Financial Planning Project
Faculty Report
The faculty we chose for our financial planning project was Mr.Dipak
Dilip Kumar Gadade , who is a lecturer in pharmacy department .We
started by gathering his personal details along with details about his
income and expenditure which are as follows:
Personal Details
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No of members in the family – 4
No of earning members – 1
Children – 2 ( Daughter 8 years old and son 3 years old )
Income – 10LPA
Mandatory expenses ( Groceries , Child’s school fee , electricity
and water bills , rent etc.) which accounts for around 20 to 30% of
his monthly income .
His current insurance and investments plans that he had invested
in :
• Health Insurance – DGHS ( Apart from this no other health
insurance )
• Group Insurance
• LIC plans – Jeevan Anand ( Endowment Plan ) and Jeevan sathi
Plan (Endowment Plan for couples ), 42K Annual Premium for both
the plans
• Sukanya Samriddhi Yojana for girl child – 15k Annual Premium ,
maturity after 13 years (when daughter becomes 21 years old) .
• Public Provident Fund – 50K Annually
His risk appetite is moderate he is willing to invest rupees 1 lakh
annually in risky assets . His income increases 8 to 10 percent annually
(2 – 3 % is fixed rest depends upon DA )
He has the following goals in mind –
➢ Car (in 4 -5 years)
➢ Home ( in 1, would take home loan soon )
➢ Child’s Higher Education
Apart from this he didn’t had any retirement plans in mind as of now but
would be happy if we create one for him .Also he keeps rest of his
savings in savings account .
Keeping these things in mind we decided to do financial planning for him
in the following manner –
His Human Life Value is around 1.2 Cr considering his current salary
,expenses and obligations.
So a suitable term insurance cover would be Max Life Smart
Secure Plus ( 0 cost term insurance ,Yearly Premium 20k , 1.2cr
term insurance cover till age 60 )
Health Insurance – Not required as already a beneficiary of DGHS.
Investment Portfolio –
As per rule of 100 and his risk appetite he could invest 62k annually in
risky assets such as equity .
So his 1,00,000 per year would be allocated in the following
manner :
• 12,400 (20% of 62K) – Nippon India Nifty BeEs ETF expected
CAGR of around 10% in the long term . Very Low Risk Index Fund
• 6,200 ( 10% of 62K )– Canara Robeco Bluechip Equity fund direct
growth. Low Risk Large Cap fund , expected CAGR 15%
• 6,200 (10% of 62K) – PGIM India Midcap Opportunities Fund
Direct Growth ( Medium Risk High return fund) 20% expected
CAGR
• 6,200 (10% of 62K) – Quant Small Cap Fund Direct Growth Plan (
High risk high return plan ) 25% expected CAGR
• 12,000 - Tata Steel , Power grid , ONGC , Coal India ( High
Dividend Yield Stocks in Nifty 50 , low risk and ideal for creating a
passive income).
• Remaining 32K – ( 25K in Sovereign Gold Bonds and 7K in
Corporate bonds )
By investing in this manner he would be able to generate a corpus of
19cr in 30 years at a cumulative CAGR of 20% annually. That would be
useful for fulfilling retirement plans . Also some amount could be
withdrawn in 5 – 10 years for goals such as Car and House.
Investment in these instruments could be made easily through a
broker like Zerodha , Groww App and Coin by Zerodha application .
❖ Apart from these we advise you to create a emergency fund
that would be able to bear your expenditure for at least 6
months in case of an emergency situation like a pandemic or
lockdown.
Value of Emergency Fund = Monthly Expenses and Obligations (45 to
50K approx.)*6 = 3,00,000 (approx) .
Sir could invest this amount in a RD by investing 12,500 monthly for 2
years after which it could be converted in a FD . This amount would be
used only for basic expenses and obligations in case of an emergency
and for nothing else !
By following this investment plan , Sir would be able to fulfill his
long term and short term goals , safeguard his family in case of any
unforeseen event along with saving ample amount for a happy ,
healthy and tension free retirement .
Prepared by
Manish Goel
Abhi Gupta
BBA BFSI Sec -A
Dr. Dipak Dilipkumar Gadade
(Lecturer – Pharmacy)