning

You would like to plan for your daughters education and would like to provide Rs. 10 lakhs in present value for this goal.
Education Planning 29,00,000

10,00,000

Current Value

Future Value

Your endowment plan and Jeevan Saral plans maturity is allocated to this goal. Jeevan Sarals Maturity needs to be reinvested after maturity for a period of 3 years in conservative MIP fund. We strongly believe that direct investment through stock markets requires in depth research and analysis and individually it is not possible for individuals to devote time for that. Therefore, we do not recommend direct equity investment. We advise to sell all the equity shares and invest in HDFC TOP 200 and IDFC Premier Equity Fund in the ratio of 70:30. Existing equity mutual fund investment is also allocated to this goal and advised to switch the funds as stated above. To build the balance corpus increase amount of SIP in DSP Black Rock TOP 100 fund from Rs. 1,000 to 1,500 and stop other SIPs. Page 11 of 22

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Vanshs Education Planning

You would like to plan for your sons education and would like to provide Rs. 10 lakhs in present value of this goal .
Education Planning 40,00,000

10,00,000

Current Value

Future Value

No existing asset is allocated to this goal. To build the corpus you need to start monthly investment of Rs. 5,000 in the equity mutual fund scheme and PPF in the ratio of 90 in equity and 10% in PPF. You are advised to start fresh monthly SIP of Rs. 4,500 in Reliance Tax Saver Fund to get the tax benefit u/s 80-C. Advised to deposit Rs. 500 per month (Annual Rs. 6,000) in separate PPF account opened in his name.

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Shaguns Marriage Planning

You would like to plan for your daughters marriage at the age of 24 years and provide a sum of Rs. 5 lakhs in present value for this goal.
Marriage Planning 23,30,000

5,00,000

Current Value

Future Value

Your Gold investment is allocated to this goal. To build the shortfall you need to start monthly investment of Rs. 2,000 in the ratio of 90% in equity mutual fund scheme and 10% in Gold Fund. You are advised to start fresh monthly SIP of Rs. 1,800 in Birla Sunlife Dividend Yield Fund and Rs. 200 in Reliance Gold Fund.

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Construction of House
You would like to construct a house after 10 years on the plot of land which will cost you Rs. 20 lakhs today.
Current Value Growth Rate Current Age Goal required at age Future Value 20,00,000 10% 31 41 52,00,000

Your existing plot of land and bank FD of Rs. 15 lakhs is allocated to this goal. You are advised to start a monthly SIP of Rs. 25,000 each in HDFC Balanced Fund and Canara Robeco Balanced Fund for a period of 30 months. Balanced schemes of mutual fund invest around 70-80% in shares of listed companies and the balance 20-30% in highly rated debt instruments.

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Estate Planning

We strongly recommend making a Will.

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Asset Re-allocation

Particulars Cash in hand* Savings Bank* Recurring Deposits* Fixed Deposits PPF Gold Investment Direct Equity Equity Oriented Mutual Funds Insurance Fund Value Plot of land

Amount 20,000 20,000 3,000 17,00,000 3,000 1,17,000 2,10,000 70,000 91,000 20,00,000 42,34, 000

Contingency

Education

Marriage

Retirement

Home Construction

2,00,000 3,000 1,17,000 2,10,000 70,000 91,000

15,00,000

2,00,000

2,80,000

1,17,000

94,000

20,00,000 35,00,000

* Not allocated to any goal. Stop further investment in recurring deposit.

Plan Assumptions: Plan Assumptions Retirement Age Life Expectancy Inflation Rate Portfolio Returns Portfolio Returns Portfolio Returns Portfolio Returns Portfolio Returns Self 60. 80 08.00% 05.00% 08.00% 15.00% 12.90% 08.00% Spouse N.A. 80

Liquid Funds Debt Equity Funds Balanced Funds Gold & Jewelry

All returns are assumed as net of Indian Income tax. None of the returns are guaranteed.

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Summary of Recommendations
Contingency Planning:
Liquid Fund/ Savings cum FD Rs. 1.56 lakhs Keep aside for emergency

Life Insurance:
Aviva i-life Rs. 50 lakhs Buy ASAP

Health Insurance:
Family Family Self Self Buy Apollo Munich Easy Health Standard Buy Apollo Munich Optima Plus Buy Apollo Personal Accident Buy Aviva Health Secure Rs. 3 lakhs Rs. 5 lakhs Rs. 25 lakhs Rs. 25 lakhs

Other Goals: Sr. Goal No.

1 Retirement

Investment Amt.(p.m.)
Rs. 6,000. Rs. 4,000 Rs. 1,000 Rs. 1,500 Rs. 4,500 Rs. 500 Rs. 1,800 Rs. 200 Rs. 25,000 Rs. 25,000

Remark/Suggestion
Franklin Bluechip Fund ICICI Pru Discovery Fund P.P.F. DSP Blackrock TOP 100 Reliance Tax Saver Fund P.P.F. Birlasunlife Dividend Yield Fund Reliance Gold Fund HDFC Balanced Fund Canara Robeco Balanced Fund

2 3 4

Shaguns Education Vanshs Education Shaguns Marriage Construction of House

All Mutual Fund investments are to be made under Direct Plan Growth Option

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Benefits of Financial Planning

Before Financial Plan

Investment / Insurance Premium paid Health Policy Premium

After Financial Plan

Rs. 28,500/Online Term Plan + Existing Traditional Plans

Rs.98,000 /Traditional + ULIP

NIL

Rs. 27,000 /Covers all family members + Accidental disability

+ Critical Illness

Pure Investment Total Life Cover Family Health Cover Accidental disability Critical Illness Cover Returns for 20 yrs Insurance Maturity Total Corpus Additional Return

Rs.5,000/- p.a.
In SIP and PPF

Rs. 18,500/- p.a.

In MF SIP and PPF

Rs. 9 lakhs NIL NIL NIL Rs. 68 lakhs

(@ 14.30% p.a.)*

Rs. 54 lakhs Rs. 32 lakhs Rs. 25 lakhs Rs. 25 lakhs Rs. 2.50 crore
(@ 14.30% p.a.)*

Rs. 36 lakhs Rs. 1.04 crore -

Rs. 6 lakhs Rs. 2.56 crore Rs. 1.52 crore

* None of the returns are guaranteed. Benefits are for illustration purpose only. See Disclaimer for details.

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Some good practices of financial planning

1. Make sure that the recommendations provided to you by your financial planner are executed properly and without any delays. Also you should keep the planner posted with any developments like change in income, any major health issues within family that may affect your financial planning. 2. Sit down once every year to review and revisit all your goals. Also reprioritize them in case needed. 3. Put automatic payments (ECS) on all insurance premium and SIP. Provide your mobile number to the insurance companies and mutual fund houses. They send reminders to maintain the required balance in your account a few days before the ECS is due. 4. Start moving your assets from risky assets like equities or alternative investments to debt instruments systematically when your goal is around 2-3 years away this will ensure that in case the equity markets falls just before your goals are arriving, your corpus would be protected to a very great extent. 5. Keep all your insurance and investment documents at one place and inform your spouse, parents and kids about the same in case of any emergency, they can trace them easily. Many a times, when a person gets admitted, then the family members have no clue about the mediclaim card that needs to be shown to the hospital. 6. Don't delay, investments or payment of your credit card bills/loan EMIs both of them can affect your financial future badly? If you delay in starting your investments on time, then you will lose the opportunity to create enough corpuses for your future goals. In case you delay in making payments for your credit card bills and loan EMIs then you will land up lowering your CIBIL score and risk your chances of getting a loan in future. 7. Get your CIBIL report and go through it to check if there is any of the information mentioned there are not true. In case any of the information mentioned there are not correct, you should report the same to CIBIL and get the same rectified at the earliest to avoid any complications in future. 8. Provide your mobile number to all the bank accounts and credit cards any transactions that is done on your debit card or your credit card is reported to your mobile number. 9. You should make sure that you have put nominations for all your investments. You should also prepare a will to plan for your estate since nominations are not sufficient to make sure that there is no dispute about the assets in the event of the death of the owner. Email: fp@apnapaisa.com Ph.: 022-6613 1999 Page 19 of 22

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Disclaimer
Any financial plan made by us is based on information detailed by the information provided by the client in the data gathering sheet and the personal discussions with the client. A copy of the data gathering sheet is available on request. The information contained in the financial plan must be read carefully. In case any relevant information is overlooked or misinterpreted, then we request the client to contact us before proceeding with the implementation of the plan. The financial plan is completely based on the information supplied to us by the client, which we assume to be correct. No responsibility can be accepted if the information provided to us is incorrect or inaccurate. This plan is prepared solely for the use of the client to whom it is addressed. This financial plan is a forward-looking document where we have assumed certain return on investments on various investment classes and inflation. These forward-looking statements involve, and are subject to known and unknown risks, uncertainties and other factors, which could cause actual results, performance or achievements to differ from the future results, performance or achievements expressed or implied by such forwardlooking statements. All these forward-looking statements attributable to ApnaPaisa herein are expressly qualified in their entirety by the above-mentioned cautionary statement. ApnaPaisa does not accept any direct or indirect liability for any results, performance or achievements that differ from results, performance or achievements implied by such forward-looking statements. We do not promise that the investments you make based on this plan will be profitable. Investments are always subject to various market, currency, and economic, political and business risks. We will not be liable for any losses that may be caused directly or indirectly by such investment decisions. This financial plan is based on the current situation and goals, which will change with the passage of time. Any material change in the financial situation of the client will necessarily render the contents of the plan out of date. Material changes refer to change in income/salary levels, assets acquired, liabilities incurred, change in number of dependents, health condition, or the passage of time of more than 12 months or the effect of inflation or deflation. We strongly recommend that a) You review this plan periodically to ensure that your plans actual performance is consistent in meeting your goals, and b) You update your plan annually to ensure that your plan is updated for your changing situation and goals.

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Thank You

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