Total Amount available for investment

PPF 4,000 Balance as on date 0

Mutual Fund 12,000 Balance as on date 0
Equity 6,000
Term Insurance 3,000

Current outflows
Housing EMI 37,800 192 months EMI ouststanding

Task
1 Liquidity to be maintained at 60000 pa
2 Selection of Term Insurance for 3000 pm for 15 years
3 No PPF as of now but reinvest PPF after 15 years.
4 After a period of 15 years, client wants a monthly withdrawl of Rs.76,000 annuity
Schedule of existing cash flows

Month PPF Equity Mutual Fund Term Insurance

1 4,000 6,000 12,000 3,000
2 4,000 6,000 12,000 3,000
3 4,000 6,000 12,000 3,000
4 4,000 6,000 12,000 3,000
5 4,000 6,000 12,000 3,000
6 4,000 6,000 12,000 3,000
7 4,000 6,000 12,000 3,000
8 4,000 6,000 12,000 3,000
9 4,000 6,000 12,000 3,000
10 4,000 6,000 12,000 3,000
11 4,000 6,000 12,000 3,000
12 4,000 6,000 12,000 3,000
13 4,000 6,000 12,000 3,000
14 4,000 6,000 12,000 3,000
15 4,000 6,000 12,000 3,000
16 4,000 6,000 12,000 3,000
17 4,000 6,000 12,000 3,000
18 4,000 6,000 12,000 3,000
19 4,000 6,000 12,000 3,000
20 4,000 6,000 12,000 3,000
21 4,000 6,000 12,000 3,000
22 4,000 6,000 12,000 3,000
23 4,000 6,000 12,000 3,000
24 4,000 6,000 12,000 3,000
25 4,000 6,000 12,000 3,000
26 4,000 6,000 12,000 3,000
27 4,000 6,000 12,000 3,000
28 4,000 6,000 12,000 3,000
29 4,000 6,000 12,000 3,000
30 4,000 6,000 12,000 3,000
31 4,000 6,000 12,000 3,000
32 4,000 6,000 12,000 3,000
33 4,000 6,000 12,000 3,000
34 4,000 6,000 12,000 3,000
35 4,000 6,000 12,000 3,000
36 4,000 6,000 12,000 3,000
37 4,000 6,000 12,000 3,000
38 4,000 6,000 12,000 3,000
39 4,000 6,000 12,000 3,000
40 4,000 6,000 12,000 3,000
41 4,000 6,000 12,000 3,000
42 4,000 6,000 12,000 3,000
43 4,000 6,000 12,000 3,000
44 4,000 6,000 12,000 3,000
45 4,000 6,000 12,000 3,000
46 4,000 6,000 12,000 3,000
47 4,000 6,000 12,000 3,000
48 4,000 6,000 12,000 3,000
49 4,000 5,000 12,000 4,000
50 4,000 5,000 12,000 4,000
51 4,000 5,000 12,000 4,000
52 4,000 5,000 12,000 4,000
53 4,000 5,000 12,000 4,000
54 4,000 5,000 12,000 4,000
55 4,000 5,000 12,000 4,000
56 4,000 5,000 12,000 4,000
57 4,000 5,000 12,000 4,000
58 4,000 5,000 12,000 4,000
59 4,000 5,000 12,000 4,000
60 4,000 5,000 12,000 4,000
61 4,000 5,000 12,000 4,000
62 4,000 5,000 12,000 4,000
63 4,000 5,000 12,000 4,000
64 4,000 5,000 12,000 4,000
65 4,000 5,000 12,000 4,000
66 4,000 5,000 12,000 4,000
67 4,000 5,000 12,000 4,000
68 4,000 5,000 12,000 4,000
69 4,000 5,000 12,000 4,000
70 4,000 5,000 12,000 4,000
71 4,000 5,000 12,000 4,000
72 4,000 5,000 12,000 4,000
73 4,000 5,000 12,000 4,000
74 4,000 5,000 12,000 4,000
75 4,000 5,000 12,000 4,000
76 4,000 5,000 12,000 4,000
77 4,000 5,000 12,000 4,000
78 4,000 5,000 12,000 4,000
79 4,000 5,000 12,000 4,000
80 4,000 5,000 12,000 4,000
81 4,000 5,000 12,000 4,000
82 4,000 5,000 12,000 4,000
83 4,000 5,000 12,000 4,000
84 4,000 5,000 12,000 4,000
85 4,000 4,000 12,000 5,000
86 4,000 4,000 12,000 5,000
87 4,000 4,000 12,000 5,000
88 4,000 4,000 12,000 5,000
89 4,000 4,000 12,000 5,000
90 4,000 4,000 12,000 5,000
 91 4,000 4,000 12,000 5,000
92 4,000 4,000 12,000 5,000
93 4,000 4,000 12,000 5,000
94 4,000 4,000 12,000 5,000
95 4,000 4,000 12,000 5,000
96 4,000 4,000 12,000 5,000
97 4,000 4,000 12,000 5,000
98 4,000 4,000 12,000 5,000
99 4,000 4,000 12,000 5,000
100 4,000 4,000 12,000 5,000
101 4,000 4,000 12,000 5,000
102 4,000 4,000 12,000 5,000
103 4,000 4,000 12,000 5,000
104 4,000 4,000 12,000 5,000
105 4,000 4,000 12,000 5,000
106 4,000 4,000 12,000 5,000
107 4,000 4,000 12,000 5,000
108 4,000 4,000 12,000 5,000
109 4,000 4,000 12,000 5,000
110 4,000 4,000 12,000 5,000
111 4,000 4,000 12,000 5,000
112 4,000 4,000 12,000 5,000
113 4,000 4,000 12,000 5,000
114 4,000 4,000 12,000 5,000
115 4,000 4,000 12,000 5,000
116 4,000 4,000 12,000 5,000
117 4,000 4,000 12,000 5,000
118 4,000 4,000 12,000 5,000
119 4,000 4,000 12,000 5,000
120 4,000 4,000 12,000 5,000
121 5,000 2,000 12,000 6,000
122 5,000 2,000 12,000 6,000
123 5,000 2,000 12,000 6,000
124 5,000 2,000 12,000 6,000
125 5,000 2,000 12,000 6,000
126 5,000 2,000 12,000 6,000
127 5,000 2,000 12,000 6,000
128 5,000 2,000 12,000 6,000
129 5,000 2,000 12,000 6,000
130 5,000 2,000 12,000 6,000
131 5,000 2,000 12,000 6,000
132 5,000 2,000 12,000 6,000
133 5,000 2,000 12,000 6,000
134 5,000 2,000 12,000 6,000
135 5,000 2,000 12,000 6,000
136 5,000 2,000 12,000 6,000
137 5,000 2,000 12,000 6,000
138 5,000 2,000 12,000 6,000
139 5,000 2,000 12,000 6,000
140 5,000 2,000 12,000 6,000
141 5,000 2,000 12,000 6,000
142 5,000 2,000 12,000 6,000
143 5,000 2,000 12,000 6,000
144 5,000 2,000 12,000 6,000
145 5,000 2,000 12,000 6,000
146 5,000 2,000 12,000 6,000
147 5,000 2,000 12,000 6,000
148 5,000 2,000 12,000 6,000
149 5,000 2,000 12,000 6,000
150 5,000 2,000 12,000 6,000
151 6,000 - 13,000 6,000
152 6,000 - 13,000 6,000
153 6,000 - 13,000 6,000
154 6,000 - 13,000 6,000
155 6,000 - 13,000 6,000
156 6,000 - 13,000 6,000
157 6,000 - 13,000 6,000
158 6,000 - 13,000 6,000
159 6,000 - 13,000 6,000
160 6,000 - 13,000 6,000
161 6,000 - 13,000 6,000
162 6,000 - 13,000 6,000
163 6,000 - 13,000 6,000
164 6,000 - 13,000 6,000
165 6,000 - 13,000 6,000
166 6,000 - 13,000 6,000
167 6,000 - 13,000 6,000
168 6,000 - 13,000 6,000
169 6,000 - 13,000 6,000
170 6,000 - 13,000 6,000
171 6,000 - 13,000 6,000
172 6,000 - 13,000 6,000
173 6,000 - 13,000 6,000
174 6,000 - 13,000 6,000
175 6,000 - 13,000 6,000
176 6,000 - 13,000 6,000
177 6,000 - 13,000 6,000
178 6,000 - 13,000 6,000
179 6,000 - 13,000 6,000
180 6,000 - 13,000 6,000
 240.00 NPER

0.2917% Rate

Financial Goal 10,396,041.10 PV

Monthly amount requirement as per today's prices 25,000
Inflation (every year) 5%
Years 20
Monthly amount requirement
(Inflation adjusted) 60,293

The monthly amount required after retirement as per rate of today is 25,000
However, due to inflation, the purchasing power of rupee would correspond to Rs.60,293
The following calculation is based on an inflation rate of 4.5% every year.
Thus, modifications to the existing portfolio is required so that the client's objective is met.
 Projection as per existing investments

Asset PV PMT Rate NPER FV

1 PPF
342,981 4,000 0.5917% 120 696,162
114,837 5,000 0.5917% 30 163,609
137,805 6,000 0.5917% 30 196,330

2 Equity 215,588 6,000 1.2500% 48 391,370

92,226 5,000 1.2500% 36 225,578
73,780 4,000 1.2500% 36 180,462
34,291 2,000 1.2500% 30 72,258

3 Mutual Fund 1,000,200 12,000 0.8750% 150 3,695,040

263,115 13,000 0.8750% 30 443,772

4 Term Insurance 134,191 3,000 0.2917% 48 154,326

122,920 4,000 0.2917% 36 151,599
153,651 5,000 0.2917% 36 189,499
157,709 6,000 0.2917% 30 187,824
6,747,829

Asset PV PMT Rate NPER FV

1 PPF 5,000 0.5917% 180 1,383,430
2 Equity 33,000 1.2500% 12 3,213,040
3 Mutual Fund 2,000 0.8750% 180 5,242,494
4 Term Insurance 3,000 0.2917% 180 840,682

Amount available at the end of 15 years 10,679,646

For Next 15 years 180.00

The amount has been kept safely at a scheduled banks 0.2917%

The client can expect a steady withdrawl every month 76,347

It is suggested to withdraw the PPF amount at the end of 15 years

Excess amount available for investment, with the requirement that it should provide returns
Client will reduce Investment in Equity and reduce to Zero after he attains the age of 50.
The Client will withdraw the investment in respect to the market condition.
Client may or may not stop investing in this Tax saver SIP MF scheme. It will depend upon the situation.

PV

NPER

Rate

PMT
Asset Amt per month
PPF 4000
Equity 6000
Mutual Fund 12000
Term Insurance 3000

Applicable service charges rate

Applicable service charge for the year

Months Value per annum
12 48,000
12 72,000
12 144,000
12 36,000
300,000

1.99%

5,970