SUMMER TRAINING REPORT

ON

“Comparative study of ULIPS and MUTUAL FUNDS”

Submitted in the partial fulfillment of the requirements for the award

of the degree of

Master of Business Administration (MBA)

Guru Gobind Singh Indraprastha University, Delhi

Submitted To: Submitted by:

Dr. Sunitha Ravi Nitesh Khatri

Assistant Professor 02913703920

Institute of Information Technology & Management, New Delhi – 110058

Batch – 2020-2022

I
 CERTIFICATE

I, Mr. NITESH KHATRI, Roll No. 02913703920 certify that the Summer Training Report

(MS201) entitled “Comparative study of ULIPS and MUTUAL FUNDS” is done by me

and it is an authentic work carried out by me at INSTITUTE OF INFORMATION

TECHNOLOGY AND MANAGEMENET. The matter embodied in this report has not

been submitted earlier for the award of any degree or diploma to the best of my knowledge

and belief.

Signature of the Student

Date:

Certified that the Summer Training Report/ (MS-201) entitled “Comparative study of

ULIPS and MUTUAL FUNDS” done by Mr. NITESH KHATRI, Roll No. 02913703920,

is

completed under my guidance.

Signature of the Guide

Date:

Name of the Guide:

Designation:

Countersigned

Programme Coordinator /HOD

 ACKNOWLEDGEMENT

At the outset, I wish to express my sincere thanks to almighty for showering his blessings on

me to develop this project.

I would like to thanks to my company guide Mr. Kashish Jerath, under whose guidance I

could complete my project.

I would also like to thank Ms. Shrishti, my regional guide for their constant support and

guidance during the course of the project. I am extremely grateful to them for providing

invaluable inputs and assistance throughout my project work.

It is my radiant sentiment to place on record my best regards, deepest sense of gratitude to

Ms. Prabhjoth, Sales Manager for her careful and precious guidance which were extremely

valuable for my study both theoretically and practically.

I wish to place on records, my deep sense of gratitude and sincere appreciation to my faculty

guide Dr. Sunitha Ravi for her support and guidance. She helped me move ahead in a

systematic manner in my project. I am grateful to her for her constant feedbacks and

guidance. Her patience and faith in my abilities has always boosted my confidence.

Nitesh Khatri

MBA 3rd Semester

02913703920
 TABLE OF CONTENT

S. No. Topic Page No.

1. Certificate (s) II

2. Acknowledgement III

3. Executive Summary VI

4. Table of Contents

5. List of Tables V

5. List of Figures V

6. List of Abbreviations V

7. Chapter-I: Profile of the Firm/Company 1-8

8. Chapter-2: SWOT Analysis of the Company 9-17

9. Chapter-3: Job Analysis 18-38

Chapter-4: Lessons Learnt 39-44

10.

11. References
45

12. Appendix 45-46

LIST OF TABLES

Table No Title Page No

1 Company Details– Bridge Group Solutions 2

2 Size of the Organization 7

3 Present Leadership 8

4 Market share of bridge group solutions 8

5 Swot Analysis 10

LIST OF FIGURES

Figure No Title Page No

1 History of Bridge group solutions 3

2 STP of bridge group solutions 15

LIST OF ABBREVIATIONS

S No Abbreviated Name Full name

1 RPO Recruitment process Outsourcing

2 ERP Enterprise resource Planning

3 STP Segmentation Targeting positioning

 EXECUTIVE SUMMARY:

Comparative study of ULIPS and MUTUAL FUNDS

Ever since the LTCG tax was announced in the Budget, ULIP is gaining popularity due to its

Tax-free nature. But the taxability of income is not the only parameter on which an instrument

Should be judged. The study focuses on seven key parameters. These parameters include

Liquidity, flexibility, returns, risk factor, cost to be incurred, and taxability of income and ease

of choice.

INTRODUCTION TO TOPIC

Every investment is made with some objective or goal. These goals can be short term
or long

Term. Investment instrument should be chosen such a way that it suits your requirements like

Liquidity, returns, safety of funds, taxability, flexibility, ease of choice etc.

 Chapter-1
Profile of the Firm/Company

BRIDGE GROUP SOLUTIONS

1
1.1 COMPANY PROFILE

BRIDGEGROUP SOLUTIONS is a distributary and advisory firm emerging in financial

services sector which focuses on providing best investment solutions. It helps in providing

investment plans which reduce the upcoming risks and at the same time provide maximum

returns.

BGS is an emerging leader in highly unorganized and diversified Financial Sector and aims to

provide best investment solutions to the customers and also establish its footprint in this

sector, with its strong research capabilities and strong team of experts.

The company helps the customer’s foresee upcoming risks and help them reduce it and at the

same time maximize returns and take well planned and calculated investment decisions

through a well-trained team and its in-depth analysis and extensive research.

1.2 COMPANY DETAILS

NAME OF THE FIRM/COMPANY BRIDGE GROUP SOLUTIONS PVT. LTD.

ADDRESS Ashok Marg, Moti Vehar, Sector 41,

Gurugram, Haryana 122003

TELEPHONE NUMBERS +91 97737-33144

EMAIL ADDRESS contactus@bridgegroupsolutions.com

WEBSITE NAME www.bridgegroupsolutions.com

NATIONAL OR MULTINATIONAL National

1.3 HISTORY

Bridge group solutions started as a HR outsourcing firm in 2012. Later on, company

expanded as an IT firm in 2014 and served more than 250 major giants in the industry. It is

renowned for the services. Then in 2016, it entered into financial sector as financial advisory

firms and still growing. The company deals in financial services like insurance, mutual funds,

equity etc.

The Vision is to offer unique financial planning opportunities, to individuals, by assisting

them in accomplishing their financial goals and dream in systematic and efficient approach,

leading transformed Planned Finance for Life. The Mission is to provide comprehensive

financial planning for individuals, with the whole process driven on systems thereby

developing such unique processes that can be controlled, monitored and evaluated by us

independently, thus making us self-reliant, with over 10 million clients, by 2028.

Bridge group solutions started as a HR outsourcing firm in 2012. Later on, company

Expanded as an IT firm in 2014 and served more than 250 major giants in the

industry. It is renowned for the services. Then in 2016, it entered into financial

sector as financial advisory firms and still growing. The company deals in financial

services like insurance, mutual funds, equity etc.

The Financial Services Sector is further divided into 4 sectors:

1. Health Insurance- Aditya Birla, Star health, ICICI Prudential’s

2. Life Insurance- Max life insurance, IFAB

3. Mutual Funds- All Mutual Funds

4. Portfolio Management Services- MotiLal Oswal, ICICI Securities

Bridge group solutions is currently working on the schedule of being “mediator” and

selling the various financial products i.e. Term life insurance of “India First Life

Company” (Joint venture of Bank of Baroda, Andhra Bank and Legal& General

(UK)). Currently the company acts as a mediator for the selling of Term Insurances

which are actually investment oriented plans designed by “India First Life Insurance

Company” The major components are:

1. HDFC Life Insurance

2. Aviva Life Insurance

3. Bajaj Life Insurance

4. LIC etc.
1.4 COMPANY’S VISION AND MISSION

MISSION

"Our vision as a firm focuses to help our customers and communities realize their dreams by

anticipating, understanding and meeting financial needs”

VISION

As a firm, we strive to provide financial peace of mind by delivering tailored objective advice

designed to give clients the confidence to pursue their own passion, dreams and talents. We

help our customers in financial and investment planning.

1.5 VALUES

• Integrity: Provide professional services with integrity.

• Objectivity: Provide professional services objectively.

• Competence: Maintain the knowledge and skill necessary to provide professional services

competently.

• Professionalism: Act in a manner that demonstrates exemplary professional conduct

Currently the company acts as a mediator for the selling of Term Insurances which are

actually investment oriented plans designed by “India First Life Insurance Company”

The major components are

1. HDFC Life Insurance

2. Aviva Life Insurance

3. Bajaj Life Insurance

4. LIC etc.

1.6 PRODUCT RANGE OF COMPANY

1.6.1 Risk Management - Risk management is the identification, evaluation, and

prioritization of risks followed by coordinated and economical application of resources to

minimize, monitor, and control the probability or impact of unfortunate events or to

maximize the realization of opportunities.

1.6.2 Portfolio Management

Portfolio management is the art and science of making decisions about investment mix and

policy, matching investments to objectives, asset allocation for individuals and institutions,

and balancing risk against performance.

1.6.3 Wealth Management

Wealth management is an investment-advisory discipline which incorporates financial

planning, investment portfolio management and a number of aggregated financial services

offered by a complex mix of asset managers, custodial banks, retail banks, financial planners

and others.

1.6.4 Project Outsourcing

Outsourcing allows a company to subcontract a particular area within the organization. A

company may outsource project management or any other task or department for one or more

reasons.
1.6.5 ERP & Customized Software

Enterprise resource planning (ERP) is business process management software that allows an

organization to use a system of integrated applications to manage the business and automate

many Back office functions related to technology, services and human resources.

1.6.6 Manpower Solutions

Recruitment Process Outsourcing (RPO) is when a company transfers all or part of its

Permanent recruitment to an external provider. An RPO provider can act as an extension of a

company's HR or Resourcing function, sitting on site with the client providing a holistic

hiring solution.

1.7 SIZE OF ORGANIZATION

Employee Data

Bridge Group Solutions Pvt. Ltd. 110 Employees

Bridge Group Solutions Pvt. Ltd. grew their employee count by 47% last year.

Revenue Data

Bridge Group Solutions Pvt. Ltd.'s $11.8M per year.

estimated annual revenue

Bridge Group Solutions Pvt. Ltd.'s $210,000

estimated revenue per employee
1.7 MARKET SHARE OF BRIDGE GROUP SOLUTIONS

Authorized share capital 100,000

Paid up capital 100,000.

1.8 PRESENT LEADERSHIP NAME POSITION

NAME POSITION

Kumar Samrendra Director

Vijay Garg Director

Kashish Jerath Head of Unit

Srashti Jadoun Sr.HR Manager

Gaurav Sehrawat Manager

Prabhjot Kaur Sales Manager

 CHAPTER 2

Functional Analysis
2. FUNCTIONAL ANALYSIS OF COMPANY

2.1 SWOT ANALYSIS

SWOT analysis is a technique developed at Stanford in the 1970s, frequently used in strategic

planning. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats and is

a structured planning method that evaluates those four elements of an organization, project or

business venture. A SWOT analysis is a simple, but powerful, framework for leveraging the
organization's strengths, improving weaknesses, minimizing threats, and taking the greatest

possible advantage of opportunities

STRENGTHS

Strengths are things that your organization does particularly well, or in a way that distinguishes

you from your competitors.

• Tie ups with Max Life Insurance and Star Health

• Skilled workforce

• Customer centric products and services

• Strong customer base

• Training process is strong

WEAKNESS

Weaknesses, like strengths, are inherent features of your organization, so focus on your people,

resources, systems, and procedures. Think about what you could improve, and the sorts of

practices you should avoid.

• Brand image

• Costs
 OPPORTUNITIES

This usually arise from situations outside your organization, and require an eye to what might
happen in the future. They might arise as developments in the market you serve, or in the
technology you use. Being able to spot and exploit opportunities can make a huge difference
to your organization's ability to compete and take the lead in your market

• Growing demand

• New markets

• Growth rate and Profitability

• New products and services

THREATS

Threats include anything that can negatively affect your business from the outside, such as

supply-chain problems, shifts in market requirements, or a shortage of recruits. It's vital to

anticipate threats and to take action against them before you become a victim of them and your

growth stalls.

• Major competitors-MotiLalOswal, LIC, IBM

• Great risk involved

• Difficult to win the trust of public

2.2 STP of BGS

STP marketing is an acronym for Segmentation, Targeting, and Positioning – a three-step

model that examines your products or services as well as the way you communicate their

benefits to specific customer segments.

Segmentation

The first step of the STP marketing model is the segmentation stage. The main goal here is to

create various customer segments based on specific criteria and traits that you choose.

The four main types of audience segmentation include:

1. Geographic segmentation: Diving our audience based on country, region, state,province, etc.

2. Demographic segmentation: Dividing our audience based on age, gender, education level,

occupation, gender, etc.

3. Behavioral segmentation: Dividing our audience based on how they interact with your

business: What they buy, how often they buy, what they browse, etc.

4. Psychographic segmentation: Dividing our audience based on “who” your potential

customer is: Lifestyle, hobbies, activities, opinions, etc.

Targeting

Step two of the STP marketing model is targeting. Our main goal here is to look at the

segments you have created before and determine which of those segments are most likely to

generate desired conversions (depending on your marketing campaign, those can range from

product sales to micro conversions like email signups).

Ideal segment is one that is actively growing, has high profitability, and has a low cost of

acquisition:

1. Size: Consider how large our segment is as well as its future growth potential.

2. Profitability: Consider which of our segments are willing to spend the most money on your

product or service. Determine the lifetime value of customers in each segment and compare.

3. Reachability: Consider how easy or difficult it will be for us to reach each segment with

your marketing efforts. Consider customer acquisition costs (CACs) for each segment.

Higher CAC means lower profitability.

Positioning

The final step in this framework is positioning, which allows you to set your product or

services apart from the competition in the minds of our target audience. There are a lot of

businesses that do something similar to us, so we need to find what it is that makes us stand

out.

All the different factors that we considered in the first two steps should have made it easy for

us to identify our niche. There are three positioning factors that can help us gain a competitive

edge:

1. Symbolic positioning: Enhance the self-image, belongingness, or even ego of our customers.

2. Functional positioning: Solve our customer’s problem and provide them with genuine

benefits.

3. Experiential positioning: Focus on the emotional connection that our customers have with

our brand.
2.3 MARKETING MIX OF BRIDGE GROUP SOLUTION

2.3.1 Product

Protecting

1. Life Insurance

2. Health Insurance

3. Travel Insurance

Investing

1. Mutual Fund

2. Wealth Management

3. Portfolio Management

4. Pension Funds

5. Real Estate

Outsourcing

1. ERP &Customized Software’s

2. Recruitment Process Outsourcing

2.3.2 Place

As BGS- is a service industry, the distribution of its products and facilities is done through

various channels – direct and indirect. Numerous routes are taken to reach the potential

customers. The most important and basic channel member until this date has been the

“Insurance agent”. Taking various innovative routes in order to reach the corner that is the

farthest and remotest is the objective of the BGS Pvt.Ltd. Physical distribution of the service

products, which in this case is funds and support at the right time and place is an important

factor of marketing policy of BGS Pvt.Ltd. The organization’s channel of distribution

consists of agents, brokers, retail services related to finance, branch office, alliance with

banks and distributors, corporate agencies and proper and well-maintained infrastructure.

2.3.3 Price

A suitable pricing policy is a very important factor in the successful running of an insurance

company as it is the pricing policy that affects the sales volume of a company. Price is

actually the valuation that is offered for the product by the offeror. For any MAX policy, the

policyholder has to pay a premium that is paid either annually, half-yearly, quarterly or in

some cases monthly. The management takes the decision of fixing the premium of every

policy relating to a particular period.

2.3.4 Promotion

The promotional strategy of BGS is very simple and straightforward. Its main aim is to

inform the consumers about its various policies and about its brand. In order to fulfill this it

has taken steps like personal selling, exhibitions, demonstrations at events, advertising and

new schemes. Bags, diaries calendars are distributed as gifts and incentives to the

policyholders.
2.3.5 People

Understanding the customer better allows them to design appropriate products. Being a

service industry which involves a high level of people interaction, it is very important to use

this resource efficiently in order to satisfy customers. Training, development and strong

relationships with intermediaries are the key areas to be kept under consideration. Training

the employees, use of IT for efficiency, both at the staff and agent level.

2.3.6 Process

The process should be customer friendly in the insurance industry so that what BGS does it

has consumer friendly environment. The speed and accuracy of payment is of great

importance. The processing method is easy and convenient to the customers. Instalment

schemes are streamlined to cater to the ever-growing demands of the customers.

2.3.7 Physical Distribution

Distribution is a key determinant of success for all insurance companies. Today, the

nationalized insurers have a large reach and presence in India. Building a distribution

network is very expensive and time consuming. Technology will not replace a distribution

network though it will offer advantages like better customer service.

 Chapter-3

Job Analysis
 MY LEARNINGS DURING INTERNSHIP

Our internship has been divided into 2 Modules, based on which we are

working. The first module included sales to the customers which had to be

completed within the given time period. And then working on the second

module I gained experience to perform different Finance practice which

includes Financial Planning and some bit of knowledge related to Portfolio

management.

3.1 MODULE 1(Sales to the Customers - B2C)

There were the two plans which were supposedly made to be sold to our network. We were

provided a time period to work on making sales, experiencing the field strategy, and mold our

learning on project titles. We spent around 20 Days on sales, post which we were called back

and assigned work on different verticals of the company.

The minimum target to be achieved was worth Rs.50, 000, which was to be achieved within

the time period allotted. The time period allotted was from 25thJuly’21till 15th August’21

Further the amount was to be deposited in the company to the undersigned Company Guide.

The Client Generation Process thus included certain steps such as

1. Pitching of Clients (Calling and References)

2. Briefing the clients regarding the Investment Plans

3. Closing the sale by collecting the cheque or cash from the clients and also

Finishing the form filling procedure.

3.2 ABOUT PRODUCTS

3.2.1 Monthly Income Advantage Plan

Monthly Income Advantage Plan (MIAP) is one of the most sought financial plan as it

provides guaranteed monthly income for 10 years immediately after completion of Premium

Payment which will help the policyholder meet the upcoming financial requirements even

during unfortunate situations.

Annual Premium for this policy starts from Rs.50,000 p.a. Policyholders can also avail tax

benefits on their policy premium and benefits.

Max Life Monthly Income Advantage Plan has the following 2 Premium Payment Terms:

● 12 years.

● 15 years.

This premium can be paid using the annual, semi-annual, quarterly and monthly payment

modes. The policy term for Max Life Monthly Income Advantage Plan is premium payment

term plus 10 years. So, policy term for 12 Pay variant is 22 years and policy term for 15 Pay

variant is 25 years.

Eligibility:

Minimum age: 18 years

Maximum age: 55 years for 12 pay variant. 50 years for 15 Pay variant

The plan offers accrued bonuses along with Terminal Bonus on maturity of the policy. The

policyholder receives certain benefits with this plan such as:

● Income Benefit: The policy will pay guaranteed monthly income to the policyholders

on every monthly policy anniversary for 10 years after the premium payment term

ends.
 Guaranteed monthly income = 1/12th of 10% of 10% of the Sum Assured. The policy

will provide risk coverage during this benefit payout period.

● Death benefit: The Company will pay the following, if the life insured dies during the

policy term.

● Lump sum Benefit: Here, Death Benefit is higher of the following:

- 105% of all the premiums that have been paid until date of demise.

- 11 times of the Annualized Premium

- Guaranteed Sum Assured on Maturity

- Any Absolute Amount Assured to be paid on death.

● Policy Continuance Benefit: All premiums following or coinciding with the date of

demise will be waived off and the policy will continue. In this case, the beneficiary

will receive the maturity and income benefits by the due date and the policy will

continue to participate in bonuses.

● Maturity benefit: on maturity, the company will pay compounded Reversionary

Bonus plus terminal Bonus. Terminal bonus is an extra bonus that is paid only once. It

is paid on maturity or surrender (whichever is earlier), provided the policy has

completed a minimum of 5 years. Surrender value of terminal bonus will be paid in

case of policy surrender.

● Tax benefit: Monthly Income Advantage Plan owners can enjoy tax benefits under

the Income Tax Act of 1961 in the form of Deductions and Exemptions. Deductions

can be claimed under Sections 80C of the IT Act and Exemptions can be claimed

under Section 10 (10D) of the IT Act.

● Riders:
 1. Max life accidental death & Dismemberment Rider: through this rider, a lump

sum benefit can be availed if dismemberment and death is caused to an accident.

2. Max life term plus rider: if the life insured passes away during the policy term,

this rider will provide additional risk cover.

The insured person can pay the premiums regularly using the following options –

1. Annually

2. Half – Yearly

3. Quarterly

4. Monthly

3.2.2 Savings Advantage Plan (SAP)

Savings Advantage Plan, a non-linked participating life insurance plan, that

provides the policyholder with the triple benefits of flexibility, to select a

premium payment term and policy term and systematic savings, to build a wealth

corpus to cater to any life-stage need and protection, to be prepared for any

exigency.

Savings Advantage Plan comes with the flexibility that allows the customers to

fulfill short, medium or long term life goals by choosing the premium payment

term and policy term as per their desired milestone.

This product also offers a flexibility to the customer to take the maturity benefit or

death benefit in lump sum or in a regular monthly/annual income for 10 years

Age of the Life Insured:

Minimum: 91 days

Maximum: 55 years
Maturity Age of the Life Insured (age as on last birthday):

Minimum 18 years

Maximum: 80 years

KEY FEATURES & BENEFITS OF MAX LIFE SAVINGS ADVANTAGE

PLAN

This product offers you:

1. Choice of Premium Payment Terms and Policy Terms: You have the

flexibility to choose from various premium payment terms & policy terms as per

your requirement. Thus, this feature enables you to decide the period for which

you wish to save and the time when you need monies to fulfill your particular life

stage need.

2. Guaranteed Additions: This plan provides you guaranteed 5.5% of

Guaranteed Sum Assured on Maturity as Guaranteed Additions at the end of each

year for first five policy years to boost your benefits.

3. Death Benefit: In case of death of the life insured on or before completion of

10 policy years, Guaranteed Death Benefit along with accrued Guaranteed

Additions, Paid up Additions (if any) & Terminal

Bonus (if any) shall be payable. In case of death of the life insured after 10 policy

years, 110% of Guaranteed Death Benefit along with accrued Guaranteed

Additions, Paid Up Additions (if any) & Terminal Bonus (if any) shall be payable.

4. Maturity Benefit: You enjoy 110% of Guaranteed Sum Assured on Maturity

along with accrued Guaranteed Additions, accrued Paid-Up Additions (if any) and

Terminal Bonus (if any).

 5. Tax Benefit: You may be entitled to tax benefits on the premiums paid and

benefits received by you as per the prevailing tax laws.

3.3 MODULE 2

In the second module the training according to the specialization starts. I was given training for

FINANCE. Being a Finance intern I gained experience to perform different Finance practices.

1. Financial Planning

During summer has been six weeks of learning – technical learning and learning advisor. In

my conversations and interactions with advisors at I have learned that financial planning is

about more than simply investing a client’s money and talking finance.

To be a financial planner is to help clients feel confident and secure in their ability to live the

life they hope to live.

It is about being involved in a client’s decisions to send their kids to a better school, to

remodel their home.

By telling and explaining them about our products i.e.-

1. Monthly Income Advantage Plan (MIAP)

2. Savings Advantage Plan (SAP)

Even in the short time I was here this summer, I saw the importance of these conversations

and topics, the ones that extend beyond “how has my portfolio performed?” I have been
involved in discussions with parents and their children as they attempt to teach their kids

about the importance of investing and saving before leaving home for college. This

internship has allowed me to improve the technical skills needed to be successful in this

career, but I also started to understand the impact and importance of the relationships you

form in this profession.

2 Portfolio management

A portfolio is a collection of projects and/or programmes used to structure and manage

investments at an organisational or functional level to optimise strategic benefits or

operational efficiency. They can be managed at an organisational or functional level.

Where projects and programmes are focused on deployment of outputs, and outcomes and

benefits, respectively, portfolios exist as coordinating structures to support deployment by

ensuring the optimal prioritisation of resources to align with strategic intent and achieve best

value.

I infact work with Portfolio managers in which I get to learn so many things -

1. Portfolio managers develop and put in place investment strategies for investors

(i.e., Building and managing investment portfolios).

2. Portfolio management typically requires at least an undergraduate degree in business,

Economics, or finance.

3. Individuals best suited for this position have high degrees of efficiency in data

interpretation and a penchant for research and analysis.

Portfolio managers craft the investment packages supplied to clients, while others simply

manage client expectations and transactions. Portfolio managers have to buy and sell securities
in an investor's account to maintain a specific investment strategy or objective over time.

3.4 Learning Summary

Comparative Study of Mutual Funds and ULIPs in Present Context

Abstract: The evaluation of financial planning has been increased through decades, the

existing studies on factors influencing selection of mutual fund and life insurance schemes

are very few and very little information is available about investor perceptions, preferences,

attitudes and behavior. The saving objectives and source of information for investors advise

the companies and individuals as to which is the most preferred investment avenue. A mutual

fund is a type of professionally-managed type collective investment scheme that pools money

from many investors. ULIP stands for Unit Linked Insurance Plan. ULIPs combines the

features of both insurance cover and investment opportunities under a single plan. Both

ULIPs and mutual funds carry a certain element of risk in them that arise from investing.

With this background this paper makes an earnest attempt to study the behavior of the

investors in the selection of these two investment vehicles in an Indian perspective by making

a comparative study.

LITERATURE REVIEW:

Some of the studies reviewed for the study analyzed the investment decisions of investors,

risk Perception of investors and the savings pattern of investors. Lease Ronald et.al. (1974)

carried out a study which studied the demographic characteristics, investment strategy

patterns, informative sources, assets holdings, market attitudes and perception of investors.

The study also analyzed the records of portfolio position and realized investment returns of

the group.
The samples of the study which comprise 990 investors stratified according to the

geographical Distribution of all the American shareholders as reported by the - New York

Stock Exchange were surveyed. The data for the study were collected through a questionnaire

and it was processed with the help of a cluster analysis and automotive interaction detection

analysis. The study revealed that there was a significant positive correlation between

Individual income and total wealth, Age and percentage of portfolio invested in income

securities, Analyzing the investment strategies of the selected group, the study found that

long term capital appreciation was the prime investment concern with dividend and

intermediate term gains running second and short term gains ranking third in the list. A

significant negative correction existed between Annual income and percentage of portfolio

invested in income securities.

Raj M.S et.al. (1998) found that the investment experience of the respondents in the study

was not uniform. Investment decisions generally were taken by the respondents themselves.

The alternative sources contributing to investment decisions such as advice, information from

friends/relatives, consultants and media were not so significant. The factors which motivated

their investment decisions were safety, liquidity, and convenience and price differences.

Thus, the study concluded that investors invest in safe securities such as Cash and Bank

Deposits.

Madhumathi. R (1998) examined the risk perception of 450 individual investors, selected at

Random from major metropolitan cities in India, dividing them into three groups as risk

seekers, risk bearers and risk avoiders. The major findings of the study revealed that majority

of the investors were risk bearers and they had the tendency to use the company’s performance

as a basic factor to take investment decisions. They also depend on the advice of share brokers

and investment consultants. The risk seekers generally took decisions based on market

conditions, industrial positions and social changes. They relied On newspapers and reports for

information. Risk avoiders did not have any specific traits. They were very objective and
looked for facts and certainty in their investment decisions. They relied on the advice of their
friends and relatives.

Bandgar. P. K (2000) studied the existing pattern of financial instruments in India and the

preference of middle class investors, their behavior and problems. A questionnaire was

administered to collect data. Average, skewness, chi-square test, Fisher Irving tests were used

to analyze the data. The study revealed that only 16 per cent of the investors were facing

difficulties in buying and selling securities. Middle class investors were highly educated but

they were lacking skill and knowledge to invest. Female investors preferred to invest in risky

securities as compared to male investors. The study also revealed that there was a moderate

and continuing shift from bank deposits to shares and debentures and a massive shift towards

traditional financial instruments namely LIC policies and Government securities.

Hamid Bahmanpour (2002) identified the determinants of savings and investments drawn

From the life cycle model of consumption in which individuals maximize the present value of

their life time utility, with a budget constraint related to whole life income. Factors such as

population, income growth, interest rate inflation and tax rates were found to have affected the

savings.

Jayachandran. R (2006) found that there is a moderate level of savings among households.

The major determinants of savings were the personal income, family income, family size and

life cycle of the household. The most popular investment on physical assets were consumer

durables whereas on financial assets are bank deposits. The researcher found that there is a

relatively poor level of awareness among the rural people about the various financial assets.

Large portions of the investors did not understand the fundamentals of the investments. Many

investors have invested in safer financial assets like bank deposits.

Only a few investors preferred the investment on public issue, but they are not aware of the

market value of their holdings.

Gaurav Kabra et.al (2010) carried out a study which aims to gain knowledge about key

factors that influence investment behavior and ways these factors impact investment risk

tolerance and decision making process among men and women and among different age

groups. It is to find out Factors which affects individual investment decision, Difference in

perception of Investors in the decision of investing on the basis of age and gender. The data

were analyzed using standard techniques of factor analysis, Regression analysis and other

basic techniques. The study concludes that investor’s age and gender predominantly decides

the risk- taking capacity of investors.

Previous research was one of the studies on “ULIP vs. Mutual funds: Which is better monthly

investment plan” Conducted by Meera Dewaan, in May 2017 published in the free press

journal. The study was based on monthly income proving investment options. Another

research was made on the subject “A Comparative Study on Investors of ULIP and Mutual

Fund Products in Indore City” conducted in pre LTCG era by Dr. Abhay Gupta and Anju

Agrawal, Indore. Was published in Pacific Business Review International. This research

focuses on risk involved in mutual fund and ULIP investment.

“Does investing in ULIPs make more sense after LTCG tax on mutual funds?” by Puneet

Oberoi, Feb, 2018. Mutual fund product and compare the long term returns and cost involved

of both the products. Research paper on Risk and Return Analysis of Mutual Fund Industry in

India by Bilal Pandow, published in Asian online journal, in 2017 and risk associated with it.

Objective of study:

To compare the ULIP and Mutual fund investment on 6 parameters. (Liquidity, flexibility,

returns, cost to be incurred, taxability of income and ease of choice)

 To find which investment option proves to be better

Research methodology:

Survey method is used for collecting primary data. For conducting a survey questionnaire was

used. Sample size for survey was 52.

Target sample was salaried people and students from varied age, income group.

Secondary data was mainly collected through magazines, newspapers, books, research articles

and Economic Times Wealth.

Introduction:

“A mutual fund is a trust that pools the saving of a number of investors who share a common

financial goal.”

Mutual Fund investments are Collective Investment Schemes, which collect contribution

from the subscribers and invest them in a variety of transferable assets such as ordinary

shares and bonds. The money thus collected is invested by the fund manager in different

types of securities depending upon the objective of the scheme. These could range from

shares to debentures to money market instruments. The income earned through these

investments and the capital appreciations realized by the scheme are shared by its unit holders

in proportion to the number of units owned by them.

Mutual Fund is the most suitable investment for the common man as it offers an opportunity

to invest in a diversified, professionally managed portfolio at a relatively low cost. The small

savings of all the investors are put together to increase the buying power and hire a

professional manager to invest and monitor the money. Anybody with an investible surplus of

as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has

a defined investment objective and strategy.

The investment portfolio of the mutual fund is created according to the stated investment

objectives of the fund.

On the other hand, ULIP stands for Unit Linked Insurance Plans. The purpose of the normal

insurance plan is just protecting the life but not ensuring any savings for the future. Many

people wanted plan which gives protection along with returns for their investment. So,

insurance companies come up with the ULIP plan where the premium is invested in the share

market and returns better income on the maturity period.

Unit linked insurance plan (ULIP) is life insurance solution that provides benefits of risk

protection and flexibility in investment. The investment is denoted as units and is represented

by the value that it has attained called as Net Asset Value.

A ULIP is a unit linked insurance plan. This is the type of investment where the

characteristics of insurance and mutual fund are combined. Some part of the money invested

goes into the insurance cover and the remaining goes into an asset class.
Data Analysis and Interpretation

On the basis of survey following results are obtained as discussed above ULIP and Mutual

Fund investment are compared on seven parameters. Following is the summary of the results

obtained for various parameters.

1. LIQUIDITY

60 % of the population liquidity of investment option is important.

88.5 % of population prefer mutual fund for liquidity purpose.
 2. COST OF INVESTMENT

Cost of investment is important for 42% of the population and around 36 % thinks that cost
of investment is very important.
80.8 % of mutual funds over ULIP in terms of cost of investment.
3. EASE OF CHOICE

42% of the population thinks that ease of choice is important.30% of the population prefer
choice is very important.
86.5 % of the population prefer Mutual fund over Ulip.
4. FLEXIBILITY

According to 63 % of the population flexibility of investment is important.

75% of the population prefer mutual fund for flexibility.
5. RETURNS ON INVESTMENT

48% of the population gives high importance to returns on investment.

82.7 % of population prefer mutual fund for better returns on investment.
6. TAXABILITY OF INCOME

46 % of the population gives importance to taxability of income.

82.7 % of the population prefer mutual fund for taxability of income from investment.
 CONCLUSSION

In this study ULIP and Mutual Fund investment are compared on six different parameters

Using questionnaire method of survey. Survey is conducted for the sample size of 52 salaried

employees and students also.

On the basis of literature review and survey conducted mutual fund investment is proved to

be the better investment option over ULIP, when compared on liquidity, taxability,

flexibility, ease of choice, risk factor, returns on investment and cost of investment. Salaried

people prefer mutual fund over ULIP on almost all the parameters. The study also shows that

majority of population is well aware about options available under mutual fund.
 Chapter-4

Learning Outcomes
 4.1 WORKING ENVIRONMENT

As an intern I never get a chance to go to company’s office for the work because of The

pandemic going on, so I can’t tell about the physical environment of workplace However, our

team leader was very supportive and understandable every time any of the interns from our

group asked any question, he answered it instantly and kept motivating us to achieve our

target. The other companions who were in internship group was very helpful and Supportive.

So, the overall working environment was unvarying yet interesting and Engaging.

4.1.1 WORKING EXPERIENCE AT BGS AND BUSINESS ENVIRONMENT IN BGS

I got to join Bridge Group Solution in the month of July as Finance Intern during my whole

Internship time I got to learn a lot of new things. Before joining this internship, I had a keen

interest in the field of Finance. I had learned a lot about it from the College curriculum and

Courses but it was all theoretical knowledge but while doing my Internship in BGS I got to

learn how to work that knowledge is implemented on practical level. During the whole time

my seniors were really supportive and humble with me. I joined as an intern where during my

first module I got knowledge related to insurance sector and basically about two of the life

insurance plan of MAX insurance and during my second module I got practical knowledge

related to recruiting, selecting and retention process. I got to learn a lot and got many new

experiences. Everyone in the Organization is very humble and supportive so I never hesitated

to ask my doubts. There is this friendly professional environment where we enjoyed what we

did. My internship with BGS has been the most rewarding and motivational experiences I

have had during my time as a student. I connected with many employees, cooperating

mentors and other staff, all of whom supported my growth as an Intern, both directly and

indirectly. With such empathetic, compassionate and supportive mentors, this experience has

helped me achieve my goal of completing my internship program for my degree. Because of

the lessons I learned
not only from my supervisor and cooperating employees but from my mates, too, I am

confident that I will continue to grow and develop professionally and in my personal

endeavors. Throughout my internship experience, I was able to develop and foster a truly

positive and compassionate learning environment for my Team, all through the support and

mentorship of my cooperating seniors. Through the application of time management,

organization, discipline and consistent practice, my management skills improved greatly.

Additionally, my development involves managing the daily processes within the department

and planning and delivering effective results in my internship period. I am confident in my

own growth and development. I would not have the knowledge or skills I have today if it were

not for my internship experience with BGS Team, and I look forward to where my career in

finance takes me in the future."

4.2 PRACTICAL KNOWLEDGE

What Is Life Insurance?

Life Insurance is an agreement between an insurance company and a policyholder, under

which the insurer guarantees to pay an assured some of the money to the nominated

beneficiary in the unfortunate event of the policyholder’s demise during the term of the

policy. In exchange, the policyholder agrees to pay a predefined sum of money in form of

premiums either on a regular basis or as a lump sum. If included in the contract, some other

contingencies, such as a critical illness or a terminal illness can also trigger the payment of

benefit. If defined in the contract, some other things, such as funeral expenses might also be a

part of the benefits. Under this I worked on Term Plan, term insurance it is the simplest and

cheapest form of insurance that is designed to offer financial protection for a specified tenure,

say 15 or 20 years.it ensures that your family gets a large lump sum amount, i.e., sum assured

after your death to lead a financially stable life. However, if you survive the term, the insurer
pays 56 nothing. The best
thing about a term insurance policy is that the premium is quite low for the insurance cover it

provides the two plans on which worked were SAP and MIAP by MAX life Insurance Pvt.

Ltd. and for their sales I did cold calling which developed my different types of skills i.e.

Persistence is key when it come to the case of cold calling and to be successful at cold calling,

you must be persistent and cannot succumb to rejection. If persistence is the key to getting

through cold calls, then positivity is absolutely essential to being successful at them. As when

I had the worst cold call of my life, my next dial needs to be like it never happened. If we are

discouraged, it will be immediately apparent in our tone of voice, and our prospects will sense

that and they will be turned off. Quick thinking when we’re on the phone, it’s a live

conversation and we do not have the luxury of time like we would have via an email or other

messages. On a cold call, we will not have the ability to think about the best response or

proper thing to say. Therefore, the ability to think quickly on your feet and decide on the best

course of action is essential to cold call success.

4.3 BEST PRACTICES THAT THE COMPANY FOLLOWS

Bridge Group Solutions Recruitment Process Outsourcing. They deliver RPO solutions PAN

India through regional centers, leveraging their experience to deliver regional RPO expertise.

Through these regional centers they provide flexible and scalable recruitment solutions which

can include anything from sourcing and selection to onboarding to find the talent a company

need. Built upon their deep recruitment expertise and based on rigorous processes, their

innovative approach ensures the results a 57 company need from them — greater

predictability of cost, a more efficient recruiting process, an improved candidate experience

and, more importantly, improved talent quality. They offer result-driven RPO services to

industries, including IT, Manufacturing, Engineering, BFSI, Technology, and Retail. With

headquarters in the capital city of India, Profit by RPO aims to provide one-of-a-kind

recruitment
outsourcing services to almost every organization, from small-medium sized businesses to

Fortune 500 companies. Bridge Group Solutions helps in simplifying the process of human

resource management, by driving efficient results without any complexities. Their RPO India

services are targeted to fulfil the manpower requirement of organization within every phase

like operations, sales, marketing, finance, human resource, etc. Their RPO services India are

flexible, scalable, and tailored to help clients smoothen their hiring practices, and create a

strategic weapon for their business. Backed up with latest technology and based on industry

guidelines, their recruitment process outsourcing India services are sure to build an agile,

skilled and motivated workforce, and add value to partner organization.

4.4 DEVIATIONS IN PRACTICES FOLLOWED BY THE COMPANY

VIS-À-VIS THE CONCEPTS TAUGHT TO YOU IN THE CLASSROOM

There are always some deviations are present when we talk about bookish knowledge and

practical application as if we consider the principal of management by Henry Fayol By

focusing on administrative over technical skills, the principles are some of the earliest

examples of treating management as a profession. They are: 58 Division of Work – Assign

each employee a task that they can become proficient at. Productivity increases as employees

become more skilled, assured and efficient. Today, experts still warn against multi-tasking.

But to grab opportunity today employer is interested in multi taskers. Authority – Managers

must possess the authority to give orders, and recognize that with authority comes

responsibility. As well as rank, Fayol argues that a manager's intelligence, experience and

values should command respect. Now organizations follow this authority but with an open-

door policy where an employee can approach higher authorities for help and other issues as

company culture main role in employee retention. Collective Interest Over Individual Interest
– Individuals should
pursue team interests over personal ones – including managers. Where in today scenario both

of the interest is is important for employee and employers as if an employee don’t see any

personal interest in organization, then retention of employee will be a big challenge. But, as

Daniel Wren writes, "Without the contributions of these pioneers, such as Fayol, we would

probably be teaching industrial engineering, sociology, economics, or perhaps ergonomics to

those who aspire to manage. To be doing so would push us back to the 59 19th century, when

technical know-how reigned supreme as a path to managerial responsibility." And if you look

closer, we'll discover that many of Fayol's points are fresh and relevant. Such as: His

principles advocate teamwork and working together for the mutual benefit of the business.

The Five Functions reveal the need for organizations to plan and be agile in the face of

changing market conditions. Fayol was one of the first people to recognize that management

is a continuous process. Before human resources management, Fayol wrote about motivating

people by inspiring initiative, commanding respect through values, and ensuring that people

have the time and training they need to be happy and productive at work. The manager who is

respected for their values leads by example, makes time to get to know their employees, and

gives them the training they need, sounds a lot like a modern manager.
 Reference:

 Media Reports, Press Releases, Press Information Bureau, Union Budget 2017-18

 https://www.amfiindia.com

 https://economictimes.indiatimes.com

 SEBI

 www.wikipedia.com

Appendices:

Questionnaire

1) Name

2) Age

3) Gender

Scale the following aspects of investment option on the scale of 5

1 – Not important at all, 2 – Not important, 3 – Not so important, 4- Important, 5 – Very

important

4) Liquidity

5) Flexibility

6) Taxability of income

7) Ease of choice

8) Returns on investment

9) Cost of investment

10) Safety of sum invested

11) What will you prefer for liquidity?

 Mutual fund

 ULIP

12) What will you prefer for cost of investment?

 Mutual fund

 ULIP

13) What will you prefer for ease of choice?

 Mutual fund

 ULIP

14) What will you prefer for flexibility?

 Mutual fund

 ULIP

15) What will you prefer for returns on investment?

 Mutual fund

 ULIP

16) What will you prefer for taxability of income from investment?

 Mutual fund

 ULIP