Pulse Labs Research & Technology Solutions

PROJECT REPORT: MARKET RESEARCH ON
FINANCIALPLANNING, RESEARCH PROCESSESS & COMPLIANCE

ADOPTED BY IFAS IN THEIR PRACTICE IN INDIA.
(AT Pulse Labs Research & Technology Solutions BANGALORE)
(Project submitted in partial fulfillment of the course requirement of post

graduate diploma in Management)
SUBMITTED BY EXTERNAL GUIDE INTERNAL GUIDE
Gairiaka Mukhopadhyay Manish Sarawagi Prof Dr. R.K.Vijay Sarathy
ROLL NO: PGDM 1411 Marketing Head, Director, DSBS
Co founder, Director,Pulse Lab
May-July, 2015
DayanandaSagar Business School
Shavige Malleswara Hills, Kumaraswamy Layout
Bangalore – 560078.
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GUIDE CERTIFICATE
This is to certify that the report titled “MARKET RESEARCH ON

FINANCIALPLANNING, RESEARCH PROCESSESS & COMPLIANCE ADOPTED BY
IFAS IN THEIR PRACTICE IN INDIA.” has been prepared under my guidance and
supervision. The report is submitted in partial fulfillment of the requirement for
the award of Post Graduate Diploma in Management (Approved by AICTE) by
Gairika Mukhopadhyay Reg.No. DSBSPGDM1411 and this report have not formed
a basis for the award of any degree or diploma in any university.
…………………….
Date …………………………………
Dr. Prof. R.K. Vijay Sarthy
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STUDENT DECLARATION
I hereby declare that the report/ study titled “MARKET RESEARCH ON

FINANCIALPLANNING, RESEARCH PROCESSESS & COMPLIANCE ADOPTED BY
IFAS IN THEIR PRACTICE IN INDIA.” prepared under the guidance of Dr. Prof
R.k.Vijay Sarthy submitted in partial fulfillment of the requirement for the award of
Post Graduates Diploma in Management (AICTE) in Dayanand Sager Business
School is my original work and has not been submitted for the award of any other
degree/ diploma in any university / institution.
………… ………………………….
Date: GAIRIKA MUKHOPADHYAY
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ACKNOWLEDGEMENT
“Acknowledgement is an art through which one can make a simple expression of

gratitude”.
I thank this opportunity to express my gratitude to all of them who helped me to

accomplish this challenging project at Pulse lab Bangalore.
I express my gratitude to my faculty guide Prof. Dr. R.K.Vijay Sarthy of

DAYANAND SAGAR BUSINESS SCHOOL for her valuable support and guidance
on completion of this project.
I am very thankful to Mr. Manish Sarawagi , Marketing Head at Pulse Lab

Bangalore for his everlasting support and guidance in helping me acquiring a
new field of knowledge.
A Special appreciative “Thank You” in accorded to all staff of Pulse Lab

Bangalore for their positive support.
Last but not the least; I thank my Family for their constant support and
encouragement.
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Content:
chapter page
no name no
1 Introduction 8-15
2 Research Design 16-24
3 Profile of Respondence 25-26
4 Data Analysis 27-101
102-
5 findings and recommendation 103
104-
6 conclusion,referances, questionnaire 110
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List of Tables
Table
no Name Page no
what is the percentage of your client based on who will be inclined to 32-31
1 receive their financial
what percentage of your clients has undergone a financial planning
2 process? 34-36
what according to you are the difficulties in acquiring a client for financial
3 planning? 37-39
what are the hurdles faced by you in the financial planning process(rank 1-
4 3) 42-43
how much/many time and visit is usually needed to complete a
5 comprehensive financial plan? 46-48
6 what would be the report structure and presentation mode 51-52
7 How do you price your planning proposition? What are the charges 55-57
8 Upfront fees? Or generating profit 57-60
what tool do you use for making financial plan for your clients? And please
9 tell us why? 64-66
10 which riskprofiling tools you use to do risk profiling for your clients? 70-74
11 how do you compute the risk tolerance for your client 79
Which of the following helps you to form an investment perspective for your
12 clients? 81-82
What is the research methodology you adopt to do asset allocation for your
13 clients? 85-86
14 How do you maintain the risk profiler for your clients? 89-90
How do you maintain KYC documents and investment advices for your
15 clients? 92-93
What, according to you are the important challenges faced by an IFA today?
16 Please rank 95
17 Chi Square Data 99
18 Chi Square calculation table 99
19 Two way Anova data 101
20 Two way Anova Calculation Table 101
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List of diagrams
Diagrams
no Name Pages
1 4PS 32
pie graph showing percentage inclined to Financial
2 Planning 33
pie graph showing percentage undergone with Financial
3 Planning 36
4 bar graph showing the difficulties of acquiring a client 40
5 pie graph for convincing client 44
6 pie graph for correlating data 45
7 pie of getting fees 45
8 Showing percentage of visit to clients 49
pie diagram showing the percentages of using mode of
9 presentation 54
10 bar graph showing revenue generation 61
11 pie graph representing upfront fees 62
12 line graph showing the rate of earning funds or profit 62
13 Usage of Tools 69
14 risk profile 75
15 bar graph for risk profiling tool 76
16 pie graph for calculation of risk tolerance 79
17 diagram on investment perspective 84
18 pie chart for asset allocation 88
19 maintaining risk profile 91
20 maintaining KYC 94
21 Limited access to special or exclusive products 95
22 Geographical constraints 96
23 Over dependence on transaction based income 96
Maintenance of Efficient & cost effective back office
24 support 96
25 Client Acquisition & Service 97
26 Volatile Markets & Irrational client behavior 97
27 Access to quality research on products 97
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CHAPTER1: INTRODUCTION
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CHAPTER 1: INTRODUCTION
1.1 Topic: A market study on use of technology in IFA in the

businesses
Name of the Company: Pulse Lab
Name of the software
• “Knowledge – Edge – Learn – Earn” (An integrated and end to end

advisory tool for decision making, which encompasses financial planning,
asset allocation, fund analytics and work management)
1.2 The Market Pulse:

Financial Advisory Profession in India is moving to its next level. The transition is as
much challenging as exciting. Dwindling commissions has forced Financial Advisors to
look at alternate revenue models. Regulatory Oscillations, Irrational Client Behaviour,
Volatile Markets are adding to their woes. Technology solutions for business
enhancement and advisory look like a farfetched dream.
1.3 The Business Pulse…
Pulse Labs as a Business House cater to the B2B segment in the Financial Services space.
We focus on creating solutions cemented with Technology, Research & Analytics, which are
best suited for the GenNext Advisory Firm.
Knowledge – Edge – Learn – Earn.

These 4 words, modelled as our maiden offering mirrors Òur Pulse’.
1.4 Market research is any organized effort to gather information about target
markets or customers. It is a very important component of business strategy The term is
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commonly interchanged with marketing research; however, expert practitioners may
wish to draw a distinction, in that marketing research is concerned
specifically about marketing processes, while market research is concerned specifically
with markets.[2]
Market research is a key factor in maintaining competitiveness over competitors. Market
research provides important information to identify and analyze the market need, market
size and competition.
Market research, which includes social and opinion research, is the systematic
gathering and interpretation of information about individuals or organizations using
statistical and analytical methods and techniques of the applied social sciences to gain
insight or support decision making.
Possibilities:
 Identify who are using new financial planning technologies in the market recently
and what are the tools like Pulse Lab
Fiserv, OmnimaxOpti- PlanMicrosoft Excel etc.
 A market study on Financial Planning, Research Processes& Compliance
adopted by IFAs in their practice
1.5 About Pulse lab:
We strive to be:
`Èstablished as a Competent, Respected
and an Innovative enterprise in the financial advisory space’’
In the process, we will always be:
 Truly independent and product agnostic.
 Thought leaders and adaptive in finance and technology.
Demonstrating strategic value in our engagements and solution.
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Our Positioning:
Advisory
Execution
CRM
Reporting Pulse
Labs
Compliance
Marketing Platform FA
Reality Check – FA Industry:
 Financial advisory profession in India is moving up its value chain from

transaction mode to advisory.
 Revenue models are undergoing change from commissions only to fee +
commissions.
 Regulatory landscape becoming more stringent with increased focus on
compliance.
 Client expectations and awareness have grown manifold in the last few years.
 Technology use for Advisory and allied activities is below par in comparison to
the developed financial markets.
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Pulse Solutions:
 Products are cemented with technology, research and analytics aimed at the
advisory phase.
 Integrated and single window solution for the Advisory phase.
 Are best suited for the gen-next advisory firm, which is driven by value addition
as its core focus.
FEATURES IN SOFTWARE:
• Financial Planner – how it works
 An offline module which allows you to enter data and generate reports without
being connected.
 Global assumptions (inflation, ROI etc.) can be configured by you, which would
be applicable across clientele and reports.
 Independent and item wise reports can be generated based on the data input.
 Assumptions and iterations can be made at a client level also, before report
generation.
 Seamless retrieval and editing of data and reports for on-going reviews and
tracking progress.
• Monte Carlo simulations for retirement and other financial goals.
• What if scenario analysis with corresponding asset allocation strategy and cash
flow tables
 for all financial goals.
• Interest rate sensitivity analysis, loan throttling, and goal programming.
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• Income, expenditure and net-worth projections till retirement.
• Insurance analysis based on HLV and survivor needs and investment analysis
based on risk profile and financial goals.
• Accommodates multiple inflation rates for different time periods and expenditure
heads.
• “For each goal there are four cash flow statements
• There is a summary of goals report ( putting all goals together)
• The cash flow statement is comprised of Goals .
Risk Profiler – how it works

• Provision to give customised and detailed advice exists in the Financial Plan
output.
• Preliminary advice based on the classification would be provided by the risk
profiling tool.
• Separated scores and classification of Risk Tolerance and Risk Capacity
• Intuitive and Probing questions for deeper insights and interpretation of
clients’perception towards Risk.
• Designed as measure Willingness to take risk and Ability to take Risk.
Fund Analyzer – key differentiators

• An online module which provides fund details to the FAs.
• Categorized between quantitative, qualitative and analytical segments.
• Data crunching and reports available at scheme, AMC and industry level
• All reports would be white labelled and available for download in excel and PDF.
• Drill down of funds based on numerous qualitative and quantitative conditions.

• Portfolio fact sheet and model portfolio back testing.
• Holdings trend, correlation and quartile analysis.
• Attribution analysis and security movements.
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Asset Allocator – key differentiators
• The only dynamic asset allocation strategy based on fundamental and technical
attributes.
• Usage of more than 25000 data points for the algorithm optimization.
• Back-testing and benchmarking of the strategy since 2001.
• Flexibility to plug in funds of your choice for performance analysis.
• Customized for each risk profile.
• Work Management – key differentiators
• Simple, but efficient interface for recording your meets, minutes and tasks with
clients.
• Prioritization of tasks based on criticality and time factors, to help you do what is
needed for the hour.
• An intuitive calendar for effective planning.
• Your entire client engagement history at one click.
• Document management system with easy storage and retrieval process.
PULSE LAB providing Financial Software withmore than funds related

information client reporting tool, and broader for GenNext advisersbenefits .
1.6 Scope of study:

Finance is a framework and it comprises with capital investments, expenses,
profits, stocks, shares, insurance etc. So Technology is a broad concept that
allows for a better or automated solution. Manually managing finance will be time
consuming. Manual entry and managing information, calculation for creating
annual finance report for client are not always giving accuracy. The purpose of
doing this project is to identify to identify problems in IFA business. First problem
in this business is to convincing a client for financial planning. Because there is
lack of awareness’s about finance and their proper planning. When we are
buying a product from market we thoroughly studying about the product. Like
same way Finance is a valuable product and we had to save it for our future to
achieve our goals. In general people have some common goals like education,
child education, retirement plans, health care, marriage, business, foreign trips,
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property etc. So we need to plan our future by proper financial planning.
Financial planners are doing their job by gathering more clients, doing workshop
to increase the awareness in the market. So Pulse lab, Opti-plan, omnimaxthis
software developers are providing tools to the Financial planners to make IFA
businesses more technical in this volatile market in India. In my research I
identified two major factors like getting clients and data are the major hurdles in
IFA businesses. So there is a difference in between expected clients and
observed clients in the market in IFA businesses. Another is CFPs or certified
business planners are still hesitating to accept technologies in their businesses
because they are not getting 100% success to convince clients. The tools are
featured to impress more clients in the market. This study will help to find out the
real problems in IFA businesses in India and it will give more ideas to the IT
tools, software developers as well as financial planners to rectify the problems
and create a good relation and trust with the clients in the market.
Primary Objective
A study on use of technology By IFA in the Business.
Secondary Objectives
To Study how there revenue is based on financial plan.
To study which tools they use to prepare financial plan for their client
To study do financial planner have their Website Running?
To study the various challenges faced by IFAs in Advisory Business.
To study there expenses in various technology platform
To study are they effective in accruing client through digital media.
To Study and analyze various tools used by FAs for portfolio management
To Study and analyze various tools used by FAs for client relationship management &
Reporting
To study the Value Add / Product / Research Support for IFA ‘s
To Study the Back office/ Logistics model / Expense Structure of IFA Business .
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CHAPTER 2 : RESEARCH DESIGN
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CHAPTER 2: RESEARCH DESIGN
2.1 Research Methodology:
The research methodology is the systematic, theoretical analysis of the procedures

applied to a field of study (Kothari, 2004). It involves procedures of describing,
explaining and predicting phenomena so as to solve a problem; it is the ‘hows’; the
process or techniques of conducting research. A Methodology does not set out to
provide solutions but offers the theoretical underpinning for understanding which
procedure, set of procedures can be applied to a specific case.
Research methodology encompasses concepts such as research designs, target

population, sample size and sampling procedure, data collection instruments and data
analysis procedure.
A research design is the "blue print" of the study. The design of a study defines the
study type (descriptive, correlational, semi-experimental, experimental, review, meta-
analytic) and sub-type (e.g., descriptive-longitudinal case study), research
question, hypotheses, independent and dependent variables, experimental design, and,
if applicable, data collection methods and a statistical analysis plan. Research design is
the framework that has been created to seek answers to research questions.
A detailed outline of how an investigation will take place. A research design will typically
include how data is to be collected, what instruments will be employed, how the
instruments will be used and the intended means for analyzing data collected.
In a good research design, all the components with each other or go together with
each other in a coherent manner. The theoretical and conceptual framework must with
the research goals and purposes. Likewise, the data collection strategy must fit with the
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research purposes, conceptual and theoretical framework and approach to data
analysis.
2.2 The need for research design is as follows:

 It reduces inaccuracy;
 Helps to get maximum efficiency and reliability;
 Eliminates bias and marginal errors;
 Minimizes wastage of time;
 Helpful for collecting research materials;
 Helpful for testing of hypothesis;
 Gives an idea regarding the type of resources required in terms of money, manpower, A
time, and efforts;
 Provides an overview to other experts;
 Guides the research in the right direction.
Research process is a total process to identify a problem and get its solution at
the end.
Steps of research methodology:

1) Define problem
2) Review literature
3) Formulate hypothesis
4) Research design with sampling
5) Collect data
6) Analysis
7) Interpretation
2.3Define problem:
Identifying the research problem or locate the area of interest for study. Some research
studies are based on laboratory; library and some are based on field study. First step
problem may be generated in a broad sense. After selecting area of analysis the next
step is to study the case history of that particular area and try to find out all problems
and previous research reports. Always try to discuss with the people who worked on it
and get more experiences from them.
In my internship first day I thoroughly studied about the company PULSE LAB and
about their works. I studied about what is sebi, mutual fund, about investment in market,
what is the current market situation etc. I searched internet to gather more information
and also learnt what is finance, needs of financial, advisory business, IFA, CFP different
kinds of terms which is actually important for my project.
After discussing and studying I formulated some problems in my area of interest in
research study.
Finance is a framework and it comprises with capital investments, expenses, profits,
stocks, shares, insurance etc. So Technology is a broad concept that allows for a better
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or automated solution. Manually managing finance will be time consuming. Manual
entry
And managing information, calculation for creating annual finance report for client is not
always giving accuracy. The purpose of doing this project is to identify how much IFA
companies using the technologies for financial planning, goal programming for their
clients along with the present market status. This project will focus on percentages of
accepting technologies for “financial planning, asset allocation, fund analytics and work
management” and how does it create differences from others who are using normal
methodologies in the market. Different clients have different expectation. Biggest
problem or challenge in IFA businesses in India is convincing a client for financial
planning, because the awareness about finance and its planning is very low in India.
Finance can be a product and financial planner can help their customers to use this
product properly to achieve the future goals.
Another difficulty is to get fees from the client. Next is how an IFA is generating profit to
run the business in this volatile market. Another problem is what kind of challenges are
facing by an IFA in this market.
Financial Advisory Profession in India is moving to its next level. The transition is as
much challenging as exciting. Dwindling commissions has forced Financial Advisors to
look at alternate revenue models. Regulatory Oscillations, Irrational Client Behaviour,
Volatile Markets are adding to their woes. Technology solutions for business
enhancement and advisory look like a farfetched dream.
2.4Review literature:
Next step is review literature. It is a step in research process. At this step students or
researcher should submit an abstract or a synopsis or an overview about the project
report. At this stage library work is very important. Journals, case studies, newspapers
all are very important. We need to do literature survey.
A literature review discusses published information in a particular subject area,
and sometimes information in a particular subject area within a certain time period.
A literature review can be just a simple summary of the sources, but it usually has an
organizational pattern and combines both summary and synthesis. A summary is a
recap of the important information of the source, but a synthesis is a re-organization, or
a reshuffling, of that information. It might give a new interpretation of old material or
combine new with old interpretations. Or it might trace the intellectual progression of the
field, including major debates. And depending on the situation, the literature review may
evaluate the sources and advise the reader on the most pertinent or relevant. A good
library will be a great help in this case. In my project I studied all the information about
the company, about finance and financial advisory businesses in India and Learn about
the software “KNOWLEDGE” in pulse lab and understand how it will give more benefit
to clients from other technologies in the market.
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2.5Formulate hypothesis:
A hypothesis is an educated prediction that can be tested.

A hypothesis is a specific, testable prediction. It describes in concrete terms what you
expect will happen in a certain circumstance.
The Purpose of a Hypothesis

A hypothesis is used in an experiment to define the relationship between two variables.
The purpose of a hypothesis is to find the answer to a question - a formalized
hypothesis will force us to think about what results we should look for in an experiment.
The first variable is called the independent variable. This is the part of the experiment
that can be changed and tested. The independent variable happens first and can be
considered the 'cause' of any changes in the outcome. The outcome is called
the dependent variable. The independent variable in our previous example is not
studying for a test. The dependent variable that you are using to measure outcome is
your test score.
It is important to remember that your hypothesis must be testable. That is, you can
perform a test of how two variables might be related. This is what you are doing in a real
experiment - you are testing variables. It must also be measurable. If you cannot
measure the results, then the information does not help you explain why a particular
outcome occurred. Let's use the previous example again to illustrate these ideas. The
hypothesis is testable because you will receive a score on your test performance. It is
measurable because you can compare test scores received when you did study and
test scores received when you did not study.
A hypothesis should always:
 explain what you expect to happen

 be clear and understandable
 be testable
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 be measurable
 contain an independent and dependent variable
Working hypothesis can be created by
 discussing the available information with colleagues

 read journals, old case history on the related area of study
 gather information and study thoroughly
 Identify the present problems
 Examine the available data
 Compare the present data with the past data
 Assumed a solution by prior thinking of the subject to create a hypothesis
So another important aspect of a hypothesis is that it should be based on research.

Remember that the purpose of a hypothesis is to find the answer to a question.
The first thing we should do if we want to answer a question is to find as much

information on the topic as we can. Before we come up with a specific hypothesis,
spend some time doing research. Then, start thinking of questions we still have. After
thoroughly researching our question, we should have an educated guess about how
things work. This guess about the answer to our question is where our hypothesis
comes from.
Let's imagine that we want to know why the leaves on the tree in our front yard change
colour in the fall. First, we would research this phenomenon. We observe what we see
happen and read about the subject. We discover that the colour change happens when
the temperature cools. What question does this information make you ask?
We come up with the following question: Does temperature cause the leaves to change
colour on the tree in my front yard? Next, we ask ourselves if this can be tested. If it can
be tested, we will write a hypothesis that states what we expect to find. Our hypothesis
could be, 'If lower temperatures cause leaves to change colour, and the temperature
surrounding a tree is decreased, then the leaves will change colour'.
In my research I can generate the hypothesis like
 The percentage of receptivity and viability of financial
Planning among clients in market, what is the observed value and what is the
actual value.
 how IFAs generating revenue model of the financial planning practice within a
competitive market
 New tools, software create any differences in IFA business
 Challenges creating any advantages or disadvantages for the IFAs in the
competitive market.
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2.6Research design with sampling:
Next stage is research design means Research design can be thought of as

the structure of research
The design is the structure of any scientific work. It gives direction and
systematizes the research. Different types of research designs have
different advantages and disadvantages.
There are two main approaches to a research problem:
 Quantitative Research
 Qualitative Research
 In a nutshell, quantitative research generates numerical data or information
that can be converted into numbers. Qualitative Research on the other
hand generates non-numerical data.
 The primary aim of a Qualitative Research is to provide a complete, detailed
description of the research topic. It is usually more exploratory in nature.
 Quantitative Research on the other hand focuses more in counting and

classifying features and constructing statistical models and figures to explain
what is observed.
My research was based on qualitative quantitative data.
There are mainly four purposes for research design like exploratory research is defined
as the initial research into a hypothetical or theoretical idea. This is where a researcher
has an idea or has observed something and seeks to understand more about it.
The next step is descriptive research, defined as attempts to explore and
explain while providing additional information about a topic.
Diagnosed research where decision is prescribed.
Another research design is experimental research design.
What is sampling: Sampling is the process of selecting units (e.g., people,

organizations) from a population of interest so that by studying the sample we
may fairly generalize our results back to the population from which they were
chosen. Let's begin by covering some of the key terms in sampling like
"population" and "sampling frame." Then, because some types of sampling rely
upon quantitative models, we'll talk about some of the statistical terms used in
sampling. Finally, we'll discuss the major distinction
between probability and Nonprobability sampling methods and work through the
major types in each.
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A probability sampling method is any method of sampling that utilizes some
form of random selection. In order to have a random selection method, you must
set up some process or procedure that assures that the different units in your
population have equal probabilities of being chosen.
Types of Probability Samples:
Simple Random, Systematic Random, Stratified Random, Random Cluster
Complex Multi-stage Random (various kinds), Stratified Cluster Simple Random
Sample
Non-probability sampling is a sampling technique where the samples are

gathered in a process that does not give all the individuals in the
population equal chances of being selected.
For my research purpose I had chosen probable sampling where I got the
name of many people and location. So I divided the total number of people
according to their location and chosen them so they can be selected
equally according to location. I chose the stratified random sampling
method for collecting data.
2.7Data collection:
Data can be collected either by survey or by available information.
I started my data collection with the help of questionnaire prepared according to the
clients and business requirements. A questionnaire is a research instrument
consisting of a series of questions and other prompts for the purpose of gathering
information from respondents.
First I divided the zones and then I started taking interviews either by phone or by
mailing questionnaires or by taking personal interviews and collected all the data.
2.8Data analysis:
After collecting data I entered the data into excel sheet and grouped them for analysis
and calculation. Analysis of data is a process of inspecting, cleaning, transforming,
and modeling data with the goal of discovering useful information, suggesting
conclusions, and supporting decision-making. Data analysis has multiple facets and
approaches, encompassing diverse techniques under a variety of names, in different
business, science, and social science domains.
Data mining is a particular data analysis technique that focuses on modeling and
knowledge discovery for predictive rather than purely descriptive purposes. Business
intelligence covers data analysis that relies heavily on aggregation, focusing on
business information. In statistical applications, some people divide data analysis
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into statistics, exploratory(EDA), and confirmatory data analysis (CDA). EDA focuses on
discovering new features in the data and CDA on confirming or falsifying existing
hypotheses. Predictive analytics focuses on application of statistical models for
predictive forecasting or classification, while text analytics applies statistical, linguistic,
and structural techniques to extract and classify information from textual sources, a
species of unstructured data. All are varieties of data analysis.
Data integration is a precursor to data analysis, and data analysis is closely linked
to data visualization and data dissemination. The term data analysis is sometimes used
as a synonym for data modelling.
2.9Interpretation:I analysed my data by graphical representation like bar graphs, pie
graph toidentify the problems with suitable solution.
2.10 MY RESEARCH DESIGN

Read the previous reports thoroughly
in PULSE LAB
Internet surfing to gather more information

to understand the basic differences between
using manual methods and technologies
for financial planning.
Learn about the software “KNOWELDGE” in pulse lab and understand how it will give
more benefit to clients from other technologies in the market.
Prepare a questionnaire based on clients and present market
Meet with clients/ telephonic interviews/Emails.
Fill up the questionnaires on regular basis.
After filling up all the questionnaires create a database on excel
for further analysis.
Put hypothetical reviews during analysis
Interpretation of the database with graphical representation
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Give observation,Conclusion with references.
CHAPTER 3: PROFILE OF RESPONDENT
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3.0 PROFILE OF RESPONDENT:
People whom I met during my internship are all certified financial planners called CFP.
They are doing financial planning for people, companies etc. These CFPs are analyzing
customers’ goals, calculating risk, solving the problems during financial planning. CFPS
are doing their businesses based on their knowledge and experiences. Now a days so
many tools, software are introduced in market and research and development
companies are trying to convince these CFPS to implement the new techniques to their
business to get more clients in market.
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CHAPTER 4 : DATA ANALYSIS
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4.1Analysis
A market analysis studies the attractiveness and the dynamics of a
special market within a special industry. Through all of these analyses the strengths,
weaknesses, opportunities and threats (SWOT) of a company can be identified. Finally,
with the help of a SWOT analysis, adequate business strategies of a company will be
defined.[1] The market analysis is also known as a documented investigation of a market
that is used to inform a firm's planning activities, particularly around decisions
of inventory, purchase, work force expansion/contraction, facility expansion, purchases
of capital equipment, promotional activities, and many other aspects of a company.
Primary objective of doing this analysis to identify who are using new technologies in
financial planning in the market recently and what are the tools like Pulse Lab Fiserv,
OmnimaxOpti- PlanMicrosoft Excel etc.
A market study on Financial Planning, Research Processes& Compliance adopted by

IFAs in their practice.For visiting many people in IFA industry I prepared a
questionnaire. Questions are based on Clients, market challenges, technology, and
charges to identify the pulse of the market.
People who are involved in IFA businesses are all certified financial planner. This
project location was Bangalore. I visited their offices and met them and took interview to
know the real situation of this volatile market. I started my analysis with the help of
Pulse Lab Bangalorewho is working as a Business House cater to the B2B segment in
the Financial Services space. We focus on creating solutions cemented with
Technology, Research & Analytics, which are best suited for the GenNext Advisory
Firm.
These 4 words, modeled as our maiden offering mirrors Òur Pulse’.
My first target was to identify the client psychology which is very important to
understand the nerve of the market and why these people are going to an IFA for
financial planning, who are really understanding the importance of financial planning,
how a CFP is convincing their clients for financial planning etc.
28
I preapared the questions according to the requirements.By visiting CFP in this market I
understand that some are still usuing old manual methodology and some are usuing
technology. So I need to identify this percentage and discriminate which is flexible for a
client to do business with a CFP.
Next Analysis to identify the hurdles or challenges facing by an IFA today by doing their
business in this volatile market.
At the end I need to calculate and compare the hypothesis in between my expected
problems and observer or real problem facing by IFA s and Clients during business and
what are the alternative solutions may reduce these kinds of problems.
4.2 Q1. What is the percentage of your client based on who will be
inclined to receive their financial report?
When I started my internship I came to the meaning of financial planning and its
importance in life.
Finance is a field that deals with the allocation of assets and liabilities over time under
conditions of certainty and uncertainty. Finance can also be defined as the science of
money management. A key point in finance is the time value of money, which states
that purchasing power of one unit of currency can vary over time. Finance aims to price
assets based on their risk level and their expected rate of return. Finance can be broken
into three different sub-categories: public, corporate finance and personal finance. IFA
Business in current market deals finance with their clients as a product.IFA s target is to
identify the goals of customers in market for their entire life and help them to get
success in achieving their goals through a proper planning of their own finance.
Certified financial planners explaining that like other things like food , home finance is
also a necessary commodity and people need to use their own finance very calculative
to achieve other commodities. They need to prepare a proper portfolio to get success in
their goals.
By taking interviews of CFPs I came to know there are three types of clients, one who
understand the importance of financial planning in market and second who understand
but do not want to invest their money and time and last category is those who don’t
understand the importance of the financial planning in real life. I put the data in a table
for calculation.
29
TABLE 1: what is the percentage of your client based on who will be inclined to
receive their financial report.
10%- 20%- 30%-

name 0-10% 20% 30% 50% > 50%
B.Srinivasan >50%
Mr. Prithvi Ranjan Reddy > 50%
30%-
Mineshwar Rao 50%
md yusuf gaffoor > 50%
30%-
R.S.N PRASANNA 50%
MANJUNATH > 50%

JAYESH R DOSHI 80%
MS. NITHA 0-10%
Naveen Rego 50%
30%-
Pradeep Hattangadi 50%
p.n venkatesh warlu 0-10%
Neeti Trivedi > 50%
30%-
venkitesh.S. 50%
Ajeet Pandey 100%
30%-
amish chadda 50%
Chetan Chandaliya >50%
B.V.Vijaya 100%
Hemant Kumar Bhatnagar 100%
I.S.Phani 60%
Leena Lobo >50%
K.N.Sridharan >50%
20%-
Latha Thiruganam 30%
sweta+nehal c 0-10%
karur Nagaraja 10-20%
k g suresh babu 0-10%
30
P. Ganesh 30-50%
Vijay Upendra >50%
Krishnappa .C >50%
Kavitha. V >50%
deepak jain 80%
raksha . S 30-50%
M.R.Adyanthaya 30-50%
satish
ramakrishna kolluri 90%
ramesh hedge 100%
Neetha Mathur >50%
Jeershibkumar(naniah) 30-50%
Sudhendra Lakshman Rao 60%
nagaraja siringeri >50%
narendra babu h v 20-30%
Mohan.A 60%
Karan Boal 100%
Kartikeyan 30-50%
Geetha 10-20%
Mahendra Nayak M 0-10%
yuvraja 80%
Krishna Mihan 0-10%
Ravi Kumar T V 60%
Narayan Kayapati >50%
s. Anand Murty >50%
Satyanarawan Pawar 95%
didn’t tell 100%
mrs punita bs 10-20%
kksuresha 0-10%
Kiran rao
Divya Jain. 0-10%
MR Murli 20-30%
Rajesh Kumar Gupta 70%
Guru Sail
Rajesh 100%
Varsha Sujith 88%
Saurav Bansal 100%
R Pushpalatha >50%
Chandra Shekhar Reddy Tumma
Preethi 100%
Treena Roy 30-50%
31
Sashidhar Peddi
Sunil Dutta 0-10%
Ashoke 20%
santosh 30-50%
dayanand aski >50%
My first question meaning is people who wants to understand the financial planning and
want to do a planning with a CFA in this competitive market that means the percentage
of people who are inclined to receive a financial report from a CFP.
Financial planning is, fundamentally, the process of establishing a budget based on

information about expenses and income. Assets and liabilities are also important
consideration in the process, particularly for organizations. Executing that budget,
tracking progress, and documenting results can also be considered part of financial
planning.
Marketing is a business function that identifies consumer needs, determines

Target markets and applies products and services to serve these markets. It also
involves promoting such products and services within the marketplace.
Marketing is integral to the success of a business, large or small, with its

primary focus on quality, consumer value and customer satisfaction. A strategy
commonly utilized is the "Marketing Mix". This tool is made up of four variables
Known as the "Four P's" of marketing. The marketing mix blends these variables
together to produce the results it wants to achieve in its specific target market.
The following describes the four P's of marketing: product, place price promotion.
Here Product isfinance and its related services provided by the IFA business advisors.
Place means distribution or methods of getting the products to the customers.
Price means concerns the amount of money that customers must pay in order to
purchase your products.
Promotion refers to the act of communicating the benefits and value of your product to
consumers.
32
FIG No 1
According to the first question calculation will be based on percentage of the clients who
are inclined to receive a financial planning from an IFA.
0-10%
10%-20%
20%-30%
30%-50%
> 50%
FIG no 2: Percentage who are inclined to receive financial report
This above pie graph is denoting the percentage of people who are willing to take a
financial report from a CFP. I covered almost 73 CFP in mainly south Bangalore part
and after interviewing them I can draw this pie diagram to explain my opinion. Some
CFP personally visit their clients and some doing workshop. At the time of meeting
maximum people willing to go for a financial planning and they all register for that. By
that pie diagram we can see that More than 50%level is 57% people want to go for a
financial planning. I covered from Banasankari to Indiranagar ,JP nagar to jayanagar,
Basangudi and met IFA business people who are actually dealing with the client in this
market and from their various answers and from the above pie chart we can conclude
that 50-100% are immediately ready for register with a CFP.
33
TABLE 2: what percentage of your clients has undergone a financial planning
process?
10%- 20%- 30%-

name 0-10% 20% 30% 50% above 50%
30%-
B.Srinivasan 50%
20%-
Mr. Prithvi Ranjan Reddy 30%
10%-
Mineshwar Rao 20%
10%-
md yusuf gaffoor 20%
10%- 20%-
R.S.N PRASANNA 20% 30%
30%-
MANJUNATH 50%
JAYESH R DOSHI 80%
MS. NITHA 0-10%
20%-
Naveen Rego 30%
Pradeep Hattangadi
10%-
p.n venkatesh warlu 20%
10%-
Neeti Trivedi 20%
10%-
venkitesh.S. 20%
20%-
Ajeet Pandey 30%
amish chadda 100%
Chetan Chandaliya 10%-
34
20%
10%-
B.V.Vijaya 20%
10%-
Hemant Kumar Bhatnagar 20%
30%-
I.S.Phani 50%
30%-
Leena Lobo 50%
K.N.Sridharan 90%
Latha Thiruganam 0-10%
sweta+nehal c 0-10%
karur Nagaraja 10-20%
k g suresh babu 0-10%
30%-
P. Ganesh 50%
30%-
Vijay Upendra 50%
Krishnappa .C
Kavitha. V 20-30%
deepak jain 10-20%
raksha . S 10-20%
30%-
M.R.Adyanthaya 50%
satish 10-20%
ramakrishna kolluri 10-20%
ramesh hedge 10-20%
Neetha Mathur >50%
Jeershibkumar(naniah) 30-50%
Sudhendra Lakshman Rao 60%
nagaraja siringeri >50%
narendra babu h v 20-30%
Mohan.A 0-10%
Karan Boal 74%
Kartikeyan 30-50%
Geetha 10-20%
Mahendra Nayak M 0-10%
yuvraja 10-20%
Krishna Mihan 0-10%
Ravi Kumar T V 0-10%
Narayan Kayapati 30-50%
s. Anand Murty 20-30%
Satyanarawan Pawar 95%
35
didn’t tell 100%
mrs punita bs 10-20%
kksuresha 20-30%
Kiran rao
Divya Jain. 20-30%
MR Murli 20-30%
Rajesh Kumar Gupta 10-20%
Guru Sail 20-30%
Rajesh 20-30%
Varsha Sujith 10-20%
Saurav Bansal 88%
R Pushpalatha 30-50%
Chandra Shekhar Reddy Tumma 10-20%
Preethi 100%
Treena Roy 10-20%
Sunil Dutta 10-20%
Ashoke 10-20%
santosh
dayanand aski >50%
4.3 Q2 what percentage of your clients has undergone a financial

planning process
This question can explain the real market situation. Communicate with a new client and
convincing his or her for a new product is the most important step for any business man.
I asked this question on B2C perspective and maximum CFP replied that there is a gap
between expected customers and actual numbers of customers in this volatile market
situation. Based on gathered data I draw a pie graph to explain the real situation of the
market.
36
0-10%
10%-20%
20%-30%
30%-50%
above 50%
FIG 3 percentages of your clients has undergone a financial planning process
First question client expectation was more than 50%. But in next analysis we come to
know actually maximum 10-20%(36%) people are undergoing a financial planning
process. Here in this pie graph lowest slab is above 50% (12%) and second highest
slab is 20-30%. So it means there is a difference in between the expected clients and
the actual number of clients in the market situation.
TABLE 3: what according to you are the difficulties in acquiring a client for
financial planning?
Importance of financial
name convincing a client plan othes
NO new clients for last 7
B.Srinivasan yres
Mr. Prithvi Ranjan Reddy plan cost factor
Mineshwar Rao convincing a client
md yusuf gaffoor client come we explain
R.S.N PRASANNA convincing a client
MANJUNATH plan
JAYESH R DOSHI na
MS. NITHA plan
Naveen Rego convincing a client
Pradeep Hattangadi convincing a client
p.n venkatesh warlu convincing a client
37
Neeti Trivedi plan
venkitesh.S. convincing a client plan
Ajeet Pandey convincing a client plan
amish chadda plan
Chetan Chandaliya na
B.V.Vijaya plan
Hemant Kumar Bhatnagar convincing a client
I.S.Phani plan
Leena Lobo plan
K.N.Sridharan na
Latha Thiruganam plan
sweta+nehal c plan
karur Nagaraja plan
k g suresh babu convincing a client
P. Ganesh plan
Vijay Upendra convincing a client
Krishnappa .C plan
Kavitha. V plan
deepak jain convincing a client plan
raksha . S workshop
M.R.Adyanthaya plan
satish workshop
ramakrishna kolluri na
ramesh hedge convincing a client plan
Neetha Mathur convincing a client plan
Jeershibkumar(naniah) convincing a client plan
Sudhendra Lakshman Rao convincing a client plan
38
nagaraja siringeri paying fees
narendra babu h v convincing a client plan
Mohan.A na
Karan Boal na
Kartikeyan plan
Geetha convincing a client plan
Mahendra Nayak M convincing a client plan
yuvraja na
Krishna Mihan convincing a client plan
Ravi Kumar T V na
Narayan Kayapati convincing a client plan
s. Anand Murty convincing a client plan
Satyanarawan Pawar plan
didn’t tell plan
mrs punita bs convincing a client
kksuresha convincing a client plan
Kiran rao convincing a client plan
Divya Jain. convincing a client plan
MR Murli convincing a client plan
Rajesh Kumar Gupta convincing a client plan
Guru Sail convincing a client plan
Rajesh convincing a client plan
Varsha Sujith convincing a client plan
Saurav Bansal convincing a client plan
R Pushpalatha convincing a client plan
Chandra Shekhar Reddy convincing a client Importance of financial
39
Tumma plan
Preethi convincing a client plan
Treena Roy convincing a client plan
Sunil Dutta convincing a client plan
Ashoke convincing a client plan
santosh convincing a client plan
dayanand aski convincing a client plan
4.4 Q3 what according to you are the difficulties in acquiring a client

for financial planning?
During interview I divided the answers in three parts to identify what is the major
difficulty to deal with a client in IFA businesses in India. Categories are a: convincing a
client, b: Importance of financial plan and third is others what they feel.
So maximum answer was in favour of importance of financial plan. Because CFP s are
thinking that most of the people are not aware about financial planning importance in
their life. In market survey when they contact with a client they found maximum
numbers of people are not educated about finance, market, etc. Also they are not
cleared about their goals. So IFA business people are trying to educate them before
they are investing money in somewhere. It is very important to understand the basic
needs of financial planning in this volatile market.
Now after collecting data quantitative analysis had been done to do the comparison.
So a Bar graph had been drawn with the help of the above table.
40
othes
14
%
Importance of financial plan 48
5
convincing a client 39
0 10 20 30 40 50 60
Series1
fig: 4 bar graph based on difficulties to acquiring clients
By this bar diagram we can analyze that we can see the variation of people opinion in
the market. Around 39% are in favor of convincing a client in the market is the most
important difficulties of acquiring a client.
Almost 50% people are in favor of importance of financial planning. Because CFPs are
well-known about maximum people including educated people are not aware about
financial planning and about their future goals. So some CFPs are doing workshop
before convincing a client. If clients understand the exact meaning of financial planning
they can be easily convinced by IFAs or they can abled to choose the right investment
planning for their future. So in others category we found CFPs are doing various
workshops or seminar regarding investment plans, risk management, goal achievement
planning etc.
But this others category percentage is very less. IN south Bangalore only this
percentage is less than 20%. So increasing awareness is the most important step
towards expansion of IFA business in India. The more people will be educated more
they can understand the needs or the requirements of financial planning in their life.
They will understand their goals in future and they can choose the right path or a right
person.
41
TABLE 4: what are the hurdles faced by you in the financial planning
process (rank 1-3)
name collection interpretation and
of data corelating of data to collection of getting fees
make different reports from the client
B.Srinivasan na na na
Mr. Prithvi Ranjan Reddy 1 2 3
Mineshwar Rao 3 2 1
md yusuf gaffoor 3 1 2
R.S.N PRASANNA 2 3 1
1 2 3
MANJUNATH
JAYESH R DOSHI 1 2 3
MS. NITHA 1 2 3
Naveen Rego 1 2 3
Pradeep Hattangadi 1 2 3
42
p.n venkatesh warlu 1 2 3
Neeti Trivedi 2 1 3
venkitesh.S. 1 2 3
Ajeet Pandey 1 3 2
amish chadda 1 2 3
Chetan Chandaliya 3 1 2
B.V.Vijaya 1 2 3
Hemant Kumar Bhatnagar 1 3 2
I.S.Phani 1 2 3
Leena Lobo 2 3 1
K.N.Sridharan 1 2 3
Latha Thiruganam 3 2 1
sweta+nehal c 3 2 1
karur Nagaraja 2 3 1
k g suresh babu 2 3
P. Ganesh 1 2 3
Vijay Upendra 3 1 2
Krishnappa .C 3 1 2
Kavitha. V 2 3 1
deepak jain 2 3 1
raksha . S
M.R.Adyanthaya 1 2 3
satish
ramakrishna kolluri
ramesh hedge
Neetha Mathur 2 3 1
Jeershibkumar(naniah) 1 3 2
Sudhendra Lakshman Rao 1 3 2
nagaraja siringeri 2 3 1
narendra babu h v
Mohan.A 1 3 2
Karan Boal 1 3 2
Kartikeyan 3 2 1
Geetha 1 3 2
Mahendra Nayak M 1 3 2
yuvraja
Krishna Mihan 1 2 3
Ravi Kumar T V 1 3 2
Narayan Kayapati 1 3 2
s. Anand Murty 1 3 2
Satyanarawan Pawar 1 3 2
43
didn’t tell 1 3 2
mrs punita bs 1 3 2
kksuresha 1 3 2
Kiran rao 1 2 3
Divya Jain. 1 2 3
MR Murli 1 3 2
Rajesh Kumar Gupta 1 2 3
Guru Sail 1 3 2
Rajesh 1 3 2
Varsha Sujith 1 3 2
Saurav Bansal 1 2 3
R Pushpalatha 2 3 1
Chandra Shekhar Reddy 1 2 3
Tumma
Preethi 1 3 2
Treena Roy 1 3 2
Sunil Dutta 1 3 2
Ashoke 1 3 2
santosh 1 2 3
dayanand aski 1 3 2
4.5 Q4 What are the hurdles faced by you in the financial planning process (rank
1-3)
This question answer is very versatile. I met around 73 CFP in south and received
different reaction. So I categorized the answers into three category and asked people to
rate according to the importance. Rate 1 I took the highest difficulty and 3 is lowest
problem. This way I can easily analyze the hurdles facing by an IFA today in India.
First category is collection of data. Many People told that it is very difficult job of getting
information from client. Sometimes people don’t like to tell everything to the business.
So for business people it will be difficult to understand the goals and desired of his
clients. Dealing with a new client is also very difficult. They don’t want to give any
details. So it’s a big challenge for a CFP to collect data from clients in IFA business.
Second Category is interpretation and correlating of data to make different reports and it
is another difficulty in IFA business. After collecting data analyze them and correlating
them means the strength of association between two variables is a difficult job. It needs
to be analyzed in such a way that client can understand everything and depends on his
or her financial planner.
44
Third category is getting fees. Some CFP agreed with this point and some disagreed.
Because some clients delayed with payments and some are really not interested to pay
fees and they want it free of cost.
So after visiting CFP s in this market I analyzed the data with pie diagram by rating the
problems from highest (value 1)to lowest (3).
collection of data
rating 1
rating 2
rating 3
Fig 5
interpretation and corelating of data to

make different reports
rating 1
rating 2
rating 3
fig 6
collection of getting fees from the

client
rating 1
rating 2
rating 3
fig 7
45
The pie diagram showing the highest rating or most difficult problem and the lowest
rating. First I counted each category from highest to low rating and prepare a different
calculation table and observed which values of each category from highest to lowest
rating and draw pie graphs. We can see that collecting data got the highest rating
1(77%) and considered as most important hurdles in financial planning process. Second
is collecting fees from a client’s got rating 2 almost 45%and interpretation and
correlation of data got rating 2 39%.
So we can consider Collection of fees is the second hurdles for a business person. So
all over we can say Interpreting and correlating data with report can considered as
lowest hurdles because it got rating 3 almost 53% while collection of getting fees got
35% rating 3and collection of data got 13% rating 3.
The Pie diagrams can show the percentage of rating from 1 to 3 and from that a logical
conclusion can be done by following the priority
Rating 1: Collection of Data
Rating 2: Collection of fees
Rating 3: interpretation and correlating of data to make different reports.
TABLE5: how much/many time and visit is usually needed to

complete a comprehensive financial planning.
10hrs/2 15hrs/3 more than 15hrs/4
name 5hrs/1visit visits visits visits others
10hrs/2
B.Srinivasan visits
more than 15hrs/4
Mr. Prithvi Ranjan Reddy visits
10hrs/2
Mineshwar Rao visits
md yusuf gaffoor depends on client
15hrs/3
R.S.N PRASANNA visits
depends on
MANJUNATH clients
more than 15hrs/4
JAYESH R DOSHI visits
10hrs/2
MS. NITHA visits
Naveen Rego 5hrs/1visit
Pradeep Hattangadi 5-6 visit
p.n venkatesh warlu 10hrs/2
46
visits
10hrs/2
Neeti Trivedi visits
10hrs/2
venkitesh.S. visits
more than 15hrs/4
Ajeet Pandey visits
10hrs/2
amish chadda visits
10hrs/2
Chetan Chandaliya visits
10hrs/2
B.V.Vijaya visits
10hrs/2
Hemant Kumar Bhatnagar visits
15hrs/3
I.S.Phani visits
15hrs/3
Leena Lobo visits
15hrs/3
K.N.Sridharan visits
Latha Thiruganam 15hrs/3
visits
15hrs/3
sweta+nehal c visits
10hrs/2
karur Nagaraja visits
more than 15hrs/4
k g suresh babu visits
15hrs/3
P. Ganesh visits
10hrs/2
Vijay Upendra visits
DEPENDS ON
Krishnappa .C CLIENTS
more than 15hrs/4
Kavitha. V visits
10hrs/2
deepak jain visits
10hrs/2
raksha . S visits
more than 15hrs/4
M.R.Adyanthaya visits
satish workjshop
10hrs/2
ramakrishna kolluri visits
ramesh hedge 15hrs/3
47
visits
DEPENDS ON
Neetha Mathur CLIENTS
DEPENDS ON
Jeershibkumar(naniah) CLIENTS
15hrs/3
Sudhendra Lakshman Rao visits
more than 15hrs/4
nagaraja siringeri visits
15hrs/3
narendra babu h v visits
10hrs/2
Mohan.A visits
10hrs/2
Karan Boal visits
more than 15hrs/4
Kartikeyan visits
15hrs/3
Geetha visits
15hrs/3
Mahendra Nayak M visits
15hrs/3
yuvraja visits
10hrs/2
Krishna Mihan visits
more than 15hrs/4
Ravi Kumar T V visits
Narayan Kayapati based on client
15hrs/3
s. Anand Murty visits
15hrs/3
Satyanarawan Pawar visits
didn’t tell based on client
mrs punita bs 5hrs/1visit
10hrs/2
kksuresha visits
15hrs/3
Kiran rao visits
more than 15hrs/4
Divya Jain. visits
15hrs/3
MR Murli visits
more than 15hrs/4
Rajesh Kumar Gupta visits
15hrs/3
Guru Sail visits
Rajesh 10hrs/2
48
visits
10hrs/2
Varsha Sujith visits
more than 15hrs/4
Saurav Bansal visits
more than 15hrs/4
R Pushpalatha visits
Chandra Shekhar Reddy 15hrs/3
Tumma visits workshop
Preethi 5hrs/1visit
Treena Roy 5hrs/1visit
Sunil Dutta 5hrs/1visit
Ashoke 5hrs/1visit
15hrs/3
santosh visits
15hrs/3
dayanand aski visits
4.6 Q5 how much/many time and visit is usually needed to complete a

comprehensive financial plan.
The next important thing in my analysis is how much/many time and visit is usually
needed to complete a comprehensive financial plan.This is a very important point in
B2C concept.
This has a direct impact on business. For any product selling it is important how much
time you are giving to your client or customers which will help to create a strong bonding
in between business person and his or her customer.In IFA business in India Financial
planner communicate with their client either one to one or arranging a workshop for
them.
First meeting is very important for an IFA with their client and after those next meetings
are sometimes depend on clients. Some financial planner doing a workshop to increase
awareness about financial planning in between the customers. This is the first and prior
step of business. In IFA business how many visits are required depend on financial
planner as well as clients to make a comprehensive financial planning. When I met CFP
in the market different answers I got and so I formed a table and analyse the data by a
graphical interpretation.
49
12% 10%
14%
21%
22%
Fig: 8 Showing percentage of visit to clients
This pie diagram showing five categories. 1) 5hrs/1 visit, 2) 10hrs/2 visits,3) 15 hrs/3
visits, 4) more than 4/15 hrs/ 4 visits,5) others 0r workshop or depends on clients.
First I count each category and convert them into percentage and draw a pie diagram to
explain which category is most frequently arriving. So I found 5hrs/1 visit calculation is
10%,10hrs/2 visits is 21%, 15 hrs./3 visits, is 22%, more than 4/15 hrs./ 4 visits is 14%,
others are 12%. So 10hrs /2 visits and 15hrs/3 visits are almost equal. So as an
assumption we can say that for a comprehensive financial planning 2 or 3 visits are
required. Some IFA business person said that 1 visit is enough if you clear and
confident. Some told work shop is necessary for starting a business. It will help to grow
the relationship. So By analysis and general opinion 2 to 3 visits are required for a
planning but it depends upon a client if he or she wants more clarification from business
in market then time increases as per requirements. But during interview most people
agreed with an idea to do a educational class to get or convince a client more easily in
this competitive market.
50
TABLE 6: what would be the report structure and presentation mode?
hard softcopy PPT and one to online

name copy PDF Presentation one presentation
B.Srinivasan y y
Mr. Prithvi Ranjan Reddy y y y y
Mineshwar Rao y
md yusuf gaffoor y
R.S.N PRASANNA y
MANJUNATH y
JAYESH R DOSHI y
MS. NITHA y
Naveen Rego y y
Pradeep Hattangadi y y
p.n venkatesh warlu y
Neeti Trivedi y y y
venkitesh.S. y
51
Ajeet Pandey Y
amish chadda Y Y
Chetan Chandaliya y y
B.V.Vijaya y y
Hemant Kumar Bhatnagar y
I.S.Phani y
Leena Lobo y y y
K.N.Sridharan y
Latha Thiruganam y y
sweta+nehal c y y y
karur Nagaraja y
k g suresh babu y
P. Ganesh y Y
Vijay Upendra Y y
Krishnappa .C Y
Kavitha. V y y y
deepak jain y
raksha . S y y
M.R.Adyanthaya y
satish y y
ramakrishna kolluri y y
ramesh hedge y
Neetha Mathur y y
Jeershibkumar(naniah) y
Sudhendra Lakshman Rao y
nagaraja siringeri
narendra babu h v y y
Mohan.A y y
Karan Boal y y
Kartikeyan y
Geetha y y
Mahendra Nayak M y y
yuvraja y
Krishna Mihan y y
Ravi Kumar T V y y
Narayan Kayapati y y
s. Anand Murty y y
Satyanarawan Pawar y y
didn’t tell y y
mrs punita bs y y y
kksuresha y
52
Kiran rao y
Divya Jain. y
MR Murli y
Rajesh Kumar Gupta y
Guru Sail y y y
Rajesh y y y
Varsha Sujith y y
Saurav Bansal y y
R Pushpalatha y y
Chandra Shekhar Reddy
Tumma y y
Preethi y y y
Treena Roy y y
Sunil Dutta y y
Ashoke y y
santosh y y y y
dayanand aski y y y y
4.7 Q 6:
what would be the report structure and presentation mode and it

means how financial planners are generating and presenting the
portfolio in front of clients.
During Interview I asked financial planner about their communication mode, with clients
and I got different kinds of reply and so that I divided them into five parts for further
analysis. They are hardcopy, softcopy, ppt, one to one, online presentation.
Hard copy means: A hard copy (or "hardcopy") is a printed copy of information from a
computer. Sometimes referred to as a printout, a hard copy is so-called because it
exists as a physical object.
Soft copy means: A soft copy (sometimes spelled "softcopy") is an electronic copy of
some type of data, such as a file viewed on a computer's display or transmitted as an e-
mail attachment.
53
PPT and Presentation means: PowerPoint is a complete presentation graphics
package. It gives you everything you need to produce a professional-looking
presentation. PowerPoint offers word processing, outlining, drawing, graphing, and
presentation management tools- all designed to be easy to use and learn.
One to one communication means: A form of direct promotion where

a business representative communicates directly with a targeted or
interested consumer. The typical one-to-one marketing dialog will involve the
representative or sales person listening to what the customer requires and then
proposing services or goods they can offer to meet those requirements.
Online presentation: An online presentation is a type of content that brings the

traditional business presentation (typically Microsoft PowerPoint) to an anytime,
anywhere environment online.
After collecting the data I analyzed and explained the data in a pie graph.
11% 6% legend
hard copy
softcopy PDF
8% 34%
PPT and Presentation
one to one
online presentation
42%
Fig 9 : pie diagram showing the percentages of using mode of presentation
With the help of this pie graph we can see that around 42% people are doing business
by presenting report by emails or softcopy and 34% people presenting report structure
by hardcopy. Some are believe in one to one communication for business promotion. In
financial planning market online presentation are using only to solve the geographical
constrains otherwise all are depends on hard copy or softcopy presentation in business.
54
TABLE 7: How do you price your planning proposition? What are the
charges?
0- 5000- 10000- above
name 5000 10000 15000 15000 others
B.Srinivasan
Mr. Prithvi Ranjan Reddy 20000
Mineshwar Rao depends on cliets
md yusuf gaffoor depends on cliets
R.S.N PRASANNA instead of money give policies
MANJUNATH na
JAYESH R DOSHI depends on cliets
MS. NITHA 15000
Naveen Rego y
Pradeep Hattangadi 27000
p.n venkatesh warlu 15000
Neeti Trivedi 15500
venkitesh.S. 15000
1% OF ASSET ALLOCATION
Ajeet Pandey CHARGES
amish chadda NA
Chetan Chandaliya 15000
B.V.Vijaya na
5000-
Hemant Kumar Bhatnagar 10000
55
I.S.Phani na
0-
Leena Lobo 5000
0-
K.N.Sridharan 5000
0-
Latha Thiruganam 5000
5000-
sweta+nehal c 10000
o-
karur Nagaraja 5000
5000-
k g suresh babu 10000
0-
P. Ganesh 5000 NOT FIXED
5000-
Vijay Upendra 10000
0-
Krishnappa .C 5000
Kavitha. V 5000
10000-
deepak jain 15000
0-
raksha . S 5000
M.R.Adyanthaya na
satish na
5000-
ramakrishna kolluri 10000
ramesh hedge na
Neetha Mathur na
Jeershibkumar(naniah) not fixed
Sudhendra Lakshman Rao
nagaraja siringeri na
narendra babu h v na
Mohan.A na
Karan Boal na
10000-
Kartikeyan 15000
Geetha depends on clients
Mahendra Nayak M na
yuvraja depends on clients
Krishna Mihan na
Ravi Kumar T V na
Narayan Kayapati na
56
s. Anand Murty na
Satyanarawan Pawar depends on clients
didn’t tell na
mrs punita bs depends on clients
kksuresha depends on clients
Kiran rao depends on clients
Divya Jain. depends on clients
MR Murli depends on clients
Rajesh Kumar Gupta depends on clients
Guru Sail depends on clients
Rajesh depends on clients
Varsha Sujith depends on clients
Saurav Bansal na
R Pushpalatha na
Tumma
Preethi depends on clients
Treena Roy
Sunil Dutta depends on clients
Ashoke depends on clients
santosh depends on clients
dayanand aski y
TABLE8.1: do you charge upfron fees?

TABLE8.1: do you charge upfron fees?
name yes what all

B.Srinivasan yes
Mr. Prithvi Ranjan Reddy
Mineshwar Rao
md yusuf gaffoor
R.S.N PRASANNA
MANJUNATH
JAYESH R DOSHI
MS. NITHA
Naveen Rego
Pradeep Hattangadi yes 8000/
p.n venkatesh warlu
57
Neeti Trivedi yes
venkitesh.S.
Ajeet Pandey yes 10000-20000
amish chadda
Chetan Chandaliya
B.V.Vijaya yes
Hemant Kumar Bhatnagar yes 6000
I.S.Phani yes
Leena Lobo
K.N.Sridharan yes
Latha Thiruganam
sweta+nehal c yes
karur Nagaraja
k g suresh babu
P. Ganesh yes
Vijay Upendra
Krishnappa .C
Kavitha. V yes
deepak jain yes
raksha . S
M.R.Adyanthaya
satish
ramakrishna kolluri
ramesh hedge yes
Neetha Mathur
Jeershibkumar(naniah)
nagaraja siringeri
narendra babu h v
Mohan.A
Karan Boal yes
Kartikeyan
Geetha yes
Mahendra Nayak M
yuvraja yes
Krishna Mihan
Ravi Kumar T V
Narayan Kayapati
s. Anand Murty
Satyanarawan Pawar
didn’t tell
58
mrs punita bs
kksuresha
Kiran rao
Divya Jain.
MR Murli
Rajesh Kumar Gupta
Guru Sail
Rajesh
Varsha Sujith
Saurav Bansal
R Pushpalatha
Preethi
Treena Roy
Sunil Dutta
Ashoke
santosh
dayanand aski
TABLE 8.2: If no how do you generate revenue from those clients
commission from fund yearly maintenance do it for free of

name no house fee cost
B.Srinivasan
Mineshwar Rao y y
md yusuf gaffoor
R.S.N PRASANNA y y
MANJUNATH y y
JAYESH R DOSHI y y
MS. NITHA y y
Naveen Rego y y y
Pradeep Hattangadi
p.n venkatesh warlu y y
Neeti Trivedi
venkitesh.S. y y y
Ajeet Pandey
59
amish chadda
Chetan Chandaliya y y
B.V.Vijaya
Hemant Kumar Bhatnagar
I.S.Phani
Leena Lobo y y
K.N.Sridharan
Latha Thiruganam y y
sweta+nehal c
karur Nagaraja y
k g suresh babu
P. Ganesh
Vijay Upendra Y
Krishnappa .C
Kavitha. V
deepak jain
raksha . S y
M.R.Adyanthaya y
satish
ramakrishna kolluri
ramesh hedge
Neetha Mathur y
nagaraja siringeri
narendra babu h v y
Mohan.A y
Karan Boal
Kartikeyan y
Geetha
Mahendra Nayak M y
yuvraja
Krishna Mihan
Ravi Kumar T V
Narayan Kayapati y
s. Anand Murty
Satyanarawan Pawar y
didn’t tell
mrs punita bs y
kksuresha
Kiran rao
60
Divya Jain.
MR Murli
Rajesh Kumar Gupta
Guru Sail
Rajesh
Varsha Sujith
Saurav Bansal y
R Pushpalatha y
Preethi
Treena Roy y
Sunil Dutta y
Ashoke y
santosh y
dayanand aski
4.8 Q7:
Next analysis is to study how IFAs generating revenue model of the financial
planning practice within a competitive market. For that I asked a question that
how do you price your planning proposition? What are the charges?
Maximum people replied that charges depend on clients. Sometimes clients don’t want
to pay for any consultation. That is why when an IFA asking for a workshop all are ready
to join but when price comes then many of them not ready to pay anything.
For that we can see the differences between the percentage of expected clients and the
actual clients in the market. I collected data and made a table to calculate the amount
paying for the IFA businesses. I prepared five categories and analysed the answers.
61
45
Fig: 10 bar graph showing revenue generation
Five categories are price level like 0-5000, 5000-10000, 10000-15000, above 15000
and others. Others mean some people didn’t want to tell about their pricing strategy and
some told it depends on client etc. With the help of this bar graph we can see that
among 70 people almost 8 people charging 0 – 5000 /- , 6 people charging 5000-
10000/- , 5 people charging 10000-15000/- , 4 people charging more than 15000 which
is very rare. But on the other hand others category value is 45 and this is the highest
value. So after the observation we can say that different price level is charging for
clients. Some business persons fixed their charges but maximum are not. For them it’s
depending on clients in the market.
4.9 Q 8:
Next question was do you charge upfront fees? Now what is an upfront fees? It is an
Expenses that are charged at the beginning of a contract, project or business
activity.A fee paid before a good is produced or a service is performed. The upfront fee i
s generally a portion of the total fee that the buyer must pay.so some IFAs charging
upfront fees may be 5000 to 8000 to generate revenue in business. It is an advance
fees paid to the business person to start a business with him or before invest in mutual
fund for future.
62
legend
20%
total
actual
80%
fig 11 pie graph representing upfront fees
So we can say that among 100 almost 20% people are taking upfront fees from client
before start any investment in market.
If they don’t take any upfront fees then they can generate revenue by taking yearly
maintenance fee, commission etc from clients.
16
14
12
10
8
6 actual
4
2
0
commission yearly do it for free of
from fund house maintanace fee cost
fig 12 line graph showing the rate of earning funds or profit
Commission from funds means A service charge assessed by a broker or investment

advisor in return for providing investment advice and/or handling the purchase or sale of
a security. IN south Bangalore among 70 people 12 people getting commission. Next
are yearly maintenance fees among 70 less than 10 people taking it. Rest of them are
doing as a free of cost or arranging a workshop to generate clients in business. This line
graph showing the numbers of people using different method for generating revenue in
their business and the selected area is Southern part of Bangalore.
63
Table 9: what tool do you use for making financial plan for your
clients?
opti- microsoft
name pulselab fiserv omnimax plan excel
B.Srinivasan microsoft
64
excel
Mineshwar Rao
opti-
md yusuf gaffoor pulselab plan
R.S.N PRASANNA
MANJUNATH
JAYESH R DOSHI
opti-
MS. NITHA plan
Naveen Rego
Pradeep Hattangadi
p.n venkatesh warlu
Neeti Trivedi
microsoft
venkitesh.S. excel
Ajeet Pandey
opti-
amish chadda plan
microsoft
Chetan Chandaliya excel
B.V.Vijaya
microsoft
Hemant Kumar Bhatnagar excel
microsoft
I.S.Phani excel
Leena Lobo
microsoft
K.N.Sridharan excel
Latha Thiruganam
sweta+nehal c omnimax
karur Nagaraja
microsoft
k g suresh babu excel
microsoft
P. Ganesh excel
microsoft
Vijay Upendra excel
Krishnappa .C
Kavitha. V fiserv
microsoft
deepak jain excel
65
raksha . S microsoft
microsoft
M.R.Adyanthaya excel
satish
microsoft
ramakrishna kolluri excel
ramesh hedge
Neetha Mathur
opti-
nagaraja siringeri plan
narendra babu h v
Mohan.A
Karan Boal
microsoft
Kartikeyan excel
Geetha
Mahendra Nayak M
yuvraja
Krishna Mihan
Ravi Kumar T V
Narayan Kayapati
s. Anand Murty
Satyanarawan Pawar
didn’t tell
mrs punita bs
kksuresha
Kiran rao
Divya Jain.
MR Murli
Rajesh Kumar Gupta
Guru Sail
Rajesh
Varsha Sujith
Saurav Bansal
microsoft
R Pushpalatha excel
Tumma
microsoft
Preethi excel
Treena Roy microsoft
66
excel
microsoft
Sunil Dutta excel
Ashoke
santosh
dayanand aski
4.10 Q 9:
In market there are several tools are available for financial planning. Many financial
planner are using different technologies, own software or different tools for better
performance in front of clients in the market. My next analysis is what tool do you use
for making financial plan for your clients? And please tell us why? Some people didn’t
want to disclose these answers due to business purposes. But all over I received
different answers. Some people told that they are still believe in knowledge and manual
methodology in IFA businesses. Because many clients don’t want updating and they
want to receive report format at the end of the year. Some new business persons were
excited to tell about their technology. Now a days there are so many tools available in
the market for financial planning like opti plan, omnimax, pulse lab, Microsoft excel,
Fiserv,subhchintak, other online tools,etc.
Pulse lab:
Pulse Labs as a Business House cater to the B2B segment in the Financial Services space.
We focus on creating solutions cemented with Technology, Research & Analytics, which are
best suited for the GenNext Advisory Firm.

These 4 words, modelled as our maiden offering mirrors Òur Pulse’.
1 Monte Carlo Simulations for Retirement and other Financial Goals.

2 What if scenario analysis with corresponding Asset Allocation strategy and
Cash Flow tables for all financial goals.

3 Interest Rate Sensitivity Analysis.
4 Loan Throttling.
5 Goal Programming.
6 Income, Expenditure & Net-worth projections till retirement.
7 Insurance Analysis based on HLV & Survivor Needs and Investment
67
Analysis based on Risk Profile and Financial Goals
8 Asset allocator
9 fund analyser
Their software name is KNOWLEDGE.
Optiplan: Optiplan is a web-based information management system designed to increase
the efficiency of financial planning, controlling and reporting processes for hotel chains.
Through automated connections to a hotels’ accounting system and Property Management System
(PMS) optiplan delivers to the management the transparency required to make informed decisions.
This enables management to engage in continuous optimization of the planning and
controlling processes down to an individual property- or cost center level.
More importantly this holistic overview of all financial data enables management to be more nimble,
confident and effective in their decision making.
The following facilities are offered by OptiPlan :
This application allows the hotel’s management team to monitor, create and manage the hotel’s
budget.
Central planning guidelines and standardization of analysis.
Hotels’ budgets and forecasts monitoring through OptiPlan facilities.
Automated interface to leading PMS’s for quick budget analysis.
Automated interface to leading accounting programs.
Occupancy, revenue, cost, sales and personnel planning tools.
Business planning for 5 years based on the current budget.
Time and cost saving through decentralized online data collection.
68
Central management of user rights.
Powerful report builder and secure reports.
Omnimax: MNIMax provides and develop holistic tools to meet Global
Financial Planning needs and maximise the power of the Internet.
Currently deployed in USA, UK, India, Singapore,Thailand, New Zealand,
Malaysia, South Africa, Ireland, Australia. OMNIMax has been supported
by New Zealand Trade and Industry. Global roll out continues.
Email for info. Facilitators required for non -English speaking countries.
Facilitates online collaboration between Financial Services Professionals, Accountants and Lawyers.
which provides the client with a Statement of Position whilst, the same data is used to provide
Professional solutions to meet a client’s specific needs. Data can also be shared across
Professionals Working with the same client at the clients’ request. e.g. Financial Planning,
Estate Planning, Business Succession, Pre Nuptials, Divorce Settlements, Mortgage / Loan
Applications, Personal Risk Management etc.
A powerful tool for creating a "tight 4" grouping: Client, Accountant, Lawyer & Financial Adviser.
Online Tools for Financial Advisers, Professional Financial Plan Writers, FIF Calculator for
NZ Accountants.
Microsoft excel: Microsoft Excel is a spreadsheet application developed by Microsoft for
Microsoft Windows, Mac OS X, andiOS. It features calculation,
graphing tools, pivot tables, and a macro programming language
called Visual Basic for Applications.
Fiserv: Fiserv support asset liability management, market risk, credit risk,liquidity risk,
interest-rate risk and funds transfer pricing capabilities
69
These are various tools with various features in financial planning. I did a survey to know
How many people are using financial planning tools in this volatile market.
Legend
pulselab
fiserv
omnimax
opti-plan
microsoft excel
knoewledge based
ownsoftware
fig 13 Usage of Tools
This pie chart describing Knowledgebase is 35% , companies own software IS 29%, MICROSOFT
EXCELIs 26%, optiplan is 6%, others usage are very less. So we can say that many people still
believe in Knowledge and some are using their own software in market. so new techniques and
tools are just emerging into the market and slowly slowly they will spread in the market with better
features to fulfill more requirements of the clients. Financial planners are more interested in
convincing a client in the market.
So new tools and technologies may help them to grow more clients in IFA businesses in this
volatile market. These new tools have new updated features.
TABLE 10: which risk profiling tools you use to do risk profiling for your clients?
Self made Finametrica
name questionnaires software
Self made
B.Srinivasan questionnaires
Self made
Mr. Prithvi Ranjan Reddy questionnaires
Mineshwar Rao Self made
70
questionnaires
md yusuf gaffoor
Self made
R.S.N PRASANNA questionnaires
Self made
MANJUNATH questionnaires
Self made
JAYESH R DOSHI questionnaires
Finametrica
MS. NITHA software
Self made
Naveen Rego questionnaires
Self made
Pradeep Hattangadi questionnaires
p.n venkatesh warlu
Neeti Trivedi
Self made
venkitesh.S. questionnaires
Finametrica
Ajeet Pandey software
Self made
amish chadda questionnaires
Finametrica
Chetan Chandaliya software
Self made
B.V.Vijaya questionnaires
Self made
Hemant Kumar Bhatnagar questionnaires
Self made
I.S.Phani questionnaires
Self made
Leena Lobo questionnaires
Self made
K.N.Sridharan questionnaires
Finametrica
Latha Thiruganam software
Self made
sweta+nehal c questionnaires
Self made
karur Nagaraja questionnaires
Self made
k g suresh babu questionnaires
Self made
P. Ganesh questionnaires
Vijay Upendra Self made
71
questionnaires
Krishnappa .C
Kavitha. V
Finametrica
deepak jain software
Self made
raksha . S questionnaires
Self made
M.R.Adyanthaya questionnaires
satish
Self made
ramakrishna kolluri questionnaires
Self made
ramesh hedge questionnaires
Self made
Neetha Mathur questionnaires
Self made
Jeershibkumar(naniah) questionnaires
Self made
Sudhendra Lakshman Rao questionnaires
nagaraja siringeri
Self made
narendra babu h v questionnaires
Self made
Mohan.A questionnaires
Finametrica
Karan Boal software
Self made
Kartikeyan questionnaires
Self made
Geetha questionnaires
Self made
Mahendra Nayak M questionnaires
Self made
yuvraja questionnaires
Self made
Krishna Mihan questionnaires
Self made
Ravi Kumar T V questionnaires
Self made
Narayan Kayapati questionnaires
Self made
s. Anand Murty questionnaires
Self made
Satyanarawan Pawar questionnaires
didn’t tell Self made
72
questionnaires
Self made
mrs punita bs questionnaires
Self made
kksuresha questionnaires
Kiran rao
Self made
Divya Jain. questionnaires
MR Murli
Rajesh Kumar Gupta
Self made
Guru Sail questionnaires
Self made
Rajesh questionnaires
Self made
Varsha Sujith questionnaires
Self made
Saurav Bansal questionnaires
Self made
R Pushpalatha questionnaires
Chandra Shekhar Reddy Self made
Tumma questionnaires
Self made
Preethi questionnaires
Treena Roy
Sunil Dutta
Ashoke
Self made
santosh questionnaires
Self made
dayanand aski questionnaires
Any mutual fund platform risk pulse

name profiler lab
B.Srinivasan
Any mutual fund platform risk
Mineshwar Rao profiler
md yusuf gaffoor profiler
R.S.N PRASANNA
73
MANJUNATH
JAYESH R DOSHI
MS. NITHA
Naveen Rego
Pradeep Hattangadi
p.n venkatesh warlu profiler
Neeti Trivedi profiler
venkitesh.S.
Ajeet Pandey
amish chadda
Chetan Chandaliya
B.V.Vijaya
Hemant Kumar Bhatnagar
I.S.Phani
Leena Lobo
K.N.Sridharan
Latha Thiruganam
sweta+nehal c
karur Nagaraja
k g suresh babu
P. Ganesh
Vijay Upendra
Krishnappa .C profiler
Kavitha. V fiserv
deepak jain
raksha . S
M.R.Adyanthaya
satish na
ramakrishna kolluri
ramesh hedge
Neetha Mathur
nagaraja siringeri software
narendra babu h v
Mohan.A
Karan Boal
74
Kartikeyan
Geetha
Mahendra Nayak M
yuvraja
Krishna Mihan
Ravi Kumar T V na
Narayan Kayapati
s. Anand Murty
Satyanarawan Pawar
didn’t tell
mrs punita bs
kksuresha
Kiran rao software
Divya Jain.
MR Murli software
Rajesh Kumar Gupta software
Guru Sail
Rajesh
Varsha Sujith
Saurav Bansal
R Pushpalatha
Tumma
Preethi
Treena Roy software
Sunil Dutta software
Ashoke software
santosh
dayanand aski
Risk profiling is a process for finding the optimal level of investment risk for your client
risk required is the risk associated with the return required to achieve the client’s goals from the
 financial resources available,
 risk capacity is the level of financial risk the client can afford to take, and
 risk tolerance is the level of risk the client is comfortable with.
75
fig 14
Risk required and risk capacity are financial characteristics calculated using your financial planning
Software. Risk tolerance is a psychological characteristic which is best determined by way of a
Psychometric test.
Risk profiling requires each of these characteristics to be separately assessed so that they can be
Compared to one another. Risk capacity and risk tolerance both act separately as constraints on
what your client might otherwise do to achieve their goals (risk required). It is unusual for a client to
be able to achieve their goals from the resources available within both their risk capacity and risk
tolerance.
Where a mismatch between risk required, risk capacity and risk tolerance has been found, the
advisor’s role is to guide the client through the trade-off decisions that are required to reach an
optimal solution.
The final step in the risk profiling process is to ensure that the client has realistic risk and return
expectations so that the advisor can be given the clients properly informed consent to implement
the investment strategy.
There are some risk profiling tools are available in the market. Like finametrica, iciciprudential life
insurance, aviva and others. IFAs are using these tools in softwares to calculate risk tolerance of the
investments in the market .
The most available tool is selfmade questionnaire and experience and own assumption. Many
planners believe that selfmade questionnaire is the most helpful tool in risk calculation.
Questionnaires:
Control self-assessment technique developed in 1987 that is used by a wide range of
organisations including corporations, charities and government departments, to assess the
effectiveness of their risk management and control processes. A "control process" is a check or
process performed to reduce or eliminate the risk of error. Since its introduction the technique has
been widely adopted in the United States, European Union and other countries. There are a number
of ways a control self-assessment can be implemented but its key feature is that, in contrast to a
traditional audit, the tests and checks are made by staff whose normal day-to-day responsibilities
are within the business unit being assessed.[1] A self-assessment, by identifying the higher risk
76
processes within the organization, allows auditors to plan their work more effectively.
A number of governmental organization require the use of control self-assessment.
A questionnaire is a research instrument consisting of a series of questions and other prompts
for the purpose of gathering information from respondents.
Finametrica: FinaMetrica provides a highly personalized assessment of an
Individuals.
Pulse lab is another tool of risk calculation.
Any mutual fund platform risk profile: A mutual fund is a type of professionally managed
investment fund that pools money from many investors to purchase securities. They have their
own risk profiling tool .
In market IFA s are using either self-assessment techniques or tools to calculate the risk tolerance
in any investment of their client in the market.
77
I Collected the data from Financial Planners and put it in a table for calculation.
60
50
52
40
valu 30
e 20
10 5 8 6
0
risk profiling tools

fig 15
After a market survey I came to know that around 70 people I met among them 52 are using
self-made questionnaire for risk analysis and questionnaires are based on 25 questions and based
on those questions and assumption, market structure and experience financial planners are doing
risk Profiling for their clients in the market. Next around 8 people said about finametrica. Around 5
people told that they are using mutual fund risk analyzer and 6 people told that they are using their
own software for risk analysis. So others told they are not doing risk analysis. so highest value is
52 those who are using own analysis to calculate risk in investment. Risk management is the
process to identify the problems, analyze the problems and find out the solution and details
risk analysis create more close bonding with business and customers in market.
78
4.12 Q 11
Next analysis is how do you compute the risk tolerance for your client.
Risk Tolerance: Risk assessment is a crucial component of any financial planning

process. A properly defined and documented process will give the greatest chance of a
successful outcome. It will not guarantee the removal of any future issues but will
provide comfort for both client and adviser that a sophisticated and scientific process
has been employed.
Risk Profiling combines two key areas -
1) Estimating financial risk-taking capacity and
2) Understanding the (psychological) risk tolerance level of an individual.
In my analysis I had chosen two methods of calculating risk in investment and they are
composite score And different scores of risk tolerance and capacity.
Composite scores: In financial analysis, a composite is a balance sheet and/or profit and
loss statement representing averages for the accounts of a number of
companies in the same industry or sector. The accounts of a particular
company can thus be compared with a composite to identify abnormalities or
risk or uncertainties.
Risk tolerance and risk capacity are two concepts that need to be understood clearly
before making investment decisions for yourself or for a client. Together, the two help to
determine the amount of risk that should be taken in a portfolio of investments.
Risk Tolerance
Risk tolerance is the amount of risk that an investor is comfortable taking, or the degree
of uncertainty that an investor is able to handle. Risk tolerance often varies with age,
income and financial goals. It can be determined by many methods, including
questionnaires designed to reveal the level at which an investor can invest, but still be
able to sleep at night.
79
Risk Capacity
Risk capacity, unlike tolerance, is the amount of risk that the investor "must" take in order
to reach
financial goals. The rate of return necessary to reach these goals can be estimated by
examining time
frames and income requirements. Then, rate of return information can be used to help
the investor decide
upon the types of investments to engage in and, the level of risk to take on.
Income targets must first be calculated in order to decide the amount of risk that may be
required.
So financial planners using risk profiling calculation in different ways.In my analysis I

studied the answers and put the answers into two groups. One is composite score and
another is different scores in risk tolerance and risk capacity. Rate of return must be
calculated when financial planners are doing investment planning for their clients and it is
very important in financial advisory market.
Table 11
composite Different scores for risk tolerance & assumption/manually/softwar don’t

score capacity e know
13 18 24 20
composite score
value value
20(27%) 13(17%) Different scores for
risk tolerance &
capacity
value 18(24%) assumption/manuall

y/software
value 24 (32%)
don’t know
fig 16
80
This pie graph showing the percentage of each category. Composite score value is 13 or
17%, Different scores for risk tolerance and capacity is 18or 24%, assumption or self-
made calculation or other tools calculation is 24 or 32%, and people who are not
interested or not involved in risk calculation is 20 or 27%.
So Among 70 people I met in market 24 people are doing self-estimation or taking help
from other tools. But 20 people are ignoring doing risk analysis. Almost 18 people are
doing comparison between risk tolerance and risk capacity before estimating the rate of
return in investment of a client in the market.13 people are taking composite score in risk
profiling calculation. So rate of return and investment target must be calculated with a risk
profiling research with the help of software or assumption. Using technologies will help to
give an accurate result in risk calculation as well as Calculating rate of return in the
market.
81
TABLE 12: Which of the following helps you to form an investment
perspective for your clients?
AMC Past
report External return Choice of
/ Sales sale side of the Rating Fund the
pitch(1 research( funds(3 Agencies( manager( investment(
name ) 2) ) 4) 5) 6)
B.Srinivasan 1 3 4 5 6
Mr. Prithvi Ranjan Reddy 2 5
Mineshwar Rao 1 2 4 5
md yusuf gaffoor 1 2 3 4 5 6
R.S.N PRASANNA
MANJUNATH 1 2 3 4 5 6
JAYESH R DOSHI 1 2 3 4 5 6
MS. NITHA 6
Naveen Rego 1 2
Pradeep Hattangadi 1
p.n venkatesh warlu 1 2 3 4 5 6
Neeti Trivedi 2
venkitesh.S. 1
Ajeet Pandey 1 2
amish chadda 1 2 3 4 5 6
Chetan Chandaliya 2
B.V.Vijaya 1 2 3 4 5 6
Hemant Kumar Bhatnagar 3
I.S.Phani 1 2 3 4 5 6
Leena Lobo 3 6
K.N.Sridharan
Latha Thiruganam 2 3 4 5
sweta+nehal c 1 2 3 4 5 6
karur Nagaraja 1 4
k g suresh babu 1 2 3 4 5 6
P. Ganesh 1 2 3 4 5 6
Vijay Upendra 1 2 3 4 5 6
Krishnappa .C 6
Kavitha. V
deepak jain 1 2 3 4 5 6
raksha . S 3 5
M.R.Adyanthaya 1 2 3 4 5 6
82
satish 3
ramakrishna kolluri
ramesh hedge 1 2 3 4 5 6
Neetha Mathur 1 2 3 4 5 6
Jeershibkumar(naniah) 1 4 5
Sudhendra Lakshman Rao 1 2 3 4 5 6
nagaraja siringeri 1 2 3 4 5 6
narendra babu h v 1 2 3 4 5 6
Mohan.A 1 2 3 4 5 6
Karan Boal 1 2 3 4 5 6
Kartikeyan 2
Geetha 1 2 3 4 5 6
Mahendra Nayak M 1 2 3 4 5 6
yuvraja 2
Krishna Mihan 1 2 3 4 5 6
Ravi Kumar T V 1 2 3 4 5 6
Narayan Kayapati 1 2 3 4 5 6
s. Anand Murty 1 2 3 4 5 6
Satyanarawan Pawar 1 2 3 4 5 6
didn’t tell 1 2 3 4 5 6
mrs punita bs 1 2 3 4 5 6
kksuresha 1 2 3 4 5 6
Kiran rao 1 2 3 4 5 6
Divya Jain. 3
MR Murli 5
Rajesh Kumar Gupta 1 2 3 4 5 6
Guru Sail 1 2 3 4 5 6
Rajesh 1 2 3 4 5 6
Varsha Sujith 1 2 3 4 5 6
Saurav Bansal 1 2 3 4 5 6
R Pushpalatha 3
Tumma 1 2 3 4 5 6
Preethi 1 2 3 4 5 6
Treena Roy 3 5
Sunil Dutta 1 2 3 4 5 6
Ashoke 1 2 3 4 5 6
santosh 1 2 3
dayanand aski 1 2 3 4 5 6
83
413 Q12
Next analysis is Which of the following helps you to form an investment perspective for
your clients?
The categories are 1)AMC report/ Sales pitch,2)External sale side research,3)Past
return of the funds,4)Rating Agencies,6)Choice of the investment and others.
Investment is time, energy, or matter spent in the hope of future benefits actualized
within a specified date or time frame.
Perspective means -
A mental view or outlook: "It is useful occasionally to look at the past to gain a perspecti
ve on the present"(Fabian Linden).Different financial planner have different views on
this question. Some believe that all are required and some feels that only experience
can do that.
What is AMC:A company that invests its clients' pooled fund into securities that match
its declared financial objectives.
External sell side analysis means money management firms such as mutual
funds, pension funds, trusts, and hedge funds. They are incentivised to identify
investment opportunities that will improve the net worth of the portfolio they work for.
Past return of funds means calculates rates of return for any given period of time and
determines compound annual returns.
Rating Agencies: Rating agencies, or credit rating agencies, evaluate the

creditworthiness of organisations that issue debt in public markets.
Fund Manager:The person(s) resposible for implementing a fund's investing strategy

and managing its portfolio trading activities.
Choices of investment:comprehensive independent research to help you come up

with new investing strategies and ideas.
Others:Newspapers, Internet, Personal analysis, experience etc.
84
So the below bubble graph showing the value of which category got the highest
percentage.
AMC report/ Sales pitch(1)=value 50(17%)
External sale side research=value 51(17%)
Past returns of the fund=value 51(17%)
Rating Agencies=value 46(15%)
Fund managers=value 49(16%)
Choices of investments=value 45(15%)
Others=Value 5(2%)
AMC report/ Sales pitch(1)
External sale side

research(2)
Past return of the funds(3)
Rating Agencies(4)
Fund manager(5)
Choice of the
investment(6)
Others, if any(7)
fig 17
So almost the values are equal. Financial planners are choosing these options to form
an investment perspective for their clients. In my survey 42 financial planners among 70
are using all the options for financial investment perspective for their clients. Apart from
these options some financial planners are using only newspapers, internet and
experience for business but the amount is very less 5 among 70 like 2%in the current
market.
85
TABLE 13: What is the research methodology you adopt to do asset
allocation for your clients?
Goal based
Mix of strategic
strategic Dynamic
& dynamic
Based on asset asset
name age/static allocation allocation
B.Srinivasan Y Y
Mr. Prithvi Ranjan Reddy Y
Mineshwar Rao Y Y
md yusuf gaffoor
R.S.N PRASANNA Y Y Y Y
MANJUNATH Y Y
JAYESH R DOSHI Y
MS. NITHA Y
Naveen Rego Y Y Y Y
Pradeep Hattangadi Y
p.n venkatesh warlu Y Y Y Y
Neeti Trivedi Y Y Y
venkitesh.S. Y
Ajeet Pandey Y
amish chadda Y
Chetan Chandaliya Y
B.V.Vijaya Y
Hemant Kumar Bhatnagar Y Y
I.S.Phani Y
Leena Lobo Y
K.N.Sridharan Y
Latha Thiruganam Y
sweta+nehal c Y Y
karur Nagaraja Y
k g suresh babu Y Y
P. Ganesh Y Y
Vijay Upendra Y
Krishnappa .C Y
Kavitha. V Y
deepak jain Y
raksha . S Y
86
M.R.Adyanthaya Y Y Y Y
satish
ramakrishna kolluri Y
ramesh hedge
Neetha Mathur Y Y
Jeershibkumar(naniah) Y
nagaraja siringeri Y Y
narendra babu h v Y
Mohan.A Y
Karan Boal Y
Kartikeyan Y
Geetha
Mahendra Nayak M Y Y
yuvraja Y
Krishna Mihan Y Y
Ravi Kumar T V Y
Narayan Kayapati Y Y
s. Anand Murty Y
Satyanarawan Pawar Y
didn’t tell Y Y
mrs punita bs Y Y
kksuresha Y
Kiran rao Y
Divya Jain. Y Y
MR Murli Y Y
Rajesh Kumar Gupta Y Y Y Y
Guru Sail Y Y
Rajesh Y
Varsha Sujith Y
Saurav Bansal Y Y
R Pushpalatha Y Y
Chandra Shekhar Reddy Tumma Y Y
Preethi Y Y
Treena Roy Y
Sunil Dutta Y
Ashoke Y
santosh Y
dayanand aski Y
87
4.14 Q13:
My next analysis is What is the research methodology you adopt to do asset allocation
for your clients?
Asset Allocation:An investment strategy that aims to balance risk and reward by
apportioning a portfolio's assets according to an individual's goals, risk tolerance and
investment horizon.
The three main asset classes - equities, fixed-income, and cash and equivalents - have
different levels of risk and return, so each will behave differently over time.
Research methodology of asset allocations is four types, 1) Age based, 2) Goal Based,
3) Dynamic, 4) mixed of strategic and dynamic.
Age based Asset allocation: Calculations Based on Age till retirements.
Goal Based: It means financial planners help to fixed the goals of a client till his/her
retirements
Strategic asset allocation (described below) is used by investors following

the Bogleheads investment philosophy. Strategic asset allocation is designed for the
long run. It may be changed due to life events, but it should not be changed due to
market conditions.
Tactical asset allocation. Tactical asset allocation shifts allocations according to

economic or valuation factors. Vanguard has historically used tactical asset
allocation for a limited number of its balanced funds.
Dynamic asset allocation. Dynamic asset allocation calls for allocations to shift in
accordance with changing future liabilities, a condition especially relevant, since
changes in pension law, to institutional defined pension and institutional endowment
portfolios.
I collected data and found
Age based value is 27 among 70 (26%)
Goal Based asset allocation is 55 among 70(53%)
Dynamic asset allocation is 7among 70(7%)
88
Mixed dynamic and strategic asset allocation is 14 among 70 (14%)
Legend
fig 18
The above pie diagram showing that how financial planners are using research
methodology for asset allocation either by age based , goal based, dynamic or mixed
dynamic and strategic. But maximum CFPs are using goal based asset allocation for
their research and some are using both goal based and age based.
Needs of asset allocation:

One way to help protect clients from market ups and downs is to develop an asset
allocation strategy. Asset allocation is the process of spreading investments among
different asset classes: stocks, bonds, and short-term investments such as cash.
Some ones money is too important to invest without a strategy. Though the term
sounds complicated, "asset allocation" means dividing up your investments among
the different asset classes in a way that makes sense for clients. A person should
consider an asset allocation strategy based on his:
 Time horizon — how long you expect you’ll need your assets to last
 Risk tolerance — how willing you are to endure the market’s ups and downs in
exchange for more growth potential over the long term
 Financial situation — including your lifestyle and assets
In fact, the right asset allocation can help to maintain confidence through economic ups
and downs and may even increase the potential for better returns over time.
89
TABLE 14: How do you maintain the risk profiler for your clients?
Voice
name Hard copy Emails Recorders
B.Srinivasan Hard copy
Mr. Prithvi Ranjan Reddy Hard copy
Mineshwar Rao Hard copy Emails
md yusuf gaffoor Hard copy Emails
R.S.N PRASANNA Hard copy Emails
MANJUNATH Hard copy Emails

JAYESH R DOSHI Emails
MS. NITHA Hard copy Emails
Naveen Rego Hard copy Emails
Pradeep Hattangadi
p.n venkatesh warlu
Neeti Trivedi Emails
venkitesh.S. Hard copy
Ajeet Pandey Hard copy Emails
amish chadda Hard copy
Chetan Chandaliya Emails
B.V.Vijaya Hard copy
Hemant Kumar Bhatnagar Emails
I.S.Phani Emails
Leena Lobo Hard copy Emails
K.N.Sridharan Emails
Latha Thiruganam Emails
sweta+nehal c Hard copy Emails
karur Nagaraja Hard copy
k g suresh babu Hard copy
P. Ganesh Hard copy
Vijay Upendra Hard copy
Krishnappa .C Hard copy
Kavitha. V Hard copy
deepak jain Emails
raksha . S Hard copy Emails
M.R.Adyanthaya Emails
satish Emails
ramakrishna kolluri Hard copy Emails
90
ramesh hedge Emails
Neetha Mathur Emails
Jeershibkumar(naniah) Hard copy Emails
Sudhendra Lakshman Rao Hard copy
nagaraja siringeri Emails
narendra babu h v Emails
Mohan.A Hard copy
Karan Boal Emails
Kartikeyan Hard copy emails
Geetha Hard copy Emails
Mahendra Nayak M Hard copy Emails
yuvraja Hard copy Emails
Krishna Mihan Hard copy Emails
Ravi Kumar T V Hard copy Emails
Narayan Kayapati Emails
s. Anand Murty Emails
Satyanarawan Pawar Emails
didn’t tell Hard copy Emails
mrs punita bs Hard copy
kksuresha Hard copy Emails
Kiran rao Emails
Divya Jain. Emails
MR Murli Hard copy Emails
Rajesh Kumar Gupta Hard copy Emails
Guru Sail Hard copy Emails
Rajesh Hard copy Emails
Varsha Sujith Hard copy Emails
Saurav Bansal Emails
R Pushpalatha Emails
Chandra Shekhar Reddy Tumma Hard copy Emails
Preethi Hard copy Emails
Treena Roy Emails
Sunil Dutta Emails
Ashoke Emails
santosh Emails
dayanand aski Hard copy Emails
91
4.15 Q14
Next question is How do you maintain the risk profiler for your clients?
Financial planners are maintaining the reports in either hard copies or softcopies. There
is another option voice recording. But in India it is not useful. Some CFPS are using
both format of hard copy and soft copy for maintaining the risk profiler for clients.
fig 19
Here around 42 are using hardcopies, 53 are using softcopies, 0 are using voice
recorders, 27 people are using both hard copy and soft copy to maintain the risk profiler
among 70 financial planners.
92
TABLE 15: How do you maintain KYC documents and investment
advices for your clients?
Voice
name Hard copy Emails Recorders
B.Srinivasan Hard copy
Mr. Prithvi Ranjan Reddy Hard copy
Mineshwar Rao Hard copy Emails
md yusuf gaffoor Hard copy Emails
R.S.N PRASANNA Hard copy Emails
MANJUNATH Hard copy Emails

JAYESH R DOSHI Hard copy
MS. NITHA Hard copy Emails
Naveen Rego Hard copy Emails
Pradeep Hattangadi
p.n venkatesh warlu
Neeti Trivedi Emails
venkitesh.S. Hard copy
Ajeet Pandey Hard copy Emails
amish chadda Hard copy
Chetan Chandaliya Emails
B.V.Vijaya Hard copy
Hemant Kumar Bhatnagar Emails
I.S.Phani Emails
Leena Lobo Hard copy Emails
K.N.Sridharan Emails
Latha Thiruganam Emails
sweta+nehal c Hard copy Emails
karur Nagaraja Hard copy
k g suresh babu Hard copy
P. Ganesh Hard copy
Vijay Upendra Hard copy
Krishnappa .C Hard copy
Kavitha. V Hard copy
deepak jain Emails
raksha . S Hard copy Emails
M.R.Adyanthaya Emails
satish Emails
ramakrishna kolluri hard copy Emails
ramesh hedge Emails
93
Neetha Mathur hard copy Emails
Jeershibkumar(naniah) Emails
Sudhendra Lakshman Rao hard copy
nagaraja siringeri Emails
narendra babu h v Emails
Mohan.A hard copy Emails
Karan Boal Emails
Kartikeyan hard copy Emails
Geetha hard copy Emails
Mahendra Nayak M hard copy Emails
yuvraja hard copy Emails
Krishna Mihan hard copy Emails
Ravi Kumar T V hard copy Emails
Narayan Kayapati Emails
s. Anand Murty Emails
Satyanarawan Pawar Emails
didn’t tell hard copy Emails
mrs punita bs hard copy
kksuresha hard copy Emails
Kiran rao Emails
Divya Jain. Emails
MR Murli hard copy Emails
Rajesh Kumar Gupta hard copy Emails
Guru Sail hard copy Emails
Rajesh hard copy Emails
Varsha Sujith hard copy Emails
Saurav Bansal Emails
R Pushpalatha Emails
Chandra Shekhar Reddy Tumma hard copy Emails
Preethi hard copy Emails
Treena Roy Emails
Sunil Dutta Emails
Ashoke Emails
santosh Emails
dayanand aski hard copy Emails
94
4.16 Q 15:
Next is How do you maintain KYC documents and investment advices for your clients?
Like same way financial planners are using hard copies, soft copies or both.
fig 20
Here also 29 CFPs are using both hard copies and soft copies, o is using voice
recorder, 53 are using emails, and 43 are using hard copies among 70 samples to
maintain KYC and other investments reports.
Next analysis is based on what are the challenges IFAs are facing today. I asked some
options and told them to rank from 1 to 7 according to the priority and first priority
marked as 1. My options are1)Limited access to special or exclusive products
2)Geographical constraints
3)Over dependence on transaction based income
4)Maintenance of Efficient & cost effective back office support
5)Client Acquisition & Service
6)Volatile Markets & Irrational client behaviour
7)Access to quality research on products
Financial planners were ranked them according to their experience they are facing
every day
in their business. I put their opinion in graph format .
95
Table: 16 to rank the challenges facing by financial planners today
Limited
access Over Maintenance Volatile Access
to dependence of Efficient & Markets to
special on cost & quality
or transaction effective Client Irrational research
exclusive Geographical based back office Acquisition client on
name products constraints income support & Service behaviour products
rank 1 2 6 4 4 23 13 5
rank 2 1 4 5 5 11 23 6
rank 3 5 7 3 7 9 8 18
rank 4 5 4 7 20 4 8 7
rank 5 7 8 18 8 6 4 4
rank 6 10 21 11 5 1 2 6
rank 7 27 6 8 6 0 0 8
4.17 Q 16
fig 21
96
Geographical constrains
fig 22
Over dependence on
transaction based
income value
20 Over
10 dependence
on
0 transaction
rank 1
rank 2
rank 3
rank 4
rank 5
rank 6
rank 7
based
income
fig 23
Maintenance of
Efficient & cost
effective back office
support
30 Maintenanc
20 e of
Efficient &
10
cost
0 effective
rank 1
rank 2
rank 3
rank 4
rank 5
rank 6
rank 7
back office
support
fig 24
97
Client Acquisition &
Service
25
20
15
Client
10
Acquisition &
5
Service
0
rankrankrankrankrankrankrank
1 2 3 4 5 6 7
fig 25
Volatile Markets &

Irrational client
behaviour
25
20
15 Volatile
Markets &
10
Irrational
5
client
0 behaviour
rank 3
rank 1
rank 2
rank 4
rank 5
rank 6
rank 7
fig 26
Access to quality research

on products
20
15
10 Access to
quality
5 research on
0 products
fig 27
So these above line graphs are showing which category is getting highest priority and
which one getting lowest priority. According to the table and the graph we can say Client
Acquisition & Service got highest rank no 1 (value 23) .Next Volatile Markets & Irrational
client behaviour got highest rank 2 rating (23) , access to quality research and process
98
got highest rank 3 rating (18),Maintenance of Efficient & cost effective back office
support got highest rank 4 rating (20), Over dependence on transaction based income
got the highest rank 5 rating (18), Geographical constraints got highest rank 6 rating
(21),Limited access to special or exclusive products got highest rank 7 rating (27). So
after the calculation we can draw an overall idea about the challenges IFAs are facing
today in business according to the priority.
1) Client Acquisition & Service

2) Volatile Markets & Irrational client behaviour
3) Access to quality research on products
4) Maintenance of Efficient & cost effective back office support
5) Over dependence on transaction based income
6) Geographical constraints
7) Limited access to special or exclusive products
4.18 Q 17
what are the critical gaps or requirements in IFA businesses today?
Different people gave different reply.All over the problems or critical things are listed like
 Lack of Education
 Lack of awareness among clients to get regular updates from Financial planners
 More good bonding required in between business and clients
 Clear explanation is required
 Good management is required
 Need to remove clients ’psychological barriers
 Improved techniques are required
 Good financial literacy rate is required
 More knowledge is required
 Proper system is required
 Goals should be cleared
 Proper planning is required
 Good communication is needed
 Too many rules and regulation from sebi may divert clients mind
 Lack of seriousness etc.
99
4.19
Hypothesis: A supposition or explanation (theory) that is provisionally accepted

in order to interpret certain events or phenomena, and to provide guidance for further
investigation. A hypothesis may be proven correct or wrong, and must be capable
of refutation. If it remains unrefuted by facts, it is said to be verified or corroborated.
My first hypothesis is convincing a client, getting data from the client, communicate with
a client are related to the no of client in IFA businesses in India. I can draw a
hypothetical analysis based on chi-square method to prove my assumption.If there is no
effect accept nullotherwise accept H1.
Chi-Square: A chi-squared test, also referred to as test (or chi-square test), is

any statistical hypothesis test in which the sampling distribution of the test statistic is
a chi-square distribution when the null hypothesis is true. Chi-squared tests are often
constructed from a sum of squared errors, or through the sample variance.
Table 17
Group/Name Expected Observed total
0-10% 15 12 27
10-20% 6 36 42
20-30% 4 18 22
30-50% 18 16 34
Above 50% 57 18 75
total 100 100 200
Calculated table:18
Group/Name E(expected) O(observed) O-E (O-E)2 (O-E)2/E=
0-10% 15 12 3 9 .6
10-20% 6 36 30 900 150
20-30% 4 18 14 196 49
30-50% 18 16 -2 `4 .2
ABOVE 50% 57 18 -39 1521 26.69
100
= 226.49
(r-1)(c-1)=(5-1)(2-1)
=4
So Degree of Freedom is 4
Level of significance 5%.
Chi-Square Table Value is 9.488
Calculated value 226.49 which is greater than table value. So here we can see that
getting client is a big challenge. So convincing a client and getting information from the
client is the biggest hurdles and it has an impact on your no. of clients. In my first
analysis we saw 57 among 70 IFA in Bangalore agreed that in first meeting with a client
he/she always ready to take financial plan but in actual market 10-20% are really
undergone with financial planning. So there is always a big gap in expected client and
actual client’s value in business. So performance of a CFP always has an effect on
getting new clients in market.
So above calculation also rejecting null hypothesis because the calculated value is
higher than table value. So H0 is rejected and accept alternative hypothesis
In statistics, the two-way analysis of variance (ANOVA) is an extension of the one-

way ANOVA that examines the influence of two different categoricalindependent
variables on one continuous dependent variable. The two-way ANOVA not only aims at
assessing the main effect of each independent variable but also if there is
any interaction between them.
Financial planning CFPs are using either tools or software for financial analysis, risk
management, report presentation or they are using their experience knowledge,
assumption for all these. So the statement is whether knowledge based methodology,
and technical methods are affecting business (finance analysis, risk management,
report presentation) or they are independent.
If independent, accept null hypothesis or reject null hypothesis.
101
Table:19
Methods/name Financial analysis Risk management Report presentation
Knowledge based 24 51 43
Technology based 45 18 82
Calculation table: Two way anova table 20
Name SS DOF MS F ratio 5% level of

significance
Ss between 1045.3 3-1=2 522.65 0.7 5.7861>0.7

column
Ss between 121.46 2-1=1 121.46 0.1730 6.6079>.173

row
Error 1404.04 (3-1)(2-1)=2 702.02
total 2570.8 5
Column wise financial analysis, risk management and report presentation are different
steps in financial planning. Some CFP are not doing risk analysis , some are not giving
reports . Reports may automatically generate in website by clients itself. In my
calculation calculated value is less than table value. So it is proven that they are
different function under a system and independent. So Null hypothesis is accepted. Row
wise some cfp doing business based on knowledge and some are doing based on
techniques. So its their choise to select the methodology. In table calculated value of
row is less than table value. So they are independent choices and Null hypothesis is
accepted. But it will be always a good choice to select technology based analysis rather
than knowledge. Because it will give a flawless analysis so client can trust on business
and it will help financial planners to grow their businesses more and more.
102
CHAPTER 5: FINDINGS AND RECOMMENDATION
103
Findings problems: Financial advisory businesses in India are growing day by day in
market. In this volatile market main problem is getting clients. Because there are so
many financial planners are available in the market. Hurdles are getting data from client;
make them understand the importance of the financial planning, goals analysis, risk
analysis in market for their future. After taking the interviews a list of problems in IFA
businesses in India can be drawn.
 Lack of Education
 Lack of awareness among clients to get regular updates from Financial planners
 More good bonding required in between business and clients
 Clear explanation is required
 Good management is required
 Need to remove clients ’psychological barriers
 Improved techniques are required
 Good financial literacy rate is required
 More knowledge is required
 Proper system is required
 Goals should be cleared
 Proper planning is required
 Good communication is needed
 Too many rules and regulation from sebi may divert clients mind
 Lack of seriousness etc.
Recommendation:
 Make one to one meeting with clients

 Try to increase their knowledge and curiosity by doing more workshop
 Maintain an user friendly communication
 Use more tools like where all the functions are available for financial planning.
 Use the knowledge to encourage the clients to take interest in financial
planning
 Charge reasonably
 Guide them always
 Up-to-date yourself always with training and programs by software
companies.
 Built Trust ,ignore annoyances ,respect your clients feelings , give qualitative
services for your clients.
104
CHAPTER 6: CONCLUSION
105
Conclusion: This research study focused on the problems in financial advisory
businesses in India. This study covered only 70 CFPS in Bangalore especially south
part. It identified that acquiring clients and getting data from them is the biggest hurdle.
In my hypothetical analysis it was proven that there was a big gap in between expected
clients and the actual client in the volatile market. First meeting almost everyone is
interested to get financial planning from a CFP. But due to lack of knowledge, lack of
seriousness ,psychological barriers people are not ready to move forward. So
convincing a client for financial planning , getting data, getting fees from them are the
difficult parts in IFA businesses. Next is generating revenue as because everyone
wants a free advice. So people are not ready to pay for financial planning. Next is they
do not understand the importance of financial planning in their life. Other big hurdles is
financial planning tools. Here the problem is Financial planners are not ready to
implement any new tools in their analysis, because they are not confident about the
techniques, not having too many clients, so it seems that this investment is
unnecessary. Technical methodology and knowledge based methods are not
interdependent. They are the choices for financial planners. But, introducing new
techniques may easy their job and they can easily convince people for financial
planning. It can give a hard competition to the financial planners but it will help to grow
Financial advisory businesses in India more technically and more systematically.
106
Referances:
 Google
 www.pulselab .com
 Study materials from pulse labs
 Survey and guidance from the financial planners
 Filling up the questionnaire
Encloser: The Questionnaire

Personal Details:
Name:
Address:
Contact no :
Mail Id:
Name of the company and website:
1) What is the percentage of your client based on who will be inclined to receive
their financial reports?
0-10% 10%- 20%
20% -30% 30% - 50%
Above 50%
2) What percentage of your clients has undergone a financial planning process?

0-10% 10%- 20%
20% -30% 30% - 50%
Above 50%
107
3) What, according to you are the difficulties in acquiring a client for financial
planning?
a) Convincing client
b) b)Importance of financial plan
4) What are the hurdles faced by you in the financial planning process?
(Rank from 1 to 3)
● Collection of data
● Interpretation and co relating of data to make different reports
● Collection or getting fees from the client
5)How much/many time and visits is usually needed to complete a comprehensive

financial plan?
a)5hrs/ 1 visit b) 10 hrs /2visit
c) 15 hrs /3visit d )more than 15hrs/4vist
6) What would be the report structure and presentation mode?
a) Hard copy b) Soft copy PDF

c) PPT and presenting d) One to one
e) Online presentation f) Not required
7)How do you price your planning proposition?
What are the charges?
a) 0 – 5000,
b) 5000- 10000,
c) 10000- 15000
108
d) Above 15000
8)Do you charge upfront fee for making financial planning? If no
How do you generate revenue from those clients?
a) Commission from fund house

b) Yearly maintenance fee
c) Do it for free of cost
9) Which tool do you use for making financial plan for your clients? And please
tell us why?
● Pulse Lab
● Fiserv
● Omnimax
● Opti- Plan
● Microsoft Excel
………………………………………………………………………………………………
………………………………………………………………………………...
10) Which risk profiling tools you use to do risk profiling for your clients?
● Self-made Questionnaires
● Finametrica Software
● Any mutual fund platform risk profiler
● pulse lab
109
11) How do you compute the risk tolerance of your client?
a) Composite score
b) Different scores for risk tolerance & capacity
12) Which of the following helps you to form an investment perspective for your clients?
a) AMC report/ Sales pitch
b) External sale side research
c) Past return of the funds
d) Rating Agencies
e) Fund manager
f) Choice of the investment
g) Others, if any
13) What is the research methodology you adopt to do asset allocation for your clients?
● Based on age/static
● Goal based strategic asset allocation
● Dynamic asset allocation
● Mix of strategic & dynamic
14) How do you maintain the risk profiler for your clients?
1. Hard copy
2. Emails
3. Voice Recorders
15) How do you maintain KYC documents and investment advices for your clients?
1. Hard copy
2. Emails
3. Voice Recorders
110
16) What, according to you are the important challenges faced by an IFA today? Please rank
the following according to your perception.
Challenges Rank (1 to 7)
Limited access to special or exclusive products
Geographical constraints
Over dependence on transaction based income
Maintenance of Efficient & cost effective back office support
Client Acquisition & Service
Volatile Markets & Irrational client behaviour
Access to quality research on products
17)If you were to list critical requirements/gaps on your practice, what would that be?
……………………………………………………………………………………
……………………………………………………………………………….
111

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PROJECT REPORT: MARKET RESEARCH ON

FINANCIALPLANNING, RESEARCH PROCESSESS & COMPLIANCE

(AT Pulse Labs Research & Technology Solutions BANGALORE)

(Project submitted in partial fulfillment of the course requirement of post

SUBMITTED BY EXTERNAL GUIDE INTERNAL GUIDE

Gairiaka Mukhopadhyay Manish Sarawagi Prof Dr. R.K.Vijay Sarathy

ROLL NO: PGDM 1411 Marketing Head, Director, DSBS

Co founder, Director,Pulse Lab

DayanandaSagar Business School

Shavige Malleswara Hills, Kumaraswamy Layout

This is to certify that the report titled “MARKET RESEARCH ON

Dr. Prof. R.K. Vijay Sarthy

I hereby declare that the report/ study titled “MARKET RESEARCH ON

Date: GAIRIKA MUKHOPADHYAY

“Acknowledgement is an art through which one can make a simple expression of

I thank this opportunity to express my gratitude to all of them who helped me to

I express my gratitude to my faculty guide Prof. Dr. R.K.Vijay Sarthy of

I am very thankful to Mr. Manish Sarawagi , Marketing Head at Pulse Lab

A Special appreciative “Thank You” in accorded to all staff of Pulse Lab

2 Research Design 16-24

3 Profile of Respondence 25-26

4 Data Analysis 27-101

1.1 Topic: A market study on use of technology in IFA in the

Name of the software

• “Knowledge – Edge – Learn – Earn” (An integrated and end to end

1.2 The Market Pulse:

1.3 The Business Pulse…

Knowledge – Edge – Learn – Earn.

1.5 About Pulse lab:

``Established as a Competent, Respected

and an Innovative enterprise in the financial advisory space’’

In the process, we will always be:

 Truly independent and product agnostic.

 Thought leaders and adaptive in finance and technology.

Demonstrating strategic value in our engagements and solution.

 Financial advisory profession in India is moving up its value chain from

• Financial Planner – how it works

• Monte Carlo simulations for retirement and other financial goals.

 for all financial goals.

• Interest rate sensitivity analysis, loan throttling, and goal programming.

• “For each goal there are four cash flow statements

• There is a summary of goals report ( putting all goals together)

• The cash flow statement is comprised of Goals .

Risk Profiler – how it works

Fund Analyzer – key differentiators

• Drill down of funds based on numerous qualitative and quantitative conditions.

• Work Management – key differentiators

• An intuitive calendar for effective planning.

• Your entire client engagement history at one click.

• Document management system with easy storage and retrieval process.

PULSE LAB providing Financial Software withmore than funds related

1.6 Scope of study:

A study on use of technology By IFA in the Business.

To Study how there revenue is based on financial plan.

To study do financial planner have their Website Running?

To study the various challenges faced by IFAs in Advisory Business.

To study there expenses in various technology platform

To study are they effective in accruing client through digital media.

To study the Value Add / Product / Research Support for IFA ‘s

2.1 Research Methodology:

The research methodology is the systematic, theoretical analysis of the procedures

Research methodology encompasses concepts such as research designs, target