Investor awareness program by Rytvae Financial Consulting

Investor awareness programs in Indian equity markets provide foundational knowledge, risk management strategies, and market insights. Participants learn about equity investments, risk assessment, and market analysis, empowering them to make informed decisions. Strategies such as diversification and ethical investing are emphasized, while technology is leveraged for efficient portfolio management. Continuous learning ensures investors stay updated on market trends. These programs foster a knowledgeable and resilient investor community, enhancing the integrity and efficiency of the market ecosystem. For more information Contact https://www.Rytvae.com

1. Investor Awareness Program By Srinivas Kambhampati Founder - Rytvae Financial Consultant

2. Contents Need of financial planning and Benefits. Term Cover Health Cover Mutual fund Myths Tax Saving Schemes

3. Why financial planning needed Financial planning plays a critical role in you life to get clarity on our current and future financial health and how to improvise it. Its helps you to be prepared for increase in expenses due to inflation It helps to be prepared for uncertain work environment, It is needed because we don’t have pension in pvt jobs, Govt Jobs EPF is not enough Health issues can pop up any time and will disturb your financial health. Financial planning is needed to fulfil financial goals in the absence of your income, It also needed to bring discipline in savings and investments.

4. What does inflation do to your expenses? T oda y ₹ 30,000 ₹ 40,000 ₹ 60,000 ₹ 80,000 5 Years 15 Years 20 Years Impact of 5% yearly inflation on expenses Impact of Inflation

5. What does inflation do to your savings? T o da y ₹ 100,000 ₹ 80,000 ₹ 50,000 ₹ 35,000 5 Years 15 Years 20 Years Impact of 5% yearly inflation on Savings

6. What's wrong with just saving? Inflation eats up your savings over time !!!

7. Term cover Determining the appropriate amount of term life insurance coverage depends on various factors and individual circumstances. Here are some considerations to help you determine the right amount of coverage: Income Replacement: A common rule of thumb is to have coverage that is 10 to 15 times your annual income. This helps ensure that if something happens to you, your family will have a financial cushion to replace your lost income. Outstanding Debts: Consider any outstanding debts you may have, such as a mortgage, car loans, or student loans. Your life insurance should be enough to cover these debts so that your loved ones are not burdened with them in your absence. Education Expenses: If you have dependents who are planning to pursue higher education, factor in the cost of tuition and other educational expenses. Ensure your life insurance provides enough to cover these costs. Existing Savings and Investments: If you have substantial savings or investments, you may not need as much life insurance. Factor in any existing assets that your family can rely on in case of your death.

8. Term cover 5.Future Financial Goals: Consider any future financial goals you may have for your family, such as buying a home or starting a business. Your life insurance coverage should account for these aspirations. 6.Inflation: Keep in mind that the cost of living tends to rise over time due to inflation. Factor in the potential impact of inflation on your family's expenses when determining your coverage needs. 7. Healthcare Costs: If you have dependents, consider potential healthcare costs they may incur. Ensure your life insurance coverage accounts for any medical expenses they may face. 8. Spouse's Income: If your spouse has their own income, you may need less life insurance coverage, as their earnings can contribute to the family's financial needs. It's essential to regularly review and update your life insurance coverage as your circumstances change. Consulting with a financial advisor can help you assess your specific situation and determine the appropriate amount of coverage based on your goals and needs.

9. Term Plan Cont … Lifetime Average Expenses Liability – Asset Goals Calculation Household Expenses – Rent, Groceries, Utilities, School Fees, Dining out, Entertainment, Conveyance, Misc Etc. Liabilities - Paying Car Loan’s 30K EMI for 10 Yrs. 10 Yrs. i.e. 30000*12*10 = 36 Lacs Kid Education = 20 Lacs Marriage – 20 lacs Say monthly expenses are 30K. i.e. Annual Expense will be 3.6 Lacs p.a. Assets - Calculate assets such as FD, Gold investments, Mutual funds etc are – 15 Lacs. Inflation Adjusted expense at the time of retirement would be 11.5 Lacs p.a. Liability – Assets = 21 Lacs Now calculate avg of two expenses would be 7.3 Lacs p.a , Thus till retirement Amount needed for house hold expenses would be 1.46 Crs for next 20 Yrs Total = 1.46 Crs Total = 21 Lacs Total = 40 lacs Person aged 40 Yrs , Income of 10 Lacs p.a. He is only earning member in family. Insurance taken till retirement of 60 Yrs. Total Expenses , Loan Liability and Amount needed for goal = 1.46 + 21 + 40 = 2.06 Crs .

10. Income replacement method Age (Yrs.) Multiplier 20-40 15-20 *AI 40-50 10-15 * AI 50-60 5-10 * AI In over example person has 10 lacs income at 40 yrs. Thus he either can choose to have 10*15 or 10*20 as insurance cover. So that next 15 to 20 yrs income can be replaced by insurance cover to support family. As per method 2, In our example person is getting 1.5 Crs to 2 Crs Insurance cover. Every insurance company will have multipier table as per age to calculate insurance cover.

11. Suggestions Take insurance cover as early as possible as premiums will be lower at lower age and will remain same for entire policy term Review insurance cover in every 5 Yrs. as Expenses might increase, Liabilities might increase or decrease, Goals financial requirement might increase. Stick to term plans and don’t mix term plans with investments. Put investment separately. Because companies try to give you endowment schemes but its does not give more than 5 to 6% in return. If same money can be invested into Mutual funds then it will give you far higher return than endowment scheme.

12. Health Cover Utmost important for middle class family. As they are highly dependent on their limited earning, Savings and Investments. They will be maximum impacted in case of health emergency and disrupt their savings and investments and financial goals. BPL is covered with Govt Schemes Ultra Rich does not need health insurance schemes. Contact unbiased opinion from financial consultant and take health insurance policies. Take 3 times of your annual income as a health insurance policy cover for less than 5 Lac income. From 5 to 10 lacs better to take 2 times and from 10 lacs to 20 lacs better to take 1 to 1.5 times. Parameters which may derive higher health cover is City where do you live, Age, medical history, Inflation and affordability. Suggestions Take a health Plan which will have higher no claim bonus, Restore benefits, no sub limits on room rent, ICU cost , treatments and No-copayment, Take smarter options like top up policy or critical illness rider in case have lesser budget and need higher cover.

13. Myths of Mutual funds Mutual fund invest only in the stock market Mutual funds are risker High capital requirement for investing in mutual funds Mutual funds have lock-in period Mutual funds are not for young investors Markets are at all time high. Avoid investing. Property and Gold is better investment than any other scheme Mutual funds are only meant for long term

14. Mutual fund structures Building wealth using SIP Rytvae Construct Rytvae Construct Rytvae Construct Rytvae Construct Invest 10000 P.M Invest 20000 P.M Invest 30000 P.M Invest 40000 P.M Get Lumpum after Get Lumpum after Get Lumpum after Get Lumpum after 10 Years 22 Lacs 10 Years 44 Lacs 10 Years 67 Lacs 10 Years 1.12 Crs 20 years 91 lacs 20 years 1.84 Crs 20 years 2.75 Crs 20 years 3.67 Crs Monthly income using Mutual fund SWP Rytvae Construct Rytvae Construct Rytvae Construct Rytvae Construct Invest 3.67 Crs Invest 30 Lacs Invest 50 Lacs Invest 1 Cr Get Monthly Pay after 1 Year   Get Monthly Pay after 1 Year   Get Monthly Pay after 1 Year   Get Monthly Pay after 1 Year   240000/- 20000 33000 66000         Get Lumpum after Get Lumpum after Get Lumpum after Get Lumpum after 10 Years 65914913 10 Years 53 Lacs 10 Years 88 Lacs 10 Years 1.76 Crs 20 years 162335431 20 years 1.28 Crs 20 years 2.15 Crs 20 years 4.3 Crs

15. Debt Factsheet Example

16. How we can help you Financial planning Retirement planning Term insurance Unit linked insurance schemes ELSS Guaranteed insurance schemes Corporate Fixed deposits National pension schemes Health insurance Critical illness rider All kinds of loans Such as Home loans/personal loans/Loan against Security.

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