RVS INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

WEALTH MANAGEMENT(2016 Batch)

Project Activity Details

Following are the major goals of the clients. Assume an investment return of 10%, and
inflation rate of 6%. Assume salary to grow at 7%. Use inflation adjusted values everywhere,
unless mentioned. If the timeline for any goal is not mentioned, please make suitable
assumptions and state them. If any goal is not clear, please make suitable assumptions and
state them. What would your recommendation for the client be?
1. A 25 year old MBA professional, who has just joined his job 2 years ago, and is
earning Rs 8 lakhs per annum.
Goals
1. Travel at least two countries with friends or alone before marriage. Rs.
2 lakhs in the next 2 years
2. Plan a grand honeymoon. Rs. 3 lakhs after 3 years
3. Watch Cricket World Cup live in England after 3 years. Rs. 350,000
4. Go for Sunburn Festival this year. Rs. 50,000
5. Need money for marriage after 3 years. Rs, 12 lakhs
6. Buy a bike Rs. 1.5 lakhs in 1 year from now
7. Current Portfolio is Zero
8. Every month rent expense Rs. 10,000
9. Every month normal expense Rs. 10,000
10. Plan a portfolio size of Rs 50 lakhs by the age of 40

2. A couple, aged 35-33 years, with 2 young kids, aged 3 and 1. Combined household
income Rs 21 lakhs per annum
Goals
1. Travel at least one country with family every 3 years. Rs. 3.5 lakhs
2. Make down payment for a house Rs. 20 lakhs in 2 years
3. Admission fees next year Rs. 2 lakhs (first kid)
4. Admission fee after 2 years Rs. 3 lakhs (Second kid)
5. Need emergency fund Rs. 2 lakhs (Current fund is Rs. 1 lakh)
6. Buy a bigger car Rs. 15 lakhs in 4 years
7. Every month rent expense Rs. 30,000
8. Every month normal expense Rs. 20,000
9. Increase Insurance Cover (Present Insurance Rs. 1 Cr for both)
10. Buy medical insurance for Wife with premium Rs 20000 per annum
11. Festival Expenditure – Rs. 1 lakh each year (increases 15% every year
from now on)
12. Plan an investment corpus of Rs 1 crore in 15 years in Future Value
terms
3. A middle aged family, working couple, aged 45-44 years, with one kid aged 15 years.
Combined household income 30 lakhs per annum

Goals
1. Travel at least one country with family every year. Rs. 3 lakhs
2. Make down payment for second home Rs. 20 lakhs in 2 years from now
3. Planning to buy farm house Rs. 1 Crore in 6 years
4. College Fees Rs. 3 lakhs in 2 years from now
5. Tuition Fees Rs. 3 lakhs in 3 years from now
6. Send kid abroad for studies after graduation at 21 Rs. 50 lakhs
7. Every month normal expense Rs. 40,000
8. Increase Insurance Cover (Present Insurance Rs. 1Cr for both)
9. Plan a retirement corpus of 2 crore in 15 years
10. Festival Expenditure – Rs. 2 lakhs each year (increases 15% every year from
now on)
11. Invest in Start-up up to Rs. 10 lakhs in 2 years
12. House Maintenance and Repairs Rs. 1.5 lakhs each year
13. Buy a bike for kid after 3 years Rs. 1 lakh
14. Buy a phone for kid after 1 year Rs. 30000
15. Medicine expenses of Parents Rs. 1 lakh each year
16. Their current savings are Rs 40 lakhs

4. A close to retirement professional, aged 55 years, getting a salary of Rs 25 lakhs per annum.
Husband already retired, getting a pension of Rs 50,000 per month.
Goals
1. Every month normal expense Rs. 40,000
2. Festival Expenditure – Rs. 2 lakhs each year (increases 15% every year from
now on)
3. House Maintenance and Repairs Rs. 2 lakhs each year
4. Medicine expenses of Parents Rs. 1 lakh each year
5. Travel India and Abroad (Adhoc leisure tours) Rs. 5 lakhs every year
6. Fund Son’s business Rs. 10 lakhs in 2 years
7. Buy a car Rs. 50 lakhs in 5 years
8. Create an emergency corpus of Rs 30 lakhs for any sudden medical
emergencies (in present value terms, now)
9. Charity Rs. 1 lakh every year
10. Current portfolio size is Rs 2.5 Crore
5. A couple, aged 35-32 years, where only husband is working. 1 kid, aged 3 years. Husband
income – Rs 12 lakhs per annum.
Goals
1. Travel within India/Abroad with family every 3 years. Rs. 2 lakhs
2. Buy for a house Rs. 70 lakhs in 2 years
3. Admission fees next year Rs. 2 lakhs (first kid)
4. Need emergency fund Rs. 2 lakhs immediately
5. Buy a car Rs. 6 lakhs in 3 years
6. Every month rent expense Rs. 25,000
7. Every month normal expense Rs. 20,000
8. Increase Insurance Cover (Present Insurance Rs. 1Cr for Husband)
9. Festival Expenditure – Rs. 50,000 each year (increases 15% every year from
now on)
10. Current Savings Rs. 15 lakhs
11. Create a corpus of Rs 20 lakhs in future value terms in 10 years for kid’s
education in future.