Looking at ways to enhance your business & career? Log onto streetsahead.in to upgrade yourself!
SUBSCRIBE NEWSLETTER
Financial Planning ‘MF investments helped my client repay a big loan’

‘MF investments helped my client repay a big loan’

Nashik based Mukesh Chothani narrates how his advice helped his client repay a big loan; Gujarat based Narendra Zinzuvadia shows how his recommendation to switch to debt MFs from bank deposits has helped his client earn better post-tax returns.
Darshita Shah Dec 19, 2016

Mukesh Chothani

One day in a coffee shop, I was having a conversation with one of my clients about how people confuse insurance with investments.  A businessman overheard our conversation and approached me. He was keen to know why insurance policies are not ideal for creating wealth. I set up a meeting with him. I discovered that his portfolio largely consisted of insurance policies and fixed deposits. He had invested in ULIPs and endowment policies having sum assured of over 2 crore which were lapsed. To add to his woes, he lost a litigation case related to a piece of land he had bought as an investment.

After realizing the disadvantages of real estate as an investment, the client wanted to invest in products which offered better liquidity.  I recommended him to invest in equity funds. Unfortunately, he passed away a few years later and his family had a huge loan to repay. But thankfully his MF investments had grown substantially which helped his family repay the loan. Moreover, his daughter was able to pursue higher education by withdrawing from the MF corpus.

Since I was able to switch his focus from insurance to mutual funds I feel delighted that I contributed something to their lives.

There is another case which I remember vividly. This client, a government employee, had received Rs. 8 lakh gratuity. He was keen to invest this money in fixed deposits. After a little probing, I realized that he required fixed monthly income to take care of his day-to-day expenses. I introduced him to the concept of SWP and showed him how it would help him withdraw a fixed sum at regular intervals. He invested Rs. 10 lakh in a few equity funds and withdrew Rs. 10,000 monthly. Over the years, his portfolio grew five times and the client is very happy.  

 

 

Narendra Zinzuvadia

I have a client who had invested his entire savings of over Rs. 1 crore in bank fixed deposits. While the client was earning decent money as interest, he was paying a tax of over Rs. 3 lakh every year. I studied his investments and suggested him to diversify his investments. I also showed him how switching to debt funds would reduce his tax liability and help him earn better post-tax returns as compared with FDs. I spread his investments in liquid, debt and equity funds. Now the client can see how he is getting more returns with reduced tax liability. 

Click to clap
2 Comments
Robert Glen · 7 months ago


Project Funding and Banking Instrument Such As {(BG/SBLC/LC/DC/MTN)} for lease and purchase


Sir

I am a financial consultant and have a very good and reputable Provider of some bank instruments we can only deliver fresh cut cash backed lease bank instrument {(BG/SBLC/LC/DC/MTN)} to you in accordance to our terms and condition. Our bank instruments can serves as collateral as the case may be, which will enable you get loans from your bank so as to embark on any projects such as Aviation, Agriculture, Petroleum, Mining, Telecommunication, Construction of Dams, Real estate, Bridges, Trading, Importing and exporting and Other Turnkey Project (s) etc.

Also these instruments can be put in PPP, etc. Please do let me know of your willingness to proceed and I will email you our terms and condition upon request.

Contact :Robert Glen
Email: robertg.finance@gmail.com
Skype: robertg.finance@gmail.com
BROKERS ARE WELCOME & 100% PROTECTED!!!

Felix Zeman · 3 weeks ago
Please read my provider's BG/SBLC Sale Transaction Procedure below and see if it will suit your requirements.


                                                                               PROCEDURES:

1.    Buyer submits Letter Of Intent (LOI) with full banking coordinates (there must be sufficient cash funds in this account), Enlarged 140% Colour copy of Passport , Client Information Sheet , Certificate of Incorporation (if applicable), Corporate Resolution (if applicable), Non-Solicitation Statement, and an Irrevocable Fee Protection Agreement .

2.    After conducting due diligence, the Seller will countersign the LOI and return it to Buyer including details of the BG Issuing bank, and Seller’s Passport copy. This LOI automatically becomes a full commercial recourse contract and will be notarized to avoid contract breach and Buyer will be required to take care of notarization expenses of the contract documents here in UK. After notarization of the contract documents here in the UK, both parties shall lodge the executed contract with their respective Banks.

3.    Within two (2) banking days, the Seller’s Bank shall send a PRE-ADVICE SWIFT MT199 or MT-799 to the Buyer’s Bank. (EXHIBIT A )  The PRE-ADVICE shall be valid for  four (4) banking days only.

4.    Within the same banking day, the Seller shall email a courtesy copy of the PRE-ADVICE SWIFT MT199 or MT-799 to the Buyer for confirmation. Within three (3) banking days after authentication of the PRE-ADVICE SWIFT MT199 or MT-799, the Buyer’s Bank shall reply and send a  SWIFT MT-799 to the Seller’s bank and a courtesy copy shall be sent  to the Seller’s email.

5.    Within three (3) banking days, after authentication of the Buyer’s SWIFT MT-799, the Seller’s BG Issuing Bank shall send the Bank Guarantee via SWIFT MT-760 to the Buyer’s Bank  ( EXHIBIT B ) and a courtesy copy shall be sent to the Buyer’s email. The Buyer’s bank verifies and authenticate the BG sent via SWIFT MT-760.

6.    Within three (3) banking days, after authentication of the BG sent via SWIFT MT-760, the Buyer shall send payment to the Seller via SWIFT MT-103 and concurrently pay Consultants commission fees of Two Percent of each tranche face value. Courtesy copies of the commission payments shall be sent to the respective consultants/beneficiaries and their paymasters.

7.    Within seven (7) banking days after authentication of receipt of payment to the Seller, the Seller’s BG Issuing Bank shall send the hard copy of the BG to the Buyer’s Bank  via Bank Bonded Courier.

8.    All subsequent tranches will be based on the same procedures until collateral or funds become exhausted.

9.    Any unauthorized calls by any party or its representative lawyers to probe or communicate in an improper way to bank(s) in this transaction shall be prohibited and contract terminated.

10. Please, Ready, Study and Understand VERY WELL, we will work STRICTLY base on this Transaction Procedure.

THIS TRANSACTION PROCEDURE IS NON NEGOTIABLE, DO NOT RESPOND IF NOT ACCEPTED.

Contact Me Via Email:- bfltd2011@gmail.com

I look forward to a mutually beneficial business relationship.

Sincerely,

Felix Zeman.
Wish to stay on top of your game? Get daily tips, ideas and articles to grow your business.
Subscribe to Cafemutual Newsletter.