1. PERSONAL FINANCE & TAX PLANNING FOR
COST ACCOUNTANTS
Roven Pereira
MCOM, ACMA, CIMA LONDON
Pune 13th January ‘18

2. GOALS INFLATION New Home Holiday Car Childs Education
Home Loan repayment
Marriage corpus
Retirement & life post retirement

3. EMERGENCY FUND MEANING OF EMERGENCY TACKLING EMERGENCY Hospitalization
Family Emergency
Job Loss
Accident
Natural Calamity
Having 3-6 Months of your Monthly Household Spends in the Savings account
Maintain a Savings Plus account
- SBI Savings Plus Account – Threshold 10K INR
Alternatively, Liquid Funds of MFs (through APPS)

4. INSURANCE PRINCIPALS OF INSURANCE TACKLING INSURANCE
- Choose Term Insurance Policy / TROP - Health Insurance Policy BASE POLICY THROUGH BANKS TOP UP POLICY - Opt for CRITICAL ILLNESS COVER - Qualifies for Deduction under Section 80D - Protect your assets, protect your peace of mind
TACKLING INSURANCE
- Never Mix Investments with Insurance - Insurance is a Protection Tool - Avoid Money Back, Endowment Policies, ULIP Policies with Higher Allocation Charges - Monthly Take Home Salary * 12 * 10 - Guard Your Health, Guard yourself - Asset Insurance

5. WEALTH CREATION PRINCIPLES OF WEATH CREATION CREATING WEALTH
100 – Your age = Equity
Single : Minimum 50% of Monthly Take home salary should be saved
Married : Minimum 30 % of Monthly Take home salary should be saved
DIRECT EQUITY : Shares
MUTUAL FUNDS : Never have more than 5 funds
Assign Goals to Each Mutual Fund

6. WHAT IS MUTUAL FUND
A Mutual fund is a trust that pools savings of a number of Investors who share a common financial goal.
The money thus collected which could be as small as Rs 500 pm, is then invested in different companies by the fund manager to generate returns
It is a long term wealth creation tool and has always beaten assured return products handsomely
It has been in India since 1964

7. TYPES OF MUTUAL FUNDS DEBT FUNDS LARGE CAP FUND MID CAP FUNDS
SMALL CAP FUNDS
DEBT FUNDS
Invests in Government Securities,/Treasury Bills Corporate Fixed deposits, Bonds
Yield of 7-10% with indexation benefit
More tax efficient than fixed deposit. No TDS and 20% after indexation for > 3 yrs
Market capitalization /market cap > Rs 200 Bn – 3500 Bn
- ONGC
- TATA
- SBI
- CIPLA
- Maruthi
- Asian Paints
- Hero Motocorp
Market capitalization /market cap between Rs 50 Bn –200 Bn
- Union Bank
- UBL
- TVS Motors
- Ashok Leyland
- Glenmark
- Havells
- MRF
Market capitalization /market cap < 15 Bn
- Venkys
- Jet Airways
- VGUARD
- Oriental Bank
- CEAT
- Bata
- Voltas

8. SYSTEMATIC INVESTMENT PLANNING (SIP)

9. GENERATING INCOME FOR RETIRED
DIVIDEND INCOME
SYSTEMATIC WITHDRAWAL PLAN
- Dividend Income is Tax free as per Income Tax Law - Monthly Dividend and Quarterly Dividend Option available in Balanced Fund with Yield of 10%-12% Tax free returns - History of 13 years in certain funds in India with Dividend
Invest in Growth Option
Withdraw a certain portion each month from the Fund while the money grows using SWP

10. YOUTH : TIME & POWER OF COMPOUNDING

11. TAX SAVING TAX SAVINGS INSTRUMENTS
ADDITIONAL 1.5 Lacs Tax Rebate Under 80 C
5 YEAR FIXED DEPOSITS
PPF Yield Lock In 15 years
Equity Linked Saving Schemes Lock In 3 years Yield
Life Insurance
Sukanya Samridhi

12. ESTATE PLANNING LEAVE AN INHERITANCE NOT A MESS Will Must be dated
Signed by the Testator ( Person creating the will)
Signed in the presence of 2 witnesses
Express a desire that the testator wishes must be carried into effect after death
It may or may not be registered. Ideally a stamped / notarized agreement should suffice
The executor is the person named in the will or appointed by the court with the legal responsibility of executing the will

13. THANK YOU
Roven Pereira ACMA, CIMA (London)