ACKNOWLEDGEMENT

In the present world of competition there is a race of existence in which those are
having a will to come forward, succeed. Summer Internship Project is like a bridge
between theoretical and practical working.

With this willingness, I have the privilege to do my Summer Internship at Zielhoch

India pvt ltd.

First of all, I would like to thanks Almighty God for giving me strength to work on the
right path of life. I would like to thank my institution LBSIMDS Lucknow, for giving
me this opportunity. I feel obliged in taking this opportunity and sincerely thanks to
our Director, Dr. Tripti Barthwal for her continuous efforts in molding us to become
good entrepreneurs and also good humans.

I would also like to extend my gratitude to Ms. Pushpanjali Bharadwaj, my mentor at

Zielhoch Company, for giving me the practical knowledge and making me aware of
every aspect of the products and for giving me insights to the real corporate world
throughout the Internship. Her constant efforts for making us learn have given
learning for a great living in our future. Her constant support throughout the
Internship made it possible for me to complete the project.

I also would like to thank Dr. Meenal Yadav Faculty Guide, for her efforts on making
our internship comfortable and helping in resolving our issues throughout the SIP.

At last, but not the least, I am thankful to all my teachers, friends, Zielhoch family and
all other contributors, who have been always helping and encouraging throughout the
journey. I have no valuable words to express my thanks, but my heart is still full of
the favors received from every person.
 PREFACE
The study named “A Study on Financial Planning for Salaried employees and
Strategies for Tax Savings” is about understanding the factors that affect the
customer’s decision while investing money in different investment options. The
entire Internship was a great learning because of its vast exposure to products and
corporate world.

The main objective of the project was to study the various factors influencing
customer investment decisions for future planning. It also studies the impact of
various demographic factors on customer Investment Decision. It also evaluates
various preferences in a company, in an insurance plan, and also which company is
preferred the most for Investment Bonds.

The findings of the research were that customer decision to buy a Investment Bond
majorly depends on demographic factors like the Age, Gender and Income Level.
Occupation is not dependent on taking Investment Bonds or Life Insurance. LIC
stands as the first preference in company and Money back guarantee is the first
preference for choosing a life insurance policy.

The job undertaken at the SIP is to call on leads provided by the Referral Partners
of the Company. The call is intended to make the leads apply for Loans which
would further be processed for disbursement. This gives a brief idea about how the
verification of these documents is done and also understanding and studying these
documents. This training session included a session regarding details about
Financial Planning, its benefits and importance.

One training session was dedicated on Insurance Products. This session proved to
be very useful considering my report topic which covers the Factors affecting
customer preferences while buying Life Insurance Policies. It has achieved
milestones in a very less amount of time. With growing number of customers, the
interaction with customers and their preferences in buying Investment bonds would
help to understand what changes can be made to bring about awareness amongst
the people regarding Investment bonds and will help companies build new
strategies and products.

In the journey of my internship, I have received certificate and Grade B level for
my work in the field of Marketing and Finance.
 TABLE OF CONTENTS
Serial Number Chapter Name Page Number
1 Introduction 1
2 About The Company 9
3 Objective of the Report 72
4 Research Methodology 74
5 About The Topic 77
6 Findings 83
7 Conclusion 84
8 Limitations 85
9 Recommendations or Suggestions 87

Bibliography

Annexure
CHAPTER 1
INTRODUCTION

An investment is an asset or item acquired with the goal of generating income or appreciation.
Appreciation refers to an increase in the value of an asset over time. When an individual
purchases a good as an investment, the intent is not to consume the good but rather to use it in
the future to create wealth.

An investment always concerns the outlay of some resource today—time, effort, money, or an
asset—in hopes of a greater payoff in the future than what was originally put in. For example, an
investor may purchase a monetary asset now with the idea that the asset will provide income in
the future or will later be sold at a higher price for a profit.

How an Investment Works

The act of investing has the goal of generating income and increasing value over time. An
investment can refer to any mechanism used for generating future income. This includes the
purchase of bonds, stocks, or real estate property, among other examples. Additionally,
purchasing a property that can be used to produce goods can be considered an investment.

In general, any action that is taken in the hopes of raising future revenue can also be considered
an investment. For example, when choosing to pursue additional education, the goal is often to
increase knowledge and improve skills. The upfront investment of time attending class and
money to pay for tuition will hopefully result in increased earnings over the student's career.

Because investing is oriented toward the potential for future growth or income, there is always a
certain level of risk associated with an investment. An investment may not generate any income,
or may actually lose value over time. For example, a company you invest in may go bankrupt.
Alternatively, the degree you investing time and money to obtain may not result in a strong job
market in that field.

An investment bank provides a variety of services to individuals and businesses, including many
services that are designed to assist individuals and businesses in the process of increasing their
wealth. Investment banking may also refer to a specific division of banking related to the
creation of capital for other companies, governments, and other entities. Investment

1
banks underwrite new debt and equity securities for all types of corporations, aid in the sale
of securities, and help to facilitate mergers and acquisitions.

Types of Investments

There's arguably endless opportunities to invest; after all, upgrading the tires on your vehicle
could be seen as an investment that enhances the usefulness and future value of the asset. Below
are common types of investments in which people use to appreciate their capital.

Stocks/Equities

A share of stock is a piece of ownership of a public or private company. By owning stock, the
investor may be entitled to dividend distributions generated from the net profit of the company.
As the company becomes more successful and other investors seek to buy that company's stock,
it's value can also appreciate and be sold for capital gains.

The two primary types of stocks to invest in are common stock and preferred stock. Common
stock often includes voting right and participation eligibility in certain matters. Preferred stock
often have first claim to dividends and must be paid before common shareholders.

In addition, stocks are often classified as being either growth or value investments. Investments
in growth stocks is the strategy of investing in a company while it is small and before it achieves
market success. Investment in value stocks is the strategy of investing in a more established
company whose stock price may not appropriate value the company.

Bonds/Fixed-Income Securities

A bond is an investment that often demands an upfront investment, then pays a reoccurring
amount over the life of the bond. Then, when the bond matures, the investor receives the capital
invested into the bond back. Similar to debt, bond investments are a mechanism for certain
entities to raise money. Many government entities and companies issue bonds; then, investors
can contribute capital to earn a yield.

The recurring payment awarded to bondholders is called a coupon payment. Because the coupon
payment on a bond investment is usually fixed, the price of a bond will often fluctuate to change

2
the bond's yield. For example, a bond paying 5% will become cheaper to buy if there are market
opportunities to earn 6%; by falling in price, the bond will naturally earn a higher yield.

Index Funds and Mutual Funds

Instead of selecting each individual company to invest in, index funds, mutual funds, and other
types of funds often aggregate specific investments to craft one investment vehicle. For example,
an investor can buy shares of a single mutual fund that holds ownership of small cap, emerging
market companies instead of having to research and select each company on its own.

Mutual funds are actively managed by a firm, while index funds are often passively-managed.
This means that the investment professionals overseeing the mutual fund is trying to beat a
specific benchmark, while index funds often attempt to simply copy or imitate a benchmark. For
this reason, mutual funds may be a more expense fund to invest in compared to more passive-
style funds.

Real Estate

Real estate investments are often broadly defined as investments in physical, tangible spaces that
can be utilized. Land can be built on, office buildings can be occupied, warehouses can store
inventory, and residential properties can house families. Real estate investments may encompass
acquiring sites, developing sites for specific uses, or purchasing ready-to-occupy operating sites.

In some contexts, real estate may broadly encompass certain types of investments that may yield
commodities. For example, an investor can invest in farmland; in addition to reaping the reward
of land value appreciation, the investment earns a return based on the crop yield and operating
income.

Commodities

Commodities are often raw materials such as agriculture, energy, or metals. Investors can choose
to invest in actual tangible commodities (i.e. owning a bar of gold) or can choose alternative
investment products that represent digital ownership (i.e. a gold ETF).

Commodities can be an investment because they are often used as inputs to society. Consider oil,
gas, or other forms of energy. During periods of economic growth, companies often have greater

3
energy needs to ship more products or manufacture additional goods. In addition, consumers
may have greater demand for energy due to travel. In this example, the price of commodities
fluctuates and may yield a profit for an investor.

Cryptocurrency

Cryptocurrency is a blockchain-based currency used to transact or hold digital value.

Cryptocurrency companies can issue coins or tokens that may appreciate in value. These tokens
can be used to transact with or pay fees to transact using specific networks.

In addition to capital appreciation, cryptocurrency can be staked on a blockchain. This means

that when investors agree to lock their tokens on a network to help validate transactions, these
investors will be rewarded with additional tokens. In addition, cryptocurrency has given rise to
decentralized finance, a digital branch of finance that enables users to loan, leverage, or
alternatively utilize currency.

Collectibles

A less traditional form of investing, collecting or purchasing collectibles involves acquiring rare
items in anticipation of those items becoming in higher demand. Ranging from sports
memorabilia to comic books, these physical items often require substantial physical preservation
especially considering that older items usually carry higher value.

The concept behind collectibles is no different than other forms of investing such as equities.
Both predict that the popularity of something will increase in the future. For example, a current
artist may not be popular but changes in global trends, styles, and market interest. However, their
art may become more valuable in time should the general population take a stronger interest in
their work.

Investments and Risk

In its simplest form, investment return and risk should have a positive correlation. If an
investment carries high risk, it should be accompanied by higher returns. If an investment is
safer, it will often have lower returns.

4
When making investment decisions, investors must gauge their risk appetite. Every investor will
be different, as some may be willing to risk the loss of principle in exchange for the chance at
greater profits. Alternatively, extremely risk-averse investors seek only the safest vehicles where
their investment will only consistently (but slowly) grow.

Investments and risk are often strongly related to prevailing conditions in the investor's life. As
an investor approaches retirement, they will no longer have stable, ongoing income. For this
reason, people usually choose safer investments towards the end of their working career. On the
other hand, a young professional can often bear the burden of losing money as they have their
entire career to make that capital back. For this reason, younger investors are often more likely to
invest in riskier investments.

Investments and Diversification

One way investors can reduce portfolio risk is to have a broad range of what they are invested in.
By holding different products or securities, an investor may not lose as much money as they are
not fully exposed in any one way.

The concept of diversification was born from modern portfolio theory, the idea that holding both
equities and bonds will positively impact the risk-adjusted rate of return in a portfolio. The
argument is holding strictly equities may maximize returns but also maximizes volatility. Pairing
it with a more stable investment with lower returns will decrease the risk an investor incurs.

Investing vs. Speculation

Speculation is a distinct activity from investing. Investing involves the purchase of assets with
the intent of holding them for the long term, while speculation involves attempting to capitalize
on market inefficiencies for short-term profit. Ownership is generally not a goal of speculators,
while investors often look to build the number of assets in their portfolios over time.

Although speculators are often making informed decisions, speculation cannot usually be
categorized as traditional investing. Speculation is generally considered a higher risk activity
than traditional investing (although this can vary depending on the type of investment involved).

5
Some experts compare speculation to gambling, but the veracity of this analogy may be a matter
of personal opinion.

Investing vs. Saving

Saving is accumulating money for future use and entails no risk, whereas investment is the act of
leveraging money for a potential future gain and it entails some risk. Though both have the
intention of having more capital available in the future, each go about growing in a very different
way.

One aspect this is most transparent is the process of saving for a down payment on a home.
Many advisors will suggest parking cash in a safer investment vehicle when saving for an
important major purchase. Because investing incurs a higher degree of risk, an individual must
compare what implications of loss of principle would be to their future plans.

Saving and investing are often intertwined because each may have a stated yield or rate of return.
Another primary difference is the federal insurance coverage on certain accounts.

Financial Planning

Financial Planning is the process of estimating the capital required and determining it’s
competition. It is the process of framing financial policies in relation to procurement, investment
and administration of funds of an enterprise.

Tax Savings

As the famous saying goes ‘ A penny saved is a penny earned ‘. Tax planning is one of the ways
which can help you save on taxes and increase your income. The income tax act provides
deductions for various investments, savings and expenditure incurred by the taxpayer in a
particular financial year. We will discuss some of the avenues further in this report which can
help you save taxes.

Tax Planning for Salaried Employees

Being an Indian taxpayer, you always understand that you need to pay 20-25% of taxes from
your income but we need to know that for salaried employees also some expenses allowed for

6
deduction and exemption and allowances. It will help you figure out how tax saving for salaried
class works and avoid complications that may arise during tax planning. If you find the
appropriate financial instruments, you can reduce the payable income tax for salaried employees.
For the very first time in India , you will came to know that if you plan your expenses in such a
way that you make expenses on tax free structures, you can plan to zero tax for even salary upto
30 lacs.

Leave Travel Concession (LTC)

Leave Travel Concession is an exemption that salaried employees receive from their employer to
travel on leave. Some of them are:

 The employees must go on an actual journey to get tax exemption.

 Only domestic travel expenses are considered under LTC exemption.
 The tax savings for salaried individuals apply on actual travel costs like bus or rail fare,
but not on miscellaneous expenses such as local sightseeing.

You should also know that LTC cannot be treated as a tax-free income every year u/s 10(5) of
the Income Tax Act. It is only allowed twice in block of 4 years.

Tax Rebate under Section 87A

Those having taxable income of up to Rs 5 lakh will not have to pay tax from FY 2019-20.

If you are earning anything above the exemption limits annually then you are mandatorily
required to file your ITR.

House Rent Allowance (HRA)

Individuals living in rented accommodation can avail tax benefits for salaried employees as per
the related rules. HRA or House Rent Allowance (HRA), a part of an employee’s salary
structure, is not fully taxable, leading to income tax deductions for salaried employees.

The amount of exemption is least of the following.

a) Actual HRA Received

7
b) 40% of Salary (50%, if house situated in Mumbai, Calcutta, Delhi or Madras)

c) Rent paid minus 10% of salary

(Salary= Basic + DA (if part of retirement benefit) + Turnover based Commission)

What makes HRA one of the tax saving options for salaried individuals is that a part of it is
exempted u/s 10(13A) of the Income Tax Act, 1961, subject to certain clauses. The taxable
income is calculated after deducting HRA from the total income.

National Pension Scheme (NPS)

National Pension Scheme (NPS) is one of the long-term tax saving options for salaried people in
India. It is an investment plan that falls under the purview of PFRDA and the Central
Government. People who want to plan for early retirement and have low-risk appetite invest in
NPS. Besides, it also serves as a means for income tax deductions for salaried employees.

Tax benefits for salaried employees can be claimed under Section 80 CCD (1B) for Rs 50000
over and above Rs. 1.5 Lakh ceiling u/s 80CCE. In other words, it helps in income tax planning
for salaried employees.

Health Insurance Premium

Health insurance plan provides financial security to you and your loved ones in medical
emergencies or planned hospitalisation. Besides safeguarding your financial interests, health
insurance is one of the most used tax saving options for salaried people.

In general, the premiums paid towards health insurance are eligible for income tax deductions for
salaried employees, subject to the term of Section 80D. As a part of planning income tax for
salaried employees, you can benefit more from this provision by paying for health insurance of
your spouse, dependent children, and parents.

The maximum deduction you can avail u/s 80D is Rs. 1,00,000

8
CHAPTER 2
ABOUT THE COMPANY

Zielhoch Together Lets Aim For High

Zielhoch, headquartered in Delhi, is one of India's most reliable consulting firm. As financial
advisors, we primarily focus on providing help to all individuals who have aspired to be
financially self-sufficient.

One should not work for money; rather, one should learn how money might work for
them," is our motto. This is what we refer to as financial literacy.

We are here to provide such an opportunity for our clients so that they can realize how money
can benefit them. We create a pathway between our customers and our knowledge. We believe
that the certainties outweigh the uncertainties, and we want our clients to be ready for such
situations.

In a fast moving and increasingly complex global economy, our success depends on how
faithfully we adhere to our core principles: delivering exceptional clients services; acting with
integrity and responsibility and supporting the growth of our employees.

9
Our ability to maintain the basic values of providing excellent customer service, operating with
honesty and accountability, and promoting staff growth in today's fast-paced and more
complicated global world.

3 key services which Zielhoch is engaged in are :-

 Personal Wealth Management

 Professional Development

 HR Consultants

10
Mission of the Company

SINCE WE HAVE 8 YEARS EXPERIENCE

By designing a well-diversified portfolio based on our customers' attitude and needs, we aim to
give superior financial literacy. In today's fast-paced and increasingly sophisticated global world,
maintaining our basic values of providing exceptional customer service, operating with honesty
and responsibility, and supporting staff growth is vital.

Vision of the Company

SUCCESSFUL INVESTING IS ABOUT MANAGING RISK NOT AVOIDING IT

OPERATING WITH HONESTY AND ACCOUNTABILITY

To make one believe that the certainties outweigh the uncertainties, and be ready for such
situations.

Support of the Company

WE ONLY HIRE BEST

EXCELLENT CUSTOMER SERVICE

To our basic values of providing excellent customer service, operating with honesty and
accountability, and promoting staff growth is critical in today's fast-paced and more complicated
global world.

Our Services

Our Essential Services at Zeilhoch

 WEALTH ADVISORY

 ACCOUNTING

 CONSULTING SERVICES

11
WEALTH ADVISORY

Wealth advisory is a holistic approach which helps clients in growing their wealth, managing
their liability exposure and planning their investment. Wealth management devise strategies
based on client needs to develop their overall wealth.

Wealth advisory is a holistic approach which helps clients in growing their wealth, managing
their liability exposure and planning their investment. Wealth management devise strategies
based on client needs to develop their overall wealth. Wealth management is more than a
financial advice, it focuses on investment advisory service that combines other financial services
that meets the needs of affluent clients.

Wealth advisory employs a holistic approach which includes comprehensive investment

management alongside financial advice, tax guidance, estate planning and even legal assistance
may be provided to fulfil a client's complicated needs.

A wealth management advisor is a high-level professional who manages an affluent client's

wealth holistically, typically for one set fee. A wealth advisor typically creates a specially
tailored investment strategy and plan for their clients to help them manage their assets.

Wealth advisory objectives will vary depending on the investor. Each client's needs and situation
are different, and good wealth advisors will tailor their advice accordingly. High- net-worth
individuals may benefit more from an integrated approach than from attempting to incorporate
pieces of advice and goods from many professionals. A wealth manager uses this strategy to
coordinate the services required to manage their customers' assets as well as develop a strategic
plan for their present and future needs, such as will and trust services or business succession
plans.

12
Main objectives that must be accomplished for clients through wealth advisory:

 Setting financial goals and designing strategies to achieve those goals

 Helping in maximize their overall wealth
 Managing their investments and finances
 Setting strategies for passing on their wealth, also known as estate planning
 Supremacies of Managing wealth

Expert advice:

Once you have a financial service watching your back, you have the chance to use all its
seasoned help to create a strategy. You will be helped by professionals with knowledge of tax
issues and implications, investments, real estate, superannuation and other areas. All will coach
you and make sure you don't fall into any potential money traps.

An end to tax stress:

Taxes are complex and prone to changes, but, depending on your knowledge, you can use them
to your advantage and save serious cash in the effort. The golden goal is referred to as tax-free
spending, but you need to know your stuff to get there.

Retirement planning

It's never too early to think about retirement. However, once you start looking into options, you'll
likely be meet with various complex schemes, and many savers get justifiably confused. Letting
a wealth manager guide you through the process is a reliable way to lay a foundation for golden
years.

Reaching life goals:

Our time on Earth needs to be more than working, eating, sleeping and occasionally vacationing.
Whether a house with a picket fence, a trip around the world or a Porsche, we all have dreams,
but they (almost) universally cost money. A professional will put these Visions into wealth-
building calculations via a series of viable, financially responsible and beneficial moves.

13
ACCOUNTING

Accounting is how your business records, organizes, and understands its financial information.
Accounting is a big machine that you put raw financial information into records of all your
business transactions, taxes, projections, etc. that then tells you a story about the financial state
of your business.

Accounting provides a clear picture of your financial position. It helps a business in identifying
whether or not it is making a profit, what its cash flow is, and what the current value of

Company's assets and liabilities is, and which parts of business are actually making money.

Different types of Accounting:

Financial accounting

Financial accounting is concerned specifically with the generation of reports that are based on
accurate information and follow "Generally Accepted Accounting Principles" (otherwise known
as GAAP). GAAP sets accounting standards in the United States for a wide array of topics,
including financial statement presentation. Financial accounting is the process of recording,
summarizing and reporting a company's business transactions through financial statements.
These statements are: the income statement, the balance sheet, the cash flow statement and the
statement of retained earnings.

Managerial accounting

Managerial accounting (or management accounting) is similar to financial accounting, with two
important exceptions:

The statements produced by managerial accounting are for internal use only.

14
They're generated much more frequently-often on a quarterly or monthly basis.

This is somewhat that a financial analyst might do, although a financial analyst will also look at
past and current trends in the larger economy, not just your business, to inform their
recommendations.

Tax accounting

Tax accounting is designed to make sure that you don't pay more income tax than are legally
required to by the IRS. Tax accountants are experts at preparing tax returns and assisting people
and businesses with filling out forms and paying taxes. These accountants must stay up to speed
on all of the rules and regulations because tax law is endlessly complicated and continuously
changing. A competent accountant will be familiar with every tax deduction and credit that a
person is entitled to. These accountants assist clients in lowering their tax costs.

Cost accounting

Cost accounting involves analyzing all of the costs associated with producing an output (whether
it be a physical product or service) in order to make better decisions about pricing, spending, and
inventory. Cost accountants help businesses by overseeing and analyzing cost expenditures and
purchases within the organization.

Book Keeping

Maintaining accurate and thorough records is the goal of book keeping. This is accounting's
bread and butter. Accountants have no data to work with unless book keeping collects it. Small
business record keeping can provide an up-to-date snapshot of a company's financial condition
and health. It entails keeping track of all inputs and outputs, as well as double checking
everything to ensure that everything has been properly recorded. The general ledger is the most
important document for a bookkeeper to work with because it contains all of the accounting data
for a company. When it's time to pay taxes or ask for a loan, a bookkeeper can simply put
together the financial records for a certain period of time to create a financial statement.

Why do you need book keeping?

15
Bank Reconciliation

One of the reasons professional book keeping services are so important is because of human
error. Any process run by people is going to make mistakes. That's inevitable, and a good book
keeping system will catch those mistakes. That's where bank reconciliation comes in. Bank
reconciliation is a process of assessing and comparing your financial records to those of your
bank and fixing mistakes if the records don't match the way they're supposed to.

You process payments and then deposit those payments in the bank. If your records are accurate,
your payments record should perfectly match the bank's record of deposits.

Accounts payable are an essential part of your general ledger and a key indicator for

Assessing your company's financial situation at any given moment. You should keep track of all
of your payments and expenditures under accounts payable. As soon as you plan or schedule an
expense, it should be recorded in this account. As soon as you order more stock for inventory,
that cost goes here, even if you haven't yet paid that bill. Keeping track of cash payments you
make will give you a sense of how much money you have on hand.

However, accounts payable is a category that includes future expenditures as well, which helps
you plan. If you have an interest payment on a business loan due in the next month, you can plan
appropriately to have the money when you need it.

Accounts Receivable

Accounts receivable are all expected or scheduled proceeds or sources of revenue. If a customer
buys a product on credit or with an extended payment plan, you need to know when you expect
to receive that income. You might not be able to receive that cash right away, but you can plan
future expenses based on the expected in-flows from those accounts receivable. The category of
accounts receivable on a general ledger is important because it lets you look ahead and plan. The
more informed you are about your company's financial situation, the better prepared you are to
adjust and adapt as needed.

16
Payroll Processing

Payroll processing is another important accounting service. Managing a regular payroll and
records can take up a lot of time and effort, even for a small business without too many
employees. Accountants work with businesses to organize and automate payroll systems to work
better for both employers and employees.

Accounting services regarding payroll can involve gathering employee information, establishing
a time tracking system, and managing the actual processing of payments to staff. Even if the
system is mostly automated, accounting work in this arena still involves approving and
submitting payroll, reporting and updating records, and working with employees to address any
issues.

CONSULTING SERVICES

Consulting is the practice of providing all aspects of human resource management as an

outsourced service provider, and the professional and business matters associated with such
activity, including customer development, contracts and customer management. Outsourcing
your HR services to human resources consultants can save both time and money. Hiring human
resources consultants reduces your cost of hiring individual employees, time and resources to
train and develop them in-house, retain the trained talent as well as investing in HR related
technology and tools. As you outsource your day-to-day human resources work to the
consultants or experts, you can pay more attention to your core business, knowing the experts are
handling the human resources side of your business. Having them on board also reduces the
pressure on business owners, corporate executives and managers for recruitment, performance
management, training and development, etc. and enables them to focus on their core work that
makes them efficient and effective.

17
The market for human resource consulting services consists of few main disciplines such as
recruitment, contract staffing, training and development, performance management system,
payroll management services.

How we can help you with hiring?

Recruitment

HR consultancy offers full-time, temporary, as well as part-time staffing solutions to clients. Our
services cover all aspects of recruitment, beginning with sourcing and hiring to the induction of
staff. We get you the right talent for all designations at all levels, from entry level trainees to
executive personnel. IT includes a variety of strategic work in the HR domain, such as defining a
corporate culture, organizational design, setting up a people strategy that supports key pillars in
the business, as well as the design of HR-related strategies in the area of diversity, recruitment
and talent management among others.

Compensation & Benefits

This segment also known as total rewards, looks at all aspects of employee compensation and
benefits from base and variable pay to bonus schemes and other secondary benefits across the
entire organization - from board level to employees on the work floor. The discipline also
includes pensions / retirement consulting, and advisory services tied to health and welfare.
Contract staffing

HR consultancy offers provides contract staffing which is hiring a worker on a short-term basis
rather than recruiting a permanent employee. With flexible working on the rise and market
demands shifting faster than ever, contract staffing is a preferred option for many employees and
employers alike. We provide the connections and the industry knowledge to fill your staffing
needs quickly and close collaboration to understand your priorities, the nature of the position to
be filled, and the specialist skills required.

Training and Development

This consists of specialized policies which offers HR improvement. Interventions are required to
assist clients in optimizing the productivity of their workforce. We implement HR strategies that

18
align your workforce with your business objectives. Our training programmers and assessments
are designed after understanding the value system, short term and long term goals of our clients'
businesses. Learning & development also includes the soft side of development, such as
coaching and mentoring, as well as the technological side of training, such as the development
and implementation of learning management systems.

Performance Management system

This happens through setting goals and action plans, developing forms, policies, and procedures,
defining KPI's and having standard tools to measure performance.

There's a lot that goes into assessing the performance of the employee. Outsourcing firms can do
it efficiently. Consultancy helps clients get the best out of their employees by implementing a
robust, well-designed performance management system. In doing so, businesses benefit through
improved employee productivity, freeing up more time for managements to work towards the
strategic goals of the company.

Payroll management services

Tax filing omissions, wrong amounts, late payments, can lead to penalties and strict actions.
That's the reason most organization trust experts on this matter. This offers online technology for
employees to view salary slip, submit IT declaration, decide FBP, and submit a query. Manage
tax and deductions, employee leave/attendance, etc. Helps in managing employee data efficiently
and support them with help desks for query handling. Also provides online Access to employees
to View or Print Salary Slip. Automated attendance system is there to manage attendance on day
to day basis. Web-based Leave Solution is provided to easily track the leave details of the
employees.

Managing Hiring with IT

Organizational change

IT encompasses the people side of change, aimed at successfully guiding and embedding
changes in organizational structure, ways of working, or cultural changes within an enterprise.
Change management stands at the heart of the service area, spanning advisory expertise to tools

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and interventions, with leadership alignment, stakeholder management, change interventions and
cultural management being the main offerings. Organizational change services can be sold as
standalone offerings by consultancies. However, they are typically bundled into larger functional
transformations to safeguard the people side of change.

HR technology

This is the field that specializes in all systems and tools used in the HR department, including
large ERP modules by SAP, Oracle or Microsoft, and more niche solutions per functional
domain.

HR analytics

IT has grown into a full-fledged service area within HR consulting. HR analytics focuses on
applying analytic processes to the human capital spectrum, with the key objective of adding
insights and value to HR activities.

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Our Products

Housing Loans

Buying a house is one of the biggest dreams come true for most people and an extravagant affair
altogether. A house loan or home loan simply means a sum of money borrowed from a financial
institution or bank to purchase a house. Home loans consist of an adjustable or fixed interest rate
and payment terms. A home loan can be opted to buy a new house/flat or a plot of land where
you construct the house, and even for renovation, extension, and repairs to an existing house.

Types of home loan

1. Home Loan

This is the most common type of home loan availed to purchase a house. There are many
housing finance companies, public banks, and private banks that offer housing loans
where you borrow money to purchase the house of your choice and repay the loan in
monthly instalments. You can get up to 80%-90% of the house's market price in the form
of financing. The lender will hold the house until you completely repay the loan.

2. Construction of a House

This loan is specially designed for people who want to construct a place according to
their wishes rather than buying a pre-constructed house. The approval process for this

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 type of loan is different for it takes into account the cost of plot also. The most important
clause when applying for a home construction loan is that the plot must have been
purchased within a year for the plot cost also to be included in the loan amount. The loan
amount is decided based on a rough estimate of the construction.

3. Home Improvement

Renovation and repair works like external and internal repair, painting, construction of
overhead water tank and electrical renovation certainly will make your house look better.

4. House Expansion or Extension Loans

Want another balcony or an additional bedroom? No worries, bank also offer loans for
house expansion including alteration of current structure and construction of new rooms.

5. Home Improvement

Renovation and repair works like external and internal repair, painting, construction of
overhead water tank and electrical renovation certainly can make your house look better.
But if you lack the finances for repair and renovation this could be easily managed by
loans for home improvement.

6. Home Improvement

Renovation and repair works like external and internal repair, painting, construction of
overhead water tank and electrical renovation certainly can make your house look better.
But if you lack the finances for repair and renovation this could be easily managed by
loans for home improvement.

Benefits

 MAKES BUYING A HOME AFFORDABLE FOR ALL -The home loan makes it
easier for an average middle-class salaried person to afford buying a home of their own.

 A COST-EFFECTIVE WAY OF AVAILING CREDIT- One of the major home loan

loans benefits is that it comes with a lower interest rate than other forms of borrowing

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 like a personal loan or a gold loan. This is because the lender uses the property that you
wish to purchase as a security against the amount you borrow.

 CAPITAL GROWTH - the capital appreciation of the real estate properties has been
much higher than the interest you pay on the home loan.

 GUARANTEES SAFETY OF THE PROPERTY - IT ensure that the building is legal

and that the builder has obtained all the clearance certificates from the local authorities.

 TAX BENEFITS -This is significant benefit of availing a home loan. If you mortgaged
property against a loan, you could claim a tax deduction on the principal as well as the
interest part of the repayment. For the repayment of the principal component of the home
loan, you can claim a deduction under Section 80C. The maximum limit for deduction in
this regard is Rs. 1.5 lakhs.

Eligibility

Banks have a list of eligibility criteria for home loans. The first thing banks look at is one's credit
history to understand their repayment habits. Typically, a credit score of 750 and above is
preferred. Some other important factors taken into account are as follows:

 Age

 Employment Type

 Minimum Annual Salary

 Collateral Security

 Margin Requirements

 Assets, liabilities, stability, and continuity of occupation

 Residency status (Resident Indian/ Non-Resident Indian)

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Health Insurance

Health insurance is a product of insurance that covers the medical and surgical costs of an
insured person. It reimburses expenses incurred due to illness or injury or reimburses the health
care provider directly. A health insurance scheme is a contract between an insurance company
and an insurer. The insurer pays a premium to the insurance company, in return the insurance
company will pay for the medical expenses incurred - such as hospital stay, day care, after and
before admission, etc.

Benefits

 It is an obvious fact that every health insurance policy has a hospital group in it. This
means that if a person is admitted to one of these hospitals under his or her health
insurance plan, he or she will not have to pay the costs. A simple police number of
recipients will contribute to free hospital treatment.

 High-risk health insurance policies also cover hospitalization costs (between 30 and 60
days) depending on the type of policy you use. It means you do not have to bear the cost
of the goods.

 In the event that you do not claim your health insurance for a whole year, you will be
given extra money or a discount on a guaranteed amount. In addition, many health
insurance companies offer their clients free health check-ups.

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  If you fall under the tax slab, buying premium health insurance will get you tax refund
under the Income Tax Act of India. Rat tax Rs. 25,000 in the 1850 age group and Rs.
30,000 adults will be granted under section 80D of the Income Tax Act, as long as you
are a citizen of the Republic of India.

 Comprehensive health insurance and providing co-payment option. This means that in the
event of any treatment, the insurance company will bear some of the costs while the
remaining costs will be borne by the insured person.

Different Types of Health Insurance Policies Available in India:

 Individual Health Insurance Policy : An individual health insurance policy provides

assistance to an insured person against a variety of diseases. It also includes other
benefits as mentioned above.

 Advanced Family Health Insurance Policy : The whole family is covered under this
policy. The family floating program provides each family member with a set amount of
health insurance. This type of plain can be used for individual treatment or for the total
amount of treatment for each family member.

 Pre-existing Disease Cover Policy : Under this plan, the policyholder will receive cover
for all their illnesses before purchasing a health insurance plan.

 Surgery and Critical Care Program : This program provides protection against serious
illnesses such as cancer, heart disease etc.

 Senior Citizen Health Insurance Policy :All adult health matters are covered under this
policy.

 Protective Health Care Policy : This policy covers medical examinations and associated
costs such as consultation fees, examination fees, etc.

Differences between Medical Insurance and Health Insurance :

 Medical insurance will only provide for the cost of hospitalization, predictable illnesses
and accidents and for a predetermined amount while health insurance will provide you

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 with complete protection against hospitalization costs, pre-hospital and post-
hospitalization and ambulance costs.

 Medical insurance will not provide you any additional coverage while health insurance,
on the other hand, provides additional coverage such as serious illness, accidental
disability, etc.

 Medical insurance does not offer any flexibility depending on the cover while health
insurers can reduce the length of their policy, the amount of health insurance premium
over a period of time, etc.

 Medical insurance does not provide the insurer with critical illness insurance while health
insurance provides insurance coverage for serious illnesses such as cancer, heart disease,
etc.

Mutual Funds

A mutual fund is a company that pools money from many investors and invests the money in
securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund
are known as its portfolio. Investors buy shares in mutual funds. Each share represents an
investor's part ownership in the fund and the income it generates. Mutual funds are operated by

26
professional money managers, who allocate the fund's assets and attempt to produce capital gains
or income for the fund's investors. A mutual fund's portfolio is structured and maintained to
match the investment objectives stated in its prospectus. Mutual funds give small or individual
investors access to professionally managed portfolios of equities, bonds, and other securities.
Each shareholder, therefore, participates proportionally in the gains or losses of the fund. When
you buy a unit or share of a mutual fund, you are buying the performance of its portfolio or,
more precisely, a part of the portfolio's value. Investing in a share of a mutual fund is different
from investing in shares of stock. Unlike stock, mutual fund shares do not give its holders any
voting rights.

Types of Mutual Funds

 Equity Funds

The largest category is that of equity or stock funds. As the name implies, this sort of
fund invests principally in stocks. Within this group are various subcategories. Some
equity funds are named for the size of the companies they invest in: small-, mid-, or
large-cap. Others are named by their investment approach: aggressive growth, income-
oriented, value, and others. Equity funds are also categorized by whether they invest in
domestic stocks or foreign equities. There are so many different types of equity funds
because there are many different types of equities.

 Fixed-Income Funds

Another big group is the fixed income category. A fixed-income mutual fund focuses on
investments that pay a set rate of return, such as government bonds, corporate bonds, or
other debt instruments. The idea is that the fund portfolio generates interest income,
which it then passes on to the shareholders. Sometimes referred to as bond funds, these
funds are often actively managed and seek to buy relatively undervalued bonds in order
to sell them at a profit.

 Index Funds

Another group, which has become extremely popular in the last few years, falls under the
moniker "index funds." Their investment strategy is based on the belief that it is very

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 hard, and often expensive, to try to beat the market consistently. So, the index fund
manager buys stocks that correspond with a major market index. This strategy requires
less research from analysts and advisors, so there are fewer expenses to eat up returns
before they are passed on to shareholders. These funds are often designed with cost-
sensitive investors in mind.

 Money Market Funds

The money market consists of safe, short-term debt instruments, mostly government
Treasury bills. This is a safe place to park money. You won't get substantial returns, but
you won't have to worry about losing your principal. A typical return is a little more than
the amount you would earn in a regular checking or savings account and a little less than
the average certificate of deposit

 Income Funds

Income funds are named for their purpose: to provide current income on a steady basis.
These funds invest primarily in government and high-quality corporate debt, holding
these bonds until maturity in order to provide interest streams. While fund holdings may
appreciate in value, the primary objective of these funds is to provide steady cash flow to
investors. As such, the audience for these funds consists of conservative investors and
retirees. Because they produce regular income, tax-conscious investors may want to
avoid these funds.

Advantages of Mutual Funds

 Diversification
Diversification, or the mixing of investments and assets within a portfolio to reduce risk,
is one of the advantages of investing in mutual funds. Experts advocate diversification as
a way of enhancing a portfolio's returns, while reducing its risk. Buying individual
company stocks and offsetting them with industrial sector stocks, for example, offers
some diversification. Buying a mutual fund can achieve diversification cheaper and faster
than by buying individual securities. Large mutual funds typically own hundreds of

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 different stocks in many different industries. It wouldn't be practical for an investor to
build this kind of a portfolio with a small amount of money.

 Easy Access

Trading on the major stock exchanges, mutual funds can be bought and sold with relative
ease, making them highly liquid investments. Also, when it comes to certain types of
assets, like foreign equities or exotic commodities, mutual funds are often the most
feasible way.

 Professional Management

A primary advantage of mutual funds does not have to pick stocks and manage
investments. Instead, a professional investment manager takes care of all of this using
careful research and skilful trading. Investors purchase funds because they often do not
have the time or the expertise to manage their own portfolios, or they don't have access to
the same kind of information that a professional fund has. A mutual fund is a relatively
inexpensive way for a small investor to get a full-time manager to make and monitor
investments. However, mutual funds, as noted above, require much lower investment
minimums. So, these funds provide a low-cost way for individual investors to experience
and hopefully benefit from professional money management.

 Variety and Freedom of Choice

Investors have the freedom to research and select from managers with a variety of styles
and management goals. For instance, a fund manager may focus on value investing,
growth investing, developed markets, emerging markets, income, or macroeconomic
investing, among many other styles. One manager may also oversee funds that employ
several different styles. This variety allows investors to gain exposure to not only stocks
and bonds but also commodities, foreign assets, and real estate through specialized
mutual funds. Some mutual funds are even structured to profit from a falling market.
Mutual funds provide opportunities for foreign and domestic investment that may not
otherwise be directly accessible to ordinary investors.

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  Transparency
Mutual funds are subject to industry regulation that ensures accountability and fairness to
investors

Life Insurance

Life Insurance can be defined as a contract between an insurance policy holder and an insurance
company.

Life Insurance can be defined as a contract between an insurance policy holder and an insurance
company, where the insurer promises to pay a sum of money in exchange for a premium, upon
the death of an insured person or after a set period. Here, at ICICI Prudential Life Insurance, you
pay premiums for a specific term and in return, we provide you with a Life Cover. This Life
Cover secures your loved ones' future by paying a lump sum amount in case of an unfortunate
event. In some policies, you are paid an amount called Maturity Benefit at the end of the policy
term.

Types of Life Insurance

 Term Insurance Plans

Term insurance protects your family's financial future if something were to happen to
you. Designed as a simple and affordable way to give financial cover, a term plan is a
vital part of financial planning for the primary wage earner in a family.
Term insurance is a pure protection plan and is not market-linked. Moreover, the
premiums for term insurance are lower as compared to any other life insurance product.
The premiums are also more affordable if you buy them early in life. Experts often

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 suggest that term plan should be a priority for you as soon as you start earning.
Term insurance can be used for various purposes. In the absence of an income, your
family can use the cover from the insurance to pay for their day to day expenditure,
education costs, or wedding expenses.

 ULIPs - Unit Linked Insurance Plans

A unit linked insurance plan (ULIP) is a combination of insurance and investment. A

ULIP provides life cover that offers financial protection for your loved ones. In addition
to this, it also gives you the potential to create wealth through market-linked returns from
systematic investments. A ULIP offers you the opportunity to invest your money in
different fund options, depending on your risk appetite. ULIPs come with a 5-year lock-
in period, and the money can be invested in bonds, equities, hybrid funds, etc. On the
other hand, if you are open to more risk, hybrid funds and equities have the potential to
offer better returns. Since each individual is different, ULIPs allow great flexibility for
investment. Your risk appetite and investment preferences are likely to change with age.
ULIPs permit you to take these factors into consideration and alter your investment
strategy accordingly. ULIPs also provide flexibility in terms of partial withdrawals and
fund-switching. They offer interesting benefits like loyalty additions and wealth boosters
to help you generate more wealth over time. Additionally, the maturity amount from
ULIPs is tax-free* subject to Section 10(10D) of the Income Tax Act of 1961.

 Endowment Insurance Plans

Endowment plans are ideal for people who want guaranteed returns along with the
protection of life insurance. An endowment plan is a life insurance policy that provides
life coverage along with an opportunity to save regularly. This enables you to receive a
lump sum amount on the maturity of the policy. In case of death during the policy term,
your nominee(s) also receives a death benefit. Just like ULIPs, endowment plans are
quite flexible too. You can choose a suitable method and time frame to pay the premium.
Endowment plans also give you a chance to benefit from bonuses that are paid
additionally over and above the sum assured of your policy. Lastly, the returns generated

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 on maturity from an endowment plan are tax-free* subject to Section 10(10D) of the
Income Tax Act of 1961.

 Money back plan

A money back plan is a life insurance policy where the insured person gets a percentage
of sum assured at steady intervals. Since you save regularly, the money back plan
rewards you regularly. In simple words, a money back plan is an endowment plan with
the benefit of increased liquidity with systematic pay-outs. Money back plans are
designed to help you meet your short-term financial goals. The money back feature can
add to your monthly or yearly income. The regular pay-outs, which are tax-free subject to
Section 10(10D)* of the Income Tax Act of 1961 makes the process of investing highly
rewarding.

Advantages of Buying a Life Insurance Policy

 Death Benefits

Life insurance enables individuals to protect themselves and their families, in case of any
unfortunate happening in the life of the insurer. The insurer pays an amount equivalent to
the sum assured as specified in the contract along with applicable bonuses. This is known
as the death benefit.

 Wealth Creation through Investment Components

A few life insurance policies offer wealth creation benefits as well. In such life insurance
plans, you can invest your premiums in different funds based on your risk appetite. These
life insurance plans are excellent wealth builders in the long run.

 Financial Security

The primary importance of a life insurance policy is that it provides your family with
long-term financial security. Life insurance policies provide a lump sum money to
financially support your family in the case of your early demise. Plans like this can look
after the family's regular expenses, future goals and any ongoing debts after your death.

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  Loan Option

A cheaper loan facility is one of the important benefits of life insurance plans. You can
use your life insurance policy with the investment part for a loan as well. Life insurance
plans like guaranteed savings plans, money back plans and whole life insurance policies
acquire a cash value over time. You can borrow at a low rate of interest against this cash
value.

 Life Stage Planning

The importance of life insurance grows as you progress through your life stages. Life
stages refer to the multiple major stepping stones like marriage, childbirth, home
purchase, retirement, etc. You can use life insurance plans to prepare for each of these
life stages. For example, term insurance for protection, child plan for child's marriage and
education, ULIP for building wealth, the pension plan for retirement, etc.

 Assured Income benefit

Assured Income benefit is another important benefit of life insurance plans. Term Plan
offer a regular income pay-out option for your family after your early demise. Similarly,
life insurance pension plans can offer a long-term guaranteed income to you and your
spouse.

WHO NEEDS LIFE INSURANCE:-

 If a parent with minor children dies, the loss of their income or ability to care for their
children may cause financial hardship. Life insurance can provide the financial resources
the children require until they are able to support themselves.

 Seniors who wish to leave money to adult children who care for them-many adult
children give up time at work to care for an ageing parent who requires assistance. This
assistance could also offer direct financial assistance. When a parent passes away, life
insurance can help pay for the adult child's expenses.

33
  Young adults without dependents rarely need life insurance, but if a parent will be
responsible for a kid's debt after their death, the child may want to carry enough life
insurance to pay off that obligation.

 Children and young people who want to lock in cheap rates-the younger you are and the
healthier you are, the lower your insurance costs will be. If a 20-something adult expects
to have dependents in the future, he or she may get an insurance even if they do not have
them now.

 Married retirees can take their full pension and spend some of the money to buy life
insurance for their spouse instead of deciding between a pension pay-out that includes a
spousal benefit and one that does not. Pension maximisation is the term for this method.

 Those who have a history of pre-existing diseases, such as cancer, diabetes, or tobacco
use. It's worth noting, though, that some insurers may refuse to cover such people or
demand exorbitant prices.

Real Estate

Real estate is property consisting of land and the buildings on it, along with its natural resources.

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Real estate is property consisting of land and the buildings on it, along with its natural resources
such as crops, minerals or water; immovable property of this nature; an interest vested in this
(also) an item of real property, (more generally) buildings or housing in general. Real estate can
include property, land, buildings, air rights above the land, and underground rights below the
land.

There are several types of Real Estates.

Major Categories of Real Estate

 Residential Real Estate

Residential real estate includes both new construction and resale homes. The most
common category is single-family homes, but there are also condominiums, co-ops,
townhouses, duplexes, triple-deckers, high-value homes, multi-generational homes, and
vacation homes.

 Commercial Real Estate

Commercial real estate is the land or building that a company uses to do business.
Commercial real estate includes shopping centres and strip malls, medical buildings,
educational buildings, hotels, and offices. Apartment buildings are often considered
commercial, even though they're used for residences, because they're owned to produce
income.

 Industrial Real Estate

Industrial real estate includes manufacturing buildings and property, as well as

warehouses. The buildings can be used for research, production, storage, and distribution
of goods. Some buildings that distribute goods are considered to be commercial real
estate. Industrial real estate refers to the land and buildings used by industrial companies
for activities such as factories, machine production, research and development,
construction, transportation, logistics and warehousing.

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  Pieces of Land

Land is the foundation of all types of real estate. Land usually refers to undeveloped land
and vacant lots. Developers take land and combine it with other properties (called
montages) to relocate them so that they can be denser and more valuable.

 Mix use

Mixed-use real estate refers to real estate that is intentionally used for a variety of
purposes, including commercial, residential, retail, office, and parking spaces. For
example, if you have an apartment, retail store, or shop in the same area, this is a
multipurpose property.

 Agricultural land

Agricultural land is defined as the land area that is either arable, under permanent crops,
or under permanent pastures. Arable land includes land under temporary crops such as
cereals, temporary meadows for mowing or for pasture, land under market or kitchen
gardens, and land temporarily fallow.

REASONS WHY REAL ESTATE IS A SAFEST LONG TERM INVESTMENT

 Real Estate Is Almost Risk-Free Compared to Stocks-Compared to real estate, stocks

present a cocktail of uncertainty. Trading in stocks and derivatives is a risky game. Being
a highly specialized field, it requires excellent skills to make money out of equities and
leverage trades.

 Real Estate Yields Fabulous Returns in the Long Term- Also, the population is growing -
but the land supply is limited. So demand will continue to grow - and real estate returns
will continue to generate excellent long-term returns, whether it is residential or some
other type of real estate. Real estate always give best return in long run.

 Be Assured of Regular Rental Income-One of the biggest benefits of owning your own
home is the steady rental income it can generate for you with almost 100% security.
Unlike stocks, once you own a home, you're immune to volatile market forces that can

36
 drop your net worth overnight. Owning a home guarantees you a steady, steady monthly
income that will only increase over time - as does the equity value of your home.

Real estate comes with various benefits loan facility, inflation cover, and secondary income and
an individual also can use his\her property for their own use result in dual benefit.

Group Medical Aims

A comprehensive Health insurance plan to cover a group of workers* who work in the same
organization. The premiums are less & affordable as compared to regular individual health plans
and covers against all illnesses and injuries from the very next day.

What does this policy cover?

 Individual cover for your worker

 Pre-existing disease covered

 Workers aged 18-60 years can be covered

 Maternity benefit

 Room rent charges covered

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 Pre-30 days & post 60 days hospitalization

 Road ambulance charges covered

 Day care procedure covered

 Simplicity
The simplicity comes in when you pick a reliable partner that handles all the tasks and
ensures your plate is not full with work related to health benefits. It's almost like auto-
piloting your health benefits process, so it reduce your workload while ensuring
employees are healthy and happy.

 Customisation
From choosing your own pizza toppings to choosing the colour of your iPhone,
everything nowadays is customizable. This includes group med claim too! As an
organization, you can survey your employees, analyse your needs, and based on this,
tailor make a plan designed specifically to meet your unique requirements.
Every policy comes with a base plan and sum insured in place, to which you can add
what you desire. This GPA cover gives your staff additional protection and financial
support for unexpected and unforeseen circumstances. Medical coverage for family
members and dependents: Managing health insurance policies, such as a family floater
plan from different insurers, especially with large family members, is not easy! Each plan
comes with different terms and conditions, claim processes, and additional requirements
that can make the entire process a burden on top of the illness. Compare this to group
medical insurance where you have the option of seeking medical coverage for your
family members and dependants under the same policy. It makes life so much easier and
it's straightforward!

 Pre and post hospitalisation expenses

Pre-hospitalization expenses are medical expenses you incur before the insured member
is admitted to the hospital. This can include various tests or screenings as prescribed by a
doctor, like X-rays, blood tests, urine tests, blood count, etc. Group med claim covers
these costs, provided they're borne within or before 30 days of admission to the hospital.

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 Again, this varies from provider to provider. Similarly, post-hospitalization medical
expenses are costs the insured member incurs after you're discharged. This includes any
tests, medicines, screening, etc. to ensure you or the patient recovers well.
Most often, these costs are covered for up to 60 days, but again, this varies from provider
to provider.

 No waiting period

With respect to the waiting period, how individual insurance works is you need to wait
approximately 3 to 4 years before your health insurance coverage kicks in. During this
time, you cannot make a claim or seek the benefits from your policy. Not only is the wait
long, but you're also unprotected. Unlike individual insurance, group medical insurance
does not have a waiting period.

 Maternity cover

Yet another feature that makes group medical insurance a sought-after option is coverage
for expenses related to maternity. Which is typically an additional coverage under a
health insurance policy. Maternity cover under group med claim primarily covers medical
expenses related to delivery. Furthermore, the new-born baby is covered for up to 90
days. Post this 90-day period, you can add the child to the base plan too.

 Hassle free claims

With group med claim, especially with providers like Loop, there is no interference from
intermediaries.

Credit Card

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A credit card is a thin rectangular piece of plastic or metal issued by a bank or financial services
company, which allows cardholders to borrow funds with which to pay for goods and services
with merchants that accept cards for payment. Credit cards impose the condition that cardholders
pay back the borrowed money, plus any applicable interest, as well as any additional agreed-
upon charges, either in full by the billing date or over time. When you open a credit card, you
receive a credit limit. You'll be able to spend up to that limit. When you make a purchase with
your card, it will show up as pending on your account and post within a few days. Once the
transaction is posted to your account, your total balance will increase. In order to keep your
account in good standing, you'll need to pay at least the minimum amount by your due date.

Types of Credit Cards

 Rewards credit cards

Rewards credit cards typically give you points or cash back based on a percentage of
your spending and some even offer bonus points in popular categories like groceries, gas
and dining out. Rewards credit cards also tend to offer at least a few different ways to
redeem your points, often including options for statement credits, gift cards or
merchandise. By using a rewards credit card to cover your basic purchases like groceries
and household supplies, you can earn cash back and travel rewards for purchases you
needed to make anyway.

 Cash back credit cards

It makes it easy for you to earn cash back or statement credits on your spending, although
how rewards are doled out varies from card to card. Some options in this niche offer a flat
rate of rewards while others offer bonus points in certain categories like dining or travel.
Some even offer bonus rewards in categories that change each quarter, as well as a flat
rate of rewards on all non-bonus purchases. Many cash back credit cards come with no
annual fee as well, although some with more generous bonus offers and rewards schemes
charge annual fees on the modest side. If you tend to spend more in particular categories,
like groceries or dining, you might choose a bonus category card rather than a flat rate
card, which is ideal for those with varied spending looking for an everyday card.

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 Travel credit cards

Travel credit cards offers the opportunity to earn rewards that are geared specifically
toward travel, whether that means earning flexible travel credits you can use toward any
travel purchase or even points you can transfer to airline or hotel programs. Some travel
credit cards also let you earn points within a specific program, such as a frequent flyer
program or hotel loyalty program. If you often travel for business or pleasure, you can
also keep your eye out for luxury travel credit cards. You don't even have to leave town
to start earning points and miles that can make your next trip more affordable.

 Balance transfer credit

If you have some high-interest credit card debt on your hands, you may be considering
using a balance transfer credit card to help manage and pay down that debt. The best
balance transfer cards let you secure an introductory 0 percent APR for a period typically
between 15 and 21 months, which can give you a nice break from paying interest charges
while you focus on paying down your debt. Most cards require you to pay an upfront
balance transfer fee of 3 percent or 5 percent, although there are some credit cards with
no balance transfer fee. Still, even after taking the balance transfer fee into account, you
could save a significant sum of money on interest during your card's introductory APR
offer.

 Zero percent intro APR credit cards and low-interest credit cards

APR takes the loan interest rate and combines it with any additional loan-processing fees
to give you a complete and accurate cost of borrowing. It's expressed as a percentage of
the total size of your loan or outstanding debt. Zero-interest credit cards, or 0 percent
intro APR credit cards, allow cardholders to make payments with no interest on
purchases, balance transfers or both for a predetermined period of time.

 Business credit cards

Business credit cards allow cardholders to keep their personal and business expenses
separate while they earn rewards on all their business spending. Interestingly enough,
business credit cards can also be cash back credit cards, general rewards credit cards,

41
 travel credit cards or even secured credit cards. You do need to have a business or
income-producing activity to qualify for a business credit card. In general, the signs of a
good business credit card are if it helps you benefit from your everyday spending and
makes running your business easier. Some business credit cards will give you a flat
rewards rate for all of your purchases, whereas other cards reward common business
expenses like travel or internet service at higher rates.

 Secured credit cards

A secured credit card is a credit card that is backed by a cash deposit, which serves as
collateral should the cardholder default on payments. The deposit aside, secured credit
cards function like any credit card. Consumers typically obtain secured credit cards to
improve their credit scores or establish a credit history. Secured credit cards typically
have lower credit limits and more fees than unsecured credit cards do.

Benefits Of Credit Card

 Convenience: A Credit Card is one of the simplest ways to pay for anything no more
counting out change or writing cheques, just present the plastic! You can even link your
card to your digital wallet, which allows you to scan and pay without even having to
carry your card in your wallet.

 Recurring payments: While Credit Cards are great for one-time payments, you can also
set it up to automatically make recurring payments such as your phone, electricity or gas
bills. No more will there be a chance of forgetting to pay bills on time and facing
penalties or disconnection.

 Recharges and tickets: One of the biggest Credit Card benefits over cash is the ability to
pay for a wider range of online services

 Interest-free credit: A Credit Card comes with a grace period between purchase and
payment (could be up to 50 days) during which the bank does not charge any interest.
This is a perfect example of buy now and pay later.

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  Rewards: Every time you pay using an HDFC Bank Credit Card, you earn Rewards. You
can redeem these rewards for exciting gifts and vouchers such as free shopping trips or
even free flight tickets.

 Cashbacks and discounts: From fuel surcharge waivers to great online shopping deals,
your Credit Card opens the doors to a host of Cashbacks offers and Reward Points,
especially with selected offline and online merchants.

 Travel in style: Credit Card makes your travel a more pleasant experience with free
access to exclusive airport lounges, priority check-in and boarding, extra luggage
allowance, etc.

 Expense tracker: Credit Card statements are a great way to track your expenses every
month since it provides you with an itemized account of your expenditure.

 Safer: One of the benefits of Credit Card in India is that it's much safer than carrying
large amounts of cash around. If you lose the card, you can get a replacement after you
notify your bank.

 Credit score: Organization's like CIBIL give credit scores to individuals depending on
how prompt they have been in their payments. Using a Credit Card and repaying on time
provides a boost to your credit score. A good credit score means you will be able to
obtain Loans easily.

Eligibilty for Credit Cards

 Age:
You must be at least 18 years old. However, some banks have a minimum requirement of
21 years.

 Annual salary:

Your annual income determines if you're eligible for a particular card. The minimum
salary required to apply for a credit card in India is around Rs.3 lakh p.a.

43
  Nationality or residential status:

Citizens, residents, and non-residents can apply. However, there are a few cards that are
only available for Indian citizens.

Documents required

 Completed application form

 Passport-size photographs

 Proof of identity (copy of PAN, Aadhaar, passport, etc.)

 Proof of residence (utility bills, Driving License, PAN, Aadhaar, etc.)

 Latest salary slips & bank statements

How Credit Cards Work

Credit cards can be used to make purchases online or in stores and pay bills. When you use a
credit card for either one, your card details are sent to the merchant's bank. The bank then gets
authorization from the credit card network to process the transaction. Your card issuer then has
to verify your information and either approve or decline the transaction.
If the transaction is approved, the payment is made to the merchant and your card's available
credit is reduced by the transaction amount. At the end of your billing cycle, your card issuer will
send you a statement showing all the transactions for that month, your previous balance and new
balance, your minimum payment due and your due date. The grace period is the period of time
between the date of a purchase on your card and the due date listed on your statement. During
this period if you pay your bill in full by the due date, no interest charges accrued.

KEY MAN INSURANCE

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Important personal insurance is a life insurance policy purchased by the company through the
life of a senior official or other important person. If a person's death could be a disaster for the
future of the company, such insurance is necessary. The owner or creator of a small business
may be the most important person. When a person dies, the company pays insurance premiums
and is the beneficiary of the insurance. Key man insurance is important, especially for family
firms that rely heavily on a few key employees. It ensures that the company can withstand the
financial burden of premature death and continue to operate steadily. This important company
decision is made easier with lower costs and easier access to premium insurance.

Benefits of key Man Insurance

 According to current tax laws, the premium paid will be recognized as business expenses,
and the company will save 30% plus the additional premium on the premium premiums
paid for that insurance.

 The quality of important work grows. You have a strong sense of self-worth. A sense of
belonging enhances productivity and contributes to the important staff retention.

 Protects company value. For example, if a company is sold, buyers can put a high value
on it if they know they have a financial backup (insurance) to cover the cost of closing
down an important employee.

 Helps to maintain the market value of a company's stock in the event of a significant loss.
The stock price of a company is expected to decrease when the key is lost, but if investors
know that any financial losses will be offset by the insurance benefit, they may not be
able to sell the shares once and for all.

 It protects the company's safety in the event of the death of a significant employee.

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Eligibilty For Key Man Insurance

1. A 'key-man' should not own more than 51% of the company's stock.

2. The total number of shares held by the key man and his family must not exceed 70% of
the total number of shares in the company.

3. Proof of the proposed life (key man) who plays a key role in the company's business is
required.

Key Man Insurance Tax Features

 In the hands of a key man

As the insurance benefits the company instead of the key person, the premium paid by the
company is not considered a requirement in the hands of the Key Person under section 17
(2) Income Tax. As a result, the key man is exempt from paying the premium tax payable
by the company through the life insurance policy to him. There is no maturity or benefit
to the commitment to the company or to the Key Man because only time policies can be
purchased as key man insurance at this time, and these policies have no donor or maturity
benefits.

 In the hands of the company

Under section 37 (1) of the Income-Tax Act, a premium paid by a Key man insurance
company is the corporate business allowance. In the event of a claim (due to the death of
the insured person), the claim interest is taxed as the business income in the hands of the
company.

RETIREMENT PLANNING

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The process of determining retirement income goals, as well as the actions and decisions needed
to meet those goals, is known as retirement planning. Identifying sources of income, forecasting
costs, developing a savings plan, and managing assets and risks are all part of retirement
planning.
Future earnings are assessed to determine whether the retirement income policy can be met.
Depending on where you live, some retirement plans will change. It is a lifelong process, and as
soon as you start thinking about retirement, you will have many options. The retirement plan is
designed to help you plan for your post-retirement years and live a stress-free life. A retirement
savings plan can help you build your income and provide you with a steady income for the rest
of your life. These plans allow you to save for retirement while you are still working.

Key Points For Retirement Planning

 Retirement planning is a process of setting aside, investing, and sharing for retirement.

 Many popular investment vehicles, such as individual retirement accounts (IRAs) and
401 (k) s, allow retirees to increase their income while benefiting from certain tax
benefits.

 Not only assets and income play a role in planning for retirement, but also future
expenses, debt, and years of life.

 If you are under 50 by 2022, you can donate $ 20,500 to 401 (k).

 It is not too late - or too late (although better yet) - to start thinking about retirement.

Retirement Planning Categories

 Youth Growth (21-35 years)

Those who are just starting out may not have much investment money, but they do have
time to stop investing their money, which is an important part of planning for retirement.
This is due to the principle of combined profit.

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  Early Midlife (36-50 years)

Individuals in this retirement category should continue to take advantage of the

employer's matching scheme 401 (k). You should also strive to increase your contribution
to your 401 (k) or Roth IRA (you can have both at the same time). If you do not qualify
for the Roth IRA, consider a traditional IRA. Like your 401 (k), this includes pre-tax
dollars, and the wealth in it grows through tax deductions.

 Later Midlife (50-65 years)

As you grow older, your investment account should have stricter rules. Although there is
a lack of time for people in this phase of retirement planning, there are a few benefits.
High salaries up to that point and perhaps some of the above costs (loans, student loans,
credit card debt, etc.) can increase your income.

Why Do You Need Retirement Planning

It is never too late to start a business. Donate to 401 (k) or IRA. The benefit of this retirement
category is the retirement benefit. After the age of 50, you can donate an additional $ 1,000 per
year to a traditional IRA or Roth IRA and an additional $ 6,500 a year to 401 (k) in 2021 and
2022.
Some of the best retirement plans for all age groups include an investment cum life insurance
plan that gives a person a fixed interest rate plus certain maturity bonuses and provides life
insurance for you or your loved ones. Now FD for days and RD is a retirement plan that has
expired due to low interest rates and low space.

WORK AT EARNWEALTH :

EarnWealth as mentioned is a FinTech Company and is a one stop destination for its customer’s
financial needs. EarnWealth promises to provide loan within 48 hours to its customers. The
company gets around 30,000+ applications for loan. EarnWealth helps in providing assistance to
the customers who need loan. These leads are generated by Referral Partners of the Company.

▪ Referral Partners : Referral Partners of EarnWealth act like the Distribution Partners for

48
EarnWealth. Referral Partners are the people who provide leads to the company. The leads can
be for Personal Loan, Business Loan, Home Loan, Loan Against Property (LAP), Insurance,
Mutual Funds, Investments, Financial planning, etc. The leads are further processed by
EarnWealth and are forwarded to its partners for Loan Disbursement Process. After the loan is
disbursed, the Referral Partner who referred the lead, gets a commission from the company. 40%
of the total commission earned by EarnWealth on the amount of loan disbursed, is given to the
Referral Partner. Currently there are more than 15000+ Referral Partners of EarnWealth in PAN
India.

AIM OF COMPANY

EarnWealth logo depicts that it aims to protect the customer’s wealth or the hard earned money.

It further aims to achieve the following :

 To provide 360 Degree Financial Solutions to its customers and Referral Partners
 To provide additional income to its Referral Partners
 Additional Income For Individual Insurance Agents, AMFI Agents, Real Estate Agents &
Financial Consultants
 To become a bank by the year 2025

. Earnwealth’s USP:

➢ A Wide Range of Products: EarnWealth Solutions is the only online financial marketplace in

India that offers a complete spectrum of financial products, ranging from retail lending products,
such as credit cards, personal loans, home loans, loans against property, auto loans etc to
investment products like mutual funds, Insurance and fixed deposit. EarnWealth Solutions
partners with over 50+ banks and other financial institutions, catering to all segments with varied
demographics.

➢ Unbiased & Customized Advise: EarnWealth Solutions offers customized solutions to all

lending and investment needs of a customer. The comparison engine is an intuitive platform that
provides unbiased choices to their customers, based on the profile and needs. After processing

49
the latest financial numbers from virtually all banks and fiscal organizations, this engine helps
users arrive at a smarter decision instantly.

➢ A Seamless Journey: EarnWealth Solutions also helps customers make the right choice and

assists them throughout the transaction process with the bank. A seamless product journey and
assistance over the phone from the sales force, makes the entire buying process at EarnWealth
simple and speedy.

➢ Paperless and Presence-less Processes: EarnWealth Solutions is focused on using technology

to build presence-less and paperless solutions in the financial services aggregation space. Riding
on the Indian Government's India Stack initiative that aims to digitize customer identification
and verification, EarnWealth Solutions is developing solutions where processes are completed on
its platform without the need for customers to either visit banks or do multiple sheets of
paperwork.

SWOT ANALYSIS OF EARNWEALTH SOLUTIONS PVT LTD.

❖ Strengths

1. EarnWealth is the only B2B FinTech Platform in India.

2. Completely Online Platform makes EarnWealth a technologically advanced Fintech Company.

3. Customer Retention because of high level of satisfaction within the customers.

4. Good Reputation within the Market.

5. One stop destination for all Financial Needs of a Customer.

6. Cross-selling with the customers help in retaining the customers and avoid losing them to
competitors.

7. Amongst Top 10 Most Admired NBFCs in India.

8. Strong Team bonding because of team activities like Bandhan and Parivartan.

50
9. Increasing number of Referral Partners every day (currently 18000+).

❖ Weakness

1. Being a Start-up Company, the company is still in a developing stage, and so not a completely
well settled Business.

2. The IT Team being yet in its developing phase, faces a lot of bugs and needs a more smooth
working.

3. Calling to the Customer is late at times after they have applied for the loan, which results in
losing the customers.

4. Slow Process of Loan Disbursement.

5. Lesser number of Disbursements as compared to the number of applications coming in.

6. Less number of Employees.

7. Less customers for products like Home Loan, LAP, Insurance, etc.

E A R N W E A L T H S O L U T I O N S P V T L T D P R A S A D H E N D R E 27

❖ Opportunities

1. EarnWealth can earn more profits by focusing on both B2B as well as B2C segments.

2. Building up a more strong IT team by training and recruiting more talents will help
EarnWealth to have a stable IT Team and thus have a smooth functioning.

3. Increasing its promotion for Insurance Products to customers will help to get more customers
for Insurance which is a fast growing product today.

4. Increasing Number of Employees for the company so as to have more faster customer
interaction thus leading to less losing of customers.

5. Focus on other products like Home Loan and LAP and other 50+ products will help company
generate a good revenue.

51
6. Hiring an HR Professional in order to have a more smooth functioning of Business.

7. Increased number of Referral Partners will help EarnWealth to become a Bank early then its
vision of becoming one before 2025.

8. Understanding of why the applications are being rejected can help the company to get more
better potential customers and also help in future decisions.

❖ Threats

1) Increasing companies providing loans may lead to loss of customers. If a customer is directly
linked with the Bank, then he/she may not prefer coming to EarnWealth for Assistance.

2) Losing customers because of reaching late to a customer on call.

3) Losing of potential employees may lead to slow pace growth of the company.

4) Less use of Potential Product Base may lead to losing customers and indirectly losing
Business.

5) Advancement in Technology with the competitors may affect the performance of EarnWealth.

India First Life Insurance

IndiaFirst Life Insurance Company is a joint venture of India's public sector banks (Bank of
Baroda ). The company has paid-up share capital of ₹ 663 crore.

ABOUT US

With a passion for serving customers, we believe the certainties far outweigh the uncertain and
we’d like you to prepare for those moments. We’re happy you decided to get to know us better.

Headquartered in Mumbai, IndiaFirst Life Insurance Company Limited (IndiaFirst Life), with a
paid-up share capital of INR 754.37 crore, is one of the fastest growing private life insurers in
India in terms of New Business IRP in Fiscal 2022. Our key differentiators are our simple, easy-
to-understand products that are optimally priced.

WE’RE BUILT ON THE FOUNDATION OF TRUST

52
At IndiaFirst Life, we come to work every day with the goal of making insurance easily available
to every Indian household. We’ve come a long way from that day in November 2009, when as
the 22nd entrant in the private Life Insurance Industry, we sold our first policy. Today, as on 31
March 2022, our "New Business IRP", stands at INR 1,345 Crores and IndiaFirst Life ranks*
11th. We ended FY22 on a strong footing with INR 5,187 Crores of total premium and AUM of
INR 18,932 Crores. The company continues to be one of the fastest growing private life insurers
in India in terms of New Business IRP in Fiscal 2022 with a 5-year-CAGR of 27.3% New
Business IRP.

We’ve had Bank of Baroda, Andhra Bank (now, Union Bank of India) and Legal & General
Middle East Limited as our initial shareholders. After journeying with us Legal &
General Middle East Limited sold its stake in February 2019 to Carmel Point Investments India
Private Limited, a private limited company incorporated under the laws of India and affiliate of
the Warburg Pincus Group. In April 2020, Andhra Bank was amalgamated into The Union Bank
of India. Our shareholding pattern as of today stands at: Bank of Baroda – 65%, Union Bank of
India – 9% and Carmel Point Investments India Private Limited – 26%.

THE DIFFERENCE IS THE EXPERIENCE

As of June 30, 2022, we offered 29 retail products, 13 group products along with six riders
(across retail and group portfolios), along with policies under the PMJJBY scheme, catering to
protection, savings, health and retirement needs of our customers, leveraging multiple
distribution capabilities and augmenting various investment options. In all propositions under the
categories of Participating Plans, Non-Participating Savings Plans, Non-Participating Protection
Plans, Unit Linked Insurance Plans, Group Protection Plans, Corporate Funds Plans, Riders &
PMJJBY form a complete suite of offerings that help our customers prepare for the certainties of
life. Our products are easy to understand and optimally priced with a developed comprehensive
risk management framework/policy.

PEOPLE MATTER

We believe a key factor contributing to our success has been our ability to attract, train and
retain talented employees. We have defined our Employee Value Proposition (“EVP”) as a
balance between an employee ‘giving’ and ‘getting’, where an employee ‘gives’ us key values of

53
‘Think New, Be Helpful, Be Honest and Do More’. In return the employee gets ‘CARE’, which
involves Celebrating Success, Accelerating Growth, Recognising Achievements and
Empowering Employees. In recognition of our professional approach to employee life cycle
management, we have been featured in ‘India’s Top 100 Companies to Work For’ of the Great
Places to Work Survey, 2021. We have also been featured in ‘India’s Best Companies to Work
for in BFSI’ for 2020 and 2021. As of June 30, 2022, we had 3,433 full-time employees. We
continue to focus on strengthening engagement with and support our employee base and attract
new talent. We use ‘HR Tech’ extensively to enhance the quality of recruitment (through
‘PMaps’, an assessment platform and ‘PATCH Optimization’ model) and systematically support
the onboarding process. We provide an employee feedback opportunity through our ‘AMBER’
and ‘HR Connect’ programs, to identify employee dissatisfaction and take proactive measures to
positively impact employee morale and workplace motivation. We have developed an AI-based
model for effective supervisory input to the BDMs for enhanced productivity and to build
predictable business. We continue to ensure a synergistic workplace through an effective
corporate governance framework and a work environment that provides extensive training and
supports individual professional goals. We continue to arrange workshops, mentoring, coaching,
on-the-job training, functional and cross-functional projects to ensure capability and leadership
development. Our New Business IRP per employee, calculated as the New Business IRP for the
period, divided by the number of employees at the end of the relevant period, stood at ₹ 3.07
million, ₹ 2.88 million, ₹ 4.11 million and ₹ 0.86 million per employee for Fiscal 2020, 2021,
2022 and the three months ended June 30, 2022, respectively, as we continue to foster a
productivity focused environment balanced with long-term talent retention

Great Place to Work® Institute has recognised us among India's Best Workplaces in Insurance
for 2021, India's Best Companies to Work for 2021 and Top 100 | India’s Best Workplaces for
Women. The recognition is a testament to the commitment of our organisation and employees
who live by our core philosophies – #CustomerFirst and #EmployeeFirst – that form the nucleus
of IndiaFirst Life. Our employees are our key driving force, our core strength, our differentiators,
and our brand ambassadors. Our mantra of #EmployeeFirst has helped us achieve our
#CustomerFirst goals better.

54
CUSTOMER FIRST PHILOSOPHY

We deliver value through leading digitalization initiatives across the complete value chain, that
stems from our #CustomerFirst ideology. Delivering results, while keeping, the customer, at the
center of our approach with the utmost integrity and honesty which helps us grow. To reiterate
the philosophy with which we treat our customers, our "Circle of Trust" proposition acts as a
beacon of how we conduct ourselves: every behaviour is guided by an intent to earn trust.

*Note: The ranking is with regards to the private sector (excluding LIC)

You're a few steps away from your customised quote.

55
Promoted By

CORPORATE SOCIAL RESPONSIBILITY

The IndiaFirst Life family constantly strives to channel the efforts of its employees, agents and
distributors into community development programs.

HELPING THE MASS MARKET WITH MICRO INSURANCE

For insurance to reach the masses, India needs a financial inclusion model that is fair,
transparent, cost effective, regulated and which leverages the existing infrastructure. We at
IndiaFirst Life Insurance have embarked on a journey to provide fairly priced, simple,
comprehensive and efficiently serviced insurance to the mass market. We are channelling our
efforts to make the insurance industry not only affordable, but also accessible and attractive to
the mass market.

FINANCIALLY INCLUSIVE INSURANCE (PMJJBY):

IndiaFirst Life is an insurance company that participates actively in the financial inclusion
scheme promoted by the government of India. PMJJBY is a bank account which is linked to a
group term assurance cover, with a fixed premium of INR 436 per annum in May 2022 and cover
of INR 200,000. The company offers this scheme through its bank partners, using technology
that has a completely integrated and low-cost distribution model.

India First Life is proud to wear the mantle of inclusive development by entering into an
agreement for distribution of its products through village level entrepreneurs (VLEs).

56
The Indian life insurance sector is growing at a rapid pace. But what are the best online
alternatives to Life Insurance? There are many life insurance alternatives to buy a life insurance
policy. Each company has its advantages and disadvantages. So before buying a life insurance
policy check each company’s benefits, features, claim settlement ratios, and other parameters to
get the best life insurance policy.

IndiaFirst Life Insurance is one of the best life insurance companies in India. IndiaFirst Life
Insurance offers a variety of products to customers who are looking for affordable life insurance
policies. But what if you want to compare IndiaFirst Life Insurance online alternatives? This
article will help you find the best online alternatives to IndiaFirst Life Insurance so that you can
make an informed decision about which company to choose. Before diving into the topic let’s
see what IndiaFirst life insurance is and how does it work?

IndiaFirst Life Insurance IndiaFirst Life Insurance Company Limited is one of the youngest life
insurance companies in India. It is a joint venture between Union Bank of India, Bank of Baroda,
and Carmel Point India Investments India Private Limited. It’s Headquartered in Mumbai,
IndiaFirst Life Insurance Company Limited is the fastest growing life insurance company in
India. IndiaFirst Life Insurance Company provides a wide range of life insurance products. Their

57
extensive knowledge makes their customers meet their requirements and are also satisfied by
their services.

Why Consider IndiaFirst Life Insurance Alternatives?

Comparing IndiaFirst Life Insurance Alternatives are not just about getting the best insurance
policy for your needs. It is more about getting the best for your loved ones too. IndiaFirst Life
Insurance Company offers a wide range of products for consumers, but it's important to know
that there are other options out there for you to consider. A comparison of the IndiaFirst Life
Insurance alternative will help you make a decision. There are many reasons why you should
consider IndiaFirst Life Insurance alternatives. Here are some of the reasons why consider
IndiaFirst Life Insurance Alternatives are

 For better & affordable rates.

 For better benefits and features

 For a wide range of life insurance plans

 For an excellent customer service support system, etc.

Best IndiaFirst Life Insurance Alternatives

The best IndiaFirst Life Insurance Alternatives are those that provide the same coverage as
IndiaFirst Life Insurance but have better customer service and cheaper premiums. But finding the
best IndiaFirst Life Insurance alternatives is not always an easy task. There are many things to
consider, such as your needs and budget. If you're looking for the best life insurance policy,
make sure to compare your options by visiting PolicyBachat.com. We've got your back with a
variety of policies and rates that can help you save time and money.

This article is a complete guide to finding the best IndiaFirst Life Insurance alternative. It will
help you find the best company for your needs, and it will also provide you with some of the
most important details about what to look for when you're comparing plans. To help you find the
best IndiaFirst Life Insurance alternatives for your needs, we've compiled a list of some of the
top companies that offer life insurance policies.

58
The Top 10 IndiaFirst Life Insurance Alternatives

Here is a list of the top 10 competitors or alternatives to IndiaFirst Life Insurance

 Exide Life Insurance

 Kotak Mahindra Life Insurance

 Reliance Nippon Life Insurance

 PNB MetLife Insurance

 Aditya Birla Sun Life Insurance

 Tata AIA Life Insurance

 Aviva Life Insurance

 ICICI Prudential Life Insurance

 Canara HBC OBC Life Insurance

 Edelweiss Tokio Life Insurance

#1 Exide Life Insurance

Exide Life Insurance is one of the Top 10 Most trusted companies in India. It was formerly
known as ING Vysya Life Insurance Company. It is a non-government and commercial life
insurance company headquartered in Bengaluru. The Exide Insurance Company is owned by
Exide Industries Limited and serves over 15 lakh customers. The Company is focused on
providing long-term protection and savings solution plans and has a strong traditional product
portfolio with a consistent bonus track record in the insurance sector. The company steps beyond
life insurance and provides need-based life insurance solutions.

Foundation: 2000
Claim Settlement Ratio: 98.54% Solvency Ratio: 2.24 Number of Branches: 200+

59
Benefits & Features:

 Wide Range of Products

 Affordable Premiums

 Customized Premium Payment Options

 Incredible Claim Settlement Ratio

 Customer-Friendly Procedures

 Excellent customer service

 Tax Benefits

Plans Available:

 Term Plans

 Child Plans

 Retirement Plans

 Savings Plans

 Investment Plans

 Health Plans

 Rider Plans

#2 Kotak Mahindra Life Insurance

Kotak Mahindra Life insurance company limited is one of the best and fastest-growing insurance
companies in India. It is a joint venture between Kotak Mahindra Bank Limited and Old Mutual
Limited, a pan African investment, savings insurance, and banking group operating. It provides
an extensive range of financial products to meet both corporate and individual investment needs.
Kotak life insurance secures your future and makes sure that all your investments keep giving

60
you profitable returns. Kotak Life Insurance Company provides a wide range of affordable Life
Insurance Policies.

Foundation: 2001 Claim Settlement Ratio: 98.50% Solvency Ratio: 2.90 Number of
Branches:232

Benefits & Features:

 Wide Range of Products

 High Coverage At Low Premiums

 Easy Policy issuance

 Award Winning Services

 Long-Term Coverage

 Tax Benefits

Plans Available:

 Term Plans

 Child Plans

 Savings and Investment Plans

 Protection Plans

 Retirement Plans

 ULIP Plans

 Health Plans

#3 Reliance Nippon Life Insurance

Reliance Nippon Life Insurance Company Limited is one of India's leading private sector life
insurance companies. Reliance Nippon Life Insurance Company is an important part of Reliance

61
Capital and it is a private-sector financial services and Non-banking Company. Reliance Capital
has diversified businesses in insurance of all kinds, asset management, mutual funds, commercial
finance, and other financial services. Reliance Life has a huge variety of life insurance plans that
offers tailor-made plans as per the customers’ requirements.

Foundation: 2001
Claim Settlement Ratio: 98.49% Solvency Ratio: 2.45 Number of Branches: 713

Benefits & Features:

 Affordable Premiums

 Multiple Premium Payment Frequencies

 Excellent Customer Services

 Multiple Add-On Covers

 Wide Range of Products

 Tax Benefits

 Customized Protection

Plans Available:

 Term Plans

 Savings Plans

 Retirement Plans

 ULIP Plans

 Health Plans

 Group Plans

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#4 PNB MetLife Insurance

PNB MetLife India Insurance Company Limited is one of the major life insurers in India. PNB
MetLife is a collaboration between MetLife International Holdings Inc., Punjab National Bank
Limited, Jammu and Kashmir Bank Limited, M.Pallonji and Company Private Limited, and
other private investors. This company offers a wide range of products for protection and
retirement. It is a one-step solution toward a safe future for you and your loved ones.

Foundation: 2001
Claim Settlement Ratio: 98.17% Solvency Ratio: 1.90 Number of Branches: 117

Benefits & Features:

 Affordable Premiums

 Maximum Sum Assured

 Excellent Customer Services

 Multiple Add-On Covers

 Wide Range of Products

 Return of Premiums

 Flexible Tenure

 Tax Benefits

Plans Available:

 Family Protection Plans

 Online Plans

 Long-Term Plans

 Child Education Plans

 Retirement Plans

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  Health Insurance Plan

 Group Plans

#5 Aditya Birla Sun Life Insurance

Aditya Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and
Sun Life Financial Inc. The company offers a wide range of life insurance products to suit the
needs of different customers. It is one of India's largest and most trusted life insurance providers
in India. Aditya Birla Sun Life Insurance Company was well known for its product innovations
as per customers’ needs and commitment to customer services.

Foundation: 2001
Claim Settlement Ratio: 98.04% Solvency Ratio: 1.80 Number of Branches: 340

Benefits & Features:

 Excellent Customer Service

 Easy And Hassle-Free Claim Settlement

 Flexibility in Premium Payment

 Tax Benefits

 Long-Term Coverage

 Affordable Premiums

 Easy Policy Issuance

Plans Available:

 Term Plans

 Retirement Plans

 Health Plans

 Child Plans

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  ULIP Plans

 Savings Plans

#6 Tata AIA Life Insurance

Tata AIA Life Insurance Company is one of the fastest-growing leading insurers in the Indian
private sector. Tata AIA Life Insurance Company Limited is a joint venture between Tata Sons
and AIA Group Ltd. Tata Sons holds a stake of 74% in the company and AIA holds 26%. It is
accomplished by offering customized life, health, and group insurance solutions to individuals,
families, and a group of people.

Foundation: 2000
Claim Settlement Ratio: 98.02% Solvency Ratio: 2.04 Number of Branches: 216

Benefits & Features:

 Wide Range of Products

 Trusted Brand

 Excellent Claim Settlement Ratio

 Affordable Insurance Plans

 Excellent Customer Services

 Flexible Payment Options

Plans Available:

 Term Plans

 ULIP Plans

 Retirement Plans

 Savings Plans

 Group Plans

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  Combo Plans

#7 Aviva Life Insurance

Aviva Life Insurance Company Limited India is a joint venture between Dabur Invest
Corporation and Aviva PLC UK-based Insurance Group. It is one of India’s oldest and most
respected insurance companies to fulfill policyholder certain needs. The main purpose of Aviva
Life Insurance Company is to give simple and useful policies that achieve customer life goals.
Aviva life insurance company’s gained experience in this field over centuries in offering
comprehensive insurance solutions.

Foundation: 2002
Claim Settlement Ratio: 98.01% Solvency Ratio: 2.24 Number of Branches: 790

Benefits & Features:

 Tax Benefits

 Wealth Creation

 Life-Long Coverage

 Investment Option

 Good Customer Support

 Easy Claim Settlement

 Death Benefits

Plans Available:

 Term Insurance Plans

 Retirement Plans

 Child Plans

 Savings Plans

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  Group Plans

#8 ICICI Prudential Life Insurance

ICICI Prudential life insurance company is a leading international financial services group
headquartered in the UK. ICICI Prudential Life Insurance Company has consistently been the top
company in the Indian Life Insurance Sector. It is a joint venture between ICICI Bank Limited
and Prudential Corporation Holdings Limited. The company aims to provide cost-effective
products, good supervision of assets and funds under its management, and a hassle-free claim
settlement experience for its valued customers.

Foundation: 2001
Claim Settlement Ratio: 97.90% Solvency Ratio: 2.17 Number of Branches: 514

Benefits & Features:

 Wide Range of Products

 Affordable Plans

 Excellent Claim Settlement

 Multiple Payout Options

 Excellent Customer Service

 Long-Term Coverage

 Tax Benefits

Plans Available:

 Term Plans

 Health Plans

 ULIP Plans

 Traditional Savings/Money Back Plans

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  Retirement Plans

 Group Plans

 Rural Plans

 Rider Plans

#9 Canara HSBC OBC Life Insurance

The Canara HSBC OBC life insurance company is a joint venture between Canara Bank, HSBC
Asia Pacific Holdings Limited, and Punjab National Bank. The company brings the trust and
market knowledge together of two big public sector banks in India namely Canara Bank and
Punjab National Bank combined with the global insurance expertise of HSBC. Canara HSBC
OBC Life Insurance is the first to launch 'Immediate Pay-outs on Death Claim' under unit-linked
policies so that the family of the life insured will receive the fund value immediately on
registration of the death claim.

Foundation: 2008
Claim Settlement Ratio: 97.10% Solvency Ratio: 3.27 Number of Branches: 2251

Benefits & Features:

 Financial Protection

 Easy Policy Issuance

 Tax Benefits

 Excellent Customer Service

 Hassle-free claim settlement

 Flexibility in Payment Options

Plans Available:

 Term Plans

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  ULIP Insurance Plans

 Child Plans

 Retirement Plans

 Savings Plans

 Health Plans

 Group Plans

#10 Edelweiss Tokio Life Insurance

Edelweiss Tokio Life Insurance Company is a joint venture between Edelweiss Financial
Services and Tokio Marine Holdings Inc. Edelweiss Tokio Life Insurance Company offers
comprehensive protection life insurance plans to help you to coverage for your life. The
company helps you to create a secure and bright future for yourself and your loved ones.
Edelweiss Tokio Life Insurance provides amazing services. Also, it has many attractive plans for
different types of customers to choose from as per their requirements.

Foundation: 2011
Claim Settlement Ratio: 97.01% Solvency Ratio: 2.15 Number of Branches: 116

Benefits & Features:

 Customizable Plans

 Simple Claims Process

 Complete Transparency

 Investment Option

 Tax Benefits

 Long-Term Coverage

 Affordable Premiums

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Plans Available:

 Term Plans

 Investment Plans

 Health Plans

 Retirement Plans

 Group Plans

 Micro Plans

Conclusion & Key Takeaways

Choosing the best life insurance online alternative can be a tedious task. There are many options
available in the market, and each one of them has its advantages and disadvantages. You can
choose from various companies that provide cheaper rates on life insurance policies. The best
IndiaFirst Life Insurance alternatives can provide you with peace of mind and a sense of security.
There are many alternatives to IndiaFirst life insurance. Compare top insurers with PolicyBachat
which offers a wide range of coverage options so that you can find the perfect plan that best suits
your needs. So, compare life insurance quotes and grab the best life insurance policy.

IndiaFirst Life Insurance ties up with five Regional Rural Banks

The five RRBs have 1,000 branch offices across 40 districts

IndiaFirst Life Insurance said it has partnered with five Regional Rural Banks (RRBs) to sell its
products to customers in the hinterland. The insurer has tied up with Bank of Baroda -sponsored
RRBs: Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat
Gramin Bank, besides Nainital-AlmoraKshetriya Gramin Bank and Jhabua-Dhar Kshetriya
Gramin Bank, a statement issued here said. The company's initial plan is to tie up with the RRBs
of its partner bank and later expand to RRBs of other nationalised banks and cooperative banks,
it said.

70
The five RRBs have 1,000 branch offices across 40 districts. Some of them have had experience
in distributing life insurance products thereby providing a ready platform to IndiaFirst Life for
launching and rapidly scaling up operations, it added. "This new tie-up will help us serve our
customers in rural areas in a better and effective way. There is an urgent need in the country to
not only taking financial services to the rural populace but also to make them financially literate
for true development to take place," IndiaFirst Life Insurance Managing Director and CEO, P
Nandagopal, said.

The insurance company is a joint venture between Bank of Baroda, Andhra Bank and UK's
leading risk, wealth and investment company Legal and General. Bank of Baroda holds a 44%
stake in the firm, while Andhra Bank and Legal and General 30% and 26% respectively.

71
CHAPTER 3
OBJECTIVE OF THE REPORT
This project executed to know what is precisely the Financial Planning. How is it carried out?
Who carries it out? Why is it carried out? When it will be carried out?? What is the interest of
carrying it out?

 To understand the awareness of Financial Planning and Education among the individual
investors.
 To analyze the investment behavior of Investors and also to statistically test the
interdependence of various attributes of investments.
 To take an overview of the investor's short and long-term goals and objectives.
 To have the current financial strengths and weaknesses and effect of the financial plan for
the investor.
 To study the financial objectives anchored to current resources for the investor.
 To give a particular summation of all recommendations.
 To suggest an appropriate financial plan for mutually selected recommendation
 To also give a comprehensive economic overview of the financial plan for the investor,
supported by financial statements and the other parties.
 To follow step by step enforcement and monitoring plan.

Estimating the capital requirement

Determining the investment or capital required for a business is the commencing step of a
financial plan. The capital requirement is divided into two categories:

1. Short-term capital

2. Long-term capital

Capital requirements are affected by multiple businesses needs such as the ratio of the
requirement for current and fixed assets, operation expenses, etc.

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Estimation of sources, availability, and timing of funds

This particular activity is time-consuming and requires precision in terms of execution. The
required funds should be made available at the appropriate times in alignment with the business
needs. It also includes estimating fund requirements for different purposes in the business.
Financial planning aids primarily by determining the cheapest sources of funds and ensuring
availability at the right time.

Determining the Capital structure for the business

The capital structure of a business refers to the composition of total internal and external debt
towards the shareholder’s capital. Financial planning includes determining an effective debt-
equity ratio of the business both short-term and long-term.

Avoiding unnecessary generation of funds

One may imagine that having an excess of funds can never be a bad thing. But that’s a
misconception. An unnecessary excess and shortage of funds, both, are expensive affairs. An
important function of financial planning is to ensure that the business does not raise unnecessary
resources. Excess funds are idle assets. They don’t earn revenues for the business, moreover,
incur their own cost.

Tackling financial risks:

Financial planning helps identify beforehand the operational and financial risks of a business. As
a result, effective strategies can be prepared to counter such identified risks and issues. This way,
the business can operate smoothly while also saving money and time.

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CHAPTER 4
RESEARCH METHODOLOGY
Research methodology simply refers to the practical “how” of any given piece of research. More
specifically, it’s about how a researcher systematically designs a study to ensure valid and
reliable results that address the research aims and objectives.

For example, how did the researcher go about deciding:

 What data to collect (and what data to ignore)

 Who to collect it from (in research, this is called “sampling design”)

 How to collect it (this is called “data collection methods”)

 How to analyse it (this is called “data analysis methods”)

Types of Research Methods

An area is selected, a specific hypothesis is determined and a defined conclusion is required to be

achieved. But how is this conclusion reached? What is the approach that can be taken up? As per

CR Kothari’s book “Research Methodology Methods and Techniques” (The Second Revised

Edition), The basic types of Research Methods are the following :

Descriptive Research

Descriptive Research is a form of research that incorporates surveys as well as different varieties
of fact-finding investigations. This form of research is focused on describing the prevailing state
of affairs as they are. Descriptive Research is also termed as Ex post facto research.

This research form emphasises on factual reporting, the researcher cannot control the involved
variables and can only report the details as they took place or as they are taking place.

Researchers mainly make use of a descriptive research approach for purposes such as when the
research is aimed at deciphering characteristics, frequencies or trends.

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Analytical Research

Analytical Research is a form of research where the researcher has to make do with the data and
factual information available at their behest and interpret this information to undertake an acute
evaluation of the data.

This form of research is often undertaken by researchers to uncover some evidence that supports
their present research and which makes it more authentic. It is also undertaken for concocting
fresh ideas relating to the topic on which the research is based.

Fundamental Research

This is a Research type that is primarily concerned with formulating a theory or understanding a
particular natural phenomenon. Fundamental Research aims to discover information with an
extensive application base, supplementing the existing concepts in a certain field or industry.

Research on pure mathematics or research regarding generalisation of the behavior of humans

are also examples of Fundamental Research. This form of research is mainly carried out in
sectors like Education, Psychology and Science.

For instance, in Psychology fundamental research assists the individual or the company in
gaining better insights regarding certain behaviors such as deciphering how consumption of
caffeine can possibly impact the attention span of a student or how culture stereotypes can
possibly trigger depression.

Quantitative Research

Quantitative Research, as the name suggests, is based on the measurement of a particular amount
or quantity of a particular phenomenon. It focuses on gathering and interpreting numerical data
and can be adopted for discovering any averages or patterns or for making predictions.

This form of Research is number based and it lies under the two main Research Types. It makes
use of tables, data and graphs to reach a conclusion. The outcomes generated from this research

75
are measurable and can be repeated unlike the outcomes of qualitative research. This research
type is mainly adopted for scientific and field based research.

RESEARCH METHODOLOGY of Financial Planning

Research area

The study is to deal with individual investor’s investment behavior towards various investments

modes available in lucknow with special preference towards investment schemes.

Research design
The purpose of the survey will be to understand the behavioral aspects of individual investors,

mainly their investment mode selection behavior; factors influencing their behavior and their

conceptual awareness level with special preference to mutual funds. Since it is a descriptive and

exploratory study, no specific hypothesis is formulated. The study may get affected by the

upward and downward movements of financial markets and other related factors which may

have significant influence on the individual investor’s selection behavior.

Sources of data
This study will be based on – literature review, collection of primary data through observations,

discussions, filled in questionnaires, interviews, etc. Initially a pilot survey will be conducted and

questionnaire will be improved in response to feedbacks from pilot survey. Secondary data will

be collected through published and unpublished research papers, periodicals, magazines,

newspapers, websites of various Mutual funds Companies, periodical reports of various Mutual

fund Companies, published books, published research papers and articles, etc.

Sample size and sampling techniques

The required data will be collected through a questionnaire using simple random and judgmental

methods of sample selection of at least 100 individual investors (this depends upon response

likely to be fully generated to be able to qualify to fall into research category, personally will like

a obtain as much possible higher numbers of respondents as possible).

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CHAPTER 5
FINANCIAL PLANNING FOR SALARIED EMPLOYEES
& STRATEGIES FOR TAX SAVINGS
Worked as Sales and marketing intern at Zieloch India Private Limited For 45 days where I got
to learn about the sales of Investment bond to the potential customers across the region.

Learned to convince customers to invest in India first life insurance mahajivan plus plan in
competence of other investment plans.

Financial Planning for Salaried Employees

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.

Personal Financial Planning Includes

 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.

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.

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  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.

78
4. Manage Your Savings

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. Retirement Plan

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

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:

79
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.

Tax Saving Strategies

Investment in bonds gives various tax benefits. There are 3 acts under these investment benefits
lies:-

80
  Section 80c
 Section 80d
 Section 1010d

Section 80C

Section 80C, including Sections 80CCC & 80CCD, prescribes combination of activities. If you
want to utilize your income in some of these activities during the Previous Year (PY) you can
claim the amount as a deduction from your total taxable income for the PY.

For Example: Assuming you earned a gross total income of `10,00,000/- as taxable income in PY
2015-16 (Assessment Year will be 2016-17 when you will estimate and pay the tax on this
income). If you invest `100,000/- of this income in any or multiple activities listed under Section
80C, your total taxable income will be reduced to `900,000/- for the PY.

How to avail tax deductions under Section 80C?

Activities under Section 80C can be divided into two parts:

1. Investment Activities: You park your money in an investment for some time and then get
it back.

2. Spending Activities: You spend your money on the activities listed under Section 80C.

Section 80D

Section 80D allows for the deduction for money spent on maintaining your health
and health insurance, and assumes great significance in your tax planning and personal finance.

What deductions are allowed u/s 80D?

1. Money spent as premium for health insurance policy

2. Money spent on healthcare of family members including parents

Money spent on maintaining a health insurance policy can be claimed under section 80D. The
amount is limited by the age of the insured under the plan.

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10 (10D) of Income Tax Act

A person can enjoy tax-exempt status on the lump sum assured and accrued premium (if any)
earned through their term life insurance policy claim under Section 10 (10D) of the IT Act, 1961
– that is maturity or death benefit. This exemption is available on various life insurance claims
and also applies to the payments received from a Unit linked insurance plans having aggregate
premium less than 2.5L in a financial year at maturity or even in case of premature withdrawal
subject to applicable provisions.

Exemptions under Section 10 (10D) of Income Tax Act

Here are the various tax benefits that can be availed under Section 10 (10D) of the Income Tax
Act, 1961:

 If the insurance premiums that were paid in a single year throughout the term of the
policy for a policy bought between 1 April 2003 and 31 March 2012 are not over 20% of
the insurance cover, one may qualify for the deductions under Section 10(10D).

 However, the premium amount should not be greater than 10% of the insured total if the
policy is acquired after 1 April 2012.

 The exemption on life insurance obtained before 1 April 2013 does not surpass 15% of
the guaranteed value in the event that the insured is seriously disabled or ill.

 Section 80U of the act lists the disabilities that fit within this group, such as
developmental disorders, autism, and so on.

 Section 80DDB lists the illnesses that are covered by this waiver.

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CHAPTER 6
FINDINGS
The comprehensive study about every aspect of this topic shows that Financial Planning is a
dynamic and flexible concept which involves regular and systematic analysis, proper
management, judgment, and actions.

It can also conclude that clients or Investors should start planning soon, set measurable goals,
Look at the bigger picture, and should not expect unrealistic returns on the investments and value
of the plan lies in its implementation. It accurately reflects what you are personally trying to
accomplish.

It can also conclude that with the combination of different stocks, we can reduce the risk and
increase the returns of a portfolio. By constructing a portfolio, we can only minimize the
unsystematic risk, and we cannot minimize systematic risk.

A proper Fundamental & Technical Analysis should do before selecting any particular stock for
the portfolio. It minimizes the risk involved.

Financial Planning Service that was not so popular earlier as other services have gained a lot of
importance and popularity & will gain more reputation in the future as people now understand
the importance of it.

Financial planning service is an essential and useful investment tool for meeting your life goals
through the proper management of your finances.

Everyone should start financial planning at an early stage.

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CHAPTER 7
CONCLUSION
From the above all discussions, the research study shows that many of the investors have a wider
range of financial planning and this in turn depends on the educational qualification and as well
the age factors too. As and when the needs of the investors are increased (after
marriage/retirement), the need for the investment too changes. However, there is no relationship
between expected rate of return and the risk tolerance levels and the same is applicable to the
nature of employment and the organs of investment.

In the current context the research takes on modern forms of investment. Investment and
financial products become a common and important factor in leading a healthy lifestyle. The
study identified the main objectives of the code of conduct and investment for investors.
Research is also draw an important conclusion from research that investors are interested in
investing in the long term with low risk, high returns and low risk, and with great interest in good
returns from their series decisions while investing. Investors are aware about the factors their
investment plans, and they do take advice from financial advisor, self- analysis by investors
themselves and family consult. The study also draws that investing in financial products is more
male driven compare to female.

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CHAPTER 8
LIMITATIONS
Financial planning consists of various limitations:-

FUTURE IS UNCERTAIN

Any plan we make is for future events. As we all know, the nature of the future is uncertain and
no one can predict the future. Due to this, all the financial plans we make are limited and
unexpected. Such uncertainty decreases the reliability of financial planning.

FINANCIAL PLANNING IS EXPENSIVE

A proper financial planning requires heavy investment of time and resources. Financial planning
requires assessment of high quality data from reliable sources. Managing sources and extracting
information from those sources requires proper research, which needs time and investment. Also,
quality financial planning and proper forecasting can only be done by an expert and analysts.
Due to this reason, not all can make an effective financial plan.

AVAILABILITY OF DATA

The quality of financial planning depends on the availability of the data. This means, financial
planning is heavily dependent on the data-factor. In a financial plan, we make future financial
projections based on our past financial actions. If we do not have proper data, the credibility of
the financial plans decreases. Any discrepancies in the data directly affect the quality of the
financial plan.

EVER CHANGING ENVIRONMENT

Financial planning is not a regular practice, as it is expensive and consumes time. But, the
environment around the businesses is regularly changing. Changing the financial plan with a
change in business environment is not possible. There may be some changes in government rules
and regulations, supply chain ecosystem, customer changes and preferences etc. which may
affect the plan adversely. Therefore, in such a changing environment, financial planning
becomes less relevant.

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PLAN RIGIDITY

Financial planning doesn’t change with the changing environment. This also means that the plan
remains rigid once it is made. There is inflexibility and procedural rigidity when some changes
need to be done. This is another limitation of financial planning.

COORDINATION PROBLEM

Execution of financial planning requires coordination with all other business functions. All
functions must align the purpose and perform for effective execution and result. Even indecision
among the business function, in regard to financial planning, disturbs the process of financial
planning.

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CHAPTER 9
RECOMMENDATIONS OR SUGGESTIONS

 The first and foremost suggestion to maintain an investment climate is based on their
goals and types of Investment Avenues.
 Instead of making poor investment decisions and making small profits, it is advisable that
investors should enlist the help of financial planners.
 Now-a-days returns on various investments are based on market conditions. So, of course
it is good for investors to keep updating the new guidelines, changes and terms and
conditions.
 Not only do they need to know the investment options in which to invest, but they also
have to you know how to invest in them all. In this way they can make the needed
changes by keeping their portfolio profitable.
 Recommendations for investors who want to invest at high risk and balanced risk to
invest with direct shares and Mutual funds.
 Investors who invest in stocks and stocks are both equally equal the portfolio should be
updated regularly so that, if a few stocks are not performing well, then the necessary
changes can be made.
 Instead of going for traditional investments they can choose new ways of investing.
 Current imports to address the inflation rate from your investment benefits so choose
your investment strategies wisely.
 Investors of Mutual fund should be patient in changing market conditions.
 Considering investing in key foundations is good but before this asset management it is
required for a small investor.

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 BIBLIOGRAPHY

References:-

 Raghvendra Rao Rentala. (1 February 2018). A RESEARCH STUDY ON FINANCIAL.

PLANNING.
 Ashly Lynn Joseph, & Dr. M. Prakash. (2017). A study on preferred investment avenues
among the people and factors considered for investment. International Journal of
Management and Commerce Innovations.
 Brahmabhatt, P.S Raghu Kumari, & Dr. Shamira Malekar. (2019). A study of Investor
Behavior on investment avenues in Mumbai Fenil. TRANS Asian Journal of Marketing &
Management Research (TAJMMR).
 C.R. Kothari. (2013). Research methodology: methods and techniques. Vishwa
Prakashan,..
 Chaiubey.D.S, & Rajat P.Dimri. (2009). “Investment Pattern: A Psychographic Study of
Investors of Garhwal Region of Uttrakhand “.

Websites:-

 https://zielhoch.com/About.html
 https://www.oreilly.com/library/view/financial-
planning/9781119491484/f06.xhtml
 https://www.godigit.com/finance/financial-planning-for-salaried-
employees#:~:text=Financial%20Goal%20%E2%80%93%20This%20i
ncludes%20the,%2D%20beginner%2C%20intermediate%20and%20e
xperienced.
 https://www.indiainfoline.com/knowledge-center/Financial-
Planning/what-should-be-the-main-objective-of-your-financial-plan
 https://noteslearning.com/limitation-of-financial-planning/
 ANNEXURE
ANNEXURE 1: QUESTIONNAIRE

Myself, Aviral Nigam, Student of LBSIMDS, Lucknow, pursuing MBA, wish to study in depth
the importance of Life Insurance Policies and factors affecting for purchase of Life Insurance
Policies, as a part of Summer Internship Project. The survey would not take more than 5 minutes
of your time.

The data collected will be confidential.

Email Address:

1. My Gender: - - Male - Female

2. My Age: - 21 to 30 years - 31 to 40 years - 41 to 50 years - 51 to 60 years - 61

years and above

3. Marital Status: - Single - Married

4. My Occupation: - Govt. Service - Business/Private - Professional - Agriculture

- Others:

5. My Salary Range (Monthly) - ₹0 - ₹20000 - ₹20001 - ₹40000

- ₹40001 - ₹60000 - ₹60001 - ₹80000

- ₹80001 - ₹100000

- ₹100001 and above

6. Do you hold an Insurance Policy(s)? - Yes - No

(Please answer the further questions based on your thinking even if you don’t own an Insurance,
leave the question if you don’t want to answer it)

7. Do you consider Life Insurance policies as - Yes - No a source of Investment?

8. Are you aware of various Life Insurance Products? - Yes - No

9. What preference would you give to Life - High - Medium - Low Insurance?

10. Which Life Insurance do you prefer the - Max Life - ICICI Prudential most for
Insurance?

- HDFC Standard - SBI Life

- Bajaj Allianz - LIC

- Other -

11. Are you Happy with the Services? - Yes - No

12. What type of Insurance Policy do you hold?

- Endowment - Term Plan

- Unit Linked - Money Back

- Don’t Own any

-Others-

13. What are the features that you would prefer in Life Insurance Policy?

- Money Back Guarantee - Larger Risk Coverance (Rank each feature in order of your

- Easy Access to Agents Preference – 1 to 5) - Low Premium

- Company’s Reputation

14. What would you prefer in Insurance?

- A trusted name Company? (Multiple Choice) - Good Plans

- Friendly Service and Responsiveness

- Accessibility