A DISSERTATION ON

“A STUDY ON FINANCIAL PLANNING FOR

INDIVIDUALS WITH RESPECT TO MIDDLE
CLASS”

Submitted to
International School of Management & Research

IN PARTIAL FULFILLMENT OF TWO YEARS FULL TIME

COURSE POST GRADUATE DIPLOMA IN MANAGEMENT
(PGDM)

SUBMITTED BY
“FARHAN ANWER”
BATCH- 2018-20
UNDER GUIDANCE OF
“PROF. DHANANJAY PINGALE”

1
 DECLARATION
I am here by declaring that my dissertation Report titled “A STUDY ON
FINANCIAL PLANNING FOR INDIVIDUALS WITH RESPECT TO MIDDLE
CLASS” submitted by me to "International School of Management &

Research” in partial fulfillment of the dissertation program is original

and is not substantially the same as one which has already been submitted
in part or in full for any such similar qualification to the college to the
best of my knowledge.

Place: Pune …………………………………...……..FARHAN ANWER

Date: …………………… ……………………… PGDM 2018-20

2
 ACKNOWLEDGEMENT
I frequently say that “Knowledge is Power”. But this statement is true
only when we apply our knowledge in practical things. To achieve this,
my college, International School of Management and Research, provided
me the opportunity to work with real industry. I am declaring my humble
thanks to my college for providing such opportunities to the students.
I am thankful and obliged to Director Dr. Nilesh Bhutada and my internal
guide Prof. Dhananjay Pingale and all the faculty members of ISMR for
providing all the necessary support from their side. Without their
continuous guidance and support, it would have been difficult for me to
complete the project on time and in such a successful manner.
And without forgetting finally I would like to thank my friends and our
family members for their co-operation in making this project a success.

THANK YOU!

3
 Table of Contents

Chapter no. Topics Page No.

1 Executive Summary 5-6
2 Introduction 7-8
3 Significance of the Study 9-10
4 Scope and Objectives of the 11-12
Study
5 Financial Planning 13-24
6 Literature Review 25-27
7 Research Methodology 28-30
8 Data Analysis 31-40
9 Findings and Observations 41-43
10 Recommendations 44-45
11 Conclusions 46-47
12 Questionnaire 48-50
13 Bibliography 51

4
 CHAPTER: 1
EXECUTIVE SUMMARY

5
EXECUTIVE SUMMARY
This report is the study of financial planning for individuals, helping people to protect
and grow their wealth and providing personalized investment solutions to individual
investors. Financial Planning helps individuals to reach their determined goal that
requires money to achieve it. Financial assessment includes Financial Planning,
Wealth Planning, Tax Planning, and Retirement Planning. The study is done with the
help of various financial products. This is done to know individual rationale behind
various financial products with respect to their investment decision. Investment
decision is tradeoff between risk and return. All investment choices are made at points
of time in accordance with the personal investment ends and in contemplation of an
uncertain future.
An investment always concerns the outlay of some asset today (time, money, effort)
in hopes of a greater payoff in the future than what was originally put in. It always
considers time value of money. It talks about the sacrifice of known present value for
the unknown future rewards. The study helped in gaining insights about the various
investment decision done at different age according to their risk appetite, part of
income they can invest and what approach individuals considered while investing
depending upon their best knowledge. It also depends upon various factors such as
type of investment, amount of saving invested, time period considered by investors
while investing, grade etc. of investment and disinvestments. Further, such decision
making needs to be continuous as well as rational.

6
 CHAPTER: 2
INTRODUCTION

7
 INTRODUCTION
Financial planning is the process of managing an individual’s money to achieve
personal economic satisfaction. This planning process allows an individual to boost
his financial situation. Every person, family or house hold has a unique financial
position and any financial activity therefore must also be carefully planned to meet
specific needs and goals. A comprehensive financial plan can enhance the quality of
an individual life and increase his satisfaction by reducing uncertainty about his future
needs and resources. The specific advantages of personal financial planning include.
a) Increased effectiveness in obtaining, using and protecting his financial resources
throughout his life time.
b) Increased control of his financial affairs by avoiding excessive debt, bankruptcy
and dependence on others for economic security.
c) Improved personal relationship resulting from well-planned and effectively
communicated financial decisions.
d) A sense of Freedom from financial worries obtained by looking at the future,
anticipating expenses and achieving his personal economic goals.

People make hundreds of financial decisions each day. Most of these decisions are
quite simple and have few consequences. Some are simple and have few
consequences. While others are complex and have long term effects on their personal
and financial situations.

OBJECTIVES:-

Study on financial planning for individuals.

 To know the current strategy of investment

 To analyze the impact of Credit Rating towards financial Products.
 To Study various investment avenues available for individuals.
 To know the awareness about Tax Saving Structure.
 To give suggestion related to investment strategy for individuals.

8
 CHAPTER: 3
SIGNIFICANCE OF THE
STUDY

9
Concept & Significance of the Study of Financial Planning

It is an integral part of any individual’s life, especially in this modern world where
value of everything is expressed in terms of monetary value. The active working span
of human life is short as compared to the life span. This means people will be
spending approximately the same number of years in after retirement what they have
spent in their active working life. Thus it becomes important to save and invest while
working so that person will continue to earn a satisfying income and enjoy a
comfortable lifestyle.
Financial Planning enables a person to identify their goals, assess the current position
and takes necessary steps to achieve the goals. It helps us to understand how financial
decisions affect our life. Financial Planning is not just about investment planning but it
is about life time planning. Thus through proper financial planning a person can have
an easy and secured financial life.

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 CHAPTER: 4

SCOPE AND
OBJECTIVE OF THE
STUDY

11
Scope of the Study

The scope of study is getting familiar with various investment avenues available in
market. To study the life stages of an individual and to identify their risk tolerance,
income flow, life goals and current investment. Study should cover all areas of the
individual’s financial needs and should result in the achievement of each of the
individual’s goals.
The scope of planning will include the following:

 Risk Management and Insurance Planning

 Investment Planning
 Retirement Planning
 Tax Planning

Objectives of the Study

The Primary Objective:

 To understand financial planning done in India

 To spread awareness of financial planning
 To identify various avenues for investment

The Secondary Objective:

 To identify investment habit of people

 To study changes in financial planning with change in age.

 To examine factors influencing the investment decision.

12
 CHAPTER: 5
FINANCIAL PLANNING

13
Constituents of Financial Planning

A good financial plan should include the following

 Contingency planning
 Risk Planning (insurance)
 Retirement Planning
 Tax Planning
 Investment and Savings Option

Contingency planning
Contingency means any unforeseen event which may or may not occur in future.
Contingency planning is the basic and the very first step to financial planning. It was
found that a large number of people have invested in financial planning instruments
but have ignored their contingency planning. Why it is more important to have a
contingency plan? Many people would have planned for their future, which would
definitely help in long run, but there is always a million-dollar question to be asked,
what about today, is there a plan in place? Everyone would think that they have a
secure present with regular salary, but what if suddenly something happens and it is
not possible to attain that monthly income. There are many possibilities that due to
illness, injury or to take care of family members, a huge sum of money is required.
Moreover, in this era of pink slip and job hopping it’s not assured that the next job
will be available at the earliest.

Risk Planning
Risk Coverage- Every individual is exposed to certain type of risk whether it is due to
loss or damage of personal property, loss of pay due to illness or disability; or even
due to death. Such risk cannot be determined but on occurrence there may be a
financial loss to the individual or their family. Proper personal financial planning
should definitely include insurance.

14
One main area of the role of personal financial planning is to make sure that one has
the ability to carry on living in case of some unforeseen and unfortunate event.
Basically, insurance provides a safety net to provide the necessary funds when one
meets with events like accidents, disabilities or illnesses. One main contribution of
insurance is that it helps provides peace of mind, knowing that enough funds are at
hand in the event when things do not go according to expectations. This peace of
mind leaves one with the energy and confidence to move forward.

Retirement Planning
Retirement Planning- A retirement plan is an assurance that person will continue to
earn a satisfying income and enjoy a comfortable lifestyle, even when they are no
longer working. Due to the improved living conditions and access to better medical
facilities, the life expectancy of people is increasing. This has led to a situation where
people will be spending almost the same number of years in retirement what they
have spent in their active working life. Thus it has become imperative to ensure that
the golden years of the life are not spent worrying about financial hardships. A proper
retirement planning, to a very large extent, will ensure this. Planning ahead will let
you enjoy the retirement that you deserve.
The retirement strategies decided upon now makes a fundamental difference to the
degree of financial freedom one will experience when they do decide to take their
pension. Planning for retirement and choosing a pension strategy to safeguard
financial security can be a minefield. In the last few years, there have been many
changes; the volatility of the stock market, reduction of final-salary pension schemes,
the rise of buy-to-let property portfolios and changes in taxation and pension
legislation. These changes underline the importance of both setting a retirement plan
in place and of keeping it up- to-date.

Tax Planning
Tax Planning- A good plan is one which takes the maximum advantage of various
incentives offered by the income tax laws of the country. However, do understand that

15
the tax incentives are just that, only incentives. Financial planning objective should be
getting maximum advantage of various avenues. It is to be remembered that tax
planning is a part of and not financial planning itself. There are many investments
which do not offer tax shelter that does not mean they are not good investments. But
with the knowledge of the Income Tax (IT) Act one can reduce income tax liability. It
also helps to decide, where to invest and to claim deductions under various sections.
The income earned is subject to income tax by the government. The rate of income
tax is different for different income levels, and thus, the income tax payable depends
on the total earnings in a given year.

16
Investment Avenues

Life Insurance
Life Insurance is a policy provided by an insurance company, according to which in
exchange for premium payments, the insurer is obliged to pay a certain sum (a lump
sum or portions of smaller sums) to the beneficiary in the event of insured death. Life
Insurance is literally a matter of life and death, since purchasing Life Insurance is
basically planning for after the death. When healthy and well, people from all walks
of life prefer not to think that one day they would pass away. However, planning for
after the death may be as important as planning other significant actions in life. By
paying a very small sum of money a person can safeguard himself and his family
financially from an unfortunate event. Life insurance provides economic support to
the dependent in family and in some cases can even create an estate for heirs. Before
buying a Life Insurance Policy it is always important to find out why do you want to
buy Insurance and for what purpose. Whereas, how much Life Insurance Cover do
you need, comes second.
Few factors which need to be considered are:
 Age and number of dependents.
 Annual Income and Annual Expenses.
 Outstanding Liabilities like Home Loan, Car Loan etc. Investments and
Savings.
 Life Style Expenses. Money require in Future.

As a rule of thumb when buying first Life Insurance Policy it is suggested that person
should have Insurance Cover of at least 5 to 10 times of their annual income.
A wide range of insurance products are available in the market. Each insurance
product is different from the others having some unique attributes which are devised
to meet specific needs of different individuals. However, with such a wide range of
products available, it becomes very difficult for an individual to choose an insurance
plan that is best suited to meet their requirements. Based on the financial plans and
needs and one's affordability to pay premium, an individual can choose any of the
plans available in the market.

17
Some of those plans are listed in the table below:
i. Term Insurance
Term Insurance, as the name implies, is for a specific period, and has the lowest
possible premium among all insurance plans. Person can select the length of the term
for which they would like coverage, up to 35 years. Payments are fixed and do not
increase during the term period. In case of an untimely death, dependents will receive
the benefit amount specified in the term life insurance agreement. Term policies,
cover only the risk during the selected term period. If the policyholder survives the
term, the risk cover comes to an end. Person can renew most Term Insurance policies
for one or more terms even if their health condition has changed.

ii. Endowment Insurance

Combining risk cover with financial savings, endowment policies are the most
popular policies in the world of life insurance. Endowment insurance are policies that
cover the risk for a specified period and at the end the sum assured is paid back to the
policyholder along with all the bonus accumulated during the term of the policy. The
Endowment insurance policies work in two ways, one they provide life insurance
cover and on the other hand as a vehicle for saving. If the insured dies during the
tenure of the policy, the insurance firm has to pay the sum assured just as any other
pure risk cover. A pure endowment policy is also a form of financial saving, whereby
if the person covered remains alive beyond the tenure of the policy, he gets back the
sum assured with some other investment benefits.

iii. Whole Life Insurance

Whole Life Policies have no fixed end date for the policy; only the death benefit
exists and is paid to the named beneficiary. In whole life insurance plan, the risk is
covered for the entire life of the policyholder, irrespective of when it happens that is
the reason they are called whole life policies. The policy holder is not entitled to
receive any money during his or her own lifetime, i.e., there is no survival benefit.
This plan is ideal in the case of leaving behind an estate. Primary advantages of
Whole Life Insurance are guaranteed death benefits, guaranteed cash values, and
fixed and known annual premiums.

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 iv. Money-Back Plan
Money back policies are quite similar to endowment insurance plans where the
survival benefits are payable only at the end of the term period, plus the added benefit
of money back policies is that they provide for periodic payments of partial survival
benefits during the term of the policy as long as the policy holder is alive. An
additional and important feature of money back policies is that in the event of death at
any time during the term of the policy, the death claim comprises full sum assured
without deducting any of the survival benefit amounts. Money-Back plans are ideal
for those who are looking for a product that provides both - insurance cover and
savings. It creates a long-term savings opportunity with a reasonable rate of return,
especially since the payout is considered exempt from tax except under specified
situations.

ULIP
This invested amount of the premiums after deducting for all the charges and
premium for risk cover under all policies in a particular fund as chosen by the policy
holders are pooled together to form a Unit fund. A Unit is the component of the Fund
in a Unit Linked Insurance Policy in a ULIP, investors have the choice of investing in
a lump sum (single premium) or making premium payments on an annual, half-yearly,
quarterly or monthly basis. Investors also have the flexibility to alter the premium
amounts during the policy's tenure. For example, if an individual has surplus funds, he
can enhance the contribution in ULIP.
Conversely an individual faced with a liquidity crunch has the option of paying a
lower amount (the difference being adjusted in the accumulated value of his ULIP).
ULIP investors can shift their investments across various plans/asset classes
(diversified equity funds, balanced funds, debt funds) either at a nominal or at no cost.

19
Annuities and Pension
Insurance companies offer two kinds of pension plans - endowment and unit linked.
Endowment plans invest in fixed income products, so the rates of return are very low.
A pension plan or an annuity is an investment that is made either in a single lump sum
payment or through instalments paid over a certain number of years, in return for a
specific sum that is received every year, every half-year or every month, either for life
or for a fixed number of years. Annuities differ from all the other forms of life
insurance in that an annuity does not provide any life insurance cover but, instead,
offers a guaranteed income either for life or a certain period. Typically, annuities are
bought to generate income during one's retired life, which is why they are also called
pension plans. By buying an annuity or a pension plan the annuitant receives
guaranteed income throughout his life. He also receives lump sum benefits for the
annuitant's estate in addition to the payments during the annuitant's lifetime.

Types of Annuities / Pension Plans

i. Life Annuity: Guarantees a specified amount of income for lifetime. After
death, the amount invested is refunded to nominee.

ii. Guaranteed Period Annuity: Provides specified income for lifetime and
guarantees that nominee will receive payments for a certain minimum number
of years, even if person should die earlier. In case person lives longer than the
specified minimum number of years, they are entitled to receive annuity
payments for lifetime.

iii. Annuity Certain: Under this plan, the stipulated annuity is paid for a fixed
number of years. The annuity payments stop at the end of that period,
irrespective of how much longer person may live.

iv. Deferred Annuities: The premiums paid into such plans may be deducted
from one’s taxable income at the time of payment. In addition, the interest
earned on the annuities is not taxed immediately. But the proceeds of the
annuity will be taxable when they are paid to person.

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Equities
Equities are a type of security that represents the ownership in a company. Equities
are traded (bought and sold) in stock markets. Alternatively, they can be purchased
via the Initial Public Offering (IPO) route, i.e. directly from the company. Investing in
equities is a good long-term investment option as the returns on equities over a long
time horizon are generally higher than most other investment avenues. However,
along with the possibility of greater returns comes greater risk.

Stock market investments= Economics + Mathematics/Statistics + Psychology

Economics Deals with fundamentals of company. Statistics deals with study of
companies’ financial statement and its past performance in stock market. Psychology
deals with market sentiments (Herd mentality) which are most crucial as it can lead in
wrong direction.

Invest in Blue Chip Stocks

Stock of a well-established and financially sound company that has demonstrated its
ability to pay dividends in both good and bad times and is a leading player in its.
These stocks are usually less risky than other stocks.
Features of Blue Chip Stocks
There are no specific criteria for blue chip stocks. The most common characteristics
of such stocks include:
i. Revenues: Companies with revenues higher than that generated by industry
peers.
ii. Earnings: Companies that have been generating healthy earnings on a
consistent basis.
iii. Dividends: Companies that pay regular dividends to common stockholders,
even if their performance has been unsatisfactory in a particular period.
Moreover, the dividend payout is raised at regular intervals.
iv. Balance Sheet: The balance sheets are robust and their debt liabilities are not
extensive.
v. Credit Rating: Their credit ratings in the bond and unsecured debt markets
are high.

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 vi. Size: The market capitalization of these companies is higher than that of other
companies in the same industry.
vii. Product Portfolio: They have extensive and diversified product lines. They
also have a wide global presence.
viii. Competition: They are cost efficient, with high distribution control and
excellent franchise value, all of which contribute towards their competitive
advantage.

Mutual Funds
A Mutual Fund allows a group of people to pool their money together and have it
professionally managed, in keeping with a predetermined investment objective. This
investment avenue is popular because of its cost-efficiency, risk-diversification,
professional management and sound regulation. A person can invest as little as Rs.
1,000 per month in a Mutual Fund. There are various general and thematic Mutual
Funds to choose from and the risk and return possibilities vary accordingly.
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned
through these investments and the capital appreciation realized are shared by its unit
holders in proportion to the number of units owned by them.
Risk Hierarchy of Different Mutual Funds-
Different mutual fund schemes are exposed to different levels of risk and investors
should know the level of risks associated with these schemes before investing. The
graphical representation hereunder provides a clearer picture of the relationship
between mutual funds and levels of risk associated with these funds:

Certificate of Deposits
Certificate of deposit was introduced in India in 1991. It is a scheme of raising funds
by commercial banks, except rural banks and is a negotiable receipt of funds. Due to
their negotiable nature, they are also called Negotiable Certificate of Deposit (NCD).

22
It may be in a registered form or a bearer form. Unlike Treasury bills, this carries an
explicit rate of interest. Subscribers to the Certificate of Deposits are Individuals,
Corporations, Companies, Trusts, Funds and Associations etc. Though interest on
certificate of deposits is taxed, it is still a popular form of short- term investments for
companies due to following reasons:
o These certificates are fairly liquid.
o They are generally risk free.
o They offer a higher yield as compared to conventional deposits.

Public Provident Fund (PPF)

PPF is considered safe investment avenue. The current interest rate on PPF is 8.7%
per annum. Again like EPF the rate of interest is revised 8.80%. The government
modifies the same from time to time. The best part of PPF is that the interest thereon
is exempt from tax under section 10(11) of the Income Tax Act. Tax deduction can be
claimed on contribution made by an individual into his own PPF account or into the
PPF account of his spouse or children. PPF account can be opened in a nationalized
bank or a post office. It is a 15-year account. The entire amount including
accumulated interest can be withdrawn after 15 years. Many may not like to invest in
PPF due to its very long tenure (15 years). However, one may open an account and
contribute only small sums initially; after all minimum annual contribution is just Rs
500. In later years, contributions can be increased.

Real Estate Investment

Real Estate Investment is now treated as a major case of capital budgeting by using
state-of-the-art investment analysis which incorporates the future stream of income it
may generate and the associated risk adjustments. It has been the highlight of the
investment literature since the 1970’s when investment theorists extended techniques
such as probability, time value of money and utility into its analysis.

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Gold
The love for gold in India is legendary. There has always been a good demand for
gold in India making it the largest consumer of gold in the world. The consumption of
gold is mostly in form of jewelry. But as investment an investor generally buy gold as
a hedge or safe haven against any economic, political, social or currency-based crises.
These crises include investment market declines, inflation, war and social unrest.
Gold can be bought in various forms, one can either buy it in the form of physical
gold -- bars, biscuits and or coins or even in a dematerialized form. Gold jewelry is
not a good investment as it is not as liquid as bars or gold fund. The disadvantage is
that a huge amount is to be paid as making charges or design charges which is
discounted while selling it. The second disadvantage is most jewelers do not give cash
in lieu of gold. Instead they allow to exchange it for gold jewelry or in a bar or coin
form. 8.

Investment in Bank
Bank investment can be said as the most common or primary investment avenues. Not
many people recognize this sector as an investment avenue. Banks are the most
common and many a times people first investment experience. Few investments in
bank can be in following form such as Fixed Deposit, Saving Bank Account and
Recurring Deposit

Investment through Post Office

Share of Post office investment has also a major part in Indian Household investment,
which is mostly due to its all India presence of service network. Various avenues for
post office investment are such as Post Office Recurring deposit(RDA), Term
Deposit, National Saving Certificates, Post Office Kisan Vikas Patras, and Post Office
Monthly Income Scheme.

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 CHAPTER: 6
LITERATURE REVIEW

25
 LITERATURE REVIEW
In order to study the behavior a review of literature was done to develop the concept
and understand what had been done earlier. Stock market’s performance is not simply
the result of intelligible characteristics but also due to the emotions that are still
baffling to the analysts. Despite loads of information bombarding from all directions,
it is not the cold calculations of financial wizards, or company’s performance or
widely accepted criterion of stock performance but the investor‘s irrational emotions
like overconfidence, fear, risk aversion, etc., seem to decisively drive and dictate the
fortunes of the market.
Rajarajan (2000)1 in his study revealed that there was an association between the
lifestyle clusters and investment related characteristics.
Louhichi Wael (2004)2 examined the market behavior around the times of annual
earnings announcements made in the Paris Bourse to study both the informational role
of accounting numbers and the intraday speed of adjustment of stock prices to new
information.
Szyszka Adam (2008)3 in his study on efficient market hypothesis to behavioral
finance analyzed how investor’s psychology changes the vision of financial markets.
Vanita Tripathi (2008) 4 examines the perceptions, preferences and various
investment strategies in Indian stock market. Study reveals that investors use both
fundamental as well as technical analysis while investing in Indian stock market.
Gaurav Kabra, Prashant Kumar, Mishra, Manoj Kumar Dash (2010)5 from the
study concluded that modern investor is a mature and adequately groomed person.
E. Bennet, Dr. M. Selvam, Eva Ebenezer, V. Karpagam, S. Vanitha (2011) 6
concluded that the average value of the five factors, namely, return on Equity, Quality
of Management, return on Investment, Price to Earnings Ratio and various ratios of
the company influenced the decision makers.
Giridhari Mohanta and Sathya Swaroop Debasish (2011)7 studied that investors
invest in different investment avenues for fulfilling financial, social and psychological
need. While selecting any financial avenue they also expect other type of benefits
like, safety and security, getting periodic return or dividends, high capital gain,
secured future, liquidity, easy purchase, tax benefit, meeting future contingency etc.

26
Akiko Kamesaka, John R. Nofsinger, HidetakaKawakita (2010) 10 discussed in
the debate whether investor trading decisions are influenced more by information
about value or by psychological biases.

27
 CHAPTER: 7
RESEARCH
METHODOLOGY

28
RESEARCH METHODOLOGY
This chapter describes the details of the research design used for this study. It
discusses the population and sampling design, sample size, sampling technique, data
collection methods, research procedures and data analysis methods.

Research Design
The study was descriptive in nature with survey method being used to complete the
study. The purpose of methodology is to describe the purpose involve in the research
work. This descriptive study is concerned with finding out the what, where and how
of a phenomenon. This study therefore generalized the findings to individual investors
in capital market. The main focus of the study will be quantitative.

Sample Design:
Population includes respondents involve in capital market. Most of the sample will be
generated by personal contacts as the research requires those samples who are
investing in capital market. Individuals were approached through questionnaire and
their responses were recorded.
Probability Sampling – Stratified Random Sampling, individual investors are divided
in to 5 strata based upon their Occupation
 Students
 Salaried employee
 Professional
 Businessman
 Retired

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Sample size:
Sample of 80 individuals residing in Pune City is chosen.

Tool used for data collection:

Data was selected by using both primary and secondary method, in Primary method of
data collection questionnaire was used. Whereas in case of secondary data, it was
collected by using magazines and books.

Types of data collection:

Primary data:
The primary data was collected by asking the respondents those who invest in capital
market by themselves. These are those data which are collected a fresh and for the
first time and thus happen to be original in character.
Secondary data:
Secondary data are the information which is attained indirectly. They are the data
collected by someone else and which has already passed through statistical process.

Data Analysis:
Before processing the responses, the questionnaires were edited for completeness and
consistency.
Quantitative data was presented in tables and explanation in prose.
Specified analysis and comparative analysis.

30
 CHAPTER: 8
DATA ANALYSIS

31
DATA ANALYSIS
Descriptive analysis of data collected from questionnaire using pie charts and bar
charts.
There are 80 different individual investors of different ages and of different
occupation of which the survey has been taken.
Data analysis comprises of interpretation of data of the survey taken.

Q1. Are you an investor?

In this, 80 individuals were asked whether they were investing or not.

INVESTING?
Yes No
50 30

Investing?

38%
Yes
No
62%

Interpretation
Out of 80 individuals, 50 individuals stated they were investing while 30 stated they
were not investing anywhere.

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Q2. Occupation of individuals.
Occupations which comprises of Students, Salaried employee, Professional,
Businessman, retired individuals of which the response were taken.

Occupation No. of people

Salaried Employees 26
Professionals 9
Businessmen 9
Students 4
Retired 2
Total 50

Occupation

4%
8%
Salaried Employees
Professionals
18%
52% Businessmen
Students

18% Retired

Interpretation
Out of 50 respondents who were investors, 26 were salaried employees, 9 were
professionals, 9 were Businessmen, 4 were students and 2 were retired. It states not
only the people who were in earning phase were investing but also the students and
retired individuals were investing.

33
Q3. For how long they were investing?
It states about the period of investment i.e., from how long they are investing.

Length of Investment No. of Individuals

Last 10yr 14
Last 5yr 24
Last 3yr 12

Length of Investment

24% 28%
Last 10yr
Last 5yr
Last 3yr

48%

Interpretation
Out of 50 respondents who were investors, 28% are investing from last 10years, 48%
are investing from last 05 years and 24% are investing from last 3 years. It states
maximum respondent are investing from the longer period.

34
Q4. What Factor did you consider while investing?
Factor affecting the decision making is the risk and return factors which states
whether the investor is conservative or aggressive in nature.

Factor affecting investment No. of Individuals

Risks 16
Returns 0
both 34

Factor influencing Investment

32%
Risk
Returns

0% both
68%

Interpretation
Out of 50 respondent 68% considered both the factors which comprises of Risk and
return and 32% considered only risk factors which states respondent mainly focuses
on the tradeoff between the risk and returns for their portfolio.

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Q5. Where are you investing?
There are different investment avenues comprise with the combination of debt and
equity. It states about the nature of investor.

Investment Avenues No. of individuals investing

Mutual Funds 34
Fixed Deposits 27
Bonds 11
Insurance 24
Traditional Plans 6

Number of Investors out of 50

MUTUAL FUNDS 34

FIXED DEPOSITS 27

BONDS 11

INSURANCE 24

TRADITIONAL PLANS 6

Number of Investors out of 50

Interpretation
There are different investment avenues which includes Mutual Funds, Fixed Deposits,
Bonds, Insurance, Traditional Plan and it also states about the investor keen to invest
when they will earn.
Out of 50 respondents 34 invest in mutual Funds, 27 invest in fixed deposits, 11
invest in bonds, 24 invest in Insurance and 6 invest with the traditional plans. Many
individuals were noticed to be investing in more than one avenue.

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Q6. What approach do you considered while investing?
It states about the knowledge of respondent while investing in different investment
avenues.

Approach towards Investment No. of Individuals

Fundamental Analysis 31
Technical Analysis 19
News 27
Friends/Relatives 15

Approaches considered while investing

FUNDAMENTAL ANALYSIS 31

TECHNICAL ANALYSIS 19

NEWS 27

FRIENDS/RELATIVES 15

Approaches considered while investing

Interpretation
There are various factors depend upon investing one of the factor is approach - what
approach individual considered while investing. Many investors considered more than
one approach while investing. Out of 50 respondents 31 considered Fundamental
Analysis, 19 considered Technical Analysis, 27 considered News and 15 individual
take suggestions from family & friends. Therefore, it can be stated that most of the
individual see fundamentals of the company and news before investing in different
investment avenues.

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Q7. You want to do financial Planning for?
It states about the individual’s financial investment respective of their financial goals.

Financial Planning for? No. of Individuals

Education 4
Marriage 19
House 32
Car 26
Children Education 16
Children’s Marriage 9
Retirement 27

Financial Goal
EDUCATION 4

MARRIAGE 19

HOUSE 32

CAR 26

CHILDREN EDUCATION 16

CHILDREN MARRIAGE 9

RETIREMENT 27

Financial Goal

Interpretation
Financial goal differs according to age, number of dependencies etc. which includes
Education, Marriage, House, Car, Child’s education, Child marriage, retirement
planning and others. Out of 50 respondent’s maximum financial goal is to purchase a
house and want to do retirement planning when there is no source of income
generating.

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Q8. From where you are planning for your financial goals?
It states about the form where investor plan for their financial goals
Planning for Financial Goal No. of Individuals
On your own 31
Financial Planner 12
Wealth Management Firms 7

Planning for Financial Goals

14%

On your own

24% Financial Planner

62% Wealth Manager

Interpretation
Out of 50 respondents 62% individual investor invest with their own, 24% individual
plan for their financial goals with the help of financial planner, 14% of individual take
help of Wealth management firms.

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Q9. Part of income you like to invest?
It states what part of income (i.e., saving which is derived from income deducted from
expense) is invested for accomplishing the financial goals.

Part of Income Invested No. of Individuals

>30% of income 4
20% of income 25
10% of income 18
50% of income 3

Part of income invested

6% 8%

30% of income
20% of income
36%
10% of income
50% 50% of income

Interpretation
It states out 50 individuals 50% invest 20% of income,36% invest 10% of income, 8%
invest 30% of income and rest 6% invest in 50% of income for accomplishing
financial goals.

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 CHAPTER: 9
FINDINGS AND
OBSERVATIONS

41
FINDINGS AND OBSERVATIONS
In the following research, salaried employee is classified in three strata
 One strata are for the employee of age between 40-45
 Second strata are for the employee of age between 46-50
 Third strata are for the employee of age between 51-55

These three group of employee respond differently. This difference is because of

different priorities.
1. Most of the people prefer to keep their money float in the market despite keeping in
the bank of the low rate of return.

2. From the survey, we come to know about the increasing popularity of investment
among people due to the following reasons.
 Increase in working population, larger family incomes and high savings.

 Increase in tendency of people to hedge against the inflation.

 Availability of large ND attractive investment avenues.

 Provision for tax incentives in respect of investments.

 Most of the people prefer areas for investment is insurance sector and mutual
fund.

 According to the survey done, most of the people invest money to get higher
returns and gain on their saving.

 People presently make their investment in insurance and other tax saving
investment to save their tax liabilities.

 According to the survey most of the people invest in different investments and
would like to invest in corporate fixed deposits, government bond etc.

 Most of the investor falling in the category of salaried employee with age
group of 25-30 prefer to invest in mutual fund, fixed deposit.

 Most of the investors falling in the category of student interested to invest in

mutual funds.

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 Investor falling in the category of age group of 35-45 are investing for more
than 8 years.

 Most of the investor consider both risk and return factor while investing.

 Most of the investor invest on their own and if they face any problem, they
consider financial planner or wealth management firm.

 Investor falling in the category of age group of 25-35 prefer financial planning
for buying their own house.

 As experience increases, to the age of 45years the part of saving also increases
and then it decreases as after such an age, secured income is preferred.

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 CHAPTER: 10
RECOMMENDATIONS

44
 RECOMMENDATIONS
Today’s environment is competitive, hence to survive in such an environment people
need both power and wealth
Earlier people prefer to keep their money either in their home or prefer to keep in
bank but today people wanted to see their money grow as today world there are a lot
of options which are not only attractive but also grows fast
People who can bear the risk, the securities market are good for them. There is high
risk with high return according to their investment amount
Salaried people wants to secure their saving for them insurance and other government
instruments of investment are better option in which they get fixed growth up to
certain amount

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CHAPTER: 11
CONCLUSION

46
 CONCLUSION
Earlier people used to hold their money, that means they kept their money as cash in
hand or other safe places. But today people are highly aware of different investment
avenues to get better growth in their savings which are key of growth of wealth.
Instead of a range of investment option, student, salaried employees prefer to take
small to medium risk and they will invest in both risk and risk free options.
Instead of a range of investment option, professional and business man prefer to take
medium to high risk and they will invest mostly in risk options rather than risk free
options.
Instead of a range of investment option, retired people prefer to take low risk and they
will invest mostly in risk free options.

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 CHAPTER: 12
QUESTIONNAIRE

Name:- ________________________
Age:-

Gender
 Male
 Female
 Others

What is your occupation?

 Student

 Salaried employee

 Professional

 Businessman

 Retired

Are you an investor?

 Yes

 No

Where are you investing?

 Mutual funds

 Fixed deposits

 Bonds

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  Insurance

 Traditional plan

 Others __________________________

For how long have you been investing?

 Last 03 years
 Last 05 years
 Last 08 years
 Last 10 years

What factor did you consider while investing in any financial products?
 Risk

 Return

 Both

What approach do you considered while investing?

 Fundamental analysis

 Technical analysis

 News

 Suggestion from friends / relatives

 Others ____________________________

Do you have any financial planning for accomplishing your financial goal?
 Yes

 No

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If yes, from where you are planning for your financial goals
 On your own
 Financial planner
 Wealth management firm
 Others __________________________

If no, do you need any financial assistance?

 Yes

 No

You want to do financial Planning for

 Education

 Marriage

 House

 Car

 Child Education

 Child Marriage

 Retirement

 Others ________________________

How much part of income i.e., saving you like to invest?

 10 % of income
 30 % of income
 50 % of income
 70 % of income

50
 CHAPTER: 13
BIBLOGRAPHY

Websites
 www.google.com
 Moneycontrol.com
 Official website of companies

Newspapers

 Business Standards
 Economic Times

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