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Background

Working Professional

Investments in Bank FDs

Improper asset allocation

Observations
  • Client and his family have taken a term life insurance of Rs. 1 crore.
  • After all monthly expenses and commitments, client’s family has a surplus of Rs.80,000 every month in their bank accounts.
  • Client’s current investment portfolio yields him an annual return of around 7 to 8%. As the inflation rate in urban cities are around 4 to 5%, his money was growing by just 2 to 3%.
Results
 Proper Asset Allocation

Client will earn additional Rs. 92,500 annually.

By switching to other fixed income market products from Bank FDs, the client is set to earn an additional Rs.92,500 every year.

 Proper Asset Allocation

Rs. 4,62,500 total additional benefits after 5 years.

By the end of 5 years, the client will make a total profit of Rs. 4,62,500 from his investments as mentioned above.

 Proper Asset Allocation

SIP investments growth up to Rs. 54 lakhs.

Investment in SIP with 13% average return grows up to Rs.54 lakhs, which otherwise would grow up to Rs.38 lakhs as bank savings.