Portfolio is none other than Basket of Stocks.

Portfolio Management is the professional management of various securities (shares, bonds and other securities) and assets (e.g., real estate) in order to meet specified investment goals for the benefit of the investors. It may refers to:Investment management, handled by a portfolio manager The art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance. Portfolio management is all about strengths, weaknesses, opportunities and threats in the choice of debt vs. equity, domestic vs. international, growth vs. safety, and many other tradeoffs encountered in the attempt to maximize return at a given appetite for risk. A portfolio manager is one who helps an individual invest in the best available investment plans for guaranteed returns in the future. Let us go through some roles and responsibilities of a Portfolio manager: A portfolio manager plays a pivotal role in deciding the best investment plan for an individual as per his income, age as well as ability to undertake risks. Investment is essential for every earning individual. One must keep aside some amount of his/her income for tough times. Unavoidable circumstances might arise anytime and one needs to have sufficient funds to overcome the same. A portfolio manager is responsible for making an individual aware of the various investment tools available in the market and benefits associated with each plan. Make an individual realize why he actually needs to invest and which plan would be the best for him. A portfolio manager is responsible for designing customized investment solutions for the clients. No two individuals can have the same financial needs. It is essential for the portfolio manager to first analyze the background of his client. Know an individuals earnings and his capacity to invest. Sit with your client and understand his financial needs and requirement. A portfolio manager must keep himself abreast with the latest changes in the financial market. Suggest the best plan for your client with minimum risks involved and maximum returns. Make him understand the investment plans and the risks involved with each plan in a jargon free language. A portfolio manager must be transparent with individuals. Read out the terms and conditions and never hide anything from any of your clients. Be honest to your client for a long term relationship. A portfolio manager ought to be unbiased and a thorough professional. Dont always look for your commissions or money. It is your responsibility to guide your client and help him choose the best investment plan. A portfolio manager must design tailor made investment solutions for individuals

which guarantee maximum returns and benefits within a stipulated time frame. It is the portfolio managers duty to suggest the individual where to invest and where not to invest? Keep a check on the market fluctuations and guide the individual accordingly. A portfolio manager needs to be a good decision maker. He should be prompt enough to finalize the best financial plan for an individual and invest on his behalf. Communicate with your client on a regular basis. A portfolio manager plays a major role in setting financial goal of an individual. Be accessible to your clients. Never ignore them. Remember you have the responsibility of putting their hard earned money into something which would benefit them in the long run. Be patient with your clients. You might need to meet them twice or even thrice to explain them all the investment plans, benefits, maturity period, terms and conditions, risks involved and so on. Dont ever get hyper with them. Never sign any important document on your clients behalf. Never pressurize your client for any plan. It is his money and he has all the rights to select the best plan for himself.

OBJECTIVES of the study To determine and analyze the Market Potential of the Birla Sun Life Insurance Company. To determine whether the customers are satisfied with the policies of the company. To know the the customer awareness regarding the Birla-sun life insurance and its products. To study and determine the competitor position in the market. To know the future plans of the people for buying the policies. Proper understanding and analysis of life insurance industry. Conduct market survey on a sample selected from the entire population and derived opinionon that research

Insurance, in law and economics, is a form of risk management primarily used to

hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. An insurer is a company selling the insurance. The insurance rate is a factor used to determine the

amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

Life insurance in its modern form is a western concept. Although it started taking shape since last 300 years, it came to India with the arrival of the Europeans .the first life insurance company was established in India in 1818 as oriental life insurance company mainly by Europeans to provide for widows of Europeans. The companies that followed mainly catered to Europeans and charge extra premium on Indians lives. The first Indian company, insuring Indian lives at standard rates, was Bombay mutual life insurance company, which was formed in 1870.this was the year also when the first Insurance Act was passed by the British parliament. The end of the year 1955, there were 245 insurance companies and provident societies out of which 16 were non-Indian companies. These companies were nationalized in 1956 and brought under one umbrella the life insurance corporation of India, which enjoyed monopoly of life insurance business, till almost up to the end of year 2000.By enacting the IRDA Act 2000,the government of India effectively ended LICs monopoly and opened the doors for private insurance companies

FUNDAMENTAL PRINCIPLES OF INSURANCE

Some useful terms in Insurance:

A) INDEMNITY A contract of insurance contained in a fire, marine, burglary or any other policy excepting life assurance and personal accident and sickness insurance) is a contract of indemnity. This means that the insured, in case of loss against which the policy has been issued, shall be paid the actual amount of loss not exceeding the amount of the policy, i.e. he shall be fully indemnified. The object of every contract of insurance is to place the insured in the same financial position, as nearly as possible, after the loss, as if his loss had not taken place at all. It would be against public policy to allow an insured to make a profit out of his loss or damage.

B) UTMOST GOOD FAITH Since insurance shifts risk from one party to another, it is essential that there must be utmost good faith and mutual confidence between the insured and the insurer. In a contract of insurance the insured knows more about the subject matter of the contract than the insurer. Consequently, he is duty bound to disclose accurately all material facts and nothing should be withheld or concealed. Any fact is material, which goes to the root of the contract of insurance and has a bearing on the risk involved. It is only when the insurer knows the whole truth that he is in a position to judge (a) Whether he should accept the risk and (b) What premium he should charge.

If that were so, the insured might be tempted to bring about the event insured against in order to get money.

C) Insurable Interest - A contract of insurance affected without insurable interest is void. It means that the insured must have an actual pecuniary interest and not a mere anxiety or sentimental interest in the subject matter of the insurance. The insured must be so situated with regard to the thing insured that he would have benefit by its existence and loss from its destruction. The owner of a ship run a risk of losing his ship, the charterer of the ship runs a risk of losing his freight and the owner of the cargo incurs the risk of losing his goods and profit. So, all these persons have something at stake and all of them have insurable interest. It is the existence of insurable interest in a contract of insurance, which distinguishes it from a mere watering agreement.

D) Causa Proxima - The rule of causa proxima means that the cause of the loss must be proximate or immediate and not remote. If the proximate cause of the loss is a peril insured against, the insured can recover. When a loss has been brought about by two or more causes, the question arises as to which is the causa proxima, although the result could not have happened without the remote cause. But if the loss is brought about by any cause attributable to the misconduct of the insured, the insurer is not liable.

E) Risk - In a contract of insurance the insurer undertakes to protect the insured from a specified loss and the insurer receive a premium for running the risk of such loss. Thus, risk must attach to a policy.

F) Mitigation of Loss - In the event of some mishap to the insured property, the insured must take all necessary steps to mitigate or minimize the loss, just as any prudent person would do in those circumstances. If he does not do so, the insurer can avoid the payment of loss attributable to his negligence. But it must be remembered that though the insured is bound to do his best for his insurer, he is, not bound to do so at the risk of his life.

G) Subrogation - The doctrine of subrogation is a corollary to the principle of indemnity and applies only to fire and marine insurance. According to it, when an insured has received full indemnity in respect of his loss, all rights and remedies which he has against

Third person will pass on to the insurer and will be exercised for his benefit until he (the insurer) recoups the amount he has paid under the policy. It must be clarified here that the Insurers right of subrogation arises only when he has paid for the loss for which he is liable under the policy and this right extends only to the rights and remedies available to the insured in respect of the thing to which the contract of insurance relates.

H) Contribution - Where there are two or more insurance on one risk, the principle of contribution comes into play. The aim of contribution is to distribute the actual amount of loss among the different insurers who are liable for the same risk under different policies in respect of the same subject matter. Any one insurer may pay to the insured the full amount of the loss covered by the policy and then become entitled to contribution from his co-insurers in proportion to the amount which each has undertaken to pay in case of loss of the same subject-matter.

In other words, the right of contribution arises when

1) There are different policies, which relate to the same subject matter 2) The policies cover the same peril which caused the loss, and 3) All the policies are in force at the time of the loss, and 4) One of the insurers has paid to the insured more than his share of the loss

Life Insurance Policy is a form of security for the person who insures his life and his family. Life insurance policies have helped trade and other economic activities to flourish in a great manner. It has generated lots of job opportunities. It is looked upon as a lucrative career option. Life insurance companies have also entered the international business scenario.

The following reasons substantiate why a life insurance policy should be taken: A) Early Deaths
The mortality rate is experiencing a declining trend in many parts of the world. However it is also important to note that the age at which People die is also ever decreasing. Some reasons for this include unhealthy living style, stress, pollution, and some natural calamities. This necessitates people to make adequate measures to yield income for their family and dependents. This could be a serious concern if the insured happens to be the sole breadwinner. Some individuals see this as an option to plan their retirement.

B) Advancements in Health Care

The mortality rate has declined rapidly even though the fact remains that the number of people who die at an early age is on the increase. This is mainly due to the advancement in healthcare and the awareness on medical facilities. This results in an increased spending at an old age. This increased spending is also due to increase in the costs of living apart from paying expensive medical bills. Unless they invest in Life insurance or other forms of insurance like health insurance it becomes next only too impossible to meet the financial demands especially during the old days.

C) Increase in the Cost of Living and Spending Power

The purchasing power of the consumers and the standard of living has experienced a steep rise over the years. The increase in National Income and gross domestic product are Partly responsible for this. Individuals incur many unexpected expenses due to the growing needs. Insurance comes in handy to meet such an unexpected expense. It also Makes sure that an individual is able to meticulously plan his finances. Insurance option is more or less an interest free loan. An individual can cancel his insurance policy and obtain a huge amount if it is imperative in meeting an urgent expenses and he does not have alternative sources for finance. Life insurance companies therefore do the needful to consumers.

D) Tax Concessions
Income tax concessions are available to individuals and corporate houses that adopt insurance policies. Many have been making investments in Insurance with the sole aim of enjoying tax benefits. This naturally increases spending power. Since the investments increases the economic activities in the country automatically increases.

LIMITATIONS OF INSURANCE Lack of awareness among the people This is the biggest limitation found in this sector.Most of the people are not aware about the importance and the necessity of the insurance intheir life. They are not aware how useful life insurance can be for their family members if something happens to them. Perception of the people towards Insurance sector People still consider insurance just asa Tax saving device. So today also there is always a rush to buy an Insurance Policy only atthe end of the financial year like January, February and March making the other 9 months dryfor this business.

Insurance does not give good returns Still today people think that Insurance does notgive good returns. They are not aware of the modern Unit Linked Insurance Plans which areoffered by most of the Private sector players. They are still under the perception that if theytake Insurance they will get only 56% returns which is not true nowadays. Nowadays most1 of the modern Unit Linked Insurance Plans gives returns which are many times more thanthat of bank Fixed deposits, National saving certificate, Post office deposits and Public provident fund. Lack of awareness about the earning opportunity in the Insurance sector People stilltoday are not aware about the earning opportunity that the Insurance sector gives. After the privatization of the insurance sector many private giants have entered the insurance sector.These private companies in order to beat the competition and to increase their InsuranceAdvisors to increase their reach to the customers are giving very high commission rates but people are notaware of that. Increased competition Today the competition in the Insurance sector has became verystiff. Currently there are 14 Life Insurance companies working in India including the LIC(life insurance Corporation of India). Today each and every company is trying to increasetheir Insurance Advisors so that they can increase their reach in the market. This situation hascreated a scenario in which to recruit Life insurance Advisors and to sell life Insurance Policyhas became very- very difficult

Birla sunlife insurance

VISION
To be a world class provider of financial security to individuals and corporates and to be amongst the top three private sectors life insurance companies in India.

MISSION
To be the first preference of our customers by providing innovative, need based life insurance and retirement solutions to individuals as well as corporates. These solutions will be made available by well-trained professionals through a multi channel distribution network and Superior technology. Our endeavor will be to provide constant value addition to customers throughout their relationship with us, within the regulatory framework. We will provide career development opportunities to our employees and The highest possible returns to our shareholders.

VALUES
Integrity: Honesty in every action. Commitment: Deliver on the promise Passion: Energized action Seamlessness: Boundary less in letter & spirit Speed: One step ahead always

COMPANY PROFILE
Birla Sun Life A Coming Together Of Values

Birla Sun Life is a joint venture between The Aditya Birla Group, one of the largest business house in India and Sun Life Financial Inc., a leading International Financial Services Organization. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc. offers a formidable protection for our future.

The Aditya Birla Group is led by its chairman- Mr. Kumar Manglam Birla. The Group has over 88000 employees across all its units worldwide. Some of the key organizations with the group are Hindalco, Grasim, Aditya Birla Nuvo, etc.

The group is India's leading business house with a number of key organizations. These are as follows: 1. Grasim 2. UltraTech Cement Ltd 3. Hindalco 4. Indian Aluminium Company Ltd 5. Aditya Birla Nuvo 6. Idea Cellular Ltd. 7. Birla Sun Life Insurance Co.Ltd 8. Birla Sun Life Asset Mgmt. Co.Ltd 9. Birla Sun Life Distribution Co. Ltd 10. PSI Data Systems 11. Indo Gulf Fertilizers Ltd. 12. Birla Global Finance Ltd

Birla Sun Life Insurance co ltd. is the Life-Insurance arm of Birla-Sun Life

Birla Sun Life Insurance in its 7 successful years of operations has contributed significantly to the growth and development of life insurance industry in India. It pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. It was the first player in the industry to sell its policies through the Bancassurance

route and through the Internet. It was the first private sector player to introduce a Pure Term plan in the Indian market. This was supported by sales practices, which brought a degree of transparency that was entirely new to the market. The process of getting sales illustrations signed by customers, offering a free look period on all policies, which are now industry standards were introduced by BSLI. Being a customer centric company, BSLI has covered more than a million lives since inception and its customer base is spread across more than 1000 towns and cities in India. All this has assisted the company

in cementing its place amongst the leaders in the industry in terms of new business premium income. The company has a capital base of more than Rs.672 crores.

Many ONEs with Birla Sun Life Insurance:

BSLI is a company that has a very unique contribution in the history of Insurance sector. The company not only has varying plans and funds, rather also is a pioneer in many aspects. These pioneering features of BSLI are as follows:

1. Free Look Period: BSLI offers its policyholders with a free look period of 15 days. Client gets freedom to have an in-depth look over all the terms and conditions regarding his/her life-insurance policy. If he finds policy not worth opting for, he can also return the policy, but at BSLI, co. people ensures this not to happen.

2. Bancassurance: BSLI pioneered Bancassurance in India. Bancassurance means to include Banks as one of the distribution channels with the company. BSLI is the first company, which realized that banks, with their huge customer base and strong customer loyalty, are a readymade platform to acquire new business on a more cost effective and sustainable basis.

3. Unit Linked Life Insurance Plans: BSLI was the first in India to introduce Unit Linked Plans. A ULIP is an auspicious coming together of security from life

4. insurance and earnings from investment. Which means, apart from securing the future they offer efficient returns. These plans provide the customer with a certain number of units, in the same way as a mutual-fund holder gets units. ULIPs offer market-linked returns to policyholders.

5. Sales Illustrations: BSLI is the first company to introduce Sales Illustrations in the Insurance Industry. Sales people of BSLI give demonstrations of fund

6. Performance on two points of projections i.e. on 6% and 10%. Now IRDA has also made it mandatory to have sales illustrations. BSLIs has launched Century SIP, a unique systematic investment plan offering an opportunity to create wealth with as little as Rs 1000 per month plus a life insurance cover of up to 100 times the monthly installment.

This plan comes along with free term insurance for an individual up to 55 years of age. The life insurance cover comes at no extra cost to the investor. The cover is hassle free. The investor need not go thru any medial test to avail of the life cover. All an investor needs to do is enroll for CSIP & sign a Declaration of Good Health. In case of unfortunate demise of investor the insurance claim will be directly paid to the nominee by the insurance company (Birla Sun Life Insurance Company).

Announcing the launch of Century SIP, Anil Kumar, CEO, and Birla Sun Life MF said, This offering touches all aspects of an investors financial planning needs. We wish to encourage the investment habit among investors by providing them life insurance cover. Insurance cover to the investor would continue even after the SIPs minimum maturity tenor of 3 years. Any individual between 18 to 46 years of age may invest in this plan.

Investment in this plan may be made through Electronic clearing system (ECS), direct debits or post dated cheques.

7. Others: Some other ONEs with BSLI are: 1st to issue daily NAVs of funds for better transparency. 1st to have a distinct CRISIL benchmark. 1st to disclose portfolio on a monthly basis. Policyholders can view their policy details online; they can be accessed from BSLI website using your unique password. Out of every 100 claims intimated to BSLI 98.28 stands cleared. Also the average Turn Around Time (TAT) :

(i)

From the receipt of the last requirement till dispatch of cheque is 5 days and

(ii)

From intimation of claim till its decision & dispatch of cheque is 36 days.

FUNDS BY BSLI

Birla Sun Life Insurance, a leading Life Insurance company, offers its clients with a long range of Funds. These funds are designed to cater to a variety of needs of people who are from different life stages. BSLI offers a broad range of 12 funds, each having differing asset allocations.

12 funds offered are: 1. Individual Protector 2. Individual Assure 3. Individual Balancer 4. Individual Builder 5. Individual Creator 6. Individual Enhancer 7. Individual Life Maximiser

8. Individual Magnifier 9. Individual Multiplier 10. Pension Nourish 11. Pension Enrich 12. Pension Growth

A new fund named Platinum Plus Fund I is also added in this list of funds.

Asset Allocation is decided by the Fund Managers of the company. These fund managers continuously tracks the movements of volatile market and combine this volatility with the fund requirements of the policyholders. Accordingly he decides allocation of assets in 5 major investment options: Government Securities Corporate Debt Securitized Debt Equity Money Market Instruments

Proportion of allocating the fund in these options, vary according to the needs and fund requirements of policyholders. The most important thing to be noticed here is that this portfolio is decided, based on the regulations of IRDA. Performances of these funds are rated by the rating agency-CRISIL.

All the 12 funds by BSLI are described below along with their respective Asset Allocations.

Objective: The primary objective of this fund is to provide Capital Protection, at a high level of safety and liquidity through judicious investments in high quality short-term debt.

Strategy: Generate better return with low level of risk through investment into fixed interest securities having short-term maturity profile.

Asset Allocation:

SECURITIES Corporate Debt Money Market Instruments

HOLDING 59.57% 17.97%

TOTAL

100.00%

HOLDING

Corporate Debt

59.57% 100.00%

Money Market Instruments TOTAL

17.97%

Individual Balancer
Objective: The objective of this fund is to achieve value creation of the policyholder at an average risk level over medium to long-term period.

Strategy: The strategy is to invest predominantly in debt securities with an additional exposure to equity, maintaining medium term duration profile of the portfolio.

Asset Allocation:

SECURITIES Government Securities Corporate Debt Equity Money Market Instruments TOTAL

HOLDINGS 10.67% 39.04% 23.44% 26.85% 100.00%

HOLDINGS

10.67% 26.85% Government Securities Corporate Debt Equity 39.04% 23.44% Money Market Instruments

Pension Growth
Objective: This fund option is designed to build the capital and to generate better returns at moderate level of risk, over a medium or long-term period through a balance of investment in equity and debt.

Strategy: Generate better return with moderate level of risk through active management of fixed income portfolio and focus on creating long term equity portfolio which will enhance yield of composite portfolio with low level of risk appetite.

Asset Allocation:

SECURITIES Government Securities Corporate Debt Equity Money Market Instruments

HOLDINGS 13.90% 45.41% 18.63% 22.06%

TOTAL

100.00%

HOLDINGS

22.06%

13.90% Government Securities Corporate Debt Equity

18.63% 45.41%

Money Market Instruments

Pension Enrich
Objective: Helps to grow the capital through enhanced returns over a medium to longterm period through investments in equity and debt instruments, thereby providing a good balance between risk and return. Strategy: To earn capital appreciation by maintaining diversified equity portfolio and seek to earn regular return on fixed income portfolio by active management resulting in wealth creation for policyholders. Asset Allocation:

SECURITIES Government Securities Corporate Debt Equity Money Market Instruments

HOLDINGS 14.35% 39.40% 32.69% 13.57%

TOTAL

100.00%

HOLDINGS

13.57%

14.35% Government Securities Corporate Debt Equity

32.69%

39.40%

Money Market Instruments

FINDINGS

To be successful in marketing of insurance products, the entire business scenario has to betaken into account.

During the study to be found that majority of people are aware of life insurance sector.

During the survey it was observed that major source of information for consumer aretelevision and newspaper and least preference are given to magazines, agents and friends.

Attractive schemes and brand image are the most important factor that influences the buying behavior of the consumers.

Majority of respondents will shift to any other insurance company.

People are not satisfied with the opted insurance. It was found that the reason for thedissatisfaction of consumer is high premium, delay in claim settlement and poor after saleservice.

So to achieve a greater insurance penetration, insurance sector companies have to create amore vibrant and competitive industry, with greater efficiency, choice of products and valuefor customers.

CONCLUSION Our training was a very enriching experience for us, we have learnt so many things, and we got insight into the insurance world. Insurance sector today playing a major role in everyones life lot more than ever before life currently there is a comprehensive range of products covering each type of policy available in the market. We have studied various insurance plans covered under BSLI, and their features. BSLI also gives various Riders, which provides extra benefits to the customers. And we came to know about the pioneering features of BSLI, like sales procedure, SIP, etc.

While most insurance plans block money for certain period of time, a BSLI plan gives the double benefit of life insurance along with easy liquidity through lump sum cash.

Birla Sun Life Insurance (BSLI), one of the largest private life insurers, is gearing itself to take advantage of the vast rural opportunity that has opened

up as a result of the revised definition of rural areas by the IRDA. Over the last four years, BSLI has painstakingly built its rural infrastructure to create a cost-effective distribution network across the country. Our training gave us corporate exposure, and helped in improving our communication skills. We learnt to deal with customers, we made them aware about various plans, and their respective features, even helped them to select the best plan as per their requirements.

RECOMMENDATIONS
1. Competition from public sector and foreign banks remains a key challenge for private sector banks. They need to reorient their staff and effectively utilize

technology platforms to retain customers. 2. They have to update their portfolio timely. 3. Birla Sun Life Insurance Ltd should have proper division of departments under heads. 4. Birla Sun Life Insurance Ltd should have more pension plans. 5. Birla Sun Life Insurance Ltd should have more children plans, and more help line plans 6. They should provide more information to the customer so that they become more aware about insurance

CONCLUSION The market potential for private insurance companies is found to be greater in the long run asmost of the Indians are of the opinion that, private insurance companies would be able to perform well in the future. The private and foreign insurance companies have to take immediatesteps in appointing more number of agents and/or advisors in addition to

the employees as it has been found out that agents are the best channel to reach the general public regarding selling of insurance products. The private and foreign insurance companies have to concentrate on thefactors like 'Prevention of Loss', 'Assured Returns' and 'Long term Investment'. They can alsofocus on an insurance amount of Rs. 1 2 lakhs with 'money back policies'. Hence, the markethas potential. The private and foreign insurance companies that are taking immediate steps cantap it easily & rapidly.

RECOMMENDATIONS 1) Even though most of the policy holders are satisfied with policies, plans they have but somenew attractive insurance plans should be introduce to bind them not to switch over to other companies insurance plans.2) The company should find out the no. of people who are not having any of the insurance plansthrough an intensive market research and motivate them to get insured.3) Leveraging technology to service customers quickly, efficiently and conveniently.4) Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders.5) Company should target each and every class of the society6) Company should provide full information to the customers before targeting so they can takeinterest http://www.birlasunlife.com/pas/index.html http://www.scribd.com/doc/26615183/project-report-on-birla-sun-life