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INTRODUCTION

Mutual funds:

Mutual funds have become a hot favorite of millions of people all over the
world. Insimple words, a mutual fund collects the savings from small investors invest
them in Government and other corporate securities and earn income through interest
and Dividends, besides capital gains.

It works on the principle of small drops of water make a big ocean.

A mutual funds is nothing but a form of collective investment.

Mutual fund is a common pool of money in which investor place their


contribution that is to be invested in accordance with the stated objective. The fund
belongs to all the investors depending on the proportion of his contribution to the
fund.A mutual fund is a trust that polls 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.

ULIPS (UNIT LINK INSURANCES POLICY)

Insurance is a subject listed in the concurrent list in the seventh schedule to


the constitutionOf India where both centre and states can legislate. The Insurance
sectors has gone through A number of phases by allowing private companies to solicit
insurance and also allowing Foreign direct investment of up to 26% the insurance are
two types.

1) Unit Linked Insurance Policy Services(ULIPS)

ULIPS as an investment is a very good vechicle for wealth creation, but we are totally
against the way unit linked insurance schemes are sold by insurance company
representatives andInsurance advisors.

2) Traditional insurance plans, which include term, endowment and whole life
policies, offer Multiple benefits in terms of risk cover, return and safety.
NEED OF THE STUDY

To know the rate of return fund maintenance charges administration charges in mutual
funds&ULIPS, as to calculate the return, the interest rate is assumed as 10% and the
investment is assumed as RS 100000.

A return is the main aspect to the investors, the schemes which give more return will
secureGood position in the market.
OBJECTIVES OF THE STUDY

1. To study the Evalution of the MF Industry&insurance industry.


2. To analyze the scheme maintenance charges in MF &ULIPS.
3. Merits and demerits as the MF &ULIPS.
4. To know how much risk and return associated with various mf schemes
&ULIPS.
5. To know the fund maintenance charges in mfs & ulips.
6. To understand the concept of financial planning.
SCOPE OF THE STUDY

The study is basically made to analyze the various schemes to highlight the diversity
of investment that mutual fund & ulips offer through the study one would understand
how Common man could fruitfully convert pittance into great penney by wisely
investing intoThe right scheme according to his risk abilities.
RESEARCH METHODOLOGY

Research design is some statement or specification of procedures for collecting and


Analyzing the information required for the solution of some specific problem. Data
Obtained for the study has to be divided in to two groups.

1)primary data .

2)secondary data.

Primary data

Primary data comprises information obtained by the researcher from various


respondents Through a personal discussions with employees and officials of Angel
Broking Limited.

Secondary data

Secondary data comprises information obtained from reports,files&some important


Documents maintained by ulips.

In this study the total information has obtained from primary data and rest from
secondary data.
LIMITATIONS OF THE STUDY

1. This study is limited due to the analysis of only two companies i.e ICICI of
mutual fund &METLIFE of ulips
2. The study is conducted based on the past 5years data of ICICI MF &
METLIFE of ULIPS plans.
3. The study is mainly based on secondary data.
INDUSTRY PROFILE

INDIAN STOCK MARKET AN OVERVIEW

CAPITAL MARKET IN INDIA

Indian markets have recently thrown open a new avenue for retail investors and
traders to participate in: commodity derivatives. For those who want to diversify their
portfolios beyond shares, bonds and real estate, commodities are the best option. Till
some months ago, this wouldn't have made sense. For retail investors could have done
very little to actually invest in commodities such as gold and silver or oilseeds in the
futures market. This was nearly impossible in commodities except for gold and silver
as there was practically no retail avenue for punting in commodities. Whatever it may
be , with the setting up of three multi-commodity exchanges in the country, retail
investors can now trade in commodity futures without having any physical stocks

Commodities actually offer immense potential to become a separate asset class for
market-savvy investors, arbitrageurs and speculators. Retail investors, who claim to
understand the equity markets may find commodities an unfathomable market. But
commodities are easy to understand as far as fundamentals of demand and supply are
concerned. Retail investors should understand the risks and advantages of trading in
commodities futures before taking a leap. Historically, pricing in commodities futures
has been less volatile compared with equity and bonds, thus providing an efficient
portfolio diversification option.

Like any other market, the one for commodity futures plays a valuable role in
information pooling and risk sharing. The market mediates between buyers and sellers
of commodities, and facilitates decisions related to storage and consumption of
commodities. In the process, they make the underlying market more liquid

The trading of commodities consists of direct physical trading and derivatives trading.
The commodities markets have seen an upturn in the volume of trading in recent
years. In the five year up to 2010, the value of global physical exports of commodities
increased by 17% while the notional value outstanding of commodity OTC(over the
counter) derivatives increased more than 500% and commodity derivative trading on
exchanges more than 200%.

The notional value outstanding of banks OTC commodities derivatives contacts


increased 27% in 2010 to $9.0 trillion. OTC trading accounts for the majority of
trading in gold and silver. Overall, precious metal accounted for 8% of OTC
commodities derivatives trading in 2010, down from their 55% share a decade earlier
as trading in energy derivatives rose.

Global physical and derivatives trading of commodities on exchanges increased more


than a third in 2010 to reach 1,684 million contacts. Agricultural contracts trading
grew by 32% in 2010, energy 29% and industrial metals by 30%. Precious metals
trading grew by 3% with higher volume in New York being partially offset by
declining volume in Tokyo. Over 40% of quarter in China. Trading on exchanges in
China and India has gained in importance in recent years due to their emergence as
significant commodities consumers and producers.

Present scenario

Todays commodity market is a global market place not only for agricultural
products, but also currencies and financial instruments such as Treasury bonds and
securities futures. Its a diverse marketplace of farmers, exporter, importers,
manufacturers and speculators. Modern technology has transformed commodities into
a global marketplace where a Kansas farmer can match a bid from a buyer in Europe.

The 2008 global boom in commodity prices- for everything from coal to corn was
fueled by heated demand from the likes of China and India, plus unbridled speculation
in forward markets.

The bubble popped in the closing months of 2008 across the board. As a result,
farmers are expected to face a sharp drop in crop prices, after years of record revenue.
Other commodities, such as steel, are also expected to tumble due to lower demand.
This will be a rare positive for manufacturing industries, which will experience a drop
in some input costs, partly offsetting the decline in downstream demand.
The Indian broking industry is one of the oldest trading industries that have been
around even before the establishment of BSE in 1875.

Inception- The roots of a stock market in India began in the 1860s during the
American Civil War that led to a sudden surge in the demand for cotton from India
resulting in setting up of a number of joint stock companies that issued securities to
raise finance.

Bubble burst- The early stock market saw a boom till 1865, and then in Jul
1865, what was then used to be called the share mania ended with burst of the stock
market bubble. In the aftermath of the crash, banks, on whose building steps share
brokers used to gather to seek stock tips and share news, disallowed them to gather
there, thus forcing them to find a place of their own, which later turned into the Dalal
Street. A group of about 300 brokers formed the stock exchange in Jul 1875, which
led to the formation of a trust in 1887 known as the Native Share and Stock Brokers
Association

Beginning of a new phase- A new phase in the Indian stock markets began in
the 1970s, with the introduction of Foreign Exchange Regulation Act (FERA) that led
to divestment of foreign equity by the multinational companies, which created a surge
in retail investing.

Growth supporting factors-The early 1980s witnessed another surge in stock


markets when major companies such as Reliance accessed equity markets for resource
mobilization that evinced huge interest from retail investors. A new set of economic
and financial sector reforms that began in the early 1990s gave further impetus to the
growth of the stock markets in India.

Setting up of SEBI- the Securities and Exchange Board of India (SEBI), which
was set up in 1988 as an administrative arrangement, was given statutory powers with
the enactment of the SEBI Act, 1992. The broad objectives of the SEBI include-

o to protect the interests of the investors in securities


o to promote the development of securities markets and to regulate the securities
markets

Incorporation of NSE- NSE was incorporated in Nov 1992 as a tax paying


company, the first of such stock exchanges in India, since stock exchanges earlier
were trusts, being run on no-profit basis. NSE was recognized as a stock exchange
under the Securities Contracts (Regulations) Act 1956 in Apr 1993. It commenced
operations in wholesale debt segment in Jun 1994 and capital market segment
(equities) in Nov 1994. The setting up of the National Stock Exchange brought to
Indian capital markets several innovations and modern practices and procedures such
as nationwide trading network, electronic trading, greater transparency in price
discovery and process driven operations that had significant bearing on further growth
of the stock markets in India. To speed the securities settlement process, The
Depositories Act 1996 was passed that allowed for dematerialization (and
dematerialization) of securities in depositories and the transfer of securities
through electronic book entry. The National Securities Depository Limited (NSDL)
set up by leading financial institutions, commenced operations in Oct 1996.

Despite passing through a number of changes in the post liberalization period,


the industry has found its way towards sustainable growth. A stock Broker is a
regulated professional who buys and sells shares and other securities through market
makers or Agency Only Firms on behalf of investors. To work as a broker a certificate
of registration from SEBI is mandatory after satisfying all the terms and conditions.
FINANCIAL MARKETS

The financial markets have been classified as

Cash market (spot market) largest traded, the spot market or cash market is a
commodities or securities market in which goods are sold for cash and delivered
immediately. Derivatives market after cash market, the derivatives markets are the
financial markets for derivatives. The market can be divided into two that for
exchange traded derivatives and that for over-the-counter derivatives.

Debt market - The bond market (also known as the debt, credit, or fixed
income market) is a financial market where participants buy and sell debt securities.

Commodities market after commodities market, Commodity markets are


markets where raw or primary products are exchanged. These raw commodities are
traded on regulated commodities exchanges, in which they are bought and sold in
standardized contracts.

PARTICIPANTS IN FINANCIAL MARKET

There are two basic financial market participant categories, Investor vs. Speculator
and Institutional vs. Retail. Action in financial markets by central banks is usually
regarded as intervention rather than participation.

Supply side vs. demand side

A market participant may either be coming from the Supply Side, hence supplying
excess money (in the form of investments) in favor of the demand side; or coming
from the Demand Side, hence demanding excess money (in the form of borrowed
equity) in favor of the Supply Side. This equation originated from Keynesian
Advocates. The theory explains that a given market may have excess cash; hence the
supplier of funds may lend it; and those in need of cash may borrow the funds
supplied. Hence, the equation: aggregate savings equals aggregate investments.

The demand side consists of: those in need of cash flows (daily operational needs);
those in need of interim financing (bridge financing); those in need of long-term funds
for special projects (capital funds for venture financing).
The supply side consists of: those who have aggregate savings (retirement funds,
pension funds, insurance funds) that can be used in favor of demand side. The origin
of the savings (funds) can be local savings or foreign savings. So much pensions or
savings can be invested for school buildings; orphanages; (but not earning) or for road
network (toll ways) or port development (capable of earnings).

The earnings go to owner (Savers or Lenders) and the margin goes to the banks.
When the principal and interest are added up, it will reflect the amount paid for the
user (borrower) of the funds. Thus, an interest percentage for the cost of using the
funds.

Investor vs. Speculator

Investor

An investor is any party that makes an Investment.

However, the term has taken on a specific meaning in finance to describe the
particular types of people and companies that regularly purchase equity or debt
securities for financial gain in exchange for funding an expanding company. Less
frequently the term is applied to parties who purchase real estate, currency,
commodity derivatives, personal property, or other assets.

Speculation

Speculation, in the narrow sense of financial speculation, involves the buying,


holding, selling, and short-selling of stocks, bonds, commodities, currencies,
collectibles, real estate, derivatives or any valuable financial instrument to profit from
fluctuations in its price as opposed to buying it for use or for income via methods such
as dividends or interest. Speculation or agiotage represents one of three market roles
in western financial markets, distinct from hedging, long term investing and arbitrage.
Speculators in an asset may have no intention to have long term exposure to that asset.
Institutional vs. Retail

Institutional investor

An institutional investor is an investor, such as a bank, insurance company, retirement


fund, hedge fund, or mutual fund, that is financially sophisticated and makes large
investments, often held in very large portfolios of investments. Because of their
sophistication, institutional investors may often participate in private placements of
securities, in which certain aspects of the securities laws may be inapplicable.

Retail investor

A retail investor is an individual investor possessing shares of a given security. Retail


investors can be further divided into two categories of share ownership.

1. A Beneficial Shareholder is a retail investor who holds shares of their


securities in the account of a bank or broker, also known as in Street Name. The
broker is in possession of the securities on behalf of the underlying shareholder.

2. A Registered Shareholder is a retail investor who holds shares of their


securities directly through the issuer or its transfer agent. Many registered
shareholders have physical copies of their stock certificates.
COMPANY PROFILE

The India Infoline group, comprising the holding company, India Infoline Limited and
its wholly-owned subsidiaries, straddle the entire financial services space with
offerings ranging from Equity research, Equities and derivatives trading,
Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance,
Fixed deposits, GoI bonds and other small savings instruments to loan products and
Investment banking. India Infoline also owns and manages the websites
www.indiainfoline.com and www.5paisa.com

The company has a network of 596 branches spread across 345 cities and towns. It
has more than 500,000 customers

India Infoline Ltd

India Infoline Limited is listed on both the leading stock exchanges in India, viz. the
Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also
a member of both the exchanges. It is engaged in the businesses of Equities broking,
Wealth Advisory Services and Portfolio Management Services. It offers broking
services in the Cash and Derivatives segments of the NSE as well as the Cash
segment of the BSE. It is registered with NSDL as well as CDSL as a depository
participant, providing a one-stop solution for clients trading in the equities market. It
has recently launched its Investment banking and Institutional Broking business

A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to


clients. These services are offered to clients as different schemes, which are based on
differing investment strategies made to reflect the varied risk-return preferences of
clients

VISION

Our vision is to be the most respected company in the financial services space.

MISSION

To become a full-fledged financial services company known for its quality of advice,
personalized services and cutting edge technology
IIFLs philosophy on Corporate Governance

IIFL (India Infoline) is committed to placing the Investor First, by continuously


striving to increase the efficiency of the operations as well as the systems and
processes for use of corporate resources in such a way so as to maximize the value to
the stakeholders. The Group aims at achieving not only the highest possible standards
of legal and regulatory compliances, but also of effective managemeNT

Committee

Audit Committee

Terms of reference & Composition, Name of members and Chairman The Audit
committee comprises Mr Nilesh Vikamsey (Chairman), Mr R Venkataraman, Mr
Kranti Sinha, two of whom are independent Directors. The Chairman along with the
Statutory and Internal Auditors are invitees to the Meeting.

The Terms of reference of this committee are as under - To investigate into any matter
that may be prescribed under the provisions of Section 292A of The Companies Act,
1956 - Recommendation and removal of External Auditor and fixation of the Audit
Fees. - Reviewing with the management the financial statements before submission of
the same to the Board. - Overseeing of Companys financial reporting process and
disclosure of its financial information. - Reviewing the Adequacy of the Internal Audit
Function.

Compensation/ Remuneration Committee

Terms of reference & Composition, Name of members and Chairman The


Compensation / Remuneration Committee comprises Mr Kranti Sinha (Chairman) &
Mr Nilesh Vikamsey, both of whom are independent Directors. The Terms of
reference of this committee are as under - To fix suitable remuneration package of all
the Executive Directors and Non Executive Directors, Senior Employees and officers
i.e. Salary, perquisites, bonuses, stock options, pensions etc. - Determination of the
fixed component and performance linked incentives alongwith the performance
criteria to all employees of the company - Service Contracts, Notice Period,
Severance Fees of Directors and employees. - Stock Option details whether to be
issued at discount as well as the period over which to be accrued and over which
exercisable. - To conduct discussions with the HR department and form suitable
remuneration policies.

Share Transfer and Investor Grievance Committee

Details of the Members, Compliance Officer, No of Complaints received and pending


and pending transfers as on close of the financial year. The committee functions under
the Chairmanship of Mr Kranti Sinha, a Non-executive independent Director. The
other Members of the committee are Mr. Nirmal Jain and Mr. R Venkataraman. Ms
Sunil Lotke, Company Secretary is the Compliance Officer of the Company.

IIFL CSR Initiatives

In line with our vision to be the most respected company in the financial services
space, we recognize the importance of contributing to and sustaining social
transformation. With this end in mind, we have setup the IIFL foundation, which will
work for the support and upliftment of the underprivileged sections of society.

The IIFL Foundation focuses on specific areas of need such as healthcare and
education, the foundation will screen and select institutions and developmental
agencies which are working in these domains and will provide necessary aid to
improve the lives of the underprivileged and help them in achieving their potential.

Barsana Camp

We sponsored an Eye and Dental camp, from Jan. 31st to Feb. 3rd, 2012, conducted
by expert Doctors and Surgeons from the Bhaktivedanta Foundation in the village of
Barsana near Mathura.

Pandharpur Medical Camp

We also sponsored the Pandharpur Medical Camp, held by the Bhaktivedanta Hospital
in

Some of the activities undertaken by the IIFL Foundation


July 2011 at Pandharpur. Free medical treatment and food was given to approximately
60,000 pilgrims who had come to Pandharpur during Ashadi Ekadashi. The pilgrims
were treated for fever, injuries, fractures, gastroenteritis, myalagia, headache,
epilepsy, malaria, respiratory infections etc, during the camp.

Blood Donation Drives

We organise blood donation drives at camps all across India. Over 800 employees
have participated in these camps so far.

Adopt a Village

To expand our initiatives, we are now exploring the best ways to take education in
rural and tribal areas beyond the key basics of abc. In our Adopt a Village scheme
we hope to impart knowledge about water conservation, waste management,
sanitation, corruption prevention, and many other essential fields.

India Infoline Media and Research Services Limited.

The content services represent a strong support that drives the broking, commodities,
mutual fund and portfolio management services businesses. Revenue generation is
through the sale of content to financial and media houses, Indian as well as global.

It undertakes equities research which is acknowledged by none other than Forbes as


'Best of the Web' and 'a must read for investors in Asia'. India Infoline's research is
available not just over the internet but also on international wire services like
Bloomberg (Code IILL), Thomson First Call and Internet Securities where India
Infoline is amongst the most read Indian brokers.

India Infoline Commodities Limited.

India Infoline Commodities Pvt Limited is engaged in the business of commodities


broking. Our experience in securities broking empowered us with the requisite skills
and technologies to allow us offer commodities broking as a contra-cyclical
alternative to equities broking. We enjoy memberships with the MCX and NCDEX,
two leading Indian commodities exchanges, and recently acquired membership of
DGCX. We multi-channel delivery model, making it among the select few to offer
online as well as offline trading facilities

India Infoline Marketing & Services

India Infoline Marketing and Services Limited is the holding company of India
Infoline Insurance Services Limited and India Infoline Insurance Brokers Limited

India Infoline Insurance Services Limited is a registered Corporate Agent with the
Insurance Regulatory and Development Authority (IRDA).

It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Limited,
which is India's largest private Life Insurance Company. India Infoline was the first
corporate agent to get licensed by IRDA in early 2007.

India Infoline Insurance Brokers Limited India Infoline Insurance Brokers Limited is
a newly formed subsidiary which will carry out the business of Insurance broking. We
have applied to IRDA for the insurance broking licence and the clearance for the same
is awaited. Post the grant of license, we propose to also commence the general
insurance distribution business

India Infoline Investment Services Limited

Consolidated shareholdings of all the subsidiary companies engaged in loans and


financing activities under one subsidiary. Recently, Orient Global, a Singapore-based
investment institution invested USD 76.7 million for a 22.5% stake in India Infoline
Investment Services. This will help focused expansion and capital raising in the said
subsidiaries for various lending businesses like loans against securities, SME
financing, distribution of retail loan products, consumer finance business and housing
finance business. India Infoline Investment Services Private Limited consists of the
following step-down subsidiaries.

India Infoline Distribution Company Limited (distribution of retail loan products)

Money line Credit Limited (consumer finance)


India Infoline Housing Finance Limited (housing finance)

IIFL (Asia) Private Limited

IIFL (Asia) Private Limited is wholly owned subsidiary which has been incorporated
in Singapore to pursue financial sector activities in other Asian markets. Further to
obtaining the necessary regulatory approvals, the company has been initially
capitalized at 1 million Singapore dollars.

THE MANAGEMENT

Mr. Nirmal Jain

Nirmal Jain, MBA (IIM, Ahmedabad) and a Chartered and Cost Accountant, founded
Indias leading financial services company India Infoline Ltd. in 1995, providing
globally acclaimed financial services in equities and commodities broking, life
insurance and mutual funds distribution, among others. Mr. Jain began his career in
1989 with Hindustan Levers commodity export business, contributing tremendously
to its growth. He was also associated with Inquire-Indian Equity Research, which he
co-founded in 1994 to set new standards in equity research in India.

Mr. R Venkataraman

R Venkataraman, co-promoter and Executive Director of India Infoline Ltd., is a B.


Tech (Electronics and Electrical Communications Engineering, IIT Kharagpur) and an
MBA (IIM Bangalore). He joined the India Infoline board in July 1999. He previously
held senior managerial positions in ICICI Limited, including ICICI Securities
Limited, their investment banking joint venture with J P Morgan of USA and with
BZW and Taib Capital Corporation Limited. He was also Assistant Vice President
with G E Capital Services India Limited in their private equity division, possessing a
varied experience of more than 16 years in the financial services sector.
THE BOARD OF DIRECTORS

Apart from Nirmal Jain and R Venkataraman, the Board of Directors of India Infoline
comprises

Mr. Sat Pal Khattar (Non Executive Director

Mr. Sat Pal Khattar, - Board member since April 2007 - Presidential Council of
Minority Rights member, Chairman of the Board of Trustee of Singapore Business
Federation, is also a life trustee of SINDA, a non profit body, helping the under-
privileged Indians in Singapore. He joined the India Infoline board in April 2007.

Mr. Khattar is a Director of public and private companies in Singapore, India and
Hong Kong; Chairman of Guocoland Limited listed in Singapore and its parent Guoco
Group Ltd listed in Hong Kong, a leading property company of Singapore, China and
Malaysia. A Board member of India Infoline Ltd, Gateway Distriparks Ltd both
listed and a number of other companies he is also the Chairman of the Khattar
Holding Group of Companies with investments in Singapore, India, UK and across
the world.

Mr. Nilesh Vikamsey (Independent Director)

Mr. Vikamsey, Board member since February 2010 - a practising Chartered


Accountant and partner (Khimji Kunverji & Co., Chartered Accountants), a member
firm of HLB International, headed the audit department till 1990 and thereafter also
handles financial services, consultancy, investigations, mergers and acquisitions,
valuations etc; an ICAI study group member for Proposed Accounting Standard 30
on Financial Instruments Recognition and Management, Finance Committee of
The Chamber of Tax Consultants (CTC), Law Review, Reforms and Rationalization
Committee and Infotainment and Media Committee of Indian Merchants Chamber
(IMC) and Insurance Committee and Legal Affairs Committee of Bombay Chamber
of Commerce and Industry (BCCI).
Mr. Vikamsey is a director of Miloni Consultants Private Limited, HLB Technologies
(Mumbai) Private Limited and Chairman of HLB India

Mr. Kranti Sinha (Independent Director)

Mr. Kranti Sinha Board member since January 2010 completed his masters
from the Agra University and started his career as a Class I officer with Life Insurance
Corporation of India. He served as the Director and Chief Executive of LIC Housing
Finance Limited from August 1998 to December 2008 and concurrently as the
Managing Director of LICHFL Care Homes (a wholly owned subsidiary of LIC
Housing Finance Limited). He retired from the permanent cadre of the Executive
Director of LIC; served as the Deputy President of the Governing Council of
Insurance Institute of India and as a member of the Governing Council of National
Insurance Academy, Pune apart from various other such bodies. Mr. Sinha is also on
the Board of Directors of Hindustan Motors Limited, Larsen & Turbo Limited,.

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Key Features

1. Membership on the Bombay Stock Exchange Limited and the National Stock
Exchange

2. Broking services in cash and derivatives segments, online as well as offline


under the brand of 5paisa.com

3. Presence across 19 states through a 177 strong branch networks, with 75,000
online registered users

4. Provision of free and world-class research to all clients

PRODUCT & SERVICES

Equities

India Infoline provided the prospect of researched investing to its clients, which was
hitherto restricted only to the institutions. Research for the retail investor did not exist
prior to India Infoline. India Infoline leveraged technology to bring the convenience
of trading to the investors location of preference (residence or office) through
computerized access. India Infoline made it possible for clients to view transaction
costs and ledger updates in real time.

Over the last five years, India Infoline sharpened its competitive edge through the
following initiatives

Multi-channel delivery model


The Company is among the few financial intermediaries in India to offer a
complement of online and offline broking. The Companies network of branches also
allows customers to place orders on phone or visit our branches for trading.

Integrated middle and back office

The customer can trade on the BSE and NSE, in the cash as well as the derivatives
segment all through the available multiple options of Internet, phone or branch
presence.

Multiple-trading options

The Company harnessed technology to offer services at among the lowest rates in the
business.

Membership

The Company widened client reach in trading on the domestic and international
exchanges.

Technology

The Company provides a prudent mix of proprietary and outsourced technologies,


which facilitate business growth without a corresponding increase in costs.

Content

The Company has leveraged its research capability to provide regular updates and
investment picks across the short and long-term.

Service

Clients can access the customer service team through various media like toll-free
lines, emails and Internet- messenger chat for instant query resolution. The
Companies customer service executives proactively contact customers to inform them
of key changes and initiatives taken by the Company. Business World rated the
Companies customer service as Best in their survey of online trading sites carried out
in December 2003.

Key features

Membership on the Bombay Stock Exchange Limited and the National Stock
Exchange

Registered with the NSDL as well as CDSL as a depository participant,


providing a one-stop solution for clients trading in the equities market

Broking services in cash and derivative segments, online as well as offline.

Presence across 350 cities and towns with a network of over 850 business
locations Equity client base of over 500,000 clients

Provision of free and world-class research to all clients

Commodities

India Infolines extension into commodities trading reconciles its strategic intent to
emerge as a one stop solutions financial intermediary. Its experience in securities
broking has empowered it with requisite skills and technologies. Increased offering
The Companies commodities business provides a contra-cyclical alternative to
equities broking. The Company was among the first to offer the facility of
commodities trading in Indias young commodities market (the MCX commenced
operations only in 2003). Average monthly turnover on the commodity exchanges
increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several
products with different and non-correlated cycles. On the whole, the business is fairly
insulated against cyclical gyrations in the business.

IndiaInfoline distinguished its business through the interplay of knowledge and


technology

Complete solution
The Company provides a complete - advice to execution solution facilitated by
information and advice on likely commodity trends in the Indian and international
environment.

Technology

The Company has extended the trading terminal to the investors home/workplace
reinforced with real-time commodity information and ledger position.

Rates

The Company harnessed technology to offer services at among the lowest rates in the
business. Membership The Company widened client reach in trading on the domestic
and international exchanges.

Key Features

Enjoys memberships with the MCX and NCDEX, two leading Indian
commodities exchanges

Recently acquired membership of the DGCX

Multi-channel delivery model, making it among the select few to offer online
as well as offline trading facilities

Extended commodity trading to retail investors, among the few Indian


financial intermediaries to do so

Online business at 80% of revenues dominates commodities trading revenues

Provides regular commodity updates pertaining to the Indian and international


environment

INSURANCE

An entry into this segment helped complete the client's product basket; concurrently,
it graduated the Company into a one stop retail financial solutions provider. To ensure
maximum reach to customers across India, we have employed a multi pronged
approach and reach out to customers via our Network, Direct and Affiliate channels.
Following the opening of the sector in 1999-2000, a number of private sector
insurance service providers commenced operations aggressively and helped grow the
market.

The Companies entry into the insurance sector derisked the Company from a
predominant dependence on broking and equity-linked revenues. The annuity based
income generated from insurance intermediation result in solid core revenues across
the tenure of the policy.

Over the last five years, India Infoline sharpened its competitive edge in this business
segment through the following initiatives

Client base

Grew its 40,000 strong client base through knowledge-led analysis, translating into an
attractive opportunity to cross-sell products and generate referral business.

Distribution network

Invested in a distribution network of 177 branches across 19 states, which provided it


with an unmatched reach within its segment.

Hands-on training

Invested aggressively in training its field force more than 100 hours a year in product
attributes across the insurance sector - highlighting various product details and
marketing skills apart from regular meets where best practices are shared.

Technology

The Company provides a prudent mix of proprietary and outsourced technologies,


which facilitate business growth without a corresponding increase in costs.

Research and advice

Provided clients with advice on diverse investment products based on the customers
existing and prospective financial profile.
Key features

India Infoline was the first corporate in India to get the agency licence in early
2001

The Company is the biggest corporate agency in India for life insurance
products

The Company operates multiple channels, namely branch network, preferred


client group, direct marketing, corporate tax advisory, walk-ins and seminars, to reach
out to customers.
THEORITICAL FRAME WORK

DEFINITION & SETUP OF MUTUAL FUND

In Mutual Fund Book, published by Investment company of U.S.A., A


Mutual Fund is a financial service organization that receives money from
shareholders, invest it, earns returns on it, attempts to make it grows and aggress to
pay the share holders cash on demand for the current value of his investment. The
investment managers of the funds manage these savings in such a way that the risk is
minimized and steady return is ensured.

Securities and Exchange Board of India (Mutual Funds) Regulations,


1996 define Mutual Fund as, a fund established in the form of a trust to raise
monies through the sale of units to the public or a section of the public under one or
more schemes for investing in securities, including, money market instrument.

INVESTING WITH MUTUAL FUNDS

People have different investment needs depending on their financial goals,


tolerance for risk and time frame when they need the money they invested.

Our mutual funds are created with these needs in mind we start with you.
Before you choose investments, think about your financial goals, risk tolerance and
time frame.

Then choose investments that match them. For more information about these
topics see the Relevant Links box to the right.

The investment pyramid below shows fund categories that are suitable for
different time frames, with the longest time frames at the top and the shortest at the
base of the pyramid.
CHARACTERISTICS OF MUTUAL FUNDS

1. A mutual fund actually belongs to the investors who have pooled their funds.
The ownership of the mutual fund is in the hands of the investors.

2. A mutual fund is managed by investment professionals and other services


providers, who earn a fee their services, from the fund.

3. The pool of the funds is invested in a portfolio of marketable investments. The


value of the portfolio is updated everyday.

4. The investors share in the fund is denominated by units. The value of the
units changes with the change in the portfolios value, everyday. The value of
one unit of the investment is called as the Net Asset Value or NAV

5. The investment portfolio of the mutual fund is created accordingly to the


stated investment objectives of the funds.

MUTUAL FUND STRUCTURE

SPONSOR

Sponsor is the person who acting alone or in combination with another body
corporate establishes a mutual fund. Sponsor must contribute at least 40% of the net
worth of the Investment Managed and meet the eligibility criteria prescribed under the
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. The
Sponsor is not responsible or liable for any loss or shortfall resulting from the
operation of the Schemes beyond the initial contribution made by it towards setting up
of the Mutual Fund.
TRUST

The Mutual Fund is constituted as a trust in accordance with the provisions of


the Indian Trusts Act, 1882 by the sponsor. The trust deed provisions of the India
Trusts Act, 1882 by the sponsor. The trust deed is registered under the Indian
Registration Act, 1908.

TRUSTEE

Trustee is usually a company (corporate body) or a Board of Trustees (body of


individuals). The main responsibility of the Trustee is to safeguard the interest of the
unit holders and inter alia ensure that the AMC functions in the interest of investors
and in accordance with the securities and Exchange Board of India (Mutual Funds)
Regulations, 1996, the provisions of the Trust Deed and the offer Documents of the
respective Schemes. At least 2/3 rd directors of the Trustee are independent directors
who are not associated with the sponsor in any manner.

ASSET MANAGEMENT COMPANY (AMC)

The AMC is appointed by the Trustee as the Investment Manager of the


Mutual Fund. The AMC is required to be approved by the Securities and Exchange
Board of India (SEBI) to act as an asset management company of the Mutual Fund. At
least 50% of the directors AMC are independent directors who are not associated with
the Sponsor in any manner. The AMC must have a net worth of at least 10 crores at all
times.

REGISTAR AND TRANSFER AGENT

The AMC if so authorized by the Trust Deed appoints the Registrar and
Transfer Agent to the Mutual Fund. The Registrar processes the application form,
redemption requests and dispatches account statements to the unit holders. The
Registrar and Transfer agent also handles communications with investors and updates
investor records.
ELIGIBILITY TO BUY MUTUAL FUND UNITS

Mutual Funds usually specify in their offer documents the categories eligible to invest
in a given scheme. Usually all categories of investors except for foreign nationals and
entities are eligible to apply. However there can be special schemes not specific
categories which are not available for other categories of investors. For example, a
fund may have special schemes for trusts and charitable organizations in which other
categories are not eligible to apply. In some cases, the minimum investment limit is
very high, intending to attract institutional and large investors. The following
categories of investors are eligible:

1. Resident individuals

2. Indian companies

3. Indian trusts and charitable institutions

4. Banks

5. Non-banking financial institutions

6. Insurance companies

7. Provident funds

8. Non-resident Indians

9. Overseas corporate bodies

10. SEBI registered foreign institutional investors

FACTORS CONDUCIVE TO THE GROWTH OF MUTUAL FUNDS

On observing the past trends, it can be seen that certain factors are essential
for he growth of the mutual funds industry. These factors are:
INVESTOR BASE

A Mutual fund makes it possible for investors to earn a higher return on their
capital by pooling the capital of a large number of small investors and investing the
pooled sum in a diversified manner. As the small investors cannot diversity on their
own, their presence acts as a catalyst for the mutual funds to grow. As different
investors have different investment requirements their presence also acts as an
incentive for the mutual funds to come up with new schemes, thus helping in further
evolution of the industry.

RETURNS ON MARKET

Mutual funds invest in a diversified manner; the returns generated by them are
generally reflective of the market returns. Higher the market returns, higher the
expected returns from mutual funds. Higher expected returns attract more investors,
giving a boost to the mutual funds.

INVESTMENT AVENUES

The presence of certain investment avenues make mutual funds more


attractive than direct investment. One example of such investment avenues is money
market instruments. These instruments generally involve a large minimum
investment, which makes it impossible for a small investor to invest directly. Another
example is investment in real estate. While a small investor may not be able to invest
in real estate, especially on a diversified basis, internationally, there are mutual funds
dedicated to such investments and are called Real Estate Mutual Funds (REMF) such
funds are not presently not operating in India. Then there are some investment
avenues which require in-depth knowledge of complex instruments, for example,
securitized debt, derivatives, etc. Small investors may not have the knowledge to
understand the complexities of such instruments on their own, and may find it
preferable to depend on the expert knowledge offered by mutual fund mangers. The
presence of such instruments makes investments flow to mutual MUTUAL FUND A
GLOBALLY PROVEN
INVESTMENT AVENUE

World wide, Mutual Fund or unit trust as it is referred to in some parts of the
world, has a long and successful history. The popularity of Mutual Fund has increase
manifold in developed financial markets, like the United States. As at the end of
March 2006, in the US alone there were 8002 Mutual Fund with total assets of over
US $ 9.36 trillion (Rs. 427 lakh crore)

In India, the Mutual Fund industry started with the setting up of the Unit Trust
of India in 1964. Public sector banks and financial institutions were allowed to
establish MF in 1987. Since 1993, private sector and foreign institutions were
permitted to set up MFs.

In February 2003, following the repeal of the Unit Trust of India Act 1963 the
erstwhile UTI was bifurcated into two separate entities Viz. The specified undertaking
of the Unit Trust of India, representing broadly, the absets of US 64 schemes, assured
the turns and certain others scheme and UTI MF conforming to SEBI MF
Regulations.

As at the end of March 2006, there were 29 MFs, which managed assets of Rs
231862 crores (Us $52 billion) under 592 scheme this fast growing industry is
regulated by the Securities and Exchange Board of India (SEBI)

The mutual fund industry in India started in 1963 with the formation of Unit
Trust of India, at the initiative of the Government of India and Reserve Bank. The
history of mutual fund in India can be broadly divided into four distinct phases.
INTRODUCTION TO INSURANCE

A quick, simple definition of insurance could be as follows: Reimbursement in a


situation of loss. Usually, someone decides that insurance is needed. In order for the
concept of insurance to arise, a prepayment of some type is required. In the case of
typical, everyday general auto, health and life insurance, for example, the pre payment
is in the form of a premium. Prior to the eve of the year 2000, thousands of people
flocked to the stores, stocking up on numerous supplies. They feared that something
catastrophic was going to take place once the clock struck midnight, and if so, they
wanted to do prepare. Isnt this a form of insurance? Sure in its basic definition. The
supplies they purchased would act as reimbursement in the case of loss.

Early insurance goes back to the Egyptian times. It was known that around 3000 BC,
Chinese merchants dispersed their shipments among several vessels to avoid the
possibility of damage or loss. There are some insurance companies around today in
the United States that provided insurance back in the mid 1700s, as well as some that
provided relief to banks during the 1930s and the Great Depression. Today, there is
insurance for any aspects of daily living: Business, Auto, Health, Life and Travel.
Each of those categories includes sub-categories, branching off into numerous
divisions.

From the beginning human societies sought ways to soften the shocks of existence. Our
ancestors were very much aware that no individual could go it alone, that only by pooling the
resources of the many could the unfortunate few be helped.

This simple notion of mutuality persists like a welcome footpath through the incredible tangle
of human history. While empires have risen and collapsed, through wars, famines and
pestilence, during the ebb and flow of struggling generations, the idea of insurance as the
victory of human thought over the rude violence of life

Even as human society emerged from the darkness of unrecorded time, we see it at once. In
ancient Babylonia, where from the confluence of two rivers, enterprising merchants sent
caravans and ships to trade with all parts of the known world: with Egypt, Phoenicia, India
and China.

To reduce the risk of robbery, plunder and capture for ransom, the Babylonians devised a
system of contracts in which the supplier of capital for a venture agreed to cancel the loan if
the trader was robbed of his goods. The trader who borrowed the capital paid an extra amount
for this protection (a premium) in addition to the usual interest. As for the lender, collecting
these premiums from many traders made it possible for him to absorb the losses of the few.
This arrangement proved to be more appealing and sensible than the earlier one of pledging
not only the traders ships and other tangible property, but also his life (as a slave) and those
of his family as well. Accordingly, the practice was sensibly legalized in the Code of
Hammurab.

These arrangements became well known to the Phoenicians and to the Greeks, Hindus we
discover a comprehensive code of sea laws, including a principle of jettison or general
average. It states that if it becomes necessary to throw goods overboard in order to lighten
the ships, such sacrifice for the common benefit should be made good by a common
contribution. The very word insurance is derived from the Latin word for security.

UNIT LINKED INSURANCE PLANS

Unit linked insurance plan (ULIP) is a life insurance solution that provides the client
with the benefits of protection and flexibility in investment. It is a solution which
provides for life insurance where the policy value at any time varies according to the
value of the underlying assets at the time. The investment is denoted as unit and is
represented by the value that it has attained called as Net Asset Value (NAV).

In other words, it is a policy, which provides for life insurance where the policy value
at any time varies according to the value of the underlying assets at the time. ULIP is
life insurance solution that provides for the benefits of protection and flexibility in
investment. The investment is denoted as units and is represented by the value that it
has attained called as Net Asset Value (NAV).

A unit-linked insurance plan provides both insurance and investment benefit. In unit-
linked plans, the premiums paid are invested in funds offered by the company; the
policyholder determines the appropriate ratio of investments into these funds. The
funds are generally invested in equities, debt instruments, money market instruments,
and government securities.
The value of the policy is determined on any day by multiplying the number of units
issued by the value of units on that day. The value of these units is called the Net
Asset Value (NAV) and is normally published in newspapers on a daily basis. Unit-
linked insurance products are risky because the premium money invested is subject to
market risk. The funds do not offer a guaranteed or assured return. Insurance
companies will only show you a projected return, which may or may not be achieved
during the term of the policy.

ULIPs are a category of goal-based financial solutions that combine the safety of
insurance protection with wealth creation opportunities. In ULIPs, a part of the
investment goes towards providing a life cover. The residual portion of the ULIP is
invested in a fund which in turn invests in stocks or bonds; the value of investments
alters with the performance of the underlying fund opted by the customer.

Simply put, ULIPs are structured in such that the protection element and the savings
element are distinguishable, and hence managed according to your specific needs. In
this way, the ULIP plan offers unprecedented flexibility and transparency.

ULIPs came into play in 1960s and became very popular in Western Europe and
America. The reason that is attributed to the wide spread popularity of ULIP is
because of the transparency and the flexibility which it offers to the clients. As time
progressed the plans were also successfully mapped along with life insurance needs to
retirement planning .In todays times ULIP provides solution for all the needs of a
client like insurance planning, financial needs, financial planning for childrens future
and retirement planning.

STRUCTURE OF ULIPs

ULIPs offered by different insurers have varying charge structures. Broadly

the different types of fees and charges are given below. However the insurers have the
right to revise or cancel the fees and charges over a period of time.

Premium Allocation charges

This is a percentage of the premium appropriated towards charges before


allocating the units under the policy. This charge normally includes initial and renewal
expenses apart from commission expenses.

Mortality Charges

These are charges to provide for the cost of insurance coverage under the plan.
Mortality charges depend on number of factors such as age, amount of coverage, state
of health etc.

Fund Management Charges

These are fees levied for management of the fund(s) and are deducted before arriving
at the Net Asset Value (NAV) .

Policy/ Administration Charges

These are the fees for administration of the plan and levied by cancellation of units.
This could be flat throughout the policy term or vary at a predetermined rate.

Surrender Charges

A surrender charge may be deducted for premature partial or full encashment of units
wherever applicable, as mentioned in the policy conditions.

Fund Switching Charge

Generally a limited number of fund switches may be allowed each year without
charge, with subsequent switches, subject to a charge. But now a days many insurers
offer fund switching free of cost.

Service Tax Deductions

Before allotment of the units the applicable service tax is deducted from the risk
portion of the premium.
TYPES OF FUNDS UNDER ULIPs

Most insurers offer a wide range of funds to suit ones investment objectives, risk
profile and time horizons. Different funds have different risk

profiles. The potential for returns also varies from fund to fund. The following are
some of the common types of funds available along with an indication of their risk
characteristics.

General description
Nature of investments Risk
category

Primarily invested in
company stocks with the
Equity Funds Medium to High
general aim of capital
appreciation.

Invested in corporate
Medium
income,fixed interest and bonds,government
bond funds securitiess and other fixed
income instruments.

Sometimes known as low


money market funds-
Cash funds invested in cash,bank low
deposits and money market
instruments

Combining equity
Balanced funds investement with fixed Medium
inerest instruments

ADVANTAGES OF ULIPS

ULIP distinguishes itself through the multiple benefits that it provides to the
consumer. The plan is a one stop solution for everything the customers want. Unit
Linked Insurance Plans (ULIPs) are different from traditional plans purely because,
they are much more transparent, various charges are shared with the customer before
the sale of the product, so as to enable the customer to make an informed decision.

Customers have the flexibility to choose their life cover. Also the customers have the
choice of multiple fund options based on their risk appetite, thereby enabling an
investor to make the desired returns from the investment.

The following are some of the advantages of Unit linked plans:

1. A combination of protection and tax advantage, unit-linked policies dominate


a huge chunk of the portfolio of the private insurers. The annual premium
contributes over 70% to the premium income.
2. In the event of death during the life of the policy, the sum assured or value of
the policy fund whichever is higher is paid to the nominees.
3. There is a lot of flexibility in these plans with falling interest rates. So an
investor can adjust his risk profile according to his choice. The risk element is
transferred to the investor and the insurance company enjoys the capital and
solvency.
4. The client is aware of the "no guarantee" era and he plans his investment
judiciously.
5. The client enjoys transparency, by way of returns on the equity markets
simultaneously enjoying the benefits of life cover.
6. It's tax-free, unlike a mutual fund or any other investment, where the gains are
taxed.
7. The client also has an option of restructuring his investment pattern which is a
value addition to the original policy (i.e. top-ups)
8. Contrary to the traditional policies, the unit linked policies are more
transparent, flexible and easy to understand. The customer has open options
for investment and he is consciously aware of the ratio of his premium
towards investment and life cover.

The investment is denoted as unit and is represented by the value that it has attained
called as Net Asset Value (NAV).
UNIT LINKED UNITS UNDERLYING
INSURANCE
POLICIES IN INVESTMENT

FUNDS

ULIP came into play in 1960s and became very popular in Western Europe and
America. The reason that is attributed to the wide spread popularity of ULIP is
because of the transparency and the flexibility which it offers to the clients.

As time progressed the plans were also successfully mapped along with life insurance
needs to retirement planning.

In todays times ULIP provides solution for all the needs of a client like insurance
planning,financial needs,financial planning for childrens future and retirement
planning.
COMPARISON OF ULIP WITH OTHER INVESTMENT MODULES

MIN.
MAX
OTHER TAX
TAX FREE
RATE OF TIME INVES BENE
RISK INVEST
INSTRUME RETURN PERIOD T RETURN
NT FIT
MENT
MENT

NSC 8% 6years No 100 No limit No Yes

PPF 8% 15years No 500 70000 Yes Yes

Market
ELSS 3years Risky 500 No limit Yes Yes
return

Market Risky
ULIP 5years 500 No limit Yes Yes
return Module

FD 9.5% 5years No 10000 No limit No Yes

Only
Capital
in
Market Open
MUTUAL High 500 No limit gain @10%
Return Ended for time less ELSS
FUND than 1year Funds

Capital gain
No time Very @10% for
STOCK Variable Variable No limit No
high time less
frame
than 1 year

Life Time Super


It is necessary that we understand a few terms before look in to the various financial
planning ways.

Save: this is an activity that helps in the asset allocation. It has both a short term &
long term perspective.

Invest: this is an activity that focuses asset creation. It involves making money
from money.

Spend: this is the activity of using the money for our expenses.

ASSET ACCUMULATION
SAVE
ASSET
CREATION

INVEST
ASSET PROTECTION

SPEND

Factors Influencing The Buying Of Unit Linked Insurance Plan

The degree of buying of ULIPs insurance varies from person to person. It depends
upon many factors. The factors can be classified into personal, social, economic,
psychological and company related variables. Age and experience of policyholder are
personal factors, while the coeducation is a social factor. Economic factors include
occupation, income and wealth, and the psychological factors consist of perception,
satisfaction about the services rendered by insurance companies, the impact of
advertisement and personal selling made by insurance companies on policyholders.
The company related variables are the promotional efforts to sell the policies to
prospective buyers. These include advertisement and personal selling too.
COMPARISON OF RETURNSOF HDFC ANNUAL INTERVAL FUND -
SERIES 1 - PLAN A HDFC ANNUAL INTERVAL FUND- SERIES I AND SBI
LIFE KALYAN ULIP, GROUP SHORT TERM PLUS FUND 01-MAR-2016 TO
30-MAY-2016

HDFC ANNUAL INTERVAL FUND SBI LIFE KALYAN ULIP


EFFECTIV NAV
Date NAV RETURNS
E DATE RETURNS
10-03-2016 10.8374 - 01-03-2016 14.96
-
11-03-2016 10.8395 0.019 02-03-2016 14.96
0.027
14-03-2016 10.8459 0.059 03-03-2016 14.96
-0.019
15-03-2016 10.848 0.019 04-03-2016 14.97
0.095
16-03-2016 10.8501 0.019 08-03-2016 14.99
0.123
17-03-2016 10.8523 0.020 09-03-2016 15.00
0.087
18-03-2016 10.8544 0.019 10-03-2016 14.99
-0.097
21-03-2016 10 -7.871 11-03-2016 14.99
0.023
22-03-2016 10.0021 0.021 14-03-2016 15.03
0.239
23-03-2016 10.0035 0.014 15-03-2016 15.05
0.142
28-03-2016 10.0138 0.103 16-03-2016 15.07
0.167
29-03-2016 10.0187 0.049 17-03-2016 15.15
0.470
30-03-2016 10.0253 0.066 18-03-2016 15.15
0.026
31-03-2016 10.0653 0.399 21-03-2016 15.19
0.275
04-04-2016 10.0764 0.110 22-03-2016 15.21
0.132
05-04-2016 10.0779 0.015 23-03-2016 15.20
-0.055
06-04-2016 10.0749 -0.030 28-03-2016 15.28
0.508
07-04-2016 10.0841 0.091 29-03-2016 15.26
-0.131
11-04-2016 10.0919 0.077 30-03-2016 15.27
0.041
12-04-2016 10.0941 0.022 31-03-2016 15.30
0.243
13-04-2016 10.098 0.039 01-04-2016 15.31
0.020
18-04-2016 10.107 0.089 04-04-2016 15.32
0.065
20-04-2016 10.1114 0.044 05-04-2016 15.32
0.036
21-04-2016 10.1114 0.000 06-04-2016 15.33
0.070
22-04-2016 10.1135 0.021 07-04-2016 15.36
0.211
25-04-2016 10.1175 0.040 08-04-2016 15.37
0.019
26-04-2016 10.1194 0.019 11-04-2016 15.40
0.212
27-04-2016 10.1199 0.005 12-04-2016 15.41
0.048
28-04-2016 10.1222 0.023 13-04-2016 15.38
-0.209
29-04-2016 10.1238 0.016 18-04-2016 15.39
0.090
02-05-2016 10.1283 0.044 20-04-2016 15.40
0.044
03-05-2016 10.1292 0.009 21-04-2016 15.39
-0.018
04-05-2016 10.1319 0.027 22-04-2016 15.38
-0.055
05-05-2016 10.1339 0.020 25-04-2016 15.39
0.057
06-05-2016 10.1354 0.015 26-04-2016 15.38
-0.110
09-05-2016 10.1419 0.064 27-04-2016 15.40
0.148
10-05-2016 10.1452 0.033 28-04-2016 15.40
0.019
11-05-2016 10.1482 0.030 29-04-2016 15.41
0.019
12-05-2016 10.1528 0.045 02-05-2016 15.41
0.038
13-05-2016 10.1545 0.017 03-05-2016 15.41
0.021
16-05-2016 10.1612 0.066 04-05-2016 15.42
0.033
17-05-2016 10.1632 0.020 05-05-2016 15.42
0.021
18-05-2016 10.1654 0.022 06-05-2016 15.42
-0.032
19-05-2016 10.1673 0.019 09-05-2016 15.45
0.182
20-05-2016 10.1686 0.013 10-05-2016 15.45
-0.003
23-05-2016 10.1746 0.059 11-05-2016 15.44
-0.025
24-05-2016 10.176 0.014 12-05-2016 15.46
0.129
25-05-2016 10.1794 0.033 13-05-2016 15.45
-0.098
26-05-2016 10.1812 0.018 16-05-2016 15.46
0.064
27-05-2016 10.1829 0.017 17-05-2016 15.46
0.012
30-05-2016 10.1888 0.058 18-05-2016 15.45
-0.039
31-05-2016 10.1906 0.018 19-05-2016 15.46
0.070
AVERAGE -0.114
0.068
RETURNS OF MUTUAL FUNDS AND ULIPS
1
0
-1
-2
-3
-4
RETURNS -5
-6
-7
-8
-9

DATE

HDFC ANNUAL INTERVAL FUND SBI LIFE KALYAN ULIP

INTERPRETATION:
The above graph represents the returns of HDFC Annual Interval Fund and SBI
ULIPS it shows that there is continuous stability in net asset value.

If we see the table the average return is -0.114 and risk is 1.099. Thus it can be said
that risk is very high when compared to returns.

The return on 11-03-2016 is 0.019 and at the end of the study period on 31-05-
2016the return is 0.018.
COMPARISON OF RETURNSOF HDFC ANNUAL INTERVAL FUND -
SERIES 1 - PLAN A HDFC ANNUAL INTERVAL FUND- SERIES I AND SBI
LIFE KALYAN ULIP, GROUP SHORT TERM PLUS FUND JUNE TO
AUGUST 2016

HDFC ANNUAL INTERVAL FUND SBI LIFE KALYAN ULIP


RETURN EFFECTIVE
Date NAV NAV RETURNS
S DATE
01-06-2016 10.1923 - 01-06-2016 15.49 -
02-06-2016 10.1945 0.022 02-06-2016 15.52 0.150
03-06-2016 10.1969 0.024 03-06-2016 15.50 -0.127
06-06-2016 10.2042 0.072 06-06-2016 15.50 0.041
07-06-2016 10.2091 0.048 07-06-2016 15.51 0.048
08-06-2016 10.2153 0.061 08-06-2016 15.54 0.194
09-06-2016 10.217 0.017 09-06-2016 15.51 -0.229
10-06-2016 10.2192 0.022 10-06-2016 15.51 0.019
13-06-2016 10.2248 0.055 13-06-2016 15.50 -0.054
14-06-2016 10.2268 0.020 14-06-2016 15.51 0.055
15-06-2016 10.2296 0.027 15-06-2016 15.53 0.106
16-06-2016 10.2317 0.021 16-06-2016 15.53 0.026
17-06-2016 10.2334 0.017 17-06-2016 15.52 -0.039
20-06-2016 10.2402 0.066 20-06-2016 15.53 0.056
21-06-2016 10.2419 0.017 21-06-2016 15.54 0.062
22-06-2016 10.2456 0.036 22-06-2016 15.55 0.077
23-06-2016 10.2483 0.026 23-06-2016 15.57 0.092
24-06-2016 10.2504 0.020 24-06-2016 15.57 -0.011
27-06-2016 10.2558 0.053 27-06-2016 15.61 0.274
28-06-2016 10.2572 0.014 28-06-2016 15.60 -0.054
29-06-2016 10.2587 0.015 29-06-2016 15.63 0.222
30-06-2016 10.2606 0.019 30-06-2016 15.66 0.164
01-07-2016 10.2655 0.048 01-07-2016 15.67 0.069
04-07-2016 10.2751 0.094 04-07-2016 15.66 -0.046
05-07-2016 10.2786 0.034 05-07-2016 15.71 0.300
07-07-2016 10.2826 0.039 07-07-2016 15.71 0.001
08-07-2016 10.2864 0.037 08-07-2016 15.72 0.054
11-07-2016 10.2947 0.081 11-07-2016 15.73 0.056
12-07-2016 10.2995 0.047 12-07-2016 15.76 0.172
13-07-2016 10.3042 0.046 13-07-2016 15.80 0.289
14-07-2016 10.3072 0.029 14-07-2016 15.79 -0.060
15-07-2016 10.3074 0.002 15-07-2016 15.81 0.104
18-07-2016 10.3124 0.049 18-07-2016 15.82 0.048
19-07-2016 10.3144 0.019 19-07-2016 15.85 0.205
20-07-2016 10.3181 0.036 20-07-2016 15.86 0.086
21-07-2016 10.3198 0.016 21-07-2016 15.88 0.108
22-07-2016 10.3217 0.018 22-07-2016 15.91 0.182
25-07-2016 10.3268 0.049 25-07-2016 15.93 0.126
26-07-2016 10.3293 0.024 26-07-2016 15.93 0.018
27-07-2016 10.3312 0.018 27-07-2016 15.94 0.033
28-07-2016 10.3328 0.015 28-07-2016 16.01 0.451
29-07-2016 10.3344 0.015 29-07-2016 16.02 0.054
01-08-2016 10.3405 0.059 01-08-2016 16.11 0.568
02-08-2016 10.3412 0.007 02-08-2016 16.07 -0.243
03-08-2016 10.3434 0.021 03-08-2016 16.03 -0.222
04-08-2016 10.3455 0.020 04-08-2016 16.03 -0.018
05-08-2016 10.3468 0.013 05-08-2016 16.05 0.155
08-08-2016 10.3521 0.051 08-08-2016 16.07 0.098
09-08-2016 10.3533 0.012 09-08-2016 16.12 0.341
10-08-2016 10.3557 0.023 10-08-2016 16.16 0.211
11-08-2016 10.358 0.022 11-08-2016 16.19 0.183
12-08-2016 10.3602 0.021 12-08-2016 16.22 0.182
16-08-2016 10.3678 0.073 16-08-2016 16.21 -0.056
18-08-2016 10.3716 0.037 17-08-2016 16.21 0.018
19-08-2016 10.3737 0.020 18-08-2016 16.18 -0.196
22-08-2016 10.3794 0.055 19-08-2016 16.19 0.054
23-08-2016 10.3806 0.012 22-08-2016 16.16 -0.195
24-08-2016 10.3832 0.025 23-08-2016 16.18 0.125
25-08-2016 10.3851 0.018 24-08-2016 16.20 0.132
26-08-2016 10.387 0.018 25-08-2016 16.21 0.068
29-08-2016 10.3926 0.054 26-08-2016 16.22 0.089
30-08-2016 10.3938 0.012 29-08-2016 16.20 -0.134
31-08-2016 10.3956 0.017 30-08-2016 16.25 0.307
AVERAGE 0.032 0.077

RETURNS OF MUTUAL FUNDS AND ULIPS


0.7
0.6
0.5
0.4
0.3
0.2
RETURNS 0.1
0
-0.1
-0.2
-0.3

DATE

INTERPRETATION:

The above graph represents the returns of HDFC Annual Interval fund and HDFC
ULIPS it shows that there is continuous fluctuations in net asset value.

If we see the table the average return is 0.032 and risk is 0.0010. Thus it can be said
that risk is very low when compared to returns.

The return on 02-06-2016 is 0.022 and at the end of the study period on 31-08-2016
the return is 0.017.
COMPARISON OF RETURNSOF HDFC ANNUAL INTERVAL FUND -
SERIES 1 - PLAN B HDFC ANNUAL INTERVAL FUND- SERIES I AND SBI
LIFE KALYAN ULIP PLUS (V02), SBI LIFE GROUP DEBT PLUS FUND
IIFROM MARCH TO MAY 2016
HDFC ANNUAL INTERVAL SBI LIFE KALYAN ULIP
FUND
EFFECTIVE NAV
Date NAV RETURNS
DATE RETURNS
01-03-2016 11.942
10-03-2016 11.8563 - -
02-03-2016 11.957
11-03-2016 11.8587 0.020 0.126
03-03-2016 11.968
14-03-2016 11.8658 0.060 0.092
04-03-2016 11.972
15-03-2016 11.8682 0.020 0.032
08-03-2016 11.981
16-03-2016 11.8706 0.020 0.074
09-03-2016 11.989
17-03-2016 11.8729 0.019 0.070
10-03-2016 11.984
18-03-2016 11.8753 0.020 -0.043
11-03-2016 11.995
21-03-2016 11.8823 0.059 0.086
14-03-2016 12.021
22-03-2016 11.8847 0.020 0.221
15-03-2016 12.025
23-03-2016 11.887 0.019 0.030
16-03-2016 12.047
28-03-2016 11.8983 0.095 0.186
17-03-2016 12.084
29-03-2016 11.9004 0.018 0.309
18-03-2016 12.101
30-03-2016 11.9069 0.055 0.137
21-03-2016 12.152
31-03-2016 11.9478 0.343 0.421
22-03-2016 12.157
04-04-2016 11.9614 0.114 0.040
23-03-2016 12.155
05-04-2016 11.9629 0.013 -0.010
28-03-2016 12.165
06-04-2016 11.9588 -0.034 0.078
29-03-2016 12.151
07-04-2016 11.9695 0.089 -0.110
30-03-2016 12.181
11-04-2016 11.9785 0.075 0.240
31-03-2016 12.211
12-04-2016 11.9817 0.027 0.246
01-04-2016 12.211
13-04-2016 11.9865 0.040 0.003
04-04-2016 12.245
18-04-2016 11.9972 0.089 0.277
05-04-2016 12.24
20-04-2016 12.0022 0.042 -0.040
06-04-2016 12.247
21-04-2016 12.0023 0.001 0.061
07-04-2016 12.257
22-04-2016 12.0046 0.019 0.078
08-04-2016 12.26
25-04-2016 12.01 0.045 0.021
11-04-2016 12.299
26-04-2016 12.0122 0.018 0.321
12-04-2016 12.318
27-04-2016 12.0132 0.008 0.159
13-04-2016 12.321
28-04-2016 12.0155 0.019 0.019
18-04-2016 12.346
29-04-2016 12.0173 0.015 0.208
20-04-2016 12.346
02-05-2016 12.0224 0.042 -0.005
21-04-2016 12.327
03-05-2016 12.0237 0.011 -0.155
22-04-2016 12.335
04-05-2016 12.0269 0.027 0.070
25-04-2016 12.325
05-05-2016 12.0288 0.016 -0.083
26-04-2016 12.342
06-05-2016 12.0306 0.015 0.135
27-04-2016 12.346
09-05-2016 12.0382 0.063 0.038
RETURNS OFMUTUAL FUNDS AND ULIPS
0.5

0.4

0.3

0.2

0.1
RETURNS
0

-0.1

-0.2

DATE

INTERPRETATION:

The above graph represents the returns of HDFC Annual Interval fund and SBI ulips it
shows that there is continuous rise and fall in net asset value.

If we see the table the average return is 0.039 and risk is 0.0005. Thus it can be said
that risk is very low when compared to returns.

The return on 11-03-2016 is 0.020 and at the end of the study period on 31-05-2016
the return is 0.017.
COMPARISON OF RETURNSOF HDFC ANNUAL INTERVAL FUND -
SERIES 1 - PLAN B HDFC ANNUAL INTERVAL FUND- SERIES I AND SBI
LIFE KALYAN ULIP PLUS (V02), SBI LIFE GROUP DEBT PLUS FUND II
FROM JUNE TO AUGUST 2016

HDFC ANNUAL INTERVAL SBI LIFE KALYAN ULIP


FUND
RETURN EFFECTIV NAV
Date NAV
S E DATE RETURNS
01-06-2016 12.098 - 01-06-2016 12.446
7 -
02-06-2016 12.101 0.022 02-06-2016 12.456
4 0.084
03-06-2016 12.104 0.021 03-06-2016 12.458
0.010
06-06-2016 12.1126 0.071 06-06-2016 12.47
0.096
07-06-2016 12.1182 0.046 07-06-2016 12.478
0.068
08-06-2016 12.125 0.063 08-06-2016 12.482
8 0.030
09-06-2016 12.127 0.016 09-06-2016 12.478
7 -0.034
10-06-2016 12.130 0.022 10-06-2016 12.476
4 -0.012
13-06-2016 12.137 0.054 13-06-2016 12.464
-0.096
14-06-2016 12.139 0.021 14-06-2016 12.47
5 0.050
15-06-2016 12.142 0.026 15-06-2016 12.484
6 0.111
16-06-2016 12.145 0.021 16-06-2016 12.479
2 -0.038
17-06-2016 12.147 0.020 17-06-2016 12.485
6 0.050
20-06-2016 12.155 0.065 20-06-2016 12.499
5 0.105
21-06-2016 12.157 0.017 21-06-2016 12.5
6 0.010
22-06-2016 12.162 0.036 22-06-2016 12.508
0.064
23-06-2016 12.165 0.025 23-06-2016 12.526
1 0.142
24-06-2016 12.167 0.017 24-06-2016 12.501
2 -0.193
27-06-2016 12.174 0.056 27-06-2016 12.524
0.181
28-06-2016 12.175 0.016 28-06-2016 12.538
9 0.114
29-06-2016 12.177 0.013 29-06-2016 12.568
5 0.238
30-06-2016 12.179 0.019 30-06-2016 12.587
8 0.150
01-07-2016 12.185 0.050 01-07-2016 12.609
9 0.171
04-07-2016 12.196 0.088 04-07-2016 12.623
6 0.118
05-07-2016 12.2011 0.037 05-07-2016 12.641
0.141
07-07-2016 12.205 0.039 07-07-2016 12.654
9 0.102
08-07-2016 12.210 0.037 08-07-2016 12.661
4 0.054
11-07-2016 12.219 0.078 11-07-2016 12.69
9 0.228
12-07-2016 12.225 0.046 12-07-2016 12.724
5 0.273
13-07-2016 12.231 0.047 13-07-2016 12.75
2 0.201
14-07-2016 12.234 0.026 14-07-2016 12.766
4 0.125
15-07-2016 12.235 0.005 15-07-2016 12.771
0.043
18-07-2016 12.2411 0.050 18-07-2016 12.773
0.011
19-07-2016 12.243 0.021 19-07-2016 12.793
7 0.154
20-07-2016 12.247 0.034 20-07-2016 12.82
9 0.212
21-07-2016 12.249 0.016 21-07-2016 12.823
9 0.029
22-07-2016 12.252 0.019 22-07-2016 12.845
2 0.166
25-07-2016 12.258 0.050 25-07-2016 12.868
3 0.180
26-07-2016 12.261 0.024 26-07-2016 12.865
2 -0.023
27-07-2016 12.263 0.017 27-07-2016 12.87
3 0.038
28-07-2016 12.265 0.015 28-07-2016 12.93
1 0.466
29-07-2016 12.266 0.015 29-07-2016 12.947
9 0.133
01-08-2016 12.274 0.061 01-08-2016 12.975 0.216
4
02-08-2016 12.275 0.005 02-08-2016 12.958
-0.132
03-08-2016 12.277 0.020 03-08-2016 12.93
5 -0.218
04-08-2016 12.280 0.022 04-08-2016 12.941
2 0.091
05-08-2016 12.282 0.015 05-08-2016 12.966
0.190
08-08-2016 12.288 0.049 08-08-2016 12.983
0.129
09-08-2016 12.289 0.015 09-08-2016 13.013
9 0.236
10-08-2016 12.292 0.022 10-08-2016 13.029
6 0.120
11-08-2016 12.295 0.021 11-08-2016 13.045
2 0.123
12-08-2016 12.297 0.020 12-08-2016 13.058
6 0.102
16-08-2016 12.306 0.074 16-08-2016 13.055
7 -0.021
18-08-2016 12.3111 0.036 17-08-2016 13.054
-0.008
19-08-2016 12.313 0.019 18-08-2016 13.038
5 -0.125
22-08-2016 12.320 0.055 19-08-2016 13.048
3 0.078
23-08-2016 12.322 0.014 22-08-2016 13.023
-0.195
24-08-2016 12.324 0.020 23-08-2016 13.025
5 0.017
25-08-2016 12.326 0.017 24-08-2016 13.043
6 0.140
26-08-2016 12.328 0.018 25-08-2016 13.052
8 0.067
29-08-2016 12.335 0.054 26-08-2016 13.057
5 0.038
30-08-2016 12.337 0.012 29-08-2016 13.075
0.133
31-08-2016 12.339 0.017 30-08-2016 13.105
1 0.232
average 0.032
0.083
RETURNS OF MUTUAL FUNDS AND NAV
0.6

0.4

0.2

0
RETURNS
-0.2

-0.4

Title

INTERPRETATION:

The above graph represents the returns of HDFC Annual Interval fund and SBI ulips it
shows that there is continuous rise and fall in net asset value.

If we see the table the average return is 0.032 and risk is 0.0001. Thus it can be said
that risk is very low when compared to returns.

The return on 02-06-2016 is 0.022 and at the end of the study period on 31-08-2016
the return is 0.017.
FINDINGS

The returns of HDFC Annual Interval Fund it shows that there is continuous
stability in net asset value.
The return on 11-03-2016 is 0.019 and at the end of the study period on 31-05-
2016the return is 0.018.
The average return is -0.114 and risk is 1.099. Thus it can be said that risk is
very high when compared to returns.
The return on 02-06-2016 is 0.022 and at the end of the study period on 31-08-
2016 the return is 0.017.
The average return is 0.039 and risk is 0.0005. Thus it can be said that risk is
very low when compared to returns.
The return on 02-06-2016 is 0.022 and at the end of the study period on 31-08-
2016 the return is 0.017.
SBI life kalyan ULIP returns is fluctuating during the study period. It is high
when compared to the HDFC annual interval fund.
The return of SBI life kalyan ULIP ranges from 0.150 to 0.307 during June to
July 2016.
The average return is 0.032 and risk is 0.0001. Thus it can be said that risk is
very low when compared to returns.
CONCLUSION

1. The performance of ULIP is better than the HDFC annual interval fund. Its
returns is more than the mutual fund.

2. Any investor who wants to invest in the mutual funds they must go for
professional investment process to achieve the objectives.

3. Investors much know about Mutual funds. Investor should have to see the
performance of mutual funds before investing.

4. In comparison, returns of SBI is higher. It performed well. HDFC got negative


returns during some quarters. During the study period, HDFC have negative
returns and higher risks when compared to SBI , this is due to
BANKRUPTCY.
SUGGESTIONS

1. Select your investments on economic grounds.

2. Buy stock with a disparity and discrepancy between the situation of the firm -
and the expectations and appraisal of the public (Contrarian approach vs.
Consensus approach).

3. Buy stocks in companies with potential for surprises.

4. Take advantage of volatility before reaching a new equilibrium.

5. Dont put your trust in only one investment. It is like putting all the eggs in
one basket . This will help lesson the risk in the long term.

6. The investor must select the right advisory body which is has sound
knowledge about the product which they are offering.

7. Professionalized advisory is the most important feature to the investors.


Professionalized research, analysis which will be helpful for reducing any kind
of risk to overcome.

8. See whether they have been giving any security on our investments.

9. See whether the % of NAVs is continuously increasing or not.

10. Select right mutual funds which should have less risk and high profits.

11. See whether any fluctuations in the Dividends. Select those mutual funds
which give high returns with low investments.
BIBLIOGRAPHY

Books

Security Analysis & Portfolio Management - Fishers & Jordon

Financial Management M.Y. Khan

Financial Management Prasanna Chandra

News Papers

Times of India

India Today

Websites

www.amfiindia.com

www.sebi.com

www.google.com

https://nav.sbilife.co.in/UI/HistoricalNAV.aspx