Questions and Answers

1. Questions and Answers:
1. Can you tell us about `Max Secure Financial Planners` and its
mission & services? What services do you offer?
A: At Max Secure Financial Planners, we provide fee based advice
and provide unbiased recommendations by keeping the clients
interest uppermost in mind . Our mission is to nurture and maintain
long-term relationship based on trust with clients. We provide
financial planning services using six steps planning process and
promote financial literacy.
2. Who should think about getting a financial advisor? Is it just for
the wealthy or can anyone use the services of a financial advisor?
A: Any one who desires to pursue his/her financial goals and
manage his/her personal finance better but does not have time for it
can engage a qualified and professional financial adviser. Qualified
and professional Financial adviser can create value for anyone
including the wealthy.
3. What is your take on current market situation? What are the key
factors that will drive the stock markets in 2013? What is your advice
to retail investors now?
A.The market situation may remain range bound in the days
ahead.The factors that will influence the market in 2013 are Govt’s
Fiscal and reform measures, RBI’s decision on interest rates,
Infrastructure growth, Global recovery etc.Retail investors should not
try to time the market but should focus on goal oriented investments
keeping the asset allocation in mind.
4. How often would you suggest reviewing and rebalancing a
portfolio?
A: We would suggest to review and rebalance the portfolio twice a
year.

2. 5. Can you give a brief overview of how should one`s portfolio be at
different ages... E.g. at 25 years, 40 years, 55 years etc.
A: Building a portfolio should be driven by asset allocation and risk
tolerance.Equity exposure should be 100 minus the age.At younger
age, one can take higher risk and hence the portfolio can have higher
equity exposure and preferably a larger portion in small and mid
caps.As one progresses in life,family responsibilities are added and
hence risk tolerance gets reduced and preference of equity should be
in large caps.Nearing retirement equity exposure should get reduced
and debt exposure should get increased.
6. What is your view on interest rates and how is it likely to affect an
investor`s fixed income portfolio?
A.Interest rates are likely get reduced in 2013.The Fixed income
portfolio with longer duration are likely to appreciate higher.
7. Please share with us your long term view on the investment
opportunity that is presented by the Indian stock markets.
A. The long term view on the investment opportunity of Indian stock
market is very positive. Despite economic slowdown, the planned
GDP growth at 8.2% in the 12th Plan is much better than many other
countries in the world.The demographic profile of India is one the
best in the world today.Investment in many key areas are likely to be
stepped up in the years ahead.
8. Is there anything else you would like to share with our readers?
A. Regular saving and long term goal oriented investing is the need
of the hour for retail investors to meet the challenges of high
inflation, rising cost of higher education, increasing longetivity. Failing
to plan is planning to fail.
Prakash Praharaj
Founder and Chief Financial Planner
Max Secure Financial Planners