Business Standard Case Stuies

CASE STUDY
Business Standard analyses

one familys finances and
suggests a way forward
THE GEORGEs
Mathew (29), Father (63), Mother (60)
RESIDE IN
NET ANNUAL INCOME
RATING
Dahisar, nearMumbai
~7.80 lakh
4/10
>FAMILY PROFILE
Mathew is a software engineer with a leading company in
Mumbai. Originally from Kerala, he has been working in
Mumbai for three years. His parents live in their spacious house
in Thiruvananthapuram and are not really dependent on
Mathew for monthly expenses. Mathews father worked in the
Gulf for three decades and has saved enough for his retirement.
Still, Mathew sends a small amount to his parents every month.
He intends to move and settle in Bengaluru in a couple of years
from now. His immediate goal is marriage in the next one year.
Then, he wants to buy a house in Bengaluru and also start his
retirement planning simultaneously.
Basic expenses (~)
Household
House rent
Dependant parents
Insurance premium
Per month (~)

20,000
10,000
5,000
5,333
Annual (~)
2,40,000
1,20,000
60,000
64,000
40,333
4,84,000
Total
Monthly income: ~65,000
Net monthly surplus: ~24,667
>GOALS
MARRIAGE IN THE NEXT 1 YEAR Current value: Future value:
~6 lakh
~6.60 lakh
(2015) (Inflation 10%)
BUYING A FLAT IN BENGALURU Current value: Future value:
~62 lakh
~42 lakh
RETIREMENT PLANNING
(2045; Inflation: 7%; Life expectancy: 85 years)
Current annual
retirement expenses:
Future annual
expenses:
Corpus
required:
~3 lakh
~24.40 lakh
~4.93 crore
Assets
Savings account
Fixed deposits (FDs)
EPF
Equity funds
Total
Net worth
45,000
3,50,000
2,80,000
3,00,000
9,75,000
9,75,000
>FINDINGS
EMERGENCY FUND: Adequate amounts maintained in savings
account and fixed deposits for any contingency
LIFE INSURANCE: Mathew is covered for ~5 lakh through a
combination of endowment and Ulip (Unit-linked insurance
plan) plans. He is underinsured
HEALTH INSURANCE: Employer provided health cover of
~2 lakh. His parents have their own mediclaim cover of
~3 lakh each
INVESTMENTS: Though most investments are in debt, Mathew
has started investing in equity mutual funds over the past two
years. The present allocation is good, considering his goals
LIABILITIES: No liabilities at present
>RECOMMENDATIONS
EMERGENCYFUND: Apart from maintaining the present savings
account, he needs to maintain ~1 lakh of FD separately for
contingency
LIFE INSURANCE: Mathew needs an additional insurance cover of
~50 lakh, at present. A suitable term plan for 30 years will cost
~10,000 per annum
HEALTH INSURANCE: He should take an individual health cover of
~3 lakh sum assured, for which the premium will be around
~8,000. Since his parents are also healthy, he should increase
their existing cover to ~5 lakh. This will cost him an additional
premium of ~16,000
ACCIDENT INSURANCE: A personal accident policy of ~25 lakh, with
~7.5 lakh as TTD benefit, is recommended for Mathew. The

annual premium for this should be ~4,000 per annum
>PLANNING FOR GOALS

MARRIAGE IN THE NEXT 1 YEAR (2015) Mathew can use
~2.5 lakh from his FD and his father has decided to contribute
~2 lakh from his side for the wedding. For the balance amount,
he needs to do a recurring deposit (RD) of ~ 17,000 a month
Rate of return on RD: 7.5% post tax
BUYING A FLAT IN BENGALURU (2018) Mathew will only be

able to start saving for this goal after his marriage, as most of
his surplus will go towards his marriage. Even if he invests the
surplus of ~24,000 a month in short-term debt funds from
2015 onwards till 2018, he will be able to accumulate only
around ~10 lakh. His equity funds will have to be moved to
balanced, and debt funds gradually, which will fetch ~4 lakh.
That leaves a big gap of ~46 lakh, for which the equated
monthly instalment (EMI) will be ~49,500, which at this point
looks difficult. Mathew should revisit this goal after his
marriage, so that a clear understanding can be derived after
considering his spouses income, too
Rate of return: 10% in mutual funds portfolio for 4-year term,
8% in short-term debt funds
RETIREMENT PLANNING (2045) Mathew should have an EPF

corpus of ~2 crore at retirement, considering a modest five per
cent annual increase in his basic salary. That leaves a huge gap
of ~2.93 crore. To cover this, he needs to invest ~5,000 a month
in diversified equity funds. This looks achievable at this
juncture
Rate of return assumed: 8% in EPF, 14% in equity funds
Plan by Steven Fernandes, certified financial planner, chief planner,
Proficient Financial Planners
CASE STUDY
THE NAIRs
Rajeev (42), Sejal (40), Priyal (9)
RESIDE IN
NET ANNUAL INCOME
RATING
Thane
~37.20 lakh
8/10
>FAMILY PROFILE
Rajeev works at a senior level with a corporate law firm, while
his wife is a software engineer. They have created good real
estate assets in the past 10 years. The couple has not faced any
serious financial crisis so far, as they both come from financially
sound families. The sudden death of one of Rajeevs colleagues
has set him thinking of evaluating their financial situation. The
couple wants to ensure their loans are paid off in five years and
to focus on their daughters education. They also intend to
create a good corpus for her marriage and their own retirement
Basic expenses (~)
Household
Daughters education
Home loan -1
Home loan -2
Insurance premium
Per month (~)

80,000
10,000
70,800
43,600
21,000
Annual (~)
9,60,000
1,20,000
8,49,600
5,23,200
2,52,000
2,25,400
27,04,800
Total
Monthly income: ~3,10,000
>GOALS
PAYING OFF BOTH HOME LOANS
(2019) (Home loan interest 10.25%)
Present dues:
~85,00,000
DAUGHTERS EDUCATION
(2022 TO 2026) (Inflation 9%)
DAUGHTERS MARRIAGE
Current value: Future value:
~55 lakh
~25 lakh
~1.40 crore
~1.04 crore
RETIREMENT PLANNING
(2032; Inflation: 7%; Life expectancy: 85 years)
Current annual
Future annual
expenses:
Corpus
required:
~ 9.74 lakh
~32.92 lakh
~6.65 crore
Assets
~ Liabilities
Savings account
2,45,000 Home loan 1 45,00,000
6,00,000 Home loan 2 40,00,000
EPF
18,00,000
Equity funds
5,43,000
Self-occupied property 2,24,00,000
Rented out property-1 90,00,000
Rented out property-2 48,00,000
Total
3,93,88,000
85,00,000
Net worth
3,08,88,000
>FINDINGS
EMERGENCY FUND: Adequate funds maintained in both
savings account and FDs
LIFE INSURANCE: Rajeev is covered for ~1.30 crore through a
combination of term and Ulip (unit-linked insurance plan)
policies. He also enjoys a cover of ~2 crore from his company.
Sejal is covered for ~1.05 crore through term and endowment
policies
HEALTH INSURANCE: Family floater mediclaim cover of ~5 lakh
provided by Rajeev and Sejals employers separately. They
also have separate individual health covers of ~5 lakh
INVESTMENTS: The couple have created good assets so far but
there is a very high concentration of real estate in their
portfolio. The couple should focus on increasing their
proportion towards financial assets
LIABILITIES: Currently, paying a total equated monthly
instalment (EMI) of ~1,14,400 towards two home loans.
Total loan dues are ~85 lakh
>RECOMMENDATIONS
EMERGENCYFUND: Savings account balance and FDs can take care
of four months of expenses. This should be maintained
LIFE INSURANCE: Rajeev needs an additional insurance cover of
~1 crore, which should cost ~20,000 for a term insurance for
20 years. Sejal is adequately covered
HEALTH INSURANCE: They should take a top-up policy of ~15 lakh,
with a ~5-lakh deductible. This will cost them ~6,000 yearly
ACCIDENT INSURANCE: A personal accident policy of ~1.5 crore,
with ~15 lakh as TTD benefit, is recommended for Rajeev and

~50 lakh, with ~15 lakh TTD benefit, for Sejal. The premium for
this should be ~24,000 per annum
>PLANNING FOR GOALS

PAYING OFF BOTH HOME LOANS (2019) There is a good surplus
(~84,000 per month) and the couple can raise their respective
EMIs to ~96,000 and ~85,000. This will help them clear the
home loans by 2019. The rent on the second property, expected
from 2015 onwards, will also increase the surplus
Interest on home loan: 10.25%
DAUGHTERS EDUCATION (2022 TO 2026) The couple should

start invest ~53,000 a month in large-cap and balanced MFs.
After increasing their EMIs, they might not be able to invest the
above amount. They can start with ~20,000 a month now and
increase the investment gradually
Rate of return: 12% in mutual funds portfolio
DAUGHTERS MARRIAGE (2029) Need to save ~21,000 a month

in multi-cap funds. Currently, this is not possible due to
allocation of surplus for other goals. Once the additional rent
starts next year, that amount can be invested for this goal
Rate of return assumed: 12% on mutual funds portfolio
RETIREMENT PLANNING (2028): Rajeev and Sejal should have

an EPF corpus of ~2.15 crore at retirement, considering a
modest five per cent annual increase in their basic salary. Of
the three properties, they can continue holding two, one for
themselves and the second for rental income. The third
property sale will fetch ~5 crore at retirement. So, the
retirement goal can be comfortably reached
Rate of return assumed: 8% in EPF, 10% in property.
CASE STUDY
THE SINGHs
Manju (38), Neelam (11)
RESIDE IN
NET ANNUAL INCOME
RATING
Navi Mumbai
~10.20 lakh
5/10
>STATUS & GOALS

Manju Singh is a financially independent woman, who
recently got divorced from her husband. She stays in her
self -owned house with an 11-year daughter. Manju has
decided not to take any alimony benefits from her husband
and intends to fund her daughters educational and
marriage expenses on her own. Her marriage was a nonstarter from its early years and her smartest move was to buy
the home in her own name. Even her investments are in her
own name, with her daughter as nominee. She also intends
to start investing for her retirement, for which she is seeking
expert advice.
Basic expenses (~)
Household
Daughters education
Home loan
Insurance premium
Total
Per month (~)

30,000
5,000
13,080
2,083
50,163
Annual (~)
3,60,000
60,000
1,56,960
25,000
6,01,960
>GOALS
DAUGHTER'S EDUCATION
DAUGHTERS MARRIAGE (2028)
(2021 to 2025) (Inflation 10%)

(Present floating rate interest 10%)

~15 lakh
~33.60 lakh ~10 lakh
CLEARING HOME LOAN (2016)

(Present interest rate is 10.25%)
~38 lakh
Current dues loan:
~6 lakh
RETIREMENT PLANNING
(2036) (inflation 7%) (Life expectancy - 85 years)
Current annual retirement
Future annual
expenses (considering
expenses:
household expenses and
~16.40 lakh
insurance premiums):
Corpus
required:
~3.31 crore
~3.70 lakh
Assets
Savings account
85,000
2,50,000
EPF
2,34,000
Equity mutual funds
2,57,000
Self-occupied property 58,50,000
Total
66,76,000
Net worth
60,76,000
Liabilities
Home loan 6,00,000

Personal loan 2,75,000
6,00,000
>FINDINGS
EMERGENCY FUND: Good amount of funds maintained in liquid
form, mainly in savings account and FDs, which can take care
of about six months of expenses.
LIFE INSURANCE: Manju is covered for ~ 4 lakh, through
traditional insurance policies. She is highly underinsured.
HEALTH INSURANCE: Family floater health insurance of ~5 lakh.
INVESTMENTS: Investments are well diversified in both debt and
equity but lack a continuous investment of surpluses.
LIABILITIES: Servicing a home loan taken in 2008, with balance
dues of ~6 lakh.
>RECOMMENDATIONS
EMERGENCY FUND: The existing savings balance and FDs can be
maintained.
LIFE INSURANCE: Manju needs an additional insurance cover of
~75 lakh. A suitable term plan for 15 years is suggested, which

will cost ~15,000 per annum.
HEALTH INSURANCE: Manju should maintain the existing cover
and buy a top-up health insurance of ~10 lakh, with ~3 lakh
deductible. The premium for this will be ~4,000.
~5 lakh as TTD benefit, is recommended for Manju. The
premium for this should be ~ 3,500 per annum.
>PLANNING FOR GOALS

DAUGHTERS EDUCATION (2021 TO 2025): Need to save around
~12,000 per month in balanced mutual funds for this goal
Rate of return assumed 11% in balanced mutual funds
DAUGHTERS MARRIAGE (2028): Need to save ~9,000 a month

in the ratio of 70 per cent equity and 30 per cent gold in
mutual funds
Rate of return assumed 12% in equity and 9% in gold
CLEARING HOME LOAN (2016): Manju should increase her

home loan equated monthly instalment (EMI) to ~22,700,
which will ensure her loan gets over in 27 months.
Home loan interest rate: 10.25%
RETIREMENT PLANNING (2036): Manjus Employees' Provident

Fund (EPF) will fetch ~87 lakh at retirement, while her mutual
funds will be worth ~26 lakh. To bridge the shortfall, she will
need to invest ~20,000 per month in a 60:40 ratio in equity
and debt mutual funds. Once the home loan is over in 2017,
she will be able to invest the entire EMI saving for her
retirement goal, which should be comfortably achievable
Rate ofreturn assumed: 8% in EPFand 10% in mutual funds portfolio
Steven Fernandes, Certified Financial Planner
Chief Planner, Proficient Financial Planners.
CASE STUDY
THE GUPTAs
Nitin (46), Kavita (40), Somesh (8)
RESIDE IN
NET ANNUAL INCOME RATING
Mira Road, nearMumbai ~13.20 lakh
4/10
>STATUS & GOALS

Nitin Gupta is a store manager with a retail firm and his wife
works in the logistics department of a shipping firm. The
couples high spending habits have ensured huge credit card
bills to pay every month. In most cases, they end up paying
interest payments. They have taken a personal loan to clear
their credit card dues. With meagre savings, Nitin wants to set
his financials right. Their primary goal is to clear all their loans
so that they can focus on their sons education and their own
retirement. They also want to buy a 2-BHK flat in five years, if
financials permit.
Basic expenses (~)
Household
Son's education
Home loan
Personal Loan
Insurance premium
Total
Per month (~)

47,000
5,000
16,581
10,108
1,667
80,356
Annual (~)
5,64,000
60,000
1,98,972
1,21,296
20,000
9,64,268
>GOALS
Present outstanding loan:
PAYING OFF HOME LOAN
~9,80,000
(2018) (home loan interest 10.50%)
SON'S EDUCATION
SONS MARRIAGE
(2023 to2027) (inflation 9%)

(2033) (inflation 10%)

~14 lakh
~38 lakh
~5 lakh
~25.70 lakh
BUYING A 2-BHK FLAT
~63 lakh
~101 lakh
RETIREMENT PLANNING
Corpus
Current annual retirement Future annual
required:
expenses:
expenses:
~5.64 lakh
~14.54 lakh
Assets
Savings account
49,000
75,000
EPF
4,89,000
Equity mutual funds
3,16,000
Total
51,29,000
Net worth
38,74,000
~2.93 crore
Liabilities
Home loan 9,80,000

Personal loan 2,75,000
12,55,000
>FINDINGS
EMERGENCY FUND: Present savings account and FDs can meet
only 1.5 months of expenses in emergency. This is very low.
LIFE INSURANCE: Most of the policies of Nitin and Kavita have
lapsed. At present, Nitin has a ~4-lakh insurance cover, while
his wife doesnt have any life cover, which is dangerous.
provided by Nitin and Kavitas employers separately. They
dont have separate individual health covers.
INVESTMENTS: The investments are much less, considering their
age and income. The high equity investment in their portfolio
is due to forced saving in ELSS schemes for saving tax.
LIABILITIES: Paying a total EMI of ~26,689 towards home and
personal loans. Total loan dues are ~12.55 lakh.
>RECOMMENDATIONS
EMERGENCY FUND: Apart from maintaining the present savings
account balance and FDs, they should switch ~1 lakh from

their equity MFs to a liquid fund for contingency purposes.
LIFE INSURANCE: Nitin needs an additional insurance cover of
~1 crore, while Kavita should take a ~40-lakh cover. A suitable

term plan for 20 years, for both, will cost ~ 32,000 per annum.
HEALTH INSURANCE: They should take a family floater health policy
of ~5 lakh sum assured, with a premium of about ~15,000

~10 lakh as TTD benefit, is recommended for Nitin and ~25
lakh, with ~5 lakh TTD benefit, for Kavita. The annual
premium for this should be ~10,000 per annum.
>PLANNING FOR GOALS

PAYING OFF HOME LOAN (2018): Since personal loan is being
serviced at 13 per cent interest, it makes sense to pay off this
loan first. Nitin should pre-pay ~1 lakh (from MFs) so that the
loan gets over in 18 months. He should simultaneously
increase his home loan EMI to ~25,000. This will reduce his
tenure to four years and the couple can be free of debt by 2018
Interest on home loan: 10.5% and on personal loan: 13%
SON'S EDUCATION (2023-27): The couple should start investing

~13,000 per month in large-cap and balanced MFs
Rate of return: 12% in MFs portfolio
SON'S MARRIAGE (2033): Need to save ~3,000 a month in a

multi-cap fund
Rate of return assumed: 12% on MFs portfolio
BUYING A 2 BHK FLAT (2019): The existing flat, which will be

debt-free by 2018, will fetch ~68 lakh in 2019. Personal loan
EMI, which will get over in 18 months, can be invested in
short-term income funds for 42 months to fetch ~5 lakh.
Similarly, home loan EMI saving from 2018 can be invested in
an RD for one year to fetch ~3 lakh in 2019. There will still be a
shortfall of ~25 lakh, for which loan EMI will be ~35,000 per
month for 10 years. If lifestyle expenses are reduced and
consciously cashflow is managed month-on-month, it is
possible to save more and reduce the loan component.
RETIREMENT PLANNING (2028): The couple should have an EPF
corpus of ~40 lakh at retirement, considering a modest five
per cent rise in their basic salary. The 2BHK house purchase
will put a strain on saving for retirement. As the shortfall in
corpus of ~2.54 crore is huge, they will have to think through
their goal of buying the flat. They might have to work beyond
2028 and may also have to look at a reverse mortgage option.
Rate ofreturn assumed: 8% in EPF
CASE STUDY
THE PAGAREs
Yogesh (39), Sharda (38), Smriti (8)
RESIDE IN
NET ANNUAL INCOME RATING
Pune
~12 lakh
6/10
>STATUS & GOALS

Yogesh works as a manager with an information technology
company in Pune and his wife, Sharda, is a homemaker.
The couple stay in their own 2BHK flat, which they had
purchased six years ago with the help of a home loan. The
couple lead a very simple lifestyle but have big plans for
their daughters education. Considering the spiralling
inflation and job insecurity, Yogesh wants to assess his
present financial situation and would like guidance on how
to achieve his goals of daughters education, marriage and
his own retirement
Basic expenses (~)
Household
Home loan
Car loan
Daughters education
Insurance premium
Total
Per month (~)

31,000
17,137
8,500
5,000
5,750
67,387
Annual (~)
3,72,000
2,05,644
1,02,000
60,000
69,000
8,08,644
>GOALS
Present outstanding loan:
~8,00,000
DAUGHTERS EDUCATION
DAUGHTERS MARRIAGE
(2024 to2028) (inflation 9%)
~32 lakh
~95 lakh
~10 lakh
~56 lakh
RETIREMENT PLANNING
expenses:
Future annual
expenses:
Corpus
required:
~3.84 lakh
~17 lakh
~3.5 crore
Assets
Savings account
84,000
Fixed deposits
290,000
EPF
612,000
PPF
164,000
Equity mutual funds
536,000
Total
9,046,000
Net worth
7,971,000
Liabilities
Home loan
Car loan
800,000
275,000
1,075,000
>FINDINGS
EMERGENCY FUND: Sufficient money maintained for emergency
needs in savings account and fixed deposits (FDs)

LIFE INSURANCE: Yogesh has two insurance policies, a
combination of term and traditional policies, giving him a
cover of ~1.05 crore. Sharda has a small cover of ~2 lakh
HEALTH INSURANCE: Family floater mediclaim cover of ~3 lakh,
provided by Yogeshs employer, and a separate floater policy
for family of ~5 lakh, which is adequate
INVESTMENTS: The couple have saved well in the past few years
and equity allocation is good, considering the overall portfolio
LIABILITIES: Currently, paying a total equated monthly
instalment (EMI) of ~25,637 towards home and car loan. Total
loan dues are ~10.75 lakh
>RECOMMENDATIONS
EMERGENCY FUND: The present savings account balance can be
maintained and additionally ~1 lakh from the existing FDs

should be placed in a flexi FD account
LIFE INSURANCE: Yogesh needs an additional insurance cover of
~65 lakh. A suitable term plan for 20 years will cost ~13,000 per
annum. Insurance cover not suggested for Sharda
HEALTH INSURANCE: Currently, the health insurance cover is
adequate
~10 lakh as TTD benefit , is recommended for Yogesh. The
annual premium for this should be ~6,700 per annum
>PLANNING FOR GOALS

DAUGHTERS EDUCATION (2024 TO 2028) Allocate ~2 lakh from
the existing equity funds for this goal and start SIPs of ~24,000
in a mix of diversified equity and balanced funds for this goal
Rate of return assumed 12% on this portfolio
PAYING OFF HOME LOAN (2018)

Yogesh should increase his EMI to ~20,500, which will ensure
his loan dues get over in the next four years. Any bonus
payments received should be used to pre-pay a part of the
loan
DAUGHTERS MARRIAGE (2032)
Need to save ~5,000 per month in large-cap diversified
equity mutual funds and ~25,00 per month in gold
exchange-traded fund
Rate of return assumed on equity MF-12% and gold- 9%
RETIREMENT PLANNING (2035): Yogesh should have an EPF

corpus of ~93 lakh at the time of retirement, considering a
modest five per cent increase in his basic salary. His PPF and
equity mutual funds should give him ~11 lakh and ~40 lakh,
respectively, at the time of retirement, assuming a nominal
investment of ~50,000 per annum in PPF. To make up for the
shortfall, SIPs of ~ 15,500 per month are required to be
invested in a ratio of 70 per cent in equity mutual funds and
30 per cent in debt funds
Rate ofreturn assumed: 8% in EPFand PPF, 12% in equityfunds, 8% in
debtfunds
CASE STUDY
suggests a suitable way forward
THE DUTTs
Sarvesh (47), Kajal (38), Natasha (10), Vihan (6)
RESIDE IN
NET ANNUAL INCOME
RATING
Mumbai
~11.52 lakh
5/10
>FAMILY PROFILE
Sarvesh works with an IT firm, while his wife works for a
domestic aviation company. Their late marriage has put them
in a dilemma, as their childrens education will extend beyond
their employer-stipulated retirement age especially for
Sarvesh. Most of the family's savings were utilised for Sarvesh's
father's medical treatment till he died last year. The couple's
expenses are also on the higher side as they do not follow any
budgeting discipline. Even though the cashflow indicates a
surplus on paper, the actual expenses are higher due to which
the desired surplus is not there. As their kids are growing up,
they are contemplating buying a 2BHK house. Their priority is
childrens education and own retirement
Basic expenses (~)
Per month
Annual
Household
36,000
4,32,000
Childrens education
10,000
1,20,000
Insurance premium
9,833
1,18,000
Total
55,833
6,70,000
Monthly income: ~96,000Net monthly surplus: ~40,167
>GOALS
BUYING A FLAT (2017, Inflation 9%)
Current value: ~90 lakh
Future value: ~1.16 lakh
DAUGHTERS EDUCATION
SONS EDUCATION
(2023 - 2027, Inflation - 9%)
(2026 - 2030, Inflation - 9%)

Future value: ~44 lakh

Future value: ~56.5 lakh
RETIREMENT PLANNING
(2041, inflation 7%, Life expectancy - 85 years)
Current annual
retirement expenses
Future annual
expenses:
Corpus
required:
~3.32 lakh
~9 lakh
~1.82 crore
Assets
Self-occupied property
Fixed deposits
EPF
PPF
Savings account
Net worth
65,00,000
3,75,000
6,40,000
2,54,000
85,000
78,54,000
78,54,000
Liabilities
>PRESENT STATUS
EMERGENCY FUND: Sufficient money maintained in savings
account and fixed deposits for emergency purpose
LIFE INSURANCE: Sarvesh has a total insurance cover of ~14 lakh,
while Kajal has a cover of ~6 lakh through traditional and Ulip
insurance plans. Both are highly underinsured
HEALTH INSURANCE: Family is covered by employer-provided
group health cover of ~3 lakh, along with a separate family
floater of ~5 lakh
INVESTMENTS: Most are forced investments such as PF and PPF.
No equity exposure
LIABILITIES: No liabilities, which is a positive
>RECOMMENDATIONS
EMERGENCY FUND: Sarvesh should allocate 3 months of
expenses, around ~1.7 lakh, for contingency purpose.
Considering the present savings account balance of ~85,000,
a separate FD of ~90,000 needs to be maintained
LIFE INSURANCE: Sarvesh needs an insurance cover of ~80 lakh,
while Kajal needs to take a cover of ~25 lakh. Both need to buy a
term insurance plan for a period of 15 years which will cost ~25,000
p.a. Stop traditional plans which have more than 10 years to
maturity and use the premium saving to buy term insurance
HEALTH INSURANCE: They should buy a top-up health cover of
~10 lakh with a deductible of ~3 lakh. It will cost approximately
~7,000 p.a
ACCIDENT INSURANCE: A personal accident policy of ~50 lakh
with ~10 lakh as TTD benefit is recommended for Sarvesh.
Kajal should purchase a cover of ~25 lakh with ~5 lakh as TTD
benefit. The total premium for this should be ~10,000 p.a
>PLANNING
BUYING A FLAT (2017): From the existing surplus, SIP of ~15,000
should be allocated to short-term debt funds for 3 years. The
existing house should fetch ~84 lakh after 3 years. From
present FDs ~2 lakh can also be used. The balance shortfall of
~22 lakh can be in the form of a home loan for a period of 10
years which will result in an EMI outgo of ~29,685
Rate ofreturn assumed:8% on debt funds, 10.5% on home loan.
EDUCATIONAL FUNDING OF DAUGHTER (2023 - 2027): For this
goal, SIPs of ~15,000 needs to be invested in balanced funds
Rate of return assumed: 11% in balanced funds
EDUCATIONAL FUNDING OF SON: SIPs of ~12,000 are suggested
in a 80% equity and 20% debt MFs portfolio for this goal
Rate of return assumed: 12% on this portfolio
RETIREMENT PLANNING (2039):As the entire surplus will get
allocated for property and children's goals, Sarvesh will be able to
allocate surpluses towards retirement only from 2018 onwards.
Gradually, PPF investments should also be increased along with
rise in income. Expecting an allocation of ~50,000 a year in PPF (
from 2017 onwards) and continuity of job till retirement, their PPF
and EPF should fetch a corpus of ~17.6 lakh and ~36.4 lakh,
respectively. For the balance corpus ~32,000 needs to be invested
per month in a 70% equity and 30% debt portfolio which is
currently not possible. Home loan if not prepaid before
retirement can force the couple to go for a reverse mortgage
option. If the income does not rise at the rate of 10% (as expected
by the couple), hard decisions will have to be taken later on
whether children's post-graduation funds should be used for
retirement and take educational loan instead.
CASE STUDY
THE BHAGATs
Swaroop (42), Varsha (40), Nidhi (13), Varun (9)
RESIDE IN
NET ANNUAL INCOME
RATING
Mumbai
~22.44 lakh
5/10
>FAMILY PROFILE
Swaroop is a production manager of a mid-sized breweries firm,
with its corporate office in Mumbai. Varsha is a homemaker. In
spite of good income, the couple lacks financial discipline. The
monthly expenses are on the higher side and they are servicing a
huge home loan, taken three years ago for their self-occupied
property. The couple wants to close their home loan soon and
focus on their childrens education. Retirement is their last priority
Basic expenses (~)
Household
Home loan
Car loan
Childrens education
Insurance premium
Per month (~)

47,000
70,847
10,871
8,000
9,917
Annual (~)
5,64,000
8,50,164
1,30,452
96,000
1,19,000
1,46,635
17,59,616
Total
>GOALS
Present loan dues
(Home loan interest: 10.25%)
~60 lakh
SONS EDUCATION
(2019 to 2023) (Inflation 9%)
Current value:
Future value:
~44 lakh
~80 lakh

DAUGHTER'S EDUCATION
~1.22 crore
(2024 to 2028) (Inflation 9%) ~44 lakh
DAUGHTER'S MARRIAGE
Current value:
Future value:
~10 lakh
~46 lakh
RETIREMENT PLANNING (2037)

(Inflation: 7%; Life expectancy: 85 years)
Current annual
Future annual
expenses:
Corpus
required:
~5.64 lakh
~26.73 lakh
~4.51 crore
Assets
Savings account
3,49,000 Home loan
6,00,000 Car loan
EPF
4,67,000
Insurance cash value
6,54,000
Equity funds
14,00,000
Total
2,48,70,000
Net worth
1,83,70,000
60,00,000
5,00,000
65,00,000
>FINDINGS
EMERGENCY FUND: Adequate funds maintained in savings
account and FDs to meet any contingency
LIFE INSURANCE: Swaroop is covered for ~1.12 crore through a
combination of term and Ulip (unit-linked insurance plan)
policies and also enjoys a cover of ~50 lakh from his company.
Varsha is covered for ~3 lakh via endowment policies
provided by Swaroops employer. They also have a separate
family floater policy for a sum assured of ~10 lakh
INVESTMENTS: The present portfolio is well-balanced, with
equal weightage in debt and equity (primarily mutual funds)
LIABILITIES: Currently paying a total EMI of ~81,718 for both
home and car loans. Total loan dues are ~65 lakh
>RECOMMENDATIONS
EMERGENCYFUND: Current savings account balance and FDs can
take care of six months of expenses. Swaroop can maintain
~2 lakh in savings account and move the rest to FD. He can
maintain ~3 lakh overall in FDs for contingency purpose
LIFE INSURANCE: Swaroop needs an additional cover of ~1.5 crore,
which should cost ~30,000 for a term insurance for 20 years.
Varsha doesnt require further cover at this point
HEALTH INSURANCE: The present cover is adequate
ACCIDENT INSURANCE: A personal accident policy of ~1.5 crore,
with ~15 lakh as TTD benefit, is recommended for Swaroop. The

premium for this should be ~18,000 per annum
>PLANNING FOR GOALS

PAYING OFF HOME LOAN (2021) Use ~3 lakh from FD and ~2 lakh
from equity funds to pre-pay the car loan. This will enable a
monthly surplus of ~51,000. Stop a few small traditional and
ulip policies and use the surrender value of ~6.5 lakh for initial
pre-payment of home loan. Increase the EMI to ~92,000, which
will reduce the loan tenure to seven years. Also, utilise all
bonuses and incentives and it will enable loan closure by 2020
Interest on home loan: 10.25%
SONS EDUCATION (2019 TO 2023) The existing MFs should be

utilised. Further, the couple needs to invest ~47,000 a month
in balanced MFs. Currently, they can only allocate ~28,000 per
month for this goal
BUDGET: ~50 lakh to ~1 crore
Realty check
Business Standard brings you a snapshot of
average current rates and unit sizes in
localities that offer property in a price range
of ~50 lakh to ~1 crore. If you are looking at
buying real estate and your budget falls
within this range, an idea about prevailing
rates would come in handy
GURGAON
Sector 68 (Sohna Road)
Sector 103
Sector 95
Sector 37C
Avg price (~/sq ft)
Avg unit size (sq ft)
5,500-10,000
4,950-5,500
3,250-4,850
4,250-6,250
1,100-1,250
1,250-1,800
1,400-2,450
1,000-1,750
2,695-5,500
3,400-5,000
3,100-5,400
3,500-5,000
1,250-2,100
1,250-1,900
1,200-1,650
1,200-2,000
3,290-4,600
2,400-4,600
2,900-3,549
1,450-2,450
1,650-2,450
1,600-2,850
4,200-8,000
4,200-6,000
4,400-8,500
950-1550
1,000-1,500
1,100-1,500
KOLKATA
Rajarhat
EM ByPass(S.E.)
Jessore Road
Garia
HYDERABAD
Gachibowli
Manikonda
Chandanagar
PUNE
Wakad
Kharadi
Baner
Source: PropEquity
DAUGHTERS EDUCATION (2024 TO 2028) They need to invest

~39,000 a month in diversified equity MFs, not possible due to
allocation of surpluses for other goals. Annual increments
should be allocated for this. After the home loan gets over in
2020, a major part of the EMI saved should be invested for this
DAUGHTERS MARRIAGE (2031) Need to save ~8,000 a month in

multi-cap funds for this goal. Here, too, the investments can be
done post-2020, after the home loan gets over
Rate of return assumed: 12% on mutual funds portfolio
RETIREMENT PLANNING (2037) Swaroop should have an EPF

corpus of ~1.17 crore at retirement, considering a modest five per
cent annual increase in basic salary. For the shortfall, he needs
to invest ~27,000 a month, again not possible today. The couple
should take a fresh look at their expenses and try to reduce, if
possible, so some additional surplus can be created. Second, as
the salary increases on an annual basis, the additional
increments should be invested for retirement in a
70 per cent equity and 30 per cent debt MFs portfolio.
Rate of return assumed: 8% in EPF, 11% on mutual funds portfolio
CASE STUDY
THE KAPOORs
Rohit (47), Seema (45), Priyanka (17)
RESIDE IN
NET ANNUAL INCOME
RATING
Delhi
~31.80 lakh
6/10
>FAMILY PROFILE
Rohit is a professional business coach and trainer, while Seema
works in the accounts division of a public sector bank. Rohit has
his own office and staff. He has been in this business for the
past five years. Their daughter, Priyanka, is studying in the first
year of college. The couple are staying in a house they
purchased two years ago, with a ~80-lakh loan. Their priority is
to focus on Priyankas education, followed by prepayment of their
home loan. Rohit would like to work till he is fit and, hence, wants
to plan retirement at 65 years.
Basic expenses (~)
Household
Home loan
Daughters education
Insurance premium
Per month (~)

58,000
87,196
15,000
34,500
Annual (~)
6,96,000
10,46,352
1,80,000
4,14,000
1,94,696
23,36,352
Total
>GOALS
DAUGHTERS EDUCATION
(2016 to 2020) (Inflation 9%)
Current value:
Future value:
~45 lakh
~62 lakh
Present dues
~75 lakh
(Home loan interest: 10.25%)
DAUGHTERS MARRIAGE
Current value:
Future value:
~20 lakh
~47 lakh

(Inflation: 7%; life expectancy: 85 years)
Current annual
Future annual
value:
Corpus
required:
~7 lakh
~25.52 lakh
~4 crore
Assets
Liabilities
Savings account
6,49,000 Home loan
12,00,000
EPF
8,15,000
PPF
6,32,000
27,00,000
Equity funds
8,34,000
Equity shares
13,75,000
Commercial property
87,50,000
Total
3,83,55,000
Net worth
3,08,55,000
75,00,000
75,00,000
>FINDINGS
EMERGENCY FUND: Sufficient money maintained in savings
account and FDs
LIFE INSURANCE: Rohit has 18 insurance policies, mostly
traditional endowment and money-back policies, giving him
a cover of ~1.3 crore. Seema is covered for ~21 lakh through
traditional insurance policies. Their combined annual
premium is ~4.14 lakh
HEALTH INSURANCE: Rohits family is covered through Seemas
employer health insurance cover for ~3 lakh. They also have a
separate health insurance cover of ~5 lakh each
INVESTMENTS: The couple have created a good investment
portfolio, well balanced between equity and debt. They have
purchased insurance policies considering it to be investment,
where the yield is very low
LIABILITIES: Paying a total equated monthly instalment (EMI) of
~87,196 towards home loan. Present due amount is ~75 lakh.
>RECOMMENDATIONS
EMERGENCYFUND: The savings account balance can safely take
care of three months of emergency expenses. They should open
a flexi FD account to get the benefit of better interest on this
savings account balance
LIFE INSURANCE: Rohit needs an additional insurance cover of
~1.5 crore. A suitable term plan for 10 years will cost ~60,000 per
annum. Additional insurance cover not suggested for Seema
HEALTH INSURANCE: They should take a top-up health cover of
~15 lakh, with ~3 lakh as deductible. The premium for this will
be around ~7,000
ACCIDENT INSURANCE: A personal accident policy of ~1 crore, with
~15 lakh as TTD benefit, is recommended for Rohit. Seema

should take ~25 lakh of cover, with ~5 lakh as TTD. The
combined annual premium for this should be ~16,000.
>PLANNING FOR GOALS

DAUGHTERS EDUCATION (2016 TO 2020) The first three years
requirements can be funded from the FD maturities. For the
post-graduation expenses, Rohit needs to allocate ~10 lakh
from his equity funds and shares and invest ~50,000 a month
in mutual funds (MF), in a ratio of 50% equity and 50% debt
Rate of return assumed: 7% post-tax on FDs and 10.5% on the
mutual funds portfolio
PAYING OFF HOME LOAN (2020) Rohit should increase his EMI to
~1,07,000, which will reduce his loan tenure to nine years. Yearly
incremental income should be used to do part-payments, else
the goal of paying off the loan by 2020 wont be possible
DAUGHTER'S MARRIAGE (2024) Some of Rohit and Seemas

insurance policies are maturing in 2022 and 2024, amounting to
~ 15 lakh, which can be used. For the balance, ~16,000 needs to
be invested in balanced MFs, currently not possible. Once home
loan is paid in 2020-2021, the EMI savings can be invested
Rate of return assumed on balance MF-12%
RETIREMENT PLANNING (2033) Seemas EPF should be worth

~57.5 lakh at retirement. This can be invested further for seven
years in MFs (40 per cent equity and 60 per cent debt), to yield
~1.12 crore. The insurance maturities during that period amount
to ~1.5 crore. PPF, with an annual investment of ~50,000, will
yield ~40 lakh for Rohit at 65 years. The equity shares will be
worth ~1.07 crore if portfolio selection is right. The business assets
are not considered, as Rohit will still continue to work as desired
by him. The retirement goal can be comfortably achieved
Rate of return assumed: 8% in EPF, 11% on mutual funds portfolio
CASE STUDY
THE PRADHANs
Harsh (29), Manjiri (27)
RESIDE IN
NET ANNUAL INCOME
RATING
Pune
~10.68 lakh
5/10
>FAMILY PROFILE
Harsh works in the underwriting department of a private
insurance company, while his wife, Manjiri, is a secretary to the
managing director of an automobile ancillary company. The
couple recently got married and moved into a new house, which
Harsh had purchased during the under-construction stage three
years ago. The couple wants to plan for their coming childs
education and a bigger house, followed by retirement.
Basic expenses (~)
Household
Home loan
Personal loan
Insurance premium
Per month (~)

31,000
23,213
6,825
6,000
Annual (~)
3,72,000
2,78,561
81,900
72,000
67,038
8,04,461
Total
>GOALS
Current value:
CHILDS EDUCATIONAL
FUNDING (2032) (Inflation 10%) ~20 lakh
Future value:
~1.01 crore
FOREIGN VACATION (2017)
Current value:
Future value:
(Inflation 10%)
~2.50 lakh
~3.05 lakh
BUYING A 2-BHK FLAT

Current value:
Future value:
~63 lakh
~1.01 crore

(Inflation: 7%) (Life expectancy: 85 years)
Current annual
Future annual
expenses:
Corpus
required:
~3.72 lakh
~21.60 lakh
~5.01 crore
Assets
~ Liabilities
Savings account
69,000 Home loan 20,00,000
Fixed deposits
4,50,000 Personal loan 2,77,000
EPF
1,63,000
Equity mutual funds
1,15,000
Total
47,97,000
22,77,000
Net worth
25,20,000
>FINDINGS
account and fixed deposits for any short-term emergency
LIFE INSURANCE: Harsh is covered for ~50 lakh through a term
insurance, while his wife is covered for ~6 lakh through a unit
linked-insurance plan. Both are underinsured
HEALTH INSURANCE: Group health cover of ~3 lakh through
Harshs employer. They dont have any other health cover
INVESTMENTS: Small portfolio, considering they have just started
their married life
LIABILITIES: Servicing a home loan and a personal loan, with
total dues of ~22.77 lakh
>RECOMMENDATIONS
EMERGENCYFUND: Apart from maintaining the present savings
account, the couple needs to maintain ~50,000 in fixed
deposit (FD) and ~1 lakh in a liquid fund
LIFE INSURANCE: Harsh needs an additional insurance cover of
~30 lakh and Manjiri should take a cover of ~25 lakh. A suitable
term plan for 30 years will cost ~9,000 per annum
HEALTH INSURANCE: The couple should take a separate family
floater cover of ~3 lakh. Premium for this should be ~7,000
~5 lakh as TTD benefit, is recommended for both. The annual

premium for this should be ~8,000
>PLANNING FOR GOALS

CHILDS EDUCATIONAL FUNDING (2032) The couple needs to
invest ~11,000 per month in diversified equity large and multicap funds
Rate of return on this portfolio: 15% post tax
FOREIGN VACATION (2017) From the existing FDs, ~2.60 lakh

can be invested in short-term debt funds
BUYING A 2-BHK FLAT (2020) The couple's self-occupied

property will be worth ~64.42 lakh after five years. Home loan
dues will be ~16.40 lakh. Net receivables after sale will be ~48
lakh. Present income surplus of ~10,000 can be invested in
balanced funds to fetch a corpus of ~8 lakh. They will have to
take a home loan of ~45 lakh to cover the shortfall, for which
the equated monthly instalment will be ~50,000 per month
CHILDS MARRIAGE (2031) Need to save ~8,000 a month in

multi-cap funds. The investments can be done post-2020, after
the home loan gets over
Rate of return assumed: 12% in balanced mutual funds portfolio
RETIREMENT PLANNING (2045) Harsh should have an EPF

corpus of ~85.40 lakh at retirement, considering a modest
five per cent annual increase in his basic salary. That
leaves a huge gap of ~4.16 crore. To cover this, he needs to
invest ~32,000 per month in a 70 per cent equity and
30 per cent debt MFs portfolio. Currently, its not possible to
invest this amount on a monthly basis. As and when
incomes go up, the additional increments can be invested
for this goal
Rate of return assumed: 8% in EPF, 13% in mutual funds portfolio
CASE STUDY
THE SHUKLAs
Pratyush (44), Kajal (41), Kinjal (14), Pradeep (11)
RESIDE IN
NET ANNUAL INCOME
RATING
Thane
~24 lakh
7/10
>FAMILY PROFILE
Pratyush works as vice-president (finance) in a logistics firm near
Mumbai, while his wife, Kajal, is a homemaker. They have two
children. Pratyush has had a stable career over the past 15 years,
which has enabled him to buy two properties. The couple wants
to plan for their childrens education, followed by retirement.
Pratyush also wants to start his own consultancy but subject to
financials allowing him to do so.
Basic expenses (~)
Household
Home loan
Childrens education
Insurance premium
Per month (~)

61,000
60,797
11,000
9,167
Annual (~)
7,32,000
7,29,563
1,32,000
1,10,000
1,41,964
17,03,563
Total
>GOALS
DAUGHTERS EDUCATIONAL
FUNDING (2019 TO 2023)
(Inflation 10%)
SONS EDUCATIONAL
FUNDING (2023 TO 2027)
(Inflation 10%)
DAUGHTERS MARRIAGE
Current value:
Future value:
~20 lakh
~35 lakh
Current value:
Future value:
~20 lakh
~49 lakh
Current value:
Future value:
~10 lakh
~28.50 lakh

STARTING CONSULTANCY
~28 lakh
BUSINESS (2020) (Inflation: 7%) ~20 lakh

Current annual
Future annual
expenses:
Corpus
required:
~7.48 lakh
~22.08 lakh
~4.46 crore
Assets
~ Liabilities
Savings account
2,56,000 Home loan
Fixed deposits
8,00,000
EPF
9,34,000
Equity mutual funds
5,00,000
Shares
4,00,000
Invested property
81,00,000
Total
2,33,90,000
Net worth
1,83,90,000
50,00,000
50,00,000
>FINDINGS
account and fixed deposits (FDs) for any short- to mediumterm emergency
LIFE INSURANCE: Pratyush is covered for ~1.10 crore through a term
insurance and endowment plans, while Kajal is covered for
~3 lakh through an endowment plan. Pratyush is underinsured
HEALTH INSURANCE: Group health cover of ~5 lakh through
Pratyushs employer. Additionally, they have a ~10-lakh
floater cover for the family
INVESTMENTS: Diversified into property, equity and debt, with
major allocation to property. Need to increase allocation in
equity
LIABILITIES: : Currently servicing a home loan on second
property, whose present dues are ~50 lakh
>RECOMMENDATIONS
EMERGENCYFUND: Pratyush can maintain ~1 lakh in his savings
account and move the rest to a flexi FD account. He needs to
maintain additionally ~6 lakh for contingency, of which
~4 lakh can be maintained in liquid funds and the rest in FDs
LIFE INSURANCE: Pratyush needs an additional insurance cover of ~1
crore. A suitable term plan for 20 years will cost ~24,000 per annum
HEALTH INSURANCE: Present cover is adequate. They need to do
an annual review of health cover
~15 lakh as TTD benefit, is recommended for Pratyush. The
annual premium for this should be ~12,000
>PLANNING FOR GOALS

DAUGHTERS EDUCATIONAL FUNDING (2019 TO 2023) They
need to invest ~32,000 per month in balanced mutual funds
DAUGHTERS EDUCATIONAL FUNDING (2023 TO 2027) They

need to invest ~20,000 per month in large and multi-cap
mutual funds (MFs)
DAUGHTER'S MARRIAGE (2026) Need to invest ~10,000 per

month in multi-cap MFs. The rental income expected from a
few months from now can be used to invest for this goal
STARTING CONSULTANCY BUSINESS (2020) If Pratyush resigns

from his job in 2020, the retiral benefits receivable will be
around ~41 lakh, of which he can easily keep aside ~28 lakh
for his consultancy business
Retiral benefits considered: EPF and Gratuity
RETIREMENT PLANNING (2031) The invested property will be

worth ~3.7 crore at retirement, while shares and MFs will be
worth ~37.5 lakh and ~30.65 lakh, respectively. The
investment of the balance retiral benefits in balanced MFs
will also fetch him around ~40 lakh. Therefore, the retirement
goal can be easily met
Rate of return assumed: 8% in EPF, 12% in mutual funds, 15% in
shares, 10% in property
CASE STUDY
THE MISHRAs
Vrajesh (59), Kusum (52)
RESIDE IN
NET ANNUAL INCOME
RATING
Mumbai
~21.72 lakh
8/10
>FAMILY PROFILE
Vrajesh works as a technical director with a chemicals
manufacturing firm in Mumbai, while his wife, Kusum,
works as a senior accountant in a public sector bank. Their
two children are married and settled abroad. Due to his
technical expertise and years of experience, Vrajeshs
employer has requested him to continue till health permits.
He would like to get retired in the next six years when his
wife, too, retires.
Basic expenses (~)
Household
Insurance premium
Total
Per month (~)

68,000
9,333
77,333
Annual (~)
8,16,000
1,12,000
9,28,000
Monthly income: ~1,81,000 Net monthly surplus: ~1,03,667
>GOALS
HOUSE RENOVATION (2015)
RETIREMENT AT THE AGE OF 65 (2021)

Current annual
Future annual
expenses:
Corpus
required:
~8.16 lakh
~12.24 lakh
~2.06 crore
>FINDINGS
EMERGENCY FUND: Adequate funds maintained in fixed
deposits (FDs) and savings account to take care of any
contingency
LIFE INSURANCE: Vrajesh is covered for ~12 lakh through
unit-linked insurance plans (Ulips) and endowment
plans, while his wife is covered for ~3 lakh through
endowment plans
HEALTH INSURANCE: Group health cover of ~5 lakhs through
Vrajeshs employer and ~3 lakh through wifes public sector
bank. No other health policy
INVESTMENTS: Very good investment portfolio at this age. Well
diversified into equity and debt
LIABILITIES: No Liabilities
>RECOMMENDATIONS
EMERGENCY FUND: Vrajesh and his wife can continue to
maintain the present account balance
LIFE INSURANCE: Since the couple do not have any dependents
and as both are independent, no life insurance cover is
suggested
HEALTH INSURANCE: The couple should take an individual
health cover of ~5 lakh each. The premium for this should be
around ~18,000
~15 lakh as temporary total disability (TTD) benefit, is
recommended for Vrajesh. For his wife, a cover of ~10 lakh,
with ~5 lakh of TTD, is suggested. The annual premium for this
should be ~10,000
>PLANNING FOR GOALS

HOUSE RENOVATION (2015)Vrajesh can utilise the required
amount for this goal from his fixed deposits
Rate ofreturn on Fixed deposits: 6.5% post tax
RETIREMENT AT AGE 65 (2021) The Employees' Provident Fund

(EPF) corpus of the couple in 2021 will be around ~58.50 lakh,
while the gratuity benefits will be around ~18 lakh. Shares and
mutual funds will be around ~9 lakh and ~51 lakh,
respectively, considering they will invest ~85,000 per month
in a mutual funds portfolio of 50 per cent debt and 50 per cent
equity. The fixed deposits balance after spending on house
renovation can be reinvested and it will fetch them around
~36.47 lakh. The Public Provident Fund will be worth ~37.25
lakh, considering an annual investment of ~1.5 lakh.
Therefore, the couple can easily create the desired corpus
Rate ofreturn assumed: 8% in EPF& PPF, 11% in mutual funds,
15% in shares, 6.5% in FD's
CASE STUDY
DESAIs (48)
Pritam (48), Rashmi (46), Priya (17)
RESIDES IN
NET ANNUAL INCOME
RATING
Mumbai
~37.56 lakh
7/10
>FAMILY PROFILE
Pritam is a soft skills trainer and his wife is a homemaker.
Their only daughter, Priya, is studying in HSC. Pritam would
like to plan for his daughters post-graduation and
marriage. He also wants to work, as long as his health
permits, at least till he turns 65 years old.
Basic expenses (~)
Household
Daugthers college
Home loan EMI
Insurance premium
Per month (~)

85,000
15,000
1,01,201
26,583
Annual (~)
10,20,000
1,80,000
12,14,415
3,19,000
2,27,785
27,33,415
Total
>GOALS
DAUGHTERS POSTGRADUATION
(2018 -2019) (inflation 10%)
Future value:
Current value:
~13.31 lakh
~10 lakh
DAUGHTERS MARRIAGE
Current value:
Future value:
~20 lakh
~42.87 lakh
HOME LOAN REPAYMENT

Current dues: ~63 lakh
RETIREMENT AT AGE 65
(2032) (inflation 7%) (Life expectancy: 85 years)
expenses :
Future annual
expenses:
Corpus
required:
~10.41 lakh
~32.88 lakh
~5.54 crore
Assets
Self-occupied house
Savings account
PPF
Fixed deposits
Stocks/shares
Mutual funds
Net worth
2,15,00,000
2,15,000
13,26,000
14,35,000
7,54,000
18,75,000
2,71,05,000
2,08,05,000
Liabilities
Home loan 63,00,000
63,00,000
>FINDINGS
EMERGENCY FUND: Sufficient funds maintained in fixed
deposits (FDs) and savings account to take care of any
contingency
LIFE INSURANCE: Pritam is covered for ~1.5 crore through
various insurance plans, while his wife is covered for
~10 lakh through unit-linked insurance plan (Ulips).
Pritam is underinsured
HEALTH INSURANCE: Each member is covered for ~5 lakh through
individual mediclaim cover. Health cover needs to be enhanced
for the couple
INVESTMENTS: A very well-diversified portfolio, comprising an
equal weightage of debt and equity
LIABILITIES: Currently, servicing a home loan of ~75 lakh taken
three years earlier. Current dues are ~63 lakh
>SUGGESTIONS
EMERGENCYFUND: Pritam needs to open a flexi FD facility in his
bank and maintain ~6.8 lakh
LIFE INSURANCE: Pritam needs to take an additional life cover
of ~1.5 crore, for which the premium will be approximately
~60,000 for a term insurance policy. Wife doesnt need any
additional cover
HEALTH INSURANCE: The couple should take a super top-up
health cover of ~15 lakh, with a ~5-lakh deductible. The
premium for this should be around ~ 12,000
ACCIDENT INSURANCE: A personal accident policy of ~1 crore,
with ~15 lakh as TTD benefit, is recommended for Pritam .The

annual premium for this should be ~ 12,000
>PLANNING FOR GOALS

DAUGHTERS POSTGRADUATION (2018-19): Pritam needs to
invest ~10.56 lakh from FDs into accrual debt funds
Rate of return on debt funds: 8% post tax
DAUGHTERS MARRIAGE (2023): Need to invest ~28,000 per

month in balanced mutual funds
Rate of return on balanced funds: 11%
HOME LOAN PREPAYMENT (2020) : Some insurance maturities,

due in the next two-three years, can be used to reduce the
home loan dues. Any rise in income should be used to prepay
RETIREMENT AT AGE 65 (2032): The existing Public Provident
Fund will be worth ~1 crore at retirement, considering an
annual investment of ~1.5 lakh. The shares will be worth
~50 lakh and mutual funds will be ~1.21 crore. To cover the
shortfall, an additional investment of ~43,000 per month
needs to be invested in a ratio of 60 per cent equity and 40
per cent debt mutual funds portfolio
Rate of return assumed: 8% in PPF, 11% in mutual funds,
15% in shares.
CASE STUDY
RAOs
Shekhar (33), Madhura (31), Swara (5), Ashwin (1)
RESIDES IN
NET ANNUAL INCOME
RATING
Bengaluru
~11.76 lakh
6/10
>FAMILY PROFILE
Shekhar works as a marketing manager for a real estate
developer in Bengaluru. His wife, Madhura, is a homemaker.
Their first-born daughter is a special child and requires
continuous attendance, due to which Madhura quit her job.
Their second child is only a year old. The couple is concerned
about the future of their daughter and are seeking advice on
how to plan for her needs after they are not around . They
also want to plan for their sons higher education and their
own retirement.
Basic expenses (~)
Household
Daughters treatment
Home loan EMI
Insurance premium
Per month (~)

39,000
5,000
12,159
4,750
Annual (~)
4,68,000
60,000
1,45,913
57,000
60,909
7,30,913
Total
>GOALS
DAUGHTERS EXPENSES AND UPKEEP (2035) (inflation 8%)
~ 1.80 lakh ~ 5.70 lakh
Corpus required for funding the

expenses till her age of 65 years:
~ 1.75 crore
SONS HIGHER EDUCATION Current value:
~20 lakh
BUYING A 2BHK FLAT

(2020) (home loan interest 10%)
Future value:
~1.01 crore
Current value:
Future value:
~80 lakh
~1.01 crore
RETIREMENT AT AGE 60
expenses :
Future annual
expenses:
Corpus
required:
~4.89 lakh
~30.38 lakh
~6.13 crore
Assets
Self-occupied house
Savings account
EPF
Fixed deposits
Stocks/shares
Mutual funds
Net worth
51,00,000
1,35,000
3,65,000
1,25,000
1,24,000
3,15,000
61,64,000
56,18,000
Liabilities
Home loan
5,46,000
5,46,000
>FINDINGS
EMERGENCY FUND: Present savings account and fixed deposit
(FD) balance can take care of four months of expenses. Need

to increase the contingency fund
LIFE INSURANCE: Shekhar is covered for ~21 lakh through
various traditional and unit-linked insurance plans (Ulips),
while his wife is covered for ~5 lakh through ulips. Shekhar
is underinsured
HEALTH INSURANCE: Shekhar has taken a family floater mediclaim
policy for a sum assured of ~5 lakh, sufficient as of now
INVESTMENTS: Portfolio size is small, though well-diversified
LIABILITIES: Servicing a home loan of ~11 lakh, taken
six years ago. Current dues are ~5.5 lakh
>SUGGESTIONS
EMERGENCYFUND: Shekhar needs to shift ~1 lakh from equity
mutual funds (MFs) to short-term debt funds, to supplement
his present savings account and FD balance, and enable him
to maintain six months worth of expenses for contingency
LIFE INSURANCE: Shekhar needs to take an additional life cover
of ~2.2 crore for 30 years, for which the premium will be
approximately ~48,000 for an online term insurance policy.
Madhura doesnt need additional cover
HEALTH INSURANCE: The present health insurance cover is
adequate. It needs to be reviewed annually
ACCIDENT INSURANCE: A personal accident policy of ~50 lakh,
with ~10 lakh as TTD benefit, is recommended for Shekhar.

The premium should be ~9,000 per annum
>PLANNING FOR GOALS

DAUGHTERS EXPENSES AND UPKEEP (2035): The couple
needs to create a private trust which can take care of their
daughters expenses after they are no more. Considering
their daughters life expectancy of 65 years and the present
expenses of ~1.8 lakh a year, they will have to create a
corpus of ~1.75 crore over the next 20 years. They need to
invest ~18,000 per month in balanced MFs
Rate of return on balanced fund: 12%
SONS HIGHER EDUCATION (2032): Need to invest ~15,000 a

month in large-cap and balanced MFs
Rate of return on balanced funds: 12%
BUYING A 2BHK FLAT (2020): The couples existing flat will be

worth ~82 lakh after five years, considering a nominal growth
of 10 per cent in price. The shortfall for a 2BHK will be around
~47 lakh. As the entire surplus is going for childrens goals,
Shekhar needs to increase his income at least 10 per cent
annually to achieve this goal
RETIREMENT AT 60 (2042): The existing Employees' Provident
Fund amount will be worth ~1.87 crore at retirement,
considering a five per cent annual growth in income. The shares
will be worth ~54 lakh. To cover up the shortfall, a monthly
investment of ~15,000 needs to be done, in a 70 per cent equity
and 30 per cent debt MFs portfolio, not possible now
Rate of return assumed: 8% in EPF, 12% in MFs, 15% in shares
CASE STUDY
THE BASUs
Nandan (41), Sushmita (38), Siddharth (9)
RESIDE IN
NET ANNUAL INCOME
RATING
Pune
~25.56 lakh
8/10
>FAMILY PROFILE
Nandan works as a branch manager for a non-banking financial
company. His wife, Sushmita, is a senior officer in a public sector
bank. They have settled in Pune since 2007 and have created
good assets over 10 years. Their primary goal is to pay off their
home loan taken on a second property and also plan for their
sons foreign educational funding
Basic expenses (~)
Household
Sons education
Home loan EMI
Insurance premium
Total
Per month (~)

65,000
12,000
49,743
16,417
1,43,160
Annual (~)
7,80,000
1,44,000
5,96,915
1,97,000
17,17,915
>GOALS
SONS EDUCATIONAL
FUNDING (2023-2027)
(Inflation 10%)
Current value:
Future value:
~41 lakh
~1.11 crore
Current dues:
~20 lakh
(home loan rate 10.5%)
CONSTRUCTING HOLIDAY
HOME (2020) (Inflation 10%)
SONS MARRIAGE
(2032) (Inflation: 10%)
Current value:
Future value:
~25 lakh
~40.25 lakh
Current value:
Future value:
~15 lakh
~1.01 crore
RETIREMENT AT AGE 60 (2034)

Current annual
Future annual
expenses:
Corpus
required:
~8 lakh
~29 lakh
~5.85 crore
Assets
Savings Account
EPF
Fixed deposits
Stocks/shares
Mutual funds
Self-occupied house
Invested property-1
NA land
Total
Net worth
~ Liabilities
3,20,000 Home loan

12,34,000
8,00,000
9,13,000
18,34,000
1,10,00,000
85,00,000
17,50,000
2,63,51,000
2,21,51,000
42,00,000
42,00,000
>FINDINGS
EMERGENCY FUND: Present savings account and fixed deposit
balance can take care of eight months of expenses.

Contingency arrangements are adequate
LIFE INSURANCE: Nandan is covered for ~2.15 crore through
various term, unit-linked insurance plan (Ulip) and traditional
insurance plans, while Sushmita is covered for ~20 lakh through
Ulips and traditional plans. Both are adequately covered
HEALTH INSURANCE: Nandan and Sushmita have employer
group health cover of ~5 lakh and ~3 lakh, respectively.
Additionally, Nandan has taken a family floater mediclaim
policy for a sum assured of ~ 10 lakh, sufficient for now
INVESTMENTS: Portfolio is well-diversified in various asset classes
LIABILITIES: Servicing a home loan of ~45 lakh taken two years
earlier for the second property. Current dues are ~42 lakh
>RECOMMENDATIONS
EMERGENCYFUND: Nandan can maintain the present savings
account balance and convert it into a flexi FD account.
Additionally, ~2 lakh from FD can be maintained for contingency
LIFE INSURANCE: The couple is adequately covered
adequate. This cover can be reviewed after two years
ACCIDENT INSURANCE: A personal accident policy of ~1 crore for
Nandan, with ~15 lakh as TTD benefit, is recommended. For
Sushmita, ~50-lakh accident cover, with ~10 lakh as TTD benefit,
is suggested. The annual premium for this should be ~18,000
>PLANNING FOR GOALS

SONS EDUCATIONAL FUNDING (2023-2027) A monthly
investment of ~45,000 needs to be done. This amount can be
invested in large-cap and balanced mutual funds
Rate of return on large-cap and balanced funds: 12%
PAYING OFF HOME LOAN (2020) Equated monthly instalment

can be increased to ~70,000, which will reduce the tenure to
seven years. Annual bonuses can be used to pre-pay and close
the loan in the next five years
CONSTRUCTING HOLIDAY HOME (2020) The existing mutual
funds can be used. Additionally from the current FDs,
~4.50 lakh will need to be invested in balanced mutual
funds for this goal
Rate of return on balanced fund: 12%
SONS MARRIAGE (2032) The existing large-cap shares

portfolio can be used
Rate of return on shares: 15%
RETIREMENT AT AGE 60 (2034) The existing Employees

Provident Fund will be worth ~1.50 crore at retirement,
considering a five per cent annual growth in income. The second
property will be worth ~5.20 crore. The surplus income after
home loan payments are over from 2020 onwards can be used
to enhance this corpus by investing in balanced mutual funds
Rate of return assumed: 8% in EPF, 12% in mutual funds, 10%
in property
CASE STUDY
THE DIASes
Mark (48), Neil (15)
RESIDE IN
NET ANNUAL INCOME
RATING
Bengaluru
~13.44 lakh
7/10
>FAMILY PROFILE
Mark runs a small restaurant in Bengaluru. His wife died last year
after battling cancer for several years and his son, Neil, studies in
ninth standard. He wants Neil to pursue hotel management
and, therefore, wants to plan its funding. Mark also wants to
plan for his sons marriage and wants to hand over the
restaurant business to his son, when he turns 60 himself
Basic expenses (~)
Household
Sons education
Insurance premium
Total
Per month (~)

38,000
6,000
9,000
53,000
Annual (~)
4,56,000
72,000
1,08,000
6,36,000
>GOALS
SONS EDUCATIONAL
FUNDING (2018-2022)
(Inflation 10%)
SONS MARRIAGE
(2032) (Inflation: 10%)
Current value:
Future value:
~21 lakh
~41.92 lakh
Current value:
Future value:
~18 lakh
~46.68 lakh
RETIREMENT AT AGE 60 (2027)

Current annual
Future annual
expenses:
Corpus
required:
~4.72 lakh
~10.63 lakh
~2.14 crore
Assets
Savings account
PPF
Fixed deposits
Stocks/shares
Mutual funds
Self-occupied house
Restaurant premises
Total
Net worth
~ Liabilities
6,45,000
9,86,000
17,65,000
6,54,000
4,89,000
95,00,000
1,15,00,000
2,55,39,000
2,55,39,000
>FINDINGS
EMERGENCY FUND: High amount of liquidity maintained in the
form of savings bank account and fixed deposits (FDs)
LIFE INSURANCE: Mark is covered for ~18 lakh through various
traditional insurance plans, which is inadequate
HEALTH INSURANCE: Mark and Neil are covered for ~10 lakh and
~5 lakh, respectively through individual health plans
INVESTMENTS: Portfolio is well-diversified in various asset
classes, with an allocation of 30 per cent to equity and the rest
into debt
LIABILITIES: No liabilities
>RECOMMENDATIONS
EMERGENCY FUND: Mark can maintain ~3 lakh in the present
savings account balance and convert it into a flexi FD account.
The rest can be invested for his sons education
LIFE INSURANCE: Mark needs to take a term insurance of ~50 lakh
for 15 years. The annual premium for this will be around
~20,000
adequate. He also needs to do a yearly medical test
ACCIDENT INSURANCE: A personal accident policy of ~25 lakh for
Mark, with ~7.5 lakh as temporary total disability benefit, is
recommended. The annual premium for this should be ~4,000
>PLANNING FOR GOALS

SONS EDUCATION (2018-2022) From the existing FDs and
savings account, ~11 lakh can be invested in a combination of
short-term debt funds and balanced mutual funds (MFs), in a
ratio of 40 per cent debt and 60 per cent equity. Additionally,
~22,000 needs to be invested every month as a systematic
investment plan (SIP) in balanced MFs for this goal
Rate ofreturn on this portfolio: 11%
SONS MARRIAGE (2025) Monthly SIPs of ~20,000 need to be

invested in large-cap MFs
Rate ofreturn on large cap funds: 12%
RETIREMENT AT AGE 60 (2034) The existing Public Provident

Fund (PPF) will be worth ~53 lakh at retirement, considering an
annual investment of ~1.5 lakh. The existing MFs and shares
will be worth ~19 lakh and ~35 lakh, respectively. The ~10-lakh
FD will be worth ~32 lakh at retirement. To make up the
shortfall, an additional ~23,000 needs to be invested in MFs, in
a ratio of 60 per cent equity and 40 per cent debt. Currently,
~17,000 can be invested for this goal. With an expected income
growth of 10 per cent, the additional surplus can be used to
invest for this goal
Rate ofreturn assumed: 6% in FDs posttax, 8% in PPF, 12% in
mutual funds, 15% in shares
CASE STUDY
THE GERAs
Aneesh (52), Harshada (51), Ankur (25)
RESIDE IN
NET ANNUAL INCOME
RATING
Bandra (Mumbai)
~3 lakh
6/10
>FAMILY PROFILE
Aneesh took VRS (voluntary retirement scheme) from his
company recently, as he wanted to follow his passion of
travelling and adventure camps. He is now working with a
friend who runs an established adventure tours company.
Aneeshs wife, Harshada, is a homemaker and his son,
Ankur, is working in a software company in Pune. Currently,
the income from the new company is not adequate to meet
his monthly requirements; the funds he received from VRS
need to be deployed in the right assets to ensure financial
security and good retirement.
Basic expenses (~)
Household
Insurance premium
Total
Per month (~)

32,000
2,833
34,833
Annual (~)
3,84,000
34,000
4,18,000
Net monthly surplus: ~-9,833
>GOALS
ANKURS
MARRIAGE
ONE MAJOR VACATION

EACH YEAR WITH SPOUSE
(2016) - Inflation 10%

Inflation 10%
Current value:
~10 lakh
~1 lakh
~11 lakh
RETIREMENT PLANNING
(2023, inflation 7%, Life expectancy - 85 years)
Current annual
Future annual
expenses:
Corpus
required:
~ 3.84 lakh
~6.59 lakh
~1.33 crore
Assets
Savings account
PPF
Fixed deposits
Stocks/shares
Mutual funds
Self-occupied house
Net worth
47,35,000
9,86,000
17,65,000
2,35,000
6,43,000
3,20,00,000
4,03,64,000
4,03,64,000
Liabilities
>FINDINGS
EMERGENCY FUND: Large funds from VRS benefit have been
maintained in a savings account. Aneesh should move out
most of it to earn better returns and invest ~13 lakh in fixed
deposits to earn monthly income, which can take care of his
temporary monthly deficit
LIFE INSURANCE: Aneesh has a total insurance cover of ~7 lakh,
while Harshada is covered for ~3 lakh from traditional
insurance plans
HEALTH INSURANCE: Since he earlier had employer health
insurance cover, Aneesh never purchased a health insurance
cover for the family. Currently, they are without any health
cover
INVESTMENTS: A good investment corpus has been created so far
but major investments are in debt
LIABILITIES: No loans
>RECOMMENDATIONS
EMERGENCYFUND: Aneesh needs to maintain ~1 lakh in a joint
savings account and another ~2 lakh in a flexi FD for any
contingency
LIFE INSURANCE: Currently, both Aneesh and Harshada do not
require any life cover
HEALTH INSURANCE: Aneesh needs to purchase a ~5-lakh
health cover for each of them. The annual premium for this
will be ~14,000. Subsequently, he needs to take a top-up
health plan of ~10 lakh, with a deductible of ~3 lakh each. The
premium for this will be ~7,000
>PLANNING FOR GOALS

ANKURS MARRIAGE (2016) : From the existing FDs, the
amount for marriage can be easily managed
Rate of return expected: 7% post tax in fixed deposits loan
ONE MAJOR VACATION EACH YEAR WITH SPOUSE : Aneesh
needs to invest ~8 lakh from his VRS funds in short-term
debt funds and keep withdrawing ~1 lakh at the end of the
year for vacation requirements. Aneeshs retirement corpus
will enable him to go for a vacation every year
Rate of return assumed : 10%
RETIREMENT PLANNING (2042): The existing Public Provident
Fund will be worth ~20 lakh at the time of retirement,
assuming an annual investment of ~25,000, and shares and
mutual funds will be worth ~7 lakh and ~16 lakh, respectively.
For the balance retirement corpus, ~7 lakh from the existing
FD and ~28 lakh from VRS funds (currently in savings account)
should be invested in balanced mutual funds
Rate of return assumed: 8% in PPF, 11% in balanced mutual
funds, 15% in shares
CASE STUDY
THE PINTOs
Kenneth (39), Anita (39), Ajay (5)
RESIDE IN
NET ANNUAL INCOME
RATING
Vasai, near Mumbai
~16.80 lakh
4/10
>FAMILY PROFILE
Kenneth works as a cook on an international cruise liner for
seven months in a year.His wife, Anita, is a homemaker. Due
to good inflows, the couple had never focused on saving and
investments. Even after 12 years of service, Kenneth has not
been able to create a sizable amount of assets. Having realised
this of late, the couple wants to put their finances in order and
plan for future needs better
Basic expenses (~)
Household
Home loan
Childs education
Insurance premium
Total
Per month (~)

47,000
29,014
9,000
5,500
90,514
Annual (~)
5,64,000
3,48,172
1,08,000
66,000
10,86,172
>GOALS
AJAYS EDUCATIONAL
FUNDING (2028 - 2032)

(2020)
(Inflation 10%)
(Inflation 10%)
Current value:
~25 lakh
~25 lakh
~1.09 crore
BUYING A HOLIDAY HOME Current value:

~35 lakh
Future value:
~56 lakh

(Inflation 7%, Life expectancy 85 years)
Current annual
Future annual
expenses:
Corpus
required:
~ 5.64 lakh
~11.87 lakh
~3.09 crore
Assets
Savings account
Fixed deposits
Stocks/shares
Mutual funds
Self-occupied house
Net worth
3,43,000
8,50,000
45,000
3,50,000
60,00,000
75,88,000
50,88,000
Liabilities
Home loan
25,00,000
25,00,000
>FINDINGS
EMERGENCY FUND: Nearly four months of expenses
maintained in savings account, which is adequate
LIFE INSURANCE: Kenneth has a total insurance cover of
~13 lakh, while Anita is covered for ~2 lakh from traditional
and unit-linked insurance plans (Ulips). Kenneth is
underinsured
HEALTH INSURANCE: The family is not covered by any health
insurance policy
INVESTMENTS: Nearly 70 per cent of investments are in debt,
while 30 per cent is in equity. Need to increase equity exposure
LIABILITIES: The couple is servicing a home loan, with ~25 lakh
due and the balance tenure is 12 years
>RECOMMENDATIONS
EMERGENCYFUND: Kenneth needs to maintain ~1 lakh in a joint
savings account and the rest can be moved to a flexi fixed
deposit (FD) account
LIFE INSURANCE: Kenneth needs to take a cover of ~2 crore. He
should take an online term insurance for a 20-year term,
which will cost him ~50,000 annually. Anita does not need
additional cover
HEALTH INSURANCE: Kenneth should purchase a family floater
mediclaim for a sum assured of ~5 lakh and supplement it
with a top-up cover of ~10 lakh. The premium for this will be
~18,000
>PLANNING FOR GOALS

AJAY'S EDUCATIONALPLANNING (2028 - 2032):Kenneth needs
to invest ~21,000 per month in large-caps and balanced funds
Rate of return expected: 12% post tax on this mutual fund
(MF) portfolio
PAYING OFF HOME LOAN (2020): The couple should make a
prepayment of ~5 lakh from the FDs maturing this year. They
should also reduce the term of the loan to five years, which
will result in increase of their equated monthly instalment
to ~42,500, which is manageable
Home loan rate considered: 10%
BUYING A HOLIDAY HOME (2020): The remaining surplus of
~16,000 on investment for five years in balanced MFs will
fetch ~18.60 lakh, including the future value of the existing
MFs. This is way short of the targeted amount. Kenneth will
have to take a loan for the balance amount, which will
affect his early retirement plans
RETIREMENT PLANNING (2026): Assuming he does not go for
his holiday home, the surplus of ~16,000 can be invested in
MFs, fetching him ~24 lakh, including the existing MF
portfolio. The EMI savings after loan repayment can be
invested in balanced MFs for the next six years till
retirement, to fetch him a corpus of ~45 lakh. There will still
be a huge shortage. Kenneth will have to increase his
retirement age or increase his income and investments if he
wants to retire early
Rate of return assumed: 12% in mutual funds portfolio
CASE STUDY
THE SINGHs
Pranay (39), Vanita (38), Pushkar (12)
RESIDE IN
NET ANNUAL INCOME
RATING
Navi Mumbai
~13.80 lakh
7/10
>FAMILY PROFILE
Pranay works as a manager - HR with a plastics manufacturing
company. His wife is a homemaker and they have a son,
Pushkar, currently in seventh standard. The couple have been
prudent with cash flow management and investments, and
have been able to create decent investments. The couples first
priority is to pay-off their home loan and create an
educational corpus for their sons higher studies. Their final
priority is planning for retirement.
Basic expenses (~)
Household
Sons education
Home loan EMI
Insurance premium
Total
Per month (~)

39,000
5,000
27,635
5,800
77,435
Annual (~)
4,68,000
60,000
3,31,620
69,600
9,29,220
>GOALS
SONS GRADUATION
(2020 TO 2022) (Inflation 10%)
~8 lakh
~14 lakh
HOME LOAN PREPAYMENT

SONS POSTGRADUATION
(2023 TO 2024) (Inflation 10%)
~12 lakh
~25.70 lakh
Current dues:
~23.5 lakh

(Inflation 7%, Life expectancy 85 years)
Future annual
expenses:
~17.36 lakh
mediclaim premiums):
Corpus
required:
~3.6 crore
~ 4.80 lakh
Assets
Self-occupied house
Savings account
EPF
Fixed deposits
Equity mutual funds
Net worth
1,15,00,000
1,45,000
8,34,000
4,35,000
12,35,000
1,41,49,000
1,17,99,000
Liabilities
Home loan
23,50,000
23,50,000
>FINDINGS
EMERGENCY FUND: Adequate amount maintained in liquid
form mainly in savings account and fixed deposits
LIFE INSURANCE: Pranay is covered for ~50 lakh through term
insurance and traditional insurance plans, which is not
adequate. Vanita has an insurance cover of ~5 lakh
HEALTH INSURANCE: Employer-provided ~3 lakh cover and a
separate family floater health insurance of ~5 lakh
INVESTMENTS: Very well-diversified portfolio with equal
allocation to debt and equity
LIABILITIES: There are home loan dues of ~23.5 lakh, with a
balance term of 14 years
>RECOMMENDATIONS
EMERGENCYFUND: Apart from the existing balance in savings
account, a separate flexi FD of ~1 lakh (out of total FDs) can be
maintained in savings account
LIFE INSURANCE: Pranay needs an additional insurance cover
of ~1 crore. A suitable term plan for 20 years tenure will cost
~20,000 p a. Vanita does not need any additional insurance
HEALTH INSURANCE: The present cover is adequate and can be
increased later
ACCIDENT INSURANCE: The present cover is adequate and can be
increased later
>PLANNING FOR GOALS

SONS GRADUATION:Pranay should allocate ~5 lakh from
equity mutual funds into balanced mutual funds and also
start SIPs of ~6,000 in the same funds for this goal
Rate of return assumed: 11% in balanced mutual funds
SONS POSTGRADUATION: Need to invest ~16,000 per month
in large and multi-cap funds for this goal
Rate of return assumed 12% on this portfolio
PREPAYING HOME LOAN IN 5 YEARS TIME: Pranay should
reduce the term of his home loan to seven years, which will
entail an EMI of ~40,000, which can be comfortably serviced
due to good surplus. Annual bonuses can then be used to
prepay the loan within five years
Present home loan interest rate : 10.5%
RETIREMENT PLANNING (2031): Pranays EPF will fetch him
~1.80 crore at retirement while his equity mutual funds will
generate ~.54 lakh. To bridge the shortfall, he will need to
invest ~13,500 in a 70:30 ratio in equity and debt mutual
funds. At present, after allocating funds for other goals, any
further allocation for this is not possible. Once the home loan
is fully paid, the resulting saving of EMIs can be diverted for
this goal.
Rate of return assumed: 8% in EPF and debt funds, 12%
in equity mutual funds
CASE STUDY
NAIRs
Padma (38), Avinash (38), Vidya (10)
RESIDE IN
NET ANNUAL INCOME
RATING
Dombivli, Mumbai
~12.60 lakh
6/10
>STATUS & GOALS

Padma works in the accounts department of an Information
technology company, while her husband is a freelance web
designer operating from home. Their daughter, Vidya, is
hearing impaired from birth and attends a special school.
The couple wants to buy a 2BHK apartment and plan for
their daughters educational goal. Retirement is their last
priority.
Basic expenses (~)
Household
Insurance premium
Home loan
Daughters expenses
Total
Per month (~)

37,000
2,583
5,527
7,000
52,110
Annual (~)
4,44,000
31,000
66,324
84,000
6,25,324
>GOALS
DAUGHTERS COLLEGE &
POSTGRADUATION
(2023-2027) - Inflation 10%
~15 lakh
~41 lakh
DAUGHTERS MARRIAGE
~7.5 lakh
~31 lakh
RETIREMENT PLANNING
(2035, Inflation 7%, Life expectancy - 85 years)
Current annual
Future annual
expenses:
Corpus
required:
~4.44 lakh
~15 lakh
~3. 68 crore
Assets
Savings account
Fixed deposits
PF
Mutual funds
Self-occupied house
Net worth
8,95,000
3,24,000
3,46,000
85,000
4,20,00,00
5,85,00,00
56,12,000
Liabilities
Home loan
2,38,000
2,38,000
>FINDINGS
EMERGENCY FUND: A huge amount is maintained in savings
account for payment towards a new house

LIFE INSURANCE: Padma has a total insurance cover of ~7 lakh,
while Avinash is covered for ~2 lakh from traditional

insurance plans
HEALTH INSURANCE: The family is covered by Padmas employer
group mediclaim cover of ~3 lakh
INVESTMENTS: Nearly 90 per cent of investments are in debt
instruments, with a small allocation to equity. After buying a
2BHK flat, investments in equity can be gradually started for
long-term goals
LIABILITIES: The couple have a home loan liability of ~2.38 lakh
on their existing house
>RECOMMENDATIONS
EMERGENCY FUND: The couple can maintain the savings bank
amount for the time being. After purchase of the house,
~1.5 lakh to be maintained in a joint bank account for
emergency
LIFE INSURANCE:Considering the expense replacement
method, Padma needs to take a term insurance cover of
~1 crore, while Avinash should take a term cover of ~50 lakh. The
total annual premium will be ~25,000 for online term plans
HEALTH INSURANCE: Padma should apply for a family floater
health policy of ~5 lakh . The annual premium for this will be
~12,000
>PLANNING FOR GOALS

BUYING A 2BHK: Their existing flat will fetch them ~42 lakh.
They need to utilise ~8.5 lakh from their savings and FD
accounts for prepayment of their existing loan and new house
purchase. They will have to take a loan of ~8 lakh for five
years. The equated monthly instalment will be ~17,917. Home
loan rate considered at 10.25 per cent
DAUGHTERS COLLEGE AND POSTGRADUATION: The couple
needs to invest ~16,500 in balanced mutual funds. Rate of
return assumed at 12 per cent in balanced mutual funds
DAUGHTERS MARRIAGE (2030): ~6,000 needs to be invested
in large-cap funds
RETIREMENT PLANNING (2035): Padmas existing employees
provident fund (EPF) will be worth ~80.75 lakh at retirement.
Her existing mutual funds will be worth ~8.20 lakh. For the
shortfall, ~32,000 needs to be invested in a mutual funds
portfolio, with 60 per cent in equity and 40 per cent in debt,
currently not possible due to other goals. When the home
loan gets paid off, after five years, the resulting saving of EMIs
can then be invested for retirement
Rate of return assumed: 12% in mutual funds portfolio,
8.5% in EPF.
CASE STUDY
JOSHIs
Sujay (37), Pratibha (35), Shalini (6),Priyal (3)
RESIDE IN
NET ANNUAL INCOME
RATING
Panvel, Mumbai
~9.60 lakh
5/10
>STATUS & GOALS

Sujay is a systems design engineer in an information
technology infrastructure company. His wife, Pratibha, is a
homemaker but intends to start working in the next one
year, after a gap of three years. The couple, with their
parents assistance, had purchased their self-occupied
property seven years ago. They are planning to buy a bigger
house. They also want to plan their daughters education
and marriage
Basic expenses (~)
Household
Insurance premium
Childrens education
Total
Per month (~)

39,000
8,167
6,000
53,167
Annual (~)
4,68,000
98,000
72,000
6,38,000
>GOALS
SHALINIS COLLEGE &
POST-GRADUATION
PRIYAL'S COLLEGE &

POST-GRADUATION
(2027-2031) - Inflation 10%

(2030-2034) - Inflation 10%

~15 lakh
~60 lakh
~80 lakh
~15 lakh
SHALINI AND PRIYALS

MARRIAGE
BUYING A 2BHK
(2015)
(2034 & 2037 ) - Inflation 10%
(2034 & 2037 ) - Inflation 10%
~10 lakh
~71 lakh
Current value:
~52 lakh
RETIREMENT PLANNING
Current annual
Future annual
expenses:
Corpus
required:
~4.68 lakh
~22.18 lakh
~4. 48 crore
Assets
Savings account
Fixed deposits
EPF
Mutual funds
Self-occupied house
Net worth
65,000
4,25,000
2,56,000
4,48,000
39,00,000
50,94,000
50,94,000
Liabilities
Home loan
>FINDINGS
EMERGENCY FUND: Good amount maintained in savings
account and fixed deposits (FDs) to take care of any
near-term emergency.
LIFE INSURANCE: Sujay has a total insurance cover of ~40
lakh, while Pratibha is covered for ~5 lakh from traditional
insurance plans. Some traditional policies need to be
surrendered.
HEALTH INSURANCE: The family is covered by Sujays
employer group mediclaim cover of ~3 lakh. They also have
a separate family health floater cover of ~5 lakh.
INVESTMENTS: Good balance of debt and equity
investments
LIABILITIES: They dont have any liabilities as of now .
>RECOMMENDATIONS
EMERGENCY FUND: The couple can maintain the savings bank
amount for now. Additionally, they need to maintain a

separate flexi FD of ~85,000 for an emergency.
LIFE INSURANCE: Sujay needs a term insurance cover of
~1.20 crore, while Pratibha does not need any additional life
cover at present. A suitable online term insurance for Sujay
will cost ~22,000.
HEALTH INSURANCE: The present cover is adequate. They
should review the health cover every two years.
>PLANNING FOR GOALS

BUYING A 2BHK (2015): Their existing flat will fetch them
~39 lakh. They should utilise ~5 lakh from FD and mutual
funds and take a loan of ~8 lakh. The equated monthly
instalment for 10 years will be ~10,572 and can be easily
serviced.
Home loan rate considered: 10%.
SHALINIS COLLEGE & POST-GRADUATION (2027-2031): The
couple needs to invest ~13,000 a month in large-cap mutual
funds.
Rate of return assumed: 13% in large-cap mutual funds
PRIYALS COLLEGE & POST-GRADUATION (2030-2034): The
couple needs to invest ~11,000 a month in multicap mutual
funds
Rate of return assumed: 13% in multicap mutual funds
SHALINI AND PRIYALS MARRIAGE (2034 & 2037): ~6,500 a
month needs to be invested in balanced mutual funds,
presently not possible due to utilisation of surpluses for
other goals
RETIREMENT PLANNING (2038): Sujays existing Employees'
Provident Fund (EPF) will be worth ~1.04 crore at retirement,
assuming he works till 60 years. To achieve the balance
corpus, he needs to invest ~22,000 a month in mutual funds
in equity and debt at a ratio of of 70 per cent and 30 per cent,
respectively. This is not possible at present. Any annual
bonuses or salary increments should be used to invest for
CASE STUDY
PAIs
Krishna (52), Lekha (50), Komal (15)
RESIDE IN
NET ANNUAL INCOME
RATING
Andheri, Mumbai
~32.28 lakh
9/10
>STATUS & GOALS

Krishna is an electrical contractor and runs a successful
business in Mumbai, while wife Lekha works in a public
sector bank. Komal, their only daughter, is currently
studying in the 10th standard. Good income, coupled with
financial discipline, has enabled the family to create good
investment assets over the years. The couple's primary goal
is to fund the educational needs of their daughter, followed
by her marriage.
Basic expenses (~)
Household
Insurance premium
Daughters education
Total
Per month (~)

84,000
21,917
10,000
1,15,917
Annual (~)
10,08,000
2,63,000
1,20,000
13,91,000
>GOALS
KOMAL'S MARRIAGE
KOMALS COLLEGE &

POSTGRADUATION
(2018-2022) - Inflation 10%

~31 lakh
~65 lakh
~25 lakh
~53 lakh
FOREIGN VACATION (EVERY YEAR)

Approximate budget
~3 lakh
RETIREMENT PLANNING
Current annual
Future annual
expenses:
Corpus
required:
~10.10 lakh
~24.30 lakh
~4. 10 crore
Assets
Liabilities
Savings account
3,54,000
Fixed deposits
12,00,000
PPF
16,00,000
Mutual funds
85,00,000
Shares
8,45,000
Self-occupied house 3,00,00,000
Commercial property
85,00,000
Second property
65,00,000
5,74,99,000
Net worth
5,74,99,000
>FINDINGS
Emergency fund: Good amount maintained in savings
account and fixed deposits (FDs) to take care of any major
emergency.
Life insurance: Krishna has a total insurance cover of
~2.20 crore, while Lekha is covered for ~10 lakh from
traditional and unit-linked insurance plans.
Health Insurance: The family is covered for a sum assured of
~10 lakh through a family health floater plan.
Investments: Good diversification across assets and a good
corpus as well.
Liabilities: They have no liabilities as of now.
>RECOMMENDATIONS
EMERGENCY FUND: The couple can maintain ~2,00,000 in their
joint account and move the rest to a flexi FD, which takes care
of three months of emergency.
Life Insurance: Considering the expense replacement
method, Krishna is adequately covered and backed by good
investments. Lekhas cover is also sufficient.
Health Insurance: The present cover is adequate. They should
review the health cover every year.
>PLANNING FOR GOALS

KOMAL'S COLLEGE AND POSTGRADUATION (2018-2022)
The couple needs to set aside ~24 lakh from their mutual
funds portfolio in balanced funds for this goal. Additionally,
~6 lakh from their fixed deposits can be used in the first year
of senior college.
Rate of return assumed: 11% in balanced funds and 6.5%
post tax in FD's
KOMAL'S MARRIAGE (2025)
~28,000 needs to be invested every month in balanced
mutual funds
FOREIGN VACATION (EVERY YEAR)
This goal can be easily met by investing ~24,000 every month
in recurring deposit or ultra-short debt funds to create an
annual foreign travel fund.
Krishna's existing Public Provident Fund will be worth
~75.75 lakh at retirement, assuming he contributes ~1.5 lakh
every year. Shares and mutual funds combined will be worth
~2 crore at retirement. The invested property will be worth
~2.24 crore.
Rate of return assumed: 11% in mutual funds portfolio,
15% in shares, 8% in PPF, 10% on property
CASE STUDY
VERMAs
Neeraj ( 41), Ishita (39), Paras (10)
RESIDE IN
NET ANNUAL INCOME
RATING
Mumbai
~14.40 lakh
7/10
>STATUS & GOALS

Neeraj is a manager (sales) in a real estate company. His wife,
Ishita, is a homemaker. Their son, Paras, is studying in the
seventh standard. Neeraj has some decent savings, as he has
been investing prudently for some years. His first priority is to
pay-off his home loan and create an educational corpus for
his sons higher studies. Planning for retirement is his last
priority.
Basic expenses (~)
Household
Sons education
Home loan EMI
Insurance premium
Total
Per month (~)

41,000
4,500
27,635
6,417
79,552
Annual (~)
4,92,000
54,000
3,31,620
77,000
9,54,620
>GOALS
SONS GRADUATION
SONS POST-GRADUATION
(2023-25) - Inflation 10%
(2026-27) - Inflation 10%
~10 lakh
~21.43 lakh
~10 lakh
~28.53 lakh
Current value:
HOME LOAN REPAYMENT

(2019 ) - (Home loan interest 10.25%)
~23.50 lakh
RETIREMENT PLANNING
Current annual retirement expenses (considering household
expenses and mediclaim premiums): ~5.05 lakh
Future annual expenses:
Corpus required:
~18.26 lakh
~3.91 crore
Assets
Liabilities
Savings account
1,85,000 Home loan 23,50,000
EPF
5,75,000
Fixed deposits
5,40,000
Equity mutual funds
13,25,000
1,31,25,000
23,50,000
Net worth
1,07,75,000
>FINDINGS
EMERGENCY FUND: Adequate amount maintained in liquid
form, in savings account and fixed deposits.
LIFE INSURANCE: Neeraj is covered for ~60 lakh through a
term insurance and traditional insurance plans; not
adequate. Ishita has an insurance cover of ~5 lakh.
HEALTH INSURANCE: Employer-provided ~3 lakh cover and a
separate Family floater health insurance of ~5 lakh for family.
INVESTMENTS: Very well-diversified portfolio, with equal
allocation to debt and equity.
LIABILITIES: There are home loan dues of ~23.5 lakh, with a
balance term of 11 years.
>RECOMMENDATIONS
EMERGENCY FUND: The existing savings accounts can be
converted into a flexi FD account. Additionally, ~1 lakh from

existing FDs can be earmarked for emergency.
LIFE INSURANCE: Neeraj needs additional insurance cover of
~1 crore. A suitable term plan for 20 years will cost ~20,000
per annum. Ishita does not need any additional insurance.
HEALTH INSURANCE: The present health insurance cover can
be increased to ~5 lakh, which will cost additional ~6,000
per year.
with ~15 lakh as TTD benefit, is recommended for Neeraj. The
premium for this should be ~12,000 per annum
>PLANNING FOR GOALS

SONS GRADUATION (2023-25): Neeraj should allocate ~4 lakh
from FDs and invest it in balanced mutual funds. He also needs
to additionally invest ~8,500 a month in the same schemes.
Rate of return assumed: 11% in balanced mutual funds
SONS POST-GRADUATION (2026 TO 2027): Need to save
~10,000 a month in large and multi-cap funds.
Rate of return assumed: 12% in equity mutual funds.
HOME LOAN PREPAYMENT (2019): Neeraj should reduce the term of
his home loan to five years, which will entail an equated
monthly instalment (EMI) of ~50,000, which can be comfortably
serviced from the existing surplus.
RETIREMENT PLANNING (2034): Neerajs Employees' Provident
Fund will fetch him ~1.52 crore at retirement, while equity
mutual funds will generate ~1.14 crore. To bridge the shortfall,
he needs to invest ~16,500 a month in a 70:30 ratio between
equity and debt mutual funds. Currently, after allocating funds
for other goals, any further allocation for this goal is not possible.
Once the home loan gets over, the resulting saving of EMI can be
diverted for this goal.
Rate of return assumed: 8% in EPF and debt funds, 12% in
equity mutual funds
CASE STUDY
JOGs
Shreya (49), Father (72), Mother (65)
RESIDE IN
NET ANNUAL INCOME
RATING
Thane
~12.00 lakh
7/10
>STATUS & GOALS

Shreya is unmarried and works as a senior manager with a
BPO (business process outsourcing) company. She stays in
her own house with her old parents. Her siblings are married
and well-settled. Shreya has judiciously managed her
savings and investments and has created good assets. She
wants to provide adequate medical cover for her parents, as
they both are diabetic and almost regularly require medical
attention. She also wants to retire at the age of 60 years and
spend her retirement years working for a non-governmental
organisation.
Basic expenses (~)
Per month (~)
Household
31,000
Parents medical expenses
5,000
Insurance premium
8,700
Total
44,700
Annual (~)
3,72,000
60,000
1,04,400
5,36,400
Monthly surplus: ~55,300
>GOALS
PROVIDING FOR ADEQUATE MEDICAL CARE FOR PARENTS
Health corpus planned: ~10 lakh
RETIREMENT PLANNING
(2026) (inflation 7 per cent) (Life expectancy 85 years)
Current annual retirement expenses (considering household
expenses): ~4.32 lakh
Future annual expenses:
Corpus required:
~9.09 lakh
~1.80 crore
Assets
Savings account
2,98,000
EPF
6,45,000
PPF
4,78,000
Fixed deposits
6,00,000
Equity mutual funds
15,00,000
Debt mutual funds
10,00,000
1,48,21,000
Net worth
1,48,21,000
Liabilities
>FINDINGS
EMERGENCY FUND: Adequate amounts maintained in
savings account and fixed deposits (FDs) to meet any
emergency
LIFE INSURANCE: Shreya is insured for ~21 lakh and her
insurance policies consist of traditional, unit-linked
insurance plans and term insurance. Cover is adequate
HEALTH INSURANCE: Shreya and her parents are covered for
~3 lakh through her employer and she also has a ~5-lakh
mediclaim cover for herself
INVESTMENTS: Investments are very well diversified in
equity and debt, with a major allocation towards debt
>RECOMMENDATIONS
EMERGENCY FUND: Sufficient amount maintained in savings
account in flexi FD option,adequate for short-term

contingency
LIFE INSURANCE: Shreya does not need any additional life
cover at the moment
HEALTH INSURANCE: Shreya needs to enhance her cover to
~10 lakh, with the help of a top-up plan. It will cost her
~5,000 per year
with ~15 lakh as TTD benefit, is recommended for Shreya. The
total premium for this should be ~6,500 per annum
>PLANNING FOR GOALS

PROVIDING FOR ADEQUATE MEDICAL CARE FOR PARENTS:
Shreya needs to allocate ~5 lakh from her FDs and ~5 lakh
from debt funds for her parents medical fund. She should
also check with her employer if she can increase her parents
cover in her group medical policy.
RETIREMENT PLANNING (2026) : Assuming a five per cent
annual increase in basic salary, Shreya should have an
Employees' Provident Fund corpus of ~38 lakh, while PPF
should fetch around ~36 lakh, with an annual contribution
of ~1,50,000. The existing equity MFs should fetch around
~52 lakh. To cover the shortfall, SIPs of ~21,000 need to be
started in MFs, in the ratio of 70 per cent equity and 30 per
cent debt. Since there is good surplus available, SIPs of
~45,000 can be invested to create a bigger corpus.
Rate of return assumed: 8 per cent for EPF / PPF, & 11 per cent
in the mutual funds portfolio
CASE STUDY
DSILVAs
Keith (28), Asha(28)
RESIDE IN
NET ANNUAL INCOME
RATING
Mira Road,
Mumbai
~9.00 lakh
4/10
>STATUS & GOALS

Keith is a store manager with a retail mall, while his wife,
Asha, runs a beauty parlour on Mira Road. The couple
married recently and reside in a rented apartment. Their
parents are completely independent. The couple desires to
buy their own house in the next one year and to plan a
foreign tour, followed by retirement.
Basic expenses (~)
Household
Rent
Car loan
Insurance premium
Total
Per month (~)

24,000
9,000
8,598
2,417
44,014
Annual (~)
2,88,000
1,08,000
1,03,171
29,000
5,28,171
>GOALS
BUYING A 1-BHK FLAT
Current value:
Future value:
~36 lakh
~39.24 lakh
FOREIGN VACATION
(2019)
Current value:
Future value:
~1.60 lakh
~2.34 lakh
RETIREMENT PLANNING
Current annual
Future annual
expenses:
Corpus
required:
~2.88 lakh
~17.89 lakh
~4. 15 crore
Assets
Savings account
EPF
Fixed deposits
Equity mutual funds
Net worth
Liabilities
73,000
1,32,000
3,24,000
50,000
5,79,000
2,79,000
Car loan
3,00,000
3,00,000
>FINDINGS
EMERGENCY FUND: Good amounts maintained in savings
account and fixed deposits (FDs) to take care of any shortterm emergency.
LIFE INSURANCE: Keith has a total insurance cover of ~50 lakh
through a term plan, while Asha is covered for ~3 lakh from
traditional insurance plans.
HEALTH INSURANCE: The family is covered for a sum assured
of ~2 lakh through employer family health floater plan.
INVESTMENTS: The investments are mostly concentrated in
debt, with a small allocation to equity through mutual funds.
LIABILITIES: They have car loan dues of ~3 lakh.
>RECOMMENDATIONS
EMERGENCYFUND: The present savings account balance can be
maintained and additionally an FD of ~2 lakh can be
maintained for an emergency.
Life Insurance: Keith needs an additional cover of ~56 lakh,
while his wife needs to take a cover of ~25 lakh. Term plans for a
30-year duration will cost them ~12,000 a year, approximately.
HEALTH INSURANCE:They need to take a separate ~3 lakh floater
health plan, for which the premium will be around ~7,000 a year.
ACCIDENT INSURANCE:A personal accident policy of ~25 lakh,
with ~5 lakh as temporary total disability benefit, is
recommended for Keith. For Asha, the PA cover should be
~10 lakh. The total premium will be ~4,500.
>PLANNING FOR GOALS

BUYING A 1 BHK (2016):The couple needs to first arrange for the
20 per cent down-payment amount. With the current surplus,
it is difficult to arrange in a years time. They can postpone the
goal by another year. The present surplus needs to be invested
in a recurring deposit to accumulate the down-payment
amount. The FD amount of ~1.24 lakh can also be used for this.
The rest can be managed from a home loan of ~31 lakh for
which the equated monthly instalment will be ~33,000.
Rate of return assumed: 7 % post tax in RD and home
loan rate considered is 10%.
FOREIGN VACATION (2019):~4,000 can be invested in shortterm debt funds. Since the entire surplus will be allocated for
home purchase, this goal needs to be postponed and
evaluated later, based on increments and future surplus.
Rate of return assumed: 8% post tax in short-term debt funds.
RETIREMENT PLANNING (2038):: Keiths Employee Provident
Fund account will be worth ~1.07 crore at retirement. For the
balance amount, he needs to invest ~15,500 in a mutual fund
portfolio of 70 per cent equity and 30 per cent debt. This is not
possible at present due to utilisation of surplus for buying
home. Once the first goal is achieved, the couple should strive
to pay off the loans and utilise the EMI savings for retirement.
Rate of return assumed: 11% in mutual funds
portfolio, 8% in EPF.
CASE STUDY
VARGHESEs
Manoj (55), Latha (45), Shruti (13)
RESIDE IN
NET ANNUAL INCOME
RATING
Thane, near Mumbai
~18 lakh
6/10
>STATUS & GOALS

Manoj is a technician in an oil refinery in the Gulf. His wife,
Latha, and and daughter, Shruti, live in Thane in their one
bedroom-hall-kitchen flat. The familys priority is to fund
their daughters college and post graduation studies, her
marriage, and then plan for their retirement.
Basic expenses (~)
Household
Daughters education
Insurance premium
Total
Per month (~)

45,000
10,000
18,333
73,333
Annual (~)
5,40,000
1,20,000
2,20,000
8,80,000
>GOALS
DAUGHTERS COLLEGE EDUCATION AND
POSTGRADUATION
(2020-2024) - Inflation 9%
Current value:
Future value:
~25 lakh
~50.72 lakh
DAUGHTERS MARRIAGE
(2027 )
Current value:
Future value:
~10 lakh
~31.38 lakh
RETIREMENT PLANNING
Current annual
Future annual
expenses:
Corpus
required:
~5.40 lakh
~10.62 lakh
~1.72 crore
Assets
Savings account
Fixed deposits
PPF
Post Office MIS
Mutual funds
Self-occupied house
Net worth
2,65,000
34,00,000
6,50,000
9,00,000
3,50,000
65,00,000
1,20,65,000
1,20,65,000
Liabilities
>FINDINGS
account and fixed deposits (FDs) to take care of any type of
emergency.
LIFE INSURANCE: Manoj has a total insurance cover of
~27 lakh through various traditional and unit-linked
insurance plan (Ulip) plans, while Latha is covered for
~5 lakh from traditional insurance plans.
of ~3 lakh through family floater plan.
INVESTMENTS: The investments are predominantly in debt,
with a small allocation to equity.
LIABILITIES: They dont have any liabilities.
>RECOMMENDATIONS
EMERGENCY FUND: The present savings account balance can
take care of three months of expenses. Try to convert this

account into a flexi FD account.
LIFE INSURANCE: Manoj needs an additional cover of
~1.25 crore, which can be covered through term insurance
plan. The annual premium will be approximately ~40,000.
Latha doesnt need any additional insurance cover.
HEALTH INSURANCE: The present health cover can be
increased to ~5 lakh, along with a top-up cover of ~10 lakh.
The approximate additional premium for this should be
~15,000.
recommended for Manoj. It will cost ~6,500 annually.
>PLANNING FOR GOALS
BUDGET: ~1-1.5 crore
Realty check
of ~1-1.5 crore. If you are looking at buying
real estate and your budget falls within this
range, an idea about prevailing rates would
come in handy
AHMEDABAD
Avg price (~/sq ft)
Science City Road

Jodhpur Village
SG Highway
3,944-4,700
5,500-6,500
3,500-5,500
2,500-3,000
1,700-2,000
2,800-3,200
7,200-7,800
6,500-6,700
6,200-6,800
1,500-1,800
1,900-2,000
1,600-1,700
3,800-4,200
5,100-7,000
6,200-6,800
5,800-6,200
5,000-5,500
3,200-3,800
2,000-2,300
1,700-1,850
1,700-1,850
2,100-2,400
3,000-3,200
3,400-3,600
4,400-4,600
5,400-5,600
3,800-4,000
3,200-3,800
3,000-3,200
2,200-2,500
NAGPUR
Gandhi Sagar Lake
Rambagh
Somalwada
COIMBATORE
Singanallur
RS Puram
Ramanathapuram
Saibaba Colony
Avinashi Road
VIZAG/VISAKHAPATNAM
Rushikonda
Duvada
RK Beach
Dwarka Nagar
Notes:
Ticket price range considered for the above data points is ~1 crore to ~1.5 crore
All the data points discussed in the above table refer to the primary market only
Above residential data set comprises residential apartments only
Above residential data is representative of organised real estate developers only
Data points are updated till March 2015
Source: PropEquity
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DAUGHTER'S COLLEGE EDUCATION AND POST-GRADUATION

(2020-2024): From the present fixed deposits, ~24.20 lakh
need to be invested the ratio of 50 per cent in short-term
debt funds and the rest in balanced funds for this goal.
Rate of return assumed: 10.5 per cent post tax on this
portfolio
DAUGHTERS MARRIAGE (2027): ~10,000 needs to be invested
per month in large and multi-cap diversified mutual funds.
Rate of return assumed: 12 per cent post tax in diversified
equity funds
RETIREMENT PLANNING (2025): Manojs Public Provident
Fund will be worth ~35.76 lakh at retirement, considering he
invests ~1.50 lakh a year for 10 years. The balance FDs on
reinvestment will be worth ~16.90 lakh and Post Office MIS
maturity when further reinvested in balanced funds will
yield ~25.55 lakh at retirement. The existing mutual funds
will be worth ~10.87 lakh. To cover up the shortfall, ~41,000
needs to be invested in the ratio of 60 per cent equity and
40 per cent debt in mutual funds.
Rate of return assumed: 8 per cent in PPF, 6 per cent
post tax in FDs, 11 per cent in balance funds, 12 per cent
in equity funds
CASE STUDY
DASHs
Dilip (38), Namita (36), Premika (niece, 6)
RESIDE IN
NET ANNUAL INCOME
RATING
Kolkata
~13.20 lakh
8/10
>STATUS & GOALS

Dilip runs an outdoor advertising company in Kolkata and
his wife, Namita, is a homemaker. They dont have children
but Dilip would like to fund his nieces college education, as
her family isnt financially well off. The couple also wants to
buy a bigger house and then plan for retirement.
Basic expenses (~)
Household
Nieces education
Medical expenses
Insurance premium
Total
Per month (~)

51,000
3,000
4,000
11,667
69,667
Annual (~)
6,12,000
36,000
48,000
1,40,000
8,36,000
>GOALS
BUYING A BIGGER HOUSE
Current value:
~95 lakh
NIECES EDUCATIONAL FUNDING
(2027 - 2031) (Inflation considered 10 per cent)
Current value:
Future value:
~20 lakh
~79.20 lakh
RETIREMENT PLANNING
(2042, Inflation 7%; life expectancy - 85 years)
Current annual
Future annual
expenses:
Corpus
required:
~6.12 lakh
~38 lakh
~6.41 crore
Assets
Savings account
Fixed deposits
PPF
Mutual funds
Shares
Self-occupied house
Net worth
1,86,000
14,50,000
8,45,000
8,43,000
4,32,000
75,00,000
1,12,56,000
1,12,56,000
Liabilities
Nil
>FINDINGS
emergency
LIFE INSURANCE: Dilip has a total insurance cover of ~15 lakh
through various traditional and unit-linked insurance
plans, while Namita is covered for ~3 lakh through
traditional insurance plans
of ~2 lakh through an employer family health floater plan
INVESTMENTS: The investments are well diversified in debt
and equity assets: 64 per cent in debt and 36 per cent in
equity
LIABILITIES: They dont have any liabilities
>RECOMMENDATIONS
EMERGENCY FUND: ~1 lakh can be maintained in a flexi FD
savings account and ~1.10 lakh in liquid funds to take care of
three months of expenses
LIFE INSURANCE: Considering the expense replacement
method, Dilip needs additional cover of ~1.75 crore, which
can be covered through a term insurance plan. The annual
premium will be approximately ~38,000. Namita doesnt
need any additional insurance cover
HEALTH INSURANCE: The present health cover can be
enhanced to ~10 lakh with a top-up health policy. The
approximate additional premium for this should be ~5,000
recommended for Dilip
>PLANNING FOR GOALS

BUYING A BIGGER HOUSE (2015): The couples existing flat
will fetch ~75 lakh. They can utilise ~10 lakh from their FDs
and ~3 lakh from mutual funds (MFs). Home loan of the
balance amount of ~7 lakh will have to be taken for five
years, for which EMIs will be ~14,873
Rate of interest on home loan considered: 10 per cent
NIECES EDUCATIONAL FUNDING (2027 - 2031): ~17,500 needs
to be invested per month in the form of systematic
investment plans in large-cap and balanced MFs
Rate of return assumed: 12 per cent post tax on this portfolio.
RETIREMENT PLANNING (2042):: Assuming Dilip continues to
invest ~1.50 lakh in his PPF account till retirement, it will be
worth ~1.98 crore. MFs and shares will be worth ~1.15 crore
and ~1.88 crore, respectively. For the shortfall, ~7,000 needs
to be invested in MFs in 70 per cent equity and 30 per cent
debt ratio
Rate of return assumed: 8 per cent in PPF; 12 per cent in
mutual funds; 15 per cent in shares
CASE STUDY
ARORAs
Raman (57), Geeta (54), Vikram (27)
RESIDE IN
NET ANNUAL INCOME
RATING
Mumbai
~16.80 lakh
9/10
>STATUS & GOALS

Raman works as post-production head in a Mumbai-based
advertising company, while his wife, Geeta, is a homemaker.
Their son, Vikram, works in a software firm in Bengaluru and
is completely independent. The couple wants to plan for their
sons marriage, followed by their retirement
Basic expenses (~)
Household
Medical expenses
Insurance premium
Total
Per month (~)

50,000
5,000
4,333
59,333
Annual (~)
6,00,000
60,000
52,000
7,12,000
>GOALS
SONS MARRIAGE
(2016) - Inflation considered
10 per cent
~11 lakh
~11 lakh
ANNUAL FOREIGN
VACATION TILL RETIREMENT
(Every year till 2023 ) - Inflation
considered 10 per cent
~11 lakh
~11 lakh
RETIREMENT PLANNING
(2023, Return expected 9 per cent, Inflation 7 per cent) (Life
expectancy 85 years
Current annual
Future annual
expenses:
Corpus
required:
~6.60 lakh
~11.34 lakh
~1.91 crore
Assets
Savings account
18,45,000
Recurring deposits
8,12,000
Fixed deposits
32,65,000
PPF
11,75,000
Mutual funds
18,33,000
Shares
6,32,000
5,85,000
Self-occupied house 2,65,00,000
3,66,47,000
Net worth
3,66,47,000
Liabilities
Home loan
>FINDINGS
EMERGENCY FUND: Huge amounts maintained in savings
emergency and also for sons marriage
LIFE INSURANCE: Raman has a total insurance cover of
~9 lakh through various traditional plans, while Geeta is
covered for ~6 lakh from traditional insurance plans
HEALTH INSURANCE: The couple is covered for a sum assured of
~3 lakh through Ramans employer. They also have a separate
cover of ~3 lakh each through individual health plans
INVESTMENTS: Being conservative in nature, their
investments are tilted more towards debt, which
constitutes 74 per cent of their portfolio, and the rest is in
equity
>RECOMMENDATIONS
EMERGENCY FUND: ~2 lakh can be maintained in a flexi FD
savings account and ~1.60 lakh can be maintained in liquid

funds to take care of six months of expenses
method, Raman does not need any additional cover.
Geetas present insurance cover is adequate
HEALTH INSURANCE: The present health cover is less and
needs to be enhanced to ~5 lakh each, followed by a top-up
plan of ~ 10 lakh. There will be an additional outgo of
approximately ~15,000
with ~15 lakh as TTD benefit, is recommended for Raman.
The premium for this will be around ~4,000
>PLANNING FOR GOALS

SONS MARRIAGE (2016) : An amount of ~10.38 lakh from
savings account can be invested in an ultra-short debt fund.
Rate of return assumed: Six per cent post tax in ultra-short
debt fund
ANNUAL FOREIGN VACATION TILL RETIREMENT (EVERY YEAR
TILL 2023): Recurring deposits (RD) of ~18,000 can be done
for a one-year period annually to fund this goal. RD amount
can raised by 10 per cent each year to catch up with inflation.
Another alternative is to utilise the FDs, as they mature every
year and invest the monthly amount in MFs (30 per cent
equity and 70 per cent debt) to avoid any short-term
taxation on gains
Rate of return assumed: 6 per cent post tax on RDs and FDs.
RETIREMENT PLANNING (2023): Raman's Public Provident
Fund will be worth ~37.70 lakh at retirement, assuming he
continues to invest ~1.50 lakh in PPF account till retirement.
The MFs and shares will be worth ~ 42.20 lakh and ~ 19.33
lakh, respectively. Seventy per cent of the FDs can be
invested in short and accrual debt funds, which will fetch
~42.30 lakh, while the rest of the FDs will fetch ~15.61 lakh.
RDs on maturity over the next two years can be invested in
balanced funds to fetch ~17 lakh. To make good the small
shortfall, systematic investment plan of ~ 11,500 needs to be
done in a 30 per cent equity and 70 per cent debt
combination in MFs
Rate of return assumed: 6 per cent post tax on FDs, 8 per
cent on accrual debt funds and PPF, 10.1 per cent on mutual
funds portfolio, 15 per cent in shares
CASE STUDY
IYERs
Karunya (33), Father (60), Mother (55)
RESIDE IN
NET ANNUAL INCOME
RATING
Mumbai
~6.24 lakh
4/10
>STATUS & GOALS

Karunya works as a senior team leader with a business process
outsourcing firm based in Navi Mumbai. He lives with his
parents in an apartment his father had purchased three
decades earlier. Due to some career setbacks and parents'
continuous medical treatment, Karunyas financial condition
is not very good, considering he has been working for more
than 10 years. He wants to get married soon and also plan for a
bigger house and retirement.
Basic expenses (~)
Per month (~)
Household
28,000
Bike loan EMI
2,358
Medical expenses of parents
3,000
Total
33,358
Annual (~)
3,36,000
28,296
36,000
4,00,296
>GOALS
MARRIAGE
BUYING A BIGGER HOUSE

10 per cent
(2019 ) - Inflation considered

9 per cent
~2 lakh
~2.20 lakh
~87.51 lakh
~62 lakh
RETIREMENT PLANNING
(2042, Return expected 9 per cent, Inflation 7 per cent) (Life
expectancy 85 years
Current annual
Future annual
expenses:
Corpus
required:
~3.36 lakh
~20.86 lakh
~4.21 crore
Assets
Savings account
Fixed deposits
EPF
Net worth
24,000
57,000
3,24,000
4,05,000
3,80,000
Liabilities
Bike loan
25,000
25,000
>FINDINGS
EMERGENCY FUND: Present bank balance and fixed deposit
take care of only two months of expenses. This is less and
needs to be enhanced
LIFE INSURANCE: Karunya doesnt have any insurance cover.
His policies lapsed two years earlier due to non-payment of
premiums
HEALTH INSURANCE: Karunya and his parents are covered for
a sum assured of ~1 lakh through his employer
INVESTMENTS: Except a small fixed deposit and Employees'
Provident Fund (EPF), there are no other investments
LIABILITIES: Karunya is currently servicing a motorcycle loan,
with a due of ~25,000
>RECOMMENDATIONS
EMERGENCY FUND: Karunya needs to maintain ~1 lakh for an
emergency in the form of savings accounts and fixed

deposits. He needs to start a monthly recurring deposit (RD)
of ~2,500 for a year to achieve the suggested amount
method, Karunya needs to take a term insurance of ~55 lakh
for 25 years. The annual premium will be around ~10,000
HEALTH INSURANCE: Karunya needs to take a separate health
cover of ~2 lakh for himself and enhance his parents health
cover offered by employers to ~2 lakh, by paying additional
premium. Annual outgo for this will be ~10,000
recommended for Karunya. The premium for this will be
around ~4,000
>PLANNING FOR GOALS

MARRIAGE (2016) : Karunya needs to start an RD of ~18,000
for a year to fund his marriage expenses
Rate of return assumed: 6.5% post tax in recurring deposits
BUYING A BIGGER HOUSE (2019): The existing house should
fetch them ~52 lakh after four years. Systematic Investment
Plans (SIPs) of ~18,000 from 2016 onwards in accrual debt
funds should provide ~7.29lakh in 2019. The shortfall of
~23 lakh can be funded with the help of a home loan, for
which the equated monthly instalment (EMI) will be ~24,758
for a 15-year term. Considering a seven per cent rise in
income, servicing this should be possible
Rate of return assumed: 7 per cent post tax in debt funds,
9% on property, Home loan interest considered 10%
RETIREMENT PLANNING (2042): Assuming Karunya continues
to enjoy EPF benefits during his working career, EPF value at
retirement should be ~95 lakh, considering an annual five
per cent growth in his basic salary. He needs to invest
~13,500 a month in a mutual funds portfolio, in a ratio of 70
per cent equity and 30 per cent debt, to achieve the
retirement corpus. This is not possible currently, since his
surplus will be utilised for the marriage and house goals
Rate of return assumed: 8 per cent on EPF, 12 per cent on the
CASE STUDY
THOMASes
Biju (31), Kavita (31)
RESIDE IN
NET ANNUAL INCOME
RATING
Dahisar, Mumbai
~11.80 lakh
3/10
>STATUS & GOALS

Biju is a senior waiter on a cruise liner in Singapore, while his
wife, Kavita, runs a small restaurant with a partner. Biju
works for eight months in a year on ship and the couple
dont have their own house yet. They invested in an under
construction property six months back in Karjat and hope to
sell it and buy their own house in Mira Road.
Basic expenses (~)
Household
House Rent
Insurance premium
Total
Per month (~)

37,000
12,000
9,583
58,583
Annual (~)
4,44,000
1,44,000
1,15,000
7,03,000
>GOALS
BUYING A 2BHK FLAT
(2018) - Inflation considered 9 per cent
Current value:
Future value:
~60 lakh
~71.28 lakh
RETIREMENT PLANNING
(2035, Return expected 9 per cent, inflation 7 per cent) (Life
expectancy 85 years
Current annual
Future annual
expenses:
Corpus
required:
~4.44 lakh
~17.18 lakh
~4.37 crore
Assets
Savings account
Fixed deposits
Under-construction
property
Mutual funds
Net worth
4,00,000
3,00,000
5,00,000
1,15,000
13,15,000
13,15,000
Liabilities
Home loan
>FINDINGS
EMERGENCY FUND: Sufficient funds maintained in savings
account and fixed deposits to take care of any emergency.
LIFE INSURANCE: Biju and Kavita are covered for ~10 lakh and
~5 lakh, respectively through money back insurance plan.
HEALTH INSURANCE: There is no medical cover for the couple.
INVESTMENTS: Considering their years of service and good
income, the investment corpus is very small.
LIABILITIES: No liabilities.
>RECOMMENDATIONS
EMERGENCY FUND: The couple needs to maintain ~1 lakh in a
savings account and move the rest of the money (~3 lakh)
into liquid funds (Kavitas funds) and NRE deposits ( Bijus
funds) according to the taxation aspect of each of them.
LIFE INSURANCE: Biju and Kavita need to take a term
insurance cover of ~50 lakh and ~25 lakh, respectively.
Premium for the same should be around ~15,000.
HEALTH INSURANCE: The couple should take a family floater
cover of ~5 lakh, which will cost them approximately
~9,000 a year.
ACCIDENT INSURANCE: Kavita needs to take a ~25-lakh
personal accident policy, with ~5 lakh as TTD, which will
cost ~4,000 per annum. Biju is adequately insured by his
employer for any accidental-related claims.
>PLANNING FOR GOALS

BUYING A 2BHK FLAT (2018): The couples existing
investments and next one year of surplus will go towards
payment of balance ~10 lakh for their under-construction
property in Karjat. Assuming that they start a recurring
deposit (RDs) of ~35,000 a month from 2016 till 2018, they
will have ~9 lakh approximately in 2018. Since the Karjat
property possession is expected towards the end of 2016,
they may not be able to sell it in 2018, as it will attract shortterm capital gains tax. The couple should postpone their
goal to 2020, which will provide them sufficient time to
create a good corpus by investing their surpluses, as well
avoid tax on sale of their Karjat property. The sale proceeds
can be used for buying their flat in Mira Road.
Rate of return assumed: 7 per cent post tax in RDs, 9 per cent
on property.
RETIREMENT PLANNING (2035): Since the most of the existing
investments will get utilised for buying the new house in
Mira Road, investments for retirement will have to be done
afresh. Currently, they need to invest ~44,000 in a ratio of 70
per cent in equity and 30 per cent in debt mutual funds
portfolio to achieve their retirement corpus, which is not
possible. The couple will have to work on reducing their
expenses, currently on the higher side so the resultant
savings can be invested for retirement. They need a
focussed-approach towards better cashflow management
else retirement date will need to be postponed.
Rate of return assumed: 12 per cent on the mutual funds
portfolio.
CASE STUDY
SOLANKIes
Ketan (43), Usha (38), Harit (13), karuna(8)
RESIDE IN
NET ANNUAL INCOME
RATING
Thane
~25.80 lakh
8/10
>STATUS & GOALS

Ketan works as a general manager, operations, with a
speciality chemicals firm in Navi Mumbai, while his wife, Usha,
is a homemaker. They have two children. The couple wants to
plan for their childrens higher educationa and marriage after
which they want to plan for their retirement.
Basic expenses (~)
Household
Home Loan
Car loan
Childrens education
Insurance premium
Total
Per month (~)

45,000
69,849
11,377
13,000
9,083
1,48,309
Annual (~)
5,40,000
8,38,192
1,36,518
1,56,000
1,09,000
17,79,710
>GOALS
SONS COLLEGE & POSTGRADUATION FUNDING
DAUGHTERS COLLEGE AND

POST-GRADUATION FUNDING
(2020-24) - Inflation
considered 9%
(2025-29) - Inflation considered

9%
Current value:
Future value:
~30 lakh
~90 lakh
~58 lakh
~30 lakh
SONS MARRIAGE
DAUGHTERS MARRIAGE
(2028) - Inflation
considered 10%
(2032) - Inflation
considered 10%
Current value: Current value:
~10 lakh
~50.50 lakh
RETIREMENT PLANNING
(2032, return expected 9%, Inflation 7%,
Life expectancy - 85 years)
Current annual
Future annual
retirement expenses: retirementexpenses:
~5.40 lakh
~3.45 crore
~17 lakh
Assets
Corpus
required:
Savings account
2,31,000
Fixed deposits
3,00,000
EPF
14,35,000
2,34,000
Equity mutual funds
23,16,000
Self-occupied property1,90,00,000
2,35,16,000
Net worth
2,09,16,000
Liabilities
Home loan
Car loan
24,00,000
2,00,000
26,00,000
>FINDINGS
EMERGENCY FUND: Sufficient funds maintained in savings
account and fixed deposits to take care of any emergency.
LIFE INSURANCE: Ketan and Usha are covered for ~1.45 crore
and ~10 lakh, respectively, through combination of term
insurance and endowment plans.
HEALTH INSURANCE: The family is covered for ~5 lakh
through employer provided medical cover. Additionally,
Ketan has taken a family floater cover of ~10 lakh.
INVESTMENTS: Very well diversified into equity and debt,
with a higher allocation to equity.
LIABILITIES: Ketan is servicing a home loan and a car loan,
with balance tenure of five years and two years, respectively.
>RECOMMENDATIONS
EMERGENCY FUND: The couple needs to maintain ~4.5 lakh
towards short-term emergency. ~2 lakh can be maintained

in a flexi fixed deposit (FD) account and the rest can be
maintained in liquid and liquid-plus funds.
LIFE INSURANCE: Ketan needs to take an additional cover of
~1.5 crore, while Ushas cover is adequate. A suitable online
term insurance for Ketan for 20 years will cost ~40,000.
HEALTH INSURANCE: The present cover is adequate. They
need to review their cover every year.
ACCIDENT INSURANCE: Ketan needs to take a personal
accident cover of ~1 crore, with ~15 lakh temporary total
disability. The premium for the same will be around ~13,000.
>PLANNING FOR GOALS

SONS COLLEGE AND POST-GRADUATION FUNDING (2020-24):
Ketan needs to start investing ~41,000 a month in a mutual
fund (MF)s portfolio: 60 per cent in equity and 40 per cent
in debt.
Rate of return assumed on this portfolio: 11 per cent
DAUGHTERS COLLEGE AND POST GRADUATION FUNDING (202529): The couple needs to invest ~25,000 a month in a MFs
portfolio comprising 70 per cent equity and 30 per cent debt
SON AND DAUGHTERS MARRIAGE: From the existing equity
MFs portfolio, an amount of ~13.5 lakh need to be
earmarked for this goal.
Rate of return assumed in equity mutual funds: 13 per cent
RETIREMENT PLANNING (2032): Ketan needs to do part
payment of ~5 lakh for home loan, which will reduce his
tenure to 3.5 years and pay off his existing car loan using
part of his equity MFs. The resulting car loan equated
monthly instalment saving can be invested in 70 per cent
equity and 30 per cent debt portfolio of MFs to create a
corpus of ~65 lakh. His Employees' Provident Fund
Organisation will reach a corpus of ~1.48 crore if he
continues working till retirement. Considering the home
loan will get over after four years, Ketan will then have to
invest ~38,000 per month in the ratio of 60 per cent equity
and 40 per cent debt in MFs.
Rate of return assumed: 11 per cent on the mutual funds
portfolio. 8 per cent in EPF
CASE STUDY
GUPTAs
Viren (38), Vidya (34), Prerna (6)
RESIDE IN
NET ANNUAL INCOME
RATING
Vasai, near Mumbai
~8.52 lakh
5/10
>STATUS & GOALS

Viren is a production manager in a printing firm near
Mumbai, while his wife, Vidya, is a homemaker. They have
recently purchased a two-bedroom hall kitchen flat, with the
help of a home loan. The couples primary goal is to fund their
daughters education, followed by their retirement. They also
want to pay off their home loan in seven to eight years.
Basic expenses (~)
Household
Home loan
Daughters education
Insurance premium
Total
Per month (~)

21,000
27,940
3,000
6,583
58,523
Annual (~)
2,52,000
3,35,277
36,000
79,000
7,02,277
>GOALS
DAUGHTERS COLLEGE AND POSTGRADUATION FUNDING
(2027-31) - Annual inflation considered 9 per cent
Current value:
Future value:
~16 lakh
~56.50 lakh
PREPAYING HOME LOAN
DAUGHTERS MARRIAGE
(2022) - home loan interest

considered 10 per cent

10 per cent
Current home loan due
~26 lakh
~10 lakh
~67.30 lakh
RETIREMENT PLANNING
(2035) - return expected 9 per cent, inflation 7 per cent (Life
expectancy 85 years
Current annual
Future annual
expenses:
Corpus
required:
~2.52 lakh
~9.75 lakh
~2.09 crore
Assets
Savings account
45,000
Fixed deposits
50,000
EPF
2,46,000
1,43,000
69,84,000
Net worth
43,84,000
Liabilities
Home loan 26,00,000
26,00,000
>FINDINGS
EMERGENCY FUND: Present savings account balance and fixed
deposit (FD) do not even cover two months of expenses
LIFE INSURANCE: Viren and Vidya are covered for ~56 lakh and
~3 lakh, respectively, through combination of term insurance
and endowment plans
HEALTH INSURANCE: Family covered for ~3 lakh through
employer-provided medical cover
INVESTMENTS: No investments except for accumulated
employee benefits, as most of investments were used to buy
the new house
LIABILITIES: Viren is servicing a home loan with a tenure of 15
years and present equated monthly instalment is ~27,940
>RECOMMENDATIONS
EMERGENCY FUND: The couple needs to maintain ~1.5 lakh
towards short-term emergency. They need to start a recurring
deposit (RD) of ~5,000 a month for a year to create an
emergency fund, which can take care of three months of
expenses
LIFE INSURANCE: Viren needs to take an additional cover of
~90 lakh, while Vidyas cover is adequate. A suitable online
term insurance for Viren for a 20-year term will cost
HEALTH INSURANCE: Viren needs to take a family floater health
cover of ~3 lakh. The premium for this should be ~9,000
ACCIDENT INSURANCE: Viren needs to take a personal accident
cover of ~ 50 lakh, with ~ 10 lakh on temporary total disability.
The annaul premium for the same will be around ~8,000
>PLANNING FOR GOALS

DAUGHTERS COLLEGE AND POSTGRADUATION FUNDING
(2027-31): The couple needs to invest ~13,000 per month in a
mutual fund (MF)s portfolio comprising 70 per cent equity
and 30 per cent debt. Due to low surplus, the couple can only
manage ~7,000 a month now. Once the RD for emergency gets
over, that monthly amount can be diverted for this goal.
DAUGHTERS MARRIAGE (2032): Need to invest ~6,500 per
month in a MFs portfolio comprising 70 per cent equity and 30
per cent debt. This is also not possible at present due to low
surplus. As and when the surplus increases the same should
be diverted to this goal.
Rate of return assumed on the mutual funds portfolio:
11 per cent
PREPAYING HOME LOAN (2022): Since there is no surplus, this
cannot be planned at the moment. On subsequent pay hikes,
Viren should try and increase his EMI so that the tenure comes
down.
RETIREMENT PLANNING (2032): His Employees' Provident Fund
will reach a corpus of ~57. 60 lakh if he continues working till
retirement. He needs to invest ~ 17,500 a month in a
combination of PPF (30 per cent) and large-cap equity funds
(70 per cent). This is not possible at present.
Annual rate of return assumed: 11 per cent on the mutual
funds portfolio. 8 per cent in EPF & PPF
CASE STUDY
SHARMAs
Aditya (40), Kamini (35), Arushi (11), Aditi (7)
RESIDE IN
NET ANNUAL INCOME
RATING
Pune
~16.56 lakh
7/10
>FAMILY PROFILE
Aditya is a territory manager with a biomedical company, while
his wife, Kamini, works in the purchase department of an autoancillary company. They have been diligently managing their
finances since marriage and have created good assets. Their
primary goals are to fund their childrens education and
marriage, followed by loan repayment and retirement.
Basic expenses (~)
Household
Home loan -1
Home loan -2
Daughters education
Insurance premium
Total
Per month (~)

43,000
21,492
18,268
8,000
7,833
98,593
Annual (~)
5,16,000
25,7905
2,19,216
96,000
94,000
11,83,121
>GOALS
ARUSHIS COLLEGE AND
POST-GRADUATION
ADITIS COLLEGE AND

POST- GRADUATION
(2022 -2026) (inflation 9%)
(2026 to 2030) (inflation 9%)
~20 lakh
~61.85 lakh
HOME LOAN REPAYMENT

(2020) (present floating rate interest 10 %)
Current dues: ~33 lakh
RETIREMENT PLANNING
(2035) (return expected 9 %, inflation 7 %) (Life expectancy: 85 yrs)
expenses :
Future annual
expenses:
Corpus
required:
~5.16 lakh
~20 lakh
~4.28 crore
Assets
Savings account
1,68,000
Fixed deposits
2,86,000
EPF
5,34,000
1,43,000
Equity mutual funds
7,34,000
Invested property
46,00,000
1,39,65,000
Net worth
1,06,65,000
Liabilities
Home loan 1 16,00,000

Home loan 2 17,00,000
33,00,000
>FINDINGS
EMERGENCY FUND: Five months of expenses maintained in the
form of savings account and fixed deposits
LIFE INSURANCE: Aditya and Kamini are covered for
~1.15-crore and ~10 lakh, respectively, through term
insurance and traditional plans
HEALTH INSURANCE: The family is covered for ~3 lakh through each
employer, provided medical cover. Additionally they have a
~5 lakh floater cover.
INVESTMENTS: Very well-diversified in property, equity and debt
LIABILITIES: Aditya and Kamini are servicing home loans of ~16
lakh and ~17 lakh, respectively, taken for each of the properties
>RECOMMENDATIONS
EMERGENCYFUND: The couple can maintain ~1.5 lakh in a flexi FD
account and another ~1.50 lakh in ultra short-term funds
LIFE INSURANCE: Aditya and Kamini needs to take an additional cover of ~25 lakh, while Kamini needs to enhance her
cover by another ~25 lakh. A suitable online term insurance
for both can cost approximately ~8,000 per annum
HEALTH INSURANCE: The family can take a top-up cover of ~ 10
lakh, with a ~3-lakh deductible option, which will cost them
approximately ~7,000 per annum
ACCIDENT INSURANCE: Aditya needs to take a personal accident
cover of ~50 lakh, with ~15 lakh temporary total disability

(TTD), while Kamini should take a personal accident cover of
~25 lakh, with ~5 lakh TTD. The premium will be ~10,000.
>PLANNING FOR GOALS

ARUSHIS EDUCATION (2022-26): The couple needs to invest
~23,000 per month in a mutual fund (MF)s portfolio
comprising 60 per cent equity and 40 per cent debt
Annual rate of return assumed: 11%
ADITIS EDUCATION (2026 TO 2030): The couple needs to invest

~16,000 a month in a MFs portfolio comprising 70 per cent
equity and 30 per cent debt
Annual rate of return assumed: 12%
PREPAYING HOME LOAN (2019): They can use their MF

investments to make a prepayment of ~2 lakh each presently
that will reduce their tenure to eight years and 11.5 year for
Aditya and Kamini, respectively. Subsequently they need to use
their bonuses and other incentives to further prepay in five years
Home loan interest considered: 10%
DAUGHTERS MARRIAGE (2029 AND 2033) : The couple need to

invest ~9,000 and ~7,500, respectively, for each daughters
marriage in a MFs portfolio of 70per cent equity and 30per cent
debt for this goal. Presently there is no surplus
RETIREMENT PLANNING (2036): The couples EPF will reach a
corpus of ~72. 30 lakh if both continue working till retirement.
Their second property will be worth ~2.57 crore at that time. For
the shortfall, they need to invest ~11,500 a month in a 70 per
cent equity and 30 per cent debt MFs portfolio, not possible at
the moment. Once the home loan is paid off, the EMI savings
can be diverted for this goal
Annual rate of return assumed: 11 per cent on the mutual funds
portfolio, 8 per cent in EPF, 9 per cent on property.
CASE STUDY
GUPTAs
Manish (33), Aditi (28), Raghav (5)
RESIDE IN
NET ANNUAL INCOME
RATING
Mira Road,
Mumbai
~9 lakh
6/10
>STATUS & GOALS

Manish works as a senior engineer in a Mumbai-based real
estate firm, while his wife, Aditi, is a homemaker. The primary
goal of the couple is to plan for their sons education and his
marriage. They would then want to plan for their retirement
Basic expenses (~)
Household
Sons education
Home loan EMI
Insurance premium
Total
Per month (~)

28,000
5,000
16,581
3,500
53,081
Annual (~)
3,36,000
60,000
1,98,972
42,000
6,36,972
>GOALS
SONS EDUCATION
SONS MARRIAGE
(2028 to 2032) Inflation 9 per cent
(2036) - Inflation 10 per cent
Current value:
Future value:
~20 lakh
~75 lakh
~10 lakh
~74 lakh
RETIREMENT PLANNING
(2036) - (Inflation 7 per cent, Annual rate of return on corpus 9
per cent, life expectancy 85 years)
Future annual
expenses:
Corpus
required:
~18.23 lakh
~3.10 crore
~3.36 lakh
Assets
Self-occupied house
Savings account
Fixed deposits
EPF
Equity mutual funds
Net worth
48,00,000
73,000
3,00,000
4,24,000
3,63,000
59,60,000
49,60,000
Liabilities
Home loan
10,00,000
10,00,000
>FINDINGS
EMERGENCY FUND: Good amount of funds maintained in
liquid form in savings account and fixed deposits
LIFE INSURANCE: Manish is covered for ~55 lakh through a
term insurance and endowment plan, not adequate. Aditi
has an insurance cover of ~5 lakh
through employer and an additional separate family floater
health insurance of ~3 lakh
INVESTMENTS: Investment portfolio is diversified, with
30 per cent allocation to equity
LIABILITIES: There is a home loan due of ~10 lakh, with a
balance tenure of nine years
>RECOMMENDATIONS
EMERGENCY FUND: The present savings account balance can
be maintained. Additionally, ~1.30 lakh fixed deposit can be

earmarked for contingency
LIFE INSURANCE: Manish needs an additional insurance cover
of ~1 crore. A suitable term plan for 20 years will cost ~20,000
per annum. Aditi does not require any additional cover
HEALTH INSURANCE: Manish should take a top-up cover of
~10 lakh, with a ~3-lakh deductible. This will cost him
~5,000 per annum
ACCIDENT INSURANCE: A personal accident policy of
~25 lakh, with ~10 lakh as temporary total disability benefit,
is recommended for Manish. The premium for this should
be ~4,000
>PLANNING FOR GOALS

SONS EDUCATION (2028 TO 2032): Manish should start
systematic investment plans (SIPs) of ~14,500 in balanced
mutual funds (MFs)
Rate of return assumed: 12 per cent on this portfolio
SONS MARRIAGE (2036) : Need to save ~6,500 a month in
the ratio of 70 per cent equity and 30 per cent debt in MFs
RETIREMENT PLANNING (2024): Manishs Employees'
Provident Fund (EPF) will fetch him ~80 lakh at retirement,
while his existing equity MFs will be worth ~62 lakh at
retirement. For the shortfall, he will need to invest ~16,000
in a 70:30 ratio in equity and debt MFs. At present, there is
no surplus after allocating all monthly surpluses to other
goals. Yearly salary increments can be diverted for this
goal.Once the home loan is prepaid, the resulting equated
monthly instalment can also be diverted for this goal
Rate of return assumed: 8 per cent in EPF and debt funds,
12 per cent in equity mutual funds
BUDGET: ~50 lakh-~1 crore
Realty check
of ~50 lakh-1 crore. If you are looking at
buying real estate and your budget falls
within this range, an idea about prevailing
rates would come in handy
AMRITSAR
Airport Road
Tarn Taran Road
Avg price (~/sq ft)
3,300
2,300
2,286
2,300
3,325
2,487
5,000
3,383
3,251
1,950
2,239
1,386
2,070
1,856
4,121
4,433
4,450
2,600
5,586
1,713
1,518
1,532
2,250
1,430
BHOPAL
Hoshangabad Road
Kolar road
JK Road
E-8 Extension
Arera Colony
THIRUVANANTHAPURAM
Kazhakoottam
Sreekaryam
Akkulam Lake
Vattiyoorkavu
Sasthamangalam
Notes: Ticket price range considered for the above data points is 50 Lakh to 1 crore, All the data
points discussed refer to primary market only; above residential data set comprises residential
apartments only; Above residential data is representative of organized real estate developers
only Data till June 2015
Source: PropEquity
CASE STUDY
SAHNIs
Pratibha (48), Kripa (18), Kanchan (71)
RESIDE IN
NET ANNUAL INCOME
RATING
Mumbai
~20.16 lakh
7/10
>FAMILY PROFILE
Pratibha works as head of human resources in a Mumbaibased mid-sized information technology company. She is
divorced and stays with her daughter and mother in her own
apartment. She has been investing in property for several
years and has now decided to take a look at her finances and
possibility of financing her daughters architecture degree and
postgraduation studies, followed by marriage
Basic expenses (~)
Per month (~)
Household
73,000
Daughters regular expenses
7,000
Home loan - EMI 1
38,689
Home loan - EMI 2
22,107
Insurance premium
3,500
Total
1,44,296
Annual (~)
8,76,000
84,000
4,64,268
2,65,284
42,000
17,31,552
>GOALS
KRIPAS ARCHITECTURE
DEGREE COURSE FUNDING
KRIPAS ARCHITECTURE
PG EDUCATION
(2016 to 2019) (Inflation 10%)

(2020 to 2021) (Inflation 10%)

~12 lakh
~15 lakh
~32 lakh
~20 lakh
KRIPAS MARRIAGE (2023) (Inflation 10%)

Future value: ~43
lakh
RETIREMENT PLANNING
(2027) (Inflation 7 per cent, Rate of return on corpus 9 per cent)
(Life expectancy 85 years
Future annual
expenses:
Corpus
required:
~19.72 lakh
~4 crore
~8.76 lakh
Assets
Liabilities
Savings account
1,54,000 Home loan (1) 28,00,000
Fixed deposits
50,000 Home loan (2) 18,00,000
EPF
8,63,000
Equity mutual funds
2,13,000
Shares
7,32,000
Invested property-1
85,00,000
Invested property-2
45,00,000
3,35,12,000
46,00,000
Net worth
2,89,12,000
>FINDINGS
EMERGENCY FUND: Contingency fund not maintained. Savings
account and fixed deposits can take care of a little more than
one months expenses
LIFE INSURANCE: Pratibha is covered for ~16 lakh through
various traditional and unit-linked insurance plan policies.
Her employer has also provided her a cover of ~50 lakh
HEALTH INSURANCE: The family is covered for ~5 lakh through
employer. Additionally, Pratibhas mother is covered for
~3 lakh through a senior citizens plan
INVESTMENTS: About 90 per cent of her investments are in real
estate. Almost eight per cent is in debt and two per cent in equity
LIABILITIES: There are two home loans for her two property
investments. The total loan due is ~46 lakh
>RECOMMENDATIONS
maintained. She should also start a recurring deposit of

~20,000 for two years to build up a three-month emergency
fund
LIFE INSURANCE: Pratibha does not need any additional life
insurance cover
HEALTH INSURANCE: Pratibha should take an individual cover of
~5 lakh for self and daughter. Additionally, she should take a
top-up plan of ~15 lakh. The total premium will be ~20,000
~15 lakh as temporary total disability benefit, is recommended
for Pratibha. The premium for this should be ~90,00
>PLANNING FOR GOALS

KRIPAS ARCHITECTURE DEGREE COURSE FUNDING AND
POST-GRADUATION: Presently, Pratibha is facing a liquidity
issue due to her expensive lifestyle and loan payments. She
needs to sell her property of ~85 lakh and use the proceeds
to pay off her two home loans. The long-term gains of
~20 lakh should be invested in capital gains bonds.
Additionally, ~19 lakh can be invested in short-term debt
funds to take care of funding for the next four years. The
interest on capital gains bonds should be invested in
balanced funds. This, with the capital gains bonds principal
received in 2018, should be able to fund Kripas degree and
post-graduation expenses
Annual rate of return assumed: 8% post tax on debt funds
and 10% on balanced funds. 6% on capital gains bonds.
KRIPAS MARRIAGE (2023) : She needs to invest ~28,000 every
month in balanced funds. Once the home loans are paid off,
there will be enough liquidity to support this investment.
Rate of return assumed: 11% on this portfolio.
RETIREMENT PLANNING (2027) : Pratibhas Employees'
Provident Fund will fetch her ~61 lakh at retirement, while
her existing equity MFs and shares will be worth ~47 lakh.
Her second lower value property will be worth ~1.26 crore at
retirement. For the shortfall, she will have to invest ~55,000
in a 60 per cent equity and 40 per cent debt MFs portfolio.
Once her loans are paid off and her contingency fund is
built, she can easily manage this investment to achieve her
retirement corpus
Rate of return assumed: 8% in EPF, 9% on property, 11% on
the mutual funds portfolio, 15% on shares.
CASE STUDY
DCOSTAs
Henry (30), Father (58), Mother (54)
RESIDE IN
NET ANNUAL INCOME
RATING
Mumbai
~8.16 lakh
6/10
>STATUS & GOALS

Henry is an assistant manager (digital media) with a small
advertising firm in Mumbai. He is single and stays with his
parents. His father is still working and mother is a
housewife. Henry wants to plan for his marriage funding
and retirement.
Basic expenses (~)
Household & lifestyle
Insurance premium
Total
Per month (~)

30,000
30,750
60,750
Annual (~)
3,60,000
3,69,000
7,29,000
>GOALS
MARRIAGE FUNDING
BUYING A CAR
Current value:
Future value:
~5 lakh
~6.05 lakh
~6 lakh
~7 lakh
RETIREMENT PLANNING
(2040) (Annual inflation 7 per cent, annual rate of return on
corpus 9 per cent) (Life expectancy - 85 years)
Current annual retirement expenses
(considering household expenses and
mediclaim premia):
~3.60 lakh
Assets
Savings account
EPF
PPF
Equity mutual funds
Net worth
Future annual
expenses:
~4.54 lakh
25,000
1,03,000
7,32,000
65,000
7,32,000
16,57,000
16,57,000
>FINDINGS
EMERGENCY FUND: Contingency fund not maintained, since
his parents maintain a good amount in their savings
account and fixed deposits. He is depending on them for
contingency.
LIFE INSURANCE: Henry is covered for ~85 lakh through
various traditional and term insurance policies. Almost 50
per cent of his income goes towards insurance premiums,
which is very high.
HEALTH INSURANCE: Henry and his parents are covered for
~3 lakh each through an individual health insurance policy.
His employer also covers him for ~2 lakh.
INVESTMENTS: Majority of his investments are in debt, with
a very high allocation to insurance products, which his
parents consider as investment.
>RECOMMENDATIONS
maintained. He should also surrender his traditional

insurance policies and deposit ~1 lakh from it in an
ultra-short bond fund.
LIFE INSURANCE: Considering need-based approach and
post surrender of traditional insurance policies, his cover of
~50 lakh (post surrender) is sufficient as of now, since his
parents are also independent.
HEALTH INSURANCE: Henry should take a top-up policy of
~10 lakh for his parents and self. The premium for the same
will be approximately ~30,000.
recommended for Henry. The premium for this should be
approximately ~8,500.
>PLANNING FOR GOALS

MARRIAGE FUNDING (2017) : From the ~7.32 lakh received
from surrender of insurance policies, ~5.25 lakh can be
invested in short-term debt funds for two years for the
marriage goal.
Rate of return assumed: Eight per cent post tax on ultrashort debt funds.
BUYING A CAR (2017) : Henry needs to invest ~27,000 every
month in ultra-short debt funds for 24 months for this goal.
Annual rate of return assumed: Eight per cent post tax on
ultra-short debt funds.
RETIREMENT PLANNING (2040):Henry's Employees' Provident
Fund will fetch him ~46.50 lakh at retirement, considering
that he continues with employment and does not
withdraw his PF, while his existing equity mutual funds will
be worth ~11 lakh. His Public Provident Fund will fetch him
around ~86 lakh, considering an annual investment of
~50,000. For the shortfall, he needs to invest ~17,000 a
month for 25 years, in a ratio of 80 per cent equity and 20
per cent debt in mutual funds.
CASE STUDY
PATKARs
Sunil (37), Mrinal (36), Suhas (10), Minal (6)
RESIDE IN
NET ANNUAL INCOME
RATING
Mumbai
~30.60 lakh
8/10
>STATUS & GOALS

Sunil works in the research and development department of a
pharma company, while his wife, Mrinal, runs a consultancy
on child development. The couple has created good assets over
the years and have chosen to remain debt-free. Their goal is to
use the good cashflows to invest for their childrens education
and marriage. They would also like to retire early if possible and
work in the area of child development for the underprivileged
section of society
Basic expenses (~)
Childrens education
Vacation & travel
Insurance premium
Total
Per month (~)

58,000
13,000
25,000
10,917
1,06,917
Annual (~)
6,96,000
1,56,000
3,00,000
1,31,000
12,83,000
Net monthly surplus: ~1,48,083
>GOALS
SONS COLLEGE AND
POSTGRADUATION FUNDING
DAUGHTERS COLLEGE AND

(2023 to 2027) (Inflation 9%)

(2027 to 2031) (Inflation 9%)

~40 lakh
~1.02 crore
~40 lakh
~1.45 crore
SONS MARRIAGE
FUNDING
DAUGHTERS MARRIAGE
FUNDING


~20 lakh
~92 lakh
~20 lakh
~1.22 crore
RETIREMENT PLANNING
(2028) (Annual inflation 7 per cent, rate of return on corpus 9 per
cent) (Life expectancy - 85 years)
Future annual
expenses:
Corpus
required:
~24 lakh
~6.24 crore
~9. 96 lakh
Assets
Savings account
3,16,000
Fixed deposits
3,85,000
EPF
8,35,000
PPF
5,40,000
Equity mutual funds
11,00,000
4,35,000
Invested commercial property 45,00,000
Self-occupied property
1,20,00,000
2,01,11,000
Net worth
2,01,11,000
>FINDINGS
EMERGENCY FUND: The couple have maintained three months of
expenses in their savings account and additional provision
maintained in fixed deposits
LIFE INSURANCE: Sunil is covered for ~45 lakh through various
traditional and term insurance policies, while Mrinal is covered
for ~12 lakh via traditional policies. Sunil is underinsured
HEALTH INSURANCE: The family is covered through Sunil's
employer for ~5 lakh, while they also have an additional
family floater policy of ~10 lakh
INVESTMENTS: Well diversified portfolio, with 50 per cent in real
estate and the rest in debt and equity
>RECOMMENDATIONS
EMERGENCY FUND: ~2 lakh from savings account can be maintained in a flexi fixed deposit and the rest can be maintained in
liquid funds to take care of three months of emergency
LIFE INSURANCE: Sunil needs a cover of ~3 crore and Mrinal ~25
lakh. Both should buy term insurance for 20 years and the
annual premium for both should be ~60,000
HEALTH INSURANCE: The family should take a ~15-lakh super
top-up policy, with a deductible of ~5 lakh. The annual
premium will be ~8,500
with ~15 lakh as temporary total disability benefit (TTD), is

recommended for Sunil. Mrinal should take a personal
accident cover of ~25 lakh, with TTD benefit of ~3 lakh. The
premium for this should be approximately ~20,000
>PLANNING FOR GOALS

SON'S COLLEGE AND POSTGRADUATION FUNDING (2023- 2027):
Sunil needs to invest ~38,000 every month in a balanced
funds portfolio for 12 years
Rate of return assumed: 12% post tax in balanced funds
DAUGHTER'S COLLEGE AND POSTGRADUATION FUNDING (20272031): ~27,000 needs to be invested every month in large-cap
and multi-cap funds for 15 years
Rate of return assumed: 13% post tax on this portfolio.
SON'S MARRIAGE FUNDING (2031): ~15,000 needs to be
invested in multi-cap funds for 16 years
Rate of return assumed: 13% post tax on this portfolio
DAUGHTER'S MARRIAGE FUNDING: ~12,000 needs to be
invested in multi-cap funds for 19 years
Rate of return assumed: 13% post tax on this portfolio
RETIREMENT PLANNING (2028) : Sunil's Employees Provident
Fund will fetch him ~86 lakh at retirement, considering he
continues with employment and does not withdraw his PF,
while his existing equity MF will be worth ~48 lakh. His Public
Provident Fund will fetch him ~47 lakh, considering an annual
investment of ~1,50,000. His commercial property will be worth
~1.38 crore. For the shortfall, he needs to invest ~82,000 per
month for 13 years in ratio of 80 per cent equity and 20 per cent
debt in MFs. Currently, ~50,000 can be invested out of the
surplus (considering allocations to other goals). Annual salary
hikes and bonuses can be used to invest for this goal
Rate of return assumed: 8% in EPF and PPF, 9%
on property, 12% on the mutual funds portfolio
CASE STUDY
MENONs
Krishnaraj (49), Kavita (47), Shruti (15)
RESIDE IN
NET ANNUAL INCOME
RATING
Mumbai
~39.84 lakh
9/10
>FAMILY PROFILE
Krishnaraj is in the business of trading and exporting
chemicals, while his wife, Kavita, is a homemaker. Their
daughter, Shruti, is studying in the tenth standard. The family
is financially sound and has created good assets over the
years. Their primary goal is funds Shrutis college education
and marriage. Retirement is not really their priority but still
Krishnaraj would like to take it easy once he reaches 65.
Basic expenses (~)
Daughters education
Vacation & travel
Insurance premium
Total
Per month (~)

85,000
10,000
16,667
32,917
1,44,583
Annual (~)
10,20,000
1,20,000
2,00,000
3,95,000
17,35,000
>GOALS
DAUGHTERS MARRIAGE
FUNDING
DAUGHTERS COLLEGE &

POST-GRADUATION
FUNDING
(2018-2022) - Inflation 10%

~53 lakh
~64.85 lakh
RETIREMENT PLANNING
(2031, Inflation 7%, Rate of return on corpus 9%,
Life expectancy - 85 years)
household expenses,
vacation and mediclaim
premiums):
Future annual
expenses:
Corpus
required:
~36 lakh
~6.07 crore
~ 12.20 lakh
Assets
Liabilities
Savings account
4,23,000
Fixed deposits
25,46,000
PPF
8,65,000
Equity mutual funds
4,75,000
Shares
11,75,000
13,55,000
Mutual funds
6,43,000
Invested in commercial
property
1,20,00,000
Invested in residential
property
70,00,000
4,68,39,000
4,68,39,000
Net worth
>FINDINGS
EMERGENCY FUND: Adequate contingency arrangements in the
form of savings account and fixed deposits

LIFE INSURANCE: Krishnaraj is covered for ~1.20 crore through
various traditional, unit-linked insurance plan (Ulip )and
term insurance policies. Kavita is covered for ~10 lakh
through endowment policies
HEALTH INSURANCE: Each member is covered for ~10 lakh
through individual mediclaim cover. The couple also have a
~10 lakh critical illness policy
INVESTMENTS: About 79 per cent of allocation is towards
property, with debt allocation of 14 per cent and rest in equity
>RECOMMENDATIONS
EMERGENCYFUND: Being in business, Krishnaraj should maintain
a separate contingency fund for his business. For his familys

contingency, he needs to maintain around ~2 lakh in a flexi fixed
deposit and ~3 lakh can be invested in ultra-short bond funds
LIFE INSURANCE: Considering the assets back up, both Krishnaraj
and Kavita dont require any additional insurance cover
HEALTH INSURANCE: Krishnaraj should take a super top-up
policy of ~15 lakh for himself and his wife with a deductible of
~5 lakh. The premium for this will be around ~9,000
~15 lakh as temporary total disability, benefit is recommended
for Krishnaraj. The premium for this should be ~12,000
>PLANNING FOR GOALS

DAUGHTERS COLLEGE & POST-GRADUATION FUNDING (20182022): From the fixed deposits, ~9.65 lakh should be invested
in short-term debt funds, which can take care of three years
of college education. For post-graduation, systematic
investment plans (SIPs) of ~32,000 needs to be invested for six
years and ~28,000 for seven years in balance mutual funds.
Rate of return assumed: 8.5 per cent post tax on debt funds,
10 per cent in balance funds for this duration
DAUGHTERS MARRIAGE FUNDING (2025) :SIPs of ~28,000 need
to be invested in 70 per cent equity and 30 per cent debt in
MFs. The equity MFs can be a mix of large and multi-cap funds.
RETIREMENT PLANNING (2031) : Krishnarajs Public Provident
Fund will fetch him ~75 lakh at retirement, considering that he
invests ~1,50,000 every year. His shares and equity MFs will be
worth ~1.10 crore and ~29 lakh, respectively. His commercial
property will be worth ~4.76 crore at retirement. He can
continue earning rent on his other residential property. In this
case, the retirement corpus will exceed the required corpus.
Rate of return assumed: 8 per cent in PPF, 12 per cent in
mutual funds, 15 per cent in shares, 9 per cent in property
CASE STUDY
JADHAVs
Shailesh (37), Vaishali (32), Saili (6), Sanika (3)
RESIDE IN
NET ANNUAL INCOME
RATING
Pune
~9.36 lakh
6/10
>STATUS & GOALS

Shailesh is an information technology manager with an engineering firm in Pune, while Vaishali is a former teacher. They
recently purchased a two-bedroom flat, in which they are
living. Their primary goal is funding their daughters education
and marriage. They want to prepay their home loan and then
focus on retirement. Vaishali might soon take up a job.
Basic expenses (~)
Home loan
Children's education
Insurance premium
Total
Per month (~)

24,000
27,940
10,000
4,500
66,440
Annual (~)
2,88,000
3,35,277
1,20,000
54,000
7,97,277
>GOALS
SAILIS COLLEGE & POSTGRADUATION FUNDING
SANIKAS COLLEGE & POSTGRADUATION FUNDING
(2027-2031) - Inflation 10%
(2030-2034) - Inflation 10%
~16 lakh
~16 lakh
~56 lakh
~73 lakh
SAILIS MARRIAGE
FUNDING
SANIKAS MARRIAGE
FUNDING
(2035, Inflation 10%)
(2038, Inflation 10%)
~5 lakh
~33.60 lakh ~5 lakh
~44.77 lakh
HOME LOAN PREPAYMENT

(2022, Home loan interest 10%)
Present home loan dues:
~26 lakh
RETIREMENT PLANNING
(2038, inflation 7%, annual rate of return on corpus 9%) (Life
expectancy 85 years)
Future annual
expenses:
Corpus
required:
~14.12 lakh
~2.85 crore
~ 2.98 lakh
Assets
Savings account
65,000
Fixed deposits
1,25,000
EPF
2,65,000
Equity mutual funds
1,15,000
Shares
38,000
Insurance value
1,65,000
65,73,000
39,73,000
Net worth
Liabilities
Home loan 26,00,000
26,00,000
>FINDINGS
EMERGENCY FUND: Present savings account and fixed deposits
can take care of three months of expenses, which is good.
LIFE INSURANCE: Shailesh is covered for ~56 lakh through two
traditional and a term insurance policy, while Vaishali is
covered for ~2 lakh through a traditional policy.
HEALTH INSURANCE: Shaileshs employer provides ~3 lakh of
floater health cover for his family and additionally the family
has taken a separate family floater of ~5 lakh.
INVESTMENTS: Presently 30 per cent of investments are allocated
to equity and the rest to debt. Equity exposure low at this age.
LIABILITIES: Currently, servicing a home loan of ~26 lakh.
>RECOMMENDATIONS
EMERGENCY FUND: An systematic investment plan of ~9,000
should be done in liquid funds for 18 months to build six
months of contingency fund.
LIFE INSURANCE: Shailesh needs an extra cover of ~1.35 crore.
HEALTH INSURANCE: Currently, the health cover is adequate.
~5 lakh as temporary total disability benefit, is recommended
for Shailesh. The premium for this should be ~4,000.
>PLANNING FOR GOALS

SAILIS COLLEGE & POSTGRADUATION FUNDING (2027-2031) :
SIPs of ~12,000 needs to be invested for this goal for a period of
14 years in balanced mutual funds. At present this is possible
only after 18 months. If investments are done after two years
then SIPs of ~16,000 needs to be done for 12 years.
Rate of return assumed: 12% in balanced funds for this duration.
SANIKAS COLLEGE & POSTGRADUATION FUNDING (2030-2034):
SIPs of ~10,000 needs to be invested for 18 years in large and
multi-cap funds. This investment is possible once Vaishali
takes up a job later this year.
Rate of return assumed: 13% on this mutual funds portfolio
SAILIS AND SANIKAS MARRIAGE FUNDING (2035 AND 2038):
SIPs of ~3,500 and ~4,500 need to be done for 20 years and 23
years, respectively. Not possible at present due to low surplus.
HOME LOAN PREPAYMENT (2022): With current cashflows, its
difficult to close the loan by 2022. Once Vaishali gets a job, then
her surplus cashflows can be used for this.
RETIREMENT PLANNING (2038): Shaileshs EPF will fetch him
~1.40 crore at retirement. He will need to invest ~10,000 per
month in mutual funds in 70 per cent equity and 30 per cent
debt for 23 years, not possible at present. If he starts investing
after seven years he will need to invest ~19,500 per month
for 16 years.
Rate of return assumed: 8% in EPF, 12% in MFs
CASE STUDY
KANCHANs
Keshav (45), Ishita (38), Kris (8)
RESIDE IN
NET ANNUAL INCOME
RATING
Mira Road,
near Mumbai
~11.04 lakh
4/10
>STATUS & GOALS

Keshav is a sales manager in an automobiles showroom for a
well-known brand, while his wife is a purchase officer in an
engineering firm. The family has lost many precious years in a
lavish lifestyle during which they accumulated huge credit card
debt and also few other loans. They now want to plan for their
sons education and their own retirement. Keshav also wants
to start his own restaurant and plan for a bigger house.
Basic expenses (~)
Home loan
Car loan
Sons education
Insurance premium
Total
Per month (~)

33,000
11,821
10,871
12,000
2,000
69,692
Annual (~)
3,96,000
1,41,848
1,30,455
1,44,000
24,000
8,36,302
>GOALS
SONS MARRIAGE
FUNDING
(2025-2029) - Inflation 9 per cent (2033) - Inflation 10 per cent

Current value:
Future value:
~15 lakh
~44.50 lakh ~5 lakh
STARTING A SMALL
RESTAURANT
~27.80 lakh
BUYING A 2BHK FLAT

(2017)
Capital required in 2017:
Current value:
Future value:
~5 lakh
~55 lakh
~71 lakh
RETIREMENT PLANNING
(2035) - (Inflation 7 per cent, Rate of return on corpus 9 per cent)
(Life expectancy 85 years)
mediclaim premia):
Future annual
expenses:
Corpus
required:
~15.32 lakh
~2.58 crore
~3.96 lakh
Assets
Savings account
37,000
EPF
2,65,000
Equity mutual funds
1,87,000
21,000
52,10,000
Net worth
39,80,000
Liabilities
Home loan
Car loan
7,54,000
4,76,000
12,30,000
>FINDINGS
EMERGENCY FUND: Present savings account balance does not
even cover one months expense
LIFE INSURANCE:Keshav and Ishita are covered for ~3 lakh
through traditional insurance policies. Both are underinsured
HEALTH INSURANCE: Keshav and Ishitas employers provide
~3 lakh of floater health cover each for the family. They dont
have any separate health insurance policy
INVESTMENTS:Very little investments, in the form of Employees'
Provident Fund (EPF) and tax-saving mutual funds (MFs)
LIABILITIES: Currently, servicing a home and car loan, with
balance periods of eight years and four-and-a-half years,
respectively
>RECOMMENDATIONS
EMERGENCY FUND: Need to create a contingency fund of ~2 lakh.
Systematic investment plans (SIPs) of ~ 15,000 can be done in
liquid funds for one year to create the emergency fund
LIFE INSURANCE:Keshav needs a life cover of ~2 crore. Ishita
needs a cover of ~50 lakh. Both can take a term insurance policy
for 15 years. The total annual premium will be ~50,000
HEALTH INSURANCE:They need to take a separate family floater
cover for ~5 lakh. The premium for the same will be ~ 12,000
with ~ 10 lakh as temporary total disabilty (TTD) benefit, is
recommended for Keshav, while Ishita should take a
personal accident cover of ~25 lakh, with ~5 lakh as TTD. The
premium for this should be approximately ~12,000
>PLANNING FOR GOALS

SONS COLLEGE & POSTGRADUATION FUNDING (2025-2029) :SIPs
of ~13,000 need to be invested for 10 years in balance MFs.
Rate of return assumed: 12% in balance funds for this duration.
SONS MARRIAGE FUNDING (2033) :SIPs of ~4,000 need to be
invested after one year in large-cap equity MFs for 17 years.
Rate of return assumed: 13% in large-cap funds for
this duration.
STARTING A SMALLRESTAURANT (2017) : The present equity
funds will be worth ~2.26 lakh after two years. For the shortfall,
~10,000 per month needs to be invested in ultra-short bond
funds for two years.
BUYING A 2BHK FLAT (2018) : The present house will be worth
~61 lakh after three years. The home loan dues will be ~5.30
lakh. Keshav will have to take a loan of ~15.60 lakh for 10 years.
Rate of return on property assumed: 9%, home loan
interest rate assumed at 10%.
RETIREMENT PLANNING (2035): Assuming that Keshav leaves
employment after two years to start the business and his wife
continues working for the next 20 years, her EPF at retirement
will be ~82.94 lakh. For the shortfall, they need to invest
~18,000 a month in MFs in the ratio of 70 per cent equity and 30
per cent debt for 20 years. This is not possible at present.
Assuming their cashflow situation improves after five years,
then they will have to invest ~ 35,000 a month for 15 years.
Rate of return assumed: 8% in EPF, 12% in MFs.
CASE STUDY
SHARMAs
Rishi (44), Neha (44), Nupur (14), Richa (9)
RESIDE IN
NET ANNUAL INCOME
RATING
Thane
~24 lakh
4/10
>STATUS & GOALS

Rishi works as technology head with a biotechnology firm,
while his wife, Neha, is a homemaker. Their disciplined
financial life has enabled them to create good assets. They
have been early movers in real estate, which has enabled
them to benefit from the real estate price rise over the past
decade. Their primary aim is to fund their daughters
educational and marriage, followed by retirement.
Basic expenses (~)
Daughters education
Insurance premium
Annual vacation
Total
Per month (~)

53,000
15,000
4,042
10,417
82,458
Annual (~)
6,36,000
1,80,000
48,500
1,25,000
9,89,500
>GOALS
NUPURS COLLEGE & POST- RICHAS COLLEGE & POSTGRADUATION FUNDING
GRADUATION FUNDING
(2019-2023) - Inflation 9%
(2024-2028) - Inflation 9%
Current value:
Future value:
Current value:
Future value:
~20 lakh
~34 lakh
~20 lakh
~52.51 lakh
NUPURS MARRIAGE
FUNDING
RICHAS MARRIAGE
FUNDING
(2026) -Inflation 10%
Current value:
Future value:
Current value:
~55 lakh
Future value:
~46 lakh
RETIREMENT PLANNING
(2026) (inflation 7%, Rate of return on corpus 9%)
mediclaim premia):
Future annual
expenses:
Corpus
required:
~16.30 lakh
~3.78 crore
~7.75 lakh
Assets
Liabilities
Savings account
4,32,000
EPF
6,45,000
PPF
7,12,000
Fixed deposits
8,15,000
Equity mutual funds
12,45,000
3,27,000
Self-occupied
property
1,60,00,000
Invested residential 1,25,00,000
property
3,26,76,000
Net worth
3,26,76,000
>FINDINGS
savings account and bank fixed deposits to take care of any
short-or -medium-term contingency.
LIFE INSURANCE: Rishi and Neha are covered for ~20 lakh
and ~9 lakh, respectively, through a combination of term
and traditional policies. Rishi is underinsured.
HEALTH INSURANCE: Family is covered for ~5 lakh through a
family floater provided by Rishis employer. Additionally
they also have a separate ~6 lakh floater policy.
INVESTMENTS: Good investments and very well diversified.
>RECOMMENDATIONS
EMERGENCY FUND: An amount of ~2.50 lakh can be maintained
in a flexi fixed deposit (FD) account and the rest from the
savings accounts can be moved into liquid-plus funds.
LIFE INSURANCE: Rishi needs an additional life cover of
~1 crore. Nehas cover is adequate. A suitable term plan for 15
years can be taken and the premium will be around ~21,000.
HEALTH INSURANCE: Need to take a super top-up floater plan
of ~10 lakh, with a deductible of ~5 lakh. The premium for
this will be around ~7,000 per month.
with ~15 lakh as total temporary disability benefit, is
recommended for Rishi. The premium for this should be
approximately ~12,000 per annum.
>PLANNING FOR GOALS

NUPURS COLLEGE & POST-GRADUATION FUNDING (20192023): Need to invest ~35,000 for eight years in mutual funds
(MFs) with 50 per cent allocation each in equity and debt.
Rate of return assumed: 10.5% on this portfolio
RICHAS COLLEGE & POST-GRADUATION FUNDING (20242028): Systematic investment plans (SIPs) of ~19,000 need to
be invested for 13 years in balanced MFs.
MARRIAGE OF NUPUR & RICHA (2026 & 2031) : For Nupurs
marriage, SIPs of ~11,000 need to be invested in multi-cap MFs
for 11 years, while for Richas, ~7.5 lakh needs to be invested
now from the existing FD and MFs in multi-cap funds.
RETIREMENT PLANNING (2026): At retirement, Rishis
Employees' Provident Fund and Public Provident Fund (PPF)
will fetch him ~62.30 lakh and ~25 lakh, respectively,
assuming he invests ~50,000 every year in PPF. His invested
property will be worth ~3.22 crore. After allocating surplus to
various goals, he can invest the net surplus in the ratio of 60
per cent in equity and 40 per cent in debt funds, which will
help him create a much bigger corpus for his retirement.
Rate of return assumed: 8% in EPF & PPF, 9% on property,
11% on the mutual funds portfolio.
CASE STUDY
LOBOs
Jerome (50), Rita (45), Jessica (20), Jaden (17)
RESIDE IN
NET ANNUAL INCOME
RATING
Mumbai
~17.16 lakh
5/10
>STATUS & GOALS

Jerome works for a private port in Gujarat as manager
operations, while his wife, Rita, is a part-time insurance agent.
Their casual attitude and spending on big occasions have
resulted in a lower net worth, in spite of 25 years of working
life. Jeromes recent hospitalisation and subsequent spinal
surgery also drained them of a few lakhs. They now want to
evaluate if they can fund their childrens post-graduation and
marriage expenses.
Basic expenses (~)
Children's college fees
Insurance premium
Annual vacation
Total
Per month (~)

65,000
25,000
10,208
6,667
1,06,875
Annual (~)
7,80,000
3,00,000
1,22,500
80,000
12,82,500
>GOALS
JESSICAS POSTGRADUATION FUNDING
JADENS POST-GRADUATION
FUNDING
(2016-17) (Inflation 9%)
(2019-20) (Inflation 9%)
Current value:
Future value:
Current value:
~10 lakh
Future value:
~14.75 lakh
JESSICAS MARRIAGE FUNDING

Current value:
Future value:
~7.50 lakh
~13. 30 lakh
RETIREMENT PLANNING
(2025) (Inflation 7%, Rate of return on corpus 9%)
Future annual
expenses:
Corpus
required:
~17 lakh
~3.42 crore
~8.73 lakh
Assets
Liabilities
Savings account
1,35,000
Fixed deposits
8,65,000
Equity mutual funds
3,45,000
11,56,000
1,00,01,000
Net worth
1,00,01,000
>FINDINGS
EMERGENCY FUND: Savings account and fixed deposits
adequately maintained for any emergency requirement.
LIFE INSURANCE:Jerome and Rita are covered for ~24 lakh and
~9 lakh, respectively, through traditional insurance plans.
Jerome is highly underinsured.
HEALTH INSURANCE:Family is covered for ~3 lakh through
family floater policy. Cover enhanced recently after Jeromes
surgery. No employer health cover.
INVESTMENTS:Investments are very low. Most investments are
in debt, with a 15 per cent allocation to equity.
LIABILITIES: No liabilities so far.
>RECOMMENDATIONS
EMERGENCY FUND: The present savings bank amount can be
maintained in a flexi fixed deposit (FD) account. Additionally

~2 lakh from FD can be earmarked for contingency.
LIFE INSURANCE: Jerome needs an insurance cover of ~1.65
crore, while Ritas cover is adequate. A suitable online term
plan for 10 years will cost ~50,000 per annum.
HEALTH INSURANCE: The family needs to enhance the present
floater cover to ~5 lakh in the next renewal and take a super
top-up policy of ~15 lakh, with a ~5-lakh deductible. The
premium this will be around ~ 15,000 per annum.
ACCIDENT INSURANCE:A personal accident policy of ~50 lakh,
recommended for Jerome.
>PLANNING FOR GOALS

JESSICAS POST-GRADUATION FUNDING (2016-17) :Jessicas next
years post-graduation requirement can be funded from the
existing FDs. For funding 2017 fees, systematic investment
plans (SIPs) of ~ 23,000 need to be done in ultra-short bond
funds for 24 months.
Rate of return assumed: Seven per cent post tax on FD and
ultra-short bond funds.
JADENS POST-GRADUATION FUNDING (2019-20) :Jadens postgraduation years coincides with the maturity of five insurance
policies, which will provide the required amounts.
JESSICAS MARRIAGE FUNDING (2021):~13,500 per month needs
to be invested in balanced mutual funds (MFs) for six years.
Rate of return assumed: 10 per cent in balanced mutual
funds for this duration.
RETIREMENT PLANNING (2025) : The couple will only have their
equity MFs for retirement, as FDs and the next two years of
surplus is going towards childrens goals. Their equity MFs will
be worth ~10.70 lakh at retirement. They need to invest ~21 lakh
a year to create their retirement corpus, which is not possible.
They will have to extend their working life beyond 60 and also
look at a reverse mortgage option.
Rate of return assumed: 12% on the equity mutual funds
portfolio for this duration.
CASE STUDY
NADARs
Rajendra (38), Lata (36)
RESIDE IN
NET ANNUAL INCOME
RATING
Navi Mumbai
~12.36 lakh
8/10
>STATUS & GOALS

Rajendra is a manager with a mineral water bottling firm,
while his wife, Lata, is a pharmacist with a mid-size hospital.
They have been married for 10 years and have no children.
They are planning to buy a bigger house and want to go on a
foreign holiday soon. Retirement is their last priority.
Basic expenses (~)
Insurance premium
Car loan EMI
Annual vacation
Total
Per month (~)

31,000
7,375
10,623
8,333
57,331
Annual (~)
3,72,000
88,500
1,27,476
1,00,000
6,87,976
>GOALS
BUYING A 2BHK
APARTMENT
FOREIGN TOUR ONCE IN

2 YEARS
(2017) (Inflation 9 per cent))
(2017 onwards) (Inflation 10%)
Current value:
Future value:
Current value:
Future value:
~1.05 crore
~1.25 crore
~2 lakh
each trip
~2.66 lakh
RETIREMENT PLANNING
(2037) (Inflation 7 per cent, Annual rate of return on corpus 9 per
cent) (Life expectancy 85 years)
household expenses,
premiums):
Future annual
expenses:
Corpus
required:
~21 lakh
~4.22 crore
~4.72 lakh
Assets
Liabilities
Savings account
2,87,000
Fixed deposits
11,45,000
EPF
6,32,000
PPF
5,64,000
Equity mutual funds
5,76,000
4,63,000
1,04,67,000
Net worth
1,00,67,000
Car loan
4,00,000
4,00,000
>FINDINGS
EMERGENCY FUND: Five months worth of expenses
maintained in a savings account for emergency purpose.
LIFE INSURANCE: Rajendra is covered for ~15 lakh, while Lata
is covered for ~7 lakh through traditional and unit-linked
insurance plan (Ulip) policies. They are underinsured.
HEALTH INSURANCE: The couple is covered for ~3 lakh
through Rajendras company group health insurance.
Health insurance needs to go up.
INVESTMENTS: About 80 per cent of allocation is towards
debt and 20 per cent towards equity. Equity allocation
need to go up.
LIABILITIES: Servicing a car loan, with ~4 lakh due.
>RECOMMENDATIONS
EMERGENCY FUND: Rajendra should maintain ~1.70 lakh in a
flexi fixed deposit scheme. The rest of the savings account

balance can be used for other goals.
LIFE INSURANCE: Considering the assets backup, Rajendra
needs to take an additional insurance cover of ~50 lakh, while
Lata should take a cover of ~25 lakh. The term can be 20 years.
A suitable term insurance will cost ~12,000 per annum.
HEALTH INSURANCE: Rajendra should take a separate family
floater health insurance for a sum assured of ~3 lakh and
later take a super top-up policy of ~10 lakh, with a
deductible of ~3 lakh. The premium for both the policies
combined will be around ~15,000.
with ~10 lakh as temporary total disability (TTD) benefit, is
recommended for Rajendra, while Lata should be covered
for ~25 lakh accident cover, along with ~3 lakh of TTD. The
premium for this should be around ~10,000 per annum
>PLANNING FOR GOALS

BUYING A 2BHK APARTMENT (2017) : The existing flat will be
worth ~81 lakh in 2017, considering nine per cent yearly
growth in property value. FDs will be worth ~13.10 lakh. From
FDs, an amount of ~9 lakh can be used, along with the
property sale amount to buy the two bedroom-hall-kitchen
apartment. The shortfall of ~35 lakh can be bridged with a
home loan for a 15-year period. The equated monthly
instalment of the home loan will be ~37,611. The savings
account surplus can be used to prepay the car loan, so that
they have only one loan, which is easily serviceable.
Rate of return assumed: Annual 9 per cent on property, 7 per
cent on FDs, 10 per cent on home loan interest.
FOREIGN TOUR ONCE IN TWO YEARS (2017 ONWARDS) :
Recurring deposits (RD) of ~10,500 need to be invested for
two years. As interest rates decline, the RD amount might
need to be increased.
Rate of return assumed: Annual 6.5 per cent on RDs post tax.
RETIREMENT PLANNING (2037) : The Employees' Provident Fund
corpus of the couple will be worth ~1.28 crore at retirement. The
Public Provident Fund will be worth ~86 lakh, considering an
annual investment of ~1 lakh, while mutual funds (MFs) will be
worth ~70 lakh. To bridge the shortfall, systematic investment
plansof ~11,000 need to be invested in MFs in a 70 per cent
equity and 30 per cent debt ratio for 22 years.
Rate of return assumed: Annual 8 per cent on EPF / PPF,
12 per cent on mutual funds portfolio.
12 PERSONAL FINANCE
MUMBAI | MONDAY, 26 OCTOBER 2015
>
A diamond in your budget

Opting for slightly lower scale in clarity, colour and carat weight can bring down the cost substantially
TINESH BHASIN
CASE STUDY
KUMARs
PHOTO:REUTERS
Manish (37), Vrinda (35), Manasi (6), Manav (3)
f you were planning to buy diamonds this festival or marriage

season, and worried about getting the right price, theres help.
Diamond sellers are increasingly
becoming more transparent about
pricing and quality of their precious
stones. Buyer can now log on to the
internet, compare prices based on
different features and take a more
informed call.
Take Sapna Mahajan, a physiotherapist in Mumbai, who wished
for a diamond ring since she got
married six years ago. Recently, her
husband and she purchased a 0.4
carat diamond for around ~60,000.
There has always been fear about
paying the right price. For a layman,
its not easy to assess the quality,
for a little difference here and there
can change the price. But, after a
few weeks of research and comparing the prices on the internet and at
jewellers, we gained confidence,
she says.
At the basics of evaluating a diamond are the four Cs colour, clarity, cut and carat weight. The prices,
however, can still change, depending on many aspects such as symmetry, fluorescence and depth.
Thats why a person should opt
for a diamond that is certified
by a reputed third-party body such
as Gemological Institute of America
or International Gemological
Institute, says Jignesh Mehta, managing director, Divine Solitaires. The
certification will ensure the buyer
gets the stated colour and clarity.
FOUR Cs
Colour: For the vast majority of
untrained observers, it is difficult to
distinguish the colour grade in diamonds, unless these are seen side
by side in a controlled environment.
The smaller the stone, the more difficult it becomes to distinguish
colour with a naked eye. At a jewellery shop, the lighting and illumination makes it more difficult.
For example, the best diamonds
are considered to be colourless. But,
within these, there are three classifications D, E, and F. This is where
the certification comes handy. The
grading varies from colourless to diamonds with a yellow tinge. Theres
also high demand for pink diamonds, rare and more expensive.
Tip: If you have a low budget and
opt for a diamond less than one
JEHANGIR GAI
Dinesh Chandra Porwal owned a
truck, insured with New India
Assurance for ~3.15 lakh with
unlimited third-party property
damage cover. The truck was being
driven from Sonepat to Daman by
Surinder Singh, who held a licence
renewed by the regional transport
office (RTO), Ajmer, valid from
March 30, 2000 to March 29, 2003.
PRIYAM DAGA
Founder Director, Auric Institute of
Jewellery Design & Gemological Lab
COLOUR SCALE
D E F G H I J K L MN O P Q R S T U VW X Y Z
COLOURLESS NEAR COLOURLESS
carat, opting for colour grades G to J
can help bring down the cost by
around 20 per cent. These will also
appear as colourless as the highest
graded diamond.
Clarity: This is a measure of internal
defects of a stone, called as inclusions. These can be crystals of a foreign material or other structural
imperfections. As in case of colour, a
diamond with lower clarity can
appear to be flawless to a naked eye.
Tip: The topmost scale for clarity of
a diamond is FL (flawless). Then
comes IF (internally flawless), then
VVS1 and VVS2 (very very slightly
included). Depending on the budget, buyers can opt for the latter or
even a grade lower. If a person is opting for a higher colour scale, opting
for a lower clarity grade would still
make the diamond look beautiful.
Carat: This measures the mass of a
diamond. The value increases exponentially in relation to carat weight,
since larger diamonds are both rarer and more desirable.
Tip: Calvin John, vice-president
(offline marketing) at CaratLane,
says most of the diamonds sold are
En route, it had an accident at

Ambamana in Udaipur district on
October 5, 2000. A police complaint
was lodged and the insurance company intimated.
The repair charges were ~1.75
lakh. Porwal claimed this amount
from the insurance company. A surveyor was appointed but the claim
was not settled. Alleging this to be a
deficiency in service, Porwal filed a
complaint before the District Forum,
seeking reimbursement of the repair
charges along with interest.
The company contested the
case, contending the claim was not
payable as Surinder Singh did not
hold a valid driving licence. The
company stated the licence
showed it had purportedly been
originally issued at Guwahati in
Assam but that RTO had denied
having issued any such licence. It
had subsequently been renewed
by the Ajmer Transport Authority,
FAINT
VERY LIGHT
around one carat. If a person opts

for a slightly lower carat, say 0.97
rather than 1, he or she can save up
to 35 per cent. At the same time,
visually, there will be no difference
between the two, he says. This can
also be applied to other popular
carat weights such as 0.5 and 0.75.
Cut: This is all about the craftsmanship, as diamonds dont show their
beauty as rough stones. Instead,
they must be cut and polished to
exhibit the fire, scintillation and
brightness. A well-cut diamond can
easily make up for the lower scales in
clarity and colour. The cut of a diamond determines its ability to
reflect and refract light. A number of
factors, including proportion, symmetry, and the angles of various
facets, are determined by the quality of the cut.
Tip: Jewellers tend to use these terms
loosely. Stick to the scaling of independent third-party certifications.
Opt for a cut that is excellent or good.
Investing
Many companies are also promoting diamonds for investments. For
Ajmer. The insurance company

claimed that since the original
licence was fake, its subsequent
renewal would not make it genuine. So, Singh was not entitled to
drive the truck. Hence the claim
had been correctly rejected.
The District Forum allowed the
complaint and directed the insurance company to pay ~1.75 lakh with
nine per cent interest and ~10,000
towards costs. The insurance company challenged this order, but its
appeal was dismissed by the Delhi
State Commission.
The insurance company, then,
filed a petition before the National
Commission, contending the
renewal of a fake driving licence
would not make it genuine and the
claim was rightly rejected.
The Commission observed the
issue to be decided was whether
renewal of fake driving licence
would make it a genuine one. Also,
Readers
Corner
Realty check
LIGHT
Source:Gia
instance, to boost buyer confidence,

companies such as Divine Solitaires
have started their own price index. It
publishes revised rates of diamonds
every month. If the buyer wants to
resell, the company claims the jeweller must give at least 90 per cent of
the diamond value shown in the
index. If the jeweller will not, the
buyer can approach the company
directly. But, experts suggest, retail
investors should not look at diamonds as an investment instrument. Thats because determining
the quality of a diamond is difficult,
unlike that of precious metals such
as gold and silver. There arent any
formal markets either that one can
look at to exit their investment.
After a person purchases a diamond, ensure the serial number in
the certificate is also inscribed on
the diamond. Experts say the buyer
should not compromise on the certification and go for the one that
charges a lower fee. There are local
certifying labs but they can succumb
to the jewellers pressure and give a
slightly higher rating than what the
diamond deserves, says John.
If a person opts for a diamond

with slightly lower carat, he can
save a lot. One can look at carat
weights such as 0.97 or 1.45
rather than one carat or 1.5 carat.
There are at least 10
different popular cuts today,
which include round, princess,
heart, and emerald. It makes
more sense to go for a round
brilliant cut, especially if
someone is buying for
investment. These have better
resale value. Also, investors
should go for diamonds with
higher carat weight. Investors
should buy a diamond of one
carat rather than four small
ones of 0.25 carat. Small ones great for jewellery - dont have
a resale value. To find the
worth of diamonds in your
kitty, refer to the Rapaport
Diamond Report, the jewellery
industry standard for pricing of
diamonds. Its published
weekly.If you are planning to
buy stones for jewellery, always
buy diamonds and
gold/platinum separately.
GIA and IGI are the most
popular certifications in the
market. The corresponding serial
number of the certificate is
laser-inscribed on the diamond.
Using it, the person gets
diamond details even on
internet. Dont ever go for
certification that jewellers issue.
Diamonds dont fade but
they might start losing lustre or
seem yellow. This is because of
dirt. The owner should take it to
a reputed jeweller who can
treat the diamonds with an
ultrasonic cleaner.
Avg price (~/sq ft)
4,161
3,396
3,034
3,943
3,772
1,530
1,894
1,857
2,040
1,845
3,618
3,627
4,034
4,676
4,500
2,175
1,753
1,687
1,624
1,742
4,088
6,408
3,941
3,800
1,620
1,325
1,397
1,847
3,161
3,500
4,000
3,700
2,123
2,192
1,360
1,625
COIMBATORE
Saravanampatty
Vadvalli
Trichy Road
Ramanathapuram
PN Pudur
NAGPUR
Wathoda
Sneh Nagar
Somalwada
Kamptee Road
VISAKHAPATNAM
Madhurawada
Yendada
Murali Nagar
Gajuwaka
Notes:
Ticket price range considered for the above data points is between ~50 lakh and ~1 crore
All the data points discussed in the above table refer to the primary market only
Above residential data set comprises residential apartments only
Above residential data is representative of organised real estate developers only
The top performing micromarkets based on sales during last year (Aug-2014 to Jul-2015)
is represented on the above table
Data points are updated till July 2015
Source: PropEquity
due consideration would have to be

given to whether there was any wilful breach of the policy conditions
by the owner. While deciding these,
the Commission considered the
judgment of the Supreme Court in
United India Insurance Company
v/s Davinder Singh, where it had
been observed that third-party
insurance is mandatory as a social
obligation under the Motor Vehicles
Act, while insurance for own damage is optional. So, a distinction
would have to be drawn between
third-party claims and own damage claims.
In respect of third-party claims,
the Commission held that in case of
a fake licence, the insurance company has to prove the insured was
guilty of negligence and failed to
exercise reasonable care in the matter of fulfilling the policy conditions
regarding the use of vehicle by a
duly licensed driver. This would not
be applicable to own damage claims.

The Commission also considered
the observations of the Supreme
Court in New India Assurance
Company Ltd v/s Kamla Devi that a
fake licence cannot get its forgery
stripped off merely because some
officer renews it without knowing
that it is a forged one. No licensing
authority has the power to renew a
fake licence. So, a renewal cannot
transform a fake licence into genuine one.
Accordingly, by an order of
October 20, 2015, the National
Commissions Bench of V B Gupta
and Prem Narain allowed the insurance companys petition and set
aside the orders of the District
Forum and State Commission, saying the insurance company was justified in repudiating the claim as the
licence was a forged one.
The author is a consumer activist
MUTUAL FUND
Nimesh Shah, Managing Director & Chief Executive Officer, ICICI Prudential Asset Management
Company, answers your questions

localities that offer property in a price range of
~50 lakh-1 crore. Ifyou are looking atbuying real
estate and your budgetfalls within this range, an
idea aboutprevailing rates would come handy
AHMEDABAD
RATING
~16.20 lakh
7/10
Manish works as a software engineer with an information

technology company. His wife, Vrinda, works in the accounts
department of a non-banking finance company. They have
been diligent and handled their finances well. They want to
plan for their childrens education, followed by marriage,
and their own retirement.
BUDGET: ~50 lakh to ~1 crore
Prahlad Nagar
Jagatpur
Gota
Science City Road
Sola Village
NET ANNUAL INCOME
Pune
>STATUS & GOALS
Genuine renewal of fake licence doesnt make it valid
CONSUMER IS KING
RESIDE IN
can we get it back?
NIMESH SHAH
If I switch from my existing equity
mutual fund (MF) scheme, which I
have held for three years and move
to another scheme in the same
fund, will I have to pay tax?
Equity investing offers the benefit of

tax-free returns if the holding period
is greater than a year. Since you have
held your investment in an equity
MF for more than a year, you will
enjoy tax-free returns. Having mentioned that, staying invested for the
long term helps create better wealth.
After my father passed away, we
found he had invested some
money in a fund house that no
longer exists, as it was merged
with another. We dont know what
has happened to that money. How
When a scheme gets merged into

another, the first scheme ceases to
exist. The board of directors of the
asset management company and
trustee company take adequate steps
to ensure investors interests are protected. Also, MFs provide intimation
well in advance of the merger date.
Units from the surviving scheme
would have been allotted to the
investor equivalent to the investment
value. You need to contact the fund
house with which the first scheme
has merged to seek details of your
investment and its value.
As a co-operative housing society,
all our investments are currently
in co-operative bank deposits. Can
we invest in debt MFs?
Yes, a co-operative housing society

can invest in MFs, depending on the
investment objective. For example, if
the purpose is a short-term one, such
as taking care of society maintenance
and repairs, it makes sense to invest in
a debt fund with high liquidity and
low risk, such as liquid funds. For a
longer investment horizon, one can
look at income or duration funds. You
can simply invest through any financial intermediary or any branch of the
MF company or investor centres.
What is the difference between

equity funds and equity income
funds?
Equity funds purely invest in equity

and equity-related instruments.
Equity income funds invest 20-40 per
cent (net exposure level) in equity and
equity-related instruments to grow
the portfolio and derivatives to take
advantage of arbitrage opportunities;
the remaining is invested in debt to
generate regular income. Both categories ensure tax efficiency when held
for more than a year, as equity and
equity-related instruments constitute
65 per cent of the portfolio. It is important for an investor to understand the
investment risk profile, based on
which one could decide the asset allocation (how much of ones wealth
should be invested in which asset
class). For conservative investors,
equity income funds are a suitable
investment solution that aims to provide a long-term wealth creation solution with equity and relative stability
with debt, along with tax efficiency.
However, investors with a good
appetite for risk could make a larger
allocation towards equity funds.
The views expressed are experts
own. Send your queries to
[email protected]
Basic expenses (~)

Household
Home loan
Childrens education
Insurance premium
Total
Per month (~)

29,000
44,068
7,000
8,417
88,485
Annual (~)
3,48,000
5,28,814
84,000
1,01,000
10,61,814
>GOALS
MANASIS COLLEGE &
POST-GRADUATION
MANAVS COLLEGE &

POST-GRADUATION
(2027-2031) (Inflation 9%)
(2030-2034) (Inflation 9%)
Present cost:
Future value:
Present cost:
~17.50 lakh
~70 lakh
Future value:
MANASIS & MANAVS MARRIAGE

(2034 & 2037) (Inflation 9%)
Present cost:
Future value:
~10 lakh each
~51 lakh and 67 lakh, respectively
RETIREMENT PLANNING
Present expenses:
~3. 59 lakh
Future annual
expenses:
Corpus
required:
~14.86 lakh
~3.19 crore
Assets
Savings account
Fixed deposits
EPF
PPF
Equity mutual funds
Self-occupied
property
Net worth
3,16,000
4,75,000
6,34,000
2,46,000
3,87,000
1,20,00,000
1,40,58,000
1,09,58,000
Liabilities
Home loan
31,00,000
31,00,000
>FINDINGS
EMERGENCY FUND: Adequate funds maintained in savings
account and fixed deposit for any emergency.
LIFE INSURANCE: Manish is covered for ~85 lakh through
term and traditional insurance, while Vrinda is covered for
~25 lakh through term and Ulip (unit-linked insurance plan)
policies. Manish is underinsured.
HEALTH INSURANCE: The family is covered by the couples
employee health insurance for ~3 lakh each. They also have
a separate health insurance floater cover of ~5 lakh.
INVESTMENTS: Very well-diversified portfolio, with a small
equity allocation.
LIABILITIES: Servicing a home loan, with a balance due of
~28 lakh.
>RECOMMENDATIONS
EMERGENCY FUND: They need to maintain ~1.5 lakh in a flexi
fixed deposit account. The rest of the savings account

balance can be maintained in liquid funds.
LIFE INSURANCE: Manish needs to take an additional cover
of ~1.2 crore for a term of 20 years. The premium will be
approximately ~20,000.
HEALTH INSURANCE: Present health cover is adequate.
>PLANNING FOR GOALS

MANASIS & MANAVS COLLEGE & POST-GRADUATION
(2027 2034) : Systematic investment plans (SIPs) of ~15,000
and ~13,000, respectively, need to be invested in large-cap
and multi-cap funds for 16 and 19 years, respectively.
Annual rate of return assumed: 12% post tax in above
MANASIS & MANAVS MARRIAGE (2034 & 2037): SIPs of
~6,000 and 5,000, respectively, need to be invested in
multi-cap and mid-cap funds for 19 and 22 years,
respectively.
Annual rate of return assumed: 12% on this mutual funds
portfolio.
RETIREMENT PLANNING (2035) : The couples Employees'
Provident Fund (EPF) and Public Provident Fund (PPF) will be
worth ~1.43 crore and ~63 lakh, respectively, at retirement,
assuming investment of ~1 lakh in PPF every year. The
present equity funds will be worth ~42 lakh. For the
shortfall, SIPs of ~7,000 need to be invested in a ratio of
70 per cent and 30 per cent in equity and debt mutual funds
portfolio, respectively.
Annual rate of return assumed: 8% in EPF and PPF, 11% on
the mutual funds portfolio.
TIPPING POINT
How to load cash in
a mobile wallet or
recharge it?
After creating a mobile
wallet, you can load cash
by net banking, for which
you have to fill a form
and give it to your bank.
You can also load the
wallet by using a debit
or credit card, using the
payments options in your
mobile wallet. It can
be re-charged the
same way.
Can it be done at a store?

Yes, if your mobile wallet provider has physical outlets.
Then, you can pay cash at the outlet and it will be loaded
into the wallet.
CASE STUDY
SARANs
Dheeraj (44), Father (72), Mother (70)
RESIDE IN
NET ANNUAL INCOME
RATING
Pune
~9 lakh
7/10
>STATUS & GOALS

Dheeraj is a professor with a reputed college in Pune. He is
single and lives with his parents in their self-owned house
in the city. He doesnt intend to get married and his focus is
to create an adequate fund for his parents medical needs.
He also wants to take his parents shortly for a tour to Europe.
Basic expenses (~)
Per month (~)
26,000
Home loan EMI
10,746
Insurance premium
7,083
Parents medical expenses
4,000
Annual vacation
4,167
Total
51,996
Annual (~)
3,12,000
1,28,952
85,000
48,000
50,000
6,23,952
>GOALS
CREATING PARENTS
MEDICAL FUND
EUROPE TOUR WITH

PARENTS
(2015)
(2016) (inflation 10 per cent)
Amount considered:
Current value:
Future value:
~ 10 lakh
~4 lakh
~4.40 lakh
RETIREMENT PLANNING
(2036) (inflation 7 per cent, Rate of return on corpus 9 per cent)
household expenses,
premiums):
Future annual
expenses:
Corpus
required:
~15 lakh
~2.52 crore
~3.62 lakh
Assets
Savings account
1,38,000
Fixed deposits
6,45,000
EPF
7,13,000
PPF
4,37,000
Equity mutual funds
3,25,000
3,78,000
89,36,000
Net worth
86,21,000
Liabilities
Home loan
3,15,000
3,15,000
>FINDINGS
savings account and fixed deposits for contingency
LIFE INSURANCE: Dheeraj is covered for ~13 lakh through
traditional insurance plans
HEALTH INSURANCE: Parents are covered for ~2 lakh each,
while Dheeraj is covered for ~5 lakh worth of health
insurance. Parents cover is inadequate
INVESTMENTS: Major investments are in property and debt,
with a small allocation to equity
LIABILITIES: Currently servicing a home loan taken in 2008
with a balance dues of ~3.15 lakh
>RECOMMENDATIONS
EMERGENCY FUND: Savings account balance can be
maintained, while ~2 lakh from FDs can be converted to a

flexi FD for contingency requirements
LIFE INSURANCE: Since Dheerajs parents are the only
dependents and considering the existing investment corpus
back-up, the existing cover is adequate
HEALTH INSURANCE: Parents cover need to be enhanced to
~5 lakh each. Dheeraj needs to take a super-top cover of ~10
lakh for himself. The additional annual premium towards
both these policies will be approximately ~25,000
recommended for Dheeraj. The annual premium will be
>PLANNING FOR GOALS

CREATING PARENTS MEDICAL FUND (2015) : From existing FDs
~4.5 lakh can be earmarked for this goal. Additionally,
~21,500 need to be invested every month in liquid funds for
24 months to create the balance corpus.
Annual rate of return assumed: 6.5 per cent post tax in
liquid fund as per Dheerajs tax slab.
EUROPE TOUR WITH PARENTS (2017) : This goal can be
achieved once the goal of creating a medical fund is
achieved in 2017. ~2 lakh from existing equity funds can be
earmarked for part funding by moving that amount into
short term debt fund. For the shortfall, ~20,000 needs to be
invested every month in ultra-short term debt funds for 12
months from 2017 and goal can be achieved in 2018.
Rate of return assumed: 7 per cent post tax in ultra-short
term debt funds as per Dheerajs tax slab.
RETIREMENT PLANNING (2036) : Dheerajs Employees'
Provident Fund (EPF) and Public Provident Fund (PPF) will be
worth ~1.03 crore and ~55 lakh, respectively, at retirement
considering he invests ~1 lakh each year in PPF from 2018
onwards. His invested property will be worth ~3.84 crore. He
will comfortably achieve his retirement goal.
Annual rate of return assumed: 8 per cent in EPF & PPF,
9 per cent on property
CASE STUDY
SHETTYs
Shefally (39), Jagdish (43), Priya (10)
RESIDES IN
NET ANNUAL INCOME
RATING
Bengaluru
~6.48 lakh
6/10
>STATUS & GOALS

Shefally works as secretary to the MD of a mid-sized
engineering firm in Bengaluru. Her husband has been
bedridden for two years, after an accident. She wants to
plan for her only daughters educational and marriage
expenses, followed by retirement.
Basic expenses (~)
Per month (~)
22,000
Daughters education
6,000
Insurance premium
2,083
Spouses medical expenses
2,500
Total
32,583
Annual (~)
2,64,000
72,000
25,000
30,000
3,91,000
>GOALS
PRIYA COLLEGE & POSTGRADUATION FUNDING
PRIYAS MARRIAGE
FUNDING
(2023-2027) (Inflation 9%)
Current value:
Future value:
Current value:
Future value:
~16 lakh
~40 lakh
~5 lakh
~18.21 lakh
RETIREMENT PLANNING
(2034) (Annual inflation 7 per cent, Rate of return on corpus 9
per cent) (Life expectancy 85 years)
mediclaim premia):
Future annual
expenses:
Corpus
required:
~10.63 lakh
~2.28 crore
~2.94 lakh
Assets
Savings account
Fixed deposits
EPF
Equity mutual funds
Self-occupied
property
Net worth
Liabilities
32,000
8,45,000
3,87,000
65,000
1,15,000
54,00,000
68,44,000
68,44,000
>FINDINGS
EMERGENCY FUND: One month of expenses maintained in
savings account. Good back-up through fixed deposits
LIFE INSURANCE: Shefally is covered for only ~3 lakh. She is
highly underinsured. Jagdish has a small cover, of ~5 lakh
HEALTH INSURANCE: Family is covered for ~5 lakh through
a family-floater policy. Employer does not provide any
health cover
INVESTMENTS: 90 per cent of the investments are in safe and
fixed return assets, considering the single-income situation
in the family
>RECOMMENDATIONS
EMERGENCY FUND: Savings account balance needs to be
enhanced to ~50,000. Additionally, maintain ~1,50,000 in a

flexi FD
LIFE INSURANCE: Shefally needs to take an insurance cover of
~1 crore. The premium for a 20-year online term insurance
will be approximately ~18,000 p.a.
HEALTH INSURANCE: Shefally should take a super top-up
plan of ~10 lakh, with a deductible of ~5 lakh. The premium
will be around ~9,000. Additionally, she should maintain ~5
lakh separately for Jagdishs medical treatment
HEALTH INSURANCE: A personal accident policy of ~25 lakh,
recommended for Shefally. The premium for this should be
approximately ~4,000 per annum.
>PLANNING FOR GOALS

PRIYA COLLEGE & POST-GRADUATION FUNDING (2023-2027):
For this goal, an amount of ~17,000 needs to be invested in
balanced mutual funds for 12 years
Annual rate of return assumed: 11 per cent in balanced
mutual funds
PRIYAS MARRIAGE FUNDING (2030) : For this goal, ~4,000 per
month needs to be invested in multicap mutual funds for a
period of 15 years
Annual rate of return assumed: 12 per cent on this portfolio
for this duration
RETIREMENT PLANNING (2034) : Shefallys EPF will be worth
~54 lakh at retirement. She needs to invest ~24,000 per
month in a mutual funds portfolio in 50 per cent equity
and 50 per cent debt funds, not possible at the moment.
A part of every incremental salary should be invested for
this goal
Annual rate of return assumed: 8 per cent in EPF, 10.5 per
cent on the mutual funds portfolio
CASE STUDY
PANDEYs
Manohar (35), Priti (34), Prateek (1)
RESIDE IN
NET ANNUAL INCOME
RATING
Mumbai
~22.92 lakh
7/10
>STATUS & GOALS

Manohar is a chartered accountant and works as AVP
Accounts with an audit & tax consulting firm, while his wife is
a software engineer. Their primary goals are their only sons
educational funding and they also want to buy one more
property, to create an additional source of income at
retirement.
Monthly Income: ~1,91,000
Basic expenses (~)

Home loan EMI
Insurance premium
Annual vacation
Total
Per month (~)

31,000
79,521
8,583
10,000
1,29,104
Annual (~)
3,72,000
9,54,249
1,03,000
1,20,000
15,49,249
>GOALS
BUYING 2ND PROPERTY

(2032- 2036) (inflation 9%)

Current value:
Future value:
Current value:
Future value:
~50 lakh
~2.81 lakh
~65 lakh
~77 lakh
RETIREMENT PLANNING
(2035) (Inflation 7%, Rate of return on corpus 9%) (Life
expectancy 85 years)
Future annual
expenses:
Corpus
required:
~19 lakh
~4.42 crore
~4.92 lakh
Assets
Savings account
2,85,000
Fixed deposits
4,38,000
EPF
6,34,000
Equity mutual funds
7,25,000
3,24,000
Shares
3,15,000
1,59,21,000
Net worth
91,21,000
Liabilities
Home loan 68,00,000
68,00,000
>FINDINGS
EMERGENCY FUND: Funds maintained in savings account
and fixed deposits are enough to take care of six months of
expenses
LIFE INSURANCE: Manohar is covered for ~1.24 crore, while
Priti is covered for ~27 lakh through a combination of
traditional and term plans
HEALTH INSURANCE: Family is covered through employerprovided floater health cover of ~5 lakh. They dont have
any separate additional cover
INVESTMENTS: Very well diversified in debt and equity
LIABILITIES: Currently servicing a loan of ~68 lakh on the
self-occupied property
>RECOMMENDATIONS
EMERGENCY FUND: ~2 lakh can be maintained in joint bank
account and additionally ~2 lakh can be maintained in

liquid funds for contingency
LIFE INSURANCE: Manohar needs an additional cover of
~1.2 crore, while his wife needs a cover of ~25 lakh. The
premium for a 20-year online term insurance for both will be
HEALTH INSURANCE: Manohar should take a family floater
cover of ~5 lakh along with a super top-up policy of ~10 lakh.
Premium for this should be ~18,000
ACCIDENT INSURANCE: A personal accident policy of ~1 crore
with ~15 lakh as TTD benefit is recommended for Manohar.
His wife should take PA cover of ~25 lakh, along with a TTD
cover of ~5 lakh. The premium for this should be
>PLANNING FOR GOALS

SONS COLLEGE & POSTGRADUATION FUNDING (2032- 2036):
For this goal, an amount of ~32,000 needs to be invested in
mutual funds in a 70% equity and 30% debt ratio for
19 years
Annual rate of return assumed: 12% on this portfolio for this tenure
BUYING 2ND PROPERTY (2017) : The couple needs to have a
down payment of at least ~40 lakh, so that the loan can be
taken on the balance amount and the resulting EMI does not
add stress on cashflows. Currently, this is not possible and a
goal needs to be postponed by four years
Annual rate of return assumed: 10% for home loan
RETIREMENT PLANNING (2035) : Manohars EPF will be worth
~73.65 lakh at retirement and his shares will be worth
~30.38 lakh. Since existing MF and FDs will be used for the 2nd
property, ~39,000 needs to be invested per month for 20 years
in ratio of 70% equity ad 30% debt in mutual funds for this
goal.
Annual rate of return assumed: 8% in EPF, 12% on the mutual
funds portfolio
CASE STUDY
SARAFs
Punit (29), Father (57), Mother (52)
RESIDES IN
NET ANNUAL INCOME
RATING
Ahmedabad
~8.16 lakh
5/10
>STATUS & GOALS

Punit is an advocate and works for a legal consulting
firm in Ahmedabad. His father works for the postal
department in Vadodara city and mother is a
housewife. Punit wants to get married next year and
buy a house in Ahmedabad.
Basic expenses
House rent
Insurance premium
Total
Per month (~)

14,000
21,500
4,250
39,750
Annual (~)
1,68,000
2,58,000
51,000
4,77,000
>GOALS
MARRIAGE
BUYING A FLAT
Current value:
Future value:
Current value:
~5 lakh
~5.50 lakh ~45 lakh
Future value:
~53.50 lakh
RETIREMENT PLANNING
(2046) (Inflation 7%, annual rate of return on corpus 9%)
Future annual
expenses:
Corpus
required:
~21 lakh
~4.24 crore
~2.58 lakh
Assets
Savings account
Fixed deposits
PPF
Equity mutual funds
Net worth
89,000
3,50,000
50,000
2,43,000
45000
7,77,000
>FINDINGS
EMERGENCY FUND: Around two months of expenses
maintained in savings account. Additional back-up in the
form of fixed deposits
LIFE INSURANCE: Punit has a total cover of ~52 lakh through
term insurance and an endowment policy
HEALTH INSURANCE: Punits firm covers him for ~2 lakh. He
doesnt have any additional cover. His parents are insured
under the government medical scheme
INVESTMENTS: Balanced portfolio, comprising debt and
equity
>RECOMMENDATIONS
EMERGENCY FUND: Savings account balance can be maintained
at the current level. Additionally ~50,000 from fixed deposits

can be maintained in an ultra-short bond fund
LIFE INSURANCE: Considering the present situation of no
liabilities and independent parents, the existing insurance
cover is adequate
HEALTH INSURANCE: Punit needs to take a separate health
cover of ~3 lakh, which will cost him ~7,000 a year
recommended. The premium for this should be
approximately ~4,000 a year
>PLANNING FOR GOALS

MARRIAGE (2016): Fixed deposits of ~3 lakh will be worth
~3.21 lakh in one year. Additionally, he needs to invest
~18,500 in liquid funds for 12 months, to enable creation of
required corpus for marriage
Annual rate of return assumed: 7% post tax in liquid funds, FD
BUYING A FLAT (2017) : He needs to move his equity funds
to short-term debt funds. Currently, he can only allocate
~10,000 per month for one year and from the next year,
~28,000 per month for another one year in ultra-short debt
funds. The total corpus from these three investments will be
worth ~8.86 lakh, falling short by a huge ~44.60 lakh. Punit
will have to extend his goal by another one to two years and
use all his salary increments to invest for this
Annual rate of return assumed: 7.5% after tax in ultra-short
term debt funds
RETIREMENT PLANNING (2046) : At this moment, he needs to
allocate ~11,000 per month for 31 years in a 70 per cent equity
and 30 per cent debt mutual funds portfolio to meet his
retirement corpus. If delayed by five years, he needs to
allocate ~20,000 per month
Annual rate of return assumed: 12% in mutual funds
portfolio for that duration
CASE STUDY
THE HEGDEs
Prashant (39), Aishwarya (37), Aryan (7)
RESIDE IN
NET ANNUAL INCOME
RATING
Mumbai
~14.64 lakh
3/10
>STATUS & GOALS

Prashant works as manager in a business process outsourcing
and his wife, Aishwarya, works in the logistics department of
an online retail firm. Their lavish lifestyle and penchant for
foreign vacations have left them poorer and in debt. Their
priority is to fund their sons educational goal and retirement.
Basic expenses (~)
Home loan EMI
Personal loan
Sons education
Insurance premium
Annual vacation
Total
Per month (~)

49,000
25,790
11,377
4,000
8,958
10,000
1,09,125
Annual (~)
5,88,000
3,09,480
1,36,524
48,000
1,07,500
1,20,000
13,09,504
>GOALS
SONS EDUCATIONAL
FUNDING
FOREIGN TRIP EVERY

TWO YEARS
(2026-2030) (inflation 9%)
(2017 onwards) (inflation 10%)
Current value:
Future value:
Current value:
~18 lakh
~57 lakh
~2.50 lakh ~3 lakh
Future value:
RETIREMENT PLANNING
(2026) (Annual inflation 7%, annual rate of return on corpus 9%)
Future annual
expenses:
Corpus
required:
~12.37 lakh
~3.21 crore
~5.88 lakh
Assets
Savings account
63,000
Fixed deposits
55,000
EPF
2,89,000
Equity mutual funds
3,16,000
4,15,000
1,06,38,000
Net worth
96,58,000
Liabilities
Home loan
9,80,000
9,80,000
>FINDINGS
EMERGENCY FUND: Emergency funds not maintained.
Savings account does not even contain one month
of expenses
LIFE INSURANCE: Prashant is covered for ~27 lakh, while
Aishwarya has a life cover of ~9 lakh. Both are underinsured
HEALTH INSURANCE: Family is covered through Prashant
and his wifes employer-provided group health insurance
scheme, for a sum assured of ~3 lakh
INVESTMENTS: Investment size is very small and that too in
tax-saving schemes such as EPF and ELSS
LIABILITIES: Currently servicing a home loan taken in 2009
with an balance of ~9.80 lakh due as well as a personal
loan of ~5 lakh taken recently for home improvement
and a foreign trip
>RECOMMENDATIONS
EMERGENCY FUND: Need to move ~2 lakh from equity funds to
ultra-short debt funds for creating a three-month contingency fund along with the existing savings account and fixed
deposit
LIFE INSURANCE: Prashant needs a life cover of ~1.75 crore,
while his wife should take a cover of ~50 lakh. The total
premium for online term plans for a 20-year tenure will be
HEALTH INSURANCE: They should take a family floater policy
of ~5 lakh sum assured. The premium for this will be ~12,000
with ~10 lakh as TTD benefit, is recommended for Prashant.
Aishwarya should take a cover of ~25 lakh, with ~5 lakh TTD.
The annual premium will be approximately ~10,000
>PLANNING FOR GOALS

SONS EDUCATIONAL FUNDING (2026-2030) : An amount of
~16,000 needs to be invested every month for 15 years in
balanced mutual funds for this goal. Expenses need to be
reduced to enable this
Annual rate of return assumed: 11% on this portfolio for this duration
FOREIGN TRIP EVERY TWO YEARS (2017 ONWARDS) : The family
is advised to focus on clearing their existing liabilities and
reduce their expenses and postpone any foreign trip to 2020
RETIREMENT PLANNING (2026) : The couples EPF will be worth
~25 lakh in the year of retirement and to make up the shortfall,
they need to invest ~1.16 lakh per month for 11 years in a 60 per
cent equity and 40 per cent debt mutual funds portfolio, not
possible at present. The couple has to seriously plan on
reducing their expenses and focus on savings and
investments. They might have to postpone their retirement
Annual rate of return assumed: 8% in EPF, 11% on the suggested
CASE STUDY
THE KAMATs
Shalini (39), Pragati (10), Harsh (7)
RESIDES IN
RATING
NET ANNUAL INCOME
Bengaluru Nil (Shalini lost her husband
4/10
recently and has no income. But,

has received claim and employers
final settlement, including EPF)
>STATUS & GOALS

Shalini is a homemaker and her husband died of cardiac
arrest. She has two schoolgoing kids and has received a
large amount towards her husbands insurance claim and
employer benefits.
Basic expenses (~)
Childrens education
Insurance premium
Total
Per month (~)

23,000
6,000
1,500
30,500
Annual (~)
2,76,000
72,000
18,000
3,66,000
Monthly income: ~0
>GOALS
DAUGHTERS COLLEGE &
POSTGRADUATION
FUNDING
(2023 - 2027)
(Annual inflation considered 9%)
SONS COLLEGE &

(2026 - 2030)
(Annual inflation considered 9%)
Current value:
Future value:
~12 lakh
Current value:
Future value:
~38 lakh
CORPUS FUND FOR TAKING CARE OF EXPENSES

TILL 85 YEARS
(Annual return expected 9%, annual inflation 7%)
Current annual expenses:
Corpus required:
~1.14 crore
~3.66 lakh
Assets
~ Liabilities
Savings account
27,00,000
Fixed deposits
54,00,000
Equity mutual funds
2,76,000
1,65,000
Self-occupied Property 62,00,000
1,47,41,000
Net worth
1,47,41,000
>FINDINGS
EMERGENCY FUND: Claim money and employee benefits
have been maintained in savings account and
fixed deposits (FDs). Need to segregate these
for various goals
LIFE INSURANCE: Shalini has a life cover of ~3 lakh through a
traditional insurance policy. She is underinsured
HEALTH INSURANCE: The family relied on employer-provided
health insurance benefits, not available now. They dont
have any health cover
INVESTMENTS:Due to lack of knowledge on investments, the
entire proceeds received on spouses death has been deployed
in savings account and FDs. Very small equity allocation
>RECOMMENDATIONS
EMERGENCY FUND: Around ~2 lakh can be maintained in a flexi
FD savings account for emergency requirements

LIFE INSURANCE: Shalini cannot go for term insurance cover
since she doesnt have any income. Can evaluate cover once
she starts working and filing her returns
HEALTH INSURANCE: She should take a ~5-lakh family floater
health insurance, along with a super top-up cover of ~10 lakh.
The total premium for this will be approximately ~16,000
>PLANNING FOR GOALS

DAUGHTERS COLLEGE & POSTGRADUATION FUNDING
(2023-2027): From the savings account balance, an amount of
~10 lakh needs to be invested in balanced mutual funds (MFs)
Annual rate of return assumed: 11 per cent in balance MFs
SONS COLLEGE & POSTGRADUATION FUNDING (2026 - 2030) :
An amount of ~9.5 lakh from the savings account needs to
be invested in balanced MFs
Annual rate of return assumed: 11% in balance MFs
CORPUS FUND FOR TAKING CARE OF EXPENSES TILL 85 YEARS :
After allocating funds for childrens goal, the amount
remaining to be invested is around ~60 lakh. From which,
~25 lakh can be invested in FDs, with monthly income
payout option, ~4.5 lakh in Post office monthly income
scheme (MIS) and~20 lakh in MF monthly income plans
(MIPs) with monthly income payout option. The remaining
~10 lakh can be invested in balanced mutual funds in
growth option. Shalini will have to start working to build up
the shortfall in the corpus, as with inflation, the existing
investments might not be able to provide enough income to
cover her expenses after a few years
Annual rate of return assumed: 8 per cent post-tax on FDs, 7.5
per cent post-tax on Postal MIS, 7 per cent post-tax on MF
MIP, and 11 per cent in balanced MFs
Plan by Steven Fernandes, certified financial planner; chief planner,
CASE STUDY
THE PANTs
Anirudhha (32), Father (61)
RESIDE IN
NET ANNUAL INCOME
RATING
Mumbai
~6.48 lakh
3/10
>STATUS & GOALS

Anirudhha is single and works as an assistant manager in a
business process outsourcing firm in Mumbai. His father is retired
and independent, while his mother expired last year. Being the
only son, he stays in his father's flat in Mira Road, Mumbai.
Aniruddha wants to plan for his marriage and retirement.
Basic expenses (~)
Car loan
Insurance premium
Total
Per month (~)

21,000
11,122
4,792
36,914
Annual (~)
2,52,000
1,33,464
57,500
4,42,964
>GOALS
ANIRUDHHAS MARRIAGE
(2016 ) (annual inflation 9%)
~3 lakh
~3.27 lakh
RETIREMENT PLANNING
(2033 onwards) (annual inflation 7 per cent, annual rate of
return on corpus 9 per cent) (Life expectancy - 85 years)
Future annual
expenses:
Corpus
required:
~8.51 lakh
~2.21 crore
~2.52 lakh
Assets
Savings Account
EPF
Equity mutual funds
Net worth
Liabilities
23,000
1,39,000
5,25,000
1,26,000
8,13,000
5,48,000
Car loan
2,65,000
2,65,000
>FINDINGS
EMERGENCY FUND: No arrangements made to tackle
contingency situations
LIFE INSURANCE: Anirudhha is covered for ~8 lakh through
traditional and unit-linked insurance plan (Ulip)
HEALTH INSURANCE: He is covered through employer group
health insurance for ~3 lakh and his father has his own
separate cover of ~2 lakh
INVESTMENTS: Considering the number of years in
employment, the investment assets are less. Major
allocation is in equity, through equity-linked savings
scheme funds
LIABILITIES: Servicing a car loan, with balance dues of
~2.65 lakh
>RECOMMENDATIONS
EMERGENCY FUND: Aniruddha should move ~1 lakh from equity
funds to liquid funds, with ATM card facility, for contingency

requirements
LIFE INSURANCE: Since his father is completely independent
and enjoys a good amount of pension income, Anirudhha
doesn't need any additional insurance at this stage. After
marriage, he needs to review his life cover requirement
HEALTH INSURANCE: He should take a ~3-lakh cover
for himself and enhance his fathers health cover to
~5 lakh. The total premium for this will be approximately
~25,000
ACCIDENT INSURANCE: A personal accident policy of
~25 lakh, with ~5 lakh as temporary total disability
benefit, is recommended for him. The premium for this
should be approximately ~4,000 per annum
>PLANNING FOR GOALS

ANIRUDHHAS MARRIAGE (2016) : Aniruddha needs to move
~1.27 lakh from equity funds to ultra-short bond funds for
marriage expenses. Additionally, he needs to invest
~16,000 per month for 12 months into recurring deposits
(RDs) to meet this goal
Annual rate of return assumed: 6.5 per cent post tax in
ultra-short bond and RDs
RETIREMENT PLANNING (2026) : At retirement, his
Employees' Provident Fund (EPF) will fetch ~50 lakh at
retirement, provided he doesnt withdraw his EPF even with
any change of employment. To achieve the balance
retirement corpus, he needs to invest ~25,500 per month for
18 years in a 60 per cent equity and 40 per cent debt mutual
funds portfolio, presently not possible due to allocation of
surplus for marriage goal. If he delays the investment by two
years, he needs to invest ~33,000 per month for 16 years in
the same portfolio
Annual rate of return assumed: 8% in EPF, 11% on the
suggested mutual funds portfolio
CASE STUDY
THE SRIVASTAVs
Rajesh (43), Hemali (41), Shraddha (13), Harsh (10)
RESIDE IN
NET ANNUAL INCOME
RATING
Thane
~15.60 lakh
7/10
>STATUS & GOALS

Rajesh and wife Hemali run an interior designer
consultancy in Thane. Though they have been diligent in
saving and investing their income regularly, wrong
priorities have made them seek professional advice.
Basic expenses (~)
Per month (~)
Household and lifestyle
30,000
Home loan
26,865
Car loan
10,624
Childrens education
5,000
Insurance premium
4,250
Annual vacation
5,000
Total
81,739
Annual (~)
3,60,000
3,22,380
1,27,488
60,000
51,000
60,000
9,80,868
>GOALS
DAUGHTERS COLLEGE &
POSTGRADUATION
SONS COLLEGE &

POSTGRADUATION
(2020-2024) (Annual inflation 10%)
(2023-2027) (Annual inflation 9%)
Present cost:
Future value:
Present cost:
Future value:
~14 lakh
~27 lakh
~14 lakh
~35 lakh
BUYING A TWO-BEDROOM HALL KITCHEN FLAT

(2016) (Annual inflation 9%)
Current Value:
Future value:
~1.05 crore
~1.15 crore

(Annual return expected 9 %, inflation 7 %) (Life expectancy - 85 years)
Present expenses:
~4.20 lakh
Future annual
expenses:
Corpus
required:
~13.26 lakh
~2.68 crore
Assets
Savings account
1,12,000
Fixed deposit
1,15,000
PPF
1,65,000
Equity mutual funds
7,13,000
Shares
1,55,000
Invested property
41,00,000
1,26,60,000
Net worth
98,20,000
Liabilities
Home loan 2,35,00,00

Car loan
4,90,000
28,40,000
>FINDINGS
savings account and fixed deposits to take care of any
short-term emergency
LIFE INSURANCE: Rajesh is covered for ~1.15 crore and
Hemali for ~15 lakh. Both through term
insurance plans
HEALTH INSURANCE: Rajesh is covered for ~3 lakh separately,
while the rest of the family is covered for ~5 lakh through
family floater health policy
INVESTMENTS: Very high exposure to property and equity
assets. Debt exposure is very less, indicating aggressive
risk profile
LIABILITIES: They are presently servicing two loans, a home
loan on their invested property in Pune and a car loan
>RECOMMENDATIONS
EMERGENCY FUND: The present savings bank and fixed deposit
amounts are sufficient for short-term contingency

method, Rajesh and Hemali both need an additional cover
of ~25 lakh. The total premium for a 15-year online term
plan will be ~12,000 approximately
HEALTH INSURANCE: The family should take a super top-up
plan of ~10 lakh, with a ~3 lakh deductible. The premium for
this will be ~7,500, approximately
with ~5 lakh as temporary total disability (TTD) benefit, is
recommended for Rajesh and ~25 lakh, with ~5 lakh TTD
benefit, for Hemali. The total premium for this will be
around ~12,000 per annum
>PLANNING FOR GOALS

DAUGHTERS & SONS COLLEGE & POSTGRADUATION : An
amount of ~20,000 and ~14,000 (total ~34,000) needs to be
invested every month for nine years and 12 years,
respectively, in balanced mutual funds and large-cap funds
Annual rate of return assumed: 11 per cent post tax in
balanced mutual funds and 12 per cent on large-cap funds
BUYING A 2BHK FLAT (2016): The couple needs to sell both
their self-occupied property and invested property to buy a
2BHK. The loan component of the invested property can be
taken on the new property. No additional investments
required
RETIREMENT PLANNING (2035) : Their Public Provident Fund
(PPF), mutual funds and shares will be worth ~23 lakh,
~49 lakh and ~16.7 lakh, respectively, considering they
invest ~50,000 every year in PPF. For the shortfall, an
amount of ~30,000 needs to be invested every month for
17 years in a 70 per cent equity multi-cap funds and 30 per
cent debt funds portfolio, presently not possible. All future
incremental income to be utilised to invest for retirement
CASE STUDY
THE GEORGEs
Abraham (41), Theresa (38), Gavin (10), Princy (3)
RESIDE IN
NET ANNUAL INCOME
RATING
Mumbai
~22. 20 lakh
7/10
>STATUS & GOALS

Abraham works as VP - HR in a mid-sized pharma firm in
Mumbai, while his wife is a homemaker. Abrahams first
priority is his childrens educational funding, followed
by retirement
Basic expenses (~)
Household & Lifestyle
Home loan
Car loan
Childrens education
Insurance premium
Annual vacation
Total
Per month (~)

45,000
37,611
19,122
8,000
10,667
5,000
1,25,400
Annual (~)
5,40,000
4,51,332
2,29,464
96,000
1,28,000
2,00,000
16,44,796
>GOALS
SONS COLLEGE &
POSTGRADUATION
DAUGHTERS COLLEGE &

POSTGRADUATION
(2023 - 2027) (Inflation 10%)
(2030 - 2034) (Inflation 9%)
Present cost:
Future value:
Present cost:
~29 lakh
~73.5 lakh ~29 lakh
Future value:
~1.34 crore
BUYING A TWO-BEDROOM HALL KITCHEN FLAT

Current Value:
Future value:
~1.05 crore
~1.15 crore

(return expected 9 %, inflation 7 %) (Life expectancy - 85 years)
Present expenses:
~7.40 lakh
Future annual
expenses:
~4.43 crore
~19 lakh
Assets
Corpus
required:
Savings Account
5,23,000
Fixed Deposit
13,43,000
PPF
6,45,000
EPF
7,35,000
Equity Mutual funds
14,27,000
Shares
3,27,000
2,35,00,000
Net worth
2,05,50,000
Liabilities
Home loan
Car loan
21,00,000
8,50,000
29,50,000
>FINDINGS
EMERGENCY FUND: Large amounts of money maintained in
savings account and fixed deposits for any type of
contingency
LIFE INSURANCE: Abraham is insured for ~1.30 crore, while
Theresa has a cover of ~6 lakh. Abraham is underinsured
through a family floater policy provided by employer. They
also have a separate family floater health policy of ~10 lakh
INVESTMENTS: VVery well diversified portfolio of equity and
debt. Debt allocation is around 60 per cent
LIABILITIES: The family is servicing a home loan and car loan
with total dues of ~29.50 lakh
>RECOMMENDATIONS
EMERGENCY FUND: An amount of ~4 lakh can be maintained
in Flexi Fixed Deposit and rest of the savings bank balance
can be moved to a short-term debt fund
LIFE INSURANCE: Abraham needs to take an additional term
insurance policy of ~1 crore for a 20-year term. The premium
for this will be approximately ~20,000. Theresa doesnt need
any additional life cover
HEALTH INSURANCE: Present health cover is adequate. The
family needs to review their cover every two years
ACCIDENT INSURANCE: Abraham needs to take a ~1 crore
accident policy, with a ~15 lakh temporary total disability
benefit. The premium for this will be ~13,000
approximately
>PLANNING FOR GOALS

SON'S COLLEGE & POSTGRADUATION FUNDING (2023 - 2027) :
From the current FDs, ~7.65 lakh can be invested in 70 per
cent equity and 30 per cent debt mutual funds portfolio.
Additionally ~19,500 needs be invested every month for
12 years in the above portfolio
Annual rate of return: 11 per cent on this portfolio
DAUGHTERS COLLEGE & POSTGRADUATION FUNDING
(2030 - 2034) : From the balance FDs, ~4.50 lakh can be
invested in a 70 per cent equity and 30 per cent debt mutual
funds portfolio. Additionally, ~14,000 needs be invested
every month for 19 years in the above portfolio
Annual rate of return: 11 per cent on this portfolio
RETIREMENT PLANNING (2035) : Abrahams EPF and PPF will
fetch ~83 lakh and ~43 lakh, respectively, considering he
invests ~1 lakh every year in PPF. His mutual funds and
shares will be worth ~70 lakh and ~23 lakh respectively. To
cover the shortfall, ~57,000 per month needs to be invested
in a 60 per cent equity and 40 per cent debt mutual funds
portfolio for 14 years, not possible at this moment. He can
start with ~25,000 now and increase the amounts gradually
every year
Annual rate of return assumed: Six per cent post tax on FDs,
8 per cent on EPF & PPF, 11 per cent on mutual funds and 15
per cent on shares

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CASE STUDY

Business Standard analyses

NET ANNUAL INCOME

Per month (~)

Net monthly surplus: ~24,667

~7.5 lakh as TTD benefit, is recommended for Mathew. The

>PLANNING FOR GOALS

BUYING A FLAT IN BENGALURU (2018) Mathew will only be

RETIREMENT PLANNING (2045) Mathew should have an EPF

NET ANNUAL INCOME

Per month (~)

Net monthly surplus: ~84,600

Current value: Future value:

Current value: Future value:

with ~15 lakh as TTD benefit, is recommended for Rajeev and

>PLANNING FOR GOALS

DAUGHTERS EDUCATION (2022 TO 2026) The couple should

DAUGHTERS MARRIAGE (2029) Need to save ~21,000 a month

RETIREMENT PLANNING (2028): Rajeev and Sejal should have

NET ANNUAL INCOME

>STATUS & GOALS

Per month (~)

Monthly income: ~85,000

Net monthly surplus: ~34,837

DAUGHTERS MARRIAGE (2028)

(2021 to 2025) (Inflation 10%)

(Present floating rate interest 10%)

~33.60 lakh ~10 lakh

CLEARING HOME LOAN (2016)

Current dues loan:

Home loan 6,00,000

~75 lakh. A suitable term plan for 15 years is suggested, which

>PLANNING FOR GOALS

DAUGHTERS MARRIAGE (2028): Need to save ~9,000 a month

CLEARING HOME LOAN (2016): Manju should increase her

RETIREMENT PLANNING (2036): Manjus Employees' Provident

NET ANNUAL INCOME RATING

Mira Road, nearMumbai ~13.20 lakh

>STATUS & GOALS

Per month (~)

Monthly income: ~1,10,000

Net monthly surplus: ~29,644

PAYING OFF HOME LOAN

(2018) (home loan interest 10.50%)

(2023 to2027) (inflation 9%)

(2033) (inflation 10%)

BUYING A 2-BHK FLAT

Current value: Future value:

(2019) (inflation 10%)

Home loan 9,80,000

account balance and FDs, they should switch ~1 lakh from

~1 crore, while Kavita should take a ~40-lakh cover. A suitable

of ~5 lakh sum assured, with a premium of about ~15,000

>PLANNING FOR GOALS

SON'S EDUCATION (2023-27): The couple should start investing

SON'S MARRIAGE (2033): Need to save ~3,000 a month in a

BUYING A 2 BHK FLAT (2019): The existing flat, which will be

NET ANNUAL INCOME RATING

>STATUS & GOALS