Family case wealth management for MBA Study

1. FAMILY
INVESTMENT
CASE STUDY
JBIMS MFM TY
WEALTH MANAGEMENT

2. PERSONA
L DETAILS
Name: Atharva S
Age: 36 years
Gender: Male
Marital Status: Married
Occupation: Salaried
Name Relationship Age
Anandi Wife 34 years
Ritu Daughter 4 years
Arnav Son 1 month
Risk Profile
• Primary Goal: Growth of
Capital
• Moderate Risk Taker
• Asset Class: Real Estate, EPF

3. FINANCIAL PROFILE
Category Type Yearly (₹) Monthly (₹)
Income Income From
Salary
26,00,000 2,16,000
Expense House Hold
Exp
3,60,000 30,000
Home Loan EMI 1,92,000 16,000
Insurance Atharva LIC 64,000 5,333

4. ASSETS
Nature of Asset Investment Value(₹)
Public Provident Fund(PPF) 40,000
Employee Provident
Fund(EPF)
2,60,000
Real Estate 40,00,000

5. LIABILITIES
Nature of
Liability
Tenure Principal
Amount(₹
)
Outstanding
Balance(₹)
EMI(₹)
Home
Loan
20 32,00,000 28,50,000 16,000
Personal
Loan
1 2,00,000 18,000

6. EXPENSE
S
EMI
22%
Personal Loan
25%
Lic Premium
7%
Yearly Expense
41%
PPF
3%
EPF
2%
EMI Personal Loan Lic Premium Yearly Expense PPF EPF

7. SPENDING
₹2,607,7
38
₹656,378
₹1,951,3
60
₹-
₹500,000
₹1,000,000
₹1,500,000
₹2,000,000
₹2,500,000
₹3,000,000
Income Expense Surplus

8. GOALS
Goal
Description
Years
Left
Months
Total
Present
Value(₹)
Total
Future
Value(₹)
Inflation Type
Buy Agriculture
Land
5 60
10,00,000 12,76,282
5% Short Term
Emergency
Fund
5 60
5,00,000 7,01,276
7% Short Term
Ritu-
Graduation
15 180
10,00,000 37,97,498
10% Long Term
Arnav-
Graduation
18 216
10,00,000 55,59,917
10% Long Term
Retirement 19 228
1,01,16,423 3,65,86,323
7% Long Term
Ritu-Marriage 21 252
10,00,000 41,40,562
7% Long Term

9. ASSUMPTIONS
Description Value
Inflation Rate 7%
Inflation Rate - Child Education 10%
Return on Debt Instruments 10%
Return on Hybrid Funds 12%
Yearly Income Growth 10%
AA rated Bonds 10%
Description Value
Large Cap MF/ELSS 12%
Mid Cap MF 20%
Small Cap MF 25%
Fixed Deposit 7%
PPF Tax free 8%
Sukanya Samriddhi Scheme(Tax Free) 8.5%
Debentures 10%

10. BUY
AGRICULTU
RE LAND
Goal Duration: 5 years
Present Value:
₹10,00,000
Net Corpus Required:
₹1,276,282
Current Investment Value:
0
Goal Type: Short Term
Investmen
t Option
Proporti
on
Monthly
EMI(₹)
AA rated
Bond
40% 6,593
Large Cap
MF
30% 4,688
Mid Cap
MF
30% 3,763
Summary:-
• Total EMI/month: ₹15,044
• Short term high value corpus
requires aggressive
investment

11. EMERGEN
CY FUND
Goal Duration: 5 years
Present Value: ₹5,00,000
Net Corpus Required:
₹701,276
Current Investment Value:
0
Goal Type: Short Term
Investment
Option
Proporti
on
Monthl
y
EMI(₹)
Large Cap
MF
30% 2,576
Mid Cap MF 30% 2,067
FD+ Gold 40% 3,918
Summary:-
• Total EMI/month: ₹8,562
• Liquidity is an important
criteria

12. RITU
GRADUATI
ON
Goal Duration: 15 years
Present Value:
₹10,00,000
Net Corpus Required:
₹3,797,498
Current Investment Value:
0
Goal Type: Long Term
Summary:-
• Total EMI/month: ₹8,090
• Tax free option is more preferred
Investment
Option
Proportio
n
Monthly
EMI(₹)
Sukanya
Samriddhi (Tax
Free)
40% 4,199
Debentures 20% 1,832
Large Cap
MF/ELSS
20% 1,520
Mid Cap MF 10% 340
Small Cap MF 10% 198

13. ARNAV
GRADUATI
ON
Goal Duration: 18 years
Present Value:
₹10,00,000
Net Corpus Required:
₹5,559,917
Current Investment Value:
0
Goal Type: Long Term
Summary:-
• Total EMI/month: ₹3,273
• LIC Maturity Amount (3yrs before and put
into FD@6% p.a.) gives 31lakhs.Hence
above diversification done only for
remaining 25lakhs.
Investment
Option
Proportion Monthly
EMI(₹)
PPF 30% 1,537
Debentures 20% 819
Large Cap
MF/ELSS
20% 649
Mid Cap MF 15% 178
Small Cap MF 15% 90

14. RITU
MARRIAG
E
Goal Duration: 21 years
Present Value:
₹10,00,000
Net Corpus Required:
₹41,40,562
Current Investment Value:
0
Goal Type: Long Term
Summary:-
• Total EMI/month: ₹4,646
• Tax free options preferred for long term
investment
Investment
Option
Proportion Monthly
EMI(₹)
Sukanya
Samriddhi
(Tax Free)
30% 1,788
PPF (Tax
Free)
10% 637
Debentures 20% 973
Large Cap
MF/ELSS
10% 367
Mid cap MF 10% 109
Small Cap
MP
10% 48
Gold Bars 10% 725

15. RETIREM
ENT
Term Duration: 19 years
Present Value:
₹1,01,16,423
Net Corpus Required:
₹36,586,323
Current Investment Value:
₹3,00,33,39,269
Goal Type: Long Term
Summary:-
• Total EMI/month: ₹43,178
• EPF(₹1,391,410)+ PPF(₹1,947,858)=
₹3,339,269; Hence remaining 3.3Cr from above
diversification
• Extra surplus available after Personal Loan(2nd
year onwards) and LIC maturity(@age 47yrs) is
Investment
Option
Proportion Monthly
EMI(₹)
PPF 35% 21,857
NPS 10% 6,245
Debentures 15% 7,377
Large Cap
MF/ELSS
15% 5,754
Mid cap MF 10% 1,309
Small Cap
MP
10% 635

16. INSUR
ANCE
• Insurance Cover Amount: 2
crores (buy at Age 38)
• Insurance Cover Amount: 3
crores (buy at Age 45)
Term Insurance (Life
cover-Till 85 years)
• Buy Health Insurance for
Amount 10L at age 50
Health Insurance