Study on Financial Planning for Individual Investors

Abstract

This study analyzes the financial planning behavior of individual investors in Nagpur, with an especially greater focus on salaried employees. The present study explores the common preference for traditional investment options such as bank fixed deposits and post office savings schemes, as opposed to market-linked instruments. The goal is to identify key factors influencing investment options, assess the level of awareness and attitudes toward personal financial planning, and uncover gaps between declared financial objectives and actual planning practices. Data was collected from a sample of 200 participants using a well-structured questionnaire administered via Google Forms. Three main objectives have been formulated: knowledge of the financial planning landscape of individuals, the role of financial literacy, and analysis of problems in financial planning. The findings reveal a gap in awareness levels of financial planning; hence targeted education is the requirement to improve investment decision-making among Indian investors. The study contributes to an understanding of personal financial planning, identifies areas of further research, and suggests a need for stronger financial literacy programs to absorb the shocks related to poor financial planning and eventual financial crises.