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Investment Planning |
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Everyone needs to save for a rainy day. Once you have saved enough to take care of emergencies, you should start thinking about investing and to make your money grow. We can help you plan your investments so that you can reap adequate benefits and achieve your financial goals. The Financial Services Industry is changing faster than ever. With the overflow of financial products flooding the markets, investing is not that straightforward anymore, especially in volatile markets. Your success as an investor depends upon your ability to choose the right investment options and have a disciplined approach. |
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Investment Planning Service includes: |
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Risk Profiling |
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Asset Allocation and Portfolio Construction |
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Creation and Accumulation of Wealth through Systematic Investment Plans (SIP) |
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Regular review of progress and Portfolio Rebalancing
Essentially, Investment Planning involves identifying your financial goals throughout your life, and prioritising them. Investment Planning is important because it helps you to derive the maximum benefit from your investments.
Your success as an investor depends upon your ability to choose the right investment options. This, in turn, depends on your requirements, needs and goals. For most investors, however, the three prime criteria of evaluating any investment option are liquidity, safety and return.
Investment Planning also helps you to decide upon the right investment strategy. Besides your individual requirement, your investment strategy would also depend upon your age, personal circumstances and your risk appetite. These aspects are typically taken care of during investment planning.
Investment Planning also helps you to strike a balance between risk and returns. By prudent planning, it is possible to arrive at an optimal mix of risk and returns, that suits your particular needs and requirements. We help you answer the following questions; |
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What is my risk profile ? |
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Are all my financial assets mapped to my financial goals ? |
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What should be my Asset Allocation ? |
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What should be the time duration of my investments ? |
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Why do I need to diversify my portfolio ? |
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What is my investment objective – income or growth ? |
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Does my current exposure to equity match my risk appetite? |
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Is my current portfolio being driven on fundamentals or sentiments? |
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Insurance Planning: |
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Accidents never invite themselves & come, they for most part are uncertain but devastation they cause is certain. Accidents can be in the form of loosing a loved one or property.Insurance Planning is concerned with ensuring adequate coverage against insurable risks. Calculating the right level of risk cover is a specialised activity, requiring considerable expertise. Proper Insurance Planning can help you look at the possibility of getting a wider coverage for the same amount of premium or the same level of coverage for the same amount amount of premium or the same level of coverage for a reduced premium. Hence, the need for proper insurance planning.
Insurance, simply put, is the cover for the risks that we run during our lives. Insurance enables us to live our lives to the fullest, without worrying about the financial impact of events that could hamper it. In other words, insurance protects us from the contingencies that could affect us.
So what are the risks that we run? To name a few - the risk on our lives that is, the worries of replacement of the incomes that we contribute to the running of the household), the risks of medical contingencies (since they have the capability of depleting our wealth considerably) and risks to assets (since the replacement of these can have tremendous financial implications). If we can imagine a situation where our goals are disturbed by acts beyond our control, we can realise the relevance of insurance in our lives.
Insurance Planning takes into account the risks that surround you and then provides an adequate coverage against those risks. There is no risk not worth insuring yourself against, and insurance should first and foremost be looked as a measure to guard against risks - the risk of your dreams going awry due to events beyond your control. We help you find answers to following questions and more; |
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In case something happens to me, how much of Insurance is needed to take care of family expenses ? |
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How much of Health Insurance Cover I need to protect my family and myself ? |
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What is personal accident policy and critical illness policy and what benefit does it provide ? |
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Do I need to have Householders insurance policy ? |
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I have a few insurance policies. Am I under insured or over insured? |
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I am planning to go abroad for vacation. Do I need any additional insurance? |
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Have I bought insurance because of a sales call or because I needed it? |
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Do I have adequate liquid cash at my disposal to meet an emergency? |
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Retirement Planning: |
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As time passes our Golden Years slowly but steadily draw near every person suddenly finds himself asking whether his bank balance will help in suffice through the Years.
However, it is important to plan for your post-retirement life if you wish to retain your financial independence and maintain a comfortable standard of living even when you are no longer earning. This is extremely important, because, unlike developed nations, India does not have a social security net.
Retirement Planning acquires added importance because of the fact that though longevity has increased, the number of working years haven’t. |
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Our Retirement Planning Service involves : |
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Computing that amount that would be required post-retirement. This is done after taking inflation and time value of money into account.
Building your Retirement Corpus using Systematic Investment Plans (SIPs) and other long-term growth orient products
Ensuring adequate post-retirement income through safe investments.
The asset allocation and selection of investment vehicles keep changing as your risk-bearing capacity diminishes. |
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Buying a Dream Home: |
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The high economic growth in the past five years has brought about a big change in the life of the average person. Many youngsters are joining work
early and earning high salaries. Many are either single or newly-married with lower financial commitments. The disposable income in their hands is higher. Home loans are relatively easy to get and mortgage rates are getting cheaper. So, the journey of wealth creation now starts in early 20s. |
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Arriving at the budget |
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Starting early provides you with the ability to finish off the first housing loan while you are still in your early 40s. This gives you the added luxury of buying a second house for investment purposes. However, to get all this right, requires proper planning. It requires long-term financial planning. Some questions you must address before buying a house: |
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What type of house do you need? |
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The kind of house you need will be based on a host of factors like proximity to schools, offices, shopping centres and medical facilities. Making a list of all the items you need in your house in the order of priority. |
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How will you fund the down payment? |
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Even though banks are funding a substantial part of your housing costs, you will have to arrange for your contribution upfront from your personal savings.
This will be no less than 15%- 20% of the value of the house. You also need to cover at least a part of the closing costs. So, the first step towards owing your own house is saving up for down payment. |
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How big a loan should you avail? |
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If you are buying a house with borrowed funds, your home specifications will depend upon how much you can borrow and how much you can raise as down payment.
The mortgage lender will work out your loan eligibility in both scenarios . It pays to be prudent and limit your EMIs to no more than 35-40 % of your net take-home pay if you do not have other loans. |
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What should be the loan tenure? |
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Another major decision you will have to make will be the length of loan tenure. Generally, the longer the loan, the costlier it becomes. A five year difference in the loan tenure could set you back by a couple of lakhs.
So, the general philosophy should be to pay back the loan as early as possible. If you have an early start, you will be in a position to settle your first loan and be eligible for another housing loan for your second house. |
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Children’s Future Planning: |
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Like every parent, you too must be overjoyed to watch your child grow. All parents want to give the best possible upbringing to their children. This includes good education and security, in case of any eventuality. Soon, your little bundle of joy will grow up, and it will be time to provide for his or her higher education and wedding.
The purpose of Children's Future Planning is to create a corpus for foreseeable expenditures such as those on higher education and wedding, and to provide for an adequate security cover during their growing years.
Children's Future Planning acquires added importance because children's education and wedding are high priority life goals, which can neither be postponed nor can there be a compromise on the amount.
Good education has always been the passport to a secure future. Today, career opportunities have grown manifold, and there are many professional course that your child can aspire for. However, costs of higher education have also increased exponentially.
Like most parents, you might be saving regularly to ensure a safe tomorrow for your child. However, savings alone is no longer enough. For ensuring adequate funding of your child's education, you as a parent, need to do two things:
Invest appropriate amount systematically and at regular intervals
Provide for a financial security blanket to cover any eventuality
It is never too early to start saving and investing for your child's future. Especially in today's context. For example, the cost of a professional degree today is approximately Rs 2.5 lakhs. If your child is one-year-old today, after 17 years when he/she goes to college, you may require a sum of Rs 6.3 lakhs, assuming an annual rate of inflation of 6%.
There are many products which your Financial Planner can use to achieve the above objectives. For example, he could suggest a Children's Future Plan offered by any good insurance company, to build a corpus for your child's higher education, and provide for a security cover in the event of the parent's unfortunate demise.
Children's plans are also available under unit-linked option. Being unit-linked, they offer access to investments in all kinds of asset classes - equity, debt and cash. |
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