ArthaYantra

Financial Life Management Advisors

Mr. Abhishek Mathur & Family

December-2016

LIFE TIME IMPACT 2,95,70,040 SAVINGS INCREASE 26,973

Emergency Fund
Retirement
Shreeya Higher Education
Shreeya Marriage

Emergency/Risk Coverage Medical Insurance

Personal Accident
Term Insurance

Financial Kautabh Singh Fulfillment Sneha

Planner (CFP) Specialist Next Review
Jun-2017
3 Things You Should Continue 11 Things You Should Act On Now
1 Congratulations! Your Loans/Debt is at
reasonable level! 1 Reduce Your Non-essential expenses to improve your savings by Rs.
96,638

2 You Invest in Mutual Funds! That's a good

place to make more returns than Inflation! 2 Get Better Returns By Realigning Your Existing Insurances Impact
Rs.55,895

You have Pure Term Insurance Policies that

3 gets You Optimal Coverage and lowest
Cost. Congratulations!
3 Do Not Invest Your Money In Low Return Yielding Fd,Rds,Savings
Accounts Potential Impact Rs. 1,35,838

4 Restructure Existing Loans To Save More Rs. 3,43,342

5 Realign Your Existing Portfolio To Get Good Returns At Much Lower

Risk

6 Build An Emergency Fund of Rs. 3,00,000 for emergenecies and

Keep it in Money Market to get Better Returns.

7 Buy Recommended Insurances to cover Yourself and Your Family

from Uncertainities

8 Open Your Goal Enabler Mutual Fund Investment Account

9 Make One Time Investment in Your Custom Built LONG TERM

MODERATE Portfolio to reach Your Goals!

10 Initiate Your Monthly Investments via SIP in your Custom Built Vs

NIFTY Performance Portfolio

11 Review and Realign Your Financial Plan in 6 months

 ARTHAYANTRA FINANCIAL PLANNING FRAMEWORK

1 Increase Your Cash

Surplus 2 Invest It Right
3 Reach Your
Goals

Reduce Unwanted Expenses

Free up Bad Financial
Investment
FD/RD Analysis
Insurance Analysis
Loan Analysis

Tax Analysis

1
1 INCREASE YOUR CASH SURPLUS

Reduce Unwanted Expenses

Free up Incorrect Financial Investment
Savings Instruments Analysis

Insurance Analysis

Loan Analysis

MF/Equity Analysis
Tax Analysis

1.1
1.1 GET BETTER RETURNS BY REALIGNING YOUR EXISTING INSURANCES

WHY ENDOWMENT/MONEYBACK/ULIP INSURANCES

Your Current Investment In Insurance 57,453 ARE A BAD BUY
Current Recommended 1 Effective Returns Are Low:
X Money Bank/Endow: Money doubles in 15 yrs, while Inflation reduces
value to 1/3. Net Result: Negative Return
10,37,613 X ULIP Policies 1st 5 years ~6% is deducted as charges!. You Need to
R
E get 15%+ Returns just to save the premium
T
U 7,56,000 2 Coverage/Premium Ratio is too Low:
R X Endow/Money back: ~15-20X of annual premium
N X ULIPs: ~10X of annual premium
X Pure Term:: ~75X of annual premium

IF YOU CONTINUE ARTHAYANTRA RECOMMENDATION

POLICY PREMIUM Value@Maturity % NET FUND % NET RECOMMEND
TYPE POLICY NAME TERM PREMIUM /Cover RETURN VALUE RETURN NET GAIN ATION
Endow Jeevan Anand 15 7,818 1,76,000 4.92% 2,60,724 9.47% 84,724 Surrender
Endow Jeevan Mitra 20 10,567 4,00,000 5.75% 5,72,786 8.77% 1,72,786 Surrender
Endow The Endowment Assurance Policy 10 7,687 1,80,000 5.56% 2,04,104 6.39% 24,104 Surrender
Pure Term increasing cover + accidental benefit 20 15,333 1,25,00,000 Continue
Pure Term Click 2 C 25 16,048 10,00,000 Continue

Monthly Cash Increase 1,532 Investable Surplus Increase 55,895

1.2
1.2 DO NOT INVEST YOUR MONEY IN LOW RETURN YIELDING FD,RDS,SAVINGS ACCOUNTS

MONEY MARKET VS SAVINGS/FD/RD

RETURN COMPARISON WHY MONEY MARKET WINS ANYDAY!

INVESTED AMOUNT AY Recommendation

FIXED RECURRING MONEY AY
1,00,000 SAVINGS
DEPOSIT DEPOSIT MARKET PORTFOLIO 1. Higher Returns: Over 10 yrs ~50% more
returns than Savings, FDs/ RDs.
INVESTEMENT PERIOD IN YEARS 5 5 5 5 5
2. Liquidity As Good As Savings!
PAYMENT FREQUENCY 1 1 12 1 1 Encash within 12-24 hrs. No Locking or
ANNUAL INTEREST RATE 3.5% 7.5% 7.5% 8.8% 12.0% penality
INTEREST AMOUNT EARNED 19,034 44,995 13,271 52,456 76,234 3. Low Taxation: FD/RD/Savings ~31%
TAX (%) 20% 20% 20% 0.4% 0.0% tax/annum on interest! Money Market
individual pays indexation adjusted capital
TAX AMOUNT 3,807 8,999 2,654 210 0 gain tax of approximately 4-5%.
MATURITY AMOUNT AFTER TAX 1,15,227 1,35,996 1,10,617 1,52,246 1,76,234
4. Low Risk: Money Market invests in
% RETURN AFTER TAX 2.9% 6.3% 2.0% 8.8% 12.0% Government bonds backed by Gov Of India.
INFLATION 7% 7% 7% 7% 7%
INFLATION ADJ RETURN -11,916 -2,960 -2,960 9,141 27,628
AY RECOMMENDS
Invested Tax Adj Recommendation Return Eff Return Net Gain
Type Institute Amnt Tenure Return Return*
Other Sources 2,00,000 5 3.50% 2.80% Invest Now In AY Portfolio 12.00% 11.60% 1,22,856
PPF SBI 1,000 15 8.70% 8.70% Pay Min Amnt 0.00%
Fixed Deposit Citizen bank Nahik 1,70,000 2 8.25% 6.60% Invest Now In AY Portfolio 12.00% 11.60% 12,361
Fixed Deposit Cosmos Bank 20,000 3 8.00% 6.40% Invest Now In Money Market 8.80% 8.44% 621

* Effective return post tax, penalty implications TOTAL GAIN 1,35,837

Monthly Cash Increase- Investable Surplus Increase 3,93,031
1.3 RESTRUCTURE EXISTING LOANS TO SAVE MORE

ArthaYantra Recommendation
Effective Effective
Outstanding Remaining Charges If Net Savings Net Savings
Loan Type
Amount
Interest
Tenure
Opportunity
Any* (Annual) (Tenure)
Recommendation
Rate Rate*
Home Loan 27,67,554 8.40% 200 7.4% 13,838 19,255 3,43,341 Refinance

Total 19,255 3,43,341

*Values are approximate

Monthly Cash Increase 1,605 Investable Surplus Increase 0

1.4 REALIGN YOUR EXISTING PORTFOLIO TO GET GOOD RETURNS AT MUCH LOWER RISK

Mr. Abhishek Current Asset Allocation Long Term Moderate

Asset Type Allocation Large Cap 15%

Large Cap 40% Mid Cap 15%
Mid Cap 5% Index 25%
Small Cap 25% MidTerm Corp Bond 15%
GILT 10%
Commodities 5%
ShortTerm Corp Bond 15%

Performance Indicator Value

No Instruments Amount 4% 1 Yr Return 15%
1 Equity 18% 3 Yr Return 22%
2 Mutual 7,74,203 14% 5 Yr Return 19%
Total 7,74,203 18.31% Riskiness 9.11%
-0.11 Sharpe 0.92
1.63 Sortino 1.34
* Asset Allocation Only for Mutual Fund that we were able to 18.73 Alpha 7.99
Classify
1.08 Beta 0.48

WHY DIVERSIFICATION IS MORE IMPORTANT THAN STOCK/MF PICKING WHY WE DIRECTLY NOT INVEST IN EQUITY

Monthly Cash Increase 0 Investable Surplus Increase 7,74,203

1.5
1.5 TAX OPTIMIZATION

Linked
Shortfall To
No Area Max Limit Cover Recommendation Where
1 Section 80 C 1,50,000 15,000 Buy Term Insurance as per plan
Section 80 D (
2 Self) 25,000 23,500 Buy Medical Insurance as per plan bimadirect.com
Section 80 D (
3 Parents) 30,000 23,400 Buy Medical Insurance for Mother and Father bimadirect.com

4 Section 80 CCD 50,000 50,000 Invest in NPS as per provided asset allocation arthayantra.com

5 Section 24 B 2,00,000 0 Already Covered arthayantra.com

6 Section 80 E

Monthly Cash Increase 0 Investable Surplus Increase 22,380

1
1 SUMMARY : INCREASE YOUR CASH SURPLUS

Monthly Cash Investable Surplus

Increase Increase
Existing Monthly Savings 16,432

Reduce Unwanted Expenses 8,053

Free up Incorrect Financial Investment

Savings Instruments Analysis - 3,93,031

Insurance Analysis 1,532 55,895

Loan Analysis 1,605 0

Existing MF/Equity Analysis 0 7,74,203

Tax Analysis 22,380

TOTAL Cash Freed Up 27,622 12,45,510

Risk Management Investments

Emergency Fund Portfolio Creation
Insurance

s

Goals
Fulfilment
2 RISK MANAGEMENT

1 Increase Your Cash

Surplus 2 Invest It Right
3 Reach Your
Goals

Reduce Unwanted Expenses

Free up Bad Financial
Investment

FD/RD Analysis
Insurance Analysis
Loan Analysis
Tax Analysis
2.1 Secure Your Present: Build An Emergency Fund, Buy Pure Term Coverage, Health Insurance and Critical
Illness

1 Emergency Fund Requirement

90% of Indians are not equipped to handle emergency situations be it medical, personal or professional. ArthaYantra Recommends to keep
3- 6 months of Expense Requirement in liquid Money Market Fund so that a) its easily available and b) You earn reasonable 8-9% returns

Recommended Amount 3,00,000

Recommended Fund ABC Floating Rate Fund Short Term Plan

Money Market Fund Comparison Chart

Fund Name 1 Yr Return Riskiness Sharpe Sortino
ABC Floating Rate Fund - STP 8.80% 0.53 3.53 3.99 AY Recommends
XYZTreasury Advantage Fund 8.52% 0.51 3.41 4.09
DEF treasury Advantage 7.80% 0.72 2.41 3.72

2 Insurance Requirement
Recommended
Insurance Type Insurance For Tenure Covered Priority
Coverage
Term Insurance Mr. Abhishek 3,00,00,000 25

Mrs Smithi
Wife of Mr. Kunal (ArthaYantra
Customer)

3
3 INVEST IT RIGHT : PORTFOLIO CREATION

1 Increase Your Cash

Surplus 2 Invest It Right
3 Reach Your
Goals

Reduce Unwanted Expenses

Free up Bad Financial
Investment
FD/RD Analysis
Insurance Analysis
Loan Analysis

Tax Analysis
3.1 LONG TERM MODERATE : YOUR CUSTOM BUILD RECOMMENDED PORTFOLIO BASIS YOUR
RISK PROFILING AND GOALS

Risk Profile Moderate Portfolio Long Term Moderate

RECOMMENDED ASSET ALLOCATION KEY METRICS AY NIFTY

Large Cap 15% 1 Yr Return 0.15194 0.1055 1 Yr Return 15.2% 10.6%
Mid Cap 15% 3 Yr Return 0.21671 0.1763 3 Yr Return 21.7% 17.6%
Index 25% 5 Yr Return 0.18524 0.1633 5 Yr Return 18.5% 16.3%
MidTerm Corp Bond 15% Riskiness 0.09111 0.1796 Riskiness 9.1% 18.0%
GILT 10% Sharpe 0.9158 0.197682 Sharpe 0.9 0.2
Commodities 5% Sortino 1.344 0.3063 Sortino 1.3 0.3
ShortTerm Corp Bond 15% Alpha 7.99 Alpha 8.0 0.0
Beta 0.48 1 Beta 0.5 1.0

LUMPSUM AMOUNT TO BE INVESTED 13,32,166 LONG TERM MODERATE

MONTHLY INVESTMENTS (SIP) 20,717 Vs NIFTY Performance
Asset Class Fund One Time SIP
Large Cap ACB Large cap 1,99,825 3,107

Mid Cap DEF mid cap 1,99,825 3,107

Index XYZ Index 3,33,042 5,179

MidTerm Corp Bond DIQ Mid term corp bond 1,99,825 3,107

GILT bise Gilt fund 1,33,217 2,072

Commodities XYZ gold fund 66,608 1,036

ShortTerm Corp Bond Uim Short term corp bond 1,99,825 3,107

Total 13,32,166 20,717

3.1 CONGRATULATIONS! YOUR 4 OUT OF 4 GOALS ARE ACHIEVABLE.

Money Required Linked

Priori Current Future One Time Investment/ Monthly Investment
Goal Year Status
ty Value Value Linked Assets Investment Type
Money
1 Emergency Fund 2016 3,00,000 3,03,766 3,00,000 Market Achievable

2 Retirement 2044 6,00,000 3,21,88,898 3,39,166 13,473 AY Portfolio Achievable

3 Shreeya higher Education 2029 5,00,000 56,09,097 3,43,000 AY Portfolio Achievable

4 Shreeya Marriage 2032 5,00,000 12,70,176 3,50,000 AY Portfolio Achievable

Total Value 19,00,000 3,93,71,936

4
THE CHEAT SHEET - Your Ready Reckoner of To Do's !
Take a Print ! Act On IT ! Stick to
the Plan !

Name Mr. Abhishek Age 35 Planing For Individual

Personal Financial Planner Kautabh Singh (CFP) Fulfillment Specialist Sneha

Potential Impact 0 Insurance Coverage 3,00,00,000 Goals Achievability 4/4

Way to success is not just to plan but to act on it !

Why What Money In/Out Where When Status
Save Reduce Your Non-essential expenses to improve your savings by Rs.
More 96,638 96,638

Save Get Better Returns By Realigning Your Existing Insurances Impact Rs.
More 55,895 55,895

Save Do Not Invest Your Money In Low Return Yielding Fd,Rds,Savings

More Accounts Potential Impact Rs. 1,35,838 1,35,837 arthayantra.com

Save
More Restructure Existing Loans To Save More Rs. 3,43,342 3,43,341 arthayantra.com

Save
More Realign Your Existing Portfolio To Get Good Returns At Much Lower Risk 7,74,203 arthayantra.com

Secure Build An Emergency Fund of Rs. 3,00,000 for emergenecies and Keep it in
Present Money Market to get Better Returns. 3,00,000 arthayantra.com

Secure Buy Recommended Insurances to cover Yourself and Your Family from
Present Uncertainities
Build
Future Open Your Goal Enabler Mutual Fund Investment Account arthayantra.com

Build Make One Time Investment in Your Custom Built LONG TERM MODERATE
Future Portfolio to reach Your Goals! 13,32,166 arthayantra.com

Build Initiate Your Monthly Investments via SIP in your Custom Built Vs NIFTY
Future Performance Portfolio 20,717 arthayantra.com

Review and Realign Your Financial Plan in 6 months

APPENDIX A: INSURANCE CALCULATIONS
ULIP Insurance Analysis

POLICY ISSUER ICICX

POLICY NAME Pru

ISSUED ON 29-Nov10

PREMIUM 65,000

INVESTMENT TILL DATE 0

LESS COMMISION 4,528

LESS MORTALITY CHARGES 283

NET INVESTMENT -4,810

FUND VALUE 66,352

% EFFECTIVE RETURN 0.34%

ENDOWMENT Insurance Analysis

Policy Issuer LID LID LID

Name of policy Jeevan Anand Jeevan Mitra The Endowment Assurance Policy

Policy Term 15 20 20

Commencement Date Feb-2014 Jan-2011 Mar-2006

Premium 7,818 10,567 7,687

Premium Term 15 20 10

Sum Insured 1,00,000 2,00,000 1,00,000

Invested so far 23,454 63,402 76,870

Reversionary Bonus 50 50 40

Final Additional Bonus 10 0 0

Maturity Value 1,76,000 4,00,000 1,80,000

Return % 4.92% 5.75% 5.56%

Paid Up Money Back 35,000 1,20,000 1,40,000

Paid Up and rest premium in
Recommended Portfolio 2,40,935 4,88,348 1,40,000

Return % 8.57% 7.44% 3.90%

Surrender Value 14,063 41,832 65,716

Surrendar & Invest in AY
Portfolio 2,60,724 5,72,786 2,04,104

Return % 9.47% 8.77% 6.39%

APPENDIX B: MUTUAL FUND ANALYSIS

Sharpe Sortino
RECOMMENDED MUTUAL FUND 1 Yr Returns 3 Yr Returns 5-Year Return Standard Deviation
Ratio Ratio Beta Alpha
ACB Large cap
DEF mid cap
XYZ Index
DIQ Mid term corp bond
bise Gilt fund
XYZ gold fund
Uim Short term corp bond

Sharpe Sortino
YOUR MUTUAL FUND 1-Year Return 3-Year Return 5-Year Return Standard Deviation
Ratio Ratio Beta Alpha
Birla Sun Life Infrastructure Fund 1.06 19.99 14.14 21.05 0.97 1.29 1.31 11.66
Edelweiss Mid and Small Cap Fund 4.01 30.1 23.88 19.06 1.46 1.95 1.14 20.17
Franklin India High Growth Companies Fund 3.86 25.51 22.43 16.89 1.3 1.91 1.07 14.69
Franklin India Smaller Companies Fund 12.8 33.95 29.06 15.9 1.94 2.24 0.97 24.29
ICICI Prudential Exports and Other Services Fund -2.63 21.01 24.27 14.04 1.31 1.53 0.43 15.45
Reliance Small Cap Fund 6.11 37.43 28.24 22.31 1.62 1.98 1.16 28.4
SBI Bluechip Fund 6.29 19.75 18.28 12.73 1.31 1.58 0.88 10.81
SBI Magnum Midcap Fund 9.02 30.93 27 14.86 1.99 1.96 0.82 24.03

APPENDIX C: FIXED INCOME ANALYSIS

Citizen bank
Nahik Cosmos Bank
Bank Other Sources Fixed Deposit Fixed Deposit

Start Date 21-Jul16 31-Mar16

Amount 2,00,000 1,70,000 20,000

Interest Rate 3.50% 8.25% 8.00%

Post Tax Return 2.80% 6.60% 6.40%

Tenure (Years) 5 2 3

Amount Received at Maturity 2,29,613 1,93,780 24,197

Invest Now In Invest Now In Invest Now In

RECOMMENDED ALTERNATE
AY Portfolio AY Portfolio Money Market

Amount Value as of today 2,00,000 1,73,506 20,808

Less Breaking Charge (1%) 0 425 100

Less Tax @20.0% 0 616 142

Net In Hand 2,00,000 1,72,465 20,566

Expected Return 12.00% 12.00% 8.80%

Net Tax 0.40% 0.40% 0.36%

Value at Maturity for Alternative 3,52,468 2,06,141 24,817

Net Gain 1,22,856 12,361 621

ArthaYantra Mission 2016

Make 1,00,000 Indian Family's Future Financially Secure

Fact Sheet
Users Served 120000+
In 600+ Cities
in 30+ Countries
90% of Users On Track to Achieve Their Goals
64% of Our Customers Refer Us

Arthayantra Corporate Pvt Ltd

Address: 3rd Floor, Sai Galleria, Plot No., 472, Rd
Number 36, Aditya Enclave, Venkatagiri, Jubilee
Hills, Hyderabad, Andhra Pradesh 500081
Phone:040 6658 8259
Arthayantra Corporate Pvt Ltd
Address: 3rd Floor, Sai Galleria, Plot No., 472, Rd
Number 36, Aditya Enclave, Venkatagiri, Jubilee
Hills, Hyderabad, Andhra Pradesh 500081
Phone:040 6658 8259