ACKNOWLEDGEMENT

An endeavor to transform itself into success needs efforts. These efforts are
individual, standing in isolation. Such individual efforts require three things
for their further development. These three things being Reason,
Rationality and Self-steem!. The combination of these three basic traits
delivers "roductivity. #o$ever, time and again this productivity requires
encouragement and guidance. This much requisite support comes in the
form of individuals furthering the development of individuals. "rofessionals
furthering the development of Amateurs. This ac%no$ledgement is an effort
to recogni&e these professionals $ho have made this pro'ect a combination
of the three fundamental traits.
This pro'ect report and the learning process behind it $ould not have been
possible $ithout the guidance of (y )aculty *uide, "rofessor #.S. "ande he
$as able to impart me $ith the right approach that my training required for
its successful practical implementation.
These past three months $ere of utmost importance as they added value
to$ards my path of %no$ledge. + $ould li%e to end this ac%no$ledgement
by than%ing the customers, clients, investors, and people at large $ith $hom
+ have interacted during the course of my training.
+ am grateful for each and every valuable interaction that brought me to a
better understanding of the $or%ings of the ,an%ing industry and of the
intricacies of +nvestment in +ndia, both forming the cru- of my report.

.
TABLE OF CONTENTS
Abstract
+ntroduction of ,an%ing
/ompany "rofile 01ota% (ahindra ,an%2
(utual )und
- +ntroduction
- (utual )und +ndustry in 3aipur
- (utual )und +ndustry in +ndia
- (utual )und Analysis
Retail ,an%ing
- +ntroduction
- "roduct profile
- /omparative Analysis of Saving Accounts
+nsurance
- +ntroduction
- #istory
- "roduct "rofile
- /omparative analysis of 4ifferent Schemes
/onclusion
References
ABSTRACT
The investment ban%ing is not a ne$ sub'ect in the field of finance. +t started
in the fifteenth century in +taly and later on spread to )rance and the 51 in
the eighteenth century. The name (erchant ,an%ing originates from the fact
that it $as started by merchants $ho added ban%ing activities to their
operations, and through innovations, came up $ith $hat is the real merchant
ban%ers $ere to remit foreign currencies from one place to the other.
+n 51, merchant ban%ers started $ith bill discounting for their customers,
even though they $ere more of merchants than of ban%ers. ,arings brothers
$as the oldest merchant ban%er in the 51 $hile in the 5S indigenous
merchant ban%ers started operating by 6778 and started helping the
conversion of privately held companies into public companies.
9hen the great crash too% place in 6:;:, most merchant ban%ers $ere left
$ith heavy losses and $ith the introduction of the *lass-Steagall ,an%ing
Act in 6:<<, the government separated merchant ban%ing from commercial
ban%ing. )urther, the Securities Act, 6:<= prohibited depositories from
under$riting and tried to correct the malpractices in securities trading.
The *lass-Steagall Act restricts even investment ban%ers from o$ning a
firm dealing in securities and from under$riting. >$ing to the legal
challenge created by the investment ban%ers in America, the government in
6:7? has allo$ed ban%s to float subsidiaries to underta%e the merchant
ban%ing and investment-ban%ing activity of the ban%, $here by the total
income from these subsidiaries can be up to ;@A of the total income of the
ban%.
The KOTAK MAHINDRA BANK Ltd. has started its operations ;8 years
ago as an integral part of 1ota% (ahindra *roup and is one of the +ndiaBs
leading financial institutions today en'oying the trust and confidence of over
@ la%h customers across the country. The main functions of Kotak
Mahindra Bank Ltd. areC they offer a comprehensive range of financial
services and are mar%et leaders in Retail quities, /ar )inance, Dife
insurance and +nvestment ,an%ing and as a financial institution they provide
$orld class financial solutions for +ndians the $orld over.
INTRODUCTION
The essential function of a ban% is to provide services related to the storing
of value and the e-tending credit. The evolution of ban%ing dates bac% to the
earliest $riting, and continues in the present $here a ban% is a financial
institution that provides ban%ing and other financial services. /urrently the
term bank is generally understood an institution that holds a ban%ing license.
,an%ing licenses are granted by financial supervision authorities and
provide rights to conduct the most fundamental ban%ing services such as
accepting deposits and ma%ing loans. There are also financial institutions
that provide certain ban%ing services $ithout meeting the legal definition of
a ban%, a so-called non-ban%. ,an%s are a subset of the financial services
industry.
The $ord bank is derived from the +talian banca, $hich is derived from
*erman and means bench. The terms ban%rupt and Ebro%eE are similarly
derived from banca rotta, $hich refers to an out of business ban%, having its
bench physically bro%en. (oneylenders in Forthern +taly originally did
business in open areas, or big open rooms, $ith each lender $or%ing from
his o$n bench or table.
Typically, a ban% generates profits from transaction fees on financial
services or the interest spread on resources it holds in trust for clients $hile
paying them interest on the asset.
Seri!e" t#$i!a%%# o&&ered '# 'ank"
Although the type of services offered by a ban% depends upon the type of
ban% and the country, services provided usually includeC
G 4irectly ta%e deposits from the general public and issue chec%ing
and savings accounts
G Dend out money to companies and individuals 0see moneylender2
G /ash chec%s.
G )acilitate money transactions such as $ire transfers and cashiers
chec%s
G +ssue credit cards, AT(, and debit cards.
G >nline ban%ing.
G Storage of valuables, particularly in a safe deposit bo-.
G +nvestment solutions safe and profitable investment options
T#$e" o& 'ank"
There are several different types of ban%s includingC
G /entral ban%s usually control monetary policy and may be the
lender of last resort in the event of a crisis. They are often charged
$ith controlling the money supply, including printing paper money.
An e-ample of central ban% is the Reserve ,an% >f +ndia.
G +nvestment ban%s under$rite stoc% and bond issues and advise on
mergers. -amples of investment ban%s are *oldman Sachs of the
05SA2 or 1ota% (ahindra ,an% Dtd 0+ndia2.
G (erchant ban%s $ere traditionally ban%s, $hich engaged in trade
financing. The modern definition, ho$ever, refers to ban%s, $hich
provides capital to firms in the form of shares rather than loans.
5nli%e Henture capital firms, they tend not to invest in ne$
companies.
G "rivate ban%s manage the assets of the very rich.
G Savings ban%s $rite mortgages e-clusively.
G >ffshore ban%s are ban%s located in 'urisdictions $ith lo$ ta-ation
and regulation, such as S$it&erland or the /hannel +slands. (any
offshore ban%s are essentially private ban%s.
G /ommercial ban%s primarily lend to businesses 0corporate ban%ing2
G Retail ban%s primarily lend to individuals.
G 5niversal ban%s engage in several of these activities. )or e-ample,
/itigroup, a large American ban%, is involved in commercial and
retail lendingI it o$ns a merchant ban% 0/iticorp (erchant ,an%
Dimited2 and an investment ban% 0Salomon Smith ,arney2I it
operates a private ban% 0/itigroup "rivate ,an%2.
COM(AN) (ROFILE
KOTAK MAHINDRA GROU( 1ota% (ahindra is one of +ndiaJs
leading financial institutions, offering complete financial solutions that
encompass every sphere of life. )rom commercial ban%ing, to stoc% bro%ing,
to mutual funds, to life insurance, to investment ban%ing, the group caters to
the financial needs of individuals and corporates. The group has a net $orth
of around Rs.6,?88 crore and employs over =,888 employees in its various
businesses. 9ith a presence in ?= cities in +ndia and offices in Fe$ Kor%,
Dondon, 4ubai and (auritius, it services a customer base of over @,88,888.
1ota% (ahindra has international partnerships $ith *oldman Sachs 0one of
the $orldJs largest investment ban%s and bro%erage firms2, )ord /redit 0one
of the $orldJs largest dedicated automobile financiers2 and >ld (utual 0a
large insurance, ban%ing and asset management conglomerate2.
KE) GROU( COM(ANIES AND THEIR BUSINESSES
Kotak Mahindra Bank The 1ota% (ahindra *roupBs flagship company,
1ota% (ahindra )inance Dtd that $as established in 6:7@, $as converted
into a ban% - 1ota% (ahindra ,an% Dtd in (arch ;88< becoming the first
+ndian company to convert into a ,an%. +tBs ban%ing operations offers a
central platform for customer relationships across the groupBs various
businesses. The ban% has a presence in the /ommercial Hehicles, Retail
)inance, /orporate ,an%ing and Treasury and has recently entered the
#ousing )inance segment.
Kotak Mahindra Ca$ita% Co*$an# 1ota% (ahindra /apital /ompany
Dimited 01(//2, +ndiaJs premier +nvestment ,an% and a "rimary 4ealer
0"42 approved by the R,+, is a strategic 'oint venture bet$een 1ota%
(ahindra ,an% Dimited and the *oldman Sachs *roup, DD". 1(//Js core
business areas include quity +ssuances, (ergers L Acquisitions, Structured
)inance and Advisory Services, )i-ed +ncome Securities and "rincipal
,usiness.
Kotak Se!+ritie" 1ota% Securities Dtd., a strategic 'oint venture bet$een
1ota% (ahindra ,an% Dimited and the *oldman Sachs *roup, DD"., is one
of +ndiaJs largest bro%erage and securities distribution house in +ndia. >ver
the years 1ota% Securities has been one of the leading investment bro%ing
houses catering to the needs of both institutional and retails investor
categories $ith presence all over the country through franchisees and
coordinators. 1ota% Street - the retail arm of 1ota% Securities Dtd., offers
online and offline services $ell-researched e-pertise and financial products
to the retail investors.
Kotak Mahindra (ri*+" 1ota% (ahindra "rimus Dimited 01("2 is a 'oint
venture bet$een 1ota% (ahindra ,an% Dtd and )ord /redit +nternational
+nc., 05SA2 formed to finance all non-)ord passenger vehicles. 1(" is one
of the countryBs leading players in car finance and is focused to financing
and supporting automotive and automotive related manufacturers, dealers
and retail customers.
Kotak Mahindra A""et Mana,e*ent Co*$an# 1ota% (ahindra Asset
(anagement /ompany 01(A(/2, a subsidiary of 1ota% (ahindra ,an%,
is the asset manager for 1ota% (ahindra (utual )und 01(()2. 1(()
manages funds in e-cess of Rs =888 crores and offers schemes catering to
investors $ith varying ris%- return profiles..
Kotak Mahindra O%d M+t+a% Li&e In"+ran!e Li*ited 1ota% (ahindra
>ld (utual Dife +nsurance Dimited is a 'oint venture bet$een 1ota%
(ahindra ,an% Dtd. and >ld (utual plc. 1ota% Dife +nsurance helps
customers to ta%e important financial decisions at every stage in life by
offering them a $ide range of innovative life insurance products, to ma%e
them financially independent.
Creatin, 'ankin, hi"tor#
stablished in 6:7=, The 1ota% (ahindra group has long been one of +ndiaJs
most reputed financial organi&ations. +n )ebruary ;88<, 1ota% (ahindra
)inance Dtd, the groupJs flagship company $as given the license to carry on
ban%ing business by the Reserve ,an% of +ndia 0R,+2. This approval creates
ban%ing history since 1ota% (ahindra )inance Dtd. is the first company in
+ndia to convert to a ban%.
The !o*$%ete 'ank
At 1ota% (ahindra ,an%, $e address the entire spectrum of financial needs
for individuals and corporates. )rom Retail )inance to quities, (utual
)unds to Dife +nsurance and +nvestment ,an%ing, $e have the products, the
e-perience, the infrastructure and most importantly the commitment to
deliver pragmatic, end-to-end solutions that really $or%.
RETAIL BANKING
The essential function of a ban% is to provide services related to the storing
of value and the e-tending credit. The evolution of ban%ing dates bac% to the
earliest $riting, and continues in the present $here a ban% is a financial
institution that provides ban%ing and other financial services
Seri!e" t#$i!a%%# o&&ered '# 'ank":
Although the type of services offered by a ban% depends upon the type of
ban% and the country, services provided usually includeC
4irectly ta%e deposits from the general public and issue chec%ing and
savings accounts
Dend out money to companies and individuals 0see moneylender2
/ash chec%s.
)acilitate money transactions such as $ire transfers and cashiers
chec%s
+ssue credit cards, AT(, and debit cards.
>nline ban%ing.
Storage of valuables, particularly in a safe deposit bo-
The (rod+!t (ro&i%e-An Oerie.
Fo matter $hat ones ban%ing needs are, 1ota% (ahindra ,an% has an offer
thatJs 'ust right for him.her. 1ota% savings accounts offer the customers
attractive returns $ith personali&ed ban%ing services. +t has a variety of
products to offer, 1ota% dge Savings Account, 1ota% "ro Savings Account
and 1ota% Ace Savings Account. ach product is feature pac%ed ranging
from )ree #ome ,an%ing, )ree Access to M888N AT(s, )ree 44s, and )ree
At -"ar /heque )acility to )ree Trading Account L )ree 4emat Account.
They can choose the one that suits them the most and meet their
requirements
(RODUCTS
/. Kotak Ed,e Sain, A!!o+nt
0. Kotak (ro Sain, A!!o+nt
1. Kotak A!e Sain, A!!o+nt
SAH+F*
A//>5FTS
)AT5RS 4* "R> A/
(+F AO, 68,888 ;8,888 ?@,888
; 9AK
S9"
(5DT+"DS >)
681
(5DT+"DS >)
;81
(5DT+"DS >)
?@1
#>(
,AF1+F*
F> KSP)R KSP)R
4(AF4
4RA)T
/#AR*4 )R 5"T> @881 )R 5"T> @881
/S KS KS KS
4,+T /AR4 1>TA1P5T+ *D>,AD *D>,AD
"#AF
,AF1+F*
KS KS KS
FT
,AF1+F*
KS KS KS
(>,+D
,AF1+F*
KS KS KS
TRA4+F*
AP/
KS KS KS
4(AT AP/
KS KS KS
COM(ARITI2E ANAL)SIS OF SA2ING ACCOUNTS
)AT5RSP,
AF1
1>TA1 +/+/+ #S,/ #4)/ STAF./ 5T+
(+F AO, ;8,888 @,888 ;@,888 @,888 @8,888 @,888
; 9AK
S9"
KS KS KS F> KS F>
#>(
,AF1+F*
KS F> KS F> KS F>
4(AF4
4RA)T
)R /#AR*
4
)R /#AR*
4
)R )R
/S KS KS KS KS KS KS
4,+T /AR4
"#AF
,AF1+F*
KS KS KS KS KS KS
FT
,AF1+F*
KS KS KS KS KS KS
(>,+D
,AF1+F*
KS KS KS KS KS KS
TRA4+F*
AP/
)R /#AR*
4
/#AR*
4
/#AR*
4
/#AR*
4
/#AR*
4
4(AT AP/ )R /#AR*
4
/#AR*
4
/#AR*
4
/#AR*
4
/#AR*
4
MUTUAL FUND
An +ntroductionC
A mutual fund is a common pool of money in to $hich investors $ith
common investment ob'ective place their contributions that are to be
invested in accordance $ith the stated investment ob'ective of the scheme.
The investment manager $ould invest the money collected from the investor
in to assets that are definedP permitted by the stated ob'ective of the scheme.

A (utual )und is a trust that pools the savings of a number of investors $ho
share a common financial goal. The money thus collected is then invested in
capital mar%et instruments such as shares, debentures and other securities.
The income earned through these investments and the capital appreciation
realised are shared by its unit holders in proportion to the number of units
o$ned by them. Thus a (utual )und is the most suitable investment for the
common man as it offers an opportunity to invest in a diversified,
professionally managed bas%et of securities at a relatively lo$ cost. The
flo$ chart belo$ describes broadly the $or%ing of a mutual fundC

ORGANISATION OF A MUTUAL FUND
There are many entities involved and the diagram belo$ illustrates
the organi&ational set up of a mutual fund.
Con!e$t o& M+t+a% F+nd

A (utual )und is a trust that pools the savings of a number of investors $ho
share a common financial goal. The money thus collected is then invested in
capital mar%et instruments such as shares, debentures and other securities. The
income earned through these investments and the capital appreciation realised
are shared by its unit holders in proportion to the number of units o$ned by
them. Thus a (utual )und is the most suitable investment for the common
man as it offers an opportunity to invest in a diversified, professionally
managed bas%et of securities at a relatively lo$ cost. The flo$ chart belo$
describes broadly the $or%ing of a mutual fundC

Adanta,e" o& M+t+a% F+nd"3
4 (ro&e""iona% Mana,e*ent - The primary advantage of funds 0at least
theoretically2 is the professional management of your money. +nvestors
purchase funds because they do not have the time or the e-pertise to manage
their o$n portfolio. A mutual fund is a relatively ine-pensive $ay for a
small investor to get a full-time manager to ma%e and monitor investments.
Q Dier"i&i!ation - ,y o$ning shares in a mutual fund instead of o$ning
individual stoc%s or bonds, your ris% is spread out. The idea behind
diversification is to invest in a large number of assets so that a loss in any
particular investment is minimi&ed by gains in others. +n other $ords, the
more stoc%s and bonds you o$n, the less any one of them can hurt you
0thin% about nron2. Darge mutual funds typically o$n hundreds of different
stoc%s in many different industries. +t $ouldnJt be possible for an investor to
build this %ind of a portfolio $ith a small amount of money.
Q E!ono*ie" o& S!a%e - ,ecause a mutual fund buys and sells large amounts
of securities at a time, its transaction costs are lo$er than you as an
individual $ould pay.
Q Li5+idit# - 3ust li%e an individual stoc%, a mutual fund allo$s you to
request that your shares be converted into cash at any time.
Q Si*$%i!it# - ,uying a mutual fund is easyR "retty $ell any ban% has its
o$n line of mutual funds, and the minimum investment is small. (ost
companies also have automatic purchase plans $hereby as little as S688 can
be invested on a monthly basis.
4 Ret+rn (otentia% C- (utual fund house invest the amount $hich they
collect from public $ith the help of professional fund manager $ho does it
$ith lot of research and depth study of various stoc% so there is good chance
of getting good return.
4 Tran"$aren!# 3- All mutual fund house %eep publishing all required
information about there scheme at ne$s paper so that investor can %no$
about the current status of the scheme.
4 F%e6i'i%it# C- (utual fund provides fle-ibility to its investor to $ithdra$
his money any time from the scheme in open ended equity scheme, and it
also gives option to investor that if he $ant to s$itch to any other scheme of
same fund he can do it easily
4 Ta6 'ene&it" C- +ncome from mutual fund is e-empted from income ta-.
4ividend income received from equity fund is ta- free in hand of investor,
income from long term capital gain is also ta- free.
Q We%% re,+%ated C-(utual fund $or% under the guideline provided by S,+
Di"adanta,e" o& M+t+a% F+nd"
Q (ro&e""iona% Mana,e*ent- 4id you notice ho$ $e qualified the
advantage of professional management $ith the $ord EtheoreticallyET (any
investors debate over $hether or not the so-called professionals are any
better than you or + at pic%ing stoc%s. (anagement is by no means infallible,
and, even if the fund loses money, the manager still ta%es hisPher cut. 9eJll
tal% about this in detail in a later section.
Q Co"t" - (utual funds donJt e-ist solely to ma%e your life easier--all funds
are in it for a profit. The mutual fund industry is masterful at burying costs
under layers of 'argon.
Q Di%+tion - +tJs possible to have too much diversification 0this is e-plained
in our article entitled EAre Kou >ver-4iversifiedTE2. ,ecause funds have
small holdings in so many different companies, high returns from a fe$
investments often donJt ma%e much difference on the overall return.
Q Ta6e" - 9hen ma%ing decisions about your money, fund managers donJt
consider your personal ta- situation. )or e-ample, $hen a fund manager
sells a security, a capital-gain ta- is triggered, $hich affects ho$ profitable
the individual is from the sale.
T#$e" o& M+t+a% F+nd"
(utual )unds can be categori&ed as follo$s
+nvestment >b'ective
quity >riented
4ebt >riented
,alanced )und
(oney (ar%et or Diquid )und
*ilt )und
+nde- )unds
/onstitution
>pen nded Schemes
/lose nded Schemes
E5+it# Oriented S!he*e"
/ommonly called *ro$th Schemes,
See% to invest a ma'ority of their funds in equities and a small portion in
money mar%et instruments and have the potential to deliver superior
returns over the long term.
They are e-posed to fluctuations in value especially in the short term.
#ence not suitable for investors see%ing regular income or needing to
use their investments in the short-term. +deal for investors $ho have a
long-term investment hori&on
Se!tor S$e!i&i!
These schemes restrict their investing to one or more pre-defined sectors,
e.g. technology sector.
4epend upon the performance of select sectors only, these schemes are
inherently more ris%y than general-purpose schemes.
They are suited for informed investors $ho $ish to ta%e a vie$ and ris%
on the concerned sector
S$e!ia% S!he*e"
Inde6 "!he*e"
The primary purpose of an +nde- is to serve as a measure of the
performance of the mar%et as a $hole, or a specific sector of the mar%et.
Sain, "!he*e"
+nvestors 0individuals and #indu 5ndivided )amilies 0#5)s!22 are being
encouraged to invest in equity mar%ets through quity Din%ed Savings
Scheme 0DSS!2 by offering them a ta- rebate.
Rea% E"tate F+nd"
Speciali&ed real estate funds $ould invest in real estates directly, or may
fund real estate developers or lend to them directly or buy shares of housing
finance companies or may even buy their securiti&ed assets.
De't Ba"ed S!he*e"
These schemes, also commonly called +ncome Schemes, invest in debt
securities such as corporate bonds, debentures and government securities.
The prices of these schemes tend to be more stable compared $ith equity
schemes and most of the returns to the investors are generated through
dividends or steady capital appreciation.
These schemes are ideal for conservative investors or those not in a
position to ta%e higher equity ris%s, such as retired individuals.
In!o*e S!he*e"
These schemes invest in money mar%ets, bonds and debentures of
corporate $ith medium and long-term maturities.
These schemes primarily target current income instead of capital
appreciation. They therefore distribute a substantial part of their
distributable surplus to the investor by $ay of dividend distribution.
Such schemes usually declare quarterly dividends and are suitable for
conservative investors $ho have medium to long term investment
hori&on and are loo%ing for regular income through dividend or steady
capital appreciation.
Mone# Market S!he*e"
+nvest in short term instruments such as commercial paper 0/"!2,
certificates of deposit 0/4!2, treasury bills 0T-,ill!2 and overnight
money 0/all!2.
Deast volatile of all the types of schemes because of their investments in
money mar%et instrument $ith short-term maturities.
Are popular $ith institutional investors and high net $orth individuals
having short-term surplus funds.
Gi%t F+nd"
This scheme primarily invests in *overnment 4ebt. #ence the investor
usually does not have to $orry about credit ris% since *overnment 4ebt is
generally credit ris% free.
H#'rid S!he*e"
These schemes are commonly %no$n as balanced schemes. These
schemes invest in both equities as $ell as debt.
,y investing in a mi- of this nature, balanced schemes see% to attain the
ob'ective of income and moderate capital appreciation and are ideal for
investors $ith a conservative, long-term orientation.
Inde6 F+nd"
Replicate the portfolio of a particular inde- such as the ,S Sensitive
inde-, SL" FS @8 inde- 0Fifty2, etc
+nvest in the securities in the same $eight age comprising of an inde-.
FAHs of such schemes $ould rise or fall in accordance $ith the rise or
fall in the inde-, though not e-actly by the same percentage due to some
factors %no$n as Etrac%ing errorE in technical terms.
-change traded inde- funds launched by the mutual funds $hich are
traded on the stoc% e-changes
Ba%an!ed F+nd
Aim of balanced funds is to provide both gro$th and regular income as
such schemes invest both in equities and fi-ed income securities
Appropriate for investors loo%ing for moderate gro$th.
They generally invest =8-M8A in equity and debt instruments.
FAHs of such funds are li%ely to be less volatile compared to pure equity
funds
Con"tit+tion
Schemes can be classified as /losed-ended or >pen-ended depending upon
$hether they give the investor the option to redeem at any time 0open-
ended2 or $hether the investor has to $ait till maturity of the scheme.
MUTUAL FUND INDUSTR) IN INDIA
The mutual fund industry in +ndia started in 6:M< $ith the formation of
5nit Trust of +ndia, at the initiative of the *overnment of +ndia and
Reserve ,an% . The history of mutual funds in +ndia can be broadly
4ivided into four distinct phases
Fir"t (ha"e 7 /89:-;<
5nit Trust of +ndia 05T+2 $as established on 6:M< by an Act of "arliament.
+t $as set up by the Reserve ,an% of +ndia and functioned under the
Regulatory and administrative control of the Reserve ,an% of +ndia. +n
6:?7 5T+ $as de-lin%ed from the R,+ and the +ndustrial 4evelopment ,an%
of
+ndia 0+4,+2 too% over the regulatory and administrative control in place
of R,+. The first scheme launched by 5T+ $as 5nit Scheme 6:M=. At the
end
of 6:77 5T+ had Rs.M,?88 crores of assets under management.
Se!ond (ha"e 7 /8;<-/881 =Entr# o& (+'%i! Se!tor F+nd">
6:7? mar%ed the entry of non- 5T+, public sector mutual funds set up by
public sector ban%s and Dife +nsurance /orporation of +ndia 0D+/2 and
*eneral +nsurance /orporation of +ndia 0*+/2. S,+ (utual )und $as the
)irst non- 5T+ (utual )und established in 3une 6:7? follo$ed by /anban%
(utual )und 04ec 7?2, "un'ab Fational ,an% (utual )und 0Aug 7:2, +ndian
,an% (utual )und 0Fov 7:2, ,an% of +ndia 03un :82, ,an% of ,aroda
(utual
)und 0>ct :;2. D+/ established its mutual fund in 3une 6:7: $hile *+/ had
set up its mutual fund in 4ecember 6::8.At the end of 6::<, the mutual
fund industry had assets under management
of Rs.=?,88= crores.
Third (ha"e 7 /881-0??1 =Entr# o& (riate Se!tor F+nd">
9ith the entry of private sector funds in 6::<, a ne$ era started in the
+ndian mutual fund industry, giving the +ndian investors a $ider choice of
fund families. Also, 6::< $as the year in $hich the first (utual )und
Regulations came into being, under $hich all mutual funds, e-cept 5T+
$ere
to be registered and governed. The erst$hile 1othari "ioneer 0no$ merged
$ith )ran%lin Templeton2 $as the first private sector mutual fund
registered in 3uly 6::<.
The 6::< S,+ 0(utual )und2 Regulations $ere substituted by a more
comprehensive and revised (utual )und Regulations in 6::M. The industry
no$ functions under the S,+ 0(utual )und2 Regulations 6::M.
The number of mutual fund houses $ent on increasing, $ith many foreign
mutual funds setting up funds in +ndia and also the industry has $itnessed
several mergers and acquisitions. As at the end of 3anuary ;88<, there
$ere << mutual funds $ith total assets of Rs. 6,;6,78@ crores. The 5nit
Trust of +ndia $ith Rs.==,@=6 crores of assets under management $as $ay
ahead of other mutual funds.
Fo+rth (ha"e 7 "in!e Fe'r+ar# 0??1
+n )ebruary ;88<, follo$ing the repeal of the 5nit Trust of +ndia Act 6:M<
5T+ $as bifurcated into t$o separate entities. >ne is the Specified
5nderta%ing of the 5nit Trust of +ndia $ith assets under management of
Rs.;:,7<@ crores as at the end of 3anuary ;88<, representing broadly, the
assets of 5S M= scheme, assured return and certain other schemes. The
Specified 5nderta%ing of 5nit Trust of +ndia, functioning under an
administrator and under the rules framed by *overnment of +ndia and does
not come under the purvie$ of the (utual )und Regulations.
The second is the 5T+ (utual )und Dtd, sponsored by S,+, "F,, ,>, and
D+/.+t is registered $ith S,+ and functions under the (utual )und
Regulations.
MUTUAL FUND INDUSTR) IN @AI(UR
Doo%ing at the current scenario it can be said that mutual fund industry in
3aipur is in booming stage. The corpus si&e is 6@ cr per month L is gro$ing
at the rate of 688 percent $hich is simply remar%able.The prominent
segment in the industry are 'e$ellery, carpet, handicrafts, garments, small
scale industries etc.
/arpet L garment manufcturing are the most potential segment in the
industry they alone comprises of =8A of the total mar%et.These e-porters are
al$ays in the need of investment avenues$here there funds donBt get
bloc%ed and generate returns as per to the requirements considering these
circumstances it can be said mutual fund is the best option available to them
and many e-porters are coming for$ard to avail this lucrative opportunity.
"R>45/T RAF*
EAUIT) (RODUCTS BALANCE
(RODUCTS
DEBT (RODUCTS
1ota% (id-cap 1ota% ,alance 1ota% ,ond
1ota% (F/ 1ota% )le-i 4ebt
1ota% *uilt
1ota% +ncome "lus
1ota% Diquid
A Brie& Introd+!tion o& 2ario+" M+t+a% F+nd S!he*e
Kotak Bond
1ota% ,ond is a pure debt scheme, $ith a diversified portfolio, comprising
of government, "S5 and corporate bonds. 1ota% ,ond aims to reduce ris%
by investing in instruments $ith a credit rating of AA- or higher. The
scheme offers dividendsU = times a year. 1ota% ,ond is available $ith three
investment plans.
Kotak F%e6i De't
To ma-imise returns through an active management of a portfolio of debt
and money mar%et securities.
8A to :@A in debt instruments $ith maturity more than 6 year. @A to 688A
in debt and money mar%et instruments $ith maturity less than 6 year.
Kotak Gi%t
1ota% *ilt is a scheme that allo$s the retail investor to invest in the
other$ise $holesale government securities mar%et. 1ota% *ilt invests in the
gilt-edged government securities giving you a &ero credit ris% investment
option. +t recogni&es that for you, safety is prime, giving you the liquidity of
a savings account $ith attractive returns.
Kotak In!o*e $%+"
To enhance returns over a portfolio of debt instruments $ith a moderate
e-posure in equity and equity related instruments.
Kotak Li5+id
A money mar%et scheme that see%s to provide reasonable returns $ith a high
level of liquidity through investments in (oney mar%et instruments,
corporate and government debt securities as $ell as repos in permitted
securities of different maturities.
There shall be t$o options under the Scheme. They are C
A. Gro.th O$tion3 5nder this option, there $ill be no distribution of
income and the return to investors $ill be only by $ay of capital gains, if
any, through redemption at Applicable FAH of 5nits held by them.
B. Diidend Re-ine"t*ent O$tion3 The Trustee may decide to distribute
by $ay of dividend if distributable surplus is available and adequate for
distribution in the opinion of the Trustee. The TrusteeJs decision $ith regard
to such availability and adequacy of surplus, rate, timing and frequency of
distribution shall be final. The 4ividend $ill be declared once a $ee% and
the record date shall be every (onday.
Kotak Ba%an!e
1ota% ,alance see%s to e-ploit the capital appreciation of equity and the
stable returns of debt. ,y investing a substantial amount in debt and money
mar%et instruments, the scheme aims to minimi&e the ris% that arises out of
even the most carefully pic%ed equity stoc%s.
The scheme usually has an e-posure of about @8A to M8A on equity and the
rest in debt instruments.
Kotak Mid-Ca$
1ota% (id-/ap $ill try to identify and invest in mid-cap companies that $ill
become tomorro$Bs large-caps.
>n their $ay to becoming large corporates, companies pass through a life
cycle. 9hen they reach the mid-cap stage, companies have survived the
highest-ris% part of their life cycle 0the small-cap stage2 and are entering a
period of long-term gro$th.
Kotak MNC
1ota% (F/ is a equity gro$th scheme that see%s to offer gro$th through
investments in reputed multinational companies operating in +ndia or
companies $here (F/s have a substantial sta%e.The investment focus is on
companies that have good governance, strong brands, mar%et leadership and
strong parentage.
The scheme is suitable for investors $ith a time hori&on of < to @ years.
M+t+a% F+nd Ana%#"i"

4uring my study + found out some basic rules for investing in mutual funds
/. Assess yourselfC self assessment of oneBs needI e-pectation and ris% profile
is of prime importance failing $hich, one $ill commit more mista%es in
putting money in right place. >ne should identify the degree of ris% bearing
capacity the one has .
0. Try to understand $here money is goingC +t is important to identify the
nature of investment and to %no$ if one is comfortable $ith the investment.
1. 4onBt rush on pic%ing funds, thin% firstC it is important to %no$ theris%
associated $ith the funds and align $ith the quantum to %no$ the ris% the
one is $illing to ta%e.
:. +nvest donBt Speculate
B. 4onBt put all the eggs in one buc%etC >ne should invest in different asse$t
classes and is generally the best option as it averages the ris% in each
category
9. ,e RegularC +nvesting should be a habit not an e-ercise underta%en at ones
$ish
<. 4o your home$or%C +t is important for all investers to research the avenue
available to them in irrespective of the investers category the belong to,this
is important bc& an informed invester is in better position to ta%e decision
;. )ind the right fundsC)inding funds that do not have much fees is of atmost
importance as the fee charged ultimately goes from the poc%et of investor.
8. 1eep the proper trac% of your investment.
/?. 1no$ $hen to sell your mutual fundC %no$ing $hen to e-it a fund to is of
utmost importance. >ne should boo% profits immediately $hen enough has
been earned.

In"+ran!e - An Oerie.
9ith largest number of life insurance policies in force in the $orld,
+nsurance happens to be a mega opportunity in +ndia. +tBs a business gro$ing
at the rate of 6@-;8 per cent annually and presently is of the order of Rs =@8
billion. Together $ith ban%ing services, it adds about ? per cent to the
countryBs *4". *ross premium collection is nearly ; per cent of *4" and
funds available $ith D+/ for investments are 7 per cent of *4".
Ket, nearly 78 per cent of +ndian population are $ithout life insurance cover,
health insurance and non-life insurance continue to be belo$ international
standards. And this part of the population is also sub'ect to $ea% social
security and pension systems $ith hardly any old age income security. This
itself is an indicator that gro$th potential for the insurance sector is
immense.
A $ell-developed and evolved insurance sector is needed for economic
development as it provides long term funds for infrastructure development
and at the same time strengthens the ris% ta%ing ability. +t is estimated that
over the ne-t ten years +ndia $ould require investments of the order of one
trillion 5S dollar. The +nsurance sector, to some e-tent, can enable
investments in infrastructure development to sustain economic gro$th of the
country.
9ith a large capital outlay and long gestation periods, infrastructure pro'ects
are fraught $ith a multitude of ris%s throughout the development,
construction and operation stages. These include ris%s associated $ith
pro'ect implementaion, including geological ris%s, maintenance, commercial
and political ris%s. 9ithout covering these ris%s the financial institutions are
not $illing to commit funds to the sector, especially because the financing of
most private pro'ects is on a limited or non- recourse basis.
+nsurance companies not only provide ris% cover to infrastructure pro'ects,
they also contribute long-term funds. +n fact, insurance companies are an
ideal source of long term debt and equity for infrastructure pro'ects. 9ith
long term liability, they get a good asset- liability match by investing their
funds in such pro'ects.
+R4A regulations require insurance companies to invest not less than 6@
percent of their funds in infrastructure and social sectors. +nternational
+nsurance companies also invest their funds in such pro'ects.
+nsurance is a federal sub'ect in +ndia. There are t$o legislations that govern
the sector- The +nsurance Act- 6:<7 and the +R4A Act- 6:::.
HISTOR)
The history of life insurance in +ndia dates bac% to 6767 $hen it $as
conceived as a means to provide for nglish 9ido$s. +nterestingly in those
days a higher premium $as charged for +ndian lives than the non-+ndian
lives as +ndian lives $ere considered more ris%ier for coverage.
The ,ombay (utual Dife +nsurance Society started its business in 67?8. +t
$as the first company to charge same premium for both +ndian and non-
+ndian lives. The >riental Assurance /ompany $as established in 6778. The
first general insurance company- Tital +nsurance /ompany Dimited, $as
established in 67@8. Till the end of nineteenth century insurance business
$as almost entirely in the hands of overseas companies.
+nsurance regulation formally began in +ndia $ith the passing of the Dife
+nsurance /ompanies Act of 6:6; and the provident fund Act of 6:6;.
Several frauds during ;8Js and <8Js sullied insurance business in +ndia. ,y
6:<7 there $ere 6?M insurance companies. The first comprehensive
legislation $as introduced $ith the +nsurance Act of 6:<7 that provided
strict State /ontrol over insurance business. The insurance business gre$ at
a faster pace after independence. +ndian companies strengthened their hold
on this business but despite the gro$th that $as $itnessed, insurance
remained an urban phenomenon.
The *overnment of +ndia in 6:@M, brought together over ;=8 private life
insurers and provident societies under one nationalised monopoly
corporation and D+/ $as born. Fationalisation $as 'ustified on the grounds
that it $ould create much needed funds for rapid industriali&ation. The 0non-
life2 insurance business, ho$ever, continued to thrive $ith the private sector
till 6:?;. Their operations $ere restricted to organised trade and industry in
large cities. The general insurance industry $as nationalised in 6:?;. 9ith
this, nearly 68? insurers $ere amalgamated and grouped into four
companies- Fational +nsurance /ompany, Fe$ +ndia Assurance /ompany,
>riental +nsurance /ompany and 5nited +ndia +nsurance /ompany. These
$ere subsidiaries of the *eneral +nsurance /ompany 0*+/2.
The *overnment of +ndia liberalised the insurance sector in (arch ;888
$ith the passage of the +nsurance Regulatory and 4evelopment Authority
0+R4A2 ,ill, lifting all entry restrictions for private players and allo$ing
foreign players to enter the mar%et $ith some limits on direct foreign
o$nership. 5nder the current guidelines, there is a ;M percent equity cap for
foreign partners in an insurance company.
MaCor $%a#er" in in"+ran!e "e!tor
+n the life +nsurance segment the Dife +nsurance /orporation of +ndia 0D+/2
is the ma'or player. The D+/ has ;8@8 branches. +t is constituted in to seven
Vones. /urrently, there are @,M8,88 D+/ agents in +ndia.
The Dife +nsurance /orporation has been $itnessing a ma'or fall in its
mar%et share. +t has fallen to 78.= percent in >ctober from 76.6 percent a
month ago. And private insurers are %no$n to have grabbed around ;8
percent of the life insurance pie. 9hile the reasons are many, $ithdra$al of
certain incentives of development officers is said to be one of the reasons for
the poor performance. D+/ still holds :8.: percent of the mar%et as regards
policies and its premium income from ne$ policies $as over Rs ::@; crore
till >ctober.
A&ter %i'er%i"ation o& in"+ran!e "e!tor in 0???-?/D *an# $riate $%a#er"
entered into the *arket Ethe *aCor !o*$anie" are a" &o%%o." 3
6. HDFC Standard Li&e +nsurance /ompany Dtd.
;. Ma6 Ne. )ork Li&e +nsurance /ompany Dtd.
<. ICICI (r+dentia% Dife +nsurance /ompany Dtd.
=. Kotak Mahindra O%d M+t+a% Li&e +nsurance /ompany Dtd.
@. Bir%a S+n Li&e In"+ran!e /ompany Dtd.
M. Tata AIG Li&e +nsurance /ompany Dtd.
?. SBI Dife +nsurance /ompany Dtd.
7. ING 2#"#a Dife +nsurance /ompany "rivate Dtd.
:. BaCaC A%%ianF Dife +nsurance /ompany Dtd.
68.Aia Dife +nsurance /o. +ndia "vt. Dtd.
Among private life insurance companies, +/+/+ "rudential tops the charts
$ith a mar%et share of @.? percent follo$ed by ,irla Sun Dife - ;.: percent,
,a'a' Allian& ;.= percent, S,+ Dife ;.; percent ,1ota% (ahindra 6.87
percent.
MA@OR (LA)ERS IN INSURANCE
SECTOR
6 D+/ 78.=8A
; +/+/+ "rudential @.?8A
< ,irla Sun Dife ;.:8A
= ,a'a' Allian' ;.=8A
@ S,+ Dife ;.;8A
M 1ota% Dife +nsuarance 6.68A
? >thers @.<8A
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
1

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IN2ESTMENT (LANS
6. 1ota% Safe +nvestment "lan +
;. 1ota% Safe +nvestment "lan ++
<. 1ota% )le-i +nvestment "lan
=. 1ota% Retirement "lan 05nit Din%2
Kotak Sa&e Ine"t*ent (%an I
1ota% Safe +nvestment "lan is an investment cum insurance plan, $here $e
invest your money in capital mar%ets and you get mar%et-lin%ed returns. All
gains from the mar%ets are yours to ta%e and in case the mar%ets do not
perform $ell, you $ould still get bac% the guaranteed Sum Assured. Sounds
interesting. Read on.
"What is Kotak Safe Investment Plan?"
This plan is an opportunity to invest in the capital mar%ets and ma%e mar%et
lin%ed returns. The plan assures you of a minimum guaranteed amount in
case of death or on maturity. Thus, $hile it invests your money in capital
mar%ets, and gives you an opportunity to ma%e high returns, it protects your
do$nside. 9hatBs more, these returns are ta--free to you.
(oney (ar%et )und - The portfolio $ill consist of money mar%et
investments such as treasury bills, commercial paper, certificates of deposit,
short-term deposits, bills of e-change, debentures, bonds and *overnment
securities etc.
Kou have the fle-ibility to choose from four $ell-managed
investment funds namely (oney (ar%etP *iltP ,alancedP
*ro$th, based on your appetite for ris% and commensurate
returns. At any point in time, you have complete fle-ibility to
s$itch your moneys 0or a part of it2 from one fund to the
other. The s$itching
Kou may s$itch your funds any number of times during the
term of the plan, at daily declared selling and buying prices
FAHs 0Fet Asset Halue2.

Kou can monitor the daily performance of the fund on our $ebsite
$$$.%ota%lifeinsurance.com.
+n case you miss your premium payments after the first < years, the
Automatic /over (aintenance facility $ould ensure that the policy
remain in force.
The units, from your holdings, $ould be sold at the prevailing selling
price to meet the ris% and e-pense charges, so that your policy
continues to remain in force. As long as the value of units is sufficient
to meet the e-penses, the policy $ould be in force. >n maturity, the
residual value of units $ould be paid as a benefit to the policyholder.
Doan facility available after the policy has been in force for < years.
6@ day free-loo% period.
GHo. doe" thi" $%an .orkHG
The premiums paid by you $ill be invested in the fund of your choice after
deducting certain administration and other e-penses. 0"lease refer to the
section on charges2. ntry into a plan $ould be based on the buying price as
on that date.
4uring the term of the plan, your financial requirements could change. And
you may $ant s$itch bet$een funds. Kour units in the fund $ould be sold at
the selling price and other units bought at the buying price as per your
instructions.
"ermanent 4isability ,enefitC This benefit can be added to the basic life
insurance plan to provide financial support in case of permanent disability
due to an accident. The amount payable under this benefit $ould be paid out
as an annuity. The ma-imum "ermanent 4isability ,enefit that you can
avail of is equal to the basic sum assured 0sub'ect to a ma-imum of Rs.68
la%hs2.
"What are the charges applicable?"
Sales related and other e-penses in the first year $ould be 6=A. +n
subsequent years, the e-penses $ould be <.@A.
5nder$riting charges as applicable.
(ortality charges and administration charges as applicable.
Annual )und (anagement charges as follo$sC
(oney mar%et - 8.MA, *ilt )und - 6.8A, ,alanced )und - 6.<A,
*ro$th fund - 6.@A
0To %no$ more on charges, please refer to the sheet E4etails on
/hargesE2.
"An Illustration"
3ay Sharma, $ho is <8 years old, $ants a product that gives him mar%et
lin%ed returns as $ell as a life cover. #e, therefore, decides to buy the 1ota%
Safe +nvestment "lan for a period of 68 years. #e $ants to invest Rs.@8,888
per year in the plan. #e chooses to put all his money in the *ro$th funds.
,ased on this amount of investmentU, 3ayBs sum assured $or%s out to be
Rs.@<;,888.
U Actual premium amount is Rs.@8,8<; p.a.
THE KOTAK SAFE IN2ESTMENT (LAN-II3
1ota% Safe +nvestment "lan is an investment cum insurance plan, $here
1ota% invest customersB money in capital mar%ets and they get mar%et-
lin%ed returns. All gains from the mar%ets are their to ta%e and in case the
mar%ets do not perform $ell, they $ould still get bac% the guaranteed Sum
Assured. Sounds interesting. Read on.
GWhat i" Kotak Sa&e Ine"t*ent (%anHG
This plan is an opportunity to invest in the capital mar%ets and ma%e mar%et
lin%ed returns. The plan assures customers of a minimum guaranteed amount
in case of death or on maturity. Thus, $hile it invests their money in capital
mar%ets, and gives them an opportunity to ma%e high returns, it protects
their do$nside.
Mone# Market F+nd - The portfolio $ill consist of money mar%et
investments such as treasury bills, commercial paper, certificates of deposit,
short-term deposits, bills of e-change, debentures, bonds and *overnment
securities etc.
(inimum (a-imum Short term +nvestments such as money mar%et
instruments, short term ban% deposits, call money and cash 688A 688A
Gi%t F+nd - The portfolio $ill primarily consist of *overnment securities
and infrastructure debt assets as defined in the +R4A regulations as per the
follo$ing indicative investment pattern.
(inimum (a-imum +nvestment in *overnment P *overnment guaranteed
securities 78A 688A Short term +nvestments such as money mar%et
instruments, short term ban% deposits, call money and cash 8A ;8A
Ba%an!ed F+nd - The portfolio $ill include primarily listed +ndian equity
shares, debt instruments including corporate debt, *overnment securities
and short-term investments.
(inimum (a-imum +nvestment in listed equity shares <8A M8A
+nvestment in *overnment P *overnment guaranteed securities and other
debt securities and infrastructure assets ;8A ?8A Short term +nvestments
such as money mar%et instruments, short term ban% deposits, call money and
cash 8A ;8A
Gro.th F+nd - The portfolio $ill consist of a professionally managed
portfolio primarily invested in listed equity and equity-related investments.
Security $ill be enhanced through holdings in *overnment and other debt
securities, infrastructure assets as defined in the +R4A regulations together
$ith short-term investments.
(inimum (a-imum +nvestment in equity shares P equity related
instruments =8A 78A +nvestment in *overnment P *overnment guaranteed
securities and other debt securities and infrastructure assets ;8A M8A Short
term +nvestments such as money mar%et instruments, short term ban%
deposits, call money and cash 8A ;8A
Allocation of premiums to (( fund and other funds $ould be as per +R4A
regulations
GWho !an aai% o& the $%anHI
#o$ old do you have to be to avail of this planT(inimum age - 67 years
(a-imum age - M@ years)or $hat term can you avail of this planT68 yrs - <8
yrsAt $hat intervals can + pay the premiumTOuarterly #alf- yearly
KearlyGWhat are adanta,e" o&&ered '# Kotak Sa&e Ine"t*ent (%anHG
/ustomers have the fle-ibility to choose from four $ell-managed
investment funds namely (oney (ar%etP *iltP ,alancedP *ro$th, based on
their appetite for ris% and commensurate returns.
G At any point in time, they have complete fle-ibility to s$itch their moneys
0or a part of it2 from one fund to the other. The s$itching bet$een funds is a
simple process of filling in a S$itch )orm! and sending it to 1ota% sales
office.
G /ustomers may s$itch their funds any number of times during the term of
the plan, at daily declared selling and buying prices FAHs 0Fet Asset
Halue2.
G /ustomers can monitor the daily performance of the fund on 1ota%Bs
$ebsite $$$.%ota%lifeinsurance.com.
G +n case customers miss their premium payments after the first < years, the
Automatic /over (aintenance facility $ould ensure that the policy remain
in force.
The units, from their holdings, $ould be sold at the prevailing selling price
to meet the ris% and e-pense charges, so that their policy continues to remain
in force. As long as the value of units is sufficient to meet the e-penses, the
policy $ould be in force. >n maturity, the residual value of units $ould be
paid as a benefit to the policyholder.
G Doan facility available after the policy has been in force for < years.
G 6@ day free-loo% period.
GHo. doe" thi" $%an .orkHG
The premiums paid by customers $ill be invested in the fund of their choice
after deducting certain administration and other e-penses. ntry into a plan
$ould be based on the buying price as on that date.
,uying price is the price at $hich customers enter a fund, based on the
mar%et value per unit, increased by the relevant trading costs associated $ith
buying the assets.
4uring the term of the plan, their financial requirements could change. And
they may $ant s$itch bet$een funds. Their units in the fund $ould be sold
at the selling price and other units bought a
the buying price as per their instructions Selling price is the price at $hich
they can sell units, based on the mar%et value per unit, less the relevant
trading costs associated $ith selling the assets.
GWhat do I re!eie on *at+rit# o& the $%anHG
>n maturity, customers $ould receive either the Sum Assured or the mar%et
value of the units, $hichever is higher.
GWhat ha$$en" in the eent o& death o& the %i&e in"+redHG
+n the unfortunate event of death of the life insured, the beneficiary $ould
receive either the Sum Assured or the mar%et value of the units $hichever is
higher.
GWhat a%+e-add" !an !+"to*er" o$t &orHG
/ustomers may avail of the follo$ing value-adds for a nominal premium at
the time of ta%ing the plan. The aggregate premium on all value-adds should
not e-ceed <8A of the basic 1ota% Safe +nvestment "lan premium.
Term P "referred Term ,enefitC +n the event of death during the term of this
benefit, the beneficiary $ould receive an additional death benefit amount,
$hich is over and above the sum assured. The ma-imum amount of benefit
they can avail is equal to the basic sum assured. 9here the Term ,enefit
cover applied for is more than Rs.68 la%hs, better rates may apply, sub'ect to
meeting eligibility requirements.
A!!identa% Death Bene&it3 This benefit provides an additional amount 0over
and above the sum assured2 to the beneficiary in the event accidental death
of the life insured. The ma-imum cover available under this benefit is equal
to the basic sum assured 0sub'ect to a ma-imum of Rs.68 la%hs2.
(er*anent Di"a'i%it# Bene&it3 This benefit can be added to the basic life
insurance plan to provide financial support in case of permanent disability
due to an accident. The amount payable under this benefit $ould be paid out
as an annuity. The ma-imum
"ermanent 4isability ,enefit that they can avail of is equal to the basic sum
assured 0sub'ect to a ma-imum of Rs.68 la%hs2.
"ermanent 4isability is defined as permanent and immediate inability to
$or% or permanent loss of use of t$o limbs or total and permanent loss of
sight.
Kotak F%e6i (%an
As you move through different stages in life, your financial priorities $ill
change. 9hen you are young, you may $ish to invest more into investment
products. As you gro$ older and as responsibilities increase, you may $ant
to increase the amount that you set aside for insurance, to protect your
family against uncertainties. 9e at 1ota% Dife +nsurance understand the
importance of fle-ibility in an insurance plan. #ence, $e bring to you the
1ota% )le-i "lan.
"What is the Kotak Flexi Plan?"
An investment cum insurance plan that can be customi&ed to meet your
constantly evolving needs. 9hile on one hand it lets you decide the amount
of insurance cover that you $ant, on the other hand, it invests a portion of
the premium in the capital mar%ets to ensure that your money $or%s hard for
you.
At the same time the plan ensures that you have enough fle-ibility to meet
your financial ob'ective of savings and protection, both through this single
plan. The plan gives you the option to add lump sum in'ections, $hen you
$ant. And $hatBs more it offers you the fle-ibility to $ithdra$ your funds in
part or in full.
Mat+rit# Bene&it3 Kou have the option to choose the sum assured that you
$ould $ant on maturity. This sum assured $ould be referred to as the
maturity sum assured or SA6. "ortion of the premium corresponding to this
amount $ould be referred to as the investment premium or "6.
>n maturity, you $ould receive either the SA6 0$hich is guaranteed2, or the
mar%et value of units, $hichever is higher.
Death Bene&it3 The plans offer you the fle-ibility to decide the amount of
insurance cover that you $ant. The amount of insurance cover selected
$ould be referred to as the insurance sum assured or SA;. "ortion of the
premium corresponding to SA; $ould be referred to as the insurance
premium or ";.
+n the unfortunate event of death of the life insured, the beneficiary $ould
receive SA; plus the mar%et value of the units, less unpaid "; premiums.
F%e6i'i%it# in SA03 4uring the term of the plan, your need for life insurance
cover may change. Kou may need increased protection $hen you ta%e up
additional liabilities or $hen your financial responsibilities change. )or e.g.C
Avail of a home loan P personal loan
*et married
,irth of your child or childBs education
Alternatively, on occasions such as closure of loans, children becoming
independent and so on, your liabilities $ill decrease.
L+*$ S+* InCe!tion3 There are times $hen you have e-cess surplus funds.
Kou may $ant to invest this amount into the capital mar%et and gain more.
The plan allo$s you to ma%e lump sum in'ection into the Supplementary
Account, $ithout affecting the sum assured.
Supplementary Account is a separate account that $ill be set for lump sums
that you in'ect from time to time.
(art Withdra.a%3 The plan gives you option to $ithdra$ your funds in
part, by liquidation of your units. The table given belo$ illustrates the
amount payable 0net of charges2 for every Rs.688 of part $ithdra$al.
(ain AccountU Supplementary Account
Kear 6 Fil Fil
Kear ; L Kear < @8 688
Kear = Kear 68 :?.@ 688
After year 68 688 688
U(ain Account is the account in $hich units bought from "6 0net of
charges2 is held on your behalf, in the )und specified by you.
9hen you request us for $ithdra$als, $e $ould first liquidate units from
your Supplementary Account. And only if need be, $ould your (ain
Account be liquidated. "art $ithdra$als from the (ain Account $ill lead to
a proportionate reduction in SA6.
S+rrender3 "lan $ill acquire a surrender value at the end of year 6. Table
belo$ outlines the surrender values payable, as a percentage of the value of
units.
(ain Account Supplementary Account
Kear 6 Fil Fil
Kear ; L Kear < @8A 688A
Kear = Kear 68 :?.@ 688A
After year 68 688A 688A
(aid U$ O$tion3 +n case you do not $ish to pay any further premiums, you
can ma%e the policy paid up. 9hen the policy is in paid up mode, the
amount paid out on death or maturity $ill be the mar%et value of units. 5nits
from your fund $ould be liquidated to recover the administration charge.
5nder the non-forfeiture option, if the value of units falls belo$ Rs 68,888P-
the policy shall be foreclosed and the surrender value shall be paid.
Reia% O$tion3 +n case your policy lapses, you can revive the benefits by
ma%ing an application $ithin a period of five years.
Ine"t*ent O$tion"3 Kou have a choice of M funds. +nvestment "remium or
"6 0net of charges2 $ould be invested in any or a combination of the funds,
specified by you.
Mone# Market F+nd - The fund see%s to provide reasonable returns
commensurate $ith lo$ ris% through investments in money mar%et
instruments such as treasury bills, commercial paper, call money
mar%et, etc.
F%oatin, Rate F+nd The fund see%s to deliver returns in line $ith
the mar%et interest rate, from a portfolio invested primarily in floating
rate debt instruments.
Gi%t F+nd - The fund see%s to generate returns through investments
primarily in government securities. The fund gives you an option to
invest in &ero credit ris% /entral *overnment securities, as it
recogni&es that safety for you is prime.
Bond F+nd - The fund see%s to generate returns from a portfolio
constituted primarily of high-quality debt paper issued by corporates
in +ndia.
Ba%an!ed F+nd - The fund see%s to achieve steady income and
capital appreciation from a portfolio constituted of high quality debt
securities and listed equity.
Gro.th F+nd - The fund see%s to achieve capital appreciation
through investments in listed equity and equity-related investments.
Security $ill be enhanced through holdings in highly rated debt
securities.
(oney
(ar%et
)loati
ng
Rate
*ilt ,ond
,alance
d
*ro$th
(oney (ar%et P /ash 688A
8A -
;8A
8A -
;8A
8A -
;8A
8A -
;8A
8A -
;8A
)loating Rate 4ebt -
;@A -
688A
- - - -
*overnment Securities -
8A -
?@A
78A
-688A
8A -
?@A
;8A -
?8A
;8A -
M8A
/orporate 4ebt - - -
;@A -
688A
-
quity shares - - - -
<8A -
M8A
-
quity L Related +nstruments - - - - -
=8A -
78A
U "ercent refers to minimum and ma-imum limits $ithin $hich investments
can be made in respective instruments. Allocation of money to (oney
(ar%et )und and other funds $ould be as per +R4A guidelines P directions.
(oney can be par%ed in the (oney (ar%et )und only in the last policy year.
"What value-adds can you opt for?"
Kou may avail of the follo$ing value-adds for a nominal premium at the
time of ta%ing the plan.
A!!identa% Death Bene&it3 +t provides an additional amount 0over and
above the death benefit2 to the beneficiary in the event accidental death of
the life insured.
(er*anent Di"a'i%it# Bene&it3 This benefit is designed to provide financial
support in case of permanent disability due to an accident.
A!!identa% Di"a'i%it# G+ardian Bene&it3 +n case the policyholder is
permanently disabled as a result of accident, this benefit %eeps the policy
alive by $aiving all future premiums on the policy.
"What are the tax benefits?"
Section 78/, 6806842 of +ncome Ta- Act $ould apply. "remiums paid for
/ritical +llness ,enefit qualify for benefits under Section 784. These
benefits are as per the currently prevailing ta- regulations and you are
advised to consult your ta- advisor for details.
U"lease consult your ta- advisor for details.
Adanta,e" o& the (%an3
)le-ibility to choose your investment and insurance amounts.
*uaranteed maturity sum assured, SA6, to protect your money from a
do$nside, even $hen you ta%e an equity e-posure.
>ption to choose from si- $ell-managed investment funds, of varying
ris%-return profile. And the fle-ibility to s$itch bet$een funds,
$ithout attracting any ta- liability.
Dimited "remium "ayment option to help you pay off your premiums
over a short period of <,@,?,68 or 6@ years.
>pportunity to ma%e lump sum in'ections, so that your surplus funds
do not lie idle in a savings account.
+n case of a financial emergency, you have the follo$ing optionsC
(a%e partial or full $ithdra$als of funds
(a%e policy paid up
Avail of automatic cover maintenance facility
Doan facility available.
E%i,i'i%it#
ntry Age
(in- 6= years
(a-- M@ years
Term of the "lan
(in -68 years
(a- <8 years
Dump Sum +n'ection Amount
(in Rs.68,888
Thereafter in multiples of Rs.68,888
"art 9ithdra$als Amount
(in Rs.68,888
(a- Sub'ect to leaving behind a balance of
Rs.68,888 in the (ain Account
SA; (in - Rs.@,8888
"6 0including policy fees2
Mode
A*o+nt
Ouarterly Rs.;,M;8
#alf Kearly Rs.@,66@
Kearly Rs.68,888
"lease noteC
Q +n case of limited premium payment option, the minimum "6 is Rs.@8, 888
Q +n case of life assured being a minor or in case $here the life assured is M6
years of age or older 0at the time of entry into the plan2, SA; $ould be
restricted to Rs.@8888.
Q )or all policies $ith SA; higher than Rs.@8888, $hen the life assured
completes ?8 years of age, SA; $ould automatically reduce to Rs.@8888.
Q The total premium payable is "6 plus "; plus a fi-ed policy cost of Rs.688.
Char,e"
Sales related and other charges in the first year and subsequent $ould
be as per the table belo$. /harges are e-pressed as a percent age of
"6.
"remium "aying Term Kear 6
Kear ;
>n$ards
< years ;7A =.<?@A
@,? years =;A =.<?@A
68 to 6= years @MA =.<?@A
6@ years and more M@A =.<?@A
>ne time SA6 related charge 8.8;A of SA6
+n the first year, the administration charge $ould be ?A of the annual
premium, for annual premium upto Rs.;8,888. )or portion of
premium over Rs.;8,888, the charge $ould be <A of that part of the
annual premium e-ceeding Rs ;8,888. +t is to be noted that in the first
year, the ma-imum administration charge $ould be limited to a
ma-imum of Rs.<8,888.
+n subsequent years, the administration charge $ould be =A of the
annual premium, for annual premium upto Rs.;8,888. )or portion of
premium over Rs.;8,888, the charge $ould be ;A of that part of the
annual premium e-ceeding Rs ;8,888.
Annual )und (anagement charges as follo$sC (oney mar%et - 8.MA,
*ilt )und - 6.8A, )loating Rate )und 6.;A, ,ond )und 6.;A,
,alanced )und - 6.<A, *ro$th fund - 6.@A
These are deducted from the unit price on daily basis
,uy-sell spread currently applicable areC (oney mar%et - .86A, *ilt
)und - 8.68A, )loating Rate )und 8.;;A, ,ond )und 8.;;A,
,alanced )und - 8.@8A, *ro$th fund 8.@7A. +t should be noted that
the spread $ould remain in the fund.
Dump sum in'ections $ould have an entry load of ;.@A of the Dump
sum in'ection
"lease noteC
Q The Annual )und (anagement charges $ould not increase beyond =8A of
the initial level.
Q The buy-sell spread $ould not e-ceed beyond6A.
Q The rene$al administration charges may be increased by a ma-imum of
=8A in first 68 years or ma-imum 688A increase after 68 years.
Q Surrender charge on the Supplementary Account $ould not e-ceed @A
Rei"ion o& Char,e"3
The company reserves the right to revise the charges including the right to
change the manner in $hich the charges are recovered. The company also
reserves the right to introduce ne$ charges. Any revision or introduction of
charges $ill be $ith prospective effect, $ith prior approval of +R4A, and
only after giving notice to policyholder.
Ine"t*ent Ri"k3
The investments in the 5nits are sub'ect to mar%et and other ris%s and
there can be no assurance that the ob'ectives of any of the plans $ill
be achieved.
The 5nit Halue of the units of each of the funds can go up or do$n
depending on the factors and forces affecting the financial and debt
mar%ets from time-to-time and may also be affected by changes in the
general level of interest rates.
The past performance of other plans of the /ompany is not
necessarily indicative of the future performance of any of these funds.
All benefits payable under the "olicy are sub'ect to the ta- la$s and
other financial enactments, as they e-ist form time to time.
"Prohibition of Rebates"
Section =6 of the +nsurance Act, 6:<7 statesC
062 Fo person shall allo$ or offer to allo$, either directly or indirectly, as an
inducement to any person to ta%e out or rene$ or continue an insurance in
respect of any %ind of ris% relating to lives or property in +ndia, any rebate of
the $hole or part of the commission payable or any rebate of the premium
sho$n on the policy, nor shall any person ta%ing out or rene$ing or
continuing a policy accept any rebate, e-cept such rebate as may be allo$ed
in accordance $ith the published prospectuses or tables of the insurer.
0;2 Any person ma%ing default in complying $ith the provision of this
section shall be punishable $ith fine, $hich may e-tend to five hundred
rupees.
Kotak Retire*ent In!o*e (%an =Unit Link>
Retirement can be more rela-ing $hen you donJt have to $orry about your
finances. specially $hen you have secured your and your familyJs future
$ith the 1ota% Retirement +ncome "lan. As an investment that is so
re$arding, it assures that even though you have stopped $or%ing, your
income continues. And you can continue living the life you love.
"What is the Kotak Retirement Income Plan (nit linke!""
The 1ota% Retirement +ncome "lan is a savings plan designed to build a
corpus for your future. +t is a unit-lin%ed plan $here your money is invested
in the funds of your choice to generate superior returns. Kour sum assured is
guaranteedU and you can en'oy the benefits of investing in the capital
mar%ets $ithout $orrying.
Kou may opt for any of the follo$ing versionsC
9ith /over
9ithout /over
Single "remium
"Who can avail of this plan?"
(inimum (a-imum
Term 68 0Single "remium @2 <8
ntry Age 67
@@ 0Single
"remium M82
Hesting Age =@ ?@
Dumpsum in'ection Rs, 68,888 per payment -
"remium payment
0including policy fees2
Ouarterly Rs.;,M;8
#alf Kearly Rs.@,66@
Kearly Rs.68,888
Single
"remium
Rs.@8,888
"What are the a!#antages of the Kotak Retirement Income Plan (nit
linke!"?"
,enefits payable on retirementU
Kou can ta%e a cash lumpsum of upto a third of the total amount of
0aNb2 C
a2 ,asic sum assured or (ain Account, $hichever is higherI and
b2 The value of units in Supplementary Account.
The balance, i.e. t$o thirds $ill be used to buy an annuity of your
choice from 1ota% Dife +nsurance or any other insurer available then
Bene&it" $a#a'%e on death
With Coer
+n case of death during the term of the plan, your beneficiary may opt for a
lumpsum or purchase an annuity $ith the total of C
The entire value of units or basic sum assured, $hichever is higherI and
The value of units in Supplementary Account.
Witho+t Coer
The value of units in the (ain Account
And the value of units in the Supplementary Account
Sin,%e (re*i+*
The entire value of units in the (ain Account or basic sum assured of
68;A of the single premium, $hichever is higher
And the value of units in the Supplementary Account
F+nd Mana,e*ent
Kou have a choice of four professionally managed funds to invest
your money in - *ilt fund, ,ond )und, )loating Rate )und and
,alanced fund. Kou may transfer your funds to the (oney (ar%et
)und during the last year of your policy term.
4epending on your ris% appetite, you may s$itch your funds during
the term of the plan at daily declared selling and buying prices, $hich
are available on our $ebsite.
Retire*ent A,e
Kou have an option to retire bet$een the age of =@ and ?@ years.
Kou can choose to retire early at any age on the grounds of ill-health
and $ithdra$ the entire value of your units. Kou $ould also be able to
opt for early retirement 0other than ill-health2 after the first policy year
or on attainment of age =@, $hichever is later. Kou $ill be given the
value of your units less surrender charge, if applicable.
"What are the $ax %enefits on this plan ?"
Section 78/, 6806842 of +ncome Ta- Act $ould apply. "remiums paid for
/ritical +llness ,enefit qualify for benefits under Section 784. These
benefits are as per the currently prevailing ta- regulations and you are
advised to consult your ta- advisor for details.
"&o' !oes this plan appl( in real life?"
(r 1unal Sharma, a <@ year old, decides to opt for this plan to provide for
his future and $ould li%e to begin vesting from the age of M8. *iven belo$ is
the table $hich indicates the policy fund values at different premium amount
options.
With Coer
"remiumW
*uaranteed
,enefit
- Sum Assured
"olicy fund on retirement
9J /?J
68,888 ;,:8,888 <,:@,;88 ?,;8,<88
6@,888 =,<@,888 @,:;,:88 68,78,@88
;8,888 @,78,888 ?,:8,@88 6=,=8,?88
Witho+t Coer
"remiumW
*uaranteed ,enefit
- Sum Assured
"olicy fund on retirement
9J /?J
68,888 <,68,888 =,6?,M88 ?,@M,<88
6@,888 =,M@,888 M,;M,@88 66,<=,@88
;8,888 M,;8,888 7,<@,<88 6@,6;,?88
+f (r Sharma decides to purchase a 9ith /over plan paying a premium of
Rs ;8,888 per annum, he is e-pected to receive an amount of Rs 6=,=8,?88
on his retirement assuming a 68A rate of return or Rs ?,:8,@88 at a return of
MA. +n case of poor mar%et performance, he $ill still receive a guaranteed
sum assured of Rs @,78,888 ensuring that his hard earned money is not
eroded.
W"remium amount has been rounded off to the nearest 6888.
Assuming that 688A of the funds are invested in the ,alanced )und.
+n the illustration, some benefits are guaranteed and some are variable.
*uaranteed Returns are mar%ed EguaranteedE in the illustration. Hariable
returns are sho$n at t$o different rates of assumed future returns. These
assumed rates of return are not guaranteed and they are not the upper or
lo$er limits of $hat you might get bac% .The actual return may be different
depending on a number of factors including future investment performance.
"What are the charges applicable?"
(r 1unal Sharma, a <@ year old, decides to opt for this plan to provide for
his future and $ould li%e to begin vesting from the age of M8. *iven belo$ is
the table $hich indicates the policy fund values at different premium amount
options.
"remium Allocation Rate
Kear 6
Kear ;
on$ards
Regular "remium 7M.7?@A :?.;8A
Single "remium :?.@8A -
Ad*ini"tration Char,e"
+n the first year, the administration charges $ould be 6<A for annual
premium upto Rs.;8,888. )or the portion of premium in e-cess of Rs
;8,888P- , the charges $ould be <A of the annual premium amount.
+n subsequent years, the administration charges $ould be 7A for annual
premium upto Rs.;8,888. )or the portion of premium in e-cess of Rs
;8,888P- , the charges $ould be ;A of the annual premium amount.
)or the Single "remium plan, policy administration charges of Rs <; P
month $ould be levied.
Ann+a% F+nd Mana,e*ent !har,e"
*ilt )und - 6.8A, ,ond )und 6.; A, )loating Rate )und 6.;A, ,alanced
)und - 6.<A, (oney (ar%et )und 8.MA. These are deducted in the unit
price on daily basis.
B+# Se%% "$read
The spreads currently applicable areC *ilt )und 8.68A, ,ond )und 8.;;
A, )loating Rate )und 8.;;A, ,alanced )und - 8.@8A, (oney (ar%et
)und 8.86A. The spread is applied on the Fet Asset Halue of the units
S+* a""+red re%ated !har,e"
These charges are deducted monthly only in the first year by liquidating
units of the funds that you have invested in, and are based on the age of the
life to be insured.
)or the $ithout cover plan, the charges are 8.87A of the Sum Assured
)or the $ith cover plan, they are calculated as follo$sC
Age of life insured 0years2
"ercentage of
,asic Sum
Assured
67 to <@ 8.;
<M to =@ 8.<
=M to @: 8.=
M8 above 8.M
Morta%it# !har,e =a$$%i!a'%e &or the .ith !oer E "in,%e $re*i+* $%an>
The mortality charge is equal to the ,asic Sum Assured less premiums due
but not paid less the selling value of all the units held by you, multiplied by
the mortality charge for your age.
COM(ARATI2E ANAL)SIS
/omparative analysis of investment plans offered by different
companies.The comparison has been made according to certain parameters
given belo$C
6.ligibility
;."lan term
<. (aturity benefits
=. Ta- rebate
@. )le-ibility
M. Riders
?. /apital guarantee
7. +nvestment options
:. 4eath benefits
68. +n'ection P$ithdra$l amount
Kotak F%e6i (%an
ligibilityC
ntry Age
(in- 6= years
(a-- M@ years
"lan TermC
Term of the "lan
(in -68 years
(a- <8 years
Mat+rit# Bene&it3 Kou have the option to choose the sum assured that you
$ould $ant on maturity. This sum assured $ould be referred to as the
maturity sum assured or SA6
Ta6 re'ate3 Section 78/, 6806842 of +ncome Ta- Act $ould apply.
"remiums paid for /ritical +llness ,enefit qualify for benefits under Section
784. These benefits are as per the currently prevailing ta- regulations.
F%e6i'i%it# 3 4epending on your appetite for ris% or your e-pectations of
returns, you could s$itch bet$een these funds, any number of times, $ithout
any ta- liability
Rider"3 Accidental 4eath benefit, "ermanent disability benefit, critical
+llness,Dife guardian benefit.
Ca$ita% G+arantee 3 1ota% (ahindra ,an% give capital gurantee for the
amount invested
Ine"t*ent O$tion"3 Kou have a choice of M funds. +nvestment "remium or
"6 0net of charges2 $ould be invested in any or a combination of the funds,
specified by you.
(oney (ar%et )und
)loating Rate )und
*ilt )und
,ond )und
,alanced )und
*ro$th )und
Death Bene&it3 The plans offer you the fle-ibility to decide the amount of
insurance cover that you $ant. +n the unfortunate event of death of the life
insured, the beneficiary $ould receive plus the mar%et value of the units,less
unpaidpremiums.
L+*$ S+* InCe!tion3
Dump Sum +n'ection Amount
(in Rs.68,888
Thereafter in multiples of Rs.68,888
"art 9ithdra$als Amount
(in Rs.68,888
(a- Sub'ect to leaving behind a balance of
Rs.68,888 in the (ain Account
Tata AIG- Ine"t A""+re
E%i,i'i%it# E ter*
Term of policy
(inimu
m age
(a-imum
age
6@ years <8 days M8 years
;8 years <8 days @@ years
<8 years <8 days =@ years
Mat+rit# Bene&it3 Kou have the option to choose the sum assured that you
$ould $ant on maturity. This sum assured $ould be referred to as the
maturity sum assured
Ta6-Bene&it
"remiums paid under this plan are eligible for ta- benefits under Section 77
as per current +ncome Ta- Act. (oreover, all the life insurance proceeds are
generally ta--free as per Sec68 06842 of +ncome Ta- Act, 6:M6.
F%e6i'i%it#3 )le-ibility of choosing the term of cover i.e 6@ yrs, ;8 yrs,L<8
yrs.)le-ibility of choosing the amount of death cover
Rider"3 Accidental 4eath benefit, "ermanent disability benefit, critical
+llness.
Ca$ita% G+rantee3 Fo capital gurantee is provided
Ine"t*ent O$tion"3 Kou have a choice of M funds. +nvestment "remium or
"6 0net of charges2 $ould be invested in any or a combination of the funds,
specified by you.
(oney (ar%et )und
)loating Rate )und
*ilt )und
,ond )und
,alanced )und
*ro$th )und
Death Bene&it3 The plans offer you the fle-ibility to decide the amount of
insurance cover that you $ant. +n the unfortunate event of death of the life
insured, the beneficiary $ould receive plus the mar%et value of the units,less
unpaidpremiums.
L+*$ S+* InCe!tion3
Dump Sum +n'ection Amount
(in Rs.68,888
Thereafter in multiples of Rs.68,888
"art 9ithdra$als Amount
(in Rs.68,888
(a- Sub'ect to leaving behind a balance of
Rs.68,888 in the (ain Account
S,+ D+)
ligibility and term
Term of policy
(inimu
m age
(a-imum
age
@ years 67 years M8 years
68 years 67 years M8 years
Mat+rit# Bene&it3
*uaranteed @A annual additions0Simple2 on Sum Assured $ith
benefit of Single "remium payment
+n the event of death, the Sum Assured as increased by the annual
addition on the date of death $ill become payable. 5pon survival, the
Sum Assured $ith total additions during the period $ill be payable.
Ta6-Bene&it3 "remiums paid under this plan are eligible for ta- benefits
under Section 77 as per current +ncome Ta- Act. (oreover, all the life
insurance proceeds are generally ta--free as per Sec68 06842 of +ncome Ta-
Act, 6:M6
F%e6i'i%it#3 )le-ible in choosing the term cover.as compared to other plans
its less fle-ible.
Rider"3 /ritical illness benefit
Ca$ita% G+rantee3 *uaranteed @A annual additions0Simple2 on Sum
Assured $ith benefit of Single "remium payment
Ine"t*ent O$tion"3 Fo investment options are available.
Death Bene&it3 +n the event of death, the Sum Assured as increased by the
annual addition on the date of death $ill become payable. 5pon survival, the
Sum Assured $ith total additions during the period $ill be payable.
CONCLUSIONS
Retai% Bankin, Con!%+"ion
There are many ban%s offering saving ban% accounts out of $hich five main
ban%s are chosen for this study namely, 1ota% (ahindra ,an%, +/+/+ ban%,
#S,/ ban%, Standard /harted ban% and 5T+ ban%.
>ut of all the ban%s $hich $ere under the scope of the study 1ota%
(ahindra $as seem to the best to offer saving ban% accounts $ith the best of
its terms and services.

M+t+a% F+nd"3 Con!%+"ion
A mutual fund brings together a group of people and invests their money in
stoc%s, bonds, and other securities.
The advantages of mutual are professional management,
diversification, and economies of scale, simplicity, and liquidity.
The disadvantages of mutual are high costs, over-diversification,
possible ta- consequences, and the inability of management to
guarantee a superior return.
There are many, many types of mutual funds. Kou can classify funds
based on asset class, investing strategy, region, etc.
(utual funds have lots of costs.
/osts can be bro%en do$n into ongoing fees 0represented by the
e-pense ratio2 and transaction fees 0loads2.
The biggest problems $ith mutual funds are their costs and fees.
(utual funds are easy to buy and sell. Kou can either buy them
directly from the fund company or through a third party.
(utual fund ads can be very deceiving.
In"+ran!e3 Con!%+"ion
After liberali&ation of insurance sector in ;888-86, many private
players entered into the mar%et. ,ut still the ma'or player in this sector
is D+/ $ith 78.=8A of the mar%et share and the premium collection
stands to :8A of the total mar%et.
Thus is it still very difficult for the ne$ players entered into the
mar%et to convenience the investors and to gain confidence as D+/
had done in the previous days.
Tal%ing about 1ota% Dife +nsurance, it has 'ust ;A of the mar%et share
and has lots of potential to gain and to enlarge its investor base.
The only thing company has to do is to gain investorBs confidence and
to provide as much security of their fund as they can.
Re&eren!e"3
$$$.%ota%.com
$$$.utisel.com
$$$.amfiindia.com
$$$.investopedia.com
$$$.valueresearch.com
$$$.indiainfoline.com
$$$.nseindia.com
$$$.moneycontrol.com
$$$.mutualfundindia.com
$$$.utimutualfund.com
$$$.icicidirect.com
$$$.sbimf.com
"ro$ess
Book"3-
"ersonal financial planning 0S+(/S2
"ortfolio (anagement 0S+(/S2