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Name: Aman Arya: Client Information Ideal Benchmarks, If Any

This document provides key indicators and benchmarks for a 33-year old self-employed client in the real estate industry with a monthly income of less than Rs. 1 lakh and current savings of less than Rs. 10k. The client has a conservative risk profile and very cautious volatility handling ability. Based on the information provided, the client needs to focus on increasing savings from 10% to 30% minimum, invest regularly in mutual funds, and purchase adequate term and health insurance. Specific recommendations are provided for short-term goals and appropriate fund categories.

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Ishaan Kumar
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42 views

Name: Aman Arya: Client Information Ideal Benchmarks, If Any

This document provides key indicators and benchmarks for a 33-year old self-employed client in the real estate industry with a monthly income of less than Rs. 1 lakh and current savings of less than Rs. 10k. The client has a conservative risk profile and very cautious volatility handling ability. Based on the information provided, the client needs to focus on increasing savings from 10% to 30% minimum, invest regularly in mutual funds, and purchase adequate term and health insurance. Specific recommendations are provided for short-term goals and appropriate fund categories.

Uploaded by

Ishaan Kumar
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Name: Aman Arya

Key Indicators (Investment):


  Client Information Ideal Benchmarks, if any
Age: 33  
Employment Status (Actual Real estate  
Industry and Designation): Self employed
Monthly Income :  less than 1 lakhs  
Current Savings   less than 10k  
(Instruments):
Regular Investments  Nil Mutual Fund
(Monthly):
Current Liquid Assets  less than 5 lakhs Mutual Fund
(Instruments):
% of Savings  10% 30% minimum
% of Savings in Wealth  No info 20-25% minimum
Generating Instruments :
% of Loan EMI as SIP  No info 10% of EMI
Key Indicators (Risk Profile):
    Ideal Benchmarks, if any

Age   Mutual Fund Equity


(100 – Age)
Risk Appetite:  Conservative  100-33=67
Consevative/ Moderate/
Aggressive
Volatility handing ability:  very cautious 67
Very cautious/ somewhat
cautious/ can handle
valoatility

Inference and Interpretation:


Parameter Rating out of 5 Star What needs to be done
Income to Savings  2  Expense are more. Concentrate of saving
more
Savings to Investment  1  Regular investments must be considered
Risk Protection  1  invest more in safer options
Goal Achievement Possibility and to what Extent  1  Short term goals maybe achieved but
consider long term goals due to distress in
economy
Three key Advices for the Client    
Term Insurance 5 star (if Sum Assured 100 times monthly No info 
income)
Health Insurance 5 star (if Sum Assured 40 times monthly  No info
income)
Risk Protection

Term Insurance:
Monthly Monthly Children Parents Life Style Current Desired
Income Expense Education and Healthcare Inflation Sum Sum
Marriage Expenses Assured Assured
Expenses
100000  50-75k  no info  no info  8%  nil  
(max)

As your age is 33, and if you consider retiring at an age 60, You need to have sum
assured cover of Rs 1 crore, with a premium of Rs 972 per month for next 27 years
Or you can opt for 10 years premium payment with a premium of 2252 per month as
your SIP.
Health Insurance:
Monthly Monthly Children Parents Life Style Current Desired
Income Expense Education and Healthcare Inflation Sum Sum
Marriage Expenses Assured Assured
Expenses

100000  50-75k  no info  no info  8%  nil  


(max)

you need to have sum assured cover for health insurance at least a sum insured
of 5 lakhs which is 50% of your annual income.
Analysis
• Looking at the profile, your savings habits are poor. You are saving a 10%
which is 20% less than as per Indian standard, it needs to be increased for
the achievement of your goal.
• Based on your investment profile it looks like you will not be able to
achieve your financial goals in the given time.
• As your age is 33 and you have a short term goal, considering the fact you
want higher returns You should invest in these category as per your
considered goal.
Short term goal (1-2 years) Fund Category
Buying a Car Medium Term Bond Fund (AAA)
Buying a house (Down payment) Medium Term Bond Fund (AAA)
Saving for one's Marriage Corporate Bond Fund
Saving for admission of children to school/
college Short Term Fund
Vacation for the Family Short Term Fund
Contigency Fund ( Emergency Fund) Liquid Fund
Any Education course Ultra Short Term Fund

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