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ON “COMPARATIVE ANALYSIS OF ULIP’S OF MAJOR COMPANIES AND WITH MUTUAL FUND IN BAREILLY REGION” SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF
POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT (APPROVED BY AICTE, GOVT OF INDIA) (EQUIVALENT TO MBA)
ACCADEMIC SESSION (2007-2009) External Guide: Mr.Ankur Vij BDM Submitted By:Siddharth Agarwal BM 07149 INTERNAL GUIDE Prof. Anagha Shukre Faculty Ims,Ghaziabad
INSTITUTE OF MANAGEMENT STUDIES C-238, BULANDSHAR ROAD, LAL QUAN, G.T.ROAD GHAZIABAD-201009
I express my profound gratitude to Mr. Ankur Vij BDM, who assigned me as a Summer Trainee in HDFC STANDARD LIFE. I want to give my sincere thanks to his kind advice and guidance that had made my project successful. Many of the sound advices have been well taken by me and it is largely due to his patience that I was able to achieve my goals successfully. I am also grateful to DR. R. K. Bhardwaj –Director, Institute of Management Studies, Ghaziabad, Mr. Rohit Seghal –Head ,Corporate Resource Centre and Mr. Rajnee Khare Senior Manager, Corporate AffairsInstitute of Management Studies, Ghaziabad and Prof. Anagha Shukre who supported a lot and gave me the permission of Summer Training in HDFC STANDARD LIFE. Also I would like to give regards to my Parents, seniors, friends who have in some way helped me in completing this project.
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Mr. SIDDHARTH AGARWAL student of PGDBM (2007-2009) I.M.S Ghaziabad has done his live summer training project under my guidance and supervision from 20th April2008 to 20th 2008. He has completed the project titled “Comparative analysis of ULIPS of major companies with mutual funds in Bareilly region” towards the partial fulfillment of PGDBM under my supervision. During his project he was found to be very sincere and attentive to small details whatsoever told to him. I wish him luck and success in future.
Under the guidance of: Prof. Anagha Shukre
PREFACE Man has found out himself many things to make himself and his near dear ones happy. Insurance is one such invention of man. Insurance is many splendid thing. It is not just the reluctant entry and the periodical reminders for paying the premium and the last receipt of the claim money which may look large or a mere pittance depending upon whether the policy was in force earning handsome bonus or had been languishing in a state of suspended animation. insurance is a wonderful world of mortality rates, utmost good faith, medical examinations with ECG and treadmill exercises, bonuses and no claim discounts and a host of other science and arts which the insurance people learn in order to provide what they call financial security and peace of mind which no other invention of man can match. Indian older population may double in 20 years and economic development and widespread migration of young adults are disrupting the traditional support for older people but ironically economy is not growing in the same folds. These changes are alarming, as alternative ways of investing the pension funds for meeting the requirements of old age people are not yet evolving. The main objective of pension is to ensure that entire working population has secured an adequate income during his /her retired life and thereafter for the lifetime of the spouse/dependents. It is a universal truth that people do not willingly accept and adopt the good things of life. Through the universal advantage of insurance are self-evident to a prudent person. Still a great deal of persuasion, explanation and at times pressurization is necessary to make customer centric and this is the matter being translated by new companies. The following research work takes a look on such persuasion of the insurance companies and the way they deal with people regarding the support of life in old age- The Pension Plans.
CONTENT CHAPTER1:Brief History……………………………………………………8 How big is the insurance market………………………………..9 Indian Scenario…………………………………………………9 Need for insurance……………………………………………...9 What is Human Life Value (HLV)……………………………..9 What is a contract of insurance………………………………..10 Classification of insurance business…………………………...10 CHAPETR2:The Insurance Players…………………………………………..12 Types of Plan…………………………………………………...12 Conventional……………………………………………………12 ULIP……………………………………………………………13 CHAPTER3:Profile…………………………………………………………...13 HDFC Standard Life Insurance Co. History……………………14 Insurance Sector………………………………………………...14 CHAPTER4:Concept of Unit Linked………………………………………….14 ULIP of HDFC…………………………………………………..14 ULIP with insurance…………………………………………….15 ULIP as pure investment………………………………………..16 FMC a small but handy tool…………………………………….17 CHAPETR5:INTRODUCTION TO MUTUAL FUND………………………18 Mutual Funds – Concept………………………………………...19 Net asset value (NAV) of a scheme……………………………..20 The intelligent investor's seven rules…………………………….21 Measuring performance of Mutual Fund………………………...21 Risks involved in investing in Mutual Funds……………………24 Types of Mutual Fund…………………………………………...25 Benefits of Investing In Mutual Funds………………………….30 Disadvantages of Mutual Funds…………………………………33 Scope for Development of Mutual Fund Business in India……..34
35 Limitation……………….53 8.57 6 .51 Recommendation & Suggestions.. Appendix………………………………...………………………....………………….51 Conclusion………………....CHAPETR6 Objectives………………………………………………….……………………………...... Bibliography…………………………….51 7...……………………………...34 Research Methodology….…..…………………….………………………………..
factories. The life insurance industry in India had to be geared up for raising resources for execution national programs. How ever. The association played companies’ forum for expression of representative views on insurance and taxation legislation and imparting insurance education. Industrialization with its cities. 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. which began with the decline of the agrarian society in the western countries in the 19th century. cash economy and an urban ‘saving’ class set the stage for life insurance as a large – scale national institution. 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 7 .Insurance Sector The practice of insurance in the world is quite old infect. The business started taking its deeper roots only when in the late 19th century ‘India’ insurance companies appeared on the scenes and started accepting ‘India’ lies freely on the same terms as European lives in India. With a view to meeting this need and also to providing a representative body for expression of a common viewpoint of Indian insurance before the government regarding insurance legislation and Indian life Assurance offices association was established in 1928. Nationalization Even during days of the freedom struggle there was occasional demand for nationalization of life insurance industry. life insurance business. Growth of life insurance Company in any country will illustrate introduced modern life insurance business didn’t make much headway. Mismanagement had lead to liquidation of as many as 25 life insurance companies in the decade after independence. The demand naturally gathers mare momentum after independence. Need for Association With the rise in the number of Indian life insurance companies occasioned by the growth in the national spirit as a result of the independent movement a need was felt by the companies for an organization to assist them in solving the problems faced by them. It was therefore. It can truly be that life insurance is a product of modern industry. 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. Another 25 insurance companies had during the same period so frittered away their resources that their business had to be transferred to other companies. as it is known today. It evolved from the great transformation in life. One of the objectives of the national plans was to build a pay welfare state. The business passed through the period of ups and downs with the political and economic situation in the country. is a much later development. This misuse of power. The growth of India life insurance business continued to remain restricted till the Swedish movement gathered momentum.
The (Congress) government set up Insurance set u an Insurance Reforms committee in April 1993. in 1850 were incorporated. and called for private sector entry and restructuring of the LIC and GIC. in 1823 and Tritons Insurance Company. General Insurance business. Belonged to the policyholders. • Investment of funds in such a way as to secure maximum yield consistent with safety of capital. by Parliament. Due to concerns of relatively low spread of insurance in the country. for General Insurance. The untapped potential for mobilizing long-term contractual savings funds for infrastructure. The committee submitted its report in January 1994. • Effective mobilization of the people’s savings. non-life insurance business was nationalized and the General Insurance Business (Nationalization) ACT. Insurance ACT was passed in 1928 but it was subsequently reviewed and comprehensive legislation was enacted in 1938. • Formulation of scheme of insurance to suit different section of the community. 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. Subsequently in 1973. 8 . Brief History The insurance sector in India dates back to 1818. • Prompt and efficient services to the policyholders. • Complete security to policyholders. recommended a phased program of liberalization. The efficient and quality functioning of the Public Sector Insurance Companies. 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. 1972 was promulgated.the people’s saving that could be analyzed through the life insurance into the development programs. 1956. • Development of a dynamic and vigorous organization under a management conducted in sprit of Trusteeship. 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 Act. The nationalization of life insurance business took place in 1956 when 245 Indian and Foreign insurance societies were first merged and then nationalized. • Conducting of the business with the utmost economy and with the full realization that the money. 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. when Oriental Life Insurance Company like Bombay life Assurance Company.
These points will be more cleared with this example:• Suppose an individual earns Rs. • Family income needs.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. However India's share of world insurance market has shown an increase of 10% from 0. Gross premium collection is about 2% of Gap and has been growing by 15-20% per annum.How big is the insurance market? Insurance is a Rs. and together with banking services adds about 7% to India's Gap. In India insurance spending per capita was among the lowest in the world at $7. Health insurance of any kind is negligible and other forms of non-life insurance are much below international standards.7% Non-life business grew by 3. • Business needs What is Human Life Value (HLV)? Human life value is:• Capitalized value of the net earnings • Present value of the total income lost to the family in the event death. • Cash and income needs of a husband on the death of his wife. • Education needs. 10000/month.31% in 2004-2005 to 0. Indian Scenario : Unfortunately the concept of insurance is not popular in our country .20%.6 compared to $7 in the previous year. the total premium income generated by life and general insurance in India is estimated at around a meager 1.1% against global average of 0. • Income needs of a widow on the death of her husband. • The personal expense is Rs.As per the latest estimates.2000/month • Therefore the income provided to his family is Rs. 9 . Need for insurance: Modern life insurance caters to multiple needs for insurance. • Retirement income needs. and total investible funds with the LIC are almost 8% of GDP. India also has the highest number of life insurance policies in force in the world. Amongst the emerging economies. India is one of the least insured countries but the potential for further growth is phenomenal. which can be broadly classified as under: • Cash and income needs on an immediately following death. Yet more than three-fourths of India's insurable population has no life insurance or pension cover. 8000/month.400 billion business in India. as a significant portion of its population is in services and the life expectancy has also increased over the years.95% of GDP.
Classification of insurance business: The insurance is broadly classified as: 1 . Hence this is not the exact human life value but only a representation to give the customer a fair idea of how it works. It is equally obligatory on an agent to see that the assured doesn't obtain the contract by means of untrue representation or concealment in any respect. What is a contract of insurance? A contract of insurance is a contract of utmost good faith. The purpose. 96000 yearly at 6% (96000*100/6) • Therefore the HLV of the person is Rs. This provision is not applicable if the corporation can prove that misrepresentation or non. therefore. is presumed to have means of knowledge that are not accessible to the corporation who is the other party to the contract. Although Section 45 of the Insurance Act.1600000 in a bank so that they get Rs. the purpose is bound to tell the insurer everything affecting the judgment of the insurer. who is one of the parties to the contract. • • interest. 1600000. Ps. in the interest of the would be policyholder to disclose all the material facts to the corporation to avoid any complication when the claim arises. It is. technically known as uberrima fides. the family would have to Rs. 96000 Now if he were not to earn it for them .Life insurance business 2. those which he thinks material Misrepresentation non-disclosure or fraud in any document leading to the acceptance of the risk automatically discharges the corporation from all liability under the contract.The annual income provided to his family works out to Rs. Therefore.disclosure was on a material fact and was fraudulently made and that the policyholder knew at the time that statement he made was false. 1938 provides that no policy can be called in question after a period of two years from the date of its issue on the ground that any statement in proposal or a related document was false or inaccurate (making the policy indisputable). It is the duty that the agent owes both to his client and to the corporation. In all the contracts of insurance the proposes is bound to make full disclosure of all material facts and not merely. Non-life insurance business Life insurance business: 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: 10 . Note that we have not taken into account the future income growth of the person. The doctrine of disclosing all material facts is embodied in this important principal that applies to all forms of insurance.
1956 and the insurance Act. 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.the country and providing them adequate financial cover against death at a reasonable Cost. 1999 An act to provide for the establishment of an authority to protect the interests of policyholders. Marine insurance 3. Spread Life Insurance much more widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in . Act as trustees of the insured public in their individual and collective capacities. Insurance of liability ROLE OF INSURANCE REGULATORY AND DEVLOPMENT AUTHORITY (IRDA) ACT. Bear in mind. Meet the various life insurance needs of the community that would arise in the changing social and economic environment. whose money it holds in trust. Insurance of property 3. Insurance of person 2. community as a whole. to promote and ensure orderly growth of the insurance industry and for matters connected therewith for incidental thereto and further to amend. Miscellaneous insurance (accident) Modern classification of general insurance 1. the primary obligation to its policyholders. keeping in view national priorities and obligations of attractive return. Maximize mobilization of people's savings by making insurance linked savings adequately attractive. the funds to be deployed to the best advantage of the investors as well as the community as a whole. trade or employment or of the dependents of such persons. 11 . in the investment of funds. to regulate. Conduct business with utmost economy and with the full realization that the moneys belong to: the policyholders. Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy. Insurance of interest 4.The granting disability and double and triple indemnity accident benefits. Non life insurance business : Conventional classification of insurance business: 1. The granting of annuities of human life. Fire insurance 2. without losing sight of the interest of the. the Life Insurance Corporation Act. if so provided in the contract of insurance. 1938 and General Insurance Business Act 1972.
Insurance is always of the parent and beneficiary is the child. Example: Children’s Plan. There are 2 types of loss that occurs on any type of miss happening i.. In this plan the customer has knows how much return he will get after maturity or any miss happening occurs. 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. pride and job satisfaction through discharge of their duties with ded1cat1on towards achievement of Corporate Objective. Here risk is low and returns are also low. Illustration: Premium for 10 yrs is 20000 20000+20000+20000+20000+20000+20000+20000+20000+20000+20000= 2lks Return described was 2. • • Conventional ULIP Conventional:Conventional plans are those plans in which returns are known and are fixed. The Insurance Players… – – – – – – – – – – – – – – HDFC Standard Life Insurance Company Limited Birla Sun Life Insurance Company Limited TATA AIG Life Insurance Company Limited Max New York Life Insurance Company Limited Kotak Mahindra Old Mutual Life Insurance Limited SBI – Cardiff Life Insurance Company Limited ING Vysya Life Insurance Company Limited Bajaj Allianz Life Insurance Company Limited ICICI Prudential Life Insurance Company Limited MetLife Life Insurance Company Limited Aviva Life Insurance Company Limited Reliance Life Insurance Company Limited Sahara India Life Insurance Limited Shriram Life Insurance Company Limited Types of Plan….e. because it is not dependent on the market risk and is a rigid policy.Promote amongst all agents and employees of the Corporation a sense of participation.5 times So the customer will get approx 5 lkhs after deducting all charges. emotional loss and monetary loss 12 .
The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited'.9 crore (Rs.000 shareholders. The Stock Exchange. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. The paid-up capital is Rs.1% of the bank's equity and about 19.4. Capital Structure The authorized capital of HDFC Bank is Rs. Roughly 31.company can’t full fill emotional loss but can help in monetary loss by giving the 2lks Rs. India. 13 . The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB". The HDFC Group holds 22. As it is said higher risk higher return Profile The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.1 billion). with its registered office in Mumbai.3. The shares are listed on.4% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue).450 crore (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. as part of the RBI's liberalization of the Indian Banking Industry in 1994. Mumbai and the National Stock Exchange. ULIP ULIP stands for UNIT LINK INSURANCE PLAN.3% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 190.311.5 billion).
Indian Bank. Union Bank of India. Deepak Satwalekar. History: HDFC Standard Life Insurance Co. Concept of Unit Linked…… Unit Linked Policies are unbundled Unit link polices are separate identification of part investment element. Saraswat Bank and Bajaj Capital. expense administration charges and benefit charges shown separately. ULIP of HDFC • • ULIP with insurance ULIP as pure investment 14 . Charges can be subjected to be changed however mortality remains unchanged during the tenure of policy. Unit Linked Policies have explicit charges It is the consequence of unbundling.6 joint venture to form HDFC Standard Life Insurance Company Limited.) India and UK based Standard Life Company.4:18. Both the joint venture partners being one of the leaders in their respective areas came together in this 81. Unit Linked Policies make use of Unit linked funds Investment housed in funds divided in units’ client has choice of funds. HDFC Bank India Limited.HDFC Standard Life Insurance Co. has given the company new directions and has helped the company achieve the status it currently enjoys. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd. Unit Linked Policies are linked Value of policy linked to net assets investment risk and rewards transferred from the insurer to the client. The MD and CEO of HDFC Standard Life Mr. Bank of Baroda. Ltd was incorporated on 14th august 2000. The Bancassurance partners of HDFC Standard Life Insurance Co Ltd are HDFC. HDFC Standard Life brings to you a whole range of insurance solutions be it group or individual or NAV services for corporations. they can be easily customized as per specific needs.
25% of fund value. Which can be paid yearly. Allocation charge 1st year 60% 2nd year and onward 1% Allocation how ever increases with increase in premium size thus giving better returns to HNI (high network individual). Charges Fund management charge(FMC) HDFC SL enjoys the lowest FMC rates across the industry i. monthly.ULIP with insurance Unit link young star plus II As a parent. priority is children’s future and being able to meet their dreams and aspiration. HDSFC SL Unit Link Young Star Plus II provides a medium through a parent can help there children in building up a secured financial future. Steps to own a plan Step 1: this is the premium which will continue to pay each year oh the policy. And the sum assured will be given to the beneficiary. Just imagine how much you will need when your children take these important steps in life. Today. after 5 years surrender value will be the value of units of the plan. establishing a professional career or even a modest wedding is expensive. Policy administration charge: 60rs per month 15 . Step 3: can choose double or triple benefit. there is no surrender charge after 5years. 1. The min regular premium is Rs. quarterly or half yearly? Step 2: sum assured minimum 5 times and maximum 40 times. In case of unfortunate demises during the policy term Double Benefit Company will pay 100% of the entire future regular premiums.e.12000 per year. And sum assured will be given to the beneficiary Triple Benefit Company will give 50%of the premium to the beneficiary and 50% as regular premium. providing a good education. Surrender is not possible. Costs are increasing fast. Surrender In the first five years.
ULIP as pure investment to maximize investment returns. HDFC invest the premium of the customer in the chosen fund in the proportion that he/she specifies. Steps to own plan Step 1 Step 2 Choose the retirement age Choose the premium wish to invest based on retirement needs Step 3 Choose the investment fund or funds he/she desire Step 1: select any age between 50 years and 75 years. The above –mentioned tax benefits are subject to change in tax law.10000 per year. quarterly or half yearly? Investor can opt for combination of 6 funds or 1 fund depending upon the need of investor and his ability to take risk.990 from the tax every year.(calculated on the highest tax bracket) as premium up to a maximum of Rs. Under Section 80ccc. At the end of the policy term. regulations • He/She can take 1/3 if the funds value as a tax-free cash lump sum and rest must be converted to an annuity. Accessing Customers Money: a) On vesting Policy matures at the end of the policy term customer have chosen and on chosen retirement date. ehich will provide pension income. he will get the value of units in policy as per prevailing Govt.All charges other than allocation are being charged on daily basis on the cancellation of units. nominee will receive a cash lump sum to help him or her manage the retirement years. 00.000 are allowed as a deduction from your taxable income. Tax benefits (based on current tax-law) You will be eligible for tax benefits under section 80ccc of the income tax act. monthly. 16 . In the event of unfortunate demises during the policy term. 1. The min regular premium is Rs. Which can be paid yearly. you can save up to 33. All insurance plans are subjected to different risk factors. he /she will reive the accumulated value of the fund. Step 2: this is the premium which will continue to pay each year oh the policy. 1961.
It seems to be very small charge but in reality it’s a charge which makes the difference between 2 policies. there is no surrender charge after 3 years.e. 1. . The maximum FMC in any fund is 2% p. c) On surrender In the first three years. Generally people are unaware if this charge.000 are allowed as a deduction from your taxable income. Under Section 80ccc. HDFC is the company which 17 . Policy administration charge: 20rs per month All charges other than allocation are being charged on daily basis on the cancellation of units.990 from the tax every year. Allocation charge 1st year 25% 2nd year 25% 3rd and onward 1% Allocation how ever increases with increase in premium size thus giving better returns to HNI(high network individual). • • FMC a small but handy tool FMC stands for Fund Management Charges. subject pot prior approval by the IRDA. b) On death In case of unfortunate demises before the end of policy term.8% of fund vaue. This is the tool which is vibrantly used by the company to take charges. nominee will receive the unit fund value. Surrender is not possible.(calculated on the highest tax bracket) as premium up to a maximum of rs. 00. 1961. Customer is allowed to alter vesting date subject to above age at vesting and policy term limits.a. FMC is applied on the fund while calculating NAV.He/She can but the annuity from the company or any other insurer. after 3 years surrender value will be the value of units of the plan. Charges Fund management charge(FMC) HDFC SL enjoys the lowest FMC rates across the industry i. Tax benefits (based on current tax-law) You will be eligible for tax benefits under section 80ccc of the income tax act. The above –mentioned tax benefits are subject to change in tax law. you can save up to 33. policy will terminate there after.
The effect of FMC can be seen in long term but has a minute effect in short term. a large part of which comes from retail investors. A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. The one investment vehicle that has truly come of age in India in the past decade is mutual funds. The 18 . it is also the most glamorous – in that it is a young industry where there are changes in the rules of the game everyday. Today. Foe illustration:premiu m 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 6000 15000 9000 at 2% fmc others 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 At 0.charges lowest FMC i.000 crore of assets. the mutual fund industry in the country manages around Rs 100. These could range from shares to debentures to money market instruments.8% Fmc HDFC 400 400 400 400 400 400 400 400 400 400 400 400 400 400 400 Years 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Sum of HDFC FMC Sum of others FMC Difference INTRODUCTION TO MUTUAL FUND:- The mutual fund industry is a lot like the film star of the finance business. and there are constant shifts and upheavals.Though it is perhaps the smallest segment of the industry.8% which is generally higher with other companies near about 2%.e. 0.
you have no control on the investments of the fund. A mutual fund is the answer to all these situations. and. skills.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 (pro rata). complicated and definitely not for you then think once again. It appoints professionally qualified and experienced staff that manages each of these functions on a full time basis. The income earned through these investments and the capital appreciations realized are shared by its unit 19 . investments and transaction processing. Mutual Funds – Concept A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. A mutual fund is the ideal investment vehicle for today’s complex and modern financial scenario. The large pool of money collected in the fund allows it to hire such staff at a very low cost to each investor. real estate. the mutual fund vehicle exploits economies of scale in all three areas research. An individual also finds it difficult to keep track of ownership of his assets. Price changes in these assets are driven by global events occurring in faraway places. investments. understand their implications and act speedily. Markets for equity shares. inclination and time to keep track of events. derivatives and other assets have become mature and information driven. brokerage dues and bank transactions etc. debentures and other securities. the downside of diversification is that a fund can hold so many stocks that a tremendously great performance by a stock will make very little difference to a fund's overall performance. With mutual funds. Now if you think that the world of Mutual Funds is intimidating. Each Mutual Fund scheme has a defined investment objective and strategy. But every coin has a flip side. A typical individual is unlikely to have the knowledge. more importantly. bonds and other fixed income instruments. The money thus collected is then invested in capital market instruments such as shares. In effect.
In simple terms. Mutual funds invest the money collected from the investors in securities markets. NAV is the market value of the securities held by the scheme. NAV of a scheme also varies on a day-to-day basis. The NAV per unit is the market value of securities of a scheme divided by the total number of units of the scheme on any particular date. Since market value of securities changes every day. professionally managed basket of securities at a relatively low cost. 20 . Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified.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 Fig –1 Net asset value (NAV) of a scheme Net asset value denotes the performance of a particular scheme of a mutual fund.
the only option among mutual funds is liquid funds. but if you are not cut out for the risk that accompanies it. Invest in an equity fund only if you are willing to stay on for at least two years. don’t bite the bait. it’s another to ride on this potent investment vehicle to create wealth in tune with your risk profile and investment needs. For income and gilt funds. A mutual fund is essentially a savings vehicle. Know your risk profile Can you live with volatility? Or are you a low-risk investor? Would you be satisfied if your fund invests in fixed-income securities. have a one-year perspective at least. check if the fund’s objective matches yours.daily or weekly . The intelligent investor's seven rules It’s one thing to understand mutual funds and their working. 1. Anything less than one year. Invest only after you have found your match. So. If you are racked by uncertainty.For example. NAV is required to be disclosed by the mutual funds on a regular basis . if the market value of securities of a mutual fund scheme is Rs 200 lakhs and the mutual fund has issued 10 lakh units of Rs 10 each to the investors. then the NAV per unit of the fund is Rs 20. Here are seven must-dos that go a long way in helping you meet your investment objectives. 21 . Equity funds might lure when the market is rising and your neighbor is making money. 2. Identify your investment horizon How long you want to stay invested in a fund is as important as deciding upon your risk profile. seek expert advice from a qualified financial advisor. Your investments should reflect your risk-taking capacity. and yields low but sure-shot returns? These are some of the questions you need to ask yourself before investing in a fund.depending on the type of scheme. not a speculation vehicle–don’t get in with the intention of making overnight gains.
That way. Read the offer document carefully This is a must before you commit your money to a fund. Diversify across fund houses If you are routing a substantial sum through mutual funds. in the form of a percentage of your initial investment. the better. 4. The more fact sheets you examine. Your focus should be to find a fund that matches your investment needs and risk profile. Some financial intermediaries give upfront incentives. and is a performer. You can check the fund’s portfolio. its diversification levels and its performance in the past. among other things).3. you spread your risk. The offer document contains essential details pertaining to the fund. debt or balanced fund. 5. Track your investments Your job doesn’t end at the point of making the investment. Don’t buy it. Do not chase incentives Don’t get lured by investment incentives. financial information and risk factors. you should diversify across fund houses. It’s important you track your investment on a regular basis. investment objectives and investment procedure. name of the asset Management Company and price of units. 6. to invest in a particular fund. be it in an equity. Go through the fund fact sheet Fund fact sheets give you valuable information of how the fund has performed in the past. 7. including the summary information (type of scheme. One easy way to keep track of your fund is to keep track of the Intelligent Investor rankings of mutual 22 .
risk adjusted measures of return are needed to measure the performance of funds. in a bid to generate super normal return. ask your financial advisor or broker about it. If the returns generated by the fund as measured by changes in NAV over that given period of time are greater than those generated by the benchmark then the fund is deemed to have outperformed the market portfolio. Relative to benchmark method Under this method a comparison is made between the returns given by a market index. An investor would naturally be interested in finding out the return generated for the risk undertaken. and Alpha-: a) Sharpe ratio 23 .funds. which are complied on a quarterly basis. as. the Treynor ratio. Therefore. as it does not incorporate any measure of risk in its calculation. DERIVATIVES Measuring performance of Mutual Fund 1. and compare it across various time periods as well as across its peer set. If the threat is real. In addition. and the fund over a given period of time. There are several such measures prominent among which are the Sharpe ratio. These rankings allow you to take note of your fund’s performance and risk profile. you should run some basic checks in the fund fact sheets and the quarterly reports you get from your fund. the fund may go overboard on the risk parameter. Risk-Return Method The Relative-to-Benchmark measure is very simplistic. If you come across negative reports of the fund. 2. especially if there’s a possibility of your investment depreciating in value. reduce your exposure to the fund.
It does not give representation to unsystematic risk under the assumption that the fund manager can easily wipe out the unsystematic risk by diversifying across a large number of stocks. the fund has a negative alpha. thus reflecting only the systematic risk. One thing that has to be kept in mind while using this measure is that the ratio is not an absolute figure.This measure uses standard deviation as a measure to evaluate a fund's risk-adjusted returns. b) Treynor's ratio The other measure Treynor's ratio also has the same attributes with the difference that the residual figure in this case is divided by beta rather than the standard deviation. Mathematically. 24 . Mathematically. it has a positive and favorable alpha. Alpha= fund return . it is arrived at by deducting the risk free returns from the returns generated by the fund and dividing the residual figure by the standard deviation of the fund's returns. thereby impacting the NAV. Market risk If the overall stock or bond markets fall on account of macro economic factors. alpha is the difference between the return that would be warranted by its beta (expected return) and the return that is actually generated by the fund. given the movements of the benchmark how much the fund will move. Its real utility lies in inter scheme comparison.[Risk free rate + Beta of fund (Benchmark return Risk free return)] Risks involved in investing in Mutual Funds 1.e. Beta of the fund is a volatility measure that quantifies sensitivity of the fund's return to the benchmark index's returns i. and if it returns less than the amount predicted by beta. the value of stock or bond holdings in the fund's portfolio can drop. c) Alpha Basically. If a fund returns more than what is anticipated by beta.
How bad the damage will be is dependant on factors such as maturity profile. Interest rate risk Unit prices and interest rates move in opposite directions. which can negatively affect funds holding a large quantity of that stock. it leads to a fall in the value of the bond causing the NAV of the fund to take a beating Types of Mutual Fund 25 . 3. 4. When interest rates rise. they run the risk of the corporate defaulting on their interest and principal payment obligations and when that risk crystallizes. So when the funds invest in corporate bonds. This risk can be reduced by having a diversified portfolio that consists of a wide variety of stocks drawn from different industries. liquidity etc. bond prices fall and this decline in underlying securities affects the NAV negatively.2. Credit risk Bonds are debt obligations. Non-market risk Bad news about an individual company can pull down its stock price.
Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. 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. some close-ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices. The key feature of open-end schemes is liquidity. In order to provide an exit route to the investors. These do not have a fixed maturity. b) Closed-ended Funds A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years.Fig –3 Mutual fund schemes may be classified on the basis of its structure and its investment objective:- 1. By Structure: a) Open-ended Funds An open-end fund is one that is available for subscription all through the year. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor. The fund is open for subscription only during a specified period. c) Interval Funds 26 .
because they invest in equities. seek to invest a majority of their funds in equities and a small portion in money market instruments.Interval funds combine the features of open-ended and close-ended schemes. by Investment Objective: a) Equity Oriented Schemes These schemes. also commonly called Growth Schemes. 2. However. Fig – 4 27 . 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. 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. 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. Fig – 6 28 . such as retired individuals. These schemes are ideal for conservative investors or those not in a position to take higher equity risks. 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.Fig –5 b) Debt Based Schemes These schemes. However.
By investing in a mix of this nature. if the fund has a good performance history. balanced schemes seek to attain the objective of income and moderate capital appreciation and are ideal for investors with a conservative. a commission will be payable. Typically entry and exit loads range from 1% to 2%. e) No-Load Funds 29 . HDFC Balanced Fund and HDFC Children’s Gift Fund are examples of hybrid schemes. d) Load Funds A Load Fund is one that charges a commission for entry or exit. It could be worth paying the load.Fig –7 c) Hybrid Schemes These schemes are commonly known as balanced schemes. long-term orientation. That is. each time you buy or sell units in the fund. These schemes invest in both equities as well as debt.
The investment of these funds is limited to specific industries like InfoTech. OTHER SCHEMES: a) Tax Saving Schemes These schemes offer tax rebates to the investors under specific provisions of the Indian Income Tax laws as the Government offers tax incentives for investment in specified avenues. no commission is payable on purchase or sale of units in the fund. That is. and Pharmaceuticals etc.A No-Load Fund is one that does not charge a commission for entry or exit. FMCG. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act. 3. The advantage of a no load fund is that the entire corpus is put to work. ii) Index Schemes Index Funds attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50 iii) Sectoral Schemes 30 . 1961. The Act also provides opportunities to investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds. b) Special Schemes: i) Industry Specific Schemes Industry Specific Schemes invest only in the industries specified in the offer document.
You achieve this diversification through a Mutual Fund with far less money than you can do on your own.Sectoral Funds are those. 2. Convenient Administration Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries. Benefits Of Investing In Mutual Funds 1. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities. Mutual Funds save your time and make investing easy and convenient. delayed payments and follow up with brokers and companies. 4. Low Costs 31 .Diversification Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors. 3. 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. which invest exclusively in a specified industry or a group of industries or various segments such as 'A' Group shares or initial public offerings. Return Potential Over a medium to long-term. Professional Management Mutual Funds provide the services of experienced and skilled professionals. 5.
a variety of tax laws apply to mutual funds. the unit-holder has the option to pay capital gains tax at either 20 % (with indexation) or 10 % without indexation. 32 . over the years. 6.Transparency you get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme.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. the investor gets the money back promptly at net asset value related prices from the Mutual Fund. Currently. In closed-end schemes. which are broadly listed below: 1) Capital Gains Units of mutual fund schemes held for a period more than 12 months are treated as longterm capital assets. In such cases. the overall objective has been to encourage the growth of the mutual funds industry. Tax Benefits The taxman has. custodial and other fees translate into lower costs for investors. 7. been more or less kind to mutual funds! With laws varying from time to time. the proportion invested in each class of assets and the fund manager's investment strategy and outlook. Liquidity In open-end schemes. 8. 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 relevant sections in the Income Tax Act governing this provision are Section 194K and 196A. 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. However. 3) Wealth Tax Mutual fund units are not currently treated as assets under Section 2 of the Wealth Tax Act and are therefore not liable to tax. While section 10(23D) exempts income of specified mutual funds from tax (which currently includes all mutual funds operating in India).000. this does not mean that there is no tax at all on income distributions by mutual funds. therefore the maximum tax benefit available works out to 33 . For this purpose.10. income distributed by schemes other than open-end equity schemes is subject to tax at 20 % (plus surcharge of 10 %). 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. no tax is deducted or withheld at source. 5) Income Distribution Tax As per prevailing tax laws.2) Tax Deducted at Source (TDS) For any income credited or paid by a fund. 6) Section 80-C 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. Section 10(33) exempts income from funds in the hands of the unitholders. equity schemes have been defined to be those schemes that have more than 50 % of their assets in the form of equity.
India has a burgeoning population of middle class now estimated 34 . Unlike picking your own individual stocks. 4. Buried Costs.Rs. That's right. this is not an advantage.2000. Scope for Development of Mutual Fund Business in India A Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified. KP Pension Plan etc Disadvantages of Mutual Funds 1. 2. but charges fees as though she is. 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. professionally managed basket of securities at a relatively low cost. the benefit of Section 80-C is also available in select schemes of some funds such as UTI ULIP. No Control. 3. The Wisdom of Professional Management. Many mutual funds specialize in burying their costs and in hiring salesmen who do not make those costs clear to their clients. Apart from ELSS schemes. The average mutual fund manager is no better at picking stocks than the average nonprofessional. Dilution. a mutual fund puts you in the passenger seat of somebody else's car.
but what are the other sources of investment for the common man? Mutual Fund is the ready answer.2 to Rs. introduction of a nationwide screen-based trading. RESEARCH METHOLOGY Type of Research – Size of sample: Area of research study: Sampling procedure: Exploratory Research 100 respondents Bareilly Convenient sampling 35 . it is no longer attractive. To know the customer awareness about ULIPs and Mutual Funds." Objectives: Primary objectives: People awareness of charge FMC in both ULIP and Mutual funds Compare of investment in ULIP plans with Mutual Funds Secondary objectives: To study the investment patterns of the consumer in Financial Products. Viewed in this sense globally India is one of the best markets for Mutual Fund Business. dematerialization of securities. shortening of settlement cycle.around 300 million. formation of Clearing Corporation of India and demutualization of stock exchanges have marked a new era in the functioning of the capital market. At best a part can be saved in bank deposits. but with the falling rate of interest offered by Banks on Deposits. This is the reason that foreign companies compete with one another in setting up insurance and mutual fund business units in India. ban on deferral products. sophisticated risk-management techniques. so also for Insurance business. derivative trading. establishment of market regulator [SEBI]. The changes such as abolition of controller of capital issues. The sheer magnitude of the population of educated white collar employees provides unlimited scope for development of Mutual Fund Business in India. electronic trading. operational and regulatory front over a period of time.10 Lakhs today. The Indian capital market has witnessed some significant reforms on the structural. Investments in Banks are liquid and safe. rolling settlement. A typical Indian middle class family can have liquid savings ranging from Rs.
0 20.0 100.0 Valid journal refrence group television newspaper broker influencer Total Frequency 4 20 4 2 65 5 100 Percent 4.0 68.0 30.0 4.0 20. Web Sites Analysis: Helps u in making investment decisions Cumulative Percent 4.0 65.0 6.0 30.0 4.0 which company is best among life insurance companies Missing System Cumulative Percent 22.0 Valid Hdfc Aviva Icici Bajaj Frequency 22 10 30 6 Percent 22.0 38.0 100.0 Valid married Single Total Frequency 62 38 100 Percent 62.0 5.0 30.0 Valid Percent 4.0 24.METHOD FOR DATA COLLECTION Primary Data: Procedure of data collection: Survey Tools for data collection: Questionnaire Secondary Data: Information Brochures.0 5.0 32.0 100.0 28.0 2.0 10.0 38.0 100.0 2.0 6.0 10.0 Valid Percent 22.0 36 .0 Valid Percent 62.0 62.0 100.0 65.0 95.0 where do u generaly investur money Frequency Percent 100 100.0 marital status Cumulative Percent 62.0 100.
0 100.0 25.0 42.0 Are you aware about Mutual Funds? Cumulative Percent 78.0 100.Birla tata aig Total 20 12 100 20.0 100.0 Are you aware about ULIP plans of life insurance companies? Cumulative Percent 58.0 Valid Percent 15.0 Valid Yes No Total Frequency 78 22 100 Percent 78.0 100.0 100.0 40.0 35.0 37.0 Valid Percent 78.0 Do you like to invest your funds in same company again? Cumulative Percent 15.0 100.0 100.0 60.0 22.0 100.0 Valid Yes No Total Frequency 63 37 100 Percent 63.0 Valid Yes No Total Frequency 58 42 100 Percent 58.0 42.0 100.0 Valid Percent 58.0 Valid Percent 63.0 100.0 40.0 100.0 37 .0 Valid always sometimes Often Never Total Frequency 15 20 25 40 100 Percent 15.0 88.0 100.0 Have you ever invested your funds in ULIP? Cumulative Percent 63.0 12.0 25.0 20.0 37.0 100.0 100.0 100.0 12.0 20.0 20.0 22.
0 Valid Percent 69.0 31.0 38 .0 100.Have you ever invested your funds in Mutual Funds? Cumulative Percent 69.0 31.0 Do you know FMC is charged under mutual funds? Cumulative Percent 16.0 Are you aware of the charge FMC? Valid Yes No Total Frequency 23 77 100 Percent 23.0 Cumulative Percent 23.0 77.0 Valid Yes No Total Frequency 16 84 100 Percent 16.0 100.0 100.0 Valid Yes No Total Frequency 69 31 100 Percent 69.0 84.0 84.0 100.0 100.0 100.0 Valid Percent 23.0 100.0 Valid Percent 16.0 77.0 100.0 100.
helps u in making investment decisions journal refrence group television newspaper broker influencer 39 .
marital status married single 40 .
which company is best among life insurance companies hdfc aviva icici bajaj birla tata aig 41 .
Do you like to invest your funds in same company again? always sometimes often never 42 .
Are you aware about ULIP plans of life insurance companies? yes no 43 .
Are you aware about Mutual Funds? yes no 44 .
Have you ever invested your funds in ULIP? yes no 45 .
Have you ever invested your funds in Mutual Funds? yes no 46 .
Are you aware of the charge FMC? yes no 47 .
Do you know FMC is charged under mutual funds? yes no marital status * Have you ever invested your funds in ULIP? Crosstabulation Count Have you ever invested your funds in ULIP? yes marital status Total married single 39 24 63 no 23 14 37 Total yes 62 38 100 Null Hypothesis: There is no relationship between marital status and investment in ULIPS 48 .
is greater than 0.001 df 1 1 1 a Computed only for a 2x2 table b 0 cells (. Hence.980 1. (1-sided) Pearson Chi-Square Continuity Correction(a) Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association N of Valid Cases Value .980 1.5.000 .000 . (2-sided) .576 Exact Sig. there is no significant relationship between marital status and investment in ULIPS. Sig. Bar Chart Have you ever invested your funds in ULIP? yes no 40 30 Count 20 10 0 married single marital status 49 .000 .0%) have expected count less than 5. Sig. asym.06. Since.001 100 1 . The minimum expected count is 14. (2-sided) Exact Sig.001(b) . therefore. hypothesis is rejected.980 .Chi-Square Tests Asymp.
marital status * Have you ever invested your funds in Mutual Funds? Cross tabulation Count Have you ever invested your funds in Mutual Funds? Yes marital status Total married single 45 24 69 no 17 14 31 Total yes 62 38 100 Null Hypothesis: There is no relationship between marital status and investment in MUTUAL FUNDS Chi-Square Tests Asymp.444 . Therefore. After marriage it is seen person becomes more concern about investment of money and thus they try to invest in various scheme.968 1 .221 Exact Sig. Sig. The minimum expected count is 11.323 . asymp.325 .78. Since.978(b) .968 df 1 1 1 N of Valid Cases 100 a Computed only for a 2x2 table b 0 cells (.0%) have expected count less than 5. Sig. It is seen still a num of persons try to avoid investment in insurance 50 .587 . (2-sided) Exact Sig. (1-sided) Pearson Chi-Square Continuity Correction(a) Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association Value . is less than 0.325 . null hypothesis rejected. (2-sided) . there is a relationship between marital status and investment in mutual funds.376 .5 hence.
Bar Chart Have you ever invested your funds in Mutual Funds? yes no 50 40 Count 30 20 10 0 married single marital status 51 .
Most of the market is still unaware about the ULIP plans and hence by making proper promotional strategy companies can increase there sales. RECOMMENDATIONS Variety-based Positioning This type of positioning is based on varieties in products and services rather than customer segments. There was lack of time and resources that prevented from carrying out an in depth study. hence the responses of just 100 respondents does not imply for the complete population. 4. 2. The sample size is very less. Hurried filling of the questionnaire.) which will differentiate them from other companies 52 . HDFCSLIC can provide certain distinct services to its customers (such as: providing the information to the clients about there policies over the internet etc. ULIP plans are beneficial from the long term perspective whereas customer should invest in mutual funds if he wants quick returns. Misunderstanding of the concept. In the insurance industry too. it is possible to achieve a unique position by focusing on certain category of products. The findings of the survey are based on the subjective opinion of the respondents and there is no way of assessing truth of the statements. 3.LIMITATIONS 1. There is some respondent’s bias which cannot be removed. some amount of error exists in the data filling process because of the following reasons: Influence of others. It is a sensible strategy for those companies who have distinctive advantages or strengths in offering certain products and services. 5. Lastly. CONCLUSION The ULIP plans of HDFC SLIC are very competitive and have an edge over the plans of other companies as they provide higher returns to there customers.
The needs of HNIs would be quite different from those of a general consumer and would require an entirely different marketing mix right from the type of products offered and the way they are distributed. However. Needs-based Positioning This is based on the differing needs of different groups of consumers. An example would be a life insurance company that focuses only on High Net-worth Individuals (HNIs). in India most of the life insurance companies have a wide variety of products tailored for different customer needs and there is no company focusing on a particular customer need. This can be done successfully if a company has unique strengths to service a group of customer needs better than others The insurance needs of customers vary significantly for different groups of customers. to the promotion methods employed 53 .
Factors that influence your investment decisions in a particular company: Rating response 1 2 3 4 5 High Reputation Good CRM Good Promotion Relationship with agent Rate of return Life insurance cover Attractive schemes Tax benefits Variety of products Better service 54 . Sources that helps you in making the investment decisions: • Financial journal / business magazines • Reference groups • Television • General / business newspapers • Brokers / agents / professional consultant • Word of mouth/ influencer 2.Annexure Questionnaire COMPARATIVE ANALYSIS OF ULIP’S OF MAJOR COMPANIES AND WITH MUTUAL FUND IN BAREILLY REGION 1.
Pre sales communications 3. Do you like to invest your funds in same company again? Opinion Always Sometimes Often Seldom Never Total Response Percentage 55 . Where do you generally like to invest your money? Rating response 1 2 3 insurance Stock Market Mutual fund Bank / Fixed Deposits / Post Office savings Others (Real estate.) 4. According to you who among the following Life insurance companies is best? • • • • • • HDFC STANDARD LIFE AVIVA LIFE INSURANCE ICICI PRUDENTIAL BAJAJ ALLIANZ BIRLA SUN LIFE TATA AIG 4 5 5. Gold etc.
Are you aware about ULIP plans of life insurance companies? Opinion Yes No Total Response Percentage 7. Have you ever invested your funds in ULIP? Opinion Yes No Total ResponsePercentage 9. (a) Where u would like to reinvest your money ULIP or Mutual Funds? (b) Why? 11. Are you aware about Mutual Funds? Opinion Yes No Total ResponsePercentage 8. Are you aware of the charge FMC? 56 . Have you ever invested your funds in Mutual Funds? Opinion Yes No Total ResponsePercentage 10.6.
Opinion Yes No Total ResponsePercentage 12. Do you know FMC is charged under mutual funds? Opinion Yes No Total ResponsePercentage BIBLIOGRAPHY:- 57 .
• Susan.com/mf/glossary.amfiindia.com http://www. IV.investopedia. 27-45. S. Vol..dspml.asp http://news.valueresearchonline.com/ http://www.mutualfundsindia.com http://www.hdfcsl.moneycontrol. pp.asp http://www. Websites: • • • • • • • • http://www. (2006).com 58 .economictimes. K.com/resourcecentre.com/university/mutualfunds/default.php http://www.com http://www. “compensation practices for distribution of mutual funds” Journal of Investment Compliance. Issue 4.