LIVE PROJECT

FINANCIAL PLANNING FOR HAWKERS GROUP 4 ( PG SEC-B 2011-2012)

TEAM MEMBERS Bhagyashree Rathore Gokul Gopinadh Rishi Gulati Shakthi Shankaran K.S Shibesh Kumanr Malik

PROJECT MENTOR Vineet Jain

The Indian Institute of Financial Planning 3E/14, Jhandewala Extn.New Delhi

The Indian Institute of Financial Planning, New Delhi

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Details of the Clients

Personal Details
Name: Banwari Lal Gupta Age -32 Yrs Marital status- Married Occupation- Grocery Store

Address of the client #2934/E, Ranjit Nagar, East Patel Nagar, New Delhi

Family Details Mother: Sushma Gupta Age: 55 Wife: Asha Gupta Age:30 Occupation: School Teacher Daughter: Simran Gupta Age: 4 Yrs. Son: Daksh Gupta Age: 2 yrs.

The Indian Institute of Financial Planning, New Delhi

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Savings and Investments

Client Income And Expenses Detail
Name Banwarilal Gupta Age 32 Income 35000 Expense Household Expense Miscellaneous Expenses Saving Asha Gupta Simran Gupta Daksh Gutpa Sushma Gupta 30 4 2 60 15000 Nil Nil Nil 50000 50000 20000 5000 25000

Clients Asset and Liabilities Client Asset And Liabilities Detail

Asset House PPF Fixed Deposit Gold Bank A/C Amount 12500000 300000 280000 300000 50000 Liabilities Amount

Nil

Net worth

930000

Note: Excluding House property

The Indian Institute of Financial Planning, New Delhi

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Goals and Desires:

Children Education Corpus. Children Marriage Corpus. Purchase of New Car within 5 years. Retirement Corpus. Renovation of House.

The Indian Institute of Financial Planning, New Delhi

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Recommendations: Since Mr. Banwari lal Gupta is the main bread winner of the family we
would recommend for a term insurance of Rs. 50 lakhs.

A term assurance of Rs. 25 lakhs to Mrs. Asha Gupta. A Health insurance Floaters of Rs. 3 lakhs for medical Emergency. The present value of the corpus required to for to full fill all the goals and
desire is Rs.20 lakhs.

After all expenses the family is left with Rs 19,000/month for investment
purpose.

The amount available for investment purpose would be invest in the

following ratio. (80% in Equity and 20% in Debt). The amount to be invested in equity is Rs.15000: Rs. 5000 in small and mid-cap. Rs. 5000 in Large Cap Fund. Rs. 5000 in Blue Chip Fund. The family further growing income would be invested in debt instruments. We would further recommended him to take a home loan and construct house of four floor and the rent earned from the house would be used for the loan repayment and he is able to avail tax benefits. After the loan is completed an extra income would be generated.

The Indian Institute of Financial Planning, New Delhi

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Recommended Fund Allocation

Rs 19,000

Rs 5,000 in Small and Mid Cap Rs 15,000 in Equity Funds Rs 5,000 in Large Cap

Rs 4000 in Debt Funds

Rs 5,000 in Blue Chip

The Indian Institute of Financial Planning, New Delhi

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Scheme Type: Canara Robeco Tax Saving Equity Scheme (Open Ended) Date of Allotment: 31/03/1993 Scheme Objectives: To achieve long term capital appreciation by predominantly investing in equities to facilitate the subscribers to seek tax benefits as provided under Section 80 C of the Income Tax Act, 1961. Minimum Investment: I) Lump sum Investment Minimum amount: Rs. 500.00 and multiples of Rs.500.00 thereafter. Subsequent purchases: Minimum amount of Rs. 500.00 and multiples of Rs. 1.00 thereafter. II) Systematic Investment Plan (SIP) Minimum installment amount - Rs. 500.00 and Rs. 1000.00 respectively for Monthly and Quarterly frequency respectively and in multiples of Rs. 1.00 thereafter. III) Systematic Transfer Plan (STP) / Systematic withdrawal plan(SWP) Minimum installment amount - Rs. 500.00 and Rs. 1000.00 respectively for Monthly and Quarterly frequency respectively and in multiples of Rs. 1.00 thereafter.

Asset Allocation:
Instruments Equity & Equity related Money Market Instruments Minimum 80% 0% Maximum 100% 20%

Plans & Options:

Plan Name Canara Robeco Equity Tax Saver - Growth Option Canara Robeco Equity Taxsaver - Dividend Option

Load Structure:
Entry Load: Nil Exit Load: Nil Scheme Liquidity/Switch: Liquidity by way of repurchase facility after 3 years from date of allotment \through CR AMC Branches or offices of the Registrar and Transfer Agents (R & T) is available Fund Manager: Mr. Soumendra Nath Lahiri

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Current Expense Ratio (#): On the first 100 crores average weekly net assets 2.50% On the next 300 crores average weekly net assets 2.25% On the next 300 crores average weekly net assets 2.00% On the balance of the assets 1.75% (Effective Date 22/05/2009)

Plan Name Canara Robeco Equity Tax Saver - Growth Option Canara Robeco Equity Taxsaver - Dividend Option

Nav 25.7400 17.1400

Nav Date 05-032012 05-032012

Name of the Company A.Equities 1- Listed HDFC Bank Ltd Infosys Ltd Tata Consultancy Services Ltd Reliance Industries Ltd State Bank Of India ICICI Bank Ltd I T C Ltd HDFC Ltd Bharat Petroleum Corporation Ltd Bharti Airtel Ltd ING Vysya Bank Ltd Hindustan Unilever Ltd Oil India Ltd Tata Motors Ltd Larsen & Toubro Ltd IPCA Laboratories Ltd Glaxosmithkline Consumer Healthcare Ltd Bharat Electronics Ltd Pantaloon Retail (India) Ltd Ultratech Cement Ltd ACC Ltd Power Grid Corporation Of India Ltd Nestle India Ltd IndusInd Bank Ltd Sadbhav Engineering Ltd Ashoka Buildcon Ltd

Industry Classification

% of Net Assets

Banks Software Software Petroleum Products Banks Banks Consumer Non Durables Finance Petroleum Products Telecom - Services Banks Consumer Non Durables Oil Auto Construction Project Pharmaceuticals Consumer Non Durables Industrial Capital Goods Retailing Cement Cement Power Consumer Non Durables Banks Construction Project Construction Project

5.16% 3.90% 3.67% 3.27% 3.20% 3.03% 2.96% 2.86% 2.71% 2.25% 2.19% 2.19% 2.18% 2.12% 2.08% 2.02% 1.93% 1.93% 1.71% 1.63% 1.63% 1.62% 1.57% 1.50% 1.50% 1.48% Page 8

The Indian Institute of Financial Planning, New Delhi

Union Bank Of India Cairn India Ltd Bank Of Baroda Punjab National Bank Hathway Cable & Datacom Ltd Ambuja Cements Ltd Coal India Ltd Dr. Reddy's Laboratories Ltd Hindustan Zinc Ltd Bajaj Auto Ltd Divi's Laboratories Ltd Jubilant Life Sciences Ltd Cadila Healthcare Ltd Eicher Motors Ltd Godrej Consumer Products Ltd United Phosphorus Ltd Tata Motors Ltd A (DVR) VA Tech Wabag Ltd GAIL (India) Ltd Hindalco Industries Ltd Colgate Palmolive (India) Ltd Zuari Industries Ltd Mphasis Ltd The Phoenix Mills Ltd Oberoi Realty Ltd Torrent Pharmaceuticals Ltd Hindustan Media Ventures Ltd Zee Entertainment Enterprises Ltd Steel Authority Of India Ltd Commercial Engineers & Body Builders Co Ltd LIC Housing Finance Ltd Sub Total 2- Unlisted B.Money Market Instruments HDFC Bank Ltd CBLO Sub Total Net Current Assets GRAND TOTAL ( NET ASSET)

Banks Oil Banks Banks Media & Entertainment Cement Minerals/Mining Pharmaceuticals Non - Ferrous Metals Auto Pharmaceuticals Pharmaceuticals Pharmaceuticals Auto Consumer Non Durables Pesticides Auto Engineering Services Gas Non - Ferrous Metals Consumer Non Durables Fertilisers Software Construction Construction Pharmaceuticals Media & Entertainment Media & Entertainment Ferrous Metals Industrial Capital Goods Finance

1.43% 1.40% 1.39% 1.38% 1.25% 1.25% 1.24% 1.21% 1.19% 1.18% 1.14% 1.14% 1.13% 1.10% 1.08% 1.02% 1.00% 0.97% 0.96% 0.93% 0.93% 0.92% 0.91% 0.90% 0.85% 0.78% 0.77% 0.61% 0.54% 0.50% 0.12% 93.51%

4.96% 1.67% 6.63% -0.14% 100.00%

The Indian Institute of Financial Planning, New Delhi

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Relative Performance (Fund Vs Category Average)

Returns and Risk Aggregates Rating & Risk Modern Portfolio Stat Fund Rating R-Squared 0.86 Fund Risk Grade Low Alpha 10.64 Fund Return Grade High Beta 0.91 Best and Worst Performance Best (Period) Month 36.76 (28/04/2009 - 28/05/2009) Quarter 91.81 (12/03/2009 - 11/06/2009) Year 171.77 (11/02/1999 - 11/02/2000)

Volatility Measures Mean Standard Deviation Sharpe Ratio

26.42 25.11 0.86

Worst (Period) -31.19 (12/05/2006 - 13/06/2006) -40.68 (21/02/2000 - 22/05/2000) -59.93 (15/09/2000 - 17/09/2001)

The Indian Institute of Financial Planning, New Delhi

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Risk & Rating Statistics 04/30/2012 Portfolio Return Canara Robeco Equity Taxsaver Portfolio Risk Canara Robeco Equity Taxsaver Above Average Above Average Average Above Average Average Above Average Average Average 3-Year 5-Year 10-Year Overall

Annual Returns Fund Return Rank In Category Category Average Sensex S&P CNX Nifty 2011 -16.35 4/36 -23.82 -24.64 -24.62 2010 24.93 8/37 18.78 17.43 17.95 2009 89.40 8/32 81.79 81.03 75.76 2008 -46.85 1/29 -55.56 -52.45 -51.79 2007 65.21 8/26 59.25 47.15 54.77

Analysis of the Funds

Of the 34 tax-saving funds that are available in the market today, many of which gave negative returns, Canara Robeco Equity Tax saver funds managed to show positive returns in the previous year. The fund which has a three year lock in period has outperformed its benchmark index (BSE 200) and its peers. BSE index performance was a negative 8.7, and the average for the funds peers was a negative 5.4, Canara Robeco Equity Tax saver fund managed 0.9 per cent. The fund gave a 3-year return of 33.74 per cent. Lahiri says the performance of the fund is the result of hard work, a defensive portfolio and good luck. Global uncertainties in the previous year, sticky and elevated levels of inflation, combined with a lack of policy initiatives meant a tough environment for Canara Robeco Equity Tax saver peers to handle. And these were good enough reasons for him to pick up stocks that he thought could go against the tide. So, he went overweight on FMCG and pharma stocks, along with a good mix of cement, energy and telecom.

SUITABILITY
The fund is suitable for equity investors with varying risk profiles given its high risk-adjusted returns. While the scheme provides tax deduction under Section 80C in the current financial year, we view the tax benefits as being merely incidental. Amidst a host of ELSS schemes that have struggled to deliver double digit returns over a 3-5 year period, Canara Robeco certainly stands out and may be a good choice for those looking at tax benefits as well. However, it is noteworthy that ELSS schemes have not been notified for tax deduction under the Direct Tax Code which is expected to come in to effect from April 2012.

The Indian Institute of Financial Planning, New Delhi

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HDFC Pro Growth Super II HDFC Pro Growth Super II Plan is a unit linked insurance plan (ULIP), such that if the Life Insured dies within the policy tenure, the nominee would receive both the Sum Assured and the Fund Value as Death Benefit. There are various options of combining the basic Death Benefit along with riders to increase protection.

Key Features of HDFC Pro Growth Super II

Unit linked insurance plan with a double death benefit No medical tests required 8 options of basic Death Benefit with 3 choice of riders Choice of 5 Investment Fund Options

HDFC Pro Growth Super II Plan Options The policyholder has a choice of 8 plan options 1. 2. 3. 4. 5. 6. 7. 8. Life Option = Death Benefit Extra Life Option = Death Benefit + Accidental Death Benefit Life & Health Option = Death Benefit + Critical Illness Benefit Extra Life & Health Option = Death Benefit + Critical Illness Benefit + Accidental Death Benefit Life & Disability Option = Death Benefit + Accidental Total & Permanent Disability Benefit Extra Life & Disability Option = Death Benefit + Accidental Death Benefit + Accidental Total & Permanent Disability Benefit Life & Health & Disability Option = Death Benefit + Critical Illness + Accidental Total & Permanent Disability Benefit Extra Life & Health & Disability Option = Death Benefit + Accidental Death Benefit+ Critical Illness + Accidental Total & Permanent Disability Benefit

Benefits you get from HDFC Pro Growth Super II Death Benefit In case of death of the Life Insured, the nominee would get the Sum Assured Plus the Fund Value. Maturity Benefit On maturity, the Fund Value is paid to the policyholder. Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C

The Indian Institute of Financial Planning, New Delhi

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Additional Features and Benefits of HDFC Pro Growth Super II Riders There are 3 riders available in this policy 1. Critical Illness Benefit rider 2. Accidental Death Benefit rider 3. Accidental Total and Permanent Disability Benefit rider Investment Fund Options There are 5 Investment Funds available 1. 2. 3. 4. 5. Short Term Fund Income Fund Balanced Fund Blue Chip Fund Opportunities Fund

Top-up - Not allowed in this plan Switching - Free switching is allowed at anytime. Partial Withdrawal - You are allowed to make partial withdrawals in this policy after 5 complete policy years or the life assured is 18 years old, whichever is later. The minimum amount of partial withdrawal should be Rs. 10,000 subject at least 150% of original regular premium remaining in the Fund Value and the Maximum Partial Withdrawal allowed is upto 300% of the original regular premium.

The Indian Institute of Financial Planning, New Delhi

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The Indian Institute of Financial Planning, New Delhi

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PORTFOLIO REVIEW HDFC Life has always been heavily exposed to financial services and the oil and gas sectors. However, the fund manager, who had earlier reduced exposure in the banking sector, has again tilted the portfolio towards it. The fund manager has taken a contra call on the infotech sector by reducing exposure. The portfolio has been balanced out with sufficient exposure in growing, but lowbeta sectors such as FMCG and healthcare. Exposure of metals, a high-beta sector, in the portfolio is considerably low while sectors like automobiles have been almost written off by the fund manager.

Past Performance Analysis

Investors can choose a sum assured between 10-40 times the annualised premium. The plan also offers options such as accidental death benefits and critical health benefits on payment of an additional charge. The plan's settlement option allows policyholders to take away the fund value at maturity in periodic instalments over a period that may extend over 5 years. ProGrowth Super II has a 30-day free look-in period, during which it can return the policy if found unsuitable. Other companies offer a shorter review period of 15 days. PERFORMANCE: ProGrowth Super II does not have a big range of funds, but offers all required categories for investors to choose from as per their risk appetite. The funds in this scheme are new and most have not been able to prove their sheen yet. The mid-cap Opportunity Fund has been one of the top performers, having generated absolute gains of around 17.5% over the past 15 months, despite a lacklustre performance by mid-cap stocks. The Blue-chip Fund is a large-cap fund, but it has not been able to outperform its benchmark BSE 100. The performances of debtoriented Income Fund and Short-Term Fund have also not been encouraging.Overall, the funds basket does not look very attractive. But going by the good track record of HDFC Life fund returns, one can invest in them

The Indian Institute of Financial Planning, New Delhi

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