1. The document provides an overview of financial planning strategies for achieving financial goals such as retirement, children's education, and medical expenses. It discusses the importance of customized financial planning and appropriate asset allocation to generate optimal risk-adjusted returns. 2. Various tax saving investment avenues are described such as PPF, ELSS, insurance, and mutual funds. Conservative options like PPF and fixed deposits are highlighted as well as higher risk equity-linked options. 3. Right Horizons is introduced as a financial advisory firm that provides unbiased advice across all investment options. Their services including free tax and investment advice as well as paid financial planning are outlined.

1. 1
Feb 24, 2016
Achieve your
Financial Goals
By :
Rachna Rego
Director
Right Horizons

2. " The dream is not something you
see in sleep....The dream is the
thing that doesn't let you sleep..."
- Abdul Kalam

3. Agenda
• Financial Planning
– Concept and Process
• Case Study
• Simple Techniques For All Markets
• Investment Avenues
• Right Horizons Profile
• Q & A

4. Financial Planning – Why?
• Rate of cost escalation is huge for each of these goals – average being 6.5%
– Retirement Planning
– Higher Education / Marriage of Children
– Medical Expenses
• Every individual has different needs, hence, avail customized service – ‘What
suits your friend, may not suit you!’
• Appropriate ‘Asset Allocation’ enables you to avail optimal risk-adjusted
returns – Design your portfolio with a heady mix of Debt / Equity suitable for
your risk profile
• Wealth Creation is possible only if you are able to ‘Make your money work for
you!’

5. Why Financial Planning
• To achieve your dreams and fulfil your future
obligations, you need to carefully plan your
finances
Managing the Risk – Return Equation across multiple asset
classes
Liquidity Needs
Safety Needs
Potential
upside

6. Need Based Approach to Investments
Wealth
Creation
Wealth
Management
Wealth
Preservation
Your needs are our Services

7. Financial Planning Process…
basic
• Where do you want to be & when
• Define your financial goals in terms of how
much you will need and when
• Where are you?
• Check your financial resources
• Check your financial commitments
• How do you get there
• The financial plan / asset allocation
• Are you on course
• Periodic review of your investments / your
own condition

8. Impact of taxes and inflation on FDs
Bank FDs may not help you help in Wealth Creation in the
Long Term
You also run the risk of Interest Rates going down
*source:
Returns (5 yr Lockin) * SBI 9%
Tax @ 30.9% 2.8%
Post Tax yield 6.2%
Avg Inflation Rate 7%
Net Yield -0.8%

9. Summary: Financial Planning
• Choose Avenues considering following
– Taxation
– Post tax returns
– Financial Requirements and Goals
• Diversify into avenues with varied risk profiles
– Real Estate / Real Estate Funds
– Debt – Deposits, Debt Mutual Funds
– Gold funds
– Equity
• Balance the risk and returns
• Reduce Equity Risk thru
– STP and SIP
– Profit booking in market volatility
We hope our contrarian approach will help take advantage of the opportunity
that we see in the future

10. Case Study
• Age Band – 25 – 30 Yrs
• Needs
– Car – Rs. 5 Lakh
– Vacation – Rs. 50,000/-
– Marriage – Rs. 3 Lakh
• Age Band – 30 – 40 Yrs
• Needs
– Children Education – Rs. 5 Lakh
– Vacation – Rs. 1
Lakh
– House Construction – Rs. 35
Lakh

11. Tax Planning
Part A: Tax Laws & Planning
Part B: How to do Tax planning
By
Right Horizons Financials Pvt. Ltd.

12. Taxation

13. Agenda
• Heads of Assessment
• Save Taxes – Without Investing
• Housing loan benefits
• Deductions
• Tax Computation

14. Invest for Tax Saving?
…But what about my goal
planning?!

15. Investing to save taxes, match goals & reap high
returns…
Is it possible to achieve all these at once??

16. Income from Salary
Salary Structure – Basic, Bonus, Medical/conveyance/House Rent/ Leave
Travel/other Allowance, Variable Pay, PF
Taxable Components – Basic, Bonus, Variable Pay, etc
Income Exempt from Tax – Allowances – HRA, LTA, Medical,
Conveyance (Rs. 800/ Month)
Deductions – PF/EPF, Professional Tax
Perquisites –
Taxable – Rent Free Accommodation, Accommodation at concessional rent,
Subsidized or Interest Free Loan (perquisite to the extent of interest)
Tax-free* – Food coupons, Medical reimbursement, Medical premia paid by
employer on behalf of employee
*w.e.f Last year budget declaration FBT is abolished and hence tax – free perks will not be subject to
Fringe benefit taxes

17. Other Heads of Income
• Income From House Property
• Profits and gains of Business or Profession
• Income from Capital gains
• Income from Other Sources

18. Save Taxes without
Investing!!
Section Permitted Limits
House Rent Allowance
1. Actual amount of HRA
2. Rent Paid - 10% of Salary (Basic)
3. 50% of salary in 4 metros or 40% salary for other cities
10(14) Conveyance allowance Rs. 800/- p.m. is limit
Leave Travel Concession
>> 2 trips in a block of 4 Yrs
>> Amount not exceeding Air-Economy or Rail-AC 1
>> Fare shall be for journey to the place of destination by the
shortest route
10(13A)
10(5)
Tax Saving Tip:
Rent paid to the extent of Rs. 3000 / Mth, will not require rental receipts as
proofs, a self-declaration is mandatory

19. Housing Loan
Section Permitted Limits
Self Occupied Property
Interest on borrowed capital for purchase/construction
deduction currently Rs 150,000. (self occupied property)
If House given on Rent
Deduction of 30% available on Rental Income on Net
Annual Value (Rent-Taxes) for property given out on rent in
addition to deduction of interest
24(2)
24(1)
Interest payments on housing loan would get the following deductions:
Tax Saving Tip:
Structure your home loan effectively to optimize on tax breaks, if both self
& spouse want to claim, both home and loan should be held in joint names
**Deduction of 30% available on rental income towards maintenance is
proposed to reduce to 20% as part of direct tax code

20. Deductions
Section 80CCG was introduced recently during the budget
Under Investment Instruments features
Section 80 C Premium for Life Insurance or ULIP,PF, Public
Provident Fund (PPF) - only up to Rs. 70,000 in a
year,Equity Linked Savings Schemes (ELSS) of
Mutual Fund,Tax Saving Fixed Deposits with
Banks,Repayment of home loan principal,National
Savings Certificates (NSC), Tution fees for children
Section 80C gives every income tax payer up to
a maximum of Rs. 1,00,000 tax free income in a
year if they invest in mentioned instruments
Section 80D Medical/Health Insurance Premium Max Rs 15000 { additional 15k if availed for
parents}
Section 80E Interest paid on educational loans You can claim a deduction on the interest paid
on loans taken for higher education for
yourself, your spouse and children.
Section 80G Donations to Charitable institutions You can claim a deduction for any donation
that you might have made to a charitable fund
or institution.
Section 24 Interest paid on housing loan maximum of Rs 1,50,000 can be deducted from
your taxable income as interest repayment for a
self occupied house.
Section 10(13A) House Rent Allowance submit your rent receipts to employer
Section 10 (14) Rule 2BB(10)Transport Allowance max upto Rs 800 pm./9600 pa.
80 CCG Rajiv Gandhi Saving Scheme For Income less than 10 lakhs & upto 50K
Section 17(2) Medical Reimbursement upto Rs 15000- submit bills to your company
Tax Saving Avenues

21. Tax Saving Overview & Tips

22. Tax Savings – Where to Invest?
Returns
HighLow
LowHigh
Risk
PPF, Infra Bonds,
NSC, Traditional Insurance
Non Market Linked
Flexible Plan
Capital Guaranteed Plans
Market Linked Plans
Equity Linked
Savings Scheme
Investments in these
avenues qualify for
dedn. u/s 80C

23. Conservative Investments
Min / Max
Invt.
Term Withdrawal Returns
Post-Tax
Return
Risk
Profile
PPF
Rs. 500 /- to Rs.
70,000 /-
15 Yrs* 7 Yr onwards
(Partial)
8.5%
(Tax – Free)
8.5% Low
Fixed
Deposits
Rs. 1000* / No
Limit
Min. 5 Yrs (For
tax benefit)
None 8.5%
(Taxable)
5.95% Med
*Can be increased to 30 Yrs in blocks of 5 Yrs; **Differs from bank to bank

24. Qualifying Investments (Contd.)
Insurance: Some options you can consider –
• Non Market Linked Flexible Insurance Plan:
– Benefits: Guaranteed returns, lower risk (invests in Govt. bonds mainly), simple plan,
flexibility in terms of withdrawal, top-ups
– Negative: Customer cannot decide where the funds would be invested. Investment pattern fixed
by IRDA
• Market Linked Insurance Plan
– Benefits: Choice of investment portals, ability to choose higher risk- higher return avenues,
lower charges, flexibility (top ups, payment for a shorter period, free switches, etc.)
– Negative: Market Linked and hence subject to market risks
• Capital Guaranteed Insurance Plan:
– Benefits: Market Linked returns and assures Capital guarantee, withdrawal flexibility, top-ups
– Negative: No choice of investment portals (provides a balance of equity and debt)

25. Tax Saving Mutual Funds
Features
• Block lock-in of 3 Yrs
• High Risk Profile
• Tax – Free returns
• SIP mode available
• Start with a minimum Rs. 500/Mth
Suitability
When the markets are lying low
Provides for potential upside
Investment Via Systematic route is advised
Judicious choice of funds is required
Equity Linked Savings Scheme
Past Performance (YoY Returns)
Source: Bajaj Capital; Jul 10
Cost
Fund Name Rating 1Y 3Y 5Y Risk Grade Beta Expense Ratio
ELSS
DSPBR Tax Saver 4 Star 36.30 7.95 0.94 Avg. 0.85 2.25
HDFC LT Advantage 4 Star 25.81 8.48 2.99 Below Avg. 0.85 2.11
ICICI Prudential Tax Plan 5 Star 33.40 9.39 4.50 Avg. 0.88 1.98
Canara Robeco Equity Tax Saver Regular 5 Star 27.46 10.81 6.74 Low 0.71 2.29
Reliance Tax Saver 4 Star 42.43 11.04 3.45 Avg. 0.94 1.9
RETURNS (%) Risk Analysis

26. About Right Horizons

27. Investment Banking &
Consulting
Individual's Financial
Planning
Real Estate
Portfolio Advisory Corporate Services
Right Horizons -Services

28. How have we managed risk
• Financial Planning and Asset Allocation
• Contrarian Approach
• Profit booking at peak
– Conducted only for long term assets
– Not done for short term assets since it adds to cost
• Diversification into avenues that are less risky at a peak
– Real Estate Funds
– Capital Protection funds
– Gold funds
• Diversification of ESOPs and using debt to enhance returns
• Systematic Investments

29. RH in the NEWS…

30. Featured in almost all
leading dailies.

31. Our USPs
Is a one stop shop on all financial needs – from tax
planning to investments providing value and a
structured oversight
Having to work with multiple Wealth
Managers and Advisors
SPOCSPOC
Wealth Advisory by MNC/Indian Bank Right Horizons Provides
In-depth Expertise / Advice on ESOPs to deliver
best returns, alerts to sell
Biased/Minimal advice on my ESOPs
ESOPESOP
Multiple avenues; Multiple options under each
avenue – providing range and reducing bias. Eg
we provide the range of ICICI Bk, HDFC Bank,
Templeton PMS all under one roof without bias
Wealth Management advice only
suggests their own products and does
not have a complete range of avenues
Own
Product
Own
Product
Planning provides the foundation – advice
completely customized to each individual
Minimal planning at the individual
level, no customization
PlanningPlanning
Managing Risk given primary importance – help
provide long term growth; multiple vendors help
diversify e.g. spread across multiple PMS
Advice without financial basis: not
founded on Risk Management
Risk
mgt.
Risk
mgt.
Advice based on market outlook; a unique de-
risked model
SellSell
Advice based on what was easier to
sell

32. Why Right Horizons…?
• Are you getting unbiased advice??
• We deal across all investment avenues with multiple options
within each avenue – hence giving you unbiased advice
• Finance driven to provide you right advice
– Suggestion based on your needs
– Advice from professionals with strong financial background – provide you
with strategies to manage risk
– Focus on Financial Planning
– Backed by a research team
• Service at your doorstep – Help desk on campus
• Different levels of services to Swiss re employees
– Free Services – Tax & Investment Advisory (Complete process taken care of
– includes handing over of proofs)
– Paid Services – Tax Filing, Need Based Analysis & Financial Planning

33. Our Special Offer to employees
• FREE Services
– Tax Advisory and individual advice on tax saving investments
– Investment advice is free (Insurance, MFs, Govt Bonds, etc)
– Answer queries on your queries on Taxes & Investments
– One point contact for all your tax related investments incl providing forms,
collection, payment and receipts
• Paid Services at discounted rates:
– Tax Filing
– Financial planning and advisory – Rs 2,500+tax
– Detailed financial planning on each need, investment reco, weekly market
reports, stock picks, alerts, online mutual funds info, monthly statements,
tracking, opportunities info, ESOPs
Mail : contactus@righthorizons.com / Rachna@righthorizons.com
or Ph : 080-32718679/41209582 Website : www.righthorizons.com

34. Questions and Answers
Contacts:
Mail : contactus@righthorizons.com
Phone : 32718679 or 41209582 or 98453 99780
Website : www.righthorizons.com

35. Rupee Cost
Averaging
Risk Reduction
Market Timing
Not required
Advantages of SIP/ Monthly mode for
ULIP/MFs

36. Key Terms
• Debt
• Equity
• Asset
• Asset Allocation
• Bonds
• Fixed Vs Floating Rates
• Risk
• Portfolio
• Diversification
• Mutual Funds
• Insurance