Answer-1

INTRODUCTION

The technique of advertising and selling a company's products or services on the Internet is
known as online marketing. Internet marketing, Web marketing, and other similar words are
also used to describe online marketing. Online marketing is the art and science of selling
products and services via the internet, and the sort of online marketing that is ideal for your
business will depend on its nature. It is quantifiable, cost-effective, and rapid, with the ability
to deliver as much information on the product or service as feasible. Online marketing
consists of Search Engine Optimization, Blog, Social Media Strategy, Email, and other
components. Because internet marketing is a wonderful way to reach out to clients and any
firm will profit from it, it is becoming increasingly crucial for all sorts of small businesses, as
buyers are much more inclined to undertake online research before making a purchase.

Online marketing tactics and approaches include email, social media, display advertising,
search engine optimization (SEO), Google AdWords, and others. It may be done using an
image, text, a social network feed, a video, or anyplace else. Participation is required for your
products or services.

CONCEPT AND ANALYSIS

The fundamental purpose of financial services digital marketing is to improve client

involvement and confidence. Digital marketing for financial services is a means of informing
the public about your products and services, which helps both the people and the
organisation. Financial services are a highly competitive business that has become
increasingly difficult to enter as technology has evolved. Financial institutions can reach their
goals through a range of digital marketing tactics, including social media marketing, user-
friendliness, content and email marketing, customer evaluations, and customization.

Online marketing of financial services strategies include –

Email marketing - Email marketing is the use of email to promote products and financial
services. It's an excellent method to get your clients interested about the additional services
you provide. Email marketing is low-cost, secure, customized, controllable, and constantly
keeps you in touch with your consumers.
Social Media Marketing - Social media marketing helps with service promotion. It is critical
to make touch with the clients. In the financial services industry, social media marketing aids
in audience development, cost effectiveness, greater exposure, promotion, and trust building.

Customer reviews – Consumers like reviews because they give information that helps them
to trust the services. A favourable review is a straightforward strategy to earn and strengthen
customer relationships, client trust, and sales. Financial advisers may also use their reviews to
market, which boosts their reputation with future customers.

Personalization – Personalization is a technique for engaging with individuals as opposed to

huge groups of clients. To see great outcomes, your finance staff must know as much as
possible about your clients. It is a technique that generates a relevant, customized relationship
between two people; it is the act of leveraging information to increase the profit and sales of a
company. Personalization in financial services improves client retention, engagement, and
sales.

Online financial services marketing is altering the way financial services are offered in India.
Customers of financial services are increasingly lured to digital experiences and goods. This
sort of marketing assists the buyer in obtaining everything online in one location via content,
video, or any other type of marketing. It benefits customers in many ways, such as payments
through applications such as g-pay, phone-pay, or any other bank transfer has changed
people's life, consumers may buy financial services online directly from websites, and it also
saves time and energy by giving everything in one location for the user. With the help of
online or internet marketing, the financial institutions can improve their service to the
customers by providing all the facilities online.

CONCLUSION

Online marketing offers several options for organisations to grow, increase their audiences,
and profit. It significantly increases the business's development and potential while also being
cost effective. Marketers must acquire the confidence of their consumers and build long-term
partnerships. The purpose of online financial services marketing is to boost customer
involvement, supply clients with cutting-edge technology, acquire their confidence, and reach
out to more potential customers.
One of the most significant innovations in the finance business is online banking. Despite the
numerous benefits for clients, we also discussed the significant problems that marketers
confront in online banking. But we think we've shown how to convert these obstacles into
opportunities to improve procedures and consumer engagement.

Changing customer behaviour, FinTech advances, as well as security and technological

issues, are all important online banking difficulties that marketers must overcome in order to
flourish in this industry. Demand is great, and when marketing hurdles are overcome and new
customer demands are met, digital banking applications and challenger banks will become
even more advanced and profitable.
Answer – 2

INTRODUCTION

Financial planning is an important aspect of financial management. The act of forecasting a

company's fund requirements and identifying where those funds will come from is known as
financial planning. It covers a wide range of financial issues, such as investing, taxes,
savings, retirement, estate planning, insurance, and more. A financial objective is a
description of a person's future goals that will demand money. Financial planning frequently
includes tax preparation, retirement planning, education planning, insurance planning, and a
variety of other services. The cost of financial planning varies substantially depending on the
adviser and covers long-term investment, growth, and financing decisions. It is simply a
financial budget plan that aids in the organisation of the firm and includes a set of corporate
objectives.

CONCEPT AND ANALYSIS

COVID -19 has impacted many people's life in many ways; some have lost their lives, while
others have lost their source of income. This pandemic has caused many problems in
everyone's life, as shown in the case study, where one of the clients wants to apply for a
home loan in the next 12 to 18 months and has recently lost his job and his car loan
repayments have been delayed. As a result, our client is concerned that it will affect his credit
score.

A credit score is a number between 300 and 850 that evaluates a person's creditworthiness.
The better the borrower, the higher the score; it communicates to lenders that you are a low-
risk borrower. Someone with good credit obtains higher rates on mortgages, vehicle loans,
and other types of finance. Those with low credit, on the other hand, are deemed higher-risk
consumers, with fewer lenders vying for them and more firms able to charge high annual
percentage rates (APRs) as a result.

A Roadmap Suggested to my client to improve his credit score are as follows –

 Examine your credit report - A credit report is a statement that includes details on
your credit history and present financial circumstances, such as loan repayment
 history and credit account status. Poor credit may make obtaining credit more
difficult. One of the most crucial aspects of knowing your credit report is to check it.
 Payment of outstanding bills - Outstanding bills are those that were due prior to the
current one but were not paid. It is one of the elements considered when determining a
credit score. Paying your payments on time and in full whenever feasible is one of the
finest things you can do to boost your credit score. Payment history accounts for a
large portion of your credit score, therefore it's critical to prevent late payments. If
you have trouble making on-time payments, try setting up automated payments for
your accounts or setting up notifications to remind you to pay.
 Credit card utilization - The trick is to utilize less of your available credit and to
avoid applying for additional credit cards.
 Leaving accounts open - Close outdated accounts since they might lower your credit
score and show a bad repayment history.
 Don’t apply for new credit card - Do not seek new credit, if you're trying to
improve your credit, don't apply for more than one new credit card. Applying for
additional lines of credit frequently results in a hard inquiry, which might harm your
credit score. So, if you want to raise your credit score, attempt to restrict the number
of new accounts you apply for. Opening a new line of credit can also reduce the
average age, or duration, of your credit history, which is used to calculate your credit
score.
 Make Contact with Your Creditors - You should try to contact your creditors to ask
for assistance and to discuss the new payment schedule, this will help you maintain a
good credit score.
 Enquiries - Knowing your credit score is an excellent way to review your credit
report and look for errors.

Other Relevant factors that should be considered in Credit Score:

 Credit cards that are secured. Secured credit cards are intended to assist users in
developing a credit history, making them an excellent initial step. A secured card
requires you to pay an initial deposit, which is generally the same as your advised
credit limit. The card will then function similarly to any other credit card, with on-
time payments adding to a favourable credit history.
  Credit cards for students If you qualify, you might also look for a student credit
card. You will most certainly be required to submit documentation of enrollment, but
these cards are also targeted at helping you develop credit and generate a credit score.
 Authenticated user To begin establishing credit without applying for a credit card,
become an authorised user on a parent's, spouse's, or other family member's credit
card account. As an authorised user, you would receive a credit card in your name and
benefit from making on-time payments, but the account would not be in your name.
 Co-signer. A co-signer is someone who agrees to be legally liable for paying a debt,
such as an automobile or school loan, if the borrower does not repay the loan on time.
Having a co-signer may enable you to obtain better loan conditions or qualify for a
loan that you would not have been able to obtain otherwise. As a result, you can start
building credit, but if you fail to pay, your co-signer will be held liable for the debt.
 Payments for utilities and rent You can also request that your landlord or utility
company record your on-time payments to one of the three national consumer
reporting organisations. Although these types of payments normally do not appear on
credit reports, if you have a solid payment history, you may be eligible.

CONCLUSION

Your credit score is a single figure that may save you a significant amount of money over the
course of your life; but it is a long process. Lower interest rates, the capacity to readily apply
for a new credit card, and the opportunity to negotiate a lower interest rate are all benefits of
having a good credit score.

Things to Consider While Applying for a Home Loan:

 Before qualifying for a house loan, you must first get a credit score. Knowing your
credit score ahead of time can guarantee that your facts, such as credit history and
personal information, are correct, allowing you to prevent rejections. Furthermore,
understanding what is a decent credit score for a house loan will allow you to
concentrate on increasing yours before applying.
 If one bank rejects your loan application based on your credit score, you must
immediately cease applying for a house loan with another bank. If you continue to
 apply for homes with multiple banking institutions, your credit score will suffer even
more.
 You should not strain your budget by not repaying debts incurred through excessive
personal loans or high credit limits. Having such past-due obligations will have a
negative impact on your credit history. The debt-to-income ratio will be used by
banks to approve your house loan. The higher the ratio, the less likely they are to
approve your loan.
Answer – 3 (a)

After the insured dies, the insurer pays a fixed quantity of money to the beneficiary under a
life insurance policy. Following the insured's death, the money is used to pay off the insured's
debts and meet the beneficiary's personal expenditures. It is an insurance that protects against
the chance of dying too soon. Life insurance plans are legal contracts in which you must pay
a premium in return for the coverage provided by the insurance provider.

Unit Linked Insurance Plan (ULIP) - A ULIP plan combines life insurance with
investment, allowing you to attain long-term goals while also investing. The ULIP
premium is split into two parts: one for life insurance and one for investing in your
preferred fund. It is an opportunity to generate long-term investment returns through the
purchase of market-related assets such as stock, debt, and balanced funds. The returns on
your plan will be determined by the performance of the fund you select. The returns on
your plan will be determined by the performance of the fund you select. We may increase
our ULIP returns by starting early, researching frequently, taking advantage of tax
benefits, and so on. ULIPs are thus an excellent long-term investment for you and your
family. ULIPs are perfect for retirement, children's education, and other financial goals
since they allow you to grow your money while simultaneously safeguarding your family
in the case of an emergency.

Term insurance is a sort of life insurance that offers financial protection to the insured
for a predetermined length of time. The death benefit is given to the beneficiary if the
insured individual dies within the policy term. Term life insurance is significantly less
expensive than permanent life insurance at first. There are no savings, but the
policyholder can select a larger life insurance policy at a cheaper cost than with a
comparable plan. Term insurance policies provide the following advantages: cheap cost,
convenient availability, customizability, tax benefits, accidental death benefits, and
maturity benefits. Term insurance is a basic life insurance plan that is crucial for
safeguarding the financial stability of you and your family. It ensures that your life
insurance beneficiaries receive a death benefit if you die during the term, and it provides
important financial security for your family.

A comparison of the two provides us with following factors:

Parameters ULIP Term Insurance
Type Insurance + Investment Insurance
Ideal For Anyone looking to invest in The family in the
the long-term breadwinner’s absence
Investment Partly invested in different No investments
funds
Insurance Partly invested as a premium Pure Insurance
for an insurance
Returns (if any) Returns depend on the No returns Death Benefit
volume of allocated money only
as well as market
performance
Cost-Effectiveness ULIP has multiple charges The premium amount for
related to it, so the rates of term insurance plans is
premium can be comparatively lower in the
significantly higher than the market
term insurance plan.
When to Buy? When you want insurance When you wish to protect
and higher returns in the your loved ones against
long-term certain mishaps and secure
their future financially
Charges Many charges – agent fees, No charges
fund switching charges,
policy administration
charges, fund management
fee, funds allocating charges
The ideal time to buy You can buy it anytime Between the ages 25 to 35
based on your requirements years
and your savings
Lock-in Period At least – 3 years to 5 years No Lock-in period (You
have to get it renewed every
year)
Security Not Secure Highly Secure
Maturity Benefits One can redeem units at the Until you opt for the Return
 prevailing unit prices of Premium Plan, you can’t
avail maturity benefits
Tax-savings All the payouts which are Deduction under Section 80
received are exempted from (C). The Claim Benefit to be
taxes u/s 10D of the Income paid to the nominee would
Tax Act, 1961. Moreover, also be tax-free under
tax rebates are also section 10(10D)
applicable for premium paid
u/s 80C
Switching Options Switching allowed between No switching option
the funds linked in the plan
and also to change the risk-
return
Tenure Depends on the investor, but Depends on the person
for good returns on buying the plan and the term
investment – a term of 10 to was chosen by him/her.
15 years is recommended. Preferably one must have a
Also, depends on the term insurance cover for as
performance of the market long as he/she has dependent
of funds one is invested in. family members.
Returns Depending on the fund’s Death benefits in case of an
market performance you unfortunate demise of the
have invested into policyholder. If the
policyholder has the cover
of return of premium, then
the insurer will repay the
paid premiums as a maturity
benefit if he/she survives the
policy term.

As a financial adviser, I would choose ULIP for the circumstances mentioned in the question
since ULIP invests to safeguard your financial future, whereas Term Insurance protects your
family when you are not there. Individuals can profit from ULIP plans in terms of both
investment and insurance; a 10- to 15-year term is also ideal to obtain the maximum return on
investment. ULIP is the greatest solution for balancing priorities and financial goals,
according to the question.
Answer 3 (b)

A Financial Advisor is a finance specialist who consults and advises people and corporations
on financial issues. Advisors use their knowledge and skills to create individualised financial
plans that help clients achieve their financial goals. They offer financial planning, investment
guidance, education, debt management, retirement planning, health and tax planning, and a
number of other services.

 A lump sum investment is a one-time significant quantity of money placed in a

mutual fund. This strategy is chosen by investors who can tolerate the high risk
since you pay the whole money all at once in any fund plan. We can invest in a
lump sum mutual fund with the assistance of a financial counsellor. The benefits
of lump sum investment include a lower initial investment, a shorter time horizon,
and reduced market volatility.

 Equity SIPs are investments in which shares of a firm are purchased at regular
periods. When you purchase these shares, you become a stakeholder in that
corporation. You benefit from the company's profits, dividends, and future growth
as a shareholder. It comes in two varieties: monetary and numerical. The benefits
of an equity SIP include minimal contributions, flexibility, and low risk. If you
invest in equities in a systematic and long-term manner, you may end up building
a substantial amount of money for yourself.

Factors to be considered

 Risk Appetite: The key distinction between Lumpsum investments and SIPs is the
degree of risk involved. SIPs provide greater capital protection because you only
invest a percentage of your overall corpus in the plan. For example, if you invest Rs.
1,20,000 in a fiscal year, you simply need to pay Rs. 10,000 in SIP each month. It
distributes the total investment and lowers the danger. Borrowers with a higher risk
 tolerance might choose a one-time investment, which invests the entire amount in the
market at once. It also offers much higher returns than other insurance.

 Returns: In both circumstances, the returns from these funds are determined by
current market conditions. SIPs often outperform in volatile markets, but Lumpsum
investments in ELSS provide superior returns when the market is stable.

 Lock-In Period: SIPs and Lumpsum investments have differing lock-in lengths; SIPs
typically give a minimum three-year lock-in that matures sequentially, but Lumpsum
investments are unlocked after three years all at once. For example, your Lumpsum
deposit investment in ELSS will mature as a whole after 3 years, whereas SIP bonds
would begin maturing one by one (depending on the months of investment) when the
3-year threshold is met.

 Rupee cost averaging: Since the investment is spread over a period of time, the
average cost of investing comes down. Therefore, investment in mutual funds through
SIP are least affected by market volatility.

Conclusion

As a financial planner, I believe that the Equity Systematic Investment Plan (SIP) is best
suited for the situation described in the question. This investment in mutual funds offers high
returns and assists in meeting long-term goals. It is also suitable for long-term investments
and is adaptable. Rather than a lump sum, where a single investment is made and a large sum
of money is paid in one instalment, a SIP of equity matches the priorities stated in the
question.

Life insurance is a contract in which the insurer pays a predetermined sum of money to the
beneficiary after the insured dies. It is a policy that guards against the possibility of dying
prematurely. If you have extra income, but are unclear how to invest it, consider making a
lump sum investment.