PROJECT REPORT

ON
COMPARATIVE ANALYSIS OF
ULIP PLANS WITH MUTUAL FUNDS
SIP PROJECT SUBMITTED IN PARTIAL FULFILLMENT
OF
MASTERS OF BUSINESS ADMINISTRATION


Submmitted to:- Submmitted by:-
Mrs M!"i"der #!ur $o%it!
&&'()*+(',+
PTU LEARNIN- CENTER FERO.-AND/I MAR#ET
LUD/IANA
1
A01"o23ed%eme"t
The summer internship program (SIP) undertaken by me at Mall Road branch of Met Life
Insurance at Ludhiana as an e!tremely rearding e!perience for me in terms of
learning and industry e!posure"
I ould like to e!tend my deep gratitude toards the #ead of the organi$ation and my
company guide% Mr" &'it Singh (edi% (ranch Manager% Met Life% Mall Road% Ldh" ho
alays moti)ated me and helped me during the internship and ga)e his )aluable time *
guidance in e)ery step of my pro'ect" #e as like a mentor for me during + eeks of
internship program gi)ing me )aluable inputs * much need sales e!posure"
I ould like to thank my faculty guide Mrs Maninder ,aur ho ga)e his )aluable inputs
in preparation of report" She ga)e )aluable time from his busy schedule to help in the
process of telling about things lookout"
I ould like to thank my colleagues ho ere orking ith me during the internship in
Met Life Insurance -ompany for their corporation * support during the entire period"
.ogita
/
PREFACE
This report is based upon to months industrial training hich is an
important part of a degree course prescribed as per norms by the Pun'ab Technical
0ni)ersity (PT0) 1alandhar" The training as held from at MetLife" The report gi)es a
brief account of the acti)ities performed during the training program" This report ill
also gi)e description of pro'ect under taken" The aim of this training is to pro)ide
industrial e!posure and basis practical knoledge to the students"
.23IT&
4
LIST OF CONTENTS
C4 P!rti0u3!rs
&
'
+
)
5
*
6
,
7
&(
&&
&'
&+
&)
&5
&*
&6
&,
&7
'(
'&
''
I"trodu0tio" O8 I"sur!"0e
I"trodu0tio" o8 MetLi8e
B!01%rou"d o8 Com9!"y
Ob:e0ti;es o8 study
<4!t is ULIP
Ty9es o8 ULIP
<or1i"% o8 ULIPs
Ad;!"t!%es !"d Dis!d;!"t!%es o8 ULIP
Mutu!3 Fu"ds
<or1i"% o8 Mutu!3 Fu"ds
C4!r!0teristi0s o8 Mutu!3 Fu"ds
Stru0ture o8 Mutu!3 Fu"ds
Ty9es o8 Mutu!3 Fu"ds
Ad;!"t!%es o8 Mutu!3 Fu"ds
Dis!d;!"t!%es o8 Mutu!3 Fu"ds
Com9!riso" bet2ee" ULIP !"d Mutu!3 Fu"ds
<4y to i";est i" ULIP
/o2 ULIP 0!" m!1e you ri04
Rese!r04 Met4odo3o%y
Com9!r!ti;e A"!3ysis o8 ULIP !"d Mutu!3 Fu"ds
Bib3io%r!94y
=uestio""!ire
5
INTRODUCTION
OF INSURANCE
SECTOR
6
The practice of insurance in the orld is 7uite old infect" #oe)er% life insurance
business% as it is knon today% is a much later de)elopment" It e)ol)ed from the great
transformation in life% hich began ith its cities% factories% cash economy and an urban
8sa)ing9 class set the stage for life insurance as a large: scale national institution" It can
truly be that life insurance is a product of modern industry" 3roth of life insurance
-ompany in any country ill illustrate introduced modern life insurance business didn9t
make much headay" The business treated taking its deeper roots only hen in the late
1;century 8India insurance companies appeared on the scenes and started accepting
8India9 lies freely on the same terms as <uropean li)es in India" The groth of India life
insurance business continued to remain restricted till the Sedish mo)ement gathered
momentum" The business passed through the period of ups and dons ith the political
and economic situation in the country"
The Insurance sector in India go)erned by Insurance &ct% 1;4+% the Life Insurance
-orporation &ct% 1;6= and 3eneral Insurance (usiness (>ationalisation) &ct% 1;?/%
Insurance Regulatory and @e)elopment &uthority (IR@&) &ct% 1;;; and other related
&cts" Aith such a large population and the untapped market area of this population
Insurance happens to be a )ery big opportunity in India" Today it stands as a business
groing at the rate of 16:/B per cent annually" Together ith banking ser)ices% it adds
about ? per cent to the country9s 3@P "In spite of all this groth the statistics of the
penetration of the insurance in the country is )ery poor" >early +BC of Indian
populations are ithout Life insurance co)er and the #ealth insurance"
=
This is an indicator that groth potential for the insurance sector is immense in India" It
as due to this immense groth that the regulations ere introduced in the insurance
sector and in continuation DM!34otr! Committee> as constituted by the go)ernment in
1;;4 to e!amine the )arious aspects of the industry"
The key element of the reform process as participation of o)erseas insurance companies
ith /=C capital" -reating a more efficient and competiti)e financial system suitable for
the re7uirements of the economy as the main idea behind this reform"
Since then the insurance industry has gone through many sea changes "The competition
LI- started facing from these companies ere threatening to the e!istence of LI- "since
the liberali$ation of the industry the insurance industry has ne)er looked back and today
stand as the one of the most competiti)e and e!ploring industry in India" The entry of the
pri)ate players and the increased use of the ne distribution are in the limelight today"
The use of ne distribution techni7ues and the IT tools has increased the scope of the
industry in the longer run"
The business of life insurance in India in its e!isting form started in India in the year
1+1+ ith the establishment of the 2riental Life Insurance -ompany in -alcutta" Some of
the important milestones in the life insurance business in India are gi)en in the table 1"
?
T!b3e &: mi3esto"e?s i" t4e 3i8e i"sur!"0e busi"ess i" I"di!
$e!r Mi3esto"es i" t4e 3i8e i"sur!"0e busi"ess i" I"di!

1;1/ The Indian Life &ssurance -ompanies &ct enacted as the first statute to
regulate the life insurance business
1;/+ The Indian Insurance -ompanies &ct enacted to enable the go)ernment to
collect statistical information about both life and non:life insurance
businesses
1;4+ <arlier legislation consolidated and amended to by the Insurance &ct ith
the ob'ecti)e of protecting the interests of the insuring public"
1;6= /56 Indian and foreign insurers and pro)ident societies taken o)er by the
central go)ernment and nationalised" LI- formed by an &ct of Parliament%
)i$" LI- &ct% 1;6=% ith a capital contribution of Rs" 6 crore from the
3o)ernment of India"
The 3eneral insurance business in India% on the other hand% can trace its roots to the
Triton Insurance -ompany Ltd"% the first general insurance company established in the
year 1+6B in -alcutta by the (ritish" Some of the important milestones in the general
insurance business in India are gi)en in the table /"
T!b3e ': mi3esto"e?s i" t4e %e"er!3 i"sur!"0e busi"ess i" I"di!
$e!r Mi3esto"es i" t4e %e"er!3 i"sur!"0e busi"ess i" I"di!

1;B? The Indian Mercantile Insurance Ltd" set up% the first company to transact
all classes of general insurance business
1;6? 3eneral Insurance -ouncil% a ing of the Insurance &ssociation of India%
frames a code of conduct for ensuring fair conduct and sound business
practices
1;=+ The Insurance &ct amended to regulate in)estments and set minimum
sol)ency margins and the Tariff &d)isory -ommittee set up"
1;?/ The 3eneral Insurance (usiness (>ationali$ation) &ct% 1;?/ nationali$ed
the general insurance business in India ith effect from 1st 1anuary 1;?4"
1B? insurers amalgamated and grouped into four companies9 )i$" the
>ational Insurance -ompany Ltd"% the >e India &ssurance -ompany Ltd"%
the 2riental Insurance -ompany Ltd" and the 0nited India Insurance
-ompany Ltd" 3I- incorporated as a company"
I"sur!"0e i" I"di!
+
Insurance in India is the market for insurance in India hich co)ers both the state and
pri)ate sector organi$ations" It is listed in the -onstitution of India on the 0nion list in
the Se)enth Schedule meaning it can only be legislated by the central go)ernment"
The insurance sector has gone through a number of phases by alloing pri)ate companies
to solicit insurance and also alloing foreign direct in)estment of up to /=C (as of /B14
there ha)e been proposals to e!tend the E@I up to 5;C to strengthen the Insurance
Market e)en further)" #oe)er% the largest life:insurance company in India% Life
Insurance -orporation of India is still oned by the go)ernment"
/istory
In India% insurance has a deep:rooted history" Insurance in )arious forms has been
mentioned in the ritings of Manu (Manusmrithi)% .agna)alkya (@harmashastra) and
,autilya (&rthashastra)" The fundamental basis of the historical reference to insurance in
these ancient Indian te!ts is the same i"e" pooling of resources that could be re:distributed
in times of calamities such as fire% floods% epidemics and famine" The early references to
Insurance in these te!ts ha)e reference to marine trade loans and carriersF contracts"
Insurance in its current form has its history dating back until 1+1+% hen Oriental Life
Insurance Company

as started by &nita (ha)sar in ,olkata to cater to the needs of
<uropean community" The pre:independence era in India sa discrimination beteen the
li)es of foreigners (<nglish) and Indians ith higher premiums being charged for the
latter" In 1+?B% Bombay Mutual Life Assurance Society became the first Indian insurer"
&t the dan of the tentieth century% many insurance companies ere founded" In the
year 1;1/% the Life Insurance -ompanies &ct and the Pro)ident Eund &ct ere passed to
regulate the insurance business" The Life Insurance -ompanies &ct% 1;1/ made it
necessary that the premium:rate tables and periodical )aluations of companies should be
certified by an actuary" #oe)er% the disparity still e!isted as discrimination beteen
Indian and foreign companies" The oldest e!isting insurance company in India is the
>ational Insurance -ompany% hich as founded in 1;B=% and is still in business"
The 3o)ernment of India issued an 2rdinance on 1; 1anuary 1;6= nationali$ing the Life
Insurance sector and Life Insurance -orporation came into e!istence in the same year"
The Life Insurance -orporation (LI-) absorbed 165 Indian% 1= non:Indian insurers as
also ?6 pro)ident societiesG/56 Indian and foreign insurers in all" In 1;?/ ith the
3eneral Insurance (usiness (>ationali$ation) &ct as passed by the Indian Parliament%
and conse7uently% 3eneral Insurance business as nationali$ed ith effect from 1
1anuary 1;?4" 1B? insurers ere amalgamated and grouped into four companies% namely
>ational Insurance -ompany Ltd"% the >e India &ssurance -ompany Ltd"% the 2riental
Insurance -ompany Ltd and the 0nited India Insurance -ompany Ltd" The 3eneral
Insurance -orporation of India as incorporated as a company in 1;?1 and it commence
business on 1anuary 1% 1;?4"
;
The LI- had monopoly till the late ;Bs hen the Insurance sector as reopened to the
pri)ate sector" (efore that% the industry consisted of only to state insurersH Life Insurers
(Life Insurance -orporation of India% LI-) and 3eneral Insurers (3eneral Insurance
-orporation of India% 3I-)" 3I- had four subsidiary companies" Aith effect from
@ecember /BBB% these subsidiaries ha)e been de:linked from the parent company and
ere set up as independent insurance companiesH 2riental Insurance -ompany Limited%
>e India &ssurance -ompany Limited% >ational Insurance -ompany Limited and
0nited India Insurance -ompany Limited"
Le%!3 stru0ture
The insurance sector ent through a full circle of phases from being unregulated to
completely regulated and then currently being partly deregulated" It is go)erned by a
number of acts"
The Insurance &ct of 1;4+ as the first legislation go)erning all forms of insurance to
pro)ide strict state control o)er insurance business" Life insurance in India as
completely nationali$ed on 1anuary 1;% 1;6=% through the Life Insurance -orporation
&ct" &ll /56 insurance companies operating then in the country ere merged into one
entity% the Life Insurance -orporation of India"
The 3eneral Insurance (usiness &ct of 1;?/ as enacted to nationali$e the about 1BB
general insurance companies then and subse7uently merging them into four companies"
&ll the companies ere amalgamated into >ational Insurance% >e India &ssurance%
2riental Insurance and 0nited India Insurance% hich ere head7uartered in each of the
four metropolitan cities" 0ntil 1;;;% there ere no pri)ate insurance companies in India"
The go)ernment then introduced the Insurance Regulatory and @e)elopment &uthority
&ct in 1;;;% thereby de:regulating the insurance sector and alloing pri)ate companies"
Eurthermore% foreign in)estment as also alloed and capped at /=C holding in the
Indian insurance companies"
In /BB=% the &ctuaries &ct as passed by parliament to gi)e the profession statutory
status on par ith -hartered &ccountants% >otaries% -ost * Aorks &ccountants%
&d)ocates% &rchitects and -ompany Secretaries" & minimum capital of 0SI+B million
(Rs"5BB -rore) is re7uired by legislation to set up an insurance business"
Aut4orities
The primary regulator for insurance in India is the Insurance Regulatory and
@e)elopment &uthority (IR@&) hich as established in 1;;; under the go)ernment
legislation called the Insurance Regulatory and Development Authority Act !""""
The industry recognises e!aminations conducted by I&I (for actuaries)% III (for agents%
brokers and third:party administrators) and IIISL& (for sur)eyors and loss assessors)"
T&- is the sole data repository for the non:life industry" I(&I gi)es )oice for brokers
1B
hile 3I -ouncil and LI -ouncil are platforms for insurers" &I3I<&% &II<&% &II<E%
&ILI-<E% &ILI<&% ELI-2&% 3I<&I&% 3I<0 and >EIEAI cater to the employees of the
insurers" In addition% there are a do$en 2mbudsman offices to address client grie)ances"
Ob:e0ti;e
11
1" The present study is carried out to compare the preference of 0LIP and Mutual
Eunds"
/" This study is carried out to kno the beha)ior of in)estors"
4" To kno the important aspects affecting the interest of in)estors"
</AT IS ULIP@
1/
0LIP stands for U"it Li"1ed I"sur!"0e P3!"s" &s e kno that insurance is for
protecting our life from the any uncertain e)ents like death or accident" The purpose of
the normal insurance plan is 'ust protecting the life but not ensuring any sa)ings for the
future" The e!ample for the pure insurance plans are term i"sur!"0e" Many people
anted plan hich gi)es protection also gi)es the returns for their in)estment" So%
insurance companies come up ith the ULIP plan here the premium amount is in)ested
in the stock market and returns better income on the maturity period"
& 0LIP is a unit linked insurance plan" This is the type of in)estment here the
characteristics of insurance and mutual fund are combined" Some part of the money
in)ested goes into the insurance co)er and the remaining goes into an asset class"
0LIP is life insurance solution that pro)ides for the benefits of
protection and fle!ibility in in)estment"
Ae further can say it is a type of insurance )ehicle in hich the policyholder
purchases units at their net asset )alues and also makes contributions toard another
in)estment )ehicle" 0nit linked insurance plans allo for the co)erage of an
insurance policy% and pro)ide the option to in)est in any number of 7ualified
in)estments% such as stock% bonds or mutual funds"
&ccording to the In)estopedia a unit linked insurance plan acts 'ust like a sa)ings
)ehicle% but also has the benefits of an insurance contract" Ahen an in)estor purchases
units in a 0LIP% he or she is purchasing units along ith a larger number of in)estors%
'ust like an in)estor ould purchase units in a mutual fund"
14
T$PES OF ULIPs
2ne of the big ad)antages that a ULIP offers is that hate)er be your specific financial
ob'ecti)e% chances are that there is a ULIP hich is 'ust right for you" The figure belo
gi)es a general guide to the different goals that people ha)e at )arious age:groups and
thus% )arious life:stages"
<OR#IN- OF ULIPs
15
Ahen you decide the amount of premium to be paid and the amount of life co)er you
ant from the ULIP% the insurer deducts some portion of the ULIP premium upfront"
This portion is knon as the Premium &llocation charge% and )aries from product to
product" The rest of the premium is in)ested in the fund or mi!ture of funds chosen by
you" Mortality charges and ULIP administration charges are thereafter deducted on a
periodic (mostly monthly) basis by cancellation of units% hereas the ULIP fund
management charges are ad'usted from >&J on a daily basis"

Since the fund of your choice has an underlying in)estment K either in e7uity or debt or a
combination of the to K your fund )alue ill reflect the performance of the underlying
asset classes" &t the time of maturity of your plan% you are entitled to recei)e the fund
)alue as at the time of maturity" The pie:chart belo illustrates the split of your ULIP
premium
ADAANTA-ES B DISADAATA-ES OF ULIPs
16
Advantages Disadvantages
Flexibility -- you can choose your term,
insurance cover, pay premiums for a limited
period
Flexibility -- this can act a disadvantage since the
person may use the withdrawal and may not end
up building a huge corpus
Transparency -- you know what is the
amount you are paying for the various
benefits
Initially heavy costs -- You pay around 1-!"# for
the first year and then around #for the next two
years
Tax free returns -- 1""# tax free since they
are received from insurance and it is a
contract
$o control on costs
%witch between various options &ne may try to time the market and may make
errors
Tax benefits when investing under %ec '"(
Be"e8its
&De!t4 Be"e8it:
1=
In the unfortunate e)ent of death% the higher of the Sum &ssured or
the Eund Jalue ould be payable"
If death of the Person Insured occurs before age ?% the Eund Jalue plus
the regular premium recei)ed by us in the first policy year is payable"
' M!turity Be"e8it:
2n maturity% you ill recei)e the Eund Jalue including the 3uaranteed
Loyalty &ddition or you can opt for the settlement options"
+ Loy!3ty Additio"s
.ou get the guarantee of enhancing your ealth creation through
guaranteed loyalty additions (up to 1/BC of the first year annual
premium) at the end of the 1Bth * 16th year plus 3uaranteed &dditions
as a C of the Eund Jalue"
&t the end of the 1Bth yearH 6BC of the first year annuali$ed premium
Met Ad;!"t!%e P3us
1?
MetLife offers FMet &d)antage PlusF : a 0nit:Linked Pension Plan that allos to
effecti)ely and efficiently accumulating retirement needs" &s the name suggests% it
comes ith many ad)antages" 2ne can choose from eight annuity options% to life
co)er options and get ta! benefits under Section +B - and 1B (1B &)" 2ne can buy the
plan ithout any hassles and in)est more as you approach retirement by using the top:
up functionality" &ll in all% it is a plan hich orks harder hen one stop orking" Eor
one% it ensures that you lead a comfortable lifestyle post retirement"
<ntry &ge (in completed years ) Min:/B years% Ma!: 66 years
Minimum Term 1B years
Minimum Jesting &ge 56 years
Ma!imum Jesting &ge =6 years
Minimum Premium Single pay Rs"1BB%BBB
Be"e8its
& De!t4 Be"e8it
In case of death during the accumulation period% the death benefit
payable isH
U"der O9tio" AH & guaranteed amount of 11BC of the Eund Jalue is payable to the
nominee"
U"der O9tio" BH 1BBC of the Eund Jalue is payable to the nominee"
' Aesti"% Be"e8it
2n the )esting date% i"e" at the end of the accumulation term% you can take one:third
of your retirement kitty as a ta!:free lump sum and utili$e the balance to buy
annuities" 2r you can use the entire retirement kitty to buy annuities"
MUTUAL FUNDS:
1+
& mutu!3 8u"d is a professionally managed type of collecti)e in)estment scheme that
pools money from many in)estors and in)ests typically in in)estment securities (stocks%
bonds% short:term money market instruments% other mutual funds% other securities% andLor
commodities such as precious metals)" The mutual fund ill ha)e a fund manager that
trades (buys and sells) the fundFs in)estments in accordance ith the fundFs in)estment
ob'ecti)e" In the 0"S"% a fund registered ith the Securities and <!change -ommission
(S<-) under both S<- and Internal Re)enue Ser)ice (IRS) rules must distribute nearly
all of its net income and net reali$ed gains from the sale of securities (if any) to its
in)estors at least annually" Most funds are o)erseen by a board of directors or trustees (if
the 0"S" fund is organi$ed as a trust as they commonly are) hich is charged ith
ensuring the fund is managed appropriately by its in)estment ad)iser and other ser)ice
organi$ations and )endors% all in the best interests of the fundFs in)estors"
A BRIEF ON /O< MUTUAL FUND <OR#S@
& mutu!3 8u"d is a professionally managed type of collecti)e in)estment scheme that
pools money from many in)estors and in)ests typically in in)estment securities (stocks%
bonds% short:term money market instruments% other mutual funds% other securities% andLor
commodities such as precious metals)"
M1N
The mutual fund ill ha)e a fund manager that
trades (buys and sells) the fundFs in)estments in accordance ith the fundFs in)estment
ob'ecti)e" In the 0"S"% a fund registered ith the Securities and <!change -ommission
(S<-) under both S<- and Internal Re)enue Ser)ice (IRS) rules must distribute nearly
all of its net income and net reali$ed gains from the sale of securities (if any) to its
in)estors at least annually" Most funds are o)erseen by a board of directors or trustees (if
the 0"S" fund is organi$ed as a trust as they commonly are) hich is charged ith
ensuring the fund is managed appropriately by its in)estment ad)iser and other ser)ice
organi$ations and )endors% all in the best interests of the fundFs in)estors"
C/ARACTERISTICS OF MUTUAL FUNDS
1;
The onership is in the hands of the in)estors ho ha)e pooled in their funds"

O It is managed by a team of in)estment professionals and other ser)ice pro)iders"
O The pool of funds is in)ested in a portfolio of marketable in)estments"
O The in)estors share is denominated by 8units9 hose )alue is called as
>et &sset Jalue (>&J) hich changes e)eryday"
O The in)estment portfolio is created according to the stated in)estment
ob'ecti)es of the fund" The onership is in the hands of the in)estors ho
ha)e pooled in their funds"
O It is managed by a team of in)estment professionals and other ser)ice
pro)iders"
O The pool of funds is in)ested in a portfolio of marketable in)estments"

O The in)estors share is denominated by 8units9 hose )alue is called as
>et &sset Jalue (>&J) hich changes e)eryday"
O The in)estment portfolio is created according to the stated in)estment
ob'ecti)es of the fund
STRUCTURE OF MUTUAL FUND
/B
There are many entities in)ol)ed and the diagram belo illustrates the structure of
mutual fundsH :
S9o"sor
The sponsor should contribute at least 5BC to the net orth of the &M-" #oe)er% if
any person holds 5BC or more of the net orth of an &M- shall be deemed to be a
sponsor and ill be re7uired to fulfill the eligibility criteria in the Mutual Eund
Regulations" The sponsor or any of its directors or the principal officer employed by the
mutual fund should not be guilty of fraud or guilty of any economic offenc
/1
Trustees
The mutual fund is re7uired to ha)e an independent (oard of Trustees% i"e" to third
of the trustees should be independent persons ho are not associated ith the sponsors in
any manner" &n &M- or any of its officers or employees are not eligible to act as a
trustee of any mutual fund" The trustees are responsible for : inter alia K ensuring that the
&M- has all its systems in place% all key personnel% auditors% registrar etc" ha)e been
appointed prior to the launch of any scheme"
Asset M!"!%eme"t Com9!"y
The sponsors or the trustees are re7uired to appoint an &M- to manage the assets of
the mutual fund" 0nder the mutual fund regulations% the applicant must satisfy certain
eligibility criteria in order to 7ualify to register ith S<(I as an &M-"
1" The sponsor must ha)e at least 5BC stake in the &M-"
/" The chairman of the &M- is not a trustee of any mutual fund"
4" The &M- should ha)e and must at all times maintain a minimum net
orth of -r" 1BB million"
5" The director of the &M- should be a person ha)ing ade7uate
professional e!perience"
6" The board of directors of such &M- has at least 6BC directors ho are
not associate of or associated in any manner ith the sponsor or any
of its subsidiaries or the trustees"
//
T4e Tr!"s8er A%e"ts
The transfer agent is contracted by the &M- and is responsible for
maintaining the register of in)estors L unit holders and e)ery day settlements of
purchases and redemption of units" The role of a transfer agent is to collect data
from distributors relating to daily purchases and redemption of units"
Custodi!"
The mutual fund is re7uired% under the Mutual Eund Regulations% to appoint a
custodian to carry out the custodial ser)ices for the schemes of the fund" 2nly institutions
ith substantial organi$ational strength% ser)ice capability in terms of computeri$ation
and other infrastructure facilities are appro)ed to act as custodians" The custodian must
be totally delinked from the &M- and must be registered ith S<(I"
U"it /o3ders
They are the parties to hom the mutual fund is sold" They are ultimate
beneficiary of the income earned by the mutual funds"
/4
T$PES OF MUTUAL FUNDS
O9e" C E"ded Fu"ds
&n open K ended fund is one that is a)ailable for subscription all through the year" These
do not ha)e a fi!ed maturity" In)estors can con)eniently buy and sell units at >et &sset
Jalue (>&J) related prices" The key feature of open K ended schemes is li7uidity"
C3ose C E"ded Fu"ds
& close K ended fund has a stipulated maturity period hich generally
ranging from 4 to 16 years" The fund is open for subscription only during a
specified period" In)estors can in)est in the scheme at the same time of the
initial public issue and thereafter they can buy and sell the units of the
scheme on the stock e!changes here they are listed" In order to pro)ide an
e!it route to the in)estors% some close K ended funds gi)e an option of selling back the
units to the mutual fund through periodic repurchase at >&J related prices" "

I"ter;!3 Fu"ds
Inter)al funds combine the features of open K ended and close K ended
schemes" They are open for sales or redemption during pre:determined inter)als
at their >&J"
/5
L!r%e 0!9 8u"ds
Large cap funds are those mutual funds% hich seek capital appreciation by in)esting
primarily in stocks of large blue chip companies
Mid-0!9 8u"ds
Mid cap funds are those mutual funds% hich in)est in small L medium si$ed companies"
&s there is no standard definition classifying companies
EDuity 8u"ds
<7uity mutual funds are also knon as stock mutual funds" <7uity mutual funds in)est
pooled amounts of money in the stocks of public companies"
B!3!"0ed 8u"ds
(alanced fund is also knon as hybrid fund" It is a type of mutual fund that buys a
combination of common stock% preferred stock% bonds% and short:term bonds
-ro2t4 8u"ds
3roth funds are those mutual funds that aim to achie)e capital appreciation by in)esting
in groth stocks"
No 3o!d 8u"ds
Mutual funds can be classified into to types : Load mutual funds and >o:Load mutual
funds"
/6
EE04!"%e tr!ded 8u"ds
<!change Traded Eunds (<TEs) represent a basket of securities that is traded on an
e!change% similar to a stock" #ence% unlike con)entional mutual funds
A!3ue 8u"ds
Jalue funds are those mutual funds that tend to focus on safety rather than groth% and
often choose in)estments pro)iding di)idends as ell as capital appreciation"
Mo"ey m!r1et 8u"ds
& money market fund is a mutual fund that in)ests solely in money market instruments"
Money market instruments are forms of debt that mature in less than one year and are
)ery li7uid"
I"ter"!tio"!3 mutu!3 8u"ds
International mutual funds are those funds that in)est in non:domestic securities markets
throughout the orld"
Re%io"!3 mutu!3 8u"ds
Regional mutual fund is a mutual fund that confines itself to in)estments in securities
from a specified geographical area% usually% the fundFs local region"
Se0tor 8u"ds
Sector mutual funds are those mutual funds that restrict their in)estments to a particular
segment or sector of the economy"
/=
I"deE 8u"ds
&n inde! fund is a a mutual fund or e!change:traded fund) that aims to replicate the
mo)ements of an inde! of a specific financial market"
Fu"d o8 8u"ds
& fund of funds (EoE) is an in)estment fund that holds a portfolio of other in)estment
funds rather than in)esting directly in shares% bonds or other securities"
/?
ADAANTA-ES OF MUTUAL FUNDS
The ad)antages of mutual funds are gi)en beloH :
Port8o3io Di;ersi8i0!tio"
Mutual funds in)est in a number of companies" This di)ersification reduces the risk
because it happens )ery rarely that all the stocks decline at the same time and in the same
proportion" So this is the main ad)antage of mutual funds"
Pro8essio"!3 M!"!%eme"t
Mutual funds pro)ide the ser)ices of e!perienced and skilled professionals% assisted
by in)estment research team that analysis the performance and prospects of companies
and select the suitable in)estments to achie)e the ob'ecti)es of the scheme"
Lo2 Costs
Mutual funds are a relati)ely less e!pensi)e ay to in)est as compare to
directly in)esting in a capital markets because of less amount of brokerage
and other fees"
LiDuidity
This is the main ad)antage of mutual fund% that is hene)er an in)estor needs money
he can easily get redemption% hich is not possible in most of other options of
in)estment" In open:ended schemes of mutual fund% the in)estor gets the money back at
net asset )alue and on the other hand in close:ended schemes the units can be sold in a
stock e!change at a pre)ailing market price"
/+
Tr!"s9!re"0y
In mutual fund% in)estors get full information of the )alue of their
in)estment% the proportion of money in)ested in each class of assets and the
fund manager9s in)estment strategy
F3eEibi3ity
Ele!ibility is also the main ad)antage of mutual fund" Through this
in)estors can systematically in)est or ithdra funds according to their needs
and con)enience like regular in)estment plans% regular ithdraal plans%
di)idend rein)estment plans etc"
Co";e"ie"t Admi"istr!tio"
In)esting in a mutual fund reduces paperork and helps in)estors to
a)oid many problems like bad deli)eries% delayed payments and follo up
ith brokers and companies" Mutual funds sa)e time and make in)esting
easy"
A88ord!bi3ity
In)estors indi)idually may lack sufficient funds to in)est in high:grade
stocks" & mutual fund because of its large corpus allos e)en a small
in)estor to take the benefit of its in)estment strategy"
<e33 Re%u3!ted
&ll mutual funds are registered ith S<(I and they function ith in the pro)isions of
strict regulations designed to protect the interest of in)estors" The operations of mutual
funds are regularly monitored by S<(I"
/;
DISADAANTA-ES OF MUTUAL FUNDS
No -u!r!"tees
>o in)estment is risk free" If the entire stock market declines in )alue% the )alue of
mutual fund shares ill go don as ell% no matter ho balanced the portfolio" In)estors
encounter feer risks hen they in)est in mutual funds than hen they buy and sell
stocks on their on" #oe)er% anyone ho in)ests through mutual fund runs the risk of
losing the money"
Fees !"d Commissio"s
&ll funds charge administrati)e fees to co)er their day to day e!penses" Some funds
also charge sales commissions or loads to compensate brokers% financial consultants% or
financial planners" <)en if you don9t use a broker or other financial ad)isor% you ill pay
a sales commission if you buy shares in a Load Eund"
T!Ees
@uring a typical year% most acti)ely managed mutual funds sell anyhere from /B to
?B percent of the securities in their portfolios" If your fund makes a profit on its sales% you
ill pay ta!es on the income you recei)e% e)en you rein)est the money you made
M!"!%eme"t Ris1
Ahen you in)est in mutual fund% you depend on fund manager to make the right
decisions regarding the fund9s portfolio" If the manager does not perform as ell as you
had hoped% you might not make as much money on your in)estment as you e!pected" 2f
course% if you in)est in inde! funds% you forego management risk because these funds do
not employ managers"
4B
COMPARISON
BET<EEN ULIPS
AND MUTUAL
FUNDS:
41
0nit Linked Insurance Policies(0LIPs) as an in)estment a)enue are closest to mutual
funds in terms of their structure and functioning" &s is the case ith mutual funds%
in)estors in 0LIPs are allotted units by the insurance company and a net asset
)alue(>&J) is declared for the same on a daily basis"
Similar 0LIP in)estors ha)e the option of in)esting across )arious schemes similar to the
ones found in the mutual funds domain% i"e" di)ersified e7uity funds% balanced funds and
dept funds to name a fe" 3enerally speaking% 0LIPs can be termed as mutual fund
schemes ith an insurance component"
#oe)er it should not be constructed that barring the insurance element there is nothing
differentiating mutual funds from 0LIPs
Points of difference beteen the toH
& Mode o8 i";estme"tsFi";estme"t !mou"ts
Mutual funds in)estors ha)e the option of either making lump sum in)estments or
in)esting using the systematic in)estment plan(SIP) route hich entails commitments
o)er longer time hori$ons" The minimum in)estment amounts are laid out by the fund
house"
0LIP in)estors also ha)e the choice of in)esting in a lump sum(single premium) or using
the con)entional route% i"e" making premium payments on an annual% half:yearly %
7uarterly or monthly basis" In 0LIPs% determining the premium paid is often the starting
point for the in)estment acti)ity"
4/
' EE9e"ses
In mutual fund in)estments% e!penses charged for )arious acti)ities like fund
management% sales and marketing% administration among others are sub'ect to pre:
determined upper limits as prescribed by the Securities and <!change (oard of India"
Eor e!ample e7uity:oriented funds can charge their in)estors a ma!imum or /"6C per
annum on a recurring basis for all their e!pensesP any e!pense abo)e the prescribed limit
is borne by the fund house and not the in)estors"
Similarly funds also charge their in)estors entry and e!it loads(in most cases% either is
applicable)" <ntry loads are charges at the timing of making an in)estment hile the e!it
load is charged at the time of scale"
<!penses can ha)e far:reaching conse7uences on in)estors since higher e!penses
translate into loer amounts being in)ested and a smaller corpus being accumulated"
0LIP: related e!penses ha)e been dealt ith in detail in the article D0nderstanding 0LIP
e!pensesQ
+ Port8o3io dis03osure
Mutual fund houses are re7uired to statutorily declare their portfolios on a 7uarterly basis%
albeit most fund houses do so on a monthly basis" In)estors get the opportunity to see
here their monies are being in)ested and ho they ha)e been managed by studying the
portfolio"
There is lack of consensus on hether 0LIPs are re7uired to disclose their portfoloios"
@uring our interactions ith leading insurers e came across di)ergent )ies on this
issue"
44
Ahile one school of though belie)es that disclosing portfolios on a 7uarterly basis is
mandatory% the other belie)es that their is no legal obligation to do so and that insurers
are re7uired to disclose their portfolios only on demand"
Some insurance companies do declare their portfolios on a monthlyL 7uarterly basis"
#oe)er the lack of transparency in 0LIP in)estments ould be a cause for concern
considering that the amount in)ested in insurance policies is essentially meant to pro)ide
for contingencies and for long:term needs like retirementP regular portfolio disclosures on
the other hand can enable in)estors to make timely in)estment decisions"
) F3eEibi3ity i" !3teri"% t4e !sset !33o0!tio"
&s as stated earlier% offerings in both the mutual funds segment and 0LIPs segment are
largely comparable" Eor e!ample plans that in)est their entire corpus in e7uities
(di)ersified e7uity funds)% a =BH5B allotment in e7uity and debt instruments (balanced
funds) and those in)esting only in debt instruments (debt funds) can be found in both
0LIPs and mutual funds"
If a mutual fund in)estor in a di)ersified e7uity fund ishes to shift his corpus into a debt
from the same fund house% he could ha)e to bear an e!it loan andL or entry load"
2n the other hand most insurance companies permit their 0LIP in)entors to shift
in)estments across )arious plansLasset classes either at a nominal or no cost(usually% a
couple of sitches are alloed free of charge e)ery year and a cost has to be borne for
additional sitches)"
<ffecti)ely the 0LIP in)estor is gi)en the option to in)est across asset classes as per his
con)enience in a cost:effecti)e manner"
45
5 T!E be"e8its
0LIP in)estments 7ualify for deductions under Section +B- of the Income Ta! &ct" This
holds good% irrespecti)e of the nature of the plan chosen by the in)estor" 2n the other
hand in the mutual funds domain% only in)estments in ta!:sa)ing funds (also referred to
as e7uity:linked sa)ings schemes) are eligible for Section +B- benefits"
Maturity proceeds from 0LIPs are ta! free" In case of e7uity:oriented funds ( for e!ample
di)ersified e7uity funds% balanced funds)% if the in)estments are held for a period o)er 1/
months% the gains are ta! freeH con)ersely in)estments sold ithin a 1/ months period
attract short:term capital gains ta! R 1BC
Similarly% debt:oriented funds attract a long:term capital gains ta! R 1BC hile a short:
term capital gain is ta!ed at the in)estor9s marginal ta! rate"
@espite the seemingly similar structures e)idently both mutual funds and 0LIPs ha)e
their uni7ue set of ad)antage to offer" &s alays% it is )ital for in)estors to be aare of the
nuances in both offerings and make informed decisions"
46
T4e di88ere"0e 0!" be 2e33 u"derstood !3so by t4e 8o33o2i"% 2!y:-
U3i9s ;s Mutu!3
0LIP M0T0&L E0>@S
I>J<STM<>T &M20>T @etermine by the in)estor and
can be modified as ell
Minimum in)estment amount
is determined by the fund
house"
<SP<>S<S >o upper limits% e!penses
detemined by the insurance
company
0pper limits for e!penses
chargeable to in)estors ha)e
been set by the regulator"
P2RTE2LI2 @IS-L20S<R >ot mandatory Tuarterly disclosures are
mandatory
Modifying &sset allocation 3enerally permitted for free <ntryL<!it loads ha)e to be
borne by the in)estor"
Ta! benefits Section +Bc benefits are
a)ailable on all 0lip
in)estments
Section +Bc benefits are
a)ailable only on in)estment
in ta!:sa)ing funds"
4=
<4y to i";est i" u3i9@
The introduction of unit:linked insurance plans (0LIPs) has been% one of the most
significant inno)ations in the field of life insurance o)er the past se)eral decades" Aith
the help of one product category it has addressed and o)ercome se)eral concerns that
customers had about life insurance:Ube it li7uidity% fle!ibility or transparency"
Prior to the introduction of 0LIPs% different goals of an indi)idual ere addressed ith
separate products" #oe)er% 0LIPs are one stop solution for an indi)idual9 financial
goals that are designed to enable consumers plan and fulfill all their long term financial
goals% be it child education or marriage% ealth creation or e)en creating a retirement
kitty" 0LIPs are structured such that the protection (insurance) element and the sa)ings
element can be distinguished and hence managed according to one9s specific needs%
offering unprecedented fle!ibility and transparency"
<4y i";est i" ULIPs
Traditionally% the policyholder had no control o)er asset allocation% so it did not%
necessarily% match the consumer9s lifestyle" Eurther% often% people onder hether it is
better to purchase separate financial products for their protection and sa)ings needs" This
may be a )iable option for those ho ha)e the time and skill to manage se)eral products
separately" #oe)er% for those ho ant a con)enient% economical% one:stop solution%
0LIPs are the best bet"
0LIPs by design encourage long: term systematic and disciplined sa)ings toards
specific financial goals like: retirement% child9s education or marriage% ealth creation
along ith pro)iding them protection" To understand ho a 0LIP meets the multiple
needs of protection of both health and lifeP and sa)ings in the same policy % let us take the
e!ample of a 46 year:old man ith to young children"
4?
Aith a premium of Rs"4B%BBB per annum% he could being ith a assured of Rs 6 lacs " The
balance could be in)ested in fund of his choice% possible a balanced or groth option" &s
the children gro% he might ant to increase the le)el of protection% hich could be done
by li7uidating some of the units to pay for a risk premium" 2n the other hand% if he gets
significant raise% he could increase the sa)ings element in the policy by topping it up"
&s sound in)estment instrument% 0LIPs take both risk and return potential into account"
(y in)esting across se)eral asset classes it adds di)ersification to help manage risk" The
underlying principle of asset allocation% therefore% lies on the fact that hen an in)estor
di)ersifies across asset classes% he gi)es himself the margin or fle!ibility to counter
market uncertainties
#ey 8e!tures o8 ULIPs:
-ombination of in)estmentV insurance"
Long:term% systematic and goal:based in)estment"
&utomatic asset allocationL@i)ersification in se)eral asset classes"
Ele!ibility and transparency"
Sitching funds at no e!tra cost"
Ta! benefits under Section +B - of the Income Ta! &ct"
4+
/o2 ULIPs 0!" m!1e you RIC/GHHHHH
0LIP can be a )ery good instrument to in)est in% if you are illing to stick to it for a long
period of time:/B years" If you ha)e a short span of time at your disposal% it is better to
in)est in Mutual Eunds and buy term of your insurance co)erage"
The main difference beteen 0LIP and Mutual Eunds is )ariation in e!penses:
administrati)e charges% money course% fund management fees" Ae are going to compare
0LIP and Mutual Eund to suggest that% o)er a large e!penses ork out to be loer that
that of an e7uity Mutual Eund"
Since insurance companies charge high selling e!penses in the fist year9s premium% short:
term in)estors one ere to analy$e the benefits of 0LIPs o)er Mutual Eunds% all else
being e7ual% there may be reason to in)est because of loer e!pense ratio" The Eund
management charge(EM-) of insurance companies is 1"6C of mutual funds it is around
/"6C Therefore% in the longer term% hen the funds of indi)idual in)estors become large%
the difference of 1C matters a lot" It counterbalances the higher charges taken by insurer
in the earlier period of the fund" Erom the belo gi)en illustration you can clearly
understand the performance of Mutual Eund"
4;
RESEARCH
METHODOLOGY
5B
This chapter deals ith the research methodology adopted by the researcher" The
researcher has conducted the study using both the primary * secondary data"
The researcher started the research ork ith the help of secondary data from )arious
books * maga$ines" Ahen the researcher collected a fair amount of idea about the type
of study that has been conducted * ho he should go ith it" Then he mo)ed on to the
primary sources of data collection"
The main source here ere the inter)ies scheduled comprising of structured * semi:
structured 7uestions" Ahen the inter)ie schedule as administered some unstructured
7uestions ere asked * noted don"
REARC/ DESI-N
@escripti)e Research @esign
S!m93e U"it
In)estors"
S!m93e SiIe
This study in)ol)es 1BB respondents"
S!m93i"% Te04"iDueH
The sample si$e has been taken by simple random sampling techni7ue"
D!t! Co33e0tio"H
@ata has been collected both from primary as ell as secondary sources as
described beloH
51
Prim!ry sour0es
Primary data as obtained through 7uestionnaires filled by people and through
direct communication ith respondents in the form of inter)ie"
Se0o"d!ry sour0es
The secondary sources of data ere taken from the )arious ebsites% books%
'ournals reports% articles etc" This mainly pro)ided information about the mutual
fund and ulip industry in India"
P3!" 8or d!t! !"!3ysis:
&nalysis of data is planned ith the help of simple percentage method"
5/
COMPARATIAE
ANAL$SIS OF
ULIP AND
MUTUAL FUNDS:
<4!t do i";estors
9re8er@
54
1" @o you sa)eW
>o" 2f Response Percentage
yes ?+ ?+C
>o // //C
total 1BB 1BBC
-onclusion H In today9s time ?+C people sa)e and //C people don9t sa)e"
55
' Ahat do you do ith your sa)ingsW
No o8 Res9o"de"ts Per0e"t!%e
%hopping 11 11#
Insurance 5B )(
Mutual Eunds /B '(
)old &' &'
2uting &6 &6
-onclusionH 11C people sa)e for buying ne things or you can say for shop" 5BC
people do sa)ings for insurance and /BC people sa)e to in)est in Mutual Eunds and 1/C
people sa)e to by 'eelry and 1?C people sa)e for en'oyment
+ -urrent in)estment portfolioW (rank 1:6)
56
-onclusionH 16 person rank 4 to Mutual Singh" <7uity Trading rank 6 by ; persons"
Ei!ed @eposits rank / by 4B persons" 1+ persons rank Post 2ffice Sa)ings 5 and
Insurance is ranked 1 by /+ persons"
5" 2b'ecti)e of your in)estmentW
5=
No O8 Res9o"ses R!"1
Mutual Eunds 16 4
<7uity Trading ; 6
Ei!ed @eposits 4B /
Post 2ffice Sa)ings 1+ 5
Insurance (0lip) /+ 1
>o" of Response Percentage
Ta! Sa)ing 4? 4?C
3ood returns /4 /4C
(etter future after retirement 1? 1?C
Aealth creation 1+ 1+C
&ny other 6 6C
Total 1BB 1BBC
-onclusionH : 4?C person people do in)estment for ta! sa)ing" /4C people do
in)estment for good returns" 1?C people in)est money for better future after retirement"
&nd 1+C people do in)estment for the purpose of ealth creation"
6" Time #ori$on in hich you ha)e to achie)e your financial goalW #o long do you
plan to in)est your moneyW
5?
>o" 2f Response
0nder / years /5
/:6 years 14
=:1B years /=
11:16 years 1+
2)er 16 years 1B
Total 1BB
-onclusionH: /5 C people achie)e financial goals ithin the time period of under /
years" 14C people sa)e money for /:6 years" =:1B persons sa)e for =:1B years" 1+C
people sa)e for the time period of 11:16 years" &nd o)er 16 years 1BC people do sa)ings"
=" #o fre7uently do you in)estW
>o" 2f Response Percentage
5+
2nce a year 14 14C
/:4 times a year 15 15C
More than 4 times a year 6? 6?C
>ot in)esting (no idea) 1B 1BC
>on interested = =C
Total 1BB 1BBC
-onclusionH: 14C people in)est once a year in in)estment products" 15C people /:4
times in a year in)est in different plans" (eside this 6?C people in)est more than 4 times
in a year and 1B C people don9t in)est" &nd =C people don9t ha)e interest in in)estment"
?" Most preferred form of in)estmentW
5;
No O8
Res9o"ses
Mutual Eunds 16
<7uity Trading ;
Ei!ed @eposits% Post
2ffice Sa)ings
4B
(ank Sa)ings 1+
Insurance (0lip) /+
-onclusionH 16C people prefer Mutual Eunds for in)estment" ;C for <7uity trading%
4BC for fi!ed deposits and post office sa)ings 1+C people like to in)est in bank schemes
and /+C people prefer Insurance products"
6B
+" @o you agree that Insurance products are susceptible to )ery lo risk hen compared
to the other options for in)estmentW
>o" 2f Response Percentage
$es 6( 6(J
No '( '(J
Do"?t 1"o2 &( &(J
Tot!3 &(( &((J
-onclusionH : ?BC people think there is lo risk in in)estment products and /BC
people think there not lo risk in in)esting in)estment products" &nd 1BC people
says they don9t kno"
I";estme"t Pro8i3e i" Mutu!3 Fu"ds
1" Type of scheme (rank from 1:5) 1: most preferred% 5: least preferred
61
-onclusionH /4C people rank 4 to @ebt Eunds" Rank / is gi)en to e7uity funds by e7uity
funds" (alanced funds are ranked 1 by 4BC persons" To <LSS 5 rank is gi)en by 1+C
people"
/" 2b'ecti)e of In)estment( Rank 1:4)
6/
No O8 Res9o"ses R!"1
@ebt Eunds /4 4
<7uity Eunds /; /
(alanced Eunds 4B 1
<LSS 1+ 5
-onclusionH 15C people rank &ppreciation 4" Ta! (enefits rank / by /1 persons" &nd
Li7uidity is ranked highest 1 by =6C people"
I";estme"t Pro8i3e i" ULIPs
64
>o" 2f Responses Rank
&ppreciation 15 4
Ta! (enefits /1 /
Li7uidity =6 1
1" #o long do you plan to stay in)ested in 0LIPW

>o" 2f Responses
4:6 yrs 14
6:?yrs 1?
?:1Byrs 55
1B:/Byrs /=
-onclusionH 14C people in)est in 0LIP for 4:6 years"1?C people in)est for 6:? years"
55 C people sa)e for ?:1B years" &nd /=C people do in)estment for 1B:/B years"
/" Ahy ha)e you in)ested in 0LIPW
65
-onclusionH In)estment in 0LIP is done for Insurance as ell as In)estment"
4" Ahat financial goals do you plan to achie)e through the money you ill get from ulipW
66
>o" 2f Responses
Insurance 6B
In)estment 6B
>o" 2f
Responses
Marriage /B
-hild <ducation%
Ta! Sa)ing
44
Retirement /?
&ny &nother 1;
-onclusion" /BC people do in)estment in 0LIP for money spend in Marriage" 44C
people do in)estment for their child education and ta! sa)ing purpose" /?C people do for
the pupose of retirement" &nd near about 1;C people do for some other purpose"
BIBLIO-RAP/$
6=
httpHLL"docstoc"comLdocsL15=6;46+Lcompariti)e:analysis:of:mutual:funds:and:ulips:
PR21<-T
httpHLL"scribd"comLdocL/+B=+1B5LStudy:of:0LIP:Plans
httpHLL"scribd"comLdocL/1B5/;B4Lcompariti)e:analysis:of:mutual:funds:and:ulips:
pro'ect:report
httpHLL"docstoc"comLdocsL+/4B4=4Linsurance:and:ulip
httpHLL"docstoc"comLdocsL15=6;46+Lcompariti)e:analysis:of:mutual:funds:and:ulips:
PR21<-T
httpHLL"scribd"comLdocL1?=6=61+L0LIPs-omparati)e:&nalysis
httpHLL"scribd"comLdocL14/+/=5=L&:Pro'ect:Report
httpHLL"rediff"comLmoneyL/BB6LoctL16perfin"htm
=uestio""!ire
6?
Tuestionnaire for -onsumer Perception in In)estment in 0LIP and
mutual Eund
>ameH
&geH
Marital StatusH
>o of @ependentsH
1" @o you sa)eW
.es >o
/" Ahat do you do ith your sa)ingsW
"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
4" -urrent Jalue of your in)estmentW
XXXXXX""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
""""""""""""
5" -urrent in)estment portfolioW (rank 1:6)
a) ME
b) <7uity Trading
c) Ei!ed @eposit%
d) Post 2ffice Sa)ings
e) Insurance (0LIP)
f) (ank sa)ings
5"2b'ecti)e of your in)estmentW
6+
"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
6" Time #ori$on in hich you ha)e to achie)e your financial goalW #o long do you plan
to in)est your moneyW
a) 0nder / yrs
b) /:6 yrs
c) =:1B yrs
d) 11:16 yrs
e) 2)er 16 yrs
?" Ahat factors ould you consider most important before choosing an in)estmentW
a" #o 7uickly i ill be able to increase my ealth"
b" The opportunity for steady groth"
c" The amount of monthly income the in)estment ill generate"
d" The safety of my in)estment principal"
+" Most preferred form of in)estmentW
a) 0LIP
b) ME
c) <7uity Trading
d) E"@% P"2
e) (ank sa)ings
;" &nd AhyW
X""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
X""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
I";estme"t Pro8i3e i" Mutu!3 Fu"ds
6;
1" >ame of Mutual EundH:
XXXXXXXXXXXXXXXXXXXXXXXXXX
/" &mount In)ested
XXXXXXXXXXXXXXXXXXXXXXXXXXXX
4" >ame of SchemeH:
""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
5" Type of scheme( rank from 1:5) 1: most preferred% 5: least preferred
a) @ebt Eund
b) <7uity Eund
c) (alanced Eund
d) <LSS
6" 2b'ecti)e of In)estment( Rank 1:4)
a) &ppreciation
b) Ta! (enefit
c) Li7uidity
=" @o you )ie folloing factorLsources of information important hile in)esting in MEW
<!tremely
Important
Important >eutral 0nimportant #igh
Important
SafetyH
Li7uidityH
Return earnedH
H Ta! sa)ings
Performance of
past schemes
Rating of 0LIP by
&genciesH
=B
&d)ertisementsH
Recommendations
of friends and
relati)es"
I";estme"t Pro8i3e i" ULIPs
1" #o long do you plan to stay in)ested in 0LIPW
a) 4:6 yrs
b) 6:? yrs
c) ?:1B yrs
d) 1B:/B yrs
/" Ahy ha)e you in)ested in 0LIPW
a) Insurance
b) In)estment
4" Ahat financial goals do you plan to achie)e through the money you ill get from ulipW
a) Marriage
b) -hild education Ta! sa)ings
c) Retirement
d) &ny other""""""""""""""""""""""""""""""""
5" @o you )ie folloing factorLsources of information important hile in)esting in
0LIPW
<!tremely
Important
Important >eutral 0nimportant #igh
Important
SafetyH
=1
Li7uidityH
Return earnedH
H Ta! sa)ings
Performance of
past schemes
Rating of 0LIP by
&genciesH
&d)ertisementsH
Recommendations
of friends and
relati)es"
=/