Sanjay installment once the

1. The home loan negotiated by Sanjay shall be payable in equated monthly

interest payable will be floating rate at 2% above the
position is granted after 18 months. The
RBI repo rate. given the current declining trend of interest rates, you expect the repo rate to be
S% when the repayment of loans begins, settling at 4% after further two years. Sanjay remind
he retires. you estimate Sanjay is likely age when the
you of his goal to be debt free well before
loan would be fully repaid coma if he continues to pay the same expected EMI as in the

beginning even the interest rates moved down words after two years of repayment. What do
you tell Sanjay?
1. the loan is likely to be fully repaid after 9 months of Sanjay completing age 55 years.
2. The loan is likely to be fully repaid after 9 months of Sanjay completing age 57 years.
3. The loan is likely to be fully repaid after three months of Sanjay completing age 56 years.
4. The loan is likely to be fully repaid when Sanjay completes 57 years.

2. For their vacation goal, you advice Sanjay to allocate Rs.50,000 in the first 5 years, starting
immediately in an aggressive fund returning on an average 12% per annum. Your analysis of
cashflows shows they can raise annual allocation to Rs.75,000 in the next 5 years, and further to
Rs.1 lakh until a year prior to first withdrawal. How do you determine working of this strategy
when on first withdrawal, the accumulated money is switched to 8.5% annual return funds from
where all annual vacation expenses are drawn?
A) Thevacation funds will be in place to the extent of 86%
B) Just about 45% of the vacation goal expenses can be accumulated with this strategy
c) The vacation funds will be in place to the extent of 81%
d) The goal will be nearly achieved with accumulation of 98% of vacation expenses.

3. Sanjay invested fixed deposit scheme is maturing in august, 2019. If average annual inflation of
5% is experienced during the invested term of the deposit, what real rate of return would Sanjay
obtain after accounting for tax payable?
A) 1.349% annual return
B) 2.28% annual return
C) 1.42% annual return
D) 1.21 % annual return

4. You discover that Sanjay has committed to acquires a flat costing Rs. 1.2 crore of which 70%
would have to be financed. You advice Sanjay to increase his life insurance to cover the
impending liability of flat, the entire education expenses of Ajinkya estimated at R.1 crore today,
and the lifelong living expenses for Sherlyn at 8000% of current househod expenses with a
purchasing power against average 4% annual inflation. "The claim amount is supposed to be
invested in debt instruments. What additional amount of life cover do you compute?
A) R.2.79 crore
B) Rs.3.15 crore
C) Rs. 3.40 crore
D) Rs.3.66 crore

5. Sanjay wants to cover his pure risk in a way that in case of his life exigency his family continues
to have the purchasing power of their current household expenses against current infation till
Sheryls age of 55 when drawn from 8.5 % annual return investments. beyond the sage, 20%
more of then expenses should be added to words health care costs until she survives. Beyond
 age 55 of sholon, the annual investment yield is taken conservatively at 6.5 % with ar
annual inflation of 3.5 %. What additional insurance cover do you evaluate? moderate
1. 1.47 Cr
2.2.31 Cr Rauk?
3.1.31 C
4. 1.68 Cr

6. You discover that sanjay has committed to acquire flat costing rs 1.2CR of which 70%
to be finance you advice Sanjay to increase his life insurance to cover the
would ha ve
impending liability of
flat, the entire education expenses of Ajinkya estimated at 1Crore today and the life long living
expense for sherlin at 80% of current household expenses with a purchasing power against
average 4 % annual inflation. The claim amount is supposed to be invested in debt instrument
what additional amount of life do you
cover compute.
a. Rs 3.15 Cr.
b. 3.66 Cr.
c. 2.79 C
d. 3.4 Cr.

7. You tell Sanjay about the sensitivity of assumptions made in retirement plan. You expect current
inflation to continue until Sanjay retires at 62 for estimating expenses in the first year of
retirement. After retirement you have considered average annual returns from investing at 6%
while inflation at 3.5% in order to estimate total funds to be available on retirement. you inform
Sanjay that the fall of 1% in expected yield on investing Corpus while the same rate of inflation
as the current one during retirement years would change the scale for such retirement funds to
be accumulated. Sanjay asks you to take this scenario into account and also 5 years more in the
individual longevity of himself and Sherlyn. What additional funds need to be accumulated to
accommodate a revised parameters?

1.1.63 Cr.
2.1.98 Cr.
3.2.2C
4. 1.44 Cr.

8. Sanjay investment in balanced mutual fund scheme is valued at in a NAV of rupees 11. 793 per
unit as on 31st March 2019. He was allotted a total of 4390.241 units on the is SIP investments.
As the investment in scheme is tax inefficient, you advise him to redeem a part of the
investment as would be classified under the long term capital gains for the assessment year
2020-21?What should be that money?(Present that units could be sold at the NAV prevailing on
31st March 2019)
A 176895
B. 228671
C. 261898
D. 1500000

9. Sanjay does not want to keep his inherited property at Aurangabad for long the property needs

major repairs for which you advised him to take a loan instead of spending own funds a
are
contractor has agreed to repair the property at a cost of rupees 6 lakh in less than 3 months

Sanjay can borrow immediately rupees 600000 from a bank at 9.25 % per annum repayable over
 12 months during this year itself the first EMI due on 30th April 2019 the contractor at sure to
find a 10 and who pay rupees 18000 per month effective 1st July 2019 municipal tax would be
paid rupees 11650 watt income from house property can be considered for the assessment year
2020-21?
1) rupees 74759
2) rupees 82381
3) rupees 75 245
4) rupees 11 2559

10. You evaluate a strategy to fund higher education of Ajinkya by accumulating rent from letting
out Aurangabad property. Rents are re-fixed annually in line with real estate appreciation. The
first annual rent of Rs.2 lakh is to be received at the end of this year and thereafter at annual
rests. Rents on their receipt are invested in equity funds. After receipt of 12 installment of rent,
70% of available funds are switched to debt schemes in risk off strategy and fresh rents for
further 6 years are accumulated in debt schemes. What extent of Ajinkyas goal can thus be
achieved?
A) In excess of 68% of the funds required for Ajinkyas higher education could be accumulated by
following this strategy.
B) About 63% of the funds required for Ajinkyas higher education could be accumulated by
following this strategy.
C) Nearly 56% of the funds required for Ajinkya higher education could be accumulated by following
this strategy.
D) More than 75% of the funds required for Ajinkyas higher education could be accumulated byy
following this strategy.

11. Sanjay expects annual increment of 3% in EPF contribution until he retires at 62. He would
contribute rupees 1.5 Lakh in the beginning of every financial year in PPF until initial
maturity
and also during its subsequent rollover infoblox of 5 years each. The average return from EPF
and PPF during entire investment period is expected at 6.25 % per annum. The retirement
income would be equivalent in purchasing power to the current household expenses, need it
through the lifetime of Sanjay and Sherlyn, when run annually in the beginning from funds
invested at 5.5 % per annum. do you estimate in achieving retirement
Corpus after
considering
maturity in EPF and PPF accounts of Sanjay? ignore compounding effect of monthly nature of
EPF subscriptions within the same year and consider than credited to account at the end of each
year
1.51 lakh
2.1.46crore
3. 1.67 crore
4. 1.21 crore

12. Sanjay wants to know the return he has obtained from his investment till date in equity linked
savings scheme what estimate do you have of the return of tane on the investment as on 31st
March 2019.
A. In excess of 13.5 %
B. In excess of 14.25 %
C. In excess of 12.5%%
osoC2279 8
1 S 7 4 0 L 1 2 67 S s 4 e
. 2 2 1 8 l

6
4 1

202C6
S s 4 8

5
|

D. In excess of 16 %
472883L-
3S2436"
7 2 1 8 62 0 1

124S
172.8-o
13. For the Aurangabad property inherited by Sanjay in December 2018, the municipal
rental value and standard rent
value. fa:
tair
respectively Rs 1.4 lakh, Rs 1.6 lakh and Rs 1.56 lakh on annst
basis. Sanjay shall not rent out the
property for this year beginning 1st April 2019 from what h
has to pay ne
municipal taxes of rupees 11650 for the same here. What income from house
property will be considered for filing return for the assessment year 2020-21?
1. Loss to the extent of
actual municipal taxes paid during the year.
2. Nil, the
Aurangabad property is the only one owned by Sanjay, and under the
cannot be treated as deemed let circumstances it
out.
3. The
municipal value of the property reduced by municipal taxes.
4. The fair rental value
of the property reduced by municipal taxes.

14. The
Aurangabad property inherited by Sanjay was purchased by his father for 6 lacs in
September 1994. The fair market value of the property as on April 1 2001 was rupees 11 lakh. As
Sanjay has no intention to settle at Aurangabad he may well
the current year this will also
disposed off the property during
release own funds for
Sanjay to make down payment for the
proposed new property at Mumbai is getting offers for net value of 52 lacs to sale his
Aurangabad property if Sanjay decides to take this offer to sell the property what would be the
capital gain tax that he would incurred in the
proposed transaction for the assessment year
2020-21 (cost inflation index 2001-2002: 100, 2019-20: 289)
A. 420368
B. 426400
C. 478400
D. 720928

15. Sanjay wants to insure his just inherited House situated at

him as the basis of such insurance. Aurangabad what should you advise
A. insurance for the stamp duty value considered at the time of
of Sanjay. registering the property in the name

B. ensure the house equal to the market value of similar House situated in the same
house is. locality as the
C. insured to the extent of municipal value of the House on the basis of which House tax is levied
the local municipal authorities. by
D. Insure the house for value equal to the reconstruction cost which shal be used to
house back to
bring the
its original condition in case of happening of
perilous events
16. You have been engaging with Sanjay and Sherlyn to know their perspective and aspiration from
financial plan. Among the personal computer skills that you practice of an in such situations,
what is closest to self-awareness?
it is the awareness about your own situation and principled stand which may come in conflict
either today while you engage your client on financial planning or in the future.
it is about the measurement of your skills and abilities that can be counted upon to deliver a
professional performance.
tisthe awareness about your tastes, liking, ete, which you do not want to come in the way of
achieving financial objectives of your client in objective dellvery of performance
it is all about how you percelve and understand your emotions, what triggers reaction or
response, your self reflection, and how you feel, think and operate.
 17. You have been engaging with Sanjay and sharing to know their prospective and aspiration from
financial plan among the personal competence skill that you practice often in such situation
what is closest to self management?
1) the ability to control your emotions is in dealing with clients and thus bring objective to plan
preparation
2) the ability to aware of your emotions and appropriately director very behaviour
3) the person homework and equipping with everything that a client may need during engagement.
4) the virtue of managing your time and being punctual in all client deliverables.
18. You are gathered the financial information of the family you are in the process of assessing risk
that Sanjay is exposed to what do you advice Sanjay by just studying his life stage and liabilities
in this regard
A. Sanjay has no liabilities he has enough insurance cover at this stage which can be increased once
he contracts loan to buy a house
8. Sanjay has a fission assets and good cushion to save enough for a secure future. The current
insurance cover is adequate.
C. The assets of Sanjay can be seen as a replacement for insurance cover, especially in the absence
of financial liabilities seen in conjunction with these, is current insurance cover is adequate.
D. Sanjay is not adequately insured. He should additional take covers against total disability dua to
critical illness and accident
19. You are discussing Sanjay about aspects of his health contingency. He tells you that he is cover
for medical cost to be incurred on himself and members of his family including hospitalization
needs by his employer. What is your opinion in this regard?
A. Sanjay should check with his office about critical illness which may result in total disability If
not covered he must add in suitable disability Rider to hit existing life insurance policy for family
floater policy shall cover except medical exigencies and shall make health risk management
employment neutral.
B. Sanjay and his family are adequately covered currently by his employer for health contingency the
same should not be his priority at this stage considering young age irrespective of employment.
C. Sanjay Singh should be adequately covered for health contingency by his employer he does not
require a separate Health insurance as long as he is in present employment.
D. even if Sanjay and his family are covered for health contingency by his employer, Sanjay is well
advised to seek waiver of premium Rider to save such costs in case of critical ilness and partial/total
disability.

20. Sanjay wants to use the accumulations in his balance in PPF account for lumpsum annul
withdrawals needed to words secondary education of his son after some 12 years what do you
advice in this regard
1) Sanjay can extend his PPF account after its initial maturity for a further period of 5 years
without contributing further and during that he period he can withdraw any amount standing in
his account but only once in a
year
2) Sanjay can extend his PPF account after its initial maturity for a further period of 5 years without
contributing further and during that he period he can withdraw 20% of the maturity amount in next
4 years and the remaining 20% with accumulated interest in last year

3) Sanjay cannot continue his PPF account once it mature after 11 years he can withdraw the entire
amount on maturity and keep in his bank account and can withdraw whenever needed
 4)S
ddnay can extend his PPF account after its initial maturity for a further period ot 5 years withot
Ontributing further during that he period he can withdraw 60% of the balance

21. You sit with Sanjay and mutually define the scope of engagement of you financial planning
Services. Which of the following activities should precede this process?
A Ascertaining scope of any third party to the engagement, any legal or agency relationships
B) Fixing the duration of the engagement and the provisions for terminating the engagement
relping Sanjay to understand the financial planning process and specific methodology to be

adopted
D) Defining your responsibilities and that of Sanjay with respect to the engagement.

22. Sanjay asks you whether a trust structure to manage his assets would be better, if he faces a ife
eventuality. What do you advise him in this matter taking his situation into account.
A) Sanjay can create a testamentary trust, which will exist only, on his death and which willget
proceeds from his estate for the benefit of Sherlyn and Ajinkya ina manner that he decides.

B) Sanjay can create a revocable living trust which Sanjay can revoke or terminate anytime or can

modify the same as per the changing situation.

C) Sanjay can create an irrevocable living trust which will have current and future tax benefits,
besides such a trust can be modified or terminated with the agreement of Shelyn and Ajinkya.

D) Sanjay can create an Asset Protection trust, given the situation that he has contracted a sizeable

home loan.

23. You advise Sanjay to take a Personal Accident cover as part of his car insurance. What do u
explain as the benefit of such cover
A) It will cover Sanjay and other unnamed co-passengers while travelling, mounting and
dismounting the car.
B) It will cover anybody who drives the car while travelling, mounting and dismounting.

C)itwill cover Sanjay against any accident that he may get into while travelling, mounting
or dismounting the car.

D) It will cover Sanjay and his entire family while travelling, mounting or dismounting the car.

24. As a CFP practitioner, one of the following is not advisable. Choose that
when requested Dy
A) You provide appropriate documents related to your recommendation as and
the client.
or
at the inception
B) you disclose your business relationship with various product manufacturers
your engagement with a client.
receved
C)You inform your employer, a Financial Planning firm, of any additional compensation
from one of your clients
offer to proviae
D) You do not have proper knowledge of legal aspects of Estate Planning. You
ch services to yourclientat a pricelesser than that quoted by a lawyer.
ement

25. You have estimated the retirement Corpus that Sanjay should have by his proposed rert
age of 62 basis for their current household expenses adjusted for inflation through the ine
 retirement years what factors
of Sherlyn and positive real rate return on investing funds during
a
about having a question in the proposed retirement Corpus.
do you consider in advising Sanjay
assured returns from investing retirement funds and low yields
A. government constraints on hai
result in lower income during the retirement years.
from the and duties which may
life expectancy than provisionioned and the prospects of
B.the provision for medical funds higher
retirement years
negative real rate of return during
life expectancy than provision and the prospects of
C. the provision for medical friends higher
the retirement years
negative rate of return during
retirement years which might squeeze positive real rate of
D. very low inflation rate during their
returns hence difficulty in sustaining retirement Corpus until lifetime as provisioned.

in most of his assets will it still be necessary for him at

26. Sanjay informs you if he make nomination
with your reason.
this stage to chalk out the succession plan? Answer
No detailed succession plan is required at the stage. Ajinkya is minor and any managed
a.
distribution at the stage will futile.
succession plan at
b. No. Sanjay right that nomination is his assets is an alternative to a detailed
is
contracted home loan which
this stage. Safeguard should be taken with regard to the freshly
to assets on which he nominates.
may have liability disproportionate
have business interests in the future,
c. Yes. Nomination to current assets aside, Sanjay can
etc. which may require an elaborate
including intellectual property, authored works, Royalty
estate planning.
asset, however the legal title may
d. Yes. Nomination enables on nominee to possess respective
car etc and financial asset have to be
be disputed. Fix asset such as home, jewellery,
specifically distributed in a succession plan along with attendant liabilities, if any

information about their financial status, assets, liabilities

27. You have obtain the quantitative
like to additionally understand that can be
,cashflow etc. which of the following would you
and Sherlin.
classified as the qualitative information about Sanjay
on financial solution.
a. Their legal and estate issues that may have impact
and values that have financial implication.
b. Their attitudes and level of financial sophistication
investment decisions that may impose
investment constraints in the
C. of their
The quality past
financial plan being prepaid.
in conflict with the investment objectives
Their risk tolerance and risk capacity that may
come
d.
adopted to seek financial solution.

of financial planner code of ethics?

28. Which of the following is the most appropriate purpose
advisers strictly on those aspects
1) to identify prohibited conduct and regulate
with in dealing with their clients
of conduct which advises must abide
2) puspal out principles
decision in areas of discretion
3) to provide a set of guidelines for making its practitioners
for financial planning activity and
4) to design a professional framework i
Chat iut,lagi aeduty .fai M , Aabfesma
required to
his own flat for a loan amount which would
29. Sanjay has already committed to having of flat together
be paid over 32 years starting a couple
of years when he gets the possession
until 65 years of age
would mean he might have a work
with meeting other financial goals that
of retirement Corpus
delaying retirement up to four years will be requirement
Sanjay ask you by
number of years into retirement?
will be less as they may have less
 1) there will be no change in the retirement Corpus to be accumulated as the higher than provisional
expenses on delayed retirement will be balance by less number of years into retirement

2) Sanjay is correct in guessing that due to less number of years they might have to live into

implement the requirement of retirement Corpus will also be less

3) all other factors remaining same there will be slightly more retirement Corpus needed with his
delayed retirement as the initial year expenses on delayed retirement will rise however he would be
in a better position to achieve that with more investment getting compounded
4) the retirement Corpus required to be accumulated will be generally lower in delayed retirement
as the number of years to be spend into retirement will be decrease care however should be taken
only in case of negative real return from investment during retirement years.

30. Sanjay has told you are at ease and use rating of Home Loan for investment in flat which is under
construction. There will be four instalments out of which three amounting to around
Rs.60,00,00 will be drawn in a period spanning next one year. What do you advise Sanjay about
your lease in case of any exigency with his life, and how do you reason it ?
a)Sanjay should take a fresh cover at least equal to the entire negotiated amount of loan. In case of
any life exigency when the house is under construction or beyond, the property remains an asset of
the family and no and liability on this on this count befalls on them.

b) Sanjay should ideally wait until the position of flat. He can then buy a single premium mortgage
life insurance policy which enables to bundle the premium amount on loan with the principal
amount of loan, thereby saving burden of future premiums

Sanjay should buya home laan protection planinthis plan,the sum assured decreases with the
outstanding balance of the loan, hence the benefit ofincreasing less amount of premium payable

everyyear.
D) Sanjay should buy a home loan protection plan on taking possession of the house, along with the
level term insurance plan. The initial period of loan, until position is granted, is treated as interest
only mortgage
31. You tell Sanjay that he can extend's PPF account after is the regular maturity for future block of
five years and any number of times as per current provisions, with containing subscriptions.
What are withdrawal rules during such extensions
a) only 60% of amount outstanding before an extension can be withdrawn during the extended
period but only once in a year
b) Full amount outstanding before an extension can be withdrawn but only once in a year
c)up to 50% ofamount outstanding along with interest at the end of previous year can be
withdrawn during the extended period but only ones in the extended period
d) no amount can be withdrawn until next maturity of the extended period