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    Financial Planning & Wealth Management: Sunder Ram Korivi, National Institute of Securities Markets, Navi Mumbai

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    The document discusses financial planning and wealth management. It covers topics like financial planning roles, processes, products, importance for banking, wealth management, and tax planning. It provides details on various investment and liability products, goals, and strategies for effective tax planning.

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    Financial Planning & Wealth Management: Sunder Ram Korivi, National Institute of Securities Markets, Navi Mumbai

    Uploaded by

    jaya
    41 views20 pages
    The document discusses financial planning and wealth management. It covers topics like financial planning roles, processes, products, importance for banking, wealth management, and tax planning. It provides details on various investment and liability products, goals, and strategies for effective tax planning.

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    nism

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    Nibm Srk Feb 14, 2017

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    The document discusses financial planning and wealth management. It covers topics like financial planning roles, processes, products, importance for banking, wealth management, and tax planning. It provides details on various investment and liability products, goals, and strategies for effective tax planning.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    41 views20 pages

    Financial Planning & Wealth Management: Sunder Ram Korivi, National Institute of Securities Markets, Navi Mumbai

    Uploaded by

    jaya
    The document discusses financial planning and wealth management. It covers topics like financial planning roles, processes, products, importance for banking, wealth management, and tax planning. It provides details on various investment and liability products, goals, and strategies for effective tax planning.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Financial Planning

    & Wealth
    Management
    Sunder Ram Korivi,
    National Institute of Securities Markets, Navi
    Mumbai
    Presentation Structure
    Financial Planning and Types of Roles
    Processes, Products, Prospects, Importance to Banking
    Sector
    Wealth Management
    Tax Planning
    Financial Planning and Types of Roles

    Financial Planner
    Investment Advisor
    Distributor, Agent/Broker
    Wealth Manager

    In reality, roles may overlap


    In some countries, roles are separated by regulation
    Processes
    Goal: to help clients achieve their financial objectives
    Unfortunately, the financial sector engages in product pushing
    (elephant story)
    This causes the purpose to be lost
    Hence, the importance of processes
    No two clients requirements are identical (allopathy v homoeopathy)
    In reality, very little time is allotted to planning
    Thorough diagnosis is required
    Plans need to maintain a balance between discipline and flexibility
    Life Cycle Hypothesis
    Education
    Two wheeler
    Business
    House
    Investment
    Retirement
    Estate
    Products
    Liability Products
    Asset Products
    Liability Products
    Credit: Personal and Business Loans
    Life Insurance, General Insurance, Health Insurance
    Asset Products: Varying risk-reward
    (each having tax-saving potential)
    Bank Deposits
    Company Fixed Deposits
    Post Office Savings
    Public Provident Fund
    Employers Provident Fund
    NPS
    Mutual Funds: Debt, Balanced, Equity
    Equities
    Gold
    Real Estate
    Goals
    Life Protection
    Capital Protection
    Growth
    Inflation Protection
    Lifestyle Wrap
    Allocate as per your lifestyle:
    Life Insurance
    Bonds
    Equities, Equity Mutual Funds
    Gold
    Tobins two-mutual fund theorem
    Equities: Risk, Reward, Time. Rule of 100, Rule of 72. Tax benefits from
    Equity & MF investing
    Diversified portfolio, focused portfolio
    Retain flexibility, lower transaction costs, add tax planning edge
    Wealth Management
    Periodic Diagnosis
    Debt Balancing
    Consolidation of Funds
    Windfall Gains: Inheritances, Gratuity, Gifts, Capital
    Gains, Lottery
    Tax Planning
    Evasion v Avoidance v Planning
    At the maximum tax rate, 30% is quite significant and
    could lead to potentially large outflows
    Tax planning is a legitimate way of availing of provisions
    within the Income Tax law to minimize the tax outflow
    Done effectively, every rupee of tax saved can be
    reinvested to maximize wealth
    Scope for Tax Planning
    Exemptions (S 10)
    Deductions from Heads of Income (S 29-37)
    Deductions from Gross Total Income (S 80)
    Rebates (S 87A, 88)
    Exemptions
    Interest on notified tax-free bonds
    Dividends from domestic companies
    Income from equity-oriented mutual funds
    Long-term capital gains on shares
    Deductions from Heads of
    Income
    Salaries
    House Property (Interest on Housing Loan for SOP)
    Business & Profession (Repairs, Depreciation etc)
    Capital Gains (Short Term)
    Other Income (Interest etc.)

    Set off and carry forward of losses


    Deductions from Gross Total Income
    S 80C
    Insurance Premia, notified deposit and savings schemes
    Contributions to provident funds
    Principal portion of housing loan instalment
    Equity Linked Savings Schemes

    Limit: Rs.1,50,000
    S 80D, 80E, 80EE, 80QQA,
    80QQB
    Health Insurance Premia: Limit: Rs.15,000
    Education Loan Interest
    Interest on housing loan (affordable housing criteria)
    Income of Authors of textbooks in Indian languages
    Income of authors of other books
    Scheme of Taxation
    Gross Receipts
    Less: Exemptions
    =Income under various Heads of Income
    Less Deductions under various Heads of Income
    =Gross Total Income
    Less: Deductions from Gross Total Income
    = Taxable Income
    Apply tax rates = Tax Payable
    Less: Rebates
    Less: Tax Credits (at Source / Advance Taxes Paid
    = Net Tax Payable)
    Future Trends
    Cashless or less cash transacting
    Digital trail
    Larger tax base, Lower tax rates
    Pigou v Laffer v Piketty
    Reduction in Exemptions, Deductions and Rebates
    Lower interest rates on interest-bearing investments
    Alternative investment avenues: Equities, Mutual Funds,
    Alternates
    General Advice
    Good housekeeping
    Helps in claiming exemptions, deductions and rebates
    Avoid too many bank accounts. Go cashless
    Pay a reasonable amount of taxes
    Do not overdo tax planning. Beware of tax phobia
    Do not overdo insurance
    Avoid bundled products and complex products
    Accumulate legitimate wealth
    Nominations
    Write a will
    Clients value trust and knowledge

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