July 2021Take the CPD Quiz!

IndiaJournal_CPDquiz_ImageryContinuing Professional Development (CPD)Quiz ButtonWelcome to the CPD quiz!This quiz is 10 questions long, and you need to answer 7 out of 10 correctly in order to earn 5 CPD points. Your quiz results will be provided after you complete all the questions. You will be able to take the quiz up to two times.Good luck!Dividing RuleEight Steps to Improved Client Retention

In the opinion of the author, which one of the following tool is available to financial planners for building the brand and establishing relationship with their client?

Pricing model

Client video testimonials

Office setup and staff

Product mix

Not all Financial Credentials are created equal

Practice Analysis Study, which is conducted by the CFP Board once every 5 years, involves research work with ________________

CFP Professionals
educators
subject matter experts
All of the above.

The Impact of the COVID-19 Pandemic on CFP Professionals

In a Survey from the IFPHK, the UK and the US, the CFP professionals cited that ________ does NOT fall under the top three concerns of the clients during the pandemic:

Unemployment or reduced income

Protecting assets

Liquidity

Returns

How to Build Financial Resiliency as a Single Parent

Financial resiliency involves having healthy financial habits. Why is the author not in favor of increasing the loan tenor at the time of refinancing?

It shall increase the amount of EMIs for the loanee.

It adds to the number of years for which the loanee shall have to pay interest to the bank.

The loanee shall not be able to sell the property during the loan tenor.

It shall lead to higher interest rates for the loanee.

Importance of defining and prioritizing life goals

The author believes that discussions related to goal prioritizing is of utmost importance for a customer and requires that a CFP Professional must:

have a good work experience.

possess good communication skills.

plot the right set of questions to the client.

All of the above.

Passive Investing – Current Scenario

In the opinion of the author, reasons for the recent shift of investor preference towards low-cost passive funds could be everything but ______

the emergence of robo-advisors.

the fiduciary requirements.

the fact that index composition is static in nature and thus investors lack choice.

the withdrawal of upfront incentives.

REITs and InvITs – Will they manage to deliver?

The author calls out for a vibrant REIT ecosystem in the country as it would ____

give a fillip to the economy and positively impact the GDP.

help the real estate developers monetize their assets and dispose rising inventories.

lead to higher flow of FPI and HNI money into stock markets.

give investors higher returns than from fixed deposits.

Scenario analysis takes your financial plan closer to reality

Which one of the following is a leading reason for the author to believe that financial planners must practically see through the scenario analysis and develop solutions around the varying situations that may arise?

The number of years of retired life is uncertain

The Financial Planning process involves assumptions, forecasts and projections

The rising health costs each year

The expenses in post-retired life will increase because of inflation

Grandfathering Clause – Tax Implications for Investors

Grandfathering concept was introduced to reduce/lower tax burden and provide relief to investors of equity shares. Using the grandfathering concept, if the actual sale consideration of a listed security is lower than the Fair Market Value as on 31st January 2018, the cost of acquisition would be __________

the actual cost.

the sale consideration.

the fair market value as on 31st January 2018.

the indexed price.

Planning for a Life after Retirement10. There is an ever-growing need for retirement planning on account of which of the following factors?

Higher medical inflation

Longer lifespan

Nuclear family systems

All of the above

COVERWhat's InsideMessage from Rajesh KrishnamoorthyMessage from Noel Maye, CEO, FPSB Ltd.Planning for a Life after RetirementMentorAbout the JournalCall for ArticlesOur work with Clients8 Steps to Improved client retentionHow to Build Financial Resiliency as a Single ParentScenario analysis takes your financial plan closer to realityImportance of defining and prioritizing life goalsOur changing Market placeThe Impact of the COVID-19 Pandemic on CFP ProfessionalsREITs and InvITs – Will they manage to deliver?Passive investing – current scenarioOur Shared WisdomNot all Financial Credentials are created equalGrandfathering Clause – Tax Implications for InvestorsTake the CPD Quiz!Back Cover