Financial planning involves applying guiding principles to deal with an individual's past, present, and future finances. It encompasses issues like carrying debt from the past, making changes in the present to work toward a better future, and allowing people to save and dream. All individuals need to save for goals like retirement, education, homes, and other family obligations. Financial planning helps people save over different life stages from 25-60 years old to accumulate wealth despite inflation and meet expenses in retirement. Regular systematic investing and allowing time to work in one's favor can significantly grow savings versus trying to time the market. Prudent Partners is a firm that provides objective financial advice and solutions through a team of qualified planners using technology to efficiently serve clients.

2. What is Financial Planning
"Financial planning, I believe, is not exclusively about retirement planning or
investing or even portfolio management. If distilled to its purest elements, this
discipline is more accurately understood as one that involves applying guiding
principles to deal with our past, present and future finances.
Our past - because some of us may be carrying the baggage of yesterday's
excesses that are costing us our future happiness and financial well-being;
Our present - because now is the best time to act and change course toward a
better destination; and
Our future - because each of us is entitled to dream of a better tomorrow."

3. Individual Investor Needs
All individuals need to save for
Retirement
Child’s Education / Marriage
Home / Car
Other family obligation
Every individual has one or more
of the above goals during some
part of their life stages

4. Life Stage Planning
All individuals have finite period to save (generally, 25 to 60) to save for their investment goals.

5. Value of Money over time
Impact of inflation on monthly Value of Rs 100,000 over time
expenses of Rs 30,000 @ 7%

6. Retirement Planning
Retirement corpus required to meet
Monthly household expenses post retirement expenses. (If invested
@ 7% and inflation @ 5%)
` 3.26 Cr

7. Child’s Education
Educational Degree

8. But I do save…. (or Do I Save?)
Money in Fixed Deposits 100,000
Add: Interest earned in 1 year (@ 9% pa) 9,000
Total 109,000
Less: Tax on interest (@30.9%) 2,781
Less: Impact of Inflation (@8%) 8,000
Value at the end of year 1 98,219

9. The Financial Planning Process

10. Why Financial Planning?
Step 1: Start Early: Cost of delay
Particular Seeta Geeta
Geeta has two choices
Starts investing at the age (in years) 28 38 Either earn on her investments @ 15% OR
Monthly savings (in Rupees) 10,000 10,000 Save monthly Rs25,634
Returns expected from Bank Fixed Deposit 8% 8%
Both invest till the age of (in years) 58 58
Total Investment
Wealth Accumulated (in Rupees Lacs)
3,600,000
149.04
2,400,000
58.90 Difficult……Isn’t it?
Step 2: Invest Systematically & Regularly
Date `
NAV (` ) Units `
Amount (` ) Benefits of Rupee Cost Averaging:
2-Mar-09 190.47 52.5017 10,000
Say you are investing Rs 10,000 every month from March 2009 to
13-Apr-09 233.32 42.8596 10,000
11-May-09 252.50 39.6040 10,000
February 2010 in a diversified equity fund.
10-Jun-09 339.27 29.4750 10,000 Now check the average purchase cost per unit of your investments. It
10-Jul-09 307.21 32.5510 10,000 would be lower than the average NAV of your investments over the past
10-Aug-09 343.02 29.1528 10,000 12 months.
10-Sep-09 375.56 26.6269 10,000
12-Oct-09 392.46 25.4803 10,000 Average Cost = 120,000/374.7205 = Rs 320.24
10-Nov-09 392.76 25.4608 10,000
10-Dec-09 416.48 24.0108 10,000
Note: Past performance may or may not be sustained in the future.
11-Jan-10 439.79 22.7381 10,000
The above table considers the actual NAV of a diversified equity fund to explain the
10-Feb-10 412.21 24.2595 10,000 concept of Rupee Cost Averaging. The NAVs do not in any manner indicate the
Total 374.7205 120,000 future NAVs of any of the schemes

11. Why Financial Planning?
Step 3: Invest Long term
Money grows over a period of Time.
Rs 5000 invested at 8% p.a. compounded return instrument every month for
….just like a rolling
snowball gathers snow
an grows.
This is an hypothetical illustration taking example of a recurring deposit to explain the concept of ‘Power of
Compounding”.
Past performance may or may not be sustained in the future

12. After all, it’s your choice
Choice 1 Choice 2
Simple, straightforward way to Invest in instruments which might
create long term wealth not beat inflation
Understand and embrace risk Select your stocks judiciously &
Put time to your side follow the market very closely
Invest systematically Time your entry and exit very well
Don’t worry about market timing Invest systematically
A tried & tested method And hope that you get it right
more often than not!

13. How can we help you?
Prudent Partners is a boutique firm started by first generation entrepreneurs –
Vivek Damani, CFPCM & Vijay Dalmia, CFPCM, LUTCF
The object of this firm is to manage relationships with the assistance of external
intermediaries and provide products and services through structured service
oriented architecture
It boasts of highly successful strategic advisors comprising of professionals
bringing with them relevant domain knowledge and global best practices to help
relationships with their financial management

14. About Prudent Partners
Prudent Partners is a boutique firm started by first generation entrepreneurs – Vivek
Damani, CFPCM & Vijay Dalmia, CFPCM, LUTCF
The object of this firm is to manage relationships with the assistance of external
intermediaries and provide products and services through structured service oriented
architecture
It boasts of highly successful strategic advisors comprising of professionals
bringing with them relevant domain knowledge and global best practices to help
relationships with their financial management

15. Our Vision
To be a leading financial services provider backed by superior advisory capabilities
for discerning clients
This we hope to achieve by:
Building long term relations with our clients
Understanding the needs of the clients & offering them
independent and unbiased advice
Leveraging technology to service clients quickly, efficiently
and conveniently
Building transparency in all our dealings
The success of the company will be built by its unwaivered commitment to the five core
values –
Client First Confidentiality
Integrity Tr a n s p a r e n c y
Passion

16. Our Unique Proposition
Professionally qualified team of Focus on service centric architecture
Financial Planners guiding and rather than product push
mentoring the Firm
Strategic, flexible and adaptable service
Wide range of product suite available
to offer you the ones which suits your Maximum use of technology to service
specific needs you quickly, efficiently and conveniently
Independent & objective financial Creative solutions to financial challenges
advice
Strategic planning, sourcing &
implementation capabilities
Experience & stability

17. Thank You

18. Disclaimer
This document constitutes neither an offer nor solicitation to purchase or sell securities or any other
financial instruments.
The views constitute only the opinions and do not constitute any guidelines or recommendations on any
course of action to be followed by the readers. This information is meant for general reading purpose and is
not meant to serve as a professional guide for the readers.
This document has been prepared on the basis of publicly available information, internally developed data
and other sources believed to be reliable. The Partners, employees, affiliates or representatives do not
assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such
information. Whilst no action has been solicited based upon the information provided herein, due care has
been taken to ensure that the facts are accurate and opinions given are fair & reasonable.
The recipient is requested to take into consideration all the risk factors including their financial condition,
suitability to risk-return profile, and take professional advice before contracting with Prudent Partners.
None of the Partners, employees, affiliates or representatives shall be liable for any direct, indirect, special,
incidental, consequential, punitive or exemplary damages including loss profits arising in any way from the
information contained in this material.
The illustrations give herein should not be construed as a promise, guarantee on or a forecast of any
minimum returns. We at Prudent Partners does not assure any safeguard of capital and the illustrated returns
are not necessarily indicative of future results and may not necessarily provide a basis for comparison with
other investments.
This presentation is not for public distribution and has been furnished solely for information and must not
be reproduced or redistributed to any other person. Persons into whose possession this document may come
are required to observe these restrictions. No part of this material may be duplicated in any form and/or
redistributed without Prudent Partners’ prior written consent.