Dipankar Das is 28 years old and works in a public-sector company in Kolkata. He brings in a monthly salary of Rs 43,491 and has a government accommodation. He is single and plans to get married by next year, with his parents willing to take care of his wedding expenses. His portfolio of Rs 23.1 lakh includes cash of Rs 60,000, equity worth Rs 6.3 lakh in the form of mutual funds and stocks, debt worth Rs 8.1 lakh in the form of PPF, fixed deposit and gold bonds. His goals include building an emergency corpus, buying a car and a house, taking a vacation, and saving for retirement. However, given his limited investible surplus, he will need to forgo the goals of buying a car and taking a vacation. He can consider these after his wedding, depending on whether his spouse is earning and the joint goals that both of them decide at the time.

Portfolio

Portfolio

Cashflow

Cash Flow

The financial planning team of Fincart has calculated an emergency corpus of Rs 1.52 lakh, which is equal to six months’ expenses. For this, he will have to allocate his cash and a portion of fixed deposit, and this should be invested in an ultra shortterm or money market fund.

Das wants to buy a house worth Rs 85.4 lakh in nine years. He wants to amass a 50% down payment of Rs 42.7 lakh and fund the remaining amount through a home loan. To achieve this goal, he will have to allocate his remaining fixed deposit of Rs 5.85 lakh and, in addition to this, he will have to start an SIP of Rs 14,036 in diversified equity funds.

How to invest for goals

How to invest for goals

For retirement in 32 years, Das needs Rs 7.75 crore, and can allocate his stocks, mutual funds, PPF and gold bonds. Besides allocating these resources, he will have to starting an SIP of Rs 11,247 in a diversified equity fund. However, due to lack of surplus, he can start with Rs 10,000 for now and increase it to the required amount after a rise in his income. This will help him achieve the goal in the specified time.

Insurance Portfolio

Insurance cost

Das does not have any life or health insurance of his own. When it comes to life insurance, he should purchase a term plan of Rs 1 crore, which will cost him Rs 2,154 in monthly premium. For health, he has a Rs 4 lakh plan provided by his employer. Fincart suggests that he buy a basic health plan of Rs 5 lakh and a top-up plan of Rs 20 lakh, which will cost him Rs 875 in monthly premium. He can change it to a family floater plan after his marriage to include his spouse.

Financial plan by FINCART

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