Interview with an Expert Financial Planner - Subhashini Manivannan

What exactly is "Financial Planning"?

Planning our defined goals within our income and available financial resources according to the time required and target value .

Whom do you suggest that "Financial Planning" is very necessary for?

For each and every earning person and who manages money.

So you mean even a home-maker needs Financial Planning? 


Can you please explain?

Financial planning starts at home. Budgeting, prioritising & allotting money for specific goals starts from home. Small savings at various assets like Chit funds, gold, silver and cash reserves are the financial planning avenues that homemakers should consider.  Even money lending for income generation and borrowing for emergencies are also a part of Financial Planning.

What is the importance of Financial Planning?

The 3 most important reasons for Financial Planning are

  • To achieve the pre-defined goals like children education, wedding and retirement planning. 
  • To realise dreams like foreign travel etc... 
  • To preserve the existing wealth and to accumulate more wealth. 

Is Financial Planning differs with age?

Yes, it does.

Life stages are very important for financial planning. Every person's financial goals differ with age. There are different stages such as wealth accumulation, wealth preservation and wealth conservation and it depends on the age of the individual.

Can you please explain more?

When a person starts earning at the age of 21, he is in the accumulation cycle. Because he starts saving for the future. At the of 35 yrs  he starts saving for his family maintainable fund reserves and education for children and planning for his retirement which means he is on the wealth accumulation and preservation cycle. At the age of 55 he spends for children's wedding and higher education so he is in a spending mode with his income mostly stopped or reduced.  After that on ordinary scenarios he is in the spending stage only.

Are there any external economic risks that one needs to be concerned about?

Yes, definitely. There are external economic risks such as Inflation rates and Interest rates that will affect the saving capacity of the investor. 

What kind of investments do you recommend?

There are many investment avenues available for investors according to their risk taking capacity (risk appetite).

Life stages (age) plays an important role in the Earning stage and Spending stage .

According to their financing goals, time horizon and risk taking capacity they can choose from the following few asset classes:

FDs/ bonds
Mutual funds
Direct equities
Gold and silver
Real estates and
Cash reserves etc.

How often do you evaluate your client's situation and provide an up-to-date forecast?

We can't be rigid in this time frame. I feel that it is good to evaluate once in 3 months. If any situation arises such as my client need to invest more or withdraw funds or switch from one asset class to another then I would evaluate the market situations and send my updates.

Are you an authorised Financial Adviser?

Yes, I am a certified Financial Adviser. I am authorised to advise on Life Insurance, General Insurance products and Mutual Funds.

How long have you been a Financial Adviser?

For the past 11 yrs.

Exactly what services do you provide to your clients?

Wealth Management

Can you please tell us more on that?

I suggest appropriate products based on my client's income, goals and risk taking capacity.

What investment firms do you use in your practice?

I use Asset Management Companies and Insurance Companies. 

Can you give us a few names?

I use the services of Insurance companies like LIC, ICICI Prudential Life Insurance, Max Life Insurance, HDFC Standard Life Insurance, Star Health Insurance, Apollo Munich Health Insurance. Bajaj Allianz General Insurance, HDFC Asset Management,ICICI Prudential Asset Management, Birla Sun Life Asset Management etc.

Do you offer different levels of service?

Yes, I do. I make short-term and long-term recommendations as well as offer different plans and options based on my client's interests and needs.

Do you offer different models or investment pools dependent on client’s risk tolerance?

Yes. Each customer's financial need, capacity and time horizons are different. So financial planning is tailor made to suit each client's situation.

Subhashini Manivannan

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