Financial Planning

The NEED of the TOUGH TIME

Presented by,
Kaushal Mandalia
 Stock Market Down by 70% The TOUGH TIME
Investors lost their Confidence.

Higher Interest Cost for Corporate

Higher Interest Cost for Corporate

Job CUT : Further Leads to Negative Impact on DEMAND

Uncertain TIME, Uncertain FUTURE.
 What are the EFFECTS?

1. Portfolio Value at Rock Bottom if

Invested most of the money in
Equity Market.
Market
2. No Fresh Demand is Creating
th
through
h IPO or Equity
E it NFO.
NFO
3. Supply is Higher than DEMAND
hence, Increased possibilities of
Stock Market Going Down further.
Do you NEED to WORRY?

If your Portfolio is UNSTABLE

Y should
You h ld be
b worriedi d

If Your Portfolio is STABLE

Sit and Relax.
 Unstable Equity / MF / Debt 
P tf li
Portfolio and Others
d Oth

Emergency 
Equity 
Fund
Market

Mutual 
Fund Insurance
Debt 
Instrument
Stable
Portfolio
Emergency Fund

Insurance / Protection
Insurance  / Protection You can be WORRY‐FREE if 
your Portfolio is STABLE
THREE Parameters to CHECK…

GOAL or OBJECTIVE
Must be linked with Emotions and Not LOGIC only
Must be linked with Emotions and Not LOGIC only..

RISK APPETITE
RISK APPETITE
Lets define this Clearly, Don’t Expect 100% Return at 10% RISK

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

•Define Time Horizon CLEARLY 
 GOAL or Objective of INVESTMENT
Financial 
Planning
Protection
Insurance
Child’s education and 
marriage

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

Money for emergencies

An independent 
retired life

Legacy for future 
generations
 Head + Heart = Buying DECISION

STRONG Emotional Connect
Rational Thinking
Emotions Question
Q
Guaranteed Return of 10% or 
Non Guaranteed Return of 10% Denial Nothing is going to happen to me
FEAR God Forbid
Financial LOGIC
Returns, Economic Conditions, C
Concern How much is enough to
H hi h t Ensure 
E
Product Comparison Financial Security for my Family?
Love and  I love my wife and children very much.
Recommendation by Advisor, Affection
Friends and Relatives Determination I want my dreams for my family to be 
Ensured, regardless of what happens
 Risk Appetite 
“Only Dead Man Does not have any Worry or 
Challenges”……. Anonymous 

Similarly, If you don
Similarly If you don’tt have money,  you 
have money you
have ZERO risk of losing it…

Risk Appetite is determined by “How

much you are willing to give up with
your investment if possibility arises”

Hence it largely depends on..

on

Returns
Fixed Returns or Market Linked

Liquidity
With Lock in Period or Without
Investment Options

Insurance
 Time Horizon

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

Long Term Investments  (More than 2 Yrs)
Must be Goal Oriented (Use of Head and Heart both)
Must be Goal Oriented (Use of Head and Heart both)
Can be Market Linked but having Diversified Asset Allocation
 Protecting your 
Risk  GOALS and DREAMS 
Management against Any 
g y Estate Planning
state Planning
Uncertainty
Uncertainties Covered Whole Life Policies
Pre matured Death
•Pre‐matured Death MWP Act
•Accident Nomination
•Disability Absolute Assignment
•Sickness
INSURANCE

Retirement Planning 
and Employee Benefits Choice of Asset  Tax Planning
Allocation (Debt, 
Pension Schemes
Immediate q y,
Equity, Market  Section 80C
Deferred Linked Returns with  Section 80D
Super Annuation Capital Protection) Tax Free Maturity
 DYNAMIC FLOOR FUND

Bullish (Jan 07 to 
( Bearish (Dec 07 
(
Dec 07) to Dec 08) Fund in FOCUS
di
Sensex 13827 to 20288 20286 to 9832
NAV of Dynamic 
NAV of Dynamic 10.17 
10.17 to 
to 13.11 13.11 to 
to 13.05
Floor Fund

Last 2 Years Performance
Bullish –
ll h Jan’07 to Dec’07
’ ’ Bearish –
h Dec’07 to Dec’08
’ ’

% CAGR
Dynamic Floor Fund – Unique Advantage
Available with 
Kotak Life 
Insurance – Head 
Start Plans
Capital Protection Returns

1. Goal Oriented : Child Education, Marriage and Start in Life Expense
2 Risk Appetite : Low Risk –
2. i k i i k Moderate Return. Protection + Growth
d i G h
3. Time Horizon : Advisable for Minimum Tenure of 10 Years 
Financial Independence..
Stable Portfolio

Thoughtful Planning
Thoughtful Planning

Retirement  Emergency 
Planning Funds

Other  Critical 
Investments Ill
Illness
Financial 
Independence
Disability Savings
g

Education Income 
F d
Funds Protection
Protection 
upon Death
Accident & Hospitalization
Sleep Better at Night
With
Right Financial Advise
P
Prepared By,
dB

Kaushal R. Mandalia
Associate Financial Planner
Risk Management & Insurance Planning
kaushal@thefinancialplanners.in