FINANCIAL

PLANNING
Prepared By:

Akash Singhal – 131

Anirudh Shetty – 129

Prasuk Jain – 154

Aalap Parikh – 144

Rohan Mendon – 123

Nikunj Agrawal – 106

TY BBA – DIV B

School of Commerce Financial Plan for Mr. Vikas Tehlan

NMIMSUniversity

[Type the fax number]

1/16/2010
 Table of Contents
I. Introduction
II. Letter of Engagement
III. Personal Profile
IV. Dependents
V. Medical History
VI. Assets and Liabilities
VII. Insurance Details
VIII. Investment Details
IX. Family Income Statement
X. Family Expense Statement
XI. Net Worth
XII. Goals and Objectives
XIII. Retirement Plan
XIV. Risk Profiler
XV. List of required Documents
XVI. List of Associated Planners
XVII. Financial Planner Notes

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SOC, NMIMS University
Disclaimer
Figures stated in the attached report are derived based on assumptions and
information provided by you, the client. These assumptions and information
will change over time. Some of the information presented is based on current
tax and legislation which are subject to change.

Hence, it is imperative that you review your financial plan regularly to ensure it
is up-to-date and addresses your current needs. It is also important to look at a
few different scenarios to get an idea of the impact of various assumptions on
your planning objectives.

Information provided in the attached report is general in nature and should

NOT be construed as providing legal, accounting and/or tax advice.

Should you have any specific questions and/or issues in these areas, please
consult your legal, tax and/or accounting advisor.

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SOC, NMIMS University
Letter of Engagement
This document is meant to give you a better understanding of what you may expect from
the financial planning process, and what our respective obligations are within that process.

We provide comprehensive financial planning services through Josse Financial Services. We

do not charge a fee for the financial planning services. If you decide to implement our
recommendations, we ask that you make your investments through our firm. We are paid a
commission by the various financial institutions that we place our investments with. Since I
offer both mutual funds and insurance products, I work in an agent-principal relationship
with different companies. All mutual funds are offered through my mutual fund dealer Josse
Financial Services and I place my insurance business with [Josse Insurance Agency].If,
subsequent to our initial engagement, there are any changes to my business affiliations or
agency relationships that may have an effect on our relationship, I will inform you.
I am required to declare any interest that may prevent me from offering objective advice. I
am unaware of any current conflicts of interest and, should any conflicts appear in the
future, you may rest assured that I will bring them to your attention immediately.
I am bound by professional secrecy and may not disclose any of your confidential
information without your written consent unless required to do so by law.

It has been agreed by all parties that Mr. Vikas Tehlan and Mrs. Sangeeta Tehlan must be
present at all meetings and that decisions can only be made subject to their unanimous
approval. It is agreed by both the advisor and you that telephone orders will not be
accepted, and that the you must provide your signature as authorization for every
transaction. Before making any recommendation, I must first have a complete picture of
your current financial situation. The information I need deals with, but isn’t necessarily
limited to, your: assets, liabilities, income, expenses, tax position/returns, investment
statements, will and power of attorney, insurance coverage, pension plans and group
benefits. If I am unable to obtain the information I require, you should understand that it
could prevent me from giving you appropriate advice.

When considering the various financial strategies available in your particular situation, I may
be required to make one or more assumptions. These assumptions may include, but are not
limited to, your anticipated retirement age, life expectancy, retirement income
requirements, government benefits, time horizons, special needs, rates of return and
inflation and income tax rates. Any assumptions made will be reasonable and realistic, and
will be disclosed to you in writing in the financial plan.
Having reviewed your financial situation, I will prepare a written financial plan for you to
review. When discussing this report with you, I will do so in such a way so that you are able
to understand: advantages, disadvantages, costs and risks of the various alternatives, the
time sensitivity of the recommendations, the consequences of taking no action and the
impact of a change in the assumptions on the projected results.

It is agreed that the advisor will conduct a review with you in person every 12 months. In
the event of changes that may affect the personal circumstances (ie. a change to the Income

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SOC, NMIMS University
Tax Act announced in the annual budget), the advisor will contact you by telephone or e-
mail. Should your financial circumstances change (ie. as a result of marriage, birth of a child,
inheritance, etc.), you are responsible for contacting the advisor as soon as possible.

The services outlined previous are in accordance with my requirements. The terms set out
are acceptable to
me, and are hereby agreed to:

Date: 16th Jan 2010

___________ _____________
Vikash Tehlan Sangeeta Tehlan

Akash Singhal Anirudh Shetty Prasuk Jain

Aalap Parikh Rohan Mendon Nikunj Agrawal

(CFP’s, Josse Financial Services)

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SOC, NMIMS University
PERSONAL DETAILS
PARTICULARS DESCRIPTION

NAME VIKAS TEHLAN

ADDRESS 303,304, BUILDING NO 3, SECTOR 6, SHANTI

GARDEN, THAKUR COMPLEX, KANDIVALI EAST

MUMBAI 400107

PERMANENT ADDRESS 916, SECTOR 21 D, FARIDABAD

HARYANA 121002

TELEPHONE +91 22 6422 4308

MOBILE +91 9833 880 699

QUALIFICATION MECHANICAL ENGG. FROM DELHI UNIVERSITY

OCCUPATION SERVICE

JOB PROFILE I.T. EXECUTIVE, ZENITH INFOTECH LIMITED

DATE OF BIRTH OCTOBER 7, 1978

MARITAL STATUS MARRIED

BLOOD GROUP B+

AGE 31 YEARS

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DEPENDENTS

FATHER- PRAKASH TEHLAN

AGE & D.O.B. 58 YEARS , 11TH JUNE 1951

SPECIAL NOTES SETTLED IN HOMETOWN, RETIRED, PROVIDE

1/3RD EXPENSES

MOTHER GURPREET TEHLAN

AGE & D.O.B 50 YEARS, 25th FEBRUARY 1959

SPECIAL NOTES IN HOMETOWN WITH HUSBAND, HOUSEWIFE

WIFE SANGEETA TEHLAN

AGE & D.O.B 27 YEARS, 9TH OCTOBER 1982

SPECIAL NOTES HOUSEWIFE, SETTLED IN MUMBAI

SON MANVEER TEHLAN

AGE & D.O.B. 4 YEARS, 10TH MARCH 2005

SPECIAL NOTES N/A

DAUGHTER DIMPLE TEHLAN

AGE & D.O.B. 2 YEARS, 18TH JUNE 2007

SPECIAL NOTES N/A

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MEDICAL HISTORY

FAMILY MEMBERS MEDICAL DETAILS DESCRIPTION

VIKAS TEHLAN CLEAN N/A

SANGEETA TEHLAN CLEAN N/A

MANVEER TEHLAN CLEAN N/A

DIMPLE TEHLAN CLEAN N/A

PRAKASH TEHLAN CLEAN N/A

GURPREET TEHLAN CLEAN N/A

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SOC, NMIMS University
ASSETS
DESCRIPTION ORIGINAL COST CURRENT MARKET VALUE

RESIDENCE (BOMBAY)- 21,00,000 55,00,000

2BHK

LEASED OUT HOME (MIRA 31,00,000 31,00,000

ROAD)

ROW HOUSE (FARIDABAD) 7,00,000 30,00,000

FARM LAND (34 ACRES, ANCESTRAL Rs 88,00,000

FARIDABAD) GREEN ZONE

NON-DEVELOPMENT ZONE

(NO SELLING PREFERENCE)

GOLD ANCESTRAL (300 GMS) 17,000 PER (10 GMS.)

+ PURCHASED (200 GMS) Rs. 8,50,000

@RS. 7300 PER 10 GMS.

TOTAL ASSETS – Rs. 2,12,00,000

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SOC, NMIMS University
LIABILITIES
DESCRIPTION AMOUNT EMI

CAR LOAN SWIFT DZIRE 4,65,000 12,565 FOR 5 YEARS

TOTAL LIABILITIES – RS. 4,65,000

INVESTMENT
DESCRIPTION YEARLY PREMIUM RATE OF RETURN

ICICI BANK – 1,00,000(SELF) 8%

MUTUAL FUNDS 15 years (expiring 2020)

INSURANCE DETAILS
PRODUCT INSURED AMOUNT PREMIUM

CAR 5,81,000 Rs. 15,444 (YEARLY)

MAX NEW YORK LIFE 5 LAKHS EACH MEMBER RS. 2770 X 4 = 11080

INSURANCE PLAN- FOR 4

PERSONS

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SOC, NMIMS University
Net Worth

TOTAL ASSETS – TOTAL LIABILITIES

Rs. 2,12,00,000 - 4,65,000
Rs 2,07,35,000
(Two Crores Seven lakhs thirty five thousand )

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 RISK PROFILE

YOUR SCORE POINTS

1. How familiar are you with Investment Markets? 4

a. Very little understanding

b. Not Very familiar
0
c. Have enough experience to understand the
2
importance of diversification
4
d. Understand that markets fluctuate and that different
market sectors offer different income, growth and
taxation characteristics.
6
e. Experience with all investment sectors and
understand the various factors which may influence
8
performance.

2. How long do you intend to invest your savings? 20

a. Short term (1-2 years)
5
b. Medium term (2-5 years)
10
c. Medium-long term (5-7 years)
20
d. Long term (more than 7 years)
30

Will you need to access these funds during the term of the
3. 0
investment?
a. Yes -8
b. No 0
Inflation erodes the value of your savings. Growth investing
4. can counter the eroding effect of inflation but will also 5
expose you to the risk of short-term losses
a. I am comfortable with this trade off to beat inflation. 10
b. I am conscious of the risks inflation presents, but
would prefer a middle ground. 5
c. Inflation may erode my savings but I have no
tolerance for loss. 0

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5. Which of the following risk/return scenarios would you be 10
most comfortable with?
a) Low risk/return (maximum return 6% pa, minimum
return 3% pa) 0
b) Moderate risk/return (maximum return 8% pa,
minimum return 5% pa) 5
c) Above average risk/return (maximum return 12% pa,
minimum return 10% pa) 10
d) High risk/return (maximum return 20% pa, minimum
return 25% pa) 15

What would you do if your investment dropped in 10

6. value from an initial Rs 1,000 to Rs 850?
a) Move the entire investment to cash 0
b) Move some of the investment to cash 5
c) Give it more time 10
d) Buy more of the investment. 15

7. What is the most aggressive investment you‘ve ever 4

made?
a) Shares, technology fund, smaller companies fund 8
b) Managed funds 6
c) Investment Property 4
d) Own home 2
e) Cash Management Fund 0

8. If you were investing in a share portfolio, which of the 4

following would suit you best?
a) A portfolio of potentially high-returning shares 10
whose value could rise or fall dramatically
b) A blue chip portfolio which pays regular dividends 4
c) A mixture of the above two options 7
d) I am not interested in shares 0

TOTAL SCORE 57

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Customer Risk profile
As per the Inputs given by you we classify you as Prudent.

You want a balanced portfolio to work towards medium to long term

financial goals. You require an investment strategy that will cope with the
effects of tax and inflation. Calculated risks will be acceptable to you to
achieve good returns.

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FAMILY INCOME STATEMENT
Monthly Income

Husband Wife TOTAL

ACTIVE INCOME
Basic Rs. 40,000 -
HOUSE RENT ALLOWANCE Rs. 12,000 -
Transportation Rs. 800 -
Supplementary allowance Rs. 6,000 -
Medical Reimbursement Rs. 1,250 -
Amount Received Rs. 60,050 -
PPF DEDUCTED Rs. 780 -
EMPLOYER CONTRIBUTION Rs. 780 -
Rs. 59,270 -
Total Active Income Rs. 61,610 - Rs. 61,610

PASSIVE INCOME
RENT {from Mira road} 9000 -
- rent maintainence (900) -
Total Rent 8100 -

Tution fees (11 students) - Rs. 11,000

Total passive income Rs. 8,100 Rs. 11,000 Rs. 19,100

Total Monthly Income Rs. 80,710

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FAMILY EXPENSE STATEMENT
DETAILS AMOUNT NO OF TIMES MONTHLY EXPENSE

AUTOMOBILE PETROL Rs. 1,000 7 Rs. 7,000

LEISURE Rs. 3,000 1 Rs. 3,000
APARTMENT DECO Rs. 1,000 1 Rs. 1,000
MONTHLY GROSSERY Rs. 2,500 2 Rs. 5,000
SCHOOL FEEES [SON] Rs. 1,500 1 Rs. 1,500
ELECTRICITY Rs. 2,500 1 Rs. 2,500
MINERAL WATER Rs. 100 30 Rs. 3,000
TELEPHONE BILLS
PERSONAL HP: Rs. 1,300 1 Rs. 2,000
WIDE HP: Rs. 700 1
INTERNET CHARGES Rs. 800 1 Rs. 800
REFRESHMENTS Rs. 30 30 Rs. 900
SERVANT Rs. 1,500 1 Rs. 1,500
SOCIETY MAINTAINANCE Rs. 2,250 1 Rs. 2,250

DINNER ON WEEKENDS Rs. 1,000 4 Rs. 4,000

MONTHLY KIDS CLOTHING Rs. 500 1 Rs. 500
EXPENSES

CAR LOAN RS. 12565 1 12565

ICICI MUTUAL FUND RS 8334 1 8334

CAR INSURANCE 1287 1 1287

MAX NEW YORK JOINT LIFE 923 1 923

INSURANCE POLICY

TOTAL RS. 58059

[-] REIMBURSEMENT FROM OFFICE FOR AUTOMOBILE CHARGES

DETAILS AMOUNT
AUTOMOBILE PETROL 7000

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Telephone Expenses 1000

TOTAL MONTHLY EXPENSES TOTAL EXPENSE – REIMBURSEMENT

RECORDED:
Rs 58059 – INR 8000
Rs 50,059/-

SAVINGS STATEMENT
Monthly Income Rs 80710
- Monthly Expense (Rs 50059)

Net Monthly Savings Rs 30651

Note: - The tax has been charged on house rent and the salary.

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GOALS & OBJECTIVES
GOALS

Your family is very rich in assets back home and even here. You have purchased the current flat and

the Mira Road flat from father’s money. However you now want to build your own fortunes. Your

have two particular goals –

GOAL 1 – Your wife Mrs Sangeeta Tehlan would like to start her own coaching class in Borivali for

80 students in Std. X students in ICSE boards in 2020.

GOAL 2 - You would like to host a grand celebration for your daughter Dimple’s wedding around

2030.

Objectives

1. Make provision for the above goals

2. The above goals should not burden the children’s cost of education

3. You wants enough money for his retirement

4. You expect your son to get a professional degree. Since the son will decide that maybe a

decade later, you will not start palling for it now. However, you would like to have a high

savings level.

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SOC, NMIMS University
 PLAN 1 - FOR COACHING CLASSES OF
MRS. SANGEETA TEHLAN
YOUR FIRST GOAL IS TO START A COACHING CLASSES FOR MRS. TEHLAN.
You plan to start the classes by 2020. Below is the list of fixed costs which you shall incur on
starting of the classes in 2020. We have already for inflation @ 5%.

FIXED COST OF START-UP

DETAILS COST × NO OF ITEMS TOTAL AMOUNT

COMMERCIAL SPACE 5000 PER SQ FEET × 1000 SQ FT INR 50,00,000

STAMP DUTY AND 15% OF THE FLAT COST INR 7,50,000
REGISTRATION
BASIC INFRA - INR 100,000
INTERIORS AND DECORATIONS - INR 200,000
FURNITURES AND FIXTURES - INR 300,000
COMPUTER, PRINTER, ETC 40,000 × 1 INR 40,000
WEBSITE AND INITIAL ADVT. - INR 15,000

TOTAL FIXED COST INR 64,05,000

PROPERTIES YOU HAVE

WE ARE ANALYSING THIS TO SELECT THE BEST APPROPRIATE ESTATE TO BE SOLD IN FUTURE TO
EQUATE THE AMOUNT TO EVALUATE AND ADJUST FUTURE GOALS

PROPERTY CURRENT PRICE APPRECIATION ASSUMED PRICE

KANDIVALI RS. 55,00,000 25% IN 10 YEARS RS. 68,75,000
MIRA ROAD RS. 31,00,000 25% IN 10 YEARS RS. 38,75,000

GENERATION OF PRE FINANCE TO MEET THE INITIAL STAGE EXPENSES FOR SETTING UP OF
CLASSES:

1)SALE OF FLAT AT MIRA ROAD INR 37,20,000

2)RENT RECEIVED FROM MIRA ROAD FLAT INR 18,20,000
3) FRESH CAPITAL INVESTED BY YOU
TOTAL CAPITAL IN HAND INR 64,05,000

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 1) CAPITAL GAIN TAX ON SALE OF FIXED ASSET OWNED BY MR VIKAS TEHLAN

WE ESTIMATE A SALE VALUE OF Rs.38,75,000 FOR YOUR MIRA ROAD FLAT IN 2010.

COST OF PURCHASE OF RESIDENTAIL FLAT AT Rs 31,00,000

MIRA ROAD:
SELLING PRICE OF THE RESIDENTIAL FLAT Rs 38,75,000
CAPITAL GAIN IN SALE OF FLAT Rs 7,75,000
CAPITAL GAIN TAX ON SALE OF ASSET: 20% ON Rs 1,55,000
Rs 7,75,000 =
THEREFORE, TOTAL AMOUNT RECEIVED FROM Rs 37,20,000
SALE OF RESIDENTIAL FLAT IN MIRA ROAD:

2) YOU HAVE INDICATED THAT YOU WOULD LIKE TO SELL THE MIRA ROAD FLAT TO FUND
YOUR ACQUISITION. MEANWHILE, WE SUGGEST THAT YOU INVEST YOUR MONTHLY RENT
FROM TH MIRA ROAD FLAT IN A RECURRING DEPOSIT OF STATE BANK OF INDIA.

RENT RECEIVED FROM MIRA ROAD FLAT AFTER DEDUCTING THE MAINTAINANCE AND PROPERTY
TAX OF RS.900 IS INR 8100/- PER MONTH WHICH IS LEASED TO A COMPANY JP MORGANS INDIA
PRIVATE LIMITED FOR 99 MONTHS.

RENT(AS WELL AS PROPERTY TAX AND MAINTAINENCE) APPRECIATES @ 10% EVERY 11 MONTHS

YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2010 8100 8100 8100 8100 8100 8100 8100 8100 8100 8100 8100 8910
2011 8910 8910 8910 8910 8910 8910 8910 8910 8910 8910 9800 9800
2012 9800 9800 9800 9800 9800 9800 9800 9800 9800 10780 10780 10780
2013 10780 10780 10780 10780 10780 10780 10780 10780 11860 11860 11860 11860
2014 11860 11860 11860 11860 11860 11860 11860 13046 13046 13046 13046 13046
2015 13046 13046 13046 13046 13046 13046 14350 14350 14350 14350 14350 14350
2016 14350 14350 14350 14350 14350 15785 15785 15785 15785 15785 15785 15785
2017 15785 15785 15785 15785 17370 17370 17370 17370 17370 17370 17370 17370
2018 17370 17370 17370 - - - - - - - - -

THE FOLLOWING IS A BREAK-UP OF THE YEARLY RECEIPTS.

YEAR INVESTMENTS INTEREST TOTAL AMOUNT

CALCULATIONS @ 9%
2010 81,810 7,363 89,173
2011 108,700 17,809 2,15,682
2012 120,540 30,260 3,66,482
2013 1,33,680 45,015 5,45,177
2014 1,48,250 62,408 7,55,835
2015 1,64,376 82,819 10,03,030
2016 1,82,245 1,06,675 12,91,950

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SOC, NMIMS University
2017 1,92,100 1,33,565 16,17,615
2018 52,110 1,50,275 18,20,000

3) THE REMAINING CAPITAL WILL BE FUNDED BY YOU. WE PROPOSE THAT YOUR 8% ICICI
MUTUAL FUND WHICH WILL MATURE IN 2020, PART OF IT BE USED TO FUND YOUR
ACQUISITION.

WE HAVE ALSO ANALYZED MRS. TEHRAN’S COACHING BUSINESS. SHE PLANS TO TEACH
AROUND 80 STUDENTS ACROSS 4 BATCHES. WE NOW PROVIDE YOU THE BREAKDOWN OF
INCOME.

VARIABLE MONTHLY EXPENSES

DETAILS COST × UNITS TOTAL AMOUNT

PROPERTY TAX AND RS. 2 PER SQ FEET INR 2,000

MAINTAINANCE
ELECTRICITY - INR 5,000
STATIONERY - INR 5,000
TELEPHONE AND MOBILE - INR 2,000
TEACHERS 5000 × 3 INR 15,000
TRAVELLING ALLOWANCES INR 2,000
TOTAL INR 31,000

MONTHLY REVENUE SHEET

1. NO OF CLASSES 2 CLASS
2. NO OF STUDENTS IN ONE CLASS 20 STUDENTS
3. NO OF HOUR EACH SESSION 3 HOURS
4. NO OF BATCHES IN SHIFTS 2
5. TOTAL NO OF STUDENTS ADMITTED [ 1 × 2 × 4 ] 80 STUDENTS

1. FEES PER STUDENT PER YEAR INR 15,000

2. NO OF STUDENTS ADMITTED IN CLASS 80 STUDENTS
3. TOTAL REVENUES GENERATED YEARLY INR 12,00,000

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PROFIT STATEMENT

ANNUAL REVENUES INR 12,00,000

OPERATIONAL COSTS (CALCULATED: INR 31,000 INR (3,72,000)
p.m.)
GROSS PROFIT INR 8,28,000
PROVISION FOR CONTINGENCY EXPENSES INR (28,000)
NET PROFIT BEFORE TAX INR 8,00,000
INCOME TAX PAID INR (2,47,200)
NET INCOME INR 5,53,000

NOTE: SERVICE TAX @ 10% + 3% EDUCATION CESS ON SERVICE TAX SHALL BE COLLECTED
FROM THE STUDENTS OVER AND ABOVE THE COACHING FEES WHICH SHALL DIRECTLY BE
TRANSFERRED TO THE SERVICE TAX ACCOUNT WITH GOVERNMENT OF INDIA.

TOTAL AMOUNT OF SERVICE TAX TO BE PAID TO GOVERNMENT OF INDIA @ 10.30% ON

TOTAL ANNUAL REVENUES OF INR 12,00,000/- IS INR 1,23,600/-

INCOME ABOVE 5 LAKHS ATTRACTS An INCOME TAX OF 30%

FINAL PROFIT OF INR 8,00,00 SHALL BEAR A TAX OF INR 2,40,000 TO BE PAYABLE

SURCHARGE @ 10% ON INCOME TAX IF INCOME CROSSES MARK OF INR 10 LAKHS [NOT
APPLICABLE]

EDUCATION CESS OF 3% ON INR 2,40,000/- IS INR 7,200/-

TOTAL TAX PAYABLE IS 2,47,200/- AGAINST A NET PROFIT OF INR 8,00,000/-

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SOC, NMIMS University
 PLAN 2 - Grand Celebration of your
daughter’s wedding around 2030
Achieving Goal no. 2
NOW THAT WE HAVE THE PLANNING FOR THE FIRST GOAL OF MRS. SANGEETA TEHLAN’S
COACHING CLASSES COMPLETE, LET US SHIFT OUR FOCUS TO GOAL NO.2 – PROVISION FOR MS.
DIMPLE TEHRAN’S WEDDING PLAN.

THE MARRIAGE PLAN – THE EXPECTED EXPENSES

A. RING CEREMONY
Premises Rent Rs. 40,000.00
No. of expected guests 300
Food Cost per plate 200
Total food cos (no. of guests X cost per plate) Rs. 60,000.00
Hotel accommodation cost
= (Expected no. of rooms to be booked * cost of room per day
or function) 10 X 2,000
and Cost of room per day or function = 2,000 , No of rooms to
be booked - 10 Rs. 20,000.00
Decoration Rs. 20,000.00
Obligatory expenses (gifts to be given in cash and kind, etc) Rs. 10,000.00
Other expenses (bridal clothes, other family member’s
clothes, jewelery, manpower,music, etc)
Rs. 80,000.00
TOTAL Rs. 2,30,000.00

B. Mehndi Ceremony
Premises Rent Nil (home)
No. of expected guests 400
Food Cost per plate 150
Total food cos (no. of guests X cost per plate) Rs. 60,000.00
Hotel accommodation cost
= (Expected no. of rooms to be booked * cost of room per day
or function) 10 * 2000 Rs. 20,000.00
and Cost of room per day or function = 2,000 , No of rooms to
be booked - 10
Decoration Rs. 20,000.00
Obligatory expenses (gifts to be given in cash and kind, etc) Rs. 20,000.00
Other expenses (bridal clothes, other family member’s
clothes, jewelery, manpower,music, etc)
Rs. 80,000.00

TOTAL Rs. 2,00,000.00

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C. Sangeet Function
Premises Rent Rs. 60,000
No. of expected guests 600
Food Cost per plate Rs. 250
Total food cos (no. of guests X cost per plate) Rs. 1,50,000
Hotel accommodation cost
= (Expected no. of rooms to be booked * cost of room per day
or function) 20 X 2,000 Rs. 40,000
and Cost of room per day or function = 2,000 , No of rooms to
be booked - 10
Decoration Rs. 50,000
Obligatory expenses (gifts to be given in cash and kind, etc) Rs. 75,000
Other expenses (bridal clothes, other family member’s
clothes, jewelery, manpower,music, etc)
Rs. 1,20,000
TOTAL Rs. 4,95,000

D. Marriage Ceremony
Premises Rent 1,00,000
No. of expected guests 1,500
Food Cost per plate 350
Total food cos (no. of guests X cost per plate) 5,25,000
Hotel accommodation cost
= (Expected no. of rooms to be booked * cost of room per day
or function)
and Cost of room per day or function = 2,000 , No of rooms to
be booked - 10 50 X 2,000 1,00,000
Decoration 2,00,000
Obligatory expenses (gifts to be given in cash and kind, etc) 2,00,000
Other expenses (bridal clothes, other family member’s
clothes, jewelery, manpower,music, etc) 6,00,000
TOTAL 17,25,000

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SOC, NMIMS University
Total cost of all the functions

A. Ring Ceremony – Rs. 2,30,000

B. Mehndi Ceremony – Rs. 2,00,000
C. Sangeet Function – Rs. 4,95,000
D. Marriage – Rs. 17,25,000

Total - Rs. 26,50,000/-

+ 15% provision for miscellaneous

expenses (car rental, tips, etc) = Rs. 3,59,250/-

Total marriage cost

(Rs. 23,95,000 + Rs. 3,59,250 ) = Rs. 30,09,250/-

Since your daughter is now aged 2 years, so considering the

inflation @5% per annum, after 20 years, the future value
will be,

Rs. 79,84,436.00

PROVISION FOR GOAL NO. 2

Provision Installment Expected Expected Return Usage of

Rate of Funds
Return
ICICI mutual Fund 8334 p.m. CAGR – 8% 27,15,211 Rs. 7,00,000 to
till 2020 (already be set aside
existing) for
investment,
the rest to be
re-invested
HDFC GROWTH 20,15,211 CAGR – 15% 81,52,652 Daughter’s
FUND 2020 - 2030 (lump-sum) marriage
UTILISING YOUR EXISTING MUTUAL FUND WITH 8% ICICI MUTUAL FUND, YOU CAN USE
PART OF THE FUNDS AS CAPITAL FOR MRS. SANGEETA’S TUITON BUSINESS. THE REST OF
THE AMOUNT CAN BE REINVESTED INTO THE HDFC GROWTH FUND, A HIGHLY VALUED
MUTUAL FUND.

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SOC, NMIMS University
HAVING TAKEN INTO ACCOUNT YOUR GOALS, WE NOW WOULD LIKE TO ADVISE YOU ON
HOW TO ALLOCATE YOUR REMAINING SAVINGS. BELOW IS THE ALLOCATION OF YOUR
MONTHLY SAVINGS.

Diversification of Savings
Amount/month Expected Expected Purpose
return future amount
1) Bank 8,100 CAGR – 1820000 Opening of
recurring 9.4% coaching
deposit (99 classes
months)
2) SBI Contra 10,000 CAGR – 1,59,14,151 Children’s
Equity Fund 15.43% Education &
(20 years further
monthly savings
investment,
return on
equity
market risk)
3) HDFC Long 10,000 CAGR – 27,38,820 Retirement
term equity 14.92%
fund(wife) –
10 years, to
be reinvested
on expiration
4) Balance 2,551 Negligible Meeting
transferred daily
to savings expense
account

THE FIRST INVESTMENT, OF RECURRING DEPOSIT, HAS ALREADY BEEN EXPLAINED BEFORE
W.R.T. GOAL PLAN 1.

WE SUGGEST THE MATURITY AMOUNT FROM THE SBI CONTRA FUND CAN BE UTILISED
FOR YOUR CHILDREN’S EDUCATION(GRADUATION/ POST-GRADUATION)

THE HDFC LONG TERM FUND IS SOLELY SAVINGS FOR YOUR RETIREMENT PURPOSES.

AND WE HAVE SET ASIDE SOME FUNDS TO YOUR SAVINGS BANK ACCOUNT, FOR THE
CONVENIENCE OF DAILY EXPENSES AND CONTINGENCIES .

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Retirement Plan
THE FOLLOWING ARE THE EXPECTED MONTHLY RETIREMENT EXPENSES (AT PRESENT DAY VALUES)-

DETAILS AMOUNT NO OF TIMES TOTAL MONTHLY

EXPENSE
AUTOMOBILE PETROL 1000 2 2000
AUTO MAINTAINANCE 1000 1 1000
HEALTH COSTS 5000 1 5000
MONTHLY GROSSERY 2500 1 2500
ELECTRICITY 2500 1 2500
TELEPHONE BILLS
PERSONAL HP: 1300 1 2000
WIFE HP: 700 1
INTERNET CHARGES 300 1 300
REFRESHMENTS 30 30 900
SERVANT 1500 1 1500
SOCIETY 2250 1 2250
MAINTAINANCE
DINNER ON 1000 2 2000
WEEKENDS
TRAVELLING 500 1 500
TOTAL 22450
THEREFORE THE FUTURE INFLATED VALUE OF THE EXPENSES AFTER 30 YEARS @ 5% INFLATION ARE
RS.92407 PER MONTH

Amount receivable on retirement

Source of Funds Amount expected
PPF RS. 36,07,375

EXPECTED INCOME TO EQUATE IT WITH THE AVERAGE EXPENSES ASSUMED AFTER RETIREMENT

SOURCE OF INCOME YEARLY INCOME MONTHLY

EXPECTED CALCULATIONS
COACHING CLASSES INR 5,53,000/- INR 46,000/-

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SOC, NMIMS University
YOUR SOURCE OF FUTURE EXPENSES AFTER RETIREMENT WILL BE FROM THE INCOME EARNED
FROM THE COACHING CLASSES OWNED BY MRS. SANGEETA TEHLAN AS WELL AS THE PPF FUNDS
WHICH WILL BE IN YOUR SAVINGS BANK ACCOUNT.

THE EXPENSES ASSUMED AFTER RETIREMENT IS CALCULATED ON THE BASE OF CURRENT MARKET
RUPEE VALUE BUT WILL BE IN ACCORDANCE TO MARKET FLUCTUATIONS. BUT ACCORDINGLY, IT
BEING DIRECTLY PROPORTIONAL WITH THE INCOME, THE INCOME OF AND FROM THE CLASSES WILL
TO SEE AN INCREMENT IN ITS INDEX.

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List of Required Documents
I. Copy of Personal Profile
II. Copy of Family Profile
III. Copy of Medical Certificates of all Family Members
IV. Copy of Title Deeds of Assets owned
V. Copy of Documents of Liabilities i.e. Car Loan
VI. Copy of Documents of Investments i.e. Mutual Fund with ICICI Bank
VII. Copy of Document of Market Risk Investment with HDFC Bank
VIII. Copy of Insurance Deeds from Max New York Life
IX. Copy of Bank Statements for Monthly Expenses which includes Credit Card
Statement, Bank Saving Account Statement, Job Account Statement
X. Copy of proof of additional passive Income
XI. Copy of Documents from Office for all major Reimbursements

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List of Associated Planners
Akash Singhal – 131
Anirudh Shetty – 129
Prasuk Jain – 154
Aalap Parikh – 144
Rohan Mendon – 123
Nikunj Agrawal – 106
Date Prepared: 16th January 2010

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Financial Notes

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