INDEX

S.NO TOPIC PAGE NO.

i. INTRODUCTION

ii. REVIEW OF LITERATURE

iii. INDUSTRY AND COMPANY PROFIE

iv. DATA ANALYSIS AND

INTERPRETATION

v. FINDINGS

vi. SUGGESTIONS

vii. CONCLUSSION

viii. REFERENCE
 ABSTRACT

Financial planning is the process of evaluating a person's financial objectives, taking into
account any debt they may have, identifying their life goals, and then taking the required
actions to reach those goals within the designated time frame. It's a method for putting a
person's needs in monetary terms. The purpose of this study is to provide answers to the
following queries:
Q1: How can an investor budget his financial resources?
Q2: What is the investor's overall plan for both short- and long-term objectives?

The researcher gathered primary data for the study by asking investors about their risk
tolerance and investing goals. The thorough investigation into every facet of this subject has
demonstrated that financial planning is a dynamic and adaptable idea that entails.
 CHAPTER – 1
INTRODUCTION
 INTRODUCTION

Financial planning is not just about investments. There are many ways to use a
business plan for the duration of the economic period. You agree to manage
your finances to relate them to your goals and what you want to achieve.
Making an independent investment in a life insurance product doesn't mean anything if
you don't know the amount of coverage needed, if the expired product is adequate, or if
life coverage is required.

In all the world, everyone earns money to achieve one or more of their life goals. People
use the money for purposes, like financing their daily expenses to buy exotic luxuries for
a better life. Payment can be recorded, accumulated, and increased to support various
financial goals of an individual or group. Such as education, life insurance, marriage,
buying a house, retirement, and even the transfer of inheritance to the next generation
of power on the market. The money earned is used to finance some of the immediate
expenses or a goal in the distant future. When the payment is received to support one of
the future objectives, it must invest optimally to offer the maximum return and
minimize costs and risks.

The individual's risk profile and time horizon of the goal and the taxation Aspects
related to personal finance. Since 2012financial Planning is increasing day by day.
Financial planning and investment of individuals are an integral part of any individual
life, especially in this modern world, where the value of everything expressed in terms
of money. An active working span of human life is short as compared to the life span. It
means people will be spending approximately the same number of years after
retirement what they have spent in their active working life.

Thus, it becomes essential to save and invest while working so that people will continue
to earn money and enjoy a comfortable lifestyle.

The Financial planning enables a person to identify their goals and objective, assess
the current position, and take essential steps to achieve the goals and objectives. It
helps us to understand how the financial decisions made an effect on the life for us.

Financial planning. by proper financial planning, a person can have a comfortable and
secure economic life.

STUDY OF VARIOUS FACTORS :

The following should be taken into account for financial planning:

Momentum Objectives & Scope: It's critical to comprehend each person's objectives and the
timeframe within which they want to accomplish them. Some people set short-term
objectives that they hope to accomplish within the year. It's critical to adopt a cautious
mindset and avoid taking on excessive risk in order to achieve such goals.
However, one may afford to take on greater risk and make the most of their time when
pursuing long-term objectives.

Risk Tolerance:

Everyone should be aware of their level of risk tolerance. Certain investments may carry
greater risk than others. These won't work for someone with a limited risk tolerance or for
objectives that call for conservatism. More importantly, a person's risk profile will evolve
with each stage of life. A young individual may be able to assume a high level of risk if they
have no financial obligations or dependents. But this young individual will have more
financial obligations and dependents if they marry and have a child. People's attitudes about
danger and money therefore can't be the same as they were when they were single.

LIQUIDITY NEEDS:

The liquidity needs are the timing and speed at which funds are needed to achieve the
objective. When investing in an item with the intention of selling it to raise money for a
purpose, it's important to know how simple it will be to sell the asset. Assets connected to the
stock and money markets are typically simple to dispose.
Conversely, a product like real estate could take a while to sell.

Inflation:
In India, inflation is a reality of economic life. The cost of the cold drink bottle that is being
brought now is about twice as much as it would have been ten years ago. In ten years, a
packet of cookies that costs Rs. 20 now would cost Rs. 30, assuming inflation stays at or
slightly above 4% annually. Just consider how much purchasing a home or a car may cost in
ten years!
Each year, the purchasing power of money decreases. As a result, the price of reaching
objectives must be considered in relation to the future inflation.

Need for Growth or Income:

When making investments, people consider their needs, including the need for income or
capital appreciation. Not every investment satisfies both demands. A lot of individuals
purchase apartments, but even when they move there, they do not rent them out. They are
therefore not receiving any income from this asset and are most likely solely anticipating
capital growth. Generally speaking, a young person should think about investing for capital
appreciation in order to capitalize on their youth. On the other hand, an elderly person might
be more focused on making money for himself.
Financial planning in six steps

1. Self evaluation:
Before arranging their finances, one must first make sense of their current
circumstances. Making a self-evaluation helps one realize their current
financial situation and obligations. The following should be included in your
self-evaluation:
The anticipated retirement age.
• The primary source of income.
• The family's dependents.
• Monthly savings and expenses.
• The current state of investments.
Finding one's wealth position is a necessary first step in financial planning.

2. Determine your financial and personal objectives.

Every person wants to live a better, happier life. There are certain wants and
desires that must be met in order to live such a life. One way to satisfy these
needs and desires is with money. A child's education and marriage, the
purchase of a dream home, emergency medical coverage, building enough
financial resources to lead a pleasant retirement, etc. are some of the usual
demands that most people would have.

3. Determine financial issues or opportunities:

After objectives and the existing circumstances are determined, the amount still needed to
reach the objective can be evaluated. To fully meet the needs of different life phases, this
shortfall must be filled gradually. Since the future is unpredictable, when making financial
plans, all possible scenarios should be taken into account. A sound financial strategy should
protect against several risks. We should have a flexible strategy to accommodate evolving
requirements and be prepared to periodically rearrange our financial plan.
4. Establish suggestions and backup plans:
Now examine a range of investment possibilities, including equities, mutual funds, bonds,
fixed deposits, gilt funds, PPF, and other debt instruments, and decide which one or more of
these best fits the situation. The investment period and the goal-setting period need to line up.

5. Use the right tactics to accomplish your objectives:

Nothing is useful unless someone puts it into practice. To reach financial objectives,
essential actions must be completed. These may include obtaining required paperwork,
opening required bank, demat, and trading accounts, corresponding with brokers, and getting
going. To put it plainly, begin investing and follow the schedule.

6. Periodically review and revise the plan:

Making a financial plan is a continuous process. A effective plan requires a significant

commitment and regular evaluations, such as every six months or during significant life
events like marriage, divorce, or inheritance. A person should be ready to adjust their existing
financial status, ambitions, and investment time horizon in small or large ways in response to
an assessment of investment performance.

What Financial Planning Is Made Of

The following should be included in a sound financial plan:
• Insurance-based risk planning.
• Retirement planning.
• Tax planning.
• Investment and savings options.
• Contingency planning.
 NEED FOR THE STUDY

Financial planning is essential for individuals to build wealth, prepare for emergencies, and
plan for retirement. It teaches the importance of diversifying investments, risk assessment,
setting financial goals, tracking progress, and tax efficiency. It also helps in setting short-term
and long-term financial goals, tracking progress, and using tax-advantaged accounts
effectively.

Regular financial planning helps individuals set short and long-term financial goals, track
progress, and maximize tax efficiency by understanding investment implications and using
tax-advantaged accounts like IRAs and 401(k)s.
 OBJECTIVES OF THE STUDY

• To comprehend the financial arrangements of those who live

• To determine a person's investing behavior.

• To determine different investment opportunities.

• To raise public awareness of budgeting.

• To investigate the variables affecting the choice to invest.

• To gather a general understanding of the investor's long- and short-term aims.

• To possess the present financial advantages and disadvantages as well as the impact

of the financial strategy on the investor.

• To examine the investor's financial goals that are based on available resources.

• To provide a specific summary of every suggestion.

• To recommend a suitable financial strategy for a recommendation that has been

mutually selected.
 SCOPE OF THE STUDY

Personal financial advisors are not reserved for the wealthy; anyone who aspires to start their
own business can benefit from their services. Everyone can gain from objective assistance in
creating, growing, accumulating, and using wealth to systematically and worry-free fulfill
personal, family, and other lifestyle objectives. Financial advisors can help people
accomplish their ultimate goal of retiring comfortably without sacrificing standards of living
or addressing other issues. A qualified financial advisor will offer guidance on systematic
saving. Management of cash flow, debt, and asset allocation for investments Planning for
insurance helps manage risk. Tax methods for raising the inventible surplus. Assign leftover
wealth by means of estate planning. methodical preservation. management of cash flow. debt
supervision. The distribution of investment assets. We are controlling risk by using insurance
planning.

The A career in financial planning requires strong communication abilities as well as

familiarity with the operations and dealings of the financial services sector. He could work as
a financial advisor for an insurance firm, bank, or own enterprise. The most crucial thing to
realize is that the things you are advising individuals to buy should be appropriate for their
age, goal- and objective-setting timeline, and risk tolerance. Financial advisors must stay
current on new services, goods, and tax regulations that may benefit their customers. It takes
a lifetime of continual study in this industry. People can benefit greatly from the assistance of
a reliable financial planner in realizing their aspirations, which may include purchasing a
home and seeing their children education, marriage, and enjoy an active retirement.
 RESEARCH METHODOLOGY

The purpose of the study is to identify different investment options and strategies for using
financial planning to meet both short- and long-term financial objectives. It aims to
investigate the way a person divides up his savings across different asset classes. It explains
how investors are aware of the range of options at their disposal. Additionally, it seeks to
raise public knowledge of financial planning.

The research period was spread out over twenty days, and the data needed for the study
would be obtained through in-person interviews and questioners as well as cold calling (cold
calling is the practice of approaching potential customers or clients who were not expecting
such an interaction). For this reason, the researcher selected the Nariman Point neighborhood
in Mumbai, where there are enough well-educated office workers to aid in our
comprehension of the process of financial planning.

Data collection techniques and tools

The researcher used both primary and secondary data gathering methods to aid in the data
collection process.
Primary data are those that are newly gathered and unique in nature because they are obtained
for the first time. Personal interviews were employed to employ this strategy, in which the
researcher spoke with the subjects face-to-face. Having comprehensive knowledge about the
topic was the deciding factor in selecting this approach. Additionally, it offered the chance to
choose the sample for an interview. A combination of organized and unstructured interviews
were undertaken. The interviewee retained the option to dive into a more in-depth discussion.
When time was of the essence, an organized process was used, in which preset questions
were put forward.

Secondary data are those that are already in the public domain, meaning that they have
previously been gathered and examined by another party. This approach was taken in order to
gain more knowledge and exposure to the topic. Data from the World Wide Web, media
articles, financial industry reports, Financial Planning Board of India reports and articles,
government of India reports, etc. were used as the methods. The project guide also offered
assistance by contributing ideas gleaned from his extensive experience.

sample design :

The foundation of sample design was sample survey theory. Based on

sociodemographic variables including age group and income, the sample was chosen.
There could only be 50 respondents because of time constraints. The sampling unit
was the geographic area of Mumbai's Nariman Point where the research was
conducted. The list of sources used by the respondents was chosen at random and was
not preset. The following are the different criteria that were used to perform the
research:

• Financial planning awareness.

• Life and financial goal alignment.
• Asset class distribution of investments.
• Decision-influencing investment.
limitations of the study:

• Absence of reaction from the sample: This is also referred to as information resource
access. The respondent was not readily available for conversation because the
technique used involved cold contacting them.
• Technically speaking, this is known as information access. Many of us feel uneasy
discussing our money matters in public. The researcher needed to persuade the
respondent numerous times in such a scenario. There would frequently be merely
general conversation as well.
• The research could not be done on a big sample size since the respondents were not
available for a long enough amount of time, and the period of time available for data
collection was limited.
• Researchers frequently have to reveal the identification of the organization in order to
gain access to respondents. Individuals believed it was a sales or promotional effort,
which caused many to respond negatively.
 CHAPTER – 2
REVIEW OF LITERATURE
 REVIEW OF LITERATURE

• Gaurav Kabra (2010) seek to determine the variables that affect investment
behavior and how these variables affect men's and women's risk tolerance and
decision-making attitude, with age potentially playing a role. They employed
regression analysis and hedging for their analysis. They came to the conclusion that
although investors are now more experienced and knowledgeable, they still prefer to
make investments based on their level of risk tolerance.

• K. Malar Mathi (2012), the goal of this research is to comprehend the behavior
of individual investors. Information about the behavior of individual investors has
been gathered via reviews of the literature and research papers that have been
referred to different journals. The expansion of the rural market in the nation is a
prerequisite for the development of the economy. Low investment in rural areas can
be attributed to a lack of funding. moving to a city to get work.

• Geetha and Ramesh (2012): "A Study on Relevance of Demographic Factors

in Investment Decisions, discovered that a variety of demographic factors, including
gender, age, sex, education, occupation, income, savings, and family size, have an
impact on factors like investment period, frequency, reach of source information, and
analytical skills. The authors found that certain investing decisions are significantly
influenced by demographic characteristics. Additionally, it provides a broad
overview of how investors feel about different investing options.

• Jyothi Lingam (2013), reviewed the body of research on investors' perceptions

of different investment options. Both primary and secondary data were used to create
this. It was suggested that female investors should be eager to invest in assets other
than gold, such as money, shares, and mutual funds. Draw the conclusion that
investors choose safer investment options such as bank savings, gold, and mutual
funds. Investors attempt to minimize risk.
• Sah, Shalini, and others (2013) With regard to making financial investment
decisions, they aimed to ascertain the attitudes and beliefs of individual investors,
paying special attention to investor biases. To comprehend the opinions and
preferences of investors, they carried out a thorough investigation. They discovered
that a variety of preferences and opinions held by individual investors skew their
financial investing choices. They proposed that a deeper comprehension of the
psychology of individual investors will aid in the understanding of how these
decisions are formed.

• K. P. Sindhu (2014) The aim of this study was to determine how individual
investors' perceptions of risk affected their decisions to invest in mutual funds. One
key element influencing investment is the investor's perception of risk. This study
determined the elements influencing an investor's perception of risk based on a
survey of the literature and interviews with subject-matter experts.

• Devi and Chitra (2014) found in their study, "A Study on Salaried Employees
Behavior towards Domestic Savings and Investment in Rasipuram Town," that
various investor categories make their investments based on the length of time they
have to consider their options, the choices they make, and their degree of satisfaction.
The F-test and Chi-square test were used to analyze the data. The study went on to
say that whereas investing was formerly only done by the wealthy and business elite,
it is now a regular subject for everyone. Furthermore, more people are working,
which raises family earnings; tax benefits are offered; there are ample and alluring
investment opportunities; etc., all of which create opportunities for saving and
investing.

• M. Prakash and Ashly Lynn Joseph (2014). In order to gain insight into the
various investment avenues that are available and to comprehend the preferred
investment avenue among the people of Bangalore City, they have disclosed in their
paper, "A Study on Preferred Investment avenues Among the People and the Factors
Considered for Investment." There are new financial products available in the modern
world. Because the average person lacks the necessary financial expertise to determine
the elements that are taken into consideration for making solid investment selections,
it has become more difficult and complex to choose the best options. Additional
 analysis reveals that investors are more drawn to conventional assets like bank
accounts, insurance, and post office receipts because they are less knowledgeable about
stock market and equity investments.

• Puneet Bhushan (2014) evaluated how salaried people's investing preferences

relate to their level of financial literacy. Through the use of a non-disguised
structured questionnaire, primary data has been collected. A multistage sampling
technique was employed to gather data. Himachal Pradesh is divided into twelve
districts in total. These three districts, Kangra, Solan, and Shimla, were chosen at
random (first stage). Utilizing the OECD technique, determine the respondents'
degree of financial literacy. Individuals' awareness of financial goods and investing
preferences are influenced by their level of financial literacy. People who are less
financially literate tend to favor traditional financial products.

• Laxman Prasad (2015) study was to comprehend investor attitudes regarding

investment option selection and to determine all the factors that influence these
attitudes, with a focus on small-sized Pabs. Investors should properly investigate the
risk associated with their investments before making any decisions, otherwise it is
preferable to follow advice from asset management firms.

• Uddin, A. (2016) This work is based on research to identify the drawbacks of this
scheme and the factors that encourage systematic investment plans. For the purposes
of the study, 100 respondents who own SIP accounts in Gandhinagar, Gujarat, were
selected as the sample size. Data have been gathered through the use of
questionnaires from primary sources. Multiple statistical tools were employed to
analyze the collected data. According to the study's findings, investors are motivated
to participate in systematic investment plans when they may earn larger returns at
lower risk. However, one of the biggest obstacles to these plans is lack of information
and an insufficient operational platform.

• Mahalakshmi Kumar and Rajesh Mankani (2017) investigate the

knowledge of working women on the range of investment alternatives accessible,
specifically focusing on Mumbai. A descriptive cross-sectional design was used, and
a structured questionnaire was used to gather primary data. Education makes women
more conscious of the need to work, save, and make investments. It improves their
capacity to comprehend different investment paths, their benefits, and drawbacks,
 and aids them in choosing wisely in order to meet their financial objectives. It gives
them the ability to become financially independent, which can also empower them in
other spheres. Women who have had an education are more self-assured and capable
of realizing the significance of making investing selections in order to reach their
financial objectives.

• Baiq Fitri Arianti (2018) examined and quantified the extent to which an
individual's income, financial behavior, and financial literacy impact their choice of
investments. The techniques utilized were descriptive statistical analysis, data quality
test, classical assumption test, multiple linear regression test, F test, t-test, and
coefficient of determination. The data was acquired by questionnaires, with a sample
size of 100. The impact of income on investment decisions is far greater than that of
financial knowledge.

• Varun Sagar Singal et al. (2019) attempted to determine the variables

influencing mutual fund investment decisions, the influence of behavioral
characteristics on an investor, and the variables that deter people from investing.
Essential elements like historical performance, the fund manager's experience, risk,
return, and diversity are crucial in helping investors make decisions.
 CHAPTER - 3
INDUSTRY AND COMPANY PROFILE
 COMPANY PROFILE

As one of the top 3 private sector financial organizations in terms of net worth, Reliance
Capital, the fastest-growing private sector financial services company in India, promotes
RELIANCE MONEY, which is a member of the Reliance Anil Dhirubai Ambani Group. On
May 3, 2007, Reliance Money made its formal debut.
Reliance Money is a full-service provider of financial solutions and services that makes it
easy, affordable, and safe for consumers to engage in trading and investing. Offering
comprehensive financial solutions, including web- and mobile-based services, it is a one-stop
shop. With more than 10,000 locations and 20,000 contact points dispersed over 5,165 cities
and towns, it boasts the largest non-banking distribution system, meeting the varied demands
of more than 3 million current clients.
Investment banking, mutual funds, initial public offerings (IPOs), gold coins, offshore
investments, equity and commodity derivatives, portfolio management services, wealth
management services, and life and general insurance products are just a few of the asset
classes in which one can invest with Reliance Money. Additionally, customers can take
advantage of credit card, money transfer, money changing, and loan services.
Through its Portal, Call & Transact, Transaction Kiosks, and network of affiliates, Reliance
Money provides the ease of both online and offline transactions. Its goal is to alter the
manner that India obtains financial services and conducts business in the financial industry.
Associates for Reliance Money.

Reliance Money has affiliates, among other things:

Retail, institutional, and corporate clients can obtain equities broking services from Reliance
Securities Limited. It is a participant in the Bombay Stock Exchange (BSE) as well as the
National Stock Exchange (NSE). Moreover, it is a Portfolio Manager registered with SEBI.
Services for depository participants are offered by Reliance Capital Limited. It is an NSDL
and CDSL-accredited Depository Participant.
Reliance Commodities Limited offers corporate and retail clients commodity broking
services. At the moment, it belongs to both NCDX and MCX.
Money Transfer Services (MTS) and Money Changing (FFMC) are offered by Reliance
Money Express.
Financial services are offered by Reliance Financial Limited. It is an NBFC that is listed with
the Indian Reserve Bank.
Reliance Money's Business
The three main categories of Reliance Money's activities are trading—equity, commodities,
derivatives, and offshore investment.
Distribution: Wealth management, IPO, fixed deposit, PMS, life insurance, general insurance,
private banking, and corporate business.

OTC Services:
Precious metal retailing, money exchange, and money transfer
Trading Portal Reliance Money is the first in the nation to offer a prepaid flat fee structure
along with a special trading security token. It offers a unified platform for trading in markets
such as offshore investment, commodities, equity, and derivatives. Investment opportunities
in IPOs, NFOs, and current mutual funds that are periodically issued into the market are also
offered by Reliance Demat accounts. The lowest prices in the Indian market are available for
these vast arrays of services. For the convenience of its customers, the company has built up a
four-tear system that consists of an online portal, a call center, franchises, and kiosks.
At more than 10,000 locations around India, the organization was the first to set up web-
based kiosks for online transactions.

Distribution:
Reliance Money is affiliated with all of the leading Indian companies offering a variety of
financial products. It serves as a one-stop shop for all financial requirements. Through its
distribution channels (online and offline), Reliance Money distributes all IPOs (book building
and fixed priced) throughout India and assists investors in realizing the benefits of IPO
investment by offering comprehensive support. Investors can avoid the hassle of filling out
IPO application forms, writing checks, and waiting in line to submit them by using online
distribution. With reliancemoney.com, they may apply for initial public offerings (IPOs)
online in about one minute with a single click. should the investor choose not to.
Reliance Money would assist with offline IPO applications through a network of branches
and business partners for those who have access to the internet.
Reliance Money is quickly becoming one of the leading mutual fund distribution companies
in India and is the distributor of choice for all AMCs. The research team at Reliance Money
consistently offers investors the best, most impartial, and most objective advice when it
comes to choosing mutual fund schemes that fit their risk tolerance and financial objectives.
Nearly all AMCs' mutual funds are available through Reliance Money. It had 29 AMC
partners as of June 1, 2009, contributing more than $1,500 in funding.
The company offers a wide range of insurance policies that cover the majority of risks,
including general insurance and life insurance. It is completely and exclusively affiliated with
significant private life insurance companies.
There are additional banking services accessible, such as fixed deposit options with major
banks at competitive rates. Through its Wealth Management Services and Portfolio
Management Service (PMS), it provides individualized financial solutions. The company
works hard to provide the greatest returns possible using a careful framework for managing
funds, backed up by in-depth research and a tried-and-true investment approach under
various market circumstances.
Over-the-Counter Services:
Numerous Over the Counter (OTC) services, including money transfers, currency exchanges,
and retail sales of precious metals, are provided by Reliance Money.
Reliance Money has strategic partnerships with banks such as Bank of Rajasthan, Syndicate
Bank, Jammu & Kashmir Bank, Tamilnadu Mercantile Bank Ltd., AP Mahesh Co-Op Urban
Bank, etc. that enable them to offer the Western Union Money Transfer service through their
national branch network.
Reliance Money Business Model
 CHAPTER – 4
DATA ANALYSIS AND INTERPRETATION
 DATA ANALYSIS AND INTERPRETATION

Age distribution of the respondent

Age group of respondent No. of Respondent Percentage
21-30 17 34%
30-45 18 36%
45-60 11 22%
above 60 4 8%
Total 50 100%

No.of Respondent
20
18
16
14
12
10

21-30 30-45 45-60 above 60

No. of Respondent 17 18 11 4
Age

INTERPRETATION: The age range of 21 to 45 years old accounts for about 70% of
respondents; this is thought to be the most active age group. An individual's life changes
significantly at this age. There aren't many obligations at this point in the career's growth
stage, which is the first few years, and there are plenty of finances available. At this age, the
highest level of risk may be assumed, and more time can be allowed for the investment to
increase. People who are in their 30s have more responsibilities for their families, and as they
get older, they are less able to take risks. A larger percentage of this demographic included in
data gathering would provide for a better understanding of how financial planning is carried
out by young india.
 Income distribution of respondent

Income Respondent Percentage

Up to 2,00,000 18 36
2,00,000 - 3,00,000 13 26
3,00,000 - 4,00,000 9 18
4,00,000 - 5,00,000 6 12
above 6,00,000 4 8
Total 50 100

INTERPRETATION: Evaluating our current cash flows, projecting the cash flow needed
in the future, and figuring out the steps to take to get there over time are all part of financial
planning. A number of investing decisions are based on available disposable income. It also
aids in the creation of tax strategies that maximize benefits from a variety of tax exemptions.
Therefore, it is essential to understand a person's income stream. According to the following
graph, the majority of respondents have incomes up to Rs. 2,00,000 per year, which suggests
that they may be just starting out in their careers. There are fewer respondents as the income
bracket rises.
 Person willingness to take risk according to
age
Age group Willingness to take risk Total
High Moderate Low
21-30 8 8 1 17
31-45 7 9 2 18
46-60 2 4 5 11
above 60 1 1 2 4
Total 50

INTERPRETATION :Rather than aptitude for risk-taking, investment decisions are more
heavily weighted toward willingness to accept risk. The readiness to accept risks during
different phases of life is depicted in the following graph. People are greater risk-takers while
they are younger, but this tendency fades as responsibility grows. Even so, each person may
have unique tastes that are at odds with their age. The graph above illustrates how
willingness, as opposed to skill, often determines how much time is invested.
 Investment made by the respondent in various avenues
Avenue Respondent Percentage
Life Insurance 50 100
Fixed Deposit 31 62
Mutual Fund 29 58
Equity Market 14 28
Gold 6 12
PPF 41 82
Post Office Deposit 24 48

50
45
40
35
30
25
20
15
10

Life Fixed Mutual Equity Gold PPF Post Office

Insurance Deposit Fund Market Deposit

INTERPRETATION: This gives a reasonable indication of how different asset classes are
allocated across individuals. Every respondent was found to have a life insurance policy. This
demonstrates that the fundamentals of financial planning were met. The second largest
component was Provided Fund since it gave a tax exemption and was a more stable
investment. Additionally, significant investments were made in post office and bank fixed
deposits. Due to its volatility, equity was not a popular investment for many people; yet, by
investing in huge corporations, many adopted equity as a long-term strategy. The majority of
gold investments were made as jewelry, which is a bad choice for an investment. Very few
people bought gold ETFs and coins/bars.
 Satisfaction of investors on their previous
investment
Satisfaction Respondent Percentage

Yes 15 30
No 28 56
Neutral 7 14
Total 50 100

INTERPRETATION: The majority of respondents expressed dissatisfaction with the

returns on their investments. This indicates that the investment selection was made
incorrectly. A few oftenstated explanations were:
• Lack of understanding of the investment vehicle.
• Financial firm agent misled.
• Initial charge disclosure was incomplete.
• Unplanned investment.
A significant amount of the investments were also made in low-risk, low-return assets. This
contributed significantly to the respondent's dissatisfaction with the current returns.
 Various sources of information/reference for
investor which influence investment decision.
Source of information Respondent
Newspaper, Publications &
Media 31
Professionals 22
Agents/Broker 39
Friends, Peer group, etc. 16

90
80
70
60
Agents& Friends, Peer
News Professionals Broker group, etc.
50
Papers,
40
Publication
30
20
10

High Low
Moderate
Degree of organised
data

INTERPRETATION: Certain information sources are essential when choosing an

investment. The information source is displayed on the graph, which is arranged based on
authentication. The maximum authentication is shown on the X axis at the extreme right, and
it decreases as we travel to the right. Making the appropriate investing decisions is heavily
dependent on the information's authenticity. We discover that the majority of respondents
made their investing decisions based on information from brokers and agents of various
financial companies. Newspapers, magazines, and other media are the next main sources of
information; they are regarded as extremely reliable sources of information. Because different
professionals charge for their services, not many people choose to enlist the assistance of
professionals when making investing decisions.
 Investment Objectives of Individuals
Investment Objective Respondent

Principle Safety 9

Maintain Standard of living 17

Meet future expenses 18

Safeguard against contingencies

6
Total 50

INTERPRETATION: Investment objective to a greater extend determine the investment

tenure and the avenue. Different investment objectives have different investment
avenues to meet them. By determining the objective we can easily determine the
investment vehicle for individuals. The persons looking for principal safety can investment
in Post office schemes, government securities, banks and PPF. Investment in Equity and
Mutual funds can give greater returns which can beat high inflation rate. Term deposits
are useful when money is needed after a fixed period of time.
 Respondent frequency of investment
Preferred Frequency of Respondent Percentage
Investment
Monthly 21 42
Quarterly 4 8
Half Yearly 5 10
Annually 11 22
Single/One time 9 18
Total 50 100

INTERPRETATION: Because of the Systematic Investment Plan, many investors choose

to make regular monthly investments. Rupee cost averaging advantages small denomination
investments made on a monthly basis. The majority of monthly investments were made in
mutual funds. Unexpectedly, a lot of people choose to invest in single or one-time
installments without realizing the danger involved. A solid alternative for a one-time
investment is limited to tangible assets such as gold and real estate.
 Financial Literacy of respondent
Financial Literacy Respondent
Very Good 17
Good 12
Average 15
Poor 6
Total 50

INTERPRETATION: Finding out a respondent's level of financial literacy is intended to

help determine how well they can make independent investing decisions. Many respondents
claimed to have solid understanding of investment options, but their investment portfolios
showed otherwise. It follows that a lot of people are reluctant to admit when they don't have
the necessary information. This keeps individuals in the dark and could cause them to make
difficult-to-correct poor investing selections.
 Do respondent have enough time to manage their investment affairs

Time Available Respondents Percentage

Yes 18 36

No 32 64

It illustrates how few people have the time to prepare their finances. In these situations, it is
typically seen that the decision to invest was impacted by those in the vicinity.
 CHAPTER -5
FINDINGS, SUGGESTIONS & CONCLUSION
 FINDINGS OF THE STUDY

• The majority of savings are allocated to life insurance and pension funds.
• It has recently been discovered that traditional savings tools, such as tax breaks or
higher interest rates, are ineffective at boosting private saving rates over the long
term.
• Additionally, it was discovered that India has one of the lowest savings responses to
changes in interest rates among developing nations.
 SUGGESTIONS OF THE STUDY

Taking all of this into consideration, the following can be said to be the essential cornerstones
of effective investing:

• Save regularly; invest frequently.

• Diversify.
• Use tax shelters.
• Monitor investments on a regular basis, making adjustments to plans as needed.

Distributors of financial products, such as Reliance Money, have a bigger potential to

educate people about financial planning because more people need to know about it.
Businesses can provide workshops and seminars where they can educate the public
and, in exchange, obtain potential customers from the attendees. In this sense, the
corporation and the audience can both gain.
 CONCLUSION

Of course! Here is a succinct conclusion drawn from the body of research:

Financial Planning and Investing:

• Both firms and individual investors need to engage in financial planning.

• A key component of sound financial planning is financial literacy.
• A person's knowledge, income, education, age, risk tolerance, and expected
return all have an impact on their investment behavior.
• Effective financial planning takes both long- and short-term objectives into
account.

Financial Planning Elements:

• The intention to adopt and form real financial planning behavior is directly
impacted by financial contentment (attitude), financial socialization (subjective
standards), and financial knowledge.
• This behavior can show up in a number of ways, such as with regard to retirement
planning, cash flow, taxes, investments, risk, and estates.
 BIBILOGRAPHY

Websites

http://www.reliancecapital.co.in/

http://www.fpsbindia.org/

http://profit.ndtv.com/PersonalFinance/Insurance.aspx

http://profit.ndtv.com/2008/01/16190747/Compare-Different-Insurance-Pl.html

http://business.rediff.com/report/2009/may/15/perfin-types-of-life-insurance.htm

http://www.mywealthguide.com/persnl.htm

http://www.kingswoodconsultants.com/LifetimeFinancialPlanning.html

http://www.businessgyan.com

http://www.itrust.in/financial-planning/article.action/What-Is-Financial-Planning-India

http://www.dnaindia.com/money/report_union-budget-2009-10-highlights_1271503

http://finance.mapsofworld.com/savings/india/household.html