Beruflich Dokumente
Kultur Dokumente
A
PROJECT REPORT
ON
CONTENTS
ACKNOWLEDGEMENT
PREFACE
INTRODUCTION
Indian banking System
Profile of the Bank
PRODUCTS OFFERED BY THE BANK
Savings Account
ULIP (Unit Linked Insurance Plan)
Mutual Funds
SAVINGS ACCOUNT OFFERED BY DIFFERENT BANKS
ULIP AND MUTUAL FUNDS : A General Study
COMPARISON BETWEEN ULIP AND MUTUAL FUNDS
WHERE TO INVEST : ULIP OR MUTUAL FUNDS
MARKET SURVEY
Objective
Research Methodology
Findings
Recommendations
CONCLUSION
BIBLIOGRAPHY
ANNEXURE
ACKNOWLEDGEMENT
We wish to express our gratitude to Standard Chartered Banks management for giving us an
opportunity to be a part of their esteem organization and enhance our knowledge by granting
permission to do our summer training project under their guidance.
We are grateful to Mr. NITISH DIPANKAR (Team Leader), our guide, for his invaluable guidance
and cooperation during the course of the project. He provided us with his assistance and support
whenever needed that has been instrumental in completion of this project.
The learning during the project was immense & invaluable. Our work basically included the study of
various financial products of the bank and understanding the customer investing patterns. The
present report is an amalgamation of our thoughts and our efforts to study the present banking and
investment scenario and market potential for the sale of products like ULIP and Mutual Funds.
Further a detailed study has been done in order to suggest the customers where to invest according to
their identified needs.
We are also thankful to DR. GAURAV AGGARWAL (Faculty, FSM), our internal faculty guide
who helped us as and when required with his big reservoir of experience and knowledge. If the ideas
do make the difference, than this project has gained maximum from his experience. He has in fact
given the project is form.
Last but not the least we are grateful to all the staff members of Standard Chartered Bank for their
kind cooperation and help during the course of our project.
FORE SCHOOL OF MANAGEMENT
SHANTA KUMARI
VARUN LALL
PREFACE
Someone has rightly said that practical knowledge is far better than classroom
teaching. During the course of this project we actually realized how true it is when
we analyzed the Banking Industry and the real world of Financial Product
marketing. This project enabled us to know about the consumers needs and
competitors activities in the real world of Banking.
The subject of our study is Where to invest-ULIP or Mutual Funds : An
Investors Guide, for which we did a detailed study of features of ULIP and
Mutual Funds offered by different banks followed by a market research in order to
know the investing patterns and concerns of the investors thereby identifying the
potential customers for these products.
The report contains at first, the brief introduction about the company, the products
and services being offered by the bank, comparative analysis of different products
offered by different banks and then the findings and analysis of the research on the
basis of which final suggestions and conclusion has been drawn.
We have also put forward recommendations that will help Standard Chartered
Bank to move a step ahead to be banking giant in India.
FORE SCHOOL OF MANAGEMENT
INTRODUCTION
INDIAN BANKING SYSTEM:
India has a well developed banking system. Most of the banks in India were founded by Indian
entrepreneurs and visionaries in the pre-independence era to provide financial assistance to traders,
agriculturists and budding Indian industrialists. Indian banks have played a significant role in the
development of Indian economy by inculcating the habit of saving in Indians and by lending finance
to Indian industry.
The commercial banking structure in India consists of: Scheduled Commercial Banks and
Unscheduled Banks. Scheduled commercial Banks constitute those banks, which have been included
in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI includes only those banks in
this schedule, which satisfy the criteria laid down vide section 42 (6) (a) of the Act.
Indian banks can be broadly classified into nationalized banks/public sector banks, private banks and
foreign banks.
Foreign banks have brought latest technology and latest banking practices in India. They have
helped made Indian Banking system more competitive and efficient. Government has come up with
a road map for expansion of foreign banks in India.
The road map has two phases. During the first phase between March 2005 and March 2009, foreign
banks may establish a presence by way of setting up a wholly owned subsidiary (WOS) or
FORE SCHOOL OF MANAGEMENT
ABN-AMRO Bank
BNP Paribas
Citibank
Deutsche Bank
HSBC Ltd
HSBC
16%
Foreign 8%
Nationalised - 80%
Pr
iva
te
27%
1
2%
HSBC
9
%
Others
30%
FUTURE PLANS:
After 150 years of service to India, Standard Chartered Bank continues to be committed to the
country and optimistic of positively contributing to the Indian Financial Sector. The Standard
Chartered Group considers India to be one of the greatest economic opportunities of the 21st century
and is proud to be so strongly positioned here. The Bank has ambitious plans to transform its
business in the country and to further expand operations across the country.
MARKET POTENTIAL:
With a burgeoning national economy, financial-sector reforms and a growing middle class, the
Indian market offers huge potential for SCB to grow. The large and growing middle class population
and increase in disposable incomes have created booming markets in housing, motor, televisions,
computers, mobile phones and other products, most of which require financing. SCB has been
effective in leveraging this opportunity with its product and service offerings.
PRODUCTS OFFERED:
Standard Chartered bank provides different products and services in order to cater the needs of the
customers which can be broadly classified into the following categories:
1. PERSONAL BANKING: To cater the diverse financial needs, Standard Chartered offers a
wide range of premium banking products and services through its network of 81 branches in
31 cities across the country.As a privileged customer of this bank, the customers can always
be assured of a banking service that is flexible enough to tailor-make a product suite to take
care of his specific banking needs.
2. SME BANKING: SME Banking provides integrated financial solutions to small and medium
businesses, through a relationship management approach. Its customer focused product
offerings include working capital finance, trade services, foreign exchange, and cash
management.
SAVINGS ACCOUNT
An account primarily opened for and operated by individuals, wherein the numbers of transactions
are few and which give the customer liquidity, with the facility to earn some interest on the residual
balances.
Standard Chartered bank offers 4 types of Savings account matching different needs of customers
namely:
1.
Axcess
Plus
:The
Standard
Chartered
Bank
have
launched
the
Axcess
Plus
saving account as a premium product placed in the market with maintenance of minimum
quarterly balance of 10,000/- The product in supposed to be targeted to a specific group elite of
customers. This will help to increase the volume and as such the profitability of the company.
The name axcess plus means that the account is accessible anywhere anytime, as well as it will
be an innovative and convenient services for the customers needs.
2. Super Value
FORE SCHOOL OF MANAGEMENT
10
Indian Residents
NRIs
11
PARAMETERS
SAVINGS ACCOUNT NAME
ACCOUNTS
CHARGES FOR OPENING THE
ACCOUNT
AVERAGE QUARTERLY
(DAILY)BALANCE REQD.
SuperValue Savings
Account
NIL
NIL
Rs.10000
ACCOUNT CLOSURE
Rs 50,000
Rs. 1250/qtr
(Rs.5000<=Bal<10k)
Rs.1250/qtr(Rs.10000
>Bal>Rs.5000)
Rs.1000 per yr.
Rs.500 (within 6
months)
0.25%
Rs 250
FREE
Rs.250
0.30%
Rs.75
0.25%
FREE
FREE/qtr
FREE/qtr
Rs.100
Rs.100
Free for 1st Yr yr,250/yr
Rs.100
FREE
Free for 1st Yr
yr,250/yr
FREE
Rs.200
DEMAND DRAFT
DRAWN AT OWN BANK(min fee
Rs.50 & max Rs.1500)
CANCELLATION
DRAWN AT OTHER BANK( Min Fee
Rs.250)
PAY ORDER
STATEMENTS
STATEMENT OF ACCOUNT,(ESTMT)
CHARGES FOR DUPLICATE
STATEMENT
MONTHLY STATEMENT CHARGES
ISSUE BALANCE CONFIRMATION
CERTIFICATE
CARDS
DEBIT CARD ANNUAL FEE
DEBIT CARD REPLACEMENT FEE
ATM INTERCHANGE(NON
PARTNER)
SERVICES
NETBANKING
INTERBRANCH/ INTERCITY
BANKING
BILLPAY
PHONE BANKING
MOBILE BANKING(SMS)
12
PARAMETERS
STANDING INSTRUCTIONS
SETTING UP
DOOR STEP BANKING
CASH PICK UP
CASH DELIVERY/TRANSACTION
CHEQUE BOOKS
CHEQUE BOOK CHARGES(AT PAR)
CHARGES FOR STOP PAYMENT OF
INSTRUMENT
aXcessPlus Savings
Account
SuperValue Savings
Account
Rs.100(for setting)
Rs.25(on execution)
FREE
FREE
FREE
FREE
FREE
FREE
Rs.100
Rs.250 + other banks
charges
Rs.100 + other banks
charges
MISCELLANEOUS
BALANCE CERTIFICATE(Upto 1
Yr)/more Than 1 Yr old
BANKER'S REPORT
SIGNATURE VERIFICATION
FREE/Rs.250
Rs.50
Rs.25
FREE/Rs.250
FREE
FREE
INSURANCE PARTNER
BAJAJ ALLIANZ
BAJAJ ALLIANZ
Rs.250
FREE
13
PARAMETERS
SAVINGS ACCOUNT NAME
ACCOUNTS
CHARGES FOR OPENING THE
ACCOUNT
AVERAGE QUARTERLY
(DAILY)BALANCE REQD.
PENALTY FOR UNSUFFICIENT AQB
DORMANT A/C CHARGES
ACCOUNT CLOSURE
DEMAND DRAFT
DRAWN AT OWN BANK(min fee Rs.50
& max Rs.1500)
CANCELLATION
DRAWN AT OTHER BANK( Min Fee
Rs.250)
PAY ORDER
STATEMENTS
STATEMENT OF ACCOUNT,(E-STMT)
CHARGES FOR DUPLICATE
STATEMENT
MONTHLY STATEMENT CHARGES
ISSUE BALANCE CONFIRMATION
CERTIFICATE
CARDS
DEBIT CARD ANNUAL FEE
DEBIT CARD REPLACEMENT FEE
Parivaar Account
NIL
Rs.25000 across all linked Savings a/c
Rs. 1000/qtr (Bal<Rs.10000)
Rs.750/qtr(Rs.25000>Bal>=Rs.10000)
Rs.1000 per yr.
Rs.500 (within 6 months)
0.25%
Rs 250
0.30%
Rs.75
FREE/qtr
Rs.100
Rs.100
Free for 1st Yr yr,250/yr
Rs.200 per year
Rs.200
Free for first 4 transactions per month/
Rs.50 for beyond 4 trans.
FREE
Rs.50
FREE
FREE
NOT AVAILABLE
14
PARAMETERS
STANDING INSTRUCTIONS
SETTING UP
DOOR STEP BANKING
CASH PICK UP
CASH DELIVERY/TRANSACTION
CHEQUE BOOKS
CHEQUE BOOK CHARGES(AT PAR)
CHARGES FOR STOP PAYMENT OF
INSTRUMENT
CHEQUE RETURN CHARGES(Issued)
CHEQUE RETURN
CHARGES(Deposited)
Parivaar Account
Rs.100(for setting),Rs.25(on
execution)
FREE
Rs.100
Rs.250 + other banks charges
Rs.100 + other banks charges
MISCELLANEOUS
BALANCE CERTIFICATE(Upto 1
Yr)/more Than 1 Yr old
BANKER'S REPORT
SIGNATURE VERIFICATION
FREE/Rs.250
Rs.50
Rs.25
INSURANCE PARTNER
BAJAJ ALLIANZ
15
16
BANKS
PARAMETERS
SAVINGS ACCOUNT NAME
ACCOUNTS
CHARGES FOR OPENING THE A/C
AVERAGE QUART. (DAILY)BAL
REQD.
ABN-AMRO
FLEX PLUS
KOTAK
MAHINDRA
EDGE
NIL
NIL
(Rs. 10000/mth),Rs 15000 with
add on A/C
Rs.10000
Rs.
300/mth(Rs7500<=Bal<10000),Rs
400(Rs
5000<=Bal<Rs7500,Rs500(Bal<Rs
5000)
Rs 661/Qtr
Rs 50
Rs 50
0.25%
Min 50,Rs2.5/1000
FREE/Hlf yr,(FREE/mth)
FREE/qtr
Rs 661
Rs. 50/stmt.
Rs.25
Rs.50
CARDS
DEBIT CARD ANNUAL FEE
DAILY ATM WITHDRAWL LIMIT
DEBIT CARD SPENDING LIMIT
DEBIT CARD REPLACEMENT FEE
ATM
INTERCHANGE(PARTNER)/TRANSN
ATM INTERCHANGE(NON
PARTNER)
SERVICES
NETBANKING
INTERBRANCH/ INTERCITY
BANKING
BILLPAY
PHONE BANKING
Rs.180
Rs.50000(NON GOLD)
Rs.50000(NON GOLD)
Rs 200
FREE,Bal=Rs5
FREE
Rs 50,Bal=Rs 20
FREE
FREE
FREE
FREE
Rs.100
FREE
FREE
17
BANKS
PARAMETERS
SAVINGS ACCOUNT NAME
SERVICES
MOBILE BANKING(SMS)
STANDING INSTRUCTIONS
SETTING UP
AMMENDMENT
DOOR STEP BANKING
CASH PICK UP
CASH
DELIVERY/TRANSACTION
CHEQUE BOOKS
CHEQUE BOOK CHARGES(AT
PAR)
CHARGES FOR STOP PAYMENT
OF INSTRU
CHEQUE RETURN
CHARGES(Issued)
CHEQUE RETURN
CHARGES(Deposited)
ISSUE OF CHEQUE LEAF
CHARGE
MISCELLANEOUS
BALANCE CERTIFICATE
PHOTO ATTESTATION
SIGNATURE VERIFICATION
KOTAK
MAHINDRA
ABN-AMRO
FLEX PLUS
EDGE
(FREE)
Rs 50
Rs 50
FREE
1/DAY FREE,Rs 50
FREE
Rs.50
Rs.100
110.2
Rs.350
110
Rs 100
Rs 50
Rs 50
Rs 50
INSURANCE PARTNER
RELIANCE,Kotak
18
BANKS
PARAMETERS
SAVINGS ACCOUNT NAME
ACCOUNTS
CHARGES FOR OPENING THE ACCOUNT
AVERAGE QUARTERLY
(DAILY)BALANCE REQD.
PENALTY FOR UNSUFFICIENT AQB
STANDARD CHARTERED
aXcessPlus Savings Account
Savings Account
NIL
NIL
Rs.10000
Rs.25000
0.25%
Rs 250
0.30%
CARDS
DEBIT CARD ANNUAL FEE
DAILY ATM WITHDRAWL LIMIT
DEBIT CARD SPENDING LIMIT
DEBIT CARD REPLACEMENT FEE
ATM
INTERCHANGE(PARTNER)/TRANSACTIO
N
ATM INTERCHANGE(NON PARTNER)
SERVICES
NETBANKING
INTERBRANCH/ INTERCITY BANKING
BILLPAY
PHONE BANKING
HSBC
FREE/qtr
Rs.100
Rs.100
Rs. 150/qtr (2
yrs.)
FREE/qtr
Rs. 150/stmt.
FREE
Rs.50
FREE
FREE
19
BANKS
PARAMETERS
SAVINGS ACCOUNT NAME
SERVICES
MOBILE BANKING(SMS)
STANDING INSTRUCTIONS
SETTING UP
AMMENDMENT
DOOR STEP BANKING
CASH PICK UP
CASH DELIVERY/TRANSACTION
CHEQUE BOOKS
CHEQUE BOOK CHARGES(AT PAR)
CHARGES FOR STOP PAYMENT OF
INSTRUMENT
CHEQUE RETURN CHARGES(Issued)
CHEQUE RETURN
CHARGES(Deposited)
ISSUE OF CHEQUE LEAF CHARGE
MISCELLANEOUS
BALANCE CERTIFICATE
PHOTO ATTESTATION
SIGNATURE VERIFICATION
INSURANCE PARTNER
STANDARD
CHARTERED
aXcessPlus Savings
Account
HSBC
Savings
Account
NOT AVAILABLE
Rs.100(for setting),
Rs.25(on execution)
Rs.100
Rs.250 + other banks
charges
Rs.100 + other banks
charges
BAJAJ ALLIANZ,Royal
Sundaram
TATA AIG
20
BANKS
PARAMETERS
SAVINGS ACCOUNT NAME
ACCOUNTS
CHARGES FOR OPENING THE A/C
AVERAGE QUART. (DAILY)BAL
REQD.
PENALTY FOR UNSUFFICIENT
AQB
ICICI
HDFC
SAVINGS ACCOUNT
Savings Account
NIL
NIL
Rs. 5000
Rs. 5000
Rs 750/qtr
Rs 750/qtr
Rs 75(Amt<= Rs 50K),Rs
2.5/1000 Min
100(50K<Amt<=1 L),Rs2/1000
(Amt>1L)
Rs 50
Rs 50+Other charges
FREE(Qtr)
FREE/qtr
Rs.100
Rs.800/yr
Rs.99,FREE FOR Sr
CTZN
Rs 50000(Ncash)
Rs 50000(Ncash)
Rs.200
Rs 20,Bal= Rs 10
Rs.100/yr
Rs. 15000
Rs.55,Bal=Rs 10
Rs 60, Bal= Rs 25
FREE
FREE
FREE
FREE (UPTO
Rs.50000/day),Rs.2.90 /
21
BILLPAY
PHONE BANKING
FREE
BANKS
PARAMETERS
SAVINGS ACCOUNT NAME
SERVICES
MOBILE BANKING(SMS)
STANDING INSTRUCTIONS
ICICI
HDFC
SAVINGS ACCOUNT
Savings Account
FREE
SETTING UP
AMMENDMENT
DOOR STEP BANKING
CASH PICK UP
CASH
DELIVERY/TRANSACTION
CHEQUE BOOKS
CHEQUE BOOK CHARGES(AT
PAR)
CHARGES FOR STOP PAYMENT
OF INSTRU
CHEQUE RETURN
CHARGES(Issued)
CHEQUE RETURN
CHARGES(Deposited)
ISSUE OF CHEQUE LEAF
CHARGE
MISCELLANEOUS
BALANCE CERTIFICATE
PHOTO ATTESTATION
SIGNATURE VERIFICATION
Rs 100/instn
Rs 25/amdmt
INSURANCE PARTNER
Rs 10
Rs 10
FREE
Rs.50
Rs. 200
Rs.350
Rs 50(local),Rs100(outstn)
Rs.50(local),Rs.100(outstation)
Rs.25
Rs 50
Rs 100
Rs 50
Rs 50
Rs 50
Rs 50
22
23
Two factors were responsible for the advent of ULIPs on the domestic insurance horizon. First was
the arrival of private insurance companies on the domestic scene. ULIPs were one of the most
significant innovations introduced by private insurers. The other factor that saw investors take to
ULIPs was the decline of assured return endowment plans. Of course, the regulator -- IRDA
(Insurance and Regulatory Development Authority) was instrumental in signaling the end of assured
return plans.
Today, there is just one insurance plan from LIC (Life Insurance Corporation) -- Komal Jeevan -that assures return to the policyholder.
These were the two factors most instrumental in marking the arrival of ULIPs, but another factor that
has helped their cause is a booming stock market. While this now appears as one of the primary
reasons for their popularity, we believe ULIPs have some fundamental positives like enhanced
flexibility and merging of investment and insurance in a single entity that have really endeared them
to individuals.
SUM ASSURED
Perhaps the most fundamental difference between ULIPs and traditional endowment plans is in the
concept of premium and sum assured.
When you want to take a traditional endowment plan, the question your agent will ask you are -how much insurance cover do you need? Or in other words, what is the sum assured you are looking
for? The premium is calculated based on the number you give your agent.
With a ULIP it works in reverse. When you opt for a ULIP, you will have to answer the question -how much premium can you pay?
Depending on the premium amount you state, you are offered a sum assured as a multiple of the
premium. For instance, if you are comfortable paying Rs 10,000 annual premium on your ULIP, the
insurance company will offer you a sum assured of say 5 to 20 times the premium amount.
24
In the case of LIC's ULIP, the sum assured--premium relationship works the traditional way. So you
need to state how much sum assured you are looking for and your premium is calculated as 1/10th
the sum assured. If you have opted for a sum assured of Rs 100,000, your annual premium will be
Rs 10,000.
INVESTMENTS
Traditionally, endowment plans have invested in government securities, corporate bonds and the
money market. They have shirked from investing in the stock markets, although there is a provision
for the same.
However, for some time now, endowment plans have discarded their traditional outlook on investing
and allocate about 10%-15% of monies to stocks. This percentage varies across life insurance
companies.
ULIPs have no such constraints on their choice of investments. They invest across the board in
stocks, government securities, corporate bonds and money market instruments. Of course, within a
ULIP there are options wherein equity investments are capped.
EXPENSES
ULIPs are considered to be very expensive when compared to traditional endowment plans. This
notion is rooted more in perception than reality.
Sale of a traditional endowment plan fetches a commission of about 30% (of premium) in the first
year and 60% (of premium) over the first five years. Then there is ongoing commission in the region
of 5%.
Sale of a ULIP fetches a relatively lower commission ranging from as low as 5% to 30% of premium
(depending on the insurance company) in the first 1-3 years. After the initial years, it stabilises at 13%. Unlike endowment plans, there are no IRDA regulations on ULIP commissions.
25
FLEXIBILITY
As we mentioned, one aspect that gives ULIPs an edge over traditional endowment is flexibility.
ULIPs offer a host of options to the individual based on his risk profile.
There are insurance companies that offer as many as five options within a ULIP with the equity
component varying from zero to a maximum of 100%. You can select an option that best fits your
objectives and risk-taking capacity.
Having selected an option, you still have the flexibility to switch to another option. Most insurance
companies allow a number of free 'switches' in a year.
Another innovative feature with ULIPs is the 'top-up' facility. A top-up is a one-time additional
investment in the ULIP over and above the annual premium. This feature works well when you have
a surplus that you are looking to invest in a market-linked avenue, rather than stash away in a
savings account or a fixed deposit.
ULIPs also have a facility that allows you to skip premiums after regular payment in the initial
years. For instance, if you have paid your premiums religiously over the first three years, you can
skip the fourth year's premium. The insurance company will make the necessary adjustments from
your investment surplus to ensure the policy does not lapse.
With traditional endowment, there are no investment options. You select the only option you have
and must remain with it till maturity. There is also no concept of a top-up facility.
26
27
28
2003-04
186,443
221
2004-05
288,189
1,002
Apr-Sep '05
200,213
762
7.3
0.96
15.4
3.39
19.8
4.75
BAJAJ ALLIANZ-BACKGROUND:
Bajaj Allianz Life Insurance Co Ltd is a joint venture between two leading conglomeratesAllianz AG, one of the world's largest insurance companies, and Bajaj Auto, one of the biggest two
and three wheeler manufacturers in the world.
Allianz Group is one of the world's leading insurers and financial service providers. Founded in
1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. Allianz
Group provides its more than 60 million customers worldwide with a comprehensive range of
services in the areas of Property and Casualty Insurance, Life and Health Insurance, & Asset
Management and Banking.
Bajaj Auto Ltd, the flagship company of the Rs80bn Bajaj Group is the largest manufacturer of twowheelers and three-wheelers in India and one of the largest in the world. Bajaj Auto has a strong
brand image & brand loyalty synonymous with quality & customer focus in India
29
FEATURES
The Bajaj Allianz Unit Gain comes with a host of features to allow a customer to have the best of all
worlds Protection and Investment with flexibility like never before.
Some of the key features of this plan are:
Guaranteed death benefit
Choice of 6 investment funds with flexible investment management: you can change funds at any
time.
Attractive investment alternative to fixed-interest securities
Provision for full/partial withdrawals any time after three full years premiums are paid.
Unmatched flexibility to match the changing needs.
In order to understand the ULIP policy, a detailed analysis of how the plan works, what all are the
service charges charged by the company, what is the amount assured and how is it calculated etc. has
been done in the following sheets. Moreover, as at present every next bank is offering this policy it
becomes essential to compare the different ULIP policies offered by different banks and companies
with the policy offered by Bajaj Allianz.
FUTURE PROSPECTS:
30
31
ULIP
Joint/Single life
Min Annual premium(Rs)
Mode of premium payment
Min Sum Assured
Types of Funds
Benefits
Death Benefit
Accidential Death Benefit
Critical illness Benefit
Accidential Pemanent/Partial
Disability Benefit
Hospital Cash Benefit
MahilaGain Rider Benefit
Cash Withdrawl Option
Min Withdrawl Amt(Rs.)
Min Balance requirement(Rs.)
Redirect Premium
Free Switches
Min Switching Amt(Rs)
Top Up
Choice Of Top Up
Min Top Up Amt.
Percentage of Top up Allocated
Flexibility to Increase Sum
Assured
No of Times
Quantum of Increase
Flexibility to Decrease Sum
Assured
6(Equity,Equity Gain,Equity
Midcap,Debt,Balanced,Cash)
4(Maximiser,Balancer,Protector,Reserve
r
Yes
Optional
Optional
Yes
Optional
Optional
Optional(for womem only)
Anytime after payment of 3
full year premiums
1000
10000
Allowed
3/yr
5000
Yes
-
Yes
5000
100%
100%
Yes
Every 3rd year upto 4 times
25% of the SA/Rs.1Lakh
whichever lower
Yes
Every 3rd year upto 3 times
25% of the SA/Rs.1Lakh whichever
lower
yes
No
Yes
No
Yes
Yes,Max Decrease 20 % of the original
premium
yes
Yes
Allocation
1st year
2nd year
3rd Year
All
30%
98%
99%
(18000-49,999)
80%
92.50%
96%
(50,000 &
above)
82%
92.50%
96%
4 th Year
Bid Offer Spread
Transaction Charges
100 % onwards
5%
0.5%(equity)0.2%(debt)
96% onwards
96% onwards
32
ULIP
HDFC Unit Linked
Endowment Plan
Single life
10000
Yearly,quarterly,monthly
5*Annual Premium
6(liquid,secure
managed,defensive
managed,balanced
managed,equity managed
growth.
Joint/Single life
Min Annual premium(Rs)
Mode of premium payment
Min Sum Assured
Types of Funds
Benefits
Death Benefit
Accidential Death Benefit
Critical illness Benefit
Yes
Optional
Optional
Accidential Permanent/Partial
Disability Benefit
Hospital Cash Benefit
MahilaGain Rider Benefit
No
No
No
10000
15000
Allowed
No Limit
Yes
5000
97%(1 & 2 Yr),99%(3 yr
Onwards)
No
Yes
no
Allocation
1st year
2nd year
3rd Year
upto1,99,999
73%
73%
99%
4 th Year
Bid Offer Spread
Transaction Charges
99% Onwards
Rs15/month
2,00,000
to
4,99,999
80%
80%
99%
99%
Onwards
5,00,000
to
9,99,999
85%
85%
99%
99%
Onwards
10,00,000
& Above
90%
90%
99%
99%
Onwards
33
Joint/Single life
Min Annual premium(Rs)
Mode of premium payment
Min Sum Assured
1,00,000
4(secure,conservative,balanced,growth
)
Types of Funds
Benefits
Death Benefit
Accidental Death Benefit
Critical illness Benefit
4(with profits,
secure,growth,balanced)
Optional
Optional
Accidental Permanent/Partial
Disability Benefit
Hospital Cash Benefit
MahilaGain Rider Benefit
Anytime after payment of 3 full year
premiums
Allowed
2/yr
yes
Yes
As applicable
75%
80%
100%
4 th Year
Bid Offer Spread
Transaction Charges
100%Onwards
Rs 50/month
5%
34
Other Charges
1%
(Equity,Balanced,Debt
& Cash),1.5%(Equity
Gain,Equity Midcap)
1%of switch Amt/Rs
100 whichever higher
As applicable
-
0.80%
Free
As applicable
Other Charges
(0.9% to1.25%)
Switching Charges
Mortality Charges
Top Up Charges
Initial Set up Charge(1st year only)
1%
0.5%of switch Amt/Rs 100 whichever
higher
(0.15% to
0.25%)/month
35
MUTUAL FUNDS
A mutual fund is a pool of money, collected from investors, and is invested according to certain
investment objectives.
A mutual fund is created when investors put their money together. It is therefore a pool of investors
funds. The most important characteristic of a mutual fund is that the contributors and the
beneficiaries of the fund are the same class of people, namely the investors.
36
37
Source:
Association of Mutual Funds in India (AMFI)
38
By Structure
o Open - Ended Schemes
o Close - Ended Schemes
o Interval Schemes
By Investment Objective
o Growth Schemes
o Income Schemes
o Balanced Schemes
o Money Market Schemes
Other Schemes
o Tax Saving Schemes
o Special Schemes
FORE SCHOOL OF MANAGEMENT
39
Index Schemes
Sector Specific Scheme
40
41
42
43
Our saving rate is over 23%, highest in the world. Only channelizing these savings in mutual
funds sector is required.
We have approximately 29 mutual funds which is much less than US having more than 800.
There is a big scope for expansion.
'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are concentrating
on the 'A' class cities. Soon they will find scope in the growing cities.
Mutual fund can penetrate rurals like the Indian insurance industry with simple and limited
products.
44
Inception
Date
31-Mar-96
9-Aug-99
31-Mar-96
1yr(%
)
77.68
67.39
52.21
3yr(%
)
82.45
86.19
70.47
SI(%)
45.79
37.22
30.25
Top 10
Holdings(%)
56.1
39.85
35.12
Equity Index
HDFC Index Sensex plus G Fund
Prudential ICICI index
Birla Index Fund-G
10-Jul-02
25-Feb-02
17-Sep-02
56.88
55.19
50.16
50.26
44.49
43.07
41.64
28.6
40.24
57.53
67.62
28.63
24-Dec-94 76.35
7-May-98 63.76
31-Aug-96 69.13
72.63
75.04
71.88
25.55
36.42
28.72
66.42
41.85
43.2
10-Apr-00
65.06
73.27
29.34
34.87
7-Oct-05
19-Jul-02
31-Dec-03
1-Oct-02
75.78
77.5
55.56
60.09
90.25
84.07
73.27
69.12
34.01
70.5
15.94
62.44
47.16
30.85
42.95
39.32
51.8
39.29
53.92
46.68
23.24
18.85
32.15
19.68
31-Jan-94
7-Oct-95
14-May99
7-Oct-99
42.76
45.78
45.76
43.91
18.84
18.2
22.15
22.97
Liquid
DSP Merrill Lynch Liquidity Fund
9-Mar-98
5.64
5.18
6.92
45
19-Nov-99 5.55
3-Dec-02
5.28
5.12
2.02
6.08
5.07
29-Apr-98
5.15
7.25
14-Oct-95
28-Sep-00
30.44
10.81
31.6
12.61
17.26
12.7
14-Oct-00
7-Feb-00
12.23
9.9
10.73
11.16
10.95
10.57
Expense
Ratio
2.43
2.36
2.49
Standard
Corpus(Crs) RAR Deviation
323.28
3.59 6.66
280.96
3.52 8.07
106.27
2.91 6.86
Equity Index
HDFC Index Sensex plus G Fund
Prudential ICICI index
Birla Index Fund-G
1.5
1.25
1.49
5.82
2.94
4.31
2.4
2.08
2
6.12
6.98
6.72
1.95
2.4
2.18
2657.9
265.48
1003.38
3.18
3.1
3.06
6.46
6.87
6.97
2.2
925.96
3.05
1.96
2.32
2.06
2.42
2496.41
474.05
952.82
152.27
3.74
3.55
3.18
3.06
7.06
7.89
6.37
6.17
Balanced
HDFC Prudence Fund
Tata Balanced Fund
DSP Merrill Lynch Balanced-Fund
Prudential ICICI Balanced
2.01
2.46
2.04
2.28
1643.57
137.29
312.11
321.11
2.58
2.22
2.19
2.14
4.46
4.95
Liquid
DSP Merrill Lynch Liquidity Fund
0.45
4476.52
0.32
4.82
46
0.45
0.7
2369.69
2663.42
0.31
0.31
0.01
0.01
0.75
1780.26
0.3
0.01
2.46
1.83
138.49
702.54
1.63
0.71
3.53
0.48
1.8
1.9
463.07
142.63
0.64
0.63
0.61
0.38
Alpha
2.31
2.37
1.8
Beta
0.88
0.98
0.86
R-squared
0.79
0.65
0.71
Benchmark Index
S&P 500
S&P Cnx Nifty
Sensex
Equity Index
HDFC Index Sensex plus G Fund
Prudential ICICI index
Birla Index Fund-G
0.58
-0.06
-0.04
0.9
1.03
0.99
0.98
1
0.99
Sensex
S&P Cnx Nifty
S&P Cnx Nifty
1.42
1.7
1.34
0.9
0.95
0.9
0.88
0.86
0.84
S&P 500
Sensex
BSE 200
2.63
2.82
2.19
2.17
0.89
0.86
0.78
0.73
0.72
0.53
0.67
0.63
BSE 100
BSE midcap
S&P 500
CNX Midcap
1.79
1.62
1.03
1.17
0.66
0.69
Crisil Balanced
Crisil Balanced
1.19
1.23
0.8
Crisil Balanced
0.02
0.01
0
0.05
0
0.18
Crisil Liquid
Crisil Liquid
47
0.01
0.08
0.26
Crisil Liquid
MIP
Tata Young Citizens Fund
FT India Monthly Income Plan
Prudential ICICI Monthly Income Plan
Tempelton Monthly Income Plan
2.38
0.15
0.26
0.13
0.72
0.05
0.07
0.04
0.1
0.01
0.01
0.01
Crisil Balanced
Crisil MIP Bl
Crisil MIP Bl
Crisil MIP Bl
48
49
50
Investment
amounts
ULIPs
Mutual Funds
Expenses
Portfolio
disclosure
Not mandatory*
Quarterly disclosures are mandatory
Modifying asset Generally permitted for free Entry/exit loads have to be borne by
allocation
or at a nominal cost
the investor
Tax benefits
51
WHERE TO INVEST
Whether to invest in ULIP or to invest in MUTUAL FUND depends upon customers future
financial goals & present investments.
1. If an investor is looking for an insurance policy and is ready to take moderate risks, he must
opt for the ULIP plan. A term of 10 years or less is advisable only when one needs an
insurance cover, otherwise if a customer wants to enter a horizon of 11-30 years, then ULIP
scores handsomely over Mutual funds.
2. ULIP is not meant for an irregular investor, as under a ULIP policy an investor has to make
compulsory savings. An investor has to save regularly and invest through the highs and lows
in the market. So, for the investors who generally do not save regularly and invest only when
market is high and disinvest when the market is low, mutual funds are the best option.
3. The investors who want to invest only to enjoy short term gains and want to switch and
withdraw their amounts frequently are not advised to invest in ULIP as there is usually a lock
in period of 3 or 4 years involved in ULIP.Such investors should go in for Mutual funds
where they can switch anytime they want to.
4. For low risk taking investors mutual funds can be the best option as the risk can be
diversified as there exists huge variety of specialized schemes under mutual funds which can
FORE SCHOOL OF MANAGEMENT
52
SURVEY
As a part of our project, in order to know the perceptions of the investors about the investment
schemes basically ULIP and MUTUAL FUNDS, a survey was being conducted by us in Delhi NCR
region.
To know the existing investment pattern among different age groups and different
occupations.
To know the present portfolio of the investors, their perceptions about different investment
schemes, their investment concerns, their present returns, and their future expectations from
different investment schemes.
To know the popularity and acceptability of the two products i.e. ULIP and MUTUAL
FUNDS (of Standard Chartered bank specially) among the above mentioned categories.
To know the potential customers for the investment schemes: ULIP and Mutual Funds of
Standard Chartered bank.
To analyze which set of customers should invest in ULIP and Mutual Funds as per their
needs identified.
FORE SCHOOL OF MANAGEMENT
53
Internet
RESEARCH METHODOLOGY
FORE SCHOOL OF MANAGEMENT
54
ANALYSIS
FINDINGS:
OCCUPATION
To begin with the nature of occupation was divided broadly into 2 categories:
1. Business
2. Services
The study shows:
Almost 80% of people were into service and 20% were into business, either proprietorship or
partnership.
BUSINESS
55
SERVICE
The sample consisted of 61 % having income between Rs. 2 lakh to Rs. 5 lakh. 28% had income
greater than Rs. 5 lakh.
It can be seen that 68 % people in services are investing and only 64% people are having their life
insured. In this segment the main concern of investing is to build cash reserves. The
majority of their portfolio consists of Mutual Funds (23%) & Fixed Deposits (23%).
This segment is comparatively better aware of ULIPs.This Risk Tolerance is also low
as only 18% invest in share markets.
This class (60%) considers High Returns as very important investment factor while only 20 % Tax
free proceeds with the same importance.
In the ULIPs we find LIC & ICICI to be dominating the market with 36% share each. Bajaj Allianz
has 14 % presence. We find the preference for Equity Type Fund declines to 54 % & for balanced
FORE SCHOOL OF MANAGEMENT
56
AGE
The analysis was also done on the basis of age which was being broadly classified into 4 categories:
1. 18-25 years
2. 25-35 years
3. 35-45 years
4. 45 and above
The study shows:
AGE 18-25
The sample consisted of 58 % people having income between Rs. 2 lakh to Rs. 5 lakh. 25% had
income greater than Rs. 5 lakh. Majority (74%) belonged to salaried class. It can be seen that only
54% people are investing. We find that majority of people of this age group (58%) do not have Life
Insurance cover. The investments are basically in Mutual funds (35%) & share markets (24%).
This indicates high Risk Tolerance for this age group. The prime concern of this segment for
investing is to purchase assets.
This class considers High Returns (79%) & Flexibility (60%) as very important investment factors
while only 21 % consider Tax Free proceeds with the same importance.
57
AGE 25-35
The sample consisted of 55 % people having income between Rs. 2 lakh to Rs. 5 lakh. 31% had
income greater than Rs. 5 lakh. Majority (70%) belonged to salaried class. It can be seen that
majority (70%) people are investing with Building Cash reserves & Funding for children being their
main concerns. We find that majority of people of this age group (71%) have Life Insurance cover.
The investments are basically in ULIP (27%) & Fixed Deposits (23%).
This class considers High Returns, Safety & Liquidity as important investment factors with less
importance given to Tax Free proceeds & Flexibility.
In the ULIPs we find LIC (33 %) & ICICI (29%) to be dominating with Bajaj Allianz having 19%
market share. Majority (60%) of people investing in ULIP invest in Equity Type Fund, indicating
their preference for high returns as well as well as Risk Tolerance.
In Mutual Funds we find that of the 21% people investing in Mutual Funds, Reliance & Fidelity are
their common choice.[No. of observations:35]
AGE 35-45
The sample consisted of 60 % people having income between Rs. 2 lakh to Rs. 5 lakh. 30% had
income greater than Rs. 5 lakh. Majority (60%) belonged to salaried class. It can be seen that 87%
people are investing. We find that majority of people of this age group (90%) have Life Insurance
cover. The investments are basically in Mutual funds (22%) & ULIP (31%). This indicates their
high awareness regarding these two. The prime concern of this segment for investing is to build
Cash reserves & Funding for their children.
This class considers safety (70%) & High Returns (50%) as very important investment factors while
only 10 % consider Flexibility with the same importance.
FORE SCHOOL OF MANAGEMENT
58
RECOMMENDATIONS:
OCCUPATION
The business segment can be targeted for ULIP (as an investment product) and Mutual funds as
these products are offering high returns and safety which is the major concern of this segment.
The need is to promote ULIP as a better product than the F.Ds and mutual fund can be promoted
in lieu of the share markets.
59
The service class can be a potential customer both for the ULIP and Mutual Funds. ULIP needs
to be promoted as an insurance product and can be sold emphasizing the importance and need of
insurance. This segment is already investing into Mutual funds, thus the bank needs to promote
its mutual funds by promising the customers higher returns and safety than the others.
AGE
The segment (18-25) can be a potential customer segment for the bank as most of the people
are falling in the income group of Rs. 2-5 lakhs.The company can target this segment by
offering its ULIP product both as an insurance and investment product, which can provide
high returns as the investments and provide the insurance cover too, as a large segment
doesnt have an insurance cover. The return on investments (ULIP and Mutual funds) is
mostly between the 10% -20% brackets so products offering returns higher than this band
can be offered to this category as 24% of people under this category are looking for building
cash reserves and earning higher returns. The need is to make this segment aware of the
products like ULIP (which is promising return of 20-25% p.a.) and tap as many customers as
possible.
In order to tap the 25-35 years segment ULIP can be promoted as an investment option rather
than an insurance product. Mutual funds need to be promoted as only a small segment is
investing in mutual funds. Mutual funds and ULIP both can be the best investment option for
this segment as the basic reason for investment as can be seen from above is building Cash
reserves and funding for children and both these products are offering high returns.
As the segment 35-45 years is an investing and risk taking segment, Mutual funds promising
higher returns can be promoted in this segment. The product ULIP is also highly acceptable
by this segment, so both of these products can be promoted as a best investment options
promising high returns and low risks.
Thus this segment can mainly be targeted for the Mutual funds as can be seen that very few
people are investing M.Fs. this is because this segment consists of risk averters as this
segment prefers Fixed Deposits and government securities than any other investment product
as safety is the most important factor which is being considered while investing by this
segment, thus product like ULIP and Mutual Funds need to be promoted as safe investments
and better than F.Ds only then this segment can be tapped.
CONCLUSION
FORE SCHOOL OF MANAGEMENT
60
61
BIBLIOGRAPHY
BOOKS:
1. Indian Mutual Funds Handbook by Sankaran S.
2. Investment policy and performance of Mutual Funds by Barua 2003.
3. Mutual funds in India by Sadhak, 2005.
4. Money Simplified, Sept 2005.
5. Business Research Methods by Schindler & cooper, 2003.
WEBSITES:
1. http://www.iloveindia.com/finance/bank/index.html
2. www.valueresearchonline.com
3. http://www.rediff.com/money/2005/oct/18perfin.htm
4. www.standardchartered.com
5. www.icicibank.com
6. www.abnamro.com
7. www.hsbc.com
8. www.kotak.com
62
ANNEXURE
AGE 18-25
Income
above5
b/w 2-5
below 2
No.
6
14
4
24
As a % of
total
0.25
0.58
0.17
1
IN COME
17%
25%
above5
b/ w 2-5
below 2
58%
Life Insurance
Cover
Yes
No
No.
10
14
24
As a % of
total
0.42
0.58
1
42%
58%
Yes
No
63
Invest or Not
Yes
No
No.
13
11
24
As a % of
total
0.54
0.46
1
IN VEST OR N OT
46%
Yes
54%
Reasons for
Investment
Asset Purchase
Building Cash
Reserves
Retirement
Others
No.
8
As a % of
total
0.470588235
4
3
2
17
0.235294118
0.176470588
0.117647059
1
No
46%
Building Cash
Reserves
Retirement
Others
64
PORTFOLIO
Mutual
Funds
Fixed
Deposits
ULIP
Share
markets
Others
No.
As a % of
total
10
0.344827586
5
4
0.172413793
0.137931034
7
3
29
0.24137931
0.103448276
1
PORTFOLIO
10%
Mutual Funds
Fixed Deposits
ULIP
Share markets
Others
35%
24%
14%
17%
ULIP
Scheme
ICICI
LIC
AVIVA
No.
As a % of
total
2
1
1
4
0.5
0.25
0.25
1
ULIP SCHEME
AVIVA
25%
LIC
25%
ICICI
50%
ICICI
LIC
AVIVA
65
M.F Co.
Franklin
ICICI
Fidelity
Reliance
Others
No.
4
2
2
4
4
16
As a %
of total
0.25
0.125
0.125
0.25
0.25
1
MUTUAL FUN DS
Others
25%
Reliance
25%
Franklin
24%
Fidelity
13%
RETURNS ON M.F.
10%-20%
20%-30%
above 30%
Franklin
ICICI
Fidelity
Reliance
Others
ICICI
13%
No.
5
3
2
10
As %
of total
0.5
0.3
0.2
1
RETURN S ON M.F.
20%
50%
30%
10%-20%
20%-30%
above 30%
66
AGE 25-35
Income
above5
b/w 2-5
below 2
No.
11
19
5
35
As a % of total
0.314285714
0.542857143
0.142857143
1
Income
14%
31%
above5
b/ w 2-5
below 2
55%
Invest or Not
Yes
No
As a % of
No.
total
26 0.74285714
9 0.25714286
0
35
1
IN VEST OR N OT
26%
Yes
No
74%
67
Life Insurance
Cover
Yes
No
No.
As a % of
total
25 0.71428571
10 0.28571429
0
35
1
29%
Yes
No
71%
No.
4
6
16
7
9
2
44
As a % of total
0.090909091
0.136363636
0.363636364
0.159090909
0.204545455
0.045454545
1
20%
16%
5% 14%
14%
36%
Income
replacement
Asset Purchase
Building Cash
Reserves
Retirement
Funding for
Children
Others
68
PORTFOLIO
Mutual Funds
Fixed Deposits
ULIP
Share markets
Others
No.
13
14
16
10
8
61
As a % of total
0.213114754
0.229508197
0.262295082
0.163934426
0.131147541
1
PORTFOLIO
13%
Mutual Funds
Fixed Deposits
ULIP
Share markets
Others
21%
16%
23%
27%
ULIP
Scheme
ICICI
LIC
Bajaj
Allianz
Others
As a % of
total
6 0.285714286
7 0.333333333
No.
4
4
21
0.19047619
0.19047619
1
ULIP Scheme
19%
29%
19%
33%
Type of
Fund
Equity
Balanced
No.
ICICI
LIC
Bajaj Allianz
Others
As a % of
Total
13 0.619047619
3 0.142857143
FORE SCHOOL OF MANAGEMENT
69
5
21
0.238095238
1
Type of Fund
24%
14%
Returns
Below 10%
10%-20%
20%-30%
Above 30%
62%
No.
2
7
3
4
16
Equity
Balanced
Cash
As a % of
Total
0.125
0.4375
0.1875
0.25
1
Returns
13%
25%
19%
M.F Co.
Franklin
ICICI
Fidelity
Reliance
HDFC
Others
43%
No.
3
3
5
5
3
7
Below 10%
10%-20%
20%-30%
Above 30%
As a % of
total
0.115384615
0.115384615
0.192307692
0.192307692
0.115384615
0.269230769
70
M.F Co.
12%
26%
12%
RETURNS
ON M.F.
10%-20%
20%-30%
above 30%
12%
19%
19%
No.
3
4
6
13
Franklin
ICICI
Fidelity
Reliance
HDFC
Others
As % of total
0.230769231
0.307692308
0.461538462
1
RETURNS ON M.F.
23%
46%
31%
10%-20%
20%-30%
above 30%
71
AGE 35- 45
Invest
No
Yes
1
7
Invest
13%
No
Yes
87%
Life Insurance
No
Yes
1
9
Life Insurance
10%
No
Yes
90%
Investment reasons
Asset Purchase
Building Cash reserves
Funding for children
Income replacement
Retirement
2
6
4
2
2
72
Investment Reasons
13%
Building Cash
reserves
Funding for
children
Income
replacement
Retirement
13%
13%
37%
24%
Most Important
High returns
Safety
Liquidity
Tax free
proceeds
Flexibility
Asset Purchase
5
7
4
3
1
Most Important
Portfolio
Government
securities
Mutual funds
ULIP
Flexibility
Liquidity
Safety
Series1
High returns
8
7
6
5
4
3
2
1
0
4
5
7
FORE SCHOOL OF MANAGEMENT
73
3
1
3
Government
securities
Mutual funds
Portfolio
13%
17%
ULIP
4%
Share Markets
13%
22%
Fixed Deposits
31%
Bonds
ULIP SCHEME
ICICI
LIC
UTI
Others
2
3
2
0
ULIP SCHEME
29%
0%
ICICI
LIC
UTI
Others
29%
42%
Returns
Below 10%
10%-20%
20%-30%
Above 30 %
1
4
1
1
74
Return in ULIP
14%
14%
Below 10%
10%-20%
20%-30%
Above 30 %
14%
58%
2
2
1
1
1
Reliance
ICICI
HDFC
SBI
GLSS
29%
14%
14%
29%
45 AND ABOVE
Life Insurance
No
Yes
4
20
Life Insurance
17%
No
Yes
83%
75
7
17
Invest
29%
No
Yes
71%
Portfolio
Government
securities
Mutual funds
ULIP
Share Markets
Fixed Deposits
Bonds
8
5
9
6
13
5
Portfolio
11%
17%
11%
28%
13%
20%
Government
securities
Mutual funds
ULIP
Share Markets
Fixed Deposits
Bonds
76
Investment reasons
Asset Purchase
Building Cash reserves
Funding for children
Income replacement
Retirement
3
11
6
1
5
Investment Reasons
Building Cash
reserves
Funding for
children
Income
replacement
12%
19%
4%
42%
23%
Asset Purchase
Retirement
Most Important
High returns
Safety
Liquidity
Tax free proceeds
Flexibility
12
16
6
10
6
Most Important
20
15
10
5
0
Flexibility
Tax free
proceeds
Liquidity
Safety
High
returns
Series1
77
ULIP
SCHEME
ICICI
LIC
UTI
Aviva
1
4
4
2
ULIP SCHEME
18%
9%
ICICI
LIC
UTI
Aviva
37%
36%
FUNDS
Equity
Balanced
Debt
Cash
2
7
0
0
0%
FUNDS
0%
Equity
Balanced
Debt
Cash
22%
78%
Returns
Below 10%
10%-20%
Above 30 %
2
6
1
78
Returns in ULIP
11%
22%
Below 10%
10%-20%
Above 30 %
67%
1
2
1
1
1
1
1
12%
24%
12%
Reliance
ICICI
HDFC
Franklin
Fidelity
UTI
IDBI
79
BUSINESS
INCOME
Below 2
b/w 2-5
Above 5
No.
3
9
6
18
As a %
of Total
0.16667
0.5
0.33333
1
INCOME
17%
33%
Below 2
b/ w 2-5
Above 5
50%
Invest or Not
Yes
No
As a %
No.
of Total
13 0.72222
5 0.27778
0
18
1
Invest or Not
28%
Yes
No
72%
80
Life Insurance
Cover
Yes
No
As a %
of Total
0.83333
0.16667
0
1
No.
15
3
18
17%
Yes
No
83%
Reasons for
Investment
Asset Purchase
Building Cash
Reserves
Retirement
Others
No.
As a %
of total
7 0.26923
8 0.30769
3 0.11538
8 0.30769
26
1
12%
27%
30%
Building Cash
Reserves
Retirement
Others
81
Investment
Factors
High returns
Safety
Liquidity
Tax free proceeds
Flexibility
Very
Important
10
8
3
6
5
Somewhat
Important Important
1
4
6
3
3
Less Important
1
1
3
2
3
1
0
1
2
2
100%
80%
60%
40%
20%
0%
PORTFOLIO
Mutual Funds
Flexibility
Tax free
proceeds
Liquidity
Safety
High
returns
Somewhat
Important
Important
Very Imporant
No.
6
Fixed Deposits
ULIP
Share markets
Government
Securities
Others
7
5
2
32
As a %
of total
0.1875
0.2187
5
0.1562
5
0.2187
5
0.1562
5
0.0625
0.8437
5
82
PORTFOLIO
6%
16%
Mutual Funds
19%
Fixed Deposits
ULIP
21%
22%
16%
ULIP
Scheme
ICICI
LIC
Others
Share markets
Government Securities
Others
No.
1
3
2
6
As a %
of total
0.16667
0.5
0.33333
1
ULIP Scheme
33%
17%
ICICI
LIC
50%
Others
Type of Fund
17%
Equity
Balanced
83%
83
M.F Co.
Franklin
ICICI
Reliance
Others
As a %
of total
0.08333
0.25
0.33333
0.33333
1
No.
1
3
4
4
12
M.F Co.
8%
33%
Franklin
ICICI
Reliance
Others
25%
34%
SERVICE
Income
above5
b/w 2-5
below 2
No.
15
32
6
53
As a % of total
0.283018868
0.603773585
0.113207547
1
Income
11%
61%
28%
above5
b/ w 2-5
below 2
84
No.
As a % of total
36
0.679245283
17
0.320754717
0
53
1
Invest or Not
32%
Yes
No
68%
No. As a % of total
34
0.641509434
19
0.358490566
0
53
1
36%
Yes
No
64%
Reasons for
Investment
Income replacement
Asset Purchase
Building Cash
Reserves
Retirement
Funding for Children
Others
No.
As a % of total
2
0.036363636
9
0.163636364
22
9
9
4
0.4
0.163636364
0.163636364
0.072727273
85
1
Income
replacement
Asset Purchase
7%
16%
16%
4%
Building Cash
Reserves
Retirement
16%
Funding for
Children
Others
41%
PORTFOLIO
Mutual Funds
Fixed Deposits
ULIP
Share markets
Government
Securities
Others
No.
19
19
18
15
As a % of total
0.226190476
0.226190476
0.214285714
0.178571429
6
7
84
0.071428571
0.083333333
0.928571429
PORTFOLIO
Mutual Funds
Fixed Deposits
7% 8%
ULIP
23%
18%
21%
Investment
Concerns
High returns
Safety
Very
Imporant
23%
Share markets
Government
Securities
Others
Somewhat
Important Important
23
9
20
13
Less
Important
4
4
2
1
86
12
7
14
18
19
15
6
8
5
2
4
4
Less Important
Somewhat
Important
100%
80%
60%
40%
20%
0%
ULIP Scheme
Flexibility
Tax free
proceeds
Liquidity
Safety
High
returns
Important
No.
ICICI
LIC
Bajaj Allianz
Others
3
22
Very Imporant
As a %
of total
0.3636
4
0.3636
4
0.1363
6
0.1363
6
1
ULIP Scheme
14%
14%
36%
36%
ICICI
LIC
Bajaj Allianz
Others
87
Type of Fund
14%
Equity
Balanced
Cash
54%
32%
Returns on ULIP
No.
Below 10%
10%-20%
4
11
20%-30%
Above 30%
3
22
As a %
of
Total
0.1818
2
0.5
0.1818
2
0.1363
6
1
Returns on ULIP
14%
18%
Below 10%
10%-20%
20%-30%
Above 30%
18%
50%
M.F
Co.
Frankli
n
No.
7
ICICI
Fidelity
Relianc
e
Others
5
5
10
As a %
of total
0.2258
1
0.1290
3
0.1612
9
0.1612
9
0.3225
88
31
M.F Co.
32%
23%
13%
16%
16%
Franklin
ICICI
Fidelity
Reliance
Others
89
VARUN LALL
FORE School of Mgmt
Salaried
Business
1
Yes
2 -5
above 5
More than 2
No
PARAMETERS
High Returns
Safety
Liquidity
Tax Free Proceeds
Flexibility
RATING
1
1
1
1
1
2
2
2
2
2
3
3
3
3
3
4
4
4
4
4
Mutual Funds
Bonds
AVIVA
ICICI
90
Debt
Balanced
Cash
10. How much returns are you getting on your ULIP investments annually (approximately)?
Below 10% 10% - 20 %
20%-30%
above 30%
Attempt (Q.11 Q. 12) if you invest in Mutual Funds
11. Which mutual funds are you investing in presently? _______________________
12. How much returns are you getting on your investments annually (approximately)?
Below 10% 10% - 20 %
20%-30%
above 30%
13. Standard Chartered Bank is offering an opportunity to participate in investment
schemes generating high returns, would you like to avail it? Yes No
THANK YOU!!!!!
91