Become A Member Of AIM

Are you interested in:
1. Getting unbiased, independent financial advice from a panel of experts
2. Pay no commission or get huge savings in distribution costs of the product.
3. Contribute to the financial well being of the underprivileged fellow Indians

Is it possible to have all three? Sounds interesting? Take a moment to read on.

We invite you to be a member of an Association of Indian MoneyManagers (AIM), an investor group where you get the best financial advice and do not pay any commission. The group will negotiate with Financial Services Company for commission free financial products that will entail huge cost savings for you. You also get to invest in financial products chosen by a panel of financial experts.

The Background: WHY
All financial products come with a distribution cost attached. The distribution cost includes financial advice and the logistics. The logistics include document handling, travelling expenses and office expenses of the advisor.

For example, a term insurance of Rs 10 lacs for a 30 year old, the annual premium for a 20 year term policy from LIC costs Rs 3821/-. However a group term insurance will cost approx. Rs 1500 only! This translates into a saving of approx. Rs 2000+

This group insurance cost will depend on the size as well as the age & income profile of the group. The best part is that depending on the profile of the group, the price quote can be negotiated with an Insurance company.

Other than group insurance, there are group schemes available for retirement planning too. For example a Group Superannuation scheme, a unit linked scheme, charges only 0.5% as premium allocation charges compared to 15-40% in other ULIPs.

Further, as the group grows, it can negotiate with a Fund House/AMC for discounts on the trailing commissions or the expense ratio of the fund that the group decides to invest.

Benefits:
Cost Savings: Being a part of the group saves you a lot of money. As we saw that in a group term insurance, the cost savings are to the tune of around 50-67%. For the superannuation fund, the saving is more than 15% on your investment for the first year. If the group can negotiate a lower expense ratio by 2% in a fund, the saving in terms of costs is over Rs 2 lacs over a 20 year period for a monthly investment of Rs 10000/-

Informed Advice: The investor group will be mentored by a panel of informed and independent financial experts. The panel of financial experts will decide on the financial products that the group will put their money on. Therefore, the group will be benefitted with independent as well as expert advice.

Workshops: The members will get the benefit of the Financial Health Check & Planning workshops on a discounted price.

It’s Not For Everyone: Eligibility:
Membership to the group is open to earning individuals and those who are in the age group of 25 to 35. All members have to agree to set up an automatic ECS for their investments. This ensures convenience for both the members as well as the administration of the group.
The eligibility criteria can be reviewed from time to time by the trustees of the foundation.

Caution:
It is important that the membership is closely monitored so as to not let in rogue elements. A few rotten apples can make the entire basket rotten. So we have to be cautious not to let in members who may want to make false claims.

How to become a member:
If you want to become a member of the AIM (Association of Indian MoneyManagers) Group under the aegis of Financial Literacy Foundation (FLF), take the following steps:

1. Download the application form

2. Send the completed form to FLF along with a deposit of Rs 1000/- only. This deposit will be considered a donation if there is no claim for refunds. This deposit is to indicate your commitment to the group and will help the FLF defray costs of administering the group. The cheque is to be issued favouring "Financial Literacy Foundation" and to be sent to Financial Literacy Foundation, 10-B, Mahagun Mansion, Vaibhav Khand, Indirapuram, Ghaziabad - 201010.

You may also deposit the amount in cash/cheque to the Foundation's Current Account No. 60046469290, Bank of Maharashtra, Indirapuram, Ghaziabad.

Most Important:
The bigger the group, the bigger will be the benefits. We request you to spread the word and ask your friends to become a part of the group.

TimeLines:
The last date for filling up the membership form is 31st July, 2010.

We are in talks with various financial service providers and the first product that we buy together will be before 30th September, 2010.

So, join in and spread the word!

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