Madhukr

Executive Summary
After completing three trimesters of Post Graduation Diploma in Insurance and Business
Management, I joined Kotak Mahindra Old Mutual Life Insurance Company Ltd. for
my summer internship project for 2 months where I was expected to report Mr. Mukesh
Purohit who was my mentor in the company. The title of my project is “Comparative
study of Unit Linked Insurance Plans and Mutual Funds”.
This project can be bifurcated in to two parts. First part is a study based that takes in to
account the various parameters about ULIPs and Mutual Funds that a investor would like
to know before investing in either of the two investment instruments. The second part
involves a survey which is done for different occupation and age groups in order to find
out their investment patterns their portfolios, their investment concerns, perceptions about
different investment schemes, return from the investments. Survey also aimed at finding
out the popularity and acceptability of ULIPs and Mutual Funds and also to analyze
which set of customers should invest in these two.
The first part of the project was study based for which secondary data was sufficient. This
data was collected from different websites as these were the main source. Second part i.e.
survey needed primary data which was collected with the help of questionnaire. The
sample size of the survey was 93.The questionnaire was filled from the people of
different age groups and occupation.
The survey revealed that 80 % of the respondents were from service and 20% were in to
different business. In business class the investment is done by 72% with high insurance
cover with 83%.The main investment was in FD and shares, the main requirement for
them is high returns and high liquidity. This class is little aware about ULIPs and Mutual
funds. Service class people have lower percentage of investment (68%) and life cover
(64%) as compared to business class. For this class risk tolerance is low and main
investment is in FD and Mutual funds. In the different age groups the group between age
18-25 is least interested in investment(54%) and taking life cover(42%).For this group
high return is an important factor with the majority of investment in Mutual funds and
shares. In the age group 25-35 the main concern was on building cash reserve. There
investment percentage and life insurance cover is fairly high (70%). The main investment
is in ULIPs and FD. In the age group 35-45 the main concern was the same as the
previous group of building cash reserve and saving for their children. The investment is
quite high (87%) with high insurance cover (90%).Their main investment is in ULIP and
Mutual funds. In the age group 45 and above the people of this group have high
investment and life insurance percentage. The main concern for this group is to build cash
and prime concern is safety. This group is well aware of ULIP and mutual funds.
CONTENTS
-1-
Chapter 1 Acknowledgement 1
Chapter 2 Executive Summary 2
Chapter 3 Introduction 4
Chapter 4 ULIP 7
Chapter 5 Mutual Funds 14
Chapter 6 ULIP vs. Mutual funds 17
Chapter 7 Where to invest 26
Chapter 9 Survey 27
Chapter 10 Analysis 29
Chapter 11 Annexure 35
Chapter 12 Bibliography
Company Profile
KOTAK’S VISION
-2-
To be
• A globally Indian financial services brand.

• The most trusted financial services company.
• The most preferred employer in financial services.
Its business driver is “Value creation rather than size alone”.
The Kotak Mahindra Group

Kotak Mahindra is one of India's leading financial conglomerates, offering complete
financial solutions that encompass every sphere of life. From commercial banking, to
stock broking, to mutual funds, to life insurance, to investment banking, the group caters
to the financial needs of individuals and corporate.
The group has a net worth of over Rs. 5,824 crore, employs around 20,000 people in its
various businesses and has a distribution network of branches, franchisees, representative
offices and satellite offices across 370 cities and towns in India and offices in New York,
London, San Francisco, Dubai, Mauritius and Singapore. The Group services around 4.4
million customer accounts.
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance
Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak &
Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and
that's when the company changed its name to Kotak Mahindra Finance Limited.
Since then it's been a steady and confident journey to growth and success.
1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting
1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market
1990 The Auto Finance division is started
The Investment Banking Division is started. Takes over FICOM, one of India's
1991
largest financial retail marketing networks
1992 Enters the Funds Syndication sector
Brokerage and Distribution businesses incorporated into a separate company -
1995 Kotak Securities. Investment Banking division incorporated into a separate
company - Kotak Mahindra Capital Company
The Auto Finance Business is hived off into a separate company - Kotak
Mahindra Prime Limited (formerly known as Kotak Mahindra Primus Limited).
1996 Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra
Limited, for financing Ford vehicles. The launch of Matrix Information Services
Limited marks the Group's entry into information distribution.
Enters the mutual fund market with the launch of Kotak Mahindra Asset
1998
Management Company.
2000 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business.
Kotak Securities launches its on-line broking site (now
www.kotaksecurities.com). Commencement of private equity activity through
-3-
setting up of Kotak Mahindra Venture Capital Fund.
Matrix sold to Friday Corporation
2001
Launches Insurance Services
Kotak Mahindra Finance Ltd. converts to a commercial bank – the first Indian
2003
company to do so.
2004 Launches India Growth Fund, a private equity fund.
Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime
(formerly known as Kotak Mahindra Primus Limited) and sells Ford credit
2005
Kotak Mahindra.
Launches a real estate fund
Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital
2006
Company and Kotak Securities
Its Corporate Identity
KOTAK’S VISION
To be

KOTAK’S VISION
To be

-4-
KOTAK’S VISION
To be

KOTAK’S VISION
To be

KOTAK’S VISION
To be

KOTAK’S VISION
To be

KOTAK’S VISION
To be
-5-
KOTAK’S VISION
To be

KOTAK’S VISION
To be

KOTAK’S VISION
To be

KOTAK LIFE INSURANCE

Kotak Mahindra bank ltd. (74%) + Old Mutual PLC (26%)
GEOGRAPHY:
Present in 30 cities (including 21 out of the top 40 cities), with 41 branches.
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CAPABILITY
1200+ Employees
6800 life advisors
Established systems and processes adequate for existing scale of business.
PRODUCTS:
A complete range of individual products (10) to cater to varying needs of customers.
BRANDING
Fourth most recalled brand as per ORG MARG survey.
Third most recalled brand in Mumbai and Delhi.
ULIP (Unit Linked Insurance Plan)
-7-
INTRODUCTION:
A Unit Link Insurance Policy (ULIP) is one in which the customer is provided with a life
insurance cover and the premium paid is invested in either debt or equity products or a
combination of the two. In other words, it enables the buyer to secure some protection for
his family in the event of his untimely death and at the same time provides him an
opportunity to earn a return on his premium paid. In the event of the insured person's
untimely death, his nominees would normally receive an amount that is the higher of the
sum assured or the value of the units (investments). To put it simply, ULIP attempts to
fulfill investment needs of an investor with protection/insurance needs of an insurance
seeker. It saves the investor/insurance-seeker the hassles of managing and tracking a
portfolio or products.
A ULIP, as the name suggests, is a market-linked insurance plan. The main difference
between a ULIP and other insurance plans is the way in which the premium money is
invested. Premium from, say, an endowment plan, is invested primarily in risk-free
instruments like government securities (gsecs) and AAA rated corporate paper, while
ULIP premiums can be invested in stock markets in addition to corporate bonds and
gsecs.
ULIPs offer a variety of options to the individual depending on his risk profile. For
instance, an individual with an above-average risk appetite can choose a ULIP option that
invests upto 60% of premium in equities. Likewise, an individual with a lower risk
appetite can select a ULIP that invests upto 20% of premium in equities.
ULIP VS TRADITIONAL INSURANCE PLAN
It wasn't too long back, when the good old endowment plan was the preferred way to
insure oneself against an eventuality and to set aside some savings to meet one's financial
bjectives. Then insurance was thrown open to the private sector. The result was the
launch of a wide variety of insurance plans, including the ULIPs.
-8-
Two factors were responsible for the advent of ULIPs on the domestic insurance horizon.
First was the arrival of private insurance companies on the domestic scene. ULIPs were
one of the most significant innovations introduced by private insurers. The other factor
that saw investors take to ULIPs was the decline of assured return endowment plans. Of
course, the regulator -- IRDA (Insurance and Regulatory Development Authority) was
instrumental in signaling the end of assured return plans.
Today, there is just one insurance plan from LIC (Life Insurance Corporation) -- Komal
Jeevan -- that assures return to the policyholder.
These were the two factors most instrumental in marking the arrival of ULIPs, but
another factor that has helped their cause is a booming stock market. While this now
appears as one of the primary reasons for their popularity, we believe ULIPs have some
fundamental positives like enhanced flexibility and merging of investment and insurance
in a single entity that have really endeared them to individuals.
SUM ASSURED
Perhaps the most fundamental difference between ULIPs and traditional endowment
plans is in the concept of premium and sum assured.
When you want to take a traditional endowment plan, the question your agent will ask
you are -- how much insurance cover do you need? Or in other words, what is the sum
assured you are looking for? The premium is calculated based on the number you give
your agent.
With a ULIP it works in reverse. When you opt for a ULIP, you will have to answer the
question -- how much premium can you pay?
Depending on the premium amount you state, you are offered a sum assured as a multiple
of the premium. For instance, if you are comfortable paying Rs 10,000 annual premium
on your ULIP, the insurance company will offer you a sum assured of say 5 to 20 times
the premium amount.
-9-
In the case of LIC's ULIP, the sum assured--premium relationship works the traditional
way. So you need to state how much sum assured you are looking for and your premium
is calculated as 1/10th the sum assured. If you have opted for a sum assured of Rs
100,000, your annual premium will be Rs 10,000.
INVESTMENTS
Traditionally, endowment plans have invested in government securities, corporate bonds

and the money market. They have shirked from investing in the stock markets, although
there is a provision for the same.
However, for some time now, endowment plans have discarded their traditional outlook
on investing and allocate about 10%-15% of monies to stocks. This percentage varies
across life insurance companies.
ULIPs have no such constraints on their choice of investments. They invest across the
board in stocks, government securities, corporate bonds and money market instruments.
Of course, within a ULIP there are options wherein equity investments are capped.
EXPENSES
ULIPs are considered to be very expensive when compared to traditional endowment

plans. This notion is rooted more in perception than reality.
Sale of a traditional endowment plan fetches a commission of about 30% (of premium) in
the first year and 60% (of premium) over the first five years. Then there is ongoing
commission in the region of 5%.
Sale of a ULIP fetches a relatively lower commission ranging from as low as 5% to 30%
of premium (depending on the insurance company) in the first 1-3 years. After the initial
years, it stabilises at 1-3%. Unlike endowment plans, there are no IRDA regulations on
ULIP commissions.
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Mortality expenses for ULIPs and traditional endowment plans remain the same as also
the administration charges.
One area where ULIPs prove to be more expensive than traditional endowment is in fund
management. Since ULIPs have an equity component that needs to be managed actively,
they incur fund management charges. These charges fluctuate in the 0.80%-1.50% (of
premium) range.
FLEXIBILITY
As we mentioned, one aspect that gives ULIPs an edge over traditional endowment is
flexibility. ULIPs offer a host of options to the individual based on his risk profile.
There are insurance companies that offer as many as five options within a ULIP with the
equity component varying from zero to a maximum of 100%. You can select an option
that best fits your objectives and risk-taking capacity.
Having selected an option, you still have the flexibility to switch to another option. Most
insurance companies allow a number of free 'switches' in a year.
Another innovative feature with ULIPs is the 'top-up' facility. A top-up is a one-time
additional investment in the ULIP over and above the annual premium. This feature
works well when you have a surplus that you are looking to invest in a market-linked
avenue, rather than stash away in a savings account or a fixed deposit.
ULIPs also have a facility that allows you to skip premiums after regular payment in the
initial years. For instance, if you have paid your premiums religiously over the first three
years, you can skip the fourth year's premium. The insurance company will make the
necessary adjustments from your investment surplus to ensure the policy does not lapse.
With traditional endowment, there are no investment options. You select the only option
you have and must remain with it till maturity. There is also no concept of a top-up
facility.
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Your premium amount cannot be enhanced on a one-time basis and skipped premiums
will result in your policy lapsing.
TRANSPARENCY
ULIPs are also more transparent than traditional endowment plans. Since they are
market-linked, there is a price per unit. This is the net asset value (NAV) that is declared
on a daily basis. A simple calculation can tell you the value of your ULIP investments.
Over time you know exactly how your ULIP has performed.
ULIPs also disclose their portfolios regularly. This gives you an idea of how your money
is being managed. It also tells you whether or not your mutual fund and/or stock
investments coincide with your ULIP investments. If they are, then you have the
opportunity to do a rethink on your investment strategy across the board so as to ensure
you are well diversified across investment avenues at all times.
With traditional endowment, there is no concept of a NAV. However, insurers do send

you an annual statement of bonus declared during the year, which gives you an idea of
how your insurance plan is performing.
Traditional endowment also does not have the practice of disclosing portfolios. But given
that there are provisions that ensure a large chunk of the endowment portfolio is in high
quality (AAA/sovereign rating) debt paper, disclosure of portfolios is likely to evoke little
investor interest.
LIQUIDITY
Another flexibility that ULIPs offer the individual is liquidity. Since ULIP investments
are NAV-based it is possible to withdraw a portion of your investments before maturity.
Of course, there is an initial lock-in period (3 years) after which the withdrawal is
possible.
Traditional endowment has no provision for pre-mature withdrawal. You can surrender
your policy, but you won't get everything you have earned on your policy in terms of
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premiums paid and bonuses earned. If you are clear that you will need money at regular
intervals then it is recommended that you opt for money-back endowment.
TAX BENEFITS
Taxation is one area where there is common ground between ULIPs and traditional
endowment. Premiums in ULIPs as well as traditional endowment plans are eligible for
tax benefits under Section 80C subject to a maximum limit of Rs 100,000. On the same
lines, monies received on maturity on ULIPs and traditional endowment are tax-free
under Section 10.
ULIP - KEY FEATURES (IN GENERAL):
1. 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.
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2. As in all insurance policies, the risk charge (mortality rate) varies with age.
3. The maturity benefit is not typically a fixed amount and the maturity period can
be advanced or extended.
4. Investments can be made in gilt funds, balanced funds, money market funds,
growth funds or bonds.
5. The policyholder can switch between schemes, for instance, balanced to debt or
gilt to equity, etc.
6. The maturity benefit is the net asset value of the units.
7. The costs in ULIP are higher because there is a life insurance component in it
as well, in addition to the investment component.
8. Insurance companies have the discretion to decide on their investment

portfolios.
9. They are simple, clear, and easy to understand.
10. Being transparent the policyholder gets the entire episode on the performance
of his fund.
11. Lead to an efficient utilization of capital.
12. ULIP products are exempted from tax and they provide life insurance.
13. Provides capital appreciation.
14. Investor gets an option to choose among debt, balanced and equity funds.
MUTUAL FUNDS
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A mutual fund is a pool of money, collected from investors, and is invested according to
certain investment objectives.
A mutual fund is created when investors put their money together. It is therefore a pool of
investors’ funds. The most important characteristic of a mutual fund is that the
contributors and the beneficiaries of the fund are the same class of people, namely the
investors.
ADVANTAGES OF INVESTING IN MUTUAL FUNDS:
1. Portfolio diversification
2. Professional management
3. Reduction in risk
4. Reduction of transaction costs
5. Liquidity
6. Convenience and flexibility
DISADVANTAGES OF INVESTING IN MUTUAL FUNDS:
1. No control over costs: Since investors do not directly, monitor the fund’s operations
they cannot control the costs effectively. Regulators therefore usually limit the expenses
of mutual funds.
2. No tailor made portfolios: Mutual fund portfolios are created and marketed by AMCs
into which investors invest. They cannot create tailor made portfolios.
3. Managing a portfolio of funds: As the numbers of mutual funds increase, in order to
tailor a portfolio for him, an investor may be holding a portfolio of funds, with the costs
of monitoring them and using them, being incurred by him.
TYPES OF MUTUAL FUNDS
- 15 -
• By Structure
o Open - Ended Schemes
o Close - Ended Schemes
o Interval Schemes
• By Investment Objective
o Growth Schemes
o Income Schemes
o Balanced Schemes
o Money Market Schemes
• Other Schemes
o Tax Saving Schemes
o Special Schemes
 Index Schemes
 Sector Specific Scheme
MUTUAL FUNDS – ORGANIZATION
Organization of a Mutal Fund
MUTUAL FUND COMPANIES IN INDIA
- 16 -
The concept of mutual funds in India dates back to the year 1963. The era between 1963
and 1987 marked the existence of only one mutual fund company in India with Rs. 67bn
assets under management (AUM), by the end of its monopoly era, the Unit Trust of India
(UTI). By the end of the 80s decade, few other mutual fund companies in India took their
position in mutual fund market.
The new entries of mutual fund companies in India were SBI Mutual Fund, Canbank
Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank Mutual Fund, Bank of
India Mutual Fund.
The succeeding decade showed a new horizon in Indian mutual fund industry. By the end
of 1993, the total AUM of the industry was Rs. 470.04 bn. The private sector funds
started penetrating the fund families. In the same year the first Mutual Fund Regulations
came into existance with re-registering all mutual funds except UTI. The regulations were
further given a revised shape in 1996.
Kothari Pioneer was the first private sector mutual fund company in India which has now
merged with Franklin Templeton. Just after ten years with private sector players
penetration, the total assets rose up to Rs. 1218.05 bn. Today there are 33 mutual fund
companies in India.
ULIP V/S MUTUAL FUNDS
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Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual
funds in terms of their structure and functioning. As is the case with mutual funds,
investors in ULIPs is allotted units by the insurance company and a net asset value (NAV)
is declared for the same on a daily basis.
Similarly ULIP investors have the option of investing across various schemes similar to
the ones found in the mutual funds domain, i.e. diversified equity funds, balanced funds
and debt funds to name a few. Generally speaking, ULIPs can be termed as mutual fund
schemes with an insurance component.
However it should not be construed that barring the insurance element there is nothing
differentiating mutual funds from ULIPs.Despite the seemingly comparable structures
there are various factors wherein the two differ.
1. MODE OF INVESTMENT/ INVESTMENT AMOUNTS

Mutual fund investors have the option of either making lump sum investments or
investing using the systematic investment plan (SIP) route which entails commitments
over longer time horizons. The minimum investment amounts are laid out by the fund
house.
ULIP investors also have the choice of investing in a lump sum (single premium) or using
the conventional route, i.e. making premium payments on an annual, half-yearly,
quarterly or monthly basis. In ULIPs, determining the premium paid is often the starting
point for the investment activity.
This is in stark contrast to conventional insurance plans where the sum assured is the
starting point and premiums to be paid are determined thereafter.
ULIP investors also have the flexibility to alter the premium amounts during the policy's
tenure. For example an individual with access to surplus funds can enhance the
contribution thereby ensuring that his surplus funds are gainfully invested; conversely an
- 18 -
individual faced with a liquidity crunch has the option of paying a lower amount (the
difference being adjusted in the accumulated value of his ULIP). The freedom to modify
premium payments at one's convenience clearly gives ULIP investors an edge over their
mutual fund counterparts.
2. EXPENSES
In mutual fund investments, expenses charged for various activities like fund
management, sales and marketing, administration among others are subject to pre-
determined upper limits as prescribed by the Securities and Exchange Board of India.
For example equity-oriented funds can charge their investors a maximum of 2.5% per
annum on a recurring basis for all their expenses; any expense above the prescribed limit
is borne by the fund house and not the investors.
Similarly funds also charge their investors entry and exit loads (in most cases, either is
applicable). Entry loads are charged at the timing of making an investment while the exit
load is charged at the time of sale.
Insurance companies have a free hand in levying expenses on their ULIP products with
no upper limits being prescribed by the regulator, i.e. the Insurance Regulatory and
Development Authority. This explains the complex and at times 'unwieldy' expense
structures on ULIP offerings. The only restraint placed is that insurers are required to
notify the regulator of all the expenses that will be charged on their ULIP offerings.
Expenses can have far-reaching consequences on investors since higher expenses

translate into lower amounts being invested and a smaller corpus being accumulated.
ULIPS
scheme charge in first year
Flexi plan 73% for 15+ year term
Safe investment plan ll 22
- 19 -
Privileged assurance plan 7
Head start assure wealth\future protect 37 for 15year +,annual prem15000-25000
Retirement plan with\withoutcover 27
Retirement plan single premium 4
Platinum advantage 10
Easy growth 1.25\5 times 3.5
Smart advantage 3.2 for premium<36000
MUTUAL FUNDS
description gilt saving gilt investment gilt investment

regular provident and trust
fund
Total Annual Recurring 1.65 1.65 1.65
Expenses (Estimated)
LOAD
ENTRY LOAD Nil Nil Nil
EXIT LOAD Nil Nil Nil
description bond bond bond short

(deposit regular term plan
plan) plan
Total Annual Recurring 2.25 1.65 1.5
Expenses (Estimated)
LOAD
EXIT LOAD For investments upto 10 lakhs Nil Nil
.5%if redeemed within 6
months
For investment above 10 lakh
nil
description oppourtunities midcap contra flexi debt scheme

Total Annual 2.5% 2.5% 2.5% 2.25%
Recurring
Expenses
(Estimated)
LOAD ## ## ##
ENTRY LOAD Nil
- 20 -
EXIT LOAD 0.1 % if redeemed
within 7 days
from the date of
purchase.
description liquid liquid liquid flotter short

regular institutional institutional term plan
plan plan premium plan
Total Annual 1 .75 .65 2.25
Recurring
Expenses
(Estimated)
LOAD
ENTRY LOAD Nil Nil Nil Nil

EXIT LOAD Nil Nil Nil Nil
description income plus flotter long term equity

arbiterage
Total Annual 2.25 2.25 2.25
Recurring
Expenses
(Estimated)
LOAD
EXIT LOAD • For investments For investments For Investments <=
less than or upto Rs. 10 Lacs: Rs. 50 lacs:
equal to Rs. 25 0.50% if redeemed a. If redeemed within
Lacs : 1%, if within 3 months
redeemed within six months; from the date of
1 year For investments allotment of units:
• For investment above 0.60%
above Rs. 10 Lacs: Nil b. If redeemed after
Rs. 25 lacs : Nil 3
months, within 6
months
from the date of
allotment
of units: 0.50%
c. If redeemed after
6 months
from the date of
allotment
of units: Nil
d . Where
investments is
- 21 -
made by Fund of
Funds
as defined under
SEBI
regulations: Nil
e. Where units are
allotted
upon reinvestment of
Dividends: Nil
For Investments >
Rs. 50
a. If redeemed on or
before
30 days from the
date
allotment of units:
0.50%
. If redeemed after
30 days
from the date of
allotment
of units: Nil
c. Where
investments is made
by Fund of Funds as
defined under SEBI
Regulations: Nil
. Where units are
allotted
upon reinvestment of
Dividends: Nil
description kotak 30 balance mnc tech global india

Total Annual 2.5 2.5 2.25 2.5 2.5
Recurring
Expenses
(Estimated
LOAD ## ## ## ## ##
ENTRY LOAD
EXIT LOAD
description kotak lifestyle

Total Annual 2.5
Recurring
Expenses
- 22 -
(Estimated
LOAD ##
ENTRY LOAD
EXIT LOAD
##
LOAD
ENTRY a) No entry load shall be charged on:
LOAD i) For “all direct” applications received by AMC i.e. applications
received through internet
facility offered (www.kotakmutual.com), on application forms that
are not routed through
any distributor/agent/broker and submitted to AMC office or
collection centre / investment
service centre.
ii) On additional purchases done directly by the investor under the
same folio and switch-in to
the scheme from other scheme if such transaction is done directly
by the investor:
iii) Where the purchase amount/switch in amount is equal to or more
than Rs. 5 crores
iv) Where the switch in is from an Equity/Balanced/Equity FOF
Scheme to an Equity/Balanced/
Equity FOF Scheme
v) Where switch in is from a close ended scheme (excluding Fixed
Maturity Plans and Interval
Plans) during the pre-defined liquidity window of the scheme as
defined in the respective
offer documents or on maturity to an Equity/ Balanced/Equity FOF
Schemes:
vi) Where the switch in is from any other scheme apart from point iv
and v above to an Equity/
Balanced/Equity FOF Scheme
vii) Where investments is made by Fund of Funds as defined under
SEBI Regulations
viii) Where units are allotted upon reinvestment of Dividends
b) Cases not covered above: 2.25%
EXIT For exit within 6 months from the date of allotment of units for
LOAD investments of less than Rs. 5 crores:
1%
For exit after 6 months upto 1 year from the date of allotment of
units for investments of less than
Rs. 5 crores: 0.50%
Where investments is made by Fund of Funds as defined under
SEBI Regulations: Nil
- 23 -
Where units are allotted upon reinvestment of Dividends: Nil
Cases not covered above: Nil
3. PORTFOLIO DISCLOSURE
Mutual fund houses are required to statutorily declare their portfolios on a quarterly basis,
albeit most fund houses do so on a monthly basis. Investors get the opportunity to see
where their monies are being invested and how they have been managed by studying the
portfolio.
There is lack of consensus on whether ULIPs are required to disclose their portfolios.
During our interactions with leading insurers we came across divergent views on this
issue.
While one school of thought believes that disclosing portfolios on a quarterly basis is
mandatory, the other believes that there is no legal obligation to do so and that insurers
are required to disclose their portfolios only on demand.
Some insurance companies do declare their portfolios on a monthly/quarterly basis.
However the lack of transparency in ULIP investments could be a cause for concern
considering that the amount invested in insurance policies is essentially meant to provide
for contingencies and for long-term needs like retirement; regular portfolio disclosures on
the other hand can enable investors to make timely investment decisions.
4. FLEXIBILITY IN ALTERING THE ASSET ALLOCATION

As was stated earlier, offerings in both the mutual funds segment and ULIPs segment are
largely comparable. For example plans that invest their entire corpus in equities
(diversified equity funds), a 60:40 allotment in equity and debt instruments (balanced
funds) and those investing only in debt instruments (debt funds) can be found in both
ULIPs and mutual funds.
If a mutual fund investor in a diversified equity fund wishes to shift his corpus into a debt
from the same fund house, he could have to bear an exit load and/or entry load.
On the other hand most insurance companies permit their ULIP inventors to shift
investments across various plans/asset classes either at a nominal or no cost (usually, a
- 24 -
couple of switches are allowed free of charge every year and a cost has to be borne for
additional switches).
Effectively the ULIP investor is given the option to invest across asset classes as per his
convenience in a cost-effective manner. This can prove to be very useful for investors, for
example in a bull market when the ULIP investor's equity component has appreciated, he
can book profits by simply transferring the requisite amount to a debt-oriented plan.
5. TAX BENEFITS
ULIP investments qualify for deductions under Section 80C of the Income Tax Act. This
holds good, irrespective of the nature of the plan chosen by the investor. On the other
hand in the mutual funds domain, only investments in tax-saving funds (also referred to
as equity-linked savings schemes) are eligible for Section 80C benefits.
Maturity proceeds from ULIPs are tax free. In case of equity-oriented funds (for example
diversified equity funds, balanced funds), if the investments are held for a period over 12
months, the gains are tax free; conversely investments sold within a 12-month period
attract short-term capital gains tax @ 10%.
Similarly, debt-oriented funds attract a long-term capital gains tax @ 10%, while a short-
term capital gain is taxed at the investor's marginal tax rate.Despite the seemingly similar
structures evidently both mutual funds and ULIPs have their unique set of advantages to
offer. As always, it is vital for investors to be aware of the nuances in both offerings and
make informed decisions.
IN A NUTSHELL:
ULIPs Mutual Funds
Investment Determined by the investor Minimum investment amounts are

amounts and can be modified as well determined by the fund house
No upper limits, expenses Upper limits for expenses chargeable
determined by the insurance to investors have been set by the
Expenses company regulator
Portfolio
disclosure Not mandatory* Quarterly disclosures are mandatory
- 25 -
Modifying asset Generally permitted for free Entry/exit loads have to be borne by
allocation or at a nominal cost the investor
Section 80C benefits are Section 80C benefits are available
available on all ULIP only on investments in tax-saving
Tax benefits investments funds
WHERE TO INVEST
Whether to invest in ULIP or to invest in MUTUAL FUND depends upon customer’s
future financial goals & present investments.
1. If an investor is looking for an insurance policy and is ready to take moderate
risks, he must opt for the ULIP plan. A term of 10 years or less is advisable only
when one needs an insurance cover, otherwise if a customer wants to enter a
horizon of 11-30 years, then ULIP scores handsomely over Mutual funds.
- 26 -
2. ULIP is not meant for an irregular investor, as under a ULIP policy an investor
has to make compulsory savings. An investor has to save regularly and invest
through the highs and lows in the market. So, for the investors who generally do
not save regularly and invest only when market is high and disinvest when the
market is low, mutual funds are the best option.
3. The investors who want to invest only to enjoy short term gains and want to
switch and withdraw their amounts frequently are not advised to invest in ULIP as
there is usually a lock in period of 3 or 4 years involved in ULIP.Such investors
should go in for Mutual funds where they can switch anytime they want to.
4. For low risk taking investors mutual funds can be the best option as the risk can
be diversified as there exists huge variety of specialized schemes under mutual
funds which can be tailored according to all the possible requirements and the
needs of the investor. Such options are not available under the ULIP scheme.
5. The service charges such as fund management charges etc. are usually low in the
case of ULIP as compared to mutual funds. Though the initial charges under ULIP
are high but still the cumulative effect comes out to be less than that of Mutual
funds, thus an investor who doesn’t want to shell out more on the expenses and
wants safe investment should opt for ULIP as compared to Mutual funds.
SURVEY
As a part of our project, in order to know the perceptions of the investors about the
investment schemes basically ULIP and MUTUAL FUNDS, a survey was being
conducted by us in Udaipur region.
OBJECTIVE OF THE SURVEY:

• To know the existing investment pattern among different age groups and different
occupations.
- 27 -
• To know the present portfolio of the investors, their perceptions about different
investment schemes, their investment concerns, their present returns, and their
future expectations from different investment schemes.
• To know the popularity and acceptability of the two products i.e. ULIP and
MUTUAL FUNDS among the above mentioned categories.
• To know the potential customers for the investment schemes: ULIP and Mutual
fund.
• To analyze which set of customers should invest in ULIP and Mutual Funds as per
their needs identified.
DATA COLLECTION METHOD
The basic objective of the project was to compare investment behavior especially in
ULIP and Mutual Funds. Both primary and secondary data has been used in order to
analyze these products.
The primary data was obtained through observation, direct communication with the
people and filling up of questionnaires.
The secondary data was collected through the
• Internet
• Journals and newspapers
DATA COLLECTION INSTRUMENT
A semi structured kind of questionnaire was designed which contained both open- ended
and multiple choice questions.The questionnaire designed was to provide dual
information sharing type, it is seriously undertaken that anyone who is undergoing the
process, should find his interest or else he might show disinterest towards the
programme. The questionnaire was equally important both to the customers as well as to
the company to draw out its prospects.
- 28 -
The questionnaire was designed to meet all the objectives of the survey fully and helped
us in knowing the needs of the customers and the market value and image of the company
.Moreover, it helped us to give suggestions to the company so as to cater customers’
needs in a much better way and hence broaden its customer base.
RESEARCH METHODOLOGY
The survey process involved two phases: First phase included identification and selection
of the target audience to be studied and to determine the parameters on which
respondents will justify their preferences. The audience were targeted and analyzed
basically on the basis of two important parameters: Age and Occupations.
Demographical information was also taken in order to know the investment patterns
according to the location, age, gender etc. A questionnaire was designed to collect the
needed information from the respondents. (See the annexure)
In the second phase data was collected through questionnaire from more than 100
respondents within Udaipur region. Results were viewed cautiously as sample was from
a specific population.
The responses that were generated during this exercise were converted in the form of
percentages to have a comparative outlook, as the numbers itself cannot explain the true
picture. These percentages were then represented through the simple tools like bar
graphs, pie charts.
ANALYSIS
FINDINGS:
OCCUPATION
To begin with the nature of occupation was divided broadly into 2 categories:
1. Business
- 29 -
2. Services
The study shows:
• Almost 80% of people were into service and 20% were into business, either
proprietorship or partnership.
BUSINESS
The sample consisted of 50 % having income between Rs. 2 lakh to Rs. 5 lakh. 33% had
income greater than Rs. 5 lakh. It can be seen that a large amount of people in business
are investing (72%) and are insured (83%). But the investments are basically in fixed
deposits and share markets. There is some lack of awareness of the products like ULIP
and Mutual funds as can be seen that only 16% of people are holding ULIP policy and 19
% are having Mutual Funds. The prime concern of this segment for investing is to build
cash reserves and purchase assets.
This class (79%) considers High Returns as very important investment factor while only
20 % Liquidity with the same importance.
In the ULIPs we find LIC to be dominating with 50 % of the market share, ICICI is
second most preferred company with 17 % share. 83% of the people investing in ULIP
invest in Equity Type Fund, indicating their preference for high returns as well as well as
Risk Tolerance.
In Mutual Funds we find that of the 19 % people investing in Mutual Funds, 34 % have
invested with Reliance with ICICI as second preference.
SERVICE
The sample consisted of 61 % having income between Rs. 2 lakh to Rs. 5 lakh. 28% had
income greater than Rs. 5 lakh.
It can be seen that 68 % people in services are investing and only 64% people are having
their life insured. In this segment the main concern of investing is to build cash reserves.
The majority of their portfolio consists of Mutual Funds (23%) & Fixed Deposits
- 30 -
(23%). This segment is comparatively better aware of ULIPs.This Risk Tolerance is also
low as only 18% invest in share markets.
This class (60%) considers High Returns as very important investment factor while only
20 % Tax free proceeds with the same importance.
In the ULIPs we find LIC & ICICI to be dominating the market with 36% share each.
Bajaj Allianz has 14 % presence. We find the preference for Equity Type Fund declines to
54 % & for balanced increase to 34 % when compared with Business class. 14 % people
also invest in cash fund, indicating their preference for low Risk Tolerance.
In Mutual Funds we find that of the 23 % people investing in Mutual Funds, 23 % have
invested with Kotak. ICICI & Reliance with 16 % each come as second preference.
AGE
The analysis was also done on the basis of age which was being broadly classified into 4
categories:
1. 18-25 years
2. 25-35 years
- 31 -
3. 35-45 years
4. 45 and above
The study shows:
AGE 18-25
The sample consisted of 58 % people having income between Rs. 2 lakh to Rs. 5 lakh.
25% had income greater than Rs. 5 lakh. Majority (74%) belonged to salaried class. It can
be seen that only 54% people are investing. We find that majority of people of this age
group (58%) do not have Life Insurance cover. The investments are basically in Mutual
funds (35%) & share markets (24%). This indicates high Risk Tolerance for this age
group. The prime concern of this segment for investing is to purchase assets.
This class considers High Returns (79%) & Flexibility (60%) as very important
investment factors while only 21 % consider Tax Free proceeds with the same
importance.
In the ULIPs we find ICICI to be dominating with 50 % of the market share, LIC is
second most preferred company. Almost all investing in ULIP invest in Equity Type
Fund, indicating their preference for high returns as well as well as Risk Tolerance.
In Mutual Funds we find that of the 35% people investing in Mutual Funds, Reliance &
Kotak are their common choice.[No. of observations:24]
AGE 25-35
be seen that majority (70%) people are investing with Building Cash reserves & Funding
for children being their main concerns. We find that majority of people of this age group
(71%) have Life Insurance cover. The investments are basically in ULIP (27%) & Fixed
Deposits (23%).
- 32 -
This class considers High Returns, Safety & Liquidity as important investment factors
with less importance given to Tax Free proceeds & Flexibility.
In the ULIPs we find LIC (33 %) & ICICI (29%) to be dominating with Bajaj Allianz
having 19% market share. Majority (60%) of people investing in ULIP invest in Equity
Type Fund, indicating their preference for high returns as well as well as Risk Tolerance.
In Mutual Funds we find that of the 21% people investing in Mutual Funds, Reliance &
Fidelity are their common choice.[No. of observations:35]
AGE 35-45
be seen that 87% people are investing. We find that majority of people of this age group
(90%) have Life Insurance cover. The investments are basically in Mutual funds (22%)
& ULIP (31%). This indicates their high awareness regarding these two. The prime
concern of this segment for investing is to build Cash reserves & Funding for their
children.
This class considers safety (70%) & High Returns (50%) as very important investment
factors while only 10 % consider Flexibility with the same importance.
In the ULIPs we find ICICI, UTI & LIC to be dominating the market. We find that there
is a shift to Balanced fund from Equity fund indicating more preference for less risk as
the age increases.
In Mutual Funds we find, Reliance & ICICI to be the common choice.[No. of
observations:10]
AGE 45 AND ABOVE
29% had income greater than Rs. 5 lakh. 33% worked in Government jobs & 29%
belonged to salaried class. It can be seen that this is an investing segment and is mostly
insurance covered.
The investments are basically in Government securities & Fixed Deposits. The product
ULIP also seems to be quite popular in this segment as quite a large number of people are
- 33 -
holding the ULIP policy. The prime concern of this segment for investing is to build Cash
reserves.
This class considers predominantly safety (82%) as very important investment factor
while only 25 % consider Liquidity with the same importance. In the ULIPs we find, UTI
& LIC to be dominating the market. We find that majority are investing in Balanced fund
In Mutual Funds we find, presence of many companies.
[No. of observations: 24]
RECOMMENDATIONS:
OCCUPATION
• The business segment can be targeted for ULIP (as an investment product) and
Mutual funds as these products are offering high returns and safety which is the major
- 34 -
concern of this segment. The need is to promote ULIP as a better product than the
F.D’s and mutual fund can be promoted in lieu of the share markets.
• The service class can be a potential customer both for the ULIP and Mutual Funds.
ULIP needs to be promoted as an insurance product and can be sold emphasizing the
importance and need of insurance. This segment is already investing into Mutual
funds, thus the bank needs to promote its mutual funds by promising the customers
higher returns and safety than the others.
AGE
• The segment (18-25) can be a potential customer segment as most of the people
are falling in the income group of Rs. 2-5 lakhs. The company can target this
segment by offering its ULIP product both as an insurance and investment
product, which can provide high returns as the investments and provide the
insurance cover too, as a large segment doesn’t have an insurance cover. The
return on investments (ULIP and Mutual funds) is mostly between the 10% -20%
brackets so products offering returns higher than this band can be offered to this
category as 24% of people under this category are looking for building cash
reserves and earning higher returns. The need is to make this segment aware of
the products like ULIP (which is promising return of 20-25% p.a.) and tap as
many customers as possible.
• In order to tap the 25-35 years segment ULIP can be promoted as an investment
option rather than an insurance product. Mutual funds need to be promoted as
only a small segment is investing in mutual funds. Mutual funds and ULIP both
can be the best investment option for this segment as the basic reason for
investment as can be seen from above is building Cash reserves and funding for
children and both these products are offering high returns.
• As the segment 35-45 years is an investing and risk taking segment, Mutual funds
promising higher returns can be promoted in this segment. The product ULIP is
also highly acceptable by this segment, so both of these products can be promoted
as a best investment options promising high returns and low risks.
- 35 -
• Thus this segment can mainly be targeted for the Mutual funds as can be seen that
very few people are investing M.Fs. this is because this segment consists of risk
averters as this segment prefers Fixed Deposits and government securities than
any other investment product as safety is the most important factor which is being
considered while investing by this segment, thus product like ULIP and Mutual
Funds need to be promoted as safe investments and better than F.D’s only then
this segment can be tapped.
ANNEXURE
AGE 18-25
Income No. As a % of total

above5 6 25
b/w 2-5 14 58
- 36 -
below 2 4 17
24
INCOME
17% 25%
above5
b/w 2-5
below 2
58%
Life Insurance Cover No. As a % of total

Yes 10 42
No 14 58
24
LIFE INSURANCE COVER
42% Yes
58% No
Invest or Not No. As a % of total

Yes 13 54
No 11 46
24
- 37 -
INVEST OR NOT
46% Y es
54% No
Reasons for Investment No. As a % of total

Asset Purchase 8 47.0588235
Building Cash Reserves 4 23.5294118
Retirement 3 17.6470588
Others 2 11.7647059
17
REASONS FOR INVESTMENTS

Asset Purchase
12% Building Cash

18% Reserves
46%
Retirement
24%
Others
Most Important No. As a % of total

High returns 7 53
Safety 3 23
Liquidity 2 15
Tax free 1 7
Proceeds
Flexibility
- 38 -
13
7
6
5
4
3
2
1
0
High Returns Safety Liquidity tax Flexibility
PORTFOLIO No. As a % of total

Mutual Funds 10 34.4827586
Fixed Deposits 5 17.2413793
ULIP 4 13.7931034
Share markets 7 24.137931
Others 3 10.3448276
29
PORTFOLIO
10% Mutual Funds

35% Fixed Deposits
24%
ULIP
Share markets
14% 17%
Others
ULIP Scheme No. As a % of total
ICICI 2 50
LIC 1 25
AVIVA 1 25
4
- 39 -
ULIP SCHEME
ICICI
25%
KOTAK
KOTAK LIC
50%
LIC ICICI
25%
M.F Co. No. As a % of total

Franklin 4 25
ICICI 2 12.5
Fidelity 2 12.5
Reliance 4 25
Others 4 25
16
MUTUAL FUNDS
Others Franklin Franklin

25% 24%
ICICI
Fidelity
ICICI
Reliance Reliance
13%
25% Fidelity Others
13%
RETURNS ON M.F. No. As % of total

10%-20% 5 50
20%-30% 3 30
above 30% 2 20
10
- 40 -
RETURNS ON M.F.
20%
10%-20%
50% 20%-30%
30% above 30%
AGE 25-35

above5 11 31.4285714
b/w 2-5 19 54.2857143
below 2 5 14.2857143
35
- 41 -
Income
14%
31% above5
b/ w 2-5
55% below 2

Yes 26 74.285714
No 9 25.714286
0
35
INVEST OR NOT
26%
Y es
No
74%

Yes 25 71.428571
No 10 28.571429
0
35
- 42 -
LIFE INSURANCE COVER
29%
Y es
No
71%

IIncome replacement 4 9.0909091
Retirement 7 15.9090909
Funding for Children 9 20.4545455
Others 2 4.5454545
44
REASONS FOR INVESTMENT

Income
replacement
Asset Purchase
5% Building Cash
20% 14% Reserves
Retirement
16% Funding for
36%
Children
Others

High returns 9 34
Safety 5 19
Liquidity 3 11
Tax free 5 19
Proceeds
Flexibility 4 15
26
- 43 -
10
0
High Returns Safety Liquidity Tax Flexibility

ULIP 16 26.2295082
Others 8 13.1147541
61
PORTFOLIO
Mutual Funds
13% 21%
Fixed Deposits
16%
ULIP
23% Share markets
27%
Others

I ICICI 6 28.5714286
LIC 7 33.3333333
Bajaj Allianz 4 19.047619
Others 4 19.047619
21
- 44 -
ULIP Scheme
19% ICICI
29%
LIC
19% Bajaj Allianz
33%
Others
Type of Fund No. As a % of Total

Equity 13 61.9047619
Balanced 3 14.2857143
Cash 5 23.8095238
21
Type of Fund
24% Equity
Balanced
Cash
14% 62%
Returns No. As a % of Total

Below 10% 2 12.5
10%-20% 7 43.75
20%-30% 3 18.75
Above 30% 4 25
16
- 45 -
Returns
25% 13% Below 10%

10%-20%
20%-30%
19% 43%
Above 30%

Kotak 3 11.5384615
I ICICI 3 11.5384615
Fidelity 5 19.2307692
Reliance 5 19.2307692
HDFC 3 11.5384615
Others 7 26.9230769
M.F Co.
Kotak
12% ICICI
26% 12%
Fidelity
Reliance
12% 19%
19% HDFC
Others
RETURNS ON M.F. No. As % of total
10%-20% 3 23.0769231
20%-30% 4 30.7692308
Above 30% 6 46.1538462
13
- 46 -
RE TURNS ON M.F.
23%
10%-20%
46%
20%-30%
above 30%
31%
AGE 35- 45
I Invest or Not No. As a % of total

Yes 7 87
No 1 13
- 47 -
8
Invest
13%
No
Y es
87%

Yes 9 90
No 1 10
10
Life Insurance
10%
No
Y es
90%

I Income replacement 2 12.5
Retirement 2 12.5
Funding for Children 4 25
- 48 -
16
Investment Reasons Asset Purchase
Building Cash
13% 13% reserves
13% Funding for
children
37% Income
24% replacement
Retirement

High returns 5 25
Safety 7 35
Liquidity 4 20
Tax free 3 15
Proceeds
Flexibility 1 5
20
eds
Most Important
e proce
turns
8
ibility
7
Liquidity
6
5
ty
4 Series1
h re
3
fe
2
x fre
1
x
Sa
0
Fle
Hig
Ta

ULIP 7 30.43
Government 3 13.04
securities
- 49 -
Bonds
23
Portfolio Government
securities
Mutual funds
13% 17%
ULIP
4%
13% Share Markets
22%
Fixed Deposits
31%
Bonds
ULIP SCHEME No As a % of total

I ICICI 2 28.57
LIC 3 42.85
UTI 2 28.57
Others 0
7
ULIP SCHE ME
0%
29% 29% ICICI
LIC
UTI
Others
42%
Returns No. As a % of total

Below 10 % 1 14.28
10%-20% 4 57.14
20%-30% 1 14.28
Above 30% 1 14.28
7
- 50 -
Return in ULIP
14% 14% Below 10%

14% 10%-20%
20%-30%
58% Above 30 %
Mutual Fund Co. No. As a % of Total

Reliance 2 28.56
I CICI 2 28.56
HDFC 1 14.28
SBI 1 14.28
Kotak 1 14.28
7
Mutual Fund Co.
Reliance
14%
29% ICICI
14%
HDFC
14% SBI
29%
Kotak
45 AND ABOVE

Yes 20 83.33
No 4 16.66
10
- 51 -
Life Insurance
17%
No
Yes
83%
I Invest or Not No. As a % of total

Yes 17 70.83
No 7 29.17
24
Invest
29%
No
Yes
71%
Portfolio No As a % of Total
Government securities 8 17.39
ULIP 9 19.56
Share Market 6 13.04
Bonds 5 10.80
46
- 52 -
Portfolio Government
securities
Mutual funds
11% 17%
ULIP
11% Share Markets

28%
Fixed Deposits
20%
13%
Bonds
I Investment Reasons No. As a % of Total

Building Cash Reserve 11 42.3
Funding For Children 6 23.07
IIncome Replacement 1 3.84
Retirement 5 19.23
26
Investment Reasons Asset Purchase
Building Cash
19% 12% reserves
Funding for
4% children
42% Income
23% replacement
Retirement
Most Important No. As a % of Total

High Returns 12 24
Safety 16 32
Liquidity 6 12
Tax Free Proceeds 10 20
Flexibility 6 12
50
- 53 -
Most Important
20
15
10 Series1
Flexibility
Liquidity
proceeds
Tax free
5
returns
Safety
0
High
ULIP Scheme No. As a % of Total

IICICI 1 9.09
LIC 4 36.36
UTI 4 36.36
Aviva 2 18.18
11
ULIP SCHEME
18% 9% ICICI
LIC
37% UTI
36% Aviva
Funds No. As a % Of Total

Equity 2 22.22
Balanced 7 77.78
Debt 0
Cash 0
9
- 54 -
0% FUNDS
0%
22% Equity
Balanced
Debt
78% Cash
Returns No. As a % of Total

Below 10% 2 22.22
10%-20% 6 66.67
Above 30% 1 11.11
9
Returns in ULIP
11% 22%
Below 10%
10%-20%
Above 30 %
67%
Mutual Fund Co. No. As a % of Total

Kotak 1 12.5
ICICI 2 25
HDFC 1 12.5
Franklin 1 12.5
Fidelity 1 12.5
UTI 1 12.5
IIDBI 1 12.5
- 55 -
8
Mutual Fund Co.

Kotak
ICICI
13% 12% HDFC
13%
24% Franklin
13% Fidelity
12% UTI
13%
IDBI
BUSINESS
INCOME No. As a % of Total

Below 2 3 16.66
b/w 2-5 9 50
Above 5 6 33.33
18
- 56 -
INCOME
17%
33% Below 2
b/ w 2-5
Above 5
50%
Invest or Not No. As a % of Total

Yes 13 72.222
No 5 27.778
0
18
Invest or Not
28%
Y es
No
72%
Life Insurance Cover No. As a % of Total

Yes 15 83.333
No 3 16.667
0
18
- 57 -
Life Insurance Cover
17%
Y es
No
83%

Retirement 3 11.538
Others 8 30.769
26
Reasons for Investment

Asset Purchase
31% 27% Building Cash

Reserves
Retirement
12% 30%
Others

High returns 10 31
Safety 8 25
Liquidity 3 9.3
Tax free 6 18
Proceeds
Flexibility 5 15
32
- 58 -
10
0
As a % of
PORTFOLIO No. total
ULIP 5 15.625
Government Securities 5 15.625
Others 2 6.25
32
PORTFOLIO
Mutual Funds
6% 19%
16% Fixed Deposits
ULIP
Share markets
22% 21%
Government Securities
16% Others

ICICI 1 16.667
LIC 3 50
Others 2 33.333
6
- 59 -
ULIP Scheme
17%
33% ICICI
LIC
Others
50%

Franklin 1 8.333
I ICICI 3 25
Reliance 4 33.333
Others 4 33.333
12
M.F Co.
8% Franklin
33%
25% ICICI
Reliance
34% Others
SERVICE

above5 15 28.3018868
b/w 2-5 32 60.3773585
below 2 6 11.3207547
53
- 60 -
Income
11% 28%
above5
b/ w 2-5
below 2
61%

Yes 36 67.9245283
No 17 32.0754717
0
53
Invest or Not
32%
Y es
No
68%

Yes 34 64.1509434
No 19 35.8490566
0
53
- 61 -
Life Insurance Cover
36%
Y es
64% No

I Income replacement 2 3.63
Building Cash Reserves 22 40
Retirement 9 16.36
Funding for Children 9 16.36
Others 4 72.72
55
Income
Reasons for Investment replacement
Asset Purchase
Building Cash
7% 4% 16%
16% Reserves
Retirement
16% Funding for

41%
Children
Others

High returns 19 52
Safety 4 11
Liquidity 4 11
Tax free 5 13
Proceeds
Flexibility 4 11
36
- 62 -
20
15
10
0

ULIP 18 21.42
Government Securities 6 7.14
Others 7 8.33
84
Mutual Funds
PORTFOLIO
Fixed Deposits
ULIP
7% 8% 23%
Share markets
18% Government
Securities
23% Others
21%
As a % of
ULIP Scheme No. total
ICICI 8 36.36
LIC 8 36.36
Bajaj Allianz 3 13.63
Others 3 13.63
22
- 63 -
ULIP Scheme
14% ICICI
14% 36% LIC
Bajaj Allianz
36% Others
As a % of
Returns on ULIP No. Total
Below 10% 4 18.18
10%-20% 11 50
20%-30% 4 18.18
Above 30% 3 13.63
22
Returns on ULIP
14% 18% Below 10%

18% 10%-20%
20%-30%
50% Above 30%

Kotak 7 22.58
IICCICI 4 12.90
Fidelity 5 16.12
Reliance 5 16.12
Others 10 32.25
- 64 -
31
M.F Co.
Kotak
23%
32% ICICI
Fidelity
13%
Reliance
16% 16%
Others
MARKET SURVEY
Name: ______________ Contact No. ___________ Age: ______
- 65 -
1. Occupation: Government Salaried Business Others (specify)
____
2. What is Your Family‘s Annual Income (Rs. Lakhs): Below 2 2 -5 above 5
3. How many dependents you have? None 1 2 More than 2
4. Do you have a Life Insurance Cover? Yes No
5. Do you invest? Yes No if yes, what is your investment concerns?

Income replacement at death/disability Building Cash reserves
Retirement Asset Purchase Funding for children
Others_____________________
(If ‘No’ - proceed to Q.13)
5. Rate one of the following investment factors of your importance.

High Return Safety Liquidity Tax Free Proceeds
Flexibility
7. Your current portfolio consists of?

Share Markets Fixed Deposits Government Securities Mutual Funds
Bonds ULIP Others (Please specify) ____________
Attempt (Q.8 – Q. 10) if you invest in ULIP schemes
8. With which company do you have the ULIP scheme?
LIC KOTAK ICICI PRUDENTIAL BAJAJ ALLIANZ
OTHERS _________
9. Which type of fund you invest in? Equity Debt Balanced Cash
10. How much returns are you getting on your ULIP investments annually
(approximately)? Below 10% 10% - 20 % 20%-30% above 30%
Attempt (Q.11 – Q. 12) if you invest in Mutual Funds
11. Which mutual funds are you investing in presently?

_______________________
12. How much returns are you getting on your investments annually
(approximately)?
Below 10% 10% - 20 % 20%-30% above 30%
- 66 -
13. Kotak Group is offering an opportunity to participate in investment schemes
generating high returns, would you like to avail it?
Yes No
THANK YOU!!!!!
Bibliography
www.irdaindia.org
www.amfiindia.com
www.kotaklifeinsurance.com
www.kotakmutual.com
- 67 -
www.wikipedia.com
- 68 -

Madhukr

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Executive Summary

Chapter 2 Executive Summary 2

Chapter 5 Mutual Funds 14

Chapter 6 ULIP vs. Mutual funds 17

Chapter 7 Where to invest 26

• A globally Indian financial services brand.

Its business driver is “Value creation rather than size alone”.

The Kotak Mahindra Group

• A globally Indian financial services brand.

Its business driver is “Value creation rather than size alone”.

• A globally Indian financial services brand.

Its business driver is “Value creation rather than size alone”.

• A globally Indian financial services brand.

Its business driver is “Value creation rather than size alone”.

• A globally Indian financial services brand.

Its business driver is “Value creation rather than size alone”.

• A globally Indian financial services brand.

Its business driver is “Value creation rather than size alone”.

• A globally Indian financial services brand.

Its business driver is “Value creation rather than size alone”.

Its business driver is “Value creation rather than size alone”.

• A globally Indian financial services brand.

Its business driver is “Value creation rather than size alone”.

• A globally Indian financial services brand.

Its business driver is “Value creation rather than size alone”.

• A globally Indian financial services brand.

Its business driver is “Value creation rather than size alone”.

KOTAK LIFE INSURANCE

ULIP (Unit Linked Insurance Plan)

ULIP VS TRADITIONAL INSURANCE PLAN

Traditionally, endowment plans have invested in government securities, corporate bonds

ULIPs are considered to be very expensive when compared to traditional endowment

With traditional endowment, there is no concept of a NAV. However, insurers do send

ULIP - KEY FEATURES (IN GENERAL):

6. The maturity benefit is the net asset value of the units.

8. Insurance companies have the discretion to decide on their investment

9. They are simple, clear, and easy to understand.

11. Lead to an efficient utilization of capital.

13. Provides capital appreciation.

ADVANTAGES OF INVESTING IN MUTUAL FUNDS:

4. Reduction of transaction costs

6. Convenience and flexibility

DISADVANTAGES OF INVESTING IN MUTUAL FUNDS:

TYPES OF MUTUAL FUNDS

MUTUAL FUNDS – ORGANIZATION

Organization of a Mutal Fund

MUTUAL FUND COMPANIES IN INDIA

ULIP V/S MUTUAL FUNDS

1. MODE OF INVESTMENT/ INVESTMENT AMOUNTS

Expenses can have far-reaching consequences on investors since higher expenses

description gilt saving gilt investment gilt investment

description bond bond bond short

description oppourtunities midcap contra flexi debt scheme

description liquid liquid liquid flotter short

ENTRY LOAD Nil Nil Nil Nil

description income plus flotter long term equity

description kotak 30 balance mnc tech global india

description kotak lifestyle

4. FLEXIBILITY IN ALTERING THE ASSET ALLOCATION

Investment Determined by the investor Minimum investment amounts are

OBJECTIVE OF THE SURVEY:

DATA COLLECTION METHOD