Note: All the following questions have been suggested by different readers in comment section, now complied.
1. Mr. A is of 35 yrs with spouse and a kid of an age 5 yrs. His strategic asset allocation is 50:35:15 in equity, debt and liquid. He is able to invest rs 1.5lakh pa immediately to work various life goal. At age 40 the allocation would change to 40:50:10 in equity, debt and liquid asset with annual investment going up to 2.5 lakh for 5 more years. At age 45, for next 10 year he adapts the conservative wealth protection allocation 25:70:5 in eq, debt & liquid asset with 3 lakh pa investments. The per annum return expected in this stage are; from equity : 12%.11% & 10%, from debt : 9%,8% & 7%, from liquid asset : 6,5%,5.5% & 4.5%.What amount could he accumulate by his age 55 years?
a. 113.9 lakhs
b. 97.21 lakhs
c. 66.65 lakhs
d. 117.91 lakhs
150000 
FV  FV  FV  
E 
75000 
12 
$533,639.18 
$899,213.05 
$2,332,327.07 
D 
52500 
9 
$342,475.06 
$503,208.23 
$989,886.75 
L 
22500 
6.5 
$136,433.87 
$178,313.61 
$276,915.59 
$3,599,129.41 

250000 
FV  FV  
E 
100000 
11 
$691,285.96 
$1,793,017.74 

D 
125000 
8 
$791,991.13 
$1,557,966.43 

L 
25000 
5.5 
$147,201.28 
$228,599.08 

$3,579,583.24 

300000 
FV  
E 
75000 
10 
$1,314,837.53 

D 
210000 
7 
$3,104,555.86 

L 
15000 
4.5 
$192,617.68 

$4,612,011.07 
$11,790,723.72 
3. Mr. A has gross annual salary of 9 lakh of which he saves 30% which include statutory EPF deduction, PPF and monthly systematic investment in long term MF scheme. Another 30% goes toward servicing of household & car loan & taxes. His financial planner advice him to accumulate 6 months household expense in liquid fund. HE change job and expect immediate rise of 20% in his gross income .You estimate that other heads would not change materially except his household expense which would rise by 5% due child education. How many months will it take to accumulate liquid reserve?
a. 25 months
b. 11 months
c. 14 months
d. 13 months
4. An individual start investing immediately for 10 year annually Rs 80000 in the ratio 70:30 in equity and debt products. He expects the return from equity and debt to be 12.5% pa & 9.5% pa. during this period. To protect the wealth he rebalance the portfolio in 40:60 of equity and debt after 10 yrs and invest in same ratio annually rs 1.5 lakh for next 10 years. The return expected from equity and debt in this period subsides to 10.5% pa and 7.5% pa respectively. What could be his total investment at the end of the entire tenure of his investment?
a. 60.38 lakh
b. 60.31 lakh
c. 70.42 lakh
d. 61.58 lakh
5..Find the yield of a 30 year annuity that gives 4% cashflow in the first year and an increase of 5% over the previous year for subsequent years”
6. If 1 lac is deposited every year on the last working day of the FY i.e 31st March and the first deposit is made on 31st March 2013 when is the amount withdrawable.
7. A person age is 28, started investing 5000 pm in equity. After 5 years started additional investment of 5000 pm in debt with continuation of equity investment. At the age of 40 years, he transfers 50% accumulation of equity to debt. He increases investment in debt by 10000 pm. At the age of 60 he purchased deffered annuity plan which pays on monthly basis. you found that the rate of deffered annuity in order to cover post retirement expenses to be ______, if his current expenses are 25000 pm and returns on equity is 9.5%, debt 7.5% and inflation to be 5.5%, through out the period
8.“Mr S aged 30 years is saving for the last 11 years in a Savings account giving a 3.5% p a. He is in the habit of increasing the amount by a fixed sum of Rs.2000 every year. If he deposits Rs.25000 in 12th Year what will be the corpus he will accumulate at the age of 60, if the rate of inflation is 11.68% Answers a ) 2980330 ( b ) 3251251 ( c ) 2523252 ( d )3322531 Correct answer ( a ) 2980330″
9. A&B both , both at 30 have current exp of 35000 pm and are saving Rs 5000 per month till their retirement at 60, with investment return of 8.5%. The post retirement inflation and and returns are 6.5% and 7.5%. If A decides to prepone his retirement by 5 years, how soon his corpus would exhaust compared to B.
10. Your client aged 34 now requires at his retirement age of 60 years a corpus to sustain an annuity of Rs. 55,000 p.m. (current cost) inflation linked for a postretirement life of 25 years up to which he expects to live. You estimate that his goal would be achieved by investing corpus at a return of 8%. Your client apprises you that he would additionally like to start a Trust with a donation of Rs. 1 crore (value then) on his reaching age 70 years and would bequeath posthumously a further amount of Rs. 1 crore (value then) for his son. He asks you whether this arrangement would be feasible by taking a little more risk while investing the retirement corpus. You estimate by taking 1% additional return than envisaged and opine that ______. (Consider inflation at 5.5%)