Checking your Financial Health · Checking your Financial Health ... We would urge you to speak to your financial advisor to help you arrive ... Do you have enough Health Insurance

For Internal Use Only / Not for Distribution to the Public

Checking your Financial Health

An Investor Education & Awareness Initiative By Franklin Templeton Mutual Fund


© 2014 Franklin Templeton Investments. All rights reserved.

Are you aware about your cash flows? i.e. Your cash inflows and outflows



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Are your finances getting better or worse every year?



If your personal finances are getting…Better,

You are getting financially healthy!



But if your personal finances are getting…Worse

You should seriously start worrying

… Why?



Can you pay for your regular expenses without having any income?

So if your monthly expense is Rs 50,000/-

Your Contingency Reserve = Rs 50,000/- X 6* Months

(*The figures used are for illustration purpose only. We would urge you to speak to your financial advisor to help you

arrive at an appropriate number based on your risk profile )

It’s Time you built a ‘Contingency Reserve’

= Rs 3,00,000/-


Know the extent of your liabilities...

Do you have any loan?

If your monthly income is Rs 1,00,000/-

Ideally, Your EMI should not exceed 40%* of Rs 1,00,000/-

(*The figures used are for illustration purpose only. We would urge you to speak to your financial advisor to help you

arrive at an appropriate number based on your risk profile )

= Rs 40,000/-


• Increase in Interest Rates can increase* your EMI

• High monthly expense will lead to low savings

• If you choose to increase the loan tenure by keeping your EMI

the same

*In case you have opted for a floating rate loan

What Can Lead To Financial Risks?



Is Your Investment Portfolio Well Diversified?



Are You Overexposed To Equities?

Investment in Equity (%) = 100 – Your Age

The figures used are for illustration purpose only. We would urge you to speak to your financial advisor to help you arrive

at an appropriate number based on your risk profile

Your Age = 25 years

Investment in Equity (%) = 100 – 25

= 75%



Do You Have Enough Insurance Cover?

Your Life Insurance Requirement = Your Monthly Income X 12 Months X 10 times

The figures used are for illustration purpose only. We would urge you to speak to your financial advisor to help

you arrive at an appropriate number based on your risk profile

Do you have enough Health Insurance for you and your family?

If your monthly income is Rs 1 Lac

Your Insurance Requirement = Rs 1,00,000 X 12 X 10

= Rs 1.2 crore



How Do You Invest?

Lump sum or via Systematic Investment Plan (SIP)



Do You Monitor Your Investments Regularly


Some Key Takeaway Points

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• Know your cash flows and avoid making unnecessary expenses

• Create a contingency reserve of minimum 6 months and preferably 12 months

• EMI should not comprise more than 35-40% of your monthly income

• Diversify your investments

• Invest via Systematic Investment Plan vis-a-vis lump sum investment in equity


Some Key Takeaway Points

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• Monitor your investments regularly

• Have an adequate life insurance cover to financially protect your family

• Have an adequate health insurance cover for you and your family.

• Taking care of these small things with your finances can help keep you financially healthy


we now invite you to test your learning by taking up this simple quiz

(and win exciting prizes!)

Lets Do A Short Quiz!

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1) You should maintain a minimum contingency reserve of _____ months of your

expenses?

A. 1 Month

B. 3 Months

C. 6 Months

D. 12 Months

2) Your EMI should not exceed what percentage of your monthly salary?

A. 10%

B. 20%

C. 40%

D. 60%

Quick Quiz

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4) Recommended mode of regular investment in Equity is

A. SIP

B. Lump sum

5) You need to have an adequate life insurance cover to financially protect your

family.

A. False

B. True

Quick Quiz

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Thank You For Participating!

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Mutual Fund Investments Are Subject

To Market Risks, Read All Scheme

Related Documents Carefully.

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FTI PPT 4:3 01/14

Franklin Templeton Asset Management (India) Pvt. Ltd.

Indiabulls Finance Centre, Tower 2,

12th and 13th floor, Senapati Bapat Marg,

Elphinstone (W)

Mumbai 400013

Tel (91-22) 6751 9100

Fax (91-22) 6639 1281

www.franklintempletonindia.com

Caveat (Arial Narrow 10pt.)

http://www.franklintempletonindia.com/