Financial planning is using your money to achieve your life goals.

Investing is an important part of the financial planning process, but it’s only one small part of the overall plan. The financial assets are the means by which you achieve your life goals. It is an on going process and changes over time as per your life evolves. A financial Plan must include Cash Flow Management, Real Estate, Debt Management, Education Planning, Career Planning, Investing, Retirement Planning, Insurance and Estate Planning.

Essentials of Financial Planning

• CASH FLOW MANAGEMENT

  How much is your monthly inflow?

  What are your expenses ?

  What are your savings?How much emergency liquidity you keep?

  Have you invested your money , if yes then what is the return

• REAL ESTATE

  Do you own your own house?

  Do you wish to own in another 5 years ?

  Home Loan requirement ?

  Down Payment plan buying your own house.

  Investment in secondary home for rental purpose..is it ideal?

  Loan against property?

• DEBT MANAGEMENT

  Have you made the right decision by taking loan ? What is the scenario of Interest rate going forward ?

  How much is your total monthly EMI ?

  Should you pay off the debt or invest and save to maintain liquidity ?

• EDUCATION PLANNING

  Do you plan to study further?

  What about your child’s education any loan facility available ?

  What about the education planning for your children?

  If both not then should you start saving for yourself.

• CAREER PLANNING

  What do you do for your livelihood and how much you earn ?

  What is your plan for future and your income potential ?

  Are you utilising the perks offered to you or not?

• INVESTMENTS

  Have you started saving ??

  What do you plan to do with your savings ?

  How can you grow the savings ?

  When will you reach the stage when money starts working for you ?

  Are you investing tax efficiently ?

  How much risk your portfolio should carry ?

  What are your Short term and long term needs?

• RETIREMENT PLANNING

  Have you arrived at a level when money starts working for you by following the financial plan ? OR

  The situation arises when you have retirement money in hand. Where to invest ?

  Should you be buying annuity to maintain your monthly inflow?

  Should you invest in Equities or Fixed Deposits ?

  Are your investments tax efficient ?

• INSURANCE

  Are you and your family covered enough ?

  What about post retirement Health planning ??

  Do you have emergency fund to Co Pay ?

  What all insurances you should be covered with ?

A financial plan should be made after considering all the above mentioned essential requirements in a persons life to lead to financial freedom in one’s life.

Tools for Financial Planning

• Investment Solutions

  Design your investment portfolio with the best in class investment products carefully selected to ensure diversification and the fact that they are specific to your growth needs:

  EQUITY

  Experience investing in equities for long term investment objective with: – 

  • Mutual Funds
    • Access over 2,500 Mutual Fund Schemes and Exchange Traded Funds
    • Proprietary research methodology used to recommend best investment options
  • Portfolio Management Schemes
    • Open architecture philosophy to ensure that clients have access to amongst best of the breed Portfolio Management Schemes
  • Structured Products
    • Equity linked debentures offered based on in house market views and your risk tolerance
    • Due diligence to ensure that only the best issuers are made available to you
  
  

  FIXED INCOME (LOW RISK INVESTMENTS WITH STEADY AND PREDICTABLE RETURNS )

  • Mutual funds :

    Investment /schemes available keeping in mind the time horizon

  • Deposits :

    AAA Housing finance companies deposits and AAA NBFC deposits

  • NCD ‘s :

    AAA/AA NCD

  • Bonds

  Investment Approach For Clients

  Before exploring investment strategies and planning, it is important to first gain an understanding of the individual and its needs. Basis this, the investment goals can be structured and the appropriate services can be employed to gather growth opportunities for your corpus.

  Understanding Investment needs

  The following aspects will help understand investment needs better:

  • RISK

    When a wealth plan is made, the first step is to assess your capacity for undertaking financial risk. The capacity for risk depends on your responsibilities, objectives, personality and many other variables.

    Risk and Your Needs

    Cognition of your risk capacity includes understanding your financial needs and expectations in specific detail. The following should add up to your overall investment goal:

    The following should add up to your overall investment goal:

    • Cash Flows – both in and out
    • Investment horizon for invested money
    • Objective or goals of the investment
    • Liquidity requirements

    An understanding of these dimensions is critical to form a view on the risk metric based on which investment decisions will be made.The reward in assuming higher risks lies in the possibility of generating higher returns. However, to know your ability and willingness to undertake financial risks, it is important to know your risk profile.

  • ASSET CLASSES (ASSET CLASS PERFORMANCE VARIES)

    Asset classes have fluctuating returns and correlations over different time horizons. No one asset class tends to outperform others consistently. Therefore, it is critical to diversify and constantly adapt your portfolio. Asset allocation is the major contributor to portfolio risk and return. Hence it is important to spread the asset across equity, debt, structured products, private equity, real estate and other alternates to build a portfolio that balances both risk and return well. Design your investment portfolio with the best in class investment products carefully selected to ensure diversification and the fact that they are specific to your growth needs:

    • Equity
    • Fixed Income
    • Alternates

    An understanding of these dimensions is critical to form a view on the risk metric based on which investment decisions will be made

    Types of Risk Profiles

    The reward in assuming higher risks lies in the possibility of generating higher returns. However, to know your ability and willingness to undertake financial risks, it is important to know your risk profile

  • PORTFOLIO

    Building the Portfolio

    Different products play different roles in portfolio construction. If returns are one side of the story, risk is the other. Balancing these is the key to a customized investor portfolio.

    Your Investor Profile

    The risks assumed in investments are dependent on your preferences and the returns calculated on your expectations. Given these factors, portfolios should be constructed such that they have the dynamism required to adapt to your profile and any changes to the same.