Financial Planning

The NEED of the TOUGH TIME

Presented by,Kaushal Mandalia

The TOUGH TIMEStock Market Down by 70%

Investors lost their Confidence.

Higher Interest Cost for CorporateHigher 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 MarketEquity Market.

2. No Fresh Demand is Creating

th h IPO E it NFOthrough IPO or Equity NFO.

3. Supply is Higher than DEMAND

hence, Increased possibilities of

Stock Market Going Down further.

Do you NEED to WORRY?Do you NEED to WORRY?

If your Portfolio is UNSTABLEY h ld b i dYou should be worried

If Your Portfolio is STABLESit and Relax.Sit and Relax.

Equity / MF / Debt d Oth

UnstableP tf li and OthersPortfolio

Emergency FundEquity 

Market

InsuranceMutual Fund

Debt Instrument

StablePortfolio

Emergency Fund

Insurance / Protection

Portfolio

Insurance  / Protection You can be WORRY‐FREE if your Portfolio is STABLE

THREE Parameters to CHECK…

GOAL or OBJECTIVEMust be linked with Emotions and Not LOGIC onlyMust be linked with Emotions and Not LOGIC only..

RISK APPETITERISK APPETITELets define this Clearly, Don’t Expect 100% Return at 10% RISK

TIME HORIZON•The Shortest TERM possible to get RETURN is only CALL Money Markety

•Define Time Horizon CLEARLY 

GOAL or Objective of INVESTMENTFinancial Financial PlanningPlanning

Child’s education and marriage

InsuranceInsuranceProtectionProtection

PlanningPlanning

Creation of wealth, so the best can be provided to the family

marriage

InvestmentInvestment

Money for emergencies

An independent retired life

Legacy for future generations

Head + Heart = Buying DECISION

Rational ThinkingSTRONG Emotional Connect

Emotions QuestionGuaranteed Return of 10% or Non Guaranteed Return of 10%

Financial LOGIC

Q

Denial Nothing is going to happen to me

FEAR God Forbid

C H h i h t EReturns, Economic Conditions,Product Comparison

Recommendation by Advisor,

Concern How much is enough to Ensure Financial Security for my Family?

Love and Affection

I love my wife and children very much.

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 youSimilarly, If you don t have money,  you have ZERO risk of losing it…

Risk Appetite is determined by “Howmuch you are willing to give up withyour investment if possibility arises”

Hence it largely depends onHence it largely depends on..

ReturnsFixed Returns or Market Linked

LiquidityWith Lock in Period or Without

Investment Options

Insurance

Time Horizon

Short Term Investments  (1 Month to 2 Yrs)id k i k d d f i d S hAvoid Market Linked and Prefer Fixed Return Schemes

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

Risk Management Estate Planning

Protecting your GOALS and DREAMS 

against Any 

Uncertainties Covered•Pre‐matured Death

Management state Planning

Whole Life PoliciesMWP Act

g yUncertainty

Pre matured Death•Accident•Disability•Sickness

INSURANCE

NominationAbsolute Assignment

INSURANCE

Retirement Planning 

Pension SchemesImmediate

Tax Planningand Employee Benefits

Section 80C

Choice of Asset Allocation (Debt, Equity, Market Immediate

DeferredSuper Annuation

Section 80DTax Free Maturity

q y,Linked Returns with Capital Protection)

DYNAMIC FLOOR FUNDDYNAMIC FLOOR FUND

Bullish (Jan 07 to  Bearish (Dec 07 d i

(Dec 07)

(to Dec 08)

Sensex 13827 to 20288 20286 to 9832

NAV of Dynamic 10.17 to 13.11 13.11 to 13.05

Fund in FOCUS

NAV of Dynamic Floor Fund

10.17 to 13.11 13.11 to 13.05

ll h ’ ’ h ’ ’Last 2 Years Performance

Bullish – Jan’07 to Dec’07 Bearish – Dec’07 to Dec’08

% CAGR

Dynamic Floor Fund – Unique AdvantageDynamic Floor Fund – Unique AdvantageAvailable with Kotak Life 

Insurance – Head 

Capital Protection Returns

Start Plans

1. Goal Oriented : Child Education, Marriage and Start in Life Expense2 i k i i k d i G h2. Risk Appetite : Low Risk – Moderate Return. Protection + Growth3. Time Horizon : Advisable for Minimum Tenure of 10 Years 

Financial Independence..Financial Independence..

Thoughtful Planning

Stable Portfolio

Emergency Funds

Retirement Planning

Thoughtful Planning

FundsPlanning

Critical Ill

Other Investments

Financial Independence

IllnessInvestments

Disability Savings

Income Protection

EducationF d

g

Protection upon Death

Funds

Accident & Hospitalization

Sleep Better at NightWith

Right Financial Advise

P d BPrepared By,

Kaushal R. MandaliaAssociate Financial PlannerRisk Management & Insurance Planningkaushal@thefinancialplanners.inkaushal@thefinancialplanners.in