EXECUTIVE SUMMARY

The total investment scenario is changing, in the past people were not interested in investments because
there were no good options available for investment. Now, as people get educated and income levels
rise, people will invest in various financial products like insurance, mutual funds, stock exchange, real
estate, etc. Today, people want more services and more return on investment with the security of their
principle. Therefore, most insurance companies provide more value-added services with the basic
insurance operation. Another investment option available is the mutual fund. Mutual funds offer good
returns. Thus, while the people who invest tend towards the Mutual Fund, since they have low cost,
high liquidity and good returns. Mutual Funds are a tool of risk hedging also. As income of the people
increases, people tend to move towards ULIP policies. The major purpose of investment is to get returns
followed by savings. This project is made to know the consumer behaviour towards investment in ULIP
and Mutual Fund. Both have their own merits and demerits, also more or less it depends on the person
and his ability to take risk and investment.

ABOUT COMPANY

BRIDGE GROUP SOLUTIONS

Bridge Group Solutions Pvt. Ltd.founded in 2012. It is one of the non-bank financial institutions that
deals with financial services. It works on an offline platform. It is a newly created company, with the
aim of filling the gaps in process management and outsourcing. Initially they started as a project
outsourcing company and soon moved to different areas with the aim of providing high quality, low
cost and applicable interventions to manage the gaps. Currently, the BGS company has shown its
presence in various sectors, namely technology, asset management solutions and talent management. In
less than two years, they have expanded their offices in 4 cities and skill development centers in more
than 10 states and 93 towns, with staff of more than 450 plus.

BGS understands the needs and wants of all the customers. They adopt a systematic approach and uses
state art of technology and tools to resolve the customer problem. When you choose BGS, you get
variety of product under a single roof. You will get proper guidance that will help you to choose a better
investment plan. They are committed to spending your money wisely. In the whole, you get our
relentless devotion to your satisfaction.

BGS always focus on innovation and stay updated with the latest trends and help their partners face and
manage change at ease, companies can stay ahead in competition by partnering with BGS as their RPO
Company. Their team of business development managers, recruiters, data sources, and job search agents
gives shape to their goals and objectives.

PRODUCTS OFFERED

 Life Insurance Policies

 Health Insurance Policies
 Mutual Funds Schemes

Competitiors

 Policy Bazaar
 Easy Policy
 Policy X.com
  Bank Bazaar.com

Partners

Vision

Offer distinctive financial planning chances to people through appropriate support.

Help clients achieve their financial goals and dreams, in a systematic and efficient way, through a
lifetime financing plan.
Mission

To provide comprehensive financial planning for individual, with the whole process driven on systems
therby developing such unique processes that can be controlled, monitored and evaluated by themself,
thus making them self-reliant, with over million clients, by 2028.

INDUSTRY PROFILE

Insurance in India:

Each risk includes the loss of one type or another. Currently, only one company, which offers
all types of risk protection, is the insurance business. Due to the increasing complexity of life,
the jobs and commercial enterprises of the huge population are attracted by the insurance to
control the multiple risk. Every person in the world is subject to unexpected responsibilities
that can make him and his family powerless. In this situation, only insurance helps not only to
survive, but also to recover losses and live life in a normal way.

Insurance is a significant guide to business and industry. Each business includes multiple kinds
of risk like risk to premises, damage of raw materials and goods. There are risks which can be
avoidable with timely precautions but the unavoidable risks can be covered by insurance.

History

Insurance in India has its history in 1818, when Anita Bhavaskar, in Calcutta, founded the
Eastern Life Insurance Company in Calcutta to take into account the needs of the group of
European citizens. In 1870, the Bombay Mutual Life Assurance Society was the first Indian
insurance company to cover Indian lives at normal rates.

At the beginning of the 20th century, the insurance agency began to grow. In 1912 the law on
the life insurance company and the law on pension funds to administer the insurance business
were approved. In the same year, the certification by an actuary of periodic assessment and the
table of premium rates became mandatory to eradicate the discrimination between failed Indian
and foreign companies. The National Insurance Company ltd. (1906) is the oldest insurance
company in India and does business today too. The insurance sector previously consisted only
of two state insurers: life insurers, ie the Life Insurance Corporation of India (LIC) and general
insurers, ie the General Insurance Corporation of India (GIC). GIC had four subsidiary
companies.

Insurance penetration in India

The Indian insurance sector is made up of 63 insurance companies, 24 of which are engaged in
life insurance and 39 in health insurance companies. Among life insurers, The Life Insurance
Corporation (LIC) is the only public sector company and, on the other hand, there are seven
public sector insurers among health insurers. Furthermore, there are two national reinsurers. In
addition to these, other interested parties include agents (individual and corporate), brokers,
land surveyors and third-party administrators who manage health insurance claims.

MARKET DIMENSION

The government's policy of insuring the uninsured has gradually increased insurance
penetration in the country and the proliferation of insurance schemes.

Gross premiums written in India reached Rs 5.53 trillion in fiscal year 2018, with Rs 4.58
trillion in life insurance and Rs 1.51 trillion in health insurance. Overall insurance penetration
(premiums in% of GDP) in India reached 3.69 per cent in 2017 from 2.71 per cent in 2001.

In fiscal year 19 (up to January 2019), the premium for the new life insurance business
increased by 3.91% on an annual basis to Rs 1.59 trillion (USD 22.04 billion). In fiscal year 19
(up to January 2019), gross direct premiums of non-life insurers reached Rs 1.39 trillion (US $
19.28 billion), showing an annual growth rate of 12.65 percent.

Future Path

The future of the life insurance industry seems very broad with numerous changes in the
administrative structure that will cause further changes in the way the industry continues its
business and looks after its customers.

The entire insurance industry is expected to reach $ 280 billion by 2020. Annual growth is
expected to be around 12-15 percent over the next 3-5 years.

Examples of demographic factors that increase the middle class, the young and insurable
population and the development of familiarity with the requirement of insurance and pension
planning will encourage the growth of the life insurance sector in India.
Unit Linked Insurance Plan

ULIP is the abbreviation for unit-linked insurance policy. A ULIP is a life insurance policy that
offers a combination of risk and investment coverage. Capital market elements have an
immediate relationship with the ULIP performance. In general, according to ULIP, the investor
must assume the investment risk.

The unit-linked insurance plan (ULIP) is designed to cover life risk and make flexible
investments. In exchange for the investments made, the investor has a certain number of units
of funds represented by a specific value called Net Asset Value (NAV). Its value varies based
on the value of the underlying assets at the time.

In a ULIP, the amount invested in the premiums after deducting all charges and the risk
coverage premium under all policies in a given fund, as chosen by the insured, is grouped
together to form a unit fund. A unit is the element of the fund in a ULIP.

Earnings on a ULIP depend on the performance of the fund in the capital market. ULIP
investors can make diversified investments in various schemes, such as diversified capital
funds, balanced funds, debt funds, etc. As stated previously, according to ULIP, the investor
must assume the investment risk.

In a ULIP, investors can make investments in a single solution (single premium) or in the form
of SIP if the premium payments are made annually, semi-annually, quarterly or monthly. There
is flexibility in changing the amount of the premium during the period of validity of the policy,
or in a critical situation it is possible to reduce the amount of the premium. On the contrary,
when the individual has surplus funds, he has the possibility of increasing the amount of the
prize. The amount of difference is added to the total value of the ULIP. Also in ULIP, the
change of investments in various plans (diversified capital funds, balanced funds, debt funds)
is possible at a variable nominal cost or without costs.

Types of ULIPs

ULIP is beneficial because whatever be investor’s specific financial objective, majority times
ULIP is correct alternative for them. The figure mentioned below gives an idea to the different
goals that people aim at different age-groups and thus, various life-stages. Depending on your
specific life stages and the corresponding goal, there is a ULIP which can help you plan for it.

Type I and Type II ULIPS

ULIPS are life insurance policies in which insurance coverage is included in the investment. Unlike
traditional insurance and investment policies, such as endowment and money-back policies that offer
very less returns, ULIPs offers market-related returns. There are 2 types of ULIP plans. Type 1 is a
ULIP in which the amount paid is the higher of the two, or the sum insured or the value of the fund,
depending on which is greater, is paid. In the case of type 2 of a ULIP, both the sum insured and the
value of the fund are paid. However, to get the maximum benefit from such plans, an investor must
compare important points such as structure, costs and benefits. Below is a brief comparison of the same.

TYPES OF FUNDS IN ULIPS

When you purchase a ULIP, the insurer offers you several investment fund options and also
allows some free exchanges between these funds within a year. In general, there are four
types of funds, each insurer gives them the name differently, you can check with the insurer
before investing. The four basic types of funds in which ULIP invests are:-

GENERAL NATURE OF INVESTMENT RISK CATEGORY

DISCRIPTION
Equity Funds Invested in company stocks for capital Medium to High
appreciation
Debt Funds Invested in pure debt market Low

Money market Invested in Money market and govt. Low

institutions
Fund
Balanced Funds Merging equity investment along with fixed Medium
interest instruments

Equity funds: In this type, the investment component of the premium is invested in a pure
capital fund. Since, the investments are made only in equities, there is high risk, but if the
markets work well the returns are exceptional. Because ULIPs are a long-term tool, it is
possible to invest securely in equity funds, as it has been shown that, over a long-term variable
income, you get better returns than any other investment instrument.

Balanced funds: In this type, the investment is made in a combination of capital and debt. The
investment report will be available with the insurer. A person who is unwilling to take many
risks but still wishes normal returns can choose for this type.

Debt funds: In this category, investments are made in pure debt markets. There is very low
risk, and so are the returns on these funds.

Money market funds: These types of funds generally invest in the money market, which is a
short-term debt market mainly governed by institutions. In addition to these insurers, they can
combine and provide other types of funds for ULIP. Taking into account your risk appetite
and the objective you want to invest in, you can opt for the right fund.
Mutual Funds

A mutual fund is a mechanism to pool funds from multiple investors and invest these in securities such
as stocks, bonds, money-market instruments and other similar assets. Equity investments seems
intimidating at times. Mutual funds not only make investments simple but also make as interesting
investment option. Even investment has its share of risks and rewards associated with it. Following flow
chart describes the working of Mutual Funds.

Mutual Fund Operation Flow Chart

• Pool their • Invest in

money

Fund
Securities
Manager

Investors Returns

• Passed • Generates
back to

The two factors go hand in hand. With the investment in mutual funds, you have the possibility to decide
the fund based on the amount of the expected return and the risk bearing capacity. Investors can take
expert advice when making investment decisions.

To compensate for potential losses, the investments are very well spread. Diversification minimizes the
risk factor since all actions may not move simultaneously. The units are issued to investors based on
the money they invested. Investors in mutual funds are known as unit holders. Before raising funds
from the public, mutual funds must be registered with the Indian Securities and Exchange Board (SEBI).
Mutual funds have become famous investment instruments that offer different types of schemes with
different investment objectives. Investment decisions in various instruments should be made by
comparing the risks and expected returns after the tax adjustment.

MUTUAL FUNDS STRUCTURE

The process involves different entities. Below diagram shows the connection between those entities.

Fig: 1.2

TYPES OF MUTUAL FUNDS:

 Open ended funds

Investors can enter and exit at anytime post NFO.
The continuous entry and exit of investors will keep
the unit capital in this fund changing regularly.
 Close ended funds
They have fixed maturity. Investors can buy the units only at the time of New Fund Offer(NFO).
After that the funds will be traded in stock exchange. Here the fund is not involved in the transaction
so the transaction price is likely to be different from the NAV.

 Interval funds
It is a mixture of both open and close ended funds.
They are close ended but remain open at pre specified intervals. The period when interval scheme
becomes open ended is called the transaction period.
The minimum duration of transaction period is 2 days. The period between the end of one
transaction period to the start of another transaction period is called interval period. The minimum
duration of interval period is 15 days.
Actively managed funds
The fund manager actively manages the portfolio within the parameters of the investment objectives of
the scheme. The job of fund managers is to outperform the benchmark and thus investors expect actively
managed funds to perform better than the market. These schemes have high running costs.

Passive Funds

It follows the market index. They do not perform better than the market. The fund manager does not
decide the investments and there is a low running cost required.

Mutual Fund Types

Money Market Hybrid Debt /
Equity Funds / Liquid Funds Funds
Gilt Funds Income Funds Others

Diversified Debt Commodity

Agressive Growth Funds Balanced Funds
Funds Funds

Growth & Focused Debt Real Estate

Growth Funds
Income Funds Funds Funds

Asset Allocation High Yield Debts Exchange

Equity Income
Funds Funds Traded Funds

Assured Return
Diversified Equity Funds Funds of Funds
Funds

Fixed Term
Equity Index Funds
Plans

Value Funds

Speciality Funds

Foreign Mid-Cap or
Sector Funds
Securities Funds Small-Cap Funds

FIG: 1.3

1. Equity Funds:
The investment portfolio invests in equity shares and equity related instruments such as
convertible debentures. The objective is capital appreciation. Considered to be most risky but
provide higher returns compared to other funds. Under this fund one should invest for long term
i.e. for 3 years or more. Types of equity funds are as follows:

a. Aggressive Growth Funds:

With the objective of capital appreciation, investments are made into speculative stocks which
are more volatile and inclined to to higher risk compare to other equity funds.
b. Growth funds
The portfolio include companies whose earnings are expected to rise at a rate higher compared
to an average rate. Helps in capital appreciation and above average returns.

c. Equity Income / Dividend Yield

Investment is in shares which fluctuate less and dividend is more of the returns on these shares.
Such companies don’t have many opportunities for growth and expansion.

d. Diversified Equity fund (ELSS)

Invests in a diverse mix of products. Due to this diversification a meltdown in the performance
of one sector affecting the fund’s performance is low. These are the diversified equity funds
that offer tax benefits to investors under sec 80c of the Income Tax Act upto and investment of
Rs 1,50,000 a year. 80% of the portfolio has to be in equity instruments and has to be locked in
for 3 years during which it cannot be redeemed, transferred or pledged.

e. Equity Index Funds

The portfolio include companies that form the index and is in equal proportion as the index.
The funds that following broad indices (like S&P CNX Nifty, Sensex) are less risky since, they
are more diversified compared to the funds following narrow indices (like CNX Bank Index
etc.) which are less diversified.

f. Value Fund
Invest in shares of the company that are currently under valued and have a chance of increase
in price when the market realizes their true value. The investment has to be long term to gain
benefits.

g. Speciality Fund
In Speciality Funds there are certain crietria to invest or not to invest based on
regions/companies. The portfolio consists of companies that fulfill their criteria. Riskier than
diversified funds. Types of Speciality Funds are as follows.

i. Sector Funds
They invest in a particular sector. For eg, IT sector fund will invest in shares of
IT companies. The performance will see volatility because it is in connection
with the performance of the sector. The scheme is more risky than a diversified
equity scheme.

ii. Foreign Securities Funds

There is option of investing into multiple foreign companies. They are internationally
diversified which makes them less risky compared to sector funds. However, they are
exposed to foreign exchange rate risk and country risk.

iii. Mid-Cap or Small-Cap Funds

 The portfolio consists of companies having lower market capitalization. These funds
are known as Mid-Cap or Small-Cap Funds. Since, there is less liquidity, it increases
the chances of instability in share prices of companies, even investments into them is
more risky.

2. Liquid funds / Money Market Funds

They invest in short term debt securities with a maturity period of upto 91 days. Securities in
this portfolio having maturity period of more than 60 days have to be valued at market prices.
Due to this there is volatility in the NAV. Thus fund managers keep their portfolio in securities
less than 60 days as it helps with the lowest price risk.

3. Hybrid Funds
Its portfolio includes mixture of equities, money market securities and debts.

a. Balanced Funds
The portfolio which has assets such as debt securities, convertible securities and preference
shares and shares held in relatively equal proportions. The main objective is to obtain a
regular income for the investor, a moderate capital appreciation and also reduce the risk of
loss of capital.

b. Growth & Income Funds

It is the combination of growth funds and income funds. The portfolio is composed of
companies with potential capital appreciation and recognized for issuing high dividends.
Risk involved is lower compared to growth funds but higher than incom funds.

c. Asset allocation funds

Fund managers can adopt various asset allocation strategies to move from one asset
category to another at any interval based on their expectations of good returns.

4. Debt / Income Funds

Debt schemes are with the investment objective of regular income generation and therefore
invest in Treasury Bills, Government Securities, Bonds and Debentures. They are less risky as
compared to equities. There is only credit risk by the investors at the time of principal or interest
repayment. In order to reduce the risk of insolvency, debt funds must invest in securities
of issuers with an "investment grade" rating qualified by credit rating agencies.

Types of Debt Funds:

a. Diversified debt funds:

Funds invested in every securities issued by entities in all market sectors are known as
diversified debt funds. The better option for minimizing the risk of an individual investor
by sharing the losses due to default by issuer, equally among all investors.

b. Focused debt funds:

Investments are made in selected securities, issued by entities of a specific sector or
sector or origin. Example: funds that invest only in infrastructure that is exempt
 from taxes or municipal bonds. Due to this narrow angle, these funds are riskier
than diversified debt funds. These have yet to come to India.

c. High Yield Debts Funds:

Normally, to minimize risks, investments are made in those securities issued by
entities considered "investment grade". But in this category of funds, in general,
investments are made in securities issued by entities considered "below the level of
investment". These funds are highly volatile and carry a greater risk of insolvency,
but this strategy is still adopted to obtain higher interest yields.

d. Assured Return Funds:

Investments made in funds that provide for a blocking period and offer investors
guaranteed annual returns. Investments in it are less risky and their investment
values are based on the net worth of the guarantor. To protect the interests of
investors, SEBI only allows those funds to offer guaranteed return schemes, which
are an adequate net worth to guarantee future returns. For example, in the past UTI
offered such-type plans (ie monthly UTI revenue plans) that ultimately failed and
now no AMC in India offers such plans.

e. Fixed Term Plans:

These schemes are generally closed-ended schemes with a short-term maturity
period (<1 year) which offers investors multiple schemes and issue units at regular
time period. These are not listed in the exchanges. Target customers are short-term
investors with the aim of incurring certain amount of expected income in a short
interval.

5. Gilt Funds
These funds invest exclusively in government securities which have no default risk. Due to
change in interest rate and other economic factors, NAVs of these schemes also fluctuate. They
pay a lower coupon rate to reflect the low risk of default associated with them.

6. Others:

a. Commodity Funds:
Investments in various commodities (such as metals, cereals, crude oil, etc.) or
commodity companies or commodity futures contracts are called commodity funds.
Investments made in a certain commodity or in a group of commodity are called
funds specialized in commodities, while investments made in all commodities are
called diversified funds. It is less risky to invest in a diversified commodity fund
than a specialized commodity fund. Examples: "Fund for precious metals" and
"Gold Funds".

b. Real estate funds:

Investments made directly in the real estate sector or loans to real estate developers
or investments in shares / securitized assets of real estate financing companies.
c. Exchange Traded Funds (ETF)
It is a negotiable value that tracks an index, commodities and bonds as an index
fund. ETFs are listed as shares on the stock exchange. Therefore, their prices change
throughout the day like any other stock. They are passively managed.

d. Funds of Funds:
It is a plan that invests mostly in different plans of the same mutual fund or different
mutual funds. As the plan extends risks through a broader universe, investors can
realize more diversification from a plan.

Risk Hierarchy of Different Mutual funds:

All mutual funds come up with different level of risk factor and investors must analyse the
level of risk involved before investing into them. Following graph represents the connection
among mutual funds and amount of risk involved with it:-
 ULIPS VS MUTUAL FUNDS

ULIPS MUTUAL FUNDS

Investments amounts d. As per investors Predetermined minimum

preference. investment amounts
e. Modification allowed

Expenses f. No limit Upper limit foe expenses set by

g. Expenses Determined regulator

Portfolio disclosure Not Required Quarterly disclosures

compulsory

Modifying asset allocation Free or at nominal cost Investors need to borne entry /
exit loads

Tax benefits Sec 80C Benefits of Sec 80C only on tax

saving funds

OBJECTIVES OF STUDY:-

 To study the behavior of investors towards mutual funds investment

 To study the behavior of investors towards investments in ULIP
 Conduct a market survey of a selected sample of the population and obtain an opinion
derived from such research

PURPOSE OF THE STUDY: -

 The problem is linked to the investor's approach towards mutual funds and Ulips
 People aged between 18 and 40 or older, meaning the range is wide
 Demography includes names, ages, qualifications and profession

METHODOLGY

For my project, I decided on primary data collection method and approaching respondents directly in
the field to know their perception and investment pattern in ULIP and Mutual fund and I also created
a questionnaire to create a database of companies and salaried employees in Gurugram and in
the city of Mumbai. Along with this, I have also adopted a secondary method of collecting data
by referring to different websites, books, magazines and newspapers to gather information on
the project required in the study.
Primary sources

The primary data were collected through questionnaires completed by people and through
direct communication with the interviewees in the form of an interview.

Secondary sources

Sources of secondary data have been taken from various websites, books, magazine reports,
articles, etc. This generally provided information on the mutual fund and the ULIP sector in
India.

 Plan data analysis: - Data analysis is planned with the help of percentage analysis.

Data Analysis

 Type of Gender from whom information is collected.

Gender
Gender Frequency Percentage

Female 39 35.14%

Male 72 64.86% 39
Grand Female
Total 111 100.00% Male
72

Interpretation:

The entire analysis is done after collecting feedback from total 111 number of people. Out of the total
people about 72 people (64.86%) are Males and 39 people (35.14%) are females.

 Age group of people from whom information is collected?

 Age Group Frequency Percentage Age Group
18-30 65 59% 70 65

60
31-40 16 14%
50
41-50 21 19%
40
51-60 9 8% 30 Total
21
Grand Total 111 100% 20 16
9
10

0
18-30 31-40 41-50 51-60

Interpretation:

Out of the 111 respondents, 65 individuals (59%) are in the age group of 18-30 years, 16 individuals
(14%) are in age group of 31-40 years, 21 individuals (19%) are in age group of 41-50 years, 9
individuals (8%) are in age group of 51-60 years.

 Occupation of people from whom information is collected?

Profession Frequency Percentage Profession

Business 19 17%
Tutor 1
Housewife 9 8%
Student 20
Not working 1 1%
Service 39
Professional 22 20%
Service 39 35% Professional 22
Total
Student 20 18% Not working 1

Tutor 1 1% Housewife 9
Grand
Business 19
Total 111 100%
0 10 20 30 40 50

Interpretation:
Out of the 111 respondents, 19 individuals (17%) are Businessmen, 22 individuals (20%) are
Professionals, 39 individuals (35%) are doing Service, 20 individuals (18%) are Student, 9 individuals
(8%) are housewife, 1 individual (1%) is Tutor, 1 individual (1%) is Not working.

 Percentage of people invested into different instruments?

Financial
Instrument Frequency Percentage
Financial Instrument

Both 13 12% 7 13
Both
Mutual Fund 42 38%
Mutual Fund
None 49 44% 49 None
42
ULIP 7 6% ULIP

Grand Total 111 100%

Interpretation:

Out of the 111 respondents, 42 individuals (38%) have invested into Mutual Funds, followed by 7
individuals (6%) have invested into ULIP, 13 individuals (12%) have invested into Both, whereas 49
individuals (44%) have not invested into any of the financial instruments.

 Which sector do you prefer to invest money?

 Sector
Sector Frequency Percentage 50
45 46
Government 40
Sector 16 26% 35
30
25
Private Sector 46 74% 20 Total
15 16
10
Grand Total 62 100%
5
0
Government Private Sector (blank)
Sector

Interpretation:

Out of the 62 respondents, 16 individuals (26%) have invested in Government sector followed by 46
individuals (74%) investing into Private sector and some people are investing in both the sector.

 Factors considered by investors before investing in ULIPs and Mutual Funds?

 Factors
considered Frequency Percentage Factors Considered
High 50
Return 47 76% 45
40

Maturity 5 8% 35
30
Safety of
25
Principle 10 16%
20 Total
15
(blank) 0%
10
Grand 5
Total 62 100%
0
High Return Maturity Safety of (blank)
Principle

Interpretation:

Whether it is ULIP or Mutual fund, out of 62 individuals, 47 individuals consider Return on investment
as important factor, 10 individuals consider safety of principle as important factor, whereas 5
individuals consider maturity as important factor before investing.

 Information sources helpful to the investors in making investment decisions?

 Investment
Source Frequency Percentage Source of Investment
Brokers and
agents 34 54.84%
2%
Journals 2 3.23% 22%
Brokers and agents
Newspapers 11 17.74% Journals
Reference Newspapers
Groups 14 22.58% 55%
18% Reference Groups
Television 1 1.61% Television
3%
Grand Total 62 100.00%

Interpretation:

Out of total 62 individuals, majority of individuals are influenced by brokers and agents before making
investing decisions, whereas 11 individuals are making their decisions through newspapers, also 14
individuals are making their decisions through reference groups and rest through journals and
televisions.

 Preferred tenure of investment for ULIPs and Mutual Fund

Tenure Frequency Percentage Investment Tenure

10- 20 35 31
years 13 20.97% 30
25
3- 5 years 31 50.00%
20
13 12 Total
5- 7 years 12 19.35% 15

7- 10 10 6
years 6 9.68% 5
Grand 0
Total 62 100.00% 10- 20 years 3- 5 years 5- 7 years 7- 10 years (blank)
Interpretation:

Out of the total investors i.e. 62 individuals, majority number of individuals (50%) have made
investments from short term perspective i.e. 3-5 years, whereas 20.97% individuals have made
investments from long term perspective for about 10-20 years. Rest of the 28% individuals have made
their investment for the period 5-10 years.

 Expected return from ULIPs and Mutual Fund

Expected
Returns Frequency Percentage EXPECTED RETURNS
11%- 15% 26 41.94% 26
19
15%- 20% 19 30.65% 14

3 Total
20%- 25% 14 22.58%

Less than 10% 3 4.84% 11%- 15%- 20%- Less (blank)

15% 20% 25% than
Grand Total 62 100.00% 10%

Interpretation:

The response regarding the expected return from ULIP and Mutual Fund are mixed and majority
investors expect an average return of 11-15% and 15-20%, whereas very few expect a high return in
the range of 20-25% which very rarely happens. Only 4.84% investors expect a return less than 10%.
  Purpose of investment in ULIP and Mutual Funds

Investment Investment Purpose

Purpose Frequency Percentage
(blank)
Return 35 56.45%
Tax Benefit 11

Saving 16 25.81% Total

Saving 16

Return 35
Tax Benefit 11 17.74%
0 10 20 30 40
Grand Total 62 100.00%

Interpretation:

All the investors have invested into Mutual Fund and ULIP with some purpose. About 56.45% investors
have invested with the purpose of return, whereas 25.81% have invested with the purpose of savings.
And rest 17.74% investors have invested with the purpose of tax benefit.

 Preferred Investment avenue in future

Future Investment
Plan Frequency Percentage
Future Investment Option
37
Both 7 14%

Mutual Funds 37 76% Total

7
5
ULIPS 5 10%
BOTH MUTUAL ULIPS (BLANK)
FUNDS
Grand Total 49 100%

Interpretation:

Out of the total 111 individuals, about 49 individuals were those who initially had not invested money
in any investment avenues. But in future, among those individuals 76% are ready to invest into Mutual
Funds. 10% are ready to invest into ULIPS, whereas about 14% individuals are ready to invest into
both.

 Awareness about ULIPs and Mutual Fund?

Knowledge
35 33
Knowledge Frequency Percentage
30
25
No 33 67% 20 16
15 Total

10
Yes 16 33%
5
0
Grand Total 49 100% No Yes (blank)

Interpretation:

Out of total 49 future investors, only 33% individuals have knowledge about ULIP and Mutual Funds,
whereas rest 67% are unaware about it.

 Preferred Sector for future investments?

Sector
Sector Frequency Percentage
(blank)
Government
Sector 23 47%
Private Sector 26
Total

Private Sector 26 53%

Government Sector 23

Grand Total 49 100% 21 22 23 24 25 26 27

Interpretation:
Out of the total 49 individuals, 23 individuals (47%) are interested in investing into government sector
and rest 26 individuals (53%) are interested to invest in private sector in future.

 Factors considered for future investment avenues?

Factors Factors Considered

considered Frequency Percentage 25
21 22
20
High Return 21 43%
15

10 Total
Maturity 6 12% 6
5
Safety of
0
Principle 22 45%
High Return Maturity Safety of (blank)
Principle

Grand Total 49 100%

Interpretation:

For future investments, out of 49 individuals, 21 individuals (43%) consider Return on investment as
important factor, 22 individuals (45%) consider safety of principle as important factor, whereas 6
individuals (12%) consider maturity as important factor before investing.

 Tenure of investment in future?

Tenure Frequency Percentage Tenure

20
10- 20 years 8 16%
15
3- 5 years 19 39%
10
Total
5- 7 years 15 31%
5

7- 10 years 7 14% 0
Grand 10- 20 3- 5 years 5- 7 years 7- 10 years (blank)
years
Total 49 100%
Interpretation:

Out of the total future investors i.e. 49 individuals, majority number of individuals (39%) are ready to
invest for short term perspective i.e. 3-5 years, whereas 16% individuals are ready to invest for long
term perspective for about 10-20 years. Rest of the 45% individuals are ready to invest for the period
5-10 years.

 Purpose of investment in future

Purpose
Purpose Frequency Percentage
(blank)
Return 21 43%
Tax Benefit 4

Saving 24 49% Total

Saving 24

Tax Benefit 4 8% Return 21

Grand 0 5 10 15 20 25 30
Total 49 100%

Interpretation:

Many individuals are ready to invest into Mutual Fund and ULIP with some purpose. About 43%
investors have invested with the purpose of return, whereas 49% have invested with the purpose of
savings. And rest 8% investors have invested with the purpose of tax benefit.

RESEARCH FINDINGS:-

CONCLUSION:-

RECOMMENDATION:-
LIMITATIONS:-

Data is mix of Primary and Secondary one.

To collect the primary data from the people is difficult task and any false facts if provided by the
respondent or if any information is not revealed cannot be ruled out.

The financial product is restricted to only ULIP and Mutual Fund.

The collected primary data is only from the Gurugram region of the state of Haryana and from state of
Maharashtra covering only 70 respondents.
 REFERENCES

WEBSITES

 http://www.Indianmirror.com

 http://www.irdai.gov.in

BOOKS & JOURNALS

 Media Reports, Press Releases, Press Information Bureau, Union Budget 2017-18, Insurance
Regulatory and Development Authority of India (IRDA).

(Note: # - as per Assocham Report 2016)

 Sri Krishna, Justice B. N. (2013):Financial Sector

Legislative Reforms Commission, vol. I and vol. II.

 C.R. Kothari (2009) “ Research Methodology: Methods & Techniques”

(Second Revised Edition), New Age International Publishers, New Delhi.

NEWSPAPERS

 The Hindu
 The Economic Times
 The Times of India
 The Business Standard
 The Business Line

ANNEXURE

(QUESTIONNAIRE)

I am Siddhesh Godse, student of Chetana’s Institute of Management and Research college, Mumbai
doing a project on “A Study on Consumer Behavior Analysis of ULIPS and MUTUAL FUNDS”
and this questionnaire is a part of the project. It would be a great help if you answer the following
questions in the form.

Q1.Name------------------------------
 Q2. Gender –
1. Male
2. Female

Q3. Age
1. 18-30
2. 31-40
3. 41-50
4. 51-60
5. Above 60

Q4. Occupation?

1. Service
2. Business
3. Professional
4. Student
5. Other

Q6. In which of the following financial instrument you have invested?

1. Mutual Fund
2. ULIP
3. Both
4. None

Q7. In which sector do you prefer to invest money?

1. Government sector
2. Private sector
3. Both

Q8. Which of the following factors considered by you before investing in Mutual Funds or
ULIPS?

1. High Return
2. Maturity
3. Safety of Principle

Q9. What is the source of your investment advice?

1. Reference groups
2. Journals
3. Newspapers
4. Television
5. Brokers and agents

Q11. What is your preferred tenure of your investment?

1. 3- 5 years
2. 5-7 years
 3. 7-10 years
4. 10-20 years

Q12. What is your expected return from both ULIPS and Mutual Fund?

1. Less than 10%

2. 11%- 15%
3. 15%- 20%
4. 20%- 25%

Q13. For which of the following purpose you invest in ULIPS and Mutual Funds?

1. Saving
2. Return
3. Tax Benefit

Q14.What will be your preferred investment avenue for the future?

1. Mutual Funds
2. ULIPS
3. Both

Q15. Do you have proper awareness about ULIPS and Mutual Funds?

1. Yes
2. No

THANK YOU