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 Executive Summary

Having better personal finance knowledge changes your world and the world
around you… FOREVER!

An essential part of the mission of the Happy Nivesh is to empower consumers to take
control over their financial lives. Despite the availability of a wide range of information about
managing money and about financial products and services, many consumers still struggle to
make the financial decisions that serve their life goals. Happy Nivesh hears every day from
people experiencing difficulty in their financial lives, who often express regret that they did
not know more about the risks involved in particular financial decisions at the time they made
those decisions. Recent research indicates that significant numbers of Indians are worried
about their household finances – from not being able to cover regular expenses, to not having
savings to cover a financial shock, to not having enough money to retire.

So working with Happy Nivesh the researcher has got the objectives of assessing the
level of Financial Awareness. To find out whether people claim they know more than what
they actually know about financial concept. And to gather the perspective between business,
housewife, & students. To understand the services provided by the company. To provide
suggestion to company in spreading Financial Awareness. To suggest remedial measures for
Financial Awareness.

Financial literacy is the ability of the individual to make appropriate financial

decisions personally. The ability includes understanding the investment products, financial
concepts, discussing the financial problems, making choices between managing, spending
and saving money and responding to the current reforms in financial market. The
sophisticated financial markets offer continuously new investment products in the market.
The increase in the level of financial literacy will also result in the financial inclusion which
is the need of the present Indian economy. Apart from looking at the lucrative promises on
return, the investor should analyze the basic function, mechanism of the product and satisfy
that the product has met the mandatory compliances. The investor should also self-justify that
his personal factors are weighed while investing in an investment product. It is also necessary
for investors to know the risk associated with their investment avenue during the different
phases of economic situation.
 Chapter 1
Introduction
 1.1. Object of the Project

In Masters in Business Administration, Internship and Project work is a brief-

learning-oriented work experience with a company that is completed between the first and
second year of the MBA program. It will allow us to apply the skills and lessons learned in a
classroom in the real world of business.

This Project work helps to gain practical knowledge, which needs to face real
situation of the market and to implement whatever we learnt in the classroom. It also helps us
in future to overcome such problems in the corporate world.

The objectives of the project work are as follows:

1. To experience leadership and application of classroom knowledge in real time

environment.

2. To set the right stage where skills can be transformed to performance, it helps

to us learn detailed operations of particular company.

3. To document everything on our own with our own understanding.

4. To get intelligence with the addition of new skills or learning.

1.2. Selection of the Topic

Many People have had very little understanding of finances, how credit works and the
potential impact on their financial well-being for many, many years. In fact, the lack of
financial understanding has been signaled as one of the main reasons behind savings and
investing problems faced by many most of the people.

Financial literacy has become one of the top priorities for most of the world today as
it is directly proportional to the economic growth of a country. It is alarming to know that the
financial literacy rate in India is way behind other countries. According to a global survey,
India is home to almost 20% of the world's population, however, 76% of its adult population
is not even aware of the basic financial concepts. The survey reports that financial literacy in
India has been signification poor compared to the rest of the world.

In India, Financial literacy has still not become a priority like other developed nations.
Lack of basic financial knowledge results in poor investments and financial decisions. That’s
why most people invest in short-term plans and physical assets to accomplish their personal
goals which give lesser benefits and does not help in the economic development of the
country. Financial literacy allow one to make informed decision about income, savings,
borrowings, investing, and money management.

To Know the Financial literacy among the people and to give solution to it Researcher
has selected this topic that is “The study of Financial Literacy in Nashik City”.

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1.3. Objectives of the Study

1. To examine the level of financial literacy among selected people from Nashik.

2. To analyze whether they study the details before invest.

3. To test their knowledge regards their investment.

4. To understand the services provided by the company.

5. To provide suggestion to company in spreading financial literacy.

6. To suggest remedial measures for financial literacy.

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1.4. Scope of the study

The study conducted at “Happy Nivesh Financial Services, Nashik”. The study of

financial literacy among the people is purely based on primary, secondary data and all the

information is available within the company itself. In this study, Researcher analyze that how

many people are aware about financial aspects which are related to investment & what the

proprietor want to take action regarding spreading awareness. Researcher have done study of the

various product offer by the company.

The aim of the study was to know how many people from the different occupation have the

financial literacy and what the ways of spreading financial literacy are. To know the company’s

Vision, Mission, & Core Concept & how properties practicing to achieve their goal.

Analysis of the data and interpretation of information has done with help of table and graph. So,

scope of the study is limited up to the availability of official records and information provided by the

company.
 1.5. Rationale of the study

Education is only a mean to an end and not an end in itself.

The ultimate objective of making this project is to develop self-reliance, learning

habit, creating awareness of the special and culture environment developing appropriate
communication skills, application of knowledge of project and surveys of these programs.

The project also helps to build the skills of analysis. The contribution of the project
is to accept as a great opportunity as one can apply the knowledge through project surveys
etc. and to study the problem faced by the industry.
 1.6. Limitations of the study

Following are the limitation of the study:

1. The duration for conducting the project work was short.

2. Some of the information may lack accuracy, due to which approximately value where

used for the analysis. Hence, the result also revel approximate value.

3. Due to confidentiality, most of the information was not disclosed which was important

for the project.

4. The data given was restricted.

5. Small scale organization led too limited activities.

6. Small scale organization was limited to its kind so no comparison was not available.
 Chapter-2
Research Methodology
2.1. Method of Study
 Research Methodology

This chapter deals with the methodology adopted for the proposed study and the
different steps under taken after gathering and organizing data for investigation. It includes
research approach, research design, setting sample and sampling technique, development
and description of tool, development of teaching strategy, pilot study, data collection
procedure and plan for data.

 Research Design:

A research approach tells the researcher what data to collect and how to analyze it.
It also suggest possible conclusion to be drawn from the data, in view of the nature of the
problem under study and to accomplish the objective of study. Exploratory approach was
considered as appropriate research for present study.

 Types of Research:
1. Descriptive research:

The research carried out in descriptive design is more structured & formal in nature.
The objective of this type of research is to provide a comprehensive & detailed explanation
of phenomena. These studies focus on what, where, when, who and how of research. It is a
framework used for conclusive research.

 The descriptive design primarily focus on:

a) Description of the phenomena or characteristics associated with a subject population.

b) Estimation of the proportions of a population that have these characteristics and

c) Find out association among various variables.

For this Research, Researcher has selected Descriptive Research.

2.2. Collection of Data

 The data collected for the project was in the form of written as well as verbal information
regarding the management accounting ratio analysis by the company. There are different
source of collecting data.

Primary Data (Survey) Secondary Data

Questions Structural , Close ended Books

Sample size 200 Websites

Sampling Method Convenience Previous Research

Sample Area Nashik City

Sample Unit

Table no. 2.1. Types of data collection

 2.4. Analysis of Data

Data analysis can be defined as the process of gathering, modelling, and transforming
data so as to get useful information, suggestion and conclusions in decision-making.

Some statistical methods such as mean, median, mode, percentage, and standard deviation should
be used as per requirement. Percentile and ratio are some elementary methods of data analysis.

 Objectives of Data Analysis:-

 Assessment and improvement of the quality of the data.

 Compare the target population with the population being studied.

 Forecast the possible areas where faults can occurs.

 Assessment of the measures of frequency and their amount.

 Measurement of the degree of ambiguity.

 Observe and control the inference of other associated characteristics.

 Making inferences and taking decision.

 Types of Data Analysis:-

A) Descriptive and Casual Analysis:- The descriptive analysis mainly employed for the
purpose of elaborating the data which is under the sampling observation either graphically or
numerically.

i. Universal Analysis: It is one of the simplest forms of data analysis. In this method
summarization of the data depends on the separate variables of a data set.

ii. Bi-Variate Analysis: This analysis is used for the measurement when there is some
relationship between two variables. This analysis also identifies that weather the
variables which are under the study is dependent or independent.

iii. Multivariate Analysis: Due to the complex of the research problem in present days, the
data analysis has both multiple independent and dependent variables.
 Chapter-3
Profile of the Organization
3.1. Company Profile

1) Name: Happy Nivesh Financial Services.

2) Address: Canada corner, Nashik.

3) Establishment Year : 2016

4) Owner of the Company: Mrs. Ashwini Kulkarni.

5) Products of the Company: Mutual Fund, Term Life Insurance,

Mediclaim, General Insurance etc…

6) Nature of Company: Proprietorship Company.

7) Industry: Financial Consultancy & Services.

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3.2. History & General Information

Beginning

July 2016 was the year when Happy Nivesh got started. Its commencement was with
the motto of “spreading awareness about finance in between general public”. As the
proprietor Mrs. Ashwini Kulkarni got the opportunity to deal with Max Life Insurance. The
very first product the firm started selling was a life insurance with Max life. As three months
passed firm growth took place and firm got into another sector that is mutual fund. At the
initial phase with Mutual fund they got the distributorship with Aditya Birla Group. It was
there first time in selling mutual fund. They managed all the mutual funds so well gradually
they started providing ten more brands in mutual fund. Not only brands but good and strong
brands like Aditya Birla, HDFC, ICICI, L&T, Reliance, Franklin, DSP, SBI, etc. These were
some great brands they started providing. These was the time growth of firm was taking
place.

The motto mentioned above was the main path they were trying to walk on. The
proprietor herself was with the agenda spreading awareness in women specially. As she was
seeking to help and encourage women to stand on their own feet. Right from the schooling
itself Mrs Ashwini Ma’am had a thought in back of the mind just to ensure earning her bread
on her own not to get depended on anyone. and she was trying to spread such spark with the
women out there. Not only targeting women for Financial literacy but she was also working
hard for the students, women and all the general public. As people are not aware about how
to invest their money and how to have information where to invest and where not to. To have
some sort of information or basic knowledge about investing money. Not only to earn bread
and butter but she was struggling to spread awareness related financial services among
general public.

Mrs. Ashwini Ma’am is having a wide experience of Twenty- one year but out of twenty-
one she is having eighteen years of Corporate experience. After experiencing the corporate she
thought of having own venture. So she took an initiative of building Happy Nivesh. Today
Happy Nivesh is having clients both in India and abroad. To serve their clients online and
hassle free they also got into technology by creating an app known as Happy Nivesh. The app
provides various services just by a click such as a customer can look upto its mutual fund
growth rate or growth manner just with a matter of click. By having its login Id and password.
The customers can get a personalized wall with his/her own purchased

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schemes related notifications and updates. This app has a free access via play store. To all the
Happy Nivesh Customer.

Ashwini ma’am has a done various certification as well such as Financial planning,
Retirement planning by CFA. Mam also having a directorial position at BBM, Maha
Chamber of Commerce, Saturday Club and she have active participation in all mentioned
social areas.

Another product line with Mediclaim is provided by the firm. The Mediclaim is
association with Star insurance only. They have third administrator they have chosen Star
insurance for providing Mediclaim because Star insurance is the company which allows the
minimum time to settle the claim. With the accurate on time help they have collaborated with
Star insurance. They are also in Term insurance and in general insurance they have got some
strong brands with them such as Bajaj, Religare, TATA, New India AIG,
CHOLAMANDALAM, these are well known insurance the firm is with.
3.3. Organization

 Vision

 To help clients, meet their financial goals through financial services &
solution offer.
 To impact financial literacy leading to financial freedom.

 Mission
 To manage 900 portfolios till March 2022.
 To impart financial literacy to 35,000 people till March 2022.

 Core Values
 Integrity
 Customer Focus
 Excellence
 Speed
3.4. Products

1) Mutual Fund : -
 Lump sum
 SIP according to risk profiling in equity as well as debt schemes
benefits.
 SIP according to risk profiling in equity as well as debt schemes
benefits.

2) Term Life insurance

3) General Insurance : -
 Business Premise Insurance
 Stock Insurance
 Transit Travel Insurance
 2 & 4 Wheeler Insurance
 Commercial Vehicle Insurance
 Workmen Compensation Policy
 Home Insurance

4) Mediclaim : -

 Family Floater Health Optima

 Mediclassic for Single Individual
 Senior Citizen Policy
 Comprehensive Policy
 Personal Accidental Policy
 Diabetic Policy
 Heart Care Policy
 Cancer Policy

5) Retirement Plans
6) Capital Bonds
7) Loan Against Securities
 Happy Nivesh Associated with the various companies who have a
large range of financial products.

 Mutual Funds:-

 Insurances: -

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 Chapter- 4
Review of Literature

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 4.1. Meaning & Concept of the Topic

What is Financial Literacy?

Without an understanding of basic financial concepts, people are not well equipped to
make decisions related to financial management. People who are financially literate have the ability to
make informed financial choices regarding saving, investing, borrowing, and more.

Financial literacy is the education and understanding of various financial areas including
topics related to managing personal finance, money and investing. This topic focuses on the ability to
manage personal finance matters in an efficient manner, and it includes the knowledge of making
appropriate decisions about personal finance such as investing, insurance, real estate, paying for
college, budgeting, retirement and tax planning.

Financial literacy is the confluence of financial, credit and debt management and the
knowledge that is necessary to make financially responsible decisions – decisions that are integral to
our everyday lives. Financial literacy includes understanding how a checking account works, what
using a credit card really means, and how to avoid debt. In sum, financial literacy impacts the daily
issues an average family makes when trying to balance a budget, buy a home, fund the children’s
education and ensure an income at retirement.

A lack of financial literacy is not a problem only in emerging or developing economies.

Consumers in developed or advanced economies also fail to demonstrate a strong grasp of financial
principles in order to understand and negotiate the financial landscape, manage financial risks
effectively and avoid financial pitfalls. Nations globally, from Korea to Australia to Germany, are
faced with populations who do not understand financial basics.

The level of financial literacy varies according to education and income levels, but
evidence shows that highly educated consumers with high incomes can be just as ignorant about
financial issues as less-educated, lower-income consumers (though in general, the later do tend to be
less financially literate). And it seems consumers are hesitant to learn. The Organization for Economic
Co-operation and Development (OECD) cited a survey conducted in Canada that found that choosing
the right investment for a retirement savings plan was more stressful than a visit to the dentist.

Breaking down Financial Literacy

Financial literacy also involves the proficiency of financial principles and concepts
such as financial planning, compound interest, managing debt, profitable savings techniques
and the time value of money. The lack of financial literacy may lead to making poor financial
choices that can have negative consequences on the financial well-being of an individual.
Consequently, the federal government created the Financial Literacy and Education
Commission, which provides resources for people who want to learn more about financial
literacy.

The main steps to achieving financial literacy include learning the skills to create a
budget, the ability to track spending, learning the techniques to pay off debt and effectively
planning for retirement. These steps can also include counselling from a financial expert.
Education about the topic involves understanding how money works, creating and achieving
financial goals and managing internal and external financial challenges.

The Importance of Financial Literacy: -

Financial literacy helps individuals become self-sufficient so that they can achieve
financial stability. Those who understand the subject should be able to answer several
questions about purchases, such as whether an item is required, whether it is affordable, and
whether it an asset or a liability.

This field demonstrates the behaviours and attitudes a person possesses about money
that is applied to his daily life. Financial literacy shows how an individual makes financial
decisions. This skill can help a person develop a financial road map to identify what he earns,
what he spends and what he owes. This topic also affects small business owners, who greatly
contribute to economic growth and stability.
Financial illiteracy affects all ages and all socioeconomic levels. Financial illiteracy causes
many people to become victims of predatory lending, subprime mortgages, fraud and high
interest rates, potentially resulting in bad credit, bankruptcy or foreclosure.

The lack of financial literacy can lead to owing large amounts of debt and making
poor financial decisions. For example, the advantages or disadvantages of fixed and variable
interest rates are concepts that are easier to understand and make informed decisions about if
you possess financial literacy skills. Based on research data by the Financial Industry
Regulatory Authority, 63% of Americans are financially illiterate. They lack the basic skills
to reconcile their bank accounts, pay their bills on time, pay off debt and plan for the future.

Financial literacy education should also include organizational skills, attention to

detail, consumer rights, technology and global economics because the state of the global
economy greatly affects the U.S. economy.

Declining Financial Literacy

In past generations, cash was used for most daily purchases; today, it's rarely flashed
– particularly not by younger shoppers. The way we shop has changed as well. Online
shopping has become the top choice for many, creating ample opportunities to use and
overextend credit – an all-too-easy way to accumulate debt, and fast.

Meanwhile, credit card companies, banks, and other financial institutions are
inundating consumers with credit opportunities – the ability to apply for credit cards or pay
off one card with another – and without the proper knowledge or checks and balances, it is
easy to get into financial trouble.

Many consumers have had very little understanding of finances, how credit works and
the potential impact on their financial well-being for many, many years. In fact, the lack of
financial understanding has been signalled as one of the main reasons behind savings and
investing problems faced by many Americans.

Every few years, FINRA, the finance and banking regulator, issues a five-question
test as part of its National Financial Capability Study, which measures consumers’
knowledge about interest, compounding, inflation, diversification and bond prices. Only 37%
of those who took the test got all five questions correct, which suggests that the basic
economic and financial principles that underpin these problems are widespread, touching
every state in the country in different ways.
Why Financial Literacy Matters?
Financial literacy is crucial to help consumers save enough to provide adequate
income in retirement while avoiding high levels of debt that might result in
bankruptcy, defaults, and foreclosures. A few years ago, a study from financial
services company TIAA-CREF showed that those with high financial literacy plan for
retirement and, in essence, have double the wealth of people who do not plan for retirement.
Conversely, those with low financial literacy borrow more, have less wealth and end up
paying unnecessary fees for financial products. In other words, those with lower financial
literacy tend to buy on credit and are unable to pay their full balance each month and end up
spending more in interest. This group also does not invest, has trouble with debt and a poor
understanding of the terms of their mortgages or loans. Even more worrisome, many
consumers believe that they are far more financially literate than they really are.

And while this may seem like an individual problem, it is broader in nature and more
influential on the entire population than previously believed. All one needs to do is look at
the financial crisis of 2008 to see the financial impact on the entire economy that arose from a
lack of understanding of mortgage products. Financial literacy is an issue with broad
implications for economic health and an improvement can lead the way to a global economy
that is competitive and strong.

The Bottom Line

Any improvement in financial literacy will have a profound impact on consumers and
their ability to provide for their future. Recent trends are making it all the more imperative
that consumers understand basic finances because they are being asked to shoulder more of
the burden of investment decisions in their retirement accounts – all while having to decipher
more complex financial products and options.

Learning how to read financially is not easy, but once mastered, it can ease life's
burdens tremendously.

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4.2. Conceptual Model of Financial Literacy

Description of the Model

As supported by the founders of behavioral finance, a number of factors including the

ability of the potential investors have a significant influence of the investment decisions. The

potential investors should be able to conduct a proper evaluation of the available information

and should be knowledgeable about the various investment avenues be it investing in a bank,

insurance company, post-office schemes, government securities, real estate, entrepreneurship

or different instruments being traded in the stock markets. The awareness about all these

avenues is understood as financial literacy. The level of awareness of the individual will

affect the individual risk attitudes or the benefit or otherwise predictions of the various

investment options hence affecting their investment intentions. Also the information an

individual holds determines his risk perception. A number of researchers including Finucane

et al. (2000), Weber and Milliman (1997), Ricciardi (2008) , Bonte and Filipiak (2011),

Wanyana et al (2011) etc. assert that it is the awareness/ information possessed by individuals

which form the basis for risk attitude. And perceived risk in turn affects decision making.

Accordingly the model of the study is developed, describing the inter-relationship among

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three constructs namely Financial Literacy, Investment Intentions and Perceived Risk

Attitudes. This study is an attempt to measure how much financial aware the youth are and

examine how the level of financial literacy affects investment intentions, and risk attitudes.

Similarly how Perceived Risk Attitudes are related to Investment Intentions and whether

Perceived Risk Attitudes mediate the relationship between Financial Literacy and Investment

intentions.

4.3. Review of research on the selected topic

1. Case

INTRODUCTION

Due to rapid growth in Indian economy over the last decade and expansion of financial
markets through liberalization, privatization and globalization have given a way to
overabundance of financial products in both banking, investment and loan products. Low
level of financial literacy thwarts individuals from creating veracious choices apropos
financial decisions. To accomplish the objectives, individual must capitalize his/her savings
in right investment alternatives. Demographically India uses 2.4% of world’s land with
17.5% share in world’s population1. The financial system of a country plays a key role in
economic development. Since independence Indian leaders are aiming to eradicate poverty
and turn India into vibrant, self –reliant global economy and embedded financial literacy
needs in every citizen’s life. India is traditionally a country of enthusiastic savers (K N
Narendra-2015). Indians are suffering from financial diseases like under insurance, debt trap,
insufficient retirement fund and low return on investment due to low financial literacy. 1.
Lavanya Rekha Bahadur, Financial Literacy: The Indian Story, World Journal of Social
Sciences, Vol – 5, Issue-3, September 2015, PP. 45-57. According to Organization for
Economic Cooperation and Development (OECD) “financial literacy as a combination of
awareness, knowledge, skill, attitude and behavior necessary to make sound financial
decisions and ultimately achieve individual wellbeing” 2. Based on OECD recommendations,
India created top level institutional structure in 2011 under the aegis of Financial Stability
and Development Council (FSDC). Group of Financial inclusion and Financial Literacy
headed by Deputy governor RBI and National centre for Financial Education are set up to
enhance financial ability of 500 million adults. OBJECTIVES OF THE STUDY The
foremost objective of the research is to study the level of financial literacy in India by using
literature based analysis. Methodology The study is qualitative and literature based
exploration. Data composed from secondary sources which comprise research articles, 2.
ECD INFE (2011) Measuring Financial Literacy: Core Questionnaire in Measuring Financial
Literacy: Questionnaire and Guidance Notes for conducting an Internationally Comparable
Survey of Financial literacy. Paris: OECD. Websites, newspaper articles, reports and Journal
articles.
2. Literature Based Review

Kamal Gupta et al. (2014), assessed the level of financial literacy amongst 87 micro
Entrepreneurs of Kangra district of Himalaya Pradesh based on record keeping, various
institutional awareness, savings, investment plans, savings management and various loan
products. It is found that most of respondents are responsive of bank loans, less awareness
about other financial institutions. Overall possess low financial skills which reflected in
deficient record keeping, poor cash management, improper savings habits, less awareness on
financial products. Research suggested that to create more awareness and financial
alternatives for well-being of micro Entrepreneurs. Lavanya Rekha Bahadur (2015), analysed
two pillar of the economy: financial literacy and financial inclusion and its current scenario as
well as common people perspective about financial instruments. Data collected from 202
Mumbai and thane district individuals. It is found that level of financial literacy is very low
and suggested to encourage financial literacy from school level, national level programs and
seep effort to the grass root level. K N Narendra (2014), discussed the role of Financial
Planner in the era of overloaded information. Study suggested that the persistent and
prolonged efforts by all stake holders to educate and bring down revolution in India. Sumit
Agarwal et al. (2010), examined investment behavior, liability choice, risk tolerance and
insurance usage of 1,694 Hyderabad respondents who are interested in personal finance. Data
for analysis provided by Investment Yogi Financial Advisory Services. Majority of
respondents are financially literate they answered the numeracy, inflation and diversification
questions correctly. Study found that majority of males with higher education level and
aggressive investors are more literate than females and less educated. Ratna Achuta Paluri
(2016), analyzed factors influencing financial attitudes of Indian women to classify Indian
women based on attitude with 9 variables: anxiety, interest in financial issues, intuitive
decisions, precautionary savings, free spending, materialistic and fatalistic attitude,
propensity to plan for long and short term financial goals. Study used confirmatory factor
analysis to cluster the women of Nashik city. Based on cluster analysis classified customer
into judicious consumers, conservative consumers, acquisitive consumers and unsure
consumers. It is found that only one third of respondents did not buy any financial products,
most preferred products were fixed deposit and insurance. And also found that cluster 1
followed by cluster 3 seems to be attractive for marketers, cluster 4 is unattractive. V
Mathavathani et al. (2014), focused on financial literacy of rural women in Tamilnadu based
on 3 factors: knowledge, behavior and attitude. It is found that very low financial literacy
among rural women. Puneet Bhushan et al. (2013), conducted survey of 516 salaried
individuals of Himachal Pradesh using multistage sampling to check the financial literacy
level. It is found that overall literacy level is low and financial literacy level of male is more
than females. Level of education, income, nature of employment and place of work influence
on financial literacy whereas geographical region does not influence on financial literacy.
Harsha V Jariwala (2014) assessed the financial literacy level of individual investors in
Gujarat state, India and its effect on investment decision by considering 44 variables. The
research found that 39.2% of 285 respondents are higher level of financial literacy and found
that financial literacy does have statistically significant effect on investment decision.
Priyanka Agarwal, et al. (2015), emphasis on financial literacy importance for managing
finances and investment pattern of both teaching and non-teaching female staff (20 teaching
and 20 non-teaching female staff) in education sector of Jhansi District. It is found that most
of working women are aware of Investment Avenue and invest their savings in bank and post
office fixed deposit. Visa Financial Literacy Survey (2014), depicts Indians are least
financially literate people across the globe with youngsters and women struggling most with
their financial knowledge. Only 25% of total population in India are financially literate and
ranked 23rd among 28 countries.

CONCLUSION

Rapid growth of Indian economy and complex financial market leads to improper
financial decisions. To achieve the financial objectives one has to possess basic financial
skills, awareness, knowledge, attitude and good demonstrated behavior. Various studies
reveal that the financial literacy level in India is very low, especially women and youngsters
who are struggling with their basic financial knowledge.
 Chapter- 5
Data Presentation, Analysis &
Interpretation data (1)
 Data analysis of Financial Literacy among the people in the India: -

Financial Literacy has become one of the top priorities for most of the world today as
it is directly proportional to the economic growth of a country. It is alarming to know that the
financial literacy rate in India is way behind other countries. According to a global survey,
India is home to almost 20% of the world's population, however, 76% of its adult population
is not even aware of the basic financial concepts. The survey reports that Financial Literacy
in India has been signification poor compared to the rest of the world.

 Top 10 Most Financially Literate Countries (%)

1. Denmark: 71%

2. Norway: 71%

3. Sweden: 71%

4. Canada: 68%

5. Israel: 68%

6. United Kingdom: 67%

7. Germany: 66%

8. Netherlands: 66%

9. Australia: 64%

10. Finland: 63%

At the highest level, financial literacy around the world appears strongest in countries
with developed and advanced economies, especially Western Europe and English-speaking
countries. There are no countries in South America where more than 50% of people are
financially literate, and only one country in all of Africa.

In India, Financial Literacy has still not become a priority like other developed
nations. Lack of basic financial knowledge results in poor investments and financial
decisions. That’s why most people invest in short-term plans and physical assets to
accomplish their personal goals which give lesser benefits and does not help in the economic
development of the country. According to a global survey, about a staggering 76% of Indian
adults do not understand basic financial concepts and are unfortunately financially illiterate
even today. The survey confirms the financial literacy rate in India has been consistently poor
as compared to the rest of the world. It is indeed high time for a developing country like India
to realize the importance of financial literacy as such poor financial literacy rate can prove to
be a major setback to India’s ambition of becoming an economic superpower in the coming
years.

Graph no. 5.1. Financial literacy rate around the world

Source: - S & P Global FinLit Survey
  As per the data of 2015

 Financial Literacy in India

The level of financial literacy varies across globe due to variations in the socio-
demographic variables like age, sex, religion, education level. The level of financial
literacy among different nations in the year 2015 is shown in Figure 1
The state-wise and union-territories wise level of financial literacy in India in the year 2015
is shown in Table 1 and 2.

Name of the State General Literacy (in Level of Financial Literacy

Percentage) (in Percentage)
ANDHRA PRADESH 60 23
ARUNACHAL PRADESH 55 10
ASSAM 61 20
BIHAR 50 8
CHHATISHGARH 60 4
GOA 80 50
GUJARAT 68 33
HARYANA 65 21
HIMACHAL PRADESH 73 16
JAMMU & KASHMIR NA NA
JHARKHAND 56 15
KARNATAKA 67 25
KERALA 84 36
MADHYA PRADESH 59 23
MAHARASHTRA 73 17
MANIPUR 69 36
MEGHALAGYA 60 24
MIZORAM 77 6
NAGALAND 68 8
ODISHA 64 9
PUNJAB 67 13
RAJASTHAN 56 20
SIKKIM 73 8
TAMIL NADU 72 22
TRIPURA 67 21
UTTAR PRADESH 57 10
UTTARAKHAND 68 23
WEST BENGAL 67 21
Table no. 5.1.1 financial literacy rate in India

Source: Data compiled from the national centre for Financial Education Report, 2015
 Table 1 show that Kerala being the highly literate state in India, has the second highest
level of financial literacy i.e. 36 percent. States like Goa, Manipur and Gujarat stands the
highest level of financial literacy at 50 percent, 36 percent, 33 percent respectively, which is
still considered very low. Whereas states like Chhattisgarh, Mizoram, Bihar, Nagaland,
Sikkim, Odisha, Arunachal Pradesh, Uttar Pradesh, Punjab, Jharkhand, Himachal Pradesh
Maharashtra has the lowest level of financial literacy i.e. below 20 percent.

Table 2: Union -Territories wise level of Financial Literacy in 2015

General Level of Financial

Literacy (in Literacy
Name of the Union
Percentage)
Territory (in Percentage)
Andaman and Nicobar 82.43 14
Island
Chandigarh 81.19 38
Daman And Dui 79.55 29
Dadra And Nagar Haveli 64.32 31
Delhi 80.76 32
Puducherry 80.67 21
Lakshadweep 87.95 22
Table no. 5.1.2. Financial literacy level in Indian union-territories
Source: Data Compiled from the National Centre for Financial Education Report

Table 2 shows the level of financial literacy among Union- Territories in India.
Chandigarh has the highest level of financial literacy with the 38 percent followed by Delhi,
Dadra and Nagar Haveli with 32 percent and 31 percent respectively. Whereas Andaman and
Nicobar Island shows the lowest level of financial literacy.

Table no. 2.4 Research methodology

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 Graph no. 5.1.2 India literacy rate from 1981 to 2015

 Channels through which financial education can be imparted: -

 Media Marketing: Various Government ministries are targeting multiple forms of media
to spread the words of financial education. Many financial literacy campaigns are on its
41 | P a g
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 way through all forms of media available today in the country. Government of India is in
the process of integrating financial awareness messages and messages of general social
and economic concerns. Particularly the mode of Social Media Marketing has seen great
awareness campaigns in present times which are guiding masses through various forums
and activities. Major Media marketing sources include Newspapers, Radio, TV, Financial
education websites, Books and magazines (through cartoon mode),and use of social
networking sites like twitter, face book etc.
 Adult Education: Adult education should be an integral part of financial education.
National financial educational council has designed adult personal finance curriculum
which is practical and provides hands on learning. These programs are designed to fulfill
variety of financial goals for adults like debt mitigation, investment planning, residential
house planning, retirement planning, financial recovery, insurance etc. Overall, the main
motto is to impart practical financial education to majority of adults across the country.

 Self Help Groups and Microcredit Institutions: According to RBI Self Help Groups
are registered or unregistered group of people having homogeneity in socioeconomic
background that join hands together to contribute regular savings to a common fund and
meet their emergency needs on mutual help basis. In India, SHGs are related to various
banks so that they can deliver micro-credit to poor women. Micro-credit refers to small
loans that is given to individual who don’t have collateral to meet their immediate credit
needs which are short term in nature. With various initiatives of central and state
Governments, the National Bank for Agriculture and Rural Development (NABARD), is
lending the financial assistance for rural women of India. This kind of initiatives expected
to reduce gender inequalities and also growth of marginalized sections of the country.
Self Help Groups have successfully contributed in enhancing financial literacy as SHGs
provide financial exposure by collecting, investing, spending, accounting and managing
common funds. They have learned the art of smart budgeting.

 Microfinance Institutions: Micro finance is a source for having easy access to financial
services and banking related matters. Micro financial institutions create awareness in an
individual and grant loans with effective interest rates not like moneylenders who charge
exorbitant charges on loan.

 Integrated communication channels: Various communication channels like internet,

TV, Radio, Print and should be used efficiently in spreading financial knowledge. There
 is a need to link all campaigns and promotional activities carried out by various ministries
to synchronize their activities in such a way that message reaches to the masses.

 Helpline: There is a need to establish toll free helpline communication centers which are
able to disseminate help in multiple languages, where an individual can contact and get
friendly assistance for all finance related issues. This will help them to know where they
are lacking and where they to go to solve the query. This helpline mode will educate them
by giving them various alternatives of doing things. Helpline desk can bring vital change
in society and so forth in financial education.
 Other Channels: There are various other channels through which financial education can
be imparted are: Registered/Unregistered Associations of consumers, Investors’
Associations, Association/Bodies of Policy Holders, Deposit holders’ association, Stock
Exchanges, AMFI, ANMI and SROs associated with regulators. Financial intermediaries
like banks, DPs, brokers, portfolio fund managers; annuity service providers etc. can play
important part in making a person financially literate. Consumers / clients / investors need
to be made aware of their rights and responsibilities.

 Efforts taken by various Regulatory bodies in improving financial literacy:

 Financial Education initiatives by Reserve Bank of India: Reserve Bank of India has
initiated a project titled as “Project Financial Literacy”. The objectives of this project
were divided into three parts: Role of RBI as reserve bank and how it is linked to
common person. It is related to banking i.e. why one should save in banks, what are
different types of accounts, how can they take loan and consumer rights and redressal.
Finance: that how you can take care of money for a better future. Their target audience
was rural people, urban poor, children, students, women, senior citizen. Various other
initiatives were taken such as RBI website will be multilingual i.e. it will be available in
13 languages for common person, multilingual reading material will be made available in
the form of comics, educational games, skits, films and also financial literacy centers will
opened to improve financial literacy.

 SEBI’s Initiatives on Financial Education: “Securities Exchange Board of India has

constituted “Sanchayan” which is an investor’ association to conduct financial literacy
programs. SEBI is conducting programs at pan India level to promote financial education
through multiple programs, campaigns, activities etc to impart knowledge to school
students, college students, employed executives, SHGs, retired personnel, working
 professionals etc. SEBI has created a panel of various Resource Persons throughout India.
These Resource Persons imparts training on various aspects of finance and equips people
with the knowledge of financial markets, modus operandi, risks associated, right issues
etc. These SEBI Certified Resource Persons organize timely workshops to target intended
audience and teach them nuances of savings, investment, financial planning, banking,
insurance, retirement planning etc.

 IRDA’S Initiatives on Financial Education: Insurance Regulatory and Development

Authority (IRDA)4 is also making serious efforts to enhance the levels of financial
literacy in India. Some of them are:

o Programs on awareness: Mainly through TV and Radio many campaigns are

operational. Huge chunks of financial information have been decoded concerning
the rights and duties of policyholders. Available channels and help lines which are
available for customer grievance redressal are being popularized through various
media platforms in more than 11 languages.

o Annual Seminars: Annually seminars are conducted by IRDA for policy holder
protection and welfare. IRDA also sponsors various seminars partially on
insurance with help of various insurance bodies.

o Pan Survey: A pan India survey was conducted by IRDA to check awareness
levels about insurance through the NCAER as a motto to work on strategies to
improve and crating insurance awareness.

o Hand books and comics: IRDA has come up with many fictional characters
depicting real life investors featured in comic books and magazines. IRDA has
also brought out many publications of “policyholder handbooks” which are
proving tremendously fruitful to the investor communities. Launch of a fully
dedicated website for investor education and consumer rights awareness etc.

o Integrated Grievance Management System (IGMS): A central repository of

grievances across the country was created on the name of Integrated Grievance
Management System (IGMS) which provides for various data analysis to
concerned insurance policy holder.
 Chapter- 6
Data Presentation, Analysis &
Interpretation data (2)
 6.1. Data Presentation

 Following is the Analysis of the data as per the quiz conducted to know the financial
awareness among the people.

1) Profession :

Respondent

Retired 78

Employee 52

Business 34

Housewife 36

Total 200

Table no. 6.1.1 Profession wise classification

Profession wise classification

36%
78% Retired
34% Employee Business

52%
Housewife

Graph no. 6.1.1 Profession wise classification

Interpretation: - Researcher have done quiz type of survey in which researcher received
Response from four different profession like Retired, Employee, Businessman, & Housewife.
Where most of the response get from the Retired persons (78%), and 52% from the employees,
& housewives are 2% more than Businessmen.
2) Equity investment are subjected to market risk?
Answer: - Yes

TRUE FALSE Total %

(correct answer)
Retired 52 26 78 66.67%
Employee 40 12 52 76.92%
Business 26 8 34 76.47%
House wife 24 12 36 66.67%
200

Table no. 6.1.2 Equity investment

12
House wife
24

8
Business
26

12
Employee
40

26
Retired
52

0 10 20 30 40 50 60

FALSETRUE

Graph no. 6.1.2 Equity investment

% Correct Answers
78.00% 76.92% 76.47%
76.00%
74.00%
72.00%
70.00%
68.00%
66.00% 66.67% 66.67%
64.00%
62.00%
60.00%

RetiredEmployeeBusinessHouse wife

Graph no. 6.1.3 equity investment (%)

Interpretation: - Majority of employees i.e. 76.92% and business persons i.e. 76.47% of the
respondents are aware about more equity investments and hence usually invest in that as
compared to housewives and retired people who are generally not much aware about equity
investments.
3) Equity Mutual Fund investors have to bear Securities Transaction Tax (STT).
Answer: - True
True False Total %
(correct answer)
Retired 61 17 78 78.20%

Employee 48 4 52 92.30%

Business 26 8 34 76.47%

House wife 23 13 36 63.89%

200
Table no. 6.1.3 Equity Fund in MF

TRUEFALSE

61

48

26
23
17
13
8
4

RETIRED EMPLOYEE BUSINESS HOUSE WIFE

Graph no. 6.1.4 Equity Fund in MF

House wife 63.89%

Business 76.47%

Employee 92.30%

Retired 78.20%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

% (Correct Answers)

Graph no. 6.1.5 Equity Fund in MF (%)

Interpretation: 98.30% employees & 78.20% Retired people are known to the fact that Equity
Mutual Fund investors have to bear Securities Transaction Tax (STT). Not only Retired people
but also most of the employee are aware about the equity funds in mutual fund but still so many
respondent from every profession has not given correct answer.
4) Is Suicide covered in term life insurance?
Answer: - Yes

TRUE FALSE Total %

(correct answer)
Retired 16 62 78 20.51%

Employee 22 30 52 42.30%

Business 16 18 34 47.06%

House wife 10 26 36 27.78%

200

Table no. 6.1.4 Term life Insurance

House wife 10 26

Business 16 18

Employee 22 30

Retired 16 62

0 10 20 30 40 50 60 70 80

TRUEFALSE

Graph no. 6.1.6 Term life Insurance

47.06%
50.00% 42.30%

40.00%
27.78%
30.00%
20.51%
20.00%

10.00%

0.00%
RetiredEmployeeBusinessHouse wife

% (correct answer)

Graph no. 6.1.7 Term life Insurance (%)

Interpretation: - Only 20.51% retired peoples and 27.78% of housewives are of the opinion that
suicide is covered in term life insurance as compared to 47.06% and 42.30% of business and
employees who are more aware about the fact.
5) Is Mediclaim has waiting period?
Answer: - Yes
TRUE FALSE Total %
(correct answer)
Retired 45 33 78 57.69%

Employee 28 24 52 53.84%

Business 21 13 34 61.76%

House wife 20 16 36 55.56%

200
Table no. 6.1.5 Mediclaim

50 Retired, 45
45
40
35 Retired, 33
30 Employee, 28
25 Employee, 24
20
15 Business, 21 House wife, 20
10 Business, 13 House wife, 16
5
0

RetiredEmployeeBusinessHouse wife

TRUEFALSE
Graph no. 6.1.8 Mediclaim

HOUSE WIFE 55.56%

BUSINESS 61.76%

EMPLOYEE 53.84%

RETIRED 57.69%

48.00%50.00%52.00%54.00%56.00%58.00%60.00%62.00%

% (Correct Answers)

Graph no. 6.1.9 Mediclaim (%)

Interpretation: - 61.76% of business people and 57.69% retired persons feel that Mediclaim has
waiting period than that of 55.56% of housewives and 53.84% of employees.

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6) Is it possible to withdraw money from Mutual Fund without exit load?
Answer: - No
TRUE FALSE Total %
(correct answer)
Retired 32 46 78 41.02%
Employee 20 32 52 38.46%
Business 14 20 34 41.17%
House wife 14 22 36 38.89%
200
Table no. 6.1.6 Exit load in Mutual Fund

50
40
30
20

FALSE
10
TRUE
0
RetiredEmployeeBusinessHouse wife

TRUEFALSE
Graph no. 6.1.10 Exit load in Mutual Fund

House wife 38.89%

Business 41.17%

Employee 38.46%

Retired 41.02%

37.00% 37.50% 38.00% 38.50% 39.00% 39.50% 40.00% 40.50% 41.00% 41.50%

% (correct answer)

Graph no. 6.1.11 Exit load in Mutual Fund (%)

Interpretation: - In the context of mutual fund, 41.17% & 41.02% of business and retired
persons are of the opinion that it is possible to withdraw money from mutual funds without exit
load than that of only 38.89% & 38.46% of housewives and employees.

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7) What is the Minimum Lock-in-period in case of Tax-Saving funds/scheme?

Answer: - 3
TRUE FALSE Total %
(correct answer)
Retired 35 43 78 44.87%
Employee 18 34 52 34.61%
Business 16 18 34 47.06%
House wife 10 26 36 27.78%
200

Table no. 6.1.7 Tax Saving Funds

House wife

Business Employee
Retired

0 5 10 15 20 25 30 35 40 45
FALSETRUE

Graph no. 6.1.12 Tax Saving Funds

% (correct answer)

50.00% 44.87% 47.06%

40.00% 34.61%
27.78%
30.00%

20.00%

10.00%
Retired Employee Business House wife

0.00%

Graph no. 6.1.13 Tax Saving Funds (%)

Interpretation:- Majority of respondents i.e. 47.06% & 44.87% are genuinely of the opinion
that there is minimum lock-in period in case of tax saving schemes/ funds as compared to that of
employees and housewives.
8) What are the options not available in 80C section of ITR?
Answer: - National Pension Scheme (NPS)

TRUE FALSE Total %

(correct answer)
Retired 16 62 78 20.51%
Employee 22 30 52 42.30%
Business 8 26 34 23.53%
House wife 12 24 36 33.33%
200

Table no. 6.1.8 80C in ITR

70 62
60
50
40
30
26 24
30 22
16
20 12
10 8
0

RetiredEmployeeBusinessHouse wife

TRUEFALSE
Graph no. 6.1.14 Tax Saving Funds

% (correct answer)

House wife 33.33%

Business 23.53%

Employee 42.30%

Retired 20.51%

Graph no. 6.1.15 Tax Saving Funds (%)

Interpretation: - 42.30% and 33.33% of employees and housewives have responded that NPS is
included in 80C section of ITR whereas only 23.53% & 20.51% has agreed to this.
9) Following which is not an asset class?
Answer: - Gold

TRUE FALSE Total %

(correct answer)
Retired 19 59 78 24.36%
Employee 4 48 52 7.69%
Business 14 20 34 41.18%
House wife 10 26 36 27.78%
200

Table no. 6.1.9 Asset Class

TRUEFALSE

59

48

26
19 20
14
10
4

Retired Employee Business House wife

Graph no. 6.1.16 Asset Class

% (correct answer)

House wife 27.78%

Business 41.18%

Employee 7.69%

Retired 24.36%

0.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%

Graph no. 6.1.17 Asset Class (%)

Interpretation:- Through this survey, researcher has understood that 41.18% business people
prefer that gold is not an asset class, 27.78% & 24.36% of housewives and retired persons too
agree to this fact, but there are only 7.69% of employees who have responded to his fact.
10) Which has Longest Lock-In-Period from the following?
Answer: - Public Provident Fund (PPF)

TRUE FALSE Total %

(correct answer)
Retired 18 60 78 23.08%
Employee 18 34 52 52.94%
Business 6 28 34 17.65%
House wife 16 20 36 44.44%
200

Table no. 6.1.10 longest Lock-in-period

HOUSE WIFE 16 20

BUSINESS 6 28

EMPLOYEE 18 34

RETIRED 18 60

0 10 20 30 40 50 60 70 80

TRUEFALSE

Graph no. 6.1.18 longest Lock-in-period

% (correct answer)

52.94%
44.44%

23.08%
17.65%

Retired Employee Business House wife

Graph no. 6.1.19 longest Lock-in-period (%)

Interpretation:- Majority of respondents i.e. 52.94% & 44.44% are of the opinion that PPF has
longest lock-in period than that of 23.08% of retired persons and 17.65% of business peoples.
 Profession wise analysis of correct answers given by the Respondents :-

Profession Average
(Correct Answers)
Retired 41.88%

Employee 49.04%

Business 48.04%

House wife 42.90%

Table no. 6.1.11 Overall analysis

Average correct answers

49.04%
50.00%
48.04%

48.00%

46.00%

44.00% 42.90%
41.88%
42.00%

40.00%

38.00%
Retired Employee Business House wife

Average correct answers

Graph no. 6.1.20 Overall analysis

Interpretation:- Through this survey, researcher has understood that retired persons and
housewives have less financial literacy than that of employees and business persons. Though
employees and business are aware about financial literacy but still measures should be taken
to make them more aware about it.
 Chapter- 7
Conclusion & Suggestions
7.1. Conclusion / Findings

1. Happy Nivesh Financial Services provides the various type of financial products, & provides

better service to their clients.

2. Happy Nivesh Financial Services provides online services through the app Happy Nivesh,

which helps the client to get update about their investment.

3. During the Research, Researcher come to know that there is lack of financial literacy among

the Retired people as well as housewives.

4. Businessmen who should have the knowledge of equity funds and tax saving funds, they fail

to answer to questions which depicts their low financial literacy.

5. The various initiatives have been undertaken by the government (Reserve Bank of India,

Securities and Exchange Board of India, Insurance Regulatory and Development Authority)

to improve the level of financial literacy in India.

7.2. Suggestions / Recommendations

1. Happy Nivesh is doing great work in context with its customers. It should think about

expanding its business in more areas as they have huge scope.

2. As the mission mentioned the Proprietor has to spread awareness by conducting

seminars.

3. As per the analysis they should focus on educating Housewives & retired people though

retired people have experience but some of them are still not aware about financial

literacy.

4. Proprietor should conduct more seminars, workshops, etc. so as to spread financial

awareness among more and more investors.

5. As proprietor writes blogs to provide financial literacy, should write more blogs on

financial literacy in the context of housewives.

6. Proprietor also should spread awareness trough media marketing, adult educating

program, by providing helpline number etc….

 Bibliography

 Book: -
Research methodology: - P. B. Kothari
 Websites: -

http://www.ijrbsm.org

https://www.investopedia.com/

https://shodhganga.inflibnet.ac.in/

www.managejournal.com

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APPENDICES/ ANNEXURE

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 Questionnaire

Name -

Email -

Mobile No. -

Age -

Profession: -

a) Employee
b) Business
c) House wife
d) Other - _

1) Equity investment are subjected to market risk?

a) Yes
b) No

2) Equity Mutual Fund investors have to bear Securities Transaction Tax (STT).
a) True
b) False

3) Is Suicide covered in term life insurance?

a) Yes
b) No

4) Is Mediclaim has waiting period?

a) Yes
b) No

5) Is it possible to withdraw money from Mutual Fund without exit load?

a) Yes
b) No
6) What is the Minimum Lock-in-period in case of Tax-Saving funds/scheme?
a) 10
b) 2
c) 5
d) 3
e) Other -

10) What are the options not available in 80C section of ITR?

a) Public Provident Fund (PPF)

b) Life Insurance Policy

c) National Pension Scheme (NPS)

d) Equity Linked Saving Scheme (ELSS)

11) Following which is not an asset class?

a) Property

b) Gold

c) Equity

d) PPF

12) Which has Longest Lock-In-Period from the following?

a) Mutual Fund

b) Life Insurance Policy

c) Provident Fund

d) Public Provident Fund