Client Bio

• Occupation: SAP Technical consultant

• Organization: TCS
• Marital Status: Married
• Residential Status: Resident
• Dependents: Spouse, 1 child (1 years)
Assets
Current Balance Current monthly contribution
Cash 215000
Recurring Deposit 241934 2000
SBI Blue Chip Fund 234501 5000
HDFC Balanced Fund 200516 5000
Indiabulls Blue Chip Fund 99049 5000
EPF 470000 3912

• Bought a 2BHK flat in Pune worth ₹39 lakh in 2016, expected possession in 2018
• Term Insurance of ₹1 cr, premium of ₹ 2338 per month to be paid for 30 years for coverage of 40 years.
Premium to be repaid after 40 years in case of no death
Goals
• Minimize tax liability
• Retirement planning for comfortable post- retirement life
• To buy another house after 2037
• Child’s education till graduation
• One match at Santiago Bernabeau and Camp Nou at 2024
Income Statement: 2017
• Gross Annual Salary: ₹1189800
• Exemptions (HRA+Medical+Conveyance+Food Coupons): ₹199080
• Deductions: Provident Fund: ₹46944
• 80 C benefits: ₹75000
• 80 D benefits: ₹4500
• Tax liability: ₹85355
• Net Income: ₹1055101
Expense Schedule:2017
• House Loan EMI (annualised): ₹333240
• Rent: ₹180000
• Living Expenses: ₹240000
• Savings & Investments: ₹204000
• Medical Expenses: ₹6000
• Insurance Expenses: ₹28056
• Holiday Expenses: ₹30000
Goal 1: Tax optimization
• Can claim tax exemption u/s 24B on interest paid on home loan after
possession in 2018
• Invest ₹50000 a year in NPS. Tax savings ₹10000 in 2017
Goal 2: Retirement Planning
• Expected life span: 80 years
• Post-retirement life: 20 years
• Expected expense on 1st year of retirement @ 6% inflation: ₹31 lakh
• Corpus required for retirement: ₹11.2 crore
• Expected value of PF at retirement: ₹4.2 crore
• Expected value of NPS corpus at retirement: ₹93.32 lakh
• Re-investment of ₹5.2 crore in an SWP fund at 6% p.a for 20 years
generates yearly income of ₹44.05 lakhs
• So, existing pension funds are enough to cover retirement
Goal 3: Children’s education
• Cost of college education at present costs: ₹6 lakhs
• Future value of college education: ₹22.2 lakhs
• FV of SBI Blue Chip Fund at the time of admission: ₹58 lakhs
• Post graduate to be financed by education loan.
Goal 4: Buy a house at 2037
• Estimated price of a 3BHK flat in Thane in 2037 @8% inflation: ₹7.08 crore
• FV of SBI Blue chip fund : ₹46.81 lakhs
• FV of HDFC Balanced Fund: ₹ 1.34 crore
• FV of IndiaBulls Blue Chip Fund: ₹ 81.84 lakhs
• Shortfall: ₹4.45 crore
• Recommended Investment: 5000 per month in Mirae Asset Emerging Blue
chip Fund (ranked 1 in Mid & Small cap category )
• FV of Mirae Asset Emerging Blue chip Fund at 2037 = ₹2.51 crore
• FV of Reliance Small Cap Fund at 2037 = ₹5.7 crore
Goal 5: Weekend at Bernabeau & Camp Nou
at 2030
• 8 nights 9 days in Madrid, Barcelona, Valencia, Cordoba (current
market prices) : ₹600000
• Match day tickets to Nou Camp and Bernabeau: ₹67000/ticket
• Assuming 9% inflation, required capital: ₹24.55 lakhs
• Recommended Investment: Reliance Small-cap fund, ₹2000 per
month
• FV of Reliance Small cap fund in 2030: ₹94.48 lakhs