MAX India Limited

A Multi Business Corporation Focused on Service Oriented Business - Life Insurance - Healthcare Investments of Rs. 350 Crore in Life Insurance Business Top 200 Most Valuable Companies in India (Business India ,Oct. 2005) Business World Magazines Survey, "Great Workplaces In India". 120 Companies that took part in the survey, We are in 20th Position. Partnership with the most respected names in the world..  Healthcare Services  Life Insurance  Communication Services  IT Enabled Services  Mobile Telephone Services : Harvard Medical Institute, USA : New York Life International, USA : Lockheed Martin Global Telecommunications, USA : Mind Crossing Inc. , USA : Hutchison Telecommunications ltd. , Hong Kong
An ISO 9001 : 2000 Certified company

NEW YORK LIFE

Insuring Millions of Lives all over the Globe, for over 162 Years Providing Insurance Solutions Since 1845 Strongly Rooted in the Commitment of .. * Financial Strength, * Integrity * Humanity Has Never Failed in its Commitment to Deliver to its Policyholders despite having Hit by World Wars, Famine, Drought and even the Great Depression Ranked 68 on Fortune 100, ahead of Coca Cola , Microsoft & McDonalds Ranked 2nd in Fortunes Global list of Most Admired Life Insurance Companies Assets under Management US $ 201 Billion (Rs. 8,90,456 Crores) Annual Revenues US $ 25 Billion Annual Surplus & Reserves US $ 11 Billion (Rs. 50,000 Crores)

FORTUNE
2006 : GLOBAL MOST ADMIRED COMPANIES INSURANCE : LIFE & HEALTH
Industry Rank 1). 2). 3). 4). 5). 6). 7). 8). 9). 10). 11). 12). 13). 14). 15). 16). Company Northwestern Mutual New York Life Prudential Financial TIAA-CREF ING Group MetLife AXA Aegon Meiji Yasuda Life Insurance Dai-ichi Mutual Life Nippon Life Insurance Sumitomo Life Insurance Prudential PLC Aviva CNP Assurances Assicurazioni Generali Overall Score 7.38 7.25 7.06 6.62 6.27 6.24 6.18 5.67 5.57 5.52 5.51 5.20 5.17 5.02 4.82 4.75 2006 Score 7.23 7.05 6.81 5.90 6.32 6.46 6.03 5.80 4.62 4.65 4.87 4.82 4.79 4.64 4.50 4.67 2005 Rank 1 2 3 -5 4 6 7 14 13 11 16 8 9 -15

From The March 8,2006 Issue

An ISO 9001: 2000 Certified Company

International Presence
North America
All 50 states

Asia Pacific
JVs India Indonesia Thailand China The Republic of South Africa Cost-Ricca Wholly Owned Subsidiaries Hong Kong Philippines Taiwan South Korea Representative offices Vietnam

Latin America
Argentina (a JV) Mexico

Global Presence

The Company We Keep

New York Life, has insured the lives of as many as 9 US Presidents.
Richard Nixon (1913-1994) Franklin D. Roosevelt (1882-1945) Herbert Hoover (1874-1964) Calvin Coolidge (1872-1933) Warren Harding (1865-1923) Theodore Roosevelt (1865-1923) William McKinley (1843-1901) Benjamin Harrison (1833-1901) James Garfield (1831-1881)

Max New York Life

A Partnership between Max India Limited & New York Life International Built on the Foundation of
    Financial Strength & Integrity Solidity & Knowledge Excellence & Caring Honesty & Team-Work

Vision : To Be The Most Admired Life Insurance Company in India Wide Distribution Network with 105 Offices across 75 Cities in India Market Leader in ULIP & L.P.P Policies Max New York Life has sold over 11,75,000 Individual Policies Sum Assured of over Rs. 29,146 Crores Rs. 764 Crores Rs. 995 Crores Rs. 575 Crores Rs. 335 Crores Rs. 11 Crores
An ISO 9001 : 2000 Certified Company

Annual First Year Premium Total Income Total Reserves Total Expense Total Claims in 2005 -

THE CONTROL STRUCTURE

Government of India
[Various Ministries]

Defence

Home

FINANCE

Railways

Health

SEBI
(Shares & Equities) [Private & Public Sector]

IRDA
(Autonomous Body Responsible to The Parliament) [Insurance Sector]

RBI
[ Banking Sector]

Life Insurance

General Insurance

LIC

ICICI PRUDENTIAL

BAJAJ ALLIANZ

MAX NEW YORK LIFE

BIRLA SUNLIFE

OMKOTAK MAHINDRA

ETC.

An ISO 9001 : 2000 Certified Company

Our Investments
We Invest only in Government Securities, Treasury Bills, AAA & AA+ related Securities. MNYL Invests only in Safe & Secure Debt Investments.
State & Central Government Securities. (Rating: Sovereign) Not less than 50% Infrastructure and Social Sector. Not less than 15%

Government Securities
Rating: Sovereign

71%

Infrastructure and Social Sector

Rating: AAA/ AA+

18%

Others governed by exposure norms (Investments allowed in the Stock Market) Not exceeding 35% Nationalized Bank / Corporate Paper / Mutual Funds Rating:AAA
An ISO 9001 : 2000 Certified Company

11%

ROLE OF INSURANCE REGULATORY & DEVELOPMENT AUTHORITY (IRDA)

 Qualifications for Companies to be Registered as Insurer Under : IRDA
* Detailed Scrutiny of The History,Financial Strength,Infrastructure,Performance of each Company * Qualification Criteria's laid down for entering into Insurance Sector * License Fees = Rs. 100 Crore to be deposited * Joint Venture = Indian Partner (74%) and Foreign Partner (26%)

     

Staff Appointment :
* IRDA Clearance must for The Appointment of CEO/MD,Whose Past Performance,Reputation Checked * Appointment & Termination of Actuaries

Product :
* Design, Modification etc. can be done only with IRDA Approval * Capable of Running even If Company Dissolved / Taken over by Other Company

Investment Norms :
* >=71% in Govt. Securities, = 18% in Infrastructure, <=11% in Capital Market,ICRA & CRISIL Rated Companies. * Solvency Margin of Rs. 50 Crores + 0.3% of Collections to be Deposited in Government

Agency Criteria :
* 100 Hrs. Training Compulsory for Every Agent * Agency License given only after passing The IRDA exam. Renewal After 3 Years.

Reports :
* All Reports to be submitted to IRDA on Quarterly Basis. Soon Converted to Monthly & Weekly if Required.

Vigilance :
* Can Appoint IRDA Official in Board of Directors. * Can Take Over The Management. * Can Conduct Surprise Checks Anytime.

Re Insurance :
* Every Company must be Re Insured with SwissRe. Risks above Rs. 10 Lacs Auto Transferred to SwissRe.
An ISO 9001 : 2000 Certified Company

Tax Benefits
Tax Exempt is available on the Premium Paid
u/s 80(c) Limit Rs. 1 Lakh

Bonus, Sum Insured and Cash Value is fully Tax Exempt - u/s 10(10D) Under Business Insurance (Key Person / Partnership / Emp-Employee / CEIP / HUF / MWPA) all Premiums Paid exempt - u/s 37(1) D.
An ISO 9001 : 2000 Certified Company

Human Life Value

Biggest Assets: Ability to earn a living
Age 25 years Retirement age 60 years Annual Income Rs. 5 lacs Total earnings - Rs. 1.75 crores are insured to their full replacement value

Your

and

ARE YOU??
You're worth a fortune to your loved ones, if you live, but what if something unexpected happens to you? How much life insurance is enough?

Liability Curve
HOUSING KIDS MARRIAGE CHILDRENS EDUCATION CHILDRENS MARRIAGE RETIREMENT COLLEGE BIRTH

LIABILITIES

AGE

What are Your Priorities?

 Capital Accumulation  Family Income Protection  Educational Needs  Retirement Income

Investment Pyramid
Insurance Needs Calculator: Two quick estimators
 6-8 times your
Annual Salary  5 times salary + debt + mortgage + college funding
Speculative Securities SPECULATIVE INCOME INVESTMENTS Shares and Bonds Real Estate investments GROWTH INVESTMENTS Pension Plans Deposits, Home LONG TERM ACCUMULATIONS Emergency Funds3-6 months income Bank Savings SHORT TERM SAVING

Home and Life Insurance + ULIP (15 %) BASIC SECURITY NEEDS

Prioritize Your Biggest Assets

SAVINGS
INVESTMENTS

INVESTMENTS

SAVINGS
INSURANCE

INSURANCE
WHERE DOES THE MONEY GO?

During Lifetime:

77% + Living Expenses and Taxes 15%

15% + Savings, Investments and Speculation +

8% = Insurance Security and Protection Plans 85% Of total net worth (Insurance) =

100%

Total Earnings
100%

At Death:

Of total net worth (Savings,etc.)

Total Net Worth

THINGS YOU NEED TO CHECK BEFORE YOU BUY A LIFE INSURANCE PLAN
ANY PLAN OF LIFE INSURANCE SHOULD BE ABLE TO OFFER YOU FLEXIBILITY. NEVER BUY A PLAN WITH FIXED TENURE. THE ABILITY TO DRIVE YOUR PLAN THE WAY YOU WANT TO DRIVE IT SHOULD BE INHERENT IN YOUR POLICY. THERE SHOULD BE ENOUGH FLEXIBILITY IN THE PLAN FOR YOU TO BE ABLE TO INCREASE YOUR INSURANCE OR STAGNATE THE SAME WHEN YOU WANT. TODAY YOU ARE FINANCIALLY SOUND WHAT IF IT DOESNT REMAIN THE SAME OVER A PERIOD OF 10 TO 15 YEARS THE PLAN SHOULD BE ABLE TO SUSTAIN THE PREMIUM. ANY PLAN THAT YOU BUY SHOULD HAVE THE INHERENT QUALITY TO BEAT INFLATION i.e. THE COVER OF YOUR PLAN SHOULD KEEP ON INCREASING AS PER VALUE OF MONEY. THE PLAN SHOULD BE SUCH THAT IN CASE OF ANY EMERGENCY OR OPPORTUNITY YOU SHOULD BE ABLE TO WITHDRAW MONEY FROM YOUR PLAN. THE MOST IMPORTANT BEFORE BUYING A POLICY CHECK THE QUALITY & BACKGROUND OF YOUR ADVISOR. FINALLY ANY LIFE INSURANCE POLICY SHOULD WORK UNDER 3 CONDITIONS,

MONEY IF YOU LIVE , MONEY IF YOU DIE, MONEY FOR ANY OPPORTUNITIES OR EMERGENCIES.

INSURANCE
Why Do You Need Insurance?

OR

INVESTMENT ???

Investment thru Insurance

Premium

Maturity at What Age

Why To Invest?
* To Beat Inflation Bank P.O Equity Return 3.5% 7.5% 20% Current Inflation 9.19% 9.19% 9.19%

* Today Your Money Will Doubled After 14 Yrs. + You Have to Invest Strong Amount At a Time. (As Per Rule of 72) * Rule of 72 = Inflation : % / 72 , Money Doubled : 72 / % * To Meet My Emergency Cash Needs. (Short Term Duration) * To Maintain Standard of Living at Retirement Time.

An ISO 9001: 2000 Certified Company

LIFES LIABILITY
Liability Graph :Kid 2 Marriage Retirement

I N C O M E

Kids Higher Edu. Donation Kid 1 Kid 2 Marriage Kid 1 Marriage

Car Own Home

AG E
Birth & Education

Liabilities are Fixed, Funds We have to Fix. Money Grows thru Investment or Savings ? It Is Better Late Than Never. Age Will Grow, Income We Have to Grow.
An ISO 9001: 2000 Certified Company

INFLATION ???
ITEM
Colgate Tooth Paste (100 gm) Hamam Soap Masala Dosa Petrol LPG Zodiac Shirts

1987
8.85 3.85 3.50 7.90 56.00 225.00

1997
18.90 7.85 14.90 25.00 137.00 510.00

2005
45.00 22.00 32.00 52.54 317.00 1200.00

2017
104.00 52.00 224.00 259.00 830.00 2620.00 Prices in Rs.

 Inflation Robs You of Your Purchasing Power :1,47,850 * We Pay More to Maintain the Same Standard of Living 68,480 31,720 14,690 * We Need to Save & Invest Today not Just To Maintain Our Current Standard of Living but also to achieve Our Goals

5 Years

15 Years

25 Years

35 Years

Current Monthly Expenditure Rs. 10,000 Assuming Inflation @ 9.19% p.a

WEALTH CREATION
Luxury or Necessity :  Cable TV Color TV Washing Machine Color Mobile with Camera Microwave Oven 2/4 Wheeler Long Term Wealth Creation Happens Only by Early & Regular Investment...
20.16%

14.47% 9.19% 5.50% 7.62%

Inflation

Bank FD

Gold

Co. FD

Equities

Source : RBI Report on Currency & Finance (2004-05)

Any Investment Decision Should Be Based on Ones Needs, Risk Appetite & Investment horizon Hence, The Decision to Invest in Equity Funds Should Be Part of a Well-Crafted Financial plan. It Could be a Good Idea to Invest Some Portion of Your Money in Equity based ULIP, In order to Help You Reach Your Goal of Creating Wealth over The long Term.
An ISO 9001: 2000 Certified Company

Table of Financial Needs & Goals

Financial Goals Amount Required (at
todays prices)

Years to Achieve Your Goals

Investment Horizon

Retirement Daughters Marriage Childrens Education Buying a Car

40 lakhs 10 lakhs 5 lakhs 3 lakhs

25 17 7-10 5

Long Term Long Term Medium Term Short Term

An ISO 9001: 2000 Certified Company

WHICH INVESTMENT IS APPROPRIATE?

 Debt : PPF, Post office scheme, Fixed Deposits, Debentures, Bonds, Income Funds  Equity : Individual Stocks, Growth Funds, Sectoral Funds  Banks: Bank Deposits, Liquid Funds OR  Unit Linked Investment Plan ULIP ( a mix all of the above )
A good investment is one that helps you maximize your total returns, net of taxes and inflation over the time period you invest for!
An ISO 9001: 2000 Certified Company

Equity Funds
Why Equity Funds?
All of us aspire for enough wealth to be able to finance at least some of our dreams. Giving our family the very best, educating our children, including our hobby that can our life more rewarding. One of the most chances of doing so is by investing wisely & regularly today. When one is investing for the long-term, one has to look at generating a return that is greater than inflation. For Ex., If you get a return of 11% from your investment and inflation is 9% then the real return you have made is only 2%.

Why Indian Equities?

Favorable Demographics - High Percentage of Young Population to Drive Spending. Poor Infrastructure Has to Improve from Present Situation. Cannot Get Worse. Globally Competitive Sectors & Companies All Implying Strong Sustainable Economic Growth Going Forward.

Equities As An Asset Class Has Given Higher Returns Over A Long Term. Around The World, Investors Speaks Only One Language .. Equity Based Unit Linked Investment Plan
An ISO 9001 : 2000 Certified Company

MUTUAL FUNDS
Are Mutual Funds Safe ???
One of The Public Limited Company Investors Company Company Cannot get Dissolve / Cant get Runaway Mutual Funds are not Just Equity Plan, but they are The Asset Allocation Funds In Mutual Funds as per IRDA Law, Money is Invested in a Spread. i.e. At Least In Minimum 15 to 35 Companies, Hence The Risk is minimized. A Mutual Fund pools the money of people with similar investment goals. The money in turn is invested in various securities depending upon the objectives of the mutual fund scheme, and the profits are shared among investors in proportion to their investments. M.F schemes are usually Open End (Open for Investment & Redemptions) or Closed End (With a Fixed Term) In Open End Schemes, Units Can be Purchased from or sold back to the fund at a Net Asset Value (NAV) based price on all business days. Mutual Funds are everyone. Around the World, Millions of investors invest in M.F because of their safety, Ease of Investing & Help you to achieve your financial goals.
An ISO 9001: 2000 Certified Company

FUNDS ALLOCATION
Asset Allocation Funds Sectorial Funds Power Chemical Pharmaceutical Telecommunication FMCG I.T Software Petroleum Banking G-Sec. Finance

Portfolio
Auto : Mahindra & Mahindra,TVS,Maruti Udyog Ltd,etc. * Software : Satyam Computer,TCS,Infosys,Wipro,etc. Banks : SBI,PNB,ICICI,UTI,BOB,IOB,etc. * Telecom : Bharti Televentures Ltd.,Tata Telecom,etc. Cement : Grasim Ind.,Gujarat Ambuja,etc. * Transportation : Shipping Corp. of India Ltd. Chemicals : Indian Petrochemicals,Guj. Alkalies,etc. * Travel : Balmer Lawrie Consumer Non-Durable : Asian Paints,Nerolac Paints,Tata Tea,Hindu.Lever Ltd.,etc. Consumer Durable : Voltas Ltd. * Unlisted Equity Holdings : India Info line,etc. Fertilizers : GSFC,Indo Gulf Fertilizers Ltd. * Warrants : Jindal Vijaynagar,Television Eighteen,etc. Finance : Sundaram Fin. Ltd.,Tata Inv. Corp. Ltd. Ferrous Metals : Tata Iron & Steel Co. Ltd,Jindal Steel & Power Co. Ltd. Industrial Capital Goods : Bharat Electronics Ltd.,BHEL,Bharat Earth Movers Ltd,.etc. Industrial Products : Finolex Cables Ltd.,BOC (I) Ltd.,etc. Media & Entertainment : NDTV,Deccan Chronicle Holdings Ltd.,etc. Oil : ONGC Petroleum : Reliance Ind. Ltd.,IBP Co. Ltd,.BPCL,etc. Pharmaceuticals : Sun Pharma.Cipla,Glaxo SmithKline,Dr.Reddys,Ranbaxy,etc. Power : Reliance Energy Ltd.,Tata Power Co. Ltd.,

An ISO 9001 : 2000 Certified Company

THE TOP MONEY MANAGERS OF THE 20th CENTURY

Rank
1st 2nd
3rd

Fund Manager
Warren Buffett Peter Lynch
John Templeton

Organisation
Berkshire Hathaway Fidelity Management & Research
Templeton Investment Counsel

4th 5th 6th 7th

8th

Graham & Dodd George Soros John Neff John Bogle

Michael Price

Security Analysis Soros Fund Management Vanguard Group Vanguard Group

Franklin Mutual Advisors

9th
10th

Julian Robertson
Mark Mobius

Tiger Management
Templeton Asset Management

Survey conducted by, The Carson Group, a leading global capital markets intelligence consulting firm

FRANKLIN TEMPLETON INVESTMENTS

FRANKLIN TEMPLETON
The Worlds Most admired Fund Managers Managing Your Fund. U.S Based Mutual Fund Company. Manage 415 Billion$ Asset ( Rs.17,50,000 Crore More than Indian Banking Industry) Global Presence 30 Countries. Worlds 3rd. Largest Independent Fund Management Company. In India, F.T is Managing Over Rs.20,000 Crore, 40 Offices in India & 1.5 Million$ Shareholder Accounts. Highest Share in Indian Market 10% Awarded Best Mutual Fund Company of The Year 2005. Cumulative Annualized Returns in Last 18 Years 20.16% Approx. Returns in Equity.

An ISO 9001: 2000 Certified Company

MNYLS Top 10 Tips

For Successful Investing
Invest Regularly The Power Of Rupee Cost Averaging
Lump Sum Investor Amount Units Invested (Rs) Bought 1,20,000 6000 --------------------1,20,000 20 6000 1,20,000 Regular Saver Amount Units * Invested (Rs) Bought 20,000 1000 20,000 1333 20,000 1538 20,000 2000 20,000 1000 20,000 1333 1,20,000 20 8204 1,64,080
Part 2

Ave. Unit Price (Rs) 1 20 2 15 3 13 4 10 5 20 6 15 Total Invested (Rs) Average Price Paid (Rs) Total No. of Units Bought Value of Investment After Six Years (Rs) Year

This Example Uses Assumed Figures & Is for Illustrative Purposes Only. * Fractional Units Ignored

An ISO 9001 : 2000 Certified Company

MNYLS Top 10 Tips

For Successful Investing
10.

Review Your Investments

Your investments need to adapt to changes in your circumstances, such as getting married, Having children or starting business. Its also a good idea to check that each of the funds in your portfolio is living up to your expectations. Talking to an Investment Advisor could help you decide whether you need to switch between funds.
CUMULATIVE RETURNS 1996 - 2004 30 LACS 25 LACS 20 LACS 15 LACS 10 LACS 05 LACS 00 JAN-96 97 98 99 00 01 02 03 04 05 Actively Managed Funds Sensex Total Invested

Source : Franklin Templeton Cumulative Returns from Jan-96 to Jan-05

An ISO 9001 : 2000 Certified Company

LIFE MAKER
Unit Linked Investment Plan
           100% Tax-Free Returns + 100% White Income. Option to Choose Death Benefits ( Level & Increasing ) The Facility to Change Death Benefit Option As per Your Need in Life. Premium Flexibility, You Can Pay Premium Any-Time In Whole Year after First 3 Years. After First 3 Years, Withdrawal Facility Any Time/Partial Surrender/Full Surrender. Facility To Pay Top-Ups. Only MNYL to give 1% Extra Bonus On Top-Ups. Persistency Unit on All Plans Available. i.e. If 10 Yr. Plan Is Taken Then At The Time of Maturity ...... Customer Gets X % From The Company (MNYL) As a Loyalty Benefit. Front End Charge of The Company We Do Not Participate in Customers Profits. Hence, We Charge Initially. The Facility to Increase or Decease Your Sum-Assured, Based on Your Family. Our Investment Process is Aimed at Delivering Consistently Strong Investment Performance & World Class Service. Our Investment Process Harnesses Our Global Reach & Local Expertise to Identify Investment Opportunities Most Suited to Your Needs.
An ISO 9001: 2000 Certified Company

DECIDE

Whether You Should Work For Money

OR

Should Money Work For You!!!

Life & Wealth Cycle Stage 4C Inflation Proof Returns Rule of 72 PREMIUM FLEXIBILITY - Increase & Decrease of Premium - Stop Premium - Extra Top-Ups - Any Time Premium PROTECTION - Death - Disease - Disability

LIFE MAKER
SAFETY - Mutual Fund Industry - IRDA - SEBI - Section 27 of Insurance Act 1938 EXPERIENCE - 162 Yrs. Of New York Life Intl. - 52 Yrs. Of Franklin Templeton - 22 Yrs. Of Max India Ltd. LIQUIDITY OF MONEY

TAX BENEFIT U/S 80 C ( 1 Lakh limit)

FUND ALLOCATION (Bench-Mark) - F.I.B.C.F - T.I.I.F

An ISO 9001: 2000 Certified Company

MNYL Growth Fund & Balance Fund

Govt. Securities 16% Corporate Bonds 11% Cash 14% Govt. Securities 30% Corporate Bonds 20%

Equities 33% Equities 59%

Cash 17%

MNYL Conservative Fund & Secure Fund

Govt. Securities 23% Corporate Bonds 15% Govt. Securities 62%

Cash 12% Cash 20%

Equities 0%

Equities 42%

Corporate Bonds 26%

INDIAN MUTUAL FUND INDUSTRY

303000

253000

203000

153000

103000

53000

3000 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2004 2006 Source: Mutual Fund Yearbook 2001 (AMFI)

Performance of PPF in Last 7 Years

1200% 1000% Interest rate 800% 600% 00% 200% 0% 2000 2001 2002 2003 Years 200 2005 2006 11 9.5 9 8 8
7.5 7.5

Performance of National Savings Certficate (NSC) in the last 7 years

14 12 10 8 6 4 2 0 11.5 9.5 9 8 8
7.5 7.5

Rate of Return in Percentage

2000

2001 2002

2003 2004 2005 Years

2006

Performance of Bank Deposits (F.D) in the past 5 years

12 Percentage Rate of Return 10 8 6 4 2 0 2000 2001 2002 2003 Years 2004 2005 2006 5.5 5.25
5.25 5.25

10

9.5 8

Performance of FT Bluechip Fund in the last 12 years

45 40 35 30 25 20 15 10 5 0 Rate of Return on Investment 39.91 27.03 19.54 17.97 Series1

1 year

3 years

5 years

since inception

Years

Performance of FT Prima Fund Since Inception

Percentage Rate of Return on Investments 80 60 40 20 0 Series1

1 year 56.88

3 years 62.77 Years

5 years 29.67

since inception 23.91

The Better The Equities Perform The More Your Investment Grows..
Top 5 Companies had a Growth of 32% in their Turnover in the Last Year Top 5 Companys Net Profit Increased by 35% in the Last Year