Chapter -1 Introduction

1.1 Objective of the project

As per the MBA curriculum at the second semester all the student are required to undergo summer training programmed for at least 8 weeks. The main objective of carrying out this is to know the organi!ation"s work culture. The purpose of the project is to know the operation of the organi!ation to do the through study practical knowledge. gain practical knowledge about

The summer project provides required practical training to student.

1.2 Objective of the study

To study the importance and effectiveness of financial planning in individuals life.

To study that is financial planning effective tool in maintaining standard of living and achieving the financial goals of individual$

To study investment opinion about mutual fund. To study the role of financial planning in portfolio management. To study the benefits of portfolio management.

1.3 Selection of topic

&n today near about '( to ') mutual fund companies are operating in &ndia and in same number insurance companies also operating in &ndia. A lot of product and near about #*** schemes are available in mutual fund+ and insurance. &n both term have a comple, product+ and that time the investor become confuse and attracted towards the product and he forget about essential requirements so he needs a proper portfolio management or -inancial planner who identified a proper need of investor and create a plan which are related to need and select a product which will give a positive return to the investor in future. & was looking a firm+ which are doing a financial planning of individual. & also want to get knowledge of -inancial .lanning and & can use this knowledge to do my own financial planning. &n some cases the persons have a lot of money but they don"t know where to invest this money that will give a higher return on investment. And some cases a persons who does not have a lot of money but they don"t know how to use this money for archiving future goal"s at that time a need arises of a better financial consultant which are manage a portfolio of individual

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1.4 Research

ethodolo!y

/esearch is an art of scientific investigation of inquiry especially through search for new facts in my branch of knowledge. &t is the moment from unknown to known. The methodology used for the .ortfolio management is nothing but the data available in the 0ompany about the customers is being used to update the system+ which then generates the various /eports+ which are beneficial for the /elationship Manager. /esearch comprises defining redefining problem formulating hypothesis of evaluating the data making deduction suggesting solutions+ collecting+ organi!ation

researching conclusion to determine whether they fit the formulating hypothesis. Adoption appropriate methodology is an essential characteristic of quality research studies irrespective of the discipline with which they are relative.

"ethod of data collection#

$ri ary %ata# 2ata from primary source collected sitting with financial consultant and asked questions 3interview4 to the client.

Secondary %ata# The main source secondary data for .ortfolio management+ is the 5ame+ Address of the 0ompany 0ustomers for whom the .ortfolio management has to be made. This was available for the 0ompany 6ystem.

1.& Scope of the Study

The scope of my project was to study the /ole of financial planning in .ortfolio Management of the Sin!le 'indo( Services Co pany. Management is really important element of -inancial .lanning. 7hile working on .ortfolio Management 6ystem+ & understand the various factors like+ 5ature+ purpose+ conditions+ and income level of each and every customer. -irstly & need to understand what kind of services offered by the 0ompany to their customers and accordingly & need to take the steps towards the designing the .ortfolio for the individual customers 3which includes+ salary earner+ businessman+ self employed etc.4 -or that 0ompany had assigned me their -inancial 0onsultant as a Trainee. &n today"s area as+ the .ortfolio

1.) *i itation of study

Time period was limited for the project so it was not possible to learn whole things in the financial planning. 0lient"s interaction was not permitted all the time and on all the topics. 7rong information given by the client cannot be result in achieving the objective of financial planning. Time period given by the e,pertise was very limited to cover the comprehensive concept of financial planning

1.+ Rational of the study

1. ,tility to the or!ani-ation &t will help management to know specific areas that need improvement and detect any trouble spot"s that may prevent the attainment of objective. &t will be helpful as a guide to management in formulating future financial planning and policy. &t will help them to take invest and strategic decision"s. e

2. ,tility to

&t help"s me in gaining comprehensive understanding of all aspect"s relating to -inancial .lanning and .ortfolio management. The project has benefited me tremendously and & am sure it would benefit me in future also. As & have gained a lot of practical knowledge in subject of The /ole of -inancial .lanning in .ortfolio Management.

&n future & will get an opportunity to work in financial consultancy organi!ation & can work effectively and efficiently as that area would be somewhat known to me.