Disclaimer:The following Financial Plan/Statement of Advice and
Suitability Letter is only a Sample and does not
represent any real case. The facts and figures are only
assumptions and may not necessarily match for the
calculations.
This document only depicts the format in which the
Financial Plan report will be presented to the client.
Each plan will be different and unique based on the
personal data provided by the clients, his personal
financial circumstances, financial objectives,
financial resources, risk profile, etc.
This document is not exhaustive and the actual
Financial Planning report format/contents may differ
than the one presented here as a Sample.
This is only for educational and informational
purpose and strictly should not be construed as a
financial advice under any circumstances.
Amigos Finserv
Financial Plan
Statement of Advice
Prepared for: Mr Anand Kumar
Prepared by
Atul Mishra
CFP CM ,CWM,MFP,CII(Award),Dip.CISI
SEBI Registered Investment Adviser
(Registration no. INA000004245)
21-Aug-2016
Amigos Finserv
C-23, Godavari Bldg.,1st Carter Road, Borivali (East), Mumbai 400066,India
199-D, Gr. Floor, Raghuleela Mall, Nr. Poisar Bus Depot, Off S.V. Road, Kandivali (West), Mumbai – 400067, India
Tel: 28075620, Mobile: +91 9820798844, E-mail: [email protected], Website: www.amigosfinserv.com
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Table of Contents
Table Of Contents ........................................................................................................................................3
Introduction .................................................................................................................................................5
Executive Summary .................................................................................................................................... 6
Personal Details ........................................................................................................................................... 7
Risk Profile .................................................................................................................................................. 8
Where You are Now ................................................................................................................................... 10
Cash Flow Management ............................................................................................................................. 14
Your Goals..................................................................................................................................................19
Basic Assumptions .................................................................................................................................................................. 19
Your Current Goals .................................................................................................................................................................. 19
Your Goals.................................................................................................................................................. 21
Basic Assumptions .................................................................................................................................................................. 21
Your Current Goals .................................................................................................................................................................. 21
Current Financial Resources .................................................................................................................................................... 23
Goal Analysis........................................................................................................................................................................... 24
Goal Analysis for Emergency Fund (Contingency Fund) ............................................................................ 26
Current Goal Assumptions ....................................................................................................................................................... 26
Advice ..................................................................................................................................................................................... 28
Action Plan.............................................................................................................................................................................. 28
Goal Analysis for Education (Rohan - Professional Studies (Abroad) ......................................................... 29
Current Goal Assumptions ....................................................................................................................................................... 29
Advice ..................................................................................................................................................................................... 31
Action Plan.............................................................................................................................................................................. 31
Goal Analysis for Marriage (Rohan) ............................................................................................................ 32
Current Goal Assumptions ....................................................................................................................................................... 32
Advice ..................................................................................................................................................................................... 34
Action Plan.............................................................................................................................................................................. 34
Goal Analysis for Retirement ...................................................................................................................... 35
Current Goal Assumptions ....................................................................................................................................................... 35
Advice ..................................................................................................................................................................................... 37
Action Plan.............................................................................................................................................................................. 37
Goal Cost Analysis for Retirement ..............................................................................................................38
Current Goal Assumptions ....................................................................................................................................................... 38
Reduce the Cost of a Goal........................................................................................................................................................ 39
Affect on Other Goals.............................................................................................................................................................. 40
Investment Asset Allocation ...................................................................................................................... 42
Asset Allocation Notes ............................................................................................................................................................ 44
Investment Plan ........................................................................................................................................ 46
Current Situation ..................................................................................................................................................................... 46
Investment Objectives............................................................................................................................................................. 48
Asset Allocation - Moderately High ......................................................................................................................................... 49
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Portfolio Recommendations .................................................................................................................................................... 51
Important Points About a Diversified Portfolio ........................................................................................................................ 55
Asset Allocation ...................................................................................................................................................................... 55
Investment Markets ................................................................................................................................................................ 56
Cash Flow................................................................................................................................................................................ 56
Regular Savings Plan .................................................................................................................................. 57
Protecting Your Resources .........................................................................................................................58
Loss of Income .......................................................................................................................................... 60
Cash flow before ..................................................................................................................................................................... 60
Cash flow after loss of Anand's Net Salary Income (Salary) ...................................................................................................... 61
Life Insurance Analysis for Anand .............................................................................................................. 62
Current Life Insurance Situation .............................................................................................................................................. 62
Advice ..................................................................................................................................................................................... 65
Action Plan.............................................................................................................................................................................. 65
Conclusion................................................................................................................................................. 66
Next Steps.................................................................................................................................................. 67
Appendix: Glossary of Terms used in Financial Planning ............................................................................ 67
Appendix: Disclaimer / Disclosure Statement ............................................................................................. 70
Appendix: Annual Cash Flow Statement .................................................................................................... 71
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Amigos Finserv
Introduction
We are pleased to submit this financial plan for your records. We urge you to keep this safely and privately
to avoid any leakage of your confidential financial information.
A full financial plan would cover Cash Management, Risk Management, Retirement Planning, Investment
Planning and Estate and Tax Planning. The sections covered in this plan are outlined on the contents page.
The following plan will document your Goals and Resources and make recommendations in line with your
Goals based on the information you have provided. The solutions adopted in this plan need to be regularly
reviewed. The projected outcomes are provisional and should be treated as indicative rather than as
guaranteed. It is vital that the plan is reviewed regularly and the assumptions tested against actual
outcomes. Life is dynamic and your financial plan must reflect changes in your personal situation!
We urge you to study these recommendations carefully and we will respond to any questions you may
have. You may need to make important decisions on the urgency and timing of the issues dealt within this
plan. The effort you have taken to reach this point is well worth the effort to secure your financial future.
Please see the Appendices for details of the underlying assumptions related to your financial future used in
building your plan, our Disclosures / Disclaimers and a Glossary to assist you with the terminology used
herein.
We trust the experience will be rewarding for a sound financial future and help you reach your goals. We
endeavour to respect your privacy and maintain client confidentiality.
Atul Mishra
Amigos Finserv
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Executive Summary
Risk Profile
Your risk profile has been assessed as Moderately High based on Morningstar Risk Profiling
Questionnnaire and its score. The most common risk profile is Balanced. This suggests that you will be
comfortable with accepting a small measure of risk in the arrangements for your finances where justified.
In particular you will be prepared to accept some volatility in investment returns in order to achieve good
long term returns. Currently, a Growth investment portfolio could be expected to receive a return, after tax
and fees, of around 12.0% per annum. For more information see Your Risk Personality on page 8
Statement of Position
Currently, your total assets are Rs. 1,35,09,925 and you have liabilities of Rs. 29,94,821. Subtracting your
liabilities from your total assets gives your net worth of Rs. 1,05,15,104. Your major assets are Anand's
Residential Property (Primary Residential flat), and Anand's Mutual Fund Savings/SIP (Mutual Funds Equity). Your major liabilities are Anand's Housing Loan. The ratio of debt to assets is 0.22; which is
attractively low. For more information see Where You are Now on page 10.
Cash Flow
Your cash flow analysis shows a cash flow surplus. To apply this surplus to your goals you should save it,
starting with Rs. 2,66,520 this year. For more information see Cash Flow Management on page 14.
Protecting Your Resources
Your key resources are your Anand's Net Salary Income (Salary), and Anand's Residential Property
(Primary Residential flat). Using the checklist provided, ensure that your resources are protected from
unforeseeable events so that they are available to meet your goals. For more information see Protecting
Your Resources on page 58.
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Personal Details
Your Information
This plan is based on the following information that you have provided:
Name: Anand Kumar Age: 49 (Date of Birth: 05-Sep-1966).
Anand has a current annual income of Rs. 15,60,000.
Name: Seema Age: 50 (Date of Birth: 21-Apr-1966).
Details of Seema's income have not been entered.
You have savings of Rs. 30,59,925 and are currently saving Rs. 2,64,294 per year.
You own your own home worth Rs. 1,00,00,000.
You have a car worth Rs. 4,50,000.
You have a car loan of Rs. 3,26,000 and your annual repayments are Rs. 1,40,384..
You have a housing loan of Rs. 26,68,821 and your annual repayments are Rs. 4,02,190..
You have not mentioned any income for Seema, hence the income data for her has not been entered.
Assumptions
This plan uses the following basic assumptions when calculating the projections:
Anand's preferred retirement age is 60 with a life expectancy of 85.
Seema's life expectancy is 85.
Investments receive a future return consistent with the historical performance of a Moderately
High risk profile (12.00% net of fees and taxes).
General Inflation of 8.00%.
Inflation for Rohan's overseas education has been taken as 4% . Foreign exchange fluctuation has NOT
been considered.
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Risk Profile
While the focus of your plan is your goals, it is important that the planned course of action remains within
your risk comfort zone. Financial planning is about empowering you to achieve your goals but it should
never be at the cost of having you constantly worried about the level of risk you are taking. For this reason
we assess your risk personality and use this assessment to guide our recommendations for you.
Your risk personality covers a range of financial matters, including:

Making Financial Decisions

Financial Disappointments

Financial Past

Investment

Borrowing

Government Benefits and Tax Advantages
Your Risk Profile
We have assessed your risk profile as Moderately High which means you will be comfortable with taking
moderate risks in the arrangements for your finances provided the returns are appropriate.
Your Result
The amount of risk you are comfortable being exposed to has been rated as Moderately High which
means you will be comfortable with taking moderate risks in the arrangements for your finances provided
the returns are appropriate.
What does this mean for you?
It means you will usually want to invest some of your funds in investments that are likely to achieve higher
than average returns. These investments will almost always have a higher level of risk. So the effect is that
your money will be exposed to some value fluctuations in the short term but are likely to perform better
over the longer term than if you took less risk.
Limitations
Your risk score is only an indicator of your risk tolerance, it cannot completely describe how you will or
should feel about any particular financial matter. Your choice on the level of risk to take in your financial
matters should also take into account:

Your timeframes - how much time do you have until your bigger goals? Longer time frames allow
you to take greater levels of risk because the fluctuations even out over time.

Life Stage - various seasons in life have an impact on the level of risk that is appropriate. When
there are others dependant on you, the level of risk taken will need to be lower.
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
Partner’s risk profile - where a partner is involved the level of risk should reflect both partners risk
tolerances rather than just one.
Your risk personality assessment should be viewed as information for you to include in your decisions on
financial matters, not as a constraint on what you should do.
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Where You are Now
A Statement of Position, or Net Worth Statement, defines what you have after your debts have been
subtracted from your assets. It is a measure of your personal economic position. This analysis is often used
by third parties to assess your credit worthiness. Used over time it is a valuable measure of how successful
you are in securing your financial health, and increasing wealth overtime.
Statement of Position
Your Statement of Position as at 20-Aug-2016 is:
Investments
Anand's Mutual Fund Savings/SIP (Mutual Funds - Equity)
Current Valuation
Rs. 14,97,000
Anand's Cash in Hand (Bank)
Rs. 2,75,000
Anand's Employee Provident Scheme (EPF)
Rs. 7,23,925
Anand's Other (Gratuity)
Rs. 2,75,000
Anand's Life Insurance/ULIP (LIC-Jeevan Saral)
Rs. 1,20,000
Anand's Life Insurance/ULIP (LIC-Jeevan Mitra)
Rs. 94,000
Anand's Life Insurance/ULIP (LIC-Endowment)
Rs. 46,000
Seema's Life Insurance/ULIP (LIC-Moneyback)
Rs. 29,000
Total Investments:
Rs. 30,59,925
Other Assets
Current Valuation
Anand's Residential Property (Primary Residential flat)
Rs. 1,00,00,000
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Anand's Car / Two Wheeler (Car)
Rs. 4,50,000
Total Other Assets:
Rs. 1,04,50,000
Liabilities
Current Valuation
Anand's Car Loan
Rs. 3,26,000
Anand's Housing Loan
Rs. 26,68,821
Total Liabilities:
Rs. 29,94,821
Total Assets:
Rs. 1,35,09,925
Net Worth:
Rs. 1,05,15,104
Net Worth
Currently, your total assets are Rs. 1,35,09,925 and you have liabilities of Rs. 29,94,821. Subtracting your
liabilities from your total assets gives your net worth of Rs. 1,05,15,104.
Your ratio of debt to assets is 0.22; which is attractively low.
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Technically, your Net Worth is Rs. 1,05,15,104 and debt to assets ratio is o.22. However, excluding the
value of your primary residential flat and car, as they are not income generating assets, your Net
Worth stands at Rs. 65,104 and debt to assets ratio at 0.98
Though with a home loan this ratio can go up considerably, a lower debt to assets ratio is desirable and
ideally should not exceed 0.75.
What You Own
Your major assets are Anand's Residential Property (Primary Residential flat), and Anand's Mutual Fund
Savings/SIP (Mutual Funds - Equity).
'Others' include remaining insurance policies.
What You Owe
Your major liabilities are Anand's Housing Loan.
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The home loan comprises the major portion of your liability.
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Cash Flow Management
Monitoring your Cash Flow is a dynamic way of taking your financial pulse
For most people, the ability to earn is their greatest asset and its careful management should be a high
priority. This section details how your cash flow surplus was calculated. We examine your current income
and expenditure and then project forward based on the changes to incomes and expenditures likely over
time.
Income and Expenditure Statement for Current Year
In this table, your outgoings are subtracted from your after tax incomes. Outgoings are divided into Fixed
Expenses, Discretionary Expenses, Committed Savings and Repayments. From this analysis we can
determine your Net Cash Flow.
Incomes
Anand's Net Salary Income (Salary)
Rs. 15,60,000 p.a.
Total Income:
Rs. 15,60,000 p.a.
Fixed Expenses
Household Expenses
Mediclaim & PA premium
Total Fixed Expenses:
Rs. 5,40,000 p.a.
Rs. 24,228 p.a.
Rs. 5,64,228 p.a.
Committed Savings
Regular Savings (SIP)
into Anand's Mutual Fund Savings/SIP (Mutual Funds - Equity)
Regular Savings (LIC-Jeevan Saral)
into Anand's Life Insurance/ULIP (LIC-Jeevan Saral)
Financial Plan
Rs. 1,62,000 p.a.
Rs. 12,130 p.a.
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Regular Savings (LIC-Jeevan Mitra)
into Anand's Life Insurance/ULIP (LIC-Jeevan Mitra)
Rs. 7,120 p.a.
Regular Savings (LIC-Endowment)
into Anand's Life Insurance/ULIP (LIC-Endowment)
Rs. 2,732 p.a.
Regular Savings (LIC-Moneyback)
into Seema's Life Insurance/ULIP (LIC-Moneyback)
Rs. 2,696 p.a.
Total Committed Savings:
Rs. 1,86,678 p.a.
Repayments
Regular Repayment
into Anand's Car Loan
Rs. 1,40,384 p.a.
Regular Repayment
into Anand's Housing Loan
Rs. 4,02,190 p.a.
Total Repayments:
Rs. 5,42,574 p.a.
Total Income:
Rs. 15,60,000 p.a.
Total Expenses:
Rs. 12,93,480 p.a.
Net Cash Flow:
Rs. 2,66,520 p.a.
The committed savings to income ratio is 0.12 which is quite low. You are advised to increase funding
towards investments to enhance the probability of achieving your financial goals.
An ideal savings to income ratio considered is between 0.25 to 0.5
The debt servicing to income ratio is 0.35 which is within the acceptable limits.
An ideal debt servicing to income ratio is less than 0.45
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Expenses
Cash Flow Projections
This section maps out the inflows and outflows of cash over your lifetime. The changes in your incomes
and expenses over time are shown and the net cash flow at each stage of your life is calculated.
The following graph summarises a lot of information and is worth careful study. Your incomes are shown
as positive amounts (above the line) and your outgoings (expenses, debt repayments and committed
savings) are shown as negative amounts (below the line).
The Net Cash Flow, your income less outgoings is shown by the line on the graph. Prior to retirement, you
should aim to have a positive net cash flow - you make more than you spend - as this will allow you to
apply that surplus towards your goals. After retirement you are likely to have a negative cash flow
indicating that you will need to use capital to fund your retirement lifestyle.
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Details of the data used to create the above graph are in the table below so use this to enhance your
understanding of the graph.
Incomes
Amount
Anand's Net Salary Income (Salary)
Rs. 15,60,000 p.a. (Rs. 1,30,000
Monthly)
2016 to 2026
Expenses
Amount
Current Living Expenses
Rs. 5,64,228 p.a.
Retirement Living Expenses
Rs. 3,60,000 p.a.
Committed Savings
Regular Savings (SIP)
into Anand's Mutual Fund Savings/SIP (Mutual Funds Equity)
Regular Savings (LIC-Jeevan Saral)
into Anand's Life Insurance/ULIP (LIC-Jeevan Saral)
Financial Plan
2016 to 2025
2026 to 2051
Amount
Rs. 1,62,000 p.a.
2016 to 2026
Rs. 12,130 p.a.
2016 to 2028
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Regular Savings (LIC-Jeevan Mitra)
into Anand's Life Insurance/ULIP (LIC-Jeevan Mitra)
Rs. 7,120 p.a.
Regular Savings (LIC-Endowment)
into Anand's Life Insurance/ULIP (LIC-Endowment)
Rs. 2,732 p.a.
Regular Savings (LIC-Moneyback)
into Seema's Life Insurance/ULIP (LIC-Moneyback)
Rs. 2,696 p.a.
Repayments
Amount
Regular Repayment
into Anand's Car Loan
Rs. 11,699 Monthly
Regular Repayment
into Anand's Housing Loan
Rs. 33,516 Monthly
Financial Plan
2016 to 2024
2016 to 2025
2016 to 2018
2016 to 2019
2016 to 2026
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Your Goals
As quoted by Harvey MacKay,
“A dream is just a dream. A goal is a dream with a plan and a deadline.”
If you don’t set out to do what you dream of, how can it be realized and achieved?
A review of your Goals enables you clarify where you want to get to and why. It will assist you in
determining if your Goals are achievable and what you have to do to make them happen. Having clear
achievable Goals is motivational.
Obstacles are those frightful things you see when you take your eyes off your goal. ~
Henry Ford
Goal based planning works by using your financial resources, such as your Investment Portfolio, and
aligning them on a priority basis against your chosen goals.
Basic Assumptions
This plan uses the following basic assumption when doing the analysis: 
Anand's preferred retirement age is 60 with a life expectancy of 85.

Seema's life expectancy is 85.
Your Current Goals
Your current goals are shown in the table below.
Goal Name
1
Emergency Fund
(Contingency Fund)
Corpus Required
(Today)
Corpus Required
(At start of goal)
Amount Required
During Goal Period
Rs. 5,65,000
Rs. 5,65,000
Rs. 5,65,000
Rs. 82,89,046
Rs. 95,53,389
Rs. 5,65,000 in 2016 at 6.00 % inflation.
2
Education (Rohan Professional Studies
(Abroad)
Rs. 62,27,683
Rs. 20,00,000 every year from when Rohan is 18 (2019) until when Rohan is 21 (2022) at 4.00 %
inflation.
3
Marriage (Rohan)
Financial Plan
Rs. 3,35,145
Rs. 11,65,819
Rs. 11,65,819
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Rs. 5,00,000 when Rohan is 26 (2027) at 8.00 % inflation.
4
Retirement
Rs. 99,88,220
Rs. 3,10,21,894
Rs. 10,21,46,566
Provide for retirement living expenses
Total
Rs. 1,71,16,048
The following chart illustrations the cost of your goals over time. The cost of your goals will increase over
time due to inflation.
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Your Goals
Goals are dreams with deadlines. ~ Diana Scharf Hunt
A review of your Goals enables you clarify where you want to get to and why. It will assist you in
determining if your Goals are achievable and what you have to do to make them happen. Having clear
achievable Goals is motivational.
Obstacles are those frightful things you see when you take your eyes off your goal. ~
Henry Ford
Goal based planning works by using your financial resources, such as your Investment Portfolio, and
aligning them on a priority basis against your chosen goals.
Basic Assumptions
This plan uses the following basic assumption when doing the analysis: 
Anand's preferred retirement age is 60 with a life expectancy of 85.

Seema's life expectancy is 85.
Your Current Goals
Your current goals are shown in the table below along with which financial resource is available to fund the
goal.
Priority Goal Name
Goal Description
Amount
Needed
Today
Available Resources
1
Emergency Fund
(Contingency Fund)
Rs. 5,65,000 in 2016 at 6.00 %
inflation.
2
Education (Rohan Professional Studies
(Abroad)
Rs. 20,00,000 every year from
Rs.
when Rohan is 18 (2019) until when 62,27,683
Rohan is 21 (2022) at 4.00 %
inflation.
3
Marriage (Rohan)
Rs. 5,00,000 when Rohan is 26
(2027) at 8.00 % inflation.
Rs. 3,35,145 Anand's Mutual Fund Savings/SIP
(Mutual Funds - Equity)
Anand's Cash in Hand (Bank)
Anand's Life Insurance/ULIP (LICJeevan Mitra)
Anand's Life Insurance/ULIP (LICEndowment)
4
Retirement
Provide for retirement living
expenses
Rs.
99,88,220
Financial Plan
Rs. 5,65,000 Anand's Mutual Fund Savings/SIP
(Mutual Funds - Equity)
Anand's Cash in Hand (Bank)
Anand's Mutual Fund Savings/SIP
(Mutual Funds - Equity)
Anand's Cash in Hand (Bank)
Anand's Mutual Fund Savings/SIP
(Mutual Funds - Equity)
Anand's Cash in Hand (Bank)
Anand's Employee Provident
Scheme (EPF)
Anand's Other (Gratuity)
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Priority Goal Name
Goal Description
Amount
Needed
Today
Available Resources
Anand's Life Insurance/ULIP (LICJeevan Saral)
Anand's Life Insurance/ULIP (LICJeevan Mitra)
Anand's Life Insurance/ULIP (LICEndowment)
The following chart illustrations the cost of your goals over time. The cost of your goals will increase over
time due to inflation.
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Current Financial Resources
Your current financial resources are shown below.
Name
Value
Available
From
Available For
Contributions
Regular Savings: Rs. 1,62,000 p.a.
from 2016 until when Anand retires
(2026)
Anand's Mutual Fund
Savings/SIP (Mutual Funds Equity)
Rs.
This year
14,97,000
All goal
needs
Anand's Cash in Hand (Bank)
Rs.
This year
2,75,000
All goal
needs
Anand's Employee Provident
Scheme (EPF)
Rs. Locked
7,23,925 until 2026
Retirement
Anand's Other (Gratuity)
Rs. Locked
2,75,000 until 2026
Retirement
Anand's Life Insurance/ULIP
(LIC-Jeevan Saral)
Rs. Locked
1,20,000 until 2029
All goal
needs
Regular Savings: Rs. 12,130 p.a. from
2016 until 2028
Regular Savings: Rs. 77,616 p.a. from
2016 until when Anand retires (2026)
Anand's Life Insurance/ULIP
(LIC-Jeevan Mitra)
Rs. 94,000
Locked
until 2025
All goal
needs
Regular Savings: Rs. 7,120 p.a. from
2016 until 2024
Anand's Life Insurance/ULIP
(LIC-Endowment)
Rs. 46,000
Locked
until 2026
All goal
needs
Regular Savings: Rs. 2,732 p.a. from
2016 until 2025
You also have these additional income sources available which can be used to fund your goals.
Income Name
Income Description
Available For
Nil
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Goal Analysis
The following analysis is based on the chosen priority order of your goals. This means that a lower priority
goal that happens next year will not take priority over a longer term higher priority goal. For example a
purchase of a car now may compromise the deposit of a house in 5 years time.
Remember the power of compounding investment returns. A small change in your portfolio today will
make a significant difference in 20 years time!
The current analysis indicates that you will not be able to fund all your goals. The following plan will
give you a range of options to help you address this issue.
Priority
Goal Name
Amount
Required
During Goal
Period
Projected
Amount
available
% Goal
Funded
Additional Deposit
Additional Regular
Savings
100%
-
-
1
Emergency Fund
(Contingency Fund)
Rs. 5,65,000
Rs. 5,65,000
2
Education (Rohan Professional Studies
(Abroad)
Rs. 95,53,389
Rs. 29,82,433
3
Marriage (Rohan)
Rs. 11,65,819
Rs. 11,65,819
100%
4
Retirement
Rs.
10,21,46,566
Rs. 57,01,207
Deposit Rs.
5.58% 84,12,080 this
year
Financial Plan
Deposit Rs.
31.22% 40,66,244 this
year
Save Rs. 7,59,299
annually until 2022
-
-
Save Rs. 13,29,290
annually until 2025
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Goal Analysis for Emergency Fund (Contingency Fund)
You have indicated that the Emergency Fund (Contingency Fund) goal is your number one priority. You
currently have sufficient assets and savings available to fund your goal.
Current Goal Assumptions
The following table details the key assumptions used.
Assumptions
Goal Objective
Rs. 5,65,000 in 2016
Number of years to reach goal
0
Corpus Required (Today)
Rs. 5,65,000
Inflation Rate
6.00 %
Total Amount Funded
Rs. 5,65,000
Short fall
Rs. 0
% Goal funded
100 %
Potential Funding Sources
Anand's Mutual Fund Savings/SIP (Mutual Funds - Equity).
Amount used Rs. 2,90,000.
Anand's Cash in Hand (Bank). Amount used Rs. 2,75,000.
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An emergency fund is important in the event of an unexpected job loss, reduction in income
or to cover unexpected expenses. Ideally you should have about 3 - 6 months of your total expenses
including your committed savings and EMIs as contingency fund. You have indicated 6 months
requirement.
This goal is 100% funded.
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Advice
You currently have sufficient assets and savings available to fund your Emergency Fund goal. It is
recommended that you: 
Review your Asset Allocation.
Action Plan
You are advised to put aside the recommended amount of about Rs. 2,90,00 (from the existing mutual
fund portfolio) in liquid and debt funds and the balance Rs. 2,75,000 cash (from your savings account) in
sweep-in or flexi-deposits.
While choosing mutual funds, please ensure to invest in DIRECT plans of the schemes as it has lower
Total Expense Ratio (TER) as compared to Regular plans, thus enhancing your overall total returns.
Financial Plan
Page 28 of 72
Amigos Finserv
Goal Analysis for Education (Rohan - Professional Studies (Abroad)
Your available savings and assets are not enough to fully fund your goal with only 31.22% of the goal
funded. This leaves a shortfall of Rs. 65,70,956.
Current Goal Assumptions
The following table details the key assumptions used.
Assumptions
Goal Objective
Rs. 20,00,000 every year from when Rohan is 18 (2019)
until when Rohan is 21 (2022)
Number of years to reach goal
3
Corpus Required (Today)
Rs. 62,27,683
Corpus Required (At start of goal)
Rs. 82,89,046
Amount required during goal period
Rs. 95,53,389
Inflation Rate
4.00 %
Total Amount Funded
Rs. 29,82,433
Short fall
Rs. 65,70,956
% Goal funded
31 %
Potential Funding Sources
Anand's Mutual Fund Savings/SIP (Mutual Funds - Equity).
Amount used Rs. 29,82,433.
Financial Plan
Page 29 of 72
Amigos Finserv
If you do not see any possibility from the options suggested herebelow, then it is highly recommended to
explore the option of Education Loan to fund this cost.
Financial Plan
Page 30 of 72
Amigos Finserv
Advice
Your current gap in meeting your goal is Rs. 65,70,956. To fully fund your goal you will need to consider
one of the following options: -
Option
Description
Option 1
Additional Lump Sum Investment: Set aside a lump sum of Rs. 40,66,244 this year.
Option 2
Additional Regular Savings: Save an additional Rs. 7,59,299 per year until the start of your goal,
starting this year.
Option 3
Delay your goal. Delaying your goal by a few years gives you more time to save and take
advantage of the effects of compounding interest.
Option 4
Decrease the cost of your goal: If you cannot delay your goal you might then consider reducing the
overall cost of your goal.
Option 5
Review your Asset Allocation: You also might be able to review your asset allocation to a higher
rate of return, however this will introduce more risk into your portfolio and should only be used for
your long-term, non essential goals where you can afford to take the increased risk.
Action Plan
Continue to invest in Equity/Equity related instruments preferably Equity mutual funds.
Since the goal in nearing and is likely to occur in 3 to 6 years time , it is recommended to go for Balanced
funds now and review it every year for asset allocation to be more towards debt as the goal approaches
it time.
While choosing mutual funds, please ensure to invest in DIRECT plans of the schemes as it has lower
Total Expense Ratio (TER) as compared to Regular plans, thus enhancing your overall total returns.
Financial Plan
Page 31 of 72
Amigos Finserv
Goal Analysis for Marriage (Rohan)
You currently have sufficient assets and savings available to fund your goal.
Current Goal Assumptions
The following table details the key assumptions used.
Anand
Seema
Retirement Age/Year
60 / 2026
-
Life Expectancy
85 / 2051
85 / 2051
Goal Objective
Rs. 5,00,000 when Rohan is 26 (2027)
Number of years to reach goal
11
Corpus Required (Today)
Rs. 3,35,145
Corpus Required (At start of goal)
Rs. 11,65,819
Inflation Rate
8.00 %
Total Amount Funded
Rs. 11,65,819
Short fall
Rs. 0
% Goal funded
100 %
Potential Funding Sources
Anand's Mutual Fund Savings/SIP (Mutual Funds - Equity).
Amount used Rs. 7,62,153.
Anand's Life Insurance/ULIP (LIC-Jeevan Mitra). Amount
used Rs. 2,75,884.
Anand's Life Insurance/ULIP (LIC-Endowment). Amount
used Rs. 1,27,782.
Financial Plan
Page 32 of 72
Amigos Finserv
With the current assumptions and funding sources, it is highly likely that the goal would be achieved
within the time frame and the projected amount would be available at the required time.
Financial Plan
Page 33 of 72
Amigos Finserv
Advice
You currently have sufficient assets and savings available to fund your Marriage goal. It is recommended
that you: 
Review your Asset Allocation.
Action Plan
It is recommended to continue investing in Equity/Equity related instruments preferably Equity mutual
funds to maximise the probability of achieving the goal.
While choosing mutual funds, please ensure to invest in DIRECT plans of the schemes as it has lower
Total Expense Ratio (TER) as compared to Regular plans, thus enhancing your overall total returns.
Financial Plan
Page 34 of 72
Amigos Finserv
Goal Analysis for Retirement
Your available savings and assets are not enough to fully fund your goal with only 5.58% of the goal
funded. This leaves a shortfall of Rs. 9,64,45,359
Current Goal Assumptions
The following table details the key assumptions used.
Anand
Seema
Retirement Age/Year
60 / 2026
-
Life Expectancy
85 / 2051
85 / 2051
Goal Objective
Provide for retirement living expenses starting at Rs.
3,60,000.00
Number of years to reach goal
10
Corpus Required (Today)
Rs. 99,88,220
Corpus Required (At start of goal)
Rs. 3,10,21,894
Amount required during goal period
Rs. 10,21,46,566
Total Amount Funded
Rs. 57,01,207
Short fall
Rs. 9,64,45,359
% Goal funded
6%
Potential Funding Sources
Anand's Mutual Fund Savings/SIP (Mutual Funds - Equity).
Amount used Rs. 1,47,529.
Anand's Employee Provident Scheme (EPF). Amount
used Rs. 34,46,802.
Anand's Other (Gratuity). Amount used Rs. 4,70,343.
Anand's Life Insurance/ULIP (LIC-Jeevan Saral). Amount
used Rs. 5,28,656.
Anand's Net Salary Income (Salary). Amount used Rs.
11,07,877.
Financial Plan
Page 35 of 72
Amigos Finserv
Financial Plan
Page 36 of 72
Amigos Finserv
Advice
Your current gap in meeting your goal is Rs. 9,64,45,359. To fully fund your goal you will need to
consider one of the following options: -
Option
Description
Option 1
Additional Lump Sum Investment: Set aside a lump sum of Rs. 84,12,080 this year.
Option 2
Additional Regular Savings: Save an additional Rs. 13,29,290 per year until the start of your goal,
starting this year.
Option 3
Delay your goal. Delaying your goal by a few years gives you more time to save and take
advantage of the effects of compounding interest.
Option 4
Decrease the cost of your goal: If you cannot delay your goal you might then consider reducing the
overall cost of your goal.
Option 5
Review your Asset Allocation: You also might be able to review your asset allocation to a higher
rate of return, however this will introduce more risk into your portfolio and should only be used for
your long-term, non essential goals where you can afford to take the increased risk.
Action Plan
It is recommended to continue investing in Equity/Equity related instruments preferably Equity mutual
funds to maximise the probability of achieving the goal.
While choosing mutual funds, please ensure to invest in DIRECT plans of the schemes as it has lower
Total Expense Ratio (TER) as compared to Regular plans, thus enhancing your overall total returns.
Financial Plan
Page 37 of 72
Amigos Finserv
Goal Cost Analysis for Retirement
Current Goal Assumptions
The following table details the key assumptions used.
Anand
Seema
Retirement Age/Year
60 / 2026
-
Life Expectancy
85 / 2051
85 / 2051
Goal Objective
Provide for retirement living expenses starting at Rs.
3,60,000.00
Number of years to reach goal
10
Corpus Required (Today)
Rs. 99,88,220
Corpus Required (At start of goal)
Rs. 3,10,21,894
Amount required during goal period
Rs. 10,21,46,566
Rate of Return
2016 - 2025 12.00 %
2026 - 2051 8.00 %
Financial Plan
Page 38 of 72
Amigos Finserv
Reduce the Cost of a Goal
Reducing the cost of a goal is the most obvious way to make the goal more achievable. For example,
reducing your Education (Rohan - Professional Studies (Abroad) goal by 90 % reduces the cost of the
goal in today's rupee terms from Rs. 62,27,683 to Rs. 6,22,768 (as measured by the amount that
would need to be invested now to achieve the goal. The following graph shows the change in the
amount needed to be saved to meet this goal.
The decision to reduce the cost of a goal should be balanced with the options of delaying the goal or
saving more.
Before
After
Goal Objective
Rs. 20,00,000 every year
from when Rohan is 18
(2019) until when Rohan is
21 (2022)
Rs. 2,00,000 every year
from 2019 until 2022
Number of years to reach goal
3
3
Amount required during goal period
Rs. 95,53,389
Rs. 9,55,340
Inflation Rate
4.00 %
4.00 %
Total Amount Funded
Rs. 29,82,433
Rs. 9,55,340
Short fall
Rs. 65,70,956
Rs. 0
Financial Plan
Page 39 of 72
Amigos Finserv
% Goal funded
31 %
100 %
Potential Funding Sources
Anand's Mutual Fund
Savings/SIP (Mutual Funds Equity). Amount used Rs.
29,82,433.
Anand's Mutual Fund
Savings/SIP (Mutual Funds Equity). Amount used Rs.
9,55,340.
Corpus Required (Today)
Rs. 62,27,683
Rs. 6,22,768
Corpus Required (At start of goal)
Rs. 82,89,046
Rs. 8,28,905
This is considering that you provide education to Rohan for professional course in India that would be
approx. Rs. 2,00,000 per year as of today's costs.
Affect on Other Goals
The following table and chart illustrate the affect that this will have on your other goals.
Current
Goal Name
Emergency Fund (Contingency Fund)
Amount
Required
During Goal
Period
Projected
Amount
available
After
% Goal
Funded
Amount
Required
During Goal
Period
Rs. 5,65,000 Rs. 5,65,000 100.00% Rs. 5,65,000
Projected
Amount
available
% Goal
Funded
Rs. 5,65,000 100.00%
Education (Rohan - Professional
Studies (Abroad)
Rs. 95,53,389
Rs.
29,82,433
Marriage (Rohan)
Rs. 11,65,819
Rs.
100.00% Rs. 11,65,819 Rs. 11,65,819 100.00%
11,65,819
Retirement
Rs.
10,21,46,566
Rs.
57,01,207
Financial Plan
31.22%
5.58%
Rs. 9,55,340
Rs.
10,21,46,566
Rs. 9,55,340 100.00%
Rs.
1,59,76,568
15.64%
Page 40 of 72
Amigos Finserv
Financial Plan
Page 41 of 72
Amigos Finserv
Investment Asset Allocation
"Do not put all your eggs into one basket"
Diversification over Asset Sectors.
This maxim can be applied to both Asset Allocation and the underlying investments used in each of your
Asset Sectors.
It is beneficial to spread your investments over a range of assets. In different years often a different asset is
the best-performing one. It is difficult to predict which Asset Sector will perform best in any given year.
Trying to pick the best Assets Sector and knowing when to move to another is speculative.
It is prudent to following a consistent plan which weights your exposure to a range of Asset Sectors in line
with your Investor Profile. Historical analysis of each Asset Sectors behaviour determines how much
exposure you should have to each sector. Your Investor Profile has been aligned with a Strategic Asset
Allocation (the long term view) and this can be modified by Tactical adjustments (what happening now). A
mixture of Asset Sectors is more likely to maximize returns and minimize risk providing with you the best
opportunity to reach your Goals. The past is not a guarantee of the future but it can be a guide.
Diversification over / within Investments.
Investment diversification within your Asset Sector compliments Asset Allocation. While a portfolio can be
diversified over a range of Asset types it can also be diversified over the range of investments types. The
intent is to reduce your exposure to the specific risk of one investment.
The results from your risk profile assessment indicate that you are a Moderately High investor:
Amigos Finserv seeks to manage your portfolio within the criteria set and will seek to give you exposure to
Funds that are performing in the top quartile in most of the instances and to adjust your assets allocation
to meet current economic conditions whilst maintaining your Investment Profile. Most investments are
medium to long-term.
Returns will always be dependent on current economic conditions and no absolute
guarantee is possible.
At each review you are confirming the strategy adopted as detailed above. If this is no
longer appropriate you should notify your advisor.
Current Asset Allocation
Financial Plan
Recommended Moderately High Asset Allocation
Page 42 of 72
Amigos Finserv
Asset Sector
Current Percentage
Recommended Percentage
Difference
Cash
0.0 %
5.0 %
5.0 %
Debt
0.0 %
10.0 %
10.0 %
Gilt
0.0 %
5.0 %
5.0 %
Property - Commercial
0.0 %
0.0 %
0.0 %
100.0 %
80.0 %
-20.0 %
0.0 %
0.0 %
0.0 %
Equity
Gold
Your overall asset allocation includes your EPF, current gratuity value, LIC endowment policies that
has default investments in assets not under our control.
You wish to continue the LIC policies and do not want any advice on that.
You have indicated that no lump sum cash is available for from your bank account for investments as
you are earmarking that for partly funding the contingency fund requirement.
The asset allocation in the recommended investment portfolio is designed based on your risk profile
excluding the above mentioned investments/assets.
Financial Plan
Page 43 of 72
Amigos Finserv
Asset Allocation Notes
Notes on Risk: There are many forms of risk that have to be taken account of. For
example:

Inflation Risk: If the inflation rate exceeds your after tax returns then you are going backwards!
You are losing your buying power. This often happens to those who just remain in cash and / or
fixed interest.

Market Risk: An investment will participate in a particular investment sector e.g. Domestic Share
Market and often, regardless of the actual holding, will experience the impact of market sentiment
both positive and negative. This can be driven by either economic factors or human behaviour and
is often a combination of both. Some funds use technical investment tools to manage and this.

Specific Risk: If funds are placed into an asset which is not diversified within itself then the
outcome will be dependent on that one placements performance. Grouped Investment Funds /
Mutual Funds seek to mitigate this by diversifying the risk.

Currency Risk: If investments are held outside of the country in which you live and in which you
intend to use these funds then differential in currencies can have significant impact on the
purchasing power of your portfolio. Hedging strategies are a way of managing this.

Default Risk: This occurs when the issuer of a security is unable to repay a loan. Research Houses
/ Rating Agencies seek to quantify the probability of this happening.

Sector Risk: There are times when one sector is depressed while the others are buoyant.
Diversification over different asset classes seeks to mitigate this.

Duration Risk: Locking into a long term investment based on current economic assumptions
when these assumptions can change. E.G Locking into a low interest rate Fixed Interest Security
for 10 years means the value of the Bond, if tradable, will go down if not held to maturity if interest
rates rise. In addition there is the missed opportunity of higher rates in the future. Few can see 10
years ahead!
A well designed portfolio will address all of these issues No Pilot tales off without a preflight check!
Financial Plan
Page 44 of 72
Amigos Finserv
Financial Plan
Page 45 of 72
Amigos Finserv
Investment Plan
Investment Suitability Report
Current Situation
You are seeking investment advice in relation to the investment of Rs. 14,97,000 which comprises fresh
cash worth Rs. 0 and existing investments worth Rs. 14,97,000.
Fund Name
Existing Allocation (INR)
% Existing Allocation
View
43.4%
Partial Sell
Equity
DSP Blackrock Top100Equity Fund-Reg.-Gr.
6,50,000
Sell those holdings that are over 12 months and hold the balance for the period of 12 months from the date
of each SIP investment and sell thereafter in the phased manner maybe quarterly or half yearly to save on
any exit loads or taxes applicable.
Better performing funds and DIRECT plans with lower Total Expense Ratio are available to suit your risk
profile and goals.
Franklin India Bluechip Fund-Reg.-Gr.
1,22,000
8.1%
Hold
Hold on for the period of 12 months from the date of each SIP investment and sell the holdings thereafter
in the phased manner maybe quarterly or half yearly to save on any exit loads or taxes applicable.
Better performing funds and DIRECT plans with lower Total Expense Ratio are available to suit your risk
profile and goals.
Reliance Growth Fund-Reg.-Gr.
3,81,000
25.5%
Partial Sell
Sell those holdings that are over 12 months and hold the balance for the period of 12 months from the date
of each SIP investment and sell thereafter in the phased manner maybe quarterly or half yearly to save on
any exit loads or taxes applicable.
Better performing funds and DIRECT plans with lower Total Expense Ratio are available to suit your risk
profile and goals.
DSP Blackrock Small & Midcap Fund-Reg.-Gr.
Financial Plan
3,01,000
20.1%
Partial Sell
Page 46 of 72
Amigos Finserv
Fund Name
Existing Allocation (INR)
% Existing Allocation
View
Sell those holdings that are over 12 months and hold the balance for the period of 12 months from the date
of each SIP investment and sell thereafter in the phased manner maybe quarterly or half yearly to save on
any exit loads or taxes applicable.
Better performing funds and DIRECT plans with lower Total Expense Ratio are available to suit your risk
profile and goals.
HDFC Equity Fund-Reg.-Gr
43,000
Total Investments
GRAND TOTAL
2.9%
14,97,000
100.0%
14,97,000
100.0%
Hold
Please note that it is preferable to allocate the entire redemption proceeds (to the new suggested
funds/schemes) that may be higher or lower than the above figures that would be based on the NAV on
the transaction day. We have considered redemption units and not the amount in certain funds.
Additional cash available now (if any), the redemption proceeds and future monthly contributions are
advised to be invested in the proportion of assets in the portfolio as per your risk profile.
Financial Plan
Page 47 of 72
Amigos Finserv
Investment Objectives
Your investment objectives have been listed as follows:
- To provide an emergency/contingency fund.
- To provide adequate fund for Rohan's Higher Education and Marriage.
- To accumulate sufficient funds at retirement age and to last till your lifetime to take care of your
lifestyle expenses.
The following statements define your investor profile as a Moderately High investor:
As an investor with Moderately High risk profile, your portfolio will be invested primarily in equities. This
approach concentrates on achieving a good overall return on your investment while avoiding the most
speculative areas of the market. Significant short-term fluctuations in value can be expected. The eventual
return for the time period over which you invest could fall within a relatively wide range of possibilities. In
most circumstances, particularly for time periods greater than five years, these returns should outperform
the returns achievable from a more conservative approach.
Amigos Finserv seeks to manage your portfolio within the criteria set and will seek to give you exposure to
Funds that are performing in the top quartile as far as possible and to adjust your assets allocation to meet
current economic conditions whilst maintaining your Investment Profile. Most investments are medium to
long-term. Fixed interest is medium to long-term. Returns will always be dependent on current economic
conditions and no absolute guarantee is possible.
At each review you are confirming the strategy adopted as detailed above. If this is no longer appropriate
you should notify your advisor.
Financial Plan
Page 48 of 72
Amigos Finserv
Asset Allocation - Moderately High
The table below shows your current investment asset allocation alongside your recommended asset
allocation.
Initial Asset Allocation
Asset Sector
Model Moderately High Asset Allocation
Low
Moderately Low
Moderate
Moderately High
High
Cash
40.00
20.00
10.00
5.00
5.00
Debt
20.00
30.00
20.00
10.00
5.00
Gilt
30.00
25.00
15.00
5.00
0.00
Property - Commercial
0.00
0.00
0.00
0.00
0.00
Equity
0.00
20.00
50.00
80.00
90.00
Gold
10.00
5.00
5.00
0.00
0.00
The table below shows how your money will be distributed across each of the different investment sectors,
based on your "Moderately High" investor profile:
Current Asset Allocation
Financial Plan
Recommended Asset Allocation
Page 49 of 72
Amigos Finserv
Asset Sector
Current
Recommended
Cash
Rs. 0
Rs. 74,850
Debt
Rs. 0
Rs. 1,49,700
Gilt
Rs. 0
Rs. 74,850
Property - Commercial
Rs. 0
Rs. 0
Rs. 14,97,000
Rs. 11,97,600
Rs. 0
Rs. 0
Equity
Gold
Financial Plan
Page 50 of 72
Amigos Finserv
Portfolio Recommendations
Fund Name
Proposed Allocation (INR)
% Proposed Allocation
Cash
Birla Sun Life Cash Plus-Direct-Growth
74,850
5.0%
74,850
5.0%
1,49,700
10.0%
1,49,700
10.0%
74,850
5.0%
74,850
5.0%
Franklin India High Growth Companies Fund-Direct-Growth
1,93,150
12.9%
HDFC Balanced Fund-Direct-Growth
1,93,150
12.9%
ICICI Prudential Value Discovery Fund-Direct-Growth
1,93,150
12.9%
Tata Balanced Fund-Direct-Growth
1,93,150
12.9%
DSP Blackrock Top100Equity Fund-Reg.-Gr.
1,33,000
8.9%
Total Investments
Debt
Franklin India Low Duration Fund-Direct-Growth
Total Investments
Gilt
IDFC Gilt Fund-STP-Direct-Growth
Total Investments
Equity
Sell those holdings that are over 12 months and hold the balance for the period of 12 months from the date
of each SIP investment and sell thereafter in the phased manner maybe quarterly or half yearly to save on
any exit loads or taxes applicable.
Better performing funds and DIRECT plans with lower Total Expense Ratio are available to suit your risk
profile and goals.
Franklin India Bluechip Fund-Reg.-Gr.
1,22,000
8.1%
Hold on for the period of 12 months from the date of each SIP investment and sell the holdings thereafter
in the phased manner maybe quarterly or half yearly to save on any exit loads or taxes applicable.
Better performing funds and DIRECT plans with lower Total Expense Ratio are available to suit your risk
Financial Plan
Page 51 of 72
Amigos Finserv
Fund Name
Proposed Allocation (INR)
% Proposed Allocation
profile and goals.
Reliance Growth Fund-Reg.-Gr.
74,000
4.9%
Sell those holdings that are over 12 months and hold the balance for the period of 12 months from the date
of each SIP investment and sell thereafter in the phased manner maybe quarterly or half yearly to save on
any exit loads or taxes applicable.
Better performing funds and DIRECT plans with lower Total Expense Ratio are available to suit your risk
profile and goals.
DSP Blackrock Small & Midcap Fund-Reg.-Gr.
53,000
3.5%
Sell those holdings that are over 12 months and hold the balance for the period of 12 months from the date
of each SIP investment and sell thereafter in the phased manner maybe quarterly or half yearly to save on
any exit loads or taxes applicable.
Better performing funds and DIRECT plans with lower Total Expense Ratio are available to suit your risk
profile and goals.
HDFC Equity Fund-Reg.-Gr
Total Investments
GRAND TOTAL
43,000
2.9%
11,97,600
80.0%
14,97,000
100%
Reports on technical research parameters of the suggested new investments are
separately attached.
Financial Plan
Page 52 of 72
Amigos Finserv
The following funds are currently earmarked for your various goals within the MUTUAL FUND
INVESTMENT PORTFOLIO.
Contingency
Birla Sun Life Cash Plus, Franklin India Low Duration Fund, IDFC Gilt-STP.
Rohan’s Education
Tata Balanced Fund, HDFC Balanced Fund.
Rohan’s Marriage & Your Retirement
ICICIPru Value Discovery Fund, Franklin India High Growth Cos. Fund, Others.
Financial Plan
Page 53 of 72
Amigos Finserv
Investment Management Service
As desired by you, Amigos Finserv will monitor your portfolio and report to you on a regular basis or as
agreed.
The benefits of this investment management service are:

Independent Research: Amigos Finserv employs independent research on the investments in your
portfolio wherever possible. This research enables us to compare the performance and security of
your investments with other options that are available. Because of this you can have confidence
that the investments in your portfolio will measure up well against their peers at any stage.

Regular Reporting: Amigos Finserv will report on your investments on a predetermined basis or as
agreed or providing 24 x 7 online access. The data uploading maybe done on fortnightly basis or
earlier if possible. Each investment portfolio report will include a current valuation of all
investments, a summary and breakdown of the performance of the investments, and a detailed
transaction report for auditing purposes. The reports aim to give you a summary of your overall
position, and to give you detailed information about each individual investment as concisely as
possible. The reports may also give an update on the current investment and economic conditions
that are relevant to your situation.

Administration: Amigos Finserv aim to take the pain out of diversification. Diversification across
several or many investments usually means many pieces of paper. Amigos Finserv may act as your
mailing address and give you a full paperwork update only at your scheduled review (unless there
is important paperwork between times.) Unnecessary promotional paperwork may be filtered out
and only things which are important for your records or information will be given to you. Taxation
paperwork may be collated and you may be given a consolidated taxation report at tax time.

No Other Transaction Costs: Because you are paying for investment management at a
predetermined rate, you will not be charged any other fees for changing investments. This means
that if changes are necessary to optimise your situation there will not be any commissions charged
on buying and selling those investments.

Implementation: Investment suggestions will be implemented only upon your consent/approval.
You may use any mode for transactions such as OFFLINE, ONLINE or through orders initiated by
us using PLATFORMS such as MF Utility, etc.
Financial Plan
Page 54 of 72
Amigos Finserv
Important Points About a Diversified Portfolio
The Benefits of a Diversified Portfolio

Each of the investment funds is diversified within itself with many underlying assets.
There is diversification over many market sectors and asset types as well as geographical
locations.

There is diversification by investments style. Each of the fund managers has a variation of an
investment approach.

Investments, where possible, are selected on qualitative and quantitative criteria.
Independent economic research has been applied to the asset allocation.

The performance of each fund is monitored to ensure competitive returns for the current
economic conditions.
Asset Allocation
Your portfolio may have some assets in Cash and Fixed Interest that will continually give a steady income
and/or easy liquidity. These may not be subjected to any fluctuations if held to maturity.
The remainder of your assets will be placed in investments and funds which may fluctuate in value. Some
of your assets may be in equities/shares which have historically given the highest returns, but will have
some volatility along the way. This means that investments in equities/shares can go down in value for
periods of time.
Amigos Finserv may use property funds that invest in property companies, or directly into properties.
Amigos Finserv may also use specialty funds that trade in the investment markets. These funds can create
wealth in both rising and falling markets, but are still subjected to some degree of volatility.
A degree of volatility is the only way to superior long-term returns.
Unit trusts and mutual funds use the investors' money to actually buy shares in companies. This means
that your investment will actually own a portion of many different companies. The risk of loss is much
reduced because the fund manager will research many different companies to buy into. Your money is
being invested in real assets.
Financial Plan
Page 55 of 72
Amigos Finserv
Investment Markets
The investment markets are cyclical in nature. This means that sometimes investments will go down in
value for a period of time. However, the markets will also recover and go on to give good returns, as they
have on every occasion in the past. It is for this reason that an investment portfolio must be viewed
periodically. If capitalism fails, so do the banks!
Maintaining a long-term strategy through short-term disruptions is the key to successful investing. This
will sometimes test your nerve!
Cash Flow
Many investments can be sold or cashed up within a matter of days or weeks (some will take longer),
however it is not always an opportune time in the markets to do this.
To ensure the most prudent investment advice, it is important that you give your advisor as much
advanced warning as possible of cash needs so that your portfolio can be managed effectively.
Cash withdrawals at short notice may compromise your returns.
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Regular Savings Plan
Saving regularly is one of the most powerful disciplines within a personal financial plan. The amount saved
needs to be increased each year by the amount of inflation.
The compounding of returns over the years is your "best friend".
Regular saving provides the opportunity to "rupee cost average" which is without doubt one of the
smartest strategies employed by investors around the world.
Unlike bank deposits or mortgage funds growth investments do not go up in a straight line but can return
several time more, overtime. Saving regularly into these investments can work to the investors' advantage
when the markets go up and when they go down!
Amigos Finserv has selected the following solution for you to dollar cost average into.
Considering your current commitment of monthly contribution of Rs. 13,500 and confirming an additional
monthly contribution of Rs. 26,500 now, making a total monthly contribution to Rs. 40,000 the break
down of monthly investments into relevant schemes are as hereunder.
Fund Name
Proposed Allocation (INR)
% Proposed Allocation
Equity
Tata Balanced Fund-Direct-Gr
8,000
20%
HDFC Balanced Fund-Direct-Gr
8,000
20%
ICICI Prudential Value Discovery Fund-Direct-Gr
8,000
20%
Franklin India High Growth Companies Fund-Direct-Gr.
8,000
20%
Birla Sun Life Cash Plus-Direct-Gr
2,000
5%
Franklin India Low Duration Fund-Direct-Gr
4,000
10%
IDFC Gilt Fund-STP-Direct-Gr
2,000
5%
40,000
100.0%
40,000
100%
Total Investments
GRAND TOTAL
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Protecting Your Resources
In addition to taking action to realise your goals, it is also important to ensure that your resources are
protected against unforeseen events. The key resources you have available are set out in the table below
with the appropriate protections listed.
Incomes
Anand's Net Salary Income
(Salary)
Investments
Amount PA
Rs. 15,60,000
Current Valuation
Anand's Mutual Fund
Savings/SIP (Mutual Funds Equity)
Rs. 14,97,000
Anand's Cash in Hand
(Bank)
Rs. 2,75,000
Anand's Employee
Provident Scheme (EPF)
Rs. 7,23,925
Anand's Other (Gratuity)
Rs. 2,75,000
Anand's Life Insurance/ULIP
(LIC-Jeevan Saral)
Rs. 1,20,000
Anand's Life Insurance/ULIP
(LIC-Jeevan Mitra)
Rs. 94,000
Anand's Life Insurance/ULIP
(LIC-Endowment)
Rs. 46,000
Seema's Life
Insurance/ULIP (LICMoneyback)
Rs. 29,000
Protection Mechanism
Emergency Fund
Income Protection Insurance
Life Insurance
Protection Mechanism
Appropriate investment advice
Diversification
Other Assets
Current Valuation
Protection Mechanism
Anand's Residential
Property (Primary
Residential flat)
Rs. 1,00,00,000
Property Insurance
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Other Assets
Anand's Car / Two Wheeler
(Car)
Liabilities
Current Valuation
Rs. 4,50,000
Current Valuation
Protection Mechanism
Car Insurance
Protection Mechanism
Anand's Car Loan
Rs. 3,26,000
Payment Protection Insurance
Anand's Housing Loan
Rs. 26,68,821
Emergency Fund
Payment Protection Insurance
Hospital expenses reimbursement Insurance (Mediclaim): One should consider having this
insurance separately even if he/she has it from the employer. This eliminates the chance of you and your
family becoming uncovered in case of job loss or job switch.
Though it is better to have family members individually covered in one policy subject to cash flow
permitting, other wise consider having a family floater policy.
You are advised to opt for a Family Floater policy of Rs. 5 lakhs for now.
Personal Accident Cover: You are advised to have a Personal Accident cover for an amount equivalent
to your Life Insurance, if possible. Make sure that you are covered for Total Permanent Disability (TPD)
and Permanent Partial Disability (PPD). This can be available as rider with Life insurance policy from life
insurance provider (check for the inbuilt Premium Waiver Benefit [PWB], if available) OR as a standalone
policy from a general insurer.
Critical Illness Cover: You are advised to have a Critical Insurance cover to mitigate financial risks that
may come if one suffers from Critical Illness such as Cancer, Stroke, Heart attack, Bypass surgery, Kidney
failure, Major organ transplant, etc. (Full list available with insurers).
This can be available as rider with Life insurance policy from life insurance provider OR as a standalone
policy from a Health insurance provider such as Star Health & Allied Insurance, Apollo Munich, Max Bupa,
etc. OR from general insurance provider.
You should use this table as a checklist to ensure that your resources are protected.
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Loss of Income
Your most valuable asset is your ability to earn. The following illustration looks at the consequence of loss
of your Anand's Net Salary Income (Salary) and the impact that will have on your cashflow.
Cash flow before
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Cash flow after loss of Anand's Net Salary Income (Salary)
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Life Insurance Analysis for Anand
Current Life Insurance Situation
The following table details the key assumptions used.
Immediate Cash Needs
Last journey expenses
Rs. 2,00,000
Rohan's education
Rs. 41,00,000
Total Immediate Cash Needs:
Rs. 43,00,000
Replacement Income
Income of Rs. 3,00,000 for 36 years
Rs. 79,76,804
Total Replacement Income:
Rs. 79,76,804
Debt Repayment
Anand's Car Loan
Rs. 3,26,000 (100%)
Anand's Housing Loan
Rs. 26,68,821 (100%)
Total Liabilities:
Rs. 29,94,821
Total Surplus Assets:
Rs. 0
Total Needs:
Rs. 1,52,71,625
Total estimated coverage required:
Rs. 1,52,71,625
Surplus Assets
Existing Life Insurance Policies
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Life Insurance
Rs. 2,50,000
LIC-Jeevan Saral
Life Insurance
Rs. 2,10,000
LIC-Jeevan Mitra-Double Cover(1.05x2)
Life Insurance
Rs. 50,000
LIC-Endowment
Total Existing Life Insurance Cover:
Rs. 5,10,000
The chart below shows you a comparison of your required cover compared with your existing level of
cover.
Make sure to have adequate Life cover. In case something happens to you, your Spouse should get a
lump sum amount so that there is zero financial impact in your absence.
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Advice
You currently do not have enough existing Life Insurance cover for Anand with only 3% of the life
insurance needs funded. This leaves a shortfall of Rs. 1,47,61,625 worth of cover.
Action Plan
You are advised to make up for the deficit life insurance. It is recommended to opta for Term Life
insurance preferably ONLINE policy that would be available with much lesser premium as compared to
offline policies as it bypasses the intermediaries/agents.
Some of the popular ONLINE term insurance policies are available from insurance providers such as
HDFC Life (HDFC Click 2 Protect Plus), Kotak Life ( Kotak Preferred e Term Plan), AEGON Life ( AEGON
Life iTerm Plan), ICICI Prudential (ICICI Prudential i-Protect), SBI Life (eShield), Bajaj Allianz (i-Secure),
LIC (e-Term), Max Life (Online Term).
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Conclusion
Your Net Worth as at 20-Aug-2016 is Rs. 1,05,15,104 ; comprised of total assets of Rs. 1,35,09,925 less
liabilities of Rs. 29,94,821 .
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Next Steps
Implementation of the recommendations should be done within one month from now or as early as
possible.
Appendix: Glossary of Terms used in Financial Planning
Asset Allocation
Asset Allocation is the process of selecting amongst asset classes such as equity debt gilt property and
gold. A large part of financial planning consists of finding an asset allocation that is appropriate for a given
person in terms of their appetite for and ability to shoulder risk
Compounding
The effect of compounding depends on the frequency with which interest is compounded and the periodic
interest rate which is applied. Therefore, in order to define accurately the amount to be paid under a legal
contract with interest, the frequency of compounding (yearly, half-yearly, quarterly, monthly, daily, etc.)
and the interest rate must be specified
Goals
There are many types of financial goals. Here are some of more common goals for everyday parlance
1. Get out of debt — “I will completely eliminate my debt in 3 years.”
2. Saving for retirement — “I will save for my retirement years.”
3. Saving for college education — “I will save for college education for my son”
4. Saving for a House Purchase — “I will save for down payment on my first home.”
5. Saving for a down payment for your car — “I will save for down payment on my new car.”
After you set your goals, the next step is to prioritize them. Although it’s nice to be able to accomplish
them all, sometimes that is simply not possible. You may have to make some changes and accept some
compromise. After your goals are prioritized, the next step is to review them and identify actions you
should take to accomplish each goal.
Diversification
Portfolio diversification is the means by which investors minimize or eliminate their exposure to companyspecific risk, minimize or reduce systematic risk and moderate the short-term effects of individual asset
class performance on portfolio value.
Well-conceived portfolio diversification will result in the construction a well-diversified portfolio that will
serve you well in achieving your long-term investment goals. And defining an investment universe that is
sufficiently broad to ensure that the highest level of diversification consistent with your risk tolerance can
be achieved is the single most important step in constructing your portfolio.
Inflation
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Inflation, a universal concept, is an economy-wide sustained trend of increasing prices from one year to
the next. The rate of inflation is important as it represents the rate at which the real value of an investment
is eroded and the loss in spending power over time. Inflation also tells investors exactly how much of a
return (%) their investments need to make for them to maintain their standard of living.
Insurance
Traditionally, Life insurance has always been a way to protect your survivors and dependents against
financial hardship. Simply put, Life insurance offers financial protection to you and your loved ones when
you retire, die or are unable to continue providing financially due to unforeseen incidents. While nothing
can substitute your loss, insurance at least takes care of the financial gap created by your absence or the
absence of an active income source. It thus tries to eliminate risk by substituting certainty for uncertainty
However Life Insurance has evolved over time. Today it is a smart savings and investment option and can
offer market linked returns. With the right life insurance policy you can be assured of maintaining your
standard of living and even improve it. You can plan for your aspirations and time your policies to get you a
lump sum amount just when you need it or you can simply make your money grow for the rainy day. It can
help you meet your child’s educational needs, their marriage expenses or for purchasing that dream home
that you’ve always wanted.
Monte Carlo
Risk is part of all investments. Monte Carlo simulation allows for better decision making under uncertainty.
Monte Carlo simulation performs risk analysis by building models of possible results by substituting a
range of values—a probability distribution—for any factor that has inherent uncertainty. It then calculates
results over and over, each time using a different set of random values from the probability functions.
Depending upon the number of uncertainties and the ranges specified for them, a Monte Carlo simulation
could involve thousands or tens of thousands of recalculations before it is complete. Monte Carlo
simulation produces distributions of possible outcome values.
By using probability distributions, variables can have different probabilities of different outcomes
occurring. Probability distributions are a much more realistic way of describing uncertainty in variables of
a risk analysis
Risk Profiler
Risk profiling can help you make decisions that are suitable to you, as it is a method of measuring personal
tolerance to investment risk. In simple terms, how much risk an individual is willing to make, or not make.
Risk tolerance can be seen as the sum of all the ‘fear/greed’ trade-offs available.
Once we have obtained your investor profile, we then examine the most suitable strategy. Once we have
decided on the strategy we then look at the investment options available to you. This process results in
your funds being invested across many investment sectors so that they are fully diversified as to your
wishes and also your tolerance levels.
Net Worth
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The Net Worth Statement tells you what you're worth financially. Use it to list all your assets and liabilities
(your debts and expenses) and then subtract the sum of your liabilities from your total assets.
When completing your net worth information, use a specific date -- perhaps the end of a calendar quarter
or the end of the year -- so you can use the same date to recalculate it annually. Remember, the higher
your net worth, the better. A low or negative net worth tells you that you'll need to work on your Cash
Flow statement to find ways of increasing your savings. The goal is to have a greater net worth each year.
(As you build your assets, carefully evaluate the appropriateness of protecting them with life insurance.)
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Appendix: Disclaimer / Disclosure Statement
The recommended products and strategies in this plan have been prepared especially for you. These
recommendations given here flow out of an analysis of your Investor Profile and your Goals and Objectives
as presented to us.
In addition, it is important to be aware of the following:

All market linked investment returns will reflect the performance of the underlying assets of the
products you have chosen and will go up and down with the value of the products assets.

With all international investments you are exposed to the added risk of currency fluctuations.

Most Investments are medium to long term and the minimum investment term must be
considered before making an investment.

Any report product information goods services or advice ("advice") given to you has been prepared
from the information supplied to us from you. Any decisions made by you in reliance upon or in
relation to such advice are to be made by you and not by us. You are therefore exclusively
responsible for all acts and decisions in making any decisions in reliance on any advice or materials
supplied to us by you.

Any calculated projections or any predictions given by us to you are not guaranteed and are merely
an expression of opinion only and are not intended for other than illustration purposes only.
Whilst every care has been exercised and the advice and the statements made are based on information
believed to be accurate that no liability is accepted by us or our employees or officers or outside suppliers
of information for any error or omission contained herein. It is strongly recommended that this
qualification be borne in mind when making any decisions in reliance upon any of the advice contained
herein. You are exclusively responsible for all such decisions. Further, our responsibility in connection with
any materials or advice given by us to you is supplied to you alone and neither we nor our employees either
directly or indirectly accept any responsibility howsoever arising on any grounds whatsoever to any other
party.
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Appendix: Annual Cash Flow Statement
This table details, year by year, the information from the Cash Flow projections graph.
Year
Incomes
Expenses
Committed Savings
Repayments
Net Cash Flow
2016
Rs. 15,60,000
Rs. 5,64,228
Rs. 1,86,678
Rs. 5,42,574
Rs. 2,66,520
2017
Rs. 16,38,000
Rs. 6,09,366
Rs. 1,86,678
Rs. 5,42,574
Rs. 2,99,382
2018
Rs. 17,19,900
Rs. 6,58,116
Rs. 1,86,678
Rs. 4,70,571
Rs. 4,04,535
2019
Rs. 18,05,895
Rs. 7,10,764
Rs. 1,83,982
Rs. 4,02,190
Rs. 5,08,959
2020
Rs. 18,96,190
Rs. 7,67,626
Rs. 1,83,982
Rs. 4,02,190
Rs. 5,42,392
2021
Rs. 19,90,999
Rs. 8,29,036
Rs. 1,83,982
Rs. 4,02,190
Rs. 5,75,791
2022
Rs. 20,90,549
Rs. 8,95,359
Rs. 1,83,982
Rs. 4,02,190
Rs. 6,09,018
2023
Rs. 21,95,077
Rs. 9,66,988
Rs. 1,83,982
Rs. 4,02,190
Rs. 6,41,917
2024
Rs. 23,04,830
Rs. 10,44,346
Rs. 1,83,982
Rs. 4,02,190
Rs. 6,74,312
2025
Rs. 24,20,072
Rs. 11,27,894
Rs. 1,76,862
Rs. 3,23,630
Rs. 7,91,686
2026
Rs. 25,41,076
Rs. 9,33,747
Rs. 1,74,130
Rs. 0
Rs. 14,33,199
2027
Rs. 0
Rs. 10,27,122
Rs. 12,130
Rs. 0
Rs. 10,39,252-
2028
Rs. 0
Rs. 11,29,834
Rs. 12,130
Rs. 0
Rs. 11,41,964-
2029
Rs. 0
Rs. 12,42,818
Rs. 0
Rs. 0
Rs. 12,42,818-
2030
Rs. 0
Rs. 13,67,099
Rs. 0
Rs. 0
Rs. 13,67,099-
2031
Rs. 0
Rs. 15,03,809
Rs. 0
Rs. 0
Rs. 15,03,809-
2032
Rs. 0
Rs. 16,54,190
Rs. 0
Rs. 0
Rs. 16,54,190-
2033
Rs. 0
Rs. 18,19,609
Rs. 0
Rs. 0
Rs. 18,19,609-
2034
Rs. 0
Rs. 20,01,570
Rs. 0
Rs. 0
Rs. 20,01,570-
2035
Rs. 0
Rs. 22,01,727
Rs. 0
Rs. 0
Rs. 22,01,727-
2036
Rs. 0
Rs. 24,21,900
Rs. 0
Rs. 0
Rs. 24,21,900-
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Year
Incomes
Expenses
Committed Savings
Repayments
Net Cash Flow
2037
Rs. 0
Rs. 26,64,090
Rs. 0
Rs. 0
Rs. 26,64,090-
2038
Rs. 0
Rs. 29,30,499
Rs. 0
Rs. 0
Rs. 29,30,499-
2039
Rs. 0
Rs. 32,23,549
Rs. 0
Rs. 0
Rs. 32,23,549-
2040
Rs. 0
Rs. 35,45,904
Rs. 0
Rs. 0
Rs. 35,45,904-
2041
Rs. 0
Rs. 39,00,494
Rs. 0
Rs. 0
Rs. 39,00,494-
2042
Rs. 0
Rs. 42,90,544
Rs. 0
Rs. 0
Rs. 42,90,544-
2043
Rs. 0
Rs. 47,19,598
Rs. 0
Rs. 0
Rs. 47,19,598-
2044
Rs. 0
Rs. 51,91,558
Rs. 0
Rs. 0
Rs. 51,91,558-
2045
Rs. 0
Rs. 57,10,713
Rs. 0
Rs. 0
Rs. 57,10,713-
2046
Rs. 0
Rs. 62,81,785
Rs. 0
Rs. 0
Rs. 62,81,785-
2047
Rs. 0
Rs. 69,09,963
Rs. 0
Rs. 0
Rs. 69,09,963-
2048
Rs. 0
Rs. 76,00,960
Rs. 0
Rs. 0
Rs. 76,00,960-
2049
Rs. 0
Rs. 83,61,056
Rs. 0
Rs. 0
Rs. 83,61,056-
2050
Rs. 0
Rs. 91,97,161
Rs. 0
Rs. 0
Rs. 91,97,161-
2051
Rs. 0
Rs. 1,01,16,877
Rs. 0
Rs. 0
Rs. 1,01,16,877-
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