PERSONAL INFORMATION

NAME: Harpreet Singh Sabherwal

AGE: 25

LOCATION: Delhi NCR

QUALIFICATION: MBA (Finance), Passed CFA Level 3

OCCUPATION: Financial Analyst

EMPLOYER: ICICI Securities Ltd.

EXPERIENCE: 30 months (2.5 years)

SALARY (MONTHLY): Rs. 1,15,000

NO. OF DEPENDENTS: None

MARITAL STATUS: Single

CHILDREN: None

ASSETS AND INVESTMENTS:

i. Senior Citizen Health Insurance Plan (Sum Insured Rs 20,00,000/-)

ii. Savings Account (Balance Rs 3,00,000)
iii. Fixed Deposit ( Value Rs 7,50,000)
iv. Car (Remaining Useful Life 3 years )
v. Ancestral Property (worth 3.5 Crore approx.)

FINANCIAL LIABILITIES: Nil

MONTHLY EXPENSES: Rs 75,000 (Inclusive of Income Tax )

SAVINGS PER MONTH: Rs 40,000

LIFE EVENTS AND FINANCIAL NEEDS IN NEXT 5 YEARS

EVENTS AMOUNT REQUIRED

VEGAS TRIP Rs 3,00,000

MBA EXECUTIVE (3 years from now) Rs. 30,00,000
NEW CAR (Low-priority) Rs 20,00,000

INVESTOR PROFILE: CONSERVATIVE/ RISK-AVERSE

SOURCE: HSBC INVESTOR RISK PROFILE SIMULATOR

LINK: https://www.hsbc.fr/1/2/hsbc-epargne-salariale/en/employee/simulator/investor-
profilehttps://www.hsbc.fr/1/2/hsbc-epargne-salariale/en/employee/simulator/investor-profile

SELECTING SINGLE INVESTMENT INSTRUMENT

 (A) LISTING INSTRUMENTS FOR FINANCIAL NEEDS
FINANCIAL NEEDS INVESTMENT INSTRUMENTS

VEGAS TRIP SAVINGS ACCOUNT

MBA EXECUTIVE RECURRING DEPOSITS
NEW CAR LOAN

(B) RISK- RETURN OF RECURRING DEPOSIT (2016-2020)

RISK AND RETURN OF RECURRING DEPOSIT

YEAR ENDING INTEREST RATE (%)

2016 8.5
2017 8.5 STD DEVIATION 0
2018 8.5
2019 8.5
2020 8.5

FEATURES OF RECURRING DEPOSIT:

i. Recurring deposit interest rates, once determined, do
not change during the tenure of the deposit. 
ii. Penalty charges for non-Deposit of monthly instalments for a/c with maturity period 5
years and less Rs. 1.50 per Rs. 100/- per month.

iii. In case six consecutive instalments are not received, the account shall
prematurely be closed and balance paid to the account holder.
iv. Loans/OD up to 90% of deposited amount available.

v. Form 15G/H can be submitted by the Depositor to get exemption from tax deduction as
per Income Tax Rules.

(C) FORECAST FOR FUTURE

 CHANGE IN INTEREST RATE

YEAR ENDING INTEREST RATE (%)

2016 8.5
2017 7.75
2018 7.7
2019 7.6
2020 6.7

FORECASTING FOR FUTURE

2021 * 6.575
2022 6.575
2023 6.575
2024 6.575
2025 6.575

*) Forecasting of interest rate for year 2021 has been done using the Forecast formula in excel,
based upon the historical interest rates of previous five years.

SELECTING THE MUTUAL FUND

A) NAME: KOTAK DYNAMIC BOND FUND

B) FEATURES:

I. INVESTMENT OBJECTIVE:- The investment objective of the Scheme is

to generate returns by investing in money market instruments having maturity
upto 1 year.
II. SUITABLITY: This product is suitable for investors who are seeking Income
over a short term investment horizon Investment in money market securities
III. FUND MANAGER: Mr. Deepak Agrawal is the fund manager of the scheme.
He has been managing the fund since July 11, 2007. Mr. Arjun Khanna is
appointed as the dedicated fund manager for investments in foreign securities.
IV. NAME OF THE TRUSTEE COMPANY: Kotak Mahindra Trustee
Company Limited.
V. BENCHMARK INDEX: Nifty Composite Debt Index.
 VI. AMOUNT OF AUM: Rs. 925.50 Crores
VII. INVESTMENT STRATEGY: The investment strategy is aimed at maximising
returns through an active management of a portfolio of debt and money market
securities. The Fund Manager would endeavour to manage the portfolio actively
among debt securities such as Government Securities, Corporate Bonds and
Money Market instruments depending on the view on the interest rates and
corporate spreads. In order to be able to churn the portfolio actively, focus
would be on investing in securities having high liquidity. The Scheme returns
consist of the returns on account of coupon accrual and capital gains.

C. LIST OF INDUSTRIES INCLUDED IN MUTUAL FUND

Sector % to
NAV
Financial Services 47.06
Government Sector 36.35
Telecom 7.69
Services 5.73
Net Current Assets 2.40
Collateralized Borrowing and Lending Obligation/ 0.64
Reverse Repo
Construction 0.13

D. LIST OF COMPANIES INVESTED IN MUTUAL FUND

Issuer % to
NAV
Government Sector 36.35
Power Finance Corporation Ltd. 8.15
State Bank Of India. 7.72
Reliance Jio Infocomm Ltd. 7.69
Indian Railway Finance Corporation Ltd. 6.74
Rural Electrification Corporation Ltd. 6.16
LIC Housing Finance Ltd. 6
 Sikka Ports & Terminals Ltd. 5.73
Bank Of Baroda 4
AXIS Bank Ltd. 3.98

RISK RETURN ANALYSIS OF MUTUAL FUND SCHEME

Absolute Returns (%) for each financial year for the last 5 years