Abstract
An Analytical Study on Financial Planning Strategies of Working Professionals – Financial products act as an investment avenue and supply the specified financial security to the investors supported the risk-return profile of the financial products. In the past, traditional financial products were offered in India by banks (deposit account, credit account), life insurance Corporation (LIC), and postal department (recurring deposit, National Saving Certificate, Kisan Vikas Patra). However, in recent years with the arrival of liberalization of monetary services industry, diverse financial products are introduced like mutual funds, shares, derivatives, life and non-life insurance schemes (Unit Linked Investment Plans (ULIPs), pension plans, children education plans, etc.). Investment preference differs from person to person, as every individual behaves differently while investing. Investment behavior of a private is guided by his own set of circumstances. With an expectation of generating high returns over a period of your time and certain levels of risk, individuals invest in several financial products. The present study is an effort to research the investment preferences of salaried individuals towards financial products supported various demographic factors.
Investment Options of Working Professionals in India
Salaried individuals have different investment requirement than self employed or other professionals. They have fixed monthly cash inflow to satisfy their expenses and but various life goals. While most of the salaried individuals are covered under post-retirement security within the sort of employees provident fund or other mandatory retirement schemes, the corpus generated are often inadequate to meet post-retirement schemes.
Mutual Fund
This is an emerging area for investment and there’s an outsized sort of schemes within the market to suit the wants of an outsized number of individuals. The features of those schemes will determine the type of risk that the investment carried but overall the position remains an equivalent which is that for equity oriented funds the risk is greater but at the same time the chances of a return are also quite high. If there is a debt scheme in which the investor is putting the money, then the requirement is such that the returns expectations will have to be lowered because this is a low risk, low return investment. At an equivalent time, here is that the expectation that quite few new sorts of funds are going to be launched within the coming months within the Indian markets and this will provide another element or sector wherein the investor can invest their funds. The term’s meaning depends considerably on the context. In finance, generally, you’ll consider equity as ownership in any asset in any case debts related to that asset are paid off. For example, a car or house with no outstanding debt is taken into account the owner’s equity because he or she will readily sell the item for cash. Stocks are equity because they represent ownership during a company.
Company Fixed Deposit
Company fixed deposit is the deposit placed by investors with companies for a fixed term carrying a prescribed rate of interest. Used as a measure to create up capital for the corporate, these deposits offer high rates (as compared to bank FDs) of interest on investments. Company FDs are primarily meant for conservative investors who don’t wish to require the danger of vagaries of the stock exchange. But experts say the due diligence that an investor should undertake is analogous thereto before buying shares. Getting lured by the high rate of interest alone isn’t advisable.
Fixed Deposits in Bank
Fixed Deposits with Banks also are mentioned as term deposits. Minimum investment period for bank FDs is 30 days. Fixed Deposits in banks are for those investors, who have low risk appetite. Bank FDs is probably going to be less than market fund returns. Deposits in banks are very safe due to the regulations of RBI and therefore the guarantee provided by the deposit insurance corporation. The rate of interest on fixed deposits varies with term of the deposits Bank deposits enjoy exceptionally high liquidity. Loans can raise against bank deposits.
Post Office Savings
Post Office Monthly Income Scheme may be a low risk saving instrument, which may be availed through any Post Office. It provides an interest rate of 8% per annum, which is paid monthly. Minimum amount, which can be invested, is Rs. 1,000/- and extra investment in multiples of Rs. 1,000/-. Maximum amount is Rs. 3,00,000/- (if Single) or Rs. 6,00,000/-(if held jointly) during a year. It has a maturity period of 6 years. A bonus of 10% is paid at the time of maturity. Premature withdrawal is permitted if deposit is quite one year old. A deduction of 5% is levied from the principal amount if withdrawn prematurely. The 10% bonus is also denied. Deposits can be made in multiple of Rs.50. Deposits can be pledged. The rate of interest on deposits is slightly above banks. The interest is calculated half yearly and paid yearly.
Life Insurance Policy
Insurance companies offer many investment schemes to investors. These schemes promote saving and additionally provide insurance cover. L1C is that the largest life assurance company in India. Some of its schemes include life policies,
- Convertible whole life assurance policy,
- Endowment assurance policy,
- Jeevan Saathi,
- Money back policy
- Unit linked plan
- Term assurance
- Immediate annuity Insurance policies,
while catering to the danger compensation to be faced within the future by investor, even have the advantage of earning an inexpensive interest on their investment insurance premiums.
Statement of the Problem
Financial products act as an investment avenue and supply the specified financial security to the investors supported the risk-return profile of the financial products. There are several investment avenues available for the individuals to invest, Investment preference differs from person to person, as every individual behaves differently while investing. Investment behavior of an individual is guided by his own set of circumstances. With an expectation of generating high returns over a period of your time and certain levels of risk, individuals invest in several financial products. The present study is an effort to research the investment preferences of salaried individuals towards financial products supported various demographic factors. The study reveals the association of financial planning and investment behavior of the individuals.
Components of a Project Report
A project report varies according to the MBA final year project course at top colleges, depending on the consequences and the requirements of the concerned project. But broadly, a project covers the following components:
- Title page
- Table of contents
- Introduction
- Background of the project
- Project objectives
- Methodology
- Results
- Discussion and Analysis
- Conclusion
- Bibliography or references
- Appendices
Project Report Pages : 80
Can be used in : Finance Final Year Project
Delivery Time : Within 2 hours.
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