Frequently Asked Questions

What is financial Planning?

Financial Planning is the process of comprehensive evaluation of an investor’s current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans. A financial plan is a road map to help you achieve your life’s financial goals.

Why do you need a financial plan?

A wise man once said “if you fail to plan you plan to fail”. A financial plan will create a pathway for you to follow to achieve your financial goals and enjoy the gift of life without constantly worrying about money. In today’s consumption oriented globalised life style not following a financial plan can very quickly put you in debt trap ruining your financial health.

Can I do my own financial planning?

Of course, you can do you own financial planning if you have the knowledge about the subject. However the fact is the most of us have neither been taught about money in school nor at home so our knowledge about the same is fairly limited. Further more since this is one of the most important things in your life it better to err on the side of caution and hire a professional financial planner.

What percentage of income should be saved?

The percentage of savings by an individual depends on a variety of factors and so there is no fixed rule. Savings should be based on the financial goals an individual is trying to achieve. Excluding the super rich most of us mere mortals have goals like marriage, buying a house, taking vacations, retirement etc and savings should be done so that these goals are met. Even in extreme cases no less than 10% of ones earning should be saved.

I can hardly meet my monthly expenses how can I save?

In most cases you will be surprised at the amount of money you can save by carefully planning your expenses. Once a cash flow is prepared most financial planners will help you in cutting down wasteful expenditures. In our experience and as highlighted in the book ‘Richest Man in Babylon’ we can save at least 10% of our income without making significant changes to our life style.

How often should I update the plan?

It is good to review the plan when there is a lifestyle change such as marriage, birth, death or divorce. Any change in financial position should be evaluated as well. Most people have an annual update that reviews how the plan is being implemented. The review also considers changing goals and circumstances.

What is KYC?

KYC is an acronym for Know your Client, a term commonly used for Client Identification Process. SEBI has prescribed certain requirements relating to KYC norms for Financial Institutions and Financial Intermediaries including Mutual Funds to know their Clients. This is in the form of verification of identity and address, providing information of financial status, occupation and such other demographic information. Applicant must be KYC compliant while investing with any SEBI registered Mutual Fund.