What is Financial Planning

"Financial planning, I believe, is not exclusively about retirement planning or

investing or even portfolio management. If distilled to its purest elements, this

discipline is more accurately understood as one that involves applying guiding

principles to deal with our past, present and future finances.

Our past - because some of us may be carrying the baggage of yesterday's

excesses that are costing us our future happiness and financial well-being;

Our present - because now is the best time to act and change course toward a

better destination; and

Our future - because each of us is entitled to dream of a better tomorrow."

Individual Investor Needs

All individuals need to save for

� Retirement

� Child’s Education / Marriage

� Home / Car

� Other family obligation

Every individual has one or more of the above goals during some part of their life stages

Life Stage Planning

All individuals have finite period to save (generally, 25 to 60) to save for their investment goals.

Value of Money over time

Impact of inflation on monthly

expenses of Rs 30,000 @ 7%Value of Rs 100,000 over time

Retirement Planning

Retirement corpus required to meet

post retirement expenses. (If invested

@ 7% and inflation @ 5%)Monthly household expenses

@ 7% and inflation @ 5%)

`̀̀̀ 3.26 Cr

Child’s Education

Educational Degree

But I do save…. (or Do I Save?)

Money in Fixed Deposits 100,000

Add: Interest earned in 1 year (@ 9% pa) 9,000

Total 109,000

Less: Tax on interest (@30.9%) 2,781Less: Tax on interest (@30.9%) 2,781

Less: Impact of Inflation (@8%) 8,000

Value at the end of year 1 98,219

The Financial Planning Process

Why Financial Planning?

Step 1: Start Early: Cost of delayGeeta has two choices� Either earn on her investments @ 15% OR

� Save monthly Rs25,634

Difficult……Isn’t it?

Particular Seeta Geeta

Starts investing at the age (in years) 28 38

Monthly savings (in Rupees) 10,000 10,000

Returns expected from Bank Fixed Deposit 8% 8%

Both invest till the age of (in years) 58 58

Total Investment 3,600,000 2,400,000

Wealth Accumulated (in Rupees Lacs) 149.04 58.90 Difficult……Isn’t it?

Wealth Accumulated (in Rupees Lacs) 149.04 58.90

Step 2: Invest Systematically & Regularly

Date NAV (`̀̀̀) Units Amount (`̀̀̀)

2-Mar-09 190.47 52.5017 10,000

13-Apr-09 233.32 42.8596 10,000

11-May-09 252.50 39.6040 10,000

10-Jun-09 339.27 29.4750 10,000

10-Jul-09 307.21 32.5510 10,000

10-Aug-09 343.02 29.1528 10,000

10-Sep-09 375.56 26.6269 10,000

12-Oct-09 392.46 25.4803 10,000

10-Nov-09 392.76 25.4608 10,000

10-Dec-09 416.48 24.0108 10,000

11-Jan-10 439.79 22.7381 10,000

10-Feb-10 412.21 24.2595 10,000

Total 374.7205 120,000

Benefits of Rupee Cost Averaging:

Say you are investing Rs 10,000 every month from March 2009 to

February 2010 in a diversified equity fund.

Now check the average purchase cost per unit of your investments. It

would be lower than the average NAV of your investments over the past

12 months.

Average Cost = 120,000/374.7205 = Rs 320.24

Note: Past performance may or may not be sustained in the future.

The above table considers the actual NAV of a diversified equity fund to explain the

concept of Rupee Cost Averaging. The NAVs do not in any manner indicate the

future NAVs of any of the schemes

Why Financial Planning?

Step 3: Invest Long term

Money grows over a period of Time.

Rs 5000 invested at 8% p.a. compounded return instrument every month for

….just like a rolling ….just like a rolling

snowball gathers snow

an grows.

This is an hypothetical illustration taking example of a recurring deposit to explain the concept of ‘Power of

Compounding”.

Past performance may or may not be sustained in the future

After all, it’s your choice

Choice 1

� Simple, straightforward way to

create long term wealth

� Understand and embrace risk

� Put time to your side

Choice 2

� Invest in instruments which might

not beat inflation

� Select your stocks judiciously &

follow the market very closely� Put time to your side

� Invest systematically

� Don’t worry about market timing

� A tried & tested method

follow the market very closely

� Time your entry and exit very well

� Invest systematically

� And hope that you get it right

more often than not!

How can we help you?

� Prudent Partners is a boutique firm started by first generation entrepreneurs –

Vivek Damani, CFPCM & Vijay Dalmia, CFPCM, LUTCF

� The object of this firm is to manage relationships with the assistance of external

intermediaries and provide products and services through structured serviceintermediaries and provide products and services through structured service

oriented architecture

� It boasts of highly successful strategic advisors comprising of professionals

bringing with them relevant domain knowledge and global best practices to help

relationships with their financial management

About Prudent Partners

� Prudent Partners is a boutique firm started by first generation entrepreneurs – Vivek

Damani, CFPCM & Vijay Dalmia, CFPCM, LUTCF

� The object of this firm is to manage relationships with the assistance of external� The object of this firm is to manage relationships with the assistance of external

intermediaries and provide products and services through structured service oriented

architecture

� It boasts of highly successful strategic advisors comprising of professionals

bringing with them relevant domain knowledge and global best practices to help

relationships with their financial management

Our Vision

To be a leading financial services provider backed by superior advisory capabilities

for discerning clients

This we hope to achieve by:

� Building long term relations with our clients

� Understanding the needs of the clients & offering them

independent and unbiased advice

� Leveraging technology to service clients quickly, efficiently

and conveniently

� Building transparency in all our dealings

The success of the company will be built by its unwaivered commitment to the five core

values –

C l i e n t F i r s t C o n f i d e n t i a l i t y

I n t e g r i t y Tr a n s p a r e n c y

P a s s i o n

Our Unique Proposition

� Professionally qualified team of

Financial Planners guiding and

mentoring the Firm

� Wide range of product suite available

to offer you the ones which suits your

� Focus on service centric architecture

rather than product push

� Strategic, flexible and adaptable service

� Maximum use of technology to serviceto offer you the ones which suits your

specific needs

� Independent & objective financial

advice

� Strategic planning, sourcing &

implementation capabilities

� Experience & stability

Maximum use of technology to service

you quickly, efficiently and conveniently

� Creative solutions to financial challenges

Thank YouThank YouThank YouThank You

Disclaimer

� This document constitutes neither an offer nor solicitation to purchase or sell securities or any otherfinancial instruments.

� The views constitute only the opinions and do not constitute any guidelines or recommendations on anycourse of action to be followed by the readers. This information is meant for general reading purpose and isnot meant to serve as a professional guide for the readers.

� This document has been prepared on the basis of publicly available information, internally developed dataand other sources believed to be reliable. The Partners, employees, affiliates or representatives do notassume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of suchassume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of suchinformation. Whilst no action has been solicited based upon the information provided herein, due care hasbeen taken to ensure that the facts are accurate and opinions given are fair & reasonable.

� The recipient is requested to take into consideration all the risk factors including their financial condition,suitability to risk-return profile, and take professional advice before contracting with Prudent Partners.

� None of the Partners, employees, affiliates or representatives shall be liable for any direct, indirect, special,incidental, consequential, punitive or exemplary damages including loss profits arising in any way from theinformation contained in this material.

� The illustrations give herein should not be construed as a promise, guarantee on or a forecast of anyminimum returns. We at Prudent Partners does not assure any safeguard of capital and the illustrated returnsare not necessarily indicative of future results and may not necessarily provide a basis for comparison withother investments.

� This presentation is not for public distribution and has been furnished solely for information and must notbe reproduced or redistributed to any other person. Persons into whose possession this document may comeare required to observe these restrictions. No part of this material may be duplicated in any form and/orredistributed without Prudent Partners’ prior written consent.