1. ET FINPRO MODULE- 4
Design a portfolio for a investor aged 30yrs Planning to retire at 60yrs.
His monthly income is Rs 40000 and wants more than Rs Rs 50000 after
retirement and corpus of more than Rs 50,00,000.
Faculty Name:
Vishwanathan R
Batch Code:
HYD01AA0213
Names
Roll numbers
Amit Kumar
E130031000147
Bhavana
E130031000126
Raja Sekhar
E130031000127
Farah Nikhat
E130031000133
Date: 27-12-2013

2. CONTENT
S. NO
DESCRIPTION
1
Importance Of Retirement
2
What is a Portfolio Management
3
Tax Slabs
4
List of Retirement Products
RD,FD, POMIS
Monthly Income Plan
Unit Linked Insurance Plan
5
Entire Portfolio
6
BIBLIOGRAPHY
7
CONCLUSION

3. Importance of planning for Retirement
Two components of retirement
 Financial Planning
 Personal Planning
Follow this step
 Identify & compare your income and expenses to determine any
shortfalls or surpluses.
 Review & analyse the various retirement income strategies.
 Review & compare the retirement income options available.
 Develop an action plan

4. Portfolio Management
The art and science of making decisions
about investment mix and policy, matching
investments to objectives Evaluate and
select program to fund.
 Evaluate and select programes to fund.
 Determine the availability and sources of
fund.
 Monitor and report on portfolio
performance

5. Tax Slabs

6. ICICI Bank's Recurring Deposits are the ideal way to invest small
amounts of money every month and end up with a large saving on
maturity.
FEATURES
Encourages savings without stress on your finances.
High rates of interest (identical to the fixed deposit rates).
Non-applicability of Tax Deduction at Source (TDS)
Can avail loan on deposit till 90% of the amount.

7. MINIMUM BALANCE
The minimum balance of deposit is Rs. 500
per month and thereafter, in multiples of
Rs. 100.
PERIOD OF DEPOSIT
The minimum period is 6 months, and
thereafter in multiples of 3 months.
Maximum 10 years
NOMINATION
The facility of Nomination is available for
relationships in the names of individuals.
Eligibility
Resident Indian

8. Calculation
Tax Calculation
with
Interest
w/o
Compoun
Amount Compoun ding the
/Yearly ding
amount
Years
1
60000
62817
2817
2
60000
131147
11147
3
60000
205472
25472
4
60000
286319
46319
5
60000
374260
74260
6
60000
469917 109917
7
60000
573969 153969
8
60000
687151 207151
9
60000
810264 270264
10
60000
944180 344180
Withdr
aw
944180
Interest amount = 344180
As he comes in 10% tax bracket
so he is liable to pay 14418 as tax.
Education cess =288
Secondary and Higher
education= 144
Total tax Liability = 14850
Total Amount = 9,29,330

9. Features
 A wide range of tenures, ranging from 7 days to 10
years, to suit your investment plan.
 Partial withdrawal is permitted in units of Rs 1,000
with penalty charges.
 Safe custody of your fixed deposit receipts.
 Auto renewal is provided.
 Loan facility is available up to 90% of principal and
accrued interest

10. Calculation
 Amount = 9,29,330
 Tenure = 10 years
 ROI = 8.50%
 Interest = Simple Interest
 Interest Amount = 7,89930
 10,000 and above interest amount is
taxable @10%
Tax amount for 10 years = 69000
Total interest = 72,0930
Total amount = 16,50,260

11. Documentation
Identity proof
1.
2.
3.
4.
5.
6.
Passport
PAN card
Voter ID card
Driving licence
Government id
Photo ration
card
Address proof
1.
2.
3.
4.
Passport
Telephone bill
Electricity bill
Bank Statement
with cheque
5. Certificate/ ID card
issued by Post
office

12. Post Office Monthly
Income Scheme
Features





Guaranteed returns investment
instrument available at post office
On the deposits made with P.O
one gets an assured monthly
income
It provides capital protection
Risk free
Liquid

13. Min- 1500
Max in single a/c- 4,50,000
Joint a/c- 9,00,000
Multiples of -1500
Nomination facility also
available




Maturity period:5 years
There is no tax rebate
No TDS
Penalty on premature
withdrawal
Depositors exempt
from wealth tax
Interest rate:8.4 % p.a.

14. Calculation
2 Joint a/c of 9,00,000 each
Tenure = 5 years /each
ROI = 8.40%
Amount in hand = 16,50,260
1,99,740 taken from savings
Interest amount = Rs 1340800
Total amount = Rs 2480400
Monthly Returns=Rs 12600

15. Documentation
Identity proof
1.
2.
3.
4.
Passport
PAN card
Voter ID card
Driving license
Address proof
1.
2.
3.
4.
Passport
Telephone bill
Electricity bill
Letter from any
recognised
authority
3 passport size photographs

17. MONTHLY INCOME PLAN
A type of investment that provides a specified monthly payment to
the investor. It is intended to be a stable form of income and it is
typically suited for retired persons or senior citizens
MIP’s are debt oriented mutual funds, they invest heavily in debt
instruments like debentures, corporate bonds and government
securities etc
Generally it has 75 to 80 % of its money in debt and rest in equity
The income you can get from monthly income plan is not limited
to monthly option. we can also choose to receive income
quaterly,half-yearly or annually.

19. TYPES OF MONTHLY INCOME PLAN
DIVIDEND OPTION: In this option investor receives income
monthly,quaterly andhalf-yearly,These can be declared only from profits not
from capital.
GROWTH OPTION: In this option money is not paid out to investor in the
form of dividends, instead it keeps growing in mutual fund

20. Features Of MIP
Low risk
No TDS for dividend option and as per tax slab for growth
option
Moderate complexity
Return range on average (6-13%)
MIP’s returns are influenced by interest rates and stock
market

21. TOP PERFORMING MIP SCHEMES:

22. Calculation
Per month:15000/1 year:180000
For 30 years:5400000
Interest rate:12%
Interest amount:648000
Total amount :6048000
Per month after
retirment:25200/-

23. ULIPS
 Unit linked insurance plans (ULIPs) are
a category of goal-based financial
solutions that combine the safety of life
insurance protection along with long
term wealth creation opportunities
 In ULIPs, a part of the premium goes
towards providing you life cover &the
remaining portion is invested in fund(s)
which in turn is invested in stocks or
bonds

26. Tax Benefits
ULIPs are an efficient tax saving instrument too .The tax benefits that you
can avail in case you invest in ULIPs are described below:
Life insurance plans are eligible for deduction under Sec. 80C
Pension plans are eligible for a deduction under Sec. 80CCC
The maturity proceeds or withdrawals of life insurance policies are
exempt under Sec 10(10D), subject to norms prescribed in that section

27. Staying for Long Term
Unit-Linked Insurance Plans (ULIPs) are
meant to help you achieve your financial
goals over the long-term
If you Invest in Short term, they will not
give you considerable return on your
investments, because of a product cost
structure which is higher in the initial years
To get the best out of your ULIP, you
should remain invested in the ULIP for the
long-term of at least 8-10 years

28. PENSION PLANS
Pension plans from insurance companies ensure
that regular, disciplined savings in such plans can
accumulate over a period of time to provide a
steady income post-retirement. Usually all
retirement plans have two distinctive phases
The accumulation phase when you are saving
and investing during your earning years to build
up a retirement corpus
The withdrawal phase when you actually reap
the benefits
of your investment as your
annuity payouts begin

29. CALCULATION
Investment= 10,000/month
Period =30 years
ROI=7%
Total Amount=1,13,35,249
Annuity =40% of total amount is 45,34,117
Monthly he can withdraw after retirement is 18,892.

30. Asset Allocation
Expenses
10,000
10,000
5000
Recurring
Deposit/FD/POMI
S
Monthly Income
Plan
15,000
ULIP

31. Total Accumulated Amount
24,80,400
Annual Amt
Recurring
Deposit
9,29,330
Fixed Deposit
16,50,260
POMIS
Products
Returns(Corpus)
Returns(Monthly)
RD,FD,POMIS
24,80,400
12,600
MIP
60,48,000
25,200
ULIP
45,34,117
18,892
Total Amount(60yr)
1,30,62,517
56,692
12,600
Monthly

32. Conclusion
“ People may live as much retired from the
world as they like , but sooner or later they
find themselves debtor or creditor to
someone “
-Johann Wolfgang

33. Bibliography
www.moneycontrol.com
www.myinvestmentidea.com
www.icicibank.com
www.indiapost.gov.in
www.iciciprudentiallife.co.in