comparative analysis a project report
TRANSCRIPT
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A PROJECT REPORT
ON
COMPARATIVE ANALYSIS OF ULIPS OF MAJOR COMPANIES
AND WITH MUTUAL FUND IN BAREILLY REGION
SUBMITTED TOWARDS THE PARTIAL FULFILLMENT
OF
POST GRADUATE DIPLOMA IN
BUSINESS MANAGEMENT
(APPROVED BY AICTE, GOVT OF INDIA)
(EQUIVALENT TO MBA)
ACCADEMIC SESSION
(2007-2009)
External Guide: Submitted By:-
Mr.Ankur Vij Siddharth Agarwal
BDM BM 07149
INTERNAL GUIDE
Prof. Anagha Shukre
Faculty Ims,Ghaziabad
INSTITUTE OF MANAGEMENT STUDIES
C-238, BULANDSHAR ROAD,
LAL QUAN, G.T.ROAD
GHAZIABAD-201009
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ACKNOWLEDGEMENT
I express my profound gratitude to Mr. Ankur Vij BDM, who assigned me
as a Summer Trainee in HDFC STANDARD LIFE. I want to give my
sincere thanks to his kind advice and guidance that had made my project
successful. Many of the sound advices have been well taken by me and it is
largely due to his patience that I was able to achieve my goals successfully.
I am also grateful to DR. R. K. Bhardwaj Director, Institute of
Management Studies, Ghaziabad, Mr. Rohit Seghal Head ,Corporate
Resource Centre and Mr. Rajnee Khare Senior Manager, Corporate Affairs-
Institute of Management Studies, Ghaziabad and Prof. Anagha Shukre who
supported a lot and gave me the permission of Summer Training in HDFC
STANDARD LIFE.
Also I would like to give regards to my Parents, seniors, friends who have in
some way helped me in completing this project.
SIDDHARTH AGARWAL
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TO WHOMSOEVER IT MAY CONCERN
This is to certify that Mr. SIDDHARTH AGARWAL student of PGDBM
(2007-2009) I.M.S Ghaziabad has done his live summer training project
under my guidance and supervision from 20th April2008 to 20th 2008.
He has completed the project titled Comparative analysis of ULIPS of
major companies with mutual funds in Bareilly region towards the
partial fulfillment of PGDBM under my supervision.
During his project he was found to be very sincere and attentive to small
details whatsoever told to him.
I wish him luck and success in future.
Under the guidance of:
Prof. Anagha Shukre
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PREFACE
Man has found out himself many things to make himself and his near dear ones happy.Insurance is one such invention of man. Insurance is many splendid thing. It is not justthe reluctant entry and the periodical reminders for paying the premium and the last
receipt of the claim money which may look large or a mere pittance depending uponwhether the policy was in force earning handsome bonus or had been languishing in astate of suspended animation. insurance is a wonderful world of mortality rates, utmostgood faith, medical examinations with ECG and treadmill exercises, bonuses and noclaim discounts and a host of other science and arts which the insurance people learn inorder to provide what they call financial security and peace of mind which no otherinvention of man can match.
Indian older population may double in 20 years and economic development andwidespread migration of young adults are disrupting the traditional support for olderpeople but ironically economy is not growing in the same folds. These changes arealarming, as alternative ways of investing the pension funds for meeting the requirements
of old age people are not yet evolving. The main objective of pension is to ensure thatentire working population has secured an adequate income during his /her retired life andthereafter for the lifetime of the spouse/dependents.
It is a universal truth that people do not willingly accept and adopt the good thingsof life. Through the universal advantage of insurance are self-evident to a prudent person.Still a great deal of persuasion, explanation and at times pressurization is necessary tomake customer centric and this is the matter being translated by new companies.The following research work takes a look on such persuasion of the insurance companiesand the way they deal with people regarding the support of life in old age- The PensionPlans.
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CONTENT
CHAPTER1:-
Brief History8How big is the insurance market..9Indian Scenario9Need for insurance...9What is Human Life Value (HLV)..9What is a contract of insurance..10Classification of insurance business...10
CHAPETR2:-
The Insurance Players..12Types of Plan...12Conventional12
ULIP13CHAPTER3:-
Profile...13HDFC Standard Life Insurance Co. History14Insurance Sector...14
CHAPTER4:-
Concept of Unit Linked.14ULIP of HDFC..14ULIP with insurance.15ULIP as pure investment..16FMC a small but handy tool.17
CHAPETR5:-
INTRODUCTION TO MUTUAL FUND18
Mutual Funds Concept...19
Net asset value (NAV) of a scheme..20
The intelligent investor's seven rules.21
Measuring performance of Mutual Fund...21
Risks involved in investing in Mutual Funds24
Types of Mutual Fund...25
Benefits of Investing In Mutual Funds.30
Disadvantages of Mutual Funds33
Scope for Development of Mutual Fund Business in India..34
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.CHAPETR6Objectives.34Research Methodology....35
Limitation.....51Conclusion.......51
Recommendation & Suggestions....517. Appendix.....538. Bibliography.......57
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Insurance Sector
The practice of insurance in the world is quite old infect. How ever, life insurancebusiness, as it is known today, is a much later development. It evolved from the great
transformation in life, which began with the decline of the agrarian society in the westerncountries in the 19th century.
Industrialization with its cities, factories, cash economy and an urban savingclass set the stage for life insurance as a large scale national institution. It can truly bethat life insurance is a product of modern industry. Growth of life insurance Company inany country will illustrate introduced modern life insurance business didnt make muchheadway. The business started taking its deeper roots only when in the late 19 th centuryIndia insurance companies appeared on the scenes and started accepting India liesfreely on the same terms as European lives in India. The growth of India life insurancebusiness continued to remain restricted till the Swedish movement gathered momentum.The business passed through the period of ups and downs with the political and economic
situation in the country.
Need for Association
With the rise in the number of Indian life insurance companies occasioned by the growthin the national spirit as a result of the independent movement a need was felt by thecompanies for an organization to assist them in solving the problems faced by them. Witha view to meeting this need and also to providing a representative body for expression ofa common viewpoint of Indian insurance before the government regarding insurancelegislation and Indian life Assurance offices association was established in 1928. Theassociation played companies forum for expression of representative views on insuranceand taxation legislation and imparting insurance education.
Nationalization
Even during days of the freedom struggle there was occasional demand fornationalization of life insurance industry. The demand naturally gathers mare momentumafter independence. Mismanagement had lead to liquidation of as many as 25 lifeinsurance companies in the decade after independence. Another 25 insurance companieshad during the same period so frittered away their resources that their business had to betransferred to other companies. All these cost financial losses and consequent suffering toseveral policyholders who had entrusted their hard earned saving to the care of thecompany management. This misuse of power, position and privilege by these companiesin the private sector was one of the most compelling reasons that influenced the decisionof the government of India to nationalize the life insurance industry in 1956. The lifeinsurance industry in India had to be geared up for raising resources for executionnational programs. One of the objectives of the national plans was to build a pay welfarestate. It was therefore, essential that benefits of life insurance were made available toevery family in the country and that the business should be conducted with utmosteconomy by the management acting in a spirit of trusteeship to enable maximization of
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the peoples saving that could be analyzed through the life insurance into thedevelopment programs.
Objectives of nationalization:
The decision of the Government of India to nationalize life insurance industry wasimplemented by the passage of the life insurance Corporation Act, 1956, by Parliament.The objectives of nationalization of life insurance industry that emerged out of thediscussion and speeches in the parliament in the time passage of the act were:Spread of message of life insurance as far and wide as possible reaching out beyond themore advanced urban areas well into hitherto neglected areas.
Effective mobilization of the peoples savings.
Complete security to policyholders.
Prompt and efficient services to the policyholders.
Conducting of the business with the utmost economy and with the full realizationthat the money. Belonged to the policyholders.
Investment of funds in such a way as to secure maximum yield consistent withsafety of capital.
Economic premium rates.
Development of a dynamic and vigorous organization under a managementconducted in sprit of Trusteeship.
Formulation of scheme of insurance to suit different section of the community.
Brief History
The insurance sector in India dates back to 1818, when Oriental Life Insurance Companylike Bombay life Assurance Company, in 1823 and Tritons Insurance Company, forGeneral Insurance, in 1850 were incorporated. Insurance ACT was passed in 1928 but itwas subsequently reviewed and comprehensive legislation was enacted in 1938.The nationalization of life insurance business took place in 1956 when 245 Indian andForeign insurance societies were first merged and then nationalized. It paved the waytowards the establishment of life insurance Corporation (LIC) and since then it hasenjoyed a monopoly over the life insurance business in India. General Insurance business.Subsequently in 1973, non-life insurance business was nationalized and the GeneralInsurance Business (Nationalization) ACT, 1972 was promulgated. The GeneralInsurance Corporation (GIC) in its present form was incorporated in 1972 and maintainsa very strong hold over the non-life insurance business in India. Due to concerns ofrelatively low spread of insurance in the country.
The efficient and quality functioning of the Public Sector Insurance Companies.The untapped potential for mobilizing long-term contractual savings funds forinfrastructure.The (Congress) government set up Insurance set u an Insurance Reforms committee inApril 1993. The committee submitted its report in January 1994, recommended a phasedprogram of liberalization, and called for private sector entry and restructuring of the LICand GIC.
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How big is the insurance market?
Insurance is a Rs.400 billion business in India, and together with banking services addsabout 7% to India's Gap. Gross premium collection is about 2% of Gap and has beengrowing by 15-20% per annum. India also has the highest number of life insurance
policies in force in the world, and total investible funds with the LIC are almost 8% ofGDP. Yet more than three-fourths of India's insurable population has no life insurance orpension cover. Health insurance of any kind is negligible and other forms of non-lifeinsurance are much below international standards.
Indian Scenario :
Unfortunately the concept of insurance is not popular in our country .As per the latestestimates, the total premium income generated by life and general insurance in India isestimated at around a meager 1.95% of GDP. However India's share of world insurancemarket has shown an increase of 10% from 0.31% in 2004-2005 to 0.34% in 2005-2006
India's market share in the life insurance business showed a real growth of 11 % therebyout performing the global average of 7.7% Non-life business grew by 3.1% against globalaverage of 0.20%. In India insurance spending per capita was among the lowest in theworld at $7.6 compared to $7 in the previous year. Amongst the emerging economies,India is one of the least insured countries but the potential for further growth is phenomenal, as a significant portion of its population is in services and the lifeexpectancy has also increased over the years.
Need for insurance:
Modern life insurance caters to multiple needs for insurance, which can be broadly
classified as under: Cash and income needs on an immediately following death.
Family income needs.
Income needs of a widow on the death of her husband.
Cash and income needs of a husband on the death of his wife.
Retirement income needs.
Education needs.
Business needs
What is Human Life Value (HLV)?
Human life value is:- Capitalized value of the net earnings Present value of the total income lost to the family in the event death.
These points will be more cleared with this example:- Suppose an individual earns Rs. 10000/month. The personal expense is Rs.2000/month Therefore the income provided to his family is Rs. 8000/month.
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The annual income provided to his family works out to Rs. 96000 Now if he were not to earn it for them , the family would have to
Rs.1600000 in a bank so that they get Rs. 96000 yearly at 6% interest.(96000*100/6)
Therefore the HLV of the person is Rs. 1600000.
Ps. Note that we have not taken into account the future income growth of the person.Hence this is not the exact human life value but only a representation to give thecustomer a fair idea of how it works.
What is a contract of insurance?
A contract of insurance is a contract of utmost good faith, technically known as uberrimafides. The doctrine of disclosing all material facts is embodied in this important principalthat applies to all forms of insurance. The purpose, who is one of the parties to thecontract, is presumed to have means of knowledge that are not accessible to the
corporation who is the other party to the contract. Therefore, the purpose is bound to tellthe insurer everything affecting the judgment of the insurer. In all the contracts ofinsurance the proposes is bound to make full disclosure of all material facts and notmerely, those which he thinks material Misrepresentation non-disclosure or fraud in anydocument leading to the acceptance of the risk automatically discharges the corporationfrom all liability under the contract. Although Section 45 of the Insurance Act, 1938provides that no policy can be called in question after a period of two years from the dateof its issue on the ground that any statement in proposal or a related document was falseor inaccurate (making the policy indisputable), This provision is not applicable if thecorporation can prove that misrepresentation or non- disclosure was on a material factand was fraudulently made and that the policyholder knew at the time that statement he
made was false. It is, therefore, in the interest of the would be policyholder to disclose allthe material facts to the corporation to avoid any complication when the claim arises. It isequally obligatory on an agent to see that the assured doesn't obtain the contract by meansof untrue representation or concealment in any respect. It is the duty that the agent owesboth to his client and to the corporation.
Classification of insurance business:
The insurance is broadly classified as:1 .Life insurance business2. Non-life insurance business
Life insurance business:
It is the business of effecting contracts of insurances upon human life including anycontract whereby the payment of money is assured on death or on the happening of anycontingency to the dependent on human life and any contract which is subject to thepayment of premiums for a term and shall be deemed to include:
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The granting disability and double and triple indemnity accident benefits, if so providedin the contract of insurance.The granting of annuities of human life. The granting of super-annuation allowance andannuities payable out of any fund applicable solely to the relief and maintenance of the person engaged or who have been engaged in any particular profession, trade or
employment or of the dependents of such persons.
Non life insurance business :
Conventional classification of insurance business:1. Fire insurance2. Marine insurance3. Miscellaneous insurance (accident)
Modern classification of general insurance1. Insurance of person
2. Insurance of property3. Insurance of interest4. Insurance of liability
ROLE OF INSURANCE REGULATORY AND DEVLOPMENT AUTHORITY
(IRDA) ACT, 1999
An act to provide for the establishment of an authority to protect the interests ofpolicyholders, to regulate, to promote and ensure orderly growth of the insurance industryand for matters connected therewith for incidental thereto and further to amend, the LifeInsurance Corporation Act, 1956 and the insurance Act, 1938 and General InsuranceBusiness Act 1972.Spread Life Insurance much more widely and in particular to the rural areas and to thesocially and economically backward classes with a view to reaching all insurable personsin .the country and providing them adequate financial cover against death at a reasonableCost.Maximize mobilization of people's savings by making insurance linked savingsadequately attractive.Bear in mind, in the investment of funds, the primary obligation to its policyholders,whose money it holds in trust, without losing sight of the interest of the; community as awhole; the funds to be deployed to the best advantage of the investors as well as thecommunity as a whole, keeping in view national priorities and obligations of attractivereturn.Conduct business with utmost economy and with the full realization that the moneysbelong to: the policyholders.Act as trustees of the insured public in their individual and collective capacities.Meet the various life insurance needs of the community that would arise in the changingsocial and economic environment.Involve all people working in the Corporation to the best of their capability in furtheringthe interests of the insured public by providing efficient service with courtesy.
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Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with ded1cat1on towardsachievement of Corporate Objective.
The Insurance Players
HDFC Standard Life Insurance Company Limited Birla Sun Life Insurance Company Limited TATA AIG Life Insurance Company Limited Max New York Life Insurance Company Limited Kotak Mahindra Old Mutual Life Insurance Limited SBI Cardiff Life Insurance Company Limited ING Vysya Life Insurance Company Limited Bajaj Allianz Life Insurance Company Limited
ICICI Prudential Life Insurance Company Limited MetLife Life Insurance Company Limited Aviva Life Insurance Company Limited Reliance Life Insurance Company Limited Sahara India Life Insurance Limited Shriram Life Insurance Company Limited
Types of Plan..
Conventional
ULIP
Conventional:-
Conventional plans are those plans in which returns are known and are fixed. Example: -Childrens Plan. In this plan the customer has knows how much return he will get aftermaturity or any miss happening occurs. Here risk is low and returns are also low, becauseit is not dependent on the market risk and is a rigid policy.
It is seen that people also invest less in such type of policies as returns are lessand there is a compulsion attached is of compulsory premium submission till the policymatures.Illustration: -Premium for 10 yrs is 2000020000+20000+20000+20000+20000+20000+20000+20000+20000+20000= 2lksReturn described was 2.5 timesSo the customer will get approx 5 lkhs after deducting all charges.
Insurance is always of the parent and beneficiary is the child. There are 2 types ofloss that occurs on any type of miss happening i.e. emotional loss and monetary loss
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company cant full fill emotional loss but can help in monetary loss by giving the 2lksRs. At the miss happening and will give the rest premium by its own and will give thebonus at maturity again to the child.
ULIP
ULIP stands for UNIT LINK INSURANCE PLAN. As it is said higher risk higherreturn
Profile
The Housing Development Finance Corporation Limited (HDFC) was amongst the firstto receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector, as part of the RBI's liberalization of the Indian BankingIndustry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC BankLimited', with its registered office in Mumbai, India. HDFC Bank commenced operationsas a Scheduled Commercial Bank in January 1995.
Capital Structure
The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-upcapital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank'sequity and about 19.4% of the equity is held by the ADS Depository (in respect of the
bank's American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is heldby Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders.The shares are listed on. The Stock Exchange, Mumbai and the National Stock Exchange.The bank's American Depository Shares are listed on the New York Stock Exchange(NYSE) under the symbol "HDB".
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HDFC Standard Life Insurance Co. History:
HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august 2000. It is ajoint venture between Housing Development Finance Corporation Limited (HDFC Ltd.)India and UK based Standard Life Company. Both the joint venture partners being one of
the leaders in their respective areas came together in this 81.4:18.6 joint venture to formHDFC Standard Life Insurance Company Limited.
The MD and CEO of HDFC Standard Life Mr. Deepak Satwalekar, has given thecompany new directions and has helped the company achieve the status it currentlyenjoys. HDFC Standard Life brings to you a whole range of insurance solutions be itgroup or individual or NAV services for corporations, they can be easily customized asper specific needs.
The Bancassurance partners of HDFC Standard Life Insurance Co Ltd are HDFC, HDFCBank India Limited, Union Bank of India, Indian Bank, Bank of Baroda, Saraswat Bank
and Bajaj Capital.
Concept of Unit Linked
Unit Linked Policies are unbundled
Unit link polices are separate identification of part investment element, expenseadministration charges and benefit charges shown separately.
Unit Linked Policies make use of Unit linked funds
Investment housed in funds divided in units client has choice of funds.
Unit Linked Policies are linked
Value of policy linked to net assets investment risk and rewards transferred from theinsurer to the client.
Unit Linked Policies have explicit charges
It is the consequence of unbundling. Charges can be subjected to be changed howevermortality remains unchanged during the tenure of policy.
ULIP of HDFC
ULIP with insurance
ULIP as pure investment
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ULIP with insurance
Unit link young star plus II
As a parent, priority is childrens future and being able to meet their dreams andaspiration. Today, providing a good education, establishing a professional career or evena modest wedding is expensive. Costs are increasing fast. Just imagine how much youwill need when your children take these important steps in life.
HDSFC SL Unit Link Young Star Plus II provides a medium through a parent canhelp there children in building up a secured financial future.
Steps to own a plan
Step 1: this is the premium which will continue to pay each year oh the policy. The min
regular premium is Rs.12000 per year. Which can be paid yearly, monthly,quarterly or half yearly?Step 2: sum assured minimum 5 times and maximum 40 times.Step 3: can choose double or triple benefit.
In case of unfortunate demises during the policy termDouble Benefit Company will pay 100% of the entire future regular
premiums. And sum assured will be given to the beneficiaryTriple Benefit Company will give 50%of the premium to the beneficiary and 50%as regular premium. And the sum assured will be given to the beneficiary.
Surrender
In the first five years.Surrender is not possible, after 5 years surrender value will be the value of units
of the plan, there is no surrender charge after 5years.
Charges
Fund management charge(FMC)
HDFC SL enjoys the lowest FMC rates across the industry i.e. 1.25% of fund value.
Allocation charge
1st year 60%2nd year and onward 1%
Allocation how ever increases with increase in premium size thus giving better returns toHNI (high network individual).
Policy administration charge:
60rs per month
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All charges other than allocation are being charged on daily basis on the cancellation ofunits.
Tax benefits (based on current tax-law)
You will be eligible for tax benefits under section 80ccc of the income tax act, 1961.Under Section 80ccc, you can save up to 33,990 from the tax every year.(calculated onthe highest tax bracket) as premium up to a maximum of Rs. 1, 00,000 are allowed as adeduction from your taxable income.The above mentioned tax benefits are subject to change in tax law.
ULIP as pure investment
to maximize investment returns. HDFC invest the premium of the customer in the chosenfund in the proportion that he/she specifies. At the end of the policy term, he /she willreive the accumulated value of the fund, ehich will provide pension income.
In the event of unfortunate demises during the policy term, nominee will receive acash lump sum to help him or her manage the retirement years.All insurance plans are subjected to different risk factors.
Steps to own plan
Step 1 Choose the retirement age
Step 2 Choose the premium wish to invest based on retirement needs
Step 3 Choose the investment fund or funds he/she desire
Step 1: select any age between 50 years and 75 years.Step 2: this is the premium which will continue to pay each year oh the policy. The min
regular premium is Rs.10000 per year. Which can be paid yearly, monthly,quarterly or half yearly?
Investor can opt for combination of 6 funds or 1 fund depending upon the need ofinvestor and his ability to take risk.
Accessing Customers Money:
a) On vestingPolicy matures at the end of the policy term customer have chosen and on chosenretirement date, he will get the value of units in policy as per prevailing Govt.regulations
He/She can take 1/3 if the funds value as a tax-free cash lump sum andrest must be converted to an annuity.
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He/She can but the annuity from the company or any other insurer.
Customer is allowed to alter vesting date subject to above age at vestingand policy term limits.
b) On deathIn case of unfortunate demises before the end of policy term, nominee will receive
the unit fund value, policy will terminate there after.c) On surrender
In the first three years.Surrender is not possible, after 3 years surrender value will be the value of unitsof the plan, there is no surrender charge after 3 years.
Charges
Fund management charge(FMC)
HDFC SL enjoys the lowest FMC rates across the industry i.e. .8% of fund vaue.
Allocation charge
1st year 25%2nd year 25%3rd and onward 1%
Allocation how ever increases with increase in premium size thus giving better returns toHNI(high network individual).
Policy administration charge:
20rs per month
All charges other than allocation are being charged on daily basis on the cancellation ofunits.
Tax benefits (based on current tax-law)
You will be eligible for tax benefits under section 80ccc of the income tax act, 1961.Under Section 80ccc, you can save up to 33,990 from the tax every year.(calculated onthe highest tax bracket) as premium up to a maximum of rs. 1, 00,000 are allowed as adeduction from your taxable income.The above mentioned tax benefits are subject to change in tax law.
FMC a small but handy tool
FMC stands forFund Management Charges. This is the tool which is vibrantly used bythe company to take charges. FMC is applied on the fund while calculating NAV. Themaximum FMC in any fund is 2% p.a. subject pot prior approval by the IRDA. Generallypeople are unaware if this charge. It seems to be very small charge but in reality its acharge which makes the difference between 2 policies. HDFC is the company which
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charges lowest FMC i.e. 0.8% which is generally higher with other companies near about2%. The effect of FMC can be seen in long term but has a minute effect in short term.Foe illustration:-
at 2% At 0.8%
Yearspremium
fmcothers
FmcHDFC
1 50000 1000 400
2 50000 1000 400
3 50000 1000 400
4 50000 1000 400
5 50000 1000 400
6 50000 1000 400
7 50000 1000 400
8 50000 1000 400
9 50000 1000 400
10 50000 1000 400
11 50000 1000 400
12 50000 1000 400
13 50000 1000 400
14 50000 1000 400
15 50000 1000 400
Sum of HDFC FMC 6000
Sum of others FMC 15000
Difference 9000
INTRODUCTION TO MUTUAL FUND:-
The mutual fund industry is a lot like the film star of the finance
business.Though it is perhaps the smallest segment of the industry, it is also the most
glamorous in that it is a young industry where there are changes in the rules of the game
everyday, and there are constant shifts and upheavals. The one investment vehicle that
has truly come of age in India in the past decade is mutual funds. Today, the mutual fund
industry in the country manages around Rs 100,000 crore of assets, a large part of which
comes from retail investors.
A Mutual Fund is a trust that pools the savings of a number of
investors who share a common financial goal. The money thus collected is invested by
the fund manager in different types of securities depending upon the objective of the
scheme. These could range from shares to debentures to money market instruments. The
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income earned through these investments and the capital appreciations realized by the
scheme are shared by its unit holders in proportion to the number of units owned by them
(pro rata). Each Mutual Fund scheme has a defined investment objective and strategy.
A mutual fund is the ideal investment vehicle for todays complex and modern financialscenario. Markets for equity shares, bonds and other fixed income instruments, real
estate, derivatives and other assets have become mature and information driven. Price
changes in these assets are driven by global events occurring in faraway places. A typical
individual is unlikely to have the knowledge, skills, inclination and time to keep track of
events, understand their implications and act speedily. An individual also finds it difficult
to keep track of ownership of his assets, investments, brokerage dues and bank
transactions etc.
A mutual fund is the answer to all these situations. It appoints professionally qualified
and experienced staff that manages each of these functions on a full time basis. The large
pool of money collected in the fund allows it to hire such staff at a very low cost to each
investor. In effect, the mutual fund vehicle exploits economies of scale in all three areas -
research, investments and transaction processing.
But every coin has a flip side. With mutual funds, you have no control on the investments
of the fund; and, more importantly, the downside of diversification is that a fund can hold
so many stocks that a tremendously great performance by a stock will make very little
difference to a fund's overall performance.
Now if you think that the world of Mutual Funds is intimidating, complicated and
definitely not for you then think once again.
Mutual Funds Concept
A Mutual Fund is a trust that pools the savings of a number of investors who
share a common financial goal. The money thus collected is then invested in capital
market instruments such as shares, debentures and other securities. The income earned
through these investments and the capital appreciations realized are shared by its unit
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holders in proportion to the number of units owned by them. Thus a Mutual Fund is the
most suitable investment for the common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at a relatively low cost. The flow
chart below describes broadly the working of a mutual fund:
Mutual Fund Operation Flow Chart
Fig 1
Net asset value (NAV) of a scheme
Net asset value denotes the performance of a particular scheme of a
mutual fund. Mutual funds invest the money collected from the investors in securitiesmarkets. In simple terms, NAV is the market value of the securities held by the scheme.
Since market value of securities changes every day, NAV of a scheme also varies on a
day-to-day basis. The NAV per unit is the market value of securities of a scheme divided
by the total number of units of the scheme on any particular date.
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For example, if the market value of securities of a mutual fund scheme is Rs 200 lakhs
and the mutual fund has issued 10 lakh units of Rs 10 each to the investors, then the NAV
per unit of the fund is Rs 20. NAV is required to be disclosed by the mutual funds on a
regular basis - daily or weekly - depending on the type of scheme.
The intelligent investor's seven rules
Its one thing to understand mutual funds and their working; its another to ride on this
potent investment vehicle to create wealth in tune with your risk profile and investment
needs. Here are seven must-dos that go a long way in helping you meet your investment
objectives.
1. Know your risk profile
Can you live with volatility? Or are you a low-risk investor? Would you be satisfied if
your fund invests in fixed-income securities, and yields low but sure-shot returns? These
are some of the questions you need to ask yourself before investing in a fund.
Your investments should reflect your risk-taking capacity. Equity funds might lure when
the market is rising and your neighbor is making money, but if you are not cut out for the
risk that accompanies it, dont bite the bait. So, check if the funds objective matches
yours. Invest only after you have found your match. If you are racked by uncertainty,
seek expert advice from a qualified financial advisor.
2. Identify your investment horizon
How long you want to stay invested in a fund is as important as deciding upon your risk
profile. A mutual fund is essentially a savings vehicle, not a speculation vehicledont get
in with the intention of making overnight gains. Invest in an equity fund only if you are
willing to stay on for at least two years. For income and gilt funds, have a one-year
perspective at least. Anything less than one year, the only option among mutual funds is
liquid funds.
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3. Read the offer document carefully
This is a must before you commit your money to a fund. The offer document contains
essential details pertaining to the fund, including the summary information (type of
scheme, name of the asset Management Company and price of units, among other
things), investment objectives and investment procedure, financial information and risk
factors.
4. Go through the fund fact sheet
Fund fact sheets give you valuable information of how the fund has performed in the
past. You can check the funds portfolio, its diversification levels and its performance in
the past. The more fact sheets you examine, the better.
5. Diversify across fund houses
If you are routing a substantial sum through mutual funds, you should diversify across
fund houses. That way, you spread your risk.
6. Do not chase incentives
Dont get lured by investment incentives. Some financial intermediaries give upfront
incentives, in the form of a percentage of your initial investment, to invest in a particular
fund. Dont buy it. Your focus should be to find a fund that matches your investment
needs and risk profile, and is a performer.
7. Track your investments
Your job doesnt end at the point of making the investment. Its important you track your
investment on a regular basis, be it in an equity, debt or balanced fund. One easy way to
keep track of your fund is to keep track of the Intelligent Investor rankings of mutual
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funds, which are complied on a quarterly basis. These rankings allow you to take note of
your funds performance and risk profile, and compare it across various time periods as
well as across its peer set. In addition, you should run some basic checks in the fund fact
sheets and the quarterly reports you get from your fund.
If you come across negative reports of the fund, ask your financial
advisor or broker about it, especially if theres a possibility of your investment
depreciating in value. If the threat is real, reduce your exposure to the fund.
DERIVATIVES
Measuring performance of Mutual Fund
1. Relative to benchmark method
Under this method a comparison is made between the returns given by a market index,
and the fund over a given period of time. If the returns generated by the fund as measured
by changes in NAV over that given period of time are greater than those generated by thebenchmark then the fund is deemed to have outperformed the market portfolio.
2. Risk-Return Method
The Relative-to-Benchmark measure is very simplistic, as it does not incorporate any
measure of risk in its calculation. An investor would naturally be interested in finding out
the return generated for the risk undertaken, as, in a bid to generate super normal return,
the fund may go overboard on the risk parameter. Therefore, risk adjusted measures ofreturn are needed to measure the performance of funds. There are several such measures
prominent among which are the Sharpe ratio, the Treynor ratio, and Alpha-:
a) Sharpe ratio
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This measure uses standard deviation as a measure to evaluate a fund's risk-adjusted
returns. Mathematically, it is arrived at by deducting the risk free returns from the returns
generated by the fund and dividing the residual figure by the standard deviation of the
fund's returns. One thing that has to be kept in mind while using this measure is that the
ratio is not an absolute figure. Its real utility lies in inter scheme comparison.
b) Treynor's ratio
The other measure Treynor's ratio also has the same attributes with the difference that the
residual figure in this case is divided by beta rather than the standard deviation, thus
reflecting only the systematic risk. Beta of the fund is a volatility measure that quantifies
sensitivity of the fund's return to the benchmark index's returns i.e. given the movements
of the benchmark how much the fund will move. It does not give representation to
unsystematic risk under the assumption that the fund manager can easily wipe out the
unsystematic risk by diversifying across a large number of stocks.
c) Alpha
Basically, alpha is the difference between the return that would be warranted by its beta
(expected return) and the return that is actually generated by the fund. If a fund returns
more than what is anticipated by beta, it has a positive and favorable alpha, and if it
returns less than the amount predicted by beta, the fund has a negative alpha.
Mathematically, Alpha= fund return - [Risk free rate + Beta of fund (Benchmark return -
Risk free return)]
Risks involved in investing in Mutual Funds
1. Market risk
If the overall stock or bond markets fall on account of macro economic factors, the value
of stock or bond holdings in the fund's portfolio can drop, thereby impacting the NAV.
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2. Non-market risk
Bad news about an individual company can pull down its stock price, which can
negatively affect funds holding a large quantity of that stock. This risk can be reduced by
having a diversified portfolio that consists of a wide variety of stocks drawn from
different industries.
3. Interest rate risk
Unit prices and interest rates move in opposite directions. When interest rates rise, bond
prices fall and this decline in underlying securities affects the NAV negatively. How bad
the damage will be is dependant on factors such as maturity profile, liquidity etc.
4. Credit risk
Bonds are debt obligations. So when the funds invest in corporate bonds, they run the risk
of the corporate defaulting on their interest and principal payment obligations and when
that risk crystallizes, it leads to a fall in the value of the bond causing the NAV of the
fund to take a beating
Types of Mutual Fund
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Fig 3
Mutual fund schemes may be classified on the basis of its structure and its
investment objective:-
1. By Structure: a) Open-ended Funds
An open-end fund is one that is available for subscription all through the year. These do
not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset
Value ("NAV") related prices. The key feature of open-end schemes is liquidity.
b) Closed-ended Funds
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15
years. The fund is open for subscription only during a specified period. Investors can
invest in the scheme at the time of the initial public issue and thereafter they can buy or
sell the units of the scheme on the stock exchanges where they are listed. In order to
provide an exit route to the investors, some close-ended funds give an option of selling
back the units to the Mutual Fund through periodic repurchase at NAV related prices.
SEBI Regulations stipulate that at least one of the two exit routes is provided to the
investor.
c) Interval Funds
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Interval funds combine the features of open-ended and close-ended schemes. They are
open for sale or redemption during pre-determined intervals at NAV related prices.
2. by Investment Objective:
a) Equity Oriented Schemes
These schemes, also commonly called Growth Schemes, seek to invest a majority of their
funds in equities and a small portion in money market instruments. Such schemes have
the potential to deliver superior returns over the long term. However, because they invest
in equities, these schemes are exposed to fluctuations in value especially in the short
term.
Fig 4
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Fig 5
b) Debt Based Schemes
These schemes, also commonly called Income Schemes, invest in debt securities such as
corporate bonds, debentures and government securities. The prices of these schemes tendto be more stable compared with equity schemes and most of the returns to the investors
are generated through dividends or steady capital appreciation. These schemes are ideal
for conservative investors or those not in a position to take higher equity risks, such as
retired individuals. However, as compared to the money market schemes they do have a
higher price fluctuation risk and compared to a Gilt fund they have a higher credit risk.
Fig 6
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Fig 7
c) Hybrid Schemes
These schemes are commonly known as balanced schemes. These schemes invest in both
equities as well as debt. By investing in a mix of this nature, balanced schemes seek to
attain the objective of income and moderate capital appreciation and are ideal for
investors with a conservative, long-term orientation. HDFC Balanced Fund and HDFC
Childrens Gift Fund are examples of hybrid schemes.
d) Load Funds
A Load Fund is one that charges a commission for entry or exit. That is, each time you
buy or sell units in the fund, a commission will be payable. Typically entry and exit loads
range from 1% to 2%. It could be worth paying the load, if the fund has a good
performance history.
e) No-Load Funds
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Sectoral Funds are those, which invest exclusively in a specified industry or a group of
industries or various segments such as 'A' Group shares or initial public offerings.
Benefits Of Investing In Mutual Funds
1. Professional Management
Mutual Funds provide the services of experienced and skilled professionals, backed by a
dedicated investment research team that analyses the performance and prospects of
companies and selects suitable investments to achieve the objectives of the scheme.
2.Diversification
Mutual Funds invest in a number of companies across a broad cross-section of industries
and sectors. This diversification reduces the risk because seldom do all stocks decline at
the same time and in the same proportion. You achieve this diversification through a
Mutual Fund with far less money than you can do on your own.
3. Convenient Administration
Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such
as bad deliveries, delayed payments and follow up with brokers and companies. Mutual
Funds save your time and make investing easy and convenient.
4. Return Potential
Over a medium to long-term, Mutual Funds have the potential to provide a higher return
as they invest in a diversified basket of selected securities.
5. Low Costs
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Mutual Funds are a relatively less expensive way to invest compared to directly investing
in the capital markets because the benefits of scale in brokerage, custodial and other fees
translate into lower costs for investors.
6. Liquidity
In open-end schemes, the investor gets the money back promptly at net asset value
related prices from the Mutual Fund. In closed-end schemes, the units can be sold on a
stock exchange at the prevailing market price or the investor can avail of the facility of
direct repurchase at NAV related prices by the Mutual Fund.
7.Transparency
you get regular information on the value of your investment in addition to disclosure on
the specific investments made by your scheme, the proportion invested in each class of
assets and the fund manager's investment strategy and outlook.
8. Tax Benefits
The taxman has, over the years, been more or less kind to mutual funds! With laws
varying from time to time, the overall objective has been to encourage the growth of the
mutual funds industry. Currently, a variety of tax laws apply to mutual funds, which are
broadly listed below:
1) Capital Gains
Units of mutual fund schemes held for a period more than 12 months are treated as long-
term capital assets. In such cases, the unit-holder has the option to pay capital gains tax at
either 20 % (with indexation) or 10 % without indexation.
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2) Tax Deducted at Source (TDS)
For any income credited or paid by a fund, no tax is deducted or withheld at source. The
relevant sections in the Income Tax Act governing this provision are Section 194K and
196A.
3) Wealth Tax
Mutual fund units are not currently treated as assets under Section 2 of the Wealth Tax
Act and are therefore not liable to tax.
4) Income from units
Any income received from units of the schemes of a mutual fund specified under section
23 (D) is exempt under Section 10 (33) of the Act. While section 10(23D) exempts
income of specified mutual funds from tax (which currently includes all mutual funds
operating in India), Section 10(33) exempts income from funds in the hands of the unit-
holders. However, this does not mean that there is no tax at all on income distributions by
mutual funds.
5) Income Distribution Tax
As per prevailing tax laws, income distributed by schemes other than open-end equity
schemes is subject to tax at 20 % (plus surcharge of 10 %). For this purpose, equity
schemes have been defined to be those schemes that have more than 50 % of their assets
in the form of equity. Open-end equity schemes have been left out of the purview of this
distribution tax for a period of three years beginning from April 1999.
6) Section 80-C
The investment in mutual funds designated as Equity Linked Laving Scheme (ELSS)
qualifies for rebate under Section 80-C. The maximum amount that can be invested in
these schemes is Rs.10,000, therefore the maximum tax benefit available works out to
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Rs.2000. Apart from ELSS schemes, the benefit of Section 80-C is also available in
select schemes of some funds such as UTI ULIP, KP Pension Plan etc
Disadvantages of Mutual Funds
1. The Wisdom of Professional Management.
That's right, this is not an advantage. The average mutual fund manager is no better at
picking stocks than the average nonprofessional, but charges fees as though she is.
2. No Control.
Unlike picking your own individual stocks, a mutual fund puts you in the passenger seat
of somebody else's car.
3. Dilution.
Mutual funds generally have such small holdings of so many different stocks that
insanely great performance by a fund's top holdings still doesn't make much of a
difference in a mutual fund's total performance.
4. Buried Costs .
Many mutual funds specialize in burying their costs and in hiring salesmen who do not
make those costs clear to their clients.
Scope for Development of Mutual Fund Business in India
A Mutual Fund is the most suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost. India has a burgeoning population of middle class now estimated
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around 300 million. A typical Indian middle class family can have liquid savings ranging
from Rs.2 to Rs.10 Lakhs today. Investments in Banks are liquid and safe, but with the
falling rate of interest offered by Banks on Deposits, it is no longer attractive. At best a
part can be saved in bank deposits, but what are the other sources of investment for the
common man? Mutual Fund is the ready answer. Viewed in this sense globally India is
one of the best markets for Mutual Fund Business, so also for Insurance business. This is
the reason that foreign companies compete with one another in setting up insurance and
mutual fund business units in India. The sheer magnitude of the population of educated
white collar employees provides unlimited scope for development of Mutual Fund
Business in India.
The Indian capital market has witnessed some significant reforms on the
structural, operational and regulatory front over a period of time. The changes such as
abolition of controller of capital issues, establishment of market regulator [SEBI],
introduction of a nationwide screen-based trading, dematerialization of securities,
electronic trading, sophisticated risk-management techniques, derivative trading, rolling
settlement, shortening of settlement cycle, ban on deferral products, formation of
Clearing Corporation of India and demutualization of stock exchanges have marked a
new era in the functioning of the capital market."
Objectives:
Primary objectives:
People awareness of charge FMC in both ULIP and Mutual funds
Compare of investment in ULIP plans with Mutual Funds
Secondary objectives:
To study the investment patterns of the consumer in Financial Products.
To know the customer awareness about ULIPs and Mutual Funds.
RESEARCH METHOLOGY
Type of Research Exploratory Research
Size of sample: 100 respondentsArea of research study: BareillySampling procedure: Convenient sampling
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METHOD FOR DATA COLLECTION
Primary Data:
Procedure of data collection: SurveyTools for data collection: Questionnaire
Secondary Data:
Information Brochures, Web Sites
Analysis:
Helps u in making investment decisions
Frequency Percent Valid PercentCumulative
Percent
Valid journal 4 4.0 4.0 4.0
refrence group 20 20.0 20.0 24.0
television 4 4.0 4.0 28.0
newspaper 2 2.0 2.0 30.0
broker 65 65.0 65.0 95.0
influencer 5 5.0 5.0 100.0
Total 100 100.0 100.0
marital status
Frequency Percent Valid PercentCumulative
Percent
Valid married 62 62.0 62.0 62.0
Single 38 38.0 38.0 100.0
Total 100 100.0 100.0
where do u generaly investur money
Frequency Percent
Missing System100 100.0which company is best among life insurance companies
Frequency Percent Valid PercentCumulative
Percent
Valid Hdfc 22 22.0 22.0 22.0
Aviva 10 10.0 10.0 32.0
Icici 30 30.0 30.0 62.0
Bajaj 6 6.0 6.0 68.0
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Birla 20 20.0 20.0 88.0
tata aig 12 12.0 12.0 100.0
Total 100 100.0 100.0
Do you like to invest your funds in same company again?
Frequency Percent Valid PercentCumulative
Percent
Valid always 15 15.0 15.0 15.0
sometimes 20 20.0 20.0 35.0
Often 25 25.0 25.0 60.0
Never 40 40.0 40.0 100.0
Total 100 100.0 100.0
Are you aware about ULIP plans of life insurance companies?
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 58 58.0 58.0 58.0
No 42 42.0 42.0 100.0
Total 100 100.0 100.0
Are you aware about Mutual Funds?
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 78 78.0 78.0 78.0
No 22 22.0 22.0 100.0
Total 100 100.0 100.0
Have you ever invested your funds in ULIP?
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 63 63.0 63.0 63.0
No 37 37.0 37.0 100.0
Total 100 100.0 100.0
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Have you ever invested your funds in Mutual Funds?
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 69 69.0 69.0 69.0
No 31 31.0 31.0 100.0Total 100 100.0 100.0
Are you aware of the charge FMC?
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 23 23.0 23.0 23.0
No 77 77.0 77.0 100.0
Total 100 100.0 100.0
Do you know FMC is charged under mutual funds?
Frequency Percent Valid PercentCumulative
Percent
Valid Yes 16 16.0 16.0 16.0
No 84 84.0 84.0 100.0
Total 100 100.0 100.0
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influencer
broker
newspaper
televisionrefrence group
journal
helps u in making investment decisions
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single
married
marital status
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tata aig
birla
bajaj
iciciaviva
hdfc
which company is best among life insurance companies
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no
yes
Are you aware about ULIP plans of life insurance companies?
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no
yes
Have you ever invested your funds in ULIP?
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no
yes
Have you ever invested your funds in Mutual Funds?
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no
yes
Are you aware of the charge FMC?
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no
yes
Do you know FMC is charged under mutual funds?
marital status * Have you ever invested your funds in ULIP? Crosstabulation
Count
Have you ever investedyour funds in ULIP? Total
yes no yes
maritalstatus
married 39 23 62
single 24 14 38
Total 63 37 100
Null Hypothesis: There is no relationship between marital status andinvestment in ULIPS
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Chi-Square Tests
Value df Asymp. Sig.
(2-sided)Exact Sig.(2-sided)
Exact Sig.(1-sided)
Pearson Chi-Square .001(b) 1 .980
ContinuityCorrection(a)
.000 1 1.000
Likelihood Ratio .001 1 .980
Fisher's Exact Test 1.000 .576
Linear-by-LinearAssociation .001 1 .980
N of Valid Cases 100
a Computed only for a 2x2 tableb 0 cells (.0%) have expected count less than 5. The minimum expected count is14.06.
Since, asym. Sig. is greater than 0.5, therefore, hypothesis is rejected.Hence, there is no significant relationship between marital status and investment inULIPS.
marital status
singlemarried
Count
40
30
20
10
0
Bar Chart
no
yes
Have you ever investedyour funds in ULIP?
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marital status * Have you ever invested your funds in Mutual Funds? Cross tabulation
Count
Have you ever investedyour funds in MutualFunds? Total
Yes no yes
maritalstatus
married 45 17 62
single 24 14 38
Total 69 31 100
Null Hypothesis: There is no relationship between marital status andinvestment in MUTUAL FUNDS
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)Exact Sig.(2-sided)
Exact Sig.(1-sided)
Pearson Chi-Square .978(b) 1 .323
ContinuityCorrection(a)
.587 1 .444
Likelihood Ratio .968 1 .325
Fisher's Exact Test .376 .221
Linear-by-LinearAssociation .968 1 .325
N of Valid Cases 100
a Computed only for a 2x2 tableb 0 cells (.0%) have expected count less than 5. The minimum expected count is 11.78.
Since, asymp. Sig. is less than 0.5 hence, there is a relationship between maritalstatus and investment in mutual funds.Therefore, null hypothesis rejected.
After marriage it is seen person becomes more concern about investment ofmoney and thus they try to invest in various scheme. It is seen still a num ofpersons try to avoid investment in insurance
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marital status
singlemarried
Count
50
40
30
20
10
0
Bar Chart
no
yes
Have you ever invested
your funds in MutualFunds?
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LIMITATIONS
1. The sample size is very less, hence the responses of just 100 respondents does notimply for the complete population.
2. There was lack of time and resources that prevented from carrying out an in depthstudy.
3. The findings of the survey are based on the subjective opinion of the respondents andthere is no way of assessing truth of the statements.
4. There is some respondents bias which cannot be removed.
5. Lastly, some amount of error exists in the data filling process because of the followingreasons:
Influence of others.
Misunderstanding of the concept. Hurried filling of the questionnaire.
CONCLUSION
The ULIP plans of HDFC SLIC are very competitive and have an edge over the plans ofother companies as they provide higher returns to there customers.
ULIP plans are beneficial from the long term perspective whereas customer should investin mutual funds if he wants quick returns.
Most of the market is still unaware about the ULIP plans and hence by making properpromotional strategy companies can increase there sales.
RECOMMENDATIONS
Variety-based Positioning
This type of positioning is based on varieties in products and services rather than
customer segments. It is a sensible strategy for those companies who have distinctiveadvantages or strengths in offering certain products and services. In the insuranceindustry too, it is possible to achieve a unique position by focusing on certain category ofproducts.
HDFCSLIC can provide certain distinct services to its customers (such as: providing theinformation to the clients about there policies over the internet etc.) which willdifferentiate them from other companies
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Needs-based Positioning
This is based on the differing needs of different groups of consumers. This can be donesuccessfully if a company has unique strengths to service a group of customer needs
better than othersThe insurance needs of customers vary significantly for different groups of customers.However, in India most of the life insurance companies have a wide variety of productstailored for different customer needs and there is no company focusing on a particularcustomer need.
An example would be a life insurance company that focuses only on High Net-worthIndividuals (HNIs). The needs of HNIs would be quite different from those of a generalconsumer and would require an entirely different marketing mix right from the type ofproducts offered and the way they are distributed, to the promotion methods employed
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Annexure
Questionnaire
COMPARATIVE ANALYSIS OF ULIPS OF MAJOR COMPANIES
AND WITH MUTUAL FUND IN BAREILLY REGION
1. Sources that helps you in making the investment decisions:
Financial journal / business magazines Reference groups
Television
General / business newspapers
Brokers / agents / professional consultant
Word of mouth/ influencer
2. Factors that influence your investment decisions in a particular
company:
Rating response
1 2 3 4 5
High Reputation
Good CRM
Good Promotion
Relationship with agent
Rate of return
Life insurance cover
Attractive schemes
Tax benefits
Variety of products
Better service
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6. Are you aware about ULIP plans of life insurance companies?
Opinion Total Response Percentage
Yes
No
7. Are you aware about Mutual Funds?
Opinion Total ResponsePercentage
Yes
No
8. Have you ever invested your funds in ULIP?
Opinion Total ResponsePercentage
Yes
No
9. Have you ever invested your funds in Mutual Funds?
Opinion Total ResponsePercentage
Yes
No
10. (a) Where u would like to reinvest your money ULIP or Mutual
Funds?
(b) Why?
11. Are you aware of the charge FMC?
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