PROJECT SYNOPSIS

PROJECT DETAILS:
Title: “A study On Return analysis and Performance of selected Debt fund with special
reference to Aditya Birla Sun Life”
Submitted By: Manas Pratim Kachari
MBA 3rd Semester
Roll No: 91/21

INTRODUCTION
About Industry
(i) Brief history: Birla Sun Life Insurance Company Limited (BSLI) is a joint venture
between the Aditya Birla Group and Sun Life Financial Inc., a leading international financial
services organization.The local knowledge of the Aditya Birla Group combined with the
expertise of Sun Life Financial Inc., offers a formidable value proposition to customers. Sun
Life Financial and its partners today have operations in key markets worldwide, including
India, Canada, the United States, the United Kingdom, Hong Kong, Philippines, Japan,
Indonesia, China and Bermuda.

It was the first player in the industry to sell its policies through the Bank assurance route and
through the internet.It was also the first private Sector player to introduce a pure term plan in
the Indian market. This was supported by sales practices, which brought a degree of
transparency that was entirely new to the market.

Aditya Birla Group and currently in charge of BSLI expressed, “The Birla Sun Life Insurance
business distribution network is national in nature covering more than 1000 points across the
country. We have made our entry in several tier I and tier II towns. It is therefore very
important for the brand to connect at the grass root level and create trust.They believe that
our association with Kapil Dev as our brand ambassador will help us create this connects in a
shorter period of time. We therefore now have two strong connects – our parent brand Birla
and our brand. On 26 November 2006, Birla Sun Life hosted the annual golf tournament at
the Chembur Golf Club in Mumbai where Kapil Dev participated.

(ii) Growth: Private life insurer Aditya Birla Sun Life Insurance saw a 10 percent year-on-
year growth in individual premiums in May 2020 despite the coronavirus lockdown slowing
down the industry. In an interaction with Money control, Kamlesh Rao, MD and CEO,
Aditya Birla Sun Life Insurance, said the company wrote Rs 100 crore of individual business
in May 2020 even as the industry de-grew by 30 percent.

The coronavirus outbreak and the subsequent lockdown from March 25 led to a sharp slump
in new policy sales for life insurers. This is because field agents were no longer able to visit
customer homes to sell products while bank branches had a drop in visitor numbers.

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Banks and agents are the two largest distribution channels for the insurance industry,
especially for life insurers.

(iii) Prospects: The company offers a complete range of protection solutions to help secure
your family’s future and provide financial support for your child’s education, wealth with
protection solutions, health and wellness solutions, retirement solutions, and savings with
protection solutions to help you stay financially secure in the future with small disciplined
savings at regular intervals. ABSLI puts people’s need first and aims to protect what is dear
to the customer, with assurance. While, Life Insurance cannot prevent risk, it can compensate
financial losses arising from risk. 

Aditya Birla Capital Limited (ABCL) is the financial services platform of the Aditya Birla
Group. With a strong presence across the life insurance, asset management, private equity,
corporate lending, structured finance, project finance, general insurance broking, wealth
management, equity, currency and commodity broking, online personal finance management,
housing finance, pension fund management, and health insurance business, ABCL is
committed to serving the end-to-end financial services needs of its retail and corporate
customers. Anchored by more than 17,000 employees, ABCL has a nationwide reach and
more than 200,000 agents / channel partners.

Company Profile

(i) Inception: Birla Sun Life Asset Management Company was established in 1994 as a joint
venture between the Aditya Birla Group and the Sun Life Financial of Canada where the
former owns 51% and the rest by latter which is a leading international financial
services organization providing a diverse range of wealth accumulation, protection products,
and services to individuals and corporate customers.
Aditya Birla Financial Services Group (ABFSG) is the umbrella brand for all the financial
services business of The Aditya Birla Group. ABFSG ranks among the top five fund
managers in India (including LIC) with an AUM of around Rs 3 trillion by 2021. The
company provides life insurance, asset management, lending (excluding Housing), housing
finance, equity & commodity broking, wealth management and distribution, online money
management portal Aditya Birla Money My Universe, general insurance advisory and private
equity and health insurance businesses, for retail and corporate customers. In FY 2013–14,
ABFSG reported consolidated revenue from these businesses at just under ₹70 billion and
profits of about ₹7.5 billion. The company has 14,000 employees and over
6 million customers, with 1,500 points of presence and about 130,000 agents/channel
partners.
Sun Life Financial, Inc. operates in India through Aditya Birla Sun Life Asset Management.
Established in 1994, Birla Sun Life Asset Management Company Ltd. (BSLAMC),
investment manager for Birla Sun Life mutual fund, has been a joint venture between
the Aditya Birla Group and Sun Life Financial Inc. since 1999. Birla Sun Life Mutual Fund

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was the fourth largest Fund house in India based on domestic average assets under
management as published by AMFI for the quarter ended 31 March 2014.
On 20 April 2021, Aditya Birla Sun Life Asset management company filed Draft Red
Herring Prospectus (DRHP) to the Securities and Exchange Board of India in order to raise
funds through an initial public offering (IPO).
Aditya Birla Sun Life Asset management company's IPO subscriptions to open on 29
September 2021 and close on 1 October 2021 at a price band of Rs 695 - Rs 712 per share.

(ii) Nature:

Integrity: Acting and taking decisions in a manner that is fair and honest. Following the
highest standards of professionalism and being recognised for doing so. Integrity for us
means not only financial and intellectual integrity, but encompasses all other forms as are
generally understood.
Commitment: On the foundation of Integrity, doing all that is needed to deliver value to all
stakeholders. In the process, being accountable for our own actions and decisions, those of
our team and those on the part of the organisation for which we are responsible.
Passion: An energetic, intuitive zeal that arises from emotional engagement with the
organisation that makes work joyful and inspires each one to give his or her best. A
voluntary, spontaneous and relentless pursuit of goals and objectives with the highest level of
energy and enthusiasm.
Seamlessness: Thinking and working together across functional groups, hierarchies,
businesses and geographies. Leveraging diverse competencies and perspectives to garner the
benefits of synergy while promoting organisational unity through sharing and collaborative
efforts.
Speed: Responding to internal and external customers with a sense of urgency. Continuously
striving to finish before deadlines and choosing the best rhythm to optimise organizational
efficiencies.
(iii): Board of Directors:

 Non-Excecutive Director: Kumar Mangalam Birla

 Associate Director: Ajay Srinivasan
 Managing Director & Chief Excecutive Officer: A. Balasubramanian
 Non Excecutive Director: Sandeep Asthana
 Independent Director: Bobby Parikh
 Independent Director: Navin Puri
 Independent Director: Bharat Patel
 Independent Director: Alka Marezban Bharucha
 Independent Director: Harish Engineer
 Non- Excecutive Director: Colm Joshep Freyne

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(iv) Mission and Vision Starement:
Mission:

 To consistently pursue investor's wealth optimization by:

 Achieving superior and consistent investment results.
 Creating a conducive environment to hone and retain talent.
 Providing customer delight.
 Institutionalizing system-approach in all aspects of functioning.
 Upholding highest standards of ethical values at all times.

Vision:

 To be a leader and role model in a broad based and integrated financial services
business.

About Subject

Return Analysis And Performance Of Debt Fund

A debt fund is a Mutual Fund scheme that invests in fixed income instruments, such as
Corporate and Government Bonds, corporate debt securities, and money market instruments
etc. that offer capital appreciation. Debt funds are also referred to as Fixed Income Funds or
Bond Funds. A debt mutual fund invests in a mix of debt investments such as treasury bills,
government securities (G-Secs), corporate bonds and other money market instruments of
varying maturities. Debt funds are less volatile and hence, are less risky than equity funds.
Debt mutual funds seek to provide investors capital preservation and regular income. There
are various types and categories of debt funds available for catering to different time horizon
as well as liquidity preference of investors.
Buying a debt instrument is similar to giving a loan to the issuing entity. A debt fund invests
in fixed-interest generating securities like corporate bonds, government securities, treasury
bills, commercial paper and other money market instruments. The basic reason behind
investing in debt fund is to earn interest income and capital appreciation. The issuer pre-
decides the interest rate you will earn as well as maturity period. That’s why they are called
‘fixed income’ securities because you know what you’re going to get out of them. Debt funds
invest in different securities, based on their credit ratings. A security’s credit rating signifies
whether the issuer will default in disbursing the returns they promised. The fund manager of a
debt fund ensures that he invests in high credit quality instruments. A higher credit rating
means that the entity is more likely to pay interest on the debt security regularly as well as
pay back the principal amount upon maturity.

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This is why debt fund which invest in higher-rated securities will be less volatile, compared
to low-rated securities. Additionally, the maturity also depends on the investment strategy of
the fund manager and the overall interest rate regime in the economy. A falling interest rate
regime encourages the manager to invest in long-term securities. Conversely, a rising interest
rate regime encourages him to invest in short-term securities.

RESEARCH METHODOLOGY

Title of the Study:

“A Study on Return Analysis and Performance of Debt fund with Special Reference
to Aditya Birla Sun Life Insurance”.
Statement of the problem:
This project is basically conducted to understand and analyse the various types of risk
and return and to check the performance of debt fund of Aditya Birla Sun Life Insurance Co.
Ltd.
Objective of the study:

 To Calculate and analyse the risk of selected 5 Debt funds of ABSL.

 To Calculate and analyse the return of selected 5 Debt funds of ABSL.
 To analyse the overall performance of debt fund of this particular company.

Scope of the study:

The study will beneficial for the organization as it will provide information of the risk
and return associated with debt fund in today’s world. Moreover it will also help to minimise
the risk so that more investors attracted to invest in debt fund. This project report may help
the company to make further planning and strategy.
The research was carried on in Guwahati. The area where the research is carried out is
at ABC branch of Aditya Birla Sun ife Asset Management Company. The survey on the
project topic place is “The Risk And Return Analysis And Performance Of Debt Fund With
Special Reference to Aditya Birla Sun Life Asset Management Co. Ltd.” by interacting with
the investors and employees.

Types of Research:
Analytical Research – The Analytical research is a specific type of research that involves
critical thinking skills and the evaluation of facts and information relative to the research
being conducted.

Review of literature:

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Dr Surender Kumar gupta and Dr Sandeep Bansal (july 2012) have done a comparative
study on debt scheme of mutual fund of Reliance and Birla Sun life.
Yashasvi R.Rajpara have done a study on performance of selected debt mutual funds in
India. The study is done to know which scheme gives high return in india. To examine the
risk and return component among the mutual fund.
Dr. Ajay Kr. Patel, Associate Professor, GL Bajaj Institute Of Management and
Research, Greater Noida, Ms. Swati Sharma, Assistant Professor, JIMS Engineering
Management and Technical Campus, Greater Noida conducted a research on risk return
profile of mutual funds in India. This paper examines the performance of selected mutual
fund 24 schemes. The objectives of this project report was to understand the different mutual
fund performance in terms of risk return mix and the performance of mutual funds of
different investment domain. The study was experimental in nature with secondary data. The
basic findings of this research was to find out the data of NAV of 6 Mutual Funds i.e., Nifty-
ETF, Kotak Sensex- ETF, TATA balance and DSP balanced, HDFC MIP Long Term and
Reliance MIP., are collected for 3years range are analysed using statistical tools calculated
with the help of Excel spreadsheets.
Dr. Surender Kumar Gupta and Dr. Sandeep Bansal (July 2012), have done a
Comparative Study on Debt Scheme of Mutual Fund of Reliance and Birla Sunlife. This
study provides an overview of the performance of debt schemes of mutual fund of reliance
and Birla Sunlife with the help of Sharpe index after calculating Net Asset value and
Standard Deviation. This study reveals that returns on Debt Schemes are close to benchmark
return (Crisil composite Debt Fund Index: 4.34%) and Risk Free Return: 6% (average
adjusted for last five year).
Prof. Kalpesh P Prajapati and Prof. Mahesh K Patel (July 2012), have done a
Comparative Study On Performance Evaluation of Mutual Fund Schemes Of Indian
Companies. In this paper the performance evaluation of Indian mutual funds is carried out
through relative performance index, risk return analysis, Treynor’s ratio, Sharpe’s ratio. The
data used is daily closing NAVs. The source of data is website of Association of Mutual
Funds in India (AMFI). The results of performance measures suggest that most of the mutual
fund have given positive return during 2007 to 2011.

SOURCES OF DATA:
Secondary Data:
Secondary data are those data which are already available. In this study, secondary
data are collected from the Internet and Factsheet.

Tools of data collection:

The various tools that are being used for collection of data are as follows – Secondary
data

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  Organizational document (Factsheet)
 EMPOWER (ABSL monthly publication)
 Websites of ABSL: mutualfund.adityabirlacapital.com
 AMFI Websites.

Plan of Analysis:
The data has been presented with the help of table and graphical method like pie chart
and diagrams for convenience in understanding the result and their analysis. The findings are
then written in simple manner and on the basis of which suggestions and conclusion are
drawn.
Reference Period:
The study was conducted within the time frame of 2 months.

Limitations of the study:

 There was shortage of time to analyse the debt fund as 2 months is not enough to
completely study about such a huge topic.
 The data has been analysed with limited data collected from the fact sheet of last five
years.
 The project work is limited to only selected Debt funds.

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