FPSB INDIA FORMAT SANJAY MOCK TEST Ref.

date 01/04/17

1) Sanjay wants to invest suitably in Ajinkya’s International School Admission FEE,

Recurring education expenses & Higher Education. It should grow in equity and
debt fund in such a way that regular SIP to be invested in equity fund and a
bunch of 4 years expenses to be invested in debt fund in the beginning of 4
years. You suggest the lump sum amount in debt fund today as ____________
and equity SIP as _______. (Mark 5)

2) You advise Sanjay to accumulate retirement corpus to sustain the same life style till his lifetime and
thereafter 70% pre retirement expenses till Sherlyn’s expected life time.
You have further advised to consider Rs. 3,000/- each per month (current terms) during post retirement
for routine medical expenses due life style diseases. They would like to go for the foreign tour during 1 st
year of retirement to celebrate the beginning of their retirement life which cost another Rs.15,00,000/-
current terms. Sanjay wants to know how much inflation adjusted retirement corpus required. (The post
Retirement corpus will be invested in Debt fund, 2% excess inflation to be considered for world tour
requirement) (Mark 5)

3) Sanjay wants to build a retirement corpus, which will give him an annuity of inflation-linked
monthly household expenses till their lifetime when invested in debt instruments. Also he wants
to leave a estate of Rs.1.5 crore (Then Cost). To meet this he will invest in his existing PPF a/c the
maximum permissible amount at the end of the year till its due maturity and also in 4 extension
blocks of 5 years each with the same investment. He will also hold the existing ELSS and will start
redemption of 1/5 units every year before 5 years and invest the same in risk free instruments. He
wants to know Surplus/Shortfall in Retirement corpus?
(Mark 4)

4) Sanjay wants Rs.10L Current cost for his son’s marriage @ age 25 and would like to know weekly SIP
required. You have advised to invest in below asset allocation till his marriage. (1st 10 years in Equity
MF 90%, Balance MF-05%, Debt-05% and next 10 years in Equity-60%, Balance Fund 30% Debt
fund 10% and balance no of year 50% of balance fund and 50% debt fund and he will increase his
weekly investment by 20% every three year.) (Mark 4)  

5) Sanjay wants to buy a new car as per his desired goal. He will sell the present car for Rs. 2,50,000/-
after using it for 5 years and take a loan for the remaining amount. One of the car dealer gave him a
offer for the loan @10.55% PA with a 2.5% processing charge. He requested him to cumulate the
processing charge with the loan amount and the dealer agreed with a condition that the loan amount
will be increased to an extent wherein 2.5% is levied on the total loan amount and Sanjay will repay
the loan in 60 installments. What will be EMI for the new car and effective interested by him? (Mark
3)

6) Sanjay has received an attractive offer from Tours and Travel company for 7 days Europe trip with a
family in which he has to pay only Rs. 1,00,000/- as 20% upfront amount and 1st EMI will start after
one year and EMI will be payable on a weekly basis for one year.
He wants to know the EMI amount. (Note: Interest rate 13.5%, 2% processing will be charged on loan
amount and will be added in EMI as per request of sanjay) (Mark 3)

7) In his proposed house as per goal, Sanjay needs to arrange down payment. You advise him to
invest in lump sum amount Rs.2.5 lakh immediately in the Fix Maturity Plan, which will redeem at
the time paying down payment which is expected to give post-tax returns of 7.8%. Further a certain
amount is to be invested every quarter in Debt fund which is assumed to give a return of 7.3% p.a.
 post tax effectively. He wants to know What amount needs to be invested every Quarter ? (Mark
3)

8) Sanjay wants to know the insurance requirement in case of his untimely death.
He wants to cover the household expense and the house rent payment, inflation
linked till Sherlyn attains her 65 years…Post reduction in expense by 30% till her
life time. He personally consumes 25% of the household expense.(Proceeds to be
invested in debt fund) (Mark 3)

09) The house property was gifted by his paternal uncle when the market value was Rs 25
lakhs. Uncle had purchased the property in November 2001 when the property value was Rs
15 lakhs. Today, Sanjay wants to give Rs 5 lakh to his ailing uncle. Compute the capital
gains chargeable for Sanjay ? (Mark 2)

10) Sanjay wants the same life style during post retirement and also keeps a
cushion of 2Cr. You have suggested monthly investments first 10 years in the
14% higher risk investment, next 10 years in 12% moderate risky
investment, after in 10% return investment till retirement and post
retirement in safe instruments 8%. You have to consider 1% excess inflation
in pre retirement and after retirement will be moderate by 1% (Mark 3)

11) 600 days FD Real rate of return 2.5 % QLY CMPD & inflation is 6.5% , find Effective Annualized
Return?
(M2)

12)      You advised Sanjay to accumulate corpus for retirement in his existing Balance MF which you
advise to extend to achieve this goal. You advise him to continue with the existing SIP till his age of 35
years, thereafter increase the same to Rs. 8500 p.m. till his age 40 years, Rs. 12,000 p.m. between 40
– 50 years, and Rs. 25,000 p.m. between 50 – 58 years. You advise him to switch 30% of the
outstanding Balanced MF portfolio every year to debt schemes from age 59 until the full redemption
on retirement at age 62. How much of the retirement corpus would he be able to accumulate? (M5)

13) . You have noticed that Sanjay has many cards, you advise him to immediately go for a card
protection policy. He wants to know the benefits of this policy:

a) You can block all your cards with a single phone call
b) This is applicable only for financial cards like credit cards, debit cards and ATM cards
c) This applicable for all the cards including driving license, PAN card, etc
d) This helps at the time of reapplying for the cards
M2

14) Sanjay wants to know his FY tax liability…He has share below information with you.

He has bought a house on dates 10 th January’14 at his home town Delhi for investment and rented out for
Rs.25,000/- from 15th Feb. 16 (Std. Rent is Rs. 20,000/-, fair value-27,000/-, MV-23, 000/-, House tax paid
Rs.20,000/-, insurance & maintenance expenses paid Rs.40,000/-, Housing Loan is taken Rs.50,000,00/- ,
Term-25 years , Fix Interest 10% for 5 years and 1 st installment paid from the beginning of next month)
(M5)

15) Sanjay wants to know monthly SIP requires till retirement in existing equity fund to achieve his
vacation goal?( Mark 3)