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Swati Gupta Project Final Report

Swati Gupta Project Final Report

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Published by: Nishant Goldy on Nov 24, 2010
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Submitted in fulfillment of Summer Training Program for M.B.A. (Finance and Marketing) Session 2009-2011

Submitted to Mr. Vivek Singh (Branch Head)

Submitted By Swati Gupta

Mr. Dheerendra Kumar (Area Manager)

Central Institute of Management & Technology
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U.P. Technical University, Lucknow

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which helped me in the completion of the project. I owe my sincere regards and feel extremely grateful. for inspiring me to do this research project. which has contributed a great in the completion of the project.U.A.T ACKNOWLEGDEMENT I express my deepest sense of gratitude of Mr.M.I.BAJAJ CAPITAL LTD.I. Despite his busy schedule he granted me a generous amount of his time with great interest.T.M. C.) IIIrd Semester C.T. (F&M. During the whole research work he guided and provided me the valuable inputs. (U. A special thank to Sir who constantly monitored my work and preceded support and guidance the project I am thankful to all those respondents who spared their valuable time attending to my questions.B. SWATI GUPTA M.P.) 2009-2011 Page | 4 .


B. IIIrd Semester 2009-2011 Page | 6 .P. Full time Programme Central Institute of Management & Technology U. Lucknow. Technical University.T DECLARATION I hereby declare that the following documented project report titled "360 degree financial planning and awareness of Bajaj Capital in Lucknow" is an authentic work done by me.BAJAJ CAPITAL LTD.A. The study was undertaken as a part of the course curriculum of M.I.B. SWATI GUPTA M. C.M. I here by declare that the study has not been submitted to any other institute/organization for the reference.A.


an investment decision is a trade off between risk and return. mix. Page | 8 . of investment and disinvestments. Further. changed expectations and ends. All investment choices are made at points of time in accordance with the personal investment ends and in contemplation of an uncertain future. It entails arriving at numerous decisions such as type. such decisions making has not only to be continuous but rational too. from time to time. therefore. Broadly speaking.T PREFACE Investment is the sacrifice of certain present value for the uncertain future reward. Investors in securities will.M. the reliable bases for reasoned expectations become more and more vague as one conceives of the distant future. timing. grade etc.I. C. amount. reappraise and reevaluate their various investment commitments in the light of new information. Since investments in securities are revocable. investment ends are transient and investment environment is fluid.BAJAJ CAPITAL LTD.


T COMPANY PROFILE Bajaj Capital is one of India’s leading Financial Services companies offering Free Advice on Investments. and NRIs… all under one roof. High Net worth Individuals. Insurance. We also have a wide range of products and services for Corporates. They ignite hope and kindle in us the passion to stretch our limits. C. Dreams inspire us to excel. At Bajaj Capital. Financial Planning. Page | 10 . Retirement Planning.M. we believe in dreaming big.I. We also believe that nothing can or should stop us from realising our dreams… and financial constraints should be the last thing to stop anyone. Tax Saving. Children’s Future Planning and other services.BAJAJ CAPITAL LTD.

Today.000 top institutions and corporate houses every year. we are a one of the largest financial planning and investment advisory companies in India. Wide range of services We offer a comprehensive range of services including financial planning and investment advice. and Page | 11 . and plan their financial lives.T Four decades of excellence For over four decades. we have been helping people realise their aspirations by helping them make their wealth grow. These services and products are delivered through our network of 134 Bajaj Capital Investment Centres located all over the country.I. we also provide investment assistance by helping you complete all the formalities. both public and private. In addition.M. with a strong presence all over the country. and help you keep regular track of your investments. and the entire gamut of financial instruments and investment products of almost all major companies. We are also a SEBI-approved Category I Merchant Banker. We raise resources for over 1.BAJAJ CAPITAL LTD. We take pride in serving our customers – both individual and institutional – and are known for our strong professionalism and work ethics. C.



offer specialised services to Non-Resident Indian (NRIs) and High Networth Clients.

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What you can expect from us  Sound, research-based advice  Unbiased, independent and need-based advice  Prompt, courteous service  Honest, ethical dealings  Accessibility

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The History of Bajaj Capital Bajaj Capital has contributed to the growth of the Indian Capital Market at every step. In 1965, we were the first to innovate the Companies Fixed Deposit. Today, we are playing an active role in the growth of the Indian Mutual Fund industry. We are also working closely with private insurance companies to deepen India's insurance market. Here is a brief gist of our journey throug the years.

1964 Bajaj Capital sets up its first Investment Centre™ in New Delhi to guide individual investors on where, when and how to invest.
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then known as Associated Hotels of India Ltd.. C. 1966 Bajaj Capital expands its product range to include all UTI schemes and Government saving schemes in addition to Company Fixed Deposits. Page | 15 . the company introduces an innovative financial instrument – the Company Fixed Deposit. 1965 Bajaj Capital is incorporated as a Company.I.M. EIL Ltd. 1975 Bajaj Capital starts offering 'need-based' investment advice to investors. Unit Trust of India (UTI) is incorporated in the same year.T India's first Mutual Fund. (Oberoi Hotels. right from drafting the prospectus to marketing the issue.BAJAJ CAPITAL LTD. which would later be known as 'Financial Planning' in the investment world. In the same year. 1969 Bajaj Capital manages its first Equity issue (through an associate company) of Grauer & Wells India Ltd.) becomes the first company to raise resources through Company Fixed Deposits.

NHPC. Bajaj Capital plays an active role in all the schemes as 'Principal Brokers' 1986 Public Sector Undertakings (PSUs) begin making public issues of bonds MTNL. Bajaj Capital plays a significant role in fund mobilisation for all these players. thus opening the floodgates for growth of retail investment market in India. IRFC offer a series of Bond Issues. followed by IOC. BPCL. 1991 SBI issues India Development Bonds for NRIs.T 1981 SAIL becomes the first government company to accept deposits. BHEL. 1987 SBI leads the launch of Public Sector Mutual Funds in India. Bajaj Capital is among the top ranks of resource mobilisers. C. Bajaj Capital becomes the top Page | 16 .M.BAJAJ CAPITAL LTD. HPCL and others.I.

Bajaj Capital is the co-manager in all these offerings and consistently ranks among the top five mobilisers on an all-India basis. Bajaj Capital consolidates its position as India's largest retail distributor of Mutual Funds. Bajaj Capital plays an active role and is ranked among the top mobilisers for all these schemes. 1999 Bajaj Capital begins marketing Life and General Insurance products of LIC and GIC (through associate firms) in anticipation of opening up of the Insurance Sector.T mobiliser with collections of over US $20 million. followed by Birla and Alliance in the following years. 1993 The first private sector Mutual Fund – Kothari Pioneer – is launched.BAJAJ CAPITAL LTD. 1997 Private sector players lead the revival of Mutual Funds in India through Openended Debt schemes. 1995 IDBI and ICICI begin issuing their series of Bonds for retail investors. Bajaj Capital achieves the milestone of becoming the top 'Pension Page | 17 .M. C.I.

Bajaj Capital offers 'full-service merchant banking' including structuring. the company introduced the International College of Financial Planning. a coveted professional qualification.' The Company offers all kinds of financial products. management and marketing of Capital issues.T Scheme' seller in India and launches marketing of GIC's Health Insurance schemes.M. 2000 Bajaj Capital implements its vision of being a 'One-stop Financial Supermarket.BAJAJ CAPITAL LTD. 2002 The company focuses on creating investor awareness for Financial Planning and need-based investing. Page | 18 . Bajaj Capital reinvents 'Financial Planning' in its international sense and upgrades its entire team of Investment Experts into Financial Planners. including the entire range of investment and insurance products through its Investment Centre.I. To achieve this goal. C. The graduates of this institute become Certified Financial Planners (CFPs).

2005 Bajaj Capital launches 360° Financial Planning. a series of wealth creation seminars are launched all over the country. a software-based programme aimed at encouraging scientific and holistic investing. 2007 Bajaj Capital launches Stock Broking and Depository (Demat) Services. 2008 Bajaj Capital launches Just Trade. making Bajaj Capital a household name. Mutual Funds.T 2004 Bajaj Capital obtains the All India Insurance Broking Licence. an online Platform for investing in Equities. IPO's Page | 19 .M. Simultaneously.BAJAJ CAPITAL LTD.I. C.

It is our continuous endeavour to be a trustworthy advisor to our clients.T MISSION.  To build an amicable environment that accords respect to every individual and permits their personal growth.  To create value for all stake holders by ensuring profitable growth. constant innovation in services and use of the latest technology.BAJAJ CAPITAL LTD.I. reliable and efficient provider of Financial Services.  To always give honest and unbiased financial advice and earn our clients' everlasting trust.  To offer unparalleled quality of service through complete knowledge of products. AIMS & OBJECTIVES Bajaj Capital's Mission Statement The focus of our organisation is to be the most useful.  To utilise the power of teamwork to function as a family and build a seamless organisation.M. helping them achieve their financial goals. Page | 20 . Aims  To serve our clients with utmost dedication and integrity so that we exceed their expectations and build enduring relationships. C.  To serve the community by educating individuals on the merits of Financial Planning and in turn help shape a financially strong society.

I.000 NRI clients across the globe  Personalised wealth management advice  24 x 7 online accessibility through www. C. MBAs.bajajcapital. CFPs. MBEs.T  Why Invest Through Bajaj Capital  Wide range of products and services  41 years experience as Investment Advisors and Financial Planners  More than eight lakh satisfied clients all over India  Countrywide network of 134 branches  Over 12.BAJAJ CAPITAL LTD. Insurance experts. Legal experts and others  SEBI-Approved Category I Merchant Bankers  Group Co BCIBL is an IRDA-licensed Direct Insurance Broker Page | 21 . CSs.com  Strong team of qualified and experienced professionals including CAs.M.

Bajaj A visionary par excellence.T Who’s at Bajaj Capital Mr. In fact. he is the Founding Chairman of the Association of Financial Planners (AFP). He is a highly respected figure in the field of institutional and personal finance and Company FDs. ethics and values are the guiding principles of the organisation. He is also amongst the first Page | 22 .I. Chairman K. Bajaj has been instrumental in shaping Bajaj Capital’s emergence as one of India’s largest Investment Advisory companies. and Health. Mr. Rajiv Deep Bajaj Vice Chairman & Managing Director A qualified Financial Planner. C.M. Mr Bajaj is also a prolific writer and has written over 200 articles on diverse issues such as Personal Finance.K.BAJAJ CAPITAL LTD. Mr K. Economic Affairs. a pioneer and a leader.K. Mr Rajiv Deep Bajaj was the first to introduce the concept of Financial Planning in India. His emphasis on honesty.

He has recently pursued an Executive MBA in International Wealth Management under an exchange program between University of Geneva.M. USA. Rajiv Deep Bajaj for his strengths as a powerful orator and writer. Page | 23 .I. Pittsburgh. Financial Advisory. His youthful energy. Switzerland and Carnegie Mellon University. London.BAJAJ CAPITAL LTD.T batch of 25 Certified Financial Planners (CFP tm) designation holders in India. A Post-graduate in Management and holder of an International Certificate for Financial Advisors from the Chartered Insurance Institute. Business Today. C. The Media and Industry honchos have regularly acclaimed Mr. dynamic leadership. CNBC and Aaj Tak. His personal life goal is to spread ‘Financial Education’ amongst the Indian masses in order to increase their knowledge base and shift their perspective from ‘Saving to Investing’. Star TV. Mr Rajiv Deep Bajaj has played a pivotal role in expanding Bajaj Capital's reach across the country. His views on various Investment Strategy and Financial Planning-related issues are regularly flashed in some of the leading media entities like The Economic Times. Insurance Broking and Financial Planning have strengthened Bajaj Capital. vision and 16 years strategic management experience in Banking.

London.BAJAJ CAPITAL LTD. and by using various tools of financial planning to offer them a solution to meet his requirements. all over India. and has played a major role in implementing the ERP software and Ecommerce activities in the company Mr. Thanks to him. worked on various projects which included developments at alternate channel of distribution like Broker's associations. and holds an International Certificate for Financial Advisors from the Chartered Insurance Institute.T Mr. Anil Chopra is the Chief Executive Officer & Director of Bajaj Capital Limited. Chopra has been instrumental in expanding the branch network of Bajaj Capital Ltd. Mr. Sanjiv Bajaj Joint Managing Director Mr. He joined the Company in 1984. A Chartered Accountant and a Certified Financial Planner.etc. From here. he moved on to Investment Advisory services. C. He is a Post-graduate in Business Management with specialisation in Finance.M. Mr Sanjiv Bajaj has a keen interest in IT. which included understanding the client's needs. Sanjiv Bajaj started his career in 1995 as managerial trainee. Bajaj Capital is today the largest individual agent for LIC..I.. Anil Chopra CEO & Director Mr. Mr Sanjiv Bajaj is versatile personality with diverse areas of interest. Mr Chopra is Page | 24 .

We help our clients to attain financial stability through wise investments.  The long trunk symbolises continuous exploration. Page | 25 .  The large ears of Lord Ganesha remind us to hear more. His most valuable contribution.I.  The heavy posture of Ganesha symbolises stability.  The weight of the trunk on the mouth symbolises silence.T credited with introducing international accounting and HR practices in the organisation. has been in building up a financially literate society and making Bajaj Capital a strong retail brand. We listen carefully to our clients to understand their needs. C. He is considered an authority. and is widely sought after by the media for quotes on key developments in the industry. however.BAJAJ CAPITAL LTD. We explore all avenues to provide the best investment opportunities for our clients.M. without blowing our own trumpet. We work silently. The Significance of Our Logo Our logo depicts Lord Ganesha who is the source of all our values and ethics in business.

 The letters are in red. the guru and counsellor of the Gods. We offer our clients sage counsel to make their wealth grow.BAJAJ CAPITAL LTD.  Our logo has a yellow background. According to Vedic lore. White is the colour of satva guna.M. Page | 26 .I. which symbolises wealth.  The white streak represents the trunk of Lord Ganesha. it is also the colour associated with Brihaspati. and implies our selfless commitment to your lifelong happiness.T  Lord Ganesha is known as the remover of obstacles and bestower of prosperity. Yellow is the colour of gold. C. Red is the colour rajas – symbolising power and incessant activity. It symbolises our aggressive quest for your well-being and happiness. We emulate His example and try our best to help our clients attain prosperity by proper financial planning.

Times change. But what happens if things take an untoward turn? Or. C. People change. So does life. if there is an eventuality? Perhaps it's time for you to change the way you plan your investments. Learn more about Bajaj Capital's 360º Financial Planning Page | 27 .I.T 3600 FINANCIAL PLANNING AND AWARENESS OF BAJAJ CAPITAL Experience the power of Bajaj Capital's 360 The only thing permanent in life is change.. Tomorrow.BAJAJ CAPITAL LTD.M.. You expect life to be much better tomorrow than it is today. you hope to fulfil all your dreams and aspirations.

M.T do you need Bajaj Capital's 360° Financial Planning? needs 360° Financial Planning? is 360° Financial Planning all about? will 360° Financial Planning help me? do I get my personalised 360° Financial Plan created? Page | 28 .BAJAJ CAPITAL LTD.I. •Why •Who •What •How •How C.

Financial Planning? Page | 29 .M. Now. For example.T Don’t just dream. you too can give yourself the 360° Financial Planning edge! Get your Financial Plan prepared now Why do you need Bajaj Capital's 360° Financial Planning? You may have many dreams. you can utilise your limited resources to the fullest. C.I.. Plan! Financial Planning is becoming increasingly popular in developed countries all over the world. 360° Financial Planning helps you see the big picture and invest for specific long-term Who and needs short-term 360° goals well in time.. with a little help from Bajaj Capital. needs and desires.BAJAJ CAPITAL LTD. you could be dreaming of: •Owning a new car Buying a dream house Providing your children with the best education Planning a grand wedding for your children •Having a great time after your retirement But in today's world of skyrocketing costs and increasing inflation. how many of these dreams can you hope to turn into reality? By planning well.

buying assets like homes. it involves: •Identifying your current financial status Listing and prioritising your goals Creating a sound investment plan to achieve them •Monitoring the plan to facilitate swift corrective action.BAJAJ CAPITAL LTD. And realising dreams is easier when you work to a plan that's: •Reliable •Proven Realistic Bajaj Capital's 360° Financial Planning Programme could make a difference to all those who wish to lead a worry-free. or providing for your children's education and wedding).T Everyone does! Because everyone has a right to dream. vehicles. With the help of 360°Financial Planning. if needed 360° Financial Planning is based on the premise that every individual has certain basic financial needs that are expressed at various stages of life (getting married. Broadly. What is 360° Financial Planning all about? 360° Financial Planning is a unique software-based simulation that takes a holistic view of your life-long financial needs and charts a personalised investment strategy to help you meet them. you can Page | 30 . financially secure life.M. C.I.

How will 360° Financial Planning help me? Instead of investing in an ad-hoc manner. your family and your assets Future Planning: To give your children a financially secure •Insurance •Children's future •Retirement Planning: Because retirement is a time to relax. 360° Financial Planning comprises: •Investment •Cash Planning: To make your wealth grow Flow Planning: To provide for assets and meet the periodic cash requirements •Tax Planning: To save on taxes and increase your income Planning: To protect yourself.M.BAJAJ CAPITAL LTD. Our Financial Planners then use the especially-created Page | 31 . Briefly. C.I. all-round view. 360° Financial Planning helps you take a holistic. not to get worried Top How do I get my personalised 360° Financial Plan created? Here’s how Financial Plans are prepared: •The process begins with identifying your needs with the help of the Need Analysis Form.T prepare yourself well in time for all these goals.

A Financial Planning session takes just 15 minutes Page | 32 . •Once implemented. our experts keep regular track of your investments. our experts work out an investment strategy.T 360° Financial Planning software to generate a personalised Snapshot. C. Based on the Snapshot.I.BAJAJ CAPITAL LTD.M. at every stage of your future life. The Snapshot gives you a graphic account of all your financial requirements.

We can help you plan your investments so that you can reap adequate benefits and achieve your financial goals. Investment Planning is important because it helps you to derive the maximum benefit from your Page | 33 . Once you have saved enough to take care of emergencies. and prioritising them.T Investment Planning Everyone needs to save for a rainy day.BAJAJ CAPITAL LTD. C. Investment Planning involves identifying your financial goals throughout your life. you should start thinking about investing and to make your money grow.M.I. Bajaj Capital’s Investment Planning Service includes:  Risk Profiling  Asset Allocation and Portfolio Construction  Creation and Accumulation of Wealth through Systematic Investment Plans (SIP)  Regular review of progress and Portfolio Rebalancing Essentially.

Page | 34 . the three prime criteria of evaluating any investment option are liquidity. needs and goals. For most investors.I. C. Your success as an investor depends upon your ability to choose the right investment options. Investment Planning also helps you to decide upon the right investment strategy. This. your investment strategy would also depend upon your age.BAJAJ CAPITAL LTD. Investment Planning also helps you to strike a balance between risk and returns. These aspects are typically taken care of during investment planning. personal circumstances and your risk appetite.M. it is possible to arrive at an optimal mix of risk and returns. By prudent planning. that suits your particular needs and requirements. depends on your requirements. Besides your individual requirement.T investments. safety and return. however. in turn.

and what is it that you can invest without causing a strain on yourself. So does it involve looking at future cash flows only? Not really. This is the amount that you should look at saving for meeting your financial goals.T What Is Cash Flow Planning? In simple terms. Page | 35 . C.M. It is a record of your income and expenses.BAJAJ CAPITAL LTD. Though this sounds simple. and you will realize that you could have a potential savings amount within each month of your working life. You should always do a cash flow for yourself as on date. The best way of doing this is to have a personal budget. Cash flow planning is the first thing that should be done prior to starting an investment exercise. very few people 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. because only then will you be in a position to know how your finances look like.I. It will also enable you to understand if a particular investment matches with your flow requirement. cash flow refers to the inflow and outflow of money.

Page | 36 . There has never been a bigger need than today for families and individuals to work out cash flow plans. and investing in a systematic and regular manner. a company could easily spend more than its revenue. and gives a crystal clear view (as much as is possible with inflation and the interest rate scenario). Without a viable cash flow plan. besides bringing about a change in the spending habits. The principles that apply to corporate finance and to our personal lives are largely the same. C.I. Of course. it goes without saying that creating a plan is not enough. It brings down in numbers what your financial future has in store for you.M. One also needs to implement the plan. Unfortunately. Without proper cash flow planning one could easily get caught in the debt trap. putting it in peril.BAJAJ CAPITAL LTD. and what would it mean to you to withdraw from your portfolio after a couple of years.T Why is cash flow planning important? Cash flow plans are commonly used by business houses. most of us do not realise that a cash flow plan is as important for people like us as well. Cash flow plan brings you face-to-face with what you should ideally be saving.



Tax Planning - Introduction Proper tax planning is a basic duty of every person which should be carried out religiously. Basically, there are three steps in tax planning exercise. These three steps in tax planning are: Calculate your taxable income under all heads ie, 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) using a simple tax rate table, given on next page. After you have calculated the amount of your tax liability. You have two options to choose from: 1.

Pay your tax (No tax planning required) 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
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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, that the post-tax yield is the highest possible keeping in view the basic parameters of safety and liquidity

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The Need For Insurance Planning

"Insurance is not for the person who passes 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.

Insurance Planning is concerned with ensuring adequate coverage against insurable risks. Calculating the right level of risk cover is a specialised 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
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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).the risk of your dreams going awry due to events beyond your control Page | 40 . There is no risk not worth insuring yourself against.I. the need for proper insurance planning. insurance protects us from the contingencies that could affect us. In other words. simply put. and insurance should first and foremost be looked as a measure to guard against risks . without worrying about the financial impact of events that could hamper it.BAJAJ CAPITAL LTD.M. So what are the risks that we run? To name a few .the risk on our lives that is. If we can imagine a situation where our goals are disturbed by acts beyond our control. is the cover for the risks that we run during our lives. we can realise the relevance of insurance in our lives. Insurance enables us to live our lives to the fullest.T or the same level of coverage for the same amount amount of premium or the same level of coverage for a reduced premium. the worries of replacement of the incomes that we contribute to the running of the household). Hence. Insurance Planning takes into account the risks that surround you and then provides an adequate coverage against those risks. Insurance. C.

T Children's Future Planning Like every parent. C. All parents want to give the best possible upbringing to their children. This includes good education and security. Good education has always been the passport to a secure future.BAJAJ CAPITAL LTD.M. career opportunities have grown manifold. and it will be time to provide for his or her higher education and wedding. Children's Future Planning acquires added importance because children's education and wedding are high priority life goals. and to provide for an adequate security cover during their growing years. Soon. you too must be overjoyed to watch your child grow.I. in case of any eventuality. The purpose of Children's Future Planning is to create a corpus for foreseeable expenditures such as those on higher education and wedding. and there are many professional course that your Page | 41 . Today. which can neither be postponed nor can there be a compromise on the amount. your little bundle of joy will grow up.

Being unit-linked. savings alone is no longer enough.BAJAJ CAPITAL LTD. Page | 42 . If your child is one-year-old today. assuming an annual rate of inflation of 6%.equity. For example. and provide for a security cover in the event of the parent's unfortunate demise. costs of higher education have also increased exponentially. C.T child can aspire for. you as a parent. However. For example. after 17 years when he/she goes to college. 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. you may require a sum of Rs 6. he could suggest a Children's Future Plan offered by any good insurance company. There are many products which your Financial Planner can use to achieve the above objectives. the cost of a professional degree today is approximately Rs 2.3 lakhs. Especially in today's context.M. Like most parents. Children's plans are also available under unit-linked option. to build a corpus for your child's higher education. For ensuring adequate funding of your child's education.5 lakhs. they offer access to investments in all kinds of asset classes .I. debt and cash. you might be saving regularly to ensure a safe tomorrow for your child. However.

BAJAJ CAPITAL LTD.I. unlike developed nations. because. the number of working years haven’t. C. But retirement is a reality for every working person. This is extremely important. Page | 43 . 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. However.M.T Retirement Planning Some like it. Some don’t. Retirement Planning acquires added importance because of the fact that though longevity has increased. Most young people today think of retirement as a distant reality. India does not have a social security net.

BAJAJ CAPITAL LTD. This is done after taking inflation and time value of money into account. The asset allocation and selection of investment vehicles keep changing as your risk-bearing capacity diminishes.I.M.  Building your Retirement Corpus using Systematic Investment Plans (SIPs) and other long-term growth orient products  Ensuring adequate post-retirement income through safe investments.T Our Retirement Planning Service involves:  Computing that amount that would be required post-retirement. Page | 44 . C.

you need to make prudent investment decisions during your working life. Page | 45 . thus putting your hard-earned money to work for you in future. To achieve a hassle-free retired life. C. Retirement should be the best 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.M. But it is easier said than done.T Plan for A Worry Free Retirement In simple words.I. retirement planning means making sure you will have enough money to live on after retiring from work.BAJAJ CAPITAL LTD.

no one gets Page | 46 . There are many reasons for the working individuals to secure their future emergence of nuclear families and its attendant insecurity.I. the growing trends of seeking early retirement and rising health risks are among few important risks. does not have state-sponsored social security for the retired people. you are increasingly likely to be responsible for providing for your own needs. Life takes its own course and from the poorest to the wealthiest. Although the compulsory savings in provident fund through both employee and employer contributions should offer some cushion. increasing uncertainties in personal and professional life.BAJAJ CAPITAL LTD. Besides falling interest rates and the sustained increase in the cost of living make it a compelling case for individuals to plan their finances to fund their retired life. unlike other countries. Planning for retirement is as important as planning your career and marriage. That is why retirement planning is extreme ly important for every one. in the new economic era. it may not be enough to support you throughout your retirement.T Why is it important? India. or income during retirement. things are changing.M. And after several decades when pensions provided many people with a large chunk of money they needed to live comfortably after they retired. While you may be entitled to a pension. C.

T spared. Page | 47 . "Everyone grows older". without realising. Right decisions with the help of proper planning.M.BAJAJ CAPITAL LTD. The future depends to a great extent on the choices you make today. taken at the right time will assure smile and success at the time of retirement. However. we assume that old age is never going to touch us.I. We get older every day. C.

thus putting your hard-earned money to work for you in future.BAJAJ CAPITAL LTD. To achieve a hassle-free retired life.M. 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. Retirement should be the best period of your life. C.T PLAN FOR A WORRY FREE RETIREMENT In simple words. you need to make prudent investment decisions during your working life. retirement planning means making sure you will have enough money to live on after retiring from work. But it is easier said than done.I. Page | 48 .

There are many reasons for the working individuals to secure their future emergence of nuclear families and its attendant insecurity. no one gets Page | 49 .I. you are increasingly likely to be responsible for providing for your own needs. Life takes its own course and from the poorest to the wealthiest. C. unlike other countries. Although the compulsory savings in provident fund through both employee and employer contributions should offer some cushion. While you may be entitled to a pension.T Why is it important? India. increasing uncertainties in personal and professional life.BAJAJ CAPITAL LTD. the growing trends of seeking early retirement and rising health risks are among few important risks. does not have state-sponsored social security for the retired people. Planning for retirement is as important as planning your career and marriage. things are changing. And after several decades when pensions provided many people with a large chunk of money they needed to live comfortably after they retired. in the new economic era.M. Besides falling interest rates and the sustained increase in the cost of living make it a compelling case for individuals to plan their finances to fund their retired life. it may not be enough to support you throughout your retirement. That is why retirement planning is extreme ly important for every one. or income during retirement.

without realising. Page | 50 . However. "Everyone grows older".BAJAJ CAPITAL LTD. Right decisions with the help of proper planning. taken at the right time will assure smile and success at the time of retirement.T spared. C. we assume that old age is never going to touch us. The future depends to a great extent on the choices you make today.M. We get older every day.I.

T INVESTMENTS Mutual Funds are among the hottest favourites with all types of investors.M. mutual funds represent the hands-off approach to entering the equity market. There are a wide variety of mutual funds that are viable investment avenues to meet a wide variety of financial goals. This section explains the various aspects of Mutual Funds.I. • What are Mutual Funds? • Why choose Mutual Funds? • Types of Mutual Funds • Snapshot of Mutual Fund Schemes • Choosing the Right Mutual Fund Scheme • How to calculate the growth of your Mutual Funds Investments? • Points to Remember • Glossary What are Mutual Funds ? A Mutual Fund is a trust that pools together the savings of a number of investors who share a common financial goal. The fund manager invests this pool of money in securities -. depending upon the objectives of the scheme. C.BAJAJ CAPITAL LTD. In fact. Investing in mutual funds ranks among one of the preferred ways of creating wealth over the long term.ranging from shares and debentures to money market instruments or in a mixture of equity and debt. Page | 51 .

Systematic Withdrawal Plans and Dividend Investment Plans. •Flexibility: Through features such as Systematic Investment Plans.M.BAJAJ CAPITAL LTD. the associated risks are greatly reduced. demat costs. With their mix of professional qualification and market knowledge. •Liquidity: Investments in Mutual Funds are completely liquid and can be redeemed at their Net Assets Value-related price on any working day.T Why choose Mutual Funds ? Investing in Mutual Funds offers several benefits: •Professional expertise: Fund managers are professionals who track the market on an on-going basis.I. Page | 52 . the proportion allocated to different assets and the fund manager’s investment strategy. Mutual Funds cost less. depository costs etc. you can systematically invest or withdraw funds according to your needs and convenience. •Transparency: You will always have access to up-to-date information on the value of your investment in addition to the complete portfolio of investments. they are better placed than the average investor to understand the markets •Diversification: Since a Mutual Fund scheme invests in number of stocks and/or debentures. C. •Relatively less expensive: When compared to direct investments in the capital market. This is due to savings in brokerage costs.

M.T regulated market: All Mutual Funds are registered with SEBI and function within the provisions and regulations that protect the interests of investors.I.BAJAJ CAPITAL LTD. •SEBI C. AMFI is the supervisory body of the Mutual Funds industry. Page | 53 .

Whether as the foundation of your investment program or as a supplement. C. which comprise major indices such as the BSE Sensex or the S&P CNX Nifty in the same weightage as the respective indice. The different types of Mutual Funds are as follows: Diversified Equity Mutual Fund Scheme A mutual fund scheme that achieves the benefits of diversification by investing in the stocks of companies across a large number of sectors. As a result.I. financial position. Index Funds These funds invest in the stocks of companies. and offering tax deduction to investors under section 80 C of the Income Tax Act. whatever your age.BAJAJ CAPITAL LTD.M. it minimizes the risk of exposure to a single company or sector. Mutual Fund schemes can help you meet your financial goals. Sectoral Equity Mutual Fund Scheme A mutual fund scheme which focuses on investments in the equity of companies across a limited number of sectors -usually one to three. Equity Linked Tax Saving Schemes (ELSS) Mutual Fund schemes investing predominantly in equity.T Types of Funds There are a wide variety of Mutual Fund schemes that cater to your needs. Currently rebate u/s 80C can be Page | 54 . risk tolerance and return expectation.

C.BAJAJ CAPITAL LTD. A lock-in of 3 years is mandatory. usually by way of dividend. Monthly Income Plan Scheme A mutual fund scheme which aims at providing regular income (not necessarily monthly.M. securities. funds invest usually linked in to an index. to ensure regularity of returns. Funds exclusively government Balanced Funds The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. don't get misled by the name) to the unitholder. with investments predominantly in debt securities (upto 95%) of corporates and the government.00. and having a smaller component of equity investments (5% to 15%)to ensure higher return.T availed up to a maximum investment of Rs 1. They generally invest 40-60% in equity and debt instruments. Income schemes Debt oriented schemes investing in fixed income securities such as bonds.000. corporate debentures.I. Floating-Rate Debt Fund A fund comprising of bonds for which the interest rate is adjusted periodically according to Gilt a predetermined These formula. Government securities and money market instruments. Fund of Funds Page | 55 .

Short. Just as fund invests in stocks or bonds on your behalf. Mutual Investment Fund Type Those Treasury Bills. funds CDs. of Papers. surplus 3 weeks Call Money.M.T A Fund of Funds (FoF) is a mutual fund scheme that invests in other mutual fund schemes. Call short-term + Negligible Commercial accounts or Deposits.3 weeks + Certificate of funds in park their who Objective Risk Portfolio invest horizon Who should Investment Commercial Papers.12 conservative months Page | 56 . current 2 days . Liquidity Moderate Money Income Market Reservation Capital Money bank deposits Shortterm Funds (Floating shortterm) Liquidity Moderate Rate Income term Government securities. a FoF invests in other mutual fund schemes. C.short-term 3 months + Little Interest Treasury Bills.I. Regular Income Credit Risk & Predominantly Salaried Interest Rate Debentures.BAJAJ CAPITAL LTD. Those with Bond Funds & More than 9 .

To generate Portfolio NAV Index Funds commensurate with with returns of performance respective indices Balanced Capital Balanced Growth Funds & Market ratio etc index BSE.T Government (Floating Longterm) Security Gilt Funds Income Risk securities investors Aggressive Long-term Equity Capital Funds Appreciation look. C. varies indices like Aggressive 3 years plus High Risk Stocks long term out investors with 3 years plus Risk Corporate Bonds Salaried & Interest Rate Government conservative 12 months & more & securities. NIFTY investors.M.BAJAJ CAPITAL LTD. investors returns that are of equity and Risk debt funds to Moderate igher Aggressive & 2 years plus Regular Income and Interest ensure Rate Risk returns at lower risk How to choose the right Mutual Fund scheme Page | 57 .I.

family commitments. the following steps must be given due weightage to decide on the right type of scheme: 1. time horizon of your investment.BAJAJ CAPITAL LTD. Therefore. Choosing your investment mix depends on factors such as your risk appetite. level of income and expenses. your investment objectives. the first step is to assess you needs. among many other factors. Begin by asking yourself these simple Page | 58 .M. financial independence. Selecting the right Scheme Category 3.T Once you are comfortable with the basics.I. the next step is to understand your investment choices. Before investing in Mutual Funds. based on your age. C. lifestyle. and draw up your investment plan relevant to your requirements. Selecting the right Mutual Fund 4. Identifying the Investment Objective 2. age. What should be kept in mind before investing in Mutual Funds ? Mutual Fund investment decisions require consistent effort on the part of the investor. etc. Evaluating the Portfolio A) Identifying the Investment Objective Your financial goals will vary.

BAJAJ CAPITAL LTD. try out our Risk Thermometer.M.I. To ascertain What are my cash flow requirements? Page | 59 . investors can be classified as: •Very conservative •Conservative •Moderate •Aggressive •Very Aggressive your risk appetite. Based on their risk bearing capacity.T questions: Why do I want to invest? The probable answers could be: •"I •"I •"I •A need a regular income" need to buy a house/finance a wedding" need to educate my children. C." or combination of all the above How much risk am I willing to take? The risk-taking capacity of individuals vary depending on various factors.



For example, you may require:
•A •A

regular Cash Flow lumpsum after a fixed period of time for some specific need in the future you may have no need for cash, but you may want to create fixed assets for


the future

B) Selecting the scheme category The next step is to select a scheme category that matches your investment objectives:

Capital Appreciation go for equity sectoral funds, equity diversified funds or

balanced funds.
•For •For

Regular Income and Stability you should opt for income funds/MIPs Short-Term Parking of Funds go for liquid funds, floating rate funds, short-

term funds.

Growth and Tax Savings go for Equity-Linked Savings Schemes.

Investment Objective Short-term

Investment Ideal Instruments horizon 1- 6 months Liquid/Short-term plans Diversified Equity/ Balanced Over 3 years Funds

Investment Capital Appreciation

Page | 60



Monthly Regular Income Flexible




Income Funds Equity-Linked Tax Saving 3 yrs lock-in Schemes (ELSS) Saving

C) Selecting the right Mutual fund Once you have a clear strategy in mind, you now have to choose which Mutual fund and scheme you want to invest in. The offer document of the scheme tells you its objectives and provides supplementary details like the track record of other schemes managed by the same Fund Manager. Some important factors to evaluate before choosing a particular Mutual Fund are: The track record of performance over that last few years in relation to the appropriate yardstick and similar funds in the same category.

How well the Mutual Fund is organized to provide efficient, prompt and personalized service.

The degree of transparency as reflected in frequency and quality of their communications. D) Evaluation of portfolio Evaluation of equity fund involve analysis of risk and return, volatility, expense ratio, fund manager’s style of investment, portfolio diversification, fund manager’s experience.
Page | 61



Good equity fund should provide consistent returns over a period of time. Also expense ratio should be within the prescribed limits. These days fund house charge around 2.50% as management fees. Evaluation of bond funds involve it's assets allocation analysis, return's consistency, it’s rating profile, maturity profile, and it’s performance over a period of time. The bond fund with ideal mix of corporate debt and gilt fund should be selected.

Page | 62

M. purchased: 10. The Entry Load on the Mutual Fund was 2%. he sold all the units at an NAV of Rs 20.392 units 2.10 19. 10. C.20 Investment NAV = (e) Actual Units Purchased = (a) / (d) = 980. = Rs.0.000 10 0.BAJAJ CAPITAL LTD. Returns/Growth on Mutual Funds Page | 63 . = = 2% Price) = (b) = + (c) of units Rs.90 3.5% (b) = = or Rs.T How to calculate the growth of your Mutual Fund investments ? Let's assume that Mr. Calculation of NAV at the time of Sale (a) (b) (c) NAV Exit Applicable at the Load NAV = time = (a) – of Sale 0. Rs.000 at an NAV of Rs. His growth/ returns is calculated as under: 1. On September 15. Gupta has purchased Mutual Fund units worth Rs.5%.20 10. The exit load was 0. (a) (b) (c) (d) Calculation Amount Market Entry Applicable NAV Load (Purchase of Applicable of NAV and No. Rs 20 Rs. 10 per unit on February 1. Rs.I.

performance may or may not be sustained in the future. not put all eggs in one basket: Diversification reduces the risk.BAJAJ CAPITAL LTD. Funds are subject to market risks and there is no assurance that the fund •Mutual objective will be achieved. •Do not time the market: Every time is good for investments. income.30% Points to Remember •Do •Do •Do •Do not speculate: Always evaluate risk-taking capacity.T (a) (b) Applicable Applicable NAV NAV at at the the time time of of Redemption Purchase = = Rs. 19. Balanced Fund: A hybrid portfolio of stocks and bonds.growth.I. C. balanced. Page | 64 .20 (c) Growth/ Returns on Investment = {(a) – (b)/(b) * 100} = 95. not stop working on Mutual Funds: Continuous evaluation of funds is a must. Typically an AMC manages several funds –open ended/ close ended across several categories. •NAVs •Past fluctuate depending on forces affecting the Capital market. not chase returns: Because what goes up must come down. Rs.M.90 10. Assets Management Company: A highly regulated organization that pools money from many people into portfolio structured to achieve certain objectives.

Most listed close ended funds trade at discount to the NAV. A person should be able to buy or sell a liquid asset quickly with virtually no adverse price impact. Else.BAJAJ CAPITAL LTD.I. Open Ended Fund: A diversified and professionally managed scheme. Expense Ratio : The annual expenses of the funds.M. Entry/ Exit Load: A charge paid when an investor buys/sells a fund. it issues fresh units to incoming investors at NAV plus any applicable sales charge. The primary emphasis is on appreciation. Growth/Equity Fund: A fund holding stocks with good or improving profit prospects. including the management fee. administrative cost. There could be a load at the time of entry or exit. C. adding the cash and any accrued Page | 65 . less any redemption fees. divided by the fund under management. but rarely at both times.T Close Ended Fund: They neither issue nor redeem fresh units to investors. Some closed ended funds can be bought or sold over the stock exchange if the fund is listed. and it redeems shares at NAV from sellers. It is calculated by summing the current market values of all securities held by the fund. investor have to wait till redemption date to exit. Liquidity: The ease with which an investment can be bought or sold. Net Assets Value : A price or value of one unit of a fund.

the market value of fixed-interest securities declines and vice versa.M. hedging. C. settlement and other financial transactions. when interest rates fluctuate. trading. Page | 66 . then subtracting liabilities and dividing the result by the number of units outstanding. Interest Rate Risk: The risk borne by fixed-interest securities.BAJAJ CAPITAL LTD. and by borrowers with floating rate loans. When interest rates rise. Capital Market Risk : Capital Market Risk is the risk arising due to changes in the Stock Market conditions.I.T income. Credit Risk: Credit risk involves the loss arising due to a customer’s or counterparty’s inability or unwillingness to meet commitments in relation to lending.

Post Office Saving schemes 5.I.National Saving Certificate 4. NSC. Securities 8.M. Mutual fund 6.Public provident fund 3. C.BAJAJ CAPITAL LTD. Bank Saving Schemes 7.T INTRODUCTION Investment options 1. Real Estate Page | 67 . PPF. Insurance 2.

M.BAJAJ CAPITAL LTD. To know why salaried employees do investment {need of investment}. C.I. To give suggestion related to their investment strategy. To know when they invest. To identify the whether they are aware about the Tax structure.T RESEARCH OBJECTIVE This research was undertaken with the following scope of work: • • • • • • To know the current strategy of investment. Page | 68 . To know where they prefer to invest.

to gain income or increase capital. C.I. laying out money or capital in an enterprise with the expectation of profit • Money that is invested with an expectation of profit • The use of money for the purpose of making more money. But why do we save and then invest our savings somewhere? The answer seems to be too simple. partfinance the down payment for a house. For instance. antiques and real estate.T DEFINITIONS OF INVESTMENT • Investing: the act of investing. speculation connotes that risking principal is acceptable • Anything of value purchased to provide capital appreciation and/or income. to make more income or increase capital. We invest for our children’s education. or both.BAJAJ CAPITAL LTD. • The use of money through various vehicles. mutual funds. money market funds and collectibles. On the other hand. bonds. unit investment trusts. Page | 69 . say. The term "investment" infers that the safety of principal is important. or an individual's time and effort. certificates of deposit. Investments may also include artwork. or both. we invest in life insurance to save on taxes. We always invest for a specific purpose. Examples include stocks. We save to earn more money. We put money into recurring deposits to.M.

Page | 70 . C. We also invest to take care of our own needs after retirement.M.BAJAJ CAPITAL LTD.T for their imminent weddings.I.

A safe investment avenue that gives people a decent annual return will be good enough for people. At different stages of life their needs for financial security and plans for the future are likely to change. For instance. C. safety will be the most important criterion.BAJAJ CAPITAL LTD. Protection Page | 71 .I.M. people want investments to give some return. if people want to put away money for retirement. Here is a simple introduction to common financial needs as they relate to different lifestyles and life stages. What about the money their father sent people for the down payment on their car? People haven’t even decided on the model! People’ll probably keep the money in their savings bank account so that people can withdraw it quickly.T Motives for investment may vary. • Safety • Liquidity • Returns We have to use these criteria to assess our investment needs. but there are some common desires.

I. dependent children need adequate protection against losing their primary wage earner's income if and when premature and unexpected death occurs. Page | 72 .M.BAJAJ CAPITAL LTD.T Families with peopling. C.

The need for highly specialized education is greater than ever before.I.T 1. Every year. the cost of education rises beyond estimated limits. 1. Education Yet another priority need for peopling families is building adequate funds for higher education costs. Emergency Fund Life insurance provides an additional consideration by providing an emergency fund to provide money for survivors. C.M.BAJAJ CAPITAL LTD. Page | 73 . It buys the time so essential and necessary that is needed to adjust to the death of a parent or spouse.

it is very hard to adjust to a reduced standard during the retirement years. Page | 74 . Disability is the major need that is to be addressed and protection against this loss is a priority. Peopling families with modest incomes must commence with at least a 10 percent guideline if they cannot make a total commitment immediately.BAJAJ CAPITAL LTD. Not only does the family have to maintain the established standard of living.T 2. Once a family attains a specific standard of living.I. The old rule of saving 10 percent of the annual income still holds true for single income peopling families.M. 3. Disability A single income peopling family would be in an extremely perilous situation if there would be a loss of income owing to a disability. it also has to shoulder the additional burden of a disabled member within itself. C. the economic consequences could be severe for the family. Investment and pension plans are not adequate to fund the retirement needs at times. In case an income provider is unable to work. Systematic savings over a working lifetime is the key towards supplementing other retirement programmes. Retirement Peopling families should also plan for retirement in the long run.

after a decade of their marriage their family would be complete.T Tax Planning Generally speaking.I. This should be a long-term policy with a small amount of premium payment year after year The needs of mature adults tend to emphasis on their successors as well as their elders. Assisting their children with payments on their new homes.M. C. It is time to plan for some investments and funds in the names of minor children and to take some insurance policy in the name of minor children for their education and marriage purposes. Guaranteeing loans and financial obligations for their children. Loaning or granting money by way of gifts to other needy family members or relatives. • • • Ensuring health care and attention for their aged and dependent parents. People should look at tax planning in a more serious manner. These generally include: • Providing funds for higher specialized studies for their children. Planning for a dependent who might have specific needs. • • Page | 75 .BAJAJ CAPITAL LTD.

Page | 76 . Marriage and Education Costs The cost of marriage and higher education for children forms a major expense during the mature adult's life cycle. C. Yet. as the costs go on mounting. The cost of higher education is also rising. Foreign universities are also offering a wide range of specialized courses on Indian This makes a college education highly desirable. it makes planning all the more essential to make the education a reality.BAJAJ CAPITAL LTD.I.T • Building a savings fund to provide additional income during retirement. More and more students are opting to go abroad to seek specialization in their chosen vocation.M. And to meet these rising costs requires sacrifice and considerable effort on the part of most families. The costs of living increase year after year.

the couple expires before the housing loan is paid off. newly married couples are finding it harder than ever before to pay the minimum down payment or even acquire the necessary resources to qualify for housing finance.I. C. Page | 77 . Gifts and Loans Adults in their mature years are usually confronted with financial demands from generations proceeding as well as succeeding them. When a peopling couple applies for a loan.M. naming their parents as beneficiaries. Many other financial options are available. Needless to say. If by chance. The tax advantages offered are extremely advantageous for the peopling couple and their parents. In case the couple lives happily ever after. but the flexibility offered by life insurance policies is unmatched by any of them.BAJAJ CAPITAL LTD.T Children's First Home Since costs of housing have to be met with a large percentage from our incomes. the proceeds of the policy can easily suffice in meeting the repayment installments. these peopling couples need their parents' help for providing the necessary funds. the cash value in the policies can be used to pay off the remainders of the loan after a while. they should purchase dual-life insurance policies.

T Providing funds for children. or relatives. elderly parents.I.M. Page | 78 . either as a loan or an outright gift. C. may create a change in the financial planning considerations.BAJAJ CAPITAL LTD.

The only solution lies in planning in advance for the risks covered.M. Difficulties arise from balancing the needs of parents and shouldering their children's responsibility besides concentrating on personal financial goals. Medical assurance policies are not always adequate. Long Term Care Long term care insurance is yet another major planning consideration. they subsequently get 'sandwiched' between the expenses of both the generations’. Not many people can afford the large expenses of nursing homes with their current income.BAJAJ CAPITAL LTD. C.I. .their own parents.A family 'sandwiched' between the pressures of two generations is subjected to a lot of emotional and financial strain. People who anticipate and prepare for the worst can afford to make choices later on in life. They can never meet the catastrophic costs of a major illness or a chronic disability. Since these people are responsible for their children as well as their elderly parents. Page | 79 .T Caring for Dependent Parents Not many people anticipate that as their children mature and gain independence. they might be confronted by new dependents .

I.M. it makes sense for their children to share the premium expenditure. people who are caring for the disabled sacrifice their own health and financial security at the expense of the other members of the family. children who are physically or mentally handicapped require special consideration and are a source of major and expensive concern. the dependency period never ends with these dependents. At times. the medical costs may be higher than the income level of the family. C. The emotional pull generated can create a terse atmosphere within the household. regardless of how willing they might be. If a parent's health goes from bad to worse and they become completely dependent on external help. Providing necessary care for dependents having special needs can be extremely strenuous. When the time period for future health planning is over. both emotionally and financially.BAJAJ CAPITAL LTD. the options available for the elderly are fewer and extremely unattractive. This is a sensible precaution to be exercised against any potentially high costs that might occur later.T If matured adult parents are unable to afford this coverage. Dependents with Special Needs Just like elderly parents. Page | 80 . A provision for their needs must be considered and plans made as early as possible. Needless to say.

M. such expenses can be met easily regardless of what happens to the provider of support. With timely and proper planning.T Parents of a dependent with special needs wish to see that these expenses are taken care of on a long-term and guaranteed basis.BAJAJ CAPITAL LTD. Page | 81 .I. C.

People should also now start focusing on the investment decisions which will have a long-term repercussion relating to their succession. People at this phase of life. Now people should plan their investment strategies in such a manner that the income in their family group is distributed from the point of view of tax planning. their daughter-in-law and their grand children. This phase in the human life cycle Page | 82 .I. Thus. it is recommended to people that they should prepare their Will and adopt tax planning relating to the wills and achieve ultimate tax saving for family members who are going to be a part of their succession plan. acquiring assets and incurring additional debts as well. most of their responsibility towards them is over. Adulthood -The Middle Years 51 – 55 Middle years are the stage in the life cycle identified and characterized as a period of acquisition and establishment.BAJAJ CAPITAL LTD.T Tax Planning Once their children are grown up and settled in life. Middle-aged people are constantly making commitments. C. assume more responsibility and often take on new career opportunities.M. It is now time to relax. not merely in their name and that of their spouse but in the names of their son.

T develops the individual's long-term and ongoing relationships more than the others. Page | 83 .BAJAJ CAPITAL LTD.M. C.I.

Since different people use different approaches in meeting their mid-life crises and challenges. Budgetary changes may also be implemented along with long-term savings and investment plans.I. They might also be updating their wills and bequests. They may also be considering investing in better residential facilities with realistic provisions made for their retirement needs and financial security. They may be trying to achieve their aims in life. They will also seek proper protection of their income levels in event of a disability. Growth means change wrought together with new challenges and added concerns. Page | 84 . A miscalculation at this stage can affect an individual's financial standing for the rest of his life.T Challenging Concerns People. in their middle years are assuming greater responsibilities as well as acquiring newer assets and possessions.BAJAJ CAPITAL LTD. People have to consequently face a lot of problems and considerations during this stage of their life cycle.M. or a loss of job or a career change and even premature unexpected death. they are highly prone to make financial mistakes and errors of judgment. their aspirations and dreams ranging from a proper balance between their careers and family life to a continual movement up the career ladder. C.

Also they fail to provide for pending major purchases or replacement of large-sized utilitarian items. The other common errors on people's part are concurrent to the fact that people tend to overuse and at times. Another mistake people tend to commit is making inadequate estimates or judgments regarding the amount of protection needed for their future.BAJAJ CAPITAL LTD.I.T The most common mistake made by individuals during their middle age periods is probably procrastination or delay in the commencement of programs for future needs. The benefits of compounded interest are lost forever owing to this single greatest failure. even abuse their credit limits. Page | 85 . C. At times. They blindly accept investment strategies or plans newly introduced in the market. people forget that inflation will catch up with them and make inadequate provisions for their retirement. They also tend to neglect in protecting or covering their property assets while continue to rely on their employment-sponsored benefits.M.

C. his chances of success are assured: • Clearly defined goals and objectives. Protection against property losses. Adequate funds for children's higher education.M.BAJAJ CAPITAL LTD. As long as the individual maintains the following perspectives in mind. • • • • • • • • Page | 86 . Emergency fund. General well being and peace of mind. Financial independence and a comfortably secure retirement.I. Planned savings and investment program. Sufficient income against disability.T Hopes and Dreams An individual seeking to fulfill their aspirations should base his game plan with specific objectives estimated on his resources and working capacity. Controlled spending with the budget.

Insurance is a cooperative device to spread the loss cause by a particular risk over a member of persons who are exposed to it and who agree to insure themselves against the risks. which provides security and fearlessness to the human being.BAJAJ CAPITAL LTD. fire. cyclone. The thrust should be on safety of their capital as against higher returns. against sickness.I. Their tax planning should now be in such a manner that people are required to spend less time managing their affairs and have more time available for their personal pursuits. C. INTRODUCTION TO INSURANCE The word insurance is an under writing by a company. In other words insurance is such a method.e. There are risk of outbreak. Their focus should be only on 100% safe and secured investments. Try to have a joint bank account and joint investments which will help smooth succession in the years to follow. society or the state to provide or safeguard against loss provision. premium. Their aim should be to have an easy flow of money from their investments. Page | 87 .T Tax Planning Their tax planning should now be such that people have no hassles and tensions in these golden years. It is a mean for shifting the risks to insurer in consideration of a nominal cost which is called as premium.M. death etc in return for regular payment i.

T earthquake. Page | 88 . WHILET.M. over a no. C. According to A. of persons who agree to share the loss.I. Insurance is a cooperative method for spreading over the loss suffered by one or more. floods. caused by a particular risk. early death and so on. accidents and deaths etc. By insurance a person can protect himself and his dependents from loss arising from future uncertain events like fir.BAJAJ CAPITAL LTD. risk is an objectified uncertainty regarding the occurrence of an undesirable event.H. accidents.

T DEFINITION OF INSURANCE “Insurance is a cooperative form of distributing a certain risk over a group of persons who are exposed to it.” (GHOSH AND AGARWAL) “Insurance is a contract in which a sum of money is paid to the assured in consideration of insurer’s incurring the risk of paying to a large sum upon a given contingency” (JUSTICE TINDALL) “Insurance is a contract by which one party for a compensation called in the premium assumes particular risk of the other party and promises to pay to him or his nominee a certain or a certain able sum of money on a specified contingency. C.W.” (E.I. FITTERSON) Page | 89 .M.BAJAJ CAPITAL LTD.

• Property insurance. • Fire insurance. Page | 90 . liability insurance & other forms of insurance. fidelity and machine insurance include the extent of liability insurance to a certain extent.Under the property insurance. C.M. Motor.Hence the policy holder is assured of any loss to the property by fire.BAJAJ CAPITAL LTD.T CLASSIFICATION OF INSURANCE Insurance business can be divided into two broad categories – Life insurance & general insurance Types of Insurance Life Insurance General Insurance Marine Fire Miscellaneo us 1) GENERAL INSURANCE The general insurance includes property insurance.I. Fire and marine insurance are strictly called property insurance. property of the person is insured against a specified risk.

C.BAJAJ CAPITAL LTD.I.T • Liability insurance. Page | 91 .In this insured is liable to pay the damages of property or to compensate the loss of personal injury or death.M.

Insurance on one’s life is taken and assured sum is payable on maturity or the assured or his nominee on maturity or death in consideration of premium paid by the assured. Life insurance provides protection to the family at the premature death or gives adequate amount to the old age when earning capacities are reduced. Page | 92 . At present. Health and Sickness Insurances. The insurance is not only a protection but is a sort of investment. Personal Insurance includes Life Accident.Personal Accident Policy provides for specific benefit to the assured.T 2) LIFE INSURANCE It is different from other forms of insurance in the sense that the subject matter of insurance is life of human being. suffering injury in any accident resulting ion death or disablement. The compensation payable but the insurer is dependent upon the extent of physical loss or injury.M.I.BAJAJ CAPITAL LTD. • Accident Insurance. Under personal insurance a payment is made at the accident. life insurance enjoys maximum scope because the life is the most important property of the society or an individual. C.

I. Insurance has described as an institution. The breadwinner of the family more often than not depens a family for its food.T INTRODUCTION TO LIFE INSURANCE Life Insurance contract may be defined as the contract. C. It is the certainty of death inherent in the life which gives rise to the necessity for some form of protection against the loss arising from death. So long as he lives and the income is received steadily that family is secured but should death suddenly intervene the family may be left in very straitened circumstances and some time in stark poverty. which eliminates risk and substitute certainty for uncertainty.M. Page | 93 . whereby the insurer in consideration of a premium undertakes to pay a certain sum of money either on the death of the insured or on the expiry of a fixed period.BAJAJ CAPITAL LTD. clothing and shelter on the income benefit in at regular intervals.

an interest rate and a surcharge to cover the possibility of loss. In 2100BC the code of Hammurabi granted legal status to the practice . as well as help survivors monetarily. In effect ship owners were insured and lenders were the underwriters. or freight. particularly the merchant artisan guilds. These provide the underpinning for marine insurance contracts.500 year ago in the ancient land of Babylonia trader use to bear risk of the caravans trade by giving loan that have to be later repaid with interest when the good arrive safely.T HISTORY OF LIFE INSURANCE Over 5000 year ago in china insurance was seen as a preventative measure against piracy on the sea. cargo. In another part of the world nearly 4. Piracy in fact so prevalent that as a way of spreading the risk a number of ship would carry a portion of another ship’s cargo so that if one was captured the entire shipment would not be lost. C.D. A loan on the vessel. most of the concept of insurance were abandoned.M.BAJAJ CAPITAL LTD. This provide forms of member Page | 94 . but aspect of it did continue through the middle age. Such contracts contain three elements.I. Life insurance come out a little later in ancient Rome were burial clubs were form to cover the funeral expenses of its members. With Rome’s formed around 450 A.it formulized concept of “bottormy” referring to vessel bottom and “recondition” referring to cargo.

C. During the feudal period early forms of insurance ebbed with the decline of travel and long distance trade. Page | 95 . the name of life insurance Corporation of India’s corporate headquarters.BAJAJ CAPITAL LTD. disability . is derived from a Rig Veda. transportation. Insurance in India can be traced back to the Vedas. death theft and even imprisonment. The term suggests the form of “community insurance” was prevalent in 1000BC and practice by the Aryans.M. But during the 14th and 16th centuries. For instance.I.T insurance covering risk like fire . flood . yogakshema. commerce and insurance would again reemerge.

e. In India the insurance policies. • PERSON The need of a person may be divided into: i) Old age needs. iv) Special needs including needs for education. Page | 96 LIFE INSURANCE FULFIL THE NEED OF A . The rule and importance of insurance discussed as below: • LIFE INSURANCE ENCOURAGE SAVINGS are required to Systematic savings is possible because regular premium be compulsorily paid. Life insurance is the best media of saving.I. carry a special exemption from income tax and estate duty. regular savings capital formation and return of the capital are observed in the life insurance. the insurance principle has become all the more useful in modern affairs. and iii) Family needs. • LIFE INSURANCE PROFITABLE INVESTMENT The elements of investment i.T IMPORTANCE OF LIFE INSURANCE The purpose of life insurance is to safe guard the interest of people from uncertainly by providing certainty of payment at a given contingency.M. ii) Re –adjustment needs. Unlike bank deposits the deposited the insurance premium can not be withdrawn.BAJAJ CAPITAL LTD. C.

C.M.BAJAJ CAPITAL LTD.I. Page | 97 .T marriage settlement of children. etc.

• TAX BENEFIT The Indian income Tax Act allows deduction of certain portion of taxable income of individual or Hindu Undivided Families for computing Income Tax which is diverted to payment of life insurance premiums.M.T ADVANTAGES OF LIFE INSURANCE The following are the advantages of life insurance:• SUPERIOR SAVING PLANS Life insurance is superior to other forms of saving because. the insured is required to pay the premiums the premiums is a kind of investment. C. it affords full protection against risk of death. This premium is returned to the insured along with additional bonus amount after the expiry of the period of contract. the full sum assured is made available under a life assurance policy.BAJAJ CAPITAL LTD. • REDUCES FINANCIAL BURDEN Page | 98 . unlike other savings plans. In case of death.I. • INVESTMENT ELEMENT In life insurance. Taking this tax benefits into account the assured is in effect paying lower premiums for his insurance. whereas under other savings schemes the total accumulated saving alone will be available.

build a house or starting business after retirement. marriage of daughter.BAJAJ CAPITAL LTD. C.I.M. Page | 99 .T Life insurance reduces financial burden by providing money for children. etc.

The nationalization of the insurance business.I.M. the insurance act was through the IRDA Act 1999. It was way back in 1912. certain changes were effected in order to limit the expenses and control the investments.BAJAJ CAPITAL LTD. which aimed to consolidate and amend the law relating to the business of insurance. Page | 100 . INSURANCE ACT.when the Indian life insurance companies act and provident fund insurance societies act 1912 was passed . C.T THE ACT OF INSURANCE There are three acts of insurance : • • • Insurance act. which was further modified and a new legislation was passed in 1928. 1939. LIC Act. The act came into force with effect from july. in 1938 the insurance act was passed. in 1950. 1938 Insurance act 1938 was the first comprehensive legislation in India to regulate the business of insurance when it was found that the earlier Indian company act failed to meet the purpose. IRDA Act.

Page | 101 . 1912 was the first legislation for regulating insurance business in India. C. former Governor of RBI. 1994 and made recommendations for the establishment of on effective Insurance Regulatory Authority (IRA) in the form of a statutory autonomous board. 1993 the Government of India appointed the Malhotra Committee. the Narsimha Rao led Government adopted the policy of deregulating all the sectors including the insurance sector from the clutches of the Government and thereby promote the private players to prove their worth.I. However the Insurance Act. The Committee submitted its report on 7th January. The LIC took over the assets and liabilities of 245 insurers which were operating at the time to nationalization. to recommend on the reforms on insurance sector. 1956 The Life Insurance Corporation Act. In this sequence in April. 1999 After the economic crisis of 1991.Malhotra. IRDA ACT. 1912 was replaced by comprehensive Insurance Act of 1938.T LIC ACT. 1956 and as such LIC was setup on 1st September. under the chairmanship of Sri. Finally the Government of India nationalized the entire life insurance business in the year 1956 by passing Life Insurance Corporation Act.BAJAJ CAPITAL LTD. and also recommended for the entry of private sector in insurance business.N.M. R. This Act was again amended in 1950. 1956.

M. Government tabled the IRA Bill in the parliament but due to strong opposition form left parties the Government was forced to withdraw IRA Bill in parliament. Page | 102 .I. C.BAJAJ CAPITAL LTD.T In December 1996.

the role of controller of insurance had diminished in significance.BAJAJ CAPITAL LTD. The committee submitted its report on 7th January.M. 1938 an institution of the controller of the insurance was set up to act as a strong and powerful supervisory and regulatory Authority. After the nationalization of the life insurance industry in 1956 and general insurance industry in 1972. 1994 and expressed the view that the insurance regulatory apparatus should be activated even in the existing set up of nationalized insurance sector. The government of India in April 1993 set up a high power committee to examine the structure of the insurance industry and recommended changes to make it more efficient and competitive. It recommended for the establishment of a strong and effective Insurance Regulatory Authority in the form of statutory autonomous board.I. C. In view of this the government decided to bring in legislation to establish an independent regulatory authority for insurance industry. in the budget Page | 103 . It was widely supported that an autonomous Insurance Regulatory Authority be set up. In order to provide better insurance coverage to the citizens and also to augment the flow of long term resources for financing infrastructure .T IRDA Under the provision of the insurance Act. The recommendations of the committee were discussed at different forums.

However the bill could not be taken up consideration on the dissolution of the Lok Sabha.T speech 1998 the policy of the government was announced to open up the insurance sector and also to establish a statutory Regulatory Authority . C. The bill was referred to the standing committee suggested some amendments which were accepted by government.M.I.BAJAJ CAPITAL LTD. According the insurance Regulatory Authority Bill 1998 was introduced in the Lok Sabha or 15th December 1998. A fresh bill titled Insurance Regulatory and Development Authority bill was introduced in the parliament. Page | 104 .

promote and ensure orderly growth of the insurance business and reinsurance business. 1999 lays down the duties. • Without prejudice to the generality of the provision contain in the sub – section. renew .BAJAJ CAPITAL LTD. • Specifying the code of conduct for surveyors and loss assessors. • Levying fees and other charges for carrying our the purpose or this act. powers and functions of IRDA: • Subject to the provision of this act and any other law for the time being in force. POWERS AND FUNCTIONS OF IRDA: Section 14 of IRDA Act.modify . • Promoting and regulating professional organization connected with the insurance and reinsurance business.T DUTIES.M. The authority shall have the duty to regulate. Page | 105 . • Issue to the applicant a certificate of registration . • Promoting efficiency in the conduct of insurance business.I. C. withdraw . code of conduct and practical tanning for intermediary or insurance intermediaries and agents. suspend or cancel such registration . • Specifying requisite qualification .

Page | 106 . • Regulating maintenance of martin of solvency.T • Specifying the form and manner in which books of insurer and other insurance intermediaries shall maintain account . • Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector. C. • Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organization referred to in clause. The power and function mentioned above would enable the Authority to perform the role of an effective watchdog and regulator for the insurance sector in India.M. • Regulating investment of funds by insurance companies.BAJAJ CAPITAL LTD. • Exercising such other powers as many be prescribed. • Supervision the functioning OF THE Traffic Advisory Committee. To enable the Authority to function in a truly independent manner and discharges its assigned responsibilities effectively.I. • Adjudication of disputes between insurers and intermediaries or insurance intermediaries. it is proposed to vest the Authority with statutory status.


METHOD OF DATA COLLECTION PRIMARY DATA 1.M. C. Page | 108 . Employees are divided into three strata on the basis of their age a) Employees of age group 40 to 45 (120 employees) b) Employees of age group 46 to 50 (80 employees) c) Employees of age group 51 to 55 (40 employees) SAMPLING UNIT: Salaried Employees SAMPLE SIZE: Sample of 240 Salaried employees is chosen.T RESEARCH METHODOLOGY RESEARCH DESIGN: Descriptive Research Design SAMPLE DESIGN: Probability Sampling – Stratified Sampling. Interview Method: personal interview involve asking questions in face to face contact.BAJAJ CAPITAL LTD.I.

C. Questionnaire: It is the most popular and common instrument used in research .I.T 2.BAJAJ CAPITAL LTD.The basic objective of questionnaire was to collect adequate information.M. Page | 109 .

google.T SECONDARY DATA 1.com 2. Publish material 3.I. C.BAJAJ CAPITAL LTD. Internet Search www. Result of analysis is shown in the form of Bar Chart Page | 110 .M. Books Direct Taxes Law & Practice Tax Planning PROCESSING OF DATA Different techniques are used for processing  Editing to detect errors and omit it  Classification to reduce the data into homogenous groups  Tabulation to arrange it into concise and logical order ANALYSIS OF DATA Data collected through above method has been analyzed statistically.

55 age Public Sector Private Sector INFERENCES • SALARIED EMPLOYEE OF AGE GROUP 40 TO 45 70% said they are working in Private Organization 30% said they are working in Public Organization • SALARIED EMPLOYEE OF AGE GROUP 46 TO 50 80% said they are working in Private Organization 20% said they are working in Public Organization Page | 111 .BAJAJ CAPITAL LTD.M.I.45 age 46 .50 age 51 .T WHERE DO YOU SERVICE IN PUBLIC SECTOR OR PRIVATE SECTOR 90 80 70 60 50 40 30 20 10 0 40 . C.

BAJAJ CAPITAL LTD.M.I. C.T • SALARIED EMPLOYEE OF AGE GROUP 51 TO 55 90% said they are working in Private Organization 10% said they are working in Public Organization Page | 112 .

30.31.BAJAJ CAPITAL LTD.21.000 INFERENCES • SALARIED EMPLOYEE OF AGE GROUP 40 TO 45 60% said their monthly salary is Rs.000 to 30.000 to 20.50 age 51 .000 Rs 31 .000 30% said their monthly salary is Rs.35. 21 .M. 10 .10.10.000 to 35.000 10% their monthly salary is Rs.000 • SALARIED EMPLOYEE OF AGE GROUP 46 TO 50 20% said their monthly salary is Rs.45 age 46 .000 Page | 113 .I.T YOUR MONTHLY SALARY 90 80 70 60 50 40 30 20 10 0 40 .20.000 Rs.000 to 20.55 age Rs. C.

I. 31.BAJAJ CAPITAL LTD. 21.000 to 20.000 5% said their monthly salary is Rs.000 • SALARIED EMPLOYEE OF AGE GROUP 51 TO 55 5% said their monthly salary is Rs.000 to 35.000 to 30. C.T 70% said their monthly salary is Rs.M.10.000 10% said their monthly salary is Rs.000 Page | 114 . 21. 31.000 to 30.000 90% said their monthly salary is Rs.000 to 35.

10% said their annual saving is Rs.BAJAJ CAPITAL LTD.0 lac. 30% said their annual saving is Rs. to 2. to 2.5 lac.250.0 lac.00. • SALARIED EMPLOYEE OF AGE GROUP 46 TO 50 20% said their annual saving is Rs.5 lac.2.T YOUR ANNUAL SAVING 70 60 50 40 30 20 10 0 40 . C.0 lac.2. 10% said their annual saving is Rs.2.150.I.0 lac.50 age Rs.1.0 lac.000 46 . to 2.55 age Rs 2 .1. 1 . to lac.000 INFERENCESSALARIED EMPLOYEE OF AGE GROUP 40 TO 45 60% said their annual saving is Rs.0 lac.5 lac. 1.5 lac.45 age Rs. Page | 115 .M. to 1. 70% said their annual saving is Rs.5 lac.000 51 .5 . to 2.

0 lac.I. WHERE DO YOU LIKE TO INVEST 80 70 60 50 40 30 20 10 0 40 .M.2.BAJAJ CAPITAL LTD.5 lac. 40% said their annual saving is Rs. 50% said their annual saving is Rs.45 age 46 .5 lac.1.T 100% said their annual saving is Rs.0 lac.55 age Public Private Public and Private both INFERENCES • SALARIED EMPLOYEE OF AGE GROUP 40 TO 45 10% said they prefer to invest in Public 40% said they prefer to invest in Private Page | 116 .0 lac. to 2. to 1.1. • SALARIED EMPLOYEE OF AGE GROUP 51 TO 55 C.50 age 51 . to 2.5 lac.

BAJAJ CAPITAL LTD. 50% said they prefer to invest in both Public and Private • SALARIED EMPLOYEE OF AGE GROUP 46 TO 50 C.I.M.T 20% said they prefer to invest in Public 20% said they prefer to invest in Private 60% said they prefer to invest in both Public and Private SALARIED EMPLOYEE OF AGE GROUP 51 TO 55 10% said they prefer to invest in Public 10% said they prefer to invest in Private 80% said they prefer to invest in both Public and Private Page | 117 .

BAJAJ CAPITAL LTD.I.45 age 46 . C.55 age High Risk Medium Risk Low Risk INFERENCES • SALARIED EMPLOYEE OF AGE GROUP 40 TO 45 30% said they would like to take High Risk 50% said they would like to take Medium Risk 20% said they would like to take Low Risk SALARIED EMPLOYEE OF AGE GROUP 46 TO 50 10% said they would like to take High Risk 80% said they would like to take Medium Risk Page | 118 .50 age 51 .T HOW MUCH RISK YOU LIKE TO TAKE 80 70 60 50 40 30 20 10 0 40 .M.

50 age Yes No 51 .BAJAJ CAPITAL LTD. 10% said they would like to take Low Risk SALARIED EMPLOYEE OF AGE GROUP 51 TO 55 10% said they would like to take High Risk 20% said they would like to take Medium Risk 70% said they would like to take Low Risk C.T ARE YOU AWARE ABOUT TAX STRUCTURE 90 80 70 60 50 40 30 20 10 0 40 .I.45 age 46 .M.55 age INFERENCES • SALARIED EMPLOYEE OF AGE GROUP 40 TO 45 Page | 119 .

I.BAJAJ CAPITAL LTD.T 90% said Yes they are aware about Tax Structure 10% said No they are not aware by Tax Structure • SALARIED EMPLOYEE OF AGE GROUP 46 TO 50 80% said Yes they are aware about Tax Structure 20% said No they are not aware by Tax Structure • SALARIED EMPLOYEE OF AGE GROUP 51 TO 55 80% said Yes they are aware about Tax Structure 20% said No they are not aware by Tax Structure Page | 120 .M. C.

M.50 age NSC KVP 51 . C.45 age Insurance PPF 46 .BAJAJ CAPITAL LTD.55 age Securities Bank INFERENCES • SALARIED EMPLOYEE OF AGE GROUP 40 TO 45 55% said they prefer to invest in Insurance 10% said they prefer to invest in PPF 15% said they prefer to invest in NSC 5% said that they prefer to invest in KVP 17% said that they prefer to invest in Securities 8% said that they prefer to invest in Bank • SALARIED EMPLOYEE OF AGE GROUP 46 TO 50 50% said they prefer to invest in Insurance 15% said they prefer to invest in PPF Page | 121 .T WHERE YOU LIKE TO INVEST 60 50 40 30 20 10 0 40 .I.

I.M.T 55% said they prefer to invest in Insurance 10% said they prefer to invest in PPF 5% said they prefer to invest in NSC 10% said that they prefer to invest in KVP 10% said that they prefer to invest in Securities 10% said that they prefer to invest in Bank Page | 122 . 5% said they prefer to invest in NSC 10% said that they prefer to invest in KVP 7% said that they prefer to invest in Securities 8% said that they prefer to invest in Bank • SALARIED EMPLOYEE OF AGE GROUP 51 TO 55 C.BAJAJ CAPITAL LTD.

 Increase in tendency of people to hedge against inflation.M.I.BAJAJ CAPITAL LTD. Page | 123 . This difference is because of different perception  Generally most people prefer to keep their money float in the market despite keeping in bank of the low rate of return as bank provides.  Ability of investments to provide income and capital gains.  From the survey we come to know about the increasing popularity of investment among people due to the following reasons:  Increase in working population.T FINDINGS In this research salaried employees are classified in three strata • One strata is of employee of age between 40 to 45 • Second strata is of employee of age between 46 to 50 • Third strata is of employee of age 51 to 55.  Availability of large and attractive investment alternatives. larger family incomes and consequent higher savings. These three groups of employees respond differently.  Provision of tax incentives in respect of investments in specified channels. C.

 According to the survey done. C.  People also prefer to invest in post office because of the saving in taxes and there return and security as a government investment instrument.BAJAJ CAPITAL LTD.000-15.  Generally people deposit money in bank for the purpose of immediate withdrawal as per their need of money.  Government servants at present mostly invest in banks and post office. However. real estate. although they would prefer primary market and mutual funds if they invest in future.  People of income group 10.I. mutual funds and primary market.  In the coming future people would like to invest in Insurance along with fixed deposit.  Most of the public sector employees at present invest their money in banks as they consider to be the safest financial institutions.000 presently invest in banks and in the future they would like to invest in fixed deposits and to pay for the Page | 124 .T  Most people preferred area for investment by people is insurance sector.  Private sector employees mostly make investments in banks but in the future they would prefer to invest their money in fixed deposits. in future they would like to make investment in insurance.M. most of the people invest money to get higher returns and to gain on there savings.

M. 25.000 presently invest in insurance while in future their choice of investment would preferably be real estate and fixed deposits. most of the people who fall under the income group of 20.  People who fall under income group of 15.  People who are above the age of 51-55 presently make maximum of their investments in Insurance as well as PPF and banks.000 invest in different investments and in future they would like to invest in tax savings instruments.I.  According to the survey done. Page | 125 .000-20.)  Most of the investors falling under the category of income group which is above Rs. (Bonds NSC mutual fund etc.000-25.BAJAJ CAPITAL LTD.000 presently make their investments in Insurance and other tax saving investments to save there tax labiality. C.T investment purpose in which they get higher return on there investment.

People who can bear high risk for that person the security market are good. Earlier people prefer to keep their money either on home or keep in bank but today people to see their money grow and today a lot of options are present which are not only attractive but fast growing too.M.BAJAJ CAPITAL LTD. Page | 126 .T RECOMMENDATIONS Today’s environment is very competitive hence to survive in such environment people need both power and wealth. There is high risk and high return according to their investment amount. C.I. Salaried people wants the security in their savings so for those people who wants high security Insurance and other Government instruments of Investments is better option in which there is a fix growth up to certain amount. Today’s market is so fluctuating for this type of market security is important as well as growth so Insurance is good option for them in which there is return as well as security.

Page | 127 .M.BAJAJ CAPITAL LTD. Time is act as constraint Some employees refuse to fill the questionnaire because they do not free time Some employee does not read the questions carefully as a result they give the wrong response Most of employees do not give answer of the personal question related to PAN number and Accurate Salary. C.I.T LIMITATIONS This study is based on reaction hence it is not an indication that everything is true t its fullest sense.

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 tax benefit like insurance and PPF Page | 128 .T CONCLUSION 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.BAJAJ CAPITAL LTD.M. C.I.

T QUESTIONNAIRE This is a research pertaining to measuring satisfaction level of retailers. 31. Average Monthly Salary Rs. Rs. Name of Organization / Company where you are working _______________________________________________ 5.000 □ 35. 21.000 □ Rs.000 to 20. Education ______________________________________ 4.000 to 10.000 □ Page | 129 . C. Post / Designation ____________________________________ 7. Please give your response to the following questions by ticking the appropriate choice.M.I. Respondent Name__________________________________________ 2.000 to 30. Nature of Company Public □ Private □ 6. 1. Your Age from 40 from 46 to 50 □ from 51 to 55 □ to 45 □ 3.BAJAJ CAPITAL LTD.

5 Lac.M.0 to Rs. How much risk you like to take ? Page | 130 .Are you aware about tax Structure? Yes □ No □ Yes □ Yes □ 13. Where you prefer to invest ? Public □ Private □ 10. 2. 1. Your C.BAJAJ CAPITAL LTD. 8.What is your tax liability (approximate) ___________________ Where would you like to invest PPF □ Securities □ Bank Saving Scheme □ Insurance □ NSC □ Post mutual fund □ office Saving Scheme □ Real Estate □ 14.5 to 2. 1 to 1.PAN No.I.0 Lac. □ 2. □ Savings Rs.Liabilities (dependent) _________________________________________ Tax Payee No □ 11. __________________________________________ Are you filling up Income Tax Return? No □ 12. □ 9.5 Lac.T Anuual Rs.

C.BAJAJ CAPITAL LTD.M.T High □ Medium □ Low □ THANKS FOR YOUR TIME AND COOPERATION …………………………………………………………………………………… ………… Page | 131 .I.

Bajaj Capital .com  www.BAJAJ CAPITAL LTD.com Page | 132 .R.com  www.com  www.Bajaj Capital mutualfund.M. Marketing Management  Pandey I.com  www.M.mutualfundofinsa.I.google.com  www. Research Methodology  Kotler Philip.amfi.nseindia. C. Financial Management Bajaj Capital publication  Investor India Web Site  www.T BIBLIOGRAPHY Books:  Kothari C.


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