Which sounds better among above two options?
Both are appropriate for an Individual and a business respectively!

• Do you know your Inflows? Have you calculated your Out-flows?
• Are u saving or are u over drawing or in debt?
• Do you run your personal budget sheet every month or at least review your cash flows every year?
• Is your system for handling income and expenses giving you the flexibility and protection you're looking for?
• How is it serving your short-term and long-term financial goals? And is it keeping up with your lifestyle?

Cash Flow is not just about calculating your inflows and outflows to observe Savings or Over Draw but also to plan your high priority goals within your income reach such as vacation abroad, buying new furniture etc.

Upon observing your cash flows you can also start listing your goals and further prioritize them as per their respective funding requirement in stipulated time frame such as education, marriage, retirement etc.

When headed for a particular destination, choosing the right path is the difference between straying and arriving.

Having a monthly system in place is vital to ensure you meet your – financial goals and financial needs, both, successfully month after month. Using insight and market intelligence, SERNET can help you arrive to your destination in the quickest possible time.

Highlights

• Benefit from the guidance of a dedicated Financial Advisor assigned to you
• Analyse and set a fixed target for expenses in a month
• Preempt potential problems in meeting financial obligations
• Build up and access a ‘Rainy Day’ Fund
• Save on tax and you hold on to as much of your income as possible
• Simplify saving – chart your own investment plan

To know how SERNET can help you with your Budget, click here

Indentifying, realizing and correcting to level strengths and weaknesses in managing finance, that’s the simple and one point strategy one should apply.
One should define day-to-day needs and long-term goals first. Setting priority is the key to managing a financial plan as it gives oneself options going forward.

1. Analyze your spending for a month to see where your income goes. If your living expenses are greater than your income, you’ll need to find ways to economize.
   
   
2. Your spending can be broken down into three categories: Fixed Committed Expenses, Other Committed Expenses, and Discretionary Expenses.
   
   
3. To free up cash for savings, begin by reducing Discretionary Expenses, then look at Other Committed Expenses.
   
   
4. You can set aside a part of each paycheck for automatic savings. Ask your bank or credit union about payroll Savings plans and investigate your employer-sponsored retirement plan.
   
   
5. To create a budget, you don’t need to make complex calculations using specialized computer softwares. A pen, some paper and insight is sufficient.
   
   
6. Please Pay down credit-card debt aggressively. Once the debt is paid off, direct the extra money to savings.
   
   
7. Please Review your budget periodically to make sure it is still in line with your needs and goals.

Using your plan as a guide, your advisor might recommend that you follow a monthly schedule for placing money in an investment vehicle suitable to your financial situation, such as a mutual fund or an accessible money-market account. Your plan may lay out a gifting schedule to help reduce your tax liability, or specify a maximum annual payment into a PPF A/c or other tax-deferring instrument.

It’s your resource of earning or withdrawal from your cash flows and so is the starting point for managing your finance; hence crucial. We recommend below process.
 

1. Analyse whether you should be building your cash reserve. If you realize the need then immediately create your "rainy day" fund
2. Try to reduce your overall tax liability through tax management strategies
3. Calculate how your cash flow affects regular contributions to savings
4. Calculate how big events in your life (births, deaths, marriages, work and educational achievements) can affect your daily finances

Advantages:

• Establishes target levels for income and expenses, which can be used in monitoring progress towards goals
• Points out potential problems in meeting financial obligations
• Indicates when cash is available for new investments

Considerations:

• Cash Reserves: Whether you have substantial cash flow or want to begin building cash reserves, don't overlook the need for readily accessible funds that you can get at quickly, without penalties or loss of investment value
• Taxes: Always consider your tax liabilities to choose among the many strategies for holding onto as much of your cash and assets as possible
• Protection and Security: If your primary financial concern is protecting your family, you and your advisor can review options such as life insurance and annuities that offer investment features while offering an insurance benefit

Saving and Investing: Managing your regular savings and investing with your personal goals in mind is often complex, and a one-on-one relationship with an advisor can be invaluable.

The client would be offered the following

1. Financial Plan: Indicating required savings to meet desired goals in required Asset Allocation
2. Mailers and Messages: Updating with current market trends, indices and informing about available new or concurrent schemes
3. Periodic Reports: Showing current status of the executed plan on regular intervals or on
   demand* (*Charges apply)
4. Annual Review by the advisor: Restructuring the plan if required

Charges

• First Meeting chargeable on hourly basis.
• Following charges shall be discussed on case to case basis.

Declaration

What is a Budget ?

Budget is Estimate of inflows and outflows of the Government during a year. Budget is presented for the ensuing Financial year.

What does Budget consist of?

Every budget consist of Actual figures for preceding years, Budget and revised figures for the current year, Budget estimates for the following years

So the Budget presented in March 2001 will be estimate of Inflows and outflows of the Funds for the period beginning from 1st April 2001 to 31st March 2002.

When is Budget presented?

Budget is to be presented in Lok Sabha on a day as the President directs. By convention, the Budget is presented in Parliament on the last working day of February.

Who draws the timetable for Budget?

Timetable is drawn by the Business Advisory Committee (BAC) of Parliament. In the schedule drawn up by the BAC, there is a fixed period of discussion for each ministry.

Who has the responsibility for Budget?

Budget Division in the Finance Ministry has the overall responsibility. It prepares the budget on basis of proposal received from various departments and ministries and the availability of funds. However, final approval is from the Prime Minister.

What if Budget is not approved by 1st April?

The Constitution empowers Lok Sabha to grant a Vote-on-Account (Article 116) so that the government can continue with the necessary expenditure into the new fiscal, before the Budget proposals actually get passed after necessary discussions. The vote-on-account normally covers the expenditure requirement of the government for two months.

Is it compulsory to have budget for every year?

Yes. Under Article 112 of the Constitution, a Statement of estimated receipts and expenditure of the Union Government has to be laid before the Parliament in respect of every financial year running from 1st April to 31st March. The Receipt and Payments of the Government is categorised in three parts:

• Consolidated Fund. : All the inflows like Tax and other Revenues as well as Loans raised by it form part of this category. All outflow including expenses etc also form part of this Account. For withdrawal from this fund parliament authorisation is required.
  
  
• Contingency Fund: It is the money kept at the disposal of the President to meet out any unforeseen expenses. The corpus of the fund is merely Rs.50 Crores.
  
  
• Public Account: This category comprises of money raised from various Schemes of the Government like Provident Fund. But this was the technical framework. To put simply it is Annual financial discipline like other corporates prepare Profit and Loss Account and Balance Sheet. However to what disclosure norms the government accounts are subjected to is mystery. We have seldom come across the laid down norms like other balance sheets to disclose the information in a manner prescribed.

How to understand the Budget Document?

You need to carefully read the Part - A & Part - B of the Budget Speech of the Finance Minister to understand the proposals. Although going through the Budget speech may not always be foolproof to understand the basic provisions as political compulsion may force the FM to present the glorious aspect of the Budget proposals.

PART A of the Budget Speech covers the broad outlays of money for different Sectors. Introduction of new Schemes, Priorities of the Government and focus areas are also indicated in this part. For proper and clear understanding of this Part, it is necessary to refer to Volume -1 and /volume-2 which deals with the entire matter in a very objective and quantitative terms. Here the last year "s Budget data is compared with that of actual (the same is called revised estimates which is usually based on transactions till 31st Dec.)

So Part A of the Speech is more concerned about the Macro aspect of the Economy. This part is of more interest to the economist.

PART B deals with Taxation proposals. It has direct bearing over your family finances, which may squeeze or spread due to the proposals. Like last year Budget was quite rewarding to the women, as the FM announced NO tax for women up to Rs.5000 of Tax. But again PART A should be read with Volumes giving the absolute clarity.

PART B should also be read with Finance Act. Finance Act is a document containing Legal provisions. A general reader can grasp the provisons by going through the Memorandum of Explanations attached, which gives the broad background of the new changes etc.

What is the process of Budget approval?

The Finance Minister introduces the budget in the Lower House of the Parliament or the Lok Sabha & makes a short speech, giving a overall view of the budget.

After the presentation of the Budget, Parliament allots some time for a general discussion on the Budget. The finance minister replies at the end of the general discussion. The reply is also of a general nature and no specifics of the Budget are discussed. However, no motion is moved nor voting required at this stage.

After the finance minister's reply, Lok Sabha takes up for discussion each ministry's expenditure proposals, and is known as demand for grants. The demands for grants presented by each ministry are taken up by the House.

After, the prescribed period for the discussion on demands for grants is over, the Speaker applies the `guillotine', and all the outstanding demands for grants, whether discussed or not, are put to vote at once. Only the Lower House is entitled to vote.

Appropriation Bill is introduced in the Lok Sabha after it has passed all demands for grants relating to all ministries. This is to authorise the government to draw funds from the Consolidated Fund of India. Once this Bill is passed, it becomes the Appropriation Act and is certified as a Money Bill.

After passing of Appropriation Bill, the Finance Bill is introduced and it incorporates all taxation proposals. At this stage, amendments for tax proposal can be moved. After the passing of this Bill, it enters the statute as the Finance Act. Thus the final Budget gets approved.

Appropriation Bill
A Bill presented to Parliament for approval providing for the withdrawal or appropriation by the government from and out of the Consolidated Fund of India .

Bank credit
It includes loans, cash credit and overdrafts, and inland bills and foreign bills purchased and discounted. Bills exclude those rediscounted .

Budget estimates
The estimates of government spending on various sectors during the year, together with an estimate of the income in the form of tax revenues, form the Budget estimates.

Balance of Payment
Statement showing the country's trade and financial transactions (all economic transactions) in terms of net outstanding receivable or payable from other countries with the rest of the world for a period of time.

Bill
The draft of a legislative proposal which, when passed by both the Houses of Parliament and assented to by the President, becomes an Act.

Budget Deficit
It is part of the fiscal deficit. It represents the borrowing requirement of the center.

Consolidated Fund
All revenues received by Government, the loans raised by it, and receipts from recoveries of loans granted by it, form the Consolidated Fund.

Contingency Fund
Fund into which the Government dips its hands in emergencies, to meet urgent, unforeseen expenditures and can't wait for authorization by Parliament.

Consumer price index
A price index covering the prices of consumer goods.

Corporate Tax
A tax on the profits of firms, as distinct from taxation of the incomes of their owners

Capital budget
The list of planned capital expenditures prepared usually annually

Current Account Deficit
An excess of expenditure over receipts on current account in a country's balance of payments.

Current Account Surplus
An excess of receipts over expenditure on current account in a country's balance of payments.

Customs Duty
A tax on imports, or tariff.

Disposable Income
Income less income tax.

Direct taxes
Taxes which affect the consumer directly, such as income tax, corporate tax, capital gains tax etc.

Disinvestment
The selling of the Government's stake in public sector undertakings.

DCF
Discounted cash flow.

Effective rate of interest
The percentage rate of return on an annual basis. It reflects the effect of intra-year compounding.

Excise duties
Levied on items manufactured within the country and are paid by the manufacturer.

Fiscal Deficit
It is the gap between center's receipts & payments.

Foreign Direct Investment
Investments of a company incorporated outside India either through a branch or a representative office or through a subsidiary company set up in India.

Foreign institutional investor
FII is an institution established or incorporated outside India, which proposes to make investment in India.

Gross Domestic Product (GDP)
The total of market value of the finished goods and services produced in the country in a given year. It is made of three sectors Agriculture, Industry & Services.

Gross National Product (GNP)
The total market value of the finished goods and services produced in the country in a given year, plus the income of domestic residents from investments made abroad, minus the income earned by foreigners abroad from the domestic market.

Income Tax
Tax levied on individual income from various sources like salaries, investments, interest, etc.

Inflation
Inflation rate is the percentage rate of change in the price level.

Indirect taxes
Taxes which are charged on goods produced, imported or exported : Excise and Customs duties

Marginal tax rate
The tax rate applicable to income at the margin

Monetised Deficit
It is amount by which fiscal deficit is going to be financed by printing of currency.

M1
It is also called narrow money & includes currency with public (notes and coins in circulation less cash in hand with banks), deposit money with public, and `other' deposits with RBI.

M3
It is also called broad money & includes M1 plus time deposits with banks. Time deposits exclude inter-bank deposits.

National Debt
The total outstanding borrowings of the central government Exchequer. It is the debt owed by the government as a result of earlier borrowing to finance budget deficits.

Primary Deficit
This is fiscal deficit minus interest cost.

Payback period
The length of time required for an asset to generate cash flows just enough to cover the initial outlay.

Peak rate
The highest rate of Customs duty applicable on an item

Per Capita Income
The national income of a country, or region, divided by its population.

Performance budget
A budget prepared ex post-facto to compare actual results with costs that should have been incurred at the actual level attained.

Portfolio
A combination of assets.

Progressive tax structure
A tax structure in which the marginal tax rate increases as the level of income increases.

Revenue Deficit
This is the gap between center's expenditure & revenue resources.

Reserve money
It refers to money supplied by RBI and Central government.

Revenue Expenditure
Revenue expenditure is for the normal running of the government’s department and various services, interest charged on debt incurred by government, subsidies, etc.

Revenue Receipts
Revenue receipts consist of tax collected by the government and other receipts consisting of interest and dividend on investments made by government, fees and other receipts for services rendered by government.

Scheduled banks
banks, which are included in the second schedule to the Reserve Bank of India Act 1934.

Subsidies
Financial aid given by the Government to individuals or groups.

Sales Tax
A tax levied as a percentage of retail sales.

Tariff
A tax applied to imports.

Wholesale Price Index
The prices of goods, which are dealt with, wholesale, mainly bulk goods, which are mostly inputs to production rather than finished commodities.

A child brings not only great joy and happiness in your life, but also a huge sense of responsibility towards his or her upbringing. In the process of raising your child you want to provide him or her best resources and opportunities so that he/she lives up to your dreams and realizes his or her full potential.  

It is said that good education is the passport to a successful career. Today, when career opportunities have grown manifold, there are many professional courses that your child can aspire for. But the cost of higher education has increased exponentially.

Generally these goals can neither be postponed nor compromised on the amount.

SERNET helps you identify the best investment vehicles that can ensure that no matter what, you child enjoys the very best opportunities.

Highlights

• Benefit from the guidance of a dedicated Financial Advisor assigned to you
• Counter high rate of inflation with timely investments
• The more you invest, the sooner you achieve your targets or
• The sooner you invest, the more and comfortable you achieve your targets
• Explore life insurance as a contingency plan

To know how SERNET can help you with your Children’s Education, click here

An Indian survey indicates that the money you spend on your child’s development over 25 years could vary between Rs 20 - 50 lakhs, without considering inflation. With such numbers constantly being thrown at you, there is no doubting the importance of a sound financial plan, and particularly one that caters to your child’s requirements over the years.

While you can probably take care of your children’s regular expenses, you should definitely plan in advance for special events like your child’s

• Admission into college (age 17-18)
• Higher education (age 21-22)
• Wedding (age 23+) and probably
• Starting a business (age 23+)

Not only are these events milestones, they also cost money higher than your regular expenses. Table 1 below gives some representative amounts that you should keep aside for these heads.

Moreover, if your child is 3 years old today, the same expenses will inflate over the future years. Assuming a 6% rate of inflation, the above costs will now be approximately:

It is never too early to start saving and investing for your child's future; especially in today's context.

On the practical side is the cost of bringing up your child. Money is limited, and the demands far exceed the supply. During your earning years, you have to manage a number of things - basic living expenses, buying a house, raising your children, and planning your retirement. For the majority of people like you, the big question is how to manage finances so that fulfill all your responsibilities, and still enjoy life! 

There are many products which your Financial Planner can use to achieve the above objectives. For example, he could suggest a

1. Children's Future Plan offered by any good insurance company, to build a corpus for your child's higher education, and provide for a security cover in the event of the parent's unfortunate demise. Children's plans are also available under unit-linked option. Being unit-linked, they offer access to investments in all kinds of asset classes - equity, debt and cash.
                                                                      Or / And
   
   
2. Long term Mutual Fund SIP Program that will provide the target amount required for your goal.

What we do: Our Wealth Management process comprises of 4 simple steps.

1. Goal Seek Analysis
2. Asset Allocation
3. Product Recommendation
4. Periodic Review

Advantages:

• Your financial plan is geared for the education expenses of your child
• Come what may, your child’s future is secured
• Choose among Children's Future Plans to Long term Mutual Fund SIP Programs

Considerations:

• The more you save, the better: Even if you only spare an additional thousand rupees more, it will make a big difference over the years.
• The earlier you start, the better: If you wait to start saving up for your child’s education, you will end up having to save a larger amount each month.
• The more (interest/appreciation) you earn, the better: Choosing the right investment plan can help you reach your target sooner.
• Need for diversification: Your investment portfolio must be a good mix of guaranteed (usually lower returns) and high-yield (usually risky) products.

Need for liquidity: Safeguard your savings by making sure that you have emergency cash available, the equivalent of 6 months of your monthly expenses.

The client would be offered the following

1. Financial Plan: Indicating required savings to meet desired goals in required Asset Allocation
2. Mailers and Messages: Updating with current market trends, indices and informing about available new or concurrent schemes
3. Periodic Reports: Showing current status of the executed plan on regular intervals or on demand* (*Charges apply)
4. Annual Review by the advisor: Restructuring the plan if required

Charges

1. First Meeting chargeable on hourly basis.
2. Following charges shall be discussed on case to case basis.

Declaration

Eg. MARRAIGE: A happy, lavish wedding is something that every parent wants for his/her child. Every little aspect of the wedding from the dinner menu to financial future of the wedded couple is given a great deal of thought. With the ever rising inflation, it is important that one plans for the expense lest a happy occasion becomes a financial burden.

SERNET helps you identify the best investment vehicles to make your most valuable celebrations possible.

 Highlights

• Benefit from the guidance of a dedicated Financial Advisor assigned to you
• Counter high rate of inflation with timely investments
• The more you invest, the sooner you achieve your targets or
• The sooner you invest, the more and comfortable you achieve your targets
• Explore life insurance and general insurance as a contingency plan

To know how Sernet can assist you with your preparations for your celebrations, click here

content

At 6 % rate of inflation, a lavish wedding that now costs Rs. 30 lakhs will cost over Rs. 96 Lakhs 23 years later, when your child is of marriageable age.

What we do: Our Wealth Management process comprises of 4 simple steps.

1. Goal Seek Analysis
2. Asset Allocation
3. Product Recommendation
4. Periodic Review

Advantages:

• Your financial plan is geared for the marriage expenses of your child
• Come what may, your child’s event as well future is secured
• Choose among Children's Future Plans to Long term Mutual Fund SIP Programs

Considerations:

• The more you save, the better: Even if you only spare an additional thousand rupees more, it will make a big difference over the years.
• The earlier you start, the better: If you wait to start saving up for your child’s marriage, you will end up having to save a larger amount each month.
• The more (interest/appreciation) you earn, the better: Choosing the right investment plan can help you reach your target sooner.
• Need for diversification: Your investment portfolio must be a good mix of guaranteed (usually lower returns) and high-yield (usually risky) products.
• Need for liquidity: Safeguard your savings by making sure that you have emergency cash available, the equivalent of 6 months of your monthly expenses.

The client would be offered the following

1. Financial Plan: Indicating required savings to meet desired goals in required Asset Allocation
2. Mailers and Messages: Updating with current market trends, indices and informing about available new or concurrent schemes
3. Periodic Reports: Showing current status of the executed plan on regular intervals or on demand* (*Charges apply)
4. Annual Review by the advisor: Restructuring the plan if required

Charges

1. First Meeting chargeable on hourly basis.
2. Following charges shall be discussed on case to case basis.

Declaration

A retirement plan is an assurance that you will continue to earn a satisfying income and enjoy a comfortable lifestyle, even when you are no longer working.

Tomorrow never dies...but today does count! Time is priceless, but prices are raising everyday. You can imagine how high they will be when you are ready to retire. A retirement plan provides you with a steady income every month, and arms you in the face of rising costs. By analysing your financial state and outflow, SERNET can identify the most suited retirement plan for you.

Highlights

• Benefit from the guidance of a dedicated Financial Advisor assigned to you
• Counter high rate of inflation with timely investments
• Realise importance of saving for your self with your dependant’s future as well.
• Earlier the better policy suits best to this situation.

To know how SERNET can help you retire rich, click here

Participation in Annuities is of three types

1. Public
2. Private
3. Voluntary

Retired Persons then support themselves either through superannuation, pensions, or savings. In most cases the money is provided by the government, but sometimes granted only by private subscriptions to mutual funds or market linked pension plans. In this latter case, subscriptions might be compulsory or voluntary. In some countries an additional "bonus" is granted once only in proportion to the years of work and the average wages; this is usually provided by the employer.

Importance of Retirement Planning

1. Retire from work. Not from life: A retirement plan is an assurance that you will continue to earn a satisfying income and enjoy a comfortable lifestyle, even when you are no longer working.
   
   
2. Independence is the new way of life (Nuclear Family): An increasing number of young Indian professionals are moving away from the traditional joint family structure. Since support no longer comes easily, parents have realized the need to provide for themselves during their retirement years.
   
   
3. Costs set to soar (Inflation): Skyrocketing costs throw even a well-salaried person off balance. With rates rising everyday, you can imagine how high they will be when you are ready to retire. A retirement plan provides you with a steady income every month, to arm you in the face of rising costs.
   
   
4. Non-earning retirement phase is now longer: Only 4% of India working population- mostly government employees – are covered by pensions. The remaining 96% comprises self-employed and salaried professionals who do not have a formal, mandated provision for pensions.

The financial weight of provision of pensions on a government's budget is often heavy and is the reason for political debates about the retirement age. The state might be interested in a later retirement age for economic reasons.

Only 4% of India working population (mostly government employees) are covered by pensions. The remaining 96% are self-employed and salaried professionals who do not have a formal, mandated provision for pensions.

What we do: Our Wealth Management process comprises of 4 simple steps.

1. Goal Seek Analysis
2. Asset Allocation
3. Product Recommendation
4. Periodic Review

Advantages:

• Your financial plan is geared for your retirement needs
• Come what may, your or your spouse’s resting days are smooth and secured
• Choose among Pension Plans to Long term Mutual Fund SIP Programs

Considerations:

• Income requirement in retirement: Consider aspects like inflation on medical costs, vacations and gifts for family to live comfortably and independently in your post-retirement years.  Understand the time value of money. Earlier the better is the right mantra for creating your retirement kitty; so start investing in the pension plan right away.
  
  
• Savings need to be done today: Consider aspects like current annual income, change in the same every year, funds already set aside for retirement and earning on the same, dependant family members and your monthly cash flow statement 

Select the right retirement plan: Consider aspects like your age, financial stage, risk tolerance, asset allocation. Accordingly choose a plan that enables you to meet your post-retirement requirements. Market Linked plans can provide you with potentially higher returns in the long run.

The client would be offered the following

1. Financial Plan: Indicating required savings to meet desired goals in required Asset Allocation
2. Mailers and Messages: Updating with current market trends, indices and informing about available new or concurrent schemes
3. Periodic Reports: Showing current status of the executed plan on regular intervals or on demand* (*Charges apply)
4. Annual Review by the advisor: Restructuring the plan if required

Charges

1. First Meeting chargeable on hourly basis.
2. Following charges shall be discussed on case to case basis.

Declaration

Wealth Accumulation is the most common and most unorganised need of a human.
All Wealth Accumulation tools can be expressed basically as combinations of death protection and survivorship benefits

We all long for financial security, peace of mind and freedom from worries. Even more in today's stressful and turbulent times

It is true that nothing can replace human life and it is impossible to predict the occurrence of certain events. But what if there was device that could mitigate these risks and replace life's uncertainty with certainty? What if it could eliminate your worries and provide you with the comfort that money would always be there when we need it the most: Bull, Bear or sideways markets. It would preserve your wealth and help you plan way ahead-10, 20, 30, 40 years or more. And that too by paying an inconsequential sum each year!

Highlights:

• Benefit from the guidance of a dedicated Financial Advisor assigned to you
• Counter uncertainty and high rate of inflation with timely investments and insurance
• Realise importance of common minimum goal of wealth accumulation.
• Being prepared for uncertainty policy suits best to this situation.

To know how SERNET can help you accumulate wealth, click here

Whether you are starting out in life, or already a career achiever or contemplating retirement remember this;

• Investment work as Income feeder, retirement tool etc collectively as a wealth enhancer
• Insurance work as protection for death, liability etc collectively as a wealth preserver

Proper diversification in both these will always add to the stability of your risks and returns and will prove to be a multi-dimensional asset.

Eg.1. During one period of time equities might under perform; but bonds and money market instruments might do well enough to offset the effect of a slump in the equity markets.

Eg.2. Similarly the information technology sector might be faring poorly; but the auto and textile sectors might do well and may protect your principal investment as well as help you meet your return objectives.

But unfortunately only in the face of adversity we do realize its true worth?

But before we delve on the subject we need to understand the concept from the correct perspective and remove myths and misconceptions about the same

Myths & Facts

 

Kindly follow below decision making approach while going through wealth accumulation process.

• Before
  1. Have purpose
  2. Measure your self and prepare your risk strategy
  3. Be certain of your cash flows
  4. Plan your fund allocation
  
  
• While
  1. Be sure and be ware of your investment options
  2. Keep your holding pattern identical to run smooth process & maintain history
  3. Always insist a nominee in your investment
  
  
• After
  1. Keep your self up-date with your portfolio valuation
  2. Do take a very well care of your portfolio documents
  3. Find out the scope for new investment or enhancement
  4. Visit your financial planner for regular reviews
  

Advantages:

Considerations:

 

The client would be offered the following

1. Financial Plan: Indicating required savings to meet desired goals in required Asset Allocation
2. Mailers and Messages: Updating with current market trends, indices and informing about available new or concurrent schemes
3. Periodic Reports: Showing current status of the executed plan on regular intervals or on demand* (*Charges apply)
4. Annual Review by the advisor: Restructuring the plan if required

Charges

• First Meeting chargeable on hourly basis.
• Following charges shall be discussed on case to case basis.

Declaration

Proper tax planning is the basic duty of every person, which should be carried out religiously. Basically, there are four steps in the tax planning exercise. You need not consult an Income Tax Practitioner or Chartered Accountant for this matter. In fact, you can do it yourself. These four steps of tax planning are:

Highlights:

• Calculate your Taxable Income for the Financial Year (from April 1 to March 31) from all the sources such as salary /commission /profit /pension and interest etc.
  
• Calculate tax payable on Annual Taxable Income using a simple tax rate table.
• After you have calculated the amount of your tax liability, you have two options to choose from
  a) Pay your tax (No Tax Planning is required)
  b) Minimize your tax through Tax Planning exercises.

Most people should and do choose Option 'b'. Here you have to compare the advantages of several taxes saving schemes and depending upon your age, social liabilities, tax slab and personal preferences, decide upon the right mix of investments, which shall reduce your tax liability to Zero or to the Minimum possible. You may consult your investment advisor for distributing your savings in various tax saving schemes.

Tax Saving Schemes: One can basically choose between following

Filing of Income Tax Return

• Filing of income tax is compulsory for all individuals who se gross annual income exceeds the maximum amount which is not chargeable to income-tax i.e. Rs. 1,35,000 for Resident Women, Rs. 1,85,000 for Senior Citizens and Rs. 1,00,000 for any other individual or HUF.
  
  
• The last date of filing income tax return is July 31 in case of individuals who are not covered in point 3 below.
  
  
• If the income includes business or professional income requiring tax audit (turnover Rs. 40 lakhs), the last date for filing the return is October 31.
  
  
• Form 2 E (Naya Saral) can be used to file the income tax return.
  
  
• Cellular/Mobile Phone subscribers now need not file income tax return under the One by Six Scheme. However, those who have incurred an expenditure of Rs. 50,000 or more towards consumption of electricity during the previous year, now have to furnish the income tax return.
  
  
• The penalty for non-filing of income-tax return is Rs. 5000.

Content 3

The client would be offered the following

1. Financial Plan: Indicating required savings to meet desired goals in required Asset Allocation
2. Mailers and Messages: Updating with current market trends, indices and informing about available new or concurrent schemes
3. Periodic Reports: Showing current status of the executed plan on regular intervals or on demand* (*Charges apply)
4. Annual Review by the advisor: Restructuring the plan if required

Charges

• First Meeting chargeable on hourly basis.
• Following charges shall be discussed on case to case basis.

Declaration

Estate planning is a process involving the counsel of professional advisors who are familiar with your goals and concerns, your assets and how they are owned, and your family structure. It can involve the services of a variety of professionals, including your lawyer, accountant, financial planner, life insurance advisor, banker and broker.

Estate planning covers the transfer of property at death as well as a variety of other personal matters and may or may not involve tax planning. The core document most often associated with this process is your will.

Highlights

• Benefit from the guidance of a dedicated Financial Advisor assigned to you
• Counter high probability of legal affairs with making a timely Will
• Realise importance of people around you and develop unity and trust among them.
• Involve every Family member policy suits best to this situation.

To know how SERNET can help you plan your estate, click here

Making Your Will

As one becomes older there is a need to facilitate the easy disbursement of one's possessions and properties to one's loved ones and dependants, so that there will be no legal battles among them. For this reason it is advisable that everyone with some property or wealth should prepare a "WILL".

A "WILL" can be defined as "A legal statement written by an individual, stating the manner in which his or her wealth may be distributed after his or her demise." It is best that one consults an advocate before preparing a Will. It would be better if the advocate is a person on whom you have the utmost confidence. Here are some guidelines to prepare a WILL.

• It is better to make a Will at a younger age. As and when events or changes in the family necessitate changes the Will can be changed. One of the advantages of making a Will at an earlier age is that unscrupulous relatives could contest the legality of the Will made by a very old person on the basis that the person was not of sound mind when the Will was made.
  
  
• A Will must always be dated. If more than one Will is made then the one having the latest date will nullify all other Wills. In fact it would be better to make a statement nullifying all other Wills.
  
  
• A Will should be Simple, Precise and Clear. Otherwise there may be problems for the legal heirs. Sometimes relatives and others may try to distort the interpretation of the Will for their own benefit. It is always better to take the advice of a trusted advocate.
  
  
• A Will can be hand-written or typed out. No stamp paper is necessary.
  
  
• There should be an Executor of the Will who would be entrusted with the responsibility of ensuring that the assets are distributed according to the provisions of the Will. Sometimes more than one Executor may be required to execute the Will. The Testator (person making the Will) should take the prior consent of the person whom he or she wishes to name as the Executor.
  
  
• A Will should be signed by the Testator in the presence of atleast two Witnesses who have to attest the same. The full names and addresses of the Witnesses should be clearly indicated in the Will. It would be better if one of the Witnesses is a medical practitioner, but this is not essential. The practitioner should certify that the Testator is of sound mind (especially if the Testator is of an advanced age) and he or she should also note his or her registration number and degree (educational qualification). A Witness should not be a beneficiary of the Will. A Witness should also not be an Executor of the Will.
  
  
• Each page of the Will should be serially numbered and signed by the Testator and the Witnesses. This is to prevent substitution, replacement or insertion of a page or pages by persons with fraudulent intentions. At the end of the Will the Testator can indicate the total number of pages in the Will. Corrections if any should be countersigned.
  
  
• The Will may be kept in a safe place like a bank vault. The Executor and the beneficiaries should be informed where the Will is kept. It is advisable to keep a signed copy of the Will with a trusted advocate. Duplicate copies of the Will may be made, signed by the Testator and the Witnesses and kept at separate places so that if one is misplaced the other may be used.
  
  
• Sometimes the value of certain items of the assets (example: value of share certificates) may fluctuate. In such a situation, it is better to mention the percentage of such item/s which should go to each beneficiary.
  
  
• Whenever changes in the family circumstances or other reasons necessitate any change in the Will in the intervening period (from the time of making the Will to the time of demise of the Testator), the structure of the Will can be amended. Even if there are changes in the nature of the property or assets, an amendment may be needed.
  
  
• For making changes only in certain clauses of the Will, a Codicil (supplement) is to be prepared which should be read in conjunction with the Will and which has the power to make appropriate changes in the relevant clauses of the Will.
  
  
• If there are too many changes in the Will, it is better to prepare an entirely new Will.
  
  
• It is not compulsory for one to register a Will with the Registering Authority, but in case any property or asset is given to any charitable organisation, then registration should be done.
  
  
• A person's Will becomes operative only after his or her demise. There is no restriction in the way a person can deal with his or her property even after writing the Will.

No-Frills Will: Forget the fancy trusts you may have heard about. A simple will may be all you need.

We've all been told that if we do nothing else to take care of our legal affairs, we should write a will. That's pretty good advice. If you don't make a will before your death, state law will determine who gets your property (and it may well not be whom you would have chosen), and a judge may decide who will raise your children. In your will, you can make these decisions yourself.

If all you need is a basic will, you can confidently use a good self-help book or software to make a legally binding will that:

• leaves your property to the people and organizations you choose
• names a guardian to care for your minor children if you can't
• names someone to manage property you leave to minor children (yours or someone else's), and
• names your executor, the person with authority to make sure that the terms of your will are carried out

One can also do "Video Recording of the Will" and make available copies of CD to concerned persons for smooth succession. This can help in hassle-free succession.

Estate Planning for Everyone: Simple steps for creating an estate plan that will put your mind at ease.

1. Make a will: In a will, you state who you want to inherit your property and name a guardian to care for your young children should something happen to you and the other parent. 
2. Consider a trust: If you hold your property in a living trust, your survivors won't have to go through probate court, a time-consuming and expensive process.
3. Make health care directives: Writing out your wishes for health care can protect you if you become unable to make medical decisions for yourself. Health care directives include a health care declaration ("living will") and a power of attorney for health care, which gives someone you choose the power to make decisions if you can't. (In some states, these documents are combined into one).
4. Make a financial power of attorney: With a durable power of attorney for finances, you can give a trusted person authority to handle your finances and property if you become incapacitated and unable to handle your own affairs. The person you name to handle your finances is called your agent or attorney-in-fact (but doesn't have to be an attorney).
5. Protect your children's property: You should name an adult to manage any money and property your minor children may inherit from you. This can be the same person as the personal guardian you name in your will.
6. File beneficiary forms: Naming a beneficiary for bank accounts and retirement plans makes the account automatically "payable on death" to your beneficiary and allows the funds to skip the probate process. Likewise, in almost all states, you can register your stocks, bonds, or brokerage accounts to transfer to your beneficiary upon your death.
7. Consider life insurance: If you have young children or own a house, or you may owe significant debts or estate taxes when you die, life insurance may be a good idea.
8. Make final arrangements: Make your wishes known regarding organ and body donation and disposition of your body -- burial or cremation.
9. Protect your business: If you're the sole owner of a business, you should have a succession plan. If you own a business with others, you should have a buyout agreement..
10. Store your documents: Your attorney-in-fact and/or your executor (the person you choose in your will to administer your property after you die) may need access to the following documents:
    
    
    • Will
    • Trusts
    • Insurance policies
    • Real Estate deeds
    • Certificates for Stocks, Bonds, Annuities
    • Information on Bank Accounts, Mutual Funds, and Safe Deposit Boxes
    • Information on Retirement Plans, EPF, PPF, Independent Pension Plans
    • Information on Debts: Credit Cards, Mortgages and Loans, Utilities, and Unpaid Taxes
    • Information on any final arrangements instructions you have made

Advantages:

• When a person dies without having made a Will, there is often confusion amongst the family members and relatives as to whether the deceased did, in fact, make a Will prior to his death. When on the other hand, a Will is available, the only question that needs to be ascertained is whether it is the last Will of the testator, i.e. the person who has executed the Will.
  
  
• A Will is an extremely personal document. Amongst other things, it is also an expression of your relationships with your family members and other relatives, etc. Your opinions, views, and feelings are indicated in this document. It is thus far better to make a personalized Will rather than let the impersonal rules of inheritance take effect.
  
  
• Another important reason for making a Will is that by means of a Will, you can appoint in writing, a testamentary guardian for your infant children. A testamentary guardian is simply a guardian appointed by means of a testament or Will.
  
  
• Let us clarify what this means. In the event of the death of a parent, the law would ordinarily uphold the right of the surviving natural parent to be the guardian of the child. However, should there be no surviving parent, the law attaches great importance to the Will of a parent in deciding whom to appoint as a guardian. Please note that if your are intending to appoint somebody as the guardian for your minor children, it is wise to discuss the matter with the proposed guardian beforehand in order to ascertain whether he is genuinely willing to take on this important responsibility should the need arise.
  
  
• The laws of inheritance do not obviously cater to the special needs and requirements of the members of a family.
  
  
• Let us consider a situation where a person has two sons, one of whom is perfectly healthy, the other being handicapped due to polio from childhood. now the laws of inheritance would treat both these children on an equal footing. By means of a Will, on the other hand, you have the choice of making a somewhat greater provision for a handicapped son, a widowed daughter or an invalid parent.
  
  
• Again, by means of a Will you can make some provision for a faithful servant, a nurse, a friend in need of money, and so on. All such people would receive no benefit whatsoever under the laws of inheritance in the absence of a Will.
  
  
• While there are frequent disputes concerning a Will, at the same time many disputes can be nipped in the bud if there is a clear disposition of your property in Will. Even the late Prime Minister Indira Gandhi and her daughter-in-law Maneka Gandhi were embroiled in a litigation concerning the assets of the late Sanjay Gandhi. Had Sanjay Gandhi left behind a Will, the possibility of any dispute surfacing between his mother and his wife would have been greatly reduced.
  
  
• If you have not made a Will, a son who has been turned out of the house for disobedience, fraud, violence etc. may turn up after your death to claim his share of your estate according to the laws of inheritance. Similarly a deceased testator's wife who was living in adultery with another person, but was not formally divorced, may demand her share as per inheritance laws.

The client would be offered the following

1. Estate Plan: Indicating required work flow chart to meet desired goals in required time frame
2. Mailers and Messages: Updating with current updates in the state laws and informing about available new or concurrent formats
3. Will Custody: Storing the will document with us, thus playing a role of care taker on your behalf with your consent. on demand* (*Charges apply)
4. Annual Review by the advisor: Restructuring the plan if required

Charges

• First Meeting chargeable on hourly basis.
• Following charges shall be discussed on case to case basis.

Declaration

Will a Basic Will Avoid Probate?

No. If you leave anything more than a small amount of property through a will, probate court proceedings will probably be necessary after your death. Although it varies from state to state, probate can take six months or a year, and eat up three to five percent of your estate in lawyers' and court fees. And your beneficiaries will probably get little or nothing until probate is complete.

But if you need only a basic will, you have little reason to concern yourself now with probate. If you're relatively young and healthy, and you don't have piles of money, your real concern is to make legal arrangements for the statistically unlikely event that you will die suddenly and unexpectedly. You've almost certainly got plenty of time to plan for probate avoidance later.

Common Mistakes People Make When Approaching Financial Planning Themselves.

• Don't Set Measurable Goals.
• Make A Financial Decision Without Understanding Its Affect On Other Financial Issues. 
• Confuse Financial Planning With Investing.
• Neglect To Re-evaluate Their Financial Plan Periodically.
• Think That Financial Planning Is Only For The Wealthy.
• Think That Financial Planning Is For When They Get Older.
• Think That Financial Planning Is The Same As Retirement Planning.
• Wait Until A Money Crisis To Begin Financial Planning.
• Expect Unrealistic Returns On Investments.
• Think That Using A Financial Planner Means Losing Control.
• Believe That Financial Planning Is Primarily Tax Planning.
  

What is Financial Planning?

• Financial Planning Is The Process Of Meeting Your Life Goals Through The Proper Management Of Your Finances
• Financial planning is a life long scientific process to set and measure progress in achieving financial goals
• Financial planning process is not about selling financial products but to provide security to one’s cash flows  

Importance of Financial Planning

• To Improve Finance Management Or To Start The Same But Don't Know Where To Start. Eg.  Cause & Effect Understanding Of A Decision
• To Have An Expert Comment One Don't Possess In Certain Areas Of Finances. Eg. Risk
  Assessment – Low, Medium, High
• To Have a Professional Opinion about the Financial Plan If One Has Developed by Self Eg. Problem Of Decision Making
• To Have a Substitute Entity One Don’t Have Time to Spare to Do Own Financial Planning Eg.  Negligence To Re-evaluate Financial Plan Periodically
• Need Of A Professional Consultation Or Help In An Immediate Need Or Life Event Eg. A Birth,  Inheritance, Major Illness, Job Loss, Death etc.

Basic Needs: What you try to plan for your whole life!!

1. Cash Flow or Budget Planning
2. Children / Employee future and career growth requirements
3. Insurance for your family’s / business future protection
4. Saving Tax liability
5. Cherishing those invaluable moments worth celebration
6. Your / Employee’s Retirement needs
7. Estate / Business ownership & continuing expectations
8. Investment for Capital Accumulation

Almost everyone owns a portfolio of investments. The portfolio is likely to comprise

• Financial assets (fixed deposits, bonds, mutual funds, stocks and so on) and
• Real assets (motorcycle, house, and so on).

The portfolio may be the result of a series of haphazard decisions or may be the result of deliberate and careful planning.

Diversification is the nuclear weapon in your arsenal for your fight against risk.
It simply means that you must spread your investment across

1. Different securities: Stocks, bonds, money market instruments, real estate, fixed deposits etc.  and
2. Different sectors: Auto, textile, information technology etc.

This kind of a diversification may add to the stability of your returns, for example during one period of time equities might under perform; but bonds and money market instruments might do well enough to offset the effect of a slump in the equity markets. Similarly the information technology sector might be faring poorly; but the auto and textile sectors might do well and may protect your principal investment as well as help you meet your return objectives.

How does one plan for all this?
You are often faced with the investor’s dilemma: 

1. Too many ‘good’ products
2. Too much focus on markets
3. Where should you invest?
4. Should you invest now?

Three maxims of wealth creation: The answers are not simple, and different people will plan differently.

1.   The more you save makes a difference: If you saved just Rs 1,000 in the bank every month, for the next 15 years, at an interest rate of 5%, your savings would be Rs 2,26,570. However, if you doubled your savings to Rs 2,000, the difference in the amount at the end of the same period would be substantial, as per Table 3 below.

2.   The earlier you start makes a difference: Let’s assume you are 35 years old and your child is 3. If you start saving Rs 1,000 per month at 5% interest rate, your savings when your child is 18 will be Rs 3,47,190. If you had started this plan at age 30, your saving period would be longer, and your savings would obviously be higher. However, if you postpone the plan to age 40, the amount you can save by the time your child is 18 will be substantially lower, as illustrated in Table4 below.

3.   The more (interest / appreciation) you earn makes a difference: If your savings of Rs 1,000 per month earn an interest of 5% p.a. in a bank, a 15-year compounded growth will yield Rs 1,91,570. If you had invested the same in a bond at 8% p.a., the amount would be Rs 2,26,570. If you invested in a higher return product at 15%, the amount saved would be as high as Rs 2,93,240, as illustrated in Table 5 below.

9 Commandments: Keep in mind always!

• Every second there is a danger in your life that you must insure
• Every minute is precious so is your rupee! Save it from today
• Every hour try to remain update about markets and events
• Every day morning plan your income source
• Every week end plan your expenditure
• Every month start look at your commitments and cash flows
• Every quarter end visit your financial planner
• Every six months end review your accounts
• Every year end review your portfolio

 

Though even wise investors tend to make following mistakes due to prejudice; so there is the need for a disciplined process with considerations given beneath. 

Inadequate investment: Try to save as much as you possibly can. The more you save makes a difference! There should be a good balance between what you spend and what you save.

Lack of diversification: Products that yield high returns are usually not guaranteed. Your investment portfolio must be a good mix of guaranteed (usually lower returns) and high-yield (usually risky) products.

Lack of liquidity: Before you start investing your money in stocks, bonds or real estate, make sure that you have emergency cash available, the equivalent of 6 months of your monthly expenses. With this basic precaution, you would not need to dip into your savings in most cases, if an emergency arose.

Inadequate risk cover: Most people begin investing with gusto, but the first product to build in your plan should be life insurance. Insurance protects your family from the risk or unexpected death of the investor. Other investment products are only as much as the money that is already invested, but insurance pays the full sum assured that can help a family achieve the goals that were planned for, like your child’s education. 

Over-borrowing: Your liabilities (outstanding credit card payments, loans, etc) should not exceed your income, and ability to pay them off. Interest incurred on these liabilities can eat into your other savings and investments, and defeat the purpose of financial planning.

It’s a 6 Step Process according to practice standards:

1. Establishing Relationships
2. Gathering Requirements
3. Analyzing Information
4. Presentation & Recommendation
5. Formal Implementation                                                                             
6. Monitoring & Review

We have made it simple 4 step execution

1. Goal Seek Analysis
   Our Financial Advisor will gather your requirements, assess your investment objectives and then analyze your risk appetite with various asset classes, such as Mutual Funds, Insurance, Bonds and FD etc.
2. Asset Allocation
   Next, we would derive at an optimal mix of asset classes to meet your requirements and build a diversified portfolio model
3. Product Recommendation
   Upon your respective replies, we would shortlist best suitable products recommendation and implement the same with your confirmation.
4. Periodic Review
   This is a never ending rotating exercise that lets us monitor your portfolio on a regular interval or on a specific situation. We recommend you of alterations, if any are required and implement the same on your affirmation.

Considerations:

• Desired Goals Vs. Risk Appetite, Expected Rate of Returns
• Asset Allocation Vs. Portfolio Selection and adopted operation Style
• Execution of Plan Vs. Selected Time and Situation along with patience 
• Monitoring & Review Vs. Required Restructuring

The client would be offered the following

1. Financial Plan: Indicating required savings to meet desired goals in required Asset Allocation
2. Mailers and Messages: Updating with current market trends, indices and informing about available new or concurrent schemes
3. Periodic Reports: Showing current status of the executed plan on regular intervals or on demand* (*Charges apply)
4. Annual Review by the advisor: Restructuring the plan if required

Charges

1. First Meeting chargeable on hourly basis.
2. Following charges shall be discussed on case to case basis.

Declaration

The Financial Planning service is offered as an option to long term investors. The portfolio is advised on in a passive investment style with the asset category as mutual funds and insurance.
The planner is suitable for investors who wish to take an asset allocation based, long term investment outlook, ignoring the short term volatilities of financial markets.

The style is steady asset allocation based on a theory that long term investing over a long time frame will help the client achieve stated goals

Terms Used to Describe Financial Planners and Financial Services Professionals

The phrases "financial planning" or "financial planner" are sometimes used by individuals to promote the sale of financial products, or are confused with the sale of such products. Many financial planning practitioners may also be registered representatives who sell securities products, insurance agents who sell insurance products or investment advisers who recommend certain financial products. As a result, the public is often confused about the distinction among
(1) An individual solely offering financial planning services
(2) Some one selling financial products and related services in conjunction with his or her financial planning practice and
(3) A financial services representative who offers no financial planning services.
To assist you, we have compiled the following list of terms describing individuals who work in the financial planning and financial services professions.


Accountant

Accountants perform one or more of the following services involving the use of accounting or auditing skills: issuance of reports on corporate and individual financial statements, consulting, preparation of tax returns and the provision of tax-related advice. Many accountants have broadened their activities in recent years into computer systems analysis, management advisory services, corporate or individual tax planning or other areas of financial planning, such as investment planning.

Solicitors

A relatively small percentage of solicitors provide financial planning services, generally specializing in estate and tax planning. In the context of financial planning, a planner may ask a solicitor to provide specific legal advice for a client, particularly in the areas of taxation or estate planning. A solicitor may also be called upon to prepare the legal documents necessary to implement recommendations in areas such as wills, trust documents or business ownership planning.

Broker/Dealer

Broker/dealer is a term used to describe an individual or a company that is licensed to buy and sell investment products for or to clients. Some broker/dealers are large companies that sell securities that they own (thus, the term "dealer"), while others are firms that only buy and sell securities on behalf of investors (thus, the term "broker"). To be in the securities business, an individual or a company must be a broker/dealer or an individual must be affiliated with a broker/dealer as a registered representative.

Certified Financial Planner™ Certificant or CFP™ Practitioner
CERTIFIED FINANCIAL PLANNER ™certificants are individuals who have met the AFP's education, examination and experience requirements, are committed to high standards of ethical conduct and who complete the AFP's biennial certification requirements to use the certification marks CFP™, CERTIFIED FINANCIAL PLANNER™ and . A CFP™ practitioner is a financial professional authorized to use the CFP™ certification marks that has identified himself or herself to the AFP as being actively engaged in providing financial planning services. All CFP™ certificants have voluntarily submitted to the regulatory authority of the AFP.

Chartered Financial Analyst
Holders of the Chartered Financial Analyst (CFA®) designation are securities analysts, money managers and investment advisers who focus predominately on the analysis of investments and the securities of particular companies or industry groups. Individuals earn the CFA designation by completing the Association for Investment Management and Research's® (AIMR®) experience, education, examination and ethics requirements. All CFA charterholders have voluntarily submitted to the regulatory authority of AIMR.

Fee Based Financial Adviser
An adviser who is compensated both by fees paid by the client and commissions that are contingent on the purchase or sale of financial products.

Fee Only Financial Adviser
An adviser who is compensated solely by the client, with neither the adviser nor any related party receiving compensation that is contingent on the purchase or sale of financial products.

Financial Adviser or Advisor or Counselor or Consultant
"Financial adviser" (or advisor) is a generic term used broadly by consumers and financial services professionals to describe an individual engaged in providing financial advice, services or products to a client for compensation. The term "financial adviser" covers a broad spectrum of financial professionals including financial planners, registered representatives, money managers, investment advisers and individuals who sell, or advise people on, financial products.

Financial (Securities) Analyst
These professionals are usually employed by investment brokers, banks, mutual fund managers, venture capitalists or investment institutions to conduct investment research and analyze the value of securities and financial condition of a company, group of companies or industry sector. Based on their analysis of a given stock or market sector, analysts will make investment recommendations to buy, sell or hold a given stock.

Financial Planner
Insurance Agent
Insurance agents are individuals licensed by IRDA to sell life and health and/or property and casualty insurance products. Many financial planners are licensed to sell or give advice on insurance products. Other financial planners might identify insurance needs for a client, but turn to a licensed insurance agent for recommendations about which existing insurance products best meet the client's needs. Insurance brokers sell products for two or more insurance companies; exclusive insurance agents represent only one.


Investment Adviser or Advisor
Any individual or firm providing securities advice for compensation as part of a regular business of giving investment advice must register with the Securities and Exchange Board of India (SEBI) as an investment adviser. Investment advisers may recommend stocks, bonds, mutual funds, partnerships or other SEBI-registered investments for clients.

Investment Consultant
Although investment consultant is a generic term used to describe a money manager or even a financial planner, it more accurately describes consultants who evaluate, select and monitor money managers. Consultants typically work for brokerage firms or independent advisory firms, and their clients most often are institutional investors, such as pension plans, but may include individuals with substantial sums to invest.

Money Manager
Money managers typically design a portfolio for clients (or work with a design developed by a financial planner) comprising individual securities, bonds, real estate or other financial assets and investments, and manage the portfolio on a discretionary basis, usually for a fee which is a small percentage of the value of the assets under management. Money managers may range from an independent advisory firm to a bank trust department, pension fund, mutual fund or insurance company.

Portfolio Manager
The term "portfolio manager" is often used to describe the investment manager of a mutual fund or private institutional fund. The term "portfolio manager" is often used to describe the investment manager of a mutual fund or private institutional fund.

Real Estate Broker
A real estate broker arranges the purchase or sale of property for a buyer or seller in return for a commission. A real estate agent is an individual who works for a real estate broker. Real estate brokers may help consumers finance a real estate purchase through their contacts with banks, savings and loans, and mortgage bankers.

Stockbroker
A stockbroker, is affiliated with a stock exchange member broker/dealer firm, recommends to clients which securities to buy and sell, and earns a commission on all trades as compensation. All stockbrokers, including any financial planners who execute buy or sell orders for mutual funds, stocks, bonds, commodities or other securities on behalf of clients for compensation, must be registered with SEBI and licensed by the appropriate stock exchange.