IN DEAPTH STUDY OF THE

INSURANCE
WITH THE HELP OF
COMPARISON of ULIPS v/s
MUTUAL FUNDS in ING VYSYA

Presents by: Nisha Singh

Introduction of Insurance
 The business of insurance is related to the
protection of economic value of assets.
 Every asset has a value. The asset have been
created through the efforts of owner in the
expectation that either through the income
generated there from or some other output
some of his needs would be met.
 CLASSIFICATION OF INSURANCE
 Life insurance- Life insurance is concerned with
making provision for a specific event happening to
the in individual such as death.
 Non life insurance- Non life insurance is
commonly concerned with the provision for a
specific event, which affects a property such as
fire, flood, theft etc.

Company Profile
 ING Group the world’s largest financial
services provider, entered the private life
insurance industry in India in September
2001.
 Company is currently present in 246 cities
and has a network of over 300 branches,
staffed by 7,000 employees and over
51,000 advisors, serving over 5.5 lakh
customers.
 ING Vysya has 3 businesses in India, ING
Vysya Life Insurance, ING Vysya Bank and
ING Vysya Mutual Fund.
Company Profile
 The mission of the company is to have the
best and the most productive advisors
force.


 The core values of company are:

◦ Professional
◦ Entrepreneurial
◦ Trustworthy
◦ Approachable

Objective of My Study

 The major objective of the project
was to comprise unit linked
insurance plans with mutual funds.


About Unit Linked Insurance
Plans(ULIP’s)
 Unit Linked Insurance Plan is one in which
the customer is provided with a life insurance
cover and the premium paid is invested in
either debt or equity products or a
combination of the two.


 ULIP attempts to fulfill investment needs of an

investor with protection/insurance needs of an
insurance seeker. It saves the
investor/insurance seeker the hassles of
managing and tracking a portfolio or products.

Benefits
 Life protection
 Investment and Savings
 Flexibility
 Adjustable Life Cover
 Investment Options
 Transparency
 Options to take additional cover against
 Death due to accident
 Disability
 Critical Illness
 Surgeries
 Liquidity
 Tax planning

About Mutual Fund
 A Mutual Fund is a pool of money, collected
from investors, and is invested according
to certain investment objectives.


 Concept of mutual fund

Classification on the basis of its
structure & its investment
objective.
 By Structure:
 1. Open ended funds
 2. Closed-ended funds
 3. Interval Funds


 By Investment Objective:
 1. Growth Funds
 2. Income Funds
 3. Balanced Funds
 4. Money Market Funds



 Other Schemes:
 1. Tax Saving Schemes
 2. Gilt Funds
 3. Short-term Funds
 4. Liquid Funds


 Special Schemes:
 a. Industry specific schemes
 b. Index schemes
 c. Sector Specific Schemes

Benefits of Mutual Fund
 Professional Management
 Diversification
 Convenient Administration
 Growth Potential
 Low Costs
 Liquidity
 Transparency
 Flexibility
 Affordability
 Tax benefits
 Well regulated

Comparison of MF and
ULIP’s
Primary Objective


MFs: Investments
ULIPs: Protection + Investments
 Investment Duration
MFs: Works out for Medium term, Long Term Investors
 ULIPs: Works out for Long Term Investors only
 Flexibility

MFs: Very flexible.
 ULIPs: Flexibility is limited to moving across the different
funds offered with your policy.
 Liquidity
MFs: It can sell your MF units any time
 ULIPs: Limited liquidity.
 Tax Implications
 MFs: All investments in MF's don't qualify for section 80C
 ULIPs: Provide Tax Benefits under section 80C



RESEARCH METHODOLOGY
 Preparation of the Research Design-
◦ Survey Method
◦ Questionnaire Method
 Data Sources
◦ Primary Source
◦ Secondary Sources
 Data Collection Techniques
◦ through questionnaire & telephone interviewing
 Market Segmentation
◦ Businessmen
◦ Professionals
◦ Govt. employees
◦ Private employees



Awareness towards ULIP & MF
Investment in ULIP’s and
MF
Suggestions
 The bank & AMCs should emphasize on educating
the people about new investment avenue like
ULIPs & specially Mutual Funds because the
awareness is less enough.
 Awareness camps should be organized on a periodic
basis.
 Company should emphasize on market survey so as
to design the product as the customer desires.
 AMCs should organize advertising campaigns to
attract the investors towards the funds &
schemes.
 Since most of the respondents have desired to avail
the “safety” & “Returns” from their investments
therefore AMCs need to emphasize the feature of
diversified portfolio & the equity returns.

Conclusion
§ ULIPs form an attractive investment avenue and
have a lot of potential for growth. However the
major hindrance observed has been the lack of
awareness regarding the same.
§ Most of the respondents have not even heard
about Mutual Funds.
§ Some respondents know about ULIP & Mutual
Funds but not educated enough to invest in.
§ There is very less awareness of Mutual Funds in
the segments of Businessmen & Govt.
employees, thus there is huge potential in those
segments.


Thank you