Chapter 1

Rationale of the study

Personal finance in simple words is handling money of an individual or a family. It deals with
various aspects of financial decisions and activities. It takes into account various financial risks
and future life events and also emphasizes on budgeting, earning, spending, saving, and
investing.
In other words we can say that personal finance is a science which deals allocation of financial
resources of an individual or household. It aims at financial security and independence so that a
person or a family can meet expected expenses and with standing monetary emergencies.
Adam Smith renowned as the  father  of modern economics, comments on personal finance in
his well-known book Wealth of Nations. According to him it is “great difficulty” of getting little
money. He also guides us that resources that can be used to create future economic benefit, such
as increasing income, decreasing expenses, or storing wealth, as an investment. In other words,
personal finance is about learning how to get what you want and how to protect what you’ve
got.
There is no trick to managing personal finances. Making good financial decisions is largely a
matter of financial literacy. Financial literacy is something which is not taught in schools and
colleges. It will help in maki8ng prudent financial decision. The better your understanding of
various financial products, the better your ability to plan, takes advantage of opportunities, and
avoids disappointments.
Personal finance also deals with financial planning there is famous quote by Benjamin Franklin
that is “If you fail to plan, you are planning to fail.” There are number of factors which should
be taken in to consideration.
Even though we cannot predict the future, but should be prepared for, because all of us have
responsibilities and goals to be fulfilled at every stage of life and these goals will only be
achieved if one has done the financial planning. Financial planner is a person who guides
through financial jungle and helps us to achieve financial goals.
It’s better to start planning now because prevention is always better than cure.  Financial
planning is a systematic approach whereby the financial planner aims to maximize customer's
existing financial resources by using the appropriate financial planning tools and investment
vehicles to best achieve his financial goals and objectives. Life goals include short term and
long term financial goals.

Financial Planning ensure that the right amount of money is invested in right asset class at the
right point of time in future to achieve specific Financial Goals. Financial Planning is based on
individual risk profiling, which takes into consideration risk appetite. It helps to look at 'big
picture' in terms of financial position and it examines current financial status and determines
objectives. It helps to meet financial goals given current situation and future plans. Helps to
identify weaknesses and recommends improvements.
One of the important jobs of financial planner is the risk management system to meet
uncertainties of life through efficient Retirement Planning, Insurance Planning, Tax Planning
and Estate planning. It is the process of managing your money to achieve personal economic
satisfaction.  It is a systematic and disciplined approach to manage finances to reach life goals,
which helps in creating wealth over a period of time. It helps you to become more responsible
towards disciplined investing.
"If You Born Poor It’s Not Your Mistake, But If You Die Poor Its Your Mistake"
by  "Bill Gates"
Always remember "In the beginning of your career you will work for money, but after few years
your savings will work for you, and learn that art".

Chapter 2
Industry Profile
And
Company Profile
 Industry Profile
For the past few decades of breakneck growth in emerging markets, India has been
overshadowed by its northern neighbor. Now, just as China's growth is slowing, India

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is picking up the pace and offering a glimpse of its true potential India has emerged
as one of the world fastest growing economies. Indian stock markets grew in size as
well as in terms of product offerings. This growth story helped consumers to get new
products, drop in brokerage fees and transaction costs under a robust regulatory
environment. Broking houses have also diversified to other businesses like investment
banking and wealth management, which was once the turf of foreign players of
international repute. Not only that but brokers are getting listed and stock exchanges
are becoming de-metalized and corporatized. E.g. Motilal Oswal Securities, JM
financial, Edelweiss

Reform-led growth of Indian stock markets

Over the past decade several measures helped growth story of Indian stock markets
electronic trading system, dematerializing securities, corporatizing and demutualising
exchanges, settlement through clearing corporations. Trading in derivatives has been taken
to expand the stock markets these are few prominent measures.
Securities and Exchange Board of India (SEBI) is regulatory authority for stock markets in
India which protects the interest of investors which was founded in 1992 through SEBI
ACT. SEBI is quasi-legislative,  quasi-judicial  and quasi-executive. It has power to
approve by−laws of stock exchanges, to require the stock exchange to amend their
by−laws, inspect the books of accounts and call for periodical returns from recognized
stock, exchanges inspect the books of accounts of financial, and intermediaries compel
certain companies to list their shares in one or more stock exchanges, registration brokers.
The broking industry is has witnessed the growth story and this in continue in the medium
to long term as well because the economy is moderately strong; participation through
mutual funds; new products are hitting the markets; there is wider integration with global
markets, and more thrust on reforms. The Indian stock markets’ long existence, for over
almost one and- a-half centuries, has enabled the broking industry to not only absorb and
adopt new opportunities but also seamlessly improvise their systems, which has paved the
way for its growth and diversification.

Proliferation in equity culture

 In 2011 only 18 million DEMAT accounts were held now it has reached to 3.23 Cr.
registered stock market investors in total. People are more comfortable via indirect
participation that is mutual funds (MF). Mutual fund participation is not only through cities
but also smaller towns.Contribution of smaller towns -beyond top 15 cities to mutual funds'
asset base surged 47 per cent to Rs 3.41 lakh crore by May-end due to investor-friendly
initiatives by SEBI. Various initiatives are taken by market regulator SEBI to increase
participation of retail investor say for example mutual fund to increase penetration of mutual
funds in smaller cities is paying dividend. SEBI allowed up to 30 basis points of extra
expenses to be charged to a fund to incentives distribution of funds in beyond top 15 cities.
This coupled with the increasing investor education programmes has resulted in increasing
investor awareness and many first time investors from smaller cities are investing into
mutual funds,"
57.21 per cent retail investors prefer to invest in stocks via mutual funds. 

Regulatory Framework
Indian Capital Markets are regulated and monitored by the Ministry of Finance, The
Securities and Exchange Board of India and The Reserve Bank of India.

 Ministry of Finance
The Ministry of Finance regulates through the Department of Economic Affairs - Capital
Markets Division. The division is responsible for formulating the policies related to the
orderly growth and development of the securities markets and protecting the interest of
the investors

 Securities & Exchange Board of India (SEBI) 

The Securities and Exchange Board of India (SEBI) is the regulatory authority
established under the SEBI Act 1992 and is the principal regulator for Stock Exchanges
in India. SEBI’s primary functions include protecting investor interests, promoting and
regulating the Indian securities markets. All financial intermediaries permitted by their
respective regulators to participate in the Indian securities markets are governed by SEBI
regulations, whether domestic or foreign. Foreign Portfolio Investors are required to
register with DDPs in order to participate in the Indian securities markets.

 Reserve Bank of India (RBI)

 The Reserve Bank of India (RBI) is governed by the Reserve Bank of India Act, 1934.
The RBI is responsible for implementing monetary and credit policies, issuing currency
notes, being banker to the government, regulator of the banking system, manager of
foreign exchange, and regulator of payment & settlement systems while continuously
working towards the development of Indian financial markets. The RBI regulates
financial markets and systems through different legislations. It regulates the foreign
exchange markets through the Foreign Exchange Management Act, 1999.

 National Stock Exchange (NSE) – Rules and Regulations

In the role of a securities market participant, NSE is required to set out and implement
rules and regulations to govern the securities market. These rules and regulations extend
to member registration, securities listing, transaction monitoring, compliance by
members to SEBI / RBI regulations, investor protection etc. NSE has a set of Rules and
Regulations specifically applicable to each of its trading segments. NSE as an entity
regulated by SEBI undergoes regular inspections by them to ensure compliance.
 Company Profile

Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 by Motilal Oswal  and  Ramdeo Agrawal as a
small sub-broking unit, with just 2 people running the show. Primary focus was given on customer-first
attitude, ethical and transparent business practices, respect for professionalism, research based value
investing and implementation of cutting edge technology it has enabled them to blossom into a customer
base over 9,00,000 spread over 2200 plus locations. Today Motilal Oswal Securities Ltd. is a well-
diversified financial services firm offering a range of financial products and services.
 Core Purpose (Vision)

To be a well-respected and preferred global financial services organization enabling wealth

creation for all our customers

 Core Values (Mission)

 Integrity

 Team work

 Meritocracy

 Passion and Attitude

 Excellence in education

MOSL is not only listed Indian stock markets but also on American and Hong Kong indices. If we look at
journey of MOSL, in 2006 the company entered  Private Equity  and  Investment Banking  business
which is one of main income source.  In the same year company acquired South Indian  brokerage  firm
Peninsular  Capital Markets.
Following year company tied up with  State Bank of India  and  Punjab National Bank  to offer online
trading to its customers. Company has one of India's largest  Equity  Dealing & Advisory rooms; spread
over 26,000 sq ft (2,400 m2) in Malad, Mumbai which was established in 2008.

Motilal Oswal Asset Management Company (MOASC) was incorporated on November 14 2008; it is a

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 100% subsidiary of Motilal Oswal Securities Limited. In the same year MOASC Company is registered
with SEBI as the Investment Manager for Motilal Oswal Mutual Fund.It provides Investment
Management and Advisory Services to investors based within and outside India and having Portfolio
Management Services business, ETFs and Mutual Funds. Motilal Oswal Asset Management Company
Ltd. is one of the fastest growing Asset Management Companies in India and has recently crossed the $1
billion in equity Assets Under Management (AUM) mark in June 2015 registering itself into an elite club.

AHFCL is a subsidiary of Motilal Oswal Securities Limited (MOSL) which is a part of Motilal Oswal
Financial Services Limited (MOFSL) Aspire Home Finance Corporation Limited (AHFCL) is a
professionally managed housing finance company with unique combination of financially sound and
technically experienced promoters who are well known in their domain for professional ethics and strong
execution capabilities.

Company has a diversified client base it includes retail customers (including High Net worth Individuals),
Mutual funds, foreign institutional investors, financial institutions and corporate clients. Company is
headquartered in Mumbai and as of March 2017, has a network spread over 600 cities and towns
comprising 2200+ Business Locations operated by them along with their Business Partners. As of now
company is having customer base of more 9, 00,000 clients. 

List of Products and Services

 Retail Broking and Distribution,
 Institutional Broking,
 Commodity Broking,
 Currency Broking Asset Management,
 Private Wealth Management,
 Investment Banking,
 Private Equity,
 Home Finance.

Research is the solid foundation on which Motilal Oswal Securities’ advice is based. Almost 10% of
revenue is invested on equity research and they hire and train the best resources to become advisors. At
present company has a team of 25 research analysts researching over 251 companies across 20 sectors.
From a fundamental, technical and derivatives research perspective, Motilal Oswal`s research reports

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 have received wide coverage in the media.
Personal Finance at MOSL
At Motilal Oswal Securities Ltd provides value added service to its customer for free. A comprehensive
evaluation of an individual's current pay and future financial state by using current known variables to
predict future income, asset values and withdrawal plans. This often includes a budget which organizes an
individual's finances and sometimes includes a series of steps or specific goals for spending and saving in
the future. At MOSL customer gets following services
1. Human Life value calculator

2. Financial Health Calculator

3. Goal Calculator

4. Risk Meter

5. Millionaire Calculator

6. Retirement Calculator

7. Compounding Magic

Human Life Value Calculator is used in case of an unforeseen event, to ensure that your family enjoys the
current lifestyle in your absence, you need to have adequate life cover. This Human Life Value calculator
will help you calculate the amount of life cover you need, to ensure a secured life for family in your
absence.
Financial Health Calculator tells us how healthy is your financial planning? Using this Financial Health
Calculator we can measure your financial performance to achieve your financial goals. Understand your
current financial position and find out weak areas of your financial health which you need to work on.
Goal Calculatorhelps investor calculate the future value of your goals and the monthly investment
required to fulfill it. Use this tool to estimate a certain amount to save every month based on your current
savings and investment period. Use this calculator to determine the time and monthly savings and to reach
your goal to be a millionaire.
Risk Meter analyses your investment behavior and identifies the type of investor you are. This tool tells
you about the various investment options that will suit your investment profile.
Millionaire Calculator answers simple question that “How long will you take to become a Millionaire?” It
may surprise you how quickly you can save upto one million. Use this calculator to determine the time it

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 will take you to save money and reach your goal to be a millionaire.
Retirement Calculator is used for a secured retirement plan. This retirement planning calculator helps you
estimate the monthly saving required to ensure that you have a retired life based on your current lifestyle.
Compounding Magic
Compounding Magic is a compound interest calculator which helps to understand the magical power of
compounding. Use this tool to estimate how compounding interest can grow your savings.
Customized financial planning is carried according to risk profile of a customer. There are number of
factors which are taken into consideration before preparing a financial plan.

Consistent efforts towards quality equity research have reflected in an increase in the ratings and rankings
across various categories in the Asia Money Brokers Poll over the years. MOSL has also been awarded
the Best Performing Equity Broker (National) at the CNBC TV18 Financial Advisor Awards for four
years in a row.

AHFCL has been rated “CRISIL A+/Stable” by CRISIL and “[ICRA]AA-(Stable)” by ICRA for long term
borrowings and “ICRA A1+” by ICRA for short term borrowings

 Awarded as
“India’s most admired and valuable Housing Finance Company” at the India Leadership Conclave
2015

 Received “Financial
Services Institution of the Year” award by ASSOCHAM India at ICT 4 Development Awards 2015

 Awarded "Agency Innovation of

the Year (BFSI Sector)" at the Brand Excellence Awards 2015 presented by ABP News

 MALA has been awarded as “Finnoviti

2016” by Banking Frontiers & Deloite.

 Our MD & CEO Mr. Anil Sachidanand received

“Community Leadership Award” to at the 6th International Conference & Game Changers Awards
organized by the HR Club (2016)

 Awarded “Fast 50 Brands 2016” by World Consulting

Research Corporation (2016)

 Awarded the “Most Admired Brand for Affordable Loans of the

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 year” at the 2016 Leaders Awards

 Received “The Innovative Marketing Practices Award” at 7th National

Conference and Game Changers Awards, 2017.

 Received “The Innovative Product and Services Award” at 7th National

Conference and Game Changers Awards, 2017.

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