Checking your Financial Health

Transcription

1 Checking your Financial Health An Investor Education & Awareness Initiative By Franklin Templeton Mutual Fund

2 Are you aware about your cash flows? i.e. Your cash inflows and outflows

3 Are your finances getting better or worse every year? 2

4 If your personal finances are getting Better, You are getting financially healthy!

5 But if your personal finances are getting Worse You should seriously start worrying Why?

6 Can you pay for your regular expenses without having any income? It s Time you built a Contingency Reserve So if your monthly expense is Rs 50,000/- Your Contingency Reserve = Rs 50,000/- X 6* Months = Rs 3,00,000/- (*The figures used are for illustration purpose only. We would urge you to speak to your financial advisor to help you arrive at an appropriate number based on your risk profile )

7 Know the extent of your liabilities... Do you have any loan? If your monthly income is Rs 1,00,000/- Ideally, Your EMI should not exceed 40%* of Rs 1,00,000/- = Rs 40,000/- (*The figures used are for illustration purpose only. We would urge you to speak to your financial advisor to help you arrive at an appropriate number based on your risk profile )

8 What Can Lead To Financial Risks? Increase in Interest Rates can increase* your EMI High monthly expense will lead to low savings If you choose to increase the loan tenure by keeping your EMI the same *In case you have opted for a floating rate loan

9 Is Your Investment Portfolio Well Diversified?

10 Are You Overexposed To Equities? Investment in Equity (%) = 100 Your Age Your Age = 25 years Investment in Equity (%) = = 75% The figures used are for illustration purpose only. We would urge you to speak to your financial advisor to help you arrive at an appropriate number based on your risk profile

11 Do You Have Enough Insurance Cover? Your Life Insurance Requirement = Your Monthly Income X 12 Months X 10 times If your monthly income is Rs 1 Lac Your Insurance Requirement = Rs 1,00,000 X 12 X 10 = Rs 1.2 crore The figures used are for illustration purpose only. We would urge you to speak to your financial advisor to help you arrive at an appropriate number based on your risk profile Do you have enough Health Insurance for you and your family?

12 How Do You Invest? Lump sum or via Systematic Investment Plan (SIP)

13 Do You Monitor Your Investments Regularly

14 Some Key Takeaway Points Know your cash flows and avoid making unnecessary expenses Create a contingency reserve of minimum 6 months and preferably 12 months EMI should not comprise more than 35-40% of your monthly income Diversify your investments Invest via Systematic Investment Plan vis-a-vis lump sum investment in equity 13

15 Some Key Takeaway Points Monitor your investments regularly Have an adequate life insurance cover to financially protect your family Have an adequate health insurance cover for you and your family. Taking care of these small things with your finances can help keep you financially healthy 14

16 Lets Do A Short Quiz! we now invite you to test your learning by taking up this simple quiz (and win exciting prizes!) 15

17 Quick Quiz 1) You should maintain a minimum contingency reserve of months of your expenses? A. 1 Month B. 3 Months C. 6 Months D. 12 Months 2) Your EMI should not exceed what percentage of your monthly salary? A. 10% B. 20% C. 40% D. 60% 16

18 Quick Quiz 4) Recommended mode of regular investment in Equity is A. SIP B. Lump sum 5) You need to have an adequate life insurance cover to financially protect your family. A. False B. True 17

19 Thank You For Participating! 18

20 Mutual Fund Investments Are Subject To Market Risks, Read All Scheme Related Documents Carefully. 19

21 Franklin Templeton Asset Management (India) Pvt. Ltd. Indiabulls Finance Centre, Tower 2, 12 th and 13 th floor, Senapati Bapat Marg, Elphinstone (W) Mumbai Tel (91-22) Fax (91-22) Caveat (Arial Narrow 10pt.) FTI PPT 4:3 01/14