financial planning in baja allianz

8/6/2019 financial planning in baja allianz

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By

A.VinodRegd. No. 122510201


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MISSION:

As a responsible, customer focused market leader, we will strive tounderstand the insurance needs of the consumers and translate it intoaffordable products that deliver value for money.

VISION:

To be the best life insurance company in India

Investment Capabilities ofBALIC:

BALIC investment has the demonstrated capabilities of managing large funds

of over Rs.33,475 crores

Funds under management: Equity Rs 26,425 crores

Fixed Income Rs 7,050 crores

Experienced investment team of 18 professionals

BALIC emerged as the 4th largest Equity fund house


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` To have the necessary capital available in case of

unexpected loss of income or savings or significant

unforeseen outlays.

` To maximize return on investment at a reasonable Level

of Risk.

` To accumulate the necessary savings for significant

family needs.

` To have sufficient savings and income for retirement.

` To minimize taxes at death and distribute estateaccording to your personal wishes.


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` Financial planning should cover all areas of the clients financial

needs and should result in the achievement of each of the client's

goals. The scope of planning would usually include the following:

` Risk Management and Insurance Planning

` Investment and Planning

Issues

` Retirement Planning

` Tax Planning

` Estate Planning

` Cash Flow and Liability Management

` RelationshipManagement` Education Planning for kids and the family members


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` The process

` Step 1: Setting goals with the client

` Step 2: Gathering relevant information on the client

` Step 3: Analyzing the information

` Step 4: Constructing a financial plan

` Step 5: Implementing the strategies in the plan

` Step 6: Monitoring implementation and reviewing the

plan


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` There were 50 respondents selected randomly and questioned

on various aspects on future / integrated financial planning

people do and tried to gain their responses with an intention to

understand the peoples outlook towards having an effective

financial planning by investing in life insurance for themselves

and their family to meet all their future needs like children's

educational & marriage needs

` 1.Setting up of financial objectives

`financial planning

childrens education

post retirement plans

World tour


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2. Deciding upon a time horizon / goal of investments for

achieving the objectivesTime Horizon

long term goal 10-15 years

Medical Contigencies

un cheerished life goals

So it is very clear from the above that majority people again stay investedfor a longer term say for more than 10 years to meet their children's future

needs. Other provisions like medical contingencies, wealth & asset

creation take a back seat and people do not want to invest in these needs

for longer term


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3.Estimated investible surpluses available to meet their

financial objectives.

0

10

20

30

40

50

60

70

80

childrend'sfuture needs

future needs present needs

Investible surplus available

So it is very clear from the above that majority people do

not have the investible surpluses and hence not able to

invest for their future financial goals. Any investible

surplus goes to funding their children.


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` The company is keen to develop a sense of integrated financial planningapproach among its customers and safeguard them & their families frommost the risks thru different life insurance plans.

` It is also evident from the above study that people only want to invest andsecure their childrens future goals by investing directly in children or thruother plans.

` Least interest is shown towards investing plans for protection against medicalexigencies.

` It was also clear that majority people do not have a set approach towardssetting & defining financial objectives, deciding time horizons for achievingthese goals, periodically review their investments, and devise a plan to applythe returns.

` Most of the respondents only plan their investments post an advisors visit.Looking into family requirements, consulting experts for expertadvise, allocation of extra savings to various goals usually takes a back seat.Instead people rely on advise from form friends and colleagues for suchinvestments.


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` The company advisors should play a role of financial planners who would provide a breakup of investments into different plans to provide the customer a comprehensive protectioncum investment portfolio

` The advisors must advise the customers that they should follow the concept ofIncome Savings = Expenses to build a strong platform of financial planning.

` The most important aspect is the utilization of returns on maturity while setting

goals, diverting of goals judiciously after accomplishing a particular goal, controlling greedfor higher returns as there are mechanisms which give optimum returns.

` As it was found that investors preparing only Government companies for their officeinsurance so create trust in investors about private insurance companies by renderinggood services like proper claims, good response to clients and maintaining goodrelationship with them.

`

There is a need for promoting an integrated financial planning which includes priority focuson Investment basically for retirement planning, wealth creation, asset creation andchildrens education , protection of family, diseases and disabilities


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` Control your greed for more returns as it carries higher

risksYou will end up making more money.

` Teach Kids value of MoneyMoney saved is money Earned

` The solution according to investment experts is to set

different life goals first and then choose instruments thatserve those goals.

` The rule of thumb is to opt for safer avenues such as fixeddeposits and short term mutual fund schemes to achieve

immediate goals. One can opt for riskier instruments like

stocks, equity schemes of mutual funds to meet their longterm goals. And last but not the least an investor need not be

perturbed over short-term fluctuations in the market.


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financial planning in baja allianz

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