In today’s world, we have a plethora of investment options including Bank Deposits, Postal Deposits, Gold, Mutual Funds, Real Estate, Stock Markets, Commodities and even financially savvy people struggle to make the right choice. Adding to this complexity is the challenge of making the right allocations to these asset classes, choose the right products within the asset class and the right options.
For example, if you decide to invest in Real Estate, don’t the following questions arise in your mind?
- Should I invest in Land? Or
- Should I invest in an Apartment? Or
- Should I invest in an Independent house, as each of these has its own pros and cons?
Similarly if you plan to invest in Mutual Funds, the questions that arise are:
- Should I invest in Equity Funds? Or
- Should I invest in Debt Funds? Or
- Should I invest in Balanced Funds?
and each of these have several categories under them like, an equity fund could be a Large-Cap or Multi-Cap or Mid-Cap or Small-Cap and so on. Further, these funds have options like Growth, Dividend Re-Investment, and Dividend Pay-out.
Another situation that we typically face is investing money in Fixed Income products triggering the following questions:
- Should I invest in Bank FDs or Recurring Deposits? Or
- Should I invest in Post Office Deposits? Or
- Should I invest in Corporate Deposits? Or
- Should I invest in Government Bonds?
Let’s look at the priorities of Rajesh, Veena & Anand. Like them, each one of us have financial commitments & priorities in life:
Rajesh is an IT professional earning a monthly take home salary of Rs. 1 lakh/month and having monthly household expenses of Rs. 40,000/-. Rahul has purchased a 2 bedroom flat and pays a monthly EMI of Rs. 30,000/-, invests Rs. 25,000/- in Bank Recurring deposits that earns a return of 8% per annum and has purchased a LIC money back policy that has a sum assured of 10 Lakhs for which he pays Rs.5,000/- premium per month.
With Consumer Price Inflation at about 8% –
- Has Rajesh chosen the right options to save? His post tax return from the Bank Recurring Deposit works out to 5.6% since his marginal IT rate would be 30%
- Will a meager Insurance policy of 10 Lakhs provide adequate cover for Rajesh’s family?
Rajesh has the following Financial Goals:
- Buy a second home – a larger 3 bedroom flat costing Rs. 50 Lakhs, in today’s value, in the next 5 years
- Plan an international vacation to Singapore, costing 1.25 Lakhs, in today’s value, in the next 3 years
- Professional education for his 3 year old daughter costing 15 Lakhs, in today’s value, in the next 15 years
- Wedding of his daughter costing 25 Lakhs, in today’s value, in the next 20 years
Is Rajesh saving enough and using the right investment options to achieve his financial goals?
Veena, marketing manager of a FMCG company wants to retire early from her current employment and pursue her passion of photography. The questions that linger in her mind are:
- Have I saved enough to take care of my family needs as my passion will not provide me a regular income stream?
- How long should I continue with the current employment before opting to pursue my passion?
- Is my current portfolio and asset allocation right?
Anand, production manager in an electronics firm is nearing retirement and has a different set of challenges to deal with:
- The prices of Food, Medicare, Education, Transport etc. are increasing day by day. In such a scenario –
- Will I outlive the retirement corpus that I have created?
- Should I start looking for alternate employment opportunities to augment my cash flow?
- Am I too conservative, investing in only Debt and should I start looking at a small portion in equities to overcome the threat of Inflation?
At PenguWIN, we have embarked on this journey of “Financial Planning and Wealth Management” to make this decision making process simpler and easier for you. We assure our active involvement in helping your financial assets grow significantly so that you can have peace of mind, and time to focus on other priorities.
Our objective is to offer genuine and sincere advice and build a long term fruitful relationship with you and help you attain *Financial Freedom.
We assure to offer professional and high quality financial advice that is not based on the incentives that are offered by the product makers, which is quite prevalent in this business, but aligned to your specific needs. For example, most of the mutual fund new fund offers (NFOs) provide attractive incentives to advisors, while we stay clear of NFOs unless there is an innovative offering that truly benefits you (which is a very rare case). We feel that this is the only way a true and long standing partnership can be developed with you.
We believe that we have mastered the art of Financial Planning and Investments, which we have successfully implemented and tested in our own lives and want you (our esteemed clients) to genuinely benefit from our experience in building wealth.
Our expertise ranges from Planning & Advisory and Execution assistance in Mutual Funds, Company Deposits, Government Bonds to Gold, Real Estate, Individual Income Tax and Estate Planning
* Financial Freedom – Building sufficient sum of money (corpus) and making prudent investments that can cater to all the financial requirements for the rest of the Life
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