1. Are Amar and his family adequately insured?

Yes, his family is adequately insured as he has invested in the following risk free assets.
Savings Account & Fixed deposit
National saving certificates& bonds
Life insurance& pension plan
Houses(Rs.25,00,000- Rs.20,00,000)
Car

Rs.5,00,000
Rs.2,00,000
Rs.10,000,000
Rs.5,00,000
Rs.5,00,000

Adding to his risk free assets he has the continuous cash inflow in form of salary i.e
Rs.18,00,000 p.a & other incomes Rs.2,00,000. This combination of risk free assets and his
cash inflows making his family adequately secured

2. Is the asset allocation of Amars portfolio optimal, considering his age

and family position? If no what are the changes he should make?
No the asset allocation of Amars portfolio is not optimal , considering his age & family
position.
Because, As stock market is volatile he may not get a continuous positive return out of this
investment, so he should invest some portion from the stock investment in mutual fund
income scheme from which he can get continuous return in form of dividends which can be
beneficial for the future of his family.

3. Keeping in view Amars risk appetite, how should he go about investing?

As Amars risk appetite is more , He should go for investment in mutual fund growth scheme
where the major corpus is invested in equities and convertible debentures which is risky and
will give a high return in the form of capital appreciation.
As he lacks of skills and time to monitor, Through mutual fund he will get a professional
fund management.