RETIREMENT PLANNING - MR. XYZ Client Name - Mr. XYZ Age: 60 years Risk Profile - Balanced Date: 14/04/2014 Summary This financial plan is prepared on the basis of the investor profile form and your risk profile. The Financial Plan could change significantly if there is any major deviation in goals, assets/ liabilities, income and expense details. Mr. XYZ s risk profile is a balanced. Mr. XYZ is going to retire in Sept 14 and is seeking a retirement advice to plan his retirement income. Mr. XYZ also aims to meet the following goals from his cash flows: - Purchasing of a car worth Rs. 15 lakhs; - Building a house in Jaipur in three years; - Starting a consultancy business post retirement. Based on existing insurance and future requirements, it is assessed that Mr. XYZ does not need further insurance cover as his current available assets more than compensate for his insurance requirement. Mr. XYZ is about to retire in six months time and his expectation of Rs. 2,00,000 p.m. post retirement income could be fulfilled through his retrials and current available investments. Mr. XYZ would be able to meet his goal of buying a car through his income in the coming months. Mr. XYZ has a huge real estate exposure and the goals of building a house in Jaipur and starting a consultancy business can be met through the sale of any of his properties. We have created three scenarios based on the client s preference for planning his post retirement cash flows: Dundlod house not being sold Dundlod house being sold The client getting an extension of two years in his employment
The following sets of assumptions are made while evaluating his goals. We have only considered the saleable properties in our real estate investments calculation. Particulars Assumptions Bank Savings rate 4% Inflation Rate 7% Increment in Rental 10% Equity Returns 12% Debt Returns 8% Real Estate Returns 8% Taxes 30% Life Expectancy 80 yrs Recommended steps to combat against an uncertain future We recommend an emergency fund equivalent to atleast 6 months of Mr. XYZ s monthly salary to meet obligatory financial emergency. Such sum would reduce where Mr. XYZ takes appropriate health insurance policy that adequately covers him and his family. For the purpose of estate planning, we recommend to initially update/complete your nomination details for all financial products. The implications of a nomination are subject to different conditions for each financial product. We also advise Mr. XYZ to keep his family members updated on the financial details (details of investments, insurance, bank accounts, etc).
Market Outlook Equities gain momentum led by strong FII inflows, increased election optimism Indian equities rallied sharply owing to strong FII buying and optimism over political front after general election and improving macro scenario bolstering the investors sentiment. Overseas investors have bought heavily into India as a sharply narrowing current account deficit (CAD) and a more stable rupee have increased confidence in the country. CAD has narrowed sharply, to 0.9 per cent of gross domestic product in the October-December quarter improving from the record high of 4.8 per cent of GDP in the year ended in March 2013. Positive cues trend in the Asian region and easing tensions between Ukraine and Russia also aided the sentiment. Heavy buying by foreign investors and increased retail participation in banking, capital goods and other blue-chips resulted in the strong up move. The markets are expected to continue riding on the general elections optimism in the near term which are a couple of months away. It may witness volatility at the higher levels led by the release of key domestic economy related data-points and monetary policy developments. We maintain our long term bullish view on equities based on the likely positive turnaround in the economic cycle and stable political leadership in the country supporting growth. Accordingly, investors with an appetite to take risk can look at equities at current levels with a horizon of 3 years and above. Debt Market View During the month, bond yields at the longer end of the curve witnessed tight range-bound movements tracking the tensions of Ukraine and comments from the RBI governor regarding inflation targeting. The 10 year benchmark G-Sec started the month on a strong note tracking improvement in the domestic currency and favorable economic data points with yields easing from 8.90 percent at the beginning of the month to 8.73 percent at the middle of the month. However, later yields moved up tracking tight liquidity condition in the system due to advance tax outflows. Also, the US Fed Chief Janet Yellen's statement that the central bank may hike interest rates around six months after winding up its asset purchase program dented the sentiment and caused the yields to surge. Indian G-Sec bond yields ended lower by 6 basis points at 8.80% at the end of March 2014 over February 2014. India s 10-year government bond yield capped their worst monthly performance since November on concern a decline in the central bank s debt purchases will lower demand for the securities. We continue to recommend investment at the shorter end of the yield curve with a horizon of 12-18 months. Conservative investors can look at accrual products for investments. Gold Market View Internationally, Gold futures fell to a six week low on signs of improving U.S. Economy bolster forecasts for the Federal Reserve to boost interest rates. Gold has fallen 4.2 percent since March 19, when Fed Chair Janet Yellen announced that the Central Bank will end bond buying program and increase interest rates six months after such measure. With the pace of US recovery, the safe haven status is diminishing. By December, gold had dropped below 1,200 but since the New Year it has recovered slightly to 1,312. The gold prices closed at $ 1284.47 for March. Domestically, import tariff on gold has reduced from $421 per 10 grams from $445 per 10 gram earlier. The total imports are expected to be not more than 550 tonnes this fiscal as against 845 tonnes in the last fiscal. The finance minister has also indicated that government may ease restrictions further after monetary announcement by RBI as current account deficit has moderated to about $35 billion. In the longer tenure, the fed s guidance on higher interest rates and EU will determine the metals trajectory in the longer tenure. In the short term, stronger equities and emerging physical demand, geopolitical tension in Ukraine could influence gold prices.
Current Asset Allocation Debt, 14.7% Real Estate (Includes Realty PMS)*, 85.3% The current asset allocation has real estate investment as a major component. Mr. XYZ should be able to meet his retirement needs through his current debt investments and the retrials. To meet his other goals and requirements, he could liquidate any of his properties. Proposed Asset Allocation Since Mr. XYZ has huge real estate exposure, we have recommended following asset allocation for the retirement corpus to be invested in the following two scenarios. The same would help in rebalancing the asset mix at an overall portfolio level, in line with the risk profile. Scenario 1: Dundlod House not being sold Scenario 2: Dundlod House being sold Equity, Cash, 15% Cash, 10% Equity, 15% 5% Debt, 75% Debt, 80%
Indicative Asset Allocation Basis the proposed asset allocation given above, the client s overall indicative portfolio allocation (including saleable real estate properties) in both the scenarios would be as follows. Scenario 1: Dundlod House not being sold Scenario 2: Dundlod House being sold Cash, 1.5% Debt, 11.5% Equity, 2.3% Real Estate*, 25.5% Cash, 3.9% Debt, 59.4% Real Estate*, 84.6% Equity, 11.2% *Included only saleable properties Risk Profile Evaluation & Suggestion The indicative risk profile evaluated is Balanced. In order to meet the investment goals which are commensurate to the risk profile, we recommend an investment allocation of 75% in debt, 15% towards debt and 10% towards Cash.
Client Details Age: 60 Years Expenses Details Details Amount (Rs) Expenses Details (Amount (Rs.) Salary (Post Tax) Rental 6,820,224 400,000 Household Expenses (p.a.) 1,200,000 Holiday/Gifts/Purchase 600,000 Miscellaneous 500,000 Total 72,20,224 Total Expenses 23,00,000 Details Schedule of Savings till Retirement Amount (Rs) (Salary + Bonus + Rental) till Sept'14 (6 months from Apr-Sept) 6,022,112 Expense till Sept'14 (6 months from Apr-Sept) 1,150,000 Savings till Sept'14 4,872,112 Mercedez Car loan 400,000 HDFC Home Loan for Stone Valley Apartment Hyderabad 1,304,008 Buying a car 1,500,000 Net investible savings (as of Sept 14) 1,668,104 The client has a strong savings rate and since he is about to retire in six month s time, we have assumed the savings for that part of the employment in the retirement corpus. A part of these savings and bonus amount would be utilized towards paying off liabilities (home & car loans) and meeting a goal of buying a car.
Assets-Liabilities Details Asset Details Amount (Rs) Liabilities Details Amount (Rs.) Savings + Fixed Deposits 25,00,000 Home Loan 1,304,008 EPF* + Superannuation + Gratuity 25,393,265 Mercedez Car loan 400,000 Debt MF Tax free Bonds 531,955 700,000 Real Estate** (Includes Realty PMS) 169,500,000 Total 198,625,221 Total 1,704,008 *As of Sep'14 **Included only saleable properties Net worth: - Rs.19.69 Crores
Insurance Planning- Insurance required based on need based method- Cash needs Particulars Amt (Rs.) Funds for Family Expenses (20 yrs, invested @8% with inflation @7%) 22,001,691 Current Liabilities 1,704,008 Funds for non-plan exps 2,000,000 Total 25,705,699 Available Assets 198,625,221 Total Insurance Required (172,919,521) Existing insurance 5,100,000 Insurance Requirements (178,019,521) Based on the need analysis method, where one needs to assess the future obligations of an insured we believe Mr. XYZ s current assets would be more than adequate to cover his future family obligations. It would be critical to support dependants incase of emergency. Mr. XYZ do not require further insurance as his current available assets and existing insurance cover should be sufficient to mitigate any risks. Additionally, we advise to take appropriate health insurance (where no health insurance coverage is provided by employer). Having appropriate health insurance coverage for the family reduces the requirement for keeping emergency funds.
Goal Planning Purchase of a Car Mr. XYZ has suggested buying a Car worth Rs.15 lakhs. Considering his strong income profile and high savings rate, the same could be bought using his savings till the time of retirement (Refer Schedule of Savings till Retirement given above). Building a house in Jaipur and starting a consultancy business post retirement The client wants to build a house in Jaipur (where he owns the land) and start a consultancy business post his retirement. Mr. XYZ holds a significant investment in real estate and has also inherited some properties from his family. Hence, he can consider liquidating any of his properties towards meeting these goals. The client has suggested selling off a property in Dundlod, Rajasthan (Current Value: Rs.15 Crores) towards the same. Residual proceeds can be re-invested in suggested asset allocation manner towards the retirement corpus or any other interim goals. Financial Goals Present Value (P.V.) Time Frame (Yrs) Amount Accumulat ed Future Value (F.V.) Building house in Jaipur 12,500,000 3 Selling 15,313,038 Start Consultancy business 20,000,000 0 Dundlod house 20,000,000
Retirement Planning Current Age 60 Expected age of retirement 60 Life Expectancy 80 Years of Retirement 20 Annual Estimate of expenses at retirement 2,400,000 Retirement Corpus required at the time of Retirement 43,816,326 We have detailed the retirement planning process in the following manner to provide suggestions in different scenarios. Since the client wishes to sell off his Dundlod property (worth Rs. 15 crores) in the coming period, the same needs to be considered for asset allocation & cash flow perspective. However, a scenario has also been considered if the same is not sold off on a timely basis. A third scenario is being considered from cash flow perspective if the client gets a two year extension in his employment. Scenario 1: Dundlod house not being sold Scenario 2: Dundlod house being sold Scenario 3: Two year extension in the employment (only from cash flow perspective)
Scenario 1: Dundlod house not being sold Scenario 1 - Dundlod House not being sold Investible surplus@60 - Sept'14 Savings + FD 2,500,000 EPF* + Superannuation + Gratuity 25,393,265 Debt MF & Tax free bonds 1,231,955 Savings till Sept'14 post liabilities 1,668,104 Total Corpus for investment 30,793,325 Proposed Asset Allocation Scenario 1: Dundlod House not being sold Cash 10% 3,079,332 Debt 75% 23,094,993 Equity 15% 4,618,999 100% 30,793,325
Scenario 2: Dundlod house being sold Scenario 2 - Dundlod House being sold Investible surplus@60 - Sept'14 Savings + FD 2,500,000 EPF + Superannuation + Gratuity 25,393,265 Debt MF & Tax free bonds 1,231,955 Savings till Sept'14 post liabilities 1,668,104 Investible Proceeds from sale of Dundlod house* 26,186,963 Total Corpus for investment 56,980,287 *Subject to the house being sold till Sept'14, Net Proceeds Dundlod House Net Proceeds (if sold) Saleable Value 150,000,000 Sisters' share 5,000,000 145,000,000 Post Tax Surplus (Less 30% tax) 101,500,000 Sons' share 40,000,000 Net Proceeds 61,500,000 Proposed Asset Allocation Scenario 2: Dundlod House being sold Cash 5% 3,000,000 Debt 80% 45,433,244 Equity 15% 8,547,043 100% 56,980,287 Scenario 3: Two year extension in the employment (only from cash flow perspective) Scenario 3 - If two year extension is granted Investible surplus@60 - Apr'14 Savings + FD 2,500,000 Debt MF & Tax free bonds 1,231,955 Total Corpus for investment 3,731,955
Suggested Investment Options Scenario 1: Dundlod house not being sold Asset Class Product Instruments Amount Alloca tion Approx. Returns Weighted return Approx. Post tax returns Cash Savings A/C Local Savings Bank A/C 1,539,666 5.0% 5.00% 0.25% 0.18% HDFC Cash Mgmt Fund - Cash Liquid MF Savings Plan 1,539,666 5.0% 8.00% 0.40% 0.32% Debt Corporate FD HDFC Ltd - Mthly payout 1,847,599 6.0% 9.15% 0.55% 0.38% Debt Corporate FD Bajaj Finance - Mthly payout 1,847,599 6.0% 9.50% 0.57% 0.40% Debt Corporate FD KTDFC - Mthly Payout 1,847,599 6.0% 10.50% 0.63% 0.44% Debt NCD As available 1,077,766 3.5% 10.00% 0.35% 0.25% Debt NCD As available 1,077,766 3.5% 10.00% 0.35% 0.25% Debt Tax Free Bonds As available 3,710,210 12.0% 8.50% 1.02% 1.02% Debt Tax Free Bonds As available 3,710,210 12.0% 8.50% 1.02% 1.02% Debt Corporate Bonds As available 3,079,332 10.0% 10.00% 1.00% 0.70% Debt Debt MF HDFC Short Term Opportunities 1,231,733 4.0% 9.00% 0.36% 0.29% Debt Debt MF IDFC SSIF - Short Term 1,231,733 4.0% 9.00% 0.36% 0.29% Hybri d - Debt MIP Birla Sun Life MIP II - Savings 5 1,231,733 4.0% 9.00% 0.36% 0.29% Hybri d - Debt MIP ICICI Prudential MIP 1,201,710 3.9% 9.00% 0.35% 0.28% Equity Equity MF Birla Sun Life MNC Fund - Dividend 2,318,882 7.5% 12% 0.90% 0.90% Equity Equity MF Franklin India Bluechip - Dividend 2,300,117 7.5% 12% 0.90% 0.90% 30,793,325 Weighte d Average Yield 9.38% 7.90%
Scenario 2: Dundlod house being sold Asset Class Product Instruments Amount Alloca tion Approx. Returns Weighted return Approx. Post tax returns Cash Savings A/C Local Savings Bank A/C 1,500,000 2.6% 4.00% 0.11% 0.07% HDFC Cash Mgmt Fund - Cash Liquid MF Savings Plan 1,500,000 2.6% 8.00% 0.21% 0.17% Debt Corporate FD HDFC Ltd - Mthly payout 10,000,000 17.5% 9.15% 1.61% 1.12% Debt Corporate FD Bajaj Finance - Mthly payout 10,000,000 17.5% 9.50% 1.67% 1.17% Debt Corporate FD KTDFC - Mthly Payout 10,000,000 17.5% 10.50% 1.84% 1.29% Debt NCD As available 2,500,000 4.4% 10.00% 0.44% 0.31% Debt Tax Free Bonds As available 2,500,000 4.4% 8.50% 0.37% 0.37% Debt Corporate Bonds As available 2,500,000 4.4% 10.00% 0.44% 0.31% Debt Debt MF HDFC Short Term Opportunities 2,500,000 4.4% 9.00% 0.39% 0.32% Debt Debt MF IDFC SSIF - Short Term 2,500,000 4.4% 9.00% 0.39% 0.32% Hybri d - Debt MIP Birla Sun Life MIP II - Savings 5 1,500,000 2.6% 9.00% 0.24% 0.19% Hybri d - Debt MIP ICICI Prudential MIP 1,433,244 2.5% 9.00% 0.23% 0.18% Equity Equity MF Birla Sun Life MNC Fund - Dividend 4,200,000 7.4% 12% 0.88% 0.88% Equity Equity MF Franklin India Bluechip - Dividend 4,347,043 7.6% 12% 0.92% 0.92% 56,980,287 Weighte d Average Yield 9.74% 7.61%
Cash Flow Projections Scenario 1: Dundlod house not being sold Scenario 1 Age Opening Balance Rental Pension earned on investments Annual Expenses Annual Savings/(Deficit) Closing Balance 61 30,793,325 400,000 360,000 2,433,463 2,400,000 793,463 31,586,788 62 31,586,788 440,000 360,000 2,496,167 2,568,000 728,167 32,314,955 63 32,314,955 484,000 360,000 2,553,711 2,747,760 649,951 32,964,906 64 32,964,906 532,400 360,000 2,605,074 2,940,103 557,371 33,522,277 65 33,522,277 585,640 360,000 2,649,121 3,145,910 448,850 33,971,127 66 33,971,127 644,204 360,000 2,684,591 3,366,124 322,671 34,293,798 67 34,293,798 708,624 360,000 2,710,091 3,601,753 176,962 34,470,760 68 34,470,760 779,487 360,000 2,724,075 3,853,876 9,686 34,480,447 69 34,480,447 857,436 360,000 2,724,841 4,123,647 (181,371) 34,299,076 70 34,299,076 943,179 360,000 2,710,508 4,412,302 (398,615) 33,900,461 71 33,900,461 1,037,497 360,000 2,679,007 4,721,163 (644,660) 33,255,801 72 33,255,801 1,141,247 360,000 2,628,062 5,051,645 (922,336) 32,333,465 73 32,333,465 1,255,371 360,000 2,555,174 5,405,260 (1,234,715) 31,098,751 74 31,098,751 1,380,908 360,000 2,457,600 5,783,628 (1,585,120) 29,513,631 75 29,513,631 1,518,999 360,000 2,332,335 6,188,482 (1,977,148) 27,536,483 76 27,536,483 1,670,899 360,000 2,176,089 6,621,676 (2,414,687) 25,121,795 77 25,121,795 1,837,989 360,000 1,985,267 7,085,193 (2,901,937) 22,219,859 78 22,219,859 2,021,788 360,000 1,755,939 7,581,157 (3,443,429) 18,776,429 79 18,776,429 2,223,967 360,000 1,483,820 8,111,837 (4,044,051) 14,732,379 80 14,732,379 2,446,364 360,000 1,164,236 8,679,666 (4,709,066) 10,023,313
Scenario 2: Dundlod house being sold Scenario 2 Age Opening Balance Rental Pension earned on investments Annual Expenses Annual Savings/(Deficit) Closing Balance 61 56,980,287 400,000 360,000 4,337,839 2,400,000 2,697,839 59,678,126 62 59,678,126 440,000 360,000 4,543,222 2,568,000 2,775,222 62,453,348 63 62,453,348 484,000 360,000 4,754,496 2,747,760 2,850,736 65,304,084 64 65,304,084 532,400 360,000 4,971,519 2,940,103 2,923,816 68,227,900 65 68,227,900 585,640 360,000 5,194,106 3,145,910 2,993,835 71,221,735 66 71,221,735 644,204 360,000 5,422,023 3,366,124 3,060,102 74,281,837 67 74,281,837 708,624 360,000 5,654,984 3,601,753 3,121,856 77,403,693 68 77,403,693 779,487 360,000 5,892,647 3,853,876 3,178,259 80,581,952 69 80,581,952 857,436 360,000 6,134,604 4,123,647 3,228,393 83,810,345 70 83,810,345 943,179 360,000 6,380,378 4,412,302 3,271,255 87,081,599 71 87,081,599 1,037,497 360,000 6,629,414 4,721,163 3,305,748 90,387,348 72 90,387,348 1,141,247 360,000 6,881,077 5,051,645 3,330,679 93,718,026 73 93,718,026 1,255,371 360,000 7,134,637 5,405,260 3,344,749 97,062,775 74 97,062,775 1,380,908 360,000 7,389,269 5,783,628 3,346,549 100,409,325 75 100,409,325 1,518,999 360,000 7,644,038 6,188,482 3,334,555 103,743,880 76 103,743,880 1,670,899 360,000 7,897,893 6,621,676 3,307,117 107,050,997 77 107,050,997 1,837,989 360,000 8,149,660 7,085,193 3,262,456 110,313,453 78 110,313,453 2,021,788 360,000 8,398,027 7,581,157 3,198,658 113,512,111 79 113,512,111 2,223,967 360,000 8,641,537 8,111,837 3,113,666 116,625,777 80 116,625,777 2,446,364 360,000 8,878,576 8,679,666 3,005,274 119,631,050
Scenario 3: Two year extension in the employment (only from cash flow perspective) Scenario 3 earned on investments (Post Retirement) Annual Savings/( Deficit) Age Opening Balance Salary Rental Pension Annual Expenses Closing Balance 60 3,731,955 9,232,224 400,000 2,400,000 7,232,224 11,248,289 61 11,248,289 9,232,224 440,000 2,568,000 7,104,224 19,208,831 62* 48,557,813 4,616,112 484,000 180,000 1,848,323 2,747,760 4,380,675 52,938,488 63 52,938,488 532,400 360,000 4,030,142 2,940,103 1,982,438 54,920,927 64 54,920,927 585,640 360,000 4,181,062 3,145,910 1,980,792 56,901,718 65 56,901,718 644,204 360,000 4,331,857 3,366,124 1,969,937 58,871,656 66 58,871,656 708,624 360,000 4,481,826 3,601,753 1,948,698 60,820,354 67 60,820,354 779,487 360,000 4,630,178 3,853,876 1,915,790 62,736,143 68 62,736,143 857,436 360,000 4,776,025 4,123,647 1,869,814 64,605,957 69 64,605,957 943,179 360,000 4,918,372 4,412,302 1,809,248 66,415,205 70 66,415,205 1,037,497 360,000 5,056,107 4,721,163 1,732,441 68,147,646 71 68,147,646 1,141,247 360,000 5,187,996 5,051,645 1,637,598 69,785,244 72 69,785,244 1,255,371 360,000 5,312,664 5,405,260 1,522,776 71,308,020 73 71,308,020 1,380,908 360,000 5,428,591 5,783,628 1,385,872 72,693,892 74 72,693,892 1,518,999 360,000 5,534,096 6,188,482 1,224,613 73,918,505 75 73,918,505 1,670,899 360,000 5,627,324 6,621,676 1,036,548 74,955,053 76 74,955,053 1,837,989 360,000 5,706,235 7,085,193 819,032 75,774,085 77 75,774,085 2,021,788 360,000 5,768,587 7,581,157 569,219 76,343,304 78 76,343,304 2,223,967 360,000 5,811,921 8,111,837 284,051 76,627,354 79 76,627,354 2,446,364 360,000 5,833,546 8,679,666 (39,757) 76,587,598 80 76,587,598 2,691,000 360,000 5,830,519 9,287,243 (405,724) 76,181,874 *Since the client would be retiring in Sept 16 in case of a two year extension, in that year we have included the retirals (EPF + Gratuity + Superannuation) in the opening balance. Also, the salary, pension income and income earned on investments is taken for the six months ending Mar 17.
Annexure 1 Recommendation Rationale The Recommended asset allocation should be used as a basis to allocate clients investment in various asset classes. This would help in alignment of risk taking ability/ behavior of the client in line with the portfolio risk. Summary and Basis of recommendations are as under: 1. Debt Mutual Funds The process for recommendations is very dynamically managed by studying the market conditions every fortnight. Recommendations are based on the AUM of the scheme, the strategy deployed, credit quality of the portfolio (most important), SD of the scheme, rolling returns of 7 days over 1 month in case of short term debt schemes and 90 days rolling over 1 year for long term debt schemes. The process is more qualitative in nature and realigned to market conditions. Currently, Fixed Maturity Plan and Short term income funds offer lucrative returns due to RBI s recent monetary policy to hold on the high interest rates to curb inflation for the next few quarters. We advise to invest in the same. Once the yield in the debt market begins to correct, we would move the funds to a long term debt fund. 2. Equity Mutual Funds We recommend following equity mutual funds as a part of equities allocation with dividend option. These schemes offer high dividends and would be useful to meet the client requirement of regular retirement income. New Recommendation Rationale Fund Action Rationale Birla MNC Fund - D Buy The fund is a theme based fund. The investment strategy is to invest in multinational companies in India. The fund s performance over the last two years has picked up. As a result the fund has come up in the top 5 ranking in its category. The fund has proved to be good dividend yielding fund for the past 3 years. The client is advised to hold on to this fund for a period of 3-5 years to generate attractive returns. Franklin India Bluechip Fund - D Buy The fund is classified as a Large Cap Fund. Although the fund is positioned 13th in our internal ranking, the fund is a superior dividend paying scheme in the large cap segment. In the current market situation, we advise to stay invested in large cap segment and benefit from the bullish phase. We advise to buy the same.
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General Disclosure: Registered office of Tata Capital Financial Services Limited ( TCFSL ) is Tata Capital Financial Services Limited, One Forbes, Dr. V.B Gandhi Marg, Fort, Mumbai 400001. TCFSL is registered with the Reserve Bank of India as an NBFC-ND-SI. TCFSL is also registered with SEBI as Investment Adviser, Registration no. INA000002215 and with IRDA as a Corporate Agent of TATA AIA & TATA AIG, Composite Corporate Agent License No: 10194868. TCFSL is also engaged in Mutual Fund Distribution business and is registered with AMFI (AMFI Registration no. ARN No. 84894.) TCFSL distributes: (a) Mutual Fund Schemes of TATA Mutual Fund (b) Life Insurance Policies of Tata AIA Life Insurance Company Limited (c) General Insurance Policies of TATA AIG General Insurance Company Limited TCFSL advises on various products and services to its clients based on independent objective criteria and sound principles of financial planning based on customer s financial goals. TCFSL may advise clients on debt securities but does not enter into principal to principal transactions with its advisory clients for such debt securities. No material disciplinary action has been taken on TCFSL by any Regulatory Authority pertaining to Investment Advisory activities. Please note that all Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing for full understanding and detail. TCFSL gets commission from the AMC for mutual fund distributed in the range of 0.05% to 1.00% for investment made through TATA Capital. TCFSL receives commission ranging from (0)% to (30)% as First year commission and renewal commission ranging from (0) % to (5)% on Life Insurance Policies bought through TCFSL. TCFSL receives commission ranging from (0)% to (15) % on General Insurance Policies bought through TCFSL. TCFSL receives commission ranging from (0 )% to (1.70 )% on Corporate Fixed deposit made through TCFSL Please note that the above charges may change from time to time and are exclusive of statutory levies like Service tax, Security Transaction tax, Stamp Duty, Exchange transaction charges, SEBI turnover fee etc. TCFSL does not recommend any transaction which is required to be dealt with on a Principal to Principal basis. Further, kindly note that there is no obligation/ compulsion on you to buy or invest in products mentioned in financial plan through TCFSL and you may invest in these products/services at your discretion through any other product distributor or service provider. TCFSL is an authorized composite corporate agent and does not underwrite the risk or act as an insurer. The contents herein above shall not be considered as an invitation or persuasion to invest. Insurance is the subject matter of the solicitation.