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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

EXECUTIVE SUMMARY

Total Investment scenario is changing, in past people were not interested in investment
because there were no good options available for investment. Now there are many options
available for investment like life Insurance, Mutual fund, Equity market, Real estate, etc.
Today people want more services and more return on their investment. So, most of the insurance
companies are providing more value – added services with the basic insurance operation.
Another option for investment available is Mutual Fund. Mutual Funds are providing good
returns. So while investing people tend more to words mutual fund as they are providing more
returns than Insurance also, with a good investment portfolio. Mutual fund companies are
providing more liquidity.

The project was taken to know about, what are the main aspects in Bajaj Allianz Life Insurance
Company, and its USP (Unique Selling Preposition).Which gives it highest business and
customers. Customers always prefer to invest in a good option and in a company which is market
leader.

After survey and analysis I came to know that most of the people go for ULIP insurance policies
to cover the risk of life, and invest it in a good Portfolio but there is big portion of customers
have taken the policies to save the taxes. And people are aware about the tax benefits they get for
insurance policies. Therefore, while investing in any Investment option investor checks whether
his money is safe or not, Mutual funds provides good returns but investments are directly
exposed to risk. As in ULIP returns are related to stock market but they are having some
insurance benefit and IRDA regulates the investment. Many people are getting the tax benefits in
ULIP. In Mutual Fund they have to invest their money in tax saving funds to get the tax benefit.

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

INTRODUCTION

To make comparison of ULIP plans with Mutual funds in Bajaj Allianz Life Insurance
Co. Ltd. and to Create awareness about Unit Linked Insurance Plan (ULIP) Benefits. The overall
goal of this project was to create awareness about investments. The Above problem arises
because every life insurance company has their products having different positive and negative
aspects.

Life Insurance is booming sector in today’s economy. So the responsibilities of the insurance
companies have been increased as compare to the past. Because in past people were taking
insurance policies for protection tool only. In present scenario insurance sector is providing more
services with the basic life insurance. Bajaj Allianz Life Insurance has number of products,
which gives the right way to save the money and earn good profit by invested premium. Today
people want more services and more return on their investment. So this insurance company is
providing more value – added services with the basic insurance operation.

By doing this type of study in this Insurance sector and looking at the vast scope and opportunity
to study this booming field of Life Insurance and the growing awareness among the public
regarding insuring their life through Life insurance policies as well as the growing contribution
of Insurance in GDP of country with the number of private players making entrance in this
booming industry of Insurance.

A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such as
shares, debentures and other securities. The income earned through these investments and the
capital appreciations realized are shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

1.1 CONCEPT OF INSURANCE

Life has always been an uncertain thing. To be secure against unpleasant possibilities,
always requires the utmost resourcefulness and foresight on the part of man. To prayer to pay for
protection is the spirit of the humanity. Man has been accustomed to pray God for protection and
security from time immemorial. In modern days Insurance Companies want him to pay for
protection and security. The insurance man says "God helps those who help themselves";
probably he is correct. Too many people in this country are not in employment; and work for too
many no longer guarantees income security. Several millions are part-time, self employed and
low-earning workers living under pitiable circumstances where there is no security cover against
risk. Further the inherent changing employment risks, the prospect of continual change in the
work place with its attendant threats of unemployment and low pay especially after the adoption
of New Economic Policy and the imminent lifecycle risks - a new source of insecurity which
includes the changing demands of family life, separation, divorce and elderly dependents are
tormenting the society. Risk has become central to one's life. It is within this background life
insurance policy has been introduced by the insurance companies covering risks at various
levels. Life insurance coverage is against disablement or in the event of death of the insured,
economic support for the dependents. It is a measure of social security to livelihood for the
insured or dependents. This is to make the right to life meaningful, worth living and right to
livelihood a means for sustenance. Therefore, it goes without saying that an appropriate life
insurance policy within the paying capacity and means of the insured to pay premium is one of
the social security measures envisaged under the Indian Constitution. Hence, right to social
security, protection of the family, economic empowerment to the poor and disadvantaged are
integral part of the right to life and dignity of the person guaranteed in the constitution. Man
finds his security in income (money) which enables him to buy food, clothing, shelter and other
necessities of life. A person has to earn income not only for himself but also for his dependents,
viz., wife and children. He has to provide legally for his family needs, and so he has to keep
aside something regularly for a rainy day and for his old age. This fundamental need for security
for self and dependents proved to bathe mother of invention of the institution of life insurance.

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

1.2 WHAT IS INSURANCE?

The business of insurance is related to the protection of the economic values of assets.
Every asset has a value. The asset would have been created through the efforts of the owner. The
asset is valuable to the owner, because he expects to get some benefit from it. The benefit may be
an income or something else. It is a benefit because it meets some of his needs. In thecae of a
factory or a cow, the product generated by is sold and income generated. In the case of a motor
car, it provides comfort and convenience in transportation. There is no directincome.Every asset
is expected to last for a certain period of time during which it will perform. After that, the benefit
may not be available. There is a life-time for a machine in a factory or a cower a motor car. None
of them will last forever. The owner is aware of this and he can so manage his affairs that by the
end of that period or life-time, a substitute is made available. Thus, he makes sure that the value
or income is not lost. However, the asset may get lost earlier. An accident or some other
unfortunate event may destroy it or make it non-functional. In that case, the owner and those
deriving benefits from there would be deprived of the benefit and the planned substitute would
not have been ready. There is an adverse or unpleasant situation. Insurance is a mechanism that
helps to reduce the effect of such adversesituations.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 potential loss, from one entity to another, in
exchange for a premium. Insurer, in economics, is the company that sells the insurance.
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 discrete field of study and practice.
Origin of Insurance

ORIGIN OF INSURANCE

PRACTICE OF INSURANCE IN INDIA: 1818-1956


It is claimed that insurance was practiced in India even in Vedic times in one form or the
other. The Sanskrit term "Yogakshema" in the Rig-Veda meant some kind of insurance, which
was practiced by the Aryans in India nearly 3000 years ago. During the Mughal period insurance
took firm roots. There are even references to the cover against war risks. Losses due to the

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

passage of royal troops through farms were compensated by the State as a gesture of goodwill. The
year 1818 is an epoch -making year in the history of our country. The first Life Insurance
Company on India soil appears to have been started in this year. A group of Europeans pioneered
the establishment of the Oriental Life Insurance Society to afford relief to the distressed relatives
of European. The venture was not quite successful but the company was reformed in 1829.The
renewed Company also got into trouble in 1833 when Agency House of Calcutta, partners of the
same, fell.

Prince Dwarkanath Tagore was the only solvent partner & the sole responsibility for carrying on
the institution developed on him. Meanwhile, early in Janury1834, the Government made-up its
mind to establish a Public Insurance Company & a Committee was set up for this purpose .A
number of foreign Insurance Companies then operating in the country viewed this move with
alarm. They set up Committees of their own enquire into their individual affairs. Dwarkanath
Tagore, too, had a Committee appointed to look into the affairs of the Oriental. As a result,
another company was born out of the previous one in the name of "New OrientalCompany"In the
reorganization of the "Oriental" in the year 1834, two other gentlemen were associated. One was
Rampant Lahore and the other RustamjeeCowasjee. The latter was another prominent figure of
the business world. Rustamjee entered insurance business in 1828, hewers already known to the
community and the Government as a wealthy Paris merchant.Rustamjee's connection with
insurance also started with "Laudable Societies", but he was later on associated with Companies
like "Sun Life Office (1834) ", New Oriental(1835),Universal Life (1835) , New Laudable
(1840) , and Indian Laudable (1841) . He was also on the Committee of the Union Insurance
Company which was formed by a group of five persons. This Company was issuing policies
covering river-risks only. He was intimately connected with the Committee of Insurance Offices
in Calcutta. RustamjeeCowasjee&Dwarkanath Tagore was probably the first Indians to join in
partnership business with the Europeans & in the field of insurance they were pioneers on this
side of the country. Apart from Calcutta, several enterprising people in Bombay started in 1823
the "Bombay Life" Assurance Company. The company went into liquidation soon and could not
revive. In1829, the "Madras Equitable "was formed. It finally ceased to function in 1921 due to
financial difficulties after the First World War. The effort to set up a public insurance company
at the government level also went in vain, mainly from objection of private operators. Majority
of the early attempts to form insurance offices were in the province of Bengal. This was due to

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

its political & economic importance at that time. The contribution of Raja Ram Mohan Roy, one
of the greatest social reformers of India, tithe development of life insurance is very great. He was
deeply concerned about the sad plight of desperate widows and helpless orphans.

OVER SEAS INSURERS

Initially, when Life Offices were established in large numbers in Britain, some of them
ventured to issue sterling policies to the British residents in India. Premiums collected here were
credited to England largely for British beneficiaries. Business seems to have been brisk and
profitable and was usually under short term policies. Insurance mortality tables and insufficient
mortality data of Englishmen in India made the premiums heavy-heavier than at home. Insurance
was denied to the "natives" even if they wanted it- for their lives were always considered risky
and sometimes valueless. When Indian lives were accepted as a very special case, the extras
charged were still heavier. Prominent amongst the companies which came to India around this
period was the "Medical Invalid and General" incorporated in London in 1841. As more areas
were annexed and the ruling power, with vested interests in developing trade, took charge , the
"Medical" extended its area of operation, established large connections, absorbed the" Agra Life"
and in 1835,took over the "New Oriental". P.M. Tate, the then manager of the "Medical", was a
keen businessman, widely liked, influential and shrewd. With W.F. Ferguson, who was the
manager of the "New Oriental" before amalgamation, he commenced very active operations
which were temporarily affected by the 1857 "Mutiny”. The Universal Life Insurance Company
established in England in 1836 opened its Indian Branch in 1840 and enjoyed a long period of
successful operations until it was taken over by the "North British" in May 1901. Insurance
exceeding Rs. 10 crores were issued in India during this period. Another English Company
operating in India at that time was the Colonial Life Assurance Company. It was established in
1846 under the auspices of the Standard Life Assurance Company. The original prospectus of
this company declared its purpose as “extending to the Colonies of Great Britain and to Indian
the full benefit of Life Assurance”. It appointed agents with local boards which were first
established on Calcutta, Bombay, Madras and Colombo. Later on this company was taken over
by the "Standard Life" and made valuable contribution to investigations into the mortality
experience of assured lives in India. Eventually it ceased its operations in India in 1938.It is

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

difficult to say which was the oldest Life Policy in India, but the oldest known appears tube one
sold by the Royal Insurance (which commenced business in India in 1845) on the life was to
Curette Furdonjee on 6th January 1848, no reference to any earlier policy being available. In the
year 1853, the Liver pool and London and Globe Insurance Company established in England in
1836, commenced business in India. Sir Charles Forbes was its first agent, succeeded by M/s.
Forbes, Forbes and Campbell. It accepted only European lives and commenced insuring Indian
lives only after 1929.This too, was mainly to oblige good agents of the Company for classes
other than life business. The North British and Mercantile was the next company to appear on the
Indian scene. It started fire insurance business in the year 1861 and life business 1864. The
London Assurance started life business in 1864, limited principally to European lives and
closedown its life department when the Life Assurance Companies Act 1912 made submission
of returns compulsory. On 3rd December, 1870, seven earnest men of Bombay with just seven
rupees for initial expenses gave shape to a plan of offering insurance to the public without the
risk of ruin and the "Bombay Mutual Life Assurance Society" came into existence. This was
followed by the Oriental Life Assurance Company in1874, the Bharat in 1896 and the Empire of
India in1897.

THE BIRTH OF INDIAN INSURERS

With the advent of the 20th century, the glorious renaissance of swadeshi days dawned.
At the same time, well- to do Indians realized the potentiality of Indian Insurance business.
TheSwadeshi movement of 1905-1907 gave rise to more insurance companies. The United
Indiana Madras, National Indian and National Insurance in Calcutta and the Co-operative
Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance
Company took its birth in one of the rooms of the Jorasanko House of the great
poetRabindranath Tagore, in Calcutta. The Indian Mercantile (1907) was started in Bombay,
General Assurance (1908) at Ajmer and the Swadeshi Life (Later Bombay Life) in Bombay in
1908.The end of the First World War (1914-18) witnessed an influx of insurance companies in
India. Famous Indian business houses started new insurance companies. Industrial and Prudential
Bombay, Western India, Satara, were floated before the war, but by 1919,companies like Jupiter
General, New India, Vulcan Insurance Company etc. came into being.PanditK.Santhanam with
blessing of LalaLajpatRai and PanditMotilal Nehru started LaxmiInsurance Co. Similarly,

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

Andhra Insurance was started in Masulipatnam, with the initiative of stalwarts like Dr.
PattabhiSitaramaiah. From political platforms also, national leaders supported this cause. It is
duty to every Indian to support only Indian Insurance. The keynote of our Swaraj is in placing all
our insurance with our Indian companies", said Mahatma Gandhi in his message. "I hope Indians
will realize the importance of patriotism only through Indian insurance institution", stated Pandit
Jawaharlal Nehru. Thus, the cause of Indian insurance became a national issue. The pursuit to
boost Indian insurance represented a crusade to extricate the Indian economy from foreign
domination.

PROGRESS IN INSURANCE BUSINESS

The growth of Life Insurance in concrete terms could be said to being during the first two
decades of twentieth century when most of the major companies were founded. They grew
interims of rise in the number of companies, in terms of number of policies and sum assured as
well as total life fund. Indian Insurance Year Book, published for the first time in 1914, givesthe
figure of the total business-in -force as 22.44 crore which grew to Rs. 298 crore in 1938.In 1914,
there were only 44companies transacting insurance business in India, and during the next 25
years their number rose to 176. The total progress on all the primary heads, viz. life fund (Rs.
50.50 crore), premium income (Rs. 10.50 crore) and new business (Rs. 43.30 crore)indicate that
Indian Insurance Business had been making a definite headway during this years. The inter-war -
years thus saw rapid growth life insurance in India. The promotion of new life insurance
companies continued to be almost a craze and insurance companies mushroomed. In this period,
176 insurance companies were formed and many of them failed. Thus unhealthy growth was
harmful to the interest of the policy holders and insurance business in India. Feeling concerned
about it, the All India Life Assurance Offices’ Association urged upon the Government in 1932
to undertake the insurance legislation to
(a) Compulsorily register all Life Insurance companies.
(b) Secure a deposit of Rs.2 lakh from all Life Insurance companies.
(c) Compel foreign companies doing business in India to keep sufficient funds in India securities
to meet their liabilities under all policies issued in India.
Since the IRDA first enacted these rules, 13 new life insurance companies have entered the market. On the
other hand, no global reinsurer has established a domestic company. Instead, most of the top

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

international reinsurance companies operate from their overseas offices by sharing the
reinsurance risks picked up by the GIC. A recent proposal has been put forward to increase
foreign direct investment to 49 percent. In addition, global companies are pushing for the right to
establish branch offices in India. These changes are likely to substantially increase the presence
of international insurers, reinsurers, and brokers in India. The IRDA Insurance Brokers Act in
India 2002 permitted overseas insurance and reinsurance brokers to enter the market, but with
the same equity cap as that governing the operations of foreign insurers and reinsurers. Thus,
foreign brokers must also form a joint venture with an Indian partner in order to establish an
Indian broking house. The 2002 IRDA legislation established four broker categories, one of
which brokers must select when applying for a license:

1. Category 1A: Direct General Insurance Broker


2. Category 1B: Direct Life Insurance Broker
3. Category 2: Reinsurance Broker
4. Category 3: Composite Broker

Others, for example Insurance Consultants and Risk Management Consultants. Each
category has different solvency margins and capital adequacy ratios, and all categories need to
carry professional indemnity insurance at different minimumlevels.In the years since market
liberalization was initiated, the insurance sector has witnessed some impressive changes. The
needs of insurance and reinsurance buyers have grown; the market is introducing new products
to address these needs; and the services of brokers are now seen as critical to making informed
insurance and reinsurance decisions.

1.3 OVERVIEW OF THE CURRENT INSURANCE MARKET

In the years since the IRDA Act initiated market reforms, the insurance sector has
experienced some remarkable changes. The entry of a large number of Indian and Foreign
private companies in life insurance business has to lead greater choice in terms of products and
services. Increased consumer awareness of the benefits and importance of insurance and
reinsurance has generated
Private insurance companies have to date written a small percentage of business in this sector
during the last three years, but they have ushered in a competitive environment that has

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

accelerated market growth. State owned insurers still write the bulk of insurance business, and
they have the net worth required to underwrite large corporate risks without depending almost
entirely on reinsurance support. However, their focus on restructuring is beginning to put them at
a disadvantage against private competitors. Over the next few years, the share of the market held
by the public insurers is expected to drop substantially, with private companies assuming a
growing percentage of the business written. At present there are 15 private insurers with two
standalone private players and remaining private-foreign joint venture.

PURPOSE AND NEED OF INSURANCE


Assets are insured, because they are likely to be destroyed through accidental
occurrences. Such possible occurrences are called perils. Fire, floods, breakdowns, lightening,
earthquakes, etc, are perils. If such perils can cause damage to the asset, we say that the assets
exposed to that risk. Perils are the events. Risks are the consequential losses or damages. The
risk to a owner of a building, because of the peril of an earthquake, may be a few lakhsor a few
corers of rupees, depending on the cost of the building and the contents in it. The risk only means
that there is a possibility of loss or damage. The damage may or may not happen. Insurance is
done against the contingency that it may happen. There has to be an uncertainty about the risk.
Insurance is relevant only if there are uncertainties. If there is no uncertainty about the
occurrence of an event, it cannot be insured against. In the case of human being, death is certain,
but the time of death is uncertain. In the case of person who is terminally ill, the time of death is
not uncertain, though not exactly known. He cannot beinsured.Insured does not protect the asset.

HOW INSURANCE WORK


The mechanism of insurance is very simple. People who are exposed to the same risks
come together and agree that, if any one of them suffers a loss, the others will share the loss and
make good to the person who lost. All people who send goods by ship are exposed to the same
risks, which are related to water damage, ship sinking, piracy, etc. Those owning factories are
not exposed to these risks, but they are exposed to different kinds of risks like, fire, hailstorms,
earthquake, lightning, burglary, etc. Like this, different kinds of risks can be identified and
separate groups made, including those exposed to such risks. By this method, the heavy loss that
any one of them may suffer (all of them may not suffer such losses at the same time) is divided
into bearable small losses by all. In other words, the risk is spread among the community and the

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

likely big impact on one is reduced to smaller manageable impacts on all. If a Jumbo Jet with
more than 350 passenger’s crashes, the loss would run into several croresof rupees. No airline
would be able to bear such a loss. It is unlikely that many Jumbo Jets will crash at same time. If
100 airline companies flying Jumbo Jets, come together into an insurance pool, whenever one of
the Jumbo Jets in the pool crashes, the loss to be borne breach airline would come down to a few
lakes of rupees. Thus, insurance is a business of Sharing. There are certain principles, which
make it possible for insurance to remain a fairarrangement. The first is that it is difficult for any
one individual to bear the consequences of the risks that he is exposed to. It will become bearable
when the community shares the burden. The second is that the perils should occur in an
accidental manner. Nobody should been a position to make the risk happen. In other words, none
in the group should set fire to his assets and ask others to share the costs of damage. This would
be taking unfair advantage of an arrangement put into place to protect people from risks they are
exposed to. The occurrence has to be random, accidental, and not the deliberate creation of the
insured person. The manner in which the loss is to be shared can be determined before-hand. It
may be proportional to the risk that each person is exposed to. This would be indicative of the
benefit he would receive if the peril befell him. The share could be collected from the members
after the loss has occurred or the likely shares may be collected in advance, at the time
of admission to the group. Insurance companies collect in advance and create a fund from which
the losses are paid. The collection to be made from each person in advance is determined on
assumptions. While it may not be possible to tell beforehand, which person will suffer,

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

REVIEW OF LITERATURE & RESEARCH DESIGN

2.1 INTRODUCTION
Over the past recent years, there have been growing concerns about the use of antidepressants in
adolescents (10-17 years of age). All over the world there has been an increase in adolescent
depression. Many parents and clinical psychiatrists are beginning to wonder if it is really
beneficial for adolescents to be prescribed antidepressants. For parents, if their child is acting
differently than he/she normally does, they will take them to a psychiatrist to see if they can do
anything about it. Depending on the severity of the situation, the psychiatrist may prescribe an
antidepressant. Unfortunately, prescribing an antidepressant to an adolescent may increase
suicidal thoughts and/or suicidal completions. This literature review considers whether or not
antidepressants are appropriate for use by adolescents and if they do contribute to the increased
suicidal thoughts and actions.

2.2 REVIEW OF LITERATURE


Mr,Madhu Tm made a study a on ‘ULIPs hold edge over mutual funds, The findings
shows that distrubutions would push unit linked insurance plans (ULIP) to earn better
commission ULIPs offer attractive frontend commissions to agents. However, independent
finacial advisors believe that though there is a possibility of some distributirs favoring ULIP in
the short term, the new directive would be beneficial for both the industry and investors in the
long run.

Mr. Deepak shenoy ,in his article ‘comparing ULIP returns to Mutual Funds; he reveals that,
over the last three years , their growth mutual fund has given better returns than the
“MAXIMISER” option of their (Deepak shenoy, The Indian Investors Blog, August

2.3 STATEMENT OF THE PROBLEM:

In present scenario there are many insurance companies to attract investors to provide
various financial services. Now-a-days people are becoming more attractive and cautious about
the capital market how the market is growing since from the last few years but they are not
coming forward to invest in the capital market because of volatility of the market. This study is

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

done to know the effectiveness of ULIPS in respect to investor’s perspective, Mutual Fund,
Contribution to financial system.

2.4 SCOPE OF THE STUDY

The study covers the people from different parts .

 Analyzing the brand Image of Bajaj Allianz Life Insurance company in relation to other
company.
 Determination of the marketing communication objective of company, the study has a
times span of six weeks.

2.5 OBJECTIVES OF THE PROBLEM

 To understand the reason for which customers prefer ULIP as one of the best insurance
investment mode rather than Mutual fund.
 To find the significance difference between customers of different income with that of
investment mode.
 To Compare Investment Options of customers in ULIPs and Mutual Funds.

2.6 HYPOTHESIS
H0: There is no significant role of banks in the policies and premium growth of life
InsuranceBusiness.

H1: There is a significant role of bank in the policies and premium growth of life
Insurance Business.

TESTING OF HYPOTHESIS

H0: There is no significant role of banks in the policies and premium growth of life Insurance

Business. The researcher has used secondary data for testing the null hypothesis.

Total premium income & ban assurance: Premium income is the amount which is earned by

Insurance company in the form of premium from the policyholders. Total Premium Income is

One of the important and main indicatorsof the performance of the insurance business.

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

2.8 METHODOLOGY
During study I followed some methodology to find out the fact and features of the Indian
design. This is given as follows

 Observe the working process of the company


 Study the growth objectives and achievements of the company
 To discuss with various personnel of the company and their views regarding the
organization ,its policies and methods
Data collection

I have collected information from the following sources, which helped me to make this report.

The source has been divided into two parts such as

 Primary data
 Secondary data
Primary data:

 Face to face interview


 Questionnaire
Secondary data:

 Annual reports
 Company broachers and books

www.bajajallianz.com

www.bajajallianzlife.com

SAMPLE

A sample of 50 respondents was taken for the present study by using sample random
sampling method. The simple consists of male and female with an average age of 32 years. The
survey was conducted in Shahapurtaluk. This sample of 50 respondents belongs to different
walks of life. Like businessman, professional, housewife etc.

Sample Size : 50

Sample method : Random sampling

Businessman Professional Housewife

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Data collection: Data was collected from two ways.

a) Primary data: For collecting the primary data a structured questionnaire was
designed. It consists of 18 questions. Each respondent was approached personally
to get the questionnaires filled it took nearly 15 to 20 minutes for each
respondents to fill the questionnaire. The questionnaire was constructed in such
away to know the respondent’s perceptions with reference to Bajaj Allianz
prudential insurance products. A questionnaire consists of close-ended and also
open-ended questions.

b) Secondary data: Secondary data relating to Bajaj Allianz Prudential Life


Insurance Company has been collected from the past records of the company,
broachers and magazines published by the company and other related Company
products.

2.9 LIMITATIONS OF THE STUD

 The middle class people do not know basic concept of ULIP so creating awareness is a
big challenge for me.
 The finding of my research is from a small sample size.
 Narrow minded thinking of middle class people as investment is not their cup of tea.
 Many customers are thinking that investment in share market is very risky. As ULIP and
Mutual fund both are related to share market.
 A general preference to LIC and SBI over private players.
 Hesitations on the part of respondents to disclose financial information.

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2.10 CHAPTER SCHEMES:

Chapter 1: Introduction of the study


Explain comprehensive description about introduction to the study and background of
the topic.

Chapter 2: Review of literature & research design


Discuss various aspects of methodology, statement of the problem, scope of the study,
need of the study, objective of the study, research design, fieldwork, and limitations of
the study.

Chapter 3: Profile of the industry


Explains the background, history and various mutual fund schemes present in UTI and
selected mutual funds.

Chapter 4: Result Analysis and interpretation


It gives a detailed analysis of varies option strategies with respect to secondary data
available.

Chapter 5: Summary of Findings, Conclusion and Recommendation

It describes the findings conclusion and recommendation

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PROFILE OF THE INDUSTRY/COMPANY

3.1 HISTORY OF THE INDUSTRY


The history of life insurance in India dates back to 1818 when it was conceived as a
means to provide for English Widows. Interestingly in those days a higher premium was charged
for Indian lives than the non-Indian lives as Indian lives were considered more riskier for
coverage. The Bombay Mutual Life Insurance Society started its business in 1870. It was the
first company to charge same premium for both Indian and non-Indian lives. The Oriental
Assurance Company was established in 1880. The General insurance business in India, on the
other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the first general
insurance company established in the year 1850 in Calcutta by the British. Till the end of
nineteenth century insurance business was almost entirely in the hands of overseas companies.
Insurance regulation formally began in India with the passing of the Life Insurance Companies
Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied
insurance business in India. By 1938 there were 176 insurance companies. The first
comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict
State Control over insurance business. The insurance business grew at a faster pace after
independence. Indian companies strengthened their hold on this business but despite the growth
that was witnessed, insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and provident
societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC)
was born. Nationalization was justified on the grounds that it would create much needed funds
for rapid industrialization. This was in conformity with the Government's chosen path of State
lead planning and development. The (non-life) insurance business continued to thrive with the
private sector till 1972. Their operations were restricted to organized trade and industry in large
cities. The general insurance industry was nationalized in 1972. With this, nearly 107 insurers
were amalgamated and grouped into four companies- National Insurance Company, New India
Assurance Company, Oriental Insurance Company and United India Insurance Company. These
were subsidiaries of the General Insurance Company (GIC).The general insurance business was
nationalized after the promulgation of General Insurance Business (Nationalizations) Act, 1972.
The post-nationalization general insurance business was undertaken by the General

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Insurance Corporation of India (GIC) and its 4 subsidiaries:

Oriental Insurance Company Limited; New India Assurance Company Limited; National
Insurance Company Limited; and United India Insurance Company Limited.

Some of the important milestones in the life insurance business in India are:

1850:Non life insurance debuts with triton insurance company.

1870::Bombay mutual life assurance society is the first Indian owned life insurer

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.

1956:245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5 Crore from the Government of India. The General insurance
business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the
first general insurance company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance of India.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of
conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.

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1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and
grouped into four companies’ viz. the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance
Company Ltd. GIC incorporated as a company.

1993: Malhotra Committee- headed by former Finance Secretary and RBI Governor R.N.
Malhotra- was formed to evaluate the Indian insurance industry and recommend its future
direction. The Malhotra committee was set up with the objective of complementing the reforms
initiated in the financial sector.
1997: Insurance regulator IRDA set up.

2000: IRDA starts giving licenses to private insurers: Kotak Life Insurance, ICICI potential and
HDFC standard Life insurance are the first private insurers to sell a policy.

2001: Royal Sundaram Alliance first non life insurer to sell a policy 2002 Banks allowed to sell
insurance plans.

INSURANCE MARKET –PRESENT

The insurance sector was opened up for private participation seven years ago. For years now, the
private players are active in the liberalized environment. The insurance market have witnessed
dynamic changes which includes presence of a fairly large number of insurers both life and non-
life segment. Most of the private insurance companies have formed joint venture partnering well
recognized foreign players across the globe

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3.2LIFE INSURANCE COMPANIES IN INDIA

Sl. No. Insurer Foreign Partners

1 HDFC Standard Life Insurance Co. Ltd. Standard Life Assurance, UK


2 Standard Life Assurance, UK New York Life, USA
3 ICICI-Prudential Life Insurance Co. Ltd. Prudential , UK
4 Om Kotak Life Insurance Co. Ltd. Old Mutual, South Africa
5 Birla Sun Life Insurance Co. Ltd. Sun Life, Canada
6 Tata-AIG Life Insurance Co. Ltd. American International Assurance Co.,
USA
7 SBI Life Insurance Co. Ltd. BNP Paribas Assurance SA, France
8
ING Vysya Life Insurance Co. Ltd. ING Insurance International B.V.,
Netherlands
9 Allianz Bajaj Life Insurance Co. Ltd. Allianz, Germany
10 MetLife India Insurance Co. Ltd. MetLife International Holdings Ltd., USA
11 Reliance Life Insurance Co. Ltd.
12 AVIVA Aviva International Holdings Ltd., UK
13 Sahara Life Insurance Co. Ltd.
14 Shriram Life Insurance Co. Ltd. Sanlam, South Africa
15 Bharti AXA Life Insurance Co. Ltd. AXA Holdings, France
16 Future General India Life Insurance Pantaloon Retail Ltd.; Sain Marketing
Company Ltd Network Pvt. Ltd. (SMNPL), Generali,
Italy
17 IDBI Fortis Life Insurance Company Ltd. Fortis, Netherlands
18 Canara HSBC OBC Life Insurance HSBC, UK
Company Ltd.
19 AegonReligare Life Insurance Company Religare, Netherlands
Ltd.
20 DLF Premedical Life Insurance Co. Ltd. Prudential of America, USA
21 Life Insurance Corporation of India

TOP 10 LIFE INSURANCE COMPANIES IN INDIA

LIC (Life Insurance Corporation of India) still remains the largest life insurance company
accounting for 64% market share. Its share, however, has dropped from 74% a year before,
mainly owing to entry of private players with innovative products and better sales force.

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ICICI Prudential Life Insurance Co Ltd is the biggest private life insurance company in India. It
experienced growth of 58% in new business premium, accounting for increase in market share to
8.93% in 2009-10 from 6.97% in 2008-09

Bajaj Allianz Life Insurance Co Ltd has reported a growth of 52% and its market share went up
to 6.98% in 2009-10 form 5.66% in 2008-09. The company ranked second (after LIC) in number
of policies sold in 2009-10, with total market share of 7.36%.

SBI Life Insurance Co Ltd in terms of new number of policies sold, the company ranked 6th in
2009-10. New premium collection for the company was Rs 4,792.66 crore in 2009-10, an
increase of 87% over last year.

Reliance Life Insurance Co Ltd Total collected was Rs 2,792.76 crore and its market share went
up to 2.96% from 1.23% a year back. It now ranks 5th in new business premium and 4th in
number of new policies sold in 2009-10.

HDFC Standard Life Insurance Co Ltd with an income of Rs 2,680 crore in FY2009-10,
registering a year-on-year growth of 64%. Its market share is 2.88% and it ranks 6 th among the
insurance companies and 5th amongst the private players. Birla Sun Life Insurance Co Ltd
market share of the company increased from 1.22% to 2.11% in 2009-10.Max New York Life
Insurance Co Ltd has reported growth of 73% in 2009-10. Total new business generated was Rs
641.83 crore as against Rs 387.51 crore.

Kotak Mahindra Old Mutual Life Insurance Ltd the fiscal 2009-10, the company reported growth
of 80%, moving from the 11th position to 9th. It captured a market share of 1.19% in 2009-
10. Aviva Life Insurance Company India Ltd ranking dropped to 10th in 2009-10 from 9th last
year. It has presence in more than 3,000 locations across India via 221 branches and close to 40
banc assurance partnerships. Aviva Life Insurance plans to increase its capital base by Rs 344
crore.

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3.3 MARKET SHARE OF VARIOUS LIFE INSURANCE COMPANIES IN


INDIA

Here is the market share of various Life Insurance Companies in India at the end of
FY2010

Company Name Market Share (in %)

LIC 68.70%

ICICI Prudential 13.7%

Bajaj Allianz 10.3%

SBI Life 6.2%

HDFC Standard 4.1%

Birla Sun life 3.4%

Reliance Life 3.4%

Max New York 2.4%

OM Kotak 1.9%

AVIVA 1.8%

Tata AIG 1.5%

MetLife 1.4%

ING Vysya 1.2%

BOOMING INSURANCE MARKET IN INDIA

With a huge population base and large untapped market, insurance industry is a big
opportunity area in India for national as well as foreign investors. India is the fifth largest life
insurance market in the emerging insurance economies globally and is growing at 32-34%
annually. This impressive growth in the market has been driven by liberalization, with new

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players significantly enhancing product awareness and promoting consumer education and
information. The strong growth potential of the country has also made international players to
look at the Indian insurance market. Moreover, saturation of insurance markets in many
developed economies has made the Indian market more attractive for international insurance
players

This research report will help the client to analyze the leading-edge opportunities critical to the
success of insurance industry in India. Based on this analysis, the report gives a future forecast of
the market that is intended as a rough guide to the direction in which the market is likely to
move.
Total life insurance premium in India is projected to grow Rs 1,230,000 Crore by 2011-12.

 Total non-life insurance premium is expected to increase at a CAGR of 25% for the
period spanning from 2009-10 to 2011-12.
 With the entry of several low-cost airlines, along with fleet expansion by existing ones
and increasing corporate aircraft ownership, the Indian aviation insurance market is all
set to boom in a big way in coming years.
 Home insurance segment is set to achieve a 100% growth as financial institutions have
made home insurance obligatory for housing loan approvals.
 Health insurance is poised to become the second largest business for non-life insurers
after motor insurance in next three years.
 A booming life insurance market has propelled the Indian life insurance agents into the
‘top 10 country list’ in terms of membership to the Million Dollar Round Table (MDRT)
— an exclusive club for the highest performing life insurance agents.

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UNIT LINKED INSURANCE POLICY (ULIP)

 A unit linked insurance policy 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. In other words, it enables the buyer to secure some protection for
his family in the event of his untimely death and at the same time provides him an
opportunity to earn a return on his premium paid. In the event of the insured person's
untimely death, his nominees would normally receive an amount that is the higher of the
sum assured (insurance cover) or the value of the units (investments).However, there are
some schemes in which the policyholder receives the sum assured plus the value of the
investments.
 Every insurance company has four to five ULIPs with varying investment options,
charges and conditions for withdrawals and surrender. Moreover, schemes have been
tailored to suit different customer profiles and, in that sense, offer a great deal of choice.
 The advantage of ULIP is that since the investments are made for long periods, the
chances of earning a decent return are high.
 Just as in the case of mutual funds, buyers who are risk averse can buy into debt schemes
while those who have an appetite for risk can opt for balanced or equity schemes.
However, the charges paid in these schemes in terms of the entry load, administrative
fees, underwriting fees, buying and selling charges and asset management charges are
fairly high and vary from insurer to insurer in the quantum as also in the manner in which
they are charged.

Tax benefits

 The premiums paid for ULIPs are eligible for tax rebates under section 80 which allows a
a maximum of Rs. 1,00,000 premiums paid for taxable income below Rs 8,50,000 and
Proceeds from ULIPs are tax-free under section 10(10D) unlike those from a mutual fund
which attract short term capital gains tax.
Key features
 Premiums paid can be single, regular or variable. The payment period too can be regular
or variable. The risk cover (insurance cover) can be increased or decreased.As in all

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insurance policies, the risk charge (mortality rate) varies with age. However, for an
individual the risk charge is always based on the age of the policyholder in the year of
commencement of the policy. These charges are normally deducted on a monthly basis
from the unit value. For instance, if there is an increase in the value of units due to
market conditions, the sum at risk (sum assured less the value of investments) reduces
and so the risk charges are lower. The maturity benefit is not typically a fixed amount and
the maturity period can be advanced (early withdrawal) or extended.
 Investments can be made in gilt funds (government securities), balanced funds (part debt,
part equity), money-market funds; growth funds (equities) or bonds (corporate bonds).
 The policyholder can switch between schemes (for instance, balanced to debt or gilt to
equity). The investment risk is transferred to the policyholder. The maturity benefit is the
net asset value of the units. The value would be high or low depending on the market
conditions during the period of the policy and the performance of the fund manager.
 Thus there is no capital protection on maturity unless the scheme specially provides for it.
There could be policies that allow the policyholder to remain invested beyond the
maturity period in the event of the maturity value not being satisfactory

3.4 COMPANY PROFILE

INTRODUCTION OF MUTUAL FUNDS:

A mutual fund is simply a financial intermediary that allows a group of investors to pool
their money together with a predetermined investment objective. The mutual fund will have a
fund manager who is responsible for investing the pooled money into specific securities (usually
stocks or bonds). When you invest in a mutual fund, you are buying shares (or portions) of the
mutual fund and become a shareholder of the fund. Mutual funds are one of the best investments
ever created because they are very cost efficient and very easy to invest in (you don't have to
figure out which stocks or bonds to buy). By pooling money together in a mutual fund, investors
can purchase stocks or bonds with much lower trading costs than if they tried to do it on their
own. But the biggest advantage to mutual funds is diversification.

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ACCORDING TO AMFI (ASSOCIATION OF MUTUAL FUND OF INDIA):

A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market instruments
such as shares, debentures and other securities. The income earned through these investments
and the capital appreciation realized is shared by its unit holders in proportion to the number of
units owned by them.

Thus a Mutual Fund is the most suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally managed basket of securities at a relatively
low cost. The flow chart below describes broadly the working of a mutual fund.

CHARACTERISTICS OF A MUTUAL FUND:

 Investors own the mutual fund.


 Professional managers manage the affairs for a fee.
 The funds are invested in a portfolio of marketable
 Securities, reflecting the investment objective.
 Value of the portfolio and investors’ holdings, alters with
 Change in market value of investments.

ADVANTAGES OF MUTUAL FUNDS:

The advantages of investing in a Mutual Fund are:

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1. Professional Management: You avail of the services of experienced and skilled professionals
who are backed by a dedicated investment research team which analyses the performance and
prospects of companies and selects suitable investments to achieve the objectives of the scheme.
2. Diversification: Mutual Funds invest in a number of companies across a broad cross section
of industries and sectors. This diversification reduces the risk because seldom do all stocks
decline at the same time and in the same proportion.You achieve this diversification through a
Mutual Fund with far less money than you can do on your own.
3. Convenient Administration: Investing in a Mutual Fund reduces paperwork and helps you
avoid many problems such as bad deliveries, delayed payments and unnecessary follow up with
brokers and companies. Mutual Funds save your time and make investing easy and convenient.
4. Return Potential: Over a medium to long-term, Mutual Funds have the potential to provide a
higher return as they invest in a diversified basket of selected securities.
5. Low Costs: Mutual Funds are a relatively less expensive way to invest compared to directly
investing in the capital markets because the benefits of scale in brokerage, custodial and other
fees translate into lower costs for investors.6. Liquidity: In open-ended schemes, you can get
your money back promptly at AssetValue (NAV) related prices from the Mutual Fund itself.
With close-ended schemes, you can sell your units on a stock exchange at the prevailing market
price or avail of the facility of repurchase
Through Mutual Funds at NAV related prices which some close-ended and interval schemes
Offer you periodically.
7. Transparency: You get regular information on the value of your investment in addition to
Disclosure on the specific investments made by your scheme, the proportion invested in each
class of assets and the fund manager’s investment strategy and outlook.
8. Flexibility: Through features such as Systematic Investment Plans (SIP), Systematic
Withdrawal Plans (SWP) and dividend reinvestment plans, you can systematically invest or
withdraw funds according to your needs and convenience.
9. Choice of Schemes: Mutual Funds offer a variety of schemes to suit your varying needs
over a lifetime.
10. Well Regulated: All Mutual Funds are registered with SEBI and they function within the
Provisions of strict regulations designed to protect the interests of investors. The operations
Of Mutual Funds are regularly monitored by SEBI.

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DISADVANTAGES OF MUTUAL FUNDS:

No Guarantees: No investment is risk free. If the entire stock market declines in value,
the value of mutual fund shares will go down as well, no matter how balanced the portfolio.
Investors encounter fewer risks when they invest in mutual funds than when they buy and sell
stocks on their own. However, anyone who invests through a mutual fund runs the risk of losing
money.
Fees and commissions: All funds charge administrative fees to cover their day-to-day expenses.
Some funds also charge sales commissions or "loads" to compensate brokers, financial
consultants, or financial planners. Even if you don't use a broker or other financial adviser, you
will pay a sales commission if you buy shares in a Load Fund.
Taxes: During a typical year, most actively managed mutual funds sell anywhere from 20 to 70
percent of the securities in their portfolios. If your fund makes a profit on its sales, you will pay
taxes on the income you receive, even if you reinvest the money you made.
Management risk: When you invest in a mutual fund, you depend on the fund's manager to
make the right decisions regarding the fund's portfolio. If the manager does not perform as well
as you had hoped, you might not make as much money on your investment as you expected. Of
course, if you invest in Index Funds, you forego management risk, because these funds do not
employ managers.
A measurement of an option position or premium in relation to the underlying instrument. In
mutual fund also there is certain amount of risk-return factor associated according to the
investment option these are as follows

Bajaj Allianz Life Insurance is a union between Allianz, one of the largest Insurance Company
Allianz is a leading insurance conglomerate globally and one of the largest asset managers in the
world, managing assets worth over a Trillion(Over INR 55,00,000 Crores).Allianz has over 115
years of financial experience and is present in over 70 countries around the world.

At Bajaj Allianz Life Insurance, customer delight is the guiding principle. Their business
philosophy is to ensure excellent insurance and investment solutions by offering customized
products, supported by the best technology.

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VISION

To be the first choice insurer for customers

To be the preferred employer for staff in the insurance industry.

To be the number one insurer for creating shareholder value

MISSION

As a responsible, customer focused market leader, we will strive to understand the insurance
needs of the consumers and translate it into affordable products that deliver value for money.

3.5 ORGANIZATION CHART OF THE BAJAJ ALIANZ

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Accelerated Growth

Fiscal Year No. of policies sold New Business in FY


2004-2005 21,37 Rs. 7 cr.
2005-2006 1,15,965 Rs. 63.3 cr.
2006-2007 1,86,443 Rs. 180 cr.
2006-2007 2,88,189 Rs. 857 cr.
2007-2008 7,81,685 Rs. 2,717 cr.
2009-2010 20,79,217 Rs. 4,302 cr.

2010-2011 37,44,742 Rs. 6,674 cr.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development
Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct General Insurance
business (including Health Insurance business) in India. The Company has an authorized and
paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held
by Allianz, .

As on 31st March 2010, Bajaj Allianz General Insurance maintained its premier position in the
industry by achieving growth as well as profitability. The company garnered a premium income
of Rs. 2866 crore, achieving a growth of 11 % over the last year. Bajaj Allianz has made a profit
before tax of Rs. 149.8 crore and has become the only private insurer to cross the Rs.100
croremark in profit before tax in the last two years. The profit after tax was Rs.95 crores, which
is also the highest by any private insurer.The company ranked second (after LIC) in number of
policies sold in 2009-10, with total market share of 7.36%.

RESULTS FOR FY 2010

The Gross Written Premiums (GWP) for 2009 is Rs 6726 crores as compared to Rs 5219
crores in the corresponding period of the previous year - growth of 29%. New Business premium
for the 2010 is Rs.3003 crores as compared to Rs. 3780 crores in the corresponding period of
previous year.

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Commission on new business premium, which was 27% during 2009, came down to 20% during
the current period.

Operating expenses came down to 20% of GWP for year 2009 as compared to 26% for the
corresponding period of previous year.

The Company posted a profit of Rs 364 lacks for the period 2010 as compared to a profit of Rs
5358 lacks in the corresponding period of the previous year. The policyholder surplus is Rs
15514 lacks (corresponding period of previous year Rs 18681 lacs) and the shareholders’ loss
stands at Rs 15150 lacks (corresponding period of previous year: Rs 13323 lacs).

Number of policies underwritten during the year 2010 were 18, 08,495 (corresponding period of
the previous year 23,62,496). Policies in force 2010 are around 70 lacs. The company ranked
second (after LIC) in number of policies sold in 2009-10, with total market share of 7.36%.

The share capital (including share premium) is Rs. 1211 crores 2010. The solvency in2010
stands at 261% (required solvency is 150%). During the period 2009, no additional capital has
been infused. Despite challenging environment, the company has been able to not only reduce
commission but also operating expenses. The solvency margin of the company continues to be
very strong.

In 2009, the Company employed on roll 22,129 staff as against 20,764 staff in 2009.The
Company operates out of 1,138 offices in 2010

3.6 PRODUCTS PROFILE


Unit Linked Plan
 New family gain
 New unit gain plus
 New unit gain premier
Traditional plan
 Invest gain
 Cash gain
 Child gain

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Retirement Solutions
 Swarnavisranthi
 New unit gain easy pension plus
Health Plan
 Care first
 Health care
Term Plan
 Risk care
 Term care

POINTS TO REMEMBER ABOUT ULIP

First-year charges: Usually, a minimum of 15 per cent. However, high premiums attract lower
charges and vice versa. Charges can be as high as 70 per cent if the scheme affords a lot of
flexibility. Subsequent charges: Usually lower than first-year charges. However, some insurers
charge higher fees in the initial years and lower them significantly in the subsequent years.

Administration charges: This ranges between Rs 15 per month to Rs 60 per month and is levied
by cancellation of units and also depends on the nature of the scheme.

Risk charges: The charges are broadly comparable across insurers.

Asset management fees: Fund management charges vary from 0.6 per cent to 0.75 per cent for a
money market fund, and around 1.5 per cent for an equity-oriented scheme. Fund management
expenses and the brokerage are built into the daily net asset value.

Switching charges: Some insurers allow four free switches in every year but link it to a
minimum amount. Others allow just one free switch in each year and charge Rs 100 for every
subsequent switch. Some insurers don't charge anything.

Top-ups: Usually attracts 1 per cent of the top-up amount. Top-up normally goes directly into
your investment account (units) unless you specifically ask for an increase in the risk cover.

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Surrender value of units: Insurers levy certain charges if the policy is surrendered prematurely.
This levy varies between insurers and could be around 75 per cent in the first year, 60 per cent in
the second year, 40 per cent in the third year and nil after the fourth year.

Fund performance: You could check out the performance of similar schemes (balanced with
balanced; equity with equity) across insurance companies.

Look at NAV performance over a period of at least two to three years. This can only give you
some indication about the credibility of the fund manager because past performance is no
guarantee to future returns, especially in insurance products where the emphasis is on long-term
performance (10 years or more).

Since insurance is a product, which entails a long-term commitment on the part of the insurer, it
is important not to go only by the features or the cost advantages of schemes but by the parentage
of the insurer as well.

Comparing schemes based on costs is a fairly complex exercise. As a rule, the higher the initial
years' expenses the longer it takes for the policy to outperform its peers with low initial years'
costs and slightly higher subsequent year expenses.

Retire unhurt

Pension plans are essentially tailored to meet old age financial requirements. But there are
certain advantages in joining a pension plan.

First of all, contribution to pension funds uptoRs 10,000 is eligible for tax deduction under
section 80CCC. In other words, your pension contribution will get deducted from your taxable
income.

So if you are in the top tax bracket, liable to pay to a 30.6 per cent tax, then your tax savings will
be that much.

All life insurance companies offer pension products - both conventional and unit-linked. In both
cases you pay a certain premium amount for a specified length of time.

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Usually, the minimum entry age is 18 years and the maximum age is 60 years. You can choose to
pay the premium for five to 30 years. When the policy matures, you receive one-third of the
value of the accumulated amount as a lump-sum payment.For the remaining, you can buy
annuities either from the existing insurer or any other insurer.

While in a conventional scheme, your money is managed through the insurer's pooled investment
account and you are entitled to bonuses every year, in a ULIP you receive the value of the
investment in your individual account.

In a ULIP you have the flexibility to choose between a conservative scheme or an aggressive
scheme with high allocation to equities. Pension policy imposes huge penalties for early
termination.

Endowment Plan - Currently available products to purchase


1. Life Time Care : Is a whole life plan, where it helps you financially at the time when your
regular income ends. It provides survival benefits at the age of 80. The plan also has additional
benefits like Waiver of Premium , Accidental Death Cover & Disability Cover and Critical
Illness Cover & Hospital Cash Cover.

2. Super Saver : Is a regular premium endowment plan, which enables the policyholder to save
an amount regularly for the future. The plan also has an extra benefit of Guaranteed Additions to
the sum assured, at the end of each policy year.

3. Save Care Economy SP : A 10year single premium endowment plan which provides savings
with high risk cover. This plan also participates in the companies profits. It is a high risk policy
but has easy liquidity and high returns.

4. Invest Gain : This plan offers a combination of benefits that help develop a financial
portfolio for your family. At a small extra cost you get 4 times life cover. Also you have an
option of limited premium payment.
Money Back Plan - Currently available products to purchase
A money back plan which guarantees 5 easy payouts giving upto 125% + bonuses. Also 4 times

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a life cover. The additional benefits offered are


• Family Income Benefit
• Accidental Death Benefit and Disability Benefit.
• Critical Illness Benefit and Hospital Cash Benefit.

1. CashGain– Quadruple life cover. Five easy payouts which give up to 125% + bonuses.

2. ChildGain– It help you to enjoy the joys of parenthood responsibly, with the comfort of a
secure future for your child.

3. Cash Rich Insurance Plan – Bajaj Allianz CashRich Insurance is a plan that provides you
cash benefits at three important stages of your life cycle to meet your different goals of life.
Term Plans - Currently available products to purchase
1. Term Care : Is a term Assurance plan which provides life cover and return of premiums paid
at the time of maturity. It has the option of single premium payment. It is the only pure Term
Plan which provides Hospital Cash Benefit.

2. New Risk Care II : Is a plan with regular/single premium payment options. This plan comes
with a lowest cost for a Life Insurance cover. With regular premium plan you get additional
rider benefits. Also accidental death benefit and accidental permanent total/partial disability
benefit. Besides that you can also avail of critical illness benefit and hospital cash benefit.

3. Protector : Is a mortgage reducing term assurance plan. At a low premium amount you can
secure your family from the burden of paying the Home Loan in your absence. You get an
option of both Regular Premium payment and single premium payment. Also there is an option
of Joint life availability, where the co-applicant can also be covered in the plan.
Unit Linked Plans (Regular premium & Single Premium)
Regular Premium - Currently available products to purchase
1. Bajaj Allianz igain III – Bajaj Allianz iGain III Insurance Plan offers you a high allocation,
which will make sure that this unit-linked life insurance plan offers you a great potential for high
returns.

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2. Assured Protection Insurance Plan – It is a unique combination of protection and prospects


of attractive returns with investments in various mix of assets to make a perfect plan to last you a
lifetime of prosperity and happiness.

Regular Premium - Old products not available for fresh purchase


1. Max Advantage Insurance Plan – This is exciting new ULIP product gives you the
guarantee to encash your units at maturity, at the highest unit price achieved by the fund over the
10-year term of your policy.

2. New Unit Gain : Is an investment plan where you get value for your funds invested.

3. New Gain Super :Is a flexible unit linked plan with partial & full withdrawals after 3 years. It
offers additional benefits like UL Accidental Death Benefit and UL Disability Benefit, UL
Critical Illness Benefit and UL Hospital Cash Benefit and 4 funds to choose from & flexibility to
pay top-up any time.

4. New Unit Gain Plus : This plan gives you 5 investment funds to choose from. With the
option of 3 free switches every year. Also, partial or full withdrawal option after 3 years. This
plan offers flexibility to meet ones changing lifestyle and insurance needs. It offers guaranteed
life cover.

5. Unit Gain plus Gold : A unique investment plan with the combination of protection and
prospects of earning attractive returns. It has a high allocation upto 85%. You have a choice of 7
funds to invest in & also a guaranteed life cover. Additional benefit riders are also available with
this plan.

6. New Family Gain-R : It is Life Insurance Plan that can take care of all the changing
requirements of the family. It has maximum flexibility, so that you are provided for all the
changing needs you may have.

7. Young Care : This investment plan is a Gift of a lifetime to a loved one. It offers a guaranteed
Sum Assured and continued pay premium on your behalf, in case of your unfortunate death.

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8. Young Care Plus : It offers the same benefit as the above plan but in addition offers a critical
illness benefit.
Single Premium - Currently available products to purchase
1. Shield Insurance Plan - This plan also gives you guaranteed unit price at maturity with
Shield Plus Fund III.
Single Premium - Old products not available for fresh purchase
1. Wealth Insurance Plan - The plan gives you the benefits of paying a single premium, so you
don’t have to worry about due dates, repetitive paperwork and renewals or continuously make
phone calls to your financial advisor.
2. New Unit Gain Premier SP : It is a unique insurance cum investment plan as it starts
investing 105% of the single premium paid from day one, thereby ensuring that you get more. It
has a guaranteed life cover and flexible withdrawal option u/s 10 (10) D.
3. New Unit Gain plus SP : Is a single premium plan that gives you 98% allocation with
guaranteed life cover. Minimum premium is Rs. 10,000 only. A choice of 5 investment funds to
choose from. And 3 free switches every year. Partial & full withdrawals after 3 years.
Retirement Plans - Currently available products to purchase

1. SwarnaVishranti : Is a plan with an option to take a tax-free lump sum upto 33% of Sum
Assured + Accrued Bonuses. Open Market option: Purchase immediate annuity from Bajaj
Allianz Life Insurance or any other Life Insurance Company. And also additional benefits can be
availed of.

2. Pension Guaranteed:Is a plan that assures a regular income after your retirement for life.

Retirement Plans - Old products not available for fresh purchase


1. New Unit Gain Easy Pension plus RP : A unit linked pension plan without life cover. It has
regular premium payment mode. An option to take a tax-free lump sum up to 33% of Sum
Assured. You can invest in any 6 funds. With 3 free switches every year. Also open market
option: Purchase immediate annuity from Bajaj Allianz Life Insurance or any other life insurer.

2. New Unit Gain Easy Pension plus SP : A unit linked pension plan without life cover. It has
single premium payment mode. An option to take a tax-free lump sum up to 33% of Sum

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Assured. You can invest in any 6 funds. With 3 free switches every year. Also open market
option: Purchase immediate annuity from Bajaj Allianz Life Insurance or any other life insurer.

3 Future Secure : It is a plan which secures your future.

4. Future Income Generator : It h helps you maintain the same lifestyle you lead now ,after
your retirement. The saving today becomes your wealth and support to help secure your future.
The plan is about wealth creation, smart savings and peace of mind along with a corpus, which
secures your life, post retirement.
Women Insurance Plan - Currently available products to purchase
1. Housewives:Housewives need to safeguard their financial independence. There are additional
benefits like the Mahila Gain feature which offers benefits like.
• Critical Illness Benefits.
• Reconstructive Surgery Benefits for Breast(s) due to Breast Cancer.
• Congenital Disability Benefits.
• Complications of Pregnancy Benefits.
Women Insurance Plan - Old products not available for fresh purchase
2. Working Women:This plan helps the working women to protect themselves, their family and
plan for their future. The insurance, investment, pension and health products have been specially
customized to suite to every specific need of a woman.
Children Plans - Old products not available for fresh purchase
Child Gain : Is a plan where it creates funds for critical stages in your Child's life like education,
marriage or even to start a business. It has the benefit of low premium rates.
Health Plans - Currently available products to purchase
1. Health care : Is a plan with 6- in-1 Health Insurance that offers:
• Life Cover
• Hospital Cash benefit
• Surgical benefit
• Post Hospitalization Benefit
• Critical Illness Cover
• Accidental Permanent Total / Partial Disability (APT/PD)

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2. Family Care First : It is a plan for the whole family. This unique hospitalisation plan gives
you health cover for your entire family. You can secure your family with one plan.

3. Care First : A Medical Insurance plan till the age of 65years. And you can renew the policy
every 3 years. The premium rate is level and guaranteed for the length of each policy term of 3
years with extra benefits like day care treatment and pre and post hospitalization treatment.
Group Plans - Currently available products to purchase
Non Employer Employee - Currently available products to purchase
1.Group Income Protection
2.Group Loan Protector
3.Group Term Life
4.Group Term Life (Non Employer Employe5)
4.Group Suraksha
5.Credit shield
6.Sarve Shakti Suraksha
7. Group Credit Protection Plus
Employer Employee - Currently available products to purchase
1. Group Annuity
2. Group Save Plus
3.Group Term Life (Employer employe5.
4. Group Term Life in lieu with EDLI
5. Group Leave Encashment Scheme
Employer Employee - Old products not available for fresh purchase
1. Group Superannuation Gold.
2. Group Gratuity Gold.
3. New Group Gratuity Care.
4. New Group Superannuation Care.

Employer Employee - Old products not available for fresh purchase


1. Group Superannuation Gold.
2. Group Gratuity Gold.

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3. New Group Gratuity Care.


4. New Group Superannuation Care.
Micro Insurance Plans - Currently available products to purchase
1. Alp NiveshYojana :An endowment plan with Life cover and Maturity benefit equal to sum
assured + vested bonus.

2. SaralSurakshaYojana:A Term Insurance policy with return of premium on maturity.

3. Jana VikasYojana :A single premium plan with maturity benefit of 125% of the single
premium payable on survival till the end of the policy term.

HOW DOES ULIP WORK

Sara is a thirty-year old who wants a product that will give him market-linked returns as
well as a life cover. He wants to invest Rs 50,000 a year for 10 years in an equity-based scheme.
Based on this premium, the sum assured works out to Rs 532,000, the exact amount of premium
being Rs 50,032.

Based on the current NAV of the plan that Sara chooses to invest in, he is allotted units in the
scheme. Then, units equivalent to the charges are deducted from his portfolio.

The charges in the first year include a 14 per cent sales charge, an administration charge (7 per
cent for the first Rs 20,000 and 3 per cent for the remaining Rs 30,000) and underwriting
charges, which are deducted monthly.

Besides, mortality charges or the charges for the life cover are also deducted. For the remaining
nine years a 3.5 per cent sales charge and an administrative charge of 4 per cent (for the first Rs
20,000 and 2 per cent for the remaining Rs 30,000) are levied in addition to mortality charges.

Fund management fee of 1.5 per cent (equity) and brokerage are also charged. This cost is built
into the calculation of net asset value.

On maturity - that is, after 10 years - Sara would receive the sum assured of Rs 532,000 or the
market value of the units whichever is higher.

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Assuming the growth rate in the market value of the units to be 6 per cent per annum Sara would
receive Rs 581,500; assuming the growth rate in the market value of the units to be 10 per cent,
Sara would receive Rs 7, 24,400.

In case of Sara's untimely death at the end of the ninth year, his beneficiaries would receive the
sum assured of Rs 532,000 or the market value of the units whichever is higher. Assuming the
growth rate in the market value of units is 6 per cent per annum, the value of investment would
be Rs 510,200.

However, his family will get Rs 532,000 as it is the sum assured.

Assuming a growth rate of 10 per cent per annum, the value of units at the end of the ninth year
would be Rs 621,900. Hence, the beneficiaries would get Rs 621,900

ADVANTAGES OF ULIP

 Can easily rebalance your risk between equity and debt without any tax implications.

 Best suited for medium risk taking individuals who wish to invest in equity and debt
funds (at least 40% or higher exposure to debt). No additional tax burden for those
investing mainly in debt unlike in MFs.

RISKS ASSOCIATED WITH ULIPS

ULIPS as the name suggests are directly linked with the investments made by the
insured. Though he does not have a direct say in this but he does offer his choice in the form of
investment.

With stock markets soaring high a few months back, ULIPs were offering a good rate of return,
but now with a sudden downfall of the stocks, ULIPs are bound to become negative investments.

At present, a policy-holder cannot understand the growth of his investments vis-à-vis other funds
in the market, since there is no benchmark to measure one fund against the other. Usually a
policy-holder could ask his investment in a ULIP to be, for example, 55 per cent in equity and 45
per cent in debt. These components can be mixed according to his risk-taking ability. An

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investor, therefore, would have to look at quarterly statements, where the fund would be
compared with benchmarks. However, this may not be a true representation of the NAV, as the
ULIP could be a mix of debt, liquid and equity investments.

The reality is that most of the ULIPs take more than 5 years to break even. Policies where the
costs are 65 per cent and upwards have not even recovered the principal despite the strongest bull
market we have ever witnessed.

RISK RETURN

Equity High High

Balanced Medium Medium

Debt Low Low

3.7 TYPES OF MUTUAL FUNDS:

I.Closed-end or Open-end

Open-end Funds: An open-end fund is one that has units available for sale and repurchase at all
time. An investor can buy or redeem units from the fund itself at a price based on the Net Asset
Value (NAV) per unit.

Close-end Funds: A close ended fund makes a one-time sale of a fixed number of unit. It does
not allow investors to buy or redeem units directly from the funds. However, to provide liquidity
to investors many closed-end funds get themselves listed on stock exchange. Funds do offer
“buy-back of funds/units” thus offering another avenue for liquidity to closed-end fund investor.

II. Load vs. No Load: Marketing of a new mutual fund scheme involves initial expense. These
expenses may be recovered from the investors in different ways at different times. Three usual
ways in which a fund’s sales expenses may be recovered from the investors are:

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1. At the time of investor’s entry into the fund/scheme, by deducting a specific amount from his
initial contribution: front-end or entry load.

2. By charging the fund/scheme with a fixed amount each year, during the stated number of
years: deferred load.

3. At the time of the investor’s exit from the fund/scheme, by deducting a specific amount from
the redemption proceeds payable to the investor: back end or exit load These charges made by
the fund managers to the investors to cover distribution/sales/marketing expenses are often called
“loads”. Funds that charge front-end, back-end or deferred loads are called load funds. Funds
that make no such charges or loads for sales expenses are called no-loadfunds.

In India, SEBI has defined a “load” as the one-time fee payable by the investor to allow the fund
to meet initial issue expenses including brokers’/agents’/distributors’ commissions, advertising
and marketing expenses.

A load fund’s declared NAV does not include load charges

III. Tax-exempt vs. Non-Tax exempt Funds:Generally, when a fund invests in tax-exempt
securities, it is called a tax-exempt fund. In India, after the 1999 Union Government Budget, all
of the dividend income received from any of the mutual funds is tax-free in the hands of the
investors. However, funds other than Equity Funds have to pay a distribution tax, before
distributing income to investors. In other words, equity mutual fund schemes are tax-exempt
investment avenues, while other funds are taxable for distributable income.

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CHART.NO.1

Type of
funds

Maturity
Load Basis Tax Basis
Basis

Close Open No load Tax - Non –Tax


Load fund
ended ended fund exempt exempt

Types of Equity Fund

a) Aggressive Growth Fund

 Maximum capital appreciation


 Invests in less researched or speculative shares.
 Very volatile & riskier.

b) Growth Fund

 Growth fund invest in companies whose earnings are expected to


 Rise above average rate. e.g. Technology Fund
 Capital appreciation in 3 – 5 years
 Less volatile then aggressive growth fund.
c) Specialty Fund

They invest in companies that meet predefined criteria.

i) Sector Funds

 Technology Fund
 Pharmaceutical Fund

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 FMCG Fund
ii) Offshore Funds

Invest in equities in one or more foreign countries.

iii) Small-Cap equity Funds

Invest in shares of companies with relative lower market capital.

d) Diversified Equity Funds fund that seeks to invest only in equities, except for a very small
portion in liquid money market securities, bur is not focused on any one or few sectors or shares,
may be termed a diversified equity fund. While exposed to all equity price risks, diversified
equity funds seek to reduce the sector or stock specific risks through diversification.

i) Equity Linked Savings Schemes: An Indian Variant

Investment in these schemes entitles the investor to claim an income tax rebate, but usually has a
lock-in period before the end of which funds cannot be withdrawn.

e) Equity Index Funds

An index fund tracks the performance of a specific stock market index. The objective is to match
the performance of the stock market by tracking an index that represents the overall market. The
funds invest in share that constitute the index and in the same proportion on the index.

f) Value Funds

Value Funds try to seek out fundamentally sound companies whose shares are currently under-
prices in the market. Value Funds will add only those shares to their portfolios that are selling at
low price-earnings ratios, low market to book value ratios and are undervalued by other
yardsticks. Fund concentrate on future growth prospect having good potential.

g) Equity Income Funds

There are equity funds that can be designed to give the investor a high level of current income
along with some steady capital appreciation, investing mainly in shares of companies with high
dividend yields.

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 Hybrid Funds – Quasi Equity/Quasi Debt: Many mutual funds mix these (money
market, debt and equity) different types of securities in their portfolios. Such funds are
termed “hybrid funds” as they have a dual equity/bond focus.
 Commodity Funds: While all of the debt/equity/money market funds invest in financial
assets, the mutual fund vehicle is suited for investment in any other- for examples-
physical assets.
 Real Estate Funds: Specialized Real Estate Funds would invest in Real Estate directly,
or may fund real estate developers, or lend to them, or buy shares of housing finance
companies or may even buy their securities assets.

Following are the different products and services Offered by Mutual Fund Companies

 Open ended schemes

 Close ended schemes

 Growth/Equity oriented Schemes

 Income/Debt oriented Schemes

 Balanced Funds

 Money market or liquid funds

 Gilt Funds

 Index Funds

 Exchange Traded Funds

 Sectored Funds

 Thematic Funds

 Commodity Funds

 Real Estate Funds

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 Tax Saving Funds

 Hybrid Funds

There are several ways for investment and disinvestments in mutual funds such as :

 Systematic Investment Plans (SIPs)

 Value Averaging

 Systematic Transfer Plans (STPs)

 Systematic Withdrawal Plans(SWPs)

 Automatic Reinvestment Plans.

 Open ended fund


In an open-ended fund, sale and repurchase of units happen on a continuous basis, at
NAV related prices, from the fund itself.
The corpus of open-ended funds, therefore, changes every day.

 Close ended fund


A closed-end fund offers units for sale only in the NFO. It is then listed in the market.
Investors wanting to buy or sell the units have to do so in the stock markets. Usually
closed-end funds sell at a discount to NAV.
The corpus of a closed-end fund remains unchanged.
 Growth fund
Provide capital appreciation over the medium to long-term
• Investor who does not require periodic income distribution can choose the option, where
the incomes earned are retained in the investment portfolio and allowed to grow, rather
than being distributed to investors.
• Investors with longer investment horizons and limited requirements for income choose
this option.
• The return to the investor who chooses a growth option is the rate at which his initial
investment has grown over a period for which he has invested in the fund.

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• The investor choosing this option will vary the NAV with the value of the investments
portfolio, while the no. of units held with remains constant.
 Income fund
Provide regular and steady income to investor
 Balanced fund
Provide both growth and regular income.
 Money market fund
Provide easy liquidity, regular income and preserve the income
 Tax saving scheme
Offer tax rebates to the under specific provisions of the Indian income tax laws
Investment made under some schemes are allowed as deduction U/S 88 of the income tax
act .
 Automatic Reinvestment Plans
Reinvestment of amount of dividend made by fund in the same fund.
In this option, the no. of units held by the investor will change with every reinvestment.
The value of units will be similar to that under the dividend option
There are four types of plans as follows
 Lump sum Investment
It is one time investment..
Investors can invest particular amount one time for fixed time of period.
 Systematic Investment Plans( SIP) – For regular investment
SIP is investing a fixed sum periodically in a disciplined manner for long term.
It gives benefit of Rupee Cost averaging.
In SIP monthly minimum Rs.500 or Rs.100 are invested.
Interest is calculating compound.
Many SIP gives insurance benefits.
VAP is modified version of SIP. It is Voluntary Accumulation Plan. It allows the investor
flexibility with respect to the amount and frequency of investment.
In VAP, investor has to impose voluntary self discipline.

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 Systematic Withdrawal Plan ( SWP) – For regular income


The lump sum amount is invested for one time and then fixed percent amount is
withdrawn monthly.
Remaining amount will grow continuously.
This plan is suitable for retired person, because it gives regular income.
 Systematic Transfer Plan ( STP) –
Transfer on a periodic basis a specified amount from one scheme to another within the
same fund family.
It gives option to the investor if the current fund performance in not satisfactory.

 Dividend option
 Investors will receive dividends from the mutual fund , as an and when dividends are
declared.
 Dividends are paid in the form of warrants or are directly credited to the investor’s
bank accounts.
 In normal dividend plan , periodicity of dividends is left to the fund managers, the
timing of the dividend payout is decided by fund manager.
 Mutual funds provide the option of receiving dividends at pre-determined
frequencies,wich can vary from daily,weekly,monthly,quarterly,half-yearly and
annual. Investors can choose the frequency of dividend distribution that suits their
requirements.
 Investors choosing this option have a fixed no. of units invested in the fund and
earned incomes on this investment.
 The NAV of this investors holding will vary with changes in the value of portfolio
and the impact of the proportion of income earned by the fund to what is actually
distributed as dividend.

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REGULATORS IN INDIA

 SEBI - The capital markets regulators also regulates the mutual funds in India. SEBI
requires all mutual funds to be registered with them. SEBI issues guidelines for all
mutual funds operations - investment, accounts, expenses etc.
 RBI as supervisor of banks owned mutual funds - As banks in India came under the
regulatory jurisdiction of RBI, bank owned funds to be under supervision of RBI and
SEBI.
 RBI as supervisor of Money Market Mutual Funds - RBI has supervisory responsibility
over all entities that operate in the money markets. Hence in the past Money Market
Mutual Funds scheme of Mutual funds had to be abide by policies laid down by RBI.
Recently, it has been decided thatMoney Market Mutual Funds of registered mutual

COMPARISON OF ULIP VS MUTUAL FUND

Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual
funds in terms of their structure and functioning. As is the cases with mutual funds, investors in
ULIPs are allotted units by the insurance company and a net asset value (NAV) is declared for
the same on a daily basis.
Similarly ULIP investors have the option of investing across various schemes similar to the ones
found in the mutual funds domain, i.e. diversified equity funds, balanced funds and debt funds to
name a few. Generally speaking, ULIPs can be termed as mutual fund schemes with an insurance
component.
However it should not be construed that barring the insurance element there is nothing
differentiating mutual funds from ULIPs

1. Mode of investment/ investment amounts


Mutual fund investors have the option of either making lump sum investments or
investing using the systematic investment plan (SIP) route which entails commitments over
longer time horizons. The minimum investment amounts are laid out by the fund house.
ULIP investors also have the choice of investing in a lump sum (single premium) or using the

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Conventional route, i.e. making premium payments on an annual, half-yearly, quarterly or


monthly basis. In ULIPs, determining the premium paid is often the starting point for the
investment activity.
This is in stark contrast to conventional insurance plans where the sum assured is the starting
point and premiums to be paid are determined thereafter.
ULIP investors also have the flexibility to alter the premium amounts during the policy's tenure.
For example an individual with access to surplus funds can enhance the contribution thereby
ensuring that his surplus funds are gainfully invested; conversely an individual faced with a
liquidity crunch has the option of paying a lower amount (the difference being adjusted in the
accumulated value of his ULIP). The freedom to modify premium payments at one's onvenience
clearly gives ULIP investors an edge over their mutual fund counterparts.

2. Expenses
In mutual fund investments, expenses charged for various activities like fund
management, sales and marketing, administration among others are subject to pre-determined
upper limits as prescribed by the Securities and Exchange Board of India.
For example equity-oriented funds can charge their investors a maximum of 2.5% per annum on
a recurring basis for all their expenses; any expense above the prescribed limit is borne by the
fund house and not the investors. Similarly funds also charge their investors entry and exit loads
(in most cases, either is applicable). Entry loads are charged at the timing of making an
investment while the exit load is charged at the time of sale.Insurance companies have a free
hand in levying expenses on their ULIP products with no upper limits being prescribed by the
regulator, i.e. the Insurance Regulatory and Development Authority. This explains the complex
and at times 'unwieldy' expense structures on ULIP offerings. The only restraint placed is that
insurers are required to notify the regulator of all the expenses that will be charged on their ULIP
offerings. Expenses can have far-reaching consequences on investors since higher expenses
translate into lower amounts being invested and a smaller corpus being accumulated.

3. Portfolio disclosure
Mutual fund houses are required to statutorily declare their portfolios on a quarterly basis,
albeit most fund houses do so on a monthly basis. Investors get the opportunity to see where their

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monies are being invested and how they have been managed by studying the portfolio.There is
lack of consensus on whether ULIPs are required to disclose their portfolios. During our
Interactions with leading insurers we came across divergent views on this issue.While one school
of thought believes that disclosing portfolios on a quarterly basis is mandatory, the other believes
that there is no legal obligation to do so and that insurers are required to disclose their portfolios
only on demand. Some insurance companies do declare their portfolios on a monthly/quarterly
basis. However the lack of transparency in ULIP investments could be a cause for concern
considering that the amount invested in insurance policies is essentially meant to provide for
contingencies and for long-term needs like retirement; regular portfolio disclosures on the other
hand can enable investors to make timely investment decisions.

4. Flexibility in altering the asset allocation


As was stated earlier, offerings in both the mutual funds segment and ULIPs segment are
largely
Comparable. For example plans that invest their entire corpus in equities (diversified equity
funds), a 60:40 allotment in equity and debt instruments (balanced funds) and those investing
only in debt instruments (debt funds) can be found in both ULIPs and mutual funds.

If a mutual fund investor in a diversified equity fund wishes to shift his corpus into a debt from
the same fund house, he could have to bear an exit load and/or entry load.
On the other hand most insurance companies permit their ULIP inventors to shift investments
across various plans/asset classes either at a nominal or no cost (usually, a couple of switches are
allowed free of charge every year and a cost has to be borne for additional switches).
Effectively the ULIP investor is given the option to invest across asset classes as per his
convenience in a cost-effective manner.This can prove to be very useful for investors, for
example in a bull market when the ULIP investor's equity component has appreciated, he can
book profits by simply transferring the requisite amount to a debt-oriented plan.

5. Tax benefits
ULIP investments qualify for deductions under Section 80C of the Income Tax Act. This
holds good, irrespective of the nature of the plan chosen by the investor. On the other hand in the

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mutual funds domain, only investments in tax-saving funds (also referred to as equity-linked
savings schemes) are eligible for Section 80C benefits.Maturity proceeds from ULIPs are tax
free. In case of equity-oriented funds (for example diversified equity funds, balanced funds), if
the investments are held for a period over 12 months, the gains are tax free; conversely
investments sold within a 12-month period attract short-term capital gains tax @ 10%.
Similarly, debt-oriented funds attract a long-term capital gains tax @ 10%, while a short-term
capital gain is taxed at the investor's marginal tax rate.
Despite the seemingly similar structures evidently both mutual funds and ULIPs have their
unique set of advantages to offer. As always, it is vital for investors to be aware of the nuances in
both offerings and make informed decisions

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RESULT, ANALYSIS& INTERPRETATION

Table no4 .1 showing policy holders according to gender

Frequency Percent Valid Percent

Valid Male 37 74.0 74.0

Female 13 26.0 26.0

Total 50 100.0 100.0

Chart no4 .1 Graph showing policy holders according to the genders

INTERPRETATION:
The above graph shows that , out of 50 customers, 74% of the respondents are male policy
holders and the rest 26% are female policy holders.

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Table no 4.2 showing marital states of the policy holders

Frequency Percent Valid Percent

Valid Married 33 66.0 66.0

Unmarried 17 34.0 34.0

Total 50 100.0 100.0

Chart no4. 2 showing marital status of the policy holders

INTERPRETATION:
From a sample of 50 customers, 66% of the policy holders are unmarried and the rest 34% of the
policy holders are married.

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Table no4.3 showing age group of the policy holders

Frequency Percent Valid Percent

Valid 20-30 6 12.0 12.0

30-40 14 28.0 28.0

40-50 17 34.0 34.0

50-60 11 22.0 22.0

60-70 2 4.0 4.0

Total 50 100.0 100.0

Chart no4.3 Showing age group of the policy holders

INTERPRETATION:
The graph shows that majority of the sample respondents were in the age group of 40-50 yrs
ie,34%, 12% were in the age group of 20-30 yrs& 28% of them were 30-40 yrs, 22% were in the
age group of 50-60 yrs and 4% were in the age group of 60-70 yrs.

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Table no4.4 showing occupation of the policy holders

Frequency Percent

Valid Government 18 36.0

Private service 14 28.0

Business 11 22.0

NRIs 3 6.0

Others 4 8.0

Total 50 100.0

Chart no4.4 showing occupation of the policy holders

INTERPRETATION:
The graph shows that majority of the policy holders are working in the Government sector
i.e.36% , 28% of them are engaged in Private service, 22% of them are business field, 6% of
them are NRIs and 8% of them are engaged other works.

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Table no 4.5 Showing income levels of the policy holders

Frequency Percent

Valid Below 2 lakhs 19 38.0

2-4 lakhs 23 46.0

4-6 lakhs 6 12.0

6-8 lakhs 2 4.0

Total 50 100.0

Chart no 4.5 Showing income levels of the policy holders


ANNUAL INCOME

ANNUAL INCOME

INTERPRETATION :The graph shows that 46% of the policy holders get a salary of 2-4 lakhs,
38% of the policy holders get a salary of below 2 lakhs, 12% of the policy holders get a salary of
4-6 lakhs, 3 of the policy holders get a salary below 2 lakhs and 4% of them above 6-8 lakhs.

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Table no4.6 showing Sources that helps you in making investment decision.

Frequency Percent
Valid Financial 5 10.0
journal
Television 2 4.0
Brokers/Agent 27 54.0
Friends 13 26.0
Consultants 3 6.0
Total 50 100.0

chart no 4.6

INTERPRETATION:
From the sample of 50 customers, 54% of the customers are strongly agree that the agents or
brokers helps them to make investment decision, 26% of the customers point out their friend take
part in the investment decision. And 10% customers reveal that the financial journals helps them,
Remaining 6% is from consultants, and 4% selects television as the source.

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Table no4.7 showing Factors that influence your investment decision in a particular
company.

Frequency Percent
Valid Attractive 2 4.0
schemes
Tax benefits 27 54.0
High reputation 3 6.0
Rate of return 14 28.0
Variety of 4 8.0
products
Total 50 100.0

Chartno4.7

INTERPRETATION : 54% customers agree that the tax benefit is influence them to buy
policy ,28% looks the rate of return what they will earn, variety of products from the company
attracts 8% customers, and high reputation of the company attracts 6% of the customers, and
remaining 4% pointing out the attractive schemes.

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Table no4.8 showing policy holders generally like to invest money in.

Frequency Percent
Valid Insurance 13 26.0
Stock market 1 2.0
Mutual fund 6 12.0
Bank deposit 28 56.0
Both insurance and 2 4.0
mutual fund
Total 50 100.0

Chart no4.8

INTERPRETATION:
From a sample of 50 customers, 56% of the customers invest money in bank deposit, 26% in
insurance sector,12% in mutual fund, then 4% in both insurance and mutual fund, and remaining
2% in stock market.

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Table no4.9 showing According to policy holders who among the following life insurance
company is best.

Frequenc
y Percent
Valid Bajaj Allianz 27 54.0
HDFC Standard 5 10.0
life
Tata AIG 4 8.0
Aviva Life 3 6.0
SBI Life 11 22.0
Total 50 100.0
Chartno4.9

INTERPRETATION: From a sample of 50 customers,54% customers select Bajaj Allianz is


the best insurance company, and 22% customers choose SBI Life,10% select HDFC,8% for Tata
AIG and remaining 6% stands for Aviva life insurance company.

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Table no4.10 showing Howwould respondents rate our products.

Frequency Percent
Valid Excellent 2 4.0
Good 37 74.0
Fair 9 18.0
Poor 2 4.0
Total 50 100.0

Chart no4.10

INTERPRETATION:
From a sample of 50 customers,74% customers thinks that the products offered by Bajaj Allianz
Life insurance co. is good,4% thinks its excellent,18% of them select Bajaj Allianz products are
fair, and remaining 4% not satisfied with our products.

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Table no4.11 Showing Investors would like to invest money in ULIP.

Frequency Percent
Valid Strongly agree 2 4.0
Agree 33 66.0
Neutral 8 16.0
Disagree 5 10.0
Strongly disagree 2 4.0
Total 50 100.0

Chart no4.11

INTERPRETATION:
From a sample of 50 customers, 66% agree, 4% of them strongly supporting that fact, and 16%
has no opinion about it. And 4% strongly disagreed, remaining 10% also disagree with
investment in ULIP.

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Table no4.12.Showing Reason for choosing ULIPs because of insurance coverage.

Frequency Percent
Valid Strongly agree 14 28.0
Agree 32 64.0
Neutral 2 4.0
Disagree 2 4.0
Total 50 100.0

Chart no4.12

INTERPRETATION:
From a sample of 50 customers, 64% of the customers agree, ,28% of them strongly support
it,4% customers didn’t say anything, and remaining 4% disagree with that fact. So we can see
that most of the Customers choose ULIP because of insurance coverage.

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Table no4.13 Showing investorswould like to invest money in Mutual Funds.

Frequency Percent
Valid Strongly agree 3 6.0
Agree 13 26.0
Neutral 14 28.0
Dsagree 18 36.0
Strongly disagree 2 4.0
Total 50 100.0

Chart no4.13

INTERPRETATION:
From a sample of 50 customers, 26% of the customers agree with that fact, 6% of the customers
strongly support it, and 28% customers have no idea about it. And remaining 10% disagreed, out
of this 10%, 4% strongly disagreed with it.

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Table no4.14 showing Mutual funds are more risky than ULIP products.

Frequency Percent
Valid Strongly agree 17 34.0
Agree 27 54.0
Neutral 4 8.0
Disagree 2 4.0
Total 50 100.0

Chart no4.14

INTERPRETATION:
From a sample of 50 customers,54% of the customers thinks that mutual funds are more risky
than ULIP products,34% strongly agree with this statement.8% customers have no opinion about
it, and remaining 4% disagree with it.

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Table no4.15 showing ULIPs have advantage over Mutual funds.

Frequency Percent
Valid Strongly agree 12 24.0
Agree 31 62.0
Neutral 5 10.0
Disagree 2 4.0
Total 50 100.0

Chart no4.15

INTERPRETATION:
62% of the customers agree with ULIP have advantage over mutual fund statement.24%
customers strongly agree with this fact. And 4% of customers not supporting the statement. And
remaining 10% have no opinion about it.

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Table no4.16 showing Do the investors think the safety factor is important in your
investment in ULIP.

Frequency Percent
Valid Strongly agree 4 8.0
Agree 26 52.0
Neutral 2 4.0
Disagree 15 30.0
Strongly disagree 3 6.0
Total 50 100.0

Chartno4.16

INTERPRETATION:
From a sample of 50 customers,52% customers agree,8% strongly agree,30% customers were
disagree with that fact,6% strongly disagree, and remaining 4% have no opinion about safety
factor is important in the investment of ULIP.

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Table no4.17 showing that Do the investors think the Liquidity factor is important in their
investment in ULIP.

Frequency Percent
Valid Strongly agree 3 6.0
Agree 5 10.0
Neutral 5 10.0
Disagree 30 60.0
Strongly disagree 7 14.0
Total 50 100.0

Chart no4.17

INTERPRETATION:
From a sample of 50 customers, majority of the customers disagree i.e. 60%, 14% strongly
disagree with that fact. And 6% strongly agree,10% agree, and remaining 10% neither agree nor
disagree with that statement.

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Table no4.18 showing that Do the investors think the Rate of return factor is important in
their investment in ULIP.

Frequency Percent
Valid Strongly agree 6 12.0
Agree 21 42.0
Neutral 3 6.0
Disagree 12 24.0
Strongly disagree 8 16.0
Total 50 100.0

Chart no4.18

INTERPRETATION: From a sample of 50 customers, majority of the customers agree i.e.


42%, 12% strongly agree with that fact. And 24% disagree,16% strongly disagree, and remaining
6% neither agree nor disagree with that statement

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Table no4.19 showing thatdo the investors think that Tax savings is influence their
investment decision in ULIP.

Frequency Percent
Valid Strongly agree 6 12.0
Agree 21 42.0
Neutral 5 10.0
Disagree 16 32.0
Strongly disagree 2 4.0
Total 50 100.0

Chart no4.18

INTERPRETATION:
From a sample of 50 customers, majority of the customers agree i.e. 42%, 12% strongly agree
with that fact. And 32% disagree,4% strongly disagree, and remaining 10% neither agree nor
disagree with that statement

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Table no4.19 showingpast scheme’s performance influence their investment decision in


ULIP.

Frequency Percent
Valid Strongly agree 8 16.0
Agree 8 16.0
Neutral 7 14.0
Disagree 23 46.0
Strongly disagree 4 8.0
Total 50 100.0

Chart no4.19

INTERPRETATION: From a sample of 50 customers, majority of the customers disagree i.e.


46%, 8% strongly disagree with that fact. And 16% strongly agree,16% agree, and remaining
14% neither agree nor disagree with that statement

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Table no4.20 showing Advertisement influence the investment decision in ULIP.

Frequency Percent
Valid Strongly agree 9 18.0
Agree 11 22.0
Neutral 19 38.0
Disagree 5 10.0
Strongly disagree 6 12.0
Total 50 100.0

Chart no4.20

INTERPRETATION:
From a sample of 50 customers, 22%agree, 18% strongly agree with that fact. And 10%
disagree, 12% strongly disagree, and remaining 38% neither agree nor disagree with that

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Table no4.21 Do the investors think that safety factor is important in their investment in
mutual fund.

Frequency Percent
Valid Strongly agree 2 4.0
Agree 4 8.0
Neutral 8 16.0
Disagree 30 60.0
Strongly disagree 6 12.0
Total 50 100.0

Chart no4.21

INTERPRETATION:
From a sample of 50 customers,8% customers agree,4% strongly agree,60% customers were
disagree with that fact 12% strongly disagree, and remaining 16% have no opinion about safety
factor is important in the investment of mutual fund.

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Table no4.22 showing Do the investors think thatLiquidity factor is important in


theirinvestment in mutual fund.

Frequency Percent
Valid Strongly agree 7 14.0
Agree 19 38.0
Neutral 15 30.0
Disagree 6 12.0
Strongly disagree 3 6.0
Total 50 100.0

Chart no4.22

INTERPRETATION:
From a sample of 50 customers, majority of the customers agree i.e. 38%, 14% strongly agree
with that fact. And 12% disagree,6% strongly disagree, and remaining 30% neither agree nor
disagree with that statement.

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Table no4.23 showing Do the investors think that the Rate of return factor is important in
their investment in mutual fund.

Frequency Percent
Valid Strongly agree 2 4.0
Agree 7 14.0
Neutral 21 42.0
Disagree 15 30.0
Strongly disagree 5 10.0
Total 50 100.0

Chart no4.23

INTERPRETATION:
From a sample of 50 customers, 30% disagree, 10% strongly disagree with that fact. And 14%
agree,4% strongly agree, and remaining 42% neither agree nor disagree with that statement.

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Table no4.24 showing Do the investors think that Tax savings is influence their investment
decision in mutual fund.

Frequency Percent
Valid Strongly agree 3 6.0
Agree 6 12.0
Neutral 23 46.0
Disagree 12 24.0
Strongly disagree 6 12.0
Total 50 100.0

Chart no4.24

INTERPRETATION:
From a sample of 50 customers, 24% disagree, 12% strongly disagree with that fact. And 12%
agree,6% strongly agree, and remaining 46% neither agree nor disagree with that statement.

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Table no4.25 showing past scheme’s performance influence their investment decision in
mutual fund.

Frequency Percent
Valid Strongly agree 6 12.0
Agree 22 44.0
Neutral 15 30.0
Disagree 7 14.0
Total 50 100.0

Chart no4.25

INTERPRETATION:
From a sample of 50 customers, 44% agree, 12% strongly agree with that fact. And 14%
disagree, and remaining 30% neither agree nor disagree with that statement.

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Table no4.26 showing Advertisement influence the investment decision in mutual fund.

Frequency Percent
Valid Strongly agree 4 8.0
Agree 16 32.0
Neutral 24 48.0
Disagree 4 8.0
Strongly disagree 2 4.0
Total 50 100.0

Chart no4.26

INTERPRETATION:
From a sample of 50 customers, 8% strongly agree,32% agree with that fact. And 8% strongly
disagree, 4% disagree, and remaining 24% neither agree nor disagree with that statement.

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Table no4.27.Showing investors would like to reinvest my funds in the same company
again.

Frequency Percent
Valid Strongly agree 23 46.0
Agree 15 30.0
Neutral 6 12.0
Disagree 4 8.0
Strongly disagree 2 4.0
Total 50 100.0

Chart no4.27

INTERPRETATION:
46% of the customers express their satisfaction level with Bajaj Allianz service. They Strongly
agree with the statement, 30% customers also agree with it. And 12% have neutral situation. And
remaining 12% not satisfied with Bajaj Allianz.

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4.6 Hypothesis testing on age group of the policy holders


(H0):People will not prefer investment in ULIP of Bajaj Allianz life insurance as Compared to mutual
fund in Nodded
(H1):-People will prefer investment in ULIP of Bajaj Allianz life insurance as Compared to mutual
fund in Nodded

CHISQUARE TEST:

Calculation Table
Age Observed Expected O-E (O-E)2 (O-E)2/E

20-30 6 10 -4 16 1.6
30-40 14 10 4 16 1.6
40-50 17 10 7 49 4.9
50-60 11 10 1 1 0.1
60-70 2 10 -8 64 6.4
Total 50 50 146 14.6

(O-E) 2/E = 14.6

Calculated x2 value = 14.6


Degree of freedom = 3

Table value = 3.44

Significant level = Significant at 5% level

INTERPRETATION
It is observed from the above table that the calculated value of chi-square is greater than value.
Hence the null hypothesis is rejected and it is concluded that Bajaj policy of the age group of the
policy holders beter

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FINDINGS,CONCLUSION& SUGGESTION

5.1 FINDINGS
After survey there are some findings and suggestions as follows.
 Middle class people who are interested in investment but they are not aware of such
options
 While investing any insurance company customer prefers for good branded company
 While investing in mutual fund 44% of the customers looks their return,42% customers
observe the scheme’s performance in past years.
 First reason or preference that why an investor is interested in ULIP is Investment
Purpose, and second is to its returns and after that they investing because they are getting
the tax benefit. Then again there are some people who are investing for pension planning
and security.
 In future people will be more preferring to the security of their money means they want a
secured option which should provide good returns. As ULIP are the option in which you
can have the security also and good returns. The second choice of the investors is return
of their money.
 54% of people given Best rating to the Bajaj Allianz Life Insurance ULIP, so from this
we can analyze that Bajaj Allianz Life Insurance is doing good but it is having good
potential in Market..
 6% customers are attracted due to the high reputation of the company. So if BALIC
wants to penetrate its market share they should improve the marketing strategy,
improving the distribution channel etc.
 As insurance sector is growing rapidly so most of the life insurance players are selling
ULIP plans. And the awareness about ULIP is growing most of the people knows the
ULIP of life insurance. Since last 4-5 years the returns provided by ULIP were very good
so people tend more towards ULIP

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5.3 CONCLUSIONS
From above analysis and survey we can conclude as follows

 Awareness of ULIP is increasing as more number of private players are entering in life
Insurance industry.
 Mutual Fund is also getting more and more famous in Indian market as many private
Companies innovating new funds as the investors demand.
 ULIP differentiate from Mutual fund in respect of Insurance cover.
 Investors in Bajaj Allianz Life ULIP will be getting the advantage of life insurance cover.
 People are turning towards the ULIP as a good investment option but as ULIP is in its
Starting phase so customers are preferring only big brands.
 Mutual fund is having good growth but many customers from rural areas don’t have any
Knowledge about Mutual fund. They think it is very risky.
 Even investors from cities like shahapur they don’t have that much of Knowledge about
fund selection they all are depends on Brokers.
 People in shahapur are investing in only good branded companies as they don’t believe
on other financial companies for taking ULIP.
 There is a need for insurers to undertake a demand audit in order to understand what the
Policyholder wants and needs.

 Deriving the right feedback from customers and bringing out innovative products which
Cater to customer demands will go a long way in tapping the market potential of the
Insurance and Mutual fund sector.

 For Bajaj Allianz Life Insurance They should go for creating more awareness about its
ULIP as now also people are just investing because Bajaj is India’s most Known and
Favorite brand in past.
Bajaj Allianz should go for innovating more and more products and improving the
Distributionchannels as per the area of sales.

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5.2 SUGGESTIONS

 More awareness should be there, as main target customer are the middle class peoples.

 Bajaj is India’s one of the most famous and richest family. And second preference is
given to SBI life as many people perceive that SBI Life is a govt. owned company so
people want security for their investment.

 So awareness about MF is not very good and it can be improved.

 To improve its market share they should improve the awareness level of the common
people

 Innovative Products and good brand name are the main success factor for Bajaj Allianz
Life Insurance.

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BIBLIOGRAPHY

REFERENCE:
1) Research Methodology, C.R Kothari, 2nd edition

2) Outlook Money, 15 May 2005, “ULIP Mania”.

3) The Business Line,10 June 2007, “Know all About ULIPS”.

WEBSITE

www.irdaindia.gov

www.bajajallianzlife.co.in

www.quickmba.com

www.amfindia.com

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RR COLLEGE OF MANAGEMENT STUDIES AND COMPUTER APPLICATIONS BANGALORE Page 85


A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

ANNEXTURE

QUESTIONNAIRE

I amGOUDAPPAGOUDA RR COLLEGE OF MANAGEMENT STUDIES &


COMPUTER APPLICATIONS BANGLOREdoing aproject on“A
COMPARATIVE STUDY OF ULIP PLANS OF BAJAJ ALLIANZ LIFE
INSURANCE WITH MUTUAL FUNDS” and this questionnaire is a part of the
project and the information collected through this questionnaire would be used only for
academic purposes and strictly confidential

PERSONNAL INFORMATION

1. Name:

2. Gender:

(a) Male (a) Female

3. Marital status:

(a) Married (b) Unmarried

4. Age:

(a) 20-30 (b) 30-40

(c) 40-50 (d) 50-60

(e) 60-70

5. Occupation:

(a) Government (b) Private Service

(c) Business (d) NRIs

(e) Others

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

6.Annual Income:

(a) Below 2 lakhs (b) 2-4 lakhs

(c) 4- 6 lakhs (d) 6-8 lakhs

(e) Above 8 lakhs

1. Sources that helps you in making the investment decisions.

(a) Financial journal (b) Television

(c) Brokers or agents (d) Friends

(e) Consultants

2. Factors that influence your investment decisions in a particular company.

(a) Attractive schemes (b) Tax benefits

(c) High reputation (d) Rate of return

(e) Variety of products

3. You generally like to invest money.

(a) Insurance (b) Stock Market

(c) Mutual Fund (d) Bank deposits

(e) Both insurance and mutual fund

4. According to you who among the following Life Insurance companies is best.

(a) BAJAJ ALLIANZ (b) HDFC STANDARDLIFE

(c) TATA AIG (d) AVIVA LIFE INSURANCE

(e) SBI LIFE

5. How would you rate our products.

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

(a) Excellent (b) Good

(c) Fair (d) Poor

(e) Very poor

6. I Would like to invest money in ULIP.

(a) Strongly agree (b) Agree

(c) Neutral (d) Disagree

(e) Strongly disagree

7. Reason for choosing ULIPs because of insurance coverage.

(a) Strongly agree (b) Agree

(c) Neutral (d) Disagree

(e) Strongly disagree

8. Iwould like to invest money in Mutual Funds.

(a) Strongly agree (b) Agree

(c) Neutral (d) Disagree

(e) Strongly disagree

9. Mutual funds are more risky than ULIP products.

(a) Strongly agree (b) Agree

(c) Neutral (d) Disagree

(e) Strongly disagree

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

10. ULIPs have advantage over Mutual funds.

(a) Strongly agree (b) Agree

(c) Neutral (d) Disagree

(e) Strongly disagree

Do you view following factors/sources of information important while investing in ULIP.

Strongly Agree Neutral Disagree Strongly


agree disagree
(11) Safety
(12) Liquidity
(13) Rate of Return
(14) Tax savings
(15) past scheme’s
Performance
(16) Rating of
ULIP by Agencies
(17)Advertisements

Do you view following factors/sources of information important while investing inMutual


Funds.

Strongly Agree Neutral Disagree Strongly


agree disagree
(11) Safety
(12) Liquidity
(13) Rate of Return
(14) Tax savings
(15) past scheme’s

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A Comparative analysis of ULIP plans of Bajaj Allianz Life insurance with mutual funds

Performance
(16) Rating of
ULIP by
Agencies
(17)Advertisements
18. I would like to reinvest my funds in the same company again.

(a) Strongly Agree (b) Agree

(c) Neutral (d) Disagree

(e) Strongly disagree

RR COLLEGE OF MANAGEMENT STUDIES AND COMPUTER APPLICATIONS BANGALORE Page 90