DEPARTMENT OF COMMERCE

INTEGRAL UNIVERSITY , KURSI ROAD , LUCKNOW , 226026

SESSION : 2024-25

Industrial Training Project Report on

“Financial Planning for Salaried Individuals & Strategies for Tax Saving”

Submitted in partial fulfillment for the award of degree of

BACHELORS OF COMMERCE (HONS.)

Submitted by : Priyanshi Agrahari

Roll no. 20221079164

Under the guidance of :

Dr. Mohammad Mustehasan ( Assistant Professor)

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 DECLARATION

I,Priyanshi Agrahari ,hereby declare that the presented

Industrial training project titled “Financial Planning for
Salaried Individual and Strategies for Tax Saving” is uniquely
prepared by me after the completion of my six weeks work at
Zeilhoch . This has been undertaken for the purpose of partial
fulfillment of my B.Com( hons) program at Faculty of
Commerce and Management , Integral University ,Lucknow .

I,also confirm that the report is only for my academic

requirement ,not for any other use. It might not be used with
the interest of the opposite party for the corporation.

Name of the candidate : Priyanshi Agrahari

Enrollment no. 2200104298

Roll no. 20221079164

Signature :

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CERTIFICATE OF INDUSTRY GUIDE

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 CERTIFICATE OF GUIDE

This is to certify that the Industrial Training Project Report

entitled “Financial Planning for Salaried Individual
Strategies for Tax Saving” submitted to the Department of
Commerce, Faculty of Commerce, Integral University, in
partial fulfillment for the award of the degree of Bachelor of
Commerce (Hons), is a record of work carried out by Priyanshi
Agrahari, Roll No. 2022107964, under my guidance.

The Industrial Training project Report of the student is found

to be satisfactory for submission for the award of degree of
B.Com (Hons). I wish him all the best for her future endeavors.

Dr.Mohammad Mustehasan

Assistant Professor

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 ACKNOWLEDGEMENT
I would like to express my deepest gratitude to Prof. S.W. Akhtar,
Honourable Chancellor and Founder of Integral University, for
establishing this esteemed institution and providing us with an
environment conducive to academic excellence and personal
growth.
I am also profoundly grateful to Dr. Syed Nadeem
Akhtar,Honourable Pro Vice Chancellor, for his visionary leadership
and encouragement, which continually inspires us to strive for
excellence.
My sincere thanks to Prof. Javed Musarrat, Honourable Vice
Chancellor, for his guidance and support, which have been
instrumental in shaping my academic journey at Integral
University.

I extend my heartfelt appreciation to Dr. Mohammad Mustehsan,

Assistant Professor, Department of Commerce, who supervised my
internship and provided invaluable insights, mentorship, and
support throughout this experience.
I would like to acknowledge Dr. Adeel Maqbool, Dean and Professor,
Vice Dean of the Faculty of Commerce, for his continuous support
and encouragement during my academic endeavours.

Finally, I express my gratitude to my family, friends, and all those

who have supported me throughout this internship and in the
preparation of this report. Their encouragement and assistance
have been invaluable to my academic and professional
development.

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 TABLE OF CONTENT

Sr.No Title Page No.

i Inner page title -
ii Declaration -
iii Certificates by guide -
(industry&university)
iv Acknowledgment -
1 Executive summary 1
2 About the industry 2-4
3 Conceptual 5-7
background of topic
4 Company profile 8-21
5 Objective of report & 22-29
Research
methodology
6 Data analysis & 30-33
Interpretation
7 Findings, 34-39
suggestations,
conclusion,&
limitation
8 Bibliography 40
9 Questionnaire 41-43

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CHAPTER 1

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 Executive Summary

Zielhoch, headquartered in Delhi, is one of India's most reliable

consulting firms. As financial advisors, we primarily focus on
providing help to all individuals who have aspired to be financially
self-sufficient.
This summer I had the opportunity to intern in their marketing
department , focusing on developing and implementing marketing
strategies.
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.

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 Decisions.

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 the customer decision to buy
an Investment Bond majorly depends on demographic factors like
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.

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CHAPTER 2

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 ABOUT THE INDUSTRY

The consulting, financial advisory, and accounting industry plays a critical

role in the global economy, serving as a cornerstone for businesses of all
sizes. This industry encompasses a wide range of services designed to
help organizations navigate complex financial landscapes, optimize their
operations, and achieve sustainable growth.

Consulting Services
Consulting firms provide expert advice across various sectors, including
strategy, operations, technology, and human resources. They assist
businesses in identifying challenges, implementing solutions, and driving
performance improvements. In a rapidly changing market, the demand for
specialized knowledge and innovative strategies has never been higher,
leading to a robust growth trajectory for consulting firms.

Financial Advisory
Financial advisory services focus on guiding clients through financial
decisions, including mergers and acquisitions, investment strategies, risk
management, and regulatory compliance. Advisors leverage their expertise
to help organizations maximize their financial performance and minimize
risks, especially in uncertain economic climates. The increasing complexity
of financial markets has amplified the need for expert financial guidance,
making this segment a vital part of the industry.

Accounting Services
Accounting firms offer essential services such as auditing, tax preparation,
and bookkeeping. Accurate financial reporting and compliance are critical
for business sustainability, and skilled accountants provide the expertise
necessary to ensure organizations meet regulatory standards while
maximizing tax efficiency. The ongoing advancements in technology,
including automation and artificial intelligence, are transforming the
accounting landscape, enhancing efficiency and accuracy.

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Industry Trends
As businesses face evolving challenges such as digital transformation,
globalization, and regulatory changes, the industry continues to adapt. Key
trends include a heightened focus on sustainability and corporate social
responsibility, increased demand for data analytics, and the integration of
technology in service delivery. Firms that leverage these trends are well-
positioned to provide value-added services to their clients.

Zeilhoch’s Role

In this dynamic and ever-evolving landscape, companies like Zeilhoch are

essential partners for organizations seeking to thrive. By combining deep
industry knowledge with innovative solutions, Zeilhoch is committed to
delivering tailored consulting, financial advisory, and accounting services
that empower clients to achieve their strategic goals and drive long-term
success.

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CHAPTER 3

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 Conceptual background of the topic

Financial planning for salaried individuals is a systematic approach to

managing personal finances, aimed at achieving long-term financial
stability and growth. This process involves assessing one’s current
financial situation, setting clear financial goals, and developing a
comprehensive strategy to reach those goals. Key components include
budgeting, saving, investing, and understanding tax implications.

Importance of Financial Planning

1. Goal Setting: Financial planning helps individuals define short-

term and long-term financial goals, such as buying a home,
funding education, or planning for retirement. Clear goals provide
direction and motivation.
2. Budgeting and Cash Flow Management: A well-structured
budget enables salaried individuals to track income and expenses,
ensuring they live within their means while setting aside funds for
savings and investments.
3. Emergency Preparedness: Financial planning includes creating
an emergency fund to cover unexpected expenses, helping to
avoid debt and financial stress.
4. Investment Strategy: Effective financial planning incorporates
investment strategies that align with risk tolerance and financial
goals, helping individuals grow their wealth over time.

Tax Considerations

Taxation is a significant aspect of financial planning for salaried

individuals, as it directly impacts take-home pay and overall financial
health. Understanding tax obligations and exploring strategies for tax
savings can enhance disposable income and promote wealth
accumulation.

Strategies for Tax Savings

1. Utilizing Deductions and Exemptions: Salaried individuals can

take advantage of various tax deductions, such as those for home

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 loan interest, education expenses, and medical bills. Familiarity
with available exemptions can significantly reduce taxable income.
2. Tax-Advantaged Accounts: Contributing to retirement accounts
(like 401(k) or IRAs) or health savings accounts (HSAs) can offer
tax benefits. Contributions to these accounts are often tax-
deductible, reducing taxable income.
3. Investing in Tax-efficient Instruments: Certain investments,
like equity-linked savings schemes (ELSS) or municipal
bonds, provide tax benefits. Understanding which investment
vehicles offer tax advantages can lead to more effective
wealth management.
4. Maximizing Employer Benefits: Many employers offer benefits
that can reduce tax liabilities, such as flexible spending accounts
(FSAs) or retirement savings plans with matching contributions.
Taking full advantage of these benefits can enhance financial
outcomes.
5. Charitable Contributions: Donating to qualified charities can
provide tax deductions. Planning charitable giving can not only
support causes individuals care about but also reduce taxable
income.
6. Tax Planning Throughout the Year: Instead of waiting until tax
season, proactive year-round tax planning allows individuals to
make informed financial decisions that can mitigate tax liabilities
and optimize tax savings.

Conclusion

Financial planning for salaried individuals, combined with effective tax-

saving strategies, is essential for achieving financial goals and
enhancing overall financial well-being. By understanding their financial
landscape and implementing thoughtful strategies, individuals can
navigate their financial journeys with confidence, ensuring both short-
term stability and long-term prosperity.

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CHAPTER 4

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 Company profile

Zeilhoch
Zielhoch Together Lets Aim For High Zielhoch, headquartered in
Delhi, is one of India's most reliable consulting firms. 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.

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

● 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

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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.

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

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 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.
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

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all have dreams, but they (almost) universally cost money. A
professional will put these Visions into wealthbuilding calculations
via a series of viable, financially responsible and beneficial moves.

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.
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

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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.
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

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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.
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.

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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 efficient.
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.

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

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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 fortype 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.

5. House Expansion or Extension Loans Want another balcony or an

additional bedroom? No worries, bank also offer loans for house
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 easier for an average middle-class salaried person to afford
buying a home of their own.

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 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 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 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. 25 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

18
 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.

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

19
also more affordable if youbuy them early in life. Experts often
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 lockin 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

20
above the sum assured of your policy. Lastly, the returns
generatedon 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.

21
CHAPTER 5

22
 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.
Estimation of sources, availability, and timing of funds

23
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.

24
CHAPTER 6

25
 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.

26
Researchers mainly make use of a descriptive research approach for
purposes such as when the research is aimed at deciphering
characteristics, frequencies or trends.

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

27
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 are measurable
and can be repeated unlike the outcome of qualitative research. The
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 investment 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.

28
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 50
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).

Data Collection

This research study is based on primary data structured questionnaire

has been used .
A structured questionnaire was used as tool to collect data.

29
CHAPTER 7

30
DATA ANALYSIS AND INTERPRETATION

Demographic factor :
As per demographic factor the total number of prospects
are 50, out of which 30 are males and 20 are females.
They help me to fulfill my questionnaire and they are
from different area of my network

31
Age factor :

My target age group was from 18 years to 60 years . Basically a

person falling in this age group must have employment.

Persons having age between 18 to 25 years are 10 in numbers,

person having age between 25 to 45 years are of majority 25 in
number. And persons having age between 45 to 60 years are 15 in
numbers.
All these people are familiar with finance & tax .

32
This was a study of salaried person so 90% of the prospects are salaried
individual

Only 10% prospect i.e 5 persons are from other profession.

Annual Income :

25 of the proppects have annual income more than 7 lakhs.

15 of the prospects have annual income less than 7 lakhs but more than
3 lakhs.
10 of the prospects have annual income range between 1 lakhs to 3
lakhs

33
CHAPTER 8

34
 FINDINGS,SUGGESTION & CONCLUSION

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.

35
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 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.

36
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.

37
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.

38
 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 irrelevant.

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.

39
 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%20includes%20the,%2D%20beginner%2C%20int
ermediate%20and%20experienced.
● 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/

40
 QUESTIONNAIRE

ANNEXURE 1: QUESTIONNAIRE

Myself, Priyanshi Agrahari , Student of Integral University,

Lucknow, pursuing B.COM( H ), 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: - a) Male b) Female

2. My Age: - a) 21 to 30 years b)31 to 40 years c) 41 to

50
c)51 to 60 years e) 61 years and above

3. Marital Status: a) Single b) Married

4. My Occupation: - a)Govt. Service b) Business/Private

Professional - c)Agriculture d) Others:

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

₹20001 - ₹40000
₹40001 - ₹60000
₹60001 - ₹80000
₹80001 - ₹100000
₹100001 and above

41
 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 a) Yes b) No

a source of Investment?

8. Are you aware of various Life Insurance Products? a) Yes b) No

9. What preference would you give to Life a) High b) Medium

c) Low Insurance?

10. Which Life Insurance do you prefer the -

a) Max Life
b)ICICI Prudential most for Insurance
c)HDFC Standard
d)SBI Life
e)Bajaj Allianz
f)LIC
g)Other

11. Are you Happy with the Services?

a) Yes b) No

12. What type of Insurance Policy do you hold?

a) Endowment
b)Term Plan
c)Unit Linked
d) Money Back
e)Don’t Own any
f)Others
13. What are the features that you would prefer in Life Insurance
Policy?
-
a) Money Back Guarantee

42
b)Larger Risk Coverance (Rank each feature in order of your - Easy
Access to Agents Preference – 1 to 5)
c) Low Premium
d)Company’s Reputation

14. What would you prefer in Insurance?

a) A trusted name Company
b)Good Plans
c)Friendly Service and Responsiveness
d)Accessibility

43