Investment Policy Statement

Investment Policy Statement

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Investment Policy Statement By Vikrant Sethi (2012D12) 1. Introduction and Background Information of the Investor Mr. Jagdish Narain Wahal (my grandfather) is a retired ex general manager at Hindustan Petroleum. He retired at the age of 60. He is now 81 years old. He wants to invest Rs.5 lakhs to earn a bit extra income for funding trips to meet children who live abroad. His current investments are as follows: a) Fixed Deposits BankAmountTime PeriodExpiry of Lock-In PeriodInterest RateOriental Bank of Commerce15 L3yrsAug 20149.5%ICICI20 L4yrsMay 20149.25%SBI20 L3yrsAug 20149.5%Total amount in FDs id Rs.55 L b) Mutual Funds Mutual FundAmount InvestedReliance Mutual Fund5 LTempleton Mutual Fund5 LTotal Amount in mutual funds is 10 L c) Property in Faridabad Market Value Rs.10-11cr. d) Equity 6 Lakhs in blue chips like RIL, ONGC, RIL. e) Annuity in LIC Rs.7500 per month f) Medical insurance taken care of by ex-employer, Hindustan Petroleum. No payment is required. Rough monthly income per month including from mutual fund, dividend from equity, interest from FD is 70,000. 2. Requirements His short term lifestyle requirements are a monthly income of Rs.50000 per month and Rs.3 lakh per year that are required to buy assets and funding a trip to the USA to meet children. He is clearly not interested about long term investment planning as he is aged, and children are well off. Risk Appetite:The major emergency requirement of medical emergencies for himself and spouse is taken care of by his ex-employer on an actuals basis. Even though he has a net worth of roughly Rs.12cr including all investments and most of them are liquid enough to be encashed when required he is not interested in risky investments at all( he could not quantify) because he has worked hard to reach current net worth…; Investment Policy Statement By Vikrant Sethi (2012D12) 1. Introduction and Background Information of the Investor Mr. Jagdish Narain Wahal (my grandfather) is a retired ex general manager at Hindustan Petroleum. He retired at the age of 60. He is now 81 years old. He wants to invest Rs.5 lakhs to earn a bit extra income for funding trips to meet children who live abroad. His current investments are as follows: a) Fixed Deposits BankAmountTime PeriodExpiry of Lock-In PeriodInterest RateOriental Bank of Commerce15 L3yrsAug 20149.5%ICICI20 L4yrsMay 20149.25%SBI20 L3yrsAug 20149.5%Total amount in FDs id Rs.55 L b) Mutual Funds Mutual FundAmount InvestedReliance Mutual Fund5 LTempleton Mutual Fund5 LTotal Amount in mutual funds is 10 L c) Property in Faridabad Market Value Rs.10-11cr. d) Equity 6 Lakhs in blue chips like RIL, ONGC, RIL. e) Annuity in LIC Rs.7500 per month f) Medical insurance taken care of by ex-employer, Hindustan Petroleum. No payment is required. Rough monthly income per month including from mutual fund, dividend from equity, interest from FD is 70,000. 2. Requirements His short term lifestyle requirements are a monthly income of Rs.50000 per month and Rs.3 lakh per year that are required to buy assets and funding a trip to the USA to meet children. He is clearly not interested about long term investment planning as he is aged, and children are well off. Risk Appetite:The major emergency requirement of medical emergencies for himself and spouse is taken care of by his ex-employer on an actuals basis. Even though he has a net worth of roughly Rs.12cr including all investments and most of them are liquid enough to be encashed when required he is not interested in risky investments at all( he could not quantify) because he has worked hard to reach current net worth…

Investment Policy Statement