TABLE OF CONTENTS

CHAPTER 1 : INTRODUCTION . 3-37

CHAPTER 2 : RESEARCH METHODOLOGY . 38-41
3.1: OBJECTIE OF STUDY
3.2: RESEARCH DESIGN.
3.3: DATA SOURCES.

CHAPTER 3 : FINDINGS ... 42-4!
CHAPTER 4 : DATA ANALYSIS AND INTERPRETATION .. 47-8!
CHAPTER " : RECOMMENDATIONS AND CONCLUSION .. 87-8#
CHAPTER ! : BIBLIOGRAPHY #$
CHAPTER 7 : %UESTIONNAIRE.. #1-#2
1
E&ECUTIE SUMMARY
A '()*+,+-./0 A1+234.4 (5 ULIP *2+14 L.50 I146,+1'0 +17 )6-6+2 5617 +4
*,050,,07 .1/04-)01- -((24 83 .1/04-(,4 .1 A9,+: an analysis to be done be by Arvind
Kumar Sharma student(MBA) of College Of Business Studies, Agra
!otal "nvestment s#enario is #hanging, in $ast $eo$le %ere not interested in investment
be#ause there %ere no good o$tions available for investment &o% there are many
o$tions available for investment li'e life "nsuran#e, Mutual fund, ()uity mar'et, *eal
estate, et#
!oday $eo$le %ant more servi#es and more return on their investment So, most of the
insuran#e #om$anies are $roviding more value + added servi#es %ith the basi# insuran#e
o$eration
Another o$tion for investment available is Mutual ,und Mutual ,unds are $roviding
good returns So %hile investing $eo$le tend more to %ords mutual fund as they are
$roviding more returns than "nsuran#e also, %ith a good investment $ortfolio Mutual
fund #om$anies are $roviding more li)uidity
!he $ro-e#t %as ta'en to 'no% about, %hat are the investment $attern of the investors in
./"0s, M,s and other investment o$tions available in the mar'et, a%areness of ./"0s 1
M,s on the basis of their o##u$ation and in#ome Customers al%ays $refer to invest in a
good o$tion and in a #om$any %hi#h is mar'et leader
After survey and analysis " #ame to 'no% that most of the $eo$le go for ./"0 insuran#e
$oli#ies to #over the ris' of life, and invest it in a good 0ortfolio but there is big $ortion
of #ustomers have ta'en the $oli#ies to save the ta2es And $eo$le are a%are about the
3
ta2 benefits they get for insuran#e $oli#ies !herefore, %hile investing in any "nvestment
o$tion investor #he#'s %hether his money is safe or not, Mutual funds $rovides good
returns but investments are dire#tly e2$osed to ris' As in ./"0 returns are related to
sto#' mar'et but they are having some insuran#e benefit and "*4A regulates the
investment
Many $eo$le are getting the ta2 benefits in ./"0 "n Mutual ,und they have to invest
their money in ta2 saving funds to get the ta2 benefit
5
INTRODUCTION
6
INTRODUCTION
(veryone li'es to see their hard earned money gro% )ui#'ly But there are no )ui#'
gains An investment has to be long term in order to be really benefi#ial As you ma'e u$
your mind to invest, ma'e sure you are ready to 'ee$ $atien#e Besides, ris' fa#tor
al%ays there to es#ort your investment So, one should be absolutely #lear in one7s mind,
%hat one %ants8 9hether it7s /ife "nsuran#e 0oli#y, &ational Savings Certifi#ate or
Mutual ,unds, all the investment $lans have their merits and demerits that should be
#onsidered before you $ro#eed But before investing one should have #om$lete
'no%ledge about all the o$tions available
Mutual ,unds as an investment $lan have the $otential to re%ard you ri#hly in the long
run :o%ever, flu#tuating mar'et gra$hs %ould give you slee$less nights So, it is not
really an inviting avenue in the $resent s#enario
.nit /in'ed "nsuran#e 0oli#ies (./"0s) as an investment avenue are #losest to mutual
funds in terms of their stru#ture and fun#tioning As is the #ases %ith mutual funds,
investors in ./"0s are allotted units by the insuran#e #om$any and a net asset value
(&A;) is de#lared for the same on a daily basis /i'e%ise ./"0 investors have the o$tion
of investing a#ross various s#hemes similar to the ones found in the mutual funds domain
<
ULIP ;U1.- L.1<07 I146,+1'0 P2+1=
INTRODUCTION:
A .nit /in' "nsuran#e 0oli#y (./"0) is one in %hi#h the #ustomer is $rovided %ith a
life insuran#e #over and the $remium $aid is invested in either debt or e)uity $rodu#ts
or a #ombination of the t%o "n other %ords, it enables the buyer to se#ure some
$rote#tion for his family in the event of his untimely death and at the same time
$rovides him an o$$ortunity to earn a return on his $remium $aid "n the event of the
insured $erson=s untimely death, his nominees %ould normally re#eive an amount that
is the higher of the sum assured or the value of the units (investments) !o $ut it
sim$ly, ./"0 attem$ts to fulfill investment needs of an investor %ith
$rote#tion>insuran#e needs of an insuran#e see'er "t saves the investor>insuran#e?
see'er the hassles of managing and tra#'ing a $ortfolio or $rodu#ts
A ./"0, as the name suggests, is a mar'et?lin'ed insuran#e $lan !he main differen#e
bet%een a ./"0 and other insuran#e $lans is the %ay in %hi#h the $remium money is
invested 0remium from, say, an endo%ment $lan, is invested $rimarily in ris'?free
instruments li'e government se#urities (gse#s) and AAA rated #or$orate $a$er, %hile
./"0 $remiums #an be invested in sto#' mar'ets in addition to #or$orate bonds and
gse#s
@
./"0s offer a variety of o$tions to the individual de$ending on his ris' $rofile ,or
instan#e, an individual %ith an above?average ris' a$$etite #an #hoose a ./"0 o$tion
that invests u$to @AB of $remium in e)uities /i'e%ise, an individual %ith a lo%er
ris' a$$etite #an sele#t a ./"0 that invests u$to 3AB of $remium in e)uities
TYPES OF ULIP
!here are various unit lin'ed insuran#e $lans available in the mar'et :o%ever, the 'ey
ones are *014.(1> '?.27,01> 9,(6* +17 '+*.-+2 96+,+1-00 *2+14.
T?0 *014.(1 *2+14 #ome %ith t%o variations C %ith and %ithout life #over C
and are meant for $eo$le %ho %ant to generate returns for their sunset years
T?0 '?.27,01 *2+14, on the other hand, are aimed at ta'ing #are of their
edu#ational and other needs
A$art from unit?lin'ed $lans for individuals, 9,(6* 61.- 2.1<07 *2+14 are also
available in the mar'et !he Drou$ lin'ed $lans are basi#ally designed for
em$loyers %ho %ant to offer #ertain benefits for their em$loyees su#h as gratuity,
su$erannuation and leave en#ashment
!he other im$ortant #ategory of ./"0s is '+*.-+2 96+,+1-00 *2+14 !he $lan
$romises the $oli#yholder that at least the $remium $aid %ill be returned at
maturity But the guaranteed amount is $ayable only %hen the $oli#y=s maturity
value is belo% the total $remium $aid by the individual till maturity :o%ever,
the guarantee is not $rovided on the a#tual $remium $aid but only on that $ortion
E
of the $remium that is net of e2$enses (mortality, sales and mar'eting,
administration)
H(@ ULIP4 @(,<
./"0s %or' on the lines of mutual funds !he $remium $aid by the #lient (less any
#harge) is used to buy units in various funds (e)uity fund, debt based funds, aggressive,
balan#ed or #onservative) floated by the insuran#e #om$anies .nits are bought a##ording
to the $lan #hosen by the $oli#yholder On every additional $remium, more units are
allotted to his fund !he $oli#yholder #an also s%it#h among the funds as and %hen he
desires 9hile some #om$anies allo% any number of free s%it#hes to the $oli#yholder,
some restri#t the number to -ust three or four "f the number is e2#eeded, a #ertain #harge
is levied
"ndividuals #an also ma'e additional investments (besides $remium) from time to time to
in#rease the savings #om$onent in their $lan !his fa#ility is termed Fto$?u$F !he money
$ar'ed in a ./"0 $lan is returned either on the insured=s death or in the event of maturity
of the $oli#y "n #ase of the insured $erson=s untimely death, the amount that the
benefi#iary is $aid is the higher of the sum assured (insuran#e #over) or the value of the
units (investments) :o%ever, some s#hemes $ay the sum assured $lus the $revailing
value of the investments
ULIP - AEY FEATURES ;IN GENERAL=:
1 0remiums $aid #an be single, regular or variable !he $ayment $eriod too #an be
regular or variable !he ris' #over #an be in#reased or de#reased
G
3 As in all insuran#e $oli#ies, the ris' #harge (mortality rate) varies %ith age
5 !he maturity benefit is not ty$i#ally a fi2ed amount and the maturity $eriod #an be
advan#ed or e2tended
6 "nvestments #an be made in gilt funds, balan#ed funds, money mar'et funds, gro%th
funds or bonds
< !he $oli#yholder #an s%it#h bet%een s#hemes, for instan#e, balan#ed to debt or gilt to
e)uity, et#
@ !he maturity benefit is the net asset value of the units
E !he #osts in ./"0 are higher be#ause there is a life insuran#e #om$onent in it as %ell,
in addition to the investment #om$onent
G "nsuran#e #om$anies have the dis#retion to de#ide on their investment $ortfolios
H !hey are sim$le, #lear, and easy to understand
1A Being trans$arent the $oli#yholder gets the entire e$isode on the $erforman#e of his
fund
11 /ead to an effi#ient utiliIation of #a$ital
13 ./"0 $rodu#ts are e2em$ted from ta2 and they $rovide life insuran#e
15 0rovides #a$ital a$$re#iation
H
16 "nvestor gets an o$tion to #hoose among debt, balan#ed and e)uity funds
USP (5 ULIPS
I146,+1'0 '(/0, *264 4+/.194
./"0s serve the $ur$ose of $roviding life insuran#e #ombined %ith savings at mar'et?
lin'ed returns !o that e2tent, ./"0S #an be termed as a t%o?in?one $lan in terms of
giving an individual the t%in benefits of life insuran#e $lus savings
M62-.*20 .1/04-)01- (*-.(14
./"0S offer a lot more variety than traditional life insuran#e $lans So there are multi$le
o$tions at the individual7s dis$osal ./"0S generally #ome in three broad variantsJ
Aggressive ./"0S (%hi#h #an ty$i#ally invest GAB?1AAB in e)uities, balan#e in
debt)
Balan#ed ./"0S (#an ty$i#ally invest around 6AB?@AB in e)uities)
Conservative ./"0S (#an ty$i#ally invest u$to 3AB in e)uities)
Although this is ho% the ./"0 o$tions are generally designed, the e2a#t debt>e)uity
allo#ations may vary a#ross insuran#e #om$anies "ndividuals #an o$t for a variant based
on their ris' $rofile

1A
F20B.8.2.-3
!he fle2ibility %ith %hi#h individuals #an s%it#h bet%een the ./"0 variants to #a$italiIe
on investment o$$ortunities a#ross the e)uity and debt mar'ets is %hat distinguishes it
from other instruments Some insuran#e #om$anies allo% a #ertain number of Kfree7
s%it#hes S%it#hing also hel$s individuals on another front !hey #an shift from an
Aggressive to a Balan#ed or a Conservative ./"0 as they a$$roa#h retirement !his is a
refle#tion of the #hange in their ris' a$$etite as they gro% older
C(,<4 2.<0 +1 SIP
*u$ee #ost?averaging is another im$ortant benefit asso#iated %ith ./"0S 9ith an S"0,
individuals invest their monies regularly over time intervals of a month>)uarter and don7t
have to %orry about Ktiming7 the sto#' mar'ets
HURDLES OF ULIP
NO STANDARDIDATION
All the #osts are levied in %ays that do not lend to standardiIation "f one #om$any
#al#ulates administration #ost by a formula, another levies a flat rate "f one #om$any
allo%s a range of the sum assured (SA), another allo%s only a multi$le of the $remium
!here %as also the $roblem of a varying #ost stru#ture %ith age
11
LACA OF FLE&IBILITY IN LIFE COER
./"0 is 'no%n to be more fle2ible in nature than the traditional $lans and, on most
#ounts, they are :o%ever, some insuran#e #om$anies do not allo% the individual to fi2
the life #over that he needs !hese rely on a multi$lier that is fi2ed by the insurer
OERSTATING THE YIELD
"nsuran#e #om$anies %or' on illustrations !hey are allo%ed to sho% you ho% mu#h
your annual $remium %ill be %orth if it gre% at 1A $er #ent $er annum But there are
#osts, so ea#h #om$any also gives a $ost?#ost return at the 1A $er #ent illustration, #alling
it the yield some #om$anies %ere not in#luding the mortality #ost %hile #al#ulating the
yield !his amounts to overstating the yield
INTERNALLY MADE SALES ILLUSTRATION
4uring the $ro#ess of #olle#ting information, it %as found that the sales benefit
illustration sho%n %as not #onforming to the "nsuran#e *egulatory and 4evelo$ment
Authority ("r4A) format in many lo#ations5A $er #ent return illustrations are still ram$ant
NOT ALL SHOC THE BENCHMARA RETURN
!o tal' about returns %ithout $egging them to a ben#hmar' is misleading the #ustomer
!hough most #om$anies use Sense2, BS( 1AA or the &ifty as the ben#hmar', or the
measuring rod of $erforman#e, some #om$anies are not using any ben#hmar' at all
13
EARLY E&IT OPTIONS
!he .li$ $rodu#t %or's over the long term !he earlier the e2it, the %orse off is the
investor sin#e he ends u$ redeeming a high?front?load $rodu#t and is then en#ouraged to
move into another higher #ost $rodu#t at that stage An early e2it also ta'es a%ay the
benefit of #om$ounding from insured
CREEPING COSTS
Sin#e the investors are no% more a%are than before and have begun to as' for #osts,
some #om$anies have found a %ay to ans%er that %ithout dis#losing too mu#h 0eo$le
are no% as'ing ho% mu#h of the $remium %ill go to %or' !here are $lans that are able
to say H3 $er #ent %ill be invested, that is, %ill have a front load of -ust G $er #ent 9hat
they do not say is the mu#h higher $oli#y administration #ost that is tu#'ed a%ay inside
(ad-usted from the fund value)
9hile most insuran#e #om$anies #harge an annual fee of about *s @AA as administration
#osts, that stay fi2ed over time, there are $lans that #harge this amount, but it gro%s by as
mu#h as < $er #ent a year over time !here are others that #harge a multi$le of this
amount and that too gro%s
15
TRADITIONAL LIFE INSURANCE PLANSE AN OERIEC
!he basi# and %idely used form of design is 'no%n as !raditional /ife 0latform "t is
based on the #on#e$t of sharing (a#h of the $oli#y holder #ontributes his #ontribution
($remium) into the #ommon large fund is managed by the #om$any on behalf of the
$oli#y holders
Administration of that #ommon fund in the interest of everybody %as entrusted to the
insuran#e #om$any "t %as the res$onsibility of the #om$any to administer s#hemes for
benefit of the $oli#yholders 0oli#yholders $layed a very $assive roll "n the #ourse of
time, the same #on#e$t of sharing and a #ommon fund %as e2tended to different areas
li'e saving, investment et#
FEATURES OF TL:
!his is the sim$lest %ay of designing $rodu#t as far as #on#erned :e has no other
res$onsibility but to $ay the $remium regularly
Com$any is res$onsible for the $rote#tion as %ell as ma2imiIation of the
$oli#yholder7s funds
!here is a #ommon fund %here in all the $remiums $aid are a##umulated
(2$enses in#urred as %ell as #laims $aid are then ta'en out of this fund
Com$anies #arry out the valuation of the fund $eriodi#ally to as#ertain the
$osition "t is also a $ra#ti#e to in#rease the minimum $ossible guarantee under a
16
$oli#y every year in the form of de#laring and atta#hing bonuses to the sum
assured on the basis of this valuation 4e#laration of bonuses is not mandatory
Based on the end ob-e#tive , #om$anies may offer different $lans li'e saving
$lans, investment $lans et#(eg (ndo%ment , S09/"0)
"t hel$s to maintain a smooth gro%th and $rote#ts against the vagaries of the mar'et "n
other %ords it minimiIes the ris' of investments for an average individual :e shares his
ris' %ith a grou$ of li'e?minded individuals
ULIP S TRADITIONAL INSURANCE PLAN
"t %asn=t too long ba#', %hen the good old endo%ment $lan %as the $referred %ay to
insure oneself against an eventuality and to set aside some savings to meet one=s finan#ial
ob-e#tives !hen insuran#e %as thro%n o$en to the $rivate se#tor !he result %as the
laun#h of a %ide variety of insuran#e $lans, in#luding the ./"0s
!%o fa#tors %ere res$onsible for the advent of ./"0s on the domesti# insuran#e horiIon
,irst %as the arrival of $rivate insuran#e #om$anies on the domesti# s#ene ./"0s %ere
one of the most signifi#ant innovations introdu#ed by $rivate insurers !he other fa#tor
that sa% investors ta'e to ./"0s %as the de#line of assured return endo%ment $lans Of
#ourse, the regulator ?? "*4A ("nsuran#e and *egulatory 4evelo$ment Authority) %as
instrumental in signaling the end of assured return $lans
!oday, there is -ust one insuran#e $lan from /"C (/ife "nsuran#e Cor$oration) ?? Komal
Leevan ?? that assures return to the $oli#yholder
1<
!hese %ere the t%o fa#tors most instrumental in mar'ing the arrival of ./"0s, but
another fa#tor that has hel$ed their #ause is a booming sto#' mar'et 9hile this no%
a$$ears as one of the $rimary reasons for their $o$ularity, %e believe ./"0s have some
fundamental $ositives li'e enhan#ed fle2ibility and merging of investment and insuran#e
in a single entity that have really endeared them to individuals
SUM ASSURED
0erha$s the most fundamental differen#e bet%een ./"0s and traditional endo%ment
$lans is in the #on#e$t of $remium and sum assured
9hen you %ant to ta'e a traditional endo%ment $lan, the )uestion your agent %ill as'
you are ?? ho% mu#h insuran#e #over do you need8 Or in other %ords, %hat is the sum
assured you are loo'ing for8 !he $remium is #al#ulated based on the number you give
your agent
9ith a ./"0 it %or's in reverse 9hen you o$t for a ./"0, you %ill have to ans%er the
)uestion ?? ho% mu#h $remium #an you $ay8
4e$ending on the $remium amount you state, you are offered a sum assured as a multi$le
of the $remium ,or instan#e, if you are #omfortable $aying *s 1A,AAA annual $remium
on your ./"0, the insuran#e #om$any %ill offer you a sum assured of say < to 3A times
the $remium amount
"n the #ase of /"C=s ./"0, the sum assured??$remium relationshi$ %or's the traditional
%ay So you need to state ho% mu#h sum assured you are loo'ing for and your $remium
1@
is #al#ulated as 1>1Ath the sum assured "f you have o$ted for a sum assured of *s
1AA,AAA, your annual $remium %ill be *s 1A,AAA
INESTMENTS
!raditionally, endo%ment $lans have invested in government se#urities, #or$orate bonds
and the money mar'et !hey have shir'ed from investing in the sto#' mar'ets, although
there is a $rovision for the same
:o%ever, for some time no%, endo%ment $lans have dis#arded their traditional outloo'
on investing and allo#ate about 1AB?1<B of monies to sto#'s !his $er#entage varies
a#ross life insuran#e #om$anies
./"0s have no su#h #onstraints on their #hoi#e of investments !hey invest a#ross the
board in sto#'s, government se#urities, #or$orate bonds and money mar'et instruments
Of #ourse, %ithin a ./"0 there are o$tions %herein e)uity investments are #a$$ed
E&PENSES
./"0s are #onsidered to be very e2$ensive %hen #om$ared to traditional endo%ment
$lans !his notion is rooted more in $er#e$tion than reality
Sale of a traditional endo%ment $lan fet#hes a #ommission of about 5AB (of $remium) in
the first year and @AB (of $remium) over the first five years !hen there is ongoing
#ommission in the region of <B
1E
Sale of a ./"0 fet#hes a relatively lo%er #ommission ranging from as lo% as <B to 5AB
of $remium (de$ending on the insuran#e #om$any) in the first 1?5 years After the initial
years, it stabiliIes at 1?5B .nli'e endo%ment $lans, there are no "*4A regulations on
./"0 #ommissions
Mortality e2$enses for ./"0s and traditional endo%ment $lans remain the same as also
the administration #harges
One area %here ./"0s $rove to be more e2$ensive than traditional endo%ment is in fund
management Sin#e ./"0s have an e)uity #om$onent that needs to be managed a#tively,
they in#ur fund management #harges !hese #harges flu#tuate in the AGAB?1<AB (of
$remium) range
FLE&IBILITY
As %e mentioned, one as$e#t that gives ./"0s an edge over traditional endo%ment is
fle2ibility ./"0s offer a host of o$tions to the individual based on his ris' $rofile
!here are insuran#e #om$anies that offer as many as five o$tions %ithin a ./"0 %ith the
e)uity #om$onent varying from Iero to a ma2imum of 1AAB Mou #an sele#t an o$tion
that best fits your ob-e#tives and ris'?ta'ing #a$a#ity
:aving sele#ted an o$tion, you still have the fle2ibility to s%it#h to another o$tion Most
insuran#e #om$anies allo% a number of free =s%it#hes= in a year
Another innovative feature %ith ./"0s is the =to$?u$= fa#ility A to$?u$ is a one?time
additional investment in the ./"0 over and above the annual $remium !his feature
1G
%or's %ell %hen you have a sur$lus that you are loo'ing to invest in a mar'et?lin'ed
avenue, rather than stash a%ay in a savings a##ount or a fi2ed de$osit
./"0s also have a fa#ility that allo%s you to s'i$ $remiums after regular $ayment in the
initial years ,or instan#e, if you have $aid your $remiums religiously over the first three
years, you #an s'i$ the fourth year=s $remium !he insuran#e #om$any %ill ma'e the
ne#essary ad-ustments from your investment sur$lus to ensure the $oli#y does not la$se
9ith traditional endo%ment, there are no investment o$tions Mou sele#t the only o$tion
you have and must remain %ith it till maturity !here is also no #on#e$t of a to$?u$
fa#ility
Mour $remium amount #annot be enhan#ed on a one?time basis and s'i$$ed $remiums
%ill result in your $oli#y la$sing
TRANSPARENCY
./"0s are also more trans$arent than traditional endo%ment $lans Sin#e they are
mar'et?lin'ed, there is a $ri#e $er unit !his is the net asset value (&A;) that is de#lared
on a daily basis A sim$le #al#ulation #an tell you the value of your ./"0 investments
Over time you 'no% e2a#tly ho% your ./"0 has $erformed
./"0s also dis#lose their $ortfolios regularly !his gives you an idea of ho% your money
is being managed "t also tells you %hether or not your mutual fund and>or sto#'
investments #oin#ide %ith your ./"0 investments "f they are, then you have the
1H
o$$ortunity to do a rethin' on your investment strategy a#ross the board so as to ensure
you are %ell diversified a#ross investment avenues at all times
9ith traditional endo%ment, there is no #on#e$t of a &A; :o%ever, insurers do send
you an annual statement of bonus de#lared during the year, %hi#h gives you an idea of
ho% your insuran#e $lan is $erforming
!raditional endo%ment also does not have the $ra#ti#e of dis#losing $ortfolios But given
that there are $rovisions that ensure a large #hun' of the endo%ment $ortfolio is in high
)uality (AAA>sovereign rating) debt $a$er, dis#losure of $ortfolios is li'ely to evo'e
little investor interest
LI%UIDITY
Another fle2ibility that ./"0s offer the individual is li)uidity Sin#e ./"0 investments
are &A;?based it is $ossible to %ithdra% a $ortion of your investments before maturity
Of #ourse, there is an initial lo#'?in $eriod (5 years) after %hi#h the %ithdra%al is
$ossible
!raditional endo%ment has no $rovision for $re?mature %ithdra%al Mou #an surrender
your $oli#y, but you %on=t get everything you have earned on your $oli#y in terms of
$remiums $aid and bonuses earned "f you are #lear that you %ill need money at regular
intervals then it is re#ommended that you o$t for money?ba#' endo%ment
3A
TA& BENEFITS
!a2ation is one area %here there is #ommon ground bet%een ./"0s and traditional
endo%ment 0remiums in ./"0s as %ell as traditional endo%ment $lans are eligible for
ta2 benefits under Se#tion GAC sub-e#t to a ma2imum limit of *s 1AA,AAA On the same
lines, monies re#eived on maturity on ./"0s and traditional endo%ment are ta2?free
under Se#tion 1A
ULIP SALES SINCE 2$$#-1$
T?0 S-(,3 .1 N6)80,4
2$$7-$8 2$$8-$# A*,-S0* F1$
N( (5 *(2.'.04 18!>4"$ 288>18# 2$$>213
G,(44 *,0).6) ;R4 ',= 221 1>$$2 7!2
M+,<0- 4?+,0 ;G=
P/- 2.50 .146,+1'0 '(4 7.3 1".4 1#.8
A22 2.50 .146,+1'0 '(4 $.#! 3.3# 4.7"
MUTUAL FUNDS
A mutual fund is a $ool of money, #olle#ted from investors, and is invested a##ording to
#ertain investment ob-e#tives
A mutual fund is #reated %hen investors $ut their money together "t is therefore a $ool of
investors7 funds !he most im$ortant #hara#teristi# of a mutual fund is that the
#ontributors and the benefi#iaries of the fund are the same #lass of $eo$le, namely the
investors
31
INDUSTRY PROFILE
!he mutual fund industry is a lot li'e the film star of the finan#e business !hough it is
$erha$s the smallest segment of the industry, it is also the most glamorous + in that it is a
young industry %here there are #hanges in the rules of the game everyday, and there are
#onstant shifts and u$heavals !he mutual fund is stru#tured around a fairly sim$le
#on#e$t, the mitigation of ris' through the s$reading of investments a#ross multi$le
entities, %hi#h is a#hieved by the $ooling of a number of small investments into a large
bu#'et Met it has been the sub-e#t of $erha$s the most elaborate and $rolonged
regulatory effort in the history of the #ountry
A 2.--20 ?.4-(,3J
!he mutual fund industry started in "ndia in a small %ay %ith the .!" A#t #reating %hat
%as effe#tively a small savings division %ithin the *B" Over a $eriod of 3< years this
gre% fairly su##essfully and gave investors a good return, and therefore in 1HGH, as the
ne2t logi#al ste$, $ubli# se#tor ban's and finan#ial institutions %ere allo%ed to float
mutual funds and their su##ess emboldened the government to allo% the $rivate se#tor to
foray into this area !he initial years of the industry also sa% the emerging years of the
"ndian e)uity mar'et, %hen a number of mista'es %ere made and hen#e the mutual fund
s#hemes, %hi#h invested in lesser?'no%n sto#'s and at very high levels, be#ame loss
leaders for retail investors ,rom those days to today the retail investor, for %hom the
mutual fund is a#tually intended, has not yet returned to the industry in a big %ay But to
33
be fair, the industry too has fo#used on brining in the large investor, so that it #an #reate a
signifi#ant base #or$us, %hi#h #an ma'e the retail investor feel more se#ure
T?0 I17.+1 MF .1764-,3 has *s <@E la'h #rore of assets under management As $er
data released by Asso#iation of Mutual ,unds in "ndia, the asset base of all mutual fund
#ombined has risen by E53B in A$ril, the first month of the #urrent fis#al As of no%,
there are 55 fund houses in the #ountry in#luding 1@ -oint ventures and 5 %holly o%ned
foreign asset managers A##ording to a re#ent M#Kinsey re$ort, the total A.M of the
"ndian mutual fund industry #ould gro% to N5<A?66A billion by 3A13, e2$anding 55B
annually 9hile the revenue and $rofit (0A!) $ools of "ndian AMCs are $egged at N<63
million and N33A million res$e#tively, it is at $ar %ith fund houses in develo$ed
e#onomies O$erating $rofits for AMCs in "ndia, as a $er#entage of average assets under
management, %ere at 53 basis $oints in 3AA@?AE, %hile the number %as 13 b$s in .K, 1E
b$s in Dermany and 1G b$s in the .S, in the same time frame
M+H(, *2+30,4 .1 I17.+1 )6-6+2 5617 .1764-,3
B.,2+ S61 L.50 M6-6+2 F617
Birla Sun /ife Mutual ,und is the -oint venture of Aditya Birla Drou$ and Sun /ife
,inan#ial Sun /ife ,inan#ial is a global organiIation evolved in 1GE1 and is being
re$resented in Canada, the .S, the 0hili$$ines, La$an, "ndonesia and Bermuda a$art from
"ndia Birla Sun /ife Mutual ,und follo%s a #onservative long?term a$$roa#h to
investment *e#ently it #rossed A.M of *s 1A,AAA #rores
HDFC M6-6+2 F617
35
:4,C Mutual ,und %as setu$ on Lune 5A, 3AAA %ith t%o s$onsorers namely :ousing
4evelo$ment ,inan#e Cor$oration /imited and Standard /ife "nvestments /imited
HSBC M6-6+2 F617
:SBC Mutual ,und %as setu$ on May 3E, 3AA3 %ith :SBC Se#urities and Ca$ital
Mar'ets ("ndia) 0rivate /imited as the s$onsor, Board of !rustees, :SBC Mutual ,und
a#ts as the !rustee Com$any of :SBC Mutual ,und
ICICI P,6701-.+2 M6-6+2 F617
!he mutual fund of "C"C" is a -oint venture %ith 0rudential 0l# of Ameri#a, one of the
largest life insuran#e #om$anies in the .S of A 0rudential "C"C" Mutual ,und %as setu$
on 15th of O#tober, 1HH5 %ith t%o s$onsorers, 0rudential 0l# and "C"C" /td !he !rustee
Com$any formed is 0rudential "C"C" !rust /td and the AMC is 0rudential "C"C" Asset
Management Com$any /imited in#or$orated on 33nd of Lune, 1HH5
S-+-0 B+1< (5 I17.+ M6-6+2 F617
State Ban' of "ndia Mutual ,und is the first Ban' s$onsored Mutual ,und to laun#h
offshore fund, the "ndia Magnum ,und %ith a #or$us of *s 33< #r a$$ro2imately !oday
it is the largest Ban' s$onsored Mutual ,und in "ndia !hey have already laun#hed 5<
S#hemes out of %hi#h 1< have already yielded handsome returns to investors State Ban'
of "ndia Mutual ,und has more than *s <,<AA Crores as A.M &o% it has an investor
base of over G /a'hs s$read over 1G s#hemes
36
T+-+ M6-6+2 F617
!ata Mutual ,und (!M,) is a !rust under the "ndian !rust A#t, 1GG3 !he s$onsorers for
!ata Mutual ,und are !ata Sons /td, and !ata "nvestment Cor$oration /td !he
investment manager is !ata Asset Management /imited and its !ata !rustee Com$any
0vt /imited !ata Asset Management /imited=s is one of the fastest in the #ountry %ith
more than *s E,EA5 #rores (as on A$ril 5A, 3AA<) of A.M
A(-+< M+?.17,+ M6-6+2 F617
Kota' Mahindra Asset Management Com$any (KMAMC) is a subsidiary of KMB/ "t is
$resently having more than 1, HH,G1G investors in its various s#hemes KMAMC started
its o$erations in 4e#ember 1HHG Kota' Mahindra Mutual ,und offers s#hemes #atering
to investors %ith varying ris' ? return $rofiles "t %as the first #om$any to laun#h
dedi#ated gilt s#heme investing only in government se#urities
R02.+1'0 M6-6+2 F617
*elian#e Mutual ,und (*M,) %as established as trust under "ndian !rusts A#t, 1GG3 !he
s$onsor of *M, is *elian#e Ca$ital /imited and *elian#e Ca$ital !rustee Co /imited is
the !rustee "t %as registered on Lune 5A, 1HH< as *elian#e Ca$ital Mutual ,und %hi#h
%as #hanged on Mar#h 11, 3AA6 *elian#e Mutual ,und %as formed for laun#hing of
various s#hemes under %hi#h units are issued to the 0ubli# %ith a vie% to #ontribute to
the #a$ital mar'et and to $rovide investors the o$$ortunities to ma'e investments in
diversified se#urities
3<
S-+17+,7 C?+,-0,07 M6-6+2 F617
Standard Chartered Mutual ,und %as set u$ on Mar#h 15, 3AAA s$onsored by Standard
Chartered Ban' !he !rustee is Standard Chartered !rustee Com$any 0vt /td Standard
Chartered Asset Management Com$any 0vt /td is the AMC %hi#h %as in#or$orated
%ith S(B" on 4e#ember 3A, 1HHH
F,+1<2.1 T0)*20-(1 I17.+ M6-6+2 F617
!he grou$, ,rna'lin !em$leton "nvestments is a California (.SA) based #om$any %ith a
global A.M of .SN 6AH3 bn (as of A$ril 5A, 3AA<) "t is one of the largest finan#ial
servi#es grou$s in the %orld "nvestors #an buy or sell the Mutual ,und through their
finan#ial advisor or through mail or through their %ebsite !hey have O$en end
4iversified ()uity s#hemes, O$en end Se#tor ()uity s#hemes, O$en end :ybrid
s#hemes, O$en end !a2 Saving s#hemes, O$en end "n#ome and /i)uid s#hemes, #losed
end "n#ome s#hemes and O$en end ,und of ,unds s#hemes to offer
M(,9+1 S-+1203 M6-6+2 F617 I17.+
Morgan Stanley is a %orld%ide finan#ial servi#es #om$any and it7s leading in the mar'et
in se#urities, investment management and #redit servi#es Morgan Stanley "nvestment
Management (M"SM) %as established in the year 1HE< "t $rovides #ustomiIed asset
management servi#es and $rodu#ts to governments, #or$orations, $ension funds and non?
$rofit organiIations "ts servi#es are also e2tended to high net %orth individuals and retail
investors "n "ndia it is 'no%n as Morgan Stanley "nvestment Management 0rivate
/imited (MS"M "ndia) and its AMC is Morgan Stanley Mutual ,und (MSM,) !his is the
3@
first #lose end diversified e)uity s#heme serving the needs of "ndian retail investors
fo#using on a long?term #a$ital a$$re#iation
C?(2+ M6-6+2 F617
Chola Mutual ,und under the s$onsorshi$ of Cholamandalam "nvestment 1 ,inan#e
Com$any /td %as setu$ on Lanuary 5, 1HHE Cholamandalam !rustee Co /td is the
!rustee Com$any and AMC is Cholamandalam AMC /imited
LIC M6-6+2 F617
/ife "nsuran#e Cor$oration of "ndia set u$ /"C Mutual ,und on 1Hth Lune 1HGH "t
#ontributed *s 3 Crores to%ards the #or$us of the ,und /"C Mutual ,und %as
#onstituted as a !rust in a##ordan#e %ith the $rovisions of the "ndian !rust A#t, 1GG3
!he Com$any started its business on 3Hth A$ril 1HH6 !he !rustees of /"C Mutual ,und
have a$$ointed Leevan Bima Sahayog Asset Management Com$any /td as the
"nvestment Managers for /"C Mutual ,und
HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY
3E
!he mutual fund industry in "ndia started in 1H@5 %ith the formation of .nit !rust of
"ndia, at the initiative of the Dovernment of "ndia and *eserve Ban' the !he history
of mutual funds in "ndia #an be broadly divided into four distin#t $hases
F.,4- P?+40 E 1#!4-87
.nit !rust of "ndia (.!") %as established on 1H@5 by an A#t of 0arliament "t %as set u$
by the *eserve Ban' of "ndia and fun#tioned under the *egulatory and administrative
#ontrol of the *eserve Ban' of "ndia "n 1HEG .!" %as de?lin'ed from the *B" and the
"ndustrial 4evelo$ment Ban' of "ndia ("4B") too' over the regulatory and administrative
#ontrol in $la#e of *B" !he first s#heme laun#hed by .!" %as .nit S#heme 1H@6 At the
end of 1HGG .!" had *s@, EAA #rores of assets under management
S0'(17 P?+40 E 1#87-1##3 ;E1-,3 (5 P682.' S0'-(, F6174=
1HGE mar'ed the entry of non? .!", $ubli# se#tor mutual funds set u$ by $ubli# se#tor
ban's and /ife "nsuran#e Cor$oration of "ndia (/"C) and Deneral "nsuran#e Cor$oration
of "ndia (D"C) SB" Mutual ,und %as the first non? .!" Mutual ,und established in Lune
1HGE follo%ed by Canban' Mutual ,und (4e# GE), 0un-ab &ational Ban' Mutual ,und
(Aug GH), "ndian Ban' Mutual ,und (&ov GH), Ban' of "ndia (Lun HA), Ban' of Baroda
Mutual ,und (O#t H3) /"C established its mutual fund in Lune 1HGH %hile D"C had set
u$ its mutual fund in 4e#ember 1HHA At the end of 1HH5, the mutual fund industry had
assets under management of *s6E,AA6 #rores
T?.,7 P?+40 E 1##3-2$$3 ;E1-,3 (5 P,./+-0 S0'-(, F6174=
3G
9ith the entry of $rivate se#tor funds in 1HH5, a ne% era started in the "ndian mutual fund
industry, giving the "ndian investors a %ider #hoi#e of fund families Also, 1HH5
%as the year in %hi#h the first Mutual ,und *egulations #ame into being, under %hi#h all
mutual funds, e2#e$t .!" %ere to be registered and governed !he erst%hile Kothari
0ioneer (no% merged %ith ,ran'lin !em$leton) %as the first $rivate se#tor
mutual fund registered in Luly 1HH5 !he 1HH5 S(B" (Mutual ,und) *egulations %ere
substituted by a more #om$rehensive and revised Mutual ,und *egulations in 1HH@ !he
industry no% fun#tions under the S(B" (Mutual ,und) *egulations 1HH@
!he number of mutual fund houses %ent on in#reasing, %ith many foreign mutual funds
setting u$ funds in "ndia and also the industry has %itnessed several mergers and
a#)uisitions As at the end of Lanuary 3AA5, there %ere 55 mutual funds %ith total assets
of *s 1, 31,GA< #rores !he .nit !rust of "ndia %ith *s66, <61 #rores of assets under
management %as %ay ahead of other mutual funds
F(6,-? P?+40 E 4.1'0 F08,6+,3 2$$3
"n ,ebruary 3AA5, follo%ing the re$eal of the .nit !rust of "ndia A#t 1H@5 .!" %as
bifur#ated into t%o se$arate entities One is the S$e#ified .nderta'ing of the .nit !rust
of "ndia %ith assets under management of *s3H,G5< #rores as at the end of Lanuary 3AA5,
re$resenting broadly, the assets of .S @6 s#heme, assured return and #ertain other
s#hemes !he S$e#ified .nderta'ing of .nit !rust of "ndia, fun#tioning under an
administrator and under the rules framed by Dovernment of "ndia and does not #ome
under the $urvie% of the Mutual ,und *egulations
3H
!he se#ond is the .!" Mutual ,und /td, s$onsored by SB", 0&B, BOB and /"C "t is
registered %ith S(B" and fun#tions under the Mutual ,und *egulations 9ith the
bifur#ation of the erst%hile .!" %hi#h had in Mar#h 3AAA more than *sE@,AAA #rores Of
assets under management and %ith the setting u$ of a .!" Mutual ,und, #onforming to
the S(B" Mutual ,und *egulations, and %ith re#ent mergers ta'ing $la#e among
different $rivate se#tor funds, the mutual fund industry has entered its #urrent $hase of
#onsolidation and gro%th As at the end of Se$tember, 3AA6, there %ere 3H funds, %hi#h
manage assets of *s1<51AG #rores under 631 s#hemes
T?0 9,+*? .17.'+-04 -?0 9,(@-? (5 +440-4 (/0, -?0 30+,4
Sou
r#eJ A44('.+-.(1 (5 M6-6+2 F6174 .1 I17.+ ;AMFI=
5A
GROCTH OF MUTUAL FUNDS INDUSTRY IN INDIA
!he #on#e$t of mutual funds in "ndia dates ba#' to the year 1H@5 !he era bet%een 1H@5
and 1HGE mar'ed the e2isten#e of only one mutual fund #om$any in "ndia %ith *s @Ebn
assets under management (A.M), by the end of its mono$oly era, the .nit !rust of "ndia
(.!") By the end of the GAs de#ade, fe% other mutual fund #om$anies in "ndia too' their
$osition in mutual fund mar'et
!he ne% entries of mutual fund #om$anies in "ndia %ere SB" Mutual ,und, Canban'
Mutual ,und, 0un-ab &ational Ban' Mutual ,und, "ndian Ban' Mutual ,und, Ban' of
"ndia Mutual ,und
!he su##eeding de#ade sho%ed a ne% horiIon in "ndian mutual fund industry By the end
of 1HH5, the total A.M of the industry %as *s 6EAA6 bn !he $rivate se#tor funds
started $enetrating the fund families "n the same year the first Mutual ,und *egulations
#ame into e2istan#e %ith re?registering all mutual funds e2#e$t .!" !he regulations
%ere further given a revised sha$e in 1HH@
Kothari 0ioneer %as the first $rivate se#tor mutual fund #om$any in "ndia %hi#h has no%
merged %ith ,ran'lin !em$leton Lust after ten years %ith $rivate se#tor $layers
$enetration, the total assets rose u$ to *s 131GA< bn !oday there are 55 mutual fund
#om$anies in "ndia
51
SOME FACTS FOR THE GROCTH OF MUTUAL FUNDS IN INDIA
1AAB gro%th in the last @ years
&umber of foreign AMC7s is in the )ueue to enter the "ndian mar'ets
Our saving rate is over 35B, highest in the %orld Only #hanneliIing these
savings in mutual funds se#tor is re)uired
9e have a$$ro2imately 3H mutual funds %hi#h is mu#h less than .S having more
than GAA !here is a big s#o$e for e2$ansion
=B= and =C= #lass #ities are gro%ing ra$idly !oday most of the mutual funds are
#on#entrating on the =A= #lass #ities Soon they %ill find s#o$e in the gro%ing
#ities
Mutual fund #an $enetrate rurals li'e the "ndian insuran#e industry %ith sim$le
and limited $rodu#ts
S(B" allo%ing the M,=s to laun#h #ommodity mutual funds
(m$hasis on better #or$orate governan#e
!rying to #urb the late trading $ra#ti#es
"ntrodu#tion of ,inan#ial 0lanners %ho #an $rovide need based advi#e
R0'01- -,0174 .1 )6-6+2 5617 .1764-,3
53
!he most im$ortant trend in the mutual fund industry is the aggressive e2$ansion of the
foreign o%ned mutual fund #om$anies and the de#line of the #om$anies floated by the
nationaliIed ban's and smaller $rivate se#tor $layers
Many nationaliIed ban's got into the mutual fund business in the early nineties and got
off to a start due to the sto#' mar'et boom %as $revailing !hese ban's did not really
understand the mutual fund business and they -ust vie%ed it as another 'ind of ban'ing
a#tivity ,e% hired s$e#ialiIed staff and generally #hose to transfer staff from the $arent
organiIations !he $erforman#e of most of the s#hemes floated by these funds %as not
good Some s#hemes had offered guaranteed returns and their $arent organiIations had to
bail out these AMCs by $aying large amounts of money as a differen#e bet%een the
guaranteed and a#tual returns !he servi#e levels %ere also very bad Most of these
AMCs have not been able to retain staff, float ne% s#hemes et#
CHARACTERISTICS OF MUTUAL FUNDS
!he o%nershi$ is in the hands of the investors %ho have $ooled in their funds
"t is managed by a team of investment $rofessionals and other servi#e $roviders
!he $ool of funds is invested in a $ortfolio of mar'etable investments
!he investors share is denominated by Kunits7 %hose value is #alled as &et Asset
;alue (&A;) %hi#h #hanges everyday
!he investment $ortfolio is #reated a##ording to the stated investment ob-e#tives
of the fund
55
ADANTAGES OF INESTING IN MUTUAL FUNDS:
1 0ortfolio diversifi#ation
3 0rofessional management
5 *edu#tion in ris'
6 *edu#tion of transa#tion #osts
< /i)uidity
@ Convenien#e and fle2ibility
DISADANTAGES OF INESTING IN MUTUAL FUNDS:
1 &o #ontrol over #ostsJ Sin#e investors do not dire#tly, monitor the fund7s o$erations
they #annot #ontrol the #osts effe#tively *egulators therefore usually limit the e2$enses
of mutual funds
3 &o tailor made $ortfoliosJ Mutual fund $ortfolios are #reated and mar'eted by AMCs
into %hi#h investors invest !hey #annot #reate tailor made $ortfolios
5 Managing a $ortfolio of fundsJ As the numbers of mutual funds in#rease, in order to
tailor a $ortfolio for him, an investor may be holding a $ortfolio of funds, %ith the #osts
of monitoring them and using them, being in#urred by him
56
STRUCTURE OF MUTUAL FUND
!here are many entities involved and the diagram belo% illustrates the stru#ture of
mutual fundsJ
SEBI
!he regulation of mutual funds o$erating in "ndia falls under the $revie% of
authority of the S0'6,.-.04 +17 EB'?+190 B(+,7 (5 I17.+: (S(B") Any $erson
$ro$osing to set u$ a mutual fund in "ndia is re)uired under the S(B" (Mutual ,unds)
*egulations, 1HH@ to be registered %ith the S(B"
S*(14(,
!he s$onsor should #ontribute at least 6AB to the net %orth of the AMC :o%ever, if
any $erson holds 6AB or more of the net %orth of an AMC shall be deemed to be a
s$onsor and %ill be re)uired to fulfill the eligibility #riteria in the Mutual ,und
5<
*egulations !he s$onsor or any of its dire#tors or the $rin#i$al offi#er em$loyed by the
mutual fund should not be guilty of fraud or guilty of any e#onomi# offen#e
T,64-004
!he mutual fund is re)uired to have an inde$endent Board of !rustees, ie t%o third
of the trustees should be inde$endent $ersons %ho are not asso#iated %ith the s$onsors in
any manner An AMC or any of its offi#ers or em$loyees are not eligible to a#t as a
trustee of any mutual fund !he trustees are res$onsible for ? inter alia + ensuring that the
AMC has all its systems in $la#e, all 'ey $ersonnel, auditors, registrar et# have been
a$$ointed $rior to the laun#h of any s#heme
A440- M+1+90)01- C()*+13
!he s$onsors or the trustees are re)uired to a$$oint an AMC to manage the assets of
the mutual fund .nder the mutual fund regulations, the a$$li#ant must satisfy #ertain
eligibility #riteria in order to )ualify to register %ith S(B" as an AMC
1. !he s$onsor must have at least 6AB sta'e in the AMC
2. !he #hairman of the AMC is not a trustee of any mutual fund
3. !he AMC should have and must at all times maintain a minimum net %orth of Cr
1AA million
4. !he dire#tor of the AMC should be a $erson having ade)uate $rofessional
e2$erien#e
5@
". !he board of dire#tors of su#h AMC has at least <AB dire#tors %ho are not
asso#iate of or asso#iated in any manner %ith the s$onsor or any of its subsidiaries
or the trustees
T?0 T,+1450, A901-4
!he transfer agent is #ontra#ted by the AMC and is res$onsible for maintaining the
register of investors > unit holders and every day settlements of $ur#hases and redem$tion
of units !he role of a transfer agent is to #olle#t data from distributors relating to daily
$ur#hases and redem$tion of units
C64-(7.+1
!he mutual fund is re)uired, under the Mutual ,und *egulations, to a$$oint a
#ustodian to #arry out the #ustodial servi#es for the s#hemes of the fund Only institutions
%ith substantial organiIational strength, servi#e #a$ability in terms of #om$uteriIation
and other infrastru#ture fa#ilities are a$$roved to a#t as #ustodians !he #ustodian must
be totally delin'ed from the AMC and must be registered %ith S(B"
U1.- H(270,4
!hey are the $arties to %hom the mutual fund is sold !hey are ultimate benefi#iary of
the in#ome earned by the mutual funds
5E
TYPES OF MUTUAL FUNDS
B3 S-,6'-6,0
o O$en ? (nded S#hemes
o Close ? (nded S#hemes
o "nterval S#hemes
B3 I1/04-)01- O8H0'-./0
o Dro%th S#hemes
o "n#ome S#hemes
o Balan#ed S#hemes
o Money Mar'et S#hemes
O-?0, S'?0)04
o !a2 Saving S#hemes
o S$e#ial S#hemes
"nde2 S#hemes
Se#tor S$e#ifi# S#heme
A''(,7.19 -( S-,6'-6,0
O*01 E E1707 S'?0)04 An o$en + ended fund is one that is available for
subs#ri$tion all through the year !hese do not have a fi2ed maturity "nvestors
5G
#an #onveniently buy and sell units at &et Asset ;alue (&A;) related $ri#es !he
'ey feature of o$en + ended s#hemes is li)uidity
C2(40 E E1707 S'?0)04 A #lose + ended fund has a sti$ulated maturity
$eriod %hi#h generally ranging from 5 to 1< years !he fund is o$en for
subs#ri$tion only during a s$e#ified $eriod "nvestors #an invest in the s#heme at
the same time of the initial $ubli# issue and thereafter they #an buy and sell the
units of the s#heme on the sto#' e2#hanges %here they are listed "n order to
$rovide an e2it route to the investors, some #lose + ended funds give an o$tion of
selling ba#' the units to the mutual fund through $eriodi# re$ur#hase at &A;
related $ri#es
I1-0,/+2 S'?0)04 "nterval funds #ombine the features of o$en + ended and
#lose + ended s#hemes !hey are o$en for sales or redem$tion during $re?
determined intervals at their &A;
A''(,7.19 -( I1/04-)01- O8H0'-./0:
G,(@-? S'?0)04 !he aim of gro%th funds is to $rovide #a$ital a$$re#iation
over the medium to long term Su#h s#hemes normally invest a ma-ority of their
#or$us in e)uities "t has been $roven that returns from sto#'s are mu#h better
than the other investments had over the long term Dro%th s#hemes are ideal for
investors having a long term outloo' see'ing gro%th over a $eriod of time
I1'()0 S'?0)04 !he aim of the in#ome funds is to $rovide regular and steady
in#ome to investors Su#h s#hemes generally invest in fi2ed in#ome se#urities
5H
su#h as bonds, #or$orate debentures and government se#urities "n#ome funds are
ideal for #a$ital stability and regular in#ome
B+2+1'07 S'?0)04 !he aim of balan#ed funds is to $rovide both gro%th and
regular in#ome Su#h s#hemes $eriodi#ally distribute a $art of their earning and
invest both in e)uities and fi2ed in#ome se#urities in the $ro$ortion indi#ated in
their offer do#uments "n a rising sto#' mar'et, the &A; of these s#hemes may
not normally 'ee$ $a#e or fall e)ually %hen the mar'et falls !hese are ideal for
investors loo'ing for a #ombination of in#ome and moderate gro%th
M(103 M+,<0- S'?0)04 !he main aim of money mar'et funds is to $rovide
easy li)uidity, $reservation of #a$ital and moderate in#ome !hese s#hemes
generally invest in safe short term instruments su#h as treasury bills, #ertifi#ates
of de$osit, #ommer#ial $a$er and inter + ban' #all money *eturns on these
s#hemes may flu#tuate de$ending u$on the interest rates $revailing in the mar'et
!hese are ideal for #or$orate and individual investors as a means to $ar' their
sur$lus funds for short $eriods
O-?0, S'?0)04
T+B S+/.19 S'?0)04 !hese s#hemes offer ta2 rebates to the investors under
s$e#ifi# $rovisions of the "ndian "n#ome !a2 la%s as the government offers ta2
in#entives for investment in s$e#ified avenues "nvestments made in ()uity
/in'ed Saving S#hemes ((/SS) and 0ension S#hemes are allo%ed as dedu#tion
6A
u>s GG of the "n#ome !a2 A#t, 1H@1 !he A#t also $rovides o$$ortunities to
investors to save #a$ital gains
S*0'.+2 S'?0)04
o I170B S'?0)0 "nde2 funds attem$t to re$li#ate the $erforman#e of a
$arti#ular inde2 su#h as the BS( Sense2 or the &S( <A
o S0'-(, S*0'.5.' S'?0)0 Se#tor funds are those %hi#h invest e2#lusively
in a s$e#ified industry or a grou$ of industries or various segments su#h
as KA7 grou$ shares or initial $ubli# offerings
o B(17 S'?0)0 "t see's investment in bonds, debentures and debt related
instrument to generate regular in#ome flo%
FRE%UENTLY USED TERMS
A7/.4(, ? "s em$loyed by a mutual fund organiIation to give $rofessional advi#e on
the fund7s investments and to su$ervise the management of its asset
D./0,4.5.'+-.(1 E !he $oli#y of s$reading investments among a range of different
se#urities to redu#e the ris'
N0- A440- +260 ;NA= - &et Asset ;alue is the mar'et value of the assets of the
s#heme minus its liabilities !he $er unit &A; is the net asset value of the s#heme
divided by the number of units outstanding on the ;aluation 4ate
61
S+204 P,.'0 + "t is the $ri#e you $ay %hen you invest in a s#heme, also #alled Offer
0ri#e "t may in#lude a sales load
R0*6,'?+40 P,.'0 - "s the $ri#e at %hi#h a #lose?ended s#heme re$ur#hases its units
and it may in#lude a ba#'?end load !his is also #alled Bid 0ri#e
R070)*-.(1 P,.'0 ? "s the $ri#e at %hi#h o$en?ended s#hemes re$ur#hase their units
and #lose?ended s#hemes redeem their units on maturity Su#h $ri#es are &A; related
S+204 L(+7 E "t is a #harge #olle#ted by a s#heme %hen it sells the units, also #alled
K,ront?end7 load S#hemes that do not #harge a load are #alled K&o /oad7 s#hemes
FUTURE OF MUTUAL FUNDS IN INDIA
By 4e#ember 3AA6, "ndian mutual fund industry rea#hed *s 1, <A,<5E #rore "t is
estimated that by 3A1A Mar#h?end, the total assets of all s#heduled #ommer#ial ban's
should be *s 6A, HA,AAA #rore
!he annual #om$osite rate of gro%th is e2$e#ted 156B during the rest of the de#ade "n
the last < years %e have seen annual gro%th rate of HB A##ording to the #urrent gro%th
rate, by year 3A1A, mutual fund assets %ill be double
63
ULIP IS MUTUAL FUNDS
.nit /in'ed "nsuran#e 0oli#ies (./"0s) as an investment avenue are #losest to mutual
funds in terms of their stru#ture and fun#tioning As is the #ase %ith mutual funds,
investors in ./"0s is allotted units by the insuran#e #om$any and a net asset value
(&A;) is de#lared for the same on a daily basis
Similarly ./"0 investors have the o$tion of investing a#ross various s#hemes similar to
the ones found in the mutual funds domain, ie diversified e)uity funds, balan#ed funds
and debt funds to name a fe% Denerally s$ea'ing, ./"0s #an be termed as mutual fund
s#hemes %ith an insuran#e #om$onent
:o%ever it should not be #onstrued that barring the .146,+1'0 020)01- there is nothing
differentiating mutual funds from ./"0s4es$ite the seemingly #om$arable stru#tures
there are various fa#tors %herein the t%o differ
1. MODE OF INESTMENTI INESTMENT AMOUNTS
Mutual fund investors have the o$tion of either ma'ing lum$ sum investments or
investing using the systemati# investment $lan (S"0) route %hi#h entails #ommitments
over longer time horiIons !he minimum investment amounts are laid out by the fund
house
65
./"0 investors also have the #hoi#e of investing in a lum$ sum (single $remium) or
using the #onventional route, ie ma'ing $remium $ayments on an annual, half?yearly,
)uarterly or monthly basis "n ./"0s, determining the $remium $aid is often the starting
$oint for the investment a#tivity
!his is in star' #ontrast to #onventional insuran#e $lans %here the sum assured is the
starting $oint and $remiums to be $aid are determined thereafter
./"0 investors also have the fle2ibility to alter the $remium amounts during the $oli#y=s
tenure ,or e2am$le an individual %ith a##ess to sur$lus funds #an enhan#e the
#ontribution thereby ensuring that his sur$lus funds are gainfully investedO #onversely an
individual fa#ed %ith a li)uidity #run#h has the o$tion of $aying a lo%er amount (the
differen#e being ad-usted in the a##umulated value of his ./"0) !he freedom to modify
$remium $ayments at one=s #onvenien#e #learly gives ./"0 investors an edge over their
mutual fund #ounter$arts
2. E&PENSES
"n mutual fund investments, e2$enses #harged for various a#tivities li'e fund
management, sales and mar'eting, administration among others are sub-e#t to $re?
determined u$$er limits as $res#ribed by the Se#urities and (2#hange Board of "ndia ,or
e2am$le e)uity?oriented funds #an #harge their investors a ma2imum of 3<B $er annum
on a re#urring basis for all their e2$ensesO any e2$ense above the $res#ribed limit is
borne by the fund house and not the investors
66
Similarly funds also #harge their investors entry and e2it loads (in most #ases, either is
a$$li#able) (ntry loads are #harged at the timing of ma'ing an investment %hile the e2it
load is #harged at the time of sale
"nsuran#e #om$anies have a free hand in levying e2$enses on their ./"0 $rodu#ts %ith
no u$$er limits being $res#ribed by the regulator, ie the "nsuran#e *egulatory and
4evelo$ment Authority !his e2$lains the #om$le2 and at times =un%ieldy= e2$ense
stru#tures on ./"0 offerings !he only restraint $la#ed is that insurers are re)uired to
notify the regulator of all the e2$enses that %ill be #harged on their ./"0 offerings
(2$enses #an have far?rea#hing #onse)uen#es on investors sin#e higher e2$enses
translate into lo%er amounts being invested and a smaller #or$us being a##umulated
3. PORTFOLIO DISCLOSURE
Mutual fund houses are re)uired to statutorily de#lare their $ortfolios on a )uarterly basis,
albeit most fund houses do so on a monthly basis "nvestors get the o$$ortunity to see
%here their monies are being invested and ho% they have been managed by studying the
$ortfolio
!here is la#' of #onsensus on %hether ./"0s are re)uired to dis#lose their $ortfolios
4uring our intera#tions %ith leading insurers %e #ame a#ross divergent vie%s on this
issue
9hile one s#hool of thought believes that dis#losing $ortfolios on a )uarterly basis is
mandatory, the other believes that there is no legal obligation to do so and that insurers
are re)uired to dis#lose their $ortfolios only on demand
Some insuran#e #om$anies do de#lare their $ortfolios on a monthly>)uarterly basis
:o%ever the la#' of trans$aren#y in ./"0 investments #ould be a #ause for #on#ern
6<
#onsidering that the amount invested in insuran#e $oli#ies is essentially meant to $rovide
for #ontingen#ies and for long?term needs li'e retirementO regular $ortfolio dis#losures on
the other hand #an enable investors to ma'e timely investment de#isions
4. FLE&IBILITY IN ALTERING THE ASSET ALLOCATION
As %as stated earlier, offerings in both the mutual funds segment and ./"0s segment are
largely #om$arable ,or e2am$le $lans that invest their entire #or$us in e)uities
(diversified e)uity funds), a @AJ6A allotment in e)uity and debt instruments (balan#ed
funds) and those investing only in debt instruments (debt funds) #an be found in both
./"0s and mutual funds
"f a mutual fund investor in a diversified e)uity fund %ishes to shift his #or$us into a debt
from the same fund house, he #ould have to bear an e2it load and>or entry load On the
other hand most insuran#e #om$anies $ermit their ./"0 inventors to shift investments
a#ross various $lans>asset #lasses either at a nominal or no #ost (usually, a #ou$le of
s%it#hes are allo%ed free of #harge every year and a #ost has to be borne for additional
s%it#hes)
(ffe#tively the ./"0 investor is given the o$tion to invest a#ross asset #lasses as $er his
#onvenien#e in a #ost?effe#tive manner !his #an $rove to be very useful for investors, for
e2am$le in a bull mar'et %hen the ./"0 investor=s e)uity #om$onent has a$$re#iated, he
#an boo' $rofits by sim$ly transferring the re)uisite amount to a debt?oriented $lan
". TA& BENEFITS
6@
./"0 investments )ualify for dedu#tions under Se#tion GAC of the "n#ome !a2 A#t !his
holds %ell, irres$e#tive of the nature of the $lan #hosen by the investor On the other
hand in the mutual funds domain, only investments in ta2?saving funds (also referred to
as e)uity?lin'ed savings s#hemes) are eligible for Se#tion GAC benefits
Maturity $ro#eeds from ./"0s are ta2 free "n #ase of e)uity?oriented funds (for e2am$le
diversified e)uity funds, balan#ed funds), if the investments are held for a $eriod over 13
months, the gains are ta2 freeO #onversely investments sold %ithin a 13?month $eriod
attra#t short?term #a$ital gains ta2 P 1AB
Similarly, debt?oriented funds attra#t a long?term #a$ital gains ta2 P 1AB, %hile a short?
term #a$ital gain is ta2ed at the investor=s marginal ta2 rate 4es$ite the seemingly similar
stru#tures evidently both mutual funds and ./"0s have their uni)ue set of advantages to
offer As al%ays, it is vital for investors to be a%are of the nuan#es in both offerings and
ma'e informed de#isions
IN A NUTSHELL:
ULIP4 M6-6+2 F6174
"nvestment
amounts
4etermined by the investor
and #an be modified as %ell
Minimum investment amounts are
determined by the fund house
(2$enses
&o u$$er limits, e2$enses
determined by the insuran#e
#om$any
.$$er limits for e2$enses #hargeable
to investors have been set by the
regulator
0ortfolio
dis#losure &ot mandatoryQ Ruarterly dis#losures are mandatory
Modifying asset
allo#ation
Denerally $ermitted for free
or at a nominal #ost
(ntry>e2it loads have to be borne by
the investor
6E
!a2 benefits
Se#tion GAC benefits are
available on all ./"0
investments
Se#tion GAC benefits are available
only on investments in ta2?saving
funds
CHERE TO INEST
9hether to invest in ./"0 or to invest in M.!.A/ ,.&4 de$ends u$on #ustomer7s
future finan#ial goals 1 $resent investments
1 "f an investor is loo'ing for an insuran#e $oli#y and is ready to ta'e moderate
ris's, he must o$t for the ./"0 $lan A term of 1A years or less is advisable only
%hen one needs an insuran#e #over, other%ise if a #ustomer %ants to enter a
horiIon of 11?5A years, then ./"0 s#ores handsomely over Mutual funds
3 ./"0 is not meant for an irregular investor, as under a ./"0 $oli#y an investor
has to ma'e #om$ulsory savings An investor has to save regularly and invest
through the highs and lo%s in the mar'et So, for the investors %ho generally do
not save regularly and invest only %hen mar'et is high and disinvest %hen the
mar'et is lo%, mutual funds are the best o$tion
5 !he investors %ho %ant to invest only to en-oy short term gains and %ant to
s%it#h and %ithdra% their amounts fre)uently are not advised to invest in ./"0 as
there is usually a lo#' in $eriod of 5 or 6 years involved in ./"0 Su#h investors
should go in for Mutual funds %here they #an s%it#h anytime they %ant to
6 ,or lo% ris' ta'ing investors mutual funds #an be the best o$tion as the ris' #an
be diversified as there e2ists huge variety of s$e#ialiIed s#hemes under mutual
funds %hi#h #an be tailored a##ording to all the $ossible re)uirements and the
needs of the investor Su#h o$tions are not available under the ./"0 s#heme
6G
< !he servi#e #harges su#h as fund management #harges et# are usually lo% in the
#ase of ./"0 as #om$ared to mutual funds !hough the initial #harges under
./"0 are high but still the #umulative effe#t #omes out to be less than that of
Mutual funds, thus an investor %ho doesn7t %ant to shell out more on the
e2$enses and %ants safe investment should o$t for ./"0 as #om$ared to Mutual
funds
6H
RESEARCH
METHODOLOGY
<A
RESEARCH METHODOLOGY
!he survey $ro#ess involved t%o $hasesJ ,irst $hase in#luded identifi#ation and sele#tion
of the target audien#e to be studied and to determine the $arameters on %hi#h
res$ondents %ill -ustify their $referen#es !he audien#e %ere targeted and analyIed
basi#ally on the basis of the O''6*+-.(14 4emogra$hi#al information %as also ta'en in
order to 'no% the investment $atterns a##ording to the lo#ation, age, gender et# A
)uestionnaire %as designed to #olle#t the needed information from the res$ondents
"n the se#ond $hase data %as #olle#ted through )uestionnaire from more than 1AA
res$ondents %ithin AD*A region
RESEARCH OBJECTIES
!o 'no% the e2isting investment $attern among different o##u$ations and in#ome
!o 'no% the $resent $ortfolio of the investors, their $er#e$tions about different
investment s#hemes, their investment #on#erns, their $resent returns, and their
future e2$e#tations from different investment s#hemes
!o 'no% the $o$ularity and a##e$tability of the t%o $rodu#ts ie ./"0 and
M.!.A/ ,.&4S
!o analyIe %hi#h set of #ustomers should invest in ./"0 and Mutual ,unds as
$er their needs identified
<1
RESEARCH DESIGN
A resear#h design is a frame%or' or blue$rint for #ondu#ting the resear#h $ro-e#t "t
details the $ro#edures ne#essary for obtaining the information needed to fulfill the
resear#h ob-e#tives "n this $ro-e#t, the resear#h design is KD04',.*-./07 in nature as it
dealt %ith des#ribing the mar'et and the investment behavior of investors
DATA COLLECTION METHOD
Both $rimary and se#ondary data has been used in order to analyIe these $rodu#ts
!he $rimary data %as obtained through observation, dire#t #ommuni#ation %ith the
$eo$le and filling u$ of )uestionnaires
!he se#ondary data %as #olle#ted through
"nternet
Lournals and ne%s$a$ers
DATA COLLECTION INSTRUMENT
A semi stru#tured 'ind of )uestionnaire %as designed %hi#h #ontained both o$en? ended
and multi$le #hoi#e )uestions !he )uestionnaire %as designed to meet all the ob-e#tives
of the survey fully and hel$ed us in 'no%ing the needs of the #ustomers
<3
SAMPLING PLAN
SAMPLING TECHNI%UE: - J*andom Sam$lingS
SUREY AREA: - JAgraS

SAMPLE SIDE: - Sam$le siIe is 1AA
TOOLS OF ANALYSIS
!he res$onses that %ere generated during this e2er#ise %ere #onverted in the form of
$er#entages to have a #om$arative outloo', as the numbers itself #annot e2$lain the true
$i#ture !hese $er#entages %ere then re$resented through the sim$le tools li'e bar
gra$hs, $ie #harts
<5
ANALYSIS
K
INTERPRETATION
<6
COMPARATIE ANALYSIS OF MUTUAL FUNDS
AND ULIPS ON THE BASIS OF OCCUPATION:
C?+- 7( .1/04-(,4 *,050,L
BUSINESS
%. D( 3(6 .1/04-L
I1/04- (, N(- &o
As a B
of !otal
Mes 51 AE5GAH
&o 11 A3@1H1
!otal 63 1
I1-0,*,0-+-.(1
!he data #olle#ted #learly sho%s that the business #lass res$ondents have the a%areness
of the different investment o$tions available in the mar'et
R. C?+- +,0 3(6, .1/04-)01- '(1'0,14L
<<
I1/04-)01-
C(1'0,14 &o
As a B
of total
Asset 0ur#hase H A3HA53
Building Cash
*eserves 1A A533<G
*etirement 6 A13HA6
Others G A3<GA@
!otal 51 1
I1-0,*,0-+-.(1
Out of the total investors of the business #lass, ma-ority of them invests in the #on#ern of
building #ash reserves for e2$anding their business
% R+-0 -?0 5(22(@.19 .1/04-)01- 5+'-(,4 .1 3(6, (,70, (5 .)*(,-+1'0.
I1/04-)01-
F+'-(,4
;ery
"m$ortant "m$ortant
Some%hat
"m$ortant /ess "m$ortant
:igh returns 36 6 3 1
<@
Safety 1H G 6 A
/i)uidity G 1< < 5
!a2 free $ro#eeds 1@ H 5 5
,le2ibility 13 G E 6
77%
61%
26%
51%
39%
13%
26%
48%
29%
26%
6% 13%
16%
10%
22%
4%
10% 10%
13%
0%
20%
40%
60%
80%
100%
120%
High Returns Safety Liquidity Ta free
!r"#eeds
$%ei&i%ity
Less '(!"rtant
S"(e)hat '(!"rtant
'(!"rtant
*ery '(!"rtant
I1-0,*,0-+-.(1
!he business #lass see's high returns as they are 'no%n as high ris' ta'er ,or li)uidity
1 ta2 free $ro#eeds they have many different o$tions available in the mar'et
% Y(6, '6,,01- *(,-5(2.( '(14.4-4 (5L
PORTFOLIO &o
As a B
of total
Mutual ,unds @ A1H5<6
,i2ed 4e$osits G A3<GA@
./"0 < A1@13H
Share mar'ets H A3HA53
Dovernment
Se#urities 5 AAH@EE
<E
I1/04-)01- R+-.19 F+'-(,
Others A A
!otal 51 1
19%
26%
16%
29%
10%
0%
Portfolio
+utua% $unds
$ied ,e!"sits
-L'.
Share +ar/et
0se#s
1thers
I1-0,*,0-+-.(1
!he business #lass investors invest more in share mar'et be#ause it gives higher return in
shorter duration
% C.-? @?.'? '()*+13 7( 3(6 ?+/0 -?0 ULIP 4'?0)0L
ULIP
S'?0)0 &o
As a B
of total
"C"C" 1 A3
/"C 5 A@
Others 1 A3
< 1
<G
I1-0,*,0-+-.(1
,or investing in ./"0s the business #lass investors invests %ith /"C more than any other
0vt Com$any
% C?.'? -3*0 (5 5617 3(6 .1/04- .1L
T3*0 O5
F617 &o
As a B
of total
()uity 5 A@
4ebt 1 A3
Balan#ed 1 A3
!otal < 1
<H
I1-0,*,0-+-.(1
!he business #lass investors invest more in e)uity rather then debt, as in #ase of debt the
investor have to invest for a s$e#ifi# duration of time (long)

% H(@ )6'? ,0-6,14 +,0 3(6 90--.19 (1 3(6, ULIP .1/04-)01-4
+116+223L
R0-6,14 (1 ULIP &o
As a B of
!otal
Belo% 1AB A A
1AB?3AB 5 A@
3AB?5AB 1 A3
Above 5AB 1 A3
!otal < 1
@A
0%
60%
20%
20%
Returns on ULIP
2e%") 10%
10%320%
20%330%
4&"5e 30%
I1-0,*,0-+-.(1
"n ./"07s the average return an investor earns is 1A + 3AB, as the business #lass is not
mu#h a%are of the ./"07s $lan
% C?.'? )6-6+2 56174 +,0 3(6 .1/04-.19 .1 *,0401-23L
M.F C(. &o
As a B
of total
"C"C" 3 A55555
*elian#e 5 A<
Others 1 A1@@@E
!otal @ 1
@1
I1-0,*,0-+-.(1
,or investing in M,s the business #lass investors invests %ith *(/"A&C( be#ause it is
$er#eived as more reliable #om$any
% H(@ )6'? ,0-6,14 +,0 3(6 90--.19 (1 3(6, .1/04-)01-4 +116+223
;+**,(B.)+-023=L
R0-6,14 (1 M.F. &o
As a B
of
!otal
Belo% 1AB A A
1AB?3AB 5 A<
3AB?5AB 3 A55
Above 5AB 1 A1E
@3
!otal @ 1
I1-0,*,0-+-.(1
As the gra$h sho%s, the investors of business #lass earned 3A?5AB return as #om$ared to
./"0 as they more a%are and the $ro$ortion of invested amt is also high than ./"0s
SERICE
% D( 3(6 .1/04-L
I1/04- (, N(- &o As a B of total
Mes 6A A@GH@@
&o 1G A51A56
!otal <G 1
@5
I1-0,*,0-+-.(1
As the gra$h sho%s, the ma-ority of the servi#e #lass $eo$le invest their sur$lus in any of
the investment o$tion available in the mar'et
% C?+- +,0 3(6, .1/04-)01- '(1'0,14L
I1/04-)01- C(1'0,14 &o As a B of total
"n#ome re$la#ement 3 AA<
Asset 0ur#hase @ A1<
Building Cash *eserves 1@ A6
*etirement @ A1<
,unding for Children @ A1<
Others 6 A1A
!otal 6A 1
@6
5%
15%
40%
15%
15%
10%
Investment Concerns
'n#"(e Re!%a#e(ent
4sset .ur#hase
2ui%ding 6ash Reser5es
Retire(ent
$unding f"r 6hi%dren
1thers
I1-0,*,0-+-.(1
As the gra$h sho%s, the servi#e #lass invests more for building their #ash reserves, for
their retirement benefits, and for the funding for their #hildren
% R+-0 -?0 5(22(@.19 .1/04-)01- 5+'-(,4 .1 3(6, (,70, (5 .)*(,-+1'0.
I1/04-)01- F+'-(,
;ery
"m$ortant "m$ortant
Some%hat
"m$ortant /ess "m$ortant
:igh returns 35 1A < 3
Safety 31 16 6 1
/i)uidity 13 3A @ 3
!a2 free $ro#eeds H 3A G 5
,le2ibility 1< 1@ < 6
@<
57%
52%
30%
23%
38%
25% 35%
50%
50%
40%
13%
10%
15%
20%
12%
5%
3%
5%
7%
10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
High returns Safety Liquidity Ta free
!r"#eeds
$%ei&i%ity
Less '(!"rtant
S"(e)hat '(!"rtant
'(!"rtant
*ery '(!"rtant
I1-0,*,0-+-.(1
As the gra$h sho%s, the servi#e #lass gives more em$hasis on the higher returns as %ell
as their safety for their future
% Y(6, '6,,01- *(,-5(2.( '(14.4-4 (5L
PORTFOLIO &o As a B of total
Mutual ,unds H A33<
,i2ed 4e$osits H A33<
./"0 G A3
Share mar'ets @ A1<
Dovernment Se#urities < A13<
Others 5 AAE<
!otal 6A 1
@@
22%
22%
20%
15%
13%
8%
Portfolio
+utua% $unds
$ied ,e!"sits
-L'.
Share (ar/ets
0"5ern(ent Se#urities
1thers
I1-0,*,0-+-.(1
!he servi#e #lass has more a%areness of ./"0s and mutual funds than the business #lass
1 they are also lo% ris' ta'er so they invest more in safe investment o$tions
% C.-? @?.'? '()*+13 7( 3(6 ?+/0 -?0 ULIP 4'?0)0L
ULIP S'?0)0 &o
As a B
of total
"C"C" 5 A5E<
/"C 5 A5E<
Others 3 A3<
!otal G 1
@E
I1-0,*,0-+-.(1
,or investing in ./"0s the servi#e #lass investors also invests %ith /"C more than any
other 0vt Com$any
% C?.'? -3*0 (5 5617 3(6 .1/04- .1L
T3*0 (5 F617 &o
As a B
of total
()uity 6 A<
4ebt 1 A13<
Balan#ed 5 A5E<
!otal G 1
@G
I1-0,*,0-+-.(1
As the gra$h sho%s, the servi#e #lass invests less in e)uity funds and more in balan#ed
funds as #om$ared to business #lass be#ause they are lo% ris' ta'er
% H(@ )6'? ,0-6,14 +,0 3(6 90--.19 (1 3(6, ULIP .1/04-)01-4
+116+223L
R0-6,14 (1 ULIP &o
As a B
of
!otal
Belo% 1AB 1 A13<
1AB?3AB 6 A<
3AB?5AB 3 A3<
Above 5AB 1 A13<
!otal G 1
@H
12%
50%
25%
13%
Returns on ULIP
2e%") 10%
10%320%
20%330%
4&"5e 30%
I1-0,*,0-+-.(1 As the gra$h sho%s, the servi#e #lass earned lA?3AB return less than
business #lass be#ause they are lo% ris' ta'er, but they earned 3A?5AB return more than
business #lass be#ause the $ro$ortion amount of investing in ./"0 is more than business
#lass as they more a%are as #om$ared to business #lass
% C?.'? )6-6+2 56174 +,0 3(6 .1/04-.19 .1 *,0401-23L
M.F
C(. &o
As a B
of total
"C"C" 1 A11111
*elian#e 5 A55555
Others < A<<<<@
!otal H 1
EA
I1-0,*,0-+-.(1
!he servi#e #lass invests more in that #om$any %hi#h has a tie u$ %ith their #om$any for
reliability ie the $ro$ortion of others is more in servi#e #lass as #om$ared to business
#lass
% H(@ )6'? ,0-6,14 +,0 3(6 90--.19 (1 3(6, .1/04-)01-4 +116+223
;+**,(B.)+-023=L
R0-6,14 (1 M.F. &o
As a
B of
!otal
Belo% 1AB 1 A111
1AB?3AB < A<<@
3AB?5AB 3 A333
Above 5AB 1 A111
!otal H 1
E1
I1-0,*,0-+-.(1
As the gra$h sho%s, the servi#e #lass investors earned 1A?3AB more 1 3A?5AB less as
#om$ared to business #lass be#ause their $ro$ortion of amt invested in mutual funds is
less as #om$ared to other investment o$tions available in the mar'et
COMPARATIE ANALYSIS OF MUTUAL FUNDS AND
ULIPS ON THE BASIS OF INCOME: C?+- 7( .1/04-(,4
*,050,L
B02(@ 2 2+<?4 I +116)
% D( 3(6 .1/04-L
I1/04- (, N(- &o
As a B
of !otal
Mes H A6<
&o 11 A<<
!otal 3A 1
E3
45%
55%
Invest or Not
7es
8"
I1-0,*,0-+-.(1 As the gra$h sho%s, the investors of this in#ome grou$ (Belo% 3) don7t
$refer to invest in the mar'et as they are at their initial stage of their #arrer and also has
lo% in#ome
% C?+- +,0 3(6, .1/04-)01- '(1'0,14L
I1/04-)01-
F+'-(,4
;ery
"m$ortant "m$ortant
Some%hat
"m$ortant /ess "m$ortant
:igh returns < 5 1 A
Safety 1 1 < 3
/i)uidity E 1 1 A
!a2 free $ro#eeds A A 1 G
,le2ibility 6 5 1 1
E5
I1-0,*,0-+-.(1
!he main $ur$ose of this in#ome grou$ investors is to invest their money is to get higher
returns along %ith they $refer li)uidity
% R+-0 -?0 5(22(@.19 .1/04-)01- 5+'-(,4 .1 3(6, (,70, (5 .)*(,-+1'0.
PORTFOLIO &o
As a B
of total
Mutual ,unds 5
A5555
5
,i2ed 4e$osits 3
A3333
3
./"0 1
A1111
1
Share mar'ets 1
A1111
1
Dovernment 3 A3333
E6
Se#urities 3
Others A A
!otal H 1
I1-0,*,0-+-.(1
!his in#ome grou$ has less 'no%ledge about the mar'et so they invest more in mutual
funds as they totally de$end on fund managers
B0-@001 2 E " L+<?4I+116)
% D( 3(6 .1/04-L
I1/04- (, N(- &o
As a B
of !otal
Mes 5G AE@
&o 13 A36
!otal <A 1
E<
I1-0,*,0-+-.(1
,or getting more or #an say to multi$ly their in#ome, this in#ome grou$ invest more
% C?+- +,0 3(6, .1/04-)01- '(1'0,14L
I1/04-)01- C(1'0,14 &o As a B of total
Asset 0ur#hase 1A A3@51<
Building Cash *eserves 15 A56311
*etirement 6 A1A<3@
,unding for Children 5 AAEGH<
Others G A31A<3
!otal 5G 1
E@
I1-0,*,0-+-.(1
(very investor of this in#ome grou$ invest its sur$lus for building their #ash reserves and
if #onsider the business #lass they invest also for the assets $ur#hase
% R+-0 -?0 5(22(@.19 .1/04-)01- 5+'-(,4 .1 3(6, (,70, (5 .)*(,-+1'0.
I1/04-)01- F+'-(,
;ery
"m$ortant "m$ortant
Some%hat
"m$ortant /ess "m$ortant
:igh returns 1H 11 @ 3
Safety 33 16 1 1
/i)uidity 13 1G @ 3
!a2 free $ro#eeds H 3A G 1
,le2ibility 1< 1@ < 3
EE
I1-0,*,0-+-.(1
As they fall in moderate in#ome grou$, they invest for their safe future
% Y(6, '6,,01- *(,-5(2.( '(14.4-4 (5L
PORTFOLIO &o As a B of total
Mutual ,unds G A31A<3
,i2ed 4e$osits 11 A3GH6E
./"0 @ A1<EGH
Share mar'ets 6 A1A<3@
Dovernment Se#urities E A1G631
Others 3 AA<3@5
!otal 5G 1
EG
I1-0,*,0-+-.(1
As the investors of this grou$ are medium ris' ta'er and also #on#ern more about safety,
so they more invest in safe invest o$tions
% C.-? @?.'? '()*+13 7( 3(6 ?+/0 -?0 ULIP 4'?0)0L
ULIP S'?0)0 &o
As a B
of total
"C"C" 3 A55
/"C 5 A<A
Others 1 A1E
!otal @ 1
EH
I1-0,*,0-+-.(1
As the gra$h sho%s, this grou$ invests in ./"0s of /"C be#ause /"C is reno%ned as
#om$ared to others
% C?.'? -3*0 (5 5617 3(6 .1/04- .1L
T3*0 (5 F617 &o
As a B
of total
()uity 3 A55
4ebt 1 A1E
Balan#ed 5 A<A
!otal @ 1
GA
I1-0,*,0-+-.(1
!his grou$ of investors invests more in balan#ed funds be#ause they don7t %ant to ta'e
mu#h more ris'
% H(@ )6'? ,0-6,14 +,0 3(6 90--.19 (1 3(6, ULIP .1/04-)01-4
+116+223L
R0-6,14 (1 ULIP &o
As a B
of
!otal
Belo% 1AB A A
1AB?3AB 5 A<
3AB?5AB 3 A55
Above 5AB 1 A1E
!otal @ 1
G1
I1-0,*,0-+-.(1
As the gra$h sho%s, investors earned more 1A?3AB return be#ause they invest more in
balan#ed funds %hi#h have returns but less if it is #om$ared %ith e)uity funds
% C?.'? )6-6+2 56174 +,0 3(6 .1/04-.19 .1 *,0401-23L
M.F
C(. &o
As a B
of total
"C"C" 1 A15
*elian#
e 6 A<A
Others 5 A5E
!otal G 1
G3
I1-0,*,0-+-.(1
As the gra$h sho%s, investors $refer relian#e more as they don7t have mu#h 'no%ledge
about the other mutual funds o$tion available in the mar'et
% H(@ )6'? ,0-6,14 +,0 3(6 90--.19 (1 3(6, .1/04-)01-4 +116+223
;+**,(B.)+-023=L
R0-6,14 (1 M.F. &o
As a B
of
!otal
Belo% 1AB A A
1AB?3AB 6 A<A
3AB?5AB 5 A5E
Above 5AB 1 A15
!otal G 1
G5
I1-0,*,0-+-.(1
As the gra$h sho%s, the investors earned 3A?5AB retun more as #om$ared to ./"0
be#ause they are more a%are, and it is the safe investment o$tion as #om$ared to ./"0s
so they invest more $ro$ortion of amt in this
ABOE " LAAHS I +116)
% D( 3(6 .1/04-L
I1/04- (, N(- &o
As a B
of !otal
Mes 36 AG
&o @ A3
!otal 5A 1
G6
I1-0,*,0-+-.(1
!his grou$ invests more in mar'et be#ause they are more a%are, high ris' ta'er, and their
investment amt is also high
% C?+- +,0 3(6, .1/04-)01- '(1'0,14L
I1/04-)01- C(1'0,14 &o As a B of total
"n#ome re$la#ement 3 AA@
Asset 0ur#hase < A1E
Building Cash *eserves 13 A6
*etirement @ A3
,unding for Children 5 A1A
Others 3 AAE
!otal 5A 1
G<
I1-0,*,0-+-.(1
(very investor of this in#ome grou$ invest its sur$lus for building their #ash reserves and
if #onsider the business #lass they invest also for the assets $ur#hase
% R+-0 -?0 5(22(@.19 .1/04-)01- 5+'-(,4 .1 3(6, (,70, (5 .)*(,-+1'0.
I1/04-)01-
F+'-(,4
;ery
"m$ortant "m$ortant
Some%hat
"m$ortant /ess "m$ortant
:igh returns 3A G 3 A
Safety 1G @ 6 3
/i)uidity 1E E < 1
!a2 free $ro#eeds 35 < 1 1
,le2ibility 13 G @ 6
G@
I1-0,*,0-+-.(1
As they #ome under the high in#ome grou$ so they invest in a manner %hi#h gives them
dual benefit ie their investment benefits and ta2 benefits
% Y(6, '6,,01- *(,-5(2.( '(14.4-4 (5L
PORTFOLIO &o
As a B
of total
Mutual ,unds @ A3A
,i2ed 4e$osits 6 A15
./"0 E A35
Share mar'ets 1A A56
Dovernment
Se#urities 3 AAE
Others 1 AA5
!otal 5A 1
GE
20%
13%
23%
34%
7% 3%
PORTFOLIO
+utua% $unds
$ied ,e!"sits
-L'.
Share (ar/ets
0"5ern(ent Se#urities
1thers
I1-0,*,0-+-.(1
As the gra$h sho%s, the investors of this grou$ invest more in share mar'et then ./"0s
be#ause they high ris' ta'er and also a%are from ./"0s in a $ro$er manner
% C.-? @?.'? '()*+13 7( 3(6 ?+/0 -?0 ULIP 4'?0)0L
ULIP
S'?0)0 &o
As a B
of total
"C"C" 3 A3H
/"C 6 A<E
Others 1 A16
E 1
GG
I1-0,*,0-+-.(1
As the gra$h sho%s, investors of this grou$ invests more in ./"0s of /"C 1 less %ith
"C"C" as #om$ared to the in#ome grou$ of 3?5 la'hs be#ause this grou$ has age grou$ 5<
1 above and they have more trust on /"C rather than others
% C?.'? -3*0 (5 5617 3(6 .1/04- .1L
T3*0 (5 F617 &o
As a B
of total
()uity 6 A<E
4ebt 1 A16
Balan#ed 3 A3H
E 1
GH
I1-0,*,0-+-.(1
!his grou$ invests more in e)uity be#ause they are high ris' ta'er
% H(@ )6'? ,0-6,14 +,0 3(6 90--.19 (1 3(6, ULIP .1/04-)01-4
+116+223L
R0-6,14 (1 ULIP &o
As a B
of
!otal
Belo% 1AB A A
1AB?3AB 5 A65
3AB?5AB 3 A3H
Above 5AB 3 A3G
E 1
HA
I1-0,*,0-+-.(1
As they are high ris' ta'ers so they invest more in share mar'et indire#tly through ./"0s
and also have more sur$lus to invest ie they earned above 5AB return more
% C?.'? )6-6+2 56174 +,0 3(6 .1/04-.19 .1 *,0401-23L
M.F C(. &o
As a B
of total
"C"C" 1 A1E
*elian#e 5 A<
Others 3 A55
!otal @ 1
H1
I1-0,*,0-+-.(1 !he average age of the investors under this in#ome grou$ is 5< 1 above
5< so, the more e2$erien#e they have, more a%are about the other mutual funds o$tions
available in the mar'et
% T?0 ,0-6,14 +,0 3(6 90--.19 (1 3(6, .1/04-)01-4 +116+223
;+**,(B.)+-023=L
R0-6,14 (1 M.F. &o
As a B
of
!otal
Belo% 1AB A A
1AB?3AB 5 A<A
3AB?5AB 3 A55
Above 5AB 1 A1E
@ 1
H3
I1-0,*,0-+-.(1 As the gra$h sho%s, the investor earned 1A?3AB return more and above
5AB less be#ause they are more a%are from ./"0s, return on ./"0s is more as #om$ared
mutual funds so they $refer mutual funds less as #om$ared to ./"0s
LIMITATIONS OF THE STUDY
&o study is free from limitations !he limitations of this study #an beJ
Sam$le siIe ta'en is small and may not be suffi#ient to $redi#t the results %ith
1AAB a##ura#y
!he result is based on $rimary and se#ondary data that has its o%n limitations
!he study is #onfined to the 'no%ledge and s'ills of the resear#her
Cost #onstraints
Area of the resear#h is limited
Study #annot be generaliIed as it is for the shorter duration of time
H5
H6
FINDINGS
FINDINGS
OCCUPATION
!o begin %ith the nature of o##u$ation %as divided broadly into 3 #ategoriesJ
1 Business
3 Servi#es
!he study sho%sJ
H<
Almost <GB of $eo$le %ere into servi#e and 63B %ere into business, either
$ro$rietorshi$ or $artnershi$
BUSINESS
!he sam$le #onsisted of <A B having in#ome bet%een *s 3 la'h to *s < la'h 55B had
in#ome greater than *s < la'h "t #an be seen that a large amount of $eo$le in business
are investing (E6B) But the investments are basi#ally in 5.B07 70*(4.-4 and 4?+,0
)+,<0-4 !here is some la#' of a%areness of the $rodu#ts li'e ./"0 and Mutual funds as
#an be seen that only 1@B of $eo$le are holding ./"0 $oli#y and 1H B are having
Mutual ,unds !he $rime #on#ern of this segment for investing is to build #ash reserves
(53B) and $ur#hase assets (3HB)
!his #lass (EEB) #onsiders :igh *eturns as very im$ortant investment fa#tor %hile only
3@B /i)uidity %ith the same im$ortan#e
"n the ./"0s, %e find /"C to be dominating %ith @A B of the mar'et shareO "C"C" is
se#ond most $referred #om$any %ith 3A B share @AB of the $eo$le investing in ./"0
invest in ()uity !y$e ,und, indi#ating their $referen#e for high returns as %ell as %ell as
*is' !oleran#e
"n Mutual ,unds %e find that 1H B $eo$le investing in Mutual ,unds out of %hi#h <AB
have invested %ith *elian#e and 55B %ith "C"C" as se#ond $referen#e
H@
SERICE
!he sam$le #onsisted of @A B having in#ome bet%een *s 3 la'h to *s < la'h 3@B had
in#ome greater than *s < la'h
"t #an be seen that @HB $eo$le in servi#es are invested their money "n this segment the
main #on#ern of investing is to build #ash reserves !he ma-ority of their
$ortfolio #onsists of M6-6+2 F6174 (33B) K F.B07 D0*(4.-4 (33B) !his
segment is #om$aratively better a%are of ./"0s !he *is' !oleran#e is
also lo% as only 1<B invest in share mar'ets
!his #lass (<EB) #onsiders :igh *eturns as very im$ortant investment fa#tor %hile only
35B !a2 free $ro#eeds %ith the same im$ortan#e
"n the ./"0s %e find /"C 1 "C"C" dominating the mar'et %ith 5GB 1 5EB share and
others has 3<B $resen#e 9e find the $referen#e for ()uity !y$e ,und de#lines to <AB
1 for balan#ed in#rease to 5E B %hen #om$ared %ith Business #lass , indi#ating their
$referen#e for lo% *is' !oleran#e
"n Mutual ,unds %e find that 35 B $eo$le investing in Mutual ,unds out of %hi#h <5 B
have invested %ith others (,ran'lin, :SBC, SB" and many more) and *elian#e %ith 55B
#ome as se#ond $referen#e
INCOME
!o begin %ith the nature of in#ome %as divided broadly into 5 #ategoriesJ
1 Belo% 3 la'hs > annum
3 B>9 3?< /a'hs > annum
HE
5 Above < /a'h >s annum
!he study sho%sJ
Almost <AB of $eo$le belongs to the 3?< la'hs in#ome grou$ and 5AB of $eo$le
belongs to the Above < la'hs in#ome grou$ and 3AB of $eo$le belongs to the Belo%
3 la'hs
B02(@ 2 2+<?4I+116)
"t #an be seen that 6<B $eo$le of this in#ome grou$ are invested their money be#ause
they are at their initial stage of their #arrer and also has lo% in#ome and they don7t $refer
to invest in the mar'et
!he ma-ority of their $ortfolio #onsists of M6-6+2 F6174 (33B) K F.B07 D0*(4.-4
(33B) !his segment is #om$aratively better a%are of M,s !he *is'
!oleran#e is also lo%
!his #lass (<@B) #onsiders /i)uidity as very im$ortant investment fa#tor
!his grou$ is not $referring in investing in the mar'et be#ause the a%areness is very
$oor
BIC 2-" L+<?4 I +116)
"t #an be seen that E@B $eo$le of this in#ome grou$ are invested their money for getting
more or #an say to multi$ly their in#ome, this in#ome grou$ invest more
HG
"n this segment the main #on#ern of investing is to building #ash reserves !he ma-ority
of their $ortfolio #onsists of M6-6+2 F6174 (31B) K F.B07 D0*(4.-4
(3HB) !his segment is #om$aratively better a%are of ./"0s 1 M,s !he
*is' !oleran#e is also medium
!his #lass (<GB) #onsiders safety as very im$ortant investment fa#tor %hile only <AB
:igh returns %ith the same im$ortan#e
"n the ./"0s %e find /"C 1 "C"C" dominating the mar'et %ith <AB 1 55B share and
others has 1EB $resen#e 9e find the $referen#e for ()uity !y$e ,und to 55B 1 for
balan#ed to <A B, indi#ating their $referen#e for medium *is' !oleran#e
"n Mutual ,unds %e find *(/"A&C( dominating the mar'et %ith <AB share and others
(,ran'lin, :SBC, SB" and many more) has 5EB $resen#e
"nvestors earned more 1A?3AB return be#ause they invest more in balan#ed funds %hi#h
have returns but less if it is #om$ared %ith e)uity funds
!he investors earned 3A?5AB retun more as #om$ared to ./"0 be#ause they are more
a%are, and it is the safe investment o$tion as #om$ared to ./"0s so they invest more
$ro$ortion of amt in M,s
ABOE " LAAHS I +116)
"t #an be seen that GAB $eo$le of this in#ome grou$ are invested as they have more
sur$lus to invest
HH
"n this segment the main #on#ern of investing is to building #ash reserves !he ma-ority
of their $ortfolio #onsists of S?+,0 M+,<0- (56B) K ULIP4 (35B) !his
segment is #om$aratively better a%are of ./"0s than M,s !he *is'
!oleran#e is also high
!his #lass (EEB) #onsiders !a2 free $ro#eeds as very im$ortant investment fa#tor %hile
only @EB :igh returns %ith the same im$ortan#e
"n the ./"0s %e find /"C 1 "C"C" dominating the mar'et %ith <EB 1 3HB share and
others has 1EB $resen#e 9e find the $referen#e for ()uity !y$e ,und to <EB,
indi#ating their $referen#e for high *is' !oleran#e
"n Mutual ,unds %e find *(/"A&C( dominating the mar'et %ith <AB share and others
(,ran'lin, :SBC, SB" and many more) has 5EB $resen#e
"nvestors earned more above 5AB return be#ause they invest more in e)uity funds
1AA
RECOMMENDATIONS
K
CONCLUSION
RECOMMENDATIONS
1A1
!he business segment #an be targeted for ./"0 (as an investment $rodu#t) and
Mutual funds as these $rodu#ts are offering high returns and safety %hi#h is the ma-or
#on#ern of this segment !he need is to $romote ./"0 as a better $rodu#t than the
,47s and mutual fund #an be $romoted in lieu of the share mar'ets
!he servi#e #lass #an be a $otential #ustomer both for the ./"0 and Mutual ,unds
./"0 needs to be $romoted as an insuran#e $rodu#t and #an be sold em$hasiIing the
im$ortan#e and need of insuran#e !his segment is already investing into Mutual
funds, thus the ban's needs to $romote its mutual funds by $romising the #ustomers
higher returns and safety than the others
!he investors of the in#ome grou$ belo% 3 la'hs don7t $refer investment so the ban's
need to $romote both ./"0s and M,s as best invest o$tions
!he investors of the in#ome grou$ b>% 3?< la'hs $refer to invest in mutual funds
more as #om$ared to ./"0s be#ause they are medium ris' ta'er so the ban's need to
$romote the ./"0s as safer investment o$tion among this grou$
!he investors of the in#ome grou$ above < la'hs $refer to invest more in ./"0s
e)uity funds be#ause they %ant to earn more return in short duration So the ban's
need to $romote their mutual funds s#hemes among this grou$ as high return
investment o$tion
CONCLUSION
1A3
,rom above analysis and survey %e #an #on#lude as follo%sJ
A%areness of ./"0 is in#reasing as more number of $rivate $layers are entering
in life
insuran#e industry
Mutual ,und is also getting more and more famous in "ndian mar'et as many
$rivate
#om$anies innovating ne% funds as the investors demand
./"0 differentiate from Mutual fund in res$e#t of "nsuran#e #over
"nvestors in ./"0 %ill be getting the advantage of life insuran#e #over
0eo$le are turning to%ards the ./"0 as a good investment o$tion but as ./"0 is
in its starting $hase so #ustomers $refer only big brands
Mutual fund is having good gro%th but many #ustomers from lo% in#ome grou$
don7t have any 'no%ledge about Mutual fund !hey thin' it is very ris'y
!here is a need for insurers to underta'e a demand audit in order to understand
%hat the 0oli#y holder %ants and needs
4eriving the right feedba#' from #ustomers and bringing out innovative $rodu#ts
%hi#h #ater to #ustomer demands %ill go a long %ay in ta$$ing the mar'et
$otential of the insuran#e and Mutual fund se#tor
/ife insuran#e should go for innovating more and more $rodu#ts and im$roving
the distribution #hannels as $er the area of sales
1A5
BIBLIOGRAPHY
BOOAS:
1A6
1. I17.+1 M6-6+2 F6174 H+178((< 83 S+1<+,+1 S.
2. I1/04-)01- *(2.'3 +17 *0,5(,)+1'0 (5 M6-6+2 F6174 83 B+,6+
2$$3.
3. M6-6+2 56174 .1 I17.+ 83 S+7?+<> 2$$".
CEBSITES:
1 ?--*:II@@@..2(/0.17.+.'()I5.1+1'0I8+1<I.170B.?-)2
3 @@@./+260,040+,'?(12.10.'()
3. @@@.9((920.'()
%UESTIONNAIRE
N+)0: MMMMMMMMMMMMMM C(1-+'- N(. MMMMMMMMMMM A90: MMMMMM
1A<
1 O''6*+-.(1J Dovernment Salaried Business others (s$e#ify) TTTT
3 9hat is Mour F+).23N4 A116+2 I1'()0 ;R4. L+<?4=J Belo% 3 3 ?< above <
5 :o% many de$endents you have8 &one 1 3 More than 3
6 4o you invest8 Y04 N( .5 304> @?+- are your investment '(1'0,148
"n#ome re$la#ement at death>disability Building Cash reserves *etirement
Asset 0ur#hase funding for #hildren OthersTTTTTTTTTTTTTTTTTTTTT
< 4o you have a L.50 I146,+1'0 C(/0,8 Mes &o
@ *ate the follo%ing investment fa#tors in your order of im$ortan#e
;ery "m$ortant K17 "m$ortant K37 Some%hat "m$ortant K57 /ess "m$ortant K67
E Mour #urrent $ortfolio #onsists of8
Share Mar'ets ,i2ed 4e$osits Dovernment Se#urities Mutual ,unds ./"0
Others (0lease s$e#ify) TTTTTTTTTTTT
1A@
S.NO
PARAMETERS
RATING
1 :igh *eturns 1 3 5 6
3 Safety 1 3 5 6
5 /i)uidity 1 3 5 6
6 !a2 ,ree 0ro#eeds 1 3 5 6
< ,le2ibility 1 3 5 6
A--0)*- ;%.8 E %. 1$= .5 3(6 .1/04- .1 ULIP 4'?0)04
G 9ith %hi#h #om$any do you have the ./"0 s#heme8 /"C A;";A "C"C"
0*.4(&!"A/ BALAL A//"A&U O!:(*S TTTTTTTTT
H 9hi#h ty$e of fund you invest in8 ()uity 4ebt Balan#ed
1A :o% mu#h returns are you getting on your ./"0 investments annually
(a$$ro2imately)8 Belo% 1AB 1AB ? 3A B 3AB?5AB above 5AB
A--0)*- ;%.11 E %. 12= .5 3(6 .1/04- .1 M6-6+2 F6174
11 9hi#h mutual funds are you investing in $resently8 TTTTTTTTTTTTTTTTTTTTTTT
13 :o% mu#h returns are you getting on your investments annually (a$$ro2imately)8
Belo% 1AB 1AB ? 3A B 3AB?5AB above 5AB
1AE