Questions for Advance Financial Planning
Posted by Prashant Shah on January 19, 2015
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Prabhakar Sharma said
Hello,Sir I really found your blog very useful. I am a CFP student,i have cleared 4 modules of CFP. Can you please help me out with advanced financial planning question on each case. or if you have any solution of some questions. Sir can you please mail me any useful content regarding Advanced financial planning module.
thank you so much
Prabhakar Sharma
Prashant Shah said
Solve past case studies which are already there on this site. U may also solve sample which are available on fpsb site.
Focus more on the questions of switches.
Regards.
murli said
Dear Prashant Sir,
Today I cleared Final Paper 5 in A grade ( I too am shock to get A grade ) in 1st attempt.
I am giving the questions in today;s exam
Case: Aswin Agrawal
1) Aswin’s money back policy SA 5 lakhs, term 15 years, premium annual Rs 45556. The insurance company is giving Rs 35 per thousand reversionary bonus and 10% terminal bonus. The pure term plan is available in market of Rs 450 per lakhs. Aswin wants to know the returns on this policy.
2) Aswin has agreed to reduce his post retirement expenses by 10%. He wants to know whether this strategy will leave some money for his daughter posthumously after donating 1Cr then price at his of 70 years. He will invest retirement corpus in instrument giving 1.5% more than risk free rate? Answer I got was Rd 58.25 Lakhs
3) Aswin and sumesdha are confident of gather Rs 3 cr at his retirement. He wants to know what rate of interest he shall invest to get achieve his retirement plans as per goal? I go answer as 7.76%
4) Aswin and sumedha wants to plan for their retirement. You advised SIP (in case given Rs 15000) equity MF for 10 years and in balance MF for 20 years. The amount of equity MF will be transfer to liquid fund till retirement. After further 10 years the amount of balance MF will be transfer to same liquid fund. You found the surplus / Shortfall as —-? I do not remember the answer.
5) For the marriage of their children, Pratik’s 23 years from now and 25 years from now of Aslia, they want to create the funs. They are planning to allocate Rs 3.95 laksh from their share account for the marriage of Aslia. The balance will be met my accumulation of fund in equity MF by SIP till marriage of Pratik. You find SIP as….?
6) Aswin wants to repay the loan on 1 May 2014 after paying EMI for April 2014. There is no penalty for prepayment. The amount to repay will be ….?
7) For the higher education of their children they are planning for the fund. You advised them to redeem 1/3 rd of balance in share account after 10 years, half of balance after 12 years and rest balance will be transferred to liquid fund. You advised them to start SIP in new equity fund to meet the shortfall. You find the SIP in equity fund as…..?
8) For retirement corpus Aswin is planning to use his PPF account. You advised him to invest maximum possible amount on 1 day of year from now and for further extension of 4 blocks. The maturity amount of PPF will be transfer to debt account till retirement. You find the surplus / shortfall as —-?
9) Aswin wants to protect his family in case of his death. He is planning to take Term plan for this purpose for his contribution for family. He has estimated that 45% of gross salary is used for sold, tax and other statuary deduction. His salary is growing at 6% per annum and he is likely to work till his age of 60 years. You estimate insurance requirement as …..?
10) Sumedha has completed investment in dept MF 3 years ago, i.e. on 1Arpil 2010. She invested SIP of Rs 12000 per month. She wants to know the return on this investment
Case Sahanubhuti
11) For marriage of Shabhavi, Sahanubhuti is planning to use his PPF. She is planning to invest Rs 20000 on 1 date of every quarter beginning immediately and extension period of 5 years. You found the surplus / short fall as ….? I found some surplus
12) For the higher education for her daughter you have advised her to transfer amount required for respective year one year in advice to liquid fund from the fund accumulated new equity MF scheme. The education cost is escalating at 8% year on year. You have advised the SIP in new equity MF till last transfer in equity MF. You found SIP as ……?
13) Shanubhuti has invested in Gold ETF in 1 April 2006 at Rs 989 for 100 ETF units. Today ETF are quoting at Rs 2500 each. She wants to know what will be tax liability if she sells it today. Ignore education cess?
14) Shanubhuti invested in unlisted share of company XYX on 1 July 2007 by investing Rs 1.25 Lakhs, These share are quoting at Rs 6 Lakhs. She wants to know tax liability if sells it today.
15) Shanubhuti wants to decide to invest Rs 15 lakhs. She has option in Bank FDs or FMP of 385 days. Both instruments are likely to give effective returns on 9%. She wants to know % gain in tax payout in FMP over Bank FD. Please take CII for 2014-15 as 993?
16) Shanubhuti had invested Rs. 4 Lakhs in the debt MF scheme in 1 April 2006 she wants to know the tax liability of this investment is she wants to sell it today.
17) Shanubhuti had invested Rs 3 Lakh on 1 April 2007 at NAV Rs 10.98. She selected dividend payout option. The MF gave 12% divined in 12 Aug 2008, 2 Nov 2009, 1 Dec 2010 and 1 June 2011. The present NAV is Rs 11.16 What return she achieved?
18) There was a qtn of stream of purchase of shares in a qty of 20 to 30 each time of ABC Ltd and AIM ltd on 3 different dates each at different price. The date of purchase was 2 April 2012, 3 May 2012, 4 June 2012, October 2012, and December 2012. The dividend received in each stream these shares were given. The record dates of dividend 22 March 2013 for ABC ltd and 29 March 2013 for AIM Ltd. The current market price of ABC is Rs 550 and AIM ltd is 180 from the date 2 April 2012. What is net short term capital gain / loss if all shares were sold today? I could not understand this problem….
19) 3 questions each on each case totaling 6 -7 were on Ethics and principles.
20) 2 questions were on XIRR.
Hope this information will be useful to other
murlipra
Prashant Shah said
Dear Murli,
Many congratulations for the fantastic performance. And keep helping others as you have been.
Regards,
Prashant V Shah.
murli said
Dear Prashant Sir,
Thanks for your complements. Your blog has helped me a lot.
Till date I took lot of help form your blog and I wish to repay it it back to others. However I am very weak in working on blog. Please forward me the queries put on your blog by aspirants and I will try to solve if possible.
regards
murli
Prashant Shah said
Dear murli,
Thanks for showing eagerness to help community. I will surely fwd queries.
Regards,
Prashant V Shah.
esha verma said
plz can u give me the solution ???????i have exam on 22 sept
Anju Shanmughan said
Hi Murli,
It would be very helpful if you can provide with the solutions as well. 😊
murli said
I do not know whether I have preserved the solutions, I need to search. But how do I send the solutions? If Prashant Sir, permit,( following ethics of this blog) then you can send me your e mail address so that I may send the solutions if have.
Prashant Shah said
Dear Murali you can send it to me. So that i can publish on the site.
Regards.
Anju Shanmughan said
Hi,
Can you please e-mail me the solutions if you have them handy as my exam is tomorrow itself i could go through them at least once before the exam.
Thanks inn advance. 🙂
hepguy85 said
Prashant Shah Sir, Today I have cleared AFP Exam with B grade. This site is very much helpful, Thank you for being kind. I will post the new ques soon. The new updated ques by Ritika is good ques and Only few ques is come in Exam. That ques is Confidential but she posted it and I have already have that ques and some more ques also.Very Very Thank you Sir……….
Prashant Shah said
Wow. Congratulations.. And all the best.
Regards
Prashant.
Prashant Shah said
Congratulations.. And all the best.
Regards,
Prashant.
abhishek said
I clear my ALL module now i m prepare fr final module plz guide me
rahulmj08 said
Hello sir finally cleared 4 modules need ur help and guidance for clearing AFP
Kaushik Banerjee said
hi Sir, I am a CFP Final Exam pursuant. I follow your blogs regularly & it is very helpful for a me. I have read all the solved questions, but one question ( sum: 17) is unclear. if you kindly upload a fresh copy, & extra other questions, I will be glad.. thank U.
Vishnu said
The Questions for Advance Financial Planning images are not that clear. Few of the pages havent been scanned. Can u plz help
Cfp said
Please provide solutions for the 1-10 questions from above images.
Darshan said
Hi Guys !
Yesterday i gave my Final AFP exam and fortunately i cleared :-p
Thank you Prashant sir your website turned out to be very helpful throughout my 5 modules 🙂
Two Case Study were asked ASHWIN (case A) & MAHESH (case D)
One thing to say ! in the exam either of one will be a cake walk and the second one will be challenging . My advice will be to make sure u take the most out of it from the case study which is easy.
in my paper Case Ashwin was the same as SAMPLE PAPER (AFP) 2010. This sample paper of 2010 i got it from my classes and trust me only the figures were different and rest the same 🙂
The Mahesh case was a mind challenger and no idea from where they bring those questions from
i will upload the 2010 sample paper soon and one thing please read the case(A to E) thoroughly before turning up for the exam because its a bit cumbersome process of scrolling up and down during the exam
and ya one more thing since its a 4 hr exam have adequate sleep before appearing for it because after 2 hrs ur mind will stop accepting to think :-p
Thanks
Prashant Shah said
Dear Darshan,
Many congratulations..
I am very much delighted with the performance.
Wish you all the luck and success for the future and keep helping readers to get through.
Feel free to contact me for any support on prashant.shah6881@gmail.com.
Warm regards,
Prashant.
hepguy85 said
Congratulation, well done.
Amita Shinde said
hi
Can you please provide me the solution of sample paper AFP2010
Prashant Shah said
Okay. Will post questions along with answers.
Amita Shinde said
Hello sir can you please suggest any book for numericals specially for tax & insurance as I am planning to give final module soon .
Anju Shanmughan said
Hey can you please share the questions along with the solutions.
Amita Shinde said
hello sir,
It will be very helpful if you post questions along with answers soon as I am appearing for final module this week on Friday.
Regards
Amita
Malvika Kapoor said
Can i get the answers of Question 1 to 9 of the images posted by ritika?
hepguy85 said
Dear Malvika,
The Question of Advance Financial Planning that is send by Ritika is not enough to clear the Exam. I have many questions to clear a exam with good grade.
Regards, Vikram Basra
*Regards,*
Financial Planner.
Trupti said
can you help me with questions to study and what to refer for the exam?
This is my 2nd attempt. i have solved all 2009 and 2010 cases which were not much helpful during the exam. if there is something that you could help me with would really be helpful 🙂
hepguy85 said
Trupti,
Don’t go through Case Study 2009 or 2010, Just do Case study by FPSB and Last 2 year case studies.
*Regards,*
Financial Planner.
On Tue, Nov 17, 2015 at 2:43 PM, Prashant V Shah, Kaivalya School of
bhawnapearl said
hi hepguy85..could you please share in the questions for the AFP..i plan to appear for it sometime soon.And how do you recommenD preparing the case studies.Kindly share in asap.Thanks.
Amita Shinde said
hi
Can some please provide me the solution of 1 to 9 sums posted by ritika.
anushka jain said
hi hepguy85..please provide and share the question for AFP .october is my exam date..please share guidence as soon as possible
karishmadalal said
Please could someone provide the solution for Q.1 ?
karishmadalal said
I cleared the AFP exam with A grade.
Thank you Prashant Sir and also others, the content on the blog and the comments have been really of great help.
I got case studies of Ashwin and Sahanubhuti.There were many questions similar to previous year case studies.
Prashant Shah said
Wow.
Great performance. Many congratulations for the grand success.
Regards
Prashant.
anushka jain said
resp.sir
can u plz provide question and answer of case study A TO E because there is no question and answer given in fpsb site.
Prashant Shah said
Regret for late response.
The given cases on Fpsp site are pre-seen. Based on it question will be there in exam. Hence nobody has those questions.
So please don’t worry.
Regards.
anushka jain said
hello sir,
i have another question in mind
is that i have no study material for AFP can i clear exam by preparing case studies is given in fpsb site and your blog.
and i have my 1 to 4 module material so is it enough?
Prashant Shah said
Hi,
Case study A to E are pre-seen cases. No one can have questions of it as they are asked in exam. Don’t worry about it start preparing from past case studies.
Regards.
anushka jain said
thanku so much sir
CFP2604 said
can i please have the solutions of questions 1-10? i have to appear for my exam in jan? also the solutions of questions posted by Mr Murli , in the comment section ?
The said
Please send me the solution of 1 to 10 above images.
Preeti Chhatwal said
Please help me with solution .. i am preparing for AFP.
And i have exam on 19 aug. Please help
1) Ashwin shared that his Housing loan interested was revised upward 100 basis point on 1/10/13 and further 150 basis upward revision on 01/04/15. Also informed that he enrolled in distance learning Global Project Management course last year and he took Education Loan from bank 5L 01/02/17 Interest rate 10%, Tenor 8 year and paying EMI from beginning from next month. He would like to know about current FY 17 -18 tax liability. (Mark 5)
2) Assume that Mr. Ashwin has got transferred to Nasik with an immediate effects and company offers him Rent free accommodation in lieu of HRA however Ashwin pays Rs. 3000/- concession rent to his company. The apartment is owned by company & also provides consumer durables cost Rs.1,00,000/-. Mr. Ashwin wants to know that taxable value of RFA & furniture perquisite. (As per 2001 population census, the city population was 08 Lakh, Depreciated value of furniture/consumer durables Rs. 87,220) (Mark 3)
3) Ashwin wants to know life insurance cover he needs in case of he is no more. He wants that his family should have the same life style. He wants corpus available to pay off all outstanding liabilities and also wants to protect childern’s higher education and marriage goals in case of an unfortunate death. Assume life insurance claim proceeds are invested by sumedha in a Balance fund. (Note: He is conservative expects 1% less return in a balance fund & 2% excess inflation for children higher education & Marriage expenses) (Mark 5)
4) Ashwin wants to know that additional life cover required today in case he is no more…He has informed you that annual growth in his income expects 10% P.A for 1st 10 years and post 8% pa till retirement. His self expenses 30% of household expenses and taxes payable Rs. 1,00,000. Post death Sumedha will invest corpus in 30% balanced fund & 70% in Debt instruments.(Mark 4)
5) Ashwin wants to know that approximate surplus/deficit amount in the retirement corpus once he has earmark PPF a/c (Post retirement corpus will be invested in Debt Instruments). You have advised to invest the maximum amount beginning of every year as per current guideline. You have further advised to extend the PPF a/c for three Blocks and also invest max. Amount end of every year during extended period. The maturity value of extended PPF A/C will be invested in riskfree instruments till retirement. (Mark 4)
6) You have suggested Mr. Ashwin to start a monthly investment on an immediate basis for Prateek and Aslia’s higher education till age 22 of Aslia as below in an Equity and Debt fund. He wants to know monthly SIP required in Equity & Debt fund?(5)
New investment and portfolio rebalanced as per below asset allocation on specific intervals.
95:05 (E:D) for 1st four years
75:25 (E:D) for next four years
50:50 (E:D) for next four years.
25:75 (E:D) till prateek’s age of 18
100% debt fund post age of 18 of Pratik.
Note: You have further advised to increase monthly SIP every year by 8%, in line with his expected income growth.
7) Calculate immediate annual investment required till one year before the retirement to build the retirement corpus for Mr. Ashwin. (Post retirement corpus will be investing 30% to debt fund, 20% in a balanced fund, 20% Gold ETF and 30% diversified equity fund) (Ignore taxation and expenses) ( Mark 5)
He will increase his annual investment 7.5% P.A. as per his income growth.
You have suggested below asset allocation for investment
1st 10 years 70% Equity and 30% Gold ETF
2nd 10 years 60% Equity and 40% Gold ETF
Balance years in 40% equity and 60% Gold ETF
8) You have suggested earmarking the 20% & 30% of an existing share portfolio for Pratik and aslia’s marriage. You have suggested weekly step up SIP (Annual Growth rate 5%pa) in existing Balanced Mutual fund till Aslia’s marriage?
Ashwin wants to know SIP required today? ( Mark 3)
9) Ashwin requires Rs.1, 00,000 beginning of every year till retirement for annual Diwali vacation expenses and post retirement, he wants Rs.2, 00,000 every year till his life time. He wants to know how much additional monthly SIP required in existing debt fund till his retirement. (Note Vacation cost is expected to escalate 8%PA) ( Mark 3)
Preeti Chhatwal said
And please send the solution of 1-10 question