Dipankar Das is 28 years old and works in a public sector company in Kolkata. His monthly salary is Rs 43,491 and he has a government residence. She is unmarried and plans to get married by next year, with her parents willing to pay for her wedding. His portfolio of Rs 23.1 lakh includes cash of Rs 60,000, equity of Rs 6.3 lakh in the form of mutual funds and stocks, debt of Rs 8.1 lakh. PPF, Fixed Deposit and Sleep Bond. His goals include building an emergency fund, buying a car and a house, taking a vacation and being saved For retirement. However, given their limited investible surplus, they would have to give up their goals of buying a car and taking a vacation. He can consider these after his marriage, depending on whether his spouse is earning or not and the joint goals that both of them decide at that time.

portfolio

cash flow

NS Financial Planning The Fincart team has calculated an emergency fund of Rs 1.52 lakh, which is equivalent to six months’ expenses. For this he has to allocate a part of his cash and fixed deposits, and this should be invested in ultra short term or money market funds.

Das wants to buy a house worth Rs 85.4 lakh in nine years. He wants to deposit a 50% down payment of Rs 42.7 lakh and fund the remaining amount through a home loan. To achieve this target, they will have to allocate their balance fixed deposits of Rs 5.85 lakh and also start an SIP of Rs 14,036 in diversified equity funds.

how to invest for goals

Das needs Rs 7.75 crore for retirement in 32 years and can allocate his stocks, mutual funds, PPF and gold bonds. Apart from allocating these resources, he will have to start an SIP of Rs 11,247 in a diversified equity fund. However, due to lack of surplus, he can start with Rs 10,000 for now and increase it to the required amount after increasing his income. This will help him to achieve the target in stipulated time.

insurance portfolio

Das has no life or health insurance of his own. When it comes to life insurance, one should buy a term plan of Rs 1 crore, which will cost him Rs 2,154 in monthly premium. For health, he has a plan of Rs 4 lakh provided by his employer. Fincart suggests that he buy a basic health plan of Rs 5 lakh and a top-up plan of Rs 20 lakh for which he will have to spend Rs 875 in monthly premium. He can convert it into a family floater plan after marriage to include his spouse.

Financial Planning by Fincart

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