ArthaYantra

Financial Life Management Advisors

Mr Vishesh Handa & Family

May-2016
~ LifeTime Impact
Emergency Fund

Arsh Graduation

Arsh Masters

Inaaya Education

Inaaya Marriage

My Retirement

Emergency/Risk Coverage

Financial Planner

Kasutbh SIngh

3,15,61,141

Fulfillment Specialist

Medical Family Floater

Term Insurance

Sneha

Next Review
Nov-2016

3 Things You Should Continue

11 Things You Should Act On Now

Congratulations! Your Loans/Debt is at

reasonable level!

Reduce Your Non-essential expenses to improve your savings by Rs.

64357

You Invest in Mutual Fund/Equity! That's a

good place to make more returns than
Inflation!

Get Better Returns By Realigning Your Existing Insurances Impact

Rs.3348152

You have Pure Term Insurance Policies that

gets You Optimal Coverage and lowest
Cost. Congratulations!

Transfer Your Money From Low Returns Traditional Savings Accounts

To Recommended Portfolios Potential Impact Rs. 1436223

Restructure Existing Loans To Save More Rs. 187241

Realign Your Existing Portfolio To Get Good Returns At Much Lower

Risk

Build An Emergency Fund of Rs. 900000 for emergenecies and Keep

it in Money Market to get Better Returns.

Buy Term Insurance,, to cover Yourself and Your Family from

Uncertainities

Open Your Goal Enabler Mutual Fund Investment Account

Make One Time Investment in Your Custom Built LONG TERM

MODERATELY AGGRESSIVE Portfolio to reach Your Goals!

10
11

Initiate Your Monthly Investments via SIP in your Customer Built Vs

NIFTY Performance Portfolio
Review and Realign Your Financial Plan in 6 months

GE T B E TTE R R E TUR NS B Y R E ALIGNING YOUR E XIS TING INS UR ANC E S

WHY ENDOWMENT/MONEYBACK/ULIP INSURANCES

ARE BAD BUY

1,49,808

Your Current Investment In Insurance

Current

33,48,152

Recommended

X
R
E
T
U
R
N

value to 1/3. Net Result: Negative Return

X ULIP Policies 1st 5 years ~6% is deducted as charges!. You Need to get
15%+ Returns just to save the premium

57,21,951
4,32,600

2 Coverage/Premium Ratio is too Low:

X Endow/Money back: ~15-20X of annual premium
X ULIPs: ~10X of annual premium
X Pure Term:: ~75X of annual premium

ARTHAYANTRA RECOMMENDATION

IF YOU CONTINUE
POLICY
TYPE

POLICY NAME

PREMIUM

MATURITY
VALUE

% NET
RETURN

FUND VALUE

% NET
RETURN

NET GAIN

Endow

Jeevan Anand

5,873

1,91,000

4.43%

2,00,914

4.87%

9,914

Endow

Endowment Assurance

1,985

95,500

7.78%

1,16,992

9.45%

21,492

Endow

Lic Endowment Assurance

3,667

1,46,100

5.50%

2,21,543

8.81%

75,443

Endow

Jeevan Anand

6,315

1,75,800

6.25%

2,33,681

9.30%

57,881

Endow

Endowment Assurancew

3,507

1,48,950

5.38%

2,37,548

8.91%

88,598

Endow

Endowment Assurance

3,361

1,51,800

5.28%

2,55,031

9.01%

1,03,231

MB

Sbi Smart Power Insurance

25,000

4,85,000

-29.10%

17,76,311

10.98%

12,91,311

MB

Bharti Axa Life Monthly Income

Plan Plus

26,700

3,73,023

-38.83%

18,97,100

10.98%

15,24,077

ULIP

Hdfc Youngster Super Previum

50,000

6,06,626

3.49%

7,82,832

8.01%

1,76,206

Pure Term

Icici Pru I Protect Option Ii

23,400

AY IMPACT ->

33,48,152

RECOMMEND
ATION

TRANSFER YOUR MONEY FROM LOW RETURNS TRADITIONAL SAVINGS ACCOUNTS TO RECOMMENDED
PORTFOLIOS

MONEY MARKET VS SAVINGS/FD/RD

RETURN COMPARISON

WHY MONEY MARKET WINS ANYDAY!

AY Recommendation

INVESTED AMOUNT

AY
1. Higher Returns: Over 10 yrs ~50% more
PORTFOLIO returns than Savings, FDs/ RDs.

SAVINGS

FIXED
DEPOSIT

RECURRING
DEPOSIT

MONEY
MARKET

14

14

14

14

14

Monthly

One Time

Monthly

One Time

One Time

3.50%

7.50%

7.50%

8.50%

12.00%

ANNUAL TAX ON INTEREST

30%

30%

30%

4%

0%

AVG BREAKING LOSS

0%

1%

1%

0%

0%

INFLATION

7%

7%

7%

7%

7%

-28,230

-21,899

-12,180

18,175

97,993

1,00,000
INVESTEMENT PERIOD IN YEARS
PAYMENT FREQUENCY
ANNUAL INTEREST RATE

INFLATION ADJ RETURN

2. Liquidity As Good As Savings!

Encashment within 12-24 hrs. No Locking

period and No breakage Penalty

. Low Taxation: FD/RD/Savings ~31%

tax/annum on interest! Money Market
individual pays indexation adjusted capital
gain tax of approximately 4-5%.
3

4. Low Risk: Money Market invests in

Government bonds that are backed by Gov Of
India.

AY RECOMMENDS
Investement Type

Financial
Institute

+14,36,222

Amount
invested

Tenure

Tax Adj
Return*

Investment
Type

45,000

20.0

2.45%

AY Portfolio

12.00%

3,61,062

12.00%

10,75,161

Cash

ICICI

Cash

SBI

1,34,000

20.0

2.45%

AY Portfolio

PPF

Post Office

4,00,000

0.6

8.10%

Continue

PPF

Post Office

7,00,000

13.6

8.10%

Continue

* Effective return post tax, penalty implications

Exp Tax Adj Net Gain Over

Return
Tenure

Expected Increased Savin

+14,36,222

1,87,240

RESTRUCTURE EXISTING LOANS TO SAVE MORE

ArthaYantra Recommendation
Loan Type

Outstanding Effective
Remaining
Amount Interest Rate
Tenure

Effective
Opportunity
Rate*

Auto Loan

9,45,698

10.00%

39

4.5%

Home Loan

13,18,812

7.35%

165

6.7%

Home Loan

71,17,182

6.76%

149

6.7%

Total
*Values are approximate

Charges If
Any*

Net Savings Net Savings

(Month)
(Tenure)

Recommendation

2,256

98,104

Payoff With Insurance

19,782

496

75,022

Refinance

1,06,758

415

14,115

Continue

3,167

1,87,240

REALIGN YOUR EXISTING PORTFOLIO TO GET GOOD RETURNS AT MUCH LOWER RISK

Mr Vishesh Handa Current Asset Allocation

Asset Type

Long Term Moderately Aggressive

Allocation

Asset Type

Large Cap

64%

Large Cap

20%

Mid Cap

34%

Mid Cap

15%

Commodities

2%

Index

25%

Other

0%

MidTerm Corp

15%

GILT

15%

* Asset Allocation Only for Mutual Fund that we were able to Classify

Performance Indicator

Commodities

5%

ShortTerm Cor

5%

Value

0%

1 Yr Return

2%

36,665

12%

3 Yr Return

13%

Mutual

42,68,206

7%

5 Yr Return

17%

Total

43,04,871

17.75%

Riskiness

12.01%

0.39

Sharpe

0.86

0.81

Sortino

1.33

4.95

Alpha

3.12

1.10

Beta

0.55

No

Instruments

Equity

Amount

Allocation

WHY DIVERSIFICATION IS MORE IMPORTANT THAN STOCK/MF PICKING

Right diversification over asset classes has a greater impact on returns than the specific
investments selected or timing the market. The study, cited below*, concluded that asset allocation
accounted for 91.6% of a portfolio's investment return. Other factors such as investment selection
and market timing only accounted for 8.4% of the return. Thats because different assets behave
differently to changes in macro or sectoral changes.e.g. Gold/ bond price may increase when
equities are falling.
ArthaYantra diversifies your portfolio across 8 different asset classes. We use
Modern Portfolio Theory to run over 12 million simulations to find the right asset allocation specifically
for your Risk profile.
No wonder when markets fell by over 10% in Jan-Feb 2016 our portfolios were down by only 1.5%
and it delivers significantly higher returns than market at much lower Risk.

WHY WE DIRECTLY NOT INVEST IN EQUITY

1. High Risk:/ Low Diversification No matter how good

company's fundamentals may be, it always posses

Unsystematic Risks. Risk that can not be qualified or
foreseen. Remember Satyam or Enron! None of the analyst
predicted the great Downfall.
Or consider industry segments like Banks, Pharma, IT etc.
Their performance may get severaly impacted by one Policy
change or a macro economic event.

2. Large Ticket Size: Mutual Fund for similar amount

invested can give up to 10X higher diversification than buying
*Research: Brinson, Singer, Beebower, "Determinants of Portfolio Performance II: An Update", Financial Analysts Journal, equity directly.
May-June 1991

S ecure Your Present: B uild An E mergency Fund, B uy Pure Term C overa ge, Hea lth Insura nce a nd C ritica l Illness

1 Emergency Fund Requirement

90% of Indians are not equipped to handle emergency situations be it medical, personal or professional. ArthaYantra Recommends to
returns

Recommended Amount
Recommended Fund

9,00,000
UTI Money Market Floating Rate Fund

Money Market Fund Comparison Chart

Fund Name

1 Yr Return

UTI XXX YYY

8.65%

0.53

3.53

3.99

8.52%

0.51

3.41

4.09

8.05%

0.72

2.41

3.72

Canara ABC

Riskiness

Sharpe

Sortino
AY Recommends

2 Insurance Requirement
Insurance Type

Insurance For

Term Insurance

Mr Vishesh Handa

Medical Family Floater

Mr Vishesh Handa And Family

Personal Accident

Mr Vishesh Handa

Recommended Tenure Covered Recommended

Coverage
Vendor
2,43,52,000

15,43,000

2,54,00,000

Mrs Smithi

LONG TERM MODERATELY AGGRESSIVE : YOUR CUSTOM BUILD RECOMMENDED

PORTFOLIO BASIS YOUR RISK PROFILING AND GOALS

Risk Profile

Moderate

Portfolio

RECOMMENDED ASSET ALLOCATION

Long Term Moderately Aggressive

KEY METRICS

AY

NIFTY

Large Cap

20%

1 Yr Return

2%

-7.6 %

Mid Cap

15%

3 Yr Return

13%

8.98 %

Higher the Better

Index

25%

5 Yr Return

17%

4.68 %

Lower the Better

MidTerm Corp Bond

15%

Riskiness

12.01%

18.21%

Lower the Better

GILT

15%

Sharpe

0.86

0.36

Commodities

5%

Sortino

1.3

0.7

ShortTerm Corp Bond

5%

Alpha

3.1

Beta

0.6

1.0

LUMPSUM AMOUNT TO BE INVESTED

35,38,173

LONG TERM MODERATELY AGGRESSIVE

MONTHLY INVESTMENTS (SIP)

1,44,255

Vs NIFTY Performance

Asset Class

Fund

One Time

SIP

Large Cap

ZZZZ top 100 equity Fund

7,07,635

28,851

Mid Cap

WWW focused MidCap 30 Fund

5,30,726

21,638

Index

AAA Nifty Index Fund

8,84,543

36,064

MidTerm Corp Bond

ABC Income Growth Fund

5,30,726

21,638

GILT

BBBBB Securities Investment Plan

5,30,726

21,638

Commodities

SDC Gold Fund

1,76,909

7,213

ShortTerm Corp Bond

UAB Short term Income Fund

1,76,909

7,213

35,38,173

1,44,255

Total

CONGRATULATIONS! YOUR 6 OUT OF 6 GOALS ARE ACHIEVABLE.

Money Required
Priorit
y

Goal

Year

Current
Value

Future Value

Linked
One Time Investment/
Linked Assets

Monthly
Investment

Investment
Type

Status

Money Market

Achievable

Emergency Fund

2016

9,00,000

9,69,945

9,00,000

Arsh Graduation

2022

5,00,000

10,56,440

10,424 AY Portfolio

Achievable

Arsh Masters

2026

25,00,000

59,59,132

27,462 AY Portfolio

Achievable

Inaaya Education

2026

15,00,000

29,50,727

13,598 AY Portfolio

Achievable

Inaaya Marriage

2030

15,00,000

38,67,801

9,762 AY Portfolio

Achievable

My Retirement

2036

2,00,00,000

5,15,78,690

25,86,290

56,597 AY Portfolio

Achievable

Total Value

2,69,00,000

1,13,850

TAX OPTIMIZATION
Linked

No

Area

Section 80 C

Section 80 D ( Self)

Max Limit

Shortfall To
Cover

Recommendation

Where

40,000 XXX Long Term Equity Fund ( ELSS) - ZZZ

arthayantra.com

25,000

25,000 Health Insurance ( Family Floater/ Individual)

bimadirect.com

Section 80 D (
Parents)

30,000

30,000 Health Insurance ( Family Floater/ Individual)

bimadirect.com

Section 80 CCD

50,000

50,000 NPS ( National Pension Scheme)

arthayantra.com

Section 24 B

Total Impact

1,50,000

20,00,000

2,00,000 Home Loan ( Subjective)

+1,13,850

arthayantra.com

Ta ke a Print !

Name

Mr Vishesh Handa

Personal Financial Planner

Kasutbh SIngh

Potential Impact

THE C HE AT S HE E T - Your R ea dy R eckoner of To Do's !

Act On IT !
Age

38

Planing For

Individual

Fulfillment Specialist

+3,15,61,141

Insurance Coverage

5,12,95,000

S tick to the Pla n!

Sneha
Goals Achievability

6/7

Way to success is not just to plan but to act on it !

W hy

W ha t

Your Non-essential expenses to improve your savings by Rs.

Save More Reduce
64357

Money In/Out

W here

64,357

Get Better Returns By Realigning Your Existing Insurances Impact

Save More Rs.3348152

33,48,152

Save More Transfer Your Money From Low Returns Traditional Savings Accounts To
Recommended Portfolios Potential Impact Rs. 1436223

14,36,222 arthayantra.com

Save More Restructure Existing Loans To Save More Rs. 187241

Save More Realign Your Existing Portfolio To Get Good Returns At Much Lower Risk
Secure
Present

Build An Emergency Fund of Rs. 900000 for emergenecies and Keep it in

Money Market to get Better Returns.

Secure
Present

Buy Term Insurance,, to cover Yourself and Your Family from

Uncertainities

Build
Future

Open Your Goal Enabler Mutual Fund Investment Account

Build
Future

Make One Time Investment in Your Custom Built LONG TERM

MODERATELY AGGRESSIVE Portfolio to reach Your Goals!

Build
Future

Initiate Your Monthly Investments via SIP in your Customer Built Vs NIFTY
Performance Portfolio

Build
Future

Review and Realign Your Financial Plan in 6 months

1,87,240 arthayantra.com
43,04,871 arthayantra.com
9,00,000
44,280 arthayantra.com
arthayantra.com

35,38,173 arthayantra.com
1,44,255 arthayantra.com
arthayantra.com

W hen

S ta tus

APPENDIX A: INSURANCE CALCULATIONS

ULIPS

HDFC

POLICY NAME
ISSUED ON

Hdfc Youngster
Super Previum

30-Mar14

PREMIUM

50,000

INVESTMENT TILL DATE

1,50,000

LESS COMMISION

17,587

LESS MORTALITY CHARGES

3,632

NET INVESTMENT

1,28,781

FUND VALUE

98,543

% EFFECTIVE RETURN

-0.59%

MONEYBACK
POLICY NAME
ISSUED ON

SBI

Bharti Axa

Sbi Smart Power

Insurance

Bharti Axa Life

Monthly Income
Plan Plus

7-Dec14

14-Nov14

25,000

26,700

TENURE

20

20

BONUS

38

38

180

180

PREMIUM

EXIT BONUS
MATURITY VALUE
% EFFECTIVE RETURN

ENDOWMENT
POLICY NAME
ISSUED ON
PREMIUM
TENURE

0.00%

0.00%

LIC

LIC

LIC

Jeevan Anand

Endowment
Assurance

LIC

Lic Endowment
Jeevan Anand
Assurance

LIC

LIC

Endowment
Assurancew

Endowment
Assurance

12-Nov02

12-Nov10

12-Nov10

17-Dec12

3-Nov10

12-Nov10

5,873

1985

3667

6315

3507

3361

20

20

21

16

22

23

BONUS RATE

38

38

38

38

38

38

EXIT BONUS

150

150

150

150

150

150

1,91,000

95500

146100

175800

148950

151800

4.43%

7.78%

5.50%

6.25%

5.38%

5.28%

MATURITY VALUE
% EFFECTIVE RETURN

APPENDIX B: EXISTING MUTUAL FUNDS AND EQUITIES

MUTUAL FUND

1-Year
Return

3-Year
Return

5-Year
Return

Standard
Deviation -

Sharpe
Ratio -

Sortino
Ratio -

Beta -

Alpha -

19.79

0.45

0.9

1.23

2.24

DSP BlackRock Dynamic Asset Allocation

Fund - Direct Plan

5.87

HDFC Top 200 Fund

-5.18

12.45

8.48

4.1

0.79

0.98

1.73

0.95

ICICI Prudential Dynamic Bond Fund

9.96

8.25

9.29

14.62

0.8

1.28

0.87

ICICI Prudential Dynamic Fund

-2.81

17

10.98

15.22

0.7

1.23

0.97

5.3

ICICI Prudential Focused Bluechip Equity

Fund

-1.64

15.14

11.7

24.11

0.4

0.75

1.39

2.11

ICICI Prudential Infrastructure Fund

-9.7

12.62

16.03

0.57

1.09

1.02

3.57

ICICI Prudential Select Large Cap Fund

-3.99

13.73

9.55

18.29

1.12

1.97

1.05

14.7

ICICI Prudential Value Discovery Fund

-0.73

26.3

17.65

16.69

1.08

1.66

0.93

12.91

IDFC Premier Equity Fund - Direct Plan

0.92

24.23

JP Morgan India Balanced Advantage Fund

- Direct Plan

2.01

L&T Arbitrage Opportunities Fund - Direct

Plan

7.28

16.26

0.73

1.28

1.03

6.3

L&T Equity Fund

-3.58

16.72

10.9

16.32

0.74

1.36

1.01

6.58

L&T India Special Situations Fund

-1.38

17.02

13.13

15.89

1.76

10.41

Mirae Asset India Opportunities Fund - Direct

Plan

2.57

20.97

26.79

0.35

0.67

1.38

1.88

Reliance Diversified Power Sector Fund

-1.76

11.97

0.23

16.23

0.59

1.03

1.01

4.07

Reliance Focused Large Cap Fund

-5.19

13.44

9.76

15.85

0.56

0.95

0.97

3.65

SBI Contra Fund

-0.94

13.14

8.95

25.61

0.32

0.6

1.51

0.02

UTI Infrastructure Fund

-10.56

11.06

ArthaYantra Mission 2016

Make 1,00,000 Indian Family's Future Financially Secure
Fact Sheet
Users Served

90000+

In 600+ Cities
in 30+ Countries

90% Customers On Track to Achieve Their Goals

92% Customer Extremely Satisfied with Service
64% of Our Customer Refer Us to their Friends!

WE MANAGE YOUR FINANCIAL PLAN TO PROVIDE YOU

Free Lifelong Relationship Till You Reach Your Goals!

Threshold Based Real Time Tracking of Your Portfolio by Machines
6 Months Review of Plan and course correction
Free Online Account Transaction and Tracking Platform
Arthayantra Corporate Pvt Ltd
Address: 3rd Floor, Sai Galleria, Plot No., 472, Rd
Number 36, Aditya Enclave, Venkatagiri, Jubilee
Hills, Hyderabad, Andhra Pradesh 500081
Phone:040 6658 8259