Simply put, financial planning is the process of identifying and defining your financial goals, prioritizing them and achieving these goals with a clear, focused and a customized game plan. Financial Planning can help you achieve both greater wealth and financial security, while inadequate or improper planning can be disastrous. Financial Planning is an ongoing and continuous activity involving investment management, cash flow planning, retirement planning, insurance planning, tax planning and estate planning. Hence Financial Planning is 360º Finance, whereby we advise, manage and review all aspects affecting and relating to your finances starting from investments, taxes, insurance protection, retirement needs to will preparation etc.

Many earn well today. But they may not have the time, inclination, knowledge or skills required to manage their money, efficiently. In many cases, there is chaos in one’s finances simply because enough time was not devoted towards managing one’s financial matters. Also, the interplay of various parameters needs to be checked out to find if the future is well funded. You get to know these when you do a Financial plan. We have the necessary qualifications, knowledge, expertise & experience to do it for you.

  • Those who are really serious about sorting out their finances and achieving their goals. They would want proper control over their goals and would want to ensure that they are achieved in a pre-meditated manner, instead of leaving it to chance.
  • For those, who understand that a professional can guide them in the whole process, not just money management – the need for sensible investing over chasing returns, in exclusion.
  • For those who seek to optimize returns without exposing themselves to unwanted risks, achieve the correct allocation mix for investments and gain back control over money.

In short, it is for anyone who has understood the benefits of financial planning and it’s potential to deliver the desired result.

You save money: Yes, you do. Firstly, obvious mistakes are avoided. By just going into the right asset classes and the right products, which are the right fit, you save money. Also, among products, we will help you make the best choices to optimize on your outgoes. Think about it. Getting into a wrong insurance product can bog you down for decades. Getting right advice on investments can save you from making wrong choices and the attendant problems. This alone will more than pay our fees!

You make money: An experienced and knowledgeable consultant can pick out good investments for you, help you to avoid obvious mistakes and costly errors, which happen all too often, in the financial services space. This again delivers tremendous value for you.

Dispassionate advice: There is no bias in the recommendation. As professional planners, we put integrity & ethics, above all else. Our recommendations will be always be based on what is required by you and is right for you. We will keep a watch on the costs associated with the products we recommend. We do not promote any specific company, brand or service.

We are committed to offering you –

  • A practical Financial Plan that works
  • Best in class service delivery
  • Dispassionate advice
  • The benefit of the knowledge & experience of specialists
  • Professional, hassle free services & facilitation
  • An excellent value proposition

We are committed to offering you –

  • Long term financial planning for the entire life
  • Wealth accumulation in a systematic manner
  • Future planning for children to cater for their higher education & marriage
  • Retirement planning for the golden years
  • Real-estate services in selected cities
  • Filing of Income Tax returns

The fees are based on the actual time involved in meeting with you in person or discussing over the phone, researching and analyzing your current situation, and providing specific recommendations and implementation assistance (if appropriate).

Updated statements on Mutual Fund and Equity portfolios are sent on a monthly basis. However, these can be also be provided anytime on request.

When you become a Hum Fauji InitiativesTM client, we would review the investments that you already have and advise whether to hold or sell specific schemes. Thereafter, we would monitor and update you on these along with your new investments.

Before we recommend any investment, we consider 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. For equity investments, we focus primarily on the philosophies, experience and track record of the management team. With fixed income investments, we look for the best yield available for a given quality of security. As fiduciaries for our clients, we strive to obtain the most appropriate investment vehicles to meet your objectives, while being very conscience of total expenses and risk exposure.

They are a pool of savings collected from a number of small investors, sharing a common financial goal. The money thus collected is invested by experienced professionals called fund managers, according to the pre-decided objectives in diverse types of securities like Government sponsored Debentures and Bonds, shares of public and private sector companies, and bank guaranteed instruments.

It is one of the most suitable investment options available to the common man because it provides a number of advantages such as:

  • Portfolio diversification – Alone if an individual were to buy shares of different companies so that he can reduce his risk, he will need to invest more as compared to a Mutual Fund.
  • Professional management – Mutual funds are managed by experienced and qualified personnel who undertake extensive research of various companies, the market and the economy among various other things before investing in companies. As an individual investor, one would lack both the expertise and more often the time to research and invest.
  • Convenient Administration
  • Low Costs – The economies of scale of buying and selling shares in such large numbers result in lowers costs for mutual funds.
  • Liquidity – Depending on the type of fund, redemption takes between 1-3 days.
  • Transparency – Mutual Funds are required to publish and send to investors the accounts and various other information under the SEBI guidelines.
  • Flexibility.
  • Affordability Investments can start as low as Rs.2500 and even lower at Rs.500 for Systematic Investment Plans (SIPs).

A mutual fund is a channel through which investments are made in various instruments – debt & equity; and hence they will be subject to the same risk as these instruments. Equity mutual funds therefore will be more risky as compared to Debt mutual funds.

Mutual Funds that can be entered into and exited from at any point of time are open-ended. Close ended funds are those under which you have to necessarily stay invested for a specified period of time commonly called lock-in period.

Equity Linked Savings Schemes or Tax saving schemes or funds as they are also called are Equity Mutual Funds which have a lock-in period of 3 years and investments in which are eligible for tax deduction u/s 80C.

For an individual, investing in Mutual Funds is an easy and convenient process. Hum Fauji InitiativesTM offers the option of online as also off-line investing. For those who are comfortable with it, we recommend online investments – charges in the two options are roughly the same.

For online accounts, it is a breeze. For off-line accounts, Redemption needs to be marked on a transaction form giving the amount to be redeemed or the no. of units that are to be redeemed. Redemption will normally take between 4-5 working days from the day this transaction form is submitted to the Fund House. The number of days for redemption depends on the type of scheme one is redeeming.

Asset Management Companies incur various costs in sales and distribution of the mutual fund schemes which they can pass onto the individual investor in form of loads. Exit Loads are charges that are levied at the time of redeeming units from the scheme, if applicable.

No, mutual funds only accept cheques or demand drafts.

No, original signatures are required on the application forms.

Yes. PAN No is required to meet the KYC (Know Your Client) requirements.

No, the application and cheque need to be issued by the same person who is investing in the fund.

As a Hum Fauji InitiativesTM client you would receive monthly statements of your investments with us. You would also receive a consolidated monthly statement from the registrars.

A fund manager is very important because he is the captain of the ship and it is his views, opinions and thinking which will steer the investments made by the fund. So the track record and background of the fund manager is an important input while selecting the scheme. At the same time, the fund house/AMC to which the specific scheme belongs to is also important, as if the fund manager leaves tomorrow; the performance of the scheme should not get affected negatively

A Term Plan is a PURE RISK policy, which means this plan provides money to the policy holder’s family only if the policyholder dies during the term. It is the actual insurance where the family is protected against the economic loss occurring due to the death of the policyholder. Under this plan, only the administration expenses and mortality charges are recovered from the individual. Hence the cost of such policy, i.e. premium to be paid, is very low. There is no savings element; hence no returns are received on maturity.

Private Insurance Companies in India have come into being only since 2001. Hence, while considering an insurance offering from a private insurance company, one needs to look at the credibility, track record in the field that they have been and their commitment before deciding. Private Insurance is a growing industry India and there will be new players, consolidation, mergers etc, so one needs to be careful in selecting the private insurance providers.

There is no policy under which you pay premiums only for the first 3 years. Under Unit Linked Insurance Plans (ULIPs), there is a facility called premium holiday, under which after having paid premiums at least for the first three years, the policyholder can stop paying premiums but the policy will continue. The accumulated fund value will continue to be re-invested for the policyholder minus annual charges of mortality, administration and fund management. The policyholder can resume paying premiums from a later date.

It is best to be honest while applying for an insurance policy with respect to medical history and other details as well. Since at a later date, when the family of the policyholder puts in a death claim on his demise and the insurance company finds some necessary facts have been concealed at the time of application, then it can reject the claim which can cause tremendous burden for the family.

This is a rider in an insurance policy, under which the policyholder pays an additional premium in order to get a pre-decided sum assured, in case of his inability to work resulting in a loss or reduction of pay due to conditions like Heart surgery, cancer, renal failure etc.

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