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Financial Planning  
home > Financial Planning > FAQs
What is financial planning ?
Financial planning is an art to manage one's finances in a scientific manner. Financial planning helps an individual make calculated provision to meet his future goals and needs. The financial planner takes stock of the existing portfolio and resources of the client to sets up a plan to meet those objectives. It includes investment planning, tax planning, insurance planning, cash management and budgeting, retirement planning and estate planning.
Who is a financial planner ?
A financial planner is the financial or wealth Doctor of an individual. He carries the entire plan and implements on it subject to client's approval. The key function of a financial planner is to help people identify their financial planning needs, their present priorities and the products that are most suitable to meet their needs.
How does a financial planner create this personal financial plan ?
It is important to remember to find financial planners who are committed to work jointly with clients to produce a comprehensive, customized financial plan and wealth / money management, enabling them to make wiser financial choices. It is preferable that the planners are FPSB certified planners, CFPCM

Financial planning is a multi-step process that provides you with two important things: (1) An in-depth review of your current financial situation, and (2) a personal financial plan that shows you how to achieve your goals and objectives for the future. It is important to remember that financial planning is a continuing process ... not an event.

The financial planning process can be discussed as follows:
  • Establishing and defining the client-planner relationship
  • Gathering client data, including goals
  • Analyzing and evaluating the client's financial status
  • Developing and presenting financial planning recommendations
  • Implementing the financial planning recommendations
  • Monitoring the financial planning recommendations
What should I look for in a financial planner ?
A financial planner works for you. His or her loyalty should be to the client, not the product (s) he is trying to sell. The financial planner should be in a position to provide you with unbiased advice and recommend products that match your needs and are the best performing ones available. Look for any affiliations of the financial planner to any product manufacturer. Until unless the financial planner is truly independent, (s) he will not be able to give you objective advice. We should look for Certified Financial Planners from FPSB to ensure that they are competent and unbiased.
Who can benefit most from financial planning services ?
Any body and every body need financial planning in today's world. In fact it is there from the time even before currencies were there. Any body seeking financial peace of mind and financial freedom can benefit from financial planning services. In addition, any corporation or organization seeking quality, unbiased financial education for their employees or members can benefit from financial education programs.
What types of financial products do financial planners provide advice for ?
A good financial planner can provide counseling, guidance and/or resources for you. A good financial planner will ensure that his clients can feel free for any advice which concerns their finances directly or indirectly. The clients can call their Planner ion all major issues of their lives.
A good financial planner provides advice for all types of financial planning products - income protection, retirement, education, health, cash flows, insurance etc.

How much should I save ?
There is no rule of thumb toward savings, because it is a variant of age and income level. One should look at atleast saving 20 percent of his income. If you find that is too high for you, don't let that deter you. You can start by putting a little aside each month and then slowly increasing it.
Is it wise to provide so much of personal information ?
As we know a financial planner is like a financial doctor, now consider a visit to your doctor!! Without complete and fully accurate details, your doctor cannot prescribe the best course of action. The same applies to financial planning. In order to obtain the best service for your 'financial health' all details and specifics must be disclosed.
What type of information do I have to provide ?
Typically, information regarding investments held, number of dependants, income and expenditure details, savings and financial planning needs, etc. The more accurate information you give, the better the quality of advice given.
What should a financial plan include ?
A financial plan should include a review of your net worth, goals and objectives, investment portfolio, cash flow, investments, retirement planning, tax planning and insurance needs, as well as a plan for implementing your goals.
Why is there an evaluation of my insurance needs ?
Insurance and investments are both important in one's portfolio. Insurance takes care of your unpredictable whereas investments take care of your predictable needs. The insurance industry has changed a great deal over the past few years and there is a whole array of new products from LIC as well as private insurance companies. Insurance has also been termed as an investment product in few cases.
What about taxes ?
Tax is very important part in a financial plan because it helps in saving more. It is important that financial plans are tax efficient. The financial plan should help you in minimizing your tax liability and also maximizing your after-tax returns from your investments. Some financial planners help their clients in preparing and filing their tax returns.
After a plan is developed, what next ?
The best plan is useless unless it is put into action. The financial planner will assist you completely in implementing the plan, if and when, desired by you will make changes. Implementation and review of the plans are also very important part of financial planners' responsibility.
How does a good financial planner select investments for a client ?
The financial planners will do a proper analysis of the instrument before recommending a client. He will see the past performance and also the fundamental prospects of the investment class. Before a good financial planner recommends any investment, he considers the appropriate investment linked funds or mutual funds to meet your objectives. He considers the current economic conditions, the outlook for that asset class or type of security and how this investment fits within your portfolio given your objectives and tolerance for risk.
How often should I update the plan ?
It is good to review the plan when there is a lifestyle change such as marriage, birth, death or divorce. Any change in financial position should be evaluated as well. Most people have an half yearly update of their plans that reviews how the plan is being implemented. The review also considers changing goals and circumstances.
Can I be my own financial planner ?
If you have the required skills and knowledge and time, you can surely do it. But all three are very important for making and monitoring a financial plan. There are few personal finance software packages, magazines or self-help books can help you do your own financial planning but still as we can't have doctors' software, we can't have financial planning software too. It has to be very comprehensive and customized.
What sort of plan can I expect from KFP ?
To view a comprehensive financial plan, click here.
I earn well and have accumulated a substantial amount. I think am well off. I don't need financial planning. What do you say ?
It is good to hear that. But it is very important for you to protect your wealth from growing inflation as well. You cannot let your hard earned money fade away. Also to ensure that your lifestyle and future goals are well met in time, financial planning is important.

For more information about the kind of clients that we serve, click here
Is Karvy in to Financial Planning only ?
No, it's in a host of things. Karvy is in to complete financial services. Karvy, is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million individual investors in various capacities, and provides investor services to over 300 corporates, comprising the who is who of corporate India. Karvy covers the entire spectrum of financial services such as stock broking, depository participants, distribution of financial products - mutual funds, bonds, fixed deposit, equities, insurance broking, commodities broking, personal finance advisory services, merchant banking & corporate finance, placement of equity, IPOs, among others. Now it has started the financial planning services after understanding the need of same. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments.
Will Karvy also help me with my investment decisions ?
Yes, sure. Karvy is one of the leading distribution houses in India. It has got a huge portfolio of products. Karvy has also got its own research team for various products like equity research, derivative research, mutual fund research, etc. It is also one of the few Insurance broking firms in India.
Why KFP? What is the advantage here ?
In process
What are the differences between CFPCM and CFA ?
CFAs are securities analysts and investments analysts of particular companies or industry groups. The CFPCM certification is a broad based and comprehensive education programme for Financial Advisors. The Financial Planner uses the financial planning process to help a client determine whether and how he or she can meet life goals. More over CFPs are advisors to individuals and CFAs are for the companies.
What are the career prospects of a CFPCM ?
Financial planners often choose to establish their own financial planning practice either by themselves or together with other planners.

However the other options are:
  • Banks
  • Financial planning organizations
  • Life insurance companies
  • Accounting or law firms
  • Stocks and Securities brokers
  • Fund managers
  • Credit counseling organizations
  • Large companies to look after employee benefit
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