The economy of India has proven to be highly conducive in terms of domestic and foreign investments, in recent years. India Investments have been predicted as the propelling force towards the country's attainment of self-sustained growth by rapid industrialization. The most discussed forms of investments in India have been Foreign Direct Investment and Investments made by NRIs. Foreign Direct Investment (FDI) in India is one of the most talked about issues today. Rated among the top emerging nations, India's liberalization policies are paying rich dividends to the economy as a whole. Foreign Direct Investment (FDI) is defined as "investment made to acquire lasting interest in enterprises operating outside of the economy of the investor."
The FDI relationship consists of a parent enterprise and a foreign affiliate, which together form a Trans-national Corporation (TNC). The Indian economy is well suited to the small and medium American companies which may find it difficult to operate in the saturated western markets. With the vast technical and managerial skills available in India, Indian and American Small and Medium sized Enterprises (SMEs) can join hands both as complementary and supplementary partners to cater to the vast Indian market. India has emerged as a low cost base, attractive enough for multinationals to open shop in the country.
More than 100 of the Fortune 500 companies have a presence in India, as compared to only 33 in China. To sum up, best investment in India would be such that would create employment and bring in technology and not just investment that would replace the mammoth labor force of the country
Objectives of the Project
1. To do a comparative study about the project features offered by HDFC
Standard Life Insurance.
2. Mapping up of potential client for HDFC Standard Life Insurance.
3. To convince the client about the importance to invest in Insurance.
4. To understand the importance of client relationship with the company.
5. List the different kinds of investment an individual can sought in insurance.
Financial Planning has everything to do with wealth creation. Wealth enables you to achieve your financial goals; from your day to day goals, like meeting your basic expenses to distant goals, like having a financially secure retirement. Goals like buying a house, your children’s education and planning for your retirement need some serious financial planning. Financial planning is not just planning investments. Financial planning is creating, managing and enhancing wealth during your lifetime. Your aspirations and realities influences you’re planning. For instance, you might want to build an independent house but your finances may allow you to buy only a flat.
With financial planning, you can ensure that the right amount of money is available at the right time to be deployed in the right financial instruments to achieve future goals. Goals act like milestone that you hope to reach in life. Your financial resources play the most important role to help you achieve this. Milestones could range from buying a microwave in the next six months to ensuring a regular income when you retire 15 to 20 years from now. Identify your financial goals before you start planning your finances.
Chart out your roadmap only after you have your milestones identified.
· Put a date and monetary value against your goals.
· Classify these goals into three categories.
¨ Risk mitigation goals.
¨ Responsibilities and commitments.
¨ Aspirational goals.
Three-steps to Effective Planning
· Identify your financial needs.
· Convert them into goals and assign monetary to each.
· Make adequate investments over time to meet future needs and goals.
Planning your finances make you efficient with money management. You should allocate your earnings systematically to work towards specific goals. This will help you attain your goals in time. The same holds true for expenses. You will begin prioritizing expenses and try to get more value from what you spend, and also learn to avoid unnecessary expenses
Why Life Insurance?
Insurance is seen as a necessity to ensure a continuation of your family income, should the income provider pass away or become disable. You might think that insurance would be less important as the value of your investments and other assets grow. In fact, very often the opposite happens. You build an increasing tax liability as your wealth increases or as you build your assets. Insurance can become an important vehicle for reducing your income tax burden. Remember, in case of any eventuality, the bank gives you what you have saved – the insurance company gives you what you were meant to save. The primary purpose of life insurance is to provide for dependents on death of a primary wage earner, but life insurance can also serve as an outstanding tool transferring wealth to the next generation.
There are a variety of life insurance products specially structured to provide targeted benefits, including:
· Term endowment insurance.
· Whole life insurance.
· Children’s plan.
· Pension plan.
· Unit linked insurance plans.
Insurance can also be used effectively as an investment vehicle. Proper planning can help the drain taxation can have on your business or estate. Planning means you choose how your assets get distributed. It involves a step-by-step approach and ensures that you receive only expert advice. The result could be a plan customized just for you. You can use tax-advantage life insurance strategy to build a fund that grows on tax-sheltered basis. You can select the investments and decide how much and when to invest. At a time like retirement, this tax-sheltered fund can be useful to provide a tax-free income. On death, the insurance proceeds and the investment funds are paid to your beneficiary, tax-free.
Using insurance can be cost-effective way of creating a legacy. No wonder insurance is viewed as an important investment for retirees and those approaching retirement.
· Company’s intranet.