Financial Planning The NEED of the TOUGH TIMEPresented by,Kaushal Mandalia
Stock Market Down by 70% The TOUGH TIME Investors lost their Confidence.Higher Interest Cost for CorporateHigher Interest Cost for Corporate Job CUT : Further Leads to Negative Impact on DEMAND Uncertain TIME, Uncertain FUTURE.
What are the EFFECTS?1. Portfolio Value at Rock Bottom if Invested most of the money in Equity Market Market.2. No Fresh Demand is Creating through IPO or E it NFO th h Equity NFO.3. Supply is Higher than DEMAND hence, Increased possibilities of Stock Market Going Down further.
Do you NEED to WORRY? If your Portfolio is UNSTABLE You h ld be Y should b worried i d If Your Portfolio is STABLE Sit and Relax.
Unstable Equity / MF / Debt Portfolio P tf li and Others d Oth Emergency Equity Fund Market Mutual Fund Insurance Debt Instrument Stable Portfolio Emergency FundInsurance / ProtectionInsurance / Protection You can be WORRY‐FREE if your Portfolio is STABLE
THREE Parameters to CHECK… GOAL or OBJECTIVE Must be linked with Emotions and Not LOGIC only.. Must be linked with Emotions and Not LOGIC only RISK APPETITE RISK APPETITELets define this Clearly, Don’t Expect 100% Return at 10% RISKTIME HORIZON•The Shortest TERM possible to get RETURN is only CALL Money Market y•Define Time Horizon CLEARLY
GOAL or Objective of INVESTMENT Financial Planning Protection InsuranceChild’s education and marriage Creation of wealth, so the best can Investment be provided to the family Money for emergencies An independent retired life Legacy for future generations
Head + Heart = Buying DECISION STRONG Emotional Connect Rational Thinking Emotions Q Question Guaranteed Return of 10% or Non Guaranteed Return of 10% Denial Nothing is going to happen to me FEAR God Forbid Financial LOGIC Returns, Economic Conditions, Concern C How much is enough to E H hi h t Ensure Product Comparison Financial Security for my Family? Love and I love my wife and children very much.Recommendation by Advisor, Affection Friends and Relatives Determination I want my dreams for my family to be Ensured, regardless of what happens
Risk Appetite “Only Dead Man Does not have any Worry or Challenges”……. Anonymous Similarly, If you don t have money, you Similarly If you don’t have money youhave ZERO risk of losing it…Risk Appetite is determined by “Howmuch you are willing to give up withyour investment if possibility arises”Hence it largely depends on on..Returns Fixed Returns or Market LinkedLiquidity With Lock in Period or Without
Time HorizonShort Term Investments (1 Month to 2 Yrs)Avoid Market Linked and Prefer Fixed Return Schemes id k i k d d f i d S hLong Term Investments (More than 2 Yrs)Must be Goal Oriented (Use of Head and Heart both)Must be Goal Oriented (Use of Head and Heart both)Can be Market Linked but having Diversified Asset Allocation
Protecting your Risk GOALS and DREAMS Management against Any g y Estate Planning state Planning UncertaintyUncertainties Covered Whole Life Policies•Pre‐matured Death Pre matured Death MWP Act•Accident Nomination•Disability Absolute Assignment•Sickness INSURANCE Retirement Planning and Employee Benefits Choice of Asset Tax Planning Allocation (Debt, Pension Schemes Immediate q y, Equity, Market Section 80C Deferred Linked Returns with Section 80D Super Annuation Capital Protection) Tax Free Maturity
DYNAMIC FLOOR FUND Bullish (Jan 07 to ( Bearish (Dec 07 ( Dec 07) to Dec 08) Fund in FOCUS di Sensex 13827 to 20288 20286 to 9832 NAV of Dynamic NAV of Dynamic 10.17 to 13.11 10.17 to 13.11 to 13.05 to Floor Fund Last 2 Years PerformanceBullish – Jan’07 to Dec’07 ll h ’ ’ Bearish – Dec’07 to Dec’08 h ’ ’ % CAGR
Dynamic Floor Fund – Unique Advantage Available with Kotak Life Insurance – Head Start Plans Capital Protection Returns1. Goal Oriented : Child Education, Marriage and Start in Life Expense2. i k2 Risk Appetite : Low Risk – Moderate Return. Protection + Growth i i k d i G h3. Time Horizon : Advisable for Minimum Tenure of 10 Years
Financial Independence.. Stable Portfolio Thoughtful Planning Thoughtful Planning Retirement Emergency Planning FundsOther Critical Investments Illness Ill Financial IndependenceDisability Savings g Education Income Funds F d Protection Protection upon Death Accident & Hospitalization
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Prepared By,P dB Kaushal R. Mandalia Associate Financial Planner Risk Management & Insurance Planning firstname.lastname@example.org