You are on page 1of 3



utual funds are back in fashion. In the past year, between August 2006 and August 2007, assets under management of mutual funds in India grew 65% to over 3 lakh

crores. Mutual funds other than UTI increased their share of household financial savings to 3.6% in 2006 from a measly 0.4% in the previous year. At the same time 3.6% of household savings is hardly something to write home about households deposited a huge 46.7% of their savings with banks. Thats the size of the opportunity in the mutual fund business. As a percentage of GDP, the assets under management of funds are about 9.5%, as against to up to 60% in developed countries. Yet, the Indian mutual fund industry has certainly stepped on the accelerator, the list of global asset management companies lining up to enter the Indian market has never been longer Sumitomo, Nikko, Shinsei and Nippon life are in the queue, as are Goldman sachs and Koreas Marie. As many as 16 fund houses are waiting to set up shop in India. At the beginning of this millennium, mutual funds out numbered all the listed securities in New York Stock Exchange. Mutual funds have an upper hand in terms of diversity and liquidity at lower cost in comparison to bonds and stocks. The popularity of mutual funds may be relatively new but not their origin which dates back to 18th century. Holland saw the origination of mutual funds in 1774 as investment trusts before spreading to Anglo-Saxon countries in its current form by 1868. One product category that is increasingly catching the fancy of individuals is the Unit linked Insurance Plan (ULIP). These plans, a combination of insurance and investment, provide the policyholder with life cover and additionally offer the opportunity to earn a return on the premium paid. The breakthrough is good news for an industry that had a bumpy ride through the past decade. The IPO boom and bust of the mid1990s the roll out of technology funds and subsequent tech wreck and finally the disaster at UTI- all led to investor disenhancement with the equity markets in general and with mutual funds in particular. The upshot: Households investment in shares and debentures, including mutual funds, which had risen to 23.3% of saving in 1991-92, was 4.9% in 2005-06. Of course, 1991-92 may not be the right year to look at, Because the Harshad Mehta scam was at

its peak. But even if you take 1994-95, household investment in the markets was 11.9% well above the current level.

Objectives and Need of the Study

Today one of the popular investment choices is mutual fund. Mutual funds are

an investment through which many people invest in stocks and bonds indirectly. They offer a higher return at minimum risk level. Similarly ULIP is in booming period which offer similar return plus insurance coverage. Almost everyone who is investing has a need to learn the basics of mutual funds as well as ULIP plan. The main objectives of the study are direct To asses the different risks oft Mutual Fund(MF) and ULIP To advice the investor where to invest money received from an insurance or To asses the different in ROI between Mutual Fund(MF) and ULIP of at ICICI

retirement settlement To analyze the growth, development, performance and problems of the Mutual

fund (MF) and ULIP schemes at ICICI Direct.

Statement of Problem
To carry out comparative study between Mutual Fund (MF) and ULIP investment At ICICI direct. . Advisor role in an investment decision is playing vital role in investment of individual money. To select the right investment at the right time is one of the most important factors fore an investor. Investors face the problem regarding taking decision for making investment in Mutual Fund (MF) or ULIP (unit linked insurance plan) investment.

From this study we can conclude that in the going capital market scenario Mutual Fund and ULIP can be important investment opportunity for the investors. That is main thing in Ulip can keep safe many with switch option but in Mutual fund can not keep safe money. Its market return totally depends on market situation with risk. So there for ULIP is better for a long term compare to Mutual Fund because Mutual Fund has no option get money after die but in Ulip get both benefit. So, we can conclude that Mutual Fund and ULIP both is having their unique speciality. For long term purpose ULIP is profitable than Mutual Fund, in the other hand for short term purpose Mutual Fund is Better than ULIP. Mainly ULIP help the sides, investors as well as company. But Mutual Fund investments only help the investors, company may profitable in that or not.