360 Degree Financial Planning (Bajaj Capital Ltd)

Summer Internship 2011 PGDM 2010-12 Summer Internship Project Report on “ 360° FINANCIAL PLANNING ” Undertaken at

BAJAJ CAPITAL LTD. LTD. NOIDA, SECTOR - 29

Prepared By:

ASIN GANGULY  PGDM/2010-12/21 Company Guide

Anjni KumarTiwari (Asst. Financial Planner)

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Faculty Guide

Mr. SUMIT RASTOGI

CONTENTS: 2|Page

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PREFACE DECLARATION ACKNOWLEDGEMENT OFFER LETTER INDUSTRY OVERVIEW COMPANY PROFILE INTRODUCTION BUSINESS SWOT ANALYSIS AIMS MISSION & VISION LOGO 360° FINANCIAL PLANNING WHY, WHO, HOW COMPONENTS FINANCIAL PLANNING TOOLS FINANCIAL PLANNING REGISTRATION FORM A 360° FINANCIAL PLAN OUR ADVISORY PROCESS ANALYSIS OF THE PLAN & SUGGESTIONS RECOMENDATIONS, FAQ’s, OBJECTIVE CONCLUSION BIBLIOGRAPHY  

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PREFACE MBA is a stepping-stone to the management carrier and to develop good manager it is necessary that the theoretical must b e sup plemente d with expos ure to the real environment. Theoretical knowledge just provides the base and it’s not sufficient to produce a good manager that’s why prac practi tica call know knowle ledg dge e is need needed ed.. Ther Theref efor ore e the the rese resear arch ch 3|Page

product is an essential requirement for the student of MBA.  This research project not only helps the student to utilize his skills properly properly learn field realities but also provides a chance to the the orga organi niza zati tion on to find find out out tale talent nt amon among g the the buddin budding g managers in the very beginning. In accordance with the requirement of MBA course I have summer training project DEGREE REE FIN FINANC ANCIAL IAL PLA PLANNI NNING NG”. The on the topic “ 360 DEG main objective of the research research project project was to study all the instruments of the financial planning and make a detailed study of it. In the growing global competition, business has taken a new shape in the World. Today’s Manager has to understand the unce uncert rtai aint nty y of busi busine ness ss envi envirronme onment nt to cope cope with with the the situation. Dissertation Dissertation for each and every Student of PGDM is an essential part of completion at the end of 1st year of the course course.. The prime prime object objectiv ive e of this s u m m e r t r a i n i n g t o fa m i l i a r w i t h re a l l if e b u s i n e s s environment and apply the theoretical concept of business into reality reality and and know how much theory theory is applicable applicable in day to day business activity. It also sharpens their knowledge, hone hones s thei theirr anal analyt ytic ical al and and othe otherr busi busine ness ss acum acumen en and and develo develops ps better better appre apprecia ciati tion on of the the practi practical cal probl problem ems s of  business, especially from the management point of view. Mor Moreove eoverr the the exper xperie ienc nce e acqu acquir ired ed by st stud uden entt help helps s to decide the future Professional career. career.

DECLARATION I hereby declare that the following documented project report titled "360 degree financial planning" is an authentic work done by me.  The study was undertaken as a part of the course curriculum of PGDM, Full time Program in INTEGRATED INSTITUTE OF LEARNING & MANAGEMENT - COLLEGE OF MANAGEMENT STUDIES

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(IILM-CMS) I hereby declare that the study has not been submitted to any other institute/organization institute/organization for the reference.

ASIN GANGULY  PGDM 2010-12/21 IILM - CMS

ACKNOWLEDGEMENT A Successful project is fruitful culmination of efforts of many people, some directly involved, and others who have quietly encouraged and extended their support, while being in the background. I take this opportunity to extend my deep sense of gratitude and heartfelt thanks to all those who have helped us directly or indirectly during the course of my project. My colleagues and associates at IILM - CMS continue to have important impact on my thinking. I am in debt to my Mr.. VIJENDRA V IJENDRA SHARMA (Branch Head) Head) & corporate guides Mr Mr. ANJNI KUMAR TIWARI (Asst. Financial Planner) Planner) of “Bajaj Capital” Noida, Sec - 29 branch. This dissertation could not have been written without Mr. SUMIT RASTOGI (Faculty Head) Head) Who not only served as my supervisor but also encouraged and challenged cha llenged me throughout my academic program who patiently guided me through the dissertation 5|Page

process, never accepting less than my best efforts. I am also appreciative of all that I have learned from working with industry executives who have generously shared their insight and experiences.

I would like to give thanks to all the staff of “Bajaj capital” Noida, Sec – 29 branch for their valuable and sincere cooperation and plying all the database of “Bajaj Capital”, Noida, Sec – 29 branch. I am thankful to my parents, & my entire family who are always my source of brainchild & unplumbed exertion towards the Journey of my life.

At last but not the least I am grateful to Omnipotent God for his manifold blessing in this endeavor of mine.

WEALTH MANAGEMENT WEALTH MANAGEMENT is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services. High Net worth Individuals (HNWIs), small business owners and families who desire the assistance of a credentialed financial advisory specialist call upon wealth

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managers to coordinate retail banking, estate planning, legal resources, tax professionals and investment management. Wealth managers can be an independent Certified Financial Financial Planner, MBAs, Chartered Strategic Wealth Professional, CFA Charter holders or any credentialed professional money manager who works to enhance the income, growth and tax favored treatment of long-term investors. Wealth management is often referred referred to as a high-level form of private banking for the especially affluent. One must already have accumulated a significant amount of wealth for wealth management strategies to be effective.

BAJAJ CAPITAL Bajaj Capital is one of India’s In dia’s leading Financial Services companies offering Free Advice on Investments, Insurance,  Tax Saving, Retirement Planning, Financial Planning, Children’s Future Planning and other services. We also have a wide range of products and services for Corporate, High Net worth Individuals, and NRIs… all under one roof. roof. At Bajaj Capital, we believe in dreaming big. Dreams inspire us to excel. They ignite hope and kindle in us the passion to stretch our limits. We We also believe that th at nothing can or should stop us from realizing our dreams… and financial constraints should be the last thing to stop anyone. 7|Page

Wide range of services We offer a comprehensive range of services including financial planning and investment advice, and the entire gamut of  financial instruments and investment products of almost all major companies, both public and private. In addition, we also provide investment assistance by helping you complete all the formalities, and help you keep regular track of your investments. These services and products are delivered through our network of 134 Bajaj Capital Investment Centers located all over the country. We are also a SEBI-approved Category I Merchant Banker. We raise resources for over 1,000 top institutions and corporate houses every year, and offer specialized services to Non-Resident Indian (NRIs) and High Net worth Clients. What you can expect from us  Sound, research-based advice Unbiased, independent and need-based advice Prompt, Prompt, courteous service Honest, ethical dealings Accessibility    

KeyPersonnel:-

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Mr. Mr. Mr. Mr.

K.K.Bajaj (CHAIRMAN) Rajiv Deep Bajaj (Vice Chairman & MD) Sanjiv Bajaj (Joint MD) Anil Chopra (CEO & Director)

BUSINESS : Bajaj ajaj Capi Capita tall Lt Ltd d is enga engage ged d in the the busi busine ness ss of Mer Mercha chant Bank Bankin ing, g, Resou esourrce Mobi Mobili lisa sati tion on,, Dist Distri ribu buti tion on of Fin inan anci cial al produ products, cts, Stock Stock Broki Broking, ng, Money Money Mark Market Bookin Booking, g, Invest Investmen mentt Advisory and Financial Planning. It offers investment, insurance, tax saving, retirement, financial cash flow, and children’s future planning services. s ervices.  The company also distributes various financial and investment prod product ucts, s, such such as mutu mutual al funds funds,, life life and and gene genera rall in insu sura rance nce,, bond bonds, s, post post offi office ce sc sche heme mes, s, fix fixed depo deposi sits ts,, in init itia iall publ public ic offerings, and real estate property investments. In addition, it provi provides des invest investmen mentt banking banking services services for privat private e and public public 8|Page

sector enterprises. The company operates through a network of  investment centres. All in all a 360 degree financial planning. p lanning.

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individual investors corporate houses institutional investors non-resident Indians high net worth clients in India

AWARDS & RECOGNITION : o

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Bajaj Capital won Smart Workplaces Awards 2008 in the financ financial ial servic services es vertic vertical; al; The Smart Smart Workpla orkplace ce Award ward was instituted by The Economic Times in association with IT majors Acer and Intel, to recognise smart offices. Bajaj Capital, one of India’s leading Investment Advisory and Financial Planning companies, has won the award for the ‘Best Performing National Financial Advisor – Retail’ at the CNBC TV18 Financial Advisor Awards 08-09

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SWOT ANALYSIS STRENGTHS : • •

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Wide range of products & services 46yrs 46yrs of exper experien ience ce as Investm Investment ent Ad Advis visors ors & Financia inanciall Planners More than 8 lac satisfied clients all over India Country wide network of 134 branches Over 12K NRI clients across the globe Personalised wealth management advice 24x7 online accessibility through www.bajajcapital.com www.bajajcapital.com Stro Strong ng team team of qual qualif ifie ied d & exper experie ience nced d prof profess essio iona nals ls incl in clud udin ing g CA’s CA’s,, MBA’ MBA’s, s, MBE’ MBE’s, s, CFP’ CFP’s, s, CS’s CS’s,, Insu Insura ranc nce e experts & others SEBI approved Category 1 Merchant Bankers Bankers

WEAKNESSESS WEAKNESSESS : •

Due to market competition & personalised treatment to customers the cost to company rises up well .

OPPORTUNITIES : • •

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Add diversified products to the product line Merg Merger ers s or coll collab abor orat atio ions ns with with sof softwar tware e compa compani nies es to build a better software for more diversified Porfolio for the customers. Acqui Ac quisi siti tion on with with smal smalll advi adviso sory ry compa compani nies es to in incr crea ease se market share

THREATS : • • •

Volatility of the market. Changes in the govt. policies. Under performance of the Fund Manager of the company. company.

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OUR AIMS •

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 To  To serve our clients with utmost dedication and integrity so that we exceed their expectations and build enduring relationships.  To  To offer unparalleled quality of service through complete knowledge of products, constant innovation in services and use of the latest technology.  To  To always give honest and unbiased financial advice and earn our client’s everlasting trust.  To  To serve the community by educating individuals on the merits of Financial Financial Planning and in turn help shape a financially strong society.  To create value for all stake holders by ensuring profitable growth.  To  To build an amicable environment that accords respect to every individual and permits p ermits their personal growth.  To utilize the power of teamwork to function as a family and build a seamless organization.

MISSION STATEMENT Bajaj Capital aims to be the most useful, reliable and efficient provider of Financial Financial Services. It is our o ur continuous endeavor to be a trustworthy advisor to our clients, helping them achieve their financial goals.

OUR VISION   To be the most most prefe preferr rred ed financ financial ial planni planning ng and investm investment ent advis dvisor ory y com company pany in Indi India a by prov provid idiing cons consum umer ers s with ith informed choices of lasting value, create wealth for them to make their tomorrow better than today.

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OUR LOGO depicts Lord Ganesha who is the source of all our values and ethics in business. •

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 The large ears of Lord Ganesha remind us to hear more. We listen carefully to our clients to understand their needs.  The weight of the trunk on the mouth symbolises silence. silenc e. We work silently, without blowing our own trumpet.  The long trunk symbolises continuous exploration. We We explore all avenues to provide the best investment opportunities for our clients.  The heavy posture of Ganesha symbolises stability. We help our clients to attain financial stability through wise investments. Lord Ganesha is known as the remover of obstacles and bestower of prosperity. We emulate His example and try our best to help our clients attain prosperity by proper financial planning. Our logo has a yellow background. Yellow Yellow is the colour of  gold, which symbolises s ymbolises wealth. According to Vedic lore, it is also the colour associated with Brihaspati, the guru and counsellor of the Gods. We offer our clients sage counsel to make their wealth grow.  The letters are in red. Red is the colour rajas – symbolising power and incessant activity. activity. It symbolises our aggressive quest for your well-being and happiness.  The white streak represents the trunk of Lord Ganesha. White is the colour of satvaguna, and implies our selfless commitment to your life-long happiness

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360° Financial Planning 360° Financial Financial Planning is a unique uniqu e software-based simulation that takes a holistic view of your life-long financial needs and charts a personalized investment strategy to help you meet them. Broadly, it involves: Identifying your current financial status Listing and prioritizing your goals Creating a sound investment plan to achieve them Monitoring the plan to facilitate swift corrective corrective action •

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360°Financial Planning is based 360°Financial bas ed on the premise that every individual has certain basic financial needs that are expressed at various stages of life (getting married, buying assets like homes, vehicles, or providing for your child's education and wedding and retiring finally ). With the help of 360° Financial Financial Planning, you can prepare yourself well in time for all these goals.

Why do you need Bajaj Capital's 360° Financial Planning?  You may have many dreams, needs and desires. For example, you could be dreaming of: of: Owning a new car Buying a dream house Providing Provi ding your children with the best education Planning a grand wedding for your children Having a great g reat time after your retirement But in today's world of skyrocketing skyrocketing costs and increasing inflation, how many of these dreams can you hope to turn into reality? By planning well, you can utilize your limited resources •

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to the fullest. 360° Financial Planning helps you see the big picture and invest for specific long-term and short-term goals well in time.

Who needs 360° Financial Planning? Everyone does! Because everyone has a right to dream. And realizing dreams dreams is easier when you work to a plan that's: th at's: Reliable Realistic Proven Bajaj Capital's 360° Financial Planning Programme could make a difference to all those who wish to lead a worry-fr worry-free, ee, financially secure life. •

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Here’ is how Financial Plans are prepared:  The process begins with identifying your needs with the help of the Need Analysis Form •

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Our Financial Financial Planners then use us e the especially-created 360° Financial Financial Planning softwar s oftware e to generate g enerate a personalized Snapshot.  The Snapshot gives you a graphic account of all your financial requirements, at every stage of your future life. Based on the Snapshot, our experts work out an investment strategy. Once implemented, our experts keep regular track of your investments A Financial Financial Planning session takes just 15 minutes but gives you benefits of a lifetime. •

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Briefly, 360° Financial Planning comprises: Investment Planning: To make your wealth grow •

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Cash Flow Planning: To provide for assets and meet the periodic cash requirements Tax Planning: Pl anning:  To save on taxes and increase your income Insurance Planning: To protect yourself, your family and your assets Children's Future Planning: To give your children a financially secure future Retirement Planning: Because retirement is a time to relax, not to get worried

INVESTMENT PLANNING Everyone needs to save s ave for a rainy day. day. Once you have saved enough to take care of emergencies, you should start thinking about investing and to make your money grow. grow. We can help you plan your investments so that you can reap adequate benefits and achieve your financial goals. Bajaj Capital’s Investment Planning Service includes: Risk Profiling Asset Allocation and Portfoli Portfolio o Construction Creation and Accumulation of Wealth through Systematic Investment Plans (SIP) Regular review of progress and Portf Portfolio olio Rebalancing   

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Essentially, Investment Planning involves identifying your financial goals throughout your life, and prioritizing them. Investment Planning is important because it helps you to derive the maximum benefit from your investments.  Your  Y our success as an investor depends upon your ability to choose the right investment options. options. This, in turn, depends on your requirements, needs and goals. For most investors, however, the three prime criteria of evaluating any investment option are liquidity, safety and an d return. Investment Planning also helps you to decide upon the right investment strategy. strategy. Besides your individual requirement requirement,, your investment strategy would also depend upon your age,

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personal circumstances and your risk appetite. These aspects are typically taken taken care of during investment in vestment planning. Investment Planning also helps you to strike a balance between risk and returns. returns. By prudent planning, it is possible to arrive at an optimal mix of risk and returns that suits your particular needs and requirements.

Cash Flow Planning In simple terms, cash flow refers to the inflow and outflow of  money.. It is a record of your income and expenses. Though this money sound simple, very few people p eople actually take the time out to find out what comes in and what goes out of their hands each month. Cash flow planning refers to the process of identifying the major expenditures in future (both short-term and long-term) and making planned investments so that the required amount is accumulated within the required time frame. Cash flow planning is the first thing that should be done prior to starting an investment exercise, because only then will you be b e in a position to know how your finances look like, and what is it that you can invest without causing a strain on yourself yourself.. It will also enable you to understand if a particular investment matches with your flow requirement. So does it involve looking at future cash flows only? Not really.  You  Y ou should always do a cash flow for yourself as on date, and a nd you will realize that you could have a potential savings amount within each month of your working life. This is the amount that you should look at saving for meeting your financial goals. The best way of doing this is to have a personal p ersonal budget.

Why is cash flow planning important? Cash flow plans are commonly used by business houses. Without a viable cash flow plan, a company could easily spend more than its revenue, putting it in peril. pe ril. Unfortunately, most of  us do not realize that a cash flow plan is as important for people like us as well. The principles that apply to corporate finance and to our personal lives are largely the same.  There has never been a bigger need than today for families and individuals to work out cash flow plans. Without proper cash flow planning one could easily get caught in the debt trap. Of  course, it goes without saying that creating a plan is not 18 | P a g e

enough. One also needs to implement the plan, p lan, besides bringing about a change in the spending habits. Cash flow plan brings you face-to-face with what you should ideally be saving, and investing in a systematic and regular manner, and what would it mean to you to withdraw from your portfolio after a couple of years. It brings down in numbers what your financial future has in store for you, and gives a crystal clear view (as much as is possible with inflation and the interest rate scenario).

 Tax  T ax Pla Planni nning ng Proper tax planning is a basic duty of every person which should be carried out religiously. Basically, there are three steps in tax planning exer exercise. cise. These three steps in tax planning are: Calculate your taxable income under all heads i.e., Income from Salary, House Property, Business & Profession, Capital Gains and Income from Other Sources. Calculate tax payable on gross taxable income for whole financial year (i.e., From 1st April to 31st March) After Af ter you have calculated the amount of your tax liability. liability.  You have two options to choose from: •

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1. Pay your tax (No tax planning required) 2. Minimize your tax through prudent tax planning. Most people rightly choose Option 'B'. Here you have to compare the advantages of several tax saving schemes and depending upon your age, social liabilities, tax slabs and personal preferences, decide upon a right mix of investments, which shall reduce your tax liability to zero or the minimum possible. Every citizen has a fundamental right to avail all the tax incentives provided by the Government. Therefore, through prudent tax planning not only income-tax liability is reduced but also a better future is ensured due to compulsory savings in highly safe Government schemes. We sincerely advise all our readers and clients to plan their investments in such a way,

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that the post-tax yield is the highest possible keeping in view the basic parameters of safety and liquidity liquidity..

Insurance Planning “Insurance is not for the person who passes away, away, it for those who survive" goes a popular saying that explains the importance of Insurance Planning. It is extremely important that every person, especially the breadwinner, covers the risks to his life, so that his family's quality of life does not undergo any drastic change in case of  an unfortunate eventuality. It is extremely important that every person, especially the breadwinner, covers the risks to his life, so that his family's quality of life does not undergo any drastic change in case of an unfortunate eventuality e ventuality.. Insurance Planning is concerned with ensuring adequate coverage against insurable risks. Calculating the right level of risk cover is a specialized activity, requiring considerable expertise. Proper Insurance Planning can help you look at the possibility of  getting a wider coverage for the same amount of premium or the same level of coverage for the same amount of premium or the same level of coverage for a reduced premium. Hence, the need for proper insurance planning. Insurance, simply put, is the cover for the risks that we run during our lives. Insurance enables us to live our lives to the fullest, without worrying about the financial impact of events that could hamper it. In other words, insurance protects us from the contingencies contingen cies that could affect us. So what are the risks that we run? To To name a few - the risk on our lives that is, the worries of replacement of  the incomes that we contribute to the running of the household), the risks of medical contingencies (since they have the capability of depleting our wealth considerably) and risks to assets (since the replacement of these can have tremendous financial implications). If we can imagine a situation where our goals are disturbed by acts beyond our control, we can realize the relevance of insurance in our lives. Insurance Planning takes into account the risks that surround you and then provides an adequate coverage against those risks. There is no risk not worth insuring yourself against, and insurance should first and foremost be looked as a measure to guard against

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risks - the risk of your dreams going awry due to events beyond your control

Children's Future Planning Like every parent, you too must be overjoyed to watch your child grow. grow. All parents want to give the best possible upbringing to their children. This includes good education and security, in case of any eventuality eventuality.. Soon, your little bundle of   joy will grow up, and it will be time to provide for his or her higher education and wedding. The purpose of Children's Future Planning is to create a corpus for foreseeable expenditures such as those on higher education and wedding, and to provide for an adequate security cover during their growing years. Children's Future Future Planning acquires added importance because children's education and wedding are high priority life goals, which can neither be postponed nor can there be a compromise on the amount. Good education has always been bee n the passport to a secure future. Today, career opportunities have grown manifold, and there are many professional course that your child can aspire for. for. However, costs of higher education have also increased exponentially. Like most parents, you might be saving regularly to ensure a safe tomorrow tomorrow for your child. However, savings alone is no longer enough. For ensuring adequate funding of your child's education, you as a parent need to do two things: Invest appropriate amount systematically and at regular intervals Provide for a financial security blanket to cover any eventuality It is never too early to start saving and investing for your child's future. Especially in today's context. For example, the cost of a professional degree today is approxi approximately mately Rs 2.5 lakhs. If your child is one-year one-year-old -old today, after 17 years when he/she goes to college, you may require a sum of Rs 6.3 lakhs, assuming an annual rate of inflation of 6%.  There are many products which your Financial Financial Planner can use to achieve the above objectives. For example, he could suggest a Children's Future Future Plan offered by any good insurance company, to build a corpus for your child's higher education, 

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and provide for a security cover in the event of the parent's unfortunate demise. Children's plans are also available under unit-linked unit-link ed option. Being unit-linked, they offer access to investments in all kinds of asset classes - equity, debt and cash.

Retirement Planning Some like it. Some don’t. But retirement is a reality for every working person. Most young people today think of retirement as a distant reality. However, it is important to plan for your post-retirement life if you wish to retain your financial independence and maintain a comfortable standard of living even when you are no longer earning. This is extremely important, important, because, unlik un like e developed nations, India does not have a social security net. Retirement Ret irement Planning acquires added importance because b ecause of the fact that though longevity has increased, the number of  working years haven’t.

Our Retirement Planning Service involves: computing that amount that would be required postretirement. retir ement. This is done after taking inflation and time value of  money into account. Building your Retirement Retirement Corpus using Systematic Investment Plans (SIPs) and other long-term growth orient products Ensuring adequate post-retir post-retirement ement income through safe investments. The asset allocation and selection of investment vehicles keep changing as your risk-bearing capacity diminishes. 

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PLAN FOR A WORRY FREE RETIREMENT In simple words, retirement planning means making sure you will have enough money to live on after retiring from work. Retirement Ret irement should be the best b est period of your life, when you can literally sit back and relax or enjoy your life by reaping benefits of what you earn in so many years of hard work. But it is easier said than done. To achieve a hassle-free retired life, you need to make prudent investment decisions during your working life, thus putting your hard-earned money to work for you in future.

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Financiall Planning Financia Planning Tools Crorepati Crorepati Planner

HOW TO BECOME A “CROREP “CRO REPA ATI” EASIL EASILY  Y 

* What is your goal amount?

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Systematic Investment Planner SEE HOW YOUR MONEY GROWS * How much amount can you save on a monthly basis?

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Child's Education Planner GET DESIRED AMOUNT FOR YOUR CHILD'S EDUCA EDUCATION TION How old is you child today?* today?*

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At what age will your child’s go for professional education?* education?*

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Expected duration of  professional professi onal education? education?* *

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Amount required for professional professi onal education per year in today’s term?* term?*

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Inflation rate

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Disclaimer:  The inflation rate is taken as 6% in above made calculations assuming that Disclaimer: The you are planning the investments for long term. The inflation rate may fluctuate from time to time depending on the economic scenario of the country. country. However if we average the inflation rate over long period, it is expected to be in the range of 5-6%.

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Retirement Planner GET DESIRED AMOUNT OF PENSION AFTER RETIREMENT What are the expected monthly expenses after retirement in today's term?* term?*  Your  Y our current c urrent age? age ?*

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At what age would you like to retire?* retire? *

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Inflation rate* rate*

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Disclaimer:  The inflation rate is taken as 6% in above made calculations assuming that Disclaimer: The you are planning the investments for long term. The inflation rate may fluctuate from time to time depending on the economic scenario of the country. country. However if we average the inflation rate over long period, it is expected to be in the range of 5-6%.

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Human Life Value Calculator HUMAN LIFE VALUE CALCULATOR Age of Dependent (Spouse)* (Spouse)*

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Monthly Family Expenses* Expenses*

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Life Expectancy of the Dependent* Dependent *

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 Years  Y ears of Life Left (Dependent)* (Dependent) *

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Expected Portfolio Return* Return*

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Expected Inflation Rate* Rate*

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Name* Name *

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Disclaimer: Insurance products are sourced through Bajaj Capital Insurance Broking Ltd. 97, Bajaj House, Nehru Place, New Delhi - 110019. Bajaj Capital Insurance Broking Ltd. (BCIB) (BC IB) is an IRD IRDA A licens licensed ed 'Com 'Composit posite e Insu Insurance rance Broker" Broker" beari bearing ng licens license e numb number er CB 042/ 04 2/02 02 re rende nderin ring g adv advice ice on var variou ious s ins insura urance nce cov covers ers,, sui suita table ble to all kind kinds s of nee needs. ds. Advice on similar insurance product(s), other than mentioned above, in offer from various insurer(s) insur er(s) is also offered offered by BCI BCIB. B. Pr Prospec ospective tive client(s) client(s) are advised to go thro through ugh all comparable products in offer, before taking an investment decision.

* Fields marked are mandatory

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Future Value Calculator Future Value Calculator Amount (Rs.)* (Rs.)*

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Rate (%)* (%)*

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 Term  T erm (Yrs (Yrs))*

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Name* Name *

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Employee Provident Fund Calculator Employee Provident Fund (EPF) Calculator Age ( Yrs)* Yrs)*

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Retirement Age ( Yrs)* Yrs)*

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Current Balance (Rs.)* (Rs.)*

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Gratuity Calculator Gratuity Calculator No. of Years In Current Service (Yrs)* (Yrs)*

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FINANCIAL PLANNING PLANNING REGISTR REGISTRA ATION

FORM

A 360° FINANCIAL PLAN

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ADVISORY PROCESS Investmen Invest mentt cons consult ultanc ancy y is a com comple plex x busi business ness,, re requir quiring ing an intim int imate ate unde underst rstandi anding ng of seve several ral fin financ ancial ial para paramet meters ers and huma hu man n fa fact ctor ors, s, in incl cludi uding ng th the e cl clie ient nt's 's req equi uire reme ments nts an and d th the e mar ark ket su subt btle leti ties es.. Be Bein ing g a pr proc oces esss-dr driive ven n or orga gani niz zat atio ion: n: We ha have ve pe perf rfec ecte ted d a fo four ur-s -ste tep p ad advi viso sory ry pr proc oced edur ure, e, which includes:

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Need Need Analysi Analysis: s: Ou Ourr exp xper erts ts an anal alyz yze e an and d as asse sess ss yo your ur investment objectives and your comfort level with various asset classes, such as Equity, Debt, Realty etc.. Asset Allocation: We determine an optimal mix of asset classes to meet your financial goals. Portfolio Portfolio Constructi Construction: on: Base sed d on the as ass set mix, we build a customized, diversified portfolio of insurance and investment products. Ongoing Ongoing Review: Review: Onc Once e im imple plemen mented, ted, we mon monito itorr you yourr portfolio regularly. This allows our advisors to recommend adjustments if required, and these are executed once we receive your go-ahead.

ANAL AN ALYS YSIS IS & INTE IN TERP RPRE RET TATION TION As per the advisory process & the financial plan the suggestions & interpretations I would prefer with guidance of  my organization mentor is that: Mr. Mr. Tiwari is carrying low cash but is having moderate assets. He has limited liabilities & his savings are good as compared in his current cash flow analysis. 32 | P a g e

 The person is already insured & is also bearing mediclaims. So henceforth to cater all his goals i shall suggest sugg est him to invest on mutual funds, with low liability he has the advantage to bear risks so hence i shall suggest him to go for growth options on MF’s. With the capacity to bear marginal risks i shall also suggest him to go for systematic investment plan (SIP) on volatile funds i.e. mostly sectoral funds& small & midcap funds. Whi hile le doi doing so he can can also also keep eep hi his s mone money y a bi bitt safe safe by investing in funds which keep a 50%-50% equity debt ratio so that that if the the mark market et fall falls s he sh shal alll have have the the fund fund bala balanc nce e to support the sudden fluctuations. He can also keep a bit in gold funds as gold prices are well on a hike.  The AMC’s I shall vouch upon are:BLUE-CHIP BLUE-CHIP FUNDS: •

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DSP Blackrock Top 100 Equity Fund HDFC Top 200 Fund ICICI Prudential Focused Equity Plan ICICI Prudential Growth Plan ICICI Prudential Equity Opportunity

MID-CAP FUNDS: •

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DSP Blackrock Micro Cap Fund Canara Robeco Emerging Equities

SMALL-CAP FUNDS: •

DSP Blackrock Small & Midcap

SECTORAL SECTORAL FUNDS:

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Franklin FMCG Fund Reliance Pharma Fund

RECOMENDATIONS: INVESTMENT PLANNING TIPS •

Set a Goal: What you want to achieve and when-deciding this is important. So set financial goals to bring purpose and clarity to the investment process.

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Research Regularly: Next step is to know what kind of  investments will help you achieve the goal. You can do it your yoursel selff or tak take the the help help of a prof profess essio ional nal in inve vest stme ment nt advisor. Invest Early: Once you know where to invest; do it as soon soon as possi possibl ble. e. The earl earlie ierr you you begin begin,, the the more more you you benefit from the power of compounding. Budget Budget Planni Planning: ng: A mus ustt for all all prud pruden entt inves nvesto tors rs.. Makes you live within your means and give a clear picture of your finances. Avoid Debts: Avoid unnecessary borrowings. Treat extra expenses as a loan that you must repay yourself. Make saving a habit. Small changes in your lifestyle can result in major changes in your saving corpus. Review and Reinvest: Be alert and open to changes. Markets change, your needs change, investment inst in stru rume ment nts s chan change ge.. Be awar aware e and and mak make it a poin pointt to revie eview w your your in inve vest stme ment nts s from from time time to time time to crea create te maximum wealth for yourself.

RETIREMENT PLANNING TIPS People have different plans for retired life. For example you may think of retirement as a time to relax, to laze around, to spend more time with family, travel or write a masterpiece. Attaining financial independence after retirement will not be

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  just a dream if the following steps are followed with steady discipline, perseverance and if smart investment strategies. •

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Start saving early: Nobody takes takes retire retirement ment seriously seriously.. But the fact is that even a small sum of money saved regula egularl rly y and and in inve vest sted ed regula egularl rly y mak makes a bi big g amou amount nt whic which h will will come come in very very hand handy y afte afterr retir etirem emen ent. t. One One should not believe that after retirement, one can place all savings into income generating investment and spend rest of life in happiness. If you don't plan early, you could end up eroding your principal savings in order to supplement your monthly income. Retire Retiremen mentt should should be your your top priori priority: ty: Retirement should be kept as a top priority because if one does not keep it at the top one might end up depending on one's children, which probably no one would relish. Create a Retirement Plan: Develop a plan for saving based on your requirements at the time of retirement. The goals you keep for saving depend on your lifestyle but you will will need need at least east abou aboutt 66 66% % of your your prepre-rreti etiremen ementt income income to maintain your standard of living when you stop working. Understand your Pension Plan: If your employer offers pensi pension on pl plan, an, unde underst rstan and d care carefu full lly y your your benef benefit it leve level, l, fina financ ncia iall st stab abil ilit ity y of pl plan an and and the the vest vestin ing g peri period od.. Use Use retirement plans even if you already have enough money. With retirement plans your money grows in a tax efficient manner and compounding interest over time makes it one of the best investment options. Bala Balanc nce e your your risk risk to toler leran ance ce and and your your inve invest stme ment nt strategy: Eval Evalua uate te your your risk risk prof profil ile e and and then then bala balanc nce e your investment strategy to invest in various avenues to get the most out of your retirement money keeping your risk profile unhampered.

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Diversify your investments & allocate your assets carefully: Depen Dependi ding ng on your your work work prof profil ile e di divi vide de your your savi saving ngs s in into to equi equity ty,, bond bonds, s, Mutu Mutual al Funds unds,, and and othe otherr investment avenues. Don't invest too heavily in one sector or one company, since the risk associated with putting all your eggs in one basket is indeed very high. Save Save and Inves nvestt Re Regu gula lar rly: ly: Savi Saving ng and and inves nvesti ting ng regularly makes a big difference at the time of retirement. Investing at regular intervals builds your retirement fund over time and helps you to minimize risk and gives a tension tension free free reti retire remen ment-a t-a time time to pursue pursue your your hobbies hobbies,, fulfill your dreams and passions.

 Tax Planning Tips Tax Planning - Introduction

First, let's start by assessing your income tax liability. Once you have identified your tax liability, you can then create the right plan. Please note that this applies only to salaried individuals. Following rates are applicable for computing tax liability for the curr current ent Fin inanc ancia iall Year ear i.e. i.e. Ap Apri rill 1, 20 2009 09 to Marc March h 31 31,, 20 2010 10 (Assessment year 2010-2011). Our endeavour is to present the comp comple lex x prov provis isio ions ns of the the Inco Income me Tax Ac Actt in a simp simpli lifi fied ed manner, which could be understood by a common investor as well as by a layman. For other Resident Male Individuals below 65 years of age and HUFs Plus Net Income Education Range Income Tax Cess Up to Rs. 1,60,000 Nil Nil Rs. 1,60,001 to Rs. 10% of income above Rs. 3% of  3,00,000 1,60,000 income tax Rs 3,00,001 to Rs Rs. 14,000 + 20% of the 3% of  5,00,000 income above Rs. 3,00,000 income tax

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Above Rs. Rs. 54,000 + 30% of income 3% of  5,00,000 above Rs. 5,00,000 income tax For other Resident Female Individuals below 65 years of age and HUFs

Net Income Range Income Tax Up to Rs. 1,90,000 Nil Rs. 1,90,001 to Rs. 10% of the income above Rs. 3,00,000 1,90,000 Rs 3,00,001 to Rs Rs. 11,000 + 20% of the 5,00,000 income above Rs. 3,00,000 Above Rs. Rs. 51,000 + 30% of the 5,00,000 income above Rs. 5,00,000

Plus Education Cess Nil 3% of  income tax 3% of  income tax 3% of  income tax

For Resident Senior Citizens (who are 65 years or more at any time during the Financial Year 2007-08)

Plus Income Tax Education Cess Up to Rs. 2,40,000 Nil Nil Rs. 2,40,001 to Rs. 10% of the income above Rs. 3% of  3,00,000 2,40,000 income tax Rs 3,00,001 to Rs Rs. 6000 + 20% of the income 3% of  5,00,000 above Rs. 3,00,000 income tax Above Rs. Rs. 46000 + 30% of the income 3% of  5,00,000 above Rs. 5,00,000 income tax  The rules for "Senior Citizen" are the same as for 'Men' as well as 'Women'. Any person who turns 65 on any day prior to or on March 31, 2009 will be treated as A Senior Citizen. Net Income Range

 Tax Liability

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Filing of Income Tax Return 1. Filing of income tax return is compulsory for all individuals whos whose e gros gross s annu annua al incom ncome e exceed ceeds s the the maxim aximum um amount which is not chargeable to income tax i.e. Rs. 1, 90,0 90 ,000 00 for for Resid esident ent Women, omen, Rs. Rs. 2, 40 40,0 ,000 00 for for Seni Senior or Citizens and Rs. 1, 60,000 for other individuals and HUFs. 2. The last date of filing filing income income tax return return is July 31, in case of individuals who are not covered in point 3 below. 3. If the the in inco come me in incl clude udes s busin business ess or prof profess essio ional nal in incom come e requiring tax audit (turnover Rs. 40 lakhs), the last date for filing the return is September 30. 4. The penalty for for non-filing non-filing of income tax return return is Rs. 5000 (after assessment year).

Financial Financi al Planning Planning FAQs What is Financial Planning?

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Fin inan anci cial al pl plan anni ning ng is the the proc process ess of meet meetin ing g your your life life goal goals s throug through h the prope properr managem management ent of your your financ finances. es. Financi inancial al planning helps you make advance provision for financial needs that will arise in the future. The objective of financial planning is to ensure that the right amount of money is available in the right ght han hands at the righ rightt poin pointt in the futu uture to achi achiev eve e an individual's life goals.

Why should I make a Financial Plan? Fin inan anci cial al pl plan anni ning ng prov provid ides es di dirrectio ection n and and mean meaning ing to your your fina financ ncia iall deci decisi sion ons. s. It allo allows ws you you to unde unders rsta tand nd how how each each financ nancia iall deci decisi sion on you you make ake aff affect ects othe otherr area areas s of your your finances. For example, buying a particular investment product might help you save adequately to finance your child's higher educa ucation or it may provi ovide enoug nough h for a comf omfortable retirement. You can also adapt more easily to life changes and feel more secure that your goals are on track. Who is a Financial Planner? A financial planner is someone who uses the financial planning process to help you determine how to meet your life goals. The key function of a financial planner is to help people identify their financial planning needs, their present priorities and the products that are most suitable to meet their needs. He or she norm normal ally ly posse possesse sses s detai detaile led d know knowle ledg dge e of a wide wide range range of  financial planning tools and products, but his major role is to help help clie client nts s choo choose se the the best best prod produc ucts ts for for each each need need.. The The planner can take a 'big picture' view of your financial situation and make financial planning recommendations that are right for you.

Can I do my own Financial Planning? Some personal finance software packages, magazines or selfhel help book books s can can hel help you do you your own fina financ nciial pl pla annin nning. g. Howe Howeve ver, r, you you may may decid decide e to seek seek help help from from a prof profess essio ional nal financial planner if:  You need expertise you don't possess in certain areas. For example, a planner can help you evaluate the level of risk •

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in your inve nvestment portfoli olio and and revi evise your ass sse et allocation  You don't have the time to spare to do your own financial planning;  You know that you need to improve your current financial situation but don't know where to start;   You You feel eel that hat a prof profes essi sion onal al advi advis sor coul could d help help you improve on how you are curr urrentl ntly mana anagi gin ng your finances;   You You have have an imme immedi diat ate e need need or unex unexpec pecte ted d life life event event such as an inheritance or major illness;  You want to get a professional opinion about the financial plan you developed for yourself.

What should I look for in a Financial Planner? A financial planner works for you. His or her loyalty should be to the clie client nt,, not not the pro product duct (s (s)) he is tryi rying to sell sell.. The The financial planner should be in a position to provide you with unbi unbias ased ed advi advice ce and recomm ecommend end prod product ucts s that that matc match h your your needs and are the best performing ones available. Look for any affiliations of the financial planner to any product manufacturer. manufacturer. Until unless the financial planner is truly independent, (s) he will not be able to give you objective advice. How can I plan for tomorrow when I can hardly pay for today? Have a budget. Determine what you actually spend each month. There are fixed expenses like rent, loan repayments, etc. every month about which we can do little. The variable items such as food, clothing and entertainment are often what get away from us. Use your discretion d iscretion to contain these variable expenses to start saving. How much should I be saving? It is hard to apply a rule of thumb toward savings, because it varies with age and income level. Ten percent is a good start. If  you find that is too high for you, don't let that deter you. You can start by putting a little aside each month and then slowly increasing it.

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What if I don't achieve my goals? Financial planning is a common sense approach to managing your finances to reach your life goals. It cannot change your situati sit uation on overni overnight; ght; it is a lif lifelo elong ng proce process. ss. Remembe ememberr that that events beyond your control such as inflation or changes in the stock market or interest rates will affect your financial planning results. Why do I have to provide so much personal information? Consi Conside derr a visi visitt to your your docto doctorr. Witho ithout ut comp comple lete te and and full fully y accurate details, your doctor cannot prescribe the best course of action. The same applies to financial planning. In order to obtain the best service for your 'financial health' all details and specifics must be disclosed.

What type of information do I have to provide?   Typical Typically, ly, informa information tion regardi regarding ng investments investments held, number of  dependants, income and expenditure details, and savings and financial planning needs, etc. The more accurate information you give, the better the quality of advice given. What should a Financial Plan include? A financial plan should include a review of your net worth, goals and objecti objectives ves,, invest investmen mentt portfo portfolio lio,, cash cash flow, flow, invest investmen ments, ts, retirement planning, tax planning and insurance needs, as well as a plan for implementing your goals. Why is there an evaluation of my insurance needs? Evaluating your insurance needs is part of personal financial planning. Insurance takes care of your unpredictable needs and as these needs can arise at anytime, insurance is extremely important. Investments take care of your predictable needs and ideally should follow after your unpredictable needs are first addressed. The insurance industry has changed a great deal over the past few years and there is a whole array of new products from LIC as well as private insurance companies.

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What about taxes? It is impo imporrtant tant that hat financ nancia iall pl plan ans s are are tax tax effi effici cien entt. The The financial plan should help you in minimizing your tax liability and also maximizing your after-ta -tax returns from your inves nvestm tmen ents ts.. Some Some fina financ ncia iall pl plan anne ners rs help help thei theirr clie client nts s in preparing and filing their tax returns. After a plan is developed, what next?   The The best best pl plan an is us usel eles ess s unle unless ss it is put put in into to acti action on.. Your our financial planner will assist you completely in implementing the plan, if and when, desired by you. How often should I update the plan? It is good to review the plan when there is a lifestyle change such su ch as mar marriag riage, e, bi birt rth, h, deat death h or di divo vorrce. ce. An Any y chan change ge in fina financi ncial al posi positi tion on sh shoul ould d be eval evaluat uated ed as well well.. Most Most peop people le have an annual update that reviews how the plan is being implemented. The review also considers changing goals and circumstances.

RESEARCH OBJECTIVE

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 This research was undertaken with the following scope of work: To know the current strategy of investment. To know why salaried employees do investment {need of  investment}. To understand & prepare financial plans To know when they invest. To know where they prefer to invest. To identi identify fy the whethe whetherr they they are are aware aware about about the Tax structure. To give suggestion related to their investment strategy. •

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CONCLUSION

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Many years ago people used to hold money means that they kept their money as Cash in hand or other safe places but today people are more aware of different investment option, which are the Key of growth of money. Instead of a range of  investment option salaried employees prefer to take Medium risk and they will invest their money in that option where they get Maximum returns with average risk. If you know your product well and if you have a good communication skill & have the poise to listen what your customer is talking about pitching your desired service becomes a lot easier. easier. A client always speaks s peaks what he wants wa nts in the first 10 mins, and then mostly she/he is ignorant. That is when your skills come into play. It’s all about communication and interpretation.

“Money never grows on its own, you shall have to invest and invest WISELY to make it grow.”

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Books: •

Indian financial services by M.Y.Khan

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Bajaj Capital publication •

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Investor India Money Multiplier News

Web Site S ite •

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www.google.com www.Bajaj Capital .com www.amfi.com www.valueresearchonline.com

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