Financial Planning The Need Of The Tough Time

Financial Planning The NEED of the TOUGH TIME Presented by, Kaushal Mandalia

Stock Market Down by 70% The TOUGH TIME Investors lost their Confidence. Higher Interest Cost for Corporate Higher 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 Y should b worried You h ld be 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 Fund Insurance / Protection Insurance / 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 APPETITE Lets define this Clearly, Don’t Expect 100% Return at 10% RISK TIME 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 Insurance Child’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 H How much is enough to E 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 you have ZERO risk of losing it… Risk Appetite is determined by “How much you are willing to give up with your investment if possibility arises” Hence it largely depends on on.. Returns Fixed Returns or Market Linked Liquidity With Lock in Period or Without

Investment Options Insurance

Time Horizon Short 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 h Long 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 Uncertainty Uncertainties 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 Performance Bullish – Jan’07 to Dec’07 ll h ’ ’ h ’ ’ Bearish – Dec’07 to Dec’08 % CAGR

Dynamic Floor Fund – Unique Advantage Available with Kotak Life Insurance – Head Start Plans Capital Protection Returns 1. Goal Oriented : Child Education, Marriage and Start in Life Expense 2. i k i i k d 2 Risk Appetite : Low Risk – Moderate Return. Protection + Growth i G h 3. Time Horizon : Advisable for Minimum Tenure of 10 Years

Financial Independence.. Stable Portfolio Thoughtful Planning Thoughtful Planning Retirement Emergency Planning Funds Other Critical Investments Illness Ill Financial Independence Disability Savings g Education Income Funds F d Protection Protection upon Death Accident & Hospitalization

Sleep Better at Night With Right Financial Advise

P Prepared By, dB Kaushal R. Mandalia Associate Financial Planner Risk Management & Insurance Planning kaushal@thefinancialplanners.in

Financial Planning The Need Of The Tough Time

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