COMPREHENSIVE FINANCIAL PLAN SPECIALLY PREPARED FOR

NO-19/A, PANKAJ, GAYATRI TAPOVAN, J P NAGAR 8THPHASE, BANGALORE-560076. PHONE RES;080 26695760 MOB 9888366888 aakashmalhotra@gmail.com

MR AAKASH MALHOTRA AND FAMILY

MODEL FINANCIAL PLANNING REPORTS IMAGINARY DATA FOR ILLUSTRATION ONLY

Financial Plan
Prepared by- Advisor / Financial Planner: SRIKANTH .V.KULKARNI AFP,CPFA Prepared on- Thursday, May 26, 2011

About Us

WEL COME

MONEY TREE established in the year 2002 with business focus on financial planning cum investment advisory services to guide and help our esteemed clients to achieve their financial goals. Presently managing wealth of over 500 client base spread across India. Financial planning is the very common and frequently used word now a days as it is the core necessity of any individual , which would bring happiness, stability and excellent standard of life. Financial planning brings contentment, preparedness with confidence for life situations which could be known or unknown surprises. Any individual has to do a proper financial planning for the future, just as you prepare for a journey. In the recent years financial planning has evolved into a highly respected profession from just a product based investment portfolio to more need and goal based portfolio which helps any investor to go in the right direction of achieving his goals. This is just like, going to an architect for a plan to build our dream house, rather than directly buying products available in the market which may or may not be useful in future. We as financial planners make the difference of giving you the vision and direction with the help of professional knowledge and ability of expertise, so that financial goals like life and health insurance , tax planning, educational needs, retirement planning, and to have a comfortable standard of life are achieved well in time with disciplined investments. We are qualified in the levels of Associate Financial Planners from FPSB India and CPFA-Certified Personal Financial Advisor certification which is jointly developed by NISM National Institute of Securities Markets established by SEBI and FPCIL - Financial Planning Corporation [India] established by FPSB INDIA - Financial Planning Standards Board Of India, a certification aims to enhance the quality of financial advisory and related services. We are also empanelled with major frontline Insurance [Life and General] and Asset Management Companies to offer vide range of products and services without any bias. Our client relationship is well managed with regular interaction seminars and review investor meets, which is well supported by the latest know how and technology. CONTACT US: Srikanth V Kulkarni AFP,CPFA MONEY-TREE, #2, Vanajakshi complex, Katriguppa main road, BSK 3RD Stage, [Near Big Bazaar] BANGALORE-560085. PHONE- OFF; 080 26695760 MOBILE 98863 27711 EMAIL- moneytreekulkarni@yahoo.in or moneytreekulkarni@gmail.com VISIT US@: www.moneytreeindia.co.in

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WE HELP YOU PLAN YOUR FUTURE!

We focus upon the major life cycle goals of families in India.like contingency ratio, childs education, marriage, home or farm house purchase, foreign tour, car, retirement planning and tax planning. Any other specific goals are also taken care with the comprehensive financial planning, which is tailor made to the needs of the investor.

FAMILY OF MR AAKASH MALHOTRA

GOAL OF CHILDREN EDUCATION

GOAL OF BUYING NEW CAR

CHILDREN MARRIAGE GOAL

FAMILY HOLIDAY

COMFORTABLE RETIREMENT LIFE Page 3 of 18

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WELCOME TO THE WORLD OF FINANCIAL PLANNING

What is Financial Planning? Financial planning is a critical exercise in ensuring long-term financial security. A financial plan is a road map to help you achieve your lifes financial goals. Here are three basic questions that you will answer during financial planning: Where are you today? What is your current financial situation? Where do you want to get to? What is your vision of your financial future and goals? Will you be able to get there? How do you plan to achieve your vision? During the financial planning process you analyze what your financial needs and goals are. Then, you quantify in money terms what resources you need to meet those goals, and the time frame during which you want to achieve these goals. Finally we write an action plan on what you need to fulfill your plan in terms of what products to buy and what types of savings to make based upon your risk profile. Financial Planning The financial planner integrates your risk profile and planned financial goals with your current investments and liabilities. It rebalances your portfolio as per the suggested asset allocation and projects your cash flow and net worth over your planning horizon. It also calculates your insurance requirements and suggests instruments for investment. Based on your discussion with us, we have outlined our proposal in the subsequent pages. The proposal will help you understand your current state of finances, stated financial goals, risk appetite and preview your future cash flow & net worth. This will enable you to identify gaps in your finances that may inhibit you from attaining your goals. It will provide you with a model asset allocation suitable to your risk profile. Our model portfolio will help mitigate these gaps and take you towards your goal fulfillment. Graphical illustrations have been used wherever required to enrich your understanding. In case you have any further queries or clarifications, please feel free to contact us.

INTRODUCTION We are pleased to submit this financial plan for your records . We urge you to keep this safely and privately to avoid any leakage of your confidential financial information. A full financial plan would cover Cash Management, Risk Management, Retirement Planning, Investment Planning and Estate & Tax Planning. The sections covered in this plan are outlined on the contents page. The following plan will document your Goals and Resources and make recommendations in line with your Goals based on the information you have provided. The solutions adopted in this plan need to be regularly reviewed. The projected outcomes are provisional and should be treated as indicative rather than as guaranteed. It is vital that the plan is reviewed regularly and the assumptions tested against actual outcomes. Life is dynamic and your financial plan must reflect changes in your personal situation! We urge you to study these recommendations carefully and we will respond to any questions you may have. You may need to make important decisions on the urgency and timing of the issues dealt within this plan. The effort you have taken to reach this point is well worth the effort to secure your financial future. Please see the Appendices for details of the underlying assumptions related to your financial future used in building your plan, our Disclosures / Disclaimers and a Glossary to assist you with the terminology used herein. We trust the experience will be rewarding for a sound financial future and help you reach your goals. We endeavour to respect your privacy and maintain client confidentiality.

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SUMMARY
This Report is based on inputs provided by you about your current financial situation and assumptions on future economic and market outlook, which are based on our extensive research. This Report contains an extensive analysis of your present and possible future financial condition, based on which we have presented our recommendations in the later sections of this Report, to help you manage and maintain your financial situation under changeable conditions.

Customer
Name: AAKASH S MALHOTRA E-Mail: aakashmalhotra@gmail.com DOB: 1-Jan-1980 Risk Class: Moderate

Assets: 3,900,000

Liabilities: 400,000

NetWorth: 3,500,000

CURRENT OBSERVATION AND SITUATION

Net Worth

Your current Net Worth is Rs. 3,500,000

Protection

You have Life insurance protection of Rs. 1,300,000

Investments

Your current investments are Rs. 100,000 in equity, Rs. 950,000 in Mutual Fund, Rs. 350,000 in FixedIncome and Rs. 50,000 in others

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FINANCIAL HEALTH
Here we have provided the most important indicator of your financial health. It is expedient to stay within the safe limits of these indicator in order to ensure the effectiveness of the Financial Planning exercise through which a person is able to successfully meet all financial goals. If the asset allocation is not optimum, either one will not be able to increase ones wealth to the desired level or one will be exposing ones investment portfolio to undue risks which can lead to undue downside risks and inability to meet goals. If loan liabilities are too high or low, then one runs the risk of either leveraging too much which can have disastrous results when interest rates go up or there is a hit on income levels or not being able to build sufficient assets by being too average to debt. Low savings rate will negatively impact building up sufficient wealth to meet the various goals, while high savings rate may result in unduly high present sacrifices for the future. Debt Ratio
This Ratio compares debt to net worth; A lower debt ratio is best. However, this ratio can be high when a person goes in for a Housing Loan.

Value: 0.11

<=-1

0-1

>=2

You are borrowing adequately

Debt to income
The amount utilised for repaying the loans

Value: 3.32

<=45

46-65

>=66

It appears as though you are saving substantial income for future and current use. Make sure that you are not necessarily stretching out your debt repayment periods. You should consider early repayment or a partial offset to reduce your interest payments.

Insurance cover
Reflects the current insurance cover to the annual income

Value: 1.81

<=2

3-4

>=5

It appears as though your cover is inadequate to meet your requirements in case of need. We recommend that you review your life cover and bring it to a minimum of 5 times of your annual salary

Loan to assets
Debt to assets ratio Should not exceed 75% at any point in time. Lower the ratio better

Value: 10.26

<=44

45-59

>=60

Your assets appear to be well protected against a drop in investment values or interest rate increases. Ensure you have allocated your assets appropriately according to your risk profile.

Savings to income
This tells how much cash of earnings is set aside for future use

Value: 58.81

<=15

16-25

>=26

You are saving a good amount for your future use. If a large amount of your savings is kept in a deposit amount, you might be missing out a better returns. Consider exploring other investment products. Our qualified Personal Financial Consultants can help you plan your investing strategy.

Solvency Ratio
This is emergency fund that is available

Value: 4.34

<=3

4-12

>=13

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Detailed understanding of financial terms used generally in the reports; What is Net Worth? The Net Worth is what you're worth financially. Use it to list all your assets and liabilities and then subtract the sum of your liabilities from your total assets. Why Risk Profiling is necessary? Risk profiling can help you make decisions that are suitable to you, as it is a method of measuring personal tolerance to investment risk. In simple terms, how much risk an individual is willing to take, and what is his perception about risk. What is Insurance? In simple terms, Life insurance offers financial protection to you and your loved ones when you retire, not available in this world or are unable to continue providing financially due to unforeseen incidents. While nothing can substitute your loss, insurance at least takes care of the financial need created by your absence or the absence of an active income source. It thus tries to eliminate risk by substituting certainty for uncertainty, The compensation of corpus can generate the cash flow as if it were in your presence, hence not sacrificing the standard of life you have had set. Is inflation a silent killer? Inflation, a universal concept, is an economy-wide sustained trend of increasing prices from one year to the next. The rate of inflation is important as it represents the rate at which the real value of an investment is eroded and the loss in spending power over time. Inflation also tells investors exactly how much of a return (%) their investments need to make for them to maintain their standard of living. How important is to diversify my investments? It goes by a saying DONOT PUT ALL YOUR EGGS IN ONE BASKET It is required to balance and Portfolio diversification is the means by which investors minimize or eliminate their exposure to risk, reduce systematic risk and moderate the short-term effects of individual asset class performance on portfolio value. How compounding effects my investments? Compounding is the leverage effect of the first investment working for a longer tenure and creating biggercorpus, so start early, invest less and create bigger corpus,. Concept is well defined by the compounding effect,. Why Asset Allocation? Asset allocation brings financial discipline and gives balanced exposure to different asset classes like equity ,debt ,real estate, gold etc,. which is established in accordance to the shouldering capability of the investor , in conjunction to his current age, income, dependents, assets, liabilities etc,. so that he is able to withstand any volatility in his investment portfolio.

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GOAL PROFILING
For the purpose of this basic financial plan, we focus upon the major life cycle goals of all families in India. These goals are childrens education and marriage, buying home and retirement planning.

Goal
[Amount in Rs] Goal Child Education Child Marriage Other Other Total: Name ----CostToday 250,000.00 600,000.00 200,000.00 2,500,000.00 3,550,000.00
Required In Year

Goal Inflation( Exp Amount %) Ret(%) 801,783.87 2,729,629.78 358,169.54 2,650,000.00 6.00 6.00 6.00 6.00 10.00 12.00 12.00 14.00

Amount to be Saved Monthly

2031 2037 2021 2012

1,055.86 1,281.63 1,557.00 207,019.20 210,913.68

Based on your inputs we have done an analysis of your life's major financial goals and savings required to achieve them. For your childs education you have to save Rs. 1,056 per month. Your monthly saving should be Rs. 1,282 to meet your child's marriage expenses. For all other goal's you need to save Rs. 208,576 every month. Retirement planning is one of most important financial planning goals which is often not given the priority it deserves by most people. We accord highest priority to it and would strongly recommend that you also pay due attention to it.

Goal Retirement

Cost Today

Retirement Year

Corpus Inflation( Exp Amount To be Saved Required %) Ret(%)

360,000.00

2040

Rs 19,506,196.44

6.00

12.00

6,311.97

We have done an extensive analysis of your retirement goal needs and savings required per month to meet those needs. Based on the inputs provided by you we have calculated that at the time of your retirement you'll need a corpus of Rs. 19,506,196 in 2040 to lead a financially stable retired life. You have no investments attached to your retirement. For the gap of Rs. 19,506,196 for your retirement goal, you need to start planning soon. Monthly savings required to meet retirement goal is Rs. 6,312

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Goal Amount In Rs

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INCOME AND EXPENSE SUMMARY

Income

Expense

[Amount in Rs] Type Salary Agricultural Income Rental Property Capital Gains Total: Amount (Monthly) 60,000.00 15,000.00 8,000.00 1,000.00 84,000.00 Pctg(%) 71.43 17.86 9.52 1.19 100 Type Rent Food Transportation Utilities EMI Insurance Health & personal care Other Entertainment and holidays Domestic Help Personal wear Total:

[Amount in Rs] Amount (Monthly) 8,000.00 5,000.00 4,000.00 3,000.00 2,791.67 2,606.25 2,500.00 2,500.00 2,000.00 1,200.00 1,000.00 34,597.92 Pctg(%) 23.12 14.45 11.56 8.67 8.07 7.53 7.23 7.23 5.78 3.47 2.89 100

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CASH FLOWS (Annual)

[Amount in Rs]

In the above analysis we see that income cover both expenses as well as investment needs for major life goals. Moreover every year your family is left with surplus of Rs. -2013882.84. You can review your major life goals or plan an early retirement.

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NET WORTH SUMMARY

Assets: 3,900,000 Liabilities: 400,000 NetWorth: 3,500,000

For the purpose of this basic financial plan, we focus upon the major life cycle goals of all families in India. These goals are childrens education and marriage, buying home and retirement planning

Asset

Liabilities

[Amount in Rs] Assets Property Mutual Fund Fixed Income Gold Cash&Savings Govt Savings Direct Equity Others Total: Values 2,000,000.00 950,000.00 350,000.00 200,000.00 150,000.00 100,000.00 100,000.00 50,000.00 3,900,000.00 Pctg(%) 51.28 24.36 8.97 5.13 3.85 2.56 2.56 1.28 100 Loan Home Loan Auto Loan Personal Loan Total:

[Amount in Rs ] Outstanding Amount 250,000.00 100,000.00 50,000.00 400,000.00 Pctg(%) 62.50 25.00 12.50 100

In order to enjoy an adequate Net Worth level, one should ensure that there is no undue leverage upon loan liabilities. Through proper Financial Planning you should ensure that loan liabilities are pegged at an optimum level based upon needs and not unduly stretched to satisfy wants.

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RISK PROFILE AND PORTFOLIO ALLOCATION

Risk Profile
Conservative
Where are you today? What is your current financial situation? You seek to achieve above deposit rate returns and protect your capital against inflation. You are willing to accept very low levels of investment risk over the medium term (up to 2 years). The value of your investment can fluctuate and may fall below your original investment. While volatility is expected to be low, short-term losses may be higher.

Moderate
You seek to achieve a moderate level of capital growth on your investments and you are willing to accept moderate levels of investment risk over the medium to long term (up to 3 years). The value of your investments can fluctuate and may fall below your original investment. While volatility is expected to be moderate, short-term losses may be higher.

Aggressive
You seek to achieve significant capital growth on your investments and you are willing to accept very high levels of investment risk and volatility over the short, medium and long term. The value of your investments can experience very high levels of fluctuations and may fall substantially below your original investment.

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RISK PROFILE AND PORTFOLIO ALLOCATION

Risk Profile
Risk Class : Moderate Your risk behavior is Moderate. It shows that by nature you are a balanced risk taker. Before investing anywhere you take in to account all the upsides and downsides associated with it and then take a well-reasoned decision. You are bothered about the downside of high-risk investments and therefore, want to maintain a balanced portfolio.
Class Equity Debt Cash Recommended(%) 64.17 28.83 7.00 Current(%) Action Needed(%) 63.64 27.27 9.09 0.53 1.56 -2.09

Recommended Asset Allocation

Current Asset Allocation

Based on your current investments we have identified that your asset allocation does not match the asset allocation recommended by us. The asset allocation recommended by us is based on your risk profile and other data pulled from your profile information. Your current equity allocation is 63.64%, debt allocation is 27.27%, alternate allocation is 0% and cash allocation is 9.09%. But based on our analysis we recommend an equity allocation of 64.17%, debt allocation of 28.83%, alternate allocation of 0% and cash allocation of 7%. Please contact our advisor to help you shift closer to the recommended asset allocation. This will keep you in sync with your risks taking capacity and risk appetite. Moreover we recommend you to keep 7% of your investment portfolio in cash and cash equivalents to take care of liquidity in your portfolio. Based on your current asset allocation we have identified that cash allocation is more than recommended. Please contact your advisor to remove the gap.

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LIFE INSURANCE DETAILS

An integral part of Financial Planning is ensuring that adequate risk cover are taken against the various risks and perils which we are exposed to. Some of minimum and most basic insurance cover which all families must have are: sum assured equal to the human life value of main bread winner, health insurance, personal accident and property insurance.
[Amount in Rs] Type Term Policy Endowment policy moneyback policy Total: Sum Assured 1,000,000 200,000 100,000 1,300,000

[Amount in Rs] Human Life Value Analysis Discount Rate Salary income(annual) Retirement age Years left till retirement HLV based on income
Life Insurance Gap Analysis

HLV Values 8 720,000 65 34 9,010,000

Financial Net Worth Insurance Cover Recommended Current Insurance Cover Insurance Cover Required Notes: 1.Discount rate of 8% is assumed. 2.HLV uses income replacement method.

3,500,000 5,510,000 1,300,000 4,210,000

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GENERAL INSURANCE DETAILS

Health
[Amount in Rs ] Type Health/Medical Gap Analysis Recommende Cover Existing Cover Gap 800000 0 500,000 Sum Assured 300000

It appears as though your mediclaim cover is inadequate to meet your requirements in case of medical need. We recommend that you review your mediclaim cover and bring atleast upto your annual salary.

Other
[Amount in Rs ] Type Home Personal Accident Total: Sum Assured 1,000,000 100,000 1,100,000

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DISCLAIMER
Note: The calculation of performance measures and portfolio classification are according to certain preset methodologies and may or may not conform to your requirement of filing tax returns or other investment decision making imperatives. You should independently verify the data before making any investment decision or for any tax/regulatory reporting. While all reasonable care has been taken in preparing this document, no responsibility or liability is accepted for error of fact or for any opinion expressed herein. This document is for information purposes only. It does not constitute any offer, recommendation or solicitation to any person to enter into any transaction or adopt any hedging, trading or investment strategy, nor does it constitute any prediction of likely future movements in rates or prices or any representation that any such future movements will not exceed those shown in any illustration. Past performance is not necessarily indicative of future performance; the value, price or income from investments may fall as well as rise Advisor, and/or a connected company, may have a position in any of the instruments or currencies mentioned in this document. You are advised to make your own independent judgment with respect to any matter contained herein.
The recommended products and strategies in this Goal Based Plan have prepared especially for you. These recommendations given here flow out of an analysis of your Investor Profile and your Goals and Objectives as presented to us. In addition, it is important to be aware of the following: All market linked investment returns will reflect the performance of the underlying assets of the products you have chosen and will go up and down with the value of the products assets. With all international investments you are exposed to the added risk of currency fluctuations. Most Investments are medium to long term and the minimum investment term must be considered before making an investment (Fixed Interest Trusts 1-3 years; Shares 5 years; Property 5-7 years. Any report product information goods services or advice ("advice") given to you has been prepared from the information supplied to us from you. Any decisions made by you in reliance upon or in relation to such advice are to be made by you and not by us. You are therefore exclusively responsible for all acts and decisions in making any decisions in reliance on any advice or materials supplied to us by you. Any calculated projections or any predictions given by us to you are not guaranteed and are merely an expression of opinion only and are not intended for other than illustration purposes only. Whilst every care has been exercised and the advice and the statements made are based on information believed to be accurate that no liability is accepted by us or our employees or officers or outside suppliers of information for any error or omission contained herein. It is strongly recommended that this qualification be borne in mind when making any decisions in reliance upon any of the advice contained herein. You are exclusively responsible for all such decisions. Further, our responsibility in connection with any materials or advice given by us to you is supplied to you alone and neither we nor our employees either directly or indirectly accept any responsibility howsoever arising on any grounds whatsoever to any other party. I hereby have read and understood the complete subject financial plan and the same has been explained to me in detail by the planner and I am satisfied by his explanation, have no objections,.

FEE - Please note that all the services like financial planning , strategy creation, implementation or any other advisory services etc,. are based on the different fee structure. The disclosures of commissions receivable from the Insurance companies, Asset Managament Companies and other product manufacturers will be made available to the clients pertaining to their investments. Kindly contact us for further details.
Sd/-

CLIENTS SIGNATURE Shri/SmtFINANCIAL PLANNERS SIGNATURE ...

Date: Place:
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THANK YOU VERY MUCH FOR THE OPPORTUNITY GIVEN TO US FOR SERVING YOU AND WE ASSURE YOU OF OUR BEST SERVICES IN FUTURE AND HOPE AND CONFIDENT THAT YOU ARE ALSO SATISFIED WITH OUR ASSOCIATION.

A NEW RELATIONSHIP BEGINS HERE.

AAKASH S MALHOTRA Financial Plan

Page 18 of 18 A NEW LIFE BEGINS HERE..

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