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    111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111

    11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111ARESEARCH REPORTONINVESTMENT PATTERN OF ICICI PRUDENTIAL LIFE INSURANCECOMPANYATICICI PRUDENTIAL LIFE INSURANCE

    SUBMITTED TOShree Leuva Patel Trust M.B.A. Mahila CollegeAMRELI

    SUBMITTED BYMegha Bakhai(IV SEM, FINANCE)Year: 2004-06GUIDED BY

    Dr.Vijay Pithadia

    AFFILIATED TOSAURASHTRA UNIVERSITY, RAJKOT

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    Certificate

    DECLARATION

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    I, Megha K. Bakhai, studying in MBA (IV Sem.) of Shree Leuva Patel

    Trust MBA Mahila College, Amreli hereby declare that I have completed this projecton INVESTMENT PATTERNS OF ICICI PRUDENTIAL LIFE INSURANCE inthe academic year 2004-06 as per the requirements of the SAURASHTRA

    UNIVERSITY as a part of MASTER IN BUSINESS ADMINISTRATION (MBA)programme. The information presented through this project is true and original to thebest of my knowledge.

    Here I assure you that Project work has not been presented to anyuniversity or institute towards the degree/diploma fellowship or any other similar title.

    Date: - Sign. :-

    ACKNOWLEDGEMENT

    This project is the culmination of a study into the wide gamut of

    activities carried on in the domain of Insurance especially INVESTMENTPATTERN OF ICICI PRUDNTIAL LIFE INSURANCE in India. This projectwould just not have been complete without the valuable contributions from various

    people whom I have interacted with in the course of its completion. I would like toexpress my sincere gratitude to all those people who have in their own sweet wayshelped me to complete this project.

    I begin by thanking my Project Guide and my Guru, Mr. MadhavUpadhyaya and Mr. Jignesh Bhatt, the treasure trove of information who has ralliedstrongly behind me to see me complete this project. Without him this project wouldhave remained just an idea.

    My parents who have always stood by me as solid as a rock; it is their

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    faith in me that has seen me complete this project on time. My Family who helped mein whatever small ways possible .The list goes on

    I wish thanks to all those people who have lent me a helping hand infinishing this project, whose names are too numerous to be mentioned here. My

    College Professors

    Dr. Vijay PithadiaMr. Vishal PatidarMr. Bhargav Pandya

    who have always been my guiding lights .

    Yours sincerely,

    (Megha Bakhai)

    SHREE AMRELI JILLA LEUVA PATEL CHARITABLE TURST SURATPLACE :- SMT. SHANTABEN HARIBHAI GAJERA SHAIKSHANIK SANKUL,Chakkargadh Road, Amreli-365 601.

    PRINCIPALS RECOMMENDATION

    TO,The RegistrarSaurastra UniversityRajkot.

    Subject : MBA Final Training Project Report

    Respected Sir,

    I am recommending the Final Training Project Reportentitled_______________________________________________________________

    _____Prepared by __________________________________At_____________________________________________________As the partial

    fulfillment of the University requirement for the award of MBA degree of Saurastra

    University, Rajkot.

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    Date :- Thanking You,

    Place :- Amreli Yours faithfully,

    Principal

    SHREE AMRELI JILLA LEUVA PATEL CHARITABLE TURST SURATPLACE :- SMT. SHANTABEN HARIBHAI GAJERA SHAIKSHANIK SANKUL,Chakkargadh Road, Amreli-365 601.

    DIRECTORS RECOMMENDATION

    TO,The RegistrarSaurastra UniversityRajkot.

    Subject : MBA Final Training Project Report

    Respected Sir,

    I am recommending the Final Training Project Reportentitled_______________________________________________________________

    _____Prepared by __________________________________At

    _____________________________________________________As the partialfulfillment of the University requirement for the award of MBA degree of SaurastraUniversity, Rajkot.

    Date :- Thanking You,

    Place :- Amreli Yours faithfully,

    Director

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    SHREE AMRELI JILLA LEUVA PATEL CHARITABLE TURST SURATPLACE :- SMT. SHANTABEN HARIBHAI GAJERA SHAIKSHANIK SANKUL,Chakkargadh Road, Amreli-365 601.

    GUIDES CERTIFICATE

    This is to certify that ________________________________ Thestudent of MBA has carried out the project work as per the syllabus of SaurastraUniversity. She prepared this Final Training Project Report on

    _____________________________________________________Under myGuidance and her contribution in making this report during the academic year

    ____________ is highly appreciated.

    To the best of my knowledge the details presented by her areoriginal in nature and have not been copied from any other source. Also this Reporthas not been submitted earlier for the award of any degree or diploma in SaurastraUniversity or any other University.

    Guides Name & Sign.

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    companies like LIC, GIC etc. with the opening up of the economy, a score of MNCshave come in the market with Indian business houses resulting in client friendly,healthy competition and rivalry in the insurance sector. Good old days have gone,where only LIC agents were seen knocking doors of potential clients.

    The policies floated by the government insurance companies whereprimarily meant to cover risk but in todays market, the policies are havingpredominantly a major part of investment option with high rate of return.

    One of the major challenge for all private companies is to develop astrong sales team, since LIC who enjoyed a monopoly in this sector before it wasopened for private players has a network of 2,50,000 agents.

    India at a glance

    Population : 1.3 Billion

    Economy : 5th largest in the world in terms of purchasing power parity (PPP)

    Premium as a percentage of GDP :1.77 %

    GDP growth rate : Over 7.5% per year on an average for the last decade

    Saving rate : Around 30% of GDP

    Estimated middle class population : 300 Million

    Insured population : 70 million only

    Estimated business (2008) : $6.6 Billion

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    REASONS FOR SELECTING AN INSURANCE SECTOR FOR RESEARCH

    Life Insurance Sector acts as a backbone of any economy. Thissector polls large funds from masses and then invests in the infrastructure projects aswell as other long term projects, which will generate a regular income flow in thecoming years. Traditionally life insurance was taken just as a security product butnow it is gaining importance as an investment product. Hence, now if you want to selllife insurance product to anyone, you have to analyze his/her life stage, risk

    preference, priorities and then suggest the appropriate product to that investor.

    The insurance sector needs a great deal of financial planning,knowledge, as well as knowledge about other financial products and their currentmarkets so that we can compare those products with the insurance product andconvince the client. Insurance companies also have to manage their investment in

    such a way that the principal amount should not erode, and the investor should getassured returns which the company has promised. This involves a great deal ofknowledge about portfolio management and hedging of risk. Thus this would give usgreat exposure to financial markets as well as the intricacies of different financialinstitutions, how they work and what difficulties they face.

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    What Is Insurance ?

    Being a social animal and risk averse, man always tries to reduce

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    risk. An age-old method of sharing of risk through economic cooperation led to thedevelopment of the concept of insurance.

    Insurance is not necessarily an investment from which one expects toget one's money back. Nor is it gambling. A gambler takes risks, while insurance

    offers protection against risks that already exist. Insurance is a way to share risk withothers. Since ancient times, communities have pooled some of their resources to helpindividuals who suffer loss.

    Insurance is a contract between two parties whereby one party calledinsurer undertakes in exchange for a fixed sum called premiums, to pay the other

    party called insured a fixed amount of money on the happening of a certain event.

    Insurance is a protection against financial loss arising on thehappening of an unexpected event. Insurance companies collect premiums to providefor this protection. A loss is paid out of the premiums collected from the insuring

    public and the Insurance Companies act as trustees to the amount collected.

    For example, in a Life Policy, by paying a premium to the Insurer, thefamily of the insured person receives a fixed compensation on the death of theinsured.

    Similarly, in a car insurance, in the event of the car meeting with anaccident, the insured receives the compensation to the extent of damage. It is a system

    by which the losses suffered by a few are spread over many, e