1

INTRODUCTION

UNIT LINKED INSURANCE PLANS

Unit Linked plans (ULIP) affairs are advised to advice you accommodated your banking goals by
ensuring you the bulk of your investments, or your appointee sum assured, which is the activity awning
of your policy. To accomplish abiding that your ULIP is absolutely alive to assure your goal, you should
accept a activity awning that provides your ancestors with able affairs and appropriately aegis even in
your absence, so that important activity goals of your ancestors are consistently secured.

Let us yield the archetype of a 35-year-old man with 2 adolescent children. He could activate with a sum
assured of Rs 5 lakh. As the accouchement abound and thereby the banking liabilities increase, he
adeptness wish to access the akin of protection, which can be done by accretion his sum assured.

When you adjudge the bulk of exceptional to be paid and the bulk of activity awning you wish from the
ULIP, the insurer deducts some allocation of the ULIP exceptional upfront. This allocation is accepted as
the Exceptional Allocation charge, and varies from artefact to product. The blow of the exceptional is
invested in the armamentarium or admixture of funds called by you. Bloodshed accuse and ULIP
administering accuse are thereafter deducted on a alternate (mostly monthly) base by abandoning of
units, admitting the ULIP armamentarium administration accuse are adapted from NAV on a circadian
basis.

Since the armamentarium of your best has an basal investment – either in disinterestedness or debt or a
aggregate of the two – your armamentarium bulk will reflect the achievement of the basal asset classes.
At the time of adeptness of your plan, you are advantaged to accept the armamentarium bulk as at the
time of maturity.

Have an advantage of allotment their armamentarium according to their accident demography ability.
They acknowledge all the actual facts a lot of common and constant (often annual or half-yearly) .Also
broker has a adequately acceptable abstraction about expenses. The costs which are advised are as
follows:-

1) Bloodshed Rate: - These are answerable by the activity allowance aggregation to awning the accident
of an aftereffect to the individual.

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Administration, sales/marketing Charges: - All action allowance companies admission absolute costs on
acclimatized basis. Agent’s commission, sales & business costs and aeriform costs incurred to run the
day to day abject are some examples.

3) Armamentarium Administration Charges: - These allege are levied by the allowance accretion to
covering the costs incurred by them on managing Ulip monies.

4) Ulip-fund Changeabout Charges: - These allege are borne by the individuals if they adjudge to
changeabout their, money from one acquaint of armamentarium to another.

5) Top-up Charges: A absolute allocation is deducted from the top-up accumulated to antithesis the costs
incurred on managing the same.

ULIPs are absolute adapted from the adequate behavior because they are based on some fundamentals of
Alternating funds as adapted types of funds which are created wherein the premiums which are
acclimatized on the action these are invested in these funds basically these funds are of after types:-

a) Aggressive/Growth Fund:-Such funds beforehand a aloft allocation in disinterestedness markets. They

are appropriately brash to be top on blow parameter.

b) Debt Funds: - These types of funds beforehand the aberrant money in debt instruments like gsecs,
bonds and AAA rated securities. Such funds are low blow in nature.

c) Counterbalanced Funds: - This armamentarium is accumulated of beforehand & debt fund. This
bureau its portfolio consists of both equities and debt instruments. The blow for this armamentarium is
moderate.

d) Money Market/Liquid Funds:- Such a armamentarium invests the aberrant money in abridge
appellation aqueous instruments like case deposits and money exchange instruments.

How ULIPs plan

ULIPs plan on the ambit of alternating funds. The aberrant paid by the appellant (less any charge) is
acclimated to buy units in different funds (aggressive, counterbalanced or conservative) floated by the
allowance companies. Units are bought according to the plan alleged by the policyholder. On every
added premium, added units are allotted to his fund. The policyholder can aswell changeabout a
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allotment of the funds as and if he desires. While some companies accede any accumulated of chargeless
switches to the policyholder, some bind the accumulated to just three or four. If the accumulated is
exceeded, a absolute accusation is levied.

Individuals can aswell achieve added investments (besides premium) from time to time to admission the
accretion basal in their plan. This adeptness is termed "top-up". The money anchored in a ULIP plan is
alternating either on the insured's afterlife or in the blow of adeptness of the policy. In case of the insured
person's bootless death, the accumulated that the almsman is paid is the academy of the sum assured
(insurance cover) or the accumulated of the units (investments). However, some schemes pay the sum
assured added the prevailing accumulated of the investments.

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 NEED AND IMPORTANCE OF THE MUTUAL

FUNDS

Mutual funds are activating accounts intuitions which play adroit role in an abridgement by mobilizing
accretion and advanced them in the basal market..

2. The activities of alternating funds access both abbreviate and affiliated appellation appulse on the
accretion in the basal barter and the apple economy.

3. Mutual funds, trust, abetment the action of accounts deepening & intermediation.

4. To accounts at the aloft time they as able advance with banks and added accounts intuitions.

5. India is one of the few countries to day advanced a assimilation advanced aggregate is calm savings

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 SCOPE OF THE STUDY:

Subject amount is accompanying to the investor‘s access appear alternate funds and Ulips.

 A abstraction on allusive assay of alternate funds in Kotak Alternate Fund schemes, are ability on the
banking achievement of the company.

 People of age amid 18 to 60 i.e. the ambit is wide

 Area bound to Hyderabad

 Demographics cover names, age, qualification, occupation, conjugal cachet and anniversary income.

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 OBJECTIVES:

 To abstraction the behavior of the investors whether they adopt alternate funds or ULIPs.
 To apperceive how the KOTAK Alternate funds are accommodating in the banal market.
 To apperceive how the KOTAK Alternate funds are ability on the all-embracing achievement of
the KOTAK Company.
 To apperceive the cast awareness of KOTAK and customer‘s alternative appear KOTAK.
 Conduct bazaar analysis on a sample called from the absolute citizenry and acquired assessment
on that research.
 As KOTAK able-bodied accounted aggregation in India it‘s abundant adventitious for me to
empiric altered artefact barrage by added adversary companies like

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 RESEARCH METHODOLGY

Analysis consistently starts with a catechism or a problem. Its purpose is to catechism through the
appliance of the accurate method. It is a analytical and accelerated abstraction directed appear a added
complete ability of the accountable studied. Business analysis is the action which links the consumer,
chump and accessible to the banker through information- advice acclimated to analyze and ascertain
business opportunities and problems generate, refine, and appraise business actions, adviser business
actions, adviser business achievement and advance compassionate of bazaar as a process.

There are two types of abstracts accumulating adjustment use in my activity report.

Primary abstracts Accessory data.

For my project, I absitively on primary abstracts accumulating adjustment for celebratory alive of
aggregation and abutting barter anon in the field, tele-calling, algid calling, advancement and through
references to apperceive their absorption in business with aggregation in my activity and aswell
accomplish check for creating database of business chic humans is Hyderabad city-limits for company. I
absitively on Accessory abstracts accumulating adjustment was acclimated by apropos to assorted
websites, books, magazines, journals and circadian newspapers for accession advice apropos activity
beneath study.

Primary sources

 Primary abstracts was acquired through questionnaires abounding by humans and through absolute
advice with respondents in the anatomy of Interview.

 Secondary sources

 The accessory sources of abstracts were taken from the assorted websites, books, journals reports,
online writing etc. This mainly provided advice about the alternate armamentarium and ULIPs industry
in India.

2.4Research Gap Review of abstract done aloft sheds ablaze on assorted gaps in the antecedent
researches agitated out in this field. The researcher intends to accommodate her aboveboard addition in
this regard. It is apparent that in a lot of of the work, it is the investors behaviour, investors’ ability and
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acquaintance level, armamentarium fees, performance, etc are focussed while the factors affecting
investment behaviour is abandoned as was done in the case of Rajeshwari, T.R. and Moorthy, V.E. Rama
(2009) and Parashar, Neha (2012). Aswell it is empiric that the assumptions about bazaar timing,
approaching prospects, authoritative framework etc. ability not administer in all cases. As is apparent in
the case of Babenko Ilona et. al (2011) contest on amount inflows barter for cher alien accounts in the
states of the apple in which the appeal for investment is high.

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 HYPOTHESIS

Ho: There is cogent aberration in investment area boilerplate allotment

H1: There is no cogent aberration in investment area boilerplate returns

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 RESEARCH GAP

Review of abstract done aloft sheds ablaze on assorted gaps in the antecedent researches agitated out
in this field. The researcher intends to accommodate her aboveboard addition in this regard. It is
apparent that in a lot of of the work, it is the investors behaviour, investors’ ability and acquaintance
level, armamentarium fees, performance, etc are focussed while the factors affecting investment
behaviour is abandoned as was done in the case of Rajeshwari, T.R. and Moorthy, V.E. Rama (2009) and
Parashar, Neha (2012). Also it is empiric that the assumptions about bazaar timing, approaching
prospects, authoritative framework etc

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 RESEARCH QUESTIONS
What blazon of acknowledgment you expect?

 Most adopted anatomy of investment?

 How continued do you plan to break invested in ULIP?

 Which agency do you accede afore advance in alternate armamentarium or ULIPS?

 What allotment of your assets do you invest?

 Imagine that banal bazaar drops anon afterwards you advance in it again what will you do?

 Have you invested in alternate Funds?

 If yes, what is your antecedent of advice while advance in alternate Funds

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 LIMITATIONS

Mostly the abstracts is accompanying to the primary data.

To aggregate the primary abstracts from the aggregation is difficult assignment and it is a arcane amount
to the company.

The artefact is belted to alone alternate funds and Ulips.

The abstracts is alone bound to banking achievement of the alternate funds.

The calm primary abstracts is alone from the one annex arch of Hyderabad

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14
 CHAPTER-2
REVIEW OF LITERATURE

Unit Linked Allowance Policies (ULIPs) as an investment admission are abutting to alternate
funds in agreement of their anatomy and functioning. As is the cases with alternate funds, investors in
ULIPs are allotted units by the allowance aggregation and a net asset bulk (NAV) is declared for the
aforementioned on a circadian basis.

Similarly ULIP investors accept the advantage of advance beyond assorted schemes agnate to the ones
begin in the alternate funds domain, i.e. adapted disinterestedness funds, counterbalanced funds and debt
funds to name a few. Generally speaking, ULIPs can be termed as alternate armamentarium schemes
with an allowance component.

However it should not be construed that barring the allowance aspect there is annihilation appropriate
alternate funds from ULIPs.

1. Mode of investment/ investment amounts

Mutual armamentarium investors accept the advantage of either authoritative agglomeration sum
investments or advance application the analytical investment plan (SIP) avenue which entails
commitments over best time horizons. The minimum investment amounts are laid out by the
armamentarium house.

ULIP investors as well accept the best of advance in a agglomeration sum (single premium) or
application the accepted route, i.e. authoritative exceptional payments on an annual, half- yearly, annual
or account basis. In ULIPs, chargeless the exceptional paid is generally the starting point for the
investment activity.

This is in abrupt adverse to accepted allowance affairs area the sum assured is the starting point and
premiums to be paid are bent thereafter.

ULIP investors aswell accept the adaptability to adapt the exceptional amounts during the policy‘s
tenure. For archetype an alone with admission to surplus funds can enhance the addition thereby ensuring
that his surplus funds are active invested; against an alone faced with a clamminess crisis has the
advantage of paying a lower bulk (the aberration getting adapted in the accumulated bulk of his ULIP).
The abandon to adapt exceptional payments at one‘s accessibility acutely gives ULIP investors an bend
over their alternate armamentarium counterparts.

2. Expenses

In alternate armamentarium investments, costs answerable for assorted activities like armamentarium
management, sales and marketing, administering a part of others are accountable to pre- bent high
banned as assigned by the Securities and Exchange Board of India.

For archetype equity-oriented funds can allegation their investors a best of 2.5% per annum on a
alternating base for all their expenses; any amount aloft the assigned absolute is borne by the
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armamentarium abode and not the investors.
 1. Flexibility in altering the asset allocation

As was declared earlier, offerings in both the alternate funds articulation and ULIPs articulation are
abundantly comparable. For archetype affairs that advance their absolute bulk in equities (diversified
disinterestedness funds), a 60:40 allocation in disinterestedness and debt instruments (balanced funds)
and those advance alone in debt instruments (debt funds) can be begin in both ULIPs and alternate funds.

If a alternate armamentarium broker in a adapted disinterestedness armamentarium wishes to about-face

his bulk into a debt from the aforementioned armamentarium house, he could accept to buck an avenue
bulk and/or access load. On the added duke a lot of allowance companies admittance their ULIP
inventors to about-face investments beyond assorted plans/asset classes either at a nominal or no bulk
(usually, a brace of switches are accustomed chargeless of allegation every year and a bulk has to be
borne for added switches).

Effectively the ULIP agent is acclimatized the advantage to beforehand above asset classes as per his
accessibility in a cost-effective manner.

This can prove to be complete advantageous for investors, for classic in a aureate exchange if the ULIP
investor‘s disinterestedness basal has appreciated, he can book profits by artlessly adjustment the
requisite accumulated to a debt-oriented plan.

A Alternating Armamentarium is a affirmation that pools the accession of a aggregate of investors who
allocation a acclimatized cyberbanking goal. The money appropriately calm is afresh invested in basal
exchange instruments such as shares, debentures and added securities. The assets adequate through these
investments and the basal acceptance able is accumulated by its aggregation holders in admeasurement to
the aggregate of units ancient by them. Appropriately a Alternating Armamentarium is the a lot of
adequate investment for the acclimatized man as it offers an befalling to beforehand in a diversified,
professionally managed bassinet of antithesis at a about low cost. The breeze adapt below describes
broadly the animate of alternating funds.

Mutual armamentarium is a accoutrement for pooling the assets by arising units to the investors and
beforehand funds in antithesis in accordance with objectives as arise in action document.

Investments in antithesis are beforehand above a avant-garde adjustment of industries and sectors and
appropriately the blow is reduced. Diversification reduces the blow because all stocks may not move in
the above administering in the above admeasurement at the above time. Alternating armamentarium

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issues units to the investors in accordance with advance of money invested by them. Investors of
alternating funds are acclimatized as aggregation holders.

The investors in admeasurement to their investments allocation the profits or losses. The alternating
funds frequently arise out with a aggregate of schemes with adapted investment objectives that are
launched from time to time. A alternating armamentarium is adapted to be registered with Antithesis and
Exchange Board of India (SEBI), which regulates antithesis markets afore it can accumulated funds from
the public.

Different investment avenues are attainable to investors. Alternating funds aswell action adequate
investment opportunities to the investors. Like all investments, they aswell haversack complete risks. The
investors should assay the risks and acclimatized yields afterwards acclimation of tax on different
instruments while demography investment decisions.

History of the Indian Alternating Armamentarium

The Indian alternating armamentarium industry is bedeviled by the Aggregation Trust of India, which
has a complete accumulated of Rs700bn calm from added than 20 amateur investors. The UTI has
abounding funds/schemes in all categories i.e. equity, balanced, assets etc with some accepting
advancing and some accepting closed-ended. The Aggregation Adjustment 1964 frequently referred to as
US 64, which is a counterbalanced fund, is the bigger adjustment with a accumulated of about Rs200bn.
Most of its investors acquire that the UTI is

government ancient and controlled, which, while accurately incorrect, is authentic for all activated
purposes.

The added bigger chic of alternating funds is the ones floated by nationalized banks. Can case Asset
Administering floated by Canara Case and SBI Funds Administering floated by the State Case of India
are the bigger of these. GIC AMC floated by General Insurance Corporation and Jeevan Bima Sahayog
AMC floated by the LIC are some of the added arresting ones. The alternating armamentarium industry
in India started in 1963 with the accession of Aggregation Trust of India, at the action of the Government
of India and Reserve Bank. The history of alternating funds in India can be broadly broken into four
aural phases: -

First Actualization – 1964-87

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An Act of Parliament acclimatized Aggregation Trust of India (UTI) on 1963. It was set up by the
Reserve Case of India and functioned below the Accurate and accurate advantage of the Reserve Case of
India. In 1978 UTI was de-linked from the RBI and the Industrial Development Case of India (IDBI)
took over the accurate and accurate advantage in address of RBI. The ancient adjustment launched by
UTI was Aggregation Adjustment 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets below
management.

Second Actualization – 1987-1993 (Entry of Attainable Breadth Funds)

1987 credible the admission of non- UTI, attainable breadth alternating funds set up by attainable breadth
banks and Life Insurance Corporation of India (LIC) and General Insurance

Corporation of India (GIC). SBI Alternating Armamentarium was the ancient non- UTI Alternating
Armamentarium acclimatized in June 1987 followed by Can case Alternating Armamentarium (Dec 87),
Punjab National Case Alternating Armamentarium (Aug 89), Indian Case Alternating Armamentarium
(Nov 89), Case of India (Jun 90), Case of Baroda Alternating Armamentarium (Oct 92). LIC
acclimatized its alternating armamentarium in June 1989 while GIC had set up its alternating
armamentarium in December 1990. At the end of 1993, the alternating armamentarium industry had
assets below administering of Rs.47, 004 cores.

Third Actualization – 1993-2003 (Entry of Artful Breadth Funds)

With the admission of artful breadth funds in 1993, a new era started in the Indian alternating
armamentarium industry, giving the Indian investors a added best of armamentarium families. Also, 1993
was the year in which the ancient Alternating Armamentarium Regulations came into being, below
which all alternating funds, except UTI were to be registered and governed. The ancient Kothari Pioneer
(now adulterated with Franklin Templeton) was the ancient artful breadth alternating armamentarium
registered in July 1993.

Fourth Actualization – aback February 2003

In February 2003, after the abolishment of the Aggregation Trust of India Act 1963 UTI was angled into
two absent entities. One is the Specified Undertaking of the Aggregation Trust of India with assets below
administering of Rs.29, 835 crores as at the end of January 2003, apery broadly, the assets of US 64
scheme, assured acceptance and complete added schemes. The Specified Undertaking of Aggregation
Trust of India, action below an agent and below the rules afflicted by Government of India and does

18
not arise below the abuttals of the Alternating Armamentarium Regulations.

The added is the UTI Alternating Armamentarium Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions below the Alternating Armamentarium Regulations. With the
bifurcation of the ancient UTI which had in March 2000 added than Rs.76, 000 crores of assets below
administering and with the ambient up of a UTI Alternating Fund, befitting to the SEBI Alternating
Armamentarium Regulations, and with abreast mergers demography address a allotment of adapted artful
breadth funds, the alternating armamentarium industry has entered its acclimatized actualization of
accord and growth. As at the end of September, 2004, there were 29 funds, which administrate assets of
Rs.153108 crores below 421 schemes.

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 TYPES OF MUTUAL FUND SCHEMES

In India, there are abounding companies, both accessible and clandestine that are affianced in

the trading of alternate funds. Wide varieties of Alternate Fund Schemes abide to baby to the needs such

as banking position, accident altruism and acknowledgment expectations etc. Investment can be

fabricated either in the debt Securities or disinterestedness .The table beneath gives an overview into the

absolute types of schemes in the Industry.

Figure 1.3

Equity Funds

Equity funds are advised to be the added chancy funds as compared to added armamentarium types, but
they aswell accommodate college allotment than added funds. It is appropriate that an broker searching
to advance in an disinterestedness armamentarium should advance for continued term

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i.e. for 3 years or more. There are altered types of disinterestedness funds anniversary falling into altered
accident bracket. In the adjustment of abbreviating accident level, there are afterward types of
disinterestedness funds:

a. Aggressive Advance Funds - In Aggressive Advance Funds, armamentarium managers aspire for best
basic acknowledgment and advance in beneath researched shares of abstract nature. Because of these
abstract investments Aggressive Advance Funds become added airy and thus, are decumbent to college
accident than added disinterestedness funds.

b. Growth Funds - Advance Funds aswell advance for basic acknowledgment (with time border of 3 to 5
years) but they are altered from Aggressive Advance Funds in the faculty that they advance in companies
that are accepted to beat the bazaar in the future. After absolutely adopting abstract strategies, Advance
Funds advance in those companies that are accepted to column aloft boilerplate balance in the future.

c. Specialty Funds - Specialty Funds accept declared belief for investments and their portfolio comprises
of alone those companies that accommodated their criteria. Belief for some specialty funds could be to
invest/not to advance in accurate regions/companies. Specialty funds are concentrated and thus, are
analogously riskier than adapted funds.. There are afterward types of specialty funds:

i. Sector Funds: Disinterestedness funds that advance in a accurate sector/industry of the bazaar are
accepted as Area Funds. The acknowledgment of these funds is bound to a accurate area (say
Information Technology, Auto, Banking, Pharmaceuticals or Fast Moving Consumer Goods) which is
why they are added chancy than disinterestedness funds that advance in assorted sectors.

Foreign Balance Funds: Adopted Balance Disinterestedness Funds accept the advantage to advance in
one or added adopted companies. Adopted balance funds accomplish all-embracing about-face and
appropriately they are beneath chancy than area funds. However, adopted balance funds are apparent to
adopted barter amount accident and country risk.

Mid-Cap or Small-Cap Funds: Funds that advance in companies accepting lower bazaar assets than
ample assets companies are alleged Mid-Cap or Small-Cap Funds. Bazaar assets of Mid-Cap companies
is beneath than that of big, dejected dent companies (less than Rs. 2500crores but added than Rs.500
crores) and Small-Cap companies accept bazaar assets of beneath than Rs. 500crores. Bazaar Assets of a
aggregation can be affected by adding the bazaar amount of the company's allotment by the absolute
amount of its outstanding shares in the market. The shares of Mid-Cap or Small-Cap Companies are not

21
as aqueous as of Large- Cap Companies which gives acceleration to animation in allotment prices of
these companies and consequently, investment gets risky.

D.)Diversified Disinterestedness Funds - Except for a baby allocation of investment in aqueous money
market, adapted disinterestedness funds advance mainly in equities after any absorption on a accurate
sector(s). These funds are able-bodied adapted and abate sector-specific or company-specific risk.
However, like all added funds adapted disinterestedness funds too are apparent to disinterestedness
bazaar risk. One arresting blazon of adapted disinterestedness armamentarium in India is
Disinterestedness Affiliated Savings Schemes (ELSS). As per the mandate, a minimum of 90% of
investments by ELSS should be in equities at all times. ELSS investors are acceptable to affirmation
answer from taxable assets (up to Rs 1 lakh) at the time of filing the assets tax return. ELSS usually has a
lock-in aeon and in case of any accretion by the broker afore the accomplishment of the lock-in aeon
makes him accountable to pay assets tax on such income(s) for which he may accept accustomed any tax
exemption(s) in the past.

e.)Equity Base Funds - Disinterestedness Base Funds accept the cold to bout the achievement of a
specific banal bazaar index. The portfolio of these funds comprises of the aforementioned companies that
anatomy the base and is constituted in the aforementioned admeasurement as the index. Disinterestedness
base funds that chase ample indices (like S&P CNX Nifty, Sensex) are beneath chancy than
disinterestedness base funds that chase attenuated sectored indices (like BSE BANKEX or CNX Bank
Base etc). Attenuated indices are beneath adapted and therefore, are added risky.

Value Funds - Value Funds advance in those companies that accept complete fundamentals and whose
allotment prices are currently under-valued. The portfolio of these funds comprises of shares that are
trading at a low Amount to Earning Ratio (Market Amount per Allotment / Earning per Share) and a low
Bazaar to Book Value (Fundamental Value) Ratio. Value Funds may baddest companies from adapted
sectors and are apparent to lower accident akin as compared to advance funds or specialty funds. Value
stocks are about from alternate industries (such as cement, steel, amoroso etc.) which accomplish them
airy in the short-term. Therefore, it is appropriate to advance in Value funds with a abiding time border
as accident in the continued term, to a ample extent, is reduced.

Equity Assets or Dividend Yield Funds - The cold of Disinterestedness Assets or Dividend Yield
Disinterestedness Funds is to accomplish top alternating assets and abiding basic acknowledgment for
investors by advance in those companies which affair top assets (such as Power or Utility companies
whose allotment prices alter analogously bottom than added companies' allotment prices).

22
Disinterestedness Assets or Dividend Yield Disinterestedness Funds are about apparent to the everyman
accident akin as compared to added disinterestedness funds.

a. Growth-and-Income Funds - Funds that amalgamate appearance of advance funds and assets funds are
accepted as Growth-and-Income Funds. These funds advance in companies accepting abeyant for basic
acknowledgment and those accepted for arising top dividends. The akin of risks complex in these funds
is lower than advance funds and college than assets funds.

b. Asset Allocation Funds - Alternate funds may advance in banking assets like equity, debt, money
bazaar or non-financial (physical) assets like absolute estate, bolt etc.. Asset allocation funds accept a
capricious asset allocation action that allows armamentarium managers to about-face over from one asset
chic to addition at any time depending aloft their angle for specific markets. In added words,
armamentarium managers may about-face over to disinterestedness if they apprehend disinterestedness
bazaar to accommodate acceptable allotment and about-face over to debt if they apprehend debt bazaar to
accommodate bigger returns. It should be acclaimed that switching over from one asset chic to addition
is a accommodation taken by the armamentarium administrator on the base of his own acumen and
compassionate of specific markets, and therefore, the success of these funds depends aloft the
accomplishment of a armamentarium administrator in anticipating bazaar trends.

2. Commodity Funds

Those funds that focus on advance in altered bolt (like metals, aliment grains, awkward oil etc.) or article
companies or article futures affairs are termed as Article Funds. A article armamentarium that invests in
a individual article or a accumulation of bolt is a specialized article armamentarium and a article
armamentarium that invests in all accessible bolt is a

Diversified article armamentarium and bears beneath accident than a specialized article fund. "Precious
Metals Fund" and Gold Funds (that advance in gold, gold futures or shares of gold mines) are accepted
examples of article funds.

3. Real Acreage Funds

Funds that advance anon in absolute acreage or accommodate to absolute acreage developers or advance
in shares/securitized assets of apartment accounts companies, are accepted as Specialized Absolute
Acreage Funds. The cold of these funds may be to accomplish approved assets for investors or basic
appreciation.

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4. Exchange Traded Funds (ETF)

Exchange Traded Funds accommodate investors with accumulated allowances of a closed- end and an
open-end alternate fund. Barter Traded Funds chase banal bazaar indices and are traded on banal
exchanges like a individual banal at base affiliated prices. The better advantage offered by these funds is
that they action diversification, adaptability of captivation a individual allotment (tradable at base
affiliated prices) at the aforementioned time. Recently alien in India, these funds are absolutely accepted
abroad.

5. Fund of Funds

Mutual funds that do not advance in banking or concrete assets, but do advance in added alternate
armamentarium schemes offered by altered AMCs, are accepted as Armamentarium of Funds.
Armamentarium of Funds advance a portfolio absolute of units of added alternate armamentarium
schemes, just like accepted alternate funds advance a portfolio absolute of equity/debt/money bazaar
instruments or non-banking assets.

24
 CHAPTER-3

COMPANY PROFILE

INDUSTRY PROFILE

25
 ABOUT THE COMPANY

Kotak Balance Limited, a accessory of Kotak Mahindra Bank, is the banal broking and administration
arm of the Kotak Mahindra Group. The aggregation was set up in 1994. Kotak Balance is a accumulated
affiliate of both The Bombay Banal Barter and The Civic Banal Barter of India Limited. Its operations
awning banal broking and administration of assorted banking articles - including clandestine and
accessory adjustment of debt and disinterestedness and alternate funds. Currently, Kotak Balance is one
of the bigger broking houses in India with advanced bounded reach. The aggregation has four basic areas
of business: (1) Institutional Equities, (2) Retail (equities and added banking products), (3) Portfolio
Administration and (4) Archive Services.

• INSTITUTIONAL BUSINESS

This assay primarily covers accessory bazaar broking. It caters to the needs of adopted and Indian
institutional investors in Indian equities (both bounded shares and GDRs). The assay aswell incorporates
a absolute assay corpuscle with sectoral analysts who awning all the above areas of the Indian economy.

• CLIENT MONEY MANAGEMENT

This assay provides able portfolio administration casework to top net-worth individuals and corporates.
Its ability in assay and banal broking gives the aggregation the appropriate angle from which to
accommodate its audience with investment advising services.

• RETAIL DISTRIBUTION OF FINANCIAL PRODUCTS

Kotak Balance has a absolute retail administration network, absolute 870 offices (own and franchisees)
beyond 309 cities and towns, appliance 590,000 customers. This arrangement is acclimated for the
administration and adjustment of a ambit of banking articles that includes aggregation anchored deposits,
alternate funds, Antecedent Accessible Offerings, accessory debt and disinterestedness and baby
accumulation schemes.

DEPOSITORYSERVICES

Kotak Balance is a archive actor with the Civic Balance Archive Limited and Central Archive Casework
(India) Limited for trading and adjustment of dematerialised shares. Since it is aswell in the broking

26
business, investors who use its archive casework get a bifold benefit. They are able to use its allowance
casework to assassinate affairs and its archive casework to achieve these.

Kotak Securities' width, aggregate and superior of offerings consistently access it accolades from
industry monitors. In contempo times, these accept included:

• Asiamoney Brokers Poll: Best Bounded Allowance (2009, 2008, 2007 & 2006)

• Asiamoney Brokers Poll: Best Analyst in India - Sanjeev Prasad (2009, 2008, 2007, 2006 & 2005)

• FinanceAsia: Best Agent in India (2010 & 2009)

Kotak Balance accept been accouterment abounding articles and casework which accept now become
industry standards. Some of them are:

• Facility of Allowance Accounts to the barter for online banal trading

• Advance in IPOs and Alternate Funds on the buzz SMS alerts afore beheading of archive affairs

• Mobile appliance to clue portfolio of your investments in banal bazaar

• AutoInvest - A analytical advance plan in Equities and Alternate funds

• Provision of allowance adjoin balance automatically adjoin shares in your Demat annual

Kotak Balance has a full-fledged assay analysis complex in Macro Economic studies, Sectoral assay and
Aggregation Specific Disinterestedness Assay which publishes all-embracing banal bazaar analysis. This
accumulated with a able and able-bodied networked sales force which helps bear accepted and up to date
bazaar advice and news.

Kotak securites are aswell a archive actor with Civic Balance Archive Limited (NSDL) and Central
Archive Casework Limited (CDSL), accouterment bifold annual casework wherein the investors can
account our banal broking casework for active the affairs and the archive casework for clearing them. We
action added than 400000 trades a day which is abundant college even than some of the acclaimed all-
embracing brokers.

Their arrangement spans over 400 cities with 1200 outlets.

27
Kotak Balance Limited has Rs. 2250 crore of Assets Beneath Administration (AUM) as of 30th June,
2010. The portfolio Administration Account provides top chic service, accouterment to the top end of the
market. Portfolio Administration from Kotak Balance comes as an acknowledgment to those who would
like to abound exponentially on the acme of the banal market, with the abetment of an expert.

Vision

Our eyes is to be the a lot of admired aggregation in the banking casework space.

Kotak balance ltd. Reports unaudited balance after-effects for the third division and nine months
concluded December 31, 2010

01/20/2011

Kotak balance ltd. Appear unaudited balance after-effects for the third division and nine months
concluded December 31, 2010. For the quarter, the aggregation appear absolute assets of inr 1,957 actor
adjoin inr 1,927 actor a year ago. Accumulation afore tax was inr 709 actor adjoin inr 909 actor a year
ago. Accumulation afterwards tax was inr 466 actor adjoin inr 592 actor a year ago. For the nine months,
the aggregation appear absolute assets of inr 5,681 actor adjoin inr 6,506 actor a year ago. Accumulation
afore tax was inr 2,156 actor adjoin inr 3,197 actor a year ago. Accumulation afterwards tax was inr
1,458 actor adjoin inr 2,093 actor a year ago.

Kotak balance ltd. Expected to abode budgetary year 2011 after-effects on may 5, 2011. This accident
was affected by basic iq (created on baronial 13, 2010).

08/13/2010

Kotak balance ltd. Expected to abode budgetary year 2011 after-effects on may 5, 2011. This accident
was affected by basic iq (created on baronial 13, 2010).

Kotak balance ltd. Reports balance after-effects for the fourth division and abounding year concluded
advance 31, 2010

05/11/2010

Kotak balance ltd. Appear balance after-effects for the fourth division and abounding year concluded
advance 31, 2010. For the quarter, the aggregation appear accumulation afterwards tax of inr 510 actor
compared to inr 180 actor for the aforementioned aeon endure year. For the abounding year, the
28
aggregation appear accumulation afterwards tax of inr 2,600 actor compared to inr 1,070 actor for the
same

aeon endure year.

KEY EXECUTIVES

Mr. S. A. Narayan

Managing director

Mr. D. Kannan

Managing director

Mr. Amitabh chakraborty

Vice admiral and arch of research

Trivikram kamath

Executive carnality president

Sandeep chordia

Company secretary

Hat are the basics of banking instruments?

Let us accept the two axiological types of investments, namely bonds and stocks with an example. Eg.
Imagine you wish to alpha your own grocery store. You will charge a basic bulk to get started. You
access the requisite funds from a acquaintance and abode down a cancellation of this accommodation ' i
owe you rs 1, 00,000 and will accord you the arch accommodation bulk additional 5% interest'. Your
acquaintance has just bought a band (iou) by lending money to your company.

Thus a band is a agency of advance money by lending money to others. If you advance in bonds, the
band you buy will appearance the bulk of money getting adopted (face value), the absorption bulk
(coupon bulk or yield) that the borrower has to pay, the absorption payments (coupon payments), and the
borderline for paying the money aback (maturity dates).

29
There are several pro's and con's to advance in bonds

Ø bonds accord college absorption ante compared to concise investments.

Ø bonds are beneath chancy if compared to stocks.

Ø selling bonds afore they're due, may aftereffect in a loss, accepted as a discount.

Ø if the issuer of the band declares bankruptcy, you may lose your money. Hence you accept to
alarmingly appraise the believability of the issuer of the bond, ensuring that he has the adequacy to
accord the band amount.

Now, let us abide with the aforementioned example. To accumulate added basic for your new grocery
store, you advertise bisected your aggregation to your brother for rs 50,000. You put this transaction in
autograph 'my new aggregation will affair 100 shares of stock. My brother will buy 50 shares for rs
50,000.' thus, your brother has just bought 50% of the shares of banal of your company.

Thus, to explain stocks:

Stocks, aswell accepted as equities, are shares in a company. It is the affidavit of buying of a corporation.
In simple terms, if you advance in a company's banal or buy its shares, you own allotment of a company.
Thus, as a stockholder, you allotment a allocation of the accumulation the aggregation may make, as
able-bodied as a allocation of the accident a aggregation may take. As the aggregation keeps
accomplishing better, your stocks will access in bulk and crop college dividends.

Dividend: a sum of money, bent by a company's directors, paid to shareholders of a association out of its
earnings. This archetype covers the 2 above types of investments: bonds and stocks

Rewinding aback to the banal bazaar trading history of India

In the beforehand days, stockbrokers kept aloof for 'natural' sites to conduct their trading activities, alive
from one set of banyan copse to another. As the amount of brokers kept accretion and the streets kept
overflowing, they artlessly had no best but to backpack from one abode to another.

Finally in 1854, trading in india begin a abiding address, dalal street, now alike with the oldest banal
barter in asia, the bombay banal exchange. With a ancestry that goes aback to over 130 years, bse was the
aboriginal banal barter in the country to be accepted abiding acceptance beneath the balance arrangement
adjustment act, 1956. The barter has played a beat role in the development of the indian balance bazaar -
30
one of the oldest in the world. Afterwards india acquired independence, the bse formulated a absolute set
of guidelines adopted by the indian basic markets. Even today, the bse sensex charcoal one of the ambit
adjoin which the robustness of the indian abridgement and accounts is measured.

The trading book in india again underwent a archetype about-face in 1993, if nse or civic banal barter
was accustomed as a banal exchange. Within just a few years, trading on both the exchanges confused
from an accessible clamor arrangement to an automatic trading environment.

Today, the indian balance bazaar auspiciously keeps clip with its all-around counterparts through the use
of avant-garde day technology.

Banal Bazaar Milestones

1875 bse accustomed as 'the built-in allotment and banal brokers association'

1956 bse became the aboriginal banal barter to be accustomed beneath the balance arrangement act.

1993 nse accustomed as a banal exchange.

2000 admission of internet trading at nse.

2000 nse commences derivatives trading (index futures)

2001 bse commences derivatives trading

Primary and accessory markets

Primary market

An issuer/company enters the primary markets to accession capital. They issues new balance in barter for
banknote from an agent (buyer). If the issuer is affairs balance for the aboriginal time, these are referred
to as antecedent accessible offers (ipo's). Summing up, primary bazaar is the agency by which companies
float shares to the accepted accessible in an antecedent accessible alms to accession capital.

Eg. If the promoters of a clandestine company, say xyz makes its shares accessible to investors,
aggregation xyz is said to accept entered the primary market.

Accessory Markets

31
Once new balance accept been awash in the primary market, an able apparatus accept to abide for their
resale, if investors are to appearance balance as adorable opportunities. Accessory bazaar affairs are
referred to those affairs area one agent buys shares from addition agent at the prevailing bazaar amount
or at whatever amount both the client and agent accede upon. The accessory bazaar or the banal
exchanges are adapted by the authoritative authority. In india, the accessory and primary markets are
absolute by the aegis and barter lath of india (sebi).

32
 INDUSTRY PROFILE
FINANCIAL MARKETS

Finance is the pre-requisite for avant-garde business and banking institutions play a basal role in the
bread-and-butter system. It is through banking markets and institutions that the banking arrangement of
an abridgement works. Banking markets accredit to the institutional arrange for ambidextrous in banking
assets and acclaim instruments of altered types such as currency, cheques, coffer deposits, bills, bonds,
equities, etc.

Financial bazaar is a ample appellation anecdotic any barter area buyers and sellers participate in the
barter of assets such as equities, bonds, currencies and derivatives. They are about authentic by accepting
cellophane pricing, basal regulations on trading, costs and fees and bazaar armament free the prices of
balance that trade.

Generally, there is no specific abode or area to announce a banking market. Wherever a banking
transaction takes place, it is accounted to accept taken abode in the banking market. Hence banking
markets are common in attributes back banking affairs are themselves actual common throughout the
bread-and-butter system. For instance, affair of disinterestedness shares, acceding of accommodation by
appellation lending institutions, drop of money into a bank, acquirement of debentures, auction of shares
and so on.

In a nutshell, banking markets are the acclaim markets accouterment to the assorted needs of the
individuals, firms and institutions by facilitating affairs and affairs of banking assets, claims and services.

Capital Market

The basic bazaar is a bazaar for banking assets which accept a continued or broad maturity. Generally, it
deals with continued appellation balance which accept a aeon of aloft one year. In the widest sense, it
consists of a alternation of channels through which the accumulation of the association are fabricated
accessible for automated and bartering enterprises and accessible authorities. As a whole, basic bazaar
facilitates adopting of capital.

33
The above functions performed by a basic bazaar are:

1. Mobilization of banking assets on a nation-wide scale.

2. Securing the adopted basic and ability to ample up arrears in the appropriate assets for bread-and-
butter advance at a faster rate.

3. Effective allocation of the mobilized banking resources, by administering the aforementioned to

projects acquiescent accomplished crop or to the projects bare to advance counterbalanced bread-and-
butter development.

Capital bazaar consists of primary bazaar and accessory market.

Primary market: Primary bazaar is a bazaar for new issues or new banking claims. Hence it is aswell
alleged as New Affair Market. It basically deals with those balance which are issued to the accessible for
the aboriginal time. The market, therefore, makes accessible a new block of balance for accessible
subscription. In added words, it deals with adopting of beginning basic by companies either for banknote
or for application added than cash. The best archetype could be Initial Accessible Offering (IPO) area a
close offers shares to the accessible for the aboriginal time.

Secondary market: Accessory bazaar is a bazaar area absolute balance are traded. In added words,
balance which accept already anesthetized through new affair bazaar are traded in this market. Generally,
such balance are quoted in the banal barter and it provides a connected and approved bazaar for affairs
and affairs of securities. This bazaar consists of all banal exchanges accustomed by the government of
India.

34
 A STUDY ON

COMPARATIVE STUDY OF ULIPS &

MUTUALFUNDS

35
 DATA ANALYSIS

1. Age
a) 18-25
b) 26-30
c) 31-45
d) 45 above

Options Respondents Percentage

18-25 32 48%

26-30 26 39%

31-45 8 12%

45 above 0 0%

Total 66 100%

AGE
18-25 26-30 31-45 45above

0, 0%
8, 12%

32, 49%

26, 39%

INTERPRETATION:
For the above graph shows 18-25 age investors are very much interested to provide
their information about investment.

36
2. Gender
A) Male
B) Female

Options Respondents Percentage

Male 51 77%

Female 15 23%

Total 66 100%

Gender

15

Male
Female

51

INTERPRETATION:

For the above graph shows 77% of male investors provided their information about
investment in the market.

37
3. Occupation
a) Service
b) Business
c) Professional
d) Student
e) Farmer
f) Banker

Options Respondents Percentage

Service 8 12%

Business 5 8%

Professional 39 51%

Student 12 18%

Farmer 1 2%
Banker 1 2%

Total 66 100%

Occupation
45
39
40
35
30
25
20
15 12
10 8
5
5 1 1
0
1

service business professional student formar banker

Interpretation:
The above graph shows more respondents occupation is professional i.e. 51%.

a) Less than l Lac

b) 1Lac – 3Lac
c) 3Lac -5 Lac
38
 d) 5 Lac above

Options Respondents Percentage

Less than 1L 18 27%

1L to 3L 9 14%

3L to 5L 9 14%

5L above 30 46%

Total 66 100%

ANNUAL INCOME
Less than 1L 1L to 3L 3L to 5L 5L aboue

18, 27%

30, 45%

9, 14%

9, 14%

Interpretation:

The above graph shows the respondents whose annual income is 5Lac above are 46%.

39
5. What type of return you expect?
A) Monthly
B) Quarterly
C) Semiannual
D) Annual

Options Respondents Percentage

Monthly 25 38%
Quarterly 10 15%

Semi annual 7 11%

Annual
income 24 36%

Total 66 100%

30
25
25 24

20

15
10
10
7

0
respondents

monthly Quaterly semi annual Annual income

Interpretation:
From the investor‘s point of view, maximum investors are interested to have monthly return i.e. 38%
which is highest in remaining all.

40
6. Most preferred form of investment?

A) ULIPS
B) Mutual Funds
C) Post Office
D) Equity Trading

Options Respondents Percentage

ULIPS 3 5%

Mutual funds 46 70%

Post office 13 20%

Equity trading 4 6%

Total 66 100%

Investment
50 46
45
40
35
30
25
20
15 13

10
3 4
5
0
ULIPS Mutual funds Post office Equity trading

Interpretation:
Most of investors are interested in all the different types of investment policy. But from the
above it clearly indicates that Mutual Funds has more investment then compare to others i.e.
70%.

7. How long do you plan to stay invested in ULIP?

A) 3-5 years
B) 5-7 years
C) 7-10 years
D) 10-20 years

41
 Options Respondents Percentage

3 - 5 years 48 73%
5-7 years 8 12%

7 -10 years 4 6%

10 -20 years 6 9%

Total 66 100%

ULIP

6
4

48

3 - 5 years 5-7 years 7 -10 years 10 -20 years

v

Interpretation:
From the above its clearly indicates that mostly investors are interested for period of 3-5
years, so that there can get back the returns. It shows 3-5 years i.e.73%.

42
8. Which factor do you consider before investing in mutual fund or ULIPS?
A) Safety of principal
B) Low risk
C) Higher returns
D) Maturity period
Percentag
Options Respondents e

Safety of principal 17 26%

Low risk 18 27%

Higher returns 24 36%

Maturity period 7 11%

Total 66 100%

Investing
30
24
25
20 17 18
15
10 7
5
0
respondents

safety of principal low risk Higher returns mturity period

Interpretation:
Mostly people before investing in any securities whether it’s may be Mutual Funds or
ULIPs are interested to have higher returns i.e. 36%

43
9. What percentage of your income do you invest?

A) 0-5%
B) 5-10%
C) 10-15
D) 15-25%
E) More than 25%

Options respondents percentage

0-5% 16 24%

5-10% 26 39%
10-15% 10 15%

15-20% 9 14%
20-25% 5 8%

total 66 100%

Invest

5
16
9

10

26

0-5% 5-10% 10-15% 15-20% 20-25%

Interpretation:
The above graph shows Income Oriented for investment 5-10% very attracted to make
investment.

44
10. Imagine that stock market drops immediately after you invest in it then what will you do?

A) Withdraw your money

B) Wait and Watch
C) Invest more

Options Respondents Percentage

Withdraw your
money 8 12%

Wait and watch 39 59%

Invest more 19 29%

Total 66 100%

19

39

withdraw your money wait and watch invest more

Interpretation:

Mostly investors who have invested money in shares will wait and watch. In the hope that market will
grow. So 59% i.e. majority of investor‘s waits and watch.

45
11. Have you invested in mutual Funds
a) Yes
b) No
Options Respondents Percentage

yes 34 52%
no 32 49%

32
34

yes no

Total 66 100%

INTERPRETATION:

The above graph shows 52% said that yes making investment in mutual funds.

46
12. If yes, what is your source of information while investing in mutual Funds
a) Internet
b) Advertisement
c) Newspaper
d) Financial Advisor
d) Friends
e) Not heard about it
f) My father and relatives

Options Respondents Percentage

Internet 18 27%
Advertisement 7 11%

News paper 2 3%
Financial advisor 11 17%

Friends 22 33%

Not heard about it 5 8%

From my father and

relatives 1 2%

Total 66 100%

25 22

20 18

15
11
10 7
5
5 2 1
0
respondents

internet advertisement
news paper financial advisor
friends not heard about it
from my father and relatives

INTERPRETATION:

The above graph shows sources of mutual funds through their friends i.e. 33%.
47
13. If yes, which companies mutual fund you have taken
a) Only investment
b) Good returns
c) Liquidity
d) Not yet invested
Options Respondents Percentage

only investment 9 14%

Good returns 30 46%

Liquidity 3 5%

35

30

25

20

15

10

0
respondents

only investment Good returns Liquidity Not at invested

Not at invested 24 36%

Total 66 100%

INTERPRETATION:

The above graph shows about the respondents are most interested in policies
which gives good returns (46%).

48
14. Do you know about ULIP Insurance
a) Yes
b) No

Options Respondents Percentage

Yes 42 64%

No 24 36%

Total 66 100%

24

42

Yes No

INTERPRETATION:

The above graph shows about most people are aware of Ulips i.e. 64%.

49
15. In which sector do you prefer to invest your money
a) Government sector
b) Private sector

Options Respondents Percentage

government sector 40 61%

private sector 26 39%

total 66 100%

26

40

government sector private sector

INTERPRETATION:

Most of the people invest their money in both the sector, but majority of people
interested to invest their money in Government sector i.e. 61%.

50
16. How long do you plan to stay invested in ULIP
A) 3-5 years
B) 5-7 years
C) 7-10 years
D) 10-20 years

Options Respondents Percentage

3 - 5 years 48 73%
5-7 years 8 12%

7 -10 years 4 6%
10 -20 years 6 9%

Total 66 100%

60

50 48

40

30

20

10 8
6
4

0
respondents

3 - 5 years 5-7 years 7 -10 years 10 -20 years

INTERPRETATION:

From the above its clearly indicates that mostly investors are interested for
period of 3-5 years, so that there can get back the returns. It shows 3-5 years
i.e.73%.

51
17. Do you have taken kotak ULIP insurance policy
a) Yes
b) No
Options Respondents Percentage

Yes 15 23%
No 51 77%

15

51

yes no

Total 66 100%

INTERPRETATION:

The above graph shows 23% respondents are already invested in Kotak Ulip
Policy and they are happy about it.

52
18. If yes, what is the main reason to invest in Kotak securities ULIP
a) Innovative products
b) Good returns
c) Good brand name
d) Good marketing strategy
e) Not yet invested
f) Not applied

Options Respondents Percentage

Innovative products 1 2%

Good returns 14 21%

Good brand name 6 9%

Good marketing strategy 5 8%

Not yet invested 39 59%

Not applied 1 2%

Total 66 100%

45
39
40
35
30
25
20
14
15
10 6 5
5 1 1
0
respondents

innovative products good returns good brand name

good marketing strategy not yet invested not applied

INTERPRETAYION:

INTERPRETAYION The above graph shows the main cause of putting here in
kotak good returns (21%) few of members said not yet invested (59%)

53
19. If yes, How would you rate Kotak securities insurance ULIP
a) Fair
b) Average
c) Good
d) Best
e) Don’t know
f) Not applied

Options Respondents Percentage

Fair 1 2%

Average 5 8%
Good 12 18%

Best 7 11%

Don’t know 40 61%

Not applied 1 2%

Total 66 100%

11 5

12

40 7

fair average Good best don’t know not applied

INTERPRETATION:

The above graph shows rating of kotak insurance policy has taken after seeing
this (18%) happy to say.

54
 FINDINGS
I begin acutely indicates that mostly investors are absorbed for aeon of 3-5 years, so that
there can get aback the returns. It shows 3-5 years i.e.73%.

 23% respondents are already invested in KotakUlip Policy and they are blessed about it.

 Most of the humans advance their money in both the sector, but majority of humans
absorbed to advance their money in Government area i.e. 61%.

 I advised that about the respondents are a lot of absorbed in behavior which gives
acceptable allotment (46%).

 The aloft blueprint shows 52% said that yes authoritative investment in alternate funds.

 18-25 age investors are actual abundant absorbed to accommodate their advice about
investment’

 its acutely indicates that mostly investors are absorbed for aeon of 3-5 years, so that there
can get aback the returns. It shows 3-5 years i.e.73%.

 Mostly investors who accept invested money in shares will delay and watch. In the
achievement that bazaar will grow. So 59% i.e. majority of investor‘s waits and watch.

55
 SUGGESTIONS

A alternate armamentarium is the ideal investment car for today‘s circuitous and avant-garde
banking scenario. Markets for disinterestedness shares, bonds and added fixes assets
instruments, absolute estate, derivatives and added assets accept become complete and advice
driven. Today anniversary and every getting is absolutely acquainted of every affectionate of
investment proposal. Everybody wants to advance money, which advantaged of low risk, top
allotment and simple redemption. In my assessment afore advance in alternate funds, one
should be absolutely acquainted of anniversary and everything.

At the aforementioned time Ulips as an investment access is acceptable for humans who
accept absorption in blockage for a best aeon of time, that is about 10 years and above.
Aswell in the advancing times, Ulips will abound faster. Ulips are in fact getting publicized
added and aswell the added acceptable award behavior are acceptable airedale because of
lower absorption rate. It is acceptable for humans who were advance in ULIP behavior of
allowance companies as their investments acquire them a bigger acknowledgment than the
added policies.

56
 CONCLUSION

The admeasurement of the bazaar has developed and the admeasurement of the insurable
citizenry in India is absolutely huge and the absolute amateur has managed to awning about
division of it. The opportunities afore the players are, therefore, huge in agreement of
ambition audience. The falling absorption rates, the collapse of abounding bush cyberbanking
institutions, the ambit for entering accompanying areas like cyberbanking and pensions in a
bid for synergy and the affiance of E-Commerce accommodate opportunities for the new
articles like ULIP’s in the allowance bazaar as it gives top allotment and allowance advantage
to the customers. As it provides allowances of alternate funds and award affairs a lot of of the
humans like to yield a policy. Life allowance has today become a amount of bazaar
abridgement back it offers affluence of ambit for breeding ample sum of money with the time
by alms its barter absolute articles to amuse their cyberbanking need. It is, therefore, capital
to advance in allowance area if we wish to accept a worry-free future.

57
 Questionnaires
1. Age
 18-25
 26-30
 31-45
 45 above

2. Gender
A) Male
B) Female
3. Occupation
a) Service
b) Business
c) Professional
d) Student
e) Farmer
f) Banker
4. Annual Income
a) Less than l Lac
b) 1Lac – 3Lac
c) 3Lac -5 Lac
d) 5 Lac above

5. What type of return you expect?

A) Monthly
B) Quarterly
C) Semiannual
D) Annual
6. Most preferred form of investment?
 ULIPS
 Mutual Funds
 Post Office

58
  Equity Trading
7. How long do you plan to stay invested in ULIP?
 3-5 years
 5-7 years
 7-10 years
 10-20 years
8. Which factor do you consider before investing in mutual fund or ULIPS?
 Safety of principal
 Low risk
 Higher returns
 Maturity period
9. What percentage of your income do you invest?
A) 0-5%
B) 5-10%
C) 10-15
D) 15-25%
10. Imagine that stock market drops immediately after you invest in it then what will you do?
A) Withdraw your money
B) Wait and Watch
C) Invest more
11. Have you invested in mutual Funds?
 Yes
 No
12. If yes, what is your source of information while investing in mutual Funds
 Internet
 Advertisement
 Newspaper
 Financial Advisor
 Friends
 Not heard about it
 My father and relatives

13. If yes, which companies mutual fund you have taken

o Only investment
o Good returns
o Liquidity
o Not yet invested

59
14. Do you know about ULIP INSURANCE?
a) Yes
b) No
15. In which sector do you prefer to invest your money?
 Government sector
 Private sector
 Options Respondents Percentage
 government sector
 private sector
16. How long do you plan to stay invested in ULIP?
 3-5 years
 5-7 years
 7-10 years
 10-20 years
17. Do you have taken kotak ULIP insurance policy?
 Yes
 No
18. If yes, what is the main reason to invest in Kotak securities ULIP?

o Innovative products
o Good returns
o Good brand name
o Good marketing strategy
o Not yet invested
o Not applied
19. If yes, How would you rate Kotak securities insurance ULIP
 Fair
 Average
 Good
 Best
 Don’t know

60