Understanding Investor Behavior Towards Mutual Funds and Life Insurance

INTRODUCTION
INSURANCE:
Insurance is a means of protection from financial loss. It is a form of risk

management primarily used to hedge against the risk of a contingent,
uncertain loss. The business of insurance is related to the protection of the
economic values of the assets. Every human being has the tendency to save to
protest him from risks or events of future. Insurance is one form of savings
where in people try to assure themselves against risks or uncertainties of
future. It is assurance against risks or events or losses. People can save their
earnings either in form gold, fixed assets like property or in banking &
insurances. All the savings of people of a country account for gross domestic
savings. In India, although savings rate is high but people prefer to invest
either in gold or fixed assets so that they can make money out of it. Hence
insurance sector is still untapped in India.
Type of insurance:-
1) Health insurance
2) Life insurance
3) Property insurance
4) Auto insurance
1) Health Insurance:-
Health insurance is insurance that covers the whole or a part of the risk
of a person incurring medical expenses, spreading the risk over a large
number of persons.
Vidyabharti Trust college of BBA & BCA Page 1

2) Life Insurance:-
Life insurance is a contract between an insurances policy holder and an

insurer or assurer, where the insurer promises to pay a designated
beneficiary a sum of money in exchange for a premium, upon the death
of an insured person.
3) Property Insurance:-
Property insurance is a policy that provides financial reimbursement to

the owner or renter of a structure & its contents, in the event of damage
or theft.
4) Auto Insurance:-
Auto insurance is a contract between you and the insurance company

that protects you against financial loss in the event of an accident or
theft. It exchange for your paying a premium, the insurance company
agrees to pay your losses as outlined in your policy.
Advantages of insurance:-
1. Provides economic protections:-
Insurances provide economic and financial protection to

the insured against the unexpected losses in consideration of
nominal amount called premium. It provides financial protection to
the nominee in case of the pre-matured death of insured. It also
covers the loss of properties due to theft, fire, accident and other
natural calamities.
2. Shares risks:-
People are exposed to various kinds of risks &

uncertainties which may cause large losses. It is impossible to

eliminate risks &uncertainties altogether but it can be reduced or
shared. Insurance is a co-operative device, which help to share the
risk among the insured. Thus, the insurance company reduces the
risk of the insured in exchange for small premium.
3. Maintains standard of living:-
Insurance provides financial protection against an

unexpected risk of losses due to which people can maintain their
living standard. The insurance company provides a safeguard in
terms of mone to avoid the unfortunate financial crisis.
4. Encourages saving:-
An insured person pays the amount of premium in time as

stated in the agreement which encourage for developing a saving
habit of persons. Hence, insurance is a means of encouraging regular
saving as it helps to reduce unnecessary expenses.
5. Grants loan:-
An insured can get the facility of a loan from an insurance

company or can take loan from other financial institutions through
the security of insurance policy. Thus, this provision of loan helps a
person can also meet the need of fund. Bank & financial institutions
prefer the insured assets as collateral for providing a loan.
6. Planning for future needs: -
It also helps as long-term investments. It helps

people to meet their future goals like children education, marriage,
and building home planning and plan for relaxed retired life.

7. Creates employment opportunities:-
As insurance has become business in the modem day

business world, hundreds of entrepreneurs & thousands of
employees have been engaging in this line. Hence, by establishing &
developing insurance companies, it has provided employment
opportunities to thousands of people as per their qualification &
caliber.
Disadvantages of insurance:-
1) It does not compensate all types of losses which caused biasness to

insured by insurance company.
2) It takes more time to provide financial compensation because lengthy
legal formalities.
3) Although insurance encourages savings, it does not provide the facilities
that are provided by bank.
4) Sometime, the total amount of premium might be higher than the policy
amount receivable on maturity.
5) It may lead to the crimes in the society as the beneficiaries of the policy
may be tempted to commit crimes to receive the insured amount.
6) It intentionally tries to compensate as less as possible to the sufferer
with the aim of maximizing profit rather than maximizing well-being of
the insured.
Introduction of SIP plan:-
Systematic investment plan (SIP)
“Little drops of water make the mighty ocean”
SIP is an investment strategy wherein an investor needs to invest the same

amount of money in a particular mutual fund at every stipulated time period.
SIP is nothing but small amount of money invested on a pre-set date every
month into specific mutual fund/funds. One of the best ways of entering equity

market is through SIPs in equity mutual funds, as it brings in an investment
discipline for the investor. SIPs help to achieve financial goals by investing
small‟s sums of money on a monthly basis that eventually leads to
accumulating the required corpus for reaching the goal.
Type of SIP plan:-
1) Monthly Systematic Investment Plan (MSIP)

2) Daily Systematic Investment Plan (DSIP)
3) Flexi Systematic Investment Plan (FSIP)
1) Monthly Systematic Investment Plan (MSIP):-
This is the traditional way of SIP investment in Equity Mutual

Fund. This is the best option for salaried people. Investor can choose any date
of each month falling from 1 to 10.
2) Daily Systematic Investment Plan (DSIP):-
In this method, your investment is invested in the fund

on daily basis. Some mutual funds offer „daily SIP‟ option. This product is best
for small traders involved in micro segment. But some people don‟t like Daily
SIP and sometimes it gives you losses. Actually, it average your investment on
a regular basis but it proves to be a burden sometimes.
3) Flexi Systematic Investment Plan (FSIP):-

Traditional SIP allows you to invest a specific amount
on monthly or daily basis. However, the investor of Flexi SIP can invest
different amounts in SIP investment at different time periods. He can make
modifications month after months in amount to be invested. This cannot be
done through mutual funds.

Advantage of SIP plan:-
1) Reduces risk because of rupee cost averaging.

2) SIP can be started with very small amount of money.
3) Timing the market is not necessary.
4) Long term financial goal can be aligned with SIP.
5) Disciplined approach towards investment helps in controlling the
emotions.
Disadvantage of SIP plan:-
1) SIP return are lower in consistently rising markets

2) Limited options is dates:-
Most of the mutual funds have limited option. So you tend to
invest in multiple mutual funds on the same date. You want to lessen
your SIP in the entire month by choosing different dates for different
funds.
3) Fixed amount:-
There are times when you feel that markets are
undervalued and you want to invest more but then in SIP only a
predetermined fixed sum gets invested. Same is the case when to invest
less, you can`t do it.
4) Stopping intermediate payment:-
It may so happen that you got an emergency or have a
major expense this month & so you do not want to invest. But with SIP
this is not possible; if there`s money in your bank it will get debited &
invested. The only way out is to cancel the SIP which can be a nightmare
if you have a lot of SIPs & also when you want to start again you need to
go through all the formalities to start the SIP. Also for cancellation you
need to inform 2 week in advance & even then you may not be sure that
SIP would not be debited.

Literature review
Literature-1
Topic: - Mutual fund vs. life insurance: behavioral analysis of retail

investor.
Author: Dr.Bhagaban das
The objective of to understand the retail investors behavior towards different

savings avenues on the basis of their age, gender, education and profession, To
identify the features as the investors look for in investment products, To
identify the factors those influences the investor‟s fund/scheme selection, To
identify the source of information that influences the fund/scheme selection
decision. They are use in method due to constraints of resource and time along
with preliminary nature of this investigation. They finding it found that, the
different investment patterns do not provide the same level of services with
respect to age of the retail investors in India. Although the investment patterns
provide more or less the same service, there exist differences depending on the
education level of the investors. It is observed that investors with the graduate
& postgraduate level of academic qualification are investing more in life
insurance and the professionals are investing more in mutual fund. The
investors have a wide difference with respect to their profession and also the
different investment patterns vary widely. Male investors are more as compared
to females in Indian retail market. The brand image and the past performance
of the Mutual funds are highly positively correlated (0.975). The Government
servants invest more in life insurance and the private sector employees in
Mutual funds.

Literature-2
Topic: - Comparative analsison mutual fund & ULIP KOTAK final.
Author: KOTAK group
The objective of to study the behavior of the investors whether they prefer
mutual funds or ulip. To know how the KOTAK mutual funds are participating
in the stock market. To know how the KOTAK mutual funds are effecting on
the overall performance of the KOTAK Company. To know the brand awareness
of KOTAK & customer‟s preference towards KOTAK. They are use in method
sample size has been taken by non-random convenience sampling technique.
They finding is highest number of investors comes from the salaried class.
Highest number of investors comes from the age group of 25-35. Most of the
people have been investing their money & the share markets belong to
Rs.400000 & above income group. Mostly investors prefer monitoring their
investment on monthly basis. Most of the people invest up to 6% of their
annual income in mutual funds. Most of the people between the age group of
25-35 invest their money in share market. The conclusion is investors who
want to invest money after detailed study of equity market should go ahead for
mutual funds. The regular investment & need a relaxation time in your
investment plan then ulip is best and to get life insurance cover along with
good returns on investment then ULIPS would be good.

Literature-3
Topic: - A comparative study of ulip plans of reliance life insurance with

mutual funds in nanded.
Author: Vishal Mahavir Jain
The objective to compare investment options available in nanded city. To find

out the preference for reliance life insurance ulip plan with different mutual
fund plans available in nanded. To find out the USP of reliance life insurance in
nanded market. To suggest a strategy to RLIC for creating awareness about
ULIP & getting a competitive advantage over other investment options in
nanded. They are use in method questions through a questionnaire. They
finding is while survey is found that many all customers had already invested
in ULIP &MUTUAL FUND some people had invested in both options. 44% of
people had invested in mutual fund & 56% people had invested in ulip & 11%
people had invested in both the options. While investing in mutual fund the
preference for the fund are changing as per the age of the customer means the
people from the age group of 25-40 who are generating more income, they are
risk takers and most of them preferring the equity fund. The conclusion the
person are turning to words the ULIP as a good investment option but as ULIP
is in its starting phase so customers are preferring only big brands. Mutual
fund is having good growth but many customers from rural areas don`t have
any knowledge about mutual fund. Mutual fund & ULIP insurance both are
facing fierce competition, increasingly more organizations are seeking to
enhance their demand in the market place.

Literature-4
Topic: - Comparative analysis of ULIPs of Bajaj Allianz with mutual funds.
Author: Rajeev Joseph
The objective to understand the reason for which customers prefer ULIP as one
of the best insurance investment mode rather than mutual fund. To find the
significance difference between customers of different income with that of
investment mode. To Compare Investment Options of customers in ULIPs and
Mutual Fund. They are use in method questions through a questionnaire. They
finding in insurance sector are growing rapidly so most of the life insurance
players are selling ULIP plans. And the awareness about ULIP is growing most
of the people knows the ULIP of life insurance. Since last 4-5 years the returns
provided by ULIP were very good so people tend more to words ULI While
survey I found that many all customers had already invested in ULIP and
Mutual Fund some people had invested in both options. 12% of people had
invested in Mutual Fund and 26% people had invested in ULIP and 4% people
had invested in both the options. While investing in mutual fund 44% of the
customers looks their return, 42% customers observe the scheme‟s
performance in past years. The calculation is while investing is any investment
option investor checks whether his money is safe or not, mutual funds provides
good returns but investments are directly exposed to risk.

Literature-5
Topic: - Comparative study of mutual funds and market linked insurance

plans.
Author: Akshay kumbhare
The objective to study and compare the Unit Linked Insurance Plans & Mutual
Fund. To know the difference in investing in ULIP & Mutual Fund. To know
whether these two options are substitute for each other or not. They are use in
method questions through a questionnaire. They finding Mutual funds are
essentially short to medium term products. The liquidity that these products
offer is valuable for investors. ULIPs, in contrast, are now positioned as long-
term products and going ahead, there will be separate playing fields for ULIPS
and MFs, with the product differentiation between them becoming more
pronounced. ULIPs now do not seek to replace mutual funds, they offer
protection against the risk of dying too early, and also help people save for
retirement. Insurance has to be an integral part of one ¶s wealth management
portfolio. ULIPs and mutual funds are, therefore, not likely to cannibalise each
other in the long run. The calculation is mostly people are unaware of ulips &
mutual funds which includes the executive of the company & investors too.

RESEARCH METHODOLOGY
Research Statement:
“A study and comparisons of financial insurances and systematic investment

plan (SIP) - A study of Bardoli region.”
Objective:
Primary:
 To understand the awareness of insurances and systematic investment

plan (SIP) products among people.
 To understand the comparison of insurance and systematic investment
plan (SIP) is best suitable for investment purpose.
Secondary:
 To identify the features as the retail investors look for in investment
products.
 To find out in which insurances and SIP people are investing.
 To identify the factors those influence the investor‟s insurances and SIP.
 To identify the source of information that influences the insurances and
SIP.
Research design:
There are three types of research design;
 Exploratory research design

 Descriptive research design
 Causal research design
In this research project descriptive research design had been taken for
study of the problem.

Data collection method:
There are two types of data collection methods;
1. Primary Data: In this research primary data are collected from

respondents through Survey method.
2. Secondary Data: Internet, Magazine, Reference book, News paper all this
secondary sources are use for information collection.
Research Equipment:
The data will collect with the help of questionnaire.
Sampling Technique:
Sampling method is classified into two types;
 Probability technique
 Non-probability Technique
Here the researcher use non-probability sampling in which Convenience
Sampling technique is use.
Sample Size
The samples of 100 people are taken for study.
Tools of Analysis
SPSS (Statistical Package for Social Science)

DATA ANALYSIS.
1) Do you invest your money?

[ ] Yes [ ] No
Cumulative
Frequency Percent Valid Percent Percent
Yes 100 100.0 100.0 100.0
Interpretation:-
From the above table it is clearly evident that 100% of the people invest
their money.

2) Who influence you to invest your money?
[ ] Insurances agent [ ] Electronic media
[ ] Advertisement [ ] Newspaper
[ ] Other___________
Cumulative
insurances agent 54 54.0 54.0 54.0
electronic media 3 3.0 3.0 57.0
Advertisement 2 2.0 2.0 59.0
Newspaper 1 1.0 1.0 60.0
Friends 8 8.0 8.0 68.0
Other 14 14.0 14.0 82.0
newspaper & friend 3 3.0 3.0 85.0
electronic media &

5 5.0 5.0 90.0
advertisement
insurance agent &

10 10.0 10.0 100.0
friend
Total 100 100.0 100.0

Interpretation:-
The above results show that all the modes of information are not the
same. It clearly shows that insurances agent is the popular mode of
information investing i.e.54%.

3) Where do you invest your saving?
[ ] Bank fixed deposit [ ] Postal saving
[ ] Shares/debenture [ ] Mutual fund(SIP)
[ ] Real estate [ ] Insurances
[ ] gold/silver [ ] other____________
Cumulative
bank fixed deposit 3 3.0 3.0 3.0
postal saving 3 3.0 3.0 6.0
mutual fund 27 27.0 27.0 33.0
Insurance 34 34.0 34.0 67.0
Other 4 4.0 4.0 71.0
bank fixed deposit &

4 4.0 4.0 75.0
mutual fund
insurances & mutual

7 7.0 7.0 82.0
fund

mutual fund &7 7.0 7.0 89.0
insurances
bank fixed deposit & real

3 3.0 3.0 92.0
estate

5 5.0 5.0 97.0
insurances
bank fixed deposit & gold

3 3.0 3.0 100.0
& insurances
Total
100 100.0 100.0

Interpretation:-
The above results shows that 3% investors are preferred Bank fixed
deposit,3% investors are preferred postal saving,27% investors are preferred
mutual fund, 34% investors are preferred insurances, 9% investors are
preferred Bank fixed deposit & mutual fund , 7% investors are preferred
mutual fund & insurance, 7% investors are preferred bank fixed deposit &
mutual fund & insurance , 3% investors are preferred Bank fixed & real estate,
5% investors are preferred bank fixed deposit & insurance , 14% investors are
preferred Bank fixed deposit & gold & insurance. Most of the investor likes to
invest in insurance & mutual fund.

4) What is the percentage of saving from your total income?
[ ]<=25% [ ]<=50% [ ]<=75% [ ] other
Cumulative
<= 25% 87 87.0 87.0 87.0
<= 50% 12 12.0 12.0 99.0
Other 1 1.0 1.0 100.0
Total 100 100.0 100.0
Interpretation:-
The above result shows that 87% respondents invest 25% or less than
25% of their income, 12% respondents invests 50% or less than50% and 1%
investors are investing other from their total income.

5) What are the factors to which you give priority when you invest?
[ ] Safety [ ] High Return

[ ] Liquidity [ ] Less Risk
[ ] Marketability
Cumulative
Safety 59 59.0 59.0 59.0
high return 23 23.0 23.0 82.0
Liquidity 9 9.0 9.0 91.0
less risk 2 2.0 2.0 93.0
Marketability 7 7.0 7.0 100.0
Total 100 100.0 100.0
Interpretation: - The above diagram is about which are the factors that you
gives the first priority for investing in securities. There are 5 factors which are
most affected when to invest in security i.e. safety, high return, liquidity, less
risk, marketability. The graph indicates that high returns & liquidity is lightly
affected to the investors. The factor which is most affected to the investors is
safety factor.

6) Are you an investor in Insurances / SIP?
[ ] Yes [ ] No
Cumulative
Valid Yes 87 87.0 87.0 87.0
No 13 13.0 13.0 100.0
Total 100 100.0 100.0
Interpretation: -
The above results show that respondent invests 87% investors invest in
Insurances & SIP, 13% respondent is not investing in Insurances and SIP.

7) Which of the following you are invest your money?
[ ] insurances [ ] SIP [ ] both
Cumulative
Valid Insurance 42 48.3 48.3 48.3
SIP 31 35.6 35.6 83.9
Both 14 16.1 16.1 100.0
Total 87 100.0 100.0
Interpretation:-
The above result shows that 48.3% respondents are investing in

Insurances, 35.6% respondent are investing in SIP and 16.1% respondent are
investing in Insurances and SIP. Most of people are investing in Insurance.

8) From where do you purchase Insurances?
[ ] Insurances [ ] SIP
[ ] Both
Cumulative
Valid bank 6 10.7 10.7 10.7
agent 32 57.1 57.1 67.9
brokers 15 26.8 26.8 94.6
other 3 5.4 5.4 100.0
Total 56 100.0 100.0
Interpretation:-
The above result show that 10.7% respondent are purchase insurances
in bank,57.1% respondent are purchase insurances in Agent, 26.8%
respondent are purchase insurances in broker and 5.4% respondent are
purchase insurances in other. Most of people are purchase insurances in
Agent.

9) Which insurances company you have chosen for insurances?
[ ] HDFC [ ] ICICI
[ ] KOTAK [ ] SBI
[ ] Birla sun life [ ] TATA AIG
Cumulative
Valid HDFC 10 17.9 17.9 17.9
ICICI 5 8.9 8.9 26.8
KOTAK 3 5.4 5.4 32.1
SBI 15 26.8 26.8 58.9
BIRLA SUN LIFE 1 1.8 1.8 60.7
BAJAJ ALLIANZ 4 7.1 7.1 67.9
OTHER 18 32.1 32.1 100.0
Total 56 100.0 100.0
[ ] Bajaj Allianz [ ] Other___________

Interpretation:-
The above result shows that 17.9% peoples are invest in HDFC insurance
company, 8.9% peoples are invest in ICICI insurance company, 5.4% peoples
are invest in KOTAK insurance company, 26.8% peoples are invest in SBI
insurance company, 1.8% peoples are invest in BIRLA SUN LIFE insurances
company, 7.1% peoples are invest in BAJAJ ALLIANZ insurance company,
32.1% peoples are invest in OTHER insurances company. Most of peoples are
using in other insurance company.

10) In which insurances policy you are investing your money?
[ ] Life insurance [ ] Auto insurance
[ ] Health insurance [ ] Property insurance
[ ] medical insurance [ ] multiple choose
[ ] Other______________
Cumulative
Valid life insurance 29 51.8 51.8 51.8
auto insurance 3 5.4 5.4 57.1
health insurance 1 1.8 1.8 58.9
life & health insurance 7 12.5 12.5 71.4
life & medical

11 19.6 19.6 91.1
insurance
life & auto insurance 5 8.9 8.9 100.0
Total 56 100.0 100.0

Interpretation:-
The above result shows that 51.8% peoples are invest in life insurances,
5.4% peoples are invest in Auto insurances, 1.8% peoples are invest in Health
insurances, 12.5% peoples are invest in Life insurances & Health insurances,
19.6% peoples are invest in Life insurances & Medical insurance, 8.9% peoples
are invest in Life insurances & Auto insurances. Most of peoples are invest in
LIFE Insurances.

11) From how many years you are investing insurances?
[ ] 1 year [ ] 2 year [ ] 3 year
[ ] 4 year [ ] 5 year [ ]More than 5 years
Cumulative
Valid two year 4 7.1 7.1 7.1
three year 8 14.3 14.3 21.4
four year 2 3.6 3.6 25.0
five year 4 7.1 7.1 32.1
more than five year 38 67.9 67.9 100.0
Total 56 100.0 100.0
Interpretation: -
The above result shows that 7.1%peoples are invest to 2 years time period,
14.3% peoples are invest to 3 years time period,3.6% peoples are invest to 4
years time period, 7.1% peoples are invest to 5 years time period & 67.9%
peoples are invest to more than 5 year time period. Most of peoples are use in
more than 5 years time period.

12) State your expectation on insurances investment alternative by ticking
according to its importance:
Expectation Highly Important Neutral Less Not
on Important Important important
investment
Safety
Capital
Growth
Liquidity
Return
Tax benefit
expectation Total
of no highly less not
investment invest important important neutral important important
Safety 44% 47% 8% 1% 0% 0% 100%
Liquidity 44% 24% 13% 15% 4% 0% 100%
Return 44% 36% 14% 6% 0% 0% 100%
capital 100%
growth 44% 2% 41% 13% 0% 0%
tax benefit 44% 36% 11% 5% 4% 0% 100%

50%
45%
40%
35%
30% safety
liquidity
25%
return
20%
capital growth
15%
tax benefit
10%
5%
0%
no invest highly important netural less not
important important important
Interpretation: -
The above figure shows the rating of the expectation of investment of the
respondents. Most of the respondents are rated “safety” of the various features
of expectation of investment like no invest, important, neutral, less important
and not important.

13) Where from you are purchase SIP (Systematic Investment Plan)?
[ ] Direct from company [ ] Agent
[ ] Brokers [ ] Other___________
Cumulative
Valid direct from

21 46.7 46.7 46.7
company
Agent 14 31.1 31.1 77.8
Brokers 9 20.0 20.0 97.8
Other 1 2.2 2.2 100.0
Total 45 100.0 100.0
Interpretation: -
The above result shows that 46.7% peoples are purchase SIP in Direct from
company, 31.1% peoples are purchase SIP in agent, 20% peoples are purchase
SIP in Brokers, 2.2% peoples are purchase SIP in other. Most of peoples are
purchase SIP in Direct from company.

14) Which company you have chosen for SIP?
[ ] HDFC [ ] ICICI
[ ] KOTAK [ ] SBI
[ ] Birla sun life [ ] Reliance
[ ] UTI [ ] Other___________
Cumulative
Valid HDFC 14 31.1 31.1 31.1
ICICI 3 6.7 6.7 37.8
KOTAK 1 2.2 2.2 40.0
SBI 22 48.9 48.9 88.9
BIRLA SUN LIFE 1 2.2 2.2 91.1
RELIANCE 3 6.7 6.7 97.8
OTHER 1 2.2 2.2 100.0
Total 45 100.0 100.0

Interpretation: -
The above result shows that 31.1% peoples are invest to HDFC SIP
Company, 6.7% peoples are invest to ICICI SIP company, 2.2% peoples are
invest to KOTAK SIP company, 48.9% peoples are invest to SBI SIP company,
2.2% peoples are invest to BIRLA SUN LIFE SIP company, 6.7% peoples are
invest to RELIANCE company, 2.2% peoples are invest to BIRLA SUN LIFE SIP
company. Most of peoples are invest in SBI SIP Company.

15) How is your investment pattern in SIP?
[ ] Monthly [ ] Once in six months

[ ] Once in a Yearly [ ] Very race
Valid Cumulative
Frequency Percent Percent Percent
Valid Monthly 43 95.6 95.6 95.6
once in a six
2 4.4 4.4 100.0
month
Total 45 100.0 100.0
Interpretation: -
The above result shows that 95.6% people‟s investment pattern is

monthly & 4.4% people‟s investment pattern is once in a six month. Most of
peoples investment pattern use is monthly.

16) In which SIP scheme you have invested?
[ ] Equity fund [ ] Debt fund
[ ] Balances fund [ ] Other______________
Cumulative
Valid equity fund 27 60.0 60.0 60.0
debt fund 9 20.0 20.0 80.0
balances fund 3 6.7 6.7 86.7
Other 6 13.3 13.3 100.0
Total 45 100.0 100.0
Interpretation: -
The above result shows that 60% peoples are use in equity fund scheme, 20%
peoples are use in Debt fund scheme, 6.7% peoples are use in Balances fund
scheme, 13.3% peoples are use in other scheme. Most of peoples are using
Equity fund scheme.

17) Which factor you consider for investment in SIP?
[ ] High Return on low risk
[ ] Tax saving
[ ] Liquidity
[ ] Dividend
Cumulative
Valid high return on low

21 46.7 46.7 46.7
risk
Liquidity 9 20.0 20.0 66.7
tax saving 11 24.4 24.4 91.1
Other 4 8.9 8.9 100.0
Total 45 100.0 100.0

Interpretation: -
The above result shows that 46.7% peoples consider the factor in High
return on low risk ,20% peoples consider to Liquidity,24.4% peoples are
consider to tax saving,8.9% peoples are consider to other factor. Most of
peoples are consider to high return on low risk.

18) What advantages do you find when you invest in SIP?
[ ] Return potential [ ] Well regulated
[ ] Low cost [ ] Transparency
[ ] Liquidity [ ] Other______________
Cumulative
Valid return potential 24 53.3 53.3 53.3
well regulated 11 24.4 24.4 77.8
low cost 2 4.4 4.4 82.2
Transparency 1 2.2 2.2 84.4
Liquidity 5 11.1 11.1 95.6
Other 2 4.4 4.4 100.0
Total 45 100.0 100.0

Interpretation: -The above result shows that 53.3% peoples return potential
advantages than they invest in SIP, 24.4% peoples well regulated advantages
than they are invest in SIP, 4.4% peoples low cost advantages than they invest
in SIP, 2.2% peoples transparency advantages than they invest in SIP, 11.1%
peoples liquidity advantages than they invest in SIP, 4.4% peoples other
advantages than they invest in SIP. Most of peoples like to return potential
advantages.

19) Which is better among insurances & SIP?
[ ] Insurances [ ] SIP
[ ] Both
Cumulative
Valid Insurance 1 7.1 7.1 7.1
SIP 8 57.1 57.1 64.3
Both 5 35.7 35.7 100.0
Total 14 100.0 100.0
Interpretation: -
The above result shows that 7.1% peoples are like to insurances, 57.1%
peoples are like to SIP, 35.7% peoples are like to insurances & SIP. Most of
peoples are like the SIP compare to Insurances.

20) Why you are not investing in insurances?
[ ] No return [ ] Not interest
[ ] Investing in other plan [ ] Not availability
[ ] Other______________
Cumulative
Valid no return 10 22.7 22.7 22.7
not interest 15 34.1 34.1 56.8
investing in other
15 34.1 34.1 90.9
plan
Other 4 9.1 9.1 100.0
Total 44 100.0 100.0
Interpretation: -
The above result shows that 22.7% peoples are not invest in Insurances
because no retuen,34.1% peoples are not invest in Insurances because they are
not interested,34.1% peoples are not invest because they are investing in other
plan,9.1% peoples are not invest because other reasoned.

21) Why you are not investing in SIP?
[ ] Nonperformance of scheme
[ ] Non availability of good service from mutual fund company
[ ]Non availability of investment support
[ ]Lack of information about SIP
[ ] Difficulty in monitoring SIP performance
[ ] Other______________
Valid Cumulative
Frequency Percent Percent Percent
Valid nonperformance of
7 12.7 12.7 12.7
scheme
non availability of
good service from 6 10.9 10.9 23.6
mutual fund company
non availability if
2 3.6 3.6 27.3
investment support
lack of information
34 61.8 61.8 89.1
about sip
difficulty in monitoring
2 3.6 3.6 92.7
sip performance
Other 4 7.3 7.3 100.0
Total 55 100.0 100.0

Interpretation: -
The above result shows that 12.7% peoples are not invest because
nonperformance of scheme, 10.9% peoples are not invest because non
availability of good service from mutual fund company, 3.6% peoples are not
invest because non availability if investment support, 61.8% peoples are not
invest because lack of information about SIP, 3.6% peoples are not invest
because difficulty in monitoring SIP performance & 7.3% peoples are not invest
because the other reason.

Basic information:-
22) Gender:-
[ ] Male [ ] Female
Cumulative
Valid Male 70 70.0 70.0 70.0
Female 30 30.0 30.0 100.0
Total 100 100.0 100.0
Interpretation: -
The above result shows who are doing more investment, male or female.
Here in this 70% peoples are male investors and 30% peoples are female
investors.

23) Age:-
[ ] Below 20 [ ] 20-30
[ ] 31-40 [ ] 41-50
[ ] 50 Above
Age Cumulative
Valid below 20 3 3.0 3.0 3.0
20-30 31 31.0 31.0 34.0
31-40 37 37.0 37.0 71.0
41-50 23 23.0 23.0 94.0
50 above 6 6.0 6.0 100.0
Total 100 100.0 100.0
Interpretation: -
The above result show which group of peoples is doing maximum invests in
market. Here, 3% investors are belonging to below 20 age group, 31% investors
are from 20-30 age groups, 37% investors are from 31-40 age groups, 23%
investors are from 41-50 age groups & 6% investors are from 50 above age
groups.

24) Education qualification:-
[ ] Graduate [ ] Post graduate
[ ] Schoolings [ ] Above post graduate
[ ] other__________
Cumulative
Valid Graduate 56 56.0 56.0 56.0
post graduate 24 24.0 24.0 80.0
Schoolings 2 2.0 2.0 82.0
above post graduate 2 2.0 2.0 84.0
Other 16 16.0 16.0 100.0
Total 100 100.0 100.0
Interpretation: -
The above result show which Education Qualification groups of peoples are
doing investment, here, 56% of investors Qualification is graduate. 24%
investor‟s qualification is post graduate, 2% investor‟s qualification is
schoolings, 2% investor‟s qualification is above post graduate & 16% investor‟s
qualification is other.

25) Type of employment:-
[ ] Govt.Employee [ ] Professional
[ ] Pvt.Firm employee [ ] Self employed
[ ] Business person [ ] Agriculturist
[ ] Student [ ]Other____________
Cumulative
Valid Govt.Employee 31 31.0 31.0 31.0
Professional 5 5.0 5.0 36.0
Pvt.Firm
38 38.0 38.0 74.0
employee
Self employee 7 7.0 7.0 81.0
Business person 10 10.0 10.0 91.0
Agriculturist 4 4.0 4.0 95.0
Student 2 2.0 2.0 97.0
Other 3 3.0 3.0 100.0
Total 100 100.0 100.0

Interpretation: -
The above result show that the as per Employment of investor which filed
people are invest. Here,31% government employee,5% professional, 38%
Pvt.Firm employee,7% self employee, 10% business person,4%
agriculturist,2% student & 3% other type of employee.

26) Your annual income is in the range of?
[ ] Below RS.1 Lakh [ ] Between 1 Lakh to 2 Lakh

[ ] Between 3 Lakh to 4 Lakh [ ] Between 4 Lakh to 6 Lakh
[ ] Above RS 5 Lakh
Frequenc Valid Cumulative

y Percent Percent Percent
Valid Below RS 1 Lakh 26 26.0 26.0 26.0
Between RS 1 Lakh to
35 35.0 35.0 61.0
2 Lakh
20 20.0 20.0 81.0
4 Lakh
9 9.0 9.0 90.0
5 Lakh
Above RS 5 Lakh 10 10.0 10.0 100.0
Total 100 100.0 100.0

Interpretation: -
The above result show which income group of invest, here 26% investors are
earning is below RS 1 Lakh, 35% investors are earning is between RS 1 Lakh to
2 Lakh, 20% investors are earning is between RS 3 Lakh to 4 Lakh, 9%
investors are earning is between RS 4 Lakh to 5 Lakh, 10% investors are
earning is above RS 5 Lakh.

FINDINGS
 From the analysis the researcher has found that the respondents are
using the Insurances & SIP.
 48.3% of the respondents are using Insurances, 35.6% of the
respondents are using SIP & 16.1% of the respondents are using
Insurances & SIP.
 From the analysis researcher found that sources of SIP & Insurance
scheme is 54% influenced to Insurances agent.
 From above analysis researcher found that 87% respondents invest 25%
or less than 25% of their income, 12% respondents invests 50% or less
than50% and 1% investors are investing other from their total income.
 About 47% of the respondents are using the insurances from safety, 36%
of the respondents are using the insurances from Return and Tax
Benefit.
 Insurances include different kind of schemes; here researcher found that
the most of investor select the Life Insurances.
 Most of the respondents are rated “safety” of the various features of
expectation of investment like no invest, important, neutral, less
important and not important.
 From the analysis the Most of peoples are purchase SIP in Direct from
company.
 From the analysis that 95.6% people‟s investment pattern is monthly &
4.4% people‟s investment pattern is once in a six month. Most of peoples
investment pattern use is monthly.
 SIP includes different kind of schemes; here found researcher that the
most of investor select the Equity fund.
 Safety & High return factor are most effect to investors in Insurances &
SIP.

CONCLUSION
From the above study is concluding for the investor perception about
investment in INSURANCES & SIP the study of “Bardoli region”. According to
the researcher that most of people prefer to insurances and does not prefer to
SIP. According to the researcher to understand the comparison of insurance
and systematic investment plan (SIP) is the SIP best suitable for investment
purpose. According to the researcher most of people are invest in life insurance
& SIP and most of people are invest in equity fund scheme. According to the
researcher insurance agent that are the source of information which influence
the insurance & SIP.

RECOMMENDATION
 According to researcher knowledge researcher suggest that SIP Provider

Company aware the peoples about SIP.
 Special arrangements should be made by banks to ensure full security of
customer funds.
 According to researcher suggest that Insurance and SIP Provider
Company to advertise to scheme of insurance and SIP then peoples are
aware about scheme of Insurances & SIP then they are investing to
money.
 The investors have been provide more benefit & scheme, so they would
like to invest in saving banks, Insurance & mutual fund.

LIMITATIONS
 This project is conducted in very limited period.

 It was difficult to convenience some of the respondents to take their data.
 The responses of some respondents are biased.
 There may be the chances of errors due to the lack of time by the
researcher.
 The researcher did not have the proper knowledge about the topic.

Bibliography
 https://www.scribd.com/document/8748604/Thesis-on-Insurance-vs-
Mutual-Fund
 https://www.scribd.com/doc/24888010/Comparative-Analysis-of-
ULIPs-of-Bajaj-Allianz-With-Mutual-Funds
 https://www.scribd.com/document/222556147/comparitiveanalsisonm
utualfundandulipsinkotakfinal-120706101130-phpapp01
 https://www.researchgate.net/publication/41891036_Mutual_Fund_vs_
Life_Insurance_Behavioral_Analysis_of_Retail_Investors
 https://www.scribd.com/document/37947117/MUTUAL-FUNDS-AND-
ULIPS
 https://www.kullabs.com/classes/subjects/units/lessons/notes/note-
detail/1298
 http://www.business-standard.com/article/pf/benefits-of-equity-
systematic-investment-plan-114041000254_1.html
 http://apnaplan.com/disadvantages-of-systematic-investment-plan-sip-
and-the-way-out/
REFERNCES BOOK:
 Insurance Economics (Springer texts in business & economic ) by peter

zweifel, roland Eisen

Understanding Investor Behavior Towards Mutual Funds and Life Insurance

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INTRODUCTION

Insurance is a means of protection from financial loss. It is a form of risk

Vidyabharti Trust college of BBA & BCA Page 1

Life insurance is a contract between an insurances policy holder and an

Property insurance is a policy that provides financial reimbursement to

Auto insurance is a contract between you and the insurance company

1. Provides economic protections:-

Insurances provide economic and financial protection to

People are exposed to various kinds of risks &

Vidyabharti Trust college of BBA & BCA Page 2

3. Maintains standard of living:-

Insurance provides financial protection against an

An insured person pays the amount of premium in time as

An insured can get the facility of a loan from an insurance

6. Planning for future needs: -

It also helps as long-term investments. It helps

Vidyabharti Trust college of BBA & BCA Page 3

As insurance has become business in the modem day

1) It does not compensate all types of losses which caused biasness to

Introduction of SIP plan:-

Systematic investment plan (SIP)

“Little drops of water make the mighty ocean”

SIP is an investment strategy wherein an investor needs to invest the same

Vidyabharti Trust college of BBA & BCA Page 4

Type of SIP plan:-

1) Monthly Systematic Investment Plan (MSIP)

1) Monthly Systematic Investment Plan (MSIP):-

This is the traditional way of SIP investment in Equity Mutual

2) Daily Systematic Investment Plan (DSIP):-

In this method, your investment is invested in the fund

3) Flexi Systematic Investment Plan (FSIP):-

Vidyabharti Trust college of BBA & BCA Page 5

1) Reduces risk because of rupee cost averaging.

Disadvantage of SIP plan:-

1) SIP return are lower in consistently rising markets

Vidyabharti Trust college of BBA & BCA Page 6

Topic: - Mutual fund vs. life insurance: behavioral analysis of retail

Author: Dr.Bhagaban das

The objective of to understand the retail investors behavior towards different

Vidyabharti Trust college of BBA & BCA Page 7

Topic: - Comparative analsison mutual fund & ULIP KOTAK final.

Author: KOTAK group

Vidyabharti Trust college of BBA & BCA Page 8

Topic: - A comparative study of ulip plans of reliance life insurance with

Author: Vishal Mahavir Jain

The objective to compare investment options available in nanded city. To find

Vidyabharti Trust college of BBA & BCA Page 9

Topic: - Comparative analysis of ULIPs of Bajaj Allianz with mutual funds.

Author: Rajeev Joseph

Vidyabharti Trust college of BBA & BCA Page 10

Topic: - Comparative study of mutual funds and market linked insurance

Author: Akshay kumbhare

Vidyabharti Trust college of BBA & BCA Page 11

“A study and comparisons of financial insurances and systematic investment

 To understand the awareness of insurances and systematic investment

There are three types of research design;

 Exploratory research design

Vidyabharti Trust college of BBA & BCA Page 12

There are two types of data collection methods;

1. Primary Data: In this research primary data are collected from

The data will collect with the help of questionnaire.

Sampling method is classified into two types;

The samples of 100 people are taken for study.