Submitted By: NAME- DEEPAK SINGH ROLL NO.-0843670009 MBA ±III rd Semester 2008-2010 In partial fulfillment of the requirement for MBA Degree Programme of Uttar Pradesh Technical University, Lucknow.


I have a great pleasure on doing my research work and in preparing this report on topic assigned to me ³customer behavior for life insurance, general insurance &mutual funds´ This project has been extremely updated in the light of evidence collected from the market. A proper formatting of this report is done and over all lay out of an entire has been improved for making all the information provided clear and accessible.

It is a matter of great satisfaction for the research point of view that this project has been in a short period of time.

In the end of the report, I have come out with the findings and suggestions as recommend to the problem that I feel the company facing today in the market. Beside this I had also tried to include all available information in this report and arranged, systematic manner.


I would like to take this opportunity to thanks all those who have helped me tremendously during the course of the project. This project report is a result of endless effort & immense degree of oil by many great minds. I would like to thank all those people who graciously helped me by sharing their valuable time, experience & knowledge. I would like to express heartiest thanks to Mr.Shalabh Srivastva and Shakil Ratyeea who have given me this beautiful opportunity to work with their organization and helped me at each step with their experience. I would like to thank all my friends and the entire team of pinnacle wealth management. I would like to thank MR. Rakesh Chandra director of KP college of management and Miss Jyoti (HOD) who provided me this opportunity.







Actually what is insurance? Insurance is not necessarily an investment from which one expects to get one¶s money back. Insurance is a way to share risk with others. It¶s a contract between two parties by which one of them agrees to index the other against a loss which may accrue to the other on the happening of some event. accident etc an insurance company is framed by raising initial capital from the shareholders. With a view to protecting person from various risks viz. medical claims. nor. A gambler takes. General Insurance and Mutual Funds but before we move I would like to give a glance about my project.INTRODUCTION My project work is to understand the level of awareness in regards to the Life Insurance. death. Insurance is the device of shifting the risks to the qualified agencies or persons known as Insurers. . while insurance offers protection against risks that already exit. it is gambling.

short-term money market instruments.With new era of 21st century people want to get money with easy steps but due to the risk factor involved in the investment it is not a easy task. So. Therefore. from this project report we are trying to give details about customer behavior for LIFE INSURANCE. Mutual funds can give investors access to emerging markets A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks. it was a golden opportunity for me to work for an organization and to get a deep knowledge about the insurance sector. The net proceeds or losses are then typically distributed to the investors annually Yet. The mutual fund will have a fund manager that trades the pooled money on a regular basis. So here we come to understand what is mutual funds and how it protect the investors from risk. . and/or other securities. GENERAL INSURANCE & MUTUAL FUNDS. bonds. the insurance and mutual funds companies are in growtth stage but the level of awareness is still low that¶s we come to know from this project work.

Subsequently in 1973. It paved the way towards the establishment of life insurance Corporation (LIC) and since then it has enjoyed a monopoly over the life insurance business in India. The General Insurance Corporation (GIC) in its present form was incorporated in 1972 and maintains a very strong hold over the non-life insurance business in India. Due to concerns of relatively low spread of insurance in the country.HISTORY OF INSURANCE The insurance sector in India dates back to 1818. in 1850 were incorporated. Insurance ACT was passed in 1928 but it was subsequently reviewed and comprehensive legislation was enacted in 1938. 1972 was promulgated. in 1823 and Tritons Insurance Company. The untapped potential for mobilizing long-term contractual savings funds for infrastructure. The efficient and quality functioning of the Public Sector Insurance Companies. The nationalization of life insurance business took place in 1956 when 245 Indian and Foreign insurance societies were first merged and then nationalized. for General Insurance. . when Oriental Life Insurance Company like Bombay life Assurance Company. non-life insurance business was nationalized and the General Insurance Business (Nationalization) ACT. General Insurance business.

cash economy and an urban µsaving¶ class set the stage for life insurance as a large ± scale national institution.The (Congress) government set up Insurance set u an Insurance Reforms committee in April 1993. How ever. It can truly be that life insurance is a product of modern industry. and called for private sector entry and restructuring of the LIC and GIC. Insurance Sector The practice of insurance in the world is quite old infect. The committee submitted its report in January 1994. It evolved from the great transformation in life. factories. The growth of India life insurance business continued to remain restricted till the Swedish movement gathered momentum. Industrialization with its cities. life insurance business. The business started taking its deeper roots only when in the late 19th century µIndia¶ insurance companies appeared on the scenes and started accepting µIndia¶ lies freely on the same terms as European lives in India. The business passed through the period of ups and downs with the political and economic situation in the country. Nationalization . recommended a phased program of liberalization. which began with the decline of the agrarian society in the western countries in the 19th century. is a much later development. Growth of life insurance Company in any country will illustrate introduced modern life insurance business didn¶t make much headway. as it is known today.

Even during days of the freedom struggle there was occasional demand for nationalization of life insurance industry. Mismanagement had lead to liquidation of as many as 25 life insurance companies in the decade after independence. All these cost financial losses and consequent suffering to several policyholders who had entrusted their hard earned saving to the care of the company management. One of the objectives of the national plans was to build a pay welfare state. The life insurance industry in India had to be geared up for raising resources for execution national programs. Another 25 insurance companies had during the same period so frittered away their resources that their business had to be transferred to other companies. Objectives of nationalization: The decision of the Government of India to nationalize life insurance industry was implemented by the passage of the life insurance Corporation . position and privilege by these companies in the private sector was one of the most compelling reasons that influenced the decision of the government of India to nationalize the life insurance industry in 1956. essential that benefits of life insurance were made available to every family in the country and that the business should be conducted with utmost economy by the management acting in a spirit of trusteeship to enable maximization of the people¶s saving that could be analyzed through the life insurance into the development programs. The demand naturally gathers mare momentum after independence. It was therefore. This misuse of power.

1956. India also has the . by Parliament.  Effective mobilization of the people¶s savings. How big is the insurance market? Insurance is a Rs.  Investment of funds in such a way as to secure maximum yield consistent with safety of capital.400 billion business in India. Gross premium collection is about 2% of Gap and has been growing by 15-20% per annum.Act.  Formulation of scheme of insurance to suit different section of the community.  Prompt and efficient services to the policyholders. and together with banking services adds about 7% to India's Gap.  Conducting of the business with the utmost economy and with the full realization that the money.  Development of a dynamic and vigorous organization under a management conducted in sprit of Trusteeship. Belonged to the policyholders.  Complete security to policyholders. The objectives of nationalization of life insurance industry that emerged out of the discussion and speeches in the parliament in the time passage of the act were: Spread of message of life insurance as far and wide as possible reaching out beyond the more advanced urban areas well into hitherto neglected areas.  Economic premium rates.

and total investible funds with the LIC are almost 8% of GDP.As per the latest estimates. Yet more than threefourths of India's insurable population has no life insurance or pension cover.95% of GDP. as a significant portion of its population is in services and the life expectancy has also increased over the years. .31% in 2004-2005 to 0.20%. the total premium income generated by life and general insurance in India is estimated at around a meager 1. Amongst the emerging economies. However India's share of world insurance market has shown an increase of 10% from 0.7% Non-life business grew by 3.6 compared to $7 in the previous year.34% in 2005-2006 India's market share in the life insurance business showed a real growth of 11 % thereby out performing the global average of 7. Health insurance of any kind is negligible and other forms of non-life insurance are much below international standards. India is one of the least insured countries but the potential for further growth is phenomenal. In India insurance spending per capita was among the lowest in the world at $7.highest number of life insurance policies in force in the world.1% against global average of 0. Indian Scenario : Unfortunately the concept of insurance is not popular in our country .

 Income needs of a widow on the death of her husband. which can be broadly classified as under:  Cash and income needs on an immediately following death.Life insurance business 2.  Education needs.  Family income needs.  Business needs Classification of insurance business: The insurance is broadly classified as: 1 . Non-life insurance business Life insurance business: .  Retirement income needs.Need for insurance: Modern life insurance caters to multiple needs for insurance.  Cash and income needs of a husband on the death of his wife.

Marine insurance 3. Fire insurance 2. Miscellaneous insurance (accident) Modern classification of general insurance . if so provided in the contract of insurance. The granting of super-annuation allowance and annuities payable out of any fund applicable solely to the relief and maintenance of the person engaged or who have been engaged in any particular profession. trade or employment or of the dependents of such persons. Non life insurance business : Conventional classification of insurance business: 1.It is the business of effecting contracts of insurances upon human life including any contract whereby the payment of money is assured on death or on the happening of any contingency to the dependent on human life and any contract which is subject to the payment of premiums for a term and shall be deemed to include: The granting disability and double and triple indemnity accident benefits. The granting of annuities of human life.

Insurance of person 2. Insurance of property 3. Insurance of liability Life Insurance: Life insurance can be defined as ³life insurance provides a sum of money if the person who is insured dies while the policy is in effect´. Life insurance is not for the person who passes away. having a life insurance policy is very vital. Insurance of interest 4.1. Before going for a life insurance policy it is imperative that you know about various types of life insurance policies. Thus. it for those who survive. Major among them are:  Whole Life Policy  Term Life Policy . It is the responsibility of every bread earner to guard against the events that could affect the family in the unfortunate circumstance of his / her demise.

accident. waiting to happen. well.wherein the insurer agrees to pay the insured for financial losses arising out of any unforeseen events in return for a regular payment of "premium". illness. If you cannot beat man-made and natural calamities. Money-back Policy  Joint Life Policy  Group Insurance Policy  Loan Cover Term Assurance Policy  Pension Plan or Annuities  Unit Linked Insurance Plan  Endowment Policy Why Do People Need Life Insurance ? Risks and uncertainties are part of life's great adventure -. Insurance is a contract between two parties .they're all built into the working of the Universe. . at least be prepared for them and their aftermath. natural disaster . Insurance then is man's answer to the vagaries of life.the insurer (the insurance company) and the insured (the person or entity seeking the cover) . theft.

Hence. insurance is essentially the means to financially compensate for losses that life throws at people . .These unforeseen events are defined as "risk" and that is why insurance is called a risk cover.corporate and otherwise.

5 times So the customer will get approx 5 lkhs after deducting all charges. Example: . It is seen that people also invest less in such type of policies as returns are less and there is a compulsion attached is of compulsory premium submission till the policy matures.Types of Plans«. because it is not dependent on the market risk and is a rigid policy.Children¶s Plan. Illustration: Premium for 10 yrs is 20000 20000+20000+20000+20000+20000+20000+20000+20000+20000+20000= 2lks Return described was 2. y y Conventional ULIP Conventional:- Conventional plans are those plans in which returns are known and are fixed.. In this plan the customer has knows how much return he will get after maturity or any miss happening occurs. . Here risk is low and returns are also low.

emotional loss and monetary loss company can¶t full fill emotional loss but can help in monetary loss by giving the 2lks Rs. At the miss happening and will give the rest premium by its own and will give the bonus at maturity again to the child.Insurance is always of the parent and beneficiary is the child. There are 2 types of loss that occurs on any type of miss happening i. As it is said higher risk higher return .e. ULIP ULIP stands for UNIT LINK INSURANCE PLAN.

1870: Bombay Mutual Life Assurance Society. viz. can trace its . 5 crore from the Government of India.Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company. with a capital contribution of Rs. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. LIC formed by an Act of Parliament. the first Indian life insurance company started its business. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. the first life insurance company on Indian soil started functioning. LIC Act. on the other hand. The General insurance business in India.

the first general insurance company established in the year 1850 in Calcutta by the British. ..roots to the Triton Insurance Company Ltd.

in the event of a loss to the extent of say Rs. credit insurance etc. the maximum claim amount payable would be Rs.50/-. In respect of insurance of property. and liability insurance which covers legal liabilities. For instance if the value of a property is Rs.25/. insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business. it is important that the cover is taken for the actual value of the property to avoid being imposed a penalty should there be a claim. General Insurance comprises of insurance of property against fire. burglary etc. there are policies that cover the hull of ships and so on. There are also other covers such as Errors and Omissions insurance for professionals. Further. air and road. Where a property is undervalued for the purposes of insurance. theft etc. earthquake and so on. There are products that cover property against burglary.50/-.( 50% of the loss being borne by the insured for . the insured will have to bear a rateable proportion of the loss. A Marine Cargo policy covers goods in transit including by sea.General Insurance Insurance other than µLife Insurance¶ falls under the category of General Insurance. personal insurance such as Accident and Health Insurance.100 and it is insured for Rs. Non-life insurance companies have products that cover property against Fire and allied perils. flood storm and inundation. The nonlife companies also offer policies covering machinery against breakdown.

A group could be a group of employees of an organization or holders of credit cards or deposit holders in a bank etc. Sometimes the insurers themselves process reimbursement claims. Health insurance covers offered by non-life insurers are mainly hospitalization covers either on reimbursement or cashless basis. . This concept is quite often not understood by most insureds.. Normally when a group is covered. The cashless service is offered through Third Party Administrators who have arrangements with various service providers.e. i. Products offering Personal Accident cover are benefit policies. insurers offer group discounts. Some of the covers such as the foregoing (Motor Third Party and Workmen¶s Compensation policy ) are compulsory by statute. The Third Party Administrators also provide service for reimbursement claims. Liability insurance covers such as Motor Third Party Liability Insurance. hospitals. Personal insurance covers include policies for Accident.underinsuring the property by 50% ). Health etc. Liability Insurance not compulsory by statute is also gaining popularity these days. The Workmen¶s Compensation Act etc. There are liability covers available for Products as well. Accident and health insurance policies are available for individuals as well as groups. Many industries insure against Public liability. Workmen¶s Compensation Policy etc offer cover against legal liabilities that may arise under the respective statutes² Motor Vehicles Act.

insurers also offer customized or tailor-made ones. Apart from offering standard covers. Property can be covered. shop keepers and also for professionals such as doctors. cyclones etc have left many homeless and penniless. It is important to protect one¶s property. Such losses can be devastating but insurance could help mitigate them. A Health Insurance policy can provide financial relief to a person undergoing medical treatment whether due to a disease or an injury. Industries also need to protect themselves by obtaining insurance covers to protect their building. For instance. They need to cover their . stocks etc. chartered accountants etc. machinery. there are package policies available for householders.There are general insurance products that are in the nature of package policies offering a combination of the covers mentioned above. which one might have acquired from one¶s hard earned income. Suitable general Insurance covers are necessary for every family. A loss or damage to one¶s property can leave one shattered. so also the people against Personal Accident. Losses created by catastrophes such as the tsunami. earthquakes.

there are few products that are long-term. But are they obtaining the right covers? And are they insuring adequately are questions that need to be given some thought. Most general insurance covers are annual contracts. . The proposal form needs to be filled in completely and correctly by a proposer to ensure that the cover is adequate and the right one.liabilities as well. set up. Also organizations or industries that are self-financed should ensure that they are protected by insurance. the first company to transact all classes of general insurance business. So. most industries or businesses that are financed by banks and other institutions do obtain covers. It is important for proposers to read and understand the terms and conditions of a policy before they enter into an insurance contract. Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. Financiers insist on insurance. However.

1972 nationalized the general insurance business in India with effect from 1st January 1973. the New India Assurance Company Ltd. set minimum 1972: The General Insurance Business (Nationalization) Act. .1957: General Insurance Council.. GIC incorporated as a company. the National Insurance Company Ltd. 107 insurers amalgamated and grouped into four companies viz. and the United India Insurance Company Ltd. a wing of the Insurance Association of India. 1968: The Insurance Act amended to regulate investments and solvency margins and the Tariff Advisory Committee set up. frames a code of conduct for ensuring fair conduct and sound business practices. the Oriental Insurance Company Ltd.

First Index Investment Trust. and. and fund manager. Securities and Exchange Commission (SEC) and provide prospective investors with a prospectus that contains required disclosures about the fund. who conceptualized many of the key tenets of the industry in his 1951 senior thesis at Princeton .000 in assets. the securities themselves. after one year.History of mutual funds Massachusetts Investors Trust (now MFS Investment Management) was founded on March 21. Congress passed the Securities Act of 1933 and the Securities Exchange Act of 1934. 1924. The stock market crash of 1929 hindered the growth of mutual funds. which included a few closedend funds represented less than $10 million in 1924. was formed in 1976 and headed by John Bogle. In response to the stock market crash. These laws require that a fund be registered with the U.S. With renewed confidence in the stock market. The entire industry. mutual funds began to blossom. By the end of the 1960s. which sets forth the guidelines with which all SEC-registered funds today must comply. there were approximately 270 funds with $48 billion in assets. it had 200 shareholders and $392. The SEC helped draft the Investment Company Act of 1940. The first retail index fund.

356 trillion.000 a year). A key factor in mutual-fund growth was the 1975 change in the Internal Revenue Code allowing individuals to open individual retirement accounts (IRAs). Even people already enrolled in corporate pension plans could contribute a limited amount (at the time. there are 8. In early 2008. the worldwide value of all mutual funds totaled more than $26 trillion. As of October 2007.015 mutual funds that belong to the Investment Company Institute (ICI). with combined assets of $12. Mutual funds are now popular in employer-sponsored "defined-contribution" retirement plans such as (401(k)s) and 403(b)s as well as IRAs including Roth IRAs. a national trade association of investment companies in the United States. Usage of mutual funds . up to $2. with more than $100 billion in assets.University It is now called the Vanguard 500 Index Fund and is one of the world's largest mutual funds.

S. can invest primarily in the shares of a particular industry.or long-term). Both stock and bond funds can invest in primarily U. Bond funds can vary according to risk (e. or maturity of the bonds (short. type of issuers (e. . and foreign securities (global funds). Mutual funds can invest in many kinds of securities. Stock funds.S. or municipalities). The most common are cash instruments. securities (domestic funds). who forecasts cash flows into and out of the fund by investors.g. but there are hundreds of subcategories. A mutual fund is administered under an advisory contract with a management company. government agencies. stock.Since the Investment Company Act of 1940. for instance. as well as the future performance of investments appropriate for the fund and chooses those which he or she believes will most closely match the fund's stated investment objective. which may hire or fire fund managers. both U. Most mutual funds' investment portfolios are continually adjusted under the supervision of a professional manager. high-yield junk bonds or investment-grade corporate bonds). These are known as sector funds. or primarily foreign securities (international funds). a mutual fund is one of three basic types of investment companies available in the United States. such as technology or utilities. corporations.g. and bonds...

accounting.S. Taxable distributions can be either ordinary income or capital gains. Also. . the type of income they earn is often unchanged as it passes through to the shareholders. Net losses are not distributed or passed through to fund investors. depending on how the fund earned those distributions. unlike most other types of business entities. In the U. they are not taxed on their income as long as they distribute 90% of it to their shareholders and the funds meet certain diversification requirements in the Internal Revenue Code..Mutual funds are subject to a special set of regulatory. and tax rules. Mutual fund distributions of tax-free municipal bond income are tax-free to the shareholder.

The money thus collected is then invested in capital market instruments such as shares. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified.Mutual Funds ± Concept A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. professionally managed basket of securities at a relatively low cost. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. The flow chart below describes broadly the working of a mutual fund: Mutual Fund Operation Flow Chart . debentures and other securities.


By Structure: 2.- . By Investment Objective: By structure .TYPES OF MUTUAL FUNDS Mutual fund schemes may be classified on the basis of its structure and its investment objective:1.

In order to provide an exit route to the investors. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. some close-ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices. b) Closed-ended Funds A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. c) Interval Funds . SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. The key feature of open-end schemes is liquidity. The fund is open for subscription only during a specified period.a) Open-ended Funds An open-end fund is one that is available for subscription all through the year.

However. Such schemes have the potential to deliver superior returns over the long term. They are open for sale or redemption during pre-determined intervals at NAV related prices. also commonly called Growth Schemes. because they invest in equities. 2.Interval funds combine the features of open-ended and close-ended schemes. seek to invest a majority of their funds in equities and a small portion in money market instruments. by Investment Objective: a) Equity Oriented Schemes These schemes. . these schemes are exposed to fluctuations in value especially in the short term.

also commonly called Income Schemes. . invest in debt securities such as corporate bonds. These schemes are ideal for conservative investors or those not in a position to take higher equity risks. such as retired individuals. The prices of these schemes tend to be more stable compared with equity schemes and most of the returns to the investors are generated through dividends or steady capital appreciation.b) Debt Based Schemes These schemes. debentures and government securities. as compared to the money market schemes they do have a higher price fluctuation risk and compared to a Gilt fund they have a higher credit risk. However.

c) Hybrid Schemes .

balanced schemes seek to attain the objective of income and moderate capital appreciation and are ideal for investors with a conservative. That is. a commission will be payable. It could be worth paying the load. each time you buy or sell units in the fund. if the fund has a good performance history. Typically entry and exit loads range from 1% to 2%. . e) No-Load Funds A No-Load Fund is one that does not charge a commission for entry or exit. long-term orientation. The advantage of a no load fund is that the entire corpus is put to work. These schemes invest in both equities as well as debt. d) Load Funds A Load Fund is one that charges a commission for entry or exit. That is. By investing in a mix of this nature. no commission is payable on purchase or sale of units in the fund.These schemes are commonly known as balanced schemes.

It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India.6. . At the end of 1988 UTI had Rs. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The history of mutual funds in India can be broadly divided into four distinct phases First Phase ± 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament.History of the Indian Mutual Fund Industry 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.700 crores of assets under management. The first scheme launched by UTI was Unit Scheme 1964.

47.004 crores. Bank of India (Jun 90).UTI. Indian Bank Mutual Fund (Nov 89). At the end of 1993. SBI Mutual Fund was the first non.Second Phase ± 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non. LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). Punjab National Bank Mutual Fund (Aug 89). the mutual fund industry had assets under management of Rs.UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87). Bank of Baroda Mutual Fund (Oct 92). Third Phase ± 1993-2003 (Entry of Private Sector Funds) .

except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. a new era started in the Indian mutual fund industry. In February 2003. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. 1993 was the year in which the first Mutual Fund Regulations came into being. Also. One is the Specified Undertaking of Fourth Phase ± since February 2003 The number of mutual fund houses went on increasing. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. with many foreign mutual funds setting up funds in India and also the industry has witnessed . giving the Indian investors a wider choice of fund families. following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities.With the entry of private sector funds in 1993. under which all mutual funds.

As at the end of January 2003.541 crores of assets under management was way ahead of other mutual funds the Unit Trust of India with assets under management of Rs. The Unit Trust of India with Rs. 1.several mergers and acquisitions. there were 33 mutual funds with total assets of Rs. representing broadly. the assets of US 64 scheme. assured return and certain other schemes. .29.44.805 crores.835 crores as at the end of January 2003. The Specified Undertaking of Unit Trust of India. functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations.21.

2. Convenient Administration Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries. Return Potential . Professional Management Mutual Funds provide the services of experienced and skilled professionals. 3.BENEFITS OF INVESTING IN MUTUAL FUNDS 1. 4. You achieve this diversification through a Mutual Fund with far less money than you can do on your own. backed by a dedicated investment research team that analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme.Diversification Mutual Funds invest in a number of companies across a broad crosssection of industries and sectors. delayed payments and follow up with brokers and companies. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. Mutual Funds save your time and make investing easy and convenient.

Low Costs Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage.Transparency You get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme. the investor gets the money back promptly at net asset value related prices from the Mutual Fund. Tax Benefits . Liquidity In open-end schemes. 7. Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities.Over a medium to long-term. 8. 6. In closed-end schemes. the units can be sold on a stock exchange at the prevailing market price or the investor can avail of the facility of direct repurchase at NAV related prices by the Mutual Fund. the proportion invested in each class of assets and the fund manager's investment strategy and outlook. 5. custodial and other fees translate into lower costs for investors.

been more or less kind to mutual funds! With laws varying from time to time. 3) Wealth Tax . the unit-holder has the option to pay capital gains tax at either 20 % (with indexation) or 10 % without indexation. which are broadly listed below: 1) Capital Gains Units of mutual fund schemes held for a period more than 12 months are treated as long-term capital assets. In such cases. Currently.The taxman has. The relevant sections in the Income Tax Act governing this provision are Section 194K and 196A. the overall objective has been to encourage the growth of the mutual funds industry. a variety of tax laws apply to mutual funds. over the years. 2) Tax Deducted at Source (TDS) For any income credited or paid by a fund. no tax is deducted or withheld at source.

Open-end equity schemes have been left out of the purview of this distribution tax for a period of three years beginning from April 1999. For this purpose. 6) Section 80-C . 5) Income Distribution Tax As per prevailing tax laws. Section 10(33) exempts income from funds in the hands of the unit-holders. While section 10(23D) exempts income of specified mutual funds from tax (which currently includes all mutual funds operating in India). equity schemes have been defined to be those schemes that have more than 50 % of their assets in the form of equity. income distributed by schemes other than openend equity schemes is subject to tax at 20 % (plus surcharge of 10 %).Mutual fund units are not currently treated as assets under Section 2 of the Wealth Tax Act and are therefore not liable to tax. However. 4) Income from units Any income received from units of the schemes of a mutual fund specified under section 23 (D) is exempt under Section 10 (33) of the Act. this does not mean that there is no tax at all on income distributions by mutual funds.

. The Wisdom of Professional Management.2000.10. KP Pension Plan etc DISADVANTAGES OF MUTUAL FUNDS 1. Apart from ELSS schemes. therefore the maximum tax benefit available works out to Rs.The investment in mutual funds designated as Equity Linked Laving Scheme (ELSS) qualifies for rebate under Section 80-C. The maximum amount that can be invested in these schemes is Rs.000. the benefit of Section 80-C is also available in select schemes of some funds such as UTI ULIP.

Buried Costs.That's right. Many mutual funds specialize in burying their costs and in hiring salesmen who do not make those costs clear to their clients. Unlike picking your own individual stocks. Mutual funds generally have such small holdings of so many different stocks that insanely great performance by a fund's top holdings still doesn't make much of a difference in a mutual fund's total performance. 4. No Control. Dilution. . 3. The average mutual fund manager is no better at picking stocks than the average nonprofessional. a mutual fund puts you in the passenger seat of somebody else's car. but charges fees as though she is. this is not an advantage. 2.

1999 The authority is a ten member team consisting of: (a) A Chairman. Powers and Functions of IRDA . members. which was constituted by an act of parliament) specify the composition of Authority by the Government of India) Duties. Insurance Regulatory and Development Authority (IRDA.IRDA (Insurance Regulatory and Development Authority) Composition of Authority under IRDA Act. (All appointed As per the section 4 of IRDA Act' 1999. (b) Five (c) Four whole-time part-time members.

insurable interest. (f)Promoting and regulating professional organizations connected with the insurance and re-insurance business. (c) Specifying requisite qualifications. promote and ensure orderly growth of the insurance business and re-insurance business. powers and functions of IRDA. settlement of insurance claim. . surrender value of policy and other terms and conditions of contracts of insurance.Section 14 of IRDA Act. (e) Promoting efficiency in the conduct of insurance business. the Authority shall have the duty to regulate. (a) Subject to the provisions of this Act and any other law for the time being in force. nomination by policy holders. code of conduct and practical training for intermediary or insurance intermediaries and agents. (g) Levying fees and other charges for carrying out the purposes of this Act. 1999 lays down the duties. (b) protection of the interests of the policy holders in matters concerning assigning of policy. (d) Specifying the code of conduct for surveyors and loss assessors.

advantages. intermediaries. conducting enquiries and investigations including audit of the insurers. 193(4of1938). Securities and Exchange Board of India (SEBI) National Stock Exchange Bombay Stock Exchange (BSE) Reserve Bank of India Major Financial Institutions in India Foreign Investment Promotion Board SEBI (Securities and Exchange Board of India) .(h) calling for information from. insurance intermediaries and other organizations connected with the insurance business. terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act. undertaking inspection of. Here in this section we have covered major financial regulatory bodies in India's financial market. (i) control and regulation of the rates.

Management of the Board . (a) "Board" means the Securities and Exchange Board of India established under section protect the interests of investors in securities and to promote the development of. The Board shall consist of the following members. 1992. 1992 in accordance with the provisions of the Securities and Exchange Board of India Act.ESTABLISHMENT OF SEBI The Securities and Exchange Board of India was established on April 12. (b) "Chairman" means the Chairman of the Board. namely:(a) A Chairman. and to regulate the securities market and for matters connected therewith or incidental thereto´ Definitions (1) In this Act. PREAMBLE The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as ³«. unless the context otherwise requires. .

POWERS AND FUNCTIONS OF THE BOARD Functions of Board (1) Subject to the provisions of this Act. (c) One member from amongst the officials of the Reserve Bank. bankers to an issue. the measures referred to therein may provide for (a) Regulating the business in stock exchanges and any other securities markets. by such measures as it thinks fit. 1956(1 of 1956). trustees of trust deeds. sub-brokers. and to regulate the securities market. (b) Registering and regulating the working of stock brokers. it shall be the duty of the Board to protect the interests of investors in securities and to promote the development of. . share transfer agents. (2) Without prejudice to the generality of the foregoing provisions. (d) Five other members of whom at least three shall be the whole-time members to be appointed by the central Government.(b) Two members from amongst the officials of the Ministry of the Central Government dealing with Finance and administration of the Companies Act.

underwriters. by notification. merchant bankers.registrars to an issue. foreign institutional investors. (f) Promoting investors' education and training of intermediaries of securities markets. (g) Prohibiting insider trading in securities. participants. including mutual funds. credit rating agencies and such other intermediaries as the Board may. investment advisers and such other intermediaries who may be associated with securities markets in any manner. custodians of securities. (e) Prohibiting fraudulent and unfair trade practices relating to securities markets. specify in this behalf. portfolio managers. . (d) Promoting and regulating self-regulatory organizations. (c) Registering and regulating the working of venture capital funds and collective investment schemes. (BA) registering and regulating the working of the depositories.

 To understand the purchasing behavior of the people towards the insurance and mutual funds. Apart from these basic objectives some other objectives of my study are listed below:  To understand the awareness level of potential customer in regards to life insurance. So from the above listed objective I got opportunity to interact with customer and to understand their behavior. My objective is oriented towards developing the skills. a sound appreciation and understanding of the theoretical principle learned in two semester in MBA.  To educate the people about the insurance and mutual funds. general insurance and mutual funds by directly interacting with them. knowledge and attitude needed to make an effective start as a member of the management profession.OBJECTIVE The primary objective of my study is to gain through practical experience.  To keep a sharp look in the market to understand the behavior of competitor. .  To provide the requisite information to the potential customer about the investment.

interacting with People helps me a lot to learn about the awareness level of customers towards mutual funds and insurance and helps me to understand their decision making process of investing in insurance and mutual funds. Interacting with different people with different opinion and views helps me to learn the human purchasing behavior in regards to life insurance and mutual funds and the data collected from these sources helps to interpret the awareness level of potential customers. It also gave me opportunity to visit different people who make me familiar with the market of investment. It also helps me to learn how to behave in market as well as helps me to behave in front of customers.SCOPE The scope of this project work is very wide. .

SIGNIFICANCE From my point of view every study work always gives something rather than nothing.  To understand the behavior of potential customer with different views and opinion towards the investment.  Learn to adopt our self in the changing market.  Understanding the formal and informal relationship in an organization as well as in a market.  Understanding real life situations in organization and their related environment and accelerating the learning process of how his/her knowledge could be used in realistic way. .  To recognize the need and demand of the customer. So I had listed some of the significance apart from number of the advantages.

. Developed the personality with continuous learning.  Explore the new strengths and their development.  Learned how to formulate the corporate strategies and their implementation.  Got the market exposure.

Research methodology is a way to systematically solve the research problem. To understand the customer in an emphatic manner we need to understand their behavior and that can be achieved by doing a research and to carry out the research a methodology is needed.when we talk about research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using others so that research results are capable of being evaluated either by the researcher himself or by others. . because it is vital source to interpret and to understand the need and demand of the product. it may be understood as a science of studying how research is done scientifically .RESEARCH METHODOLOGY Since every project begins with the search of information.

it is fresh data. One of the important tools for conducting marketing research is the availability of necessary and useful data. SOURCES OF DATA PRIMARY DATA: The data which is collected by the researcher himself is called primary data. PRIMARY DATA: .Data¶s are the useful information or any forms of document designed in a systematic and standardize manner which are used for some further proceedings. The sources of Data fall under two categories. SECONDARY DATA: The data obtained through published or written sources collected through other sources than the researcher himself is called secondary data. Some time the data are available readily in one form or the other and some time the data are collected afresh. Primary Source and Secondary Sources.

 Direct interaction with customers  Telecommunication  mail  questionnaire SECONDARY DATA:  Magazines  journals  internet  company¶s handouts This project is basically based on primary data which I gathered from the direct verbal interaction with the potential customers. SAMPLING SIZE -100 RESPONDENTS SAMPLING AREA ± AGRA .

a questionnaire was designed to collect data. The questions were structured for general information. some of them are listed below. DATA ANALYSIS TECHNIQUE a. Questionnaire is one of the good methodology which I had used to collect requisite information about my project work. Tabulation LIMITATIONS Besides number of advantages this project also have some limitation. Simple average b. .DATA COLLECTION For the purpose of this project.

 Low awareness level. . Poor participation of the customer.  Customers are not agreed quickly.  Perception of the customer is negative.  Fear of fraud or insolvency in the customer mind.  Sometime the scheme offered by the company didn¶t meet the customer expectations.  Risk factor.  Expectation on ROI (return on investment) is very high.  Less number of potential customers.  Frequent adaptation based on market condition is very tuff.


523 crore and has a distribution network of branches. to life insurance.M. representative offices and satellite offices across cities and towns in India and offices in New York. Gherda Kotak Mahindra is one of India's leading financial organizations. From commercial banking. In February 2003. a non-banking financial organization.HISTORY OF THE COMPANY The Kotak Mahindra group is a financial organization established in 1985 in India. The bank is headed by K. the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI). The Group services around 6. 6. Mauritius and Singapore. It was previously known as the Kotak Mahindra Finance Limited. franchisees.2 million customer accounts. Kotak Mahindra Finance Ltd. London. Dubai. San Francisco. the group caters to the diverse financial needs of . to investment banking. Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to convert to a bank. offering a wide range of financial services that encompass every sphere of life. The group has a net worth of over Rs. to stock broking. to mutual funds.

individuals and corporate. About Kotak Mahindra Group µTHINK INVESTMENTS. New York. Kotak Mahindra Old Mutual Life Insurance is one of the fastest growing insurance companies in India and has shown remarkable growth since its inception in 2001.000 people and has over 1. The Kotak Group employs around 20. stock broking. Dubai and Mauritius. San Francisco. corporate and investment banking and markets. Kotak Mahindra Old Mutual Life Insurance is a 74:26 joint venture between Kotak Mahindra Bank Ltd. Kotak Mahindra Old Mutual Life Insurance Ltd. with offerings across personal financial services. commercial banking. and Old Mutual plc.350 offices across 370 cities and towns in India.THINK KOTAK¶ Kotak Mahindra group is one of India¶s leading banking and financial services organizations. Kotak also has offices in London. Singapore. asset management and life insurance. .

The group has a balanced portfolio of businesses offering Asset Management. . and a growing presence in Asia Pacific. with a focus on South Africa. it is among the top 50 largest companies in the FTSE100.000 employees worldwide and is listed on the London and Johannesburg stock exchanges.About Old Mutual Plc Old Mutual plc is an international savings and wealth management company based in the UK. Europe and the United States. Banking and General Insurance Services in over 40 countries. Life Assurance. Originating in South Africa in 1845. Old Mutual plc employs approximately 53.

Company¶s Vision and Mission Mission: The Company focuses on the needs of their customers and creates confidence. Increase Customer Value Kotak Life Insurance has gone to the heart of its customer's requirements and developed products which are unique and serve the customer needs perfectly. They do this by their three-prong effort which strives to make Kotak Life Insurance a corporate with values. trust and loyalty by offering a wide range of innovative insurance solutions. Vision: Kotak Life Insurance has a deep rooted commitment to improve the quality of life of its customers. . At Kotak Life Insurance the customer always comes first. They aim at improving the long term value in their relationship by continuous innovation and improvements. employees and stakeholders. company ensures the continued growth and advancement of their employees. Strengthened by their commitment to professional management. It builts a relationship of mutual trust and benefit to serve the Indian customer.

Work with Honors Kotak Life Insurance delivers everyday services in the marketplace with the high sense of duty and commitment. It not only demand loyalty. Their consumers. employees. sincerity and values but also give it back in equal measures. shareholders and the nation have their commitment that it will uphold the values of trust. society and nation growth. innovate and build a long-term career. Kotak Life Insurance will like to offer its employees space to grow. distributors.Cohesive Work Environment It forms long-term partnership with its employees by offering them an invigorating work experience. act and deed in order to positively contribute to individual. . integrity and a Sense of Honors in every thought. Their employees strive to build the long-term value for all those come in contact with Kotak Life Insurance.


Distribution Network of Individual Life Insurance Business in India CURRENT AUTHORITIES OF KOTAK LIFE INSURANCE .


Protection Plans Kotak Loan Protection Plan Kotak Loan Protection Plan is a protection plan that helps share the burden of your loan. . Kotak Term/Preferred Term Plan The Kotak Term/Preferred Term Plan is a pure risk cover plan that provides you with a high level of protection at nominal costs. Kotak Eternal Life Plans Kotak Eternal Life Plans are participating whole life plans that provide enhanced protection till the golden age of 99.

Kotak Smart Advantage Kotak Smart Advantage is an intelligent unit-linked plan that is based upon the idea of regular savings and systematic accumulation of wealth in the long term. You are used to having the luxury of choice and the power to control. Kotak Safe Investment Plan Kotak Safe Investment plan is the ideal investment plan for you with its unique ³Seal of Guarantee´ offer that not just gives you the best of bull markets but also eliminates any capital loss in falling markets. always done what you've believed in.Savings & Investment Plans Kotak Platinum Advantage Plus You've lived life on your own terms. Kotak Flexi Plan .

Kotak flexi plan offers you an ideal market-linked investment plan that helps you create your own financial future by offering you the flexibility and control over your money. Kotak Platinum Advantage Plan Kotak Platinum Advantage Plan features capital protection, embedded investment advice, life cover and aggressive market linked growth options.

Kotak Easy Growth Plan Kotak Easy Growth plan, a single premium investment plan that generates value for you for whole life as well as provides protection to your family in case of unforeseen events.

Kotak Capital Multiplier Plan The Kotak Capital Multiplier Plan is the only plan of its kind that allows you to enjoy returns even beyond maturity.

Kotak Money Back Plan This plan offers the key benefit of cash lump sums at periodic intervals of five years ensuring that you are able to meet any of your financial obligations.

Kotak Endowment Plan Kotak Endowment Plan is a participating endowment plan that provides you an avenue for long term regular investments to accumulate a lump sum on maturity.

Kotak Premium Return Plan The premium Return Plan will get you the dual benefit of a risk cover and savings, with minimal paperwork and procedures.

Kotak Sukhi Jeevan Plan Sukhi Jeevan is a long-term savings and protection plan that keeps pace with your changing needs at every step of life.

Kotak Gramin Bima Yojana

Kotak Surakshit Jeevan Kotak Surakshit Jeevan, an enhanced protection and long-term savings plan, makes sure your family remains financially independent even if you are not around.

Retirement Plans

Kotak Secure Retirement Plan An ideal retirement solution is one that gives you complete flexibility and peace of mind, not only while you save for your retirement but also after you retire.

Kotak Retirement Income (Unit Linked) Kotak Retirement Income Plan is an ideal retirement solution that gives you complete flexibility and peace of mind, not only while you save for your retirement but also after you retire.

Kotak Long Life Secure Plus Kotak Long Life Secure Plus is a unit-linked plan that ensures your investment gives maximum protection to secure your family's future and their financial independence

Child Plans Kotak Headstart Child Plans The headstart child plans are specially tailored.Kotak Long Life Wealth Plus Kotak Long Life Wealth Plus is an intelligent investment plan that helps you builds your future net worth with power-packed features that actively monitor and manage your investment growth Kotak Retirement Income Plan The Kotak Retirement Income Plan is a savings plan designed to meet your post-retirement needs. It is a plan that gives you "Jeene ki azaadi". cost effective plans that aim to give your children the financial means to pursue his or her dreams .

PLANS FOR GROUP Kotak Group Shield Kotak Group Shield is a comprehensive solution that helps protect your customer¶s assets and savings in the unfortunate event of death. illness or disability. Kotak Term Grouplan .Kotak Child Advantage Plan The Kotak Child Advantage Plan is an investment plan designed to meet your child's future financial needs. Kotak Group Assure Kotak Group Assure is a comprehensive solution that helps protect your customer¶s assets and savings in the unfortunate event of death. illness or disability.

.Kotak Term Grouplan provides life cover for a group of employees. is the right solution to your needs. Kotak Gratuity Grouplan Gratuity management solution manages your gratuity liability effectively but also helps you release resources for your core business activities. Kotak Complete Cover Grouplan Kotak Complete Cover Grouplan can provide your institution the required value-add to differentiate your products and make them more competitive. by paying a lump sum benefit to the beneficiary on the unfortunate death of an employee. protecting both your institution's and your customer's interest. Kotak Credit-Term Grouplan The Kotak Credit-Term Grouplan. Kotak Superannuation Grouplan Kotak Superannuation Grouplan (KSGP) is a uniquely flexible product that addresses the needs of both the employers and the employees.


FINANCIAL STATUS OF THE COMPANY FINANCIAL RECORD YEAR 2001-02 2002-03 2003-04 AMOUNT IN CRORE 2004-05 2005-06 2006-07 2007-08 .

LIC 11422 11165 12282 12558 15003 27103 27144 PRIVATE INVETMENT COMPANIES 180 662 2085 4357 7500 15932 29268 TOTAL 11602 11827 14367 16915 22503 43035 56412 .

MARKET SHARE YEAR 200102 98% 200203 94% 200304 85% 200405 74% 200506 66% 200607 63% 200708 48% LIC PRIVATE COMPANIES 2% 6% 15% 26% 34% 37% 52% From the last year data it is clear that they had shown a tremendous growth in the year 2008 LIC and Private companies has been sold approximately 29 crore policies. Out of the total 28% policies has been sold out in rural areas. .

79% PERFORMANCE OF KOTAK DURING 2008-09 FINANCIAL YEAR KOTAK LI TIDE AGENCY ALTERNATE CHANNEL 1400 CRORE 500 CRORE 900 CRORE .64 -6.24% -30.56 7524.31% -12.54 9028 5428 19.07 577 440 412.86% Major insurance companies SBI life Icici prudential Bajaj alliance BSCL HDFC 1149 1590 828 502 490 1073 807.Companies April may-june quarter 1 2008 April may-june quarter 1 2009 % change LIC Private companies 7524.61% -49.35% -15.98% -27.


There are certain customers who are happy and satisfied with the working performance of the company but skill a lot of benefits are to be received by the customers which can satisfy them. facilities and scheme launched by the other Insurance Company. Introduction of new players in the market making the competition heated up. From the survey I conducted by getting feedback from the consumers I found that there are many offers. . they have less trust in Insurance Companies as compared to the LIC (Life Insurance Corporation).Theoretical framework of the study During my training I had to find out customers awareness and their views towards Insurance in KOTAK LIFE INSURANCE During my training I had to face many problems as customers have no time to give me and listen to my words what I want to convey to them. I tried my best to overcome these problems and do my job with utmost dedication and commitment.

Kotak Smart Advantage is a great combination of investment with insurance designed to enable you to make the best use of your hard-earned money that puts you right ahead Key Highlights .LEARNED PRODUCT  KOTAK SMART ADVANTAGE PLAN Make every rupee work for your happineyss In this policy. Kotak Life Insurance introduces Kotak Smart Advantage. Why should we invest in Kotak smart advantage? Every step in our life brings with it newel earnings. How we shape our tomorrow depends greatly on how we build on our today. over the long-term. to put our savings to work today. so that we can look forward to a great future. a great combination of investment with insurance. It is a market linked plan with 100% premium allocations helping us to accumulate wealth systematically. We are determined to make the best of it. the investment risk in the investment portfolio is borne by the policyholder.

the higher will be the value of the advantage. The Longer your premium paying term. Option to maximize protection your loved ones. y 100% allocation of your premiums from second year onwards to maximize your earning potential. Your first year¶s premium contributes towards guaranteeing you an Assured Addition Advantage that boosts your fund value at regular intervals throughout the term of the policy.  How does this plan work? Kotak Smart Advantage optimizes the return on your premiums paid through a smart mix of assured additions and 100% premium allocation. y Assured bonus additions at regular intervals during the policy term to enhance your fund value. 1961. Tex Benefits to avail under 80 C and section 10 (10D) of the Income Tax Act. The Assured Addition Advantage is a powerful combination of two benefits: A.y Guaranteed returns of up to 275% of your first year premium at maturity. y y y A unique3 fund offering you the maximum Opportunity for growth. Fixed Advantage .

B.The Fixed Advantage benefit is an assured value guaranteed at the end of your premium payment term. 25th and 30th policy year. provided your policy is in force and all premiums are fully paid up to date. provided your policy is in force and all premiums are fully paid up to date. Dynamic Advantage The Dynamic Advantage benefit is an assured bonus addition credited to your fund value at the end of every 10th. This benefit is calculated as a percentage of your first year premium depending on the premium payment term chosen. This benefit will be calculated as a percentage of the average value of funds in the three years preceding the benefit allocation. 20th. . 15th.

The Dynamic Advantage benefit would have already been credited in the Fund Value at the specified intervals to accumulate more for you at the end. provided your premiums are always fully paid up to date.  Wealth Maximization Avenue . Further.The Assured Addition Advantage lets you enjoy the benefits of a fixed assurance and a dynamic benefit directly linked to your fund value. you will receive the Fund Value and the Fixed Advantage benefit. in the funds of your choice. to help you tread comfortably and swiftly towards your goals. the plan makes your money work smarter for you through 100%1 premium allocation in each policy year from second year Onwards. On maturity of your policy.

 Protection for your family (Death Benefit) In the unfortunate event of death within the term of the policy.36. Opportunities Fund . plus the fund value in the Top-up account. whichever is higher.36.Dynamic Floor Fund Dynamic Bond Fund  High Premium Allocation Kotak Smart Advantage Plan gives you 100% premium allocation for annual premium sizes equal to and above Rs.  Tax Benefits .000. resulting in greater returns.This plan offers you 3 well-defined fund options to manage your capital according to your risk appetite over the term of the policy.000. Low premium allocation charges of up to 2% are charged for annual premiums below Rs. your beneficiary would receive the sum assured or the fund value in the Main Account plus the Fixed Advantage Benefit. These charges reduce to 0% from the 11th year onwards. This plan offers you flexible life cover options to choose from for the same annual premium.

up to Rs. or children maximum up to Rs. Tuition fees of children & repayment of house loan principal.00). to Rs. 15¶000.000. up to Rs. 80DD Deduction of Rs. then max.000.00 80D Premium paid for medical insurance for self husband/wife.00 against expenses of insurance premium occurred on treatment of dependent disable ( ded.00. 80CCC Premium amount deposited in pension scheme of Govt. 15.Tax Benefits can be availed under section 80C and 10(10D) of Income Tax Act. max. max.000. father from FY 08-09 (but if age is > 65yrs. 75.000.00 will be allowed for Medical Insurance for mother. .000.000./Pvt. 1.00 in case of serious disability). including bank FD for 5yrs or more. up to the limit of 10% of salary. 1 lac. 1961. 20. Tax benefits are subject to change in tax laws. Insurance Co.50. 80CCC & 80CCD combined should not be more than Rs. 80CCE Investment done u/s 80C. IMPORTANT APPLICABLE DEDUCTIONS UNDER CHAPTER VI A OF TAXATION SECTION APPLICABLE DEDUCTIONS 80C Investment in saving scheme(initially allowed u/s 88) such as GPF/PPF/LIC/GIS/NSC/NABARD BOND/ELSS. Applicable up to Rs.00 & Additional Rs. without any interim limit.100.00 80CCD Contribution for assessee/employer in pension schemes of Central Govt..

1.00 LACS MAX..50.00 is allowed.000. 1.00 LACS . 1. Important Schemes/Heads for Investment/expenses SCHEMES/HEADS FOR INVESTMENT/EXPENSES Limit of invest.00 LAC MAX.80E Payment of interest of education loan taken for higher education of self. without any maximum limit of payment. Repayment of housing loan (taken for purchase/ construction of house from approved institution) principal & necessary expenses as stamp duty. Amount paid in the form of tuition fees of child studying in MAX. 1. 80G 80U Donation given in PM/CM relief fund. if completely blind or physically or mentally disable permanently then deduction of Rs. registration fees etc. due interest on earlier purchased NSC (excluding interest of 6th year) Premium paid during the year in life insurance scheme of Govt. fully exempted. postal insurance & ULIP scheme . spouse or children. & Applicable u/s80C Contribution of employee in GPF/CPF/PPF Investment against purchase of NSC./Pvt.00 LACS MAX.00 LACS Max. If assessee him/herself. Insurance co. 1.

00 LACS LACS  What can you gain by investing in Kotak Smart Advantage? Smart investing is based on the fundamental idea of regular savings and the power of compounding. CITIZEN Deposit scheme of Post Office MAX. 1. ELSS SR. school or other educational institute (excluding development fee or donation fee) ded. university. It makes small savings transform into jackpots if planned with a long-term vision and right investment fund options. which is a great way to multiply your money. Investment for 5 years & above in scheduled bank/ Post Office as fixed deposit. Kotak Smart Advantage. with its power-packed and well-defined fund options. 1. Applicable up to 2 children only. gives you unmatched benefits .00 LACS MAX. 1.

 Eligibility ± A Ready Reckoner . You can distribute your investments across one or more funds based on your needs and maximise your earnings potential. Each of these funds is carefully crafted to suit your individual long-term needs. keeping in mind your time horizon and risk appetite.

ULIP: Unit Linked Insurance Plan .

 Prices of these units are published daily in newspapers.³A Unit-linked Insurance Plan. is a bundled product that combines life insurance cover with investing. disability & critical illness. you can choose how you want to allocate your insurance premiums towards protection and investment. or ULIP. but a part of it gets invested in specific investment funds of your choice.  The insurance cover would include death benefit. ULIP¶s: How exactly they work .  Choices range between 0% Equity or Full Debt market related products to 100% Equity.  As a policyholder.  The funds are chosen in accordance to the amount of risk you are willing to take.  The investment fund is divided into units of equal value.´ OR ³A ULIP is an investment-linked life insurance plan that combines investment and protection. so you can easily track the value of your investments.´ ULIP  The premiums that you pay provide you not only with a life insurance cover.

 Thus. If the unit price is relatively high. some insurers offer other bonus payment choices.  If the bonus is non-reversionary. the big change has been in the structuring in bonus payments.  If it is accumulated & paid either on maturity of the policy or death of the insured person. it is called nonreversionary bonus. Plan  Ulips & endowment plans work differently.  So.OF UNITS) ULIP¶s: How they differ from Tradit. which in turn is determined from the market value of the underlying assets. minus any charges to be deducted. is used to buy units in the fund selected by you at that day¶s unit price. The costs of a ULIP are deducted from the premium that a policyholder pays. more units are added to your account each time you pay your policy premium.  The bonus depends on the performance of the company.  The value of the fund depends on the unit price. A typical endowment plan mixes Insurance & Investment & assures you a certain sum at the end of a given period (SA & Bonuses)  In an endowment plan. it is reversionary bonus. you get lesser number of units & if the unit price is relatively low then you get more number of units. .  If the policy holder is allowed to encash it . the fund value is determined by multiplying the number of units with the price of the unit ±  (FUND VALUE = UNIT PRICE × NO. The premium paid by you.

quarterly. fund options. HOW FLEXIBLE ARE ULIPS  The main feature of ULIPS is there flexibility. The basic insurance cover in the event of death is usually a multiple of the annual premium . . adjustable life cover.The death benefit payment will be the SA or the value of investment units at the time of claim. or annually. is that the policy holder does not have to commit to a fixed level of cover or investment at the time of inception of policy. The death cover is either 125% or 500% of your premium or anything between this The death benefit is the SA or the value of investment units at the time of claim whichever is high. Plans. or both. ‡ Regular Premium: monthly. whichever is higher. investment & savings. half yly.  These policies provide flexibility in life protection. The advantage of a Ulip over Trad. ULIPS : TYPES ‡ There are 2 types of ULIPS available in the market ± ‡ Single Premium: a single lump sum premium A single lump sum premium payment is made.

 You may vary the amount of your premium payments or cover according to your changing financial circumstances. & liquidity through partial withdrawals. Transparency in charges.  These policies have options to take additional cover against death due to accident or disability or critical illness. .



On the basis of data which I had collected from different sources and from different area I had classified data on the basis of some factors which are listed below 1. Income 2. Qualification 3. Occupation 4. Gender 5. Marital status 6. Age 7. Area 8. Earning source 9. Saving 10. Purpose of investment On the basis of our mentioned factors I had classified, analyze and interpret ate data, shown in diagrammatic form to make it easier to understand

1. WHAT IS YOUR INCOME (ANNUALLY IN RS) ? 1-150000 18 150000-250000 38 250000-350000 24 above350000 20

Interpretation As from the pie chart it is clear most of the people fall in the income group of 150000-250000.This income group belongs to the middle class family and they high urge to invest After this group income level of 250000-350000 have their priority in the investment. 2. WHAT IS YOUR QUALIFICATION?




Post graduate &above





Based on the 100 respondent

Interpretation On the basis of pie chart it is clear that 41% people are graduate who has shown knee interest in the investment. Yet there are 32% people who are 12th passed but they have very little knowledge about the investment market.19% people are post graduate & above are partially interested in investment.


they have their high income to invest in a market to get better return on their investment. 4.20% people come in business class.Salaried class 65 Self employed 7 Business class 18 others 10 Interpretation As per the pie chart it is clear 71% people fall in salaried class and they their disposal income to invest. GENDER Male 83 Female 17 .

5.Interpretation On the basis of pie chart it is clear there is dominance of male in the investment decision . . MARITAL STATUS Married 61 Unmarried 39 .

AGE 18-25 years 33 25-40 years 78 40-55 years 34 Above 55 years 5 . Out of these people almost 20% are interested to invest their money. However.Interpretation As per the pie chart 61% people are married to whom I met. on the other end out of 39% unmarried people only 5% are keen to invest in the market in form of Insurance & Funds. 6.

AREA Rural 28 Urban 72 .Interpretation From the pie chart it is clear that 53% people those fall in the age group of 25-40 years have shown high potential towards investment. After this the people of age group of 40-55 years have great interest to invest in Insurance & Funds Sector. 7.

. unawareness and lack of information. reason for the low participation from the rural areas are illiteracy.Interpretation As per the pie chart it is clear that 72% people are from urban areas and remaining 28% people are from rural.

WHAT IS YOUR EARNING SOURCE? Salary 69 Business 14 Investment 9 Others 8 Interpretation As per the pie chart 74% people earn money through their salary and these people are potential customer for the investment and this helps him to get tax benefits.8. After that it is business class who wants to get ROI at higher rate. .

9..WHAT % OF YOUR INCOME YOU SAVE? 0-15% 51 15-30% 41 30-40% 6 Above40% 2

Interpretation As per the pie chart 51% respondent save less than 15% of their total income these people have high urge to their saving in mutual funds & insurance to secure their future from any uncertainty.

10. PURPOSE OF INVESTMENT Saving for future 54 Wealth creation 38 Tax rebate 5 Diversification 3

Interpretation As per the pie chart it is clear that most of the people invest in the insurance or mutual funds because they want to save something for their bright future, very less people are interested in tax rebate from investment.

As we have seen from the pie charts that people have different need for the investment and different purpose given below is a chart showing percentage of people and their investment basis.

Series 1
90% 80% 70% 60% 50% 40% 30% Series 1 20% 10% 0%

leveraging technology to service customers quickly. Investment decision are not so easy to make but due rapid changing environment it is vital need to invest in mutual funds and insurance to secure for the future uncertainty. From the analysis of various facts and figure collected it can be concluded that most of the people know about kotak and they are interested in investment schemes of the company. developing and implementing superior strategies to offer sustainable and stable returns to our customers and providing an enabling environment to foster growth and learning for the employees. efficiently and conveniently. Though the awareness level of mutual funds and insurance is quite moderate but with the help immense advertisement and promotion people come to know the benefits of mutual funds and insurance.CONCLUSION Kotak life insurance is based on the vision that it should understand the need of customers and offer those superior products and services. The awareness level of the customer for the kotak company and its products is said to be at moderate level though it is quickly picking up the speed for growth and development. .

An investor should remember that it is the equity that brings the highest rate of return but through the long ±term investment and not through short.term/speculative strategies. Company has to take necessary steps to keep customer updated regarding the technological up gradations in these facilities. Investor should prefer fund rather than equities. Try to understand the behavior of customer & suggest them the best product according to their need. If the people invest in mutual funds they will get good return in the long run as well as short run risk is very less in mutual fund. 3. Provide financial planning services. 6. 2. But there is high risk in the equities. Provide value added services to the investors to make them satisfied and happy. . 4. Provide help to the interested investors about the mutual funds and insurance. 7. 5. Invest their money in the scheme according to the performance or fundamentally not on the brokers¶ tips.SUGGESTIONS 1.



No Do you invest in mutual funds? 1. Which is of the following are preferred. Yes 2.QESTIONNAIRE FOR INVESTORS Dear Respondent. No Please Tick A. Yes 2. Do you invest in insurance? 1. Objective: This is being conducted to understand the investor¶s preferences and they will keep strictly confidential. where you invest in saving? .

Mutual funds Shares Govt. 3. Very much E. Purpose of your investment? 1. Diversification C.1. By what mean you trading in stock market? 1. 4.Tax Rebate 4. Wealth creation/investment 3. 5. Savings for future 2. 6. Is fluctuation in stock market effect your investment plan? 1. bonds / PO Deposits Insurance Gold Real estate B. Moderate 4. Not at all 2. Do you have proper knowledge about the concept of mutual funds? 1.Online 2. Yes .Through Broker/Sub broker D. 2. Little bit 3.

Balanced . Partial. 1. Debt 3. Which is the best mutual fund Scheme? 1. UTI Mutual Fund H. Safety 3. Liquidity I. Partial. Why it is the best mutual fund Scheme? 1. I would like to know more F. LIC Mutual Fund 2. Which is the best MF. Yes 2. Give Ranking. HDFC Mutual Fund 4. Tax saving 4. No 3. Do you have proper knowledge about the concept of insurance? 1.2. Equity 2. Kotak Mutual Fund 3. No 3. High Return 2. I would like to know more G.

HSBC 6. . Partial. Business 3. Kotak Securities 5. Salary 2.India Bulls 3. Karvy 4. Others««««««««««««. Yes 2. Tax saving scheme J. I would like to know more L. Do you have any knowledge about financial planning? 1. Bajaj capital 2 . Other (please specify ) K. Rank these consultancy firms. Investment 4.4. What is your earning source? 1. as per your preference of (1-5 in descending order) 1. No 3..

Please comment on kotak life insurance«««. .25000-30000 4.Above 40% O. What is your income (Annually in Rs. What percentage of your income you save? 1.1-150000 2.30-40% 4... Above 35000 N.....M.)? 1... 15000-25000 3.15-30% 3.0-15% 2...

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.