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Under the guidance of Submitted By

Mr Dhiraj Jain Garima Sankhla
M.B.A (Part-II)


1. Acknowledgement

2. Preface

3. Executive summary

4. Chapter:- 1
Industry Profile
5. Chapter:- 2
Company Profile
6. Chapter :- 3
Research Methodology
7. Chapter:- 4
Data Interpretation
8. Chapter:- 5
Conclusions, Suggestions & Limitations

9. Chapter:- 6 Questionnaire

10. Chapter:- 7 Bibliography


Research project in M.B.A. curriculum is very important step in the ladder of M.B.A.
It provide a real aspect to this degree. So it is my privilege to thank my university to
include research project in M.B.A. program.

Now I take the opportunity to acknowledge those who have made their corporation
during the course of my research. I wish to express my sincere gratitude toward

I am extremely grateful & thankful to Mr. Dhiraj Jain for his scholastic guidance
advice, encouragement, valuable suggestion and keen interest given through the
conduct of this study.
I take this opportunity of expressing my profound gratitude to my perspicacious and
versatile teacher G.M.K. Madnani sir who has been content source of inspiration to
I thank all my friends for their kind cooperation.

ma Sankhla

This project is done during the fourth semester of Master of Business

administration programmed.
Although this project is not a direct interface with the industry but a deep one, it
was quite knowledgeable to undertake this research project.

The objective behind the research project in M.B.A. programs to get through with
congruency between theoretical learning in the college premise and the actual
practices of management in real corporate world. The topic of research project is
“To study the Investment pattern f senior citizens”.

In this project I have tried to study what are the investment avenues in which they
are interested in, which are factors affecting their investment decision. I have
studied the buying behavior of senior citizens regarding their investments, how they
take decision, what motivates them to invest etc.

Indian Economy Is Growing at a Rapid Pace and service industry is now

becoming the essence of economy. The study is related to service industry. The
project undertaken is “study of investment pattern of senior citizen”.

Investment pattern is related to the buying behavior. I have taken a

particular segment (senior citizen) which is altogether different segment and
behave in a different manner. I have first met some senior citizen to understand
them, how they are differing from other segment.

Then I designed the research that what should be the process that would
lead to the achievement of result. Research design is of exploratory type, the data
was collected through survey method of data collection. I have use a detailed
questionnaire along with interviewing technique. I have designed in both English
and Hindi language to ease the respondent. The sample size was 70 respondents
and the sampling technique was convenience sampling. The data was collected
through various parts of Udaipur City. Due to their less ability of answering the
questions, I have interviewed them also.

After conducting the survey analyzed the data with the help of charts and graph.
I have find out the overall ranking of responses on 5 point rating scale and then
only I was able to get conclusions and accordingly give the suggestions. These

 Products should be designed with small amount of monthly installment.

 In insurance, some critical illness plans for senior citizens should be
 Agents should take responsibilities to deposit the money.
 Staff attitude should be more courteous and respectful toward he senior
 Tie ups should be mad with some senior citizens clubs and associations.
 Formalities should be reduced to ease the senior citizens.
 CRM can be applied to make them more familiar with the company.

From the research conducted:

 It can be said that that senior citizen give priority to brand name (fame and
reliability) and services provided by them.
 Banks and post offices are the first choice of them.
 F.D.’s and M.I.S. are most popular avenues among senior citizens.
Chapter :- 1

Indian economy is growing at a rapid pace and service industry is now

becoming the essence of economy. Investment avenues provide money flow in
economy. to be a market leader, it is necessary to understand the buying behavior
of customer to tap them and make them loyal customer.

For any brand acceptance by customers, their priority and brand loyalty is
base for increase in market share and presence in market. So it is important for
investment companies & for me as a student of marketing, to understand the
buying behavior of customers. My research is concentrated on senior citizens.

How they invest ?

Why they invest ?
When do they invest ?
From whom do they purchase?
What motivates them to make investment?
What is the base of their investment decision and brand choice? Etc.

Investment is the employment of funds on assets with the aim of earning

income or capital appreciation. Investment has two attributes namely time and
risk. The risk is undertaken with a view to reap some return from the investment.

Financial investment is the allocation of money to assets that are expected to

yield some gain over a period of time. It is an exchange OF financial claims such
as stocks and bonds for money. They are expected to yield some gain over a
period of time .It is an exchange of financial claim such as stocks & bonds for
money. They are expected to yield returns and experience capital growth over the
Investment objectives

The main objectives are increasing the rate of return & reducing the risk.
Other objectives like safety, liquidity and inflation can be considered as subsidiary

Investor always expects a good rate of return from their investments. Rate of
return could be defined as the total income the investor receives during the holding
period stated as a percentage of the purchasing price at the beginning of the holding

Risk of holding securities is related with the probability of actual return
becoming less than the expected return. An investment whose rate of return varies
widely from period to period is risky than whose return that does not change much.
Every investor likes to reduce the risk of his investment by proper combination of
different securities.

Marketability of the investment provides liquidity to the investment. the liquidity
depends upon the marketing & trading facility. If a portion of the investment could be
converted into case without much loss of time, it would help the investor meet the
Hedge against inflation-
Since their inflation in almost all the economy, the rate of return should ensure
a cover against the inflation .The return rare should higher than the rate of inflation.

Safety –
The selected investment avenue should be under the legal & regulatory frame
work. If it is not under the legal frame work, it is difficult to represent the grievances, if

Investment Alternatives-
The problem of surplus gives rise to the question of where to invest at present,
a wide variety of investment avenues is open to the investors to suit their needs &
nature. Knowledge about the different avenues enables the investor to choose
investment intelligently. The required level of return & the risk tolerance level decide
the choice of the investor. The financial securities may be negotiable or non-
Negotiable securities

Equity shares-
Equity shares are commonly referred to common stock or ordinary shares. Share
capital of a company is divided into a number of small units of equal value called
shares. The stock market classifies shares into growth shares, income shares,
defensive shares, cyclical shares & speculative shares.

 Growth Shares-
The stocks that have higher rate of growth than the industrial growth
rate in profitability are referred to as growth shares.

 Income shares-
The stocks belong to companies that have comparatively stable
operation & limited growth opportunities.

 Defensive shares-
Defensive shares are relatively unaffected by the market movements.

 Cyclical shares –
The business cycle affects the cyclical shares. The upward &
downward movements of the business cycle affect the business prospects of
certain companies and their stock prices.

 Speculative shares-
Shares that have lot of speculative trading in them are referred to as
speculative shares.
Preference shares –
Preference shares are no longer regarded as inferior to the equity capital.
High tax paying investors prefer to subscribe to the preference shares .The
biggest advantage is the tax-exempt status of the preference shares divided.

Bonds are similar to the debenture but they are issued by the public sector
undertaking. The value of the bond in the market depends upon the interest rate and
the maturity.

VIPs & KVPs -

These are saving certificates issued by the post office with the name indira-
vikas patra and kisaan vikas patra .

Govt. securities-
The securities issued by the central, state govt. Quasi govt. agencies are
know as govt. securities or gilt edged securities.

Money Market securities-

Money Market securities Have very short-term maturity say less than a year.
Common money market instruments are :
 Treasury Bills
 Commercial Paper
 Certificate of deposit
Non Negotiable securities

Deposit earn fixed rate of return. Even though bank deposits resemble fixed
income securities they are not negotiable instruments. Some of the deposits are
dealt subsequently.

Bank deposits-
It is the simple investment avenue open for the investors. He has to open an
account and deposits the money. Traditionally the banks offered current account,
saving account. The deposits in the banks are considered to be safe because of the
R.B.I. regulation.

Post office deposits-

Like the banks, post office also office fixed deposits facility and monthly
income scheme for the retired.

NBFC deposits-
In recent years there has been a significant increase in the importance of non-
banking financial companies in the process of financial intermediation. The NBFC
comes under the purview of the RBI.
Tax sheltered savings scheme-
Tax sheltered savings scheme are of great importance to the investors in the
tax paying Category the tax sheltered savings scheme offer tax relief to those who
participate in their schemes according to the income tax laws. The important tax
sheltered savings schemes are

 Public provident fund

 National saving scheme
 National saving certificate vlll series
Life Insurance-
Life Insurance is an agreement between the person insured and the
insured .under the term of a life insurance. Contract the insured against to a
beneficiary in exchange for premium payments.

Usually the insurance contract provides for the payments of and

amount on the date of maturity or at specified dates at periodic internals , or in
the event of unfortunate death , if it occurs earlier . Life insurance is universally
acknowledged as a tool to eliminate risk, replace uncertainty with certainty.
And ensure timely aid for the civilized world’s partial solution to the financial
solution to the financial problems caused by death.

Mutual funds-
Investment companies or investment trusts obtain funds from large
number of investors through sale of units. The funds collected from investors
are plays Real assets ed under professional managements for the benefit of
the investors mutual funds are broadly classified into open ended scheme and
close ended scheme

Gold and silver-

For ages gold and silver have been considered as from of investment.
They is considered as best hedge against inflation. This is a favorite from of
investment amongst the rural and semi-urban population .beside, investors
tend to invest in jewellery instead of pure gold.
Real Estate-
The real estate market offers a high returns to the investors. The word
real estate means land buildings. There is normal notion that the price of the
real estate has increased by more then 12% over the past ten years. The
population growth and the exodus of people towards the urban cities have
made the prices to increase manifold reasons for investing in real estate are-

• High capital appreciation.

• Availability of loans for the construction of houses.
• Tax rebate is given to the interest paid on housing loan.
• The possession of a house given an investor a psychologically secure feeling
and a standing among his friends and relatives.

Paintings are the most sought after form of art .The prices in the art
market are raising and this rise is expected to continue. The trend in market
today is you invest in young upcoming painters whose prices will soar over
the years.

In Western countries investment in antiques is more common that in
India. The antique is an object of historical interest. It may be a coin,
sculpture, manuscript or any other object of olden days. The owner of the
antique has to register himself with Archeological society of India.

Government of India has decided to operate the scheme through all

branches of Public Sector Banks which are operating PPF Scheme, 1968.


(i) An individual who has attained the age of 60 years and above on the
date of opening of an account.

(ii) who has attained the age of 55 years or more but less than 60 years and
who has retired on superannuation or otherwise on the date of opening an
(iii) who has retired at any time before the commencement of these rules
and attained the age of 55 years or more on the date of opening of an
(iv) The retired personnel of Defense Services (excluding civilian Defense
employees) irrespective of the above age limits subject to fulfillment of other
specified conditions.

NRI's are not eligible to open an account under these rules.

Hindu Undivided Family is also not eligible to open an account under these rules.
Salient features-

• Any depositor may open an account at any deposit office by making an

application in Form A along with the amount of deposit in multiple of one
thousand rupees, along with age proof.
• A depositor may operate more than one account subject to the condition that
deposits in all accounts taken together shall not exceed the maximum limit
of Rs.15 lakh and provided that deposits by depositors shall be restricted to
the retirement benefits of Rupees fifteen lakh whichever is lower.

A depositor may open the account in individual capacity or jointly with spouse.

Deposits and withdrawals-

There shall be only one deposit in the account in multiple of one thousand
rupees not exceeding rupees fifteen lakhs.

No withdrawal shall be permitted under these rules before the expiry of a

period of five years from the date of opening of an account.

Mode of Deposit-
The deposit under these rules may be made :
(a) In cash, if the amount of deposit is less than rupees one lakh.
(b) By cheque or demand draft drawn in favour of the depositor and
endorsed in favour of the deposit office.
The depositor may extend the account for a further period of three years
after the maturity period of five years. An application in Form B should be made
within a period of one year after the date of maturity period..

Interest on Deposit-
The deposit made under these rules shall bear interest @ 9 % p.a. from the
date of deposit payable at the end of each calendar quarter e.g. 31st March / 30th
June / 30th September / 31st December.

The depositor may nominate a person or persons, at the time of opening of
the account or at any time after the opening of the account but before its closure,
by an application on Form C accompanied by the passbook to the Branch.

Nomination made by the depositor can be cancelled or varied.

Closure of Account-
The deposit made at the time of opening of account shall be paid by the
concerned deposit office after the expiry of five years from the date of opening of
the account on production of the passbook accompanied by a written application
(withdrawal form) Form E.

In case the depositor does not close the account on maturity and also does
not extend the account, the account will be treated as matured and the depositor
will be entitled to interest at the rate applicable to the deposits under post office
savings account during the post maturity period.

Death of the depositor-

In case of death of the depositor before maturity the account shall be closed
and deposit refunded on application in Form F along with interest to the nominee or
legal heirs in case the nominee has also expired or nomination was not made as
per rules.

If the total amount including interest payable is up to rupees one lakh it may
be paid to the legal heirs on production of (i) letter of indemnity (ii) an affidavit (iii) a
letter of disclaimer on affidavit (iv) a certificate of death of the depositor on
stamped paper in the form as in Annexure to Form F.

Premature closure of Account-

On an application in Form E the depositor may be permitted to withdraw the
deposit and close the account at any time after the expiry of one year from the date
of opening of the account subject to the following conditions:-
(a) In case the account is closed after the expiry of one year but before the
expiry of two years from the date of opening of the account, an amount equal to
one and half percent of the deposit shall be deducted and the balance paid to the
(b) In case the account is closed on or after the expiry of two years from the
date of opening of the account, an amount equal to one percent of the deposit shall
be deducted and balance paid to the depositor.

Transfer of Account
A depositor may apply on Form G for transfer of his account from one
deposit office to another in case of change of residence.


1.1 For all term deposits (domestic/NRE), from Senior Citizens of age 60
years and above, regardless of size of deposits, an additional interest of 0.5 per
cent over the normal rate of interest will be payable on maturity periods of one year
and above. This will be applicable for fresh term deposits and renewals.

1.2 Verification of Age: For the purpose of verification of age, at the time
of opening a new term deposit account of a Senior Citizen, the branches should
satisfy about the age by verifying any of the following documents :-

i. Secondary School Leaving Certificate indicating date of birth,

ii. LIC Policy,
iii. Voters Identity Card,
iv. Pension Payment Order,
v. Birth Certificate issued by the competent authority,
vi. Passport, or
vii. Any other document acceptable to the branches.

1.3 Renewal of Accounts of Senior Citizens

Once the age of a Senior Citizen is verified for accepting a term deposit
under this special scheme, bank shall not seek proof of age for renewal of the
deposit or for accepting subsequent term deposits from the same depositor under
this special scheme.

1.4 Treatment of Joint Depositors

For term deposits from Senior Citizens jointly, with other person below the
age of sixty years, under this special scheme, it has to be ensured that the name of
the Senior Citizen is noted as the first name in the application for such deposits.

1.5 Automatic Transfer to Nominee

For this special deposit scheme for Senior Citizens, there will be automatic
transfer of deposits to the nominees of such depositors in the event of death of the

1.6 Eligibility for Members of Staff

Branches may pay additional interest to our retired staff members, who are
senior citizens on their fresh term deposits and on renewals of existing term
deposits as follows:

Normal Staff As a Senior Total extra

Period of Deposit
Privilege Citizen interest
180 days to less
1% 0.25% 1.25%
than 3 years
3 years and above 1% 0.50% 1.50%
There is no restriction in regard to the minimum amount. However, the amount of
maximum deposit shall not exceed

Life Insurance in its present form came to Indian from the United Kingdom
with the establishment of a British firm Oriental Life Insurance Company in Calcutta
in 1818 followed by Bombay Life Assurance Company 1823. The Indian Life
Assurance Companies Act. 1912 was the first statutory measure to regulate life
Insurance business.

In the 1938, earlier legislation was consolidated and amended by the

Insurance Act. 1938, with comprehensive provision aimed at exercising effective
control over the activities of insurers. The main concern was to protect the interests
of the insuring public.

The Act was amended in 1950 resulting in far-reaching changes in the

insurance sector. By 1956, 154 Indian insurers. 16 foreign insurers and 75
provident societies were carrying on life insurance business in the country.

In January 1956, in keeping with the then prevailing political and economical
philosophy of socialism, 245 Indian and foreign insurance and provident societies
operating in Indian were taken over by the Central Government by an Act of
Parliament, the Life insurance Corporation Act 1956. The LIC, with a capital of Rs.
5 crores was set up September that year.

Privatization in 1990s
As part of the wide – ranging economic reforms initiated in 1991, the
structure of the Insurance sector was examined by a committee headed by Mr. R.
N. Malhotra. The committee's recomendation to open up the sector to private
sector participation was implemented by the Government in 2000. The key element
in the reform process was the participation of overseas insurance companies,
through restricted to 26 percent of the capital.

With the Insurance Regulatory and Development Authority Act, 1999 (IRDA)
formally coming into force, the insurance industry was opened up for private sector

The main objective of setting up the IRDA was to project the interests of
Policy holders and to regulate, promote and ensured orderly development of the
insurance industry.

Over four decades the industry has been a State monopoly. Till date the LIC
has insured over 120 million individuals and has a vast sales network of over 7 lakh
insurance agents. The industry is witnessing an upsurge in consumer awareness,
building immense and unavoidable pressure among the players.

Indian is a market of mainly small policies. The average annual life premium
is less than the equivalent of $ 100 Indian is also marked by a very low insurance
penetration rate. Although no authentic statistics is available, a rough estimate is
that only 20 percent of the insurable population is insured.
What is Insurance

The business of insurance is related to the protection of the economic value

of assets. Every asset has a value. The assets would have been created through
the effort of the owner. The assets are valuable to the owner, because he expects
to get some benefit from it. The benefit may be an income or some thing else. It is
a benefit because it meets some of his needs. In the case of factory or a cow, the
product generated by is sold and income generated. In the case of the motorcar, it
provides comfort and convenience in transportation. There is no direct income.

Every asset is expected to last for a certain period of time during which it will
perform. After, that the benefit may not be available. There is a lifetime for a
machine in a factory or a cow or a motorcar. None of them will last forever. The
owner is aware of this and he can so manage his affairs that by the end of that
period or life time, a substitute is made available Thus, he make sure that the value
or income is not lost. However the assets may get lost earlier. An accident or some
other unfortunate event may destroy it or make it nonfunctional. In that case the
owner and those driving benefit and the planned substitute there from, would be
deprived of the benefit and the planned substitute would not have been ready.
There is an adverse or unpleasant situation. Insurance is a mechanism that helps
to reduce the effect of such adverse situation.
Need of Life Insurance

Life Insurance provides risk cover which no other investment option

offers. It provides full protection against risk of death. Risks and uncertainties are
part of life's great adventure -- accident, illness, theft, natural disaster - they're all
built into the working of the Universe, waiting to happen.

• Encourages and forces compulsory savings as the saved money

cannot be withdrawn and premium has to be paid regularly.
• Provides loan to tie over a temporary difficult phase and is also
acceptable as security for a commercial loan.
• Provides tax benefits to policyholders.
• Hedges risk against uncertainty.

Perceptions behind taking life insurance

• protection
• investment
• future expenses
• retirement planning

In case we are worried about the well being of your loved ones and wish that
they are adequately provided for and that their lives are not affected, even when
you are not around, choose a plan which gives maximum returns in case of death.
Whole Life policies, term plans should be your choice.


I can have plans which combine the security of a life insurance policy with
the opportunity of enjoying high returns on your investments. You can even market-
linked returns without market risks compromising the protection of your family.
Choose from the Savings and Investment plans offered by companies. You can
choose from higher risk plans which invest in equities or moderate risk plans which
invest in fixed income securities or very low risk investments in cash and call
money markets.

Future expenses

Depending on what you’re future foreseeable expenses are- marriage,

house, children’s education, vacation you can select from the policies.
For future expenses related to children there are host of Children related policies.
LIC has Jeevan Balya, Jeevan Sukanya, Komal Jeevan etc.while ICICI Prudential
has various Smart Kid plans.
For other expenses, Savings, Investment, Money Back Plans would be appropriate.
Retirement planning

Retirement plans provide solutions to combine investment and insurance.

They are designed to maintain your lifestyle needs for as long as you live and
ensure peace of mind. It provides an income (i.e., pension/annuity) for your entire
life from your chosen date of retirement. This annuity is a guaranteed amount,
guaranteed at the time of vesting (i.e., commencement of annuity).

Market Penetration

Market penetration is an important concept in business planning and

development. You must consider the types of businesses and the numbers of
businesses in your geographic location in when determining your strategy for
market penetration.

Market penetration must be looked at in terms of the business base in your

geographic area. You need to first determine the revenue you must generate and
then look at the businesses within your area that can support these revenue
projections. A good market penetration strategy is one that considers your
geographic business base and revenue projections in conjunction with one another.

Market penetration here I consider that market capture by different life

insurance company in Udaipur. Also we see that most of people take which
company plan.
How much insurance we need
This will depend on:
• Your life stage and your needs
• The wealth, income and expense levels of your dependents
• Their significant foreseeable expenses
• The inheritance you would leave them, and
• The lifestyle you want to provide for them.

Advantages of Life Insurance

Even so, a comparison with other form of savings will show that life insurance has
the following advantages.
• In the event of death, the settlement is easy. The heirs can collect the
moneys quicker, because of the facility of nomination and assignment. The
facility of nomination is now available foe some bank account.
• There is a certain amount of compulsion to go through the plan of saving. In
other form, if one changes the original plan of saving, there is no loss. In
insurance, there is a loss.
• Creditors cannot claim the life insurance moneys. They can be protected
against attachments by courts.
• There are tax benefits, both in income tax and in capital gains.
• Marketability and liquidity are better. A life insurance policy is property and
can be transferred or mortgaged. Loans can be raised against the policy.
Role of Insurance in Economic Development

• For economies development, investment is necessary. Investment is made

out of savings. A life insurance company is a major instrument for the
mobilization of savings of people, particularly from the middle and lower
income groups. These savings are channeled into investment for economic

• As on 31.3.2002,the total investment of LIC exceed rs.245, 000 corers, of

which more than rs.130, 000 corers were directly in government related
securities, more than rs.12000crores in hosing loan and Rs.4000 corers in
water supply and sewerage systems.

• The LIC is not an exception. All good life insurance companies have huge
funds, accumulated through the payment of small amount of premia of
individual . These funds are invested in ways that contributed substantially
for the economic development of the countries in which they do business.

• A life insurance company will have large funds. These amounts are collected
by way of premiums. Every premium represents a risk that is covered by that
premium. In effect, therefore, these vast amounts represent pooling of risks.
These funds are collected and held in trust for the benefit of the

• Without insurance, trade and commerce will find it difficult to face the impact of
major perils like fire, earthquake, floods, etc.


The government of India liberalized the insurance sector in March 2000 with
the passage of the Insurance Regulatory and development authority (IRDA) Bill,
lifting all entry restrictions for private players and allowing foreign players to enter
the market with some limits on direct foreign ownership. Under the current
guideline, there is a 26 percent equity cap for foreign partners in an insurance
company. There is a proposal to increase this limit to 49 percent. Premium rates of
most general insurance policies come under the purview of the government
appointed Tariff Advisory committee.

The opening up of the sector is likely to lead to greater spread and

deepening of insurance in India and this may also include restructuring and
revitalizing of the public sector companies. A host of private insurance companies
opening in both life and non-life segments have started selling their insurance
policies since 2001.

Insurance industry earlier comprised of only two state insurers. Life Insurers
i.e. Life Insurance Corporation of India (LIC) and General Insurance Corporation of
India (GIC). The Insurance Regulatory and development authority (IRDA) issued
the first batches of license in 2001. 19 Companies are existing & 15 companies are
ready to enter in this sector.
Indian Insurance sector touted to record an 18% growth annually.
LIC has the large market share with it.
At present following are the players in the Indian market:


ICICI Prudential Life Insurance

ICICI Prudential Life Insurance is a joint venture between the ICICI Group and
Prudential plc, of the UK. ICICI started off its operations in 1955 with providing
finance for industrial development, and since then it has diversified into housing
finance, consumer finance, mutual funds to being a Virtual Universal Bank and its
latest venture Life Insurance.

Foreign Partner:

Established in 1848, Prudential plc. of U.K. has grown to be the largest life
insurance and mutual fund company in U.K. Prudential plc. has had its presence in
Asia for the past 75 years catering to over 1 million customers across 11 Asian

Prudential is the largest life insurance company in the United Kingdom (Source :
S&P's UK Life Financial Digest, 1998).

ICICI and Prudential came together in 1993 to provide mutual fund products in
India and today are the largest private sector mutual fund company in India.

Their latest venture ICICI Prudential Life plans to take care of the insurance needs
at various stages of life.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and Prudential plc, a leading international financial
services group headquartered in the United Kingdom.

ICICI was established in 1955 to lend money for industrial development. Today, it
has diversified into retail banking and is the largest private bank in the country.
Prudential plc was established in 1848 and is presently the largest life insurance
company in the UK.

ICICI Prudential is curently the No. 1 private life insurer in the country. For the
financial year ended March 31, 2005, the company garnered Rs 1584 crore of new
business premium for a total sum assured of Rs 13,780 crore and wrote nearly
615,000 policies.

Insurance Products and Services include :

1. Individual Insurance

2. Protection Plans including:

• Life Guard (covers life at low cost)

• Home Assure (cover home loans of customers)

3. Child Plans (Smartkid Plan providing Education Insurance)

4. Health Solution including:

• Health Assure and Health Assure Plus

•Cancer Care

5. Group Insurance Plans including

• Group Gratuity Plan

• Group Superannuation Plan

• Group Immediate Annuities

• Group Term Plan

6. Rider Options including:

• Income Benefit

• Accident and Disability benefit

• Critical Illness Benefit

•Waiver of Premium

Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed
people from the finance industry both from India and abroad.
Mr. K.V. Kamath, Chariman
Mr. Mark Tucker
Mr. Lalita D. Gupte
Mr. Danny Bardin
Mrs. Kalpana Morparia
Mrs. Chanda Kochhar
Mr. M.P. Modi
Mr. R. Narayanan
Mr. Shikha Sharma, Chief Managing Director

Management Team
Ms. Shikha Sharma, Chief Managing Director
Ms. Anita Pai, Chief, Operations & Underwriting
Mr. Puneet Nanda, Investment Head
Mr. Sandeep Batra, Chief Financial Officer & Company Secretary
Mr. Sujit Ganguly
Mr. Shubhro J. Mitra, Chief – Human Resources
Mr. Dipen Bhattacharya, Chief Information Technology

What Is Human Life?

Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-centric

products that meet the needs of customers at every life stage. Its 17 products
can create a customized solution for each policyholder.

Savings Solutions
- Secure Plus is a transparent and feature-packed savings plan that offers 3
levels of protection.

- Cash Plus is a transparent, feature-packed savings plan that others 3 levels of

protection as well as liquidity options.

- Save n Protect is a traditional endowment savings plan that offers life

protection along with adequate returns.

- Cash Bank is an anticipated endowment policy ideal for meeting milestone

expenses like a child's marriage, expenses for a child's higher education or
purchase of an asset.

Protection Solutions

Lifeguard is a protection plan, which otfers life covers at very low cost. It
is available in 3 options - level term assurance, level ternl assurance with return
of premium and single premium.

Child Solutions
Smart Kid child plans provide guaranteed educational benefits to a child
along with life insurance cover for the parent who purchases the policy. The
policy is designed to provide money at important milestones in the child"s life.
Smart Kid child plan are also available with in unit-linked form - both single
premium and regular premium.

Market-linked Solutions
- Life Link 11 is a single premium Market Linked Insurance Plan that combines
life insurance cover with the opportunity to stay invested in the stock market

-LifeTime 11 offers customers the flexibility and control to customize the policy
to meet the changing needs at different life stages. It offers 3 investment options
Growth Plan, Income Plan and Balanced Plan.

Retirement Solutions

- ForeverLife is a retirement product targeted at individuals in their thirties.

- Secure Plus Pension is a flexible pension plan that allows one to

select between 3 levels of cover.
Market-linked retirement products

- LifeTime Pension 11 is a regular premium market-linked pension plan

- Life Link Pension 11 is a single premium market-linked pension plan.

ICICI Prudential also launched "Salaam Zindagi", a social sector group insurance
policy targeted at the economically underprivileged sections of the society.

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for companies
seeking to enhance benefits to their employees.
Group Gratuity Plan:
ICICI Pru"s group gratuity plan helps employers fund their statutory
gratuity obligation in a scientific manner. The plan can also be 32 customized to
structure schemes that can provide benefits beyond the statutory obligations.

Group Superannuation Plan:

ICICI Pru offers a flexible defined contribution superannuation scheme to
provide a retirement kitty for each member of the group.
Employees have the option of choosing from various annuity options or opting for
a partial commutation of the annuity at the time of retirement

Group Term Plan:

ICICI Pru's flexible group ten solution helps provide affordable cover to
members of a group. The cover could be uniform or based on designation/rank or
a multiple of salary. The benefit under the policy is paid to the beneficiary
nominated by the member on his/her death.

Flexible Rider Options

ICICI Pru Life offers flexible riders, which can be added to the basic policy
at a marginal cost, depending on the specific needs of the customer.
I. Accident & disability benefit:
[f death occurs as the result of an accident during the tenn of the policy,
the beneficiary receives an additional amount equal to the sum assured under the
policy. If the death occurs while traveling in an authorized mass transport
vehicle, the beneficiary will be entitled to twice the sum assured as additional

2. Accident benefit:
This rider option pays the sum assured under the rider on death due to
3. Critical Illness Benefit:
Protects the insured against financial loss in the event of 9 specified
critical illnesses. Benefits are payable to the insured for medical expenses prior
to death.
4. Major Surgical Assistance Benefit:
Provides financial support in the event of medical emergencies, ensuring
that benefit are payable to the life assured for medical expenses incurred for
surgical procedures. Cover is offered against 43 different surgical procedures.

5. Income Benefit:
This rider pays the 10% of the sum assured to the nominee every year, till
maturity, in the event of the death of the Life assured. It is
available on Smart Kid, Secure Plus and Cash Plus

6. Waiver of Premium:
In case of total and pennanent disability due to an accident, the premiums
are waived till maturity. This rider is available with
Secure Plus and Cash Plus.

The promoters of ICICI Prudential Life Insurance Company are: ICICI Bank and
Prudential Plc. ICICI and Prudential came together in 1993 to form Prudential
ICICI Asset Management Company, which has today emerged as one of the leading
mutual funds in India. The two companies bring together two of the strongest
financial service brands in Asia, known for their professionalism, excellent quality
of service and long term commitment to their customers.

ICICI Bank has 74% stake in the company, and Prudential Plc. has 26% .

• ICICI Bank is India's second-largest bank with total assets of about Rs. 132,780
crores at September 30, 2004 and profit after tax of Rs. 873 crores in the half
year ended September 30, 2004 (Rs. 1,637 crores in fiscal 2004).

• ICICI Bank has a network of about 540 branches and extension counters anover

• ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of banking products and
financial services to corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries and affiliates in the areas of
investment banking, life and non-life insurance, venture capital and asset

• ICICI Bank set up its international banking group in fiscal 2002 to cater to the
cross-border needs of clients and leverage on its domestic banking strengths to
offer products internationally.
• ICICI Bank currently has subsidiaries in United Kingdom and Canada, branches
in Singapore and Bahrain and representative offices in the United States, China,
United Arab Emirates and Bangladesh.
• ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai
and the national Stock Exchange of India Limited and its American Depository
Receipts (ADRs) are listed on the New York Stock Exchange
Chapter :-3
Research Methodology

Title- A study of investment pattern of senior citizen.

A. Objectives-

1. To study & analysis the factors influencing pattern of senior citizen.

2. To find out the preference of senior citizen regarding investment.

B. Sample design

• Sample size- 70

• Sampling technique – convenience sampling

• Sampling unit – customers of udaipur city

C. Tools of data collection

Data was collected through survey method in which questionnaire used

along with interview method.

D. Analysis

Analysis part is done through charts and graphs.

Chapter :- 4
Data Interpretation

Analysis and interpretation

1. Income Group

Table 1.1

No. of Income In percentage

1. Up to 10,000 39 55.71%

2. 10000 to 20000 21 30%

3 20000 to 30000 06 8.57%

4. 30000 & Above 04 5.71%

Graph 1

In c o m e o f th e in v e s to r

No. ofn respondents

no. of res pondents
in perc entage
up to 10000 20000 30 000
10000 to to &
20000 30000 above
In co m e


In my study 55.71% senior citizen were found to be in income group up to

Rs.10000 only 5.71% senior citizen were of high income group.

Table 2.1 Education No. Of Respondents In Percentage

1 Undergraduate 24 34.28%

2 Graduate 22 32%

3 Post-Graduate 20 28.57%

4 Professionals 4 5.71%
Graph 2.1

35 32.42
25 22
undergraduate graduate post graduate professionals

Almost equal no. of respondent belong to undergraduate , Graduate ,post-
Graduate but only 5.17% senior citizens in my study belong to professional
category , this can be attributed to the fact that before few decade ago
professional courses were not so popular.

3. Occupation

Table 3.1

No. Occupation No. Of Respondents In Percentage

1 Business 6 8.57%

2 Retired From Govt. Service 48 68.57%

3 Retired From Pvt. Service 14 20.00%

Retired & Currently doing
4 4 5.71%
No. of respondent


Graph 3.1

Retired from govt.


Retired from

privatet services

retired from
currently doing

in percentage
no. of respondents

Mostly senior citizen are retired from Govt. service & they have pension as their
source of income ,only 5.71% senior citizen are currently doing business or
service & having a regular source of income other than income other than

4 .Tick the option(s) in which you have made your investment

Table -4.1

Particular Investment No. of Respondent In percentage

1 Bank 54 77.14%
2 Insurance 21 30.00%
3 Post Office 55 78.57%
4 Mutual Fund 6 8.57%
5 Shares 8 11.43%
6 Bonds 2 2.85%
7 Gold 8 11.42%
8 Property 8 11.42%
Graph 4.1
Investment avenue of senior citizen


No. of respondents
50 no. of respondents
40 in percentage

















Most of the respondent has made their investment in either bank or post office or
in both. Almost every one have their investment either in bank or in post office
(traditional investment avenue ) .
It can be attributed to the fact that banks post offices being the tradition avenue are
more established and less risky.

Approx 34% Respondent has made their investment in insurance & all are
previously taken by them. There is less number of respondent who invest in mutual
funds, bonds, shares i.e. securities related avenue, But in spite of general
phenomenon of senior citizen being risk averse , still some people go for it.

5. Have you made changes in last one year?

Table- 5.1

No. Of
Particular In Percentage
Yes 18 25.71%
No 52 74%

Changes in investment


No. of respondents
no. of respondents in percentage


52% respondents have not made any changes in their investment during last one
year. This shows that senior citizen are conservative & now at this age they do not
want to try new avenues.

6. While making investment which of the following factor you consider (on 5
point rating scale)

Particular 1 2 3 4 5
Liquidity 8 4 19 29 10 3.3

- 8 20 28 14 3.6

Safety - 6 20 36 4.2

Tax Benefit 22 10 13 15 10 2.72

Interpretation:- Above data shows that main purpose of investment of senior

citizen is “safety”. On 5 point rating scale safety got 4.2 point which is highest, then
good returns then liquidity then for tax benefit.
In Post Office Avenue MIS is the most popular investment avenue since people
needs to invest a small amount of their monthly pension into MIS as monthly
installment and it is well known.
While making investment in F.D & R.D, they prefer bank over post office. Still
people invest in NSE. But KVP and IVP are very less popular.
In securities bonds although safer than mutual funds or shares, may be less
awareness, or less popular as Investment Avenue.

7. While making investment what frequency of payment you choose.

Table -7.1
S . No. Particular No.of Respondents In Percentage

1. One Time 20 28.57%

2. Yearly 12 17.14%

3. Half Yearly 2 02.85%

4. Quarterly 8 11.42%

5. Monthly 28 40.00%
Graph -7.1

Investment frequency

No. of respondents

25 no. of respondents
20 in percentage


t im








Interpretation:- Above data reveals that most of the senior citizen(40%) adopt
the monthly frequency as installment or they prefer one time investment (approx
29%), This can be attributed to the fact that generally senior citizen get pension
as their monthly income & they get a lump sum amount as gratuity.
8. Generally you make investment in.

Table -8.1

S.NO. Occupation No. of Respondents In Percentage

1. Public sector 48 68.57%

2. Pvt. Sector 2 2.85%

3. Both according 20
to reach 28.57%
Graph -8.1

Investment sector preference of senior citizen

No. of respondents

50 no. of respondents
30 in percentage
public sector private sector Both according
to reach
investment sector


Above figure shows that most of senior citizen invests in public sector as believe
that their money is safe in public sector & safety is main purpose of their
investment . only 31.42% (2.85% pvt. )+ 28.57% in both ) senior citizen have faith
on pvt. Sector for their investment . This may be because before few decade Govt.
sector was the dominating one & pvt. Sector was not so reliable so these people is
continuing with the same mind set.

9. while making your investment .How you choose the company.(Rank)

Table 9.1

Particular 1 2 3 4 5 Overall

Brand Name 0 02 14 16 38 4.2

Employee 8 6 22 22 12 3.3

03 07 19 17 24 3.74
provided by them
Recommendation 39 04 07 20 0 2.11


How senior citizens choose the company in which they invest? They ans. This
question in the favor of “Brand name ” And “SERVICES PROVIDED BY THEM”
on 5 point rating scale Highest points (4.2) are acquire by brand name . This can
be attributed to the fact that by the age of 60’s generally people have their rigid
mind set & they work in their own way.
10. What motivates you to invest in particular Investment Avenue?

Table 10.1

No. of Particular In Percentage

1. 4 5.71

2. Relative 10 14.28

3. Advertisement 4 5.71

4. Agents 18 25.71

5. 34 48.57
Graph -10.1

Motivation for investment

No. of respondents

40 no. of respondents
30 in percentage






r ie








Interpretation: - Above data shows the reveals the same fact that most of the
senior citizen makes their investment according to their past experience and
advertisement have the least contribution, advertisement are the means of
awareness only. Approx 27% people said that agents motivate them to invest
which is at second position but agents need to be more convincing to get their faith
and to convince them.
11.Are you satisfied with your investment ?

Table 11.1

S.No. Particular No. Respondents In Percentage

1. 38 54.28%
Very Satisfied
2. Satisfied 20 28.58%

3. Dissatisfied 9 12.86%

4 Very Dissatisfied 3 4.28%

Graph -11.1

Satisfaction from investment

No. of respondents

40 no. of respondents
20 in percentage

f ie


t is

t is








Interpretation:- 54.28% of respondent are very satisfied with the performance of

their investment made and 28.58% said that they are satisfied . In my study .
12.86% senior citizen are dissatisfied with their investment , it means to attract the
senior citizen to invest, pvt. Companies & new investment avenue should prove
themselves more attractive and more reliable ,they should design their product
accordingly because to grab the market which is satisfied with their existing choice,
their competitors should be very good then that of existing one.
12. Do you want to change your investment?

Table -12.1

S. No. Particular NO .Of Respondents In Percentage

1. Yes 12 17.15%
2. No 58 82.85%


Change in investment

No. of respondents

50 Yes
40 No
no. of respondents in percentage

Interpretation: -82.85% Respondents are satisfied through their investment and

do not want to make any change in their investment . This can be attributed to the
fact that they are conservative in nature and as their almost responsibility are over,
they just invest money for their own safety not for good returns so they do not try
new investment avenue with high return and risk.
Chapter :- 5
Conclusions, Suggestions

1. Most of the senior citizens have their income up to 10000/- per month ,it
shows that they can have a small amount of their current monthly income.

2. Most of senior citizen are retired from govt. service means they have regular
source of income, they can easily save , although shall amount, the money for
investment regularly.

3. Most of the senior citizen believes either in one time investment or in monthly
saving so companies should design their product accordingly.

4. Senior citizens have a good and concrete faith in govt.sector and to break this
constraint it is difficult but necessary for the pvt. Companies to tab this
particular segment.

5. Past experience and agents has the largest motivating factor to invest in
,which shows that senior citizen have their own belief and to tab this segment
companies should be fit in their belief in terms and condition.

6. Almost every senior citizen have their investment in either in bank or in post
office or in both which shows that bank and post office have a very strong
base in this segment due to their fame and reliability.

7. Pvt. Sector banks have a great scope but they should prove themselves to be
8. In banks F.D.are the most popular avenue and also there is large scope of
saving a/c in different sector.

9. In post office MIS is most popular scheme which reveals the fact that senior
citizen are saving money monthly but in small amount.

10. Bonds are very less popular.

11. Safety is the main motive of investment.

12. While choosing company most of the senior citizen priorty to brand
name(Reliability & Fame)and services provided by them (like easy deposit of
installments, withdrawals ,ATM,etc.).

13. Senior citizen are satisfied with their present choice of investment and 82.85%
of them do not want to change because either they are satisfied or due to no
surplus money to invest in somewhere else so Pvt. Companies should design
their products very specifically if they want attract senior citizens.

1. Bank and other investment companies should design their products, which
require monthly installment payments.

2. Companies should recruit more reliable and reputed person as agents to

attract senior citizens.

3. In insurance some critical illness plans should design for senior citizens.

4. In spite of being conservative some senior citizens still invest in mutual

funds and securities.

5. So companies should make the portfolio with less risky securities to attract.

6. Mutual fund companies should a reliable personality and a personality of

their age in advertisements as brand ambassador to attract senior citizen
towards it.

7. Products should be design with small amount of monthly installment.

8. Services provided by Investment Company should be more prompt.

9. Deposit of installment and withdrawal of money should be made easy.

10. Staff attitude should be more courteous and respectful toward senior citizen.
11. To increase the awareness level and sales there can be some sort of tie ups
with senior citizens clubs and associations.

12. Deposit and withdrawal formalities should be and simplified to the senior

13. Banks and mutual fund companies can have the personal records of senior
citizens like important dates and can apply CRM to make them loyal
Chapter :- 6

Name:………………………………………… Age : ………………………………

A) Undergraduate [ ] B) Graduate [ ]
C) Postgraduate [ ] D) Professional [ ]

From which category you belong:

a) Business [ ]
b) Retired from govt. services [ ]
c) Retired from pvt. Service [ ]
d) Retired and now doing business / service [ ]

Last designation: ………………………. Year of retirement: …………………

Income group(monthly)
a) up to 10,000 b)10,000 to 20,000
c) 20,000 to 30,000 d) above 30,000

1) Percentage of your income, you put into

2) Tick the option(s), you have make your investment.
a) Banks [ ] b) insurance [ ] c) Post office [ ]
d) Mutual fund [ ] e) Shares [ ] f) Real- estate [ ]
g) Gold [ ] h) Any other [ ]
3) Have you made changes in your investments in last one year?
A) Yes B) No

4) While making investment which of the following factors you consider.

(Rank them)

Particulars Very low Low Neutral High Very high




4) While making investment what frequency of payment you choose.

a) One time
b) Yearly
c) Half yearly
d) Quarterly
e) Monthly

5) Generally you make investment in

a) public sector
b) Pvt. Sector
c) Both according to reach

6) While making investment, how you consider the following factors to

choose the company.(rank)
Particulars Very low low neutral high Very high
Brand name


provided by them


7) What motivates you to invest in particulars investment avenue;

a) Friends
b) Relatives
c) Advertisements
d) Agents
e) Past experience

8) Are you satisfied with the performance your investments?

a) Very satisfied
b) Satisfied
c) Dissatisfied
d) Very dissatisfied

Pandian - Security Analysis