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______ refers to the process of streamlining the income, expenses, assets and liabilities of the household to take care of both current and future need for funds.
Financial Planning is a holistic approach that considers the existing financial position, evaluates the future needs, puts a process to fund the needs, and reviews the progress.
What do you mean by Debt Counselling?
What do you mean by Insurance Planning?
What do you mean by Personal Financial Analysis?
______ is a risk transfer mechanism where a small premium payment can result in payments from the insurance company to tide over risks from unexpected events.
What do you mean by Investment Planning?
What do you mean by Tax Planning?
What do you mean by Estate Planning?
Who take part in execution of plan or advice?
______ are technology-based advisory solutions that are standardised for execution.
Which of the following is not a Physical Asset?
Which of the following is a Financial Asset?
Drawbacks of Physical Assets are:
Loans taken to buy financial assets are called
Net Worth=
Which of the following are steps in Financial Planning Process?
The scope of work to be done and the terms on which it would be done should be decided in which step of financial planning?
Defining a financial goal is done in which step of financial planning.
Augmenting income, controlling expenses, reallocating assets, managing liabilities and following a saving and investment plan for the future is done in which step of financial planning?
Essential component of financial goal:
Goal Value =
Which of the following is a financial goal?
Risk Capacity means
Risk Attitude means
Risk Tolerance means
Classify the Investor: (i) willing to invest a small portion in risky assets is —- investor. (ii) willing to take risk with a part of their available assets is —– investor. (iii) Willing to take risk with a significant portion of their assets is —– investor.
If objective is growth and appreciation of value than suitable investment is :
If objective is regular income than suitable investment is :
If objective is liquidity than suitable investment is :
If objective is capital preservation than suitable investment is :
The process of dividing the portfolio among different assets so that the overall portfolio’s return is protected from the effect of a fall in one or few assets is called——-.
______ means having a combination of investments in a portfolio in such a way that a fall in the value on one or few will be made up by other investments that are doing well.
Mr. Khanna requires Rs.10 lakhs in six months time to pay his son’s admission fees. An appropriate investment to set aside money for his goal would be ……..
Jaya needs Rs.5 lakhs urgently for an emergency medical procedure. Which investment is she most likely to tap?
A conservative investor wants to accumulate Rs.20 lakhs in 3 years time. What would be an appropriate investment option for him?
An Investment Advisor must obtain valid certification Financial Planning/ Portfolio Management / Investment Advisory Services from _______.
Rajeev has been investing monthly Rs. 5000 for 20 years and the corpus he received is 30 lac, what is the p.a. rate client has received.
Jinesh Invests quarterly Rs. 10000 in an instrument yielding 15% p.a. for 20 years, what is the corpus he has made?
If a client wants a monthly income and he invests Rs. 20 lac for the next 20 years how much amount he may get monthly if he wants income at month-end rate of 12%
An investor receives 50 lacs after putting Rs. 20000 every quarter for 20 years, what is the p.a. return he has received?
An investment is yielding at 12% p.a. compounding annually and investor puts money annually Rs. 20000 for the next 15 years at end of the year, what will be his corpus?
How many quarters it will take to become Rs. 200000 from Rs. 50000 with the rate of 12% p.a.
Amit wants money for the world tour in the following manner yearly at every year-end from today 45000; 55000; 120000; 90000; 155000; 210000. What is the amount to be invested today if the rate of return is 9%?
What is corpus need to invest today if someone wants Rs. 5000 per month for the first five years and Rs. 20000 per month for the next five years if the rate of return is 12% p.a.?
Nikhil wants to retire with 2 Cr after 25 years what can be a quarterly amount to save if rate of return is 15% per annum ?
Divyansh needs an annuity of 35000 in current Valuation after 15 years for 15 years where the discounting rate is 11% and inflation is 6%. He wants the cash flow in begin Mode. What should be his investment today?
Someya needs an annuity of 40000 in current Valuation after 20 years for 15 years where discounting rate is 6% and inflation is 4%. He wants the cash flow in End Mode. What should be his investment today?
The financial professional must understand that the value of money changes over time and that this will affect his or her recommendations to clients. Which concept is referred here?
Which of the following is not a use of TVM?
Mr. T wants Rs 500000 after 5 years for down payment of house purchase so he asks his financial planner how much amount he should deposit today in a debt fund to meet the goal which TVM function should the professional use?
If the professional has made an assumption of a high rate of return and low rate of inflation, What impact it will have on the recommendation for client goal achievement?
Which of the following has highest inflation risk?
Mr. Y, a financial professional while making an assumption of the rate of return follows the approach of assuming a quite lower rate of return along with a higher rate of inflation. Which approach does he follow?
Which of the following can be a probable reason why a financial professional might overstate a rate of return assumption?
Inflation adjusted rate of return is known as:
Real rate=
_____ quantifies how much the investment returns vary around the average return.
If Mr. E, an investor invests Rs. 15000 p.m. in an equity fund for 5 years what amount he will receive after 3 years, which function he can use to calculate the same?
Mr. G wants to know the EMI he will have to pay for the home loan of Rs 15,00,000 taken by him for 15 years, which function can be used?
Mr. Y has invested Rs. 15000 2 years ago and know the fund value is Rs. 20,000, to calculate return earned which function can be used?
A stream of equal periodic payments or receipts occurring at end of uniform intervals is known as an —
A stream of equal periodic payments or receipts occurring at beginning of uniform intervals is known as an —
Which of the following is an example of annuity due?
The discount rate that reduces to zero the net present value of future cash flow and inflows
Which of the following is used to calculate the present value of unequal future cash flows?
_____ is the term used when determining a future value.
_____ is the term used when determining a present value.
The ______ is the interest rate raised to the exponential power of the investment period
Mr. T a financial adviser says that with help of TVM calculation he can determine the amount of investment required to be made at present to meet the future goal. Is it True or False?
Is the assumption made by financial professional true or false: “past results are no guarantee of future returns”
A high inflation rate assumption can also cause the assumed amount needed in the future to—
A financial professional need not to revisit the rate of return assumption and inflation assumption in future.
How Many Years (Approx.) will it take for a Sum of Rs.10000 to quadruple if the rate of return is 9% p.a.?
If the post tax rate of return on an investment is 8% and the inflation rate is 5% the real rate of return is:
Geeta is investing in a mutual fund Rs.1000 monthly at 15% p.a. in End Mode. What will be the amount she will get after 5 years?
John has estimated that the following will be his outgoings over the next few years:
Year 1 – Rs. 10,000
Year 2 – Rs. 15,000
Year 3 – Rs. 12,000
Year 4 – Rs. 13,500
Year 5 – Rs. 11,000
If John Wants to Cater to these cash outflows, how much should he have today, assuming an annual rate of return of 5%?
The future Value of 1 rupee to be received in 8 years’ time at a compounding rate of 6% is:
Dev wishes to receive Rs.10000 in 5 years’ time at an annual interest rate of 10%. What is the amount of money he has to invest now to achieve his goal?
If ABC needs Rs.50000 in 5 years time to pay for the down payment of his house, what is the amount that he should deposit now, assuming an interest rate of 9%, compounded semi-annually?
James Starts investing with an initial investment of Rs. 6000. The investment is now worth Rs. 12500. Assuming the annual rate of return on investment is 6%, how many years has James been investing?
Calculate the account balance after six years, if Rs.1000 has been deposited at the end of each year and the account is accumulating interest at 8% annually.
If Ashish has been regularly investing Rs.10,000 at the beginning of every year for the past 10 years, into an investment earning a 10% rate of return, what is the value of the investment now?
Ronnie wants to give his nephew Rs. 5,000 at the end of each year for the next six years. Assuming his nephew deposits that amount in an account earning 8% interest, how much will he get at the end of six years? If Ronnie decides to give it at the beginning of each year instead, how much will his nephew receive?
Calculate the amount that is needed to set up a trust fund now, if the fund pays Rs. 15,000 at the end of each year for ten years and earn an annual interest of 11%.
Calculate the annual interest rate {in%) required if Sudha invested Rs.15,000 today and expects to receive Rs.25,000 in 12 years time.
Calculate the future value of Rs.5,000 invested each year for 4 years, assuming an annual rate of 10% assuming investment is being done at the end of the year.
Calculate the annual interest rate required if a person invested Rs.10,000 today and expect to receive Rs.18,000 in 4 years’ time.
A bank that is paying a nominal interest rate of 10% and compound semi·annually is actually paying an effective interest of ………
A sum of Rs.8,000 deposited for one year at an annual interest rate of 5% compounded daily, will amount to Rs.______
Josephine needs Rs. 2,00,000 in 5 years’ time to pay for her house. What is the amount that she should deposit now, in case she is in a position to earn 10% p.a. compounded monthly?
A few years ago, Minesh started investing in mutual funds with an initial investment of Rls.30,000. The investment is now worth Rs.55,500. Assuming the annual rate of return on investment is 6% p.a. compounded quarterly, how many quarters have Minesh been Investing?
Shaheen deposits Rs.100,000 in a bank fixed deposit for a term of 5 years at the rate of 9% p.a. (Compounded Quarterly). What will be her maturity amount?
If Robin needs Rs.25,000 at the beginning of each month after his retirement for 15 Years. How much should he accumulate at the start of his retirement, assuming an interest of 12% compounded annually?
A client needs Rs. 500,000 after 10 years with the rate of 12% p.a. What he should invest today?
Ramesh invests Rs. 10 lac today for 25 years, what it will become after 25 years with the rate of 12%?
What time it will take for Rs. 10,000 to become Rs. 40,000 with the rate of 8%?
Sujoy invested Rs. 500,000 12 years ago and got Rs. 20 lac, what is per annum return he has received?
SBI FD is giving 10% return p.a. someone wants to invest Rs. 250,000 today in what time it will become double?
Ravindra wants Rs. 25 lac for his daughter’s marriage. The daughter is 4 years old and he wants her marriage when she turns 21. With the rate of 14% what should be his investment today?
Sudeep invested and withdrew like this please calculate returns:
4 Aug’ 2014 invested 500,000
2 Jan’ 2015 withdrawn 50,000
3 May 2016 Withdrawn 45,000
2 Nov’ 2017 withdrawn 4,85,000
What is the EMI of a Home loan taken of Rs 25 lac for 20 years at the rate of 10.25%?
Mr. S has taken a loan of Rs.30,00,000 at an Interest rate of 9% for 20 years. What will be the monthly payment which is paid at the end of every month?
In reference to Mr. S’s question, calculate total interest paid from 2nd year to 7th year.
In reference to Mr. S’s question, what will be the total principal paid in the first 5 years?
In reference to Mr. S’s question, find the outstanding loan after 12.5 years.
In reference to Mr. S’s question, compute the Interest paid in the last 2 years.
Rahul has taken a home loan of Rs. 25 Lac with the rate of 8.5% for 15 years.
Assist client with – What would be the interest difference if he takes the same loan at the same rate for 20 years?
Assist Rahul with – What will he need to deposit if he wants to foreclose (paying outstanding to the bank) this loan after 10 years?
Rahul is in the 7th year of his loan and wants to take an 80 C section rebate of the interest paid in the year. What will be the interest paid?
What will be Rahul’s revised EMI for the rest of tenure after 10 years if the rate increases to 9%?
What will be Rahul’s total interest paid for the entire tenure?
Saving ratio =
Annual income will include :
The annual savings rate, or the annual savings relative to income, has to be —- as income levels go up so that the savings can be built to a level that is suitable to the age and stage in life.
Expense ratio =
Leverage ratio =
Higher the leverage, more —– it is for the individual’s financial situation.
Net worth =
Solvency ratio =
_____ Measures how well the household is equipped to meet its expenses from its short-term assets.
Liquidity ratio =
Which of the following is not included in Liquid Assets?
Which of the following are financial asset?
Which among the following has highest Liquidity?
Shares – Rs. 5 lakhs, Fixed Deposits – Rs. 10 lakhs, Mutual Fund Investments – Rs. 12 lakhs, Land – Rs. 9 lakhs, and Gold – Rs. 14 lakhs. Calculate financial, physical assets, and total assets?
Financial assets ratio =
A _____ proportion of financial assets is preferred especially as goals are closer to realization and there is a need for income or funds to meet the goals.
______ measures the extent of debt use in asset acquisition. —— is an indicator of the individual’s ability to manage current obligations given the available income and a parameter used by lenders to determine eligibility for additional loans.
Debt to Income Ratio =
_______refers to all payments due to lenders, whether as principal or interest.
______ is an agreement, entered into before marriage, which details how the finances (and any other matter) will be dealt with, in the event of a separation.
Loans taken to buy financial assets, called
Which of the following is a financial goal?
Mr. Khanna requires Rs.10 lakhs in six months’ time to pay his son’s admission fees. An appropriate investment to set aside money for his goal would be ______
Jaya needs Rs.5 lakhs urgently for an emergency medical procedure. Which investment is she most likely to tap?
A conservative investor wants to accumulate Rs.20 lakhs in 3 years’ time. What would be an appropriate investment option for him?
If the objective is growth and appreciation of value then the suitable investment is:
If the objective is regular income then the suitable investment is:
If the objective is liquidity then the suitable investment is:
If the objective is capital preservation then the suitable investment is:
When a need can be expressed in terms of the sum of money required and the time frame in which it would be needed, we call it a ——-.
Which of the following is an indication of indebtedness?
Asset allocation linked to financial goals is the most appropriate form of asset allocation strategy.
The personal financial situation of an individual or a household primarily refers to its ability to manage its current needs and expenses.
Savings is limited to the money that is retained in the savings bank account.
The company’s contribution to provident fund or superannuation fund on account of the investor will form part of the savings during the year.
Solvency ratio + leverage ratio =1
Contingency planning is the planning of funds done for some uncertain or unexpected events.
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