Certified Financial PlannerCM

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How to become Crorepati?
Systematic Investment Plan

Inflation reduces the purchasing power year by year & increases the cost of goods and services. We should look for an investment vehicle which can provide a higher return over & above inflation. You can protect yourself from the effect of inflation with the help of a diversified portfolio of various asset classes like direct equities, mutual funds, real estate, debt, cash & gold.

Value of money/purchasing power is decreasing every year because of Inflation (Inflation assumed at 6%)

Year Amount
1 1,00,000
2 94,000
3 88,360
4 78,075
5 73,390
6 68,987
7 64,848
8 60,957
9 57,299
10 53,862

Cost of product & services are increasing every year:

Let’s take a simple example: if you are planning for your Children’s higher education which currently cost Rs. 5 lacs & money will be required by your child after a period of 15 years.

Let’s assume cost of education is increasing by 8% per annum. How much money will be required by your child after a period of 15 years from now??

Your child will require a sum of Rs. 15.86 lacs approximately.

Hence, whenever you are looking to buy a product to achieve the above mentioned goal, keep tax & inflation in mind. You need to calculate the net yield post deduction of inflation & taxes.

You need to understand that whether the return is positive OR negative, if you take inflation & tax into account.

If you fall into a tax bracket of 30% and inflation is 6% PA then your require rate of return would be 8.57%. This would be the minimum rate of return, you should be looking for in order to keep the value of your money intact.

Testimonials

I have had never invested money in equity. However, I have been advised to start investing money in equities by Mutual Fund SIP. Now I know, how to take advantage from the equity as an asset class. Thanks for the great advice.

Rahul Saxena – MBA Marketing- IIM

“Thanks for the great service. I didn’t know anything about investing until I called Fcafe.You made it seem easy.”


Gaurav Mahtur- Head -IT

“I have been dealing with Financial Cafe for the last 3 years and I can vouch for professionalism and honesty in all their dealings. I have never had the need to look for another establishment for any of my financial requirements”

Dr. Rajeev Garg

“I used to lie awake nights worrying about how I was going to put two kids through MBA. Now I sleep like a baby. Thank you Financial Cafe”


Renu – Homemaker

I congratulate for good work and wish them best of luck for future.

Jasvinder Singh- Head- India & South-east Asia

Though my comfort in handling technicalities involved in financial domain has always been my forte in the past, Financial Café has helped me develop new insight about the financial planning. Indeed, Financial Café is perfectly suited for all individuals, who seriously believe in shaping the future.

Manoj Verma- Vice president- Sales

The simplicity & clarity in the approach adopted by financial café is remarkable. Their step-up approach is very pragmatic and easy to implement. I found portfolio rebalancing generating better returns as you put more money in equity when share market are lower level and withdraw money when markets are at their peak.

CA. Sachin Gupta

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