Financial Planning for an Investor With Kotak Mahindra Babk

8/12/2019 Financial Planning for an Investor With Kotak Mahindra Babk

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SHRI RAMSWAROOP MEMORIAL GROUP OF PROFESSIONAL COLLEGES

LUCKNOW

A RESEARCH REPORT ON

"FINANCIAL PLANNING FOR AN INVESTOR"

IN KOTAK MAHINDRA BANK,

SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE AWARD OF

DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

GAUTAM BUDDHA TECHNICAL UNIVERSITY, LUCKNOW

FOR THE SESSION

2011-13

Mrs. Un!r "#! $%&'n(! )*+ S%,,&"! -

M&ss./'n'n' '' ,'', D!!"& r'&

411122500627

MBA 4IIn


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ACKNOWLEDGEMENT.

It is common knowledge that a guide plays the role of light in a maze of

darkness.

I would like to thank, Kotak Mahindra Bank for having given me an opportunityto undergo summer training in their company.

My deep-rooted respect and sincere gratitude to Mr. Amul harma !"egional

Manager# ,Mr.achin $aze !Branch Manager #, Mr.%inesh hendkar

!"elationship Manager-Business Banking# and Ms vandana yadav !facility

&uide# who in spite of their 'usy schedule listened to my pro'lems and

suggested prompt solutions.

(nce again, I would like to thank all the staff mem'ers and my friends

who during the course of my training helped me with my learning o')ectives.

I hope that I have 'een successful in my endeavour. %iscrepancies,mistakes, if any, are solely mine.

DEEPTI RAI

MBA 4FINANCE7


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PREFACE

Training constitutes an important part of a good practice Orientedmanagement course. According to the syllabus of MBA each student of

department has to go 6 week practical training in a commercial organiation

or industry. !o on partial ful"llment of this re#uirement$ % underwent this

training at8)"!8 M'#&nr' 'n8. &ractical training is necessary to learn as to

how theoretical can be put to the practical uses. % went to the training

knowing fairly well some basic principal of management and it's allied out in

the books are meant for ideal situation of a concern. !o$ much of that$ at

time$ it seems as if they ha(e lost their identity during my short stay at the

organization, I had a proper visit in bank. The way in which I collected information regarding

our project

In"!r'("&)n 9&"# (%s"),!r

As I was working on customer welfare activities so I focused on that and gone through site visit

specially 'n8 s&"!: I "';8! ") (%s"),!r< HR !rs)n< 'n ();;!("! , &n*)r,'"&)n *r),

"#!r!.

)


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Abstract:

.

*

This MBA +%,A,- pro/ect report on +%,A,-%A0 &0A,%, +O A, %,3!TO .%t takes

an overview of inancial !lanning helps you to give direction and meaning to your client"s financial

decisions. It allows him to understand how each financial decision affects other areas of finance #otak

$ahindra is one of India%s leading financial organizations, offering a wide range of financial services that

encompass every sphere of life. rom commercial banking, to stock broking, to mutual funds, to life

insurance, to investment banking, the group caters to the diverse financial needs of individuals and

corporates strengths and weaknesses and implications of financial plan and gives a detailed summation of

all recommendations the client"s in short and long term goals. This pro/ect describes abouttheclient"s current financial


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TABLE OF CONTENTS


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11

12.

13.

CONTENT

In"r)%("&)n )* ")&(.

O!("&! )* "#! S"%.

Title of the !roject.

+bjective of the tudy.

cope of the tudy.

R!&!9 )* ;&"!r'"%r!

C),'n r)*&;!

R!s!'r(# M!"#));)$.

Us! 'n !n!*&" )* *&n'n(! ;'nn&n$ r)(!ss

T#!)r!"&('; B'(8$r)%n.

Introductory -hapter.

!lanning !rocess.

ormation of oals.

D'"' An';s&s 'n Pr'("&('; R!r!s!n"'"&)n )* "#! P;'n.

F&n&n$

C)n(;%s&)n.

S%$$!s"&)n 'n R!(),,!n'"&)n.

A!n&

B&;&)$r'#.

PAGE NO.

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INTRODUCTION

OF TOPIC


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1.

The rapid growth of capital markets in India has opened up new investment avenues for

investors. #eeping this in mind the inancial Institutions provide number of services to its customer

with a wide spectrum of investment opportunities. In order to retain their customers they provide

them with special services besides traditional services.

The invention of new technology and services by financial institutions has given the

consumers a wide range of investment avenues to invest in. +ne of the special services brought out

by them is 4I5A5-IA6 !6A55I5 789I-7which aims at identifying a persons financial

goals, evaluating e:isting resource and designing the financial strategies that help the person toachieve those goals and enables him to earn ma:imum returns at minimum level of risk.

The stock markets have become attractive investment options for the common man. ;ut the

need is to be able to effectively and efficiently manage investments in order to keep ma:imum

returns with minimum risk.

inancial !lanning helps you to give direction and meaning to your clients financial decisions. It

allows him to understand how each financial decision affects other areas of finance. or e:ample,

buying a particular investment product may help your client to pay of his mortgage faster or may

delay his retirement significantly. ;y viewing each financial decision as a part of a whole, you may

help your client consider the long term and the short term effects on his life goals.


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OBECTI/E OF THESTUD


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2.

OBJECTIVE OF THE

STUDY

A. TITLE OF THE PROJECT

*+IAIA /AI& +(" A I$01("*

I K(1AK MA2I%"A BAK,

B. OBJECTIVE OF THE STUDY

To take an overview of the client"s in short and long term goals.

To have the clients current financial strengths and weaknesses and implications of financial

plan.

To study the clients financial objectives anchored to current resources.

To give a detailed summation of all recommendations.

To suggest appropriate financial plan for mutually selected recommendations.

To also give comprehensive economic overview of the clients financial plan, supported by

financial statements.

To follow step>by>step implementation and monitoring plan.


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C. SCOPE OF THE STUDY

!ersonal inancial !lanners are not just for wealthy people. 7very individual can benefitfrom objective help to create, grow, accumulate and utilize wealth to fulfil ones personal goals,

family goals and other lifestyle objectives systematically without any an:iety. inancial plannerscan guide individuals to achieve their ultimate aim of spending retired life peacefully without

compromising living standards. A ?ualified financial planner will provide advice on.

ystematic avings

-ash low $anagement

@ebt $anagement

Assets Allocation for Investment

$anaging 8isk through Insurance !lanning Ta: trategies to increase investible surplus

@istribute residual wealth through estate planning

inancial !lanning is a profession for people with good communication skills combined

with knowledge of how financial service industry works. As a inancial !lanner one could work fora bank, insurance company, a brokerage house or have own practice. $ost important is to

understand that the suitability of products you are guiding people to purchase is based on their 8isk

Appetite, Age and Time rame of oals and +bjectives. inancial !lanners need to update

themselves constantly on new products, services and ta: laws that might be good for their clients.This is a field that re=uires a life time of continuing education. A Trusted inancial !lanner can play

an important role in peoples lives helping them to achieve dreams such as owning a home, seeingtheir childrens education and enjoy an active retirement.


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RE/IEW OF

LITERATURE

11


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This project was undertaken to know what e:actly is theinancial !lanning, ow it is carried out ,Bho

carries it out, Bhy it is carried out, Bhen it is carried out ,and the most important Bhat is the benefit of

carrying it out. ;elow my =uestion were answered.

;asically inancial !lanning is the process of meeting life goals through the proper management of your

finances. There is a need for financial planning because the financial situation in the country has changed in

the last few years, this has changed in such a manner that it will be difficult for one to maintain a decent

standard of living with the current means this re=uires financial planning and in addition there are also several

individual specific factor that has to be fulfilled. inancial planning provides direction and meaning to ones

financial decisions. The process involves gathering relevant financial information, setting life goals, e:amining

customer current financial status and then coming up with a plan for customer on how he can meet with his

goals.

The process that is followed by the #otak bank is the planner first discuss the general 8ecommendations with

the client informally, this allows the clients to indicate their preferences and opinions on the options that have

been designed. +nce the planner and the client agree on the recommendations, a concise written proposal is

prepared along these linesC

An overview of the clients short and long term goals.

The clients current financial strengths and weaknesses and implications of financial plan.

The clients financial objectives anchored to current resources.

A detailed summation of all recommendations.

The financial plan for mutually selected recommendations.

A comprehensive economic overview of the client s financial plan, supported by financial

statements.

A step>by>step implementation and monitoring plan.

12


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PROFILE OF

THE

COMPANY

3.

O!r&!9

T#! K)"'8 M'#&nr' Gr)%+-

#otak $ahindra is one of India%s leading financial organizations, offering a wide range of financial

services that encompass every sphere of life. rom commercial banking, to stock broking, to mutual

funds, to life insurance, to investment banking, the group caters to the diverse financial needs of

individuals and corporates.

The group has a net worth of over 8s. /,3&( crore and has a distribution network of branches,

franchisees, representative offices and satellite offices across cities and towns in India and offices in

5ew


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H&s")r+-

The #otak $ahindra roup was born in '103 as #otak -apital $anagement inance 6imited. This

company was promoted by Dday #otak, idney A. A. !into and #otak E -ompany. Industrialists

arish $ahindra and Anand $ahindra took a stake in '10/, and that%s when the company changed

its name to #otak $ahindra inance 6imited.

ince then it%s been a steady and confident journey to growth and success.

'10/

'10)

'112

'11'

'11&

'113

'11/

'110

#otak $ahindra inance 6imited starts the activity of ;ill @iscounting

#otak $ahindra inance 6imited enters the 6ease and ire !urchase market

The Auto inance division is started

The Investment ;anking @ivision is started. Takes over I-+$, one of India%s largest

financial retail marketing networks

7nters the unds yndication sector

;rokerage and @istribution businesses incorporated into a separate company > #otak

ecurities. Investment ;anking division incorporated into a separate company > #otak

$ahindra -apital -ompany

The Auto inance ;usiness is hived off into a separate company > #otak $ahindra !rime

6imited Fformerly known as #otak $ahindra !rimus 6imitedG. #otak $ahindra takes a

significant stake in ord -redit #otak $ahindra 6imited, for financing ord vehicles.

The launch of $atri: Information ervices 6imited marks the roup%s entry into

information distribution.

7nters the mutual fund market with the launch of #otak $ahindra Asset $anagement

-ompany.


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&222

&22'

&22(

&22*

&223

&22/

#otak $ahindra ties up with +ld $utual plc. for the 6ife Insurance business.

#otak ecurities launches its on>line broking site Fnow www.kotaksecurities.comG.

-ommencement of private e=uity activity through setting up of #otak $ahindra 9enture

-apital und.

$atri: sold to riday -orporation

6aunches Insurance ervices

#otak $ahindra inance 6td. converts to a commercial bank > the first Indian company

to do so.

6aunches India rowth und, a private e=uity fund.

#otak roup realigns joint venture in ord -reditH ;uys #otak $ahindra !rime

Fformerly known as #otak $ahindra !rimus 6imitedG and sells ord credit #otak

$ahindra.

6aunches a real estate fund

;ought the &3 stake held by oldman achs in #otak $ahindra -apital -ompany and

#otak ecurities

O%r C)r)r'"! I!n"&"


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The Journey So Far:-


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Shanti Ekambaram

Jaimin Bhatt

-ohan Sh%noi

Uday Kotak+C,

Gaurang Shah+#D,

Shi'ai Dam

Dipak

Gupta

/a,an !,kari

0

ota. #ahindra O/d #utua/0ife

Insurance 0i)ited

aul/anratty

"in%%t Nayyar

alla'iShro))

S.S.hakur

anka D%,ai #hol%4tim%Dir%&tor+

!ndr%5 art5right 4 !lt. to aul/anratty

Uday Kotak

+C,

6

ota. #ahindra 3sset#ana4e)ent

Co' 0i)ited

7..Khanna

SukantK%lkar


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. Jayaram

NarayanS.!.

Bipin 7.

Shah

!mit D%,ai+C,

handra,h%kharSath%

8 ota. #ahindra Trustee Co)*any0i)ited

Giri,h Shar%dalal

u,har -a'ani

!nirudha Bar5%

Shail%,h /aribhakti+C,

K.-.Gh%rda

9

ota. #ahindra Trusteeshi*

Ser5ices

0i)ited

handra,h%khar

Sath%

B%ri, D%,ai

Shi'ai Dam

"ikram Sud

Uday

Kotak

: ota. Fore6 Bro.era4e0i)ited

DipakGupta

handra,h%kharSath%


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Dipak Gupta

Jaimin Bhatt

Shanti Ekambaram

; ota. #ahindra In5est)ents0i)ited 7.

Sundarraman

.Jayaram

Jaid%%p /an,ra

!,hra) 7amtoola

7a'i


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"i,5anathan "aradaraan

aul arambi

. Jayaram

/a,an !,kari

7u&hit uri

7a'i


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&bbn

nmb0

RESEARCH

METHODOLOG

6.


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8esearch design is a plan structured and strategies of investigation. It is the arrangement of

condition and analysis of data in a manner to combine relevance to the research purpose with

economy in procedure.

In order to achieve the objective it was necessary to talk to the customers and public to

draws the conclusions regarding the objective.

or visiting the customers and publics to collect the relevant informationH a =uestionnaire

has to be designed. The =uestionnaire was designed in such a manner to achieve the

objective of the research.

The sample size taken is '22 customers and publics.

TPE OF RESEARCH

In this project @escriptive 8esearch has been used.

D!s(r&"&! R!s!'r(#+

This is kind of research structure which is concerned with describing the characteristics of

the problem. In this way the main purpose of such a research design is to present a

descriptive picture about the marketing problem on the basis of actual facts. or this it is

important to obtain the complete and actual information about the subjects.

R!s!'r(# O!("&!+

The inancial !lanning is vast in nature. It is intended to provide a birds>eye view of the clients

assets. The inancial planner has to have bottomless knowledge of markets, funds etc. -onsidering

this fact, the scope of the study is defined to satisfy following objectivesC

Dnderstand the necessity of financial planning,

tudy and apply the financial planning process,

Identify various investment alternatives that can fit in client s profile, and

!rovide the client in an appropriate asset allocation mi: based on certain factors like time

horizon, risk tolerance etc.


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is important to the success of any financial plan.

7:amples of =ualitative data include the followingC

oals and objectives

ealth status of client and family members

Interests and hobbies

7:pectations about employment

8isk tolerance level

Anticipated changes in currentJfuture lifestyle

+ther planning assumptions.

D'"' S)%r(!s+

SECONDAR DATA+

The secondary data includes information obtained from various sources which includes

#otak $ahindra ;ank, ;ooks, ;usiness 5ewspapers, Bebsites, etc


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Use and!n!*&"s )* F&n'n(&'; P;'nn&n$

inancial !lanning helps you give direction and meaning to your client"s financial decisions. It

allows him to understand how each financial decision affects other areas of finance. or e:ample,

buying a particular investment product may help your client to pay off his mortgage faster or may

delay his retirement significantly

;y viewing each financial decision as a part of a whole, you may help your client consider the long term

and the short term effects on his life goals.


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1. Es"';&s# "#! C;&!n"-P;'nn!r R!;'"&)ns#&

;efore approaching a client, it is important for the financial planner to clearly understand his own

role. The role of the financial planner is not to suggest get>rich>=uick schemes. 8ather, it is to

evaluate and study the clients% needs, gather and analyze data and prepare a financial plan for now

and for the future. !reparation and implementation of the financial plan is a long>term relationship

and not a one>off e:ercise.

A financial planner has to prepare a plan that helps his clientsC>

+rganize their finances

Improve their cash flows

6ower their personal income ta:es

!lan for their retirement

Improve their investment performance

6ower their investment risk

Insure themselves appropriately and reduce insurance costs

$inimize their estate settlement costs

To achieve this, the planner needs to answer the following =uestionsC

Bhat is the most immediate concern of the clientK

Bhat is the client s current financial situationK

Bhat are the client s immediate and long>term needsK

Bhat is the gap between the client s needs and the current financial situationK

Bhat services can you apply to the client s needsK

ow would the client benefit from your service portfolioK

Bhat is the estimated time frame to complete the plan and accomplish goalsK

Is your role likely to be of an adviser, motivator, teacher, or directorK

C;&!n" '$r!!,!n"s 'n ()n*&!n"&';&" (;'%s!s

Bhen a client utilizes the services of a financial planner, heJshe shares financial and other

personal information with the planner that is normally not shared with anyone else. The client>planner

relationship presupposes a very high level of trust between the two parties. -onse=uently, the planner is

under obligation to maintain utmost confidentiality of this information. To prevent unnecessary litigation

and disputes in the future, it is recommended that the financial planner should enter into a client


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agreement which formalizes the relationship with the client and establishes the basis on which the service

would be provided. uch an agreement is also referred to as the %6etter of 7ngagement.%

2. G'"#!r (;&!n"s '"' 'n !"!r,&n! $)';s 'n !!("'"&)ns

The ne:t step involves researching and collecting information that will help the financial planner

design and implement a successful financial plan. There are two aspects to this e:erciseC>

FaG Dnderstanding the client%s current financial position.

FbG etting to know the client%s financial goals, objectives and re=uirements.

The first helps the financial planner understand where the client is at the moment and the second helps,

the financial planner understands where the client wishes to go.

F)r,%;'"&)n )* G)';s

inancial goals are the milestones that the client hopes to reach with the help of his financial

resources.

These milestones could be concerning different aspects of life likeC>

aving for marriage J childbirth

;uying a new car J house J electronic e=uipment

-reating a corpus for retirement

-reating a corpus for children%s education

Ade=uately insuring self and family

-reating cash reserves for emergency usage etc.

The financial planner should ensure that the goals areC

pecificH

8ealisticH

$easurable J ?uantifiable in money termsH and

To be achieved within a specific time period

+nce the client has stated clear, =uantifiable goals for financial planning, the ne:t step is to

rank those goals in order of importance. This is necessary because most clients do not have the

resources to fulfil all their goals. The financial planner must make it clear to the client that less

important goals must be sacrificed or postponed to achieve the more important ones.This done, the


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financial planner needs to work out the amount of money available for achieving these goals. To

achieve most financial goals, the client would need to start saving and investing appropriately.

Therefore it is important for the financial planner to know where the money to invest will be

coming from.

3.Analyze clients objectives, needs and current financial situation !reparation of the -lient%s !ersonal

inancial tatements !reparation of the -ash flow tatement and the ;udget !rioritizing oals

The ne:t step is to prioritize the financial goals of the client and work out the amounts that are re=uired

to be invested towards achieving these goals.

E';%'"! Q%';&"'"&! F'(")rs

?ualitative factors have a significant bearing on the financial plan for a client. The client%s tolerance

towards risk, investment preferences, current health status etc. need to be kept in mind while evaluating

alternative trategies.

4. Devel! !!#!#$%e &%#%e'$e& () !#e&e(% %*e +$(($l !l(

A financial planner needs to develop appropriate strategies for the client in the following areasC

-ash flow management

Insurance planning

Investment planning

8etirement planning

Income ta: planning

7state planning

C's# *;)9 ,'n'$!,!n"

-ash flow management is the means for funding clients goals in other planning areas, thereforeH

generally it is the starting point of the planning process. +nce the cash flow management plan is in place,

the inflows have to be channeled in one of the three areas > e:penses, reserves for emergencies and

capital accumulation.


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D'&;

E!ns!s

In(),!Cash F/o2

#ana4e)entE,!r$!n(

F%ns

C'&"';

A((%,%;'"!

+nce your clients have planned to ma:imize income and minimize spending, they need the

planner%s help to plan for their insurance, investment, education, income ta:, retirement, and their

estate.


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)5

Ass!ss&n$ )%r (%rr!n" 9!';"#

5et worthC >


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)7

@ATA A56A


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9.

F&n'n(&'; ;'nn&n$+-

F&n'n(&'; ;'nn&n$ *)r T'r%n S#'r,'+-

A personal financial assessment is designed to help you evaluate your current financial position andyour ability to achieve your objectives for the future.

+ct>&223

&*>Apr>&220

>

A$! 4!'rs7

(2

(

' month

/0

D!!n'n"

9ariable

Income from

businessJprofession

!ension

8ental income

Investment income

+ther income

T)"'; In(),!E!ns!s

L&&n$ E!ns!s

ousehold e:penses

ouse rent

7ducation e:penses

T)"'; In(),!

100

'2,22,220

2

2

2

2

2

2

10


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*4

-harity

+thers

T)"';

C)n"r&%"&)n ") E,!r$!n(

F%n

T'!s

alary>i:ed

0

2

2

0

2

2

0 0

2

2

0

2

2

0

)3,0&& /,('1 )3,0&& /,('1

alary>9ariable

Income from

businessJprofession

!ension

8ental income

+ther income

T)"';

E(!ss4s#)r"'$!7!*)r! s'&n$s

S'&n$s

-ontribution to 8etirement

assets

!Femployer%s contributionG

!Femployee%s contributionG

uperannuation

ratuity

!!

?

2

2

2

2

2

56


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*6

)%r !,!r$!n( *%n

C'"!$)r

T)"';

Amount transferred from savings account to investmentportfolioavings account amount allocated to emergency fund

In!s",!n" P;'nn&n$

C%rr!n" Ass!" A;;)('"&)n

A,)%n" &n

1size>fits>allG,but rather must tailored to

your specific needs. ;ased on the information that have provided, the current asset allocation if your portfolio

isC

Ass!" C;'ss

6i=uid unds

i:ed interest

Instruments

6arge -ap 7=uity

$id -ap 7=uity

T)"';

3

&3

/3

3

100.00


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*5

Pr)"!("&)n P;'nn&n$

The purpose of the protection planning section is to e:amine e:isting insurance coverage and make

recommendations. The goal is to determine whether there is ade=uate coverage andJor if any additional

coverage that may be needed.

L&*! Ins%r'n(!

Os!r'"&)n

-urrently you are covered by different life insurance policies worth sum assured of 8s. 0 laky by 6I-,

$a: 6ife and I5 9yasa.


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*

R!(),,!n'"&)n

8s. )',222 must be utilized

$utual funds > 8s. &.2) 6akh

urplus of year &220 > 8s. '.)' 6akh

&. ;ank loan for funding the balance 8s. &3.32 6akh.

D!s(r&"&)n

Annual Income

!'r

&221>&2&(

Ann%'; Es"&,'"! EMI &n Rs.

(.2* 6akh

N)"!C !lease note that our analysis shows that in the year &221, the annual income surplus is not e:pected

to support the 7$I in the year &221 by 8s. 1/,222. owever, as you will get ta: benefits under section

&*FbG for the interest portion paid towards home loan, you will be able to meet the 7$I e:pense by the

$oney saved on ta:es.


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*7

G)';+ K#%s#&s E%('"&)n

Os!r'"&)n

&2&3

&2&/

G)'; A,)%n"

4D!s&r!7

8s. (2,222Jyear

8s. '.' croreJyear

8s. 33.31 lakh

G)'; A,)%n"

4A(#&!';!7

8s. (2,222Jyear Fgrows at inflationrate of

8s. '.' croreJyear Fgrows atinflation rate

'2G

8s. 33.31 lakh of '2G

R!(),,!n'"&)n


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48

Os!r'"&)n

&2&3

-ollege education e:penses &2&/>&2&1

!rofessional educatione:pense

R!(),,!n'"&)n

&2(2

G)'; A,)%n"

4D!s&r!7

8s. (2,222Jyear

8s. &.// 6akhJyear

8s. 0' 6akh

G)'; A,)%n"

4A(#&!';!7

8s. (2,222Jyear Fgrows at inflation

rate of '2G

8s. &.// 6akhJyear Fgrows at

inflation rate of '2G

8s. 0' 6akh

&2&3 is e:pected to support the education e:penses as mentioned above.

&. Investment from the Annual surplus in the recommended portfolio to fund college and

professional

education e:penses

D!s(r&"&)n

Investment from

surplus

!'r

&2'2

&2''

&2'&

&2'(

&2'*>&2&)

A,)%n" ") ! &n!s"! 4Rs.7

00,)0& annual

*(,1(1

'.&* lakh

'.2/ lakh

'.30 lakh

N)"!C The Investment is e:pected to be made in the recommended asset allocation which is e:pectedto generate

'2.02 per annum


51/75

41

Os!r'"&)n

#hushi%s is e:pected to get married in &2&0. &2*)

Es"&,'"! A,)%n"

4D!s&r!7

&2,222

In*;'"&)n r'"!

4Ass%,!7

3

G)'; A,)%n"

4A(#&!';!7

&2,222


52/75

42

R!(),,!n'"&)n

In our analysis, we have taken the above e:pense as an annual regular e:pense and your cash flow is

supporting this

e:pense from your annual income surpluses from &221>&2*).

Os!r'"&)n

The probable year for your e:pected2n

e:penses in today%s value.child to get married is &2(&.


53/75

4)

An';s&s

;ased on your current and projected financial situation you cannot meet the above mentioned goals due to

retirement at age 32.

A,)%n" &n Rs. 4&n ")'s ';%!7

!'r

Annual household

e:penses

&2&)>&23/

G)'; A,)%n"

4D!s&r!7

8s. (./2 6akhJyear

G)'; A,)%n"

4A(#&!';!7

8s. (./2 lakhJyear

A,)%n" &n Rs. 4&n *%"%r! ';%!7

!'r

Annual household

e:penses &2&)>&23/

G)'; A,)%n"

4D!s&r!7

8s. 1.33 lakh per annum

G)'; A,)%n"

4A(#&!';!7

8s. 1.33 lakh per annum

5oteC


54/75


55/75

44

NET STEPS

G)';JN!!s

L&*! Ins%r'n(!

H!';"# Ins%r'n(!

R!(),,!n'"&)n *)r

!&s"&n$ &n!s",!n"

R!(),,!n'"&)n *)r

(%rr!n" 'nn%'; s%r;%s -

!'r 200?

Es"'"! P;'nn&n$

C'r $)';

N!"S"!


56/75

46

3nne6ure "

L&*! Ass%r!

@ate of ;irth

T'r%n

S#'r,'

&*th Lune ))

S%, Ass%r!

4G%'r'n"!!7

1,32,222

Ann%';

Pr!,&%,

&/,/*)

C),'n

N',! Ins%r!r

T!

6I->Leevan

Anand

!lan '*1

$AN

P);&( N)

Tarunharma

&*'&/02&)

Tarun

harma

T!r,

Pr!,&%

,

P'&n$

T!r,

!'r )*

C),,!n(!

,!n"

S%,

Ass%r!

Ann%';

Pr!,&%,

!'r )*

M'"%r&"

4G%'r'n"

!!7

M)! )*

P',!n" R!,'r8s

&

&3

/3

&22*

&2&1

&22(

3,22,222

Bhole 6ife

I5 9yasa

&(*&3/1)&

Tarunharma

/3

'2

&2/0

&223

(,22,22

&2,3')

Annual

!remium

/,'(2

8s. (,2/3 paid

semi

annually

*,(22

D6I! ''&3/103 '2 &2'3 ',32,222 Annually


57/75

45

3nne6ure $

A

ouse 8ent

7ducation

B

9acation

-harityJift

+thers

C

ome 6oans

9ehicle 6oan

Your Insurance (eed 3na/ysis

S%r&)rs L&&n$ E!ns!s 13,'1,0)3

2

2

O"#!r E!ns!s

2

2

2

O%"s"'n&n$ D!" ") ! P'& )**

!ersonal 6oansJ-redit -ards

2

',10,)21

',/(,)21

D Pr)"!("&)n *)r G)';s

ouseJ6and !urchase

Lewellery and Arts

!urchase of -ar

7ducation

$arriage

+ther goals

T)"'; F%ns N!!! ") ()!r E!ns!s< L&'&;&"&!s 'n G)';s 4ABCD7

Ass!"s C%rr!n"; A'&;';! ") S%)r" F',&;

avings account

6i=uid Assets

inancial Assets

i:ed interest investments

$utual funds

@irect 7=uity

7mployee stock option planF7+!G

Tangible Assets

8eal estate

+ther assets Fe.g. Art, -oin and tamp -ollectionG

8etirement Assets

!rovident und

uperannuation

ratuity

!ublic !rovident und

E

F

2

2

2

&2,22,222

2

2

','0,0&,&1/

',&',222

2

2

&,2/,201

/2,&/2

2

2

&,22,222

2

/,0),(*1


58/75

FINDING

4


59/75


60/75

68

CONCLUSION


61/75


62/75

LIMITATIONS+

'. The project work is mainly based on the above mentioned sources of information.

&. 6imitation of client in investing in particular kind of asset based on his age.

(. It is lot time to identify assets of customer

*. !lanner must have deep knowledge about market trends

3. it is broad process to identify customer financial status and their recommendation

62


63/75

6)


64/75

6*

SUGGESTIONS

RECOMMENDATIONS

;.SUGGESTIONS

RECOMMENDATIONS

T) "#! C;&!n"+

The most vital problem spotted is of ignorance. Investors should be made aware of the benefits.

Investors should be made to realize that ignorance is no longer a bliss and what they are losing by

delay in planning.

et measurable goalsC

et measurable goals that you want to achieve with a specific time. or e:ample

Bhat should be your lifestyle after retirement, or that to send children to good

chools

tart planning soonC

@elay in financial planning affects the whole big picture that he has in mind for

himself and his family. @eveloping good habits like saving, budgeting, investing and regularly

reviewing finances early in life, makes one better prepared to meet changes and handle

emergencies.

;e realistic in terms of e:pectationsC

inancial planning is a commonsensical approach to managing finances to reach life goals. It is

a lifelong process. There are certain e:traneous factors like inflation, changes in

macroeconomic policies or interest rates that may affect financial results.

Dnderstand the effect of each financial decisionC

To realize that each financial decision that is taken affect several areas of his life.

T) T#! P;'nn!r+

The planner should target for more and more young investors.


65/75


66/75

I. BOOKS REFERED+

BOOK NAME

1. ;odie, #ane E $arcus F&22*3G ecurity Analysis E !ortfolio $anagement, 5ew

Delhi; Prentice Hall of India Limited.

2. &. I.$ !andey F&22/G inancial $anagement New Delhi: Tata MacDraw Hill

Publishin !om"an#.

2. NEWSPAPER REFERED+

1. 7conomic Times and

&. inancial 7:press.

66

. III. WEBSITES USED+

www.e=uitymaster.com

www.cmlinks.com

www.nse.com

www.nyme:.com

www.netashare.com

www.kotak.com

www.investopedia.com

www.esnips.com
http://www.equitymaster.com/http://www.myiris.com/http://www.myiris.com/http://www.myiris.com/http://www.myiris.com/http://www.myiris.com/http://www.myiris.com/http://www.myiris.com/http://www.myiris.com/http://www.myiris.com/http://www.myiris.com/http://www.myiris.com/http://www.myiris.com/http://www.equitymaster.com/


67/75

. NEWSPAPER REFERED+

'. 7conomic Times and


65


68/75

6

A!n&

1>.311E(DI


69/75

67

d. I read the BL more than three days a week.

e. I subscribe to several financial journalsJinvestment magazines and read the

financial press each day.

2. H)9 *',&;&'r 'r! )% 9&"# "#! ('&"'; 'n &n!s",!n" ,'r8!"s

a. 9ery little understanding or interest.

b. 5ot very familiar.

c. ave enough e:perience to understanding the importance of diversification.

d. Dnderstand that markets may fluctuate and that different market sectors offer

different income, value and ta:ation characteristics.

e. Dnderstand all investment sectors, the risks, and understand the various factors

which may influence performance.3. W#&(# )n! )* "#! *);;)9&n$ !s" !s(r&!s #)9 9!;; )% *!!; )% 'r! ';! ") ,'n'$!

)%r 9' "#r)%$# "#! (),;!&"&!s )* &n!s",!n"s

a. I definitely need the help of a professional investment adviser.

b. I need a professional investment adviser to help me make decisions on investments.

c. I know what I want to do, but would prefer to have a professional investment adviser

to work with me in tailoring my investment plan and making the right decisions.

d. I prefer to make all investment decisions on my own.

=.F)r #)9 ;)n$ 9)%; )% !!(" ,)s" )* )%r ,)n! ") ! &n!s"! !*)r! )% 9)%; n!! ")

'((!ss &"

a. 6ess than & years.

b. ;etween & > ( years.

c. ;etween ( > 3 years.

d. ;etween 3 > ) years.

e. 6onger than ) years.

6 W#'" &s )%r (%rr!n" &n(),! r!%&r!,!n" 4&&!ns ;%s &n"!r!s"7 *r), )%r &n!s",!n"s

a. 6ess than or e=ual to &.

b. reater than &, but less than or e=ual to *.

c. reater than *, but less than or e=ual to /.


70/75

58

d. reater than /.

>. W#&(# &n!s",!n" ';'n(! ) )% *!!; ,)s" (),*)r"';! 9&"#

a. 6ess than or e=ual to &.

b. reater than &, but less than or e=ual to *.

c. reater than *, but less than or e=ual to /.

d. reater than /.

5. O"#!r "#'n )%r )9n #),!< #)9 ) )% *!!; ')%" )rr)9&n$ ") &n!s"

a. Bould not do.

b. 9ery uncomfortable.

c. -omfortable.

d. 9ery comfortable.

?. C)ns&!r&n$ "#! 'nn%'; r!"%rns )* "#! s& #)"#!"&('; &n!s",!n" ;'ns !;)9 )!r "#!;'s" "!n !'rs. B's! )n "#! r'n$! )* )ss&;! )%"(),!s s#)9n< 9#&(# ;'n 9)%; ! ,)s"

'((!"';! ") )% )r !s" s%&" )%r &n!s",!n" #&;)s)#

a. Average annualized returnC *, ;est caseC 3, Borst caseC &.

b. Average annualized returnC /, ;est caseC 1, Borst caseC >&.

c. Average annualized returnC 0, ;est caseC '&, Borst caseC >3.

d. Average annualized returnC '2, ;est caseC '3, Borst caseC >0.

e. Average annualized returnC '&, ;est caseC '0, Borst caseC >'2.f. Average annualized returnC '*, ;est caseC &*, Borst caseC >'&.

1. A "&('; &n!s",!n" )r"*);&) ()ns&s"s )* )"# &n!s",!n"s 9&"# #&$# !!("! r!"%rns 'n

#&$# r&s8 4&.!.< s")(8< )"&)ns< !r&'"&!s< r)!r"7 'n "#)s! 9&"# ;)9 !!("! r!"%rns

'n ;)9 r&s8 4&.!.< ('s#< ,)n! ,'r8!"< *&! &n(),!7. W#&(# )* "#! *);;)9&n$ sr!' )*

&n!s",!n"s 9)%; )% *!!; (),*)r"';! &n!s"&n$ &"

a. 2 igh 8iskJigh 8eturn, '22 6ow 8iskJ6ow 8eturn.

b. (2 igh 8iskJigh 8eturn, )2 6ow 8iskJ6ow 8eturn.

c. 32 igh 8iskJigh 8eturn, 32 6ow 8iskJ6ow 8eturn.

d. /3 igh 8iskJigh 8eturn, (3 6ow 8iskJ6ow 8eturn.

e. 02 igh 8iskJigh 8eturn, &2 6ow 8iskJ6ow 8eturn.

f. '22 igh 8iskJigh 8eturn, 2 6ow 8iskJ6ow 8eturn.


71/75

51

10. I* )% &n" n!! )%r ('&"'; *)r ,)r! "#'n 10 !'rs< *)r #)9 ;)n$ 9)%; )% !

r!'r! ") s!! )%r &n!s",!n" !r*)r,&n$ ))r; !*)r! )% ('s#! &"

a.


72/75

52

average return is ''.3 and the likelihood of a negative return is once every * years. A minimum

investment period of 3 years is advisable.

A$$r!ss&! - A !r #&$# r&s8 "'8!r 4100 H&$# R&s8< 0 L)9 R&s87

term returns.


73/75


74/75

5*


75/75

11.Bi/io4ra*hy'

I. BOOKS REFERED+

BOOK NAME

2. ;odie, #ane E $arcus F&22*3G ecurity Analysis E !ortfolio $anagement, 5ewDelhi;

Prentice Hall of India Limited.

$. &. I.$ !andey F&22/G inancial $anagement New Delhi: Tata MacDraw Hill

Publishin !om"an#.

II. NEWSPAPER REFERED+

'. 7conomic Times and


III. WEBSITES USED+

'. www.e=uitymaster.com

&. www.cmlinks.com

3.

0.

6.

www.nse.com

www.nyme:.com

www.netashare.com
http://www.equitymaster.com/http://www.cmlinks.com/http://www.myiris.com/http://www.myiris.com/http://www.myiris.com/http://www.equitymaster.com/http://www.cmlinks.com/http://www.myiris.com/http://www.myiris.com/http://www.myiris.com/http://www.myiris.com/

Documents

Financial Planning for an Investor With Kotak Mahindra Babk