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A financial plan is a comprehensive evaluation of an investor's current and future financial state. It is the process of meeting your life goals through the proper management of your finances. Financial Planning provides direction and meaning to your financial decisions.
Establish your goals in life – short, medium and long term
Work out what assets and liabilities you have – write them down
Evaluate your current financial position – how close are you to achieving your goals?
Implement your plan – make the changes and make it happen
Monitor and review your plan at least yearly and make adjustments when needed
Importance of Financial Planning
One need to have necessary qualification & experience to hand hold, guide the investor through this process. It is not a onetime activity. It is ongoing process which evolves over a period of time.
Portfolio review
The only constant in life is change — and chances are that investor's life has changed since he last reviewed his investment portfolio . Does he know if he is still on track to reach his goals? Or if his money is working as hard for him as it could be?
Markets go up and down, tax rules change and investor's personal financial needs and goals shift. That's why it's important to have his portfolio reviewed on a regular basis — preferably annually — to make sure he is on track to meet pre-decided goals. New year can be a great time for organizing his finances. By getting his financial life in order now, he can enjoy the results all year long.
Whether he is a just a beginner or an experienced investor, one of the keys to successful investing is an annual portfolio review. Reviewing your portfolio on a regular basis serves several purposes, but is especially important during times of market volatility.
"There are a few important things to consider when reviewing Investor's portfolio:
1. Has he had significant life changes?
2. Has his investment goals changed?
3. What is the current market condition?
4. Is his asset allocation changed as a function of market change?
5. Is his portfolio over lapping with similar products or asset class?"
Importance of Portfolio review & Mix
An Investor need to be kept at the centre of his investment portfolio. Many investor portfolios are over skewed on certain stocks, mutual funds, ULIPs, or Fixed deposits which have direct bearing on overall portfolio performance and need to be course corrected from time to time.
Why Financial Planning
Does the investor know what the real value of all his investments is? Real value being the proceeds minus inflation minus tax.
Are his savings/Investments fetching him sufficient returns to meet his goals?
Is he taking full advantage of the tax exemptions available to him?
How long his dependents can maintain current lifestyle, if something happens to him?
And does his cover include the home loan he has taken?
Can he maintain a lifestyle he has been accustomed to, if he goes on a sabbatical /retirement?
Does his retirement fund take into account the increased medical expenses he is likely to have in his advanced years?
If an investor doesn’t have answers to these questions, he needs a proper financial planning.
Simply put, financial planning is the process of identifying and defining an Investor's financial goals, prioritizing them and achieving these goals with a clear, focused and a customized game plan. Financial Planning can help him achieve both greater wealth and financial security, while inadequate or improper planning can be disastrous. Financial Planning is an ongoing and continuous activity involving wealth management, children education planning, children marriage planning, retirement planning, insurance planning and tax planning.
How can a Financial Advisor help an Investor?
A Financial Advisor plans after considering an investor's long-term and his short-term goals.
He recommends products that suit an Investor's needs and forces him to invest money rather than spending it on weekend shopping.
He pushes an investor for that much needed insurance cover that he has been procrastinating for so long.
He does not sell every product that is available in the market and at times even discourages an investor to buy a product, which seems attractive to him because it does not suit his appetite or portfolio.
An Investor Can see the benefit of A Financial Advisor's advice on his portfolio and also on his understanding of an investor's finances and needs
Basic Services provided to clients under investment advisory services are as follows:
Recommendations of entry & exit based on detailed research and analysis of the market, economy and individual funds, schemes.
Periodic review and restructuring of portfolio in response to investor's needs and market dynamics.
Recommendations on insurance policies best suited to client requirements and needs.
Monitoring of Unit Linked Insurance Policies with monthly updates and recommendations of top-ups and fund switches.
Operational assistance and execution in terms of insurance policies - premium reminders, pick-up of cheques.
A Relationship Manager, who will be the contact point for all queries, transactions and any kind of assistance.
Pre & Post Investment Support will help the investor in following ways:
Pre Investment Support:
PAN Cards – Pan card is mandatory for investing in Mutual Funds. Assistance is provided in applying for the PAN or even modifying details in an Investor's existing PAN.
KYC Compliance: All assistance in complying with Know Your Customer norms which is mandatory for investing in Mutual Funds.
Mutual Fund Investment Advice - Above 25 fund houses, backed by sound research; thereby giving you quality advice ensuring better returns.
Post - Investment Support:
"Operational Support - Filling application forms, ensuring execution, Change of Bank etc.
Email and Phone Support - For any query on an Investor's Investments.
Online Investment Monitoring – Anytime-Anywhere.
Filing Income Tax returns - The BIG year end worry, now handled by experts."
Quick Contact
520, Omega Business Park, ESIC Hospital Rd, Wagle Industrial Estate, Thane West, Thane, Maharashtra 400604
