Financial planning is the process of meeting your life goals through proper management of your finances. Financial planning is a systematic approach where the financial planner enables the customer to maximize his existing financial resources by utilizing financial tools to achieve his financial goals.

Life goals can include buying a home, saving for your children education or planning for retirement. It is a process that consists of specific steps that help you to take a big-picture look at where you are financially. Using these steps you can work out where you are now, what you may need in the future and what you must do to reach your goals.


Importance of financial Planning

  1. To meet financial goals and obligations
  2. A good financial plan will always help you retire in comfort
  3. Helps achieve financial freedom
  4. Helps make rational financial decisions
  5. Take advantage of financial opportunities


Financial Planning – Why ? 

  1. Rate of cost escalation is huge for each of these goals – average being 6.5%
    –Retirement Planning
    –Higher Education / Marriage of Children
    –Medical Expenses
  2. Every individual has different needs, hence, avail customized service – ‘What suits your friend, may not suit you!’
  3. Appropriate ‘Asset Allocation’ enables to avail optimal risk-adjusted returns – Design the portfolio with a mix of Debt / Equity with suitable risk profile
  4. Wealth Creation is possible only if you are able to ‘Make your money work for you!’


Financial Planning Process…Basic

  1. Where do you want to be & when - Define the financial goals in terms of how much you will need and when
  2. Where are you? - Check your financial resources & financial commitments
  3. How do you get there - Appropriate ‘Asset Allocation’
  4. Are you on course ? -Periodic review of your investments


Advantages of Financial Planning

  1. Professional Assistance to Manage Finance
  2. Continuous tracking to ensure In line with market tracking
  3. Goal Based approach for disciplined investing


Asset Allocation Avenues

Choose Avenues considering financial requirements and goals

  1. Real Estate / Real Estate Funds
  2. Debt – Deposits, Debt Mutual Funds
  3. Gold funds
  4. Equity