Mr Oberoi is a 72 year young at heart investor at Finsherpa. He has had an illustrious career with a PSU steel giant and was on its Board and retired as its Executive Director. On retirement, he took up an assignment in West Africa for a major Steel conglomerate and spent another half a decade helping set up and align a series of steel plants in Africa. After working for 33 years without a break for the PSU major and another five years on the overseas assignment, he was looking keenly at spending time with his family and enjoying his retired life.
It was at this time that we were referred to him. He had most of his money invested in Fixed Deposits in Bank & a friends real estate company, some mutual funds and some insurances.
Since his earnings were substantially in the form of interest income and he was on the highest tax bracket, he was paying substantial taxes on his income tax apart from the TDS that was already getting deducted.
The investment in his friends company while it gave a good interest(which was also taxable) was a substantial sum and that to us represented a risk. As small real estate companies do face challenges esp due to the high land prices, low demand and high interest costs. His investments was spread across a wide number of schemes this was going get quite unwieldy for him to manage apart from the variety including some sectoral funds etc.. which were not suited to his profile needs.
Clearly at the age of 68 years, he needed not insurance as his dependants were well provided for and he had no liabilities and hence his insurence based investments were poor return products whose purpose was not defined.
Mr Oberoi who had only recently moved to Hyderabad to be closer to his only daughter’s home ( she was married and lived in Hyderabad with her husband and children).
In conversations with Mr Oberoi, we were able to cull out the following :
While he had substantial savings, he was also a man who had some desires to live life to the fullest.
Our schedule of investments based on the chat with him was :
|60%||Equity Mutual Funds – Dividend Payout Option|
|30%||Debt Mutual Funds – Systematic Withdrawal Option|
|10%||Liquid Funds for short term needs|
Based on the above schemes, Mr Oberoi has been enjoying handsome tax free dividends all these year upto 2020-21, of course due to stock market volatility his portfolio has been showing some movements upwards and downwards, when these changes have been acute, we have rebalanced his portfolio. Infact for his golden wedding anniversary he was able to buy a large diamond jewellery for his wife based on his savings from his investment returns. Further all investments are retained in Either or survivor mode with his spouse so that when the time comes the investments can be transitioned quite seamlessly to the family members as per his desire.