Type of research in project

Descriptive research design: As the data is been collected on one to one basis by
interviewing persons using structured questionnaire. It gives the detail overview about the
research.
Descriptive research study:-
 Determining the relationship between two & more variables.

 It is well structured.

 It is more economical, as we can gather more information.

 Problems can be found after the questionnaire preparation.

Sampling Methodology:-
Sampling Frame:-
A sampling frame  is the source material or device from which a  sample  is drawn.  It is a
list of all those within a  population  who can be sampled, and may include individuals,
households or institutions. A sampling frame is a list of all the items in your  population.
  Sampling frame is customers who are ready to invest.
Sampling

A sampling  is concerned with the selection of a subset of individuals from within a 

statistical population  to estimate characteristics of the whole population. Two advantages of
sampling are that the cost is lower and data collection is faster than measuring the entire
population. Each  observation  measures one or more properties (such as weight, location,
and colour) of observable bodies distinguished as independent objects or individuals.

For this project convenience sampling is used. Because of its limitation.

 Sample size of the project:-
Particulars Description

Types of Research Descriptive Research

Research Approach Quantitative & Qualitative Research

Sampling Method Non Probability-Convenience Sampling

Sample Sample was selected according to

convenience of researcher.

Sample Universe Customers of Motilala Oswal

Sample Frame Customer who are ready to invest in share

market.

Case Study 4

Secondary Data Collection Technique Internet

Chapter 6
Data Analysis
And Interpretation
 Case1 : MR V (Plant Head in Manufacturing company)
Family Details Name Age Relation
Client Mr V 36 Self
Spouse Mrs R 34 Dependant
Child Ms D 8 Dependant
Child Ms P 2 Dependant

Financial Goals
Particulars PV (₹ ) FV (₹ ) Year Rate
1. Emergency Fund 1,59,000 340,000 - -

2. 1st Child education 4,50,000 10,00,000 10 8%

3. 2nd Child education 4,50,000 15,00,000 16 8%

4. 1st Child Higher Education 6,00,000 18,00,000 13 8%

5. 2nd Child Higher Education 6,00,000 27,00,000 19 8%

6. 1st child Wedding 9,35,000 40,00,000 19 8%

7. 2nd child Wedding 7,92,000 50,00,000 24 8%

8. Retirement - 5,30,00,000 25 -
Portfolio

Asset Current Value (₹ )

1. Real Estate 2,750,000.00
2. Cash 100,000.00
3. Debt -
EPF+PPF 11,00,000.00
NCD 175,000.00
POMIS(Post office monthly scheme) 75,000.00
Fixed Deposit 50,000.00
4. Equity -
Stock 1,300,000.00
Fund 570,000.00
Total 6,120,000.00
Liabilities
Liabilities Current Value (₹ )
Loans -
Total Liability NIL

Net Worth (approx) ₹ 6,120,000.00

Cash Flow
Income Existing (₹ ) Suggested (₹ )
A. Income 1,92,500
180,000
 B. Salary 1,92,000
170,000
C. Rent -
10,000
Outflow
1. Household Expenses 60,000
75,000
2. Children Education 12,500
12,500
3. Contribution to Dependents 12,500
12,500
4. Home EMI 22,500
5. Insurance Premium 11,504
3,625
6. Investment 50,750
30,500
Total Outflow 1,47,254
1,34,125
Surplus 22,746
45,875
 Insurance Portfolio

Insurance Existing Existing Suggestion Monthly

Cover (₹ ) Premium Premium (₹ )

A. Life Insurance
Term Plan 1 Cr 705 1.5 Cr Term 1,750
Plan(Additional)

Traditional Plan 400,000 2,920 2,920

ULIPs
Total A 2.5 Cr 4,670
B. Health
Insuranc
e
Employer 5,00,000 - -
Own Buy 25 Lac 4,167
Family Floater
Total B 30 Lac 4167
C. Critical 50L Critical 2,667
illness illness
and 1 Cr Disability
accident
disabilit
y
Total 2,667
Total (A+B+C) 11,504
 How to Invest for goals

Goals Future Cost (₹ ) Resources Used Investment Needed

(₹ )
Emergency fund 340,000 Cash,FD, NCD, POMIS -
st 10,00,000/ 10 Yrs SIP in equity fund 4,500
1 Children education
nd 15,00,000/ 16 Yrs SIP in equity fund 2,500
2 Children education
st 18,00,000/ 13 Yrs SIP in equity fund 5,000
1 Children higher
education
nd 27,00,000/ 19 Yrs SIP in equity fund 3,250
2 Children higher
education
st 40,00,000/ 19 Yrs SIP in equity fund 7,500
1 Children wedding
nd 50,00,000/ 24 Yrs SIP in equity fund 5,000
2 Children wedding
Retirement 10 Cr/ 24 Yrs EPF, PPF, Mutual Fund 23,000
Investible Surplus Needed 50,750 P.M.

Insurance
1. Mr V is having a term plan of ₹1 crore, but he needs additional cover of ₹ 3 crore. This will
come for ₹ 3,333 per month approximately.

2. He has a family floater plan of ₹ 5 Lakh provided by employer. Advisor suggest that he
should buy additional 25 lakh family floater. 50 Lakh critical illness and 1 crore accident
disability plan which will cost him ₹ 2,667 monthly
 Investment Suggestion
1. Mr V should have a contingency fund which is 5 months of his expenses ₹ 6.8 lakh allocated
from Cash, FD, NCD, POMIS. This amount should be invested in liquid funds which will give
higher returns than savings (Funds give 7%-8% return) and liquidity as well.

2. For child 1 education Mr. V will require corpus of ₹10 lakh after 10 years, to achieve this goal
he should start SIP of ₹4,500 in equity fund.

3. For child 2 education Mr. V will require corpus of ₹15 lakh after 16 years, to achieve this goal
he should start SIP of ₹2,500 in equity fund.

4. For child 1 higher education Mr. V will require corpus of ₹18 lakh after 13 years, to achieve
this goal he should start SIP of ₹5,000 in equity fund.

5. For child 2 higher education Mr. V will require corpus of ₹27 lakh after 19 years, to achieve
this goal he should start SIP of ₹3,250 in equity fund.

6. MF SIP of ₹ 7,500 will help to build corpus of ₹40 lakh which will be used for son’s wedding
purpose.

7. MF SIP of ₹ 7,500 will help to build corpus of ₹40 lakh which will be used for child 1 wedding
purpose.

8. MF SIP of ₹ 5,000 will help to build corpus of ₹50 lakh which will be used for child 2 wedding
purpose.

9. Mr N wishes to retire after 24 years with corpus of ₹ 10 crore. This can be achieved by
investing amount of ₹23,000 in EPF,PPF and mutual fund.

Assumptions
1. Inflation rate at 8 %

2. Mutual funds will give 12% return.

3. Insurance amounts are indicative they may differ.

4. Income details are post tax.

 Case 2 :Mr. A(Marketing Analyst, Independent Age 26)
Family Details Name Age Relation
Client Mr A 27 Self
Financial Goals
Particulars PV (₹ ) FV (₹ ) Rate
1. Emergency Fund 99,000 3,80,000 8%
2. Retirement - 11,20,00,000 -

Portfolio
Asset Current Value (₹ )
1. Real Estate N.A
2. Cash 20,000
3. Debt
4. EPF 1,65,000
5. PPF 65,000
6. Equity
7. Mutual Fund 1,18,000
Total 3,68,000

Liabilities
Liabilities Current Value (₹ )
Loans -
Total Liability NIL

Net Worth (approx) ₹ 3,68,000

Cash Flow

Income Existing (₹ ) Suggested (₹ )

Income 65,000 65,000
Outflow
1. Household Expenses 30,500 30,500
2. Insurance Premium 2,125
3. Investment 18,000 30,000
Total Outflow 48,500 62,625
Surplus 16,500 2,375
 Insurance Portfolio
Insurance Existing Existing Suggestion Monthly
Cover (₹ ) Premium Premium (₹ )

A. Life Insurance
1. Term Plan 1 Cr Term Plan 833
2. Traditional Plan
3. ULIPs
Total A 833
B. Health Insurance
1. Employer -
2. Own Buy 5 Lac 583
Health Plan
Total B 583
C. Critical illness 709
and accident
disability
Total (A+B+C) 2,125

How to Invest for goals

Goals Future Cost (₹ ) Resources Used Investment

Needed (₹ )

1. Emergency fund 99,000 Cash -

2. Wedding 3,50,000/2 Years RD/ Debt MF 15,000 P.M.
3. Retirement 11.2 Cr/ 33 years PPF,EPF, Mutual 15,000 P.M.
Funds
Investible Surplus Needed 30,000 P.M.
 Insurance
1. Mr V is having a term plan of ₹1 crore, but he needs additional cover of ₹ 3 crore. This will
come for ₹ 3,333 per month approximately.

2. He has a family floater plan of ₹ 5 Lakh provided by employer. Advisor suggest that he
should buy additional 25 lakh family floater. 50 Lakh critical illness and 1 crore accident
disability plan which will cost him ₹ 2,667 monthly

Investment Suggestion

1. Mr A should have a contingency fund which of ₹ 99 thousand allocated from cash. This amount
should be invested in liquid funds which will give higher returns than savings (Funds give 7%-
8% return) and liquidity as well.

2. Mr A wants ₹ 2 lakh after two years for this advisor suggests that he should invest ₹15,000 in
recurring deposit or debt mutual fund.

3. Mr N wishes to retire after 33 years with corpus of ₹ 11.2 crore. This can be achieved by
investing amount of ₹15,000 in EPF,PPF and mutual fund.

Assumptions
1. Inflation rate at 8 %

2. Mutual funds will give 12% return.

3. Insurance amounts are indicative they may differ.

4. Income details are post tax.

 Case 3 : Mr K (IT Professional)
Family Details Name Age Relation
Client Mr V 35 Self
Spouse Mrs S 31 Dependant
Child Ms T 2 Dependant
Financial Goals
Particulars PV (₹ ) FV (₹ ) Year Rate
1. Emergency Fund 1,59,000 1,59,000 - -
2. Child education 19,75,000 68,00,000 16 8%
3. Wedding 20,00,000 1,17,00,000 23 8%
4. Retirement - 5,30,00,000 25 -

Portfolio
Asset Current Value (₹ )
1. Real Estate
-
2. Cash
3,00,000
3. Equity
i. Mutual Fund 65,500
4. Debt
-
i. EPF
1,10,000
ii. Insurance 1,00,000
iii. Sukanya Sanriddhi
40,000
Total
6,15,000

Liabilities
Liabilities Current Value (₹ )
Loans 4,21,000
Total Liability 4,21,000

Net Worth (approx) (₹ )1,95,000

Cash Flow
Income Existing (₹ ) Suggested (₹ )
Income 85,000 1,92,500
Outflow
Household Expenses 42,300 42,300
Contribution to Dependents 5,000 5,000
Loans EMI’s 6,625 -
Insurance Premium 5,183 6,000
Investment 10,000 31,500
Total Outflow 69,108 84,800
Surplus 15,892 200

Insurance Portfolio
Insurance Existing Existing Suggestion Monthly
Cover Premium(₹ Premium (₹
) )
D. Life Insurance
Term Plan 1.5 Cr Term Plan 1,250
Traditional Plan 7,00,000 3,000
ULIPs
Total A 700,000 3,000 1.5 Cr 1,250
E. Health
Insurance
Employer 2,50,000 2,142 -
Own Buy 10 Lac 1,608
Family Floater
Total B 250,000 2,142 10 Lac 3,750
F. Critical illness 25L Critical 1,000
and accident illness
disability 25L Disability
Total 1,000
Total (A+B+C) 6,000
How to Invest for goals
Goals Future Cost (₹ ) Resources Used Investment
Needed (₹ )
Emergency fund 1,59,000 Cash -
Children education 68,00,000/ 16 Yrs SIP in equity fund 10,500
Children wedding 1,17,00,000/ 23 Yrs SIP in equity fund 7,000*
Retirement 5.3Cr Cr/ 25 Yrs EPF, Mutual Fund 21,000
Investible Surplus Needed 31,500 P.M.
*Lack of surplus
Insurance
1. Mr V is surrender traditional plan which will save monthly premium of ₹ 3,000. Instead he
should buy a term plan of 1.5 crore for 25 years which will cost him ₹1,250.

2. They should buy family floater plan of ₹ 10 Lakh which while retaining employer’s health
plan for his parents. Mr V should buy another 25 Lakh plan which also takes care of critical
illness which will cost him ₹1,000.
 Investment Suggestion
1. Couple should repay expensive gold loan of ₹2.4 lakhs using surrender value of insurance
surplus.

2. Mr V should build contingency fund of ₹ 1.5lakh allocated from cash holdings. This amount
should be invested in liquid funds which will give higher returns than savings (Funds give 7%-
8% return) and liquidity as well.

3. For his son’s education Mr. V will require corpus of ₹68 lakh he should start SIP of ₹10,500 in
equity fund, the latter will have to put off till a further rise in income.

4. MF SIP of ₹ 7,000 will help to build corpus of ₹1.17 crore which will be used for son’s
wedding purpose but due to lack of surplus this is not attainable they will invest should invest
as after rise in income.

5. Mr V wishes to retire after 25 years with corpus of ₹ 5.3 crore. This can be achieved by
investing amount of ₹21,000 in EPF and mutual fund.

Assumptions

1. Inflation rate at 8 %

2. Mutual funds will give 12% return.

3. Insurance amounts are indicative they may differ.

4. Income details are post tax.

 Case 4 Mr N (Architect)
Family Details Name Age Relation
Client Mr N 41 Self
Spouse Mrs V 35 Dependant
Child Mr K 7 Dependant
Financial Goals
Particulars PV (₹ ) FV (₹ ) Years Rate
1. Emergency Fund 3,80,000 3,80,000 - 8%
2. Child education 12,00,000 29,25,000 11 8%
3. Wedding 900,000 38,60,000 19 8%
4. Retirement 3,80,00,000 19 -

Portfolio
Asset Current Value (₹ )
1. Real Estate
28,00,000
2. Cash
450,000
3. Debt
-
i. EPF
2,60,000
ii. PPF
1,50,000
iii. Postal Income
3,00,000
4. Equity
-
i. Mutual Fund
7,71,000
ii. Stock
2,30,000
Total
49,61,000

Liabilities

Liabilities Current Value (₹ )

Loans 20,00,000
Total Liability 20,00,000

Net Worth (approx) (₹ )29,61,000

 Cash Flow
Income Existing (₹ ) Suggested (₹ )
Income 1,40,000 1,40,500
Outflow
Household Expenses 54,000 42,300
Loans EMI’s 22,000 22,000
Insurance Premium 2,083 8,154
Investment 19,000 55,058
Total Outflow 97,083 1,39,212
Surplus 42,917 788

Insurance Portfolio

Insurance Existing Existing Suggestion Monthly

Cover (₹ ) Premium Premium(₹ )

G. Life Insurance
Term Plan 75 L 1,083 2.8 Cr Term Plan 4,308
Traditional Plan
ULIPs
Total A 75 L 1,083 3.55 Cr 5,391
H. Health Insurance
Employer
Own 5,00,000 1,000 Buy 20 L top up 763
plan
Total B 5,50,000 1,000 25 Lac 2,763
I. Critical illness 25L Critical illness 1,000
and accident 25L Disability
disability
Total 1,000
Total (A+B+C) 2,083 8,154
How to Invest for goals
Goals Future Cost (₹ ) Resources Used Investment
Needed (₹ )

Emergency fund 1,59,000 Cash -

Buying a car 6,00,0000 Stocks/MF -
Children education 30,00,000/ 11 Yrs SIP in equity fund 9,312
Children wedding 38,60,000/ 19 Yrs SIP in equity fund 4,465
Retirement 3.5Cr Cr/ 19 Yrs EPF, PPF, Post Scheme 34,872
Annual Vacation - Debt MF 6,409
Investible Surplus Needed 55,058 P.M.

Insurance

1. Mr N is having a term plan of ₹75 lakh, but he needs additional cover of ₹ 2.8 crore. This
will come for ₹ 4,308 per month approximately.

2. He has a family floater plan of ₹ 5 Lakh which is sufficient for now.He should buy another

20 Lakh top up plan which also takes care of critical illness which will cost him ₹1,000.
 Investment Suggestion
1. Mr N should have a contingency fund which is 5 months of his expenses ₹ 3.8 lakh
allocated from cash holdings. This amount should be invested in liquid funds which will
give higher returns than savings (Funds give 7%-8% return) and liquidity as well.

2. Financial advisor suggests that that Mr. N should allocate portion of his MF corpus to buy
car without taking loan.

3. For his son’s education Mr. N will require corpus of ₹30 lakh he should start SIP of ₹9,312
in equity fund.

4. MF SIP of ₹ 4,465 will help to build corpus of ₹38.6 lakh which will be used for son’s
wedding purpose.

5. Mr N wishes to retire after 19 years with corpus of ₹ 3.8 crore. This can be achieved by
investing amount of ₹34,872 in EPF,PPF and Postal scheme.

6. Surplus of ₹6,409 should be invested in debt mutual fund.

Assumptions
1. Inflation rate at 8 %

2. Mutual funds will give 12% return.

3. Insurance amounts are indicative they may differ.

4. Income details are post tax.

 Case 5: Mr. A
(Assistant manager in insurance company)
FAMILY DETAILS
Name Age Relation
Client Mr. A 35 Self
Spouse Mr. S 31 Wife
Child BOY 1 Son
Financial Goals
Particulars PV (₹ ) FV (₹ ) Years Rate
Emergency Fund - 11,35,000 - 8%
Vacation 4,00,000 5,00,000 3 8%
House 17,05,000 25,00,000 5 8%
Child Education 25,50,000 1,00,00,000 18 8%
Child Marriage 36,50,000 2,50,00,000 25 8%
Retirement 1,07,00,000 8,00,00,000 26 8%

Portfolio
Asset Current Value (₹ )
Real Estate
47 Lakh
Cash
92,000
Debt
i. FD /RD
12,00,000
ii. EPF
8,00,000
iii. PPF
-
iv. Postal Income
-
Equity
Mutual Fund
2,24,000
Stock
59,000
Other
-
Total
70,75,000
Liabilities

Liabilities Current Value (₹ )

Home Loan 34,00,000

Net Worth (approx) (₹ )36,75,000

Cash Flow
Income Existing (₹ ) Suggested (₹ )
Income 2,44,000 2,44,000
 Outflow
Household Expenses 45,500 45,500
Contribution To dependent 15,000 15,000
Home loan EMI 57,000 57,000
Insurance Premium 1,758 4,917
Investment 8,000 1,11,000
Surplus 1,17,000 11,350
 Insurance Portfolio

Insurance Existing Existing Suggestion Monthly

Cover (₹ ) Premium Premium(₹ )

A. Life Insurance
Term Plan 1 Cr. 758 1 Cr. Self + 50 1358+758
lakh(Wife) plan
Traditional Plan - - - -
ULIPs - - - -
Total A 1 Cr. 758 2 Cr. 2,058
B. Health Insurance
Employer 7 Lakh - - -
Own 10Lakh 1,000 15 Lakh Family 500
floater plan
Total B 17 Lakhs 1,000 32 Lakh 1,500
C. Critical illness - - 50 lakh critical 1,334
and accident illness+1 Cr.
disability Accidental
disability
Total - - 1.5 Cr. 1,334
Total (A+B+C) - 1,758 - 4,917
How to Invest for goals
Goals Future Cost (₹ ) Resources Used Investment
Needed (₹ )

Emergency Fund 11,35,000 Fixed Deposit –

Vacation 5,00,000/3yrs. MF in equity 12,500
House 25,00,000/5yrs. MF in equity 43,500
Child Education 1,00,00,000/18yrs. MF in equity 15,000
Child Marriage 2,50,00,000/25yrs MF in equity 20,000
Retirement 8,00,00,000/26 yrs. EPF, Stock, MF in 20,000
equity
Investible Surplus Needed 1,11,000

Insurance

1. Mr N is having a term plan of ₹1 Cr, but he needs additional cover of ₹ 50 lakh for his wife.
This will come for ₹ 2,058 per month approximately.

2. He has a family floater plan of ₹ 17 Lakh which is sufficient for now. He should buy
another 15 Lakh which will cost around ₹ 1500. Critical illness plan of ₹ 50 Lakh and
accidental disability of ₹ 1 Cr which will cost him ₹1,000.
 Investment Suggestion
1. Mr N should have a contingency fund which is 5 months of his expenses ₹ 3.8 lakh
allocated from cash holdings. This amount should be invested in liquid funds which will
give higher returns than savings (Funds give 7%-8% return) and liquidity as well.

2. Financial advisor suggests that that Mr. N should allocate portion of his MF corpus to buy
car without taking loan.

3. For his son’s education Mr. N will require corpus of ₹30 lakh he should start SIP of ₹9,312
in equity fund.

4. MF SIP of ₹ 4,465 will help to build corpus of ₹38.6 lakh which will be used for son’s
wedding purpose.

5. Mr N wishes to retire after 19 years with corpus of ₹ 3.8 crore. This can be achieved by
investing amount of ₹34,872 in EPF,PPF and Postal scheme.

6. Surplus of ₹6,409 should be invested in debt mutual fund.

Assumptions
7. Inflation rate at 8 %

8. Mutual funds will give 12% return.

9. Insurance amounts are indicative they may differ.

10. Income details are post tax.