Mr. Ram, 29 years old, is working as a Engineer, TCS Bangalore.

The following are his details:

DATA SHEET OF THE CLIENT: (Method used: personal Interview and Questionnaire

CLIENT’S PERSONAL DETAILS

NAME: Ram

GENDER: Male

Date of Birth: 04-09-1990

Residential Address: No 4, Aishwarya Gardens, Sanjay Nagar, Bengaluru, Karnataka.

Occupation: TCS Bangalore

Phone Number: 8138024345

Marital status: single

Desired/ Expected age of retirement: 60 years

Details of Family/ Other retired Parties:

Wife – Home maker

Mother- Rtd. Professor, PSG Institute of Medical Sciences, Coimbatore

Qn. 1. Expectation from Investment in portfolio: Annual Return expectation on a long-term

basis:

Ans: - Good small Cap Mutual Fund investment is the area of interest for the client. These funds
have generated a CGAR of slightly over 15% returns on a long term basis.

Qn. 2. Are you happy with the past/present performance of your investment portfolio:

Ans: -Not very happy as the present level of returns are not sufficient.

Qn:3. Do you anticipate any major expenses ?

Ans: Nature of expense: Nil

Qn: 4. Are you aware of mutual funds equity schemes

Ans: Heard it is risky but capable of earning better returns in the long run

Qn:5. Would you be pleased to take some risk for a better return

Ans: I think I am open to it.

ANNUAL INCOME AND OTHER DETAILS

 Annual Income from Active work Rs 12 Lakhs

Source of this income Salary

Expected annual growth rate 8%

Income from other sources Rs 300000

Expected annual growth rate 3%

Total Gross income Rs 1380000

Total tax liability

Tax deductions 120000

Housing Interest 120000

Life Insurance Premium 96000

PPF 80000

Fixed deposits 40000

MONTHLY EXPENSE DETAILS

Annual Income from Active work Rs 12 Lakhs

Source of this income Salary

Expected annual growth rate 8%

Income from other sources Rs 300000

Expected annual growth rate 3%

Total Gross income Rs 1380000

Tax deductions 120000

Housing Interest 120000

Life Insurance Premium 96000

 PPF 80000

Fixed deposits 40000

INVESTMENT DETAILS/ per year

Investment Portfolio Break Up Fixed deposit PPF

Investment details 400000 80000

Expected annual growth 6.75% 8.10%

Date of Maturity 1 year (2nd Dec 20) 5 years (2nd

dec 2024)

Is it a must keep No Yes

OTHER ASSETS

Non Investment Portflio Residence

& Real
Estate

Investment Details 85 lakhs

Rent 25000/
month

Is it must keep Yes

LOANS AND LIABILITIES & EMIs

Liability Break up Property Loan Others

Total Amount Taken 30 lakhs 2 lakhs

Present Balance 27 Lakhs 1 lakh

 EMI 25000 10000
(Instalments)-
No interest

Lender SBI Friends

INSURANCE

Insurance Break Up Life

Insurer Self

Start Date 1st Jan 2017

Maturity Date 2nd February 2042

Premium/Frequency 96000(yearly)

Maturity Value 3892000

Sum Assured 15 lakhs

QUESTIONS

1. Is Mr. Ram going on the right path in terms of his investments? If no, where can he
improve?
2. The data gathered about Ram explains that he has not started to invest in stock market or
mutual funds. Can risky funds be recommended to him if he is ok in bearing more risk.
3. What is his HLV at an expected, given (1) Expected rate of interest 8% (2) self maintenance
expenditure is Rs. 1,50,000 per year (2) Tax liability per year Rs. 3,50,000/-. Is his life
adequately covered ?
4. What can be a suitable wealth management plan for the next 10 years starting from
January, 2020 for Ram which includes insurance and retirement, given his present
profile? Given:-
a. He expects a return of 6.7% from Bank FD where he wants to invest after
retirement
b. Inflation rate is expected to be 3.7%
c. You can make your own justifiable assumptions on any other parameters, if any
missing

Other Information:

1. Return on his current insurance plan is likely to be around 6.25% p.a.

2. Term plan premium table for Mr. Ram for 35 year tenure

Sum Assure Premium

per year

Rs. 25 lakhs 4484

Rs. 50 lakhs 6277

Rs. 75 lakhs 8608

Every additional 25 lakhs will cost him additional Rs. 4100/- on premium every year.