Investment Advisory

Konark's preferred client engagement is financial plan creation and annual plan review to keep focus on goal achievement. However few clients due to some reason may not wish to subscribe to annual financial plan review after plan creation. We will continue to give investment advisory to such clients till they have some investments purchased through Konark.

In standalone investment advisory we assume that plan is progressing as expected. There is no change to goals, inflation, expected investment returns, expected savings and other parameters. We caution that these are unrealistic assumptions. But unless client agrees for plan review we have no way to know what has not progressed as planned.

In this process Konark will :

1.       Advise if any investment needs to be changed due to poor performance assuming asset distribution is correct. We will not charge any advisory fee for change of existing investments.

          This is restricted to investments purchased through us. It is expected that client approach their distributor/advisor for other investments.

2.       Advise clients for new mutual fund investments when requested. Our advisory fee will be 0.6% of investment amount. i.e. Rs. 600 per Rs. 1 lakh investment.

Clients have no obligation to purchase investment through Konark. However following benefits will accrue to clients who purchase investments through us:
1.        We will monitor the investments periodically and advise for change, when necessary.
2.        We will provide redemption and account change services at no additional charge.

3.        Client can use our discount feature to reduce financial plan review fees. For more details read              Financial Planning Fees.

Financial Planning Fees

First time Plan:

Konark offers two service plans for basic financial planning covering investment and life insurance advisory:

1.     Economy Plan                                               Rs.   5,700

2.     Optimum Plan                                               Rs. 12,600

Add on services can be availed for medical insurance, tax advisory and other areas.

Annual Review Discounts:

          Annual review of plans is offered at discount as follows to first year planning:

1.     Review initiated before end of 13^th month from start of  1^st year planning       15%

2.     Review initiated before end of 25^th month from start of  1^st year planning       10%

3.     Review initiated before end of 37^th month from start of  1^st year planning         5%

Additional Discounts:

In addition planning review fees discounts is available for clients who have invested in mutual funds through Konark. Discount will be 0.1% of invested amount.  Investment amount is calculated as follows:

Market Value of Investment one year prior

Add        Investments at cost during the year

Less       Disinvestments during the year

    

Example:

Market Value of Investments one year prior        Rs.  10,00,000

Add   Investments at cost during the year            Rs.     3,00,000

Less   Disinvestment during the year                  -Rs.    1,00,000

                   Total                                                       Rs.   12,00,000    

     Fee Discount available 0.1%                                 Rs.          1,200

Do It Yourself - Simple Financial Plan

Some people may not be willing to invest in seeking help from professional financial planner. Most of them may not see sufficient value Vs the fees paid. Such people are looking for simple financial plan for free. 

With a view to help such people Konark team did some research on the the available tools on different website. We looked at mutual funds, insurance companies and brokerage house which provide financial tools  on their websites. Based on our research we recommend website Personal Finance Calculators (www.freefincal.com). It provides a simple Do It Yourself financial plan (DIY Financial Planning). The tools provide for increase in annual savings which is missing in other tools. The tool has its limitations. One limitation is retirement savings do not start immediately. They are assumed to start from next year and end one year before retirement.

The recommended tool can be useful for people who can spare time and have inclination to do it oneself. Later if you find that you need professionally prepared plan, we are there to help you. Apart from overcoming tool's limitations the Konark's  planner can add value through answering following questions:

   1.   What is the appropriate inflation (pre/post retirement) and returns (pre/post) to be                   assumed?

   2.   What is the appropriate risk the client need to take to achieve his/her goals?

   3.   How many months can my family manage in case of contingency?

   4.   Are my liabilities under control?

   5.   How is my family’s regular income distributed over expenses, taxes and savings?

   6.   Which investments are suitable for me? Which to keep? Which to change?

   7.   Which products are suitable for medical, personal accident insurance?

   8.   Is it possible to save on taxes?

   9.   How can I ensure being on track through periodic reviews?              

   In Optimum Plan Konark can offer additional value:

   1.  Multiple scenarios (What if ) analysis: 

             a.   What if I want to retire early?

             b.   Can I start business and leave my job at some future point? 

             c.   Can I start some hobby part time? And many more....

   2.  Optimize plan by leveraging surplus savings of future years. For more details please             read              How financial planner can add value?

   3.  If cash outflows are more than inflows then how to balance it? 

   4.  As years progress risk taking capacity reduces so plan needs to accommodate lower             risk capacity in future years.

   5.  How my asset allocations (i.e. distribution of investment in equity, debt and other                    classes) change over the years?