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Submitted to:
Submitted by:
Sandeep Kumar Dhuli
Reg no: 10900638
DEPARTMENT OF MANAGEMENT
LOVELY PROFFESIONAL UNIVERSITY
PHAGWARA
(2010)
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ACKNOWLEDGEMENT
I am extremely thankful to the officers and staff of Birla Sun Life Insurance
Company Ltd. for their Kind Cooperation and immense help, without their super
vision and valuable guidance my project would have never seen the light of the
day.
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PREFACE
Hence, it is quite necessary to put theories into tasks. And this is more important
when you are studying in any professional course like MBA. This is made possible with
the summer training at any organization under the guidance of any competent person.
This provides future managers with the exposure needed to groom their personality and
knowledge how organizations function.
I had been doing the same in Birla Sun Life Insurance Company Ltd. There I had
learned about the concept of “Portfolio Management and Equity participation.”
In insurance sector every company having different set off portfolio with different
equity participation plan for the investor with low to high risk investment. About Birla
Plan for investor are Enhancer, Creator, and Magnifier and Maxi miser funds plans,
later in project process I will be explaining about it.
Then I conclude the results that Investment is better option when investors are
available show much ‘Fund portfolio option with equity participation’ of company in
market is in-front of them. And it really beneficial for starter to understand it well and
invest money properly in the beginning to get read of market volatility
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GUIDE CERTIFICATE
Date: 21/08/10
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Declaration
I, Sandeep Kumar Dhuli, Roll No RS1902A04, Reg. No. 10900638, student of Lovely
Professional University (LSM), Phagwara hereby declare that the project report on ― “Portfolio
Management and Equity participation of Insurance Industry” at is an original and
authenticated work done by me.
I further declared that it has not been submitted elsewhere by any other person any of the
Institute for the award of any degree/diploma.
Signature
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TABLE CONTENT
Acknowledgement……………………………………………….. 2
Preface……………………………………………………………. 3
Company Certificate
Chapter – 1 Introduction to the topic 8 -16 page
Meaning of Portfolio Management
Need for Portfolio Management
Elements and Process of Portfolio Management
Equity & Equity Market outlook(BSLI) – meaning
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Bibliography
Annexure
INTRODUCTION OF
TOPIC
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PORTFOLIO MANAGEMENT:-
INTRODUCTION:-
Stock exchange operations are peculiar in nature and most of the Investors feel insecure
in managing their investment on the stock market because it is difficult for an individual to
identify companies which have growth prospects for investment. Further due to volatile nature
of the markets, it’s requires constant reshuffling of portfolios to capitalized on the growth
opportunities.
Even after identifying the growth oriented companies and their securities, the trading
practices are also complicated, making it a difficult task for investors to trade in all the exchange
and follow up on post trading formalities. That is why professional investment advice through
portfolio management service can help the investors to make an intelligent and informed choice
between alternative investments opportunities without the worry of losing their invested money.
Hence this is very much important to the stock dealers especially who are new to the market.
The rapid growth`` of capital markets in India has opened up new investment avenues for
investors.
The stock markets have become attractive investment options for the common man.
But the need is to be able to effectively and efficiently manage investments in order to keep
maximum returns with minimum risk.
The study focuses its attention on the functioning of stock markets and construction of the equity
portfolio.
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MEANING OF PORTFOLIO MANAGEMENT:-
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Securities and Exchange Board of India (Portfolio Managers)Rules, 1993 and their functioning
are guided by the SEBI.
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• Strategies are to be developed and implemented in tune with investment policy formulate
this will help the selection of asset classes and securities in each class depending upon
their risk attributes.
• Review and monitoring of the performance of the portfolio by continuous overview of
the market conditions, companies performance and investor’s circumstances.
• Finally the evaluation of the portfolio for the results to compare with the targets and
needed adjustments have to be made in the portfolio to the emerging condition and to
make up for any shortfalls in achievement.
PORTFOLIO MANAGEMENT PROCESS:
Investment management is a complex activity which may be broken down into the
following steps:
1. Specification of investment objectives and constraints:
a. The typical objectives sought by investor’s are current income, capital
appreciation, and safety of principle. The relative importance of these objectives
should be specified further the constraints arising from liquidity, time horizon,
tax and special circumstances must be identified.
2. Choice of the asset mix:
a. The most important decision in portfolio management is the asset mix decision
very broadly; this is concerned with the proportions of stocks (equity shares and
units/shares of equity-oriented mutual funds) and bonds’ in the portfolio. The
appropriate stock-bond mix depends mainly on the risk tolerance and investment
horizon of the investor.
RETURNS ON PORTFOLIO:
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value of money etc. this pattern of’ investment in different asset categories, types of investment,
etc., would all be described under the caption of diversification, which aims at the reduction or
even elimination of non-systematic risks and achieve the specific objectives of investors.
EQUITY MEANING:
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During the month of June 2010, Sensex recovered smartly from the previous month’s
lows of 16000 levels and closing at 17700, up 6% mom. India’s capital market resilience
amongst regional peers is led by high GDP growth, improving fiscal scenario and path breaking
reforms implemented by the government. The guidelines issued for minimum 25% public
shareholding & long pending deregulation of Oil Sector were bold steps and came as a welcome
surprise to the investors.
Fiscal pressures on the government have substantially eased as 3G & BWA auctions
revenue collections of Rs.1 trillion were over Rs 70000 cr above the budgeted amount, creating a
fiscal cushion of over 1% of GDP. Global headwinds eased slightly with some stability seen in
the Euro area as their sovereign bond auctions ended smoothly which eased the contagion fears.
China’s decision to allow its currency appreciation was also taken positively by the global
markets.
Industrial Production data for April 2010 was way above expectations, up 17.6% vs.
13.5% consensus - powered by Capital Goods up 73% & Consumer Goods up 37%, clearly
reflecting the resilience of the economy and pointing towards pickup in industrial capex. Recent
data also showed the current account deficit widening to US$13bn (3.4% of the GDP) in
4QFY10, highest level in two decades barring a deficit of US$13.03bn in 3QFY09. Despite
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strong software exports, current account deficit in 4QFY10 remained at record high on higher
capital goods imports due to industrial demand recovery. Larger capital account surplus due to
strong portfolio inflows, however, resulted in overall Bop surplus.
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EQUITY OUTLOOK:
With the industrial sector buoyancy and business confidence seen amongst the corporate
sector, the tax revenues could surprise on the upside bringing down the overall Fiscal Deficit
much below the budgeted 5.5%. The Oil deregulation would be slightly inflationary but would
also partly reduce the huge annual subsidy burden on the government going forward further
helping the government on the fiscal front.
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The most important positive change in India today is the agility and conviction that the
government is showing towards taking long-pending bold reforms. The way the government
responded to sensitive issues like solving the two-month old SEBI-IRDA tussle is also
admirable. The speed with which it wants to implement its reformist measures like moving
towards GST and DTC regime is also commendable as the revised DTC draft provisions
addressing key debatable issues has been released.
The Indian capital market benchmark, Sensex currently at 17700, trades at 16.5x FY11E
earnings and is slightly above its long-term average valuations. The market will take cues from
the first quarterly results, monsoon advancement and emerging global scenario.
LITERATURE REVIEW:
In this article, Mr. Nishanth says that the responded to their capital protection schemes at
best been lukewarm. But portfolio management service (PMS) providers have a different story
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to tell that relatively more flexible investment models of PMS providers, which allow them to
reshuffle their allocations swiftly and primary objective of capital protection products or
schemes is shielding the capital, at the same time generating better returns as compared to fixed-
income products, while regulations require mutual funds to follow the basic ‘static-hedge’
model.
Most capital protection schemes have been asked to have at least 70-75% of their
portfolio in debt and the rest in equity. Similarly, they shift back to equities, when the sentiment
improves. Here, most of the products are structured in such a way that they can invest up to
100% investments in equity or debt.
In this article, Mr. Harish Rao says that beat lower returns when it comes to ingenuity,
stock brokers seem to have few equals. Highly-profitable portfolio management service (PMS)
schemes have been declining; most large stock broking firms have managed to sustain margins
by arbitrarily changing the rules of the game, as stock brokers introduced new charges.
Upfront fee has been almost doubled to 2-2.25%, as broking firms are paying generous
commission to distributors to fetch them clients. Since investments in PMS schemes are not
closely regulated by SEBI, distributors do not have to disclose the commission that they get
from the service provider. Higher levels of transparency and a more customer-centric approach
is the need of the hour.
In this article, Smt. Suchita says that the impact of Lehman Brothers, Fortis Bank, Wells
Fargo, JP Morgan Chase, Merrill Lynch and the likes left the institutional and private investors
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underfunded. Several economies recover at their own pace, the Indian market is all set to prove
that it can produce returns to beat the so called developed markets.
Short and sweet is the new catch phrase adopted by brokerages while launching portfolio
schemes. Brokerages are offering portfolio management schemes (PMS) with investment tenure
as low as one year, compared to a 3-5 year investment horizon in the past.
Wealth managers said that almost all short-term portfolios are managed on the basis of a
churn strategy. The fund manager shifts between large-cap and mid-cap stocks at every level of
profit, say a 5-10% rise in the share price. Apart from placing bets on high-beta mid-cap stocks,
portfolio managers also adopt derivative strategies like buying options or index futures to add
return kicker on short-term portfolios.
Floating short-term PMS products could be more of a commercial decision, making it
easier and viable for distributors to promote the product. “Such products are easily managed as
their minimum investment limits are really small. Distributors get 1-1.5% for selling these
products.
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In this article, Smt. Srikala says that investors have been presented with a number of
products and a good equity portfolio can have a combination of all of them. Aggressive
investment options and equity is bound to top the list for many the turnaround in quick time was
beyond everyone's expectations but it only proved the fact that equity has the ability to bounce
back in quick time.
The stock markets increasingly getting matured and attracting global investors, the
amount needed for equity trading has steadily gone up. A minimum investment of Rs 50,000 is
needed if you aspire to acquire any of the top-performing blue-chip stocks from the index. The
biggest advantage is the exposure to a basket of stocks unlike direct investment where the
individual's ability will be restricted to a few stocks.
In this article, Smt. Srikala was expressing her thought point of the new technology
which may help portfolio management more efficient work for investment. As investors follow
the different investment patterns, when it take place to managing their equity portfolios.
Systematic investment plan (SIP) as the investments are made on a daily basis, strategy to be
effective, one needs a volatile market which moves in both directions.
Optimise the returns but also acts as a hedge in volatile market conditions, staggered
approach for investing, investors should also use the same approach for profit booking. In fact,
investing is a lot easier when compared with exit strategy as no investor would like to settle for a
lower profit. Break down the portfolio into lump sum and staggered components, and for the
latter, products like STP and SIP can be used.
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BIRLA SUN LIFE INSURANCE:
Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya
Birla Group arid Sun Life Financial Inc., a leading international financial services organization.
The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life
Financial Inc., offers a formidable value proposition to customers.
Sun Life Financial and its partners today have operations in key markets worldwide,
including India, Canada, the United States, the United Kingdom, Hong Kong, Philippines,
Japan, Indonesia, China and Bermuda. Sun Life Financial Inc. had assets under management of
over US$ 386.82 billion, as on 31 March 2007. Sun Life Financial Inc. is a leading performer in
the life insurance market in Canada.
BSLI in its five successful years of operations has contributed significantly to the growth
and development of the life insurance industry in India. It pioneered the launch of Unit Linked
Life Insurance plans amongst the private players in India. It was the first player in the industry to
sell its policies through the Bank assurance route and through the internet. It was also the first
private sector player to introduce a pure term plan in the Indian market. This was supported by
sales practices, which brought a degree of transparency that was entirely new to the market. The
process of getting sales illustrations signed by customers, offering a free look period on all
policies, which are now industry standards were introduced by BSLI.
Being a customer centric company, BSLI has invested heavily in technology to build
world class processing capabilities. BSLI has covered more than one and a half million lives
since inception and its customer base is spread across 100 cities in India. All this has assisted the
company in cementing its place amongst the leaders in the industry in terms of new business
premium income.
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The Aditya Birla Group is one of India's largest business houses. Global in vision, rooted
in Indian values, the Group is driven by a performance ethic pegged on value creation for its
multiple stakeholders. The Group's operations span 66 state of the art, straddling India, Thailand,
Malaysia, Indonesia, Egypt, Philippines, Canada, Australia and China.
A US $28 billion corporation with a market capital of US $31.5 billion and in the League
of Fortune 500, the Aditya Birla Group is anchored by an extraordinary work force of 130,000
employees, belonging to 30 different nationalities. Over 50 per cent of its revenues flow from its
operations across the world.
The Aditya Birla Group is a dominant player in all its areas of operations via; Aluminum,
Copper, Cement, Viscose Staple Fibre, Carbon Black, Viscose Filament Yarn, Fertilizers,
Insulators, Sponge Iron, Chemicals, Branded Apparels, Insurance, Mutual Funds, Software and
Telecom. The Group has strategic joint ventures with global majors such as Sun Life (Canada),
AT&T (USA), the Tata Group and NGK Insulators (Japan), and has ventured into the BPO
sector with the acquisition of TransWorks, a leading ITES/BPO company.
Sun Life Financial Inc is a leading international financial services organization providing
a diverse range of wealth accumulation and protection products and services to individuals and
corporate customers. Chartered in 1865, Sun Life Financial Inc and its partners today have
operations in key markets worldwide, including Canada, the United States, the United Kingdom,
Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.
VISION
MISSION
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To be the first preference of our customers by providing innovative, need based life
insurance and retirement solutions to individuals as well as corporate. These solutions will be
made available by well-trained professionals through a multi channel distribution network and
superior technology.To help people mitigate risks of life, accident, health, and money at all
stages and under all circumstances. Enhance the financial future of our customers including
enterprises.
VALUES:
1. Integrity
2. Commitment
3. Passion
4. Seamlessness
5. Speed
SWOT ANALYSIS
STRENGTH:
WEAKNESS:
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• Company does not penetrate on the rural market.
• There is no plan for the low income group.
• Fees for the advisor is high than the other company.
OPPORTUNITY:
• Insurance market is very big, where company can expand its horizon in insurance
industry.
• Though good investment and insurance it is easy to top Indian customers.
• The huge insurance market (77%) is left so company has opportunity to expand our
products.
• To associate with the more number of HNI.
THREATS:
• OLD HABITS DIE HARD’: It’s still difficult task to win the confidence of public
towards private company.
• The company is facing major threats from LIC -which is an only government company.
• A plan for all income groups is not available which can create adverse effect later on the
market share of the company.
Individual Solutions:
At Birla Sun Life Insurance, we look at life from your perspective. Hence, no matter
what your dreams are - be it long term protection, wealth creation, health, retirement security or
your children’s education, we provide you customized insurance solutions to meet all your Life
needs successfully.
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Our Children’s Future Solutions To take care of your children's
needed.
Our Health & Wellness Solutions To cover you & your family's
current & future health need.
Group Insurance:
We believe that employee benefit plans provided by employers to their employees play
a very important role in increasing employee loyalty and productivity. Birla Sun Life uses its
vast expertise in helping organizations and groups design customized solutions to their
employees.
Retirement Solutions
Our employee benefit solutions are designed to enable organizations and groups to offer
superior benefits to their employees to meet both statutory requirements like gratuity and
retirement solutions.
Gratuity
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While Gratuity is a statutory obligation it is also a very important tool today to create
employee loyalty. A comprehensive gratuity plan can help organizations reduce both business
costs and corporate tax. Birla Sun Life’s gratuity solution manages your gratuity liability
effectively and also helps you release resources for other business activities.
Super Annuation
Today while there is a high awareness of the impact of inflation and its affect on
retirement savings among employees, very few would have adopted a systematic and disciplined
savings plan to counter its effect. Organizations can play a key role in helping employees to
build the desired retirement corpus while at the same time increasing employee loyalty. Birla
Sun Life’s solutions can be customized to effectively meet both employer and employee
requirements.
Leave Encashment
Leave encashment liabilities for organization keep growing with time thus staring the
organizations resources. These liabilities can bee effectively met through the management of a
dedicated fund for leave encashment. Birla Sun Life vast experience in effectively managing
funds and delivering superior returns can help organizations effectively manage these liabilities
Protection Solutions
Birla Sun Life Insurance Group Protection Solutions provide the benefit of an insurance
cover to an entire group of people as a single unit.
This can be Employer – Employee Groups, Affinity Groups and Mortgage Groups:
Employer employee
At Birla Sun Life Insurance (BSLI), our goal is to help you ensure your employees’ well
being so that they can enhance their performance & potential. Our protection solutions combine
new innovations in organizational benefits with the traditional strength of employee assistance to
help you:
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Protect your investment in your people Reduce the liability, cost and negative impact of
mental reassures in the work place maintain your position as employer of choice; and
Incorporate employer protection & wellness into your core business practices
Affinity
Rural Insurance:
A large population of India lives in the rural areas. The impact of risks associated with
life and health are far more severe on this population as compared to the urban population with
higher levels of income.
Birla Sun Life launched its rural program in 2001 to provide insurance to the rural
populace of India. This includes the endowment product that provides life cover and guarantees
returns to the insured on maturity. By virtue of the benefits it provides, this product has been
very well accepted and has gone on to become the most popular product in the rural areas.
With changing times and with increasing disposable incomes in rural areas, we improved
our solutions to the rural population and launched two Mi cro Insurance Products in 2008
which include a pure term and return of premium products. One of the unique features of these
products is that they provide a grace period of 180 days as opposed to 30 days for other similar
plans in the market. This gives policyholders the flexibility to pay premiums.
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Birla Sun Life Insurance Bima Dhan Sanchay apart from providing the security of life
insurance cover also guarantees the refund of premiums paid by you on maturity.
Birla Sun Life Insurance Bima Suraksha Super provides you life insurance cover for
which you have to pay regular premium.
NRI Solutions
In today's globalized work environment we often find ourselves staying away from our
loved ones in a different country. However, our hopes, dreams and aspirations to provide them
the best of life do not change. Birla Sun Life's unique NRI solutions can help you ensure that
your dreams and aspirations are not compromised even while you stay away from your family.
Our solutions can help you plan and fulfill all your goals like planning for your child's
education, planning for your retirement, building a house, caring for your parents back home and
more.
ICAI Awards for Excellence in Financial Reporting, Awarded a Silver Shield in the
Insurance category by the Institute of Chartered Accountants of India (ICAI) for the financial
year ended 31st March, 2009
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Birla Sun Life Income Birla Sun Life Monthly Birla Sun Life Ultra
Fund Category: Income Funds Income Category: Monthly Short Term Fund
1 yr performance ended Income Plans – Conservative Category: Income –
31 Dec, ‘07 1 yr performance ended Short Term Funds
Total Schemes in 31 Dec, ‘07 1 yr performance ended
Category = 17 Total Schemes in 31 Dec, ‘07
Category = 9 Total Schemes in
Category = 12
Birla Sun Life Income Fund- Birla Gilt Plus-Regular Plan- Birla Sun Life '95
Growth Growth Fund-Growth
Best Fund - Bond INR General Best Fund - Bond INR Best Fund - Mixed
3 yrs & 10 yrs performance ended Government Asset INR Aggressive
31 Dec, ‘07 5 yrs performance ended 10 yrs performance
Total Schemes in 31 Dec, ‘07 ended
Category = 100 and 10 Total Schemes in 31 Dec, ‘07
respectively Category = 35 Total Schemes in
Category = 6
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ICRA Mutual Fund Awards 2008
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RESEARCH & METHODOLOGY:
RESEARCH:
While making a study we very often look for what type of research methodology is to be
used in this type of study. For implementation of a proper research methodology we have to first
understand the meaning of research.
Research is a process with the help of which new concepts arises. It is the increase in the
actual knowledge stock. It can be called as movement from known to unknown and vice-versa. It
is also a continuous process. It is a scientific as well as systematic process, which includes
defining and redefining the problem to develop hypothesis, to collect and define the
information/data, to analysis the information and bring out the mother of Discovery. An
individual makes the effort in research and society or public takes its benefits because the results
are usually generalized.
My research is Descriptive in nature because research was not on new topic on fund
performance plus daily stock prices of the companies in this project. Everything has been given
in limited contrast with topic and work provided to me in BSLI. So with the help of limited note
I justified my topic well in analyzing and interpretation, provided useful material to BSLI with
these work done by me for investment decision better against selected Companies.
Data collection
The word data means any raw information, which is either quantitative or qualitative in
nature, which is of practical or theoretical use. The task of data collection begins after a research
problem has been defined and research design chalked out. While deciding about the method of
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data collection, the researcher should keep in mind that there are two types of data primary and
secondary.
Primary data: -
This is those, which are collected afresh and for the first Time, and thus happen to be
original in character. There are many ways of data collection of primary data like observation
method, interview method, through schedules, pantry Reports, distributors audit, consumer panel
etc. The Team Managers and employees of both the Department were consulted to get
information about procedure of both the online and off line share trading. But the method used
by us for the primary data collection was through questionnaires.
Secondary data: -
These are those data, which are not collected afresh and are used earlier also and thus
they cannot be considered as original in character. There are many ways of data collection of
secondary data like publications of the state and central govt., reports prepared by researchers,
reports of various associations connected with business, Industries, banks etc.
OBJECTIVES:
1. Analyzing the daily prices of eight different companies to know the rise and fall in the
stock prices.
2. Compare four fund of BSLI with other company’s asset allocation in market.
LIMITATIONS:
1. Limited new available for fall n rise in the stock price for companies’
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2. Full information is limited from other companies regarding with funds performance.
COMPANIES ARE:
1. Hindalco
2. PNB
3. USL
4. Relaxo
5. Ashok Leyland
6. Sun Pharma
7. Wipro
8. Idea
The reason behind searching news on fall n rise of 8 companies in share market for BSLI is: -
1. What all factors are affecting the companies in loosing stock price down and via-versa?
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4. How long companies can sustain?
6. Help in decision making work, planning future investment and make good plan to attract
customer more to by BSLI Policy.
Hindalco Graph 1
Analysis
After observing the graph, the outcome here is that Hindalco start off with 52.25 in
opening and later on we can see that company having lots of up and down during the period of
April to March, reason behind regular fall n quick rise here with the company stock price in
market was market volatility, Target not achieved, political, global and corporate. And the
percentage change in daily stock prices were 5% to 15% with this particular company in market,
which give an idea that Hindalco performing well after slide change in market with 5 to 15
percentages and also proof that company having strong financial back with them under uncertain
situation. And company reaches to181 closing stock in market. So I will suggest BSLI can add it
under investment zone for new portfolio.
PNB Graph 2
Analysis
After observing the graph, the outcome here is that PNB manage it saving A/c, current
A/c, provide loan, net banking facility and many such kind of stuff what happen in banking
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sector more. Here in the month of June to July bank has suffer a lot due least amount of profit
and lack of fund but later on PNB pick his reach again and got settled. Then remaining months
PNB has really perform well and overcome to his short come, what dislodge their highest fall
and rise later on 677 to 351 and 451 to 704 respectively. Fallen and risen percentage was 3 to 17,
but mostly PNB has a increase in stock price during the period Aug to March. And highest value
of stock price in market for PNB was 1013. So I suggest that company growth in the market as
per the stock price performance and BSLI must eye on this company.
USL Graph 3
Analysis
After observing the graph, the outcome here is that USL basically manufacturer of hard
drink which mostly people use to drink in night party and individual most. Here competition
with other companies are at least because USL having stable fall and rise in the market through
market volatility. As USL stock price start with 638 and at the end it was 1321, which shows
company growth in market is high. But there are some minor loss for company due to market
uncertainty, government policy against USL manufacturing hard drink, which prove that
everyone has to face ups and down in market during long run business. So I suggest BSLI that
invest as much they wanted according to decision.
Relaxo Graph 4
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Analysis
After observing the graph, the outcome here is that it does not impress me at all as it has
a stable stock price in the market and later on some hike but not much. So I suggest BSLI not
invest or take consideration for setting a fund portfolio for investor to invest more. Because
Relaxo company is not growing in the footwear industry more to provide better performance
later on year with new fund plan.
Analysis
After observing the graph, the outcome here is that ALL company sales growth was at
17%, tie up with NISSAN shows positive sign for both the company as well as for the investor.
It was clearly in the graph plus new in the market about the company huge investment on
making new product in automobile industries, which lead the company for higher growth and
maintain stability in market with continuous attraction for other player in market. Market price
starts at 1065 to 1789 up and down in stock. Fluctuation in the stock price for ALL was through
market volatility and more risk decision on investment plan which clearly represent in news,
because name it’s all about the trick done for success for them in market. So I suggest BSLI that
they can really trust on market position of ALL and take into consideration for investor in
portfolio through fund manager.
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Analysis
After observing the graph, the outcome here is that in the beginning the company stock
price were growing well. As market volatility affect the most in the stock price so their price
varies accordingly. Sun Pharma increasing rate in stock is 3% to 27% and decrease by 3% to
18% respectively. Today market Sun Pharma is doing well business and booming in the
automobile industry, as above graph represent growth prospective for future in market by the
company. So suggestions for BSLI here will that they must consider Sun Pharma on top most
lists and invest more in it.
Wipro Graph 7
Analysis
After the observation it is concluded that the 1st day of the stock price that is 1st April
2009 is 251 and the last day of the year that is 31 st march 2010 is 706. The difference is of 455 is
being seen in the whole year. The company is growing at the good pace and least fall is being
seen in the graph of Wipro. Overall performance of the company is good and is keep up its
goodwill in the IT sector. So suggestion for BSLI here that must invest in this company for the
better result for future.
Idea Graph 8
Analysis:
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The beggening of the year of the idea on 1st of april 2009 the stock price was 49 and the
last day of the year that is 31st march 2010 is 65. In this graph lost of fluction is being seen, the
company is facing more down fall as compare to the rise in the price. This is the result of
competition with other major telecome industry, as company is introducing the new plan but still
they are not able to match up the pace of other company. So suggestion for the company must
not investment much in Idea, as it was not performing up to the mark in market in 2009. But can
have a watch on it as it is a part of Aditya Birla Group.
FUNDS PERFORMANCE
ENHANCER FUND: -
To grow capital through enhanced return over a medium to long term period through
investments in equity and debt instruments, thereby providing a good balance between risk and
return.
Strategy: -
To earn capital appreciation by maintaining diversified equity portfolio and seek to earn
regular return on fixed income portfolio by active management resulting in wealth creation for
policy holders.
• Equity : 20%-35%
• Debt : 65%-80%
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Company Fund 1st year 2nd year 3rd year
Defensive Manage
HDFC Investment life 20.96 10.89 11.28
Analysis:
In the comparison of funds SBI ( Balanced Fund ) annualised return is higher than the
other companies there annualised return is 39.51% and as compare to BSLI ( Enhancer Fund)
which is 29.09% , its is 10.42% higher. SBI is giving the higher return in the asset allocation of
35% to 65%, where 35% is of equity and 65% of debt.
CREATOR FUND: -
Achieve optimum balance between growth and stability to provide long term capital
appreciation with balanced level of risk by investing in fixed income securities and high quality
equity security.
41 | P a g e
Strategy: -
Ensure capital appreciation by simultaneously investing into fixed income securities and
maintaining diversified equity portfolio. Active fund management is carried out to enhance
policyholder’s wealth in long run.
• Equity : 30%-50%
• Debt : 50%-70%
ANALYSIS:
In the comparison of 50% & 50 % allocation, in this BSLI is providing the higher return
as compare to the other company. BSLI is giving 52.71% gross return that will provide the long-
term higher, return which are significantly higher. Through, high exposure to equity investment,
while recognizing that there is some probability of negative return in the short-term. The risk
appetite is moderate to high.
MAGNIFIER FUND: -
42 | P a g e
Maximize wealth by actively managing a diversified equity portfolio.
Strategy: -
Invest in high quality equity security to provide long term capital appreciation with high
level of risk. This fund is suitable for those who want to have wealth maximization over long-
term period with equity market dynamics.
• Equity : 50%-90%
• Debt : 10%-50%
ANALYSIS:
In the comparison of the allocation of fund SBI is providing the higher gross return as
compare to the other company which is 81.98% and BSLI is providing 74.46% which is
decreased by 7.52% as a result market ending positive. The market took support from the
foreign inflows and increase in liquidity global.
MAXIMISER FUND: -
43 | P a g e
Providing long term capital appreciation by actively managing a well diversified equity
portfolio of fundamentally strong blue cap companies and provides a cushion against the
volatility in the equities through investment in money market instruments.
Strategy: -
Active Fund management with potentially 100% equity exposure. Maintain high quality
diversified portfolio with dynamic blend of growth and value stocks, so that portfolio does not
suffer from style bias. Focus on large-caps and quality mid-caps to ensure liquidity and reduce
risk.
• Equity : 80%-100%
• Debt : 0%-20%
44 | P a g e
RISK RETURN PROFILE: Risk – High and Return – High
ANALYSIS:
In the comparison of the allocation of fund in this category Canara HSBC (Unit linked
Equity Fund) is providing higher return which is 98.47 which 7.33% which is lesser then the
BSLI (Maximser fund). That provide high real rate of return in the long-term through high
exposure to the equity investment.
45 | P a g e
CONCLUSION
Companies stock price are been affected through various factor like Political, Economic,
Inflation, Budget, Government policy change and etc. But still company like PNB, Wipro, USL,
Sun Pharma and Hindalco were doing well business in respective fields with slide up and
downs.
BSLI fund performance of 2009-2010 shows ample promise to the investor that this time
BSLI have bring good new opportunity for investor to invest in their plan successfully. Again in
right manner as there is different leading finest portfolio for the investor in market through less
risk and better return promising part.
➢ Joint venture.
➢ Political interference.
➢ Global crises.
➢ Economic policies.
➢ Uncertainty
46 | P a g e
As the per the study the best performing companies in terms of stock prices are Sun
Pharma, USL, Hindalco, Wipro and PNB they are well balanced in share market and also good
growth possibility sign is there. BSLI should increase its investment plus watch on these
companies and also manage investment percentage accordingly.
BIBLIOGRAPHY
• www.idbifortis.com/pdf/CIOSpeak/Wealth_Trends_April_2010.pdf
• www.prsindia.org/.../LIC%20/Life%20Insurance%20Corporation%20Amendment
%20Bill%202009.pdf
• www.icicibank.com/.../2009_10_Q2_2010_Investor_presentation.pdf
• shabbir.in/wp-content/uploads/Funds-of-the-Month-May2010.pdf
• www.reliancelife.com/.../The%20Analyst,%20Annual%20Fund%20Factsheet%20(Ulip)
%20-%20April%202010.pdf
• http://www.google.co.in/search?
hl=en&ei=sDMoTOSnDsO_rAf1_YntBA&q=PDF+file+of+Reliance+Life+Insurance+f
und+performance+2009-10&start=0&sa=N
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le+of+idbi+fortis+fund+performance+for+3+years&hl=en&gl=in&pid=bl&srcid=ADGE
ESgDDQp2gnjJ6ogRRmN0tOWf6p0XJ_C0ZGvefF8Ugj6v_sAYwod9wbvimnUzdSnUs
jURl7T5RnGK3mpO2qkB_d-ibOQYN09vmq5nbb3-
1CFBx9_PP5NvZV7SvTdQ8SniGbE83mv4&sig=AHIEtbSmEJ8ZK0_9ud0FqNuM6LN
ijzNZwg
• http://www.scribd.com/doc/17656518/ULIPsComparative-Analysis
• http://webcache.googleusercontent.com/search?
q=cache:y1GAooH7ubYJ:myomfa.com/Library/Articles/Mutual%2520fund
%2520Model%2520portfolio_0610.pdf+pdf+idbi+fortis+fund+performance+2009-
10&cd=11&hl=en&ct=clnk&gl=in
• http://lifeinsureinfo.blogspot.com/2009/05/idbi-fortis-life-insurance.html
• http://www.businessstandard.com/india/common/regthanks.php?
id=sandeepdhuli02@gmail.com
47 | P a g e
• http://www.moneycontrol.com/news/business/expect-rs-550-cr-turnover-rs-35-cr-pat-
relaxo-footwears_433387.html
• http://economictimes.indiatimes.com/markets/analysis/Portfolio-schemes-now-come-in-
small-packages/articleshow/5717694.cms
• http://economictimes.indiatimes.com/articleshow/5733801.cms
• http://economictimes.indiatimes.com/opinion/comments--analysis/Portfolio-
management-and-strategies/articleshow/5554238.cms
• http://economictimes.indiatimes.com/features/financial-times/Technology-makes-
portfolio-management-efficient/articleshow/6094833.cms
• http://economictimes.indiatimes.com/articleshow/6103708.cms
• http://www.google.co.in/img
• http://economictimes.indiatimes.com/articleshow/4012387.cms
• http://economictimes.indiatimes.com/articleshow/2580334.cms
• http://etmedia.economictimes.indiatimes.com/Aggressive-growth-portfolio-for-25-year-
old/videoshow/6314930.cms
48 | P a g e
Annexure
Graph 1
Mont Stock
Date Up Down
h Price
1 Apr 52.65
15 Apr 62.15 9.5
20 Apr 53.55 8.6
5 May 62.15 8.6
7 May 70.2 8.05
18 May 80.9 10.7
1 June 87.75 6.85
11 June 101.5 13.75
18 June 87.55 13.95
6 July 78.15 9.4
13 July 70.65 7.5
17 July 84.2 13.55
24 July 93.7 9.5
3 Aug 108.2 14.5
17 Aug 100.25 7.95
24 Aug 108.4 8.15
11 Sep 124.15 15.75
17 Sep 136.05 11.9
29 Sep 126.85 9.2
5 Oct 118.15 8.7
14 Oct 135.35 17.2
27 Oct 126.15 9.2
3 Nov 109.15 17
4 Nov 119.15 10
9 Nov 129.55 10.4
1 Dec 142.1 12.55
23 Dec 153.2 11.1
29 Dec 162.05 8.85
5 Jan 175.2 13.15
12 Jan 167.6 7.6
25 Jan 159.1 8.5
27 Jan 150.1 9
49 | P a g e
5 Feb 138.1 12
17 Feb 152.8 14.7
26 Feb 161.25 8.45
3 Mar 170.95 9.7
11 Mar 159.95 11
17 Mar 173.55 13.6
29 Mar 183.95 10.4
Graph 2
Stock
Date Month Up Down
Price
April '
1 09 405
April '
17 09 492.6 87.6
April '
21 09 465.6 27
April '
27 09 523.55 57.95
April '
28 09 473.1 50.45
4 May ' 09 503.7 30.6
15 May ' 09 575.05 71.35
4 to 19 May ' 09 692.1 188.4
26 May ' 09 639.1 53
29 May ' 09 670.7 31.6
1 June ' 09 663.95 6.75
12 June ' 09 594.95 69
15 to
June ' 09
29 679.05 84.1
1 July ' 09 351.2 327.85
14 July ' 09 403 51.8
23 July ' 09 507.95 104.95
31 July ' 09 451.25 56.7
3 Aug ' 09 704.75 253.5
10 Aug ' 09 659.75 45
13 Aug ' 09 702.05 42.3
31 Aug ' 09 682.85 19.2
1 to 11 Sep ' 09 705 22.15
15 to
Sep ' 09
30 795.6 90.6
50 | P a g e
1 to 17 Oct ' 09 867.25 71.65
20 to
Oct ' 09
30 853.95 13.3
3 to 11 Nov ' 09 930.3 76.35
12 to
Nov ' 09
19 899.6 30.7
25 Nov ' 09 933.4 33.8
30 Nov ' 09 906.25 27.15
8 Dec ' 09 939 32.75
21 Dec ' 09 885.15 53.85
30 Dec ' 09 916.7 31.55
11 Jan ' 10 950.2 33.5
15 Jan ' 10 908.25 41.95
29 Jan ' 10 899.5 8.75
6 Feb ' 10 855.05 44.45
18 Feb ' 10 894.1 39.05
4 Mar ' 10 931.5 37.4
19 Mar ' 10 964 32.5
31 Mar ' 10 1013.45 49.45
Graph 3
Mont Stock
Date Up Down
h Price
1 Apr 683.9
2 693.7 9.8
6 663.35 30.35
9 706.5 43.15
15 757.95 51.45
16 704.9 53.05
17 729.9 25
27 739.5 9.6
29 708.75 30.75
4 May 731.6 22.85
6 May 690.35 41.25
7 May 714.4 24.05
8 May 666.55 47.85
18 May 748.8 82.25
20 May 866.7 117.9
22 May 822.1 44.6
25 May 889 66.9
51 | P a g e
26 May 831.3 57.7
27 May 870.45 39.15
2 June 931.05 60.6
3 June 979.05 48
8 June 862.9 116.15
10 June 923.9 61
12 June 880.6 43.3
16 June 934.4 53.8
23 June 822.8 111.6
25 June 917.8 95
30 June 873.05 44.75
16 July 920.35 47.3
21 July 965.7 45.35
22 July 913.95 51.75
28 July 970.4 56.45
3 Aug 1052.3 81.9
7 Aug 926.65 125.65
12 Aug 863.75 62.9
13 Aug 908.9 45.15
24 Aug 933.1 24.2
27 Aug 966 32.9
4 Sep 902.5 63.5
14 Sep 865.1 37.4
24 Sep 922.15 57.05
15 Oct 987.1 64.95
20 Oct 1043.7 56.6
27 Oct 999.25 44.45
30 Oct 1071.2 71.95
3 Nov 1000.55 70.65
4 Nov 1050.95 50.4
10 Nov 1159.65 108.7
11 Nov 1201.2 41.55
12 Nov 1166.2 35
19 Nov 1200.6 34.4
30 Nov 1263.95 63.35
3 Dec 1391.1 127.15
15 Dec 1257.95 133.15
4 Jan 1316.5 58.55
6 Jan 1383.85 67.35
52 | P a g e
15 Jan 1272.55 111.3
27 Jan 1208.65 63.9
3 Feb 1286.85 78.2
17 Feb 1344.35 57.5
3 Mar 1445.6 101.25
17 Mar 1374.75 70.85
31 Mar 1321.9 52.85
Graph 4
Stock
Date Month Up Down
Price
1 Apr 28.7
29 Apr 31 2.3
29 May 41.8 10.8
5 June 51.8 10
25 June 46.35 5.45
16 July 51 4.65
5 Aug 71.65 20.65
12 Aug 66 5.65
27 Aug 79.65 13.65
10 Sep 89.8 10.15
18 Sep 104.5 14.7
29 Sep 114.95 10.45
5 Oct 132.95 18
7 Oct 146.5 13.55
9 Oct 159.8 13.3
20 Oct 139.3 20.5
10 Nov 148.55 9.25
13 Nov 171.65 23.1
16 Nov 188.8 17.15
18 Nov 205.05 16.25
23 Nov 190.95 14.1
24 Nov 183.05 7.9
1 Dec 190.3 7.25
9 Dec 179.85 10.45
18 Dec 170.15 9.7
29 Dec 182.9 12.75
31 Jan 198.1 15.2
6 Jan 188.6 9.5
53 | P a g e
12 Jan 181.3 7.3
19 Jan 197.7 16.4
22 Jan 183.3 14.4
25 Jan 173.15 10.15
1 Feb 195.05 21.9
4 Feb 179.05 16
11 Feb 190.15 11.1
16 Feb 213.15 23
19 Feb 192.2 20.95
12 Mar 206.8 14.6
31 Mar 223.7 16.9
Graph 5
Stock
Date Month Up Down
Price
1 Apr 18.45
15 Apr 22.85 4.4
20 May 31.4 8.55
2 June 36.55 5.15
15 June 29.75 6.8
9 July 34.05 4.3
31 July 36.5 2.45
27 Aug 40.05 3.55
23 Sep 42.75 2.7
15 Oct 44.45 1.7
6 Nov 51.2 6.75
22 Dec 47.7 3.5
14 Jan 56 8.3
27 Jan 49.45 6.55
31 Mar 55.85 6.4
Graph 6
Mont
Date Stock Price Up Down
h
1 Apr 1065.3
8 Apr 1113.8 48.5
15 Apr 1211.4 97.6
20 Apr 1182.6 28.8
27 Apr 1229.6 47
54 | P a g e
6 May 1297.35 67.75
18 May 1399.8 102.45
20 May 1307.8 92
21 May 1269.55 38.25
25 May 1317.4 47.85
29 May 1209.7 107.7
4 June 1306.65 96.95
26 June 1140.45 166.2
30 June 1090.95 49.5
2 July 1145.85 54.9
15 July 1215.55 69.7
29 July 1188.25 27.3
13 Aug 1243.15 54.9
19 Aug 1164.35 78.8
27 Aug 1216 51.65
25 Sep 1311 95
30 Sep 1399.3 88.3
5 Oct 1429.2 29.9
8 Oct 1364 65.2
14 Oct 1408.55 44.55
15 Oct 1359.2 49.35
22 Oct 1322.2 37
29 Oct 1404.2 82
16 Nov 1477.65 73.45
19 Nov 1414.95 62.7
1 Dec 1538.8 123.85
7 Dec 1453.25 85.55
22 Dec 1503.55 50.3
24 Dec 1563.65 60.1
31 Dec 1507.1 56.55
8 Jan 1574.55 67.45
19 Jan 1487.65 86.9
2 Feb 1514.95 27.3
23 Feb 1571.95 57
5 Mar 1610 38.05
11 Mar 1686.6 76.6
22 Mar 1702.85 16.25
29 Mar 1800 97.15
55 | P a g e
Graph 7
Stock
Date Month Up Down
Price
1 Apr'09 251.6
8 Apr 282.1 30.5
23 Apr 312.95 30.85
29 Apr 330.5 17.55
7 May ' 09 380.05 49.55
11 May 349.4 30.65
15 May 377.75 28.35
18 May 424.65 46.9
25 May 366.65 58
1 June'09 397.9 31.25
10 June 432.7 34.8
18 June 377.75 54.95
26 June 383.7 5.95
9 July ' 09 372.15 11.55
20 July 460.05 87.9
31 July 490.65 30.6
10 Aug ' 09 512.85 22.2
19 Aug 493.45 19.4
27 Aug 568.45 75
9 Sep ' 09 542.25 26.2
22 Sep 575.5 33.25
5 Oct ' 09 608.5 33
9 Oct 552.85 55.65
21 Oct 586.9 34.05
22 Oct 576.85 10.05
29 Oct 625.1 48.25
3 Nov ' 09 581.15 43.95
20 Nov 649.95 68.8
27 Nov 624.85 25.1
9 Dec ' 09 655.3 30.45
24 Dec 694.05 38.75
5 Jan ' 10 704.8 10.75
11 Jan 662.2 42.6
56 | P a g e
18 Jan 747.5 85.3
27 Jan 654.5 93
8 Feb ' 10 636.6 17.9
16 Feb 699.4 62.8
19 Feb 666 33.4
2 Mar ' 10 699.3 33.3
17 Mar 739.6 40.3
31 Mar 706.8 32.8
Graph 8
Mont Stock
Date Up Down
h Price
1 Apr 49.6
24 Apr 60.55 10.95
18 May 76.45 15.9
29 May 83.35 6.9
18 June 78.2 5.15
6 July 69.5 8.7
24 July 81.55 12.05
7 Aug 72.9 8.65
25 Aug 80.1 7.2
16 Sep 75.15 4.95
6 Oct 64.75 10.4
27 Oct 54.3 10.45
11 Nov 49.45 4.85
9 Dec 57.8 8.35
11 Jan 61.95 4.15
5 Feb 56.35 5.6
17 Mar 64.35 8
29 Mar 67.05 2.7
57 | P a g e