FINANCIALPLANNING
Get Moneyminded
The big thing to happen is the coming to India of the Certified FinancialPlanner (CFP) mark. Only a CFP licence allows an individual to work as a financialplanner.A page on personal finance
Total financial solutions. Tax planning, the choice of insurancepolicy or mutual fund and what have you—the financial planner provides all under oneroof. He has a ‘big picture’ vision of your financial life—defining yourgoals, saving for them, covering risk and providing for retirement. For instance, he willhelp you figure out what impact reducing a Rs 15,000 home loan EMI to Rs 10,000 would haveon your retirement kitty.
The balancing act. Investors tend to buy stocks when the market ishigh and sell in a slump. The planner educates you on the merits of a long-term approachand helps rebalance your portfolio.
What price planning. You’re likely paying your CA about Rs 2,000a year merely to help you with tax-planning; the financial planner will probably bill youonly as much. There are various models for charging clients—fee per hour, fee perplan, some earn commissions from funds and policies they sell you or a combination ofthese.
BHEL: Powering Ahead
BHEL is sitting pretty with a hefty order book (Rs 12,200 crore as of March 2002). Despitethe general lull in the economy, BHEL bagged new orders worth Rs 9,836 crore in theprevious fiscal, up 77 per cent from Rs 5,557 crore a year ago. At its current price of Rs174, the stock is trading near its 52-week high of Rs 196. With power sector reformsspurring business activity, BHEL is expected to post a net profit of Rs 590 crore infiscal 2003, a rise of 32 per cent. This translates into a PE of 7.8 times at the currentprice. That’s worth buying.
To manage your money better, read Intelligent Investor or log on to www.iinvestor.comand also get personalised information and analysis from our experts who answer queries onsmall savings, insurance, loans, taxation, mutual funds and shares.