Scribd
Upload
76 views3 pages

Case Study

Mr. Rajavardhan, a 38-year-old IT professional, aims to save for two major financial goals: Rs30,00,000 for starting a business at age 50 and Rs18,00,000 for his daughter's higher education. To achieve these goals, he should create a budget, establish an emergency fund, invest in fixed deposits and mutual funds, consider life insurance, and plan for retirement. Appropriate financial planning will help him secure his family's future and meet his financial objectives.

Uploaded by

faridabanu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
76 views3 pages

Case Study

Mr. Rajavardhan, a 38-year-old IT professional, aims to save for two major financial goals: Rs30,00,000 for starting a business at age 50 and Rs18,00,000 for his daughter's higher education. To achieve these goals, he should create a budget, establish an emergency fund, invest in fixed deposits and mutual funds, consider life insurance, and plan for retirement. Appropriate financial planning will help him secure his family's future and meet his financial objectives.

Uploaded by

faridabanu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Case study on financial planning

Mr.
Rajavardhan
is 38 years old, working in an IT industry and earns Rs1,10,000 per month.
After meeting all the routine expenses of his family he is able to save 45,000 per
month. He wishes to invest his savings in bank deposits, bonds and mutual
funds. His family consists of his wife and a daughter aged 5 years old. He is the
sole earning member of his family and he has a two major financial goals for
the future. A) At the age of 50, he wants to setup his own business. For that, he
may Require 30,00,000 as a seed capital. B) He may require 18,00,000 for his
daughter’s higher education purpose. He believes that the investment takes care
of his finances adequately towards his financial needs both current and future.
Suggest how would an appropriate financial planning help his needs.

Answer:
Mr. Rajavardhan can achieve his financial goals and secure his family’s future.
Explanation;
Mr. Rajavardhan has two major financial goals for the future:
Setup his own business at the age of 50, for which he requires a seed capital of
Rs30,00,000.
His daughter’s higher education, for which he requires Rs18,00,000.
To achieve these goals, Mr Rajavardhan needs to do appropriate financial
planning. Here are some suggestions for him:
Create a budget:
Mr. Rajavardhan should create a monthly budget and stick to it. This will help
him keep track of his expenses and ensure that he saves enough money every
month to achieve his financial goals.
Emergency Fund: Mr Rajavardhan should set aside some money every month
for an emergency fund. This fund should have enough money to cover family’s
expenses for at least 6 months in case of any unforeseen circumstances like loss
of job, illness or any other emergency.
Invest in fixed deposits: Mr. Rajavardhan can consider investing a portion of
his savings in fixed deposits, which offer guaranteed returns and are relatively
safe. He can also consider investing in recurring deposits, where he can deposit
a fixed amount every month.
Invest in mutual funds: Mr Rajavardhan can also consider investing in mutual
funds, which offer the potential for higher returns, However, he should choose
the mutual funds carefully based on his risk appetite and financial goals.
Life Insurance: Mr Rajavardhan should consider buying life insurance to
ensure that his family is financially protected in case of his untimely demise.
Retirement Planning: Mr Rajavardhan should start planning for his retirement
early. He can consider investing in a pension plan or retirement fund to ensure a
regular income stream after retirement.
By following these steps and doing appropriate financial planning, Mr
Rajavardhan can achieve his financial goals and secure his family’s future.

You might also like