A project report on COMPARATIVE ANALYSIS OF MUTUAL FUND AND ULIPS

By SAHIL DHALL 10BSP1059

name of sip organisation HDFC BANK

A report on COMPARATIVE ANALYSIS OF MUTUAL FUND AND ULIPS

Name of sip organisation HDFC BANK

A report submitted on partial fulfilment of the requirements At Ibs- chandigarh

Date of submission- 8th april 2011

Submitted by submitted to Sahil dhall DIWAN 10BSP1059 faculty prof. sudhir ibs

ABSTRACT
The project aims at comparative analysis of mutual funds & unit linked investment plans. Analyse insurance as an investment option/avenue. To calculate the risk and return profile of ULIP & Mutual Funds . The project has a detailed study of various insurance plans offered by the major players in the insurance sector. Made a comparative analysis of the of HDFC life insurance plans with that of other major players. Carried out an in-depth study of all the major mutual funds available in the market & analyse their performance since their inception. To make a comparison between the performances of mutual funds with that of unit linked investment plans (ULIP).The report include case studies in order to illustrate the comparison between different ULIP schemes with Mutual fund schemes. The project aims to help understand the consumer behaviour towards various financial services like insurance and mutual funds. The report enhances the knowledge on how various marketing concepts learned in the classroom are implemented in a real life environment. The project required me design a questionnaire and to do a primary survey on investor perception towards ULIP & mutual Funds available in the market. The target respondents of the primary survey were managers, executives and consultant working for life insurance companies. The individual project assigned to me entitles me to calculate the risk & return profile of the ULIP plans & mutual funds available in the market. The mathematical techniques that are to be used for calculating the risk and return profile are beta values, variance, Sharpe ratio & standard deviations followed by graphically plotting the calculated values and make a comparative analysis of the data.

Table of content
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1.

Chapter 1
i. ii. iii. iv. Purpose of the Project Scope of the Project Limitations Methodology

2.

Chapter 2
i. About the Company

3.

Chapter 3
i. Introduction to Mutual Fund
ii. Concept of Mutual Fund

iii. History of Mutual Fund iv. Types of Mutual Fund

4.

Chapter 4
i. ii. iii. iv. Introduction to ULIPs Working of ULIP Types of ULIPs Features of ULIPs

5.

Chapter 5
i. Difference between Mutual Funds and ULIPs ii. Comparative analysis of Mutual funds Schemes iii. Comparative analysis of ULIPs schemes

6.

Chapter 6
i. References

Chapter 1
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Purpose of the project

To map the marketing & distribution strategy of HDFC fund

schemes and to compare various strategies used by various players in Life insurance sector. To do detailed analysis of the entire range of products/schemes offered by HDFC. It will help in making a detailed analysis of the spectrum of insurance products available in the market across the industry. To analyse the performance HDFC Mutual fund and Life insurance schemes, by calculating the Beta value, Sharpe ratio, standard deviation of the investments. To collect data through primary survey, using a comprehensively designed questionnaire and analysing the same for mapping the brand image of HDFC BANK and investor perception about the ULIP and mutual funds available in the market, and to identify the major factor that influence investor for choosing an insurance plan.

Scope of the project

The scope of the project is to get the knowledge of insurance, industry and its regulations from books, Internet and literature survey. This will give us in-depth knowledge about the insurance sector as a whole. Data collection regarding the market share, products & services offered by different life insurance company by visiting there corporate offices. This will help in identifying the Unique Selling Proposition (USP) of different players in the market. Collection of brochures and pamphlets of different products offered by different players and study them in order to compare and contrast the different insurance products across industry. It will to find out the best product available in the market, in its category. Sample selection (Random Sampling Technique) and designing of a questionnaire to collect primary data so as to map the investor perception regarding ULIP and Mutual funds available in the market. Sample selection (Random Sampling Technique) and designing of a questionnaire to collect primary data to do a brand image survey of HDFC BANK. The data collected is used to do descriptive analyses (Pie

charts and histogram) for mapping the brand image assessment of HDFC.

Limitations of the study

The scope of the project is limited to conceptual and marketing aspects of Life Insurance Companies and doesnt include Claim Settlement and the underwriting part of the operations which are equally important aspect of learning. Project is limited to HDFC BANK, which is branch dedicated to High Net-worth Individual .It excludes the analysis of low premium paying segment of the people. The major limitation was in terms of collecting the right information from the various insurance players, as the insurance players resist in revealing their marketing strategies, etc.

Methodology

Define the information needed:This first step states that what is the information that is actually required. Information in this case we require is that what is the approach of investors while investing their money in mutual funds and ulips e.g. what do they consider while deciding as to invest in which of the two i.e mutual funds or ulips. Also, it studies the extent to which the investors are aware of the various costs that one bears while making any investment. So, the information sought and information generated is only possible after defining the information needed.

Design the research:A research design is a framework or blueprint for conducting the research project. It details the

procedures necessary for obtaining the information needed to solve research problems.

Construct a questionnaire:A questionnaire is a formalized set of questions for obtaining information from respondents. Whereas pretesting refers to the testing of the questionnaire on a small sample of respondents in order to identify and eliminate potential problems. Sample Size For the purpose of the study, 50 potential investors in ulip and mutual funds were recruited as the sample. Data Collection Research is explanatory in nature, hence information was sought from primary and secondary data. o PRIMARY DATA Data was collected through questionnaire method, filled by the sample. o SECONDARY DATA Information from HDFC Bank ulip and mutual funds brochures, HDFC Bank Knowledge center i.e. online bank information, Business magazines and online articles regarding mutual funds and ulip

Chapter 2

About the company

HDFC BANK The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its

registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People. HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of 1,725 branches spread in 779 cities across India. All branches are linked on an online real-time basis. Customers in over 500 locations are also serviced through Telephone Banking.

Its strategy emphasis on: Increase our market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service.

Leverage our technology platform and open scalable systems to deliver more products to more customers and to control operating costs.

Maintain our current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract our targeted customers and address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce our cost of funds. Focus on high earnings growth with low volatility.

Chapter 3 Introduction to mutual fund

Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the fund is thus Mutual, i.e. the fund belongs to all investors. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. SEBI (Mutual Fund) Regulations 1993 defines Mutual Fund as :A fund established in the form of a trust by a sponsor to raise money by the trustees through the sale of units to the public under one or more schemes for investing securities in accordance with these regulations The rationale behind a mutual fund is that there are a large number of investors who lack the time and or the skills to manage their money. Hence, professional fund managers, acting on behalf of the Mutual Fund, manage the investments (investors money) for their benefit in return for a management fee. The organization that manages the investment is called the Asset Management Company (AMC). Thus, a Mutual Fund is the most suitable investment for the common person as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. Anybody with an investible surplus of as little as a few thousand rupees can invest
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in mutual fund .Each mutual fund scheme has defined investment objective and strategy.
Concept of Mutual Funds in India:

History of mutual funds

The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the industry. Indian mutual fund industry has seen dramatic improvements, both quality as well as quantity wise. 1. First phase (1964-1987) The Unit Trust if India (UTI) was established in the year 1963 by passing an act in the parliament. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI.
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The first scheme launched by UTI was Unit Scheme 1964, which is popularly known as US-64. At the end of 1988 UTI had Rs.6, 700 crores of assets under management (AUM). 2. Second phase (1987-1993) In the year 1987, public sector mutual funds setup by public sector banks, life insurance corporation of India and general insurance of India are came into existence. The end of 1993 marked Rs.47, 004 as assets under management (AUM). The following are the non-UTI mutual funds at their initial stages. 1. SBI mutual fund in June 1987. 2. Can bank mutual fund in December 1987. 3. LIC mutual fund in June 1989. 4. GIC mutual fund in June 1990 5. Punjab National Bank mutual fund in august 1989.

3. Third phase (1993-2003) Entry of private sector funds- a wide choice to Indian investors in mutual fund. 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores.

4. Fourth phase (since 2003 February) Following the repeal of the UTI act in February 2003, it was UTI bifurcated into 2 separate entities. One is the specified undertaking of the UTI with asset under management of Rs.29835/- crass at the end of January 2003 The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.

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At the end March 2000 UTI had more than Rs.76,000 crores of AUM. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

TYPE OF MUTUAL FUND SCHEMES

Wide variety of mutual fund schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. the table below gives an overview into the existing types of schemes in the industry. By structure Open-Ended schemes Close-Ended schemes Interval schemes By investment objectives Growth/Equity schemes General purpose Money market Guilt funds Balanced schemes Other schemes Tax saving schemes Sector specific schemes Open-ended schemes A type of mutual fund where there are no restrictions on the amount of shares the fund will issue. If demand is high enough the fund will continue to issue shares no matter how many investors there are. Open-end funds also buy back shares when investors wish to sell. Close-ended schemes Under this scheme the corpus of the fund and its duration are prefixed. In other words the corpus of the fund and the number of units are determined in advance. Once the subscription reaches the predetermined level, the entry of investors is closed. After the expiry of the fixed period, the entire corpus is disinvested and the proceeds are distributed to the various unit holders in proportion to their holdings. Interval schemes
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These schemes combine the features of open ended schemes. They may be traded on the stock exchange or may be open for sale or redemption during predetermined intervals at NAV based prices. Growth/Equity schemes These schemes also commonly called growth schemes, seek to invest a majority of their funds in equities and a small portion in money market instruments. Such schemes have the potential to deliver superior returns over the long term. However, because they invest in equities, these schemes are exposed to fluctuations in value especially in the short term. General Purpose Equity Schemes The investment objectives of general purpose equity schemes do not restrict them to invest in specific industries or sectors. They thus have a diversified portfolio of companies across a large spectrum of industries. Money Market Schemes These schemes invest in short term instruments such as commercial papers, certificates of deposits (CDS), treasury bills (T-bill) and overnight money (call). Guilt Funds These primarily invest in government debts. Hence, the investor usually does not have to worry about credit risk since government debt is generally credit risk free.Gilt Securities Fund - Short Term Gilt Plan & Long Term Gilt Plan are best example of such scheme. Balanced Schemes These schemes invest in both equities as well as debt. By investing in a mix of this nature, balanced schemes seek to attain the objective of income and moderate capital appreciation. Such schemes are ideal for investors with a conservative long term orientation.

Tax Saving Schemes Investors (Individuals and Hindu undivided families (HUFs)) are being encouraged to invest in equity markets through equity linked savings scheme (ELSS) by offering them a tax rebate.
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Sector specific equity schemes: These schemes restrict their investing to one or more pre defined sectors e.g. technology sector. They depend upon the performance of these select sectors only and are hence inherently more risky than general purpose equity schemes. These schemes are ideally suited for informed investors who wish to take a view and risk on the concerned sector.

Risk vs. Return

Chapter 4

Introduction ulips
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ULIPs are a category of goal-based financial solutions that combine the safety of insurance protection with wealth creation opportunities. In ULIPs, a part of the investment goes towards providing you life cover. The residual portion is invested in a fund which in turn invests in stocks or bonds. The value of investments alters with the performance of the underlying fund opted by you. Simply put, ULIPs are structured such that the protection element and the savings element can be distinguished and hence managed according to your specific needs, offering unprecedented flexibility and transparency.

WORKING OF ULIP
It is critical that you understand how your money gets invested once you purchase ULIP. Once you decide the amount of premium to be paid and the amount of life cover you want, the insurer deducts some portion of the premium upfront. This portion is known as the Premium Allocation charge and this varies from product to product. The rest of the premium is invested in the fund or mixture of funds chosen by you. Mortality charges and administration charges are thereafter deducted on a periodic (mostly monthly) basis whereas the fund management charges are deducted on a daily basis Since the fund of your choice has an underlying investment either in equity or debt or a combination of the two your fund value will reflect the performance of the underlying asset classes. At the time of maturity of your plan, you are entitled to receive the fund value as at the time of maturity. The pie-chart below illustrates the split of your ULIP premium in a graphical format.

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In addition to the investment fund ULIPs give you the benefit of insurance cover as well. The mortality charge mentioned above goes towards provision of this cover. Over a period of time, the component of charges as a percentage of the premium paid tends to decrease. Which is why, you should continue paying your premiums regularly. That is the best way of making your ULIP deliver on its dual benefit of protection and wealth creation.

Types of ulips
There are various unit linked insurance plans available in the market. However, the key ones are pension, children, group and capital guarantee plans. The pension plans come with two variations with and without life cover and are meant for people who want to generate returns for their sunset years. The children plans, on the other hand, are aimed at taking care of their educational and other needs.. Apart from unit-linked plans for individuals, group unit linked plans are also available in the market. The Group linked plans are basically designed
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for employers who want to offer certain benefits for their employees such as gratuity, superannuation and leave encashment. The other important category of ULIPs is capital guarantee plans. The plan promises the policyholder that at least the premium paid will be returned at maturity. But the guaranteed amount is payable only when the policy's maturity value is below the total premium paid by the individual till maturity. However, the guarantee is not provided on the actual premium paid but only on that portion of the premium that is net of expenses (mortality, sales and marketing, administration)

Features of ulips

Premiums paid can be single, regular or variable. The payment period too can be regular or variable. The risk cover can be increased or decreased.

As in all insurance policies, the risk charge (mortality rate) varies with age.

The maturity benefit is not typically a fixed amount and the maturity period can be advanced or extended. Investments can be made in gilt funds, balanced funds, money market
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funds, growth funds or bonds. The policyholder can switch between schemes, for instance, balanced to debt or gilt to equity, etc. \ Chapter 5

Difference between mutual funds and ulips

a) Expenses - Expenses incurred in a MF is lesser than the expenses of ULIPs. The reason is expenses in a mutual fund is capped, there is a pre-set upper limit, whereas for ULIPs no upper limit in terms of controlling the expenses is set by the insurance company. b) Tax benefits - Any investment made in ULIP qualifies under 80 C of income tax act, where an investor can save tax on Rs 1,00, 000. In case of MF, only investment in ELSS (equity linked tax savings scheme) a specific type of mutual fund scheme qualifies for tax benefits under section 80 C. c) Portfolio disclosure - MF houses are required to statutorily declare their portfolios on a quarterly basis, however there is no such statutory requirements for ULIPs. d) Return on investment - As both the products are long term investment products, these products has given good returns to its investors. Many analysts' feels, from a long term view ULIP provides better return than MF. However this is not true in all cases, it all depends on the type of investment and the fund manager's skills in managing the funds. e) Liquidity - ULIPs score low on liquidity. According to guidelines of the Insurance Regulatory and Development Authority (IRDA), ULIPs have a minimum term of five years and a minimum lockin of three years. You can make partial withdrawals after three years. The surrender value of a ULIP is low in the initial years, since the insurer deducts a large part of your premium as marketing and distribution costs. ULIPs are essentially long-term products that make sense only if your time horizon is 10 to 20 years.
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Mutual fund investments, on the other hand, can be redeemed at any time, barring ELSS (equity-linked savings schemes). Exit loads, if applicable , are generally for six months to a year in equity funds. So mutual funds score substantially higher on liquidity.

Comparative analysis of mutual fund schemes Mutual fund scheme of HDFC:HDFC TOP 200:-

Investment objective:- To generate long term capital appreciation from a portfolio of equity and equity-linked instruments primarily drawn from the companies in BSE 200 index. Investment strategy:- The investment strategy of primarily restricting the equity portfolio to the BSE 200 Index scrips is intended to reduce risks while maintaining steady growth. Stock specific risk will be minimized by investing only in those companies / industries that have been thoroughly researched by the investment manager's research team. Risk will also be reduced through a diversification of the portfolio.

Investment pattern:Sno. 1 Asset Type (% of portfolio) Risk profile 100% Medium to High

Equities and Equity Upto Related (including use of Instruments derivatives for hedging and other uses as permitted by prevailing SEBI Regulations) Debt & Money Balance in Debt & Low to Medium Market Instruments Money Market Instruments

Mutual fund scheme of ICICI:19

ICICI PRUDENTIAL DYNAMIC:-

Investment objective:- To generate capital appreciation by actively investing in equity related securities. For defensive consideration the scheme may invest in debt, money market instruments, to the extent permitted under the regulations. The AMC will have the discretion to completely or partially invest in any type of securities. Investment strategy:- It is a diversified equity plan that follows the growth investment philosophy to invest in a portfolio of large and small cap stocks. It has the ability to move gradually into the cash as market gets overvalued. Investment Pattern:- Equity and Equity related markets, Debt and Money market instruments. Mutual fund scheme for Reliance:-

Reliance Vision Fund:Investment objective:- The objective of the scheme is to achieve long term growth of capital by investment in equity and equity related securities through research based investment approach. Investment Pattern:- 60-100% in equity and equity related instruments, 0-30% in debt market instruments and 0-10% in money market instruments.

Comparative analysis of ULIP fund schemes

Children Plans:PLAN HDFC YOUNGSTAR CHAMPION SUVIDHA ICICI PRU SMARTKID ASSURE PLAN BIRLA SUN LIFE SARAL CHILDRENS PLAN SBI LIFE-UNIT PLUS II CHILD PLAN

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MINIMUM PREMUIM POLICY TERM SUM ASSURED

Rs.15,000 p.a. 10 TO 20 YRS FIXED SUM ASSURED- 5 TIMES ANNUAL PREMUIM

Rs.15,000 p.a. 15 TO 25 YRS FIXED SUM ASSURED- 5 TIMES ANNUAL PREMUIM

Rs.10,000 p.a. 10-20 YRS FIXED SUM ASSURED- 6 TIMES ANNUAL PREMUIM

Rs.18,000 8 TO 25 YRS MINIMUM SUM ASSURED: 5 TIMES ANNUAL PREMUIM MAXIMUM SUM ASSURED: 3-5 YRS: 10X ANNUAL PREMUIM 6-18 YRS:20X ANNUAL PREMUIM LOYALTY ADDITION: 0.20% X AVERAGE LAST 24MONTHS FUND VALUE X POLICY TERM

ADDITIONAL ALLOCATION OF UNITS

BUMPER ADDITION ON MATURITY : AS A % OF AVERAGE ANNUALISED PREMUIM 10 YRS TERM : 25% 15 TO 19 YRS : 50 % 20 YRS : 100%

FUND MANAGEMENT FEATURE

SMART TRANSFER OPTION

GUARANTEE D ADDITIONS AT THE END OF 15TH YR : 120% TO 170% OF ONE ANNUAL PREMUIM DEPENDING ON NO. OF PREMUIM PAID PLUS ADDITIONAL ALLOCATION : FROM 6TH POLICY YR 2% OF PREMUIM AT THE BEGINNING OF EVERY YEAR LIFECYCLE BASED PORTFOLIO STRATEGY

GUARANTEE D MATURITY ADDITION : PER 1000 ANNUAL PREMUIM 10PAY/10YR TERM: Rs.300 10PAY/20YR TERM : Rs.800 20PAY/20YR TERM : Rs.1000

LIFECYCLE OPTION

DIVERSE FUND OPTION

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POLICY ADMIN CHARGE

0.95% OF ORIGINAL ANNUALISED PREMUIM PER MONTH 1.25% ACROSS ALL FUNDS.

Rs. 60 PER MONTH IN 2ND TO 5TH YR

0.25% OF ANNUAL PREMUIM PER MONTH 1.00% TO 1.35% ACROSS VARIOUS FUNDS

Rs.50 PER MONTH OF EACH POLICY MONTH 0.25% TO 1.35% ACROSS VARIOUS FUNDS

FUND MANAGEMENT CHARGE

0.75% TO 1.35% ACROSS VARIOUS FUNDS

ALLOCATION CHARGE YEAR 1 YEAR 2

10% 1% 0%

100% 0% 0%

17% TO 30% 17% TO 30% 17% TO 30%

12.5% 3.5% 0%

RETIREMENT PLANS:-

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PLANS MINIMUM PREMUIM ADDITIONAL ALLOCATION OF UNITS

HDFC PENSION SUPREME Rs.15,000 p.a. BUMPER ADDITION ON MATURITY:AS % OF ORIGINAL PREMUIM 10 YRS TERM : 25% 15 TO 19YRS : 50% 20 TO 40YRS : 100%

ICICI PRU LIFE PENSION MAXIMA Rs.10,000 p.a. LOYALTY ADDITION: EVERY 5TH YR STARTING FROM 10TH YR 1% OF AVG FV OF IMMEDIATELY PRECEDING 8 QUARTERS + ADDITIONAL ALLOCATION: FROM 6TH POLICY YEAR 2% OF PREMUIM AT THE BEGINNING OF EVERY YEAR TRIGGER PORTFOLIO STRATEGY

BIRLA SUN LIFE FREEDOM 58 PLAN Rs.10,000 p.a. GUARANTEED ADDITION : 2% OF THE AVERAGE BASIC FUND VALUE IN THE LAST 60 MONTHS.

SBI LIFE UNIT PLUS III PENSION Rs.24,000 p.a. GUARANTEED ADDITION: % OF THE ANNUALISED PREMUIM FROM 6TH YR ONWARDS REGULAR PREM: 5% SINGLE PREM : 1%

FUND MANAGEMENT FEATURE ALLOCATION CHARGE YEAR 1 YEAR 2 YEAR 3 POLICY ADMIN CHARGE

ASSET ALLOCATION OPTION

LIFECYCLE OPTION

DIVERSE FUND OPTION

10% 1% 1% 0.95% OF ORIGINAL ANNUALISED PREMUIM PER MONTH IN THE FIRST 5 POLICY YEARS ONLY

20% 6% 6% 0.3%-0.75% OF ANNUAL PREMUIM PER MONTH FOR FIRST 5 YRS

FUND MANAGEMENT CHARGE

1.25% ACROSS ALL FUNDS

0.75% TO 1.35% ACROSS VARIOUS FUNDS

8% 2% 2% 0.67% PER MONTH OF ANNUAL PREMUIM IN FIRST THREE YEARS & 0.25% FROM 4TH YR ONWARDS INCREASING @ 5% EVERY YEAR 1.00% TO 1.35% ACROSS VARIOUS FUNDS

10% 5% 5% Rs.60 PER MONTH

0.25% TO 1.35% ACROSS VARIOUS FUNDS 23

Questionnaire :COMPARATIVE ANALYSIS OF MUTUAL FUNDS AND ULIPS

Q1. What do investors prefer?

Mutual Funds ULIPS Fixed Deposits Shares and Bonds

Q2. Have you invested in the following ? (if yes go to Ques no. 4)

Mutual funds ULIPS Both

Q3. What is the reason for not investing? Uncertain High cost

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Not interested in investments

Q4. Do you think investing in Mutual Funds is worthy?

Yes No

Q5. According to you why an individual should invest in Mutual Funds? To multiply money Moderate return with minimum Risk To have faster rate of growth Others

Q6. Do you have any plan in investing in future? Yes No

Q7. When do you plan to invest?

A month 1 month- 1 year After 1 year Non-Respondents

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SECTION-B

Q1. Are you aware of ULIPS schemes? Yes No

Q2. In which companies you invested in? LIC ICICI PRU Aviva life insurance Reliance None

Q3. What made you go to the company? Brand name Services Customer Relationship Better policy option

Q4. What extra benefits you would like to have along life insurance? Family income benefits Critical illness benefit Return
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Both family income and critical illness

Q5. Do you have any plan in investing in future? Yes No

Q6. When do you plan to invest? A month 1 month- 1 year After 1 year Non-Respondent

Q7. Rank ULIP as compared to Mutual Funds?

Good Satisfactory Non-Respondent

PERSONAL DETAILS Name:

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Age Group: Below 20 Between 20-30 Between 30-40 Above 40 Occupation: Salaried - Business - Housewife - Professional - Retired

References Search Engines

Google Yahoo Rediffmail

Websites

www.money.livemint.com www.moneycontrol.com www.valuesearchonline.com www.hdfcfund.com www.mutualfundsindia.com www.reliancemutual.com

Newspapers: Economic Times, Business Times.

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