About Suresh Rathi Securities

Suresh Rathi Securities Pvt. Ltd. is a member of Bombay Stock Exchange, National Stock Exchange, Derivatives and Central Depository Services Ltd. The company is in business of stock broking and allied activities and is providing services like equity broking, investor guidance & education, mutual fund & IPO distribution. The company has a network of 125 Business Associates serving around 25000 clients in more than 40 cities. Needless to mention, our entire back-office operations are fully computerized, giving us that technological edge to service the clients effectively

Services:
Equities: SRSPL provides fast, efficient, quality-based service with immediate execution
and the timely pay-in/pay-out of deliveries and funds, resulting in substantial cost savings for our customers. Our processes have been developed so as to maximize customer benefits with personalized services.

Derivatives: Derivatives (Futures & Options) are ideal instruments to protect your
portfolio against risk. You can trade with index movements, hedge and leverage your portfolio by limiting risk but keeping your upside unlimited.

Depository Services: In the times of T+2 having a demat account linked to your trading
account becomes really convenient. The non-trading clients also can avail of our Depository services. You receive regular account reports and an efficient service at all times.

Mutual Fund Distribution: Based on your risk appetite, investment horizon and your
existing investments we will suggest investment in mutual fund schemes, which are best, suited to you. The fund and scheme selection is done after an in-depth research on parameters

like risk-adjusted returns, rolling returns, volatility and portfolio churn. We provide a mature and long-term view on mutual fund investments. Insurance :

Internet Trading: We also provide internet trading facility through BSEWEBX. New Issues: IPO bidding facilities are available & Clients can apply for new issues through
us.

Online Back Office: Clients can view their contract notes, bills and ledgers through our
website srspl.com

Insurance: Life insurance products offer comprehensive financial solutions which besides
offering financial security also provide opportunity for saving, investment & tax planning. You don't know how much you need...If you're wondering what kind is right for you. They'll help you figure out how much life insurance is right for you, and we'll look at one's attitudes and preferences to see which kind of insurance fits the best.

Vision
To Become A Well Respected Global Financial Services Company By Assisting Investors Create Wealth In Stock Markets.

Mission Statement
Our Mission Is To Meet The Needs Of Individual Investors By Providing Financial Services And To Work Hard Towards Improving Our Ability To Get The Right Results For Maximizing Customer Delight.

Guiding Principles and Core Values:

Customer Interest Is Paramount. Ethical And Transparent Business Practices Respect for Professionals, Associates and Business Partners. Research Based Value Investing. Cutting Edge Technology to Ensure World Class Customer Service.

Board Members
Mr. Suresh Rathi (Chairman)

Mr. Lalit Mundra (Executive Director) Mr. Saurabh Rathi (Director)

Financial Planning
Introduction
Financial planning means striking a balance between your income and expenditure in order to achieve your financial goals. The goal could be a good life after retirement or planning for your child's future. The financial planning is a comprehensive exercise, where a logical step-by-step approach undertaken with your professional advisor to deliver a tailored, overall strategy designed to satisfy your immediate concerns as well as your long-term financial security.

Need of a Financial Plan

Modern life is complicated - and hectic. Often we feel we are too consumed with the more mundane problems of day-to-day living to find the time to manage our longer-term financial affairs with the care they deserve. As well, designing a plan for your financial future requires a multi-disciplinary approach; most of us dont have the knowledge or the time to acquire it.
Financial planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances. For example, buying a particular investment product might help you save adequately to finance your child's higher education or it may provide enough for a comfortable retirement. You can also adapt more easily to life changes and feel more secure that your goals are on track. Some of the

more commonly-cited reasons for the need of a financial planner are: Uncertainty of future Global recession Highly volatile capital market Fluctuating rate of inflation Hiking gold prices 4

Fluctuating currency rates

It is useful to everyone. Very few can consider themselves too rich to engage in Financial Planning. There are many instances of highly paid employees who came to financial grief merely because they did not plan for their post-career years. Similarly even people earning small amounts of income should undertake this process, as it will help them in prioritizing their goals so that their limited income can be used more efficiently.

Financial Plan Include

A financial plan should include A review of your net worth, goals and objectives, Investment portfolio Cash flow management Retirement planning Tax planning Insurance needs Estate Planning As well as a plan for implementing your goals.

Financial Planner
A financial planner is someone who uses the financial planning process to help you determine how to meet your life goals. The key function of a financial planner is to help people identify their financial planning needs, their present priorities and the products that are most suitable to meet their needs. The planner can take a 'big picture' view of your financial situation and make financial planning recommendations that are right for you.

Benefits of a Financial Planner are

 Helping

you in better understanding

your present financial position

The questions contained in the Financial Questionnaire require you to list down your assets, liabilities, incomes and expenditures. This is a process of virtually drawing up your own Balance Sheet and will help you gain a better grip on your present financial position. Cash

Flow and Debt Management

Incomes and expenditures can be better matched through the Plan. It also will assist you in identifying whether your borrowings are within prudent limits. More... Risk

Management

We can help you in identifying your life and property insurance requirements. Evaluating your insurance needs is part of personal financial planning. Insurance usually takes care of your unpredictable needs and as these needs can arise at anytime, insurance is extremely important. Achievement

of Financial objectives

Various financial objectives, whether it is financing our child's education, a house of our own or our post-retirement phase can be better met through systematic investing. A properly laid out investment plan, prepared after considering your risk appetite, time horizons etc. go a long way in helping face the future more confidently. Taxation Often investors invest with the sole objective of saving tax. We believe that this is not the most desirable method. Investments should be in sync with your requirements, the tax angle being secondary. However, we do not ignore the tax aspect. Optimum Post tax returns are what all investors should be concerned about and that is what we too strive for. It is important that financial plans are tax efficient. The financial plan should help you in minimizing your tax liability and also maximizing your after-tax returns from your investments.

 Inter-generational

transfers

Estate planning is arranging for the transfer of your property to your heirs and to other beneficiaries, in a way that will, as much as possible, achieve your objectives. The most common vehicles for this purpose are the drafting of Wills and setting up of Trusts.

Five Steps to Make a Financial Plan.

Step 1 - Seek advice!
This might be a very convenient thing for a financial adviser to say but it really does make sense to get advice on your situation before making any big decisions about your finances. Everyone has different needs. Everyone has different goals. Get the right advice at the right time from a regulated and qualified adviser. Make informed decisions - don't just read the national press or browse a few websites.

Step 2 - Protect you and your family

Most people would agree that protecting your family financially is of the utmost importance. You should have a number of insurance policies in place that provide lump sum or regular monthly payments should the worst happen. Such policies can include; Life cover, Income Protection, Mortgage Protection etc.

Step 3 - Build a "rainy day" cash fund

It is sensible to have a contingency plan that incorporates investing in a cash pot that can be easily accessed in an emergency. How much you need, will depend on your personal circumstances and this will need careful consideration. A rule of thumb would be to have access to 3 months salary at any one time.

Step 4 - Pay off your expensive debt

You should aim to dispose of expensive debts at the earliest possible moment. This can and should of course include your mortgage but you should also focus on debts for car loans, home improvements etc. Such debts are seldom reduced without great effort and planning but for example paying extra each month on your mortgage can result in thousands of pounds of savings on interest during the term of the loan.

Step 5 - Invest in a pension and make the most of your ISA allowance
Pension plans are not receiving a good press at the moment but they remain one of the most tax efficient and beneficial investment products available. You should not ignore the benefits provided by a pension. Your ISA tax free allowance should also be used every year to ensure that you reach your investment goals. Even if you cannot save up to the maximum allowed, any money you invest is likely to earn reasonable levels of interest which will not be subject to tax. More advice here on investing your money

Research Methodology
Research Type : Qualitative Quantitative Data Collection Primary Data Secondary Data Sampling Method : : : Questionnaires Websites & Magazine Convenience Random Sampling

Data Universe

8535* (Account Holders, D-Mat and Trading accounts)

Sample Size

47**

* From Suresh Rathi Securities (Back Office) ** From www.raosoft.com (at 94% confidence level and 6% margin of error)

Data Analysis
What will be the most preferred investment option?

Preferred Investment

38% 62%

Giving Fixed Return Giving Return as per Market Conditions

Most Preferred Investment Option

16% 19% 6% 38% 21% Equities Fixed Deposit Gold Mutual fund Real Estate

What will be the age of retirement?

Age of Retirement
4% 28% 6% 16% 40-45 45-50 50-55 55-60 46% 60-65

What will be the position of children (on retirement)?

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Position of Children (on Retirement)

14% Settled /Married Dependent 86%

Do you want to review your existing financial position with the help and guidance of financial expert?
Review your Existing Financial Position

46%

Yes 54% No

After showing the importance of financial planning the graph shifted like this

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Prefer Guidance from Financial Expert

26% Yes No 74%

Findings and Conclusions

Largest number of investors (approx. 38%) still have faith in Fixed Deposits as a mode of investment. Other 62% people believe in those modes of investment which are giving return as per market conditions Gold is the least famous mode of investment because of o Current hiking prices o Investors feel that investment in stock market will give higher return than gold Mutual Funds, Real Estate and Equities are still popular mode of investment, with a market share of 18% to 20% each Age of retirement is another variable of Financial Planning, Approx. 25% people are planning to retire before 55 years of age. This indicates that they have to channel their income of 20-30 years for their remaining life. In this period they have to think of the major expenses like o Child's Higher Education

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o Child's Marriage o Care for Dependant Parents o Retirement Position of children is another variable of Financial Planning. Our survey says that 14% people will not be able to fulfill their liabilities before retirement. So special allocation of funds should be made so that they can arrange a specified some of money when needed. After showing the picture and importance of financial planning about 20% of people have shifted their view, and agreed that financial planning is the need of hour

Recommendations
1.

Brand awareness:

- Suresh Rathi Securities Pvt. Ltd. should create an

advertising campaign to build brand awareness about the services provided it. Under one roof it is providing all the options for financial planning. Awareness can be created by using the following methods a) Participation in Trade Fair (financial analysis in Appendix A) b) By putting canopy (financial analysis in Appendix B)

2.

Relationship with client

- Suresh Rathi Securities Pvt. Ltd. should work

for social relationship with its clients. For that company should send greeting cards on special occasions and invite selected clients to attend celebrations in the organization.

3.

Knowledge Camp Once in a month a knowledge camp (under the guidance

of department heads) must be organized because there are many misconceptions in the mind

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of investors, Srspl will provide a platform to its regular clients. This will not only increase the loyalty toward srspl but will also increase the business

A Financial Plan (On the Basis of Stages of Life)

Our needs and concerns change as we move through the financial stages of our lives. Here is a brief overview of those stages and some of the financial issues which we probably need to think about.

Ages 0-20 In this stage an individual is not mature enough; hence parents should proactively

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develop the habit of saving. To help them succeed in the remaining financial stages of their lives parents should teaching them sound financial habits such as asking them to prepare budget or opening their first saving account. Once they start earning money, open an individual retirement account to teach them how to invest for retirement. Ages 21-30 In this stage one should establish good credit. He must learn to use credit cards wisely and should whittle down any college debts as quickly as possible to free up money for investing and other financial needs. He should start saving at least ten to fifteen percent of your income for retirement. Time is on our side, and time is what makes money grew. Generate savings habits they'll pay off big the rest of your life. If possible do purchase a house on down payment. If one wants to marry, then he should do some pre-marriage financial planning. Clashing money management styles are a leading cause of divorce. One must buy life insurance, and if works, buy disability insurance also. People are depending financially on you now so be sure you have medical coverage for you and your family, even if it's provided at work. Draft a will, whether you are married or not. Ages 31-40 Now you may be into your second or third (and more expensive) home. Children are being born, getting older, getting more expensive. You're probably feeling financially pinched by now, even if you're earning more. However, don't suspend making contributions to your retirement fund, even if It comes down to a choice between funding college and funding retirement. Many financial planners recommend that retirement should take priority. A new SIP must be taken with a monthly deposit of Rs.500 which will make a huge some ready for your future. Kids can always find other methods to finance their way through college, like scholarships or loans. No one else is going to pay for your retirement. Update your will, if necessary, and periodically review your life insurance to make sure it is adequate, especially if you have children. 15

Ages 41-50

You're probably in the stride of your career. Keep socking away for retirement. Expenses may start to ease off in this stage as your children reach maturity. Beef up your retirement contributions to at least 15 percent, maybe 20 percent or more, of your income. This will probably be the last good stretch to really sock it away. Start getting serious about your vision of retirement, too. It will make a difference in how you plan. Don't get too conservative in your investing at this stage, even if you plan to retire soon. You've got a lot of years of living left and plenty of time to weather market ups and downs. Get serious about an estate plan. Ages 51-60 Study your EPF options to make sure you take full advantage of them. Be sure you don't have gaps in medical coverage. A rocking chair can get boring after a while so consider working part-time after retirement. Buy long-term care insurance if you haven't already. Carefully review retirement plan payout options. How you choose is immensely important. Absolutely have an estate plan. Investments may grow more conservative but should not be too conservative. With good health, you'll have many years left to live in retirement and you'll need your nest egg to stay ahead of inflation.

Ages 61 and beyond Hey, slow down and enjoy your success. You've earned it! Talk to your kids about your estate and guide them with a good financial plan. And yes dont forget to make your will (if not yet made).

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Bibliography
www.srspl.com www.moneycontrol.com www.equitymaster.com www.financialplanner.com www.investsmart.in

Annexure

Suresh Rathi Securities Pvt. Ltd.

Wealth Creator thru Systematic Investment Project Title: Need of Financial Plan Objective: To come across the various economic stages based on the need /life style of an individual

Questionnaire
Name:... Age: .Gender: ...... Occupation:.. Organization: Mobile : ........................E-mail: . Q 1 Do you have any Financial Goals likely to occur in the near future? 17

Child's Marriage Child's Higher Education Care for Dependant Parents Obtain / Pay off a Loan Buy or Sell an Investment Job Change or Promotion Retirement Any Other........................

Q 2 What is your Financial Planning Concerns? Retirement planning Investment planning Tax planning Education planning Insurance planning Estate planning Q.3 Which of the following investing option you prefer the most? Mutual fund Commodities Equities Fixed deposits Gold Real state Q.4 Do you prefer to take guidance from any financial expert? Yes No Q 5 What is your family income (per annum)? Below Rs.3,00,000 Rs. 3,00,000 - Rs 5,00,000 More than Rs 5,00,000 Q 6 Does any of your family member have a health problem? Yes No Q 7 Which investment do you prefer Giving fixed return Giving return as per the market conditions Q 8 Which plan have you opted for your retirement? Lump-sum withdrawal Periodic withdrawal payment

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Q 9 What will be the position of your children at the time of your retirement? Settled / Married Dependent Q.10 Do you have thorough knowledge of share market? Yes No Q.11 Do you think it is better to invest savings in share market than any other investment instrument? Yes No Cant say Q.12 Do you any health issue? Yes No Q.13 Would you like to review you existing finance arrangement? Yes No Q.14 Do you take Insurance as tax saving investment? Yes No Q.15 What do you expect out of your investment? Safety Liquidity Profitable returns Q.16 What age do you plan to retire? 40-45 45-50 50-55 55-60 60-65 Q 17 What minimum level of income will be needed (monthly) after retirement? Less than 10,000 10,000 to 20,000 More than 20,000 Q 18 Do you really think that the financial planning is the need of hour?

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 Yes No

Do you know
It would be difficult for you to reduce your current living standard even with no salary. Half of one's lifetime medical expenses may come in the last five years of life. Even the contingencies and accident are more as your age grows And definitely you would not desire to be dependent on your children

Q 19 Now do you think there is a need of financial planner? Yes No

Date

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