Financial Planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a house, saving for your child's higher education or planning for retirement. The Financial Planning Process consists of six steps that help you take a 'big picture' look at where you are currently. Using these six steps, you can work out where you are now, what you may need in the future and what you must do to reach your goals.
Establishing and defining the Client-Planner relationship.
The Financial Planner should clearly explain or document the services to be provided to you and define both his and your responsibilities. The Planner should explain fully how he will be paid and by whom. The Planner should also disclose any restrictions on his ability to give unbiased advice and disclose any conflicts of interests. You and the Planner should agree on how long the professional relationship should last and how decisions will be made.
Gathering client data, including goals.
The Financial Planner should ask for information about your financial situation. You and planner should mutually define your personal and financial goals, understand your time frame for results and discuss, if relevant, how you feel about risk. The Financial Planner should gather all the necessary documents before giving you the advice you need.
Analyzing and evaluating your financial status.
The Financial Planner should analyze your information to assess your current situation and determine what you must do to meet your goals. Depending on what services you may have asked for, this could include analyzing your assets, liabilities and cash flow, current insurance coverage, investments or tax strategies.
Developing and presenting Financial Planning recommendations and/or alternatives.
The Financial Planner should offer Financial Planning recommendations that address your goals, based on the information provided by you. The Planner should go over the recommendations with you to help you understand them, so that you make informed decisions. The Planner should also listen to your concerns and revise the recommendations as appropriate.
Implementing the Financial Planning recommendations.
You and the Planner should agree on how the recommendations will be carried out. The Planner may carry out the recommendations or serve as your 'coach', coordinating the whole process with you and other professionals such as solicitors or stockbrokers.
Monitoring the Financial Planning recommendations.
You and the Planner should agree on who will monitor your progress towards your goals. If the Planner is in charge of the process, she should report to you personally to review your situation and adjust the recommendations, if needed, as your life changes.
Marvel Investments,helps in implementing the Financial Plans of the clients of various Financial Planners and SEBI Registered Investment Advisers.
In recent times, Mutual Funds, as an investment vehicle are gaining popularity in India. It is one of the important tools to build wealth and achieve short and long-term financial goals.
Different types of mutual funds are ideal for different time-horizons of Investment and the duration in which the financial goal falls due.
Liquid Funds: These are the lowest risky category of mutual fund. They offer liquidity just like savings bank account with decent returns. You can deposit or withdraw money anytime, without any exit load. These type of funds generally invest in money market instruments, ideal for very short-term goal, which falls due within a time horizon of 1 to 2 year(s).
Debt Funds: A debt fund invests in fixed-interest generating securities like corporate bonds, government securities, treasury bills, commercial paper etc. These are also less risky, which makes them ideal for short-term goal falling due within a time horizon of 2 to 4 years.
Hybrid Funds: These funds invest in both debt instruments and equities. They are regarded as safer bets than pure equity funds. Investors having medium term goals, with a time horizon of 5 to 7 years, may opt for these funds. Not only this, these funds provide the much needed stability to a long term investment portfolio.
Equity Funds: These funds invest directly in shares of different companies of different market capitalization. It might be a purely large-cap, mid-cap or small-cap fund or a mixture of market capitalization. Moreover, the investing style may be value-oriented or growth-oriented. These are suitable for long term goals, having a time horizon of more than 7 years, providing the fund ample time to ride out the market fluctuations.
When you fall ill, it is not advisable to take medicine directly from the chemist, without consulting a doctor. Just like that, it is also not advisable to invest in Mutual Funds, without consulting a Financial Planner. Financial Planner can guide you better on which funds are suitable for you according to your Risk Profile, Time Horizon and Financial Goals.
Marvel Investments, do not accepts investments in Mutual Funds, without Financial Plan.
We first refer the investor to a Financial Planner preferably, SEBI Registered Investment Adviser, for preparation of the financial plan. After that we help in implementing the same.
Insurance Planning or Protection Planning is the foundation of every financial plan. It not only helps mitigate uncertain risks, but also provides protection to accumulated wealth. Proper risk management and insurance planning are necessary for long-term financial success. Generally, three types of insurances help us to cover all sort of uncertainties:
Life Insurance: Have you ever thought, what would happen to your family , when you are gone? How are they going to survive? Who will take care of the EMIs and kid's education? Term life Insurance, of adequate sum assured can protect your family, from these uncertainties. A lump sum amount (sum assured) is paid to the beneficiary, in the event of death of the policyholder,during the term of the policy.
Health Insurance: "Health is Wealth",They say. But,bad health may destroy your wealth too. Medical care in India is expensive, especially in the private sector. Hospitalization can burn a hole in your pocket and derail your finances.
This situation can be avoided by taking a good health insurance policy of adequate sum assured, for each and every member of the family covering medical expenses to the maximum extent, possible.
Personal Accident Insurance: Disability is more dangerous than death. It not only increase the expenses, reduces income as well.
So, it becomes prudent to take Personal Accident Policy, covering all sort of disabilities, whether temporary, permanent or partial, resulting from an accident. It provides financial protection to the policyholder or his dependents, in the event of accidental death or disability.
We at Marvel Investments, help the clients in procuring appropriate life, health and personal accident insurances, as advised in their financial plans.