Financial Planning

By: Bunty ShahEnrollment No: 125764339

Roll No: A12018Management Trainee : Motilal Oswal Financial Planning

DepartmentBombay Stock Exchange Institute Ltd

Introduction to Financial Planning• A financial plan is a path to help you achieve your life’s financial goals. It

is the process of making learned money management decisions in order to safeguard your future.

• It helps you to full fill financial goals and meet personal priorities. It takes into consideration your available resources, responsibilities, lifestyle and risk appetite. Allocating your savings across various asset classes to achieve an appropriate risk-reward balance and ensuring long-term financial security are the basics of financial plan.

• You need to ask yourself some questions before making a financial plan, like:

1. What is your current financial situation? 2. What is your vision of your future financial situation? 3. How do you plan to achieve your vision?

Objectives• To identify investment habit of people.

• To analyze the characteristics of different asset class.

• To study changes in financial planning with change in age.

• To identify various avenues for investment.

• To spread awareness of financial planning.

• To examine factors influencing the investment decision.

I have come across various avenues available for an individual to invest

and ways to achieve long term and short term financial goals through

financial planning. It intend to study the pattern in which individual

allocates his savings in various asset class. It describes the awareness

of investor about various alternatives available to them. It also aims at

creating awareness of financial planning.

Research

1) Advising on clients current portfolio

Example:- Equities, Mutual Funds, Insurance, Etc

2) Recommending new products to clients in case the client is not able to achieve

his/her goal from the current financial plan

Research is done in Financial Planning for advising on below two scenarios

While researching on financial planning I came across following factors which should be taken into consideration while preparing a financial plan

• Past performance of company

• Credibility of the company

• Credit rating of the company in case of company issuing

bonds , corporate fd’s

• Risk measure

• After sales service of the company

• Claim settlement ratio in case of insurance

Data Analysis & Interpretation• Investment made by the respondent in various

avenues

Life Insurance Fixed Deposit Mutual Fund Equity Market Gold PPF Post Office Deposit

0

5

10

15

20

25

30

35

40

45

50

Respondent

Respondent

Total People 50

• Savings rate in India is comparatively higher than various other

countries.

• The major portion of financial saving goes into pension funds

and life insurance

• the prime two instruments for household long term saving like

pension saving and life insurance have come to an idle state

• Allocation of Portfolio is not upto the mark which makes the

low returns from the market developments

Conclusion

• After all this it can be stated that the fundamental corner stones of

successful investing are:

• Save regularly, Invest regularly

• Start Early

• Diversify

• Use tax shelter

• Keep a regular check on investment and modify plans as and when

needed

Suggestions

• Arrange for seminars and sessions

• Regular meetings

• Follow-up

• Goal should be properly divided

• Diversification

• Investment through SIP should be encouraged