This document discusses the importance of financial planning and creating a financial plan. It notes that a financial plan helps individuals achieve their life goals by making informed money management decisions. It also outlines some key questions to ask when making a financial plan, such as current financial situation and vision for the future. The document aims to study patterns in how individuals allocate savings across different asset classes and increase awareness of financial planning options.

1. By: Bunty Shah
Enrollment No: 125764339
Roll No: A12018
Management Trainee : Motilal Oswal Financial
Planning Department
Bombay Stock Exchange Institute Ltd

2. • A financial plan is a path to help you achieve your life’s financial goals. It
is the process of making learned money management decisions in order to
safeguard your future.
• It helps you to full fill financial goals and meet personal priorities. It takes
into consideration your available resources, responsibilities, lifestyle and
risk appetite. Allocating your savings across various asset classes to
achieve an appropriate risk-reward balance and ensuring long-term
financial security are the basics of financial plan.
• You need to ask yourself some questions before making a financial plan,
like:
1. What is your current financial situation?
2. What is your vision of your future financial situation?
3. How do you plan to achieve your vision?

3. • To identify investment habit of people.
• To analyze the characteristics of different asset class.
• To study changes in financial planning with change in age.
• To identify various avenues for investment.
• To spread awareness of financial planning.
• To examine factors influencing the investment decision.

4. I have come across various avenues available for an individual to invest
and ways to achieve long term and short term financial goals through
financial planning. It intend to study the pattern in which individual
allocates his savings in various asset class. It describes the awareness of
investor about various alternatives available to them. It also aims at
creating awareness of financial planning.

5. 1) Advising on clients current portfolio
Example:- Equities, Mutual Funds, Insurance, Etc
2) Recommending new products to clients in case the client is not able to achieve
his/her goal from the current financial plan

6. • Past performance of company
• Credibility of the company
• Credit rating of the company in case of company issuing
bonds , corporate fd’s
• Risk measure
• After sales service of the company
• Claim settlement ratio in case of insurance

7. • Investment made by the respondent in various
avenues
0
5
10
15
20
25
30
35
40
45
50
Life Insurance Fixed Deposit Mutual Fund Equity Market Gold PPF Post Office
Deposit
Respondent
Respondent

8. • Savings rate in India is comparatively higher than various
other countries.
• The major portion of financial saving goes into pension funds
and life insurance
• the prime two instruments for household long term saving like
pension saving and life insurance have come to an idle state
• Allocation of Portfolio is not upto the mark which makes the
low returns from the market developments

9. • After all this it can be stated that the fundamental corner stones
of successful investing are:
• Save regularly, Invest regularly
• Start Early
• Diversify
• Use tax shelter
• Keep a regular check on investment and modify plans as and
when needed

10. • Arrange for seminars and sessions
• Regular meetings
• Follow-up
• Goal should be properly divided
• Diversification
• Investment through SIP should be encouraged