A RESEARCH PROJECT REPORT

ON
“FINANCIAL PLANNING OF SALARIED EMPLOYEES
IN HDFC BANK”

Submitted to:
Dr. A.P.J Abdul Kalam Technical University, Lucknow

In the partial fulfillment for the award of the degree of

Master of Business Administration
(Degree Programme of AKTU, Lucknow)

Batch: 2020-22
Under the Guidance of:

Dr. Ruchi Singh

(Professor)

Submitted by:
Keshav Sharma
MBA 4th SEMESTER
ROLL NO. 2002630700025

VIDYA SCHOOL OF BUSINESS

VIDYA KNOWLEDGE PARK,
1
BAGHPAT ROAD, meerut-250002

2
 DECLARATION

I undersigned, hereby declare that the project titled A RESEARCH

PROJECT REPORT
ON
“FINANCIAL PLANNING OF SALARIED EMPLOYEES
IN HDFC BANK”
submitted in partial fulfillment for the award of Degree of Master of
Business Administration of A P J Abdul Kalam Technical
University is a bonafide record of work done by me under the
guidance of PROFF. Dr. RUCHI SINGH MBA Department, Vidya
School of Business. This report has not previously formed the basis
for the award of any degree, diploma, or similar title of any
University.

……/……./ 2021 Signature

KESHAV SHARNA
ROLL NO. 2002630700025
 Vidya School of Business

CERTIFICATE

This is to certify that the report titled “ A RESEARCH PROJECT

REPORT ON FINANCIAL PLANNING OF SALARIED
EMPLOYEES
IN HDFC BANK” being submitted by Keshav Sharma, Roll no

2002630700025 in partial fulfillment of the requirements for the award

of the Degree of Master of Business Administration, is a bonafide record

of the project work done by Keshav Sharma of MBA department,

Vidya School of Business.

PROF. Dr. Ruchi Singh Dr. Vasudha Sharma

Assistant Professor Director

 ACKNOWLEDGEMENT
It is my pleasure to be indebted to various people, who directly or indirectly contributed in

the development of this work and who influenced my thinking, behavior, and acts during

the course of study.

I am thankful to Mrs. Vasudha sharma, Director of Department for his support,

cooperation, and motivation provided to me during the training for constant inspiration,

presence and blessings.

I also extend my sincere appreciation to Project Guide Prof Dr. RUCHI SINGH

Professor of Management Department VSB, Meerut who provided his valuable

suggestions and precious time in accomplishing my project report.

Lastly, I would like to thank the almighty, parents, Director and HOD of the institute for

their moral support and my friends with whom I shared my day-to-day experience and

received lots of suggestions that improved my quality of work.

(Keshav Sharma)
 A SUMMER INTERNSHIP PROGRAMME ON

FINANCIAL PLANNING OF
SALARIED EMPLOYEES IN HDFC
BANK
 TABLE OF CONTENTS

S No. Topics Page No

1 INTRODUCTION 9-36

1.1 Background of the study 9-13

1.2 Need and Significance of the study 13-17

1.3 Statement of problem 18-28

1.4 Objectives of the study 28-36

2 LITERATURE REVIEW 37-39

4 RESEARCH METHODOLOGY 40-45

5 DATA ANALYSIS

6 FINDINGS (DISCUSSION) 46-60

7 CONCLUSIONS AND RECOMMENDATION 61-62

8 APPENDICES 63-71

9 REFERENCES 72
 EXECUTIVE SUMMARY

HDFC Bank is one of India’s leading private banks and was among the
first to receive approval from the Reserve Bank of India (RBI) to set up
a private sector bank in 1994.

Today, HDFC Bank has a banking network of 5,653 branches and

16,291 ATM's in 2,917 cities/towns.
HDFC Bank offers a wide gamut of commercial and transactional
banking services to businesses and organizations of all sizes. Our
services include working capital finance, trade services, transactional
services and cash management.
HDFC Bank offers a diverse range of financial products and banking
services to customers through a growing branch and ATM network and
digital channels such as Net banking, Phone banking and Mobile
Banking
Under our treasury services, we help businesses generate better returns
on their funds and manage financial risk. We focus on three main
product areas: foreign exchange and derivatives, local currency money
market and debt securities, and equities.
 CHAPTER I

Introduction
to
Industry

11
Bank may be defined as a financial institution which is engaged in the business of keeping
money for savings and maintaining accounts and issuing loans & credit etc. A set of
services intended for private customers and characterized by a higher quality than the
services offered to retail customers.

Based on the notion of tailor-made services, it aims to offer advice on investment,

inheritance plans and provide active support for general transactions and the resolution of
asset-related problems.

The essential function of a bank is to provide services related to the storing of deposits and
the extending of credit. Basic function may include Credit collection, Issuer of
banking notes, Depositor of money and lending loans.

Now a day’s banking is not in its traditional way, with the advancement of technology it’s

focusing on more comfort of customer providing services such as:

 Online banking
 Investment banking
 Electronic banking
 Internet banking
 Pc banking/mobile banking
 E-banking

The importance of banking sector is immense in the progress and prosperity of any State
or country.

Banking in India

Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet
new challenges posed by the technology and any other external and internal factors. For the
past three decades India's banking system has several outstanding achievements to its credit.
The most striking is its extensive reach. It is no longer confined to only metropolitans or
cosmopolitans in India. In fact, Indian banking system has reached even to the remote
corners of the country. This is one of the main reasons of India's growth process.

12
 A brief history
Banking in India originated in the last decades of the 18th century. The oldest bank
inexistence in India is the State Bank of India, a government-owned bank that traces
its origins back to June 1806 and that is the largest commercial bank in the country. Central
banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over
these responsibilities from the then Imperial Bank of India, relegating it to commercial
banking functions. After India's independence in 1947, the Reserve Bank was nationalized
and given broader powers. In 1969 the government nationalized the 14 largest commercial
banks; the government nationalized the six next largest in 1980.

Currently, India has 69 scheduled commercial banks (SCBs) - 27 public sector banks (that is
with the Government of India holding a stake), 23 private banks (these do not have
government stake; they may be publicly listed and traded on stock exchanges) and 30
foreign banks. They have a combined network of over 1,00,000 branches and 50,000ATMs. 
According to a report by ICRA Limited, a rating agency, the public sector banks hold over
75 percent of total assets of the banking industry, with the private and foreign banks
holding18.2% and 6.5% respectively.

From World War I to Independence: 

The period during the First World War (1914-1918) through the end of the Second World
War (1939-1945), and two years thereafter until the independence of India were challenging
for Indian banking. The years of the First World War were turbulent, and it took its toll
with banks simply collapsing despite the Indian economy gaining indirect boost due to war-
related economic activities. At least 94 banks in India failed between 1913 and 1918.

Post-independence:

The partition of India in 1947 adversely impacted the economies of Punjab and West
Bengal,  paralyzing banking activities for months. India's independence marked the end of a
regime of the Laissez-faire for the Indian banking. The Government of India initiated
measures to play an active role in the economic life of the nation, and the Industrial Policy
Resolution
adopted by the government in 1948 envisaged a mixed economy.This resulted into greater i
nvolvement of the state in different segments of the economy including banking and
finance. The major steps to regulate banking included:

13
  In 1948, theReserve Bank of India, India's central banking authority, was nationalized,
and it became an institution owned by the Government of India.

 In 1949, the Banking Regulation Act was enacted which empowered the Reserve
Bank of India (RBI) "to regulate, control, and inspect the banks in India."

 The Banking Regulation Act also provided that no new bank or branch of
an existing bank could be opened without a license from the RBI, and no two banks
could have common directors.

However, despite these provisions, control and regulations, banks in India except the State
Bank of India, continued to be owned and operated by private persons. This changed with
the nationalization of major banks in India on 19 July, 1969.

Nationalization of Banks

Banking System in India is dominated by nationalized banks. The nationalization of banks

in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major
objective behind nationalization was to spread banking infrastructure in rural areas and
make available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969.
Before 1969, State of India (SBI) was only public sector bank in India. SBI was nationalized
in 1955 under the SBI Act of 1955. The second phase of nationalization of Indian banks
took place in the year 1980. Seven more banks were nationalized with deposits over 200
crores.

Private Banks
All the banks in India were earlier private banks. They were founded in the pre-
independence era to cater to the banking needs of the people. But after nationalization of
banks in 1969 public sector banks came to occupy dominant role in the banking structure.
Private sector banking in India received a fillip in 1994 when Reserve Bank of India
encouraged setting up to private banks as part of its policy of liberalization of the Indian
Banking Industry. Housing Development Finance Corporation Limited (HDFC) was
amongst the first to receive an ‘In principle’ approval from the Reserve Bank of India (RBI)
to set up a bank in the private sector. Private Banks have played a major role in the
development of Indian banking industry. They have made banking more efficient and
customer friendly. In the process they have jolted public sector banks out of complacency
and forced them to become more competitive. 

14
 Growth and Present Status of Banks

In the early 1990s, the then Narsimha Rao
Government embarked on a policy of liberalization, licensing a small number of private
banks. These came to be known as New Generation tech-
savvy banks, and included Global Trust Bank (the first of such newgeneration banks to be
set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank (earlier as
UTI Bank ), ICICI Bank and HDFC Bank . This move, along with the rapid growth in the
economy of India, revitalized the banking sector in India, which has seen
rapid growth with strong contribution from all the three sectors of banks, namely,
government banks, private banks and foreign banks.
The revenue of Indian banks grew four-fold from US$ 11.8 billion to US$ 46.9 billion,
whereas the profit after tax rose nearly nine-fold from US$ 1.4 billion to US$ 12 billion
over 2001-105. This growth was driven primarily by two factors. First, the influx of Foreign
Direct Investment (FDI) of up to 74 per cent with certain restrictions. Second, the
conservative policies of the Reserve Bank of India (RBI), which have shielded Indian banks
from recession and global economic turmoil.
Currently, banking in India is generally fairly mature in terms of supply, product range and
reach-even though reach in rural India still remains a challenge for the private sector and
foreign banks. In terms of quality of assets and capital adequacy, Indian banks are
considered to have clean, strong and transparent balance sheets relative to other banks
incomparable economies in its region. The Reserve Bank of India is an autonomous body,
with minimal pressure from the government. The stated policy of the Bank on the Indian
Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been
true. With the growth in the Indian economy expected to be strong for quite some time-
especially in its services sector-the demand for banking services, especially retail banking,
mortgages and investment services are expected to be strong. One may also expect
takeovers and asset sales.

Future of Banking Sector and Initiated Reforms

Financial sector reforms were initiated as part of overall economic reforms in the country
and wide ranging reforms covering industry, trade, taxation, external sector, banking and
financial markets have been carried out since mid-1991. A decade of economic and
financial sector reforms has strengthened the fundamentals of the Indian economy and
transformed the operating environment for banks and financial institutions in the country.
The sustained and gradual pace of reforms has helped avoid any crisis and has actually
fuelled growth. The most significant achievement of the financial sector reforms has been
the marked improvement in the financial health of commercial banks in terms of capital
adequacy, profitability and asset quality as also
greater attention to risk management. Further, deregulation has opened up new opportunities
for banks to increase revenues by diversifying into investment banking, insurance, credit
cards, depository services, mortgage financing, securitization, etc. At the same time,
15
liberalization has brought greater competition among banks, both domestic and foreign, as
well as competition from mutual funds, NBFCs, post office, etc. Post-WTO,
competition will only get intensified, as large global players emerge on the scene. Increasing
competition is squeezing profitability and forcing banks to work efficiently on shrinking
spreads. Positive fallout of competition is the greater choice available to consumers, and the
increased level of sophistication and technology in banks. As banks benchmark themselves
against global standards, there has been a marked increase in disclosures and transparency
in bank balance sheets as also greater focus on corporate governance.

Major Reforms in Banking Sector

Some of the major reform initiatives in the last decade that have changed the face of the
Indian banking and financial sector are:

 Interest rate deregulation. Interest rates on deposits and lending have been deregulated
with banks enjoying greater freedom to determine their rates.

 Adoption of prudential norms in terms of capital adequacy, asset classification,

income recognition, provisioning, and exposure limits, investment fluctuation reserve,
etc.

 Reduction in pre-exemptions – lowering of reserve requirements (SLR and CRR), thus

releasing more lendable resources which banks can deploy profitably. Government
equity in banks has been reduced and strong banks have been allowed to access the
capital market for raising additional capital.

 Banks now enjoy greater operational freedom in terms of opening and swapping of
branches, and banks with a good track record of profitability have greater flexibility in
recruitment.

 New private sector banks have been set up and foreign banks permitted to expand
their operations in India including through subsidiaries. Banks have also been allowed
to set up Offshore Banking Units in Special Economic Zones.

16
  New areas have been opened up for bank financing: insurance, credit cards,
infrastructure financing, leasing, gold banking, besides of course investment banking,
asset management, factoring, etc.

 New instruments have been introduced for greater flexibility and better risk managem
ent: e.g. interest rate swaps, forward rate agreements, cross currency forward
contracts, forward cover to hedge inflows under foreign direct investment, liquidity
adjustment facility for meeting day-to-day liquidity mismatch.

17
Company
Profile

18
HDFC Bank Limited is an Indian banking and financial services company, headquartered in
Mumbai, Maharashtra. HDFC Bank is India's largest private sector bank by assets and
worlds 10th largest bank by market capitalization as of April 2021. It is the third largest
company by market capitalisation of $122.50 billion on the Indian stock exchanges.] It is
also the fifteenth largest employer in India with nearly 120,000 employees.
HDFC Bank was incorporated in 1994 as a subsidiary of the Housing Development Finance
Corporation, with its registered office in Mumbai, Maharashtra, India. Its first corporate
office and a full-service branch at Sandoz House, Worli were inaugurated by the then Union
Finance Minister, Manmohan Singh.
As of 30 June 2019, the Bank's distribution network was at 5,500 branches across 2,764
cities. The bank also installed 430,000 POS terminals and issued 23,570,000 debit cards and
12 million credit cards in FY 2017. It has a base of 1,16,971 permanent employees as of 21
March 2020.

Products and services

HDFC Bank provides a number of products and services including wholesale banking, retail
banking, treasury, auto loans, two-wheeler loans, personal loans, loans against property,
consumer durable loan, lifestyle loan and credit cards. Along with this various digital
products are Payzapp and SmartBUY.

Mergers and acquisitions

HDFC Bank merged with Times Bank in February 2000. This was the first merger of two
private banks in the New Generation private sector banks category.[18] Times Bank was
established by Bennett, Coleman and Co. Ltd., commonly known as The Times Group,
India's largest media conglomerate.
In 2008, Centurion Bank of Punjab (CBoP) was acquired by HDFC Bank. HDFC Bank's
board approved the acquisition of CBoP for ₹95.1 billion in one of the largest mergers in
the financial sector in India.
In 2021, the bank acquired a 9.99% stake in FERBINE, an entity promoted by Tata Group,
to operate a Pan-India umbrella entity for retail payment systems, similar to National
Payments Corporation of India.
In September 2021, the bank partnered with Paytm to launch a range of credit cards
powered by the global card network Visa.

19
 Investments

A HDFC Bank branch in Hyderabad

In March 2020, HDFC (parent company of HDFC BANK) made an investment of ₹1,000
crores in Yes Bank.] As per the scheme of reconstruction of Yes Bank, 75% of the total
investment by the corporation would be locked in for three years. On 14 March, Yes Bank
allotted 100 crore shares of the face value of ₹2 each for consideration of ₹10 per share
(including ₹8 premium) to the Corporation aggregating to 7.97 percent of the post issue
equity share capital of Yes bank.

Listings and shareholding

The equity shares of HDFC Bank are listed on the Bombay Stock Exchange and

the National Stock Exchange of India. Its American depositary receipts are listed on
the NYSE issued through JP Morgan Chase Bank.
Its global depository receipts (GDRs) was listed on the Luxembourg Stock Exchange but
was terminated by board of directors following its low trading volume.

20
Shareholders (as of 30 September 2021) [28] Shareholding[26]

Promoter group (HDFC) 25.88%

Foreign institutional investor(FII) 38.30%

Individual shareholders 13.25%

Qualified institutional buyer 4.74%

Insurance companies 2.94%

Unit Trust of India/mutual funds 14.57%

Financial institutions/banks 0.4%

Corporate social responsibility

Parivartan is the umbrella term for all of the corporate social responsibility initiatives by
HDFC Bank
HDFC Bank's Parivartan initiative spent ₹535 crore in FY 2019–20.[29]
HDFC Bank spent Rs 634.91 crore towards Parivartan,in FY 2020-21. Out of Rs 634.9
crore, over Rs 110 crore was allocated and utilised towards initiatives focused on Covid-19
relief.[30]
HDFC Bank pledges to become carbon neutral by 2032.

Controversies
On 2 December 2020, the Reserve Bank of India ordered HDFC Bank to temporarily halt
the issuance of new credit cards and all planned activities under the bank's Digital 2.0
program citing incidents of outages in the bank's internet banking, mobile banking and
payment utility services.

21
On 29 January 2020, Reserve Bank of India imposed a monetary penalty on HDFC Bank for
failure to undertake on-going due diligence in case of 39 current accounts opened for
bidding in the initial public offer.
A HDFC bank manager was arrested on charges of fraud, involving a sum of ₹59.41 lakh,
in Odisha.
Altico Capital and Dubai's Mashreq Bank have approached the Reserve Bank of India,
accusing HDFC Bank of violating regulatory provisions by debiting part of the funds the
company had raised through external commercial borrowing (ECB) and parked at the bank.
They claimed that HDFC bank's decision to transfer money from the account may be a
violation of the RBI's end-use rule.
On 27 May 2021, The Reserve Bank imposed a penalty of Rs 10 crore on HDFC Bank for
deficiencies in regulatory compliances with regard to its auto loan loan portfolio.The said
penalty was imposed in regards to the contraventions of certain provisions of the Banking
Regulation Act, 1949.

Awards and recognition

2021

 Best bank in india: FinanceAsia Country Awards

 Best bank for SMEs: Asiamoney best bank awards
 Best bank in india:The Euromoney Awards for Excellence
 Ranks No. 1 in Mass Affluent category:Euromoney Private Banking and Wealth
Management Survey

2020

 Best Bank in India: Euromoney Award

 Best bank in indai: FinanceAsia Country Awards

2019

 Best Bank: New Private Sector – FE Best Bank awards[

 Winner in Innovation and Inclusiveness in Priority Sector Lending – 11th Inclusive
Finance India Awards (IFI) 2019
 Ranked 1st in 2019 BrandZ Top 75 Most Valuable Indian Brands HDFC Bank was
featured for the 6th consecutive year.
 Among The Most Honored Company List, Institutional Investor All-Asia (ex-Japan)
Executive Team 2019 survey
 India’s Best Bank, Euromoney Awards for Excellence 2019
 Bank of the Year and Best Large Bank, Business Today – Money Today Financial
Awards 2019[44]
 Best Bank in India 2019, by Global magazine FinanceAsia.
 Ranked 60th in 2019 BrandZ Top 100 Most Valuable Global Brands. HDFC Bank
was featured BrandZ Top 100 Most Valuable Global Brands 2019 for the 5th

22
 consecutive year. The Bank's brand value has gone up from $20.87 billion in 2018 to
$22.70 billion in 2019.
 Best Large Bank & Fastest Growing Large Bank in 2019, by Business World Magna
Awards
 India's leading private sector bank: Dun & Bradstreet BFSI Awards

2018[edit]

 Company of the year: The Economic Times Corporate Excellence Awards

 Best Performing Private Bank in Total Aadhaar Generation & Update: Aadhaar
Excellence Awards
 NCPI - National Payments Excellence Awards

2016[edit]

 Best Banking Performer, India in 2016 by Global Brands Magazine Award.

 Best Performing Branch in Microfinance among private sector banks by NABARD,
2016, Award for Best Performance in Microfinance
 KPMG study of India's Best Banks, Bank of the year & best digital banking
initiative award 2016
 BrandZ Rankings, Most Valued brand in India for third successive year
 FinanceAsia poll on Asia's Best Companies 2015, Best managed public company –
India
 J. P. Morgan Quality Recognition Award, Best in class straight through processing
rates

23
 HDFC Bank Limited

Type Public

Traded as NSE: HDFCBANK
BSE: 500180
BSE SENSEX Constituent

NSE NIFTY 50 Constituent

ISIN INE040A01034

Industry Financial services

Founded August 1994 (27 years ago)

Headquarters Mumbai, Maharashtra
, 
India
Area served India
Key people Atanu Chakraborty
(Chairman)

Sashidhar Jagdishan
(CEO)

Products Credit cards

Consumer banking
Commercial banking
Finance and insurance
Investment banking
Mortgage loans
Private banking
Private equity

Wealth management[2]

Revenue  ₹120,883 crore (US$16 billion) (2021)

Net income  ₹31,116 crore (US$4.1 billion) (2021)

24
 Total assets  ₹1,746,870 crore (US$230 billion)[4] (2021)

Total equity  ₹203,169 crore (US$27 billion)[4] (2021)

Owner Housing Development Finance Corporation (25.7%)

Number of 120,093 (2021)[5]
employees

Subsidiaries HDFC Securities

HDB Financial Services

Website www.hdfcbank.com

Vision Statement
"To be the premier financial partner in ensuring sustainable housing and living
standards."

Mission

Committed to provide financial solutions for sustainable living and assist

entrepreneurs in value addition.

SWOT Analysis
Strength

 Well diversified branch distribution

 One of the biggest names in public sector banking
 CBS implementation in its branches
 Strong concentration in the western region makes sure that it is CASA rich
 Better focus on international market
 Strong asset quality with healthy coverage ratio
 Improvement on the ROE margins in the last fiscal year
 International presence adds to the credibility

25
Weakness

 Lesser  branches across the country when compared with SBI and PNB
 Inadequate talent pool to compete with strong private banks
 Late on introducing latest products in the market
 Lesser strategic initiatives as compared to larger private banks
 Due to focus on international branches, local focus sometimes gets diluted

Opportunities

 International branches give scope to expand in other economies

 Expansion in the rural areas to include the unbanked and under banked
 BoB Caps can contribute more to the revenues
 Cost to Income could improve in coming years
 Scope to improve non-interest income
 Focus more aggressively on retail banking

Threat

 New banking licenses by RBI

 NPA levels could rise as there is over reliance on corporate and SME’s.
 Contribution from the foreign business of the bank is around 25% on the bottom line

Foreign banks

Business Strategy

 Focusing upon customer needs and preferences and fulfilling them in a cost effective
manner by leveraging strong technology platform
 Attain a well balanced growth in its loan book across different sectors like retail,
SME, agriculture, wholesale etc. and across different geographies
 Further strengthen its systems for credit origination and monitoring
 Maintain a high provision coverage ratio to protect the quality of its asset portfolio
from any downside growth risks
 Develop innovative products and services that attract targeted customers and address
inefficiencies in the Indian financial sector

26
 Back office functions moved to hub, so branch staff can spend time with customers

Business Description

 The bank offers a wide array of customized and specialized services to meet the
diverse needs of its customers, and these services have been categorized into
Personal Banking, Business Banking, Corporate Banking, International Banking,
Treasury Banking and Rural Banking services. The company offers fixed, current,
and savings deposits; and home loans, mortgage loans, advance against securities,
education loans, auto loans, term finance, small scale industries and SME loans,
traders loans, working capital, export and import finance, bill finance, bridge loans,
project finance, and infrastructure finance. 

27
 Financial Planning for Salaried Employees: Tips &
Importance

Personal financial planning provides you with a systematic roadmap for achieving your
goals without facing any monetary roadblocks. If you are a salaried employee, equipping
yourself with an effective financial goal becomes more important. It ensures a balance
between achieving financial independence and securing the future for your close ones.

What Must a Personal Financial Planning Include?

 Financial Goal – This includes the short, medium and long-term goals.
 Net Worth – Determining total assets and liabilities is important.
 Budget – Create a budget based on needs, wants and savings.
 Plan That Suits You – Plan according to your age - beginner, intermediate
and experienced.
 Invest in Emergency Fund and Retirement – Create a rainy day fund and
save to meet your post-retirement expenses.
28
 This list is not limited here. To know more, continue reading.

6 Best Ways to Create Personal Financial Planning

1. Assess Your Financial Goal
The first step to financial planning for salaried employees is to determine what
their financial goals are. So, break it down into long, medium, short terms to
organise your budget.
 Your long-term goals involve 10 years or more, including your retirement
plans.
 Medium-term goals are the ones that you want to achieve in the next 5 to
10 years. It includes initiating your own business or managing your budget.
 Set the short-term goals you want to achieve in the next 5 years. It ranges
from consolidating your debt to fulfil your dream to purchase a car.
Now, categorise your financial goals into three:
 Needs
 Wants
 Savings
It is important to prioritise what are your immediate needs and what you need to
concentrate on later.
2. Calculate Your Net Worth
Your net worth is the baseline to start personal financial planning. First, assess
your salary, liabilities and other expenses. Now, calculate the assets minus
liabilities to get your total net worth.
3. Draw a Budget
The purpose of a budget is to create a framework based on your net worth and
meet your life goals accordingly. With this, analyse your cash flow through a
50/30/20 thumb rule.
The 50% must be assigned to meet the day-to-day expenses. It includes your rent,
food and others.
At the same time, 30% must be allocated to significant expenses but are not
immediate. For example, it involves dining out or purchasing a new phone.
Finally, the last 20% must be devoted to savings to reserve emergency funds for
your retirement or repay your monthly instalments.
4. Manage Your Savings
29
As savings is part of your budget, make sure to plan it effectively. For example, if
you have started your career, 10% of your post income must be allocated to
savings.
As the income increases, increase your savings to 15%. As the age progresses,
meet your increasing financial liabilities with 35% of your savings.
However, there are exceptions to the specified percentage. Nevertheless, the
effective allocation of savings as per your requirement is an important move to
manage your debt.
5. Plan Your Retirement
An individual's retirement plan depends on the age and the monthly expenses
post-retirement.
For instance, an individual decides to retire at 65 years of age, and his monthly
expenditure stands at ₹50000. Accordingly, he must invest in SIP (return of 12%)
for consecutive 30 years to earn approximately ₹1 crore to meet his post-
retirement expenses.
Financial experts suggest that one must target a retirement accumulation of 20
times one's annual income. This old rule of thumb considers income and not
expenses.
Thus, keeping in mind the importance of retirement planning, draw your
retirement plan according to your present expenses and scenarios.
6. Save for Emergency
Effective personal financial planning must reserve funds to meet emergencies. It
is ideal to save for 3 months in advance. However, experts recommend
considering 6-month to save in a savings account that can be accessed whenever
any needful situation arises.
Plan Your Finances as Per Your Age
Beginner
If you have newly joined your company, it's crucial to learn the art of personal
financial planning from the day you start earning. Follow the basic rules as
mentioned above and take a look at few tips:
Create a Personal Balance Statement
You may be willing to splurge with your first earnings. However, it is essential to
keep track of your expenses. Hence, maintain a personal balance statement based
on the 50/30/20 rule.
List down your assets and liabilities accordingly. It may include your current bank
statement, your ongoing education loan and more.
30
 Based on this list, you will conclude how much you need to spend and save.
Additionally, begin investing in assets that increase wealth and require low
maintenance costs over the years.
Avoid Debt Trap
If you borrowed a loan to fund your education or others, make sure to repay it
first. Borrowing multiple loans at a time increases the risk of default in
repayment. To maintain disciplined personal financial planning, make sure to take
a credit that you can easily repay.
Financial experts recommend that your loan burden must not exceed more than
50% of your income. Also, make sure to increase your monthly instalment in line
with increasing income. This helps you to repay your debt in a shorter period.
Intermediate
As the age progresses, an individual is responsible for handling his finances and
securing his family's financial well-being. Hence, note these following tips to
maintain disciplined personal financial planning in your 40s.
Create Investment Portfolio
To meet your additional expenses, instil a habit of investment. Equity investment
is one of the mediums to save on your tax payables. If you are a beginner,
consider investing in hybrid mutual funds.
Although, depending on your risk appetite, diversify your investment portfolio to
avoid market risk. Consider an investment horizon of 10 to 15 years. It is also
important to balance it annually or every 6 months.
Plan for Tax Payables
Being tax-aware and creating a tax plan is important to know how much and
when it is deducted. At the same time, make sure to invest in assets like mutual
funds, PPF, etc., to multiply your wealth and save on tax payables.
Experienced
Retirement Planning
According to a survey in 2021, 51% of Indians don't have a retirement plan.
Estimate your expenses post-retirement. Accordingly, create a plan and invest.
Also, focus on estate planning.
Insurance Coverage
Take note of the following insurance cover to secure your old age:
 Life Insurance 
 Health Insurance

31
 Social Security or Lifetime Annuity
 Long-term disability coverage and more
However, before moving ahead, here's a quick disclaimer. Experts recommend
contacting a financial adviser to make an informed financial decision.
Investment Plan for Short and Long-term Finances
Accumulate wealth corpus by dividing your financial planning into short and
long-term periods. Accordingly, plan your investment to increase your financial
strength. Select from the following investment mediums depending on your risk
appetite and time horizon:
Short-term
Get optimum returns in a short period with these three investment mediums:
 Recurring deposits are ideal for individuals who don't want to invest a
lump sum in a go. With a minimum tenure of 6 and a maximum of 10 months, the
interest you earn is taxable.
 Fixed deposits offer guaranteed and fixed high returns. It is because
deposits are independent of market fluctuations. Also, you can access the deposits
during an emergency after a penalty payment.
 National Savings Certificate can help you to earn tax exemption from taxes
under Section 80C. The investment tenure is around 5 years.
Long-term
Keep your long-term financial goal in mind and invest in the following to avoid
market volatility:
 Growth Stocks - Find the perfect company before investing in a growth
stock. It comes with higher risk and returns. You need to commit to a time
horizon ranging from 3 to 5 years.
 Dividend Stocks – The returns that you get in these stocks is not as high as
growth stocks. It is popular among matured investors as one receives a regular
return and involves less risk. One can get returns ranging from around 2% to 3 %
annually. Real Estate Investment Trusts is one such popular dividend stock.
 Target Date Funds- This investment form is ideal as your retirement
progresses. It gradually progresses to bonds as the target date approaches.
9 Financial Applications to Aid Personal Financial Planning
A working professional's day-to-day-busy routine may prevent maintaining track
of personal finances. Thus, take help of the following applications to discipline
your financial lifestyle:
32
 Personal Capital
 You Need a Budget
 Mint
 PocketGuard
 Spendee
 Zeta
 Clarity Money
 Prism
 mTrakr etc.
Tackling money for a beginner can be cumbersome. Hence, effective personal
financial planning is important. Admittedly, the tips mentioned above are not
necessary to fit all. However, keeping these tips in mind will serve as a guide to
draft the best financial planning for salaried employees.

OBJECTIVE OF THE STUDY

Primary objective:

 To understand financial planning done by salaried employees

 To spread awareness about financial planning among the working-class people

 To understand the saving-investment behaviour of the salaried employees

 To understand the importance of tax planning

Secondary Objective:

 To gain knowledge about the various investment avenues keeping in mind the
significance of tax saving.

To understand how savings can be increased for the future using different
instruments

 To find out the most suitable investment instrument for salaried investors

 To examine the amount saved by using that instrument

33
Product and Services
Of
HDFC Bank

34
 HDFC Bank offers its services majorly in six parts:
A. Personal Banking
B. Business Banking
C. Corporate Banking
D. International Banking
E. Treasury Banking
F. Rural Banking

A. Personal Banking

1. Deposits offered by HDFC Bank:

a) Fixed Deposits

HDFC Bank offers simple Fixed Deposits (at very competitive interest rates), which can be
opened with a minimum investment of Rs 1,000. The tenure of their deposit must be a
minimum of 7 days for deposit amount of Rs.100/- lacs and above & minimum 15 days for
amounts less than Rs.100/- lacs. Fixed deposit accounts can be opened with instructions
payable to 'either or Survivor’, payable jointly, payable to any one of the depositor’s etc.
Following fixed deposit schemes are offered by bank:

 As Recurring Deposits:

o Recurring Deposit
o Baroda Samriddhi Quarterly Recurring Deposit 
o Baroda Samriddhi Half Yearly Recurring Deposit 
o Yatha Shakthi Jama Yojana

35
 For Deposits up to 12 months:

o Short Deposits

 For Deposits over 12 months:

o Baroda Double Dhamaka Fixed Deposit 

o Monthly Income Plan
o Quarterly Income Plan
o Half Yearly Income Plan
o Regular Income Cum Recurring Deposit
o Capital Gain Account Scheme, 1988

b) Current Deposits

Current Deposits product is ideal for firm, companies, institutions, HUF, individuals etc.,
who need banking facility more frequently and provides flexibility through overdraft
facility. This is one of the most basic and flexible deposit options, allowing transaction
without limiting the numbers. HDFC Bank's Current Deposits are the back-bone of all
trading activities. Following current account options are available:

o Baroda Advantage Current Account

o Baroda Premium Current Account (BPCA)
o Baroda Premium Current Account-Privilege (BPCAP)

c) Savings Deposits

Depending on the nature of the account and the governing terms and conditions, HDFC
Bank offers following Savings Accounts:

o Baroda Centenary Savings Account

o Savings Bank Account
o Super Savings Account
o Baroda Basic Savings Ac
o Baroda Salary Advantage Saving Account
o Baroda Bachat Mitra

36
2. Gen-Next services offered by HDFC Bank:

a) Gen-Next Junior

This is a Special kind of Savings Bank Deposit product for children upto 18 years of age to
be made available in Gen-Next Pune branch. Account will be operated by the customers
using withdrawal slip, Cheque leaves, Standing instruction, ECS (debit), Debit Card,
Internet banking facility etc. Interest rate, periodicity and method of application of interest
will be similar to usual Savings Bank a/c. The other provisions like transfer to dormant, in
operative etc. will be same as applicable to usual Savings Bank a/c.

b) Gen-Next Lifestyle

It is a term loan(combo pack) for purchase of  Home Furnishings / Consumer Durable goods
(includes color T.V., video camera / refrigerator / washing machine / music system / air-
conditioners / cooking system etc.), vehicle(two wheeler and four wheeler), laptop/pc or any
other electronic gadget. Minimum age to apply is 21 years and maximum age is 45 years.

c) Gen-Next Power

This is a special Savings Deposit product having an in built feature of overdraft facility to
be available at Gen-Next Pune branch. The product is targeted to working executives and
other working professionals. There is no minimum balance requirement in the account and
as such no service charges shall be levied towards this.
37
Other Features
 Anywhere banking facility.
 Personalized Debit Card.
 Free Internet Banking facility.
 Travel, Investment and FOREX Support.
 Free Demat Account opening.
 e - Trading facility available.
 Free NEXT GEN GOLD Credit Card with Add on card for spouse (As per eligibility
criteria fixed by BOB Cards Ltd.).

d) Gen-Next Suvidha

This is a Recurring Deposit product enabling the customer to make regular savings on
monthly basis and earn higher interest. “Gen-next Suvidha” Account can be opened with
monthly installments of Rs.100/- or above & in multiples thereof with a maximum of Rs.10,
000/- per month.

3. Loan services offered by HDFC Bank:

 Home Loan
 Home Loans to NRIs / PIOs
 Home Improvement Loan
 Interest Subsidy Scheme for Housing The Urban Poor (ISHUP)

38
 CHAPTER II

LITERATURE
REVIEW

39
REVIEW OF LITERATURE

A large number of salaried tax payers in India start planning their tax saving investments
very late in the year when the time limit for submission of investment evidence is coming to
an end or at the end of the financial year. While it may help you in saving taxes, it might not
be the best decision that you have made.
Given below are the 3 reasons why planning in advance will help you:
 Choose the best option: When you plan ahead, you get time to choose an investment
scheme that will suit your needs and financial condition
– how much risk you can take, your cash requirements, for how long you can invest etc. It
will help you arrive at the best decision.
 Helps in avoiding last minute aggravations and blunders: When you are rushing making
investments, it may lead to unforeseen investment errors. You might not have enough time
to perform due diligence before making an investment decision.
 Plan the schedule for investment payments through the year: When you begin the
investment procedure early in the year, it gives you flexibility for planning payments during
the course of the year.
Geetha and Ramesh (2011) state that there are a lot of investment choices and one
must select the most appropriate one. The person dealing with the planning must
know all the various choices and how these can be chosen for attaining the overall
objectives.
Swasdpeera and Pandey (2012) study identifies factors that influence the saving
behavior of salaried individuals in Thailand. The results of the univariate and
multivariate analyses show that income, age, marital status, number of children and
educational level have a positive influence on the individuals’ average saving.
Bhushan and Medury (2013) states that Gender differences in investment behavior
have been reported by various studies. Women are more conservative while investing
and are unwilling to take risk.
Saugat Das & Ritika Jain (2014) identified that the behavioral aspect of investors
plays an important role in financial decision making which has attracted a huge
financial literature

Ramanathan and Meenakshisundaram (2015) says that financial Investments are the
commitments which are made with any financial and non-financial instruments
hoping for a better and profitable return in the future for a specific objective.
40
 Bala Swamy and Priya (2016) made a study on financial literacy of an individual’s is
their level of understanding of financial matters which enables them to process
financial information and make informed decisions about personal finance.
Sangeeta Gupta (2017) identified that financial literacy comprises of skills and
knowledge that enables the individual to understand the principles of finance that an
individual requires to know to make informed financial choices and decisions and the
financial products that influence the financial well-being of an individual.
Suyog and Komal (2018) state that this research focuses on the need and importance
of retirement planning. There are considerable changes in the saving and investment
behavior of individuals in India over the last couple of years.

Anand Kumar Shrivastava (2018) The objective of the research is to study the
investment behavior of government employees towards different financial products
available in the market

Zankhana and Ronikadevi (2019) aim of this research is to analyze awareness,

perception & behavior regarding different investment avenues available for salaried
people and to study various demographic variables and pattern of investment.

Neha Agarwal (2020) state that tax planning is an essential part of our financial
planning. The main purpose of the study is to find out regarding the awareness and
alternatives of the tax planning.
Bindabel and Hamza (2021) state that the main objective of the study was to find out the
relationship between saving and investment pattern and orientation towards finance among
the working women at the universities of Saudi Arabia. Orientation towards finance
(ORTOFIN) is one's attitude towards effectively managing financial activities.

41
 CHAPTER III

RESEARCH METHODOLOGY

42
 In this study, survey method was adopted to collect the primary
information from the salaried individuals. A questionnaire was prepared
which was aimed to collect the required information from the participants. The
sample was probabilistic where area sampling was used. The sample was
drawn from Chennai, it represented salaried individuals with different
economic, social and geographical characteristics. The participants of the
survey were asked to fill in their demographic details and were asked
questions pertaining to their investments made in mutual funds, life insurance
policies, fixed deposits, recurring deposits and market investments (shares).
The analysis was carried using Statistical Packages for Social Sciences
(SPSS). Chi-square test, Anova and T Test has been applied to find out
significance.

Table – Respondents Demographic & Social Profile

Variables Categories Frequency Percentage

Male 106 65.03%
Gender Female 57 34.97%
21-30 years 105 64.42%
Below 20 years 1 0.61%
31-40 years 45 27.61%
41-50 years 8 4.91%
51 years and above 4 2.45%
Age
Higher secondary / Diploma 10 6.13%
Graduate 97 59.51%
Education Details Post graduate 56 34.74%
Married 85 52.15%
Marital Status Unmarried 78 47.85%
Government employee 11 6.75%
Current Employment Private sector employee 152 93.25%
Below Rs.2.5 lakh 20 12.27%
Rs.2.5 lakh - Rs.5 lakh 50 30.67%
Rs.5 lakh - Rs.10 lakh 60 36.81%
Annual Household Income Rs.10 lakh and above 33 20.25%

43
Interpretation

From the above table, 65.03% of the respondents are male, 64.42% of
the respondents aged between 21 – 30 years, 59.51% of the respondents are
graduates, 52.15% of the respondents are married, 93.25% of the
respondent’s private sector employee, 36.81% of the respondent’s annual
income ranges between Rs.5 lakh – Rs.10 lakh.

Research Hypothesis
Hypothesis 1: There is no significant difference among various age groups
on their preference of savings of regular income

Hypothesis 2: There is no significant difference among annual household

income on their regular spending pattern.

Hypothesis 3: There is no relationship among the respondent’s regular

contribution to their retirement account with respect to gender.

Hypothesis 4: There is no association between the familiarity of investment

markets and risk tolerance to achieve higher level of return.

Hypothesis 5: There is no relationship between the regular savings

pattern and spending pattern of the respondents.

44
 Data Source
For this project both primary and secondary data were valuable sources of information.

 Primary data
Primary data are data freshly gathered for a specific purpose. For my project work, the
study has been done using an exploratory research process and a structured questionnaire
was developed for this purpose. For the collection of primary data this was the only method
used. The filled up information was later analyzed to obtain the required interpretation and
the findings. The reason I used this method is because a need was felt for the free influx of
information about the products.

 Secondary data
Secondary data provides a starting point for any research and offers valuable sources of
already existing information. Secondary data are the easiest to gather and the cost of
collecting this data is also very low. For my project work, study of the banking industry,
HDFC Bank was done using secondary data sources. This secondary information has been
sourced from the internet and from business related magazines and newspapers.

7.3 Sampling Plan

Sample size
I chose a sample size of 100 respondents consisting of based on convenient sampling. All
respondents were the customers of HDFC Bank. The method was simple random sampling.

Sampling Units
For the purpose of research, customers of HDFC Bank, city light branch were surveyed.

Sampling Technique Used

Since the information required was not of a very technical nature and also looking at the
scope of the project and the extent of the target segment, the sampling technique employed
was Convenience Sampling. I administered the questionnaires.

Research Instrument

Structured Questionnaire method was used to carry out the survey. Questionnaire was
framed and design in such a manner that it could be filled up within 5 minutes by the person
thus saving time of interviewee. Questions ranged from getting information about loan,
different account, cards, use of bank overdraft etc.

45
Contact Method: Personal Interview.

7.4 Scope of Study

HDFC Bank is one of the most famous banks in India. The various products and services
offered by it include:

PRODUCT
 Deposits (Saving account and current account)
 Loans
 Card

SERVICES
 Mobile Banking
 Internet Banking
 Payment
 Other Services

The deposit mix of an organization especially the saving accounts are the backbone of
every bank as an ordinary man is most inclined to invest in it due to its convenience and
easy availability. This project deals with the various customer concerns regarding these and
tries to suggest appropriate suggesting based on conclusions. I hope that this report would
be able to suggest some measures and draw attention of bank towards the area of
improvement.
The study would try to throw some insights into the existing products and services provided
by the bank, perceptions and the actual service quality of the bank. The results of the study
would be able to recognize the lacuna in the system and thus provide key areas where
improvement is required for better performance and success ratio. In the days of intense
competition, superior product and service delivery is the only differentiator left before the
banks to attract, retain and partner with the customers. Superior service quality enables a
firm to differentiate itself from its competition, gain a sustainable competitive advantage,
and enhance efficiency.

46
 7.5 Limitations of Study
 The study is only for the HDFC Bank confined to a particular location and a very
small sample of respondents. Hence the findings cannot be treated as representative of
the entire banking industry.
 In a rapidly changing industry, analysis on one day or in one segment can change very
quickly. The environmental changes are vital to be considered in order to assimilate
the findings.
 Respondents may give biased answers for the required data. Some of the respondents
did not like to respond.
 The conclusion arrived at are based on a very less experience of researcher in this
field.
 In our study we have included 100 customers of bank because of time limit.
 The study can also not be generalized for public and private sector banks of the
country.

47
 CHAPTER – 4

DATA ANALYSIS AND INTERPRETATION

48
1) Your age is:

a) Less than 24

b) Between 24-39

c) Between 40-60

d) ABOVE 60

OPTION RESPONSES PERCENTAGE

Less than 24 40 40 %

Between 24-39 30 30 %

Between 40-60 20 20 %

ABOVE 60 10 10 %

49
 DATA INTERPRETATION

 This data shows that 40% people age in less than 24, in between 40 and 60 is 20%
in above 60 is 10% AND between 24-39 is 30%.

2. You are:

a) Male

b) Female

OPTIONS RESPONSES PERCENTAGE

Male 80 56 %
Female 20 44 %

50
DATA INTERPRETATION

 This data shows that 20% are female and 80% are male.

3, Annual income of the respodents?

a) Upto Rs. 2000000

b) 200000-300000

c) 300000-500000

d) Above 500000

OPTIONS RESPONSES PERCENTAGE

Upto Rs. 200000 50 50

200000-300000 20 20

300000-500000 20 20

Above 500000 10 10

51
 4 Occupational status of the respondents?

a) DOCTOR

b) OFFICERS

c) TEACHERS
OPTIONS RESPONSES PERCENTAGE
DOCTORS 42 60
OFFICERS 28 40

DATA INTERPRETATION

5. Annual saving of the respondent?

52
a) Less than rs. 25000
b) 25000-30000
c) 30000-50000
d) More than Rs. 50000

OPTIONS RESPONSES PERCENTAG

E
Less than rs. 25000 46 46
25000-30000 15 15
30000-50000 15 15
More than Rs. 50000 24 24

DATA INTERPRETATION

6. Motivator of savings of the respondent?

53
a) To meet specific purpose

b) To earn income

c) To meet contingent expenses

d) To get tax benefits

e) To be secured at old age

OPTIONS RESPONSES PERCENTAGES

To meet specific purpose 35 35

To earn income 30 30

To meet contingent 15 15
expenses

To get tax benefits 10 10

To be secured at old age 10 10

DATA INTERPRETATION

7. Investment preferences of the respondents: ?

54
 a) Bank Deposits

b) Mutual Funds
c) Fixed deposits

Options responses Percentages

Bank deposit 40 40
Mutual funds 30 30
Fixed deposits 30 30

DATA INTERPRETATION
.

8. Respondents’ investment trend in the recent years: ?

a) INCREASING

b) DECREASING

c) REMAINING CONSTANT

OPTIONS RESPONSES PERCENTAGE

increasing 40 40
decreasing 40 20

55
 Remaining constant 20 20

DATA INTERPRETATION

9. Factors considered by the respondents for increasing the size of savings ?

a) Increase in salary

b) Additional income/increments

c) Future needs

d) Tax benfits
OPTIONS RESPONSES PERCENTAGE
Increase in salary 50 50
Additional icome/ 20 20
increments
Future needs 20 20
Tax benfits 10 10

56
 10. Time horizon of investments?
a) Long-term (More than 10 yrs.)
b) Medium-term (More than 5 yrs.)
c) Short-term (More than 1 yr)
d) Very short-term (Less than 1 yr)
OPTIONS RESPONSES PERCENTAGES
Long-term (More than 10 80 80
yrs.)
Medium-term (More than 5 10 10
yrs.)
Short-term (More than 1 yr) 10 10
Very short-term (Less than 0 0
1 yr)

DATA INTERPRETATION

11. Whose advice do the respondents take while investing: ?

 

a) Spouse/family members

b) Friends/ colleagues

c) Company Agents

d) Financial advisors

OPTIONS RESPONSES PERCENTAGES

Spouse/family members 5 5

57
 Friends/ colleagues 5 5

Company Agents 10 10

Financial advisors 80 80

12. Where does the respondents get information for your investment ?
a) T.V & Radio
b) Family Members & Colleagues
c) Journals & Magazines
d) Agents & Advisors
OPTIONS RESPONSES PERCENTAGES
T.V & Radio 60 60

Family Members & Colleagues 10 10

Journals & Magazines 20 20

Agents & Advisors 10 10

DATA INTERPRETATION

58
13. Initiatives recommended by the respondents to create awareness among salaried
employees about investment:?
a) Training programmes
b) Social welfare programmes
c) Advertisements
d) Investors’ meets

OPTIONS RESPONSES PERCECNTAGE

Training programmes 20 20
Social welfare programmes 20 20
Advertisements 60 60

DATA INTERPRETATION

14. The type of investment plan does the respondents prefer in future ?

A) Regular return plan

B) Pension plan
59
 C) Medical plan

D) Specific purpose plan

OPTIONS RESPONSES PERCENTAGE

Regular return plan
48 48

Pension plan
22 22

A) Medical plan
14 14

Specific purpose
16 16
plan

15. . Respondents’ awareness of tax saving instruments:?

a) Life Insurance
b) ULIPs
c) NPS
d) PPF
e)

OPTIONS RESPONSES PERCENTAGE

Life Insurance 40 40
ULIPs 25 25
60
NPS 15 15
PPF 10 10
Health Insurance 10 10

61
 CHAPTER V

FINDINGS AND INFERENCES

62
 Findings and Inferences

The study reveals that majority (66%) of the respondents were from the age group of 20-30
years and most of them were from the male category (61%)

.  From the annual income, it is found the middle-class as well as the upper middle-class
working employees were the target respondents. The respondents were mostly doctors/
engineers.

 Most of the respondents save less than Rs. 25,000 annually from their annual salaries.

 The motivators for saving for most of the respondents is to meet a specific purpose.

 According to the results, an increase in salary or additional income/increments will help

an individual to increase the size of their savings

.  Gold is found to be the most preferred choice for investment, whereas other investment
preferences include Govt. Securities i.e., PF, GPF/PPF, bank deposits, mutual funds and
fixed deposits.

 The investments trend amongst the respondents is either increasing or decreasing, on the
other hand a few respondents' investment is remaining constant

.  Majority of the salaried employees' do not have a specified time horizon behind their
investment decision as they prefer to invest as and when it is convenient for them. On the
other hand, most of them invest for medium term as well as long term.

 Most of the salaried employees take the advice of their spouse/family members, as they
can be said to be the most trusted individuals. The respondents have also taken their own
decisions for making their own decisions.
Most of the salaried employees get information about investments from their family
members and colleagues, whereas a few get information from journals and magazines,
organizational reports, T.V and radio, etc.

63
 From the study, it is found that conducting workshops and seminars is a good initiative to
create awareness amongst salaried individuals about the importance of investments.

 The study has also revealed that most of the salaried employees are not aware about the
benefits of tax saving investments like ULIPs, NPS and NSC. Life insurance, health
insurance as well as PPF are the popular investment options.

 Most of the respondents prefer a regular return plan as a choice for their future. Other
preferences include pension plan, multiple option plan and medical plan.

CHAPTER VI

RECOMMENDATION AND CONCLUSION

64
Conclusion

Tax-saving is only a smart part of a broad category called financial planning.

There is more to a financial plan than what meets the eye. For a financial plan
to be successful, it should have a proper investment plan that saves taxes.
Irrespective of the plan you choose, few things remain constant.

They are:
 Having well-structured short-term and long-term financial goals at every
stage of your lives

 Starting to save as early as you can, so that it gives you a long window to
stay invested and reap good returns

 Cutting down unnecessary expenses and saving for a better future

 Putting aside at least 10 to 15% of savings every month towards financial or

investment plans, to be used at a time when it is needed the most

 Talking to a professional in case of any queries or ambiguity

65
RECOMMENDATIONS

Reluctances of the respondents to provide information can affect the validity of the
responses.

 The lack of knowledge of the respondents about the financial instruments can be a
major limitation.

 The information can be biased due to use of questionnaire.

 The study was conducted for 2 months i.e. from 1st June 2020 to 31st July 2020.

 The survey was conducted digitally, hence there was lack of physical presence from
both ends.

 The responses were anonymous. 

66
 Question number 14 from the survey conducted was found to be a little difficult to
understand for a few respondents. Hence, 15 responses were either unattempted or
answered incorrectly. More opportunities should be created to integrate research on road
ecology into long-term ecological studies by using long-term ecological research sites and
considering the need for new ones.

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

All the documentations should be complete and need to be preserved. At time of maturity
it is necessary to produce the investment documents which act as a proof. But many times,
investors do not have proper documents which dishonours the claim at maturity. It is also
recommended that all the disclosure documents also be preserved as it would help in case of
any dispute in settlement. People need to be educated and informed about Financial
Planning as well as tax saving and this provides a greater opportunity to financial product
distributer like ICICI SECURITIES, TATA Mutual Fund and Reliance Money to educate
people. Companies can arrange for seminars and sessions through which they can provide
information to people and in return can get prospective clients from the audience. In this
way both the audience and the company can also be benefited. Investment through SIP
should be encouraged. A little amount regularly invested for long period can create a
greater wealth. SIP helps in Rupee cost averaging, develop habit of saving and it provides
convenience of investment. Mutual funds could provide better advice to their investors
through the net and through the traditional investment routes where there is an additional
channel to deal with the brokers. Direct dealing with the fund could help the investor with
their financial planning. If an investor is seeking help from advisor then he should collect
enough information of product from different sources. It will help to take proper investment
decision and choose a right advisor. It is also necessary that advisor should have enough
experience. Thus, the ultimate responsibility is on the investor when it comes to taking
investment decision. Goal should be properly divided into short term, medium term and
long term. Proper allocation should be done in various instruments according to the time
period of goal. There are various instruments available which can site different time period
needs. If investment is giving regular return or are going to get matured should be
reinvested properly. Financial planning is not a onetime activity, the initiative should be
taken by financial planner to put this forward to their client. Regular meetings should be
conducted between the financial planner and client to review the investment portfolio. This
is one area where many planners are lacking today. Follow-up, follow-up, follow-up is need
of hour

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APPENDICES

68
69
 Questionnaire

Personal information
a) Name:
b) Age:
c) Address:
d) Gender

1. Your age is:

a) Less than 24

b) Between 24-39

c) Between 40-60

d) ABOVE 60

2. You are:

a) Male

b) Female

3, Annual income of the respodents?

e) Upto Rs. 2000000

f) 200000-300000

g) 300000-500000

h) Above 500000

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4 Occupational status of the respondents?

a) DOCTOR

b) OFFICERS

c) TEACHERS

5.. Annual saving of the respondent?

a) Less than rs. 25000

b) 25000-30000
c) 30000-50000
d) More than Rs. 50000

6. Motivator of savings of the respondent?

a) To meet specific purpose

b) To earn income

c) To meet contingent expenses

d) To get tax benefits

e) To be secured at old age

7. Investment preferences of the respondents: ?

a. Bank Deposits

b. Mutual Funds
c. Fixed deposits

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 8. Respondents’ investment trend in the recent years: ?

a. INCREASING

b. DECREASING

c. REMAINING CONSTANT

9. Factors considered by the respondents for increasing the size

of savings?

a) Increase in salary

b) Additional income/increments

c) Future needs

d) Tax benfits

10. Time horizon of investments?

a) Long-term (More than 10 yrs.)
b) Medium-term (More than 5 yrs.)
c) Short-term (More than 1 yr)
d) Very short-term (Less than 1 yr)

 11. Whose advice do the respondents take while investing: ?

 

a) Spouse/family members

b) Friends/ colleagues

c) Company Agents

d) Financial advisors

 12. Where does the respondents get information for your investment ?
a) T.V & Radio
b) Family Members & Colleagues
c) Journals & Magazines
d) Agents & Advisors

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 13. Initiatives recommended by the respondents to create awareness among
salaried employees about investment: ?
a) Training programmes
b) Social welfare programmes
c) Advertisements
d) Investors’ meets

14. The type of investment plan does the respondents prefer in future ?

a) Regular return plan

b) Pension plan

c) Medical plan

d) Specific purpose plan

15. . Respondents’ awareness of tax saving instruments: ?

a) Life Insurance
b) ULIPs
c) NPS
d) PPF

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 BIBLIOGRAPHY AND REFERENCES

:  https://www.policybazaar.com/income-tax/taxsaving-instruments/\

 https://www.coverfox.com/lifeinsurance/articles/life-insurance-tax-
benefits/

 https://groww.in/blog/tax-savingoptions/#1_Life_Insurance_Plans

 https://cleartax.in/s/medical-insurance

 https://www.apollomunichinsurance.com/blog/howmuch-tax-do-you-
save-through-healthinsurance.aspx

 https://cleartax.in/s/unit-link-insurance-plan-ulip

 https://cleartax.in/s/nps-national-pension-scheme

 https://www.moneycontrol.com/news/business/mutu al-funds/-
1808067.html

 https://www.bankbazaar.com/saving-schemes/ppftax-benefits-and-
features.html

 https://cleartax.in/s/nsc-national-savings-certificate

 https://www.icicipruamc.com/InvestCorrectly/Basics -of-Mutual-
Funds/Save-tax-with-ELSS.aspx

 https://www.icicibank.com/knowledge-base/tax/taxsaving-
schemes.page

 https://www.iciciprulife.com/insurancelibrary/income-tax/tax-planning-
forsalaried.html#:~:text=1.,is%20exempt%20in%20so me%20cases.

 https://www.hdfclife.com/insurance-knowledgecentre/tax-saving-
insurance/tax-planning-tips-forsalaried-employees

 https://www.entrepreneurshiplife.com/6-financialplanning-tips-for-
salaried-professionals/

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