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Summer Training Report

On
FINANCIAL PLANNING OF INDIVIDUALS
Completed in
SPA CAPITAL SERVICES LTD.

Submitted In Partial Fulfilment

Of the Requirement

Of Masters of Business Administration

Corporate Mentor: Submitted By:


MS. Rajni Singh Tanvi Aggarwal
Manager Enrol. No 10161203915
SPA Capital Services Ltd. Batch: 2015-17

Submitted To:

Banarsidas Chandiwala Institute of Professional Studies,


Dwarka, New Delhi

i(Affiliated to Guru Gobind Singh Indraprastha University)


DECLARATION

I hereby declare that this Project Report titled Financial Planning Of Individuals
submitted by me to Banarsidas Chandiwala Institute of Professional Studies, Dwarka
Sec-11 is a bonafide work undertaken during the period from 1st June to 6th August
2016 by me and has not been submitted to any other University or Institution for the
award of any degree diploma / certificate or published any time before.

Date: / / 2016
TANVI AGGARWAL
Enrol. No.: 10161203915
BONAFIDE CERTIFICATE

This is to certify that as per best of my belief the project entitled Financial Planning
Of Individuals is the bonafide research work carried out by TANVI AGGARWAL
student of MBA, BCIPS, Dwarka, New Delhi during June-July 2016, in partial
fulfilment of the requirements for the Summer Training Project of the Degree of
Master of Business Administration.
He / She has worked under my guidance.

--------------------
Dr. Aparna Mishra
(Internal Guide)
Date:

Counter signed by

-------------------
Dr. Shamsher Singh
(Acting Director)
Date:
Acknowledgement

The internship opportunity I had with SPA Capital Services Ltd. was a great chance
for learning and professional development. Therefore, I consider myself as a very
lucky individual as I was provided with an opportunity to be a part of it. I am also
grateful for having a chance to meet so many wonderful people and professionals who
led me though this internship period

I express my sincere gratitude to Ms.Rajni Singh, Manager, SPA Capital Services


Ltd., New Delhi, for guiding me through this project, sharing her knowledge and
experience and correcting my mistakes. Without her guidance and valuable insights,
this project would not have seen the light of day.

I would also like to thank Ms.Vibhati Singh Asst. Manager (HR), SPA Capital
Services Ltd., New Delhi, for providing me with the opportunity of pursuing my SIP
in this prestigious organization and also for helping me in each and every process.

A special thanks to my faculty guide Dr.Aparna Mishra( Assistant Professor) who has
been the chief facilitator of this project and helped me enhance my knowledge in the
field of Oil and gas Industry.

I would also like to express my gratitude towards Dr. Shamsher Singh (Acting
Director) who has supported to carry on this research work.

I perceive as this opportunity as a big milestone in my career development. I will


strive to use gained skills and knowledge in the best possible way, and I will continue
to work on their improvement, in order to attain desired career objectives. Hope to
continue cooperation with all of you in the future.
TABLE OF CONTENT

S.NO CONTENT PAGE NO.

1. Executive Summary 6-7

2. Chapter1-Introduction 8-21

3. Chapter2-Company profile 22-27

4. Chapter3-Literature review 28-31

5. Chapter4-Objective of the study 32-33

6. Chapter5-Research methodology 34-37

7. Chapter6-Data collection and Data Analysis 38-56

8. Chapter7-Findings, Conclusion 57-59

9. Chapter8- Suggestions 60-61

10. Chapter9-Limitations 62-63

11. Bibliography 64-66

12. Annexure 67-70


Executive Summary
In modern economy, finance is one of the basic foundations of all kinds of economic
activities. Financial planning is the process of assessing financial goals of individual,
taking an inventory of the money and other assets which the person have, determine
life goals and then take necessary steps to achieve goals in the stipulated period. The
finance industry encompasses a broad range of organizations that deal with the
management of money. Financial Planning is one such advisory service, which is yet
to get recognition from investors. The research is based on the summer project in
SPA Capital Services Ltd. It was established in 1995 and was promoted by a team of
finance professionals with an objective to provide value added financial services. SPA
provides services for securities broking, merchant banking, wealth management,
financial advisory, corporate finance, risk management and insurance broking. SPA
Group has carve a niche for itself in financial services arena.

The initial part of this report contains the brief information about the Financial
planning and its constituents, portfolio investment. This research has been done
keeping in mind the requirement for saving funds n\and getting appreciation in the
form of returns from investing the funds in optimum portfolio. The research has been
conducted by collecting primary data through questionnaire designed and filled by
110 respondents and the data is compiled using various analytical and mathematical
tools such as percentage method, pie diagram and charts for graphic representation
and tabular formation of data. This research has helped in building understanding
about the financial literacy level of individuals and to understand their financial
objective and investment. The research has been done to know the preferences of
individuals regarding various investment avenues. This topic for study was chosen to
suggest and provide with the avenues in which SPA Capital can improve and grow in
their services. It will provide the information about prospective buyers, individuals
perspective about risk return and investment options so that company can expand in
other areas as well.
CHAPTER-1
INTRODUCTION
1.1 INTRODUCTION - FINANCIAL PLANNING

Financial Planning is the process of meeting life goals through the proper
management of finances. Financial planning is a process that a person goes through to
find out where they are now (financially), determine where they want to be in the
future, and what they are going to do to get there. Financial Planning provides
direction and meaning to persons financial decisions. It allows understanding of how
each financial decision a person makes affects other areas of their finances. For
example, buying a particular investment product might help to pay off mortgage faster
or it might delay the retirement significantly. By viewing each financial decision as
part of the whole, one can consider its short and long-term effects on their life goals.
Person can also adapt more easily to life changes and feel more secure that their goals
are on track.

Factors to be considered

Time Horizon and Goals- It is important to understand what individuals


goals are, and over what time period they want to achieve their goals. Some
goals are short term goals those that people want to achieve within the year.
For such goals it is important to be conservative in ones approach and not
take on too much risk. For long term goals, however, one can afford to take
on more risk and use time to ones advantage.
Risk Tolerance- Every individual should know what their capacity to take
risk is. Some investments can be more risky than others. These will not be
suitable for someone of a low risk profile, or for goals that require being
conservative. Crucially, ones risk profile will change across lifes stages. As a
young person with no dependents or financial liabilities, one might be able to
take on lots of risk. However, if this young person gets married and has
a child, person will have dependents and higher fiscal responsibilities.
So persons approach to risk and finances cannot be the same as it was when
they were single.
Liquidity Needs- When money does is needed to meet the goal and how
quickly one can access this money. If investment is made in an asset and
expects to sell the asset to supply funds to meet a goal, then it needs to be
understood how easily one can sell the asset. Usually, money market and stock
market related assets are easy to liquidate. On the other hand, something like
real estate might take a long time to sell.
Inflation- Inflation is a fact of the economic life in India. The bottle of cold
drink that is brought today is almost double the price of what would be paid
for ten years ago. At inflation or slightly above 4% per annum, a packet of
biscuits that costs Rs.20 today will cost Rs.30 in ten years time. Just imagine
what the cost of buying a car or buying a home might be in ten years time!
The purchasing power of money is going down every year. Therefore, the cost
of achieving goals needs to be seen in what the inflated price will be in the
future.
Need for Growth or Income- As people make investments thinking about what
is required, whether capital appreciation or income. Not all investments satisfy
both requirements. Many people are buying apartments, but are not renting
them out even after they take possession. So, this asset is generating no
income for them and they are probably expecting only capital appreciation
from this. A young person should usually consider investing for capital
appreciation to take advantage of their young age. An older person however
might be more interested in generating income for themselves.

1.2 CONSTITUENTS OF FINANCIAL PLANNING

Contingency Planning

Risk coverage

Tax Planning

http://www.ifinltd.in
1.2.1CONTINGENCY PLANNING

Contingency means any unforeseen event which may or may not occur in future.
Contingency planning is the basic and the very first step to financial planning. It was
found that a large number of people have invested in financial planning instrument
but have ignored their contingency planning.

If person is not planned for contingencies he will use his long term investment to fund
such crises. It is a thumb rule that one should have three times money of monthly
salary in liquid form to support contingency.

1.2.2 RISK COVERAGE

Every individual is exposed to certain type of risk whether it is due to loss or damage
of personal property, loss of pay due to illness or disability; or even due to death.
Such risk cannot be determined but on occurrence there may be a financial loss to the
individual or their family. Proper personal financial planning should definitely include
insurance. Basically, insurance provides a safety net to provide the necessary funds
when one meets with events like accidents, disabilities or illnesses. One main
contribution of insurance is that it helps provides peace of mind, knowing that enough
funds are at hand in the event when things do not go the way it should be.

Life Risk - Every individual is prone to risk of losing life its a naked truth but
what is not certain is the time of death. In terms of financial planning,
covering life risk means insuring the life of the person through proper life
insurance plan. Insurance protects us from the contingencies that could affect
us.
Health Risk - Lifespan of Indian is known to have increased nowadays, and
senior citizens strive to stay healthy and active as they age. However, the older
person gets the more extensive healthcare is needed. Health insurance is an
insurance Policy that insures against any medical expenses. Insured medical
expenses will be taken care of by the insurance company provided
person pays their premium regularly.
Property Coverage - Property Coverage insures personal property from
damage, destroy or stolen. Dwelling coverage also known as Homeowners
Insurance offers protection against direct physical damage caused to the
dwelling, including rooms, fireplaces, carpeting, and tile floors and elements
of decor. Person Property Coverage can insure the contents of home, i.e. the
items person regularly use which are not a permanent part of their house's or
apartment's structure, such as furniture, television sets, bikes, clothing,
appliances, utensils and tools. Personal Property Coverage can be used in
appliance to valuable information saved in a hard-copy form or as electronic
data. Auto insurance is compulsory in
most states, and the insurance has different types of benefit or coverage.

1.2.3 TAX PLANNING


Financial planning objective should be getting maximum advantage of various
avenues. It is to be remembered that tax planning is a part and not financial planning
itself. In any case the primary objective of a good financial plan is to maximize the
wealth, not to beat the taxmen. However many investment provides great returns
which can offset the tax on it. But with the knowledge of the Income Tax (IT) Act one
can reduce income tax liability. It also helps to decide, where to invest and to claim
deductions under various sections. The income earned is subject to income tax by the
government.

1.3 PORTFOLIO INVESTMENT

Portfolio is a combination of assets, the outcome of which cannot be defined with


certainty. These assets could be physical assets, real estate, lands, buildings, gold, etc.
or financial assets like stocks, equity, debentures, deposits etc.

When investors have established their overall financial plan and are interested in
managing and enhancing their wealth by investing in an optimal combination of
financial assets. Wealth should be evaluated and managed within the context of a
portfolio, which consists of the assets holding of an investor.

People are interested in portfolio investments due to following objectives:-

o Safety of Fund
o Liquidity
o Reasonable returns
o Appreciation in Capital
o Tax planning

1.3.1 MEANING OF PORTFOLIO

As mentioned in the Rule(2), clause(d) of SEBI (portfolio management ) as per the


Rules established in 1993 defines the term Portfolio as total holding of securities
belonging to any person.

As a matter of fact, portfolio is a combination of assets, the outcome of which cannot


be defined with certainty. These assets could be physical assets, real estate, land,
building, gold etc or financial assets like stocks, equity, debenture, deposits etc. my
concern is this project is to discuss the topic with reference to financial assets only.

Portfolio management refers to managing efficiently the investments in the security


held by professionals for others. Portfolio managers render the service of portfolio
management with a view to ensure maximum return by investments with minimum
risk of loss on return on the money invested in securities held by their clients. When
investors have established their overall financial plan and are interested in managing
and enhancing their wealth by investing in an optimal combination of financial assets.
The idea of an optimal combination is important because of our wealth which we
hold in various assets, should be evaluated and managed as a unified whole. Wealth
should be evaluated and managed within the context of a Portfolio, which consists of
the assets holding of an investor.

1.3.2 PORTFOLIO MANAGEMENT

The major component of the decision process is portfolio management. After


securities have been evaluated, a portfolio should be selected. It involves managing
group of assets (i.e. a portfolio) as a unit. Portfolio must be managed regardless of
whether an investor is active or passive.

Passive Investment Strategy - It involves determining the desired investment


proportions and assets in a portfolio and maintaining these proportions and
assets making few changes.
Active Investment Strategy - It involves specific decisions to change the
investment proportions chosen, or the assets in a particular category, based on
the belief that an investor can earn profit by doing so.
1.4 CONCEPTS OF RETURN AND RISK

We all know that risk and returns are directly related. Higher the risk, higher will be
the returns. As a portfolio manager one must understand the concept of risk and
return, because determining a portfolio of a particular client it is necessary to know
how much risk he can bear and how much returns he is expecting.

1.4.1 COMPONENTS OF RETURNS:

Return on typical portfolio consist of two components

Yield-It is the income composed of a securitys return.


Capital gains - Change or appreciation of a price of a security over a period of
time is called capital gains.
Returns = yield + capital gains (price change)
Therefore returns = (Any cash payments received) + (price changes over a
period)/ (price at which assets is purchased)
Risk-The chance that the actual return on an investment will be different from
expected return is known as risk. It can also be defined as uncertainty of
future outcomes or probability of an adverse outcome.

1.4.2 SOURCES OF RISK:-

Various sources of risk makes financial assets risky,. The following are the modern
portfolio sources of risk.

Interest Rate Risk:- The risk which arises due to variability in securities
returns resulting from changes in interest rate. This type affects bonds more
directly than common stocks but affects both.
Market Risk:- The variability in returns resulting from fluctuations in the
overall market i.e. the aggregate stock market is referred to as market risk.
All securities are exposed to market risk, although it has major impact on
common stocks.
Inflation Risk:- A factor which affects all components of a portfolio is
purchasing power risk, or the chance that the purchasing of invested dollars
will decline with uncertain inflation the real (inflation- adjusted) returns
involves risk even if nominal return is safe.
Business Risk:- The risk of doing business in a particular industry or
environment is called business risk.
Financial Risk:- Financial risk is associated with the use of debt financing by
companies. Financial risk involves the concept of financial leverage.
Liquidity Risk:- Liquidity risk is the risk associated with particular
secondary market in which a security trades. The more uncertainty about the
time element and the price concession, the greater the liquidity risk.

1.4.3 TYPES OF RISK

Systematic Risk - It is the risk attributable to a road macro- factors affecting all
securities.
Non Systematic - Risk attributable to factors unique to the security.

Total risk Systematic risk + Non Systematic risk

For minimizing the risk it is necessary to diversify over investments.

For measuring portfolio risk is measured by the variance (or standard deviation) of its
return. Although the expected return on portfolio is the weighted average of the
expected returns on individual securities in the portfolio, portfolio risk (measured by
the variance or standard deviation) is not the weighted average of the risks of
individual securities in the portfolio ( except when the returns from the securities are
uncorrelated)

In symbols: E (Rp) = Wi E ( Ri )

n
Variance (2) = [ Ri - E(Ri) ]2 Pi
i=1
https://www.quora.com

1.5 COMPONENTS OF PORTFOLIO:-

Fixed Deposits
Bonds
Mutual Funds
Insurance
Tax Planning
Commodities
Stocks

A long-term investment strategy requires more than a passive investandforget


approach. Once youve created an investment strategy and built your portfolio,
youve taken the first steps toward reaching your financial goals. As time passes, you
will need to review your portfolio regularly to make sure you stay on track.

1.5.1 FIXED DEPOSITS

As the name suggests, it is the deposit of money for a fixed period with a specific
interest rate. In this the amount of money deposited cannot be withdrawn before the
period of maturity and if in case the amount or the part of amount is withdrawn
before the period of maturity then a specific fees is deducted from the total amount
and the rest amount is handed over to the depositor.

In the context of investment, it is considered to be the safe investment as the return is


assured but the rate of return is a bit low. Moreover less people are attracted towards
Fixed Deposits as they cant withdraw the money before the maturity period and
because of low rate of interest as compared to other investments.

1.5.2 INSURANCE

People buy insurance policies for the safety of their family members and their
products.

Insurance is necessary to ensure that the basic necessities of life, comfort and pleasure
derived by all of us from our living continue to be available for us.

People buy life insurance policy because they realize the need of protection for their
families after their death or of a reserve for emergencies and of additional income for
later years.

Life insurance protects against loss of income of an individual. Life insurance does
not protect the asset. It also does not prevent its loss. So it can be said that insurance
covers the risk of ones life and property.

A fundamental principle of insurance is to put you in the same financial condition


after the loss or injury as you were before it. The aim of all insurance is to
compensate the owner against loss arising from a variety of risks, which he
anticipates, to his life, property and business. All insurance contracts are based on the
information provided by the insured in the proposal form.

Life Insurance - Life Insurance policy is the most popular and taken by the most
number of people. Many of us buy life insurance policies, because we want to make
sure our loved ones remain financially secure after we die. Insurance companies offer
both individual as well as group insurance policies.

1.5.3 TAX PLANNING

Tax Saving Scheme:-


o NATIONAL SAVING CERTIFICATE (NSC)
National Saving Certificate (NSC) is one of the popular Income Tax Saving
schemes which is available throughout the year. It can be operated by single,
joint, or minor with his/her parent or guardian. There is a return on this
scheme at interest rate of 8%. The minimum investment limitation of the
scheme is Rs.100/- and with no upper limit. Other investments can be done in
multiple of Rs. 100/-. This scheme has a maturity period of 6 years. It is
transferable and also there is a provision of loan on the basis of this scheme.
Under section 88 of the Income Tax Act, 1961 any person can take benefit in
income tax on amount invested in this scheme and under section 80L of
Income Tax Act, 1961 there is a provision of benefit on interests coming from
scheme.

o PUBLIC PROVIDENT FUND (PPF)


Under this scheme, there is a return at the interest rate of 8% p.a. The
minimum investment limit is Rs. 500/- and maximum limitation is Rs.
70,000/-. It can be opened any time throughout the year. It can be operated
either single or jointly. In case of minor, with parent/guardian. There is also a
facility of nomination in this scheme. This scheme has a maturity period of 15
years. The first loan can be taken in the third
Financial year from the date of opening of the account, or up to 25% of the
amount at credit at the end of the first financial year. Loan amount can be
returned in maximum of 36 installments. A person can withdraw an amount
(not more than 50% of the balance) every year. Under Section 88 of Income
Tax Act, 1961 there is a provision of tax benefit by investing in this scheme.
Interest on this scheme is tax free.
o KISAN VIKAS PATRA(KVP)
Money invested in this scheme doubles in 8 years. There is a minimum
investment limitation of Rs.100/- with no upper limit. This scheme is
available throughout the year. It can be operated either single or jointly. In
case of minor with parent/ guardian. Facility for nomination is also available
under this scheme. Currently there is no tax benefit on investment under this
scheme.

o POST OFFICE SCHEME (POS)


It is one of the best Income Tax Saving Scheme. It can be operated by either
single or jointly. In case of minor, with parent/guardian. It is available
throughout the year. There are several types of post office schemes depending
upon the type of investment and maturity period. Post office schemes can be
divided into following categories:
Monthly Deposit
Saving Deposit
Time Deposit
Recurring Deposit

o SPECIAL SCHEMES FOR RETIRING PERSON


Government Employees:-
There is a return at the rate of 8% per annum. The minimum investment is
Rs.1000/- and maximum, amount equal to the total retirement benefit.
Maturity period of this scheme is 3 years. According to Income Tax Act, 1961
interest on this scheme is tax free. Public Sector Employees: Under this
scheme there is a return of 9.5% payable half-yearly on 30th June and 31st
December respectively. There is a minimum investment limitation of
Rs.1000/- and the maximum limitation is the amount equal to total retirement
benefit. It can be operated by retired PSU employees in his/her own name or
with the spouse, jointly. In this scheme, there is a facility of premature
encashment. Entire balance or part thereof can be withdrawn after the expiry
of three years from the date of deposit. Maturity period of this scheme is 3
years. According to Income Tax Act, 1961 interest on this scheme is tax free.

1.5.4 MUTUAL FUND


Unit Trust of India was the first mutual fund set up in India in the year 1963. In early
1990s, Government allowed public sector banks and institutions to set up mutual
funds.
In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The
objectives of SEBI are to protect the interest of investors in securities and to
promote the development of and to regulate the securities market.

As far as mutual funds are concerned, SEBI formulates policies and regulates the
mutual funds to protect the interest of the investors. SEBI notified regulations for the
mutual funds in 1993. Thereafter, mutual funds sponsored by private sector entities
were allowed to enter the capital market. The regulations were fully revised in 1996
and have been amended thereafter from time to time. SEBI has also issued guidelines
to the mutual funds from time to time to protect the interests of investors.
All mutual funds whether promoted by public sector or private sector entities
including those promoted by foreign entities are governed by the same set of
Regulations. There is no distinction in regulatory requirements for these mutual funds
and all are subject to monitoring and inspections by SEBI. The risks associated with
the schemes launched by the mutual funds sponsored by these entities are of similar
type. It may be mentioned here that Unit Trust of India (UTI) is not registered with
SEBI as a mutual fund (as on January 15, 2002).

India (UTI) is not registered with SEBI as a mutual fund (as on January 15, 2002).

Mutal Fund- Meaning

Mutual fund is a mechanism for pooling the resources by issuing units to the
investors and investing funds in securities in accordance with objectives as disclosed
in offer document.
Investments in securities are spread across a wide cross-section of industries and
sectors and thus the risk is reduced. Diversification reduces the risk because all stocks
may not move in the same direction in the same proportion at the same time. Mutual
fund issues units to the investors in accordance with quantum of money invested by
them. Investors of mutual funds are known as unit holders.

A mutual fund, also called an investment company, is an investment vehicle which


pools the money of many investors. The fund's manager uses the money collected to
purchase securities such as stocks and bonds. The securities purchased are referred to
as the fund's portfolio.

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1.5.5 COMMODITIES

Commodity Futures are contracts to buy specific quantity of a particular commodity


at a future date. It is similar to the Index futures and Stock Futures but the underlying
happens to be commodities instead of Stocks and Indices.

Major Commodity Exchanges

The Government of India permitted establishment of National-level Multi-


Commodity exchanges in the year 2002 and accordingly three exchanges come in
picture. They are:

Multi-Commodity Exchange in India Ltd, Mumbai ( MCX ).


National Commodity and Derivative Exchange of India, Mumbai ( NCDEX ).
National Multi Commodity Exchange, Ahmadabad (NMCE).

However there are regional commodities exchanges functioning all over the country.
Karvy Commodities Broking PvtLtd, has got membership of both the premier
commodity exchanges i.e. MCX and NCDEX.
CHAPTER- 2
COMPANY
PROFILE
SPA Group was promoted by a team of finance professionals in 1995 with an
objective to provide value added financial services. Initially, the Group focused as a
niche financial solutions provider in corporate finance and wealth management to
Indian companies and high net worth individuals. In January 2000, the Group
expanded its operations and the range of services. Today, SPA provides services for
securities broking, merchant banking, wealth management, financial advisory,
corporate finance, risk management and insurance broking.

SPA is being managed by its promoters along with a young and dynamic team of over
500+ professionals with rich experience, in their respective fields. The Group has
established itself as one of Indias leading financial advisory house, offering various
financial solutions to its Institutional, corporate and individual clients.

Customer centric approach of SPAs dedicated professional team has helped carve a
niche for itself in financial services arena and won confidence of its clients. Clients of
SPA are from a wide spectrum and comprise of Banks and other financial institutions,
Mutual funds, Insurance companies, foreign institutional investors, public sector
undertakings and government departments, private corporates, trusts and individuals.

https://www.owler.com/iaApp/10453698/spa-capital-services-company-profile
2.1 GROUP COMPANIES

SPA Group of companies is the flagship Company of the Group and is engaged in
providing Wealth Management and Financial Advisory services to institutions,
corporates, and individuals since 1995. The Company is a leading distributor of
Mutual Funds in the country and presently has assets over 19000 crores under its
management. The Company has successfully positioned itself as a strategic advisor to
its customers for wealth management with its customer centric approach and
innovative solutions.

The Company is registered with Reserve Bank of India as a Non-Banking Financial


Company. Presently the shares of the Company are listed on the Delhi Stock
Exchange.

2.2 VISION

SPA believes in attaining customer satisfaction, on continuing basis, by providing


highest standard of financial services in India. The philosophy at SPA is to provide
services to clients after assessment of their profile, needs and risk-appetite. The basic
work the meat SPA is:
-Dedicated, competent and honest team of professionals
-Customer centric work environment
-Insight of customers perspectives
-Strong research base
-Clear understanding of applicable laws
-Consistency and passion to excel
- Technology savvy

2.3 MILESTONES

Since 1994, with the coming into existence of the SPA Group, we have diversified
into a complete financial solution providing house, catering varied needs of our
clients ranging from investment advisory services to investment banking, corporate
re-structuring, distribution and broking services, risk management and insurance
advisory. Within a short span of time, the Group has made a place for itself in the
midst of the top financial solutions provider in the country

2.4 SERVICES

1. Merchant Banking
SPA Capital Advisors Limited is engaged in private placement of debt
instruments, structuring of the various financial products as per the
requirements of the borrowers along with various other pre-issue and post
issue services.

The Company has made notable and considerable progress in a short span in
the debt-oriented merchant banking activities by successful placement of
various debt primary issues. This is also reflected through the ranking by
Prime Database, which has ranked the Group amongst the top 10 service
providers in this segment. The Company was able to achieve above ranks on
the basis of its performance in just two financial years since it commenced
investment & merchant banking activities.

Since the commencement of merchant banking services, the Company has


syndicated funds for various Public Sector Undertakings (PSUs), Designated
Financial Institutions(DFIs), Banks and several State Level Undertakings
(SLUs).

The Company for its Merchant & Investment Banking activities has found
patronage as an Arranger with various central public sector undertakings like
HUDCO, NTC, ITI, MECON, IISCO SAIL, REC, KRCL, public sector banks
and financial institutions. Also the Company has had privilege to provide its
services to various state level undertakings of Andhra Pradesh, Karnatka,
Kerela, Tamil Nadu, West Bengal, Punjab, Haryana, Himachal Pradesh,
Jammu & Kashmir, Maharashtra, Gujarat and Rajasthan. In the private sector,
the Company has provided its services to various domestic and MNC
corporates.

The achievements corroborate our untiring and sincere efforts towards


building and preserving mutually rewarding and sustainable relationships with
our clients and giving them our value added services with meaningful
performance.

Now, the Company has started providing Equity Oriented Merchant Banking
services to its customers on strength of its research based structuring
capabilities and strong distribution network. Presently, the Company is
providing services for private placement of equities, public issues and right
issues.

2. Insurance

SPA Insurance Broking Services Ltd is the insurance broking company of the
group providing life and general insurance advisory services.

3. Mutual Fund
The SPA Group, on strength of its research based customer centric approach
and impeccable servicing, is recognized as one of the leading financial advisory
service providers in the country.

SPA Capital Services Ltd., the flagship company of the group provides investment
advisory services. The company is engaged in advisory and distribution services of
mutual funds and is ranked amongst top 10 intermediaries in the country. The
Company provides customized solutions to the requirements of High Net worth
Individuals and Corporate clients. Our strength lies in our ability to advise on
investment strategies and structures, develop innovative products and distribute
amongst a wide network of investors across the country. We have constantly
endeavored to develop new instruments, tailor made to the requirements of our
clients, enabling them to earn efficient post tax returns in accordance with their
specific risk, return and maturity profiles. The company also has a distribution
network of 200 sub-brokers across India being serviced by its eight branches.

The company is currently having Asset under Management of over Rs. 22,000 crore
with above 1 lac satisfied customers.

Additionally, the company provides advisory services for alternate investment


options like portfolio management services in equity, debt and commodities
besides investment in venture capital funds.

4. Securities Broking

SPA Securities Ltd. is registered member of NSE-WDM segment, Capital


Market segment and Futures and Options segment. The company is also a
member of The Stock Exchange, Mumbai. SPA Comtrade Pvt. Ltd. is the
commodities broking company of the group and is a member of NCDEX and
MCX. The Company has dedicated teams operating from a state of the art
dealing room in Mumbai for equity, debt and derivatives broking supported by
a strong in-house research team.

Debt Broking

The division is engaged in providing debt advisory and broking services to


institutional, semi-institutional and retail customers. The company caters to a
wide range of investors across the country ranging from Provident Funds,
Banks, Corporate Treasuries, Financial Institutions, Mutual Funds,
Educational, Religious and Charitable Trusts, Insurance Companies, HNI's
etc. The company deals in Government Securities, Treasury Bills, Commercial
Papers, Certificate of Deposits, PSU, SLU and Corporate Bonds and other
debt instruments. With its nationwide network providing institutional broking
services the company has executed business of over Rs. 300 Billion in last 3
years.

5. Research
At SPA a separate department is being continuously endeauring to provide the
best possible. Equity Research on a periodic basis. The department consists of
experience financial professionals who provides in depth fundamental research
on different sectors and companies.

A separate experienced team is also being put in place who are providing
technical research by using different financial softwares. They provide
Intraday Calls, short term calls. Every morning a report is being provided as
Morning glance which provides the daily technical view about the market.

SPA group provides:

Fundamental Research

Technical Research

6. Internet Trading

SPA Securities Ltd. Online is one stop financial investment portal for all your
financial needs. You can do online trading in Equities, Derivatives.

At SPA, client services always come first & thus, we always endeavor to offer you
latest online products, with state-of-the art technology, to serve you better. Rest
assured, we, at SPA, will help you realize your dream of financial freedom backed
by sound in-house research & excellent advisory capabilities.

Benefits of Internet Trading in SPA Securities Ltd.

-Instant order/trade confirmation

-Convenient & Hassle free

-No Geographical & time limitations

-Greater Transparency

-Safe & Secure

-Secured Payment Gateways for Instant Fund Transfer

-Informed Decision Making & access to Advance Trading Tools

-Online access of back-office reports

-Control in the hands of customer


CHAPTER-3
LITERATURE
VIEW
Personal finance refers to the financial management of which an individual or a
family unit is required to make, to obtain, budget, save, and spend monetary resources
over time, taking into account various financial risks and future life events. The
process involves gathering relevant financial information, setting life goals,
examining your current financial status and coming up with a strategy or plan for how
you can meet your goals given your current situation and future plans. In this research
paper, literature related to personal financial planning is reviewed and research gaps
are identified for further study on the basis of following points:

Financial position
Adequate protection
Tax planning
Retirement planning
Estate planning

The topic-Financial Planning for Individual Investors was selected to find out
the risk appetite and investment potential of Indian Investors to invest in these
instruments and what percentage component are these instruments in an optimal
portfolio.
Prior to the development of portfolio theory the investors dealt with the concept of
risk and return loosely. Then portfolio theory was later on developed by Harry
Markowitz in 1950, it was the first attempt to quantify the risk of a portfolio and
develop a methodology for determining an optimal portfolio. Shares, mutual funds,
ULIP, tax planning, gold, silver etc. are all the constituents of a portfolio.

Gitman& Bacon (1985) had written a paper COMPREHENSIVE PERSONAL


FINANCIAL PLANNING: AN EMERGING OPPORTUNITY which provides a
conceptual understanding of the comprehensive personal financial planning process
and its role in the financial services revolution. Empirical evidence is provided
supporting the need for an increased supply of college-trained financial.
They also suggested that it is true that academic institutions should provide
knowledge of personal financial planning so that the students are aware how to plan
their finances in future. This helps them in gaining various job opportunities as well in
fast moving financial services industry.

Rod (2014) in his study of THE PSYCHOLOGY OF INVESTMENT


BEHAVIOR the present research examines how people process graphical displays
of financial information (e.g., stock-prices) to forecast future trends and invest
accordingly. The present research investigates one particular form of financial
decisions: asset trading (e.g., stocks, bonds)

Chakraborty&Digalhad done study on SAVING AND INVESTMENT


BEHAVIOUR OF INDIVIDUAL HOUSEHOLDS-AN EMPIRICAL
EVIDENCE FROM ORISSA. This study shows that there is a relationship between
the saving objectives with the age, occupation and income level of the small and
medium household investors. The financial behavior of individual investors has a
connection with various available investment options, preference and selection.

Sellappan, Jamuna&kavitha (2013) had written a paper


INVESTMENTATTITUDE OF WOMEN TOWARDS DIFFERENT
SOURCES OF SECURITIES concluded that married women are more curious in
making investment than the unmarried. As well as the younger are mostly like to
invest in shares mutual funds, insurance and fixed deposits than the older women. The
middle age persons prefer to invest in real estate source of investment. So the
government, Bankers and Financial institutions can introduce lot of schemes of
investment based on segmentation of the age and marital status factors to acquire
more funds.

Jagongo&Mutswenje (2014) conducted a study on FACTORS INFLUENCING


INVESTMENT DECISION- THE CASE OF INDIVIDUAL INVESTORS AT
THE NSE. The study was conducted on the 42 investors out of 50 investors that
constituted the sample size. This study tested the tenets of the behavioural finance
theory on the factors that influence investment decisions under conditions of
uncertainty.
It can be concluded by saying that researchers thought that there is a big scope in
areas of financial planning. It shows that more knowledge, advancement, detailed
study is required on this subject. I have tried to analyse various investment options
and individuals financial literacy level. This bridges the gap between my study and
existing studies.
CHAPTER-4
OBJECTIVE OF THE
STUDY
4.1 OBJECTIVE OF THE STUDY

4.1.1 Primary Objective

-To identify the investment avenues which attract individuals the most

4.1.2 Secondary Objective

-To examine financial literacy level of individuals

-To identify prospective investors

4.2 SCOPE OF THE STUDY


Extensive survey on customer preferences will provide lot of valuable
information about the various investments and it will be easy to find out the
likes and dislikes about those investments
For company, it will provide through knowledge about the consumer
preferences in comparison with other market product and suggest valuable
direction of the current market trend.
It will provide lot of information about the market trend and customer
preferences about the product.
It will include valuable suggestions for the company, how the company can
strengthen their company and expand in the type of investment in which
clients are most interested.
The study of customer preferences will provide me lot of information on

The study highlights the areas related to investment products or services where
SPA CAPITAL can improve the service rendered by them and expand. The
study gives information about prospective buyers. It provides the feedback
from customers regarding their problems and their perception about investing
in SPA CAPITAL so that the company can improve their services.

Setting up new avenues

Bringing the notice to the organization the untapped markets


CHAPTER- 5
RESEARCH
METHODOLOGY
The quality and reliability of research study is dependent on the information collected
in a scientific and methodological manner. Scientific planning of designing of
research method is a blue print for any research study. Therefore, proper time and
attention should be given in designing the plan of research. While proper definition of
problem tells the researcher where he has to go, proper design tells him how he should
go. Selection of methodology for a particular project is made easy by sorting out a
number of alternative approaches, each of them having its own advantage and
disadvantages. Efficient design is that which ensure that the relevant data are
collected accurately.

The researcher has to think about what procedure and techniques should be adopted in
the study. He should arrive at the final choice by seeing that the methodology chosen
for project is indeed the best one, when compared with others.

5.1 RESEARCH DESIGN :

Research design is the first and foremost step in methodology adopted and
undertaking research study. It is overall plan for the collection and analysis of data in
the research project. Thus it is an organized, systematic approach to be the
formulation, implementation and control of research project.

Infact, a well planned and well balanced research design guards against collection of
irrelevant data and achieves the result in the best possible way.

5.2 SAMPLE DESIGN :-

The universe of study being large, researcher has to resort to sampling method of data
collection. On the basis of a section of the population selected in a prescribed manner
one is able to deduce for the population. For the sample results to be applicable on the
population, sample should be adequately chosen so to make it representative and
reliable.
Population: People of age group between 20 and 60

Sample: Sample covers the respondents of 100 departments.

5.3 DATA COLLECTION METHOD

Data are the bricks with which the researcher has to make a house. While the quality
of research finding depends on the data, the adequacy of appropriate data in turn
depends upon proper method of data collection. A number of methods are at the
disposal of the researcher of which one has to select the most appropriate one for
visualizing the research objective. Thus one has to see that the method adopted is
compatible with the resources and research study.

5.3.1 Primary Data: Data which are collected fresh and for the first time and thus
happens to beoriginal in character. Primary data are gathered for specific
purpose.
5.3.2 Secondary data: Data that collected from primary data i.e., they are already
existing. For the purpose of our study we collected both the data.

For the purpose of this study I have collected

Secondary data through induction manual, magazines, corporate journals and web
site &

Primary data through Questionnaire method

In my study the main emphasis was on the questionnaire method. I have used
questionnaire method which is designed kept in mind the objectives of my study.
Question, which were asked, were of multiple choice in nature and were closed ended.

Secondary data through data available on existing research paper on the same subject,
worldwide web, articles in newspapers, financial industry reports, Financial Planning
board of India reports and article, reports published by Government of India, etc.
Support was also provided by the project guide by giving inputs from her years of
experience.

1. Tabular formation of data


2. Graphical representation such as use of pie diagrams and charts
3. Mathematical calculations like percentage method to compile data

The various parameters on which the research was to be conducted are:

Awareness of financial Planning


Alignment of life goals and financial goals
Investment distribution in various asset classes
Decision influencing investment
CHAPTER-6
DATA COLLECTION
AND
DATA ANALYSIS
AGE

Table 6.1 The Age wise classification of Respondents

Age (in years) No of respondents In percentage


20 to 30 50 45.5%
31 to 40 28 25.5%
41 to 50 20 18.2%
50 and above 12 10.09%
Total 110 100%
Figures in table and below to the figures indicate percentage to the respective
row and column total. In the above table it is clear that it is having 100%
respondents, and 45.5% of respondents are in 20 to 30 age category, 25.5%
respondents from 31 to 40 years, 18.2% of respondents are in 41 to 50 and
10.09% of respondents are in 50 and above years category.

Graph showing Age wise classification of Respondent

Age
50% 46%
40%
20-30
30% 25.50%
18.20% 31-40
20%
10.90% 41-50
10%
50 and above
0%
20-30 31-40 41-50 50 and above

GENDER

Table 6.2 The Gender wise Classification of Respondents

Gender No of respondents In percentage

Male 55 50

Female 55 28%

Total 110 100%

Figures in the above table and below to the figures indicate percentage to the
respective row and column total. Above table clears from out of 100%
respondents row and column, 72 % of respondents are male and remaining
respondents are female. It clears that out of 104 respondents 75 are male and 29
are female.

Graph showing Gender wise classification of respondents

Sex of Respondents

50%
40%
Male
30% 50% 50%
Female
20%
10%
0%
Male Female

EDUCATIONAL QUALIFICATION

Table 6.3 Education wise Classification of respondents

Level of No of respondents In percentage


Education

Post Graduate 48 43.6%

Graduate 37 33.6%

Non Graduate 13 11.8%

Others 12 10.9%

Total 110 100%

The table contains 100% respondents in education wise classification


respondents studied up to C.A./ Professionals 18.3%, Graduates are 42.3%, PG
respondents are 26.9%, 12th pass-outs are 6.7% and 10th pass-outs are 5.8%.
Graph showing Education wise classification of respondents

Education
10.9%
Post Graduate
11.8%
43.6% Graduate
Non Graduate
Others
33.6%

OCCUPATION

Table 6.4 Occupation wise classification of respondents

Occupation No Of Respondents In Percentage


Salaried 46 42.6%
Self Employed Professional 36 33.3%
Self Employed Non 23 21.3%
Professional
Retired 3 2.8%
Total 108 100%
The table contains 98.18% respondents in occupation wise classification. No of
salaried respondents are 42.6%, Self-Employed Professional are 33.3%, Self-
Employed Non Professional are 21.3% and retired are 2.8% only.

Graph showing Occupation wise classification of Respondents

Occupation
50.00%
Salaried
40.00%
30.00%
20.00% 42.60% Self Employed Professional
33.30%
10.00% 21.30%
0.00% 2.80% Self-Employed Non
Professional
Retired
MONTHLY INCOME

Table 6.5 Monthly Income wise classification of respondents

Monthly Income (Rs.) No Of Respondents In Percentage


Up to 20,000 19 18.1%
20,001-40,000 22 21%
40,001-60,000 29 27.6%
Above 60,000 35 33.33%
Total 104 100%
The table contains 04.54% respondents in monthly income wise classification. No of
respondents who have income up to Rs.20,000 are 18.1%%, Rs. 20,001-30,000l are
21%, Rs. 40,001-60,000 are 27.6% and respondents who have income above Rs.
60,000 are 33.33%

Graph showing Monthly Income wise classification of Respondents

Monthly Income
18.10%

33.30%
Up to Rs.20,000
Rs.20,001-40,000
Rs.40,001-60,000
21.00%
Above Rs.60,000

27.60%

WHAT PERCENTAGE OF INCOME DO YOU SAVE?

Table 6.6 Income saved wise classification of respondents

Income Saved No Of Respondents In Percentage


0-10% 11 10.3%
10-20% 31 29%
20-30% 53 49.5%
30-40% 12 11.2%
Total 110 100%
The table contains 100% respondents in income saved wise classification. No of
respondents who save income 0-10% are 10.3%, 10-20% are 29%, 20-30% are 49.5%
and 30-40% are 11.2%
Graph showing Income saved wise classification of Respondents

Income Saved
49.50%
50.00%
40.00% 0-10%
29.00%
30.00% 10-20%

20.00% 11.20% 20-30%


10.30%
10.00% 30-40%

0.00%
0-10% 10-20% 20-30% 30-40%

HOW DO YOU RATE YOUR FINANCIAL LITERACY LEVEL?

Table 6.7 Financial Literacy Level wise classification of respondents

Financial Literacy Level No Of Respondents In Percentage


Very Good 8 7.3%
Good 48 43.6%
Average 53 48.2%
Poor 1 0.9%
Total 110 100%
The table contains 100% respondents in Financial Literacy Level wise classification.
No of respondents who consider their literacy level very good are 7.3%, good are
43.6%, average are 48.2% and poor are 0.9%

Graph showing Financial Literacy Level wise classification of Respondents

Financial Literacy Level


60.00%
50.00%
40.00% Very good

30.00% Good

20.00% Average

10.00% Poor
7.30% 43.60% 48.20% 0.90%
0.00%
Very good Good Average Poor
DO YOU INVEST YOUR MONEY?

Table 6.8 Invest Money wise classification of respondents

Invest Money No Of Respondents In Percentage


Yes 95 88%
No 15 12%
Total 110 100%
The table contains 100% respondents in invest money wise classification. No of
respondents who invest money are 88% and respondents who dont invest money are
12%

Graph showing Invest Money wise classification of Respondents

Invest Money

100.00%
88.00%
80.00%
Yes
60.00%
No
40.00%
20.00% 12.00%
0.00%
Yes No

IF YES THEN WHICH IS THE BEST OPTION ACCORDING TO YOU?

Table 6.9 Investment Option wise classification of respondents

Investment Option No Of Respondents In Percentage


Mutual Funds 7 6.8%
Stocks/shares 12 11.7%
Banks 55 53.4%
Commodities 9 8.7%
Real estate 11 10.7%
Post office 1 1%
Insurance 4 3.9%
Any Other 4 3.9%
Total 103 100%
The table contains 93.63% respondents in investment option wise classification. No of
respondents who prefer mutual funds are 6.8%, stocks are 11.7%, banks are 53.4%,
commodities are 8.7%, real estate are 10.7%, post office are 1%, insurance are 3.9%
and any other are 3.9%
Graph showing Investment Options wise classification of Respondents
60.00%

50.00%
Investment Options
53.40%
40.00%

30.00%

20.00%

10.00% Investment Options


6.80%11.70% 8.70%10.70% 1% 3.90% 3.90%
0.00%

WHAT KIND OF INVESTOR YOU ARE?

Table 6.10 Kind of Investor wise classification of respondents

Kind of Investor No Of Respondents In Percentage


Risk Adverse 30 30%
Risk Lover 70 70%
Total 100 100%
The table contains 100% respondents in income saved wise classification. No of
respondents who are risk adverse are 30% and risk lover are 70%

Graph showing Kind of Investor wise classification of Respondents

Kind of Investor
80.00%
70.00%
70.00%
60.00%
50.00%
40.00% Risk Adverse
30.00%
30.00% Risk Lover
20.00%
10.00%
0.00%
Risk Adverse Risk Lover
WHICH INVESTMENT PATTERN DO YOU PREFER?

Table 6.11 Investment Pattern wise classification of respondents

Investment Pattern No Of Respondents In Percentage


Low risk low return 78 78%
High risk high return 22 22%
Total 100 100%

The table contains 90.9% respondents in investment pattern wise classification. No of


respondents who prefer low risk low return are 78% and respondents who prefer high
risk high return are 78%

Graph showing Investment Pattern wise classification of Respondents

Investment Pattern

22.00%
Low Risk Low Return
High Risk High Return
78.00%

WHAT IS YOUR INVESTMENT TIME DURATION?

Table 6.12 Investment time duration wise classification of respondents

Investment time No Of Respondents In Percentage


duration
Long term 48 47.1%
Short term 54 52.9%

Total 102 100%

The table contains 92.72% respondents in income saved wise classification. No of


respondents whose investment time duration is long term are 47.1% and whose
investment time duration are 52.9%
Graph showing Investment time duration wise classification of Respondents

Investment Time Duration


54.00%
52.00% 52.90%
50.00%
Long Term
48.00%
Short Term
46.00% 47.10%
44.00%
Long Term Short Term

DO YOU HAVE ENOUGH TIME TO MANAGE THE INVESTMENT


AFFAIRS?

Table 6.13 Time to manage Investment wise classification of respondents

Time to manage Investment No Of Respondents In Percentage

Yes 84 82.4%

No 18 17.6%

Total 102 100%

The table contains 92.72% respondents in time to manage investment affairs wise
classification. No of respondents who have time are 82.4% and who dont have time
are 17.6%

Graph showing Time to manage investment wise classification of Respondents


Time to manage Investment

100.00%
82.40%
80.00%
Yes
60.00%
No
40.00%
17.60%
20.00%
0.00%
Yes No

DO YOU TAKE ANY PROFESSIONAL


ADVICE/INFORMATION/REFERENCE REGARDING YOUR
INVESTMENT OR YOU TAKE YOUR INVESTMENT DECISION AT YOUR
OWN CHOICE?

Table 6.14 Take advice wise classification of respondents

Take advice No Of Respondents In Percentage


Yes 86 84.3%
No 16 15.7%
Total 102 100%
The table contains 92.72% respondents in take advice wise classification. No of
respondents who take advice are 84.3% and who dont take advice are 15.7%

Graph showing Take advice wise classification of Respondents

Take advice

100.00%
Yes
50.00% 84.30% No
15.70%
0.00%
Yes No
IF YES THEN FROM WHOM YOU TAKE
ADVICE/INFORMATION/REFERENCE

Table 6.15 Source of Advice/Awareness wise classification of respondents

Source of No Of Respondents In Percentage


Advice/Awareness
Professional Advisor 18 19.1%
Friends/Relatives 52 55.3%
Agents/Brokers 17 18.1%
Newspapers/Publications 7 7.4%
Total 94 100%
The table contains 85.45% respondents in source of advice/awareness wise
classification. No of respondents who take advice from professional advisor are
19.1%, friends/relatives are 55.3%, agents/brokers are 18.1% and newspapers and
publications are 7.4%

Graph showing Source of Advice/Awareness wise classification of Respondents

Source of advice/awareness
7.40%

19.10% Professional Advisor


18.10% Friends/Relatives
Agents/Brokers
55.30% Newpapers/Publications

IS YOUR INVESTMENT PORTFOLIO DIVERSIFIED?

Table 6.16 Diversification of Portfolio wise classification of respondents

Portfolio No Of Respondents In Percentage


diversified
Yes 80 82.5%

no 17 17.5%

Total 97 100%
The table contains 88.18% respondents in diversification of portfolio wise
classification. No of respondents who have diversified portfolio are 82.5% and who
dont are 17.5%

Graph showing Diversification of Portfolio wise classification of Respondents

Portfolio Diversified
17.50%

Yes
82.50% No

IF YOU INVEST YOUR MONEY IN BANKS THEN WHAT TYPE OF BANK


YOU PREFER?

Table 6.17 Investment in Bank wise classification of respondents

Investment in bank No Of Respondents In Percentage


Public/Government Banks 63 62.4%
Private Banks 38 37.6%
Total 101 100%
The table contains 91.81% respondents in investment in bank wise classification. No
of respondents who like to invest in public banks are 62.4% and in private banks are
37.6%

Graph showing Investment in bank wise classification of Respondents


Investment in Bank
70.00% 62.40%
60.00%
50.00%
37.60%
40.00%
Public/Government Banks
30.00%
Private Banks
20.00%
10.00%
0.00%
Public/Government Banks Private Banks

WHAT KIND OF RETURN YOU EXPECT FROM YOUR INVESTMENT?

Table 6.18 Kind of Return wise classification of respondents

Kind of Return No Of Respondents In Percentage


Avg. Return 70 68.6%
Above avg. return 31 30.4%
Below avg. return 1 1%
Total 102 100%
The table contains 92.72% respondents in kind of return wise classification. No of
respondents who expect avg. return are 68.6%, above avg. return are 30.4% and
below avg. return are 1%

Graph showing Kind of Return wise classification of Respondents

Kind of Return

68.60%
80.00%

60.00% Avg. Return


30.40%
40.00% Above Avg. Return
20.00%

0.00%
Avg. Return Above Avg. Return
WHAT IS YOUR FINANCIAL OBJECTIVE?

Table 6.19 Financial Objective wise classification of respondents

Financial Objective No Of Respondents In Percentage


Ensure a comfortable 15 14.6%
retirement
Principle safety 14 13.6%
Meet future expenses 43 41.7%
Safeguard against 11 10.7%
Contingencies
Maintain standard of living 20 19.4%
Total 103 100%
The table contains 93.63% respondents in financial objective wise classification. No
of respondents who have financial objective of comfortable retirement are 14.6%,
principle safety are 13.6%, meet future expenses are 41.7%, safeguard against
contingencies are 10.7% and maintain standard of living are 19.4%

Graph showing financial objective wise classification of Respondents

Financial Objective
19.40% 14.60% Ensure a comfortable
10.70% 13.60% Retirement
Principle Safety
41.70%

Meet future expenses

Safeguard against
Contigencies

DO YOU RECONSIDER YOUR FINANCIAL DECISION?

Table 6.20 Reconsider decision wise classification of respondents

Reconsider Decision No Of Respondents In Percentage


Yes 94 94%
No 6 8%
Total 100 100%
The table contains 90.9% respondents in reconsider decision wise classification. No
of respondents who reconsider are 94% and who dont reconsider are 6%
Graph showing Reconsider decision wise classification of Respondents

Reconsider decision
6.00%

Yes
No

94.00%

WHAT TYPE OF INVESTOR YOU ARE?

Table 6.21 Type of Investor wise classification of respondents

Type of Investor No Of Respondents In Percentage

Active 60 58.3%

Passive 43 41.7%

Total 103 100%

The table contains 93.63% respondents in type of investor wise classification. No of


respondents who are active investors are 58.3% and passive investors are 41.7%

Graph showing Type of Investor wise classification of Respondents

Financial Assets Owned


58.60%
60.00%

40.00% Fixed deposits


Mutual funds
20.00% 8.10%

0.00%
Fixed deposits Mutual funds
WERE YOU SATISFIED ON THE PREVIOUS INVESTMENT YOU MADE?

Table 6.22 Satisfaction From Previous Investment Wise Classification Of


Respondents

Satisfaction From No Of Respondents In Percentage


Previous Investment
Yes 89 92.7%

No 7 7.3%

Total 96 100%

The table contains 87.27% respondents in satisfaction from previous investment wise
classification. No of respondents who are satisfied are 92.7% and not satisfied are
7.3%

Graph showing Satisfaction from previous investment wise classification of


Respondent

Satisfaction from Previous Investment


7.30%

Yes
No

92.70%

WHAT IS YOUR FRQUENCY OF INVESTMENT?

Table 6.23 Frequency of Investment wise classification of respondents

Frequency of No Of Respondents In Percentage


Investment
Monthly 30 30%
Quarterly 23 23%
Half Yearly 21 21%
Annually 16 16%
Single3/One Time 10 10%
Total 100 100%
The table contains 90.9% respondents in frequency of investment wise
classification. Respondents who invest monthly are 30%, quarterly are 23%,
half yearly are 21%, annually are 16% and single/one time are 10%

Graph showing Frequency of Investment wise classification of Respondents

Frequency of Investment
16.00%
Monthly
30.00% Quarterly
21.00%
Half Yearly
23.00%
Annually

TYPES OF FINANCIAL ASSETS OWNED BY YOU?

Table 6.24 Financial Assets Owned wise classification of respondents

Financial Assets No Of Respondents In Percentage


Fixed Deposits 58 58.6%
Mutual Funds 8 8.1%
PPF 4 4%
Pension funds 4 4%
Bonds 4 4%
Stocks/Shares 21 21.2%
Total 99 100%
The table contains 90% respondents in financial assets owned wise classification. No
of respondents who own fixed deposits are 58.6%, mutual funds are 8.1%, PPF are
4%, pension funds are 4%, bonds are 10.7% and stocks/shares are 21.2%

Graph showing Investment Options wise classification of Respondents

Financial Assets Owned


Fixed deposits
21.20%
4% Mutual funds
PPF
58.60%
4% Pension Fund
4%
Bonds
8.10%
Stock/Shares
HOW DO YOU SAVE FROM YOUR REGULAR INCOME?

Table 6.26 Savings from regular income wise classification of respondents

Saving Proportion No Of Respondents In Percentage


As per planned schedule 16 15.5%
Something every month 63 61.2%

Whatever is left 22 21.4%

Dont save regularly 2 1.9%


Total 103 100%
The table contains 93.63% respondents in savings from income wise
classification. Respondents who invest as per planned schedule are 15.5%,
every month are 61.2%, whatever is left are 21.4% and dont save regularly are
1.9%

Graph showing Savings from regular income wise classification of Respondents

Save Regular Income


70.00% 61.20%
60.00%
50.00% Planned schedule
40.00%
30.00% 21.40% Every month
15.50%
20.00% Whatever left after expenses
10.00% 1.90%
0.00% Don't save regularly
Planned Every Whatever Don't
schedule month left after save
expenses regularly
CHAPTER-7
FINDINGS
&
CONCLUSIONS
FINDINGS

The major findings of the survey on financial planning of individuals about their preferences

about investing and various investment avenues are enumerated below:

Most of the individuals are falling in age group 20-30 and post
graduated.
Equal number of males and females were part of the survey.
Most of the respondents were salaried and self-employed
professional.
Maximum individuals have income above Rs60,000 and they save
20-30% of their income.
Most of the individuals consider their financial literacy level to be
average and invest their money for returns
These individuals are more interested in banks as an investment
option and maximum of them are risk lover.
Maximum Investors aims at low return as they want to have low risk
attached to it.
Individuals want to hold investment for short term
Maximum individuals get time to manage their investments and
mostly take information, advice from friends or relatives.
They like to have diversified portfolio.
Most of the people prefer to invest in public banks as compared to
private banks
Respondents like to have avg. return and mostly their financial
objective is to meet their future expenses
According to most of the individuals, they reconsider their
investment decision.
Maximum individuals are active investors and they have gained high
satisfaction from their previous investments.
The frequency level of investment is monthly and maximum
financial assets owned by them are fixed deposits
Individuals save every month something from their regular income.
CONCLUSION

From the above study, it can be analysed that most of the individuals are financially
literate who have knowledge and awareness about their investments. The most
preferred investment option is banks as it involves low risk and yields average returns.
As it has been seen that most of the individuals holds fixed deposits, it represents their
interest in banks. They prefer to invest in public banks.

It can be concluded that individuals understand the importance of savings and


investing.
CHAPTER-8
SUGGESTIONS
SUGGESTIONS

After all this it can be stated that the fundamental corner stones of successful
investing are:

Save regularly, Invest regularly


Start Early
Diversify
Use tax shelter

Keep a regular check on investment and modify plans as and when needed.

People need to be educated and informed about Financial Planning and this provides a
greater opportunity to financial product distributer like SPA CAPITAL SERVICES
LIMITED. Companies can arrange for seminars and sessions through which they can
provide information to people and in return can get prospective clients from the
audience. In this way both the audience and the company can also be benefited.
Financial planning is not a onetime activity; the initiative should be taken by financial
planner to put this forward to their client. Company can also provide information
about various other investment options to the individuals in which company deals in
such as mutual funds.

Following are some of the suggestions for investors:

Regular meetings should be conducted between the financial planner


and client to review the investment portfolio.
Alteration should be made in portfolio as per need.
Proper allocation should be done in various instruments according to
the time period of goal.
Choose a right advisor. It is also necessary that advisor should have
enough experience.
CHAPTER-9
LIMITATIONS
The study is subject to the following limitations:

o Study is based on only 110 respondents.


o There are some unanswered questions which may change the outlook of the
study and this provides a scope for further study
o Self-reliable data cannot be independently verified
o Availability of time was a big constraint

LIMITATIONS OF FINANCIAL PLANNING

Reasons which can be possible for not undertaking financial planning are:

People want to start financial planning later They need to understand that
financial planning is needed at every stage of life and earlier we start is better.
Waiting to have money to do financial planning - Individuals should realize
that they need a plan to have money and not money to have a plan.
Lack of knowledge there are plenty of books and websites that can help to
gain the knowledge of financial planning. A person can even engage a
certified financial planner for this purpose.

Reasons for failure of financial plan:

No financial education
Leaving planning options and choices to others
Relying on advisors
Give no priority to personal finance management
No clear or specified financial goals
BIBILOGRAPHY
BOOKS

Investment Analysis And Portfolio Management By:- Prasanna Chandra (Published By


Tata Mcgraw-Hill Education Private Limited Edition Third)

MAGAZINES

International journal of management research and business strategy


Business & Economics (September/October)

RESEARCH PAPERS

Gitman & Bacon (1985) Comprehensive Personal Financial Planning: An


Emerging Opportunity
Rod (2014) The Psychology Of Investment Behavior
Sellappan, Jamuna, Kavitha Investment Attitude Of Women Towards
Different Sources Of Securities - A Factor Analysis Approach
Chakraborty & Digal Saving And Investment Behaviour Of Individual
Households-An Empirical
Patel & Patel A Study Of Investment Perspective Of Salaried People (Private
Sector)
Jagongo & Mutswenje A Survey Of The Factors Influencing Investment
Decisions: The Case Of Individual Investors At The Nse
Shivakumar1& Thimmaiah1 Savings And Investment Behavior Of School
Teachers

WEBSITES

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.html
http://www.mywealthguide.com/persnl.html
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
http://www.spacapital.com/capital.aspx
http://www.fpsbindia.org/scripts/LearnFinancialPlanningBasics.aspx
http://www.ifinltd.in/OtherServices/FinancialPlanning/Components-Of-
FP
https://www.quora.com/Which-are-the-high-risk-high-return-mutual-
funds-in-India
http://www.sharetipsinfo.com/flowdiagram.html
http://www.hdfcfund.com/KC/ContentDisplay.aspx?ReportID=1D6A68B
5-ACF7-4BC3-9EFE-EA18B1D88EE3
ANNEXURES
QUESTIONNAIRE

Age Group
20-30
31-40
41-50
50 and Above

Gender
Male
Female

Educational Qualification
Post Graduate
Graduate
Non Graduate
Others

Occupation
Salaried
Self Employed Professional
Self Employed Non Professional
Retired

Monthly Income
Up to Rs.20,000
Rs.20,001-40,000
Rs.40,001-60,000
Above Rs.60,000

What percentage of income do you save?


0-10%
10-20%
20-30%
30-40%

How do you rate your financial literacy level?


Very good
Good
Average
Poor
Do you invest your money?
Yes
N0
If yes then which is the best investment option according to you?
Mutual Funds
Stock/Shares
Banks
Commodities
Real Estate
Post Office
Insurance
Any other

What kind of investor you are?


Risk Adverse
Risk Lover

Which investment pattern you prefer?


Low Risk Low Return
High Risk High Return

What is your investment time duration?


Long Term
Short Term

Do you have enough time to manage the investment affairs?


Yes
No

Do you take any professional advice/information/refernce regarding your investment


or you take your investment decision at your own choice?
Yes
No

If yes then from whom you take advice/information/reference?


Professional Advisor
Friends/Relatives
Agents/Brokers
Newspapers/Publications

Is your investment portfolio diversified?


Yes
No

If you invest your money in banks then what type of bank you prefer?
Public/Government Banks
Private Banks
What kind of investment return you expect from your investment?
Avg. Return
Above Avg. Return
Below Avg. Return

What is your financial objective?


Ensure a comfortable Retirement
Principle safety
Meet future expenses
Safeguard against Contingencies
Maintain standard of living

Do you reconsider your investment decision?


Yes
No

What type of investor you are?


Active
Passive

Were you satisfied on the previous investment you made?


Yes
No

What is your frequency of investment?


Monthly
Quarterly
Half Yearly
Annually
Single/One Time

Types of financial asset owned by you?


Fixed Deposits
Mutual Funds
PPF
Pension Fund
Bonds
Stock/Shares

How do you save from your regular income?


Saved as per planned schedule
Save something every month
Save whatever is left after meeting expenses?
Don't save regularly as expenses exceed income