A REPORT ON A COMPARATIVE ANALYSIS OF THE PRODUCT PERFORMANCE AND FUND MANAGEMENT OF HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

2009

By BARUN KUMAR SINHA Regd. No-420721137

A report submitted in partial fulfillment of the requirements of PGDM Program

D !"# $%" o& L !"'

G% ded By'

Mr. PRAVEEN KUMAR NAYAK FINANCIAL PLANNING OFFICER HDFC STANDARD LIFE INSURANCE INSURANCE BHUBANESWAR

Mr. RAVI SINGH FINANCIAL RESEARCH ANALYST HDFC STANDARD LIFE BHUBANESWAR

Fund Manage en!

2009

REGIONAL COLLEGE OF MANAGEMENT BHUBANESWAR

ACKNOWLEDGEMENT
The feeling of accomplishment and exhilaration that escorts the successful completion of task would be incomplete without the mention of the people who made it possible. Modern day managers need to be smart workers and also steady performers. This motto can be achieved only by being passionate and zealous attempt which requires persistent determination, guidance, support and encouragement. This provides me an opportunity to greet heartily all those whose immense support, encouragement and motivational guidance served as a bonfire and that enlightened my smart efforts with success. I earnestly thank Mr. internship training. I express my sincere thanks to Mr. !raveen assisting me throughout this pro-ect. #espite their tight schedules they have tried to give me every possible facility which made it possible for me to achieve my pro-ect work without any hindrance. umar )ayak, '#M *#irect+ of $#%& alpatru !anda, "ranch Manager #irect of $#%& 'tandard (ife

Insurance &ompany (td. who provided me with an opportunity to pursue my summer

'tandard (ife Insurance &ompany (td, and my company guide Mr. ,avi 'ingh for

Fund Manage en!

I would like to express my sincere gratitude to !rofessor Mr. Munir Mohammad, and my pro-ect faculty guide Mr. ,avi 'ingh for guiding, mentoring and providing me support to fulfill every action to accomplish this pro-ect. $is . years of wide experience in the field of (ife Insurance and in the educational sector, being a highly enriched management faculty has served me an useful resource to accomplish my pro-ect work and it unleashed my latent talent that urgently developed my personality. (ast but not the least I thank my parents and family members along with friends and seniors term. for their moral support, help, kind, co/operation and continuous encouragement, which helped me to withstand every difficulty during my pro-ect
2009

DECLARATION
I BARUN KUMAR SINHA, do hereby declare that the pro-ect report submitted by me in the partial fulfillment of the requirement for the Post Graduate Diplo Ma!a"e e!t #PGDM$ #egree from ,egional %olle"e o& Ma!a"e B(u)a!es*ar under All I!dia Ma!a"e not published earlier. a i! e!t'

e!t Asso+iatio! #AIMA$' Del(i' is a

report of independent work and it has not been submitted to any other institution and

Si"!ature

Fund Manage en!

2009

CERTIFICATE OF THE INTERNAL GUIDE

This is to certify that the work entitled FUND MANAGEMENT is a summer pro-ect done by Mr. Barun Kumar Sinha a student of PGDM, bearing ,egistration no. 420721137 under my guidance and supervision for the partial fulfillment of PGDM curriculum of AIMA, Delhi to the best of my knowledge.

The summer !ro-ect ,eport embodies the work of the candidate himself has been duly completed, is up to standard both in the respect to the contents and language for bearing referred to the examiner.

Fund Manage en!

INTERNAL PROJE T GUIDE Mr. Ra!i Sin"h

2009

PREFACE

Fund Manage en!

I consider myself very lucky as I got the training approval and pro-ect assignment by $#%& 'tandard (ife. I got opportunity to get a practical exposure into actual environment and it provided me the golden opportunity to make my theoretical concept of financial management in a more clear way.
2009
Fund Manage en!

CONTENTS
2009

#APTER$%

I. Introduction II. 'cope III. 0b-ective I1. Methodology 1. (imitation

#APTER$&

I. II. III. I1.

&ompany !rofile $istory and 2volution 1ision 1alue

#APTER$'

I. II.

#ifferent Type of (.I.!olicy '30T 4nalysis

#APTER$(

I.

5uestionnaire 4nalysis
Fund

Manage en!

II. III. I1.

Ma-or !layers M% 1s 6(I!

2009

%und Management

#APTER$)

I. II.

&onclusion "ibliography

INTRODUCTION
The sub-ect Insurance is a vast thing to elaborate, insurance is related to the protection of the economic value of assets. 2very asset has a value and in its lifetime there may sometimes come a phase where an unfortunate event may destroy it or make it incapable of giving the benefits. In such cases Insurance forms a mechanism that helps to reduce the effects of such adverse situation, as it promises to pay to the owner or beneficiary of the asset, a certain sum if the loss occurs. This does not mean that it protects the asset it only compensates the loss, assets are insured because they are likely to be destroyed or made non/ functional before the expected time. If there is no economic consequence it cannot be insured for example love and affection of parents, leadership of managers, sentimental attachments towards the family, creative abilities etc.

Fund Manage en!

Insurance is been known to exist in some form or the other since 7888 "&. The &hinese traders, travelling treacherous river rapids distributed their goods among several vessels, so that the loss from any one vessel being lost, would be partial and not total. The 9reeks had started benevolent societies died. The business of insurance is traced to the (loyd:s &offee house in (ondon. Traders used to gather there and agreed to share the losses to their goods while being carried by ships. In India insurance began in ;<;< with life insurance being transacted by an 2nglish company, the "harat Insurance &o. followed the 0riental (ife Insurance &o (td. The first Indian insurance company was the "ombay Mutual 4ssurance 'ociety (td, formed in ;<.8 in Mumbai. This in ;<=> in #elhi, 6nited India in &hennai, the $industan &ooperative in olkata. These Indian &ompanies started as a result of the swadeshi movement in the early ;=88s. "y the year ;=?>, when the life Insurance business was nationalized and the (ife Insurance &orporation of India *(I&+ was formed on ;st 'ept;=?>, there were ;.8 companies and .? provident fund societies transacting (ife insurance business in India. The mechanism of Insurance is very simple. !eople who are exposed to the same risk come together and agree that, if any one of them suffer a loss, the others will share the loss and make good to the person who loose. Insurance is not only a tool for acquiring risk but also works as a very important tool for the economic development for the country. 4s for development, investments are necessary. Investments are made out of savings. 4 life insurance company plays a ma-or role as it is an instrument for the mobilization of savings of people, particularly from the middle and lower income groups. These savings are channeled into investments for economic growth as the insurance act has strict provisions to ensure that. This directly affects the lives of the people and their economic well/being. 4mong the private life insurance companies $#%& 'tandard (ife is the first to start life insurance business in India $#%& 'tandard (ife Insurance &o. (td. is a -oint venture between $#%& (td., India@s largest housing finance institution and 'tandard (ife 4ssurance &ompany, 2urope@s largest mutual life company. $#%& '(I& was the first life insurance company to be granted a certificate of registration by the I,#4 on the A7rd of 0ctober A888. $#%& as on March 7;, A88. holds <;.= per cent of equity in the -oint venture.
Fund Manage en!

in the late .th century 4#, to take care of the funeral and families of members who

2009

This pro-ect is a brief general study on $#%& 'tandard (ife Insurance &ompany (imited *$#%& '(I&+ and few of its competitors. This analytical report describes about the organization, its formation, its products, its charges and other aspects. It is also an analysis of $#%& '(I& and its fund management with its nearest competitors like "a-a- 4llianz, I&I&I !rudential and "irla 'un (ife. It also includes a survey or field
2009

study to understand the mindset of the general public about the 6nit (inked Investment !lans *6(I!s+ floated by $#%& '(I& and its competitors which are the hottest products in the market and a source of generating revenue for the company.

Fund Manage en!

SCOPE OF THE STUDY

The scope of this extensive study extends to learning about latest developments and best practices in (ife Insurance Industry, the study also extends to the comparison of various kind of charges imparted on the investors which effects the ,0I.It also focuses the theory of investment done specially in its 6(I! !lans by $#%& '(I& which helps the investors to yield higher returns in comparisons to its competitors. Identifying various factors affecting purchase of 6(I!s and. %inding out ways to deal with prospects to turn them into customers
2009

&omparison of Mutual %unds and 6(I! to give a clear idea that how investment done for a longer period beat the returns provided by the Mutual %und. &omparison of 6(I! ,eturns with the ,olling ,eturns from 'ensex giving insight about the equity and capital markets. %indings will be useful to an extent for undertaking required changes in marketing strategies of the company. #ocumentation of this pro-ect would be used to train and equip employees of $#%& '(I& Insurance with best industry practices. 4ll the work done during this pro-ect is for the internal purposes of $#%& '(I& Insurance &o. (td. 4s all the information is confidential and proprietary, the presentations and reports of company will not be available for public disclosure.

Fund Manage en!

PURPOSE OF THE REPORT

2009

The

pro-ect

undertaken

clearly emphasizes on the evaluation of

fund

management, its charges levied on the customers by $#%& 'tandard (ife Insurance &ompany (imited with its competitors which are among the leading private insurance players in the market. It also emphasizes on the competitive analysis of the other charges including !olicy 4dministration &harges and others in $#%& '(I& to few of its competitors. This competitive analysis will bring a clear picture of how $#%& '(I& emerges as a market leader among its competitors when it comes to the returns on investments of the investors.

There is also a survey undertaken at various locations like banks, important public offices to know their views about the private insurance players in the market. The survey is also meant to inform the public surveyed about the above mentioned topic and to make them aware about the products distributed by $#%& '(I& in the market which in turn helps the company in generating awareness among the public and which would ultimately lead to generate better sales and in the process would lead in generating greater amount of revenue in future.

Fund Manage en!

PROPOSED METHODOLOGY
To make a claim as per the research conducted and to prove that it is accurate enough gives weight to any kind of research pro-ects. To make sure that the claim made satisfies all the grounds of perfection, it is very necessary toB/
2009

Begin with a proper method of data collection wherein : 'ufficient data can be made availableC The method is beneficial for primary data collectionC The method covers all technical issuesC 2asy assessment can be done after data collectionC It is easily understood by both collector and the sourcesC The method should make data structure easyC The method should provide flexibility in regard to open ended queries.

eeping in consideration the above mentioned factors the following Methodology has been adopted to facilitate the pro-ect undertakenB

Survey Technique
" " 5uestionnaire B &lose ended InterviewB %ace to face and Telephonic Interview.

S!urce" !# c!$$ec%in& 'ri()ry *)%)

Fund Manage en!

"

&ommercial "anks like 'tate "ank of India, 'yndicate "ank, 4ndhra "ank, I&I&I "ank, 'tate "ank of $yderabad, 'tate "ank of Travancore.
2009

"

Important !ublic 0ffices like 4ccountant 9eneral 0ffice, ,egional ,esearch (aboratory.

Fund Manage en!

LIMITATIONS OF THE STUDY

4s the pro-ect undertaken is on (ife Insurance which is endless and vast and is one of the most emerging sectors, the pro-ect study is analyzed by taking its most nearest rivals into consideration.
2009

4s the topic of comparative analysis and fund management is very vast, focus is given on B/ " Charges B %und Management &harges, Mortality &harges and !olicy 4dministration &harges. " FundsB 9rowth %und, "alanced Managed %und and (iquid %und.

'ome data regarding %und management is strictly confidential to the %und Manager and to the top crust of the management were not accessible.

Fund Manage en!

2009

COMPANY PROFILE
Incorporated in ;=.. as the first specialized mortgage company in India

4lmost =8D of initial shareholding in the hands of domestic institutions and retail investors. &urrently ..D of shares held by foreign institutional investors "esides the core business of mortgages $#%& has evolved into a financial conglomerate with holdings inB $#%& 'tandard (ife Insurance &ompany / $#%& holds .<.8.D $#%& 4sset Management &ompany / $#%& holds ?8.;D $#%& "ank / $#%& holds AA.A?D Intel net 9lobal *"usiness !rocess 0utsourcing+ / $#%& holds ?8D $#%& &hubb 9eneral Insurance &ompany / $#%& holds .ED &urrently over ? mn. policyholders benefiting from the services offered %ounded in ;<A?, company supporting generations for last ;<8 years 2urope:s largest mutual life insurer.

E+'erience In The In*i)n M)r,e%

%irst market entry F ;<E. Innovative products G processes (ast claim settled in ;==.

Gr!u' C!(')nie"
S*an+ar+ Li,e Ban-. %ast growing banking company in 6 S*an+ar+ Li,e In!e/*men*/. Investment provider ? star award for the eighth successive year S*an+ar+ Li,e #eal*h0are. 6 :s leading health insurer. $ealth insurance company of the year A887

HDFC S%)n*)r* Li#e In"ur)nce

(ife Insurance pro-ect team established / Hanuary A888 *Mumbai+ Incorporation / ;Eth 4ugust A888
Fund Manage en!

 %irst private sector (ife Insurance company to be granted a certificate of registration / A7 0ctober A888 Initial 'hareholding / $#%& <;.E D, 'tandard (ife ;<.> D
2009

-)ri!u" c!r'!r)%e #ie$*" !# HDFC

F &(&) (* Co&g*o+e#("e

HDFC CHUBB GENERAL INSURANCE CO. LTD.

SECURITISATION

DISTRIBUTION

Fund Manage en!

COMPANY PORTFOLIO
2009

Fund Manage en!

2009

Fund Manage en!

HISTORY OF LIFE INSURANCE

The life insurance industry in India dates back to ;<;<, when a "ritish firm 0riental
2009

(ife Insurance &ompany opened its office in

olkata, followed by the I"ombay (ife

4ssurance &ompany: in ;<A7. #uring the "ritish rule in India, the Indian (ife 4ssurance &ompanies 4ct was passed in ;=;A, which was followed by the Indian Insurance &ompanies 4ct, ;=A<, enabling the government to collect the data regarding life and non/life business conducted by both Indian and foreign insurance companies. The ;=A< 4ct was amended and a new act, IInsurance 4ct: was formed in ;=7<. In ;=.A, the government of India took over the management of ;8> private general insurance companies and set up the 9eneral Insurance &orporation *9I&+. 0ver the next few years, (I& expanded its network to all parts of the country and emerged as one of the largest corporations in India. The growth of the Indian insurance industry was minimal in the ;=>8s and ;=.8s due to factors like low savings, low investment, inadequate infrastructure, and low literacy level. $owever, changes in the country:s economy in ;=<8s, such as growth of industrialization, infrastructure, the capital markets, savings rate and capital formation resulted in tremendous growth in the life insurance industry, which meant the growth of (I&. The ;==8s saw a drastic change in the insurance sector. 4s this was an era of liberalization and globalization the 9overnment thought to allow private players to do business of insurance in India. 4t the same time keeping in view about the enormous risk in the sector 9overnment thought to allow foreign players with an expertise in the field to collaborate with the interested Indian companies and start the business. Moreover to keep a track of all this 9overnment decided to form a regulatory body to monitor and take care of every activity of the companies so that the investors do not fear the threat of loss. $ence, reforms in the Insurance sector were initiated with the passage of the I,#4 "ill in !arliament in #ecember ;===. The I,#4 since its incorporation as a statutory body in 4pril A888 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. %oreign investment was also

Fund Manage en!

allowed and capped at A>D holding in the Indian insurance companies. In the private sector ;? life insurance companies have been registered till now.
2009

IRDA

I,#4 *Insurance ,egulatory and #evelopment 4uthority+ is the authority to regulate the insurance industry in India and has the powers to issue registration certificates and licenses, lay down codes of conduct, and monitor the performance of insurers and other persons referred to in the Insurance 4ct and to make regulations to carry out its purposes. It amended the Insurance 4ct, ;=7<, (I& 4ct,;=?> and the 9eneral Insurance "usiness *)ationalization+ 4ct,;=.A. %unctions that are expected from I,#4 o o To protect the interest of and secure fair treatment to policyholdersC To bring about speedy and orderly growth of the insurance industry *including annuity and superannuation payments+, for the benefit of the common man, and to provide long term funds for accelerating growth of the economyC o To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and competence of those it regulatesC o To ensure that insurance customers receive precise, clear and correct information about products and services and make them aware of their responsibilities and duties in this regardC o To ensure speedy settlement of genuine claims, to prevent insurance frauds and other malpractices and put in place effective grievance redressal machineryC o To promote fairness, transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market playersC o To take action where such standards are inadequate or ineffectively enforcedC o To bring about optimum amount of self/regulation in day to day working of the industry consistent with the requirements of prudential regulation.
Fund Manage en!

2009

Ev!$u%i!n !# In"ur)nce

$umans have strived for security since the beginning of their existence. 4t its earliest point, security existed if there was an assurance of food, warmth and shelter. The "ible relates the story of how, in ancient 2gypt, Hoseph set aside part of the crop in good years in an attempt to cover the expected shortfall in years of drought. 4s society developed and the roles of individuals within the economic framework became more specialized, the need for economic and financial security increased. 2conomic security is opposite of economic risk *risk+. ,isk derives from variation from the expected, not from probability. 4 modern industrial society provides many examples of risk. 4 homeowner faces a large variation associated with the potential economic loss caused by a house fire. 4 driver faces a similar though less variable, potential economic loss, if his or her car is damaged. 4 larger possible economic risk would be associated with in-ury of a third party in a car accident for which you are responsible. 2xamples of early informal insurance arrangements can be found in cooperatives and fraternal that existed in 2urope over E88 years ago. %or example, the farmers in a certain area would agree, usually informally, that if one farmer:s barn was destroyed, the community would see that it was rebuilt. If the breadwinner in a family died, the community would pass the hat to establish a fund for the surviving departments. In this informal arrangement each person:s economic risk was shared or pooled among the members of the community. These informal systems proved to be adequate for several hundred years. 4t the time of the industrial revolution, however the need for a more formal system arose. "ecause of the rapid urbanization of the population, it became true that one:s neighbor could be a stranger with whom one had no interests in common. $ence, it was no longer sufficient to expect a communal or cooperative response when one family unit met with an economic reversal.

Fund Manage en!

It was perfectly natural that the JpoolingK concept of the existing cooperatives and fraternal became formalized in the new insurance industry. 6nder the new formal arrangement, each policyholder still implicitly pooled his or her own risk with all other know or have any connection with any other policyholder. policyholders. $owever it was no longer necessary for any individual policyholder to
2009

Fund Manage en!

Li#e In"ur)nce
Me)nin&
(ife Insurance is a contract by which you can protect yourself against specific losses we face numerous risks F failing health, financial losses, accidents and even fatalities, our instinct drives us to cover ourselves against those risks. Though an insurance cover can:t protect us against the emotional losses arising out of these risks, it only softens the economic crisis that usually accompanies these losses. by paying a premium over a period of time. 'ince each one of us, during our life time
2009

.)c,&r!un*
Insurance business is divided into two broad categoriesB (ife Insurance )on/(ife Insurance o o o %ire Marine Miscellaneous Insurance.

(ife Insurers transact life insurance businessC the rest is transacted by 9eneral Insurers. )o composites are permitted as per law. The business of Insurance essentially means defraying risks attached to any activity over time *including life+ and sharing the risks between various entities, both persons and organizations. Insurance &ompanies *I&s+ are important players in financial markets as they collect and invest large amounts of premium. Insurance products are multipurpose and offer the following benefitsB " &hannelize savings in to the sectors that need huge and long term investment G help in the growth of the society as a whole " " !rotect the individual against all financial odds $elps in the accumulation of savings through periodic small investment:s to meet future expenses like daughters marriage, higher education and retirement solutions.

Fund Manage en!

KEY FEATURES OF LIFE INSURANCE INDUSTRY

o N1mina*i1n. / 3hen one makes a nomination, as the policyholder you continue to be the owner of the policy and the nominee does not have any right receive the policy monies in case of your death within the term of the policy. o A//i"nmen*: / If your intention is that your policy monies should go only to a particular person, you need to assign the policy in favor of that person. o Dea*h Bene,i*. /The primary feature of a life insurance policy is the death benefit it provides. !ermanent policies provide a death benefit that is guaranteed for the life of the insured, provided the premiums have been paid and the policy has not been surrendered. o a/h 2alue: /The cash value of a permanent life insurance policy is accumulated throughout the life of the policy. It equals the amount a policy owner would receive, after any applicable surrender charges, if the policy were surrendered before the insured@s death. o Di!i+en+/: / Many life insurance companies issue life insurance policies that entitle the policy owner to share in the company@s divisible surplus. o Pai+$U3 A++i*i1n/. / #ividends paid to a policy owner of a participating policy can be used in numerous ways, one of which is toward the purchase of additional coverage, called paid/up additions. o P1li04 L1an/. / 'ome life insurance policies allow a policy owner to apply for a loan against the value of their policy. 2ither a fixed or variable rate of interest is charged. This feature allows the policy owner an easily accessible loan in times of need or opportunity. o 1n!er/i1n ,r1m Term *1 Permanen*. / 3hen in need of temporary protection, individuals often purchase term life insurance. If one owns a term policy, sometimes a provision is available that will allow her to convert her policy to a permanent one without providing additional proof of insurability.
2009

under the policy so long as you are alive. The nominee has only the right to

Fund Manage en!

Di/a5ili*4 6ai!er 1, Premium./ 3aiver of !remium is an option or benefit that can be attached to a life insurance policy at an additional cost. It guarantees that coverage will stay in force and continue to grow.
2009

-i"i!n
@The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry@. 7The m1/* 15!i1u/ 0h1i0e ,1r all7.

-)$ue"
" " " " " " Integrity Innovation &ustomer centric !eople &are J0ne for all and all for oneK Team work Hoy and 'implicity

Fund Manage en!

DIFFERENT TYPES OF LIFE INSURANCE POLICIES

2009

Endowment Policy:

This policy covers risk for a specified period, at the end of which the sum assured is paid back to the policyholder, along with the bonus accumulated during the term of the policy. It is this feature / the payment of endowment to the policyholder when the policy@s term is complete / that rightly accounts for the popularity of endowment policies.

Whole Life Policy:

This policy runs as long as the policyholder is alive. In other words, risk is covered for the entire life of the policyholder. The whole life policy amount and bonus are payable only to the nominee of the policy on the death of the policyholder. The policyholder is not entitled to any money during his or her own lifetime F there is no survival benefit.

Term Life Policy:

This policy covers risk only during the selected term period. If policyholder survives the term, the risk cover comes to an end. 4 term policy is designed to meet the needs of people who are initially unable to pay the larger premium required for a whole life or an endowment assurance policy. )o surrender, loan or paid/up values are granted under these policies because reserves are not accumulated. 0n the usual term assurance plans, accident andLor disability benefits are not granted.

Money Back Policies:

6nlike endowment insurance policies, where the survival benefits are payable at the end of the endowment period, money/back policies provide for periodic payments of partial survival benefits during the term of the policy, as long as the policyholder is alive. 4n important feature of this type of policies is that in the event of death at any time within the policy term, the death claim comprises the full sum assured, without deduction of any of the survival benefit amounts, which may have already been paid as money/back components. 'imilarly, the bonus is also calculated on the full sum assured.

Fund Manage en!

2009

Joint Life Policies:

&hildren:s This policy is similar to endowment policies offering maturity benefits to the policyholders, apart from covering risks like all life insurance policies. "ut -oint life

policies are categorized separately as they cover two lives simultaneously, thus offering a unique advantage in some cases, notably, for a married couple or for partners in a business firm.

Ins rance Policies:

This policy includes those through which parents or legal guardians can provide for life insurance for their child from birth. The risk cover commences from the child attaining the age of ;AL;.L;<LA; *known as the #ate of ,isk+, and will vest itself on the child upon his or her attaining adulthood at the completion of A; years, if the case demands so. 6ntil the child attains adulthood, the parents are owners of the policy and have to pay the premium periodically.

Pension Plan or !nn ities:

4n annuity is an investment that you make, either as a single lump sum amount or through installments paid over for some years, in return for which you receive a specific sum every year, every half/year or every month, either for life or for a fixed number of years. 4fter the death of the individual or after the fixed annuity period expires for annuity payments, the invested annuity fund is refunded, perhaps along with a small addition, calculated at that time. 4nnuities differ from all the other forms of life insurance discussed so far in one fundamental way F an annuity does not provide any life insurance cover but, instead, offers a guaranteed income either for life or a certain period.

Women"s Policy:
3omen:s !olicy provides funds for women in times of needs like education, marriage or sickness, with 9uaranteed and (oyalty 4dditions during the policy term and after maturity.

Fund Manage en!

2009

#ro p Ins rance:

9roup Insurance offers life insurance protection under group policies to various groups such as employers F employees, professionals, co/operatives, and weaker sections of society. It also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost. "esides providing insurance coverage, it also offers group schemes to employers that allow the funding of the gratuity and pension liabilities

Fund Manage en!

SWOT ANALYSIS

'30T, which is the acronym for strength, weakness, opportunities an d threats. The environment in which an organization exist can, therefore, we describe in terms of the opportunities and threats operating external environment a part from the strength and weakness existing in the internal environment. The four environment influence could be described as followsB/

2009

$TE%#T&
'trength is an inherent capacity which an organization can use to gain strategic advantage. 4n example of strength is superior research development skill which can be used for new product development so that the company can gain strategic advantage. 2x/ "ox pattern investment theory, %und management charges used by $#%&.

WE!'%E$$
3eakness is an inherent limitation or constraint which creates strategic

disadvantages. 4n example of weakness is over dependence on few product lines, which is potentially risky for a company in time of crisis.

(PP()T*%IT+
0pportunity is favorable condition in the organization environment which enables is to consolidate and strengthen its position. 4n example of an opportunity is a growing demand for the product that a $#%& provides.

T&)E!T
Threat is an unfavorable condition in the organization environment which creates a risk for, or causes damage to, the organization. 4n example of threat is the

Fund Manage en!

emergence of strong new competitors like I&I&I !,6, "4H4H 4((I4)M, who are likely to offer stiff competition to the existing companies in an industry.
2009

Through such analysis, the strengths and weaknesses existing within an organization can be matched with the opportunities and threats operating in the environment so that an effective strategy can be formulated. 4n effective organizational strategy, therefore, is one that capabilities on the opportunities through the use of strengths and neutralizes the threats by minimizing the impact of weaknesses.

Fund Manage en!

2009

/UESTIONNAIRE ANALYSIS

This plays a vital role in the field of study. It helps to portray the perfect knowledge and understanding about the awareness of the general public on which the survey is conducted. This is a very important tool in the hands of the marketing and finance professionals as it helps them to understand the market by which they can plan different strategies and work towards it so as to reach the ladder of success. 4biding this rule I also conducted a survey in different locations among different status of people. This survey was about the awareness of the general public about the private life insurance sector. 'o it was done among people with different income brackets who also fall under the income tax section. The findings of the data to some extent were very much interesting. The primary ob-ective of the analysis was to find the exact view of the public on how they rate the companies. The findings are as followsB

Ran1 2 3 4 / 1 7 3 4 10 11 12 13 14

In/urer
,I% Ba-a- Allia!. I%I%I Prude!tial SBI ,i&e HD0% Sta!dard ,i&e 2ata AIG Birla Su! ,i&e Relia!+e ,i&e Ma5 Ne* 6or7 A8i8a ,i&e ING 9:s:a Kota7 ;ld Mutual Met,i&e Sa(ara ,i&e

Fund Manage en!

1/

S(rira

,i&e

2009

Income Bracket:
The survey was conducted among the income group ofB " " " 7/? lakhs A/7 lakhs ;/A lakhs

This was done because the survey was on the insurance sector and this was the need of the different earning groups as they are survived by family members who are dependent on them.

Ta, $la-s:
0ne of the ma-or reasons behind investing in insurance sector is taxation and the tax slabs according to my findings fall in the order ofB " " " ;>888/78888 7;888/?8888 8/;>888

!nn al premi m in.estment in Life ins rance:

4n interesting point came to view during my survey was due to the exemption on income tax if investment done in life insurance resulted in people paying huge chunk of money as premiums. The premium slabs were as follows in the order ofB " " " 8/78888 7;888/?8888 ?;888/.?888
Fund Manage en!

"

.>888/; lakh

M(,o# P*(ye#!'
LIC:

(ife Insurance &orporation of India is a ;88D government held !ublic 'ector

&ompany. "eing the first to be established (I& is the forerunner in the (ife Insurance sector. (I& continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth tra-ectory surpassing its own past records. (I& has issued over one crore policies during the current year.

2009

ICICI:
I&I&I !rudential (ife Insurance &ompany is a -oint venture between I&I&I "ank / one of India@s foremost financial services companies/and !rudential plc / a leading international financial services group headquartered in the 6nited and !rudential plc holding A>D. %or the nine months period 4pril ; to #ecember 7;, A88., the company garnered new business weighted premium of ,s. E,?<> crore and has underwritten around ;< lakh policies during the period. The company has assets held over ,s. A<,888 crore. It began its operations in #ecember A888 after receiving approval from Insurance ,egulatory #evelopment 4uthority *I,#4+. ingdom. Total capital infusion stands at ,s. 7...A billion, with I&I&I "ank holding a stake of .ED

B(,(, A** (&- L .e I&!%#(&)e Co.

"a-a- 4llianz (ife Insurance &ompany is a .EBA> Hoint venture between "a-a- 4uto limited one of the biggest A/ G/ 7 wheeler manufacturers in the world and 4llianz 4I9 , one of the world:s largest (ife Insurance companies. The company was registered on 7L<LA88;. The total no. of policies sold in %N A88>/8. was A8,.=,A;.. 4s on 7;st March A88. "a-a- 4llianz 9eneral Insurance maintained its premier position in the industry by garnering a premium income of ,s.;<87 crore.

HDFC S"(&d(#d L .e I&!%#(&)e

$#%& 'tandard (ife Insurance &ompany < HD0% (olds 31=4> and 'tandard (ife Insurance holds ;<.;D. $#%& 'tandard (ife Insurance &o. (td. is a -oint venture
Fund Manage en!

between $#%& (td., India@s largest housing finance institution and 'tandard (ife 4ssurance &ompany, 2urope@s largest mutual life company. It was the first life insurance company to be granted a certificate of registration by the I,#4 on the A7rd of 0ctober A888. 'tandard (ife, 6
2009

was founded in ;<A? and has experience of over ;<8 years.

&ompanies. The company is rated as Overy strongO by 'tandard G !oor@s *44+ and OexcellentO by Moody@s *4aA+.

B #*( S%& L .e I&!%#(&)e Co+/(&y

"irla 'un (ife Insurance &ompany is a .EBA> ratio -oint venture between "irla group and 'un (ife %inancial. It is a private sector company. The company was registered on 7;L;LA88;. 3ithin E years of its launch, "'(I has cemented its position as a leading player in the !rivate (ife Insurance Industry.

SBI L .e I&!%#(&)e Co+/(&y L"d'

'"I (ife Insurance is a -oint venture between the 'tate "ank of India and &ardiff '4 of %rance. '"I owns .ED of the total capital and &ardiff the remaining A>D. 'tate "ank of India en-oys the largest banking franchise in India. 4long with its . 4ssociate "anks, '"I 9roup has the unrivalled strength of over ;E,?88 branches across the country, arguably the largest in the world. &ardiff is a wholly owned subsidiary of ")! !aribas, which is the 2uro Mone:s leading "ank. ")! !aribas is one of the oldest foreign banks with a presence in India dating back to ;<>8.The company was registered on 7;L7LA88;.

Re* (&)e L .e I&!%#(&)e )o+/(&y L"d.

,eliance (ife Insurance &ompany (imited is a part of ,eliance &apital (td. of the ,eliance / 4nil #hirubhai 4mbani 9roup. ,eliance &apital is one of India:s leading private sector financial services companies, and ranks among the top 7 private sector financial services and banking companies, in terms of net worth.

T0e TATA AIG G#o%/

Fund Manage en!

Tata 4I9 (ife Insurance &ompany (imited *Tata 4I9 (ife+ is a -oint venture company, formed by the Tata 9roup and 4merican International 9roup, Inc. *4I9+. Tata 4I9 (ife combines the Tata 9roup:s pre/eminent leadership position in India and 4I9:s global presence as the world:s leading international insurance and financial services organization. The Tata 9roup holds .E per cent stake in the insurance venture with 4I9 holding the balance A> percent. Tata 4I9 (ife provides insurance solutions to individuals and corporate. Tata 4I9 (ife Insurance &ompany was licensed to operate in India on %ebruary ;A, A88; and started operations on 4pril ;, A88;.
2009

M(1 Ne2 Yo#3 L .e'

Max )ew Nork (ife Insurance &ompany (td. is a -oint venture between )ew Nork (ife, a %ortune ;88 company and Max India (imited, one of India@s leading multi/business corporations. The company has positioned itself on the quality platform. In line with its vision to be the most admired life insurance company in India, it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork. The strategy is to establish itself as a trusted life insurance specialist through a quality approach to business. The company was registered on >L<LA88;.

ING Vy!y( L .e &!%#(&)e'

I)9 1ysya (ife Insurance &ompany (imited a part of the I)9 9roup the world:s largest financial services providerP entered the private life insurance industry in India in 'eptember A88;.I)9 is a global financial institution of #utch origin offering banking, insurance and asset management to over >8 million private, corporate and institutional clients in over ?8 countries. I)9 operates through three businesses in India, I)9 1ysya (ife Insurance, I)9 1ysya "ank and I)9 Investment Management. It has now served over ?.? lakh customers and is an emerging life insurance company in the private sector.

Me"L .e I&d ('

Met(ife India Insurance &ompany (imited *Met(ife+ is an affiliate of Met(ife, Inc. and was incorporated as a -oint venture between Met(ife International $oldings, Inc., The Hammu and ashmir "ank, M. !allon-i and &o. !rivate (imited and other private

Fund Manage en!

investors. Met(ife India is a .EBA>-oint venture between H G

"ank, !allon-i G &o and

Met(ife. Met(ife is one of the fastest growing life insurance companies in the country. It serves its customers by offering a range of innovative products to individuals and group customers at more than >88 locations through its bank partners and company/ owned offices. The company was registered on >L<LA88;.
2009

A4 4( L .e I&!%#(&)e I&d ('

4viva is 6 :s largest and the world:s fifth largest insurance 9roup. It is one of the leading providers of life and pensions products to 2urope and has substantial businesses elsewhere around the world. 3ith a history dating back to ;>=>, 4viva has a E8 million/customer base worldwide. It has more than Q7>E billion of assets under management. In India, 4viva has a long history dating back to ;<7E. In India, 4viva has a -oint venture with #abur, one of India@s oldest, and largest 9roup of companies. 4 professionally managed company, #abur is the country@s leading producer of traditional healthcare products. 4viva (ife insurance is a .EBA>-oint venture between 4viva and #abur. The company was registered on ;EL?LA88A.

S(0(#( I&d ( L .e I&!%#(&)e Co+/(&y L"d.'

'ahara India (ife Insurance &ompany (td./ has been granted license by the insurance regulator F the I,#4 on >th %ebruary A88E. 3ith this approval 'ahara India (ife Insurance &ompany (td. becomes the first wholly and purely Indian company, without any foreign collaboration to enter the Indian (ife insurance market. The launch is with an initial paid up capital of ;?. crores.

S0# #(+ * .e &!%#(&)e )o+/(&y L"d'

'hriram (ife Insurance &ompany is the -oint venture between the 'hriram 9roup and the 'anlam 9roup in .EBA> ratio. The 'hriram 9roup is one of the largest and well/ respected financial services conglomerates in India. The 9roup@s main line of activities in financial services include chit fund, truck financing, consumer durable financing, stock broking, insurance broking and life insurance. 'anlam (ife Insurance (imited, a part of the 'anlam 9roup, is one of the largest providers of life insurance in 'outh 4frica with 7.A million individual policies under administration. It has a significant presence across 'outh 4frica, 6nited ingdom and )amibia and is a ma-or provider of

Fund Manage en!

life insurance, retirement annuities, saving and investment products, personal loans, home loans and trust services to individual
2009

Ko"(3 M(0 &d#( OLD M%"%(*'

otak Mahindra 0ld Mutual (ife Insurance (td. is a .EBA> -oint venture between Mahindra "ank (td.* M"(+, and 0ld Mutual plc. 4t otak

otak (ife Insurance, it aims to

help customers take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent. The company was registered on ;8L;LA88;.

B0(#" A1( L .e I&!%#(&)e'

"harti 4R4 (ife Insurance is a -oint venture between "harti, one of India:s leading business groups with interests in telecom, agri business and retail, and 4R4, world leader in financial protection and wealth management. The -oint venture company has a .ED stake from "harti and A>D stake of 4R4. The company launched national operations in #ecember A88>.

Fund Manage en!

MF -" ULIP MF
;. 'olves only investment purpose. A. )o additional "enefits 7. 'hort Term 0b-ective E. )o loyalty additions ?. (ess #iversification of Investment >. In mutual fund most of investors are corporate and Institutional investors they have a short term goals, so the fund manager is under heavy pressure to book profits in short giving them hardly any time to have discipline in investing .. 'hifting portfolio involves cost i.e. 2ntry and 2xit (oad. <. 4s being short term in nature the returns are affected, as the market is more volatile in short term. *. +'ereas at no cost. ,. T'e market in long r(n is alwa s less volatile - t'erefore 'ave .'own good ret(rns =. )o tax benefits unless it is an 2('' /. &remi(ms (nder %L$&. are Ta0 e0empted (nder ,1c ;8. ,eturns in M% are tax free if held for more than a year or else they attract *'T&9+ at ;;.7>D 11.Ret(rns in %L$& are Ta0 2ree (3s11 4115 " in %L$& s'ifting and switc'ing of portfolio comes

ULIP

1. Takes care of boat Risk as well as investment part. 2. Riders are available. 3. Long Term Objective 4. A lo alt addition gives rewards. !. "iversification of investment in different market is possible #. $n %L$& t'e investors are entirel retail in nat(re) prod(cts being long term and 'aving comp(lsor generating 'ig'er ret(rns. lock in of f(nds) 'elps t'e f(nd manager) in

2009

Fund Manage en!

FUND MANAGEMENT
%und Management is the professional management of institutional investment as well as investment management for investors in the form of institutions *insurance contracts and more commonly via collective investment schemes like mutual funds. In the context of the (ife Insurance sector %und Management refers to management of various funds in which the investor:s money is invested pertaining to 6(I!s with the goal of maximizing the return on investment and minimizing the risk on investment. companies, corporations etc.+ or private investors both directly via investment
2009

INVESTMENT MANAGEMENT

Investment Management is the management of various securities *shares, bonds, etc.+, assets *e.g. real estate+ to meet specified investment goals for the benefit of the investors. The provision of investment management services includes elements of financial analysis, asset selection, stock selection, plan implementation and ongoing monitoring of investments. Investment management is a large and important global industry in its own right responsible for caretaking of trillions of dollars, euro, pounds and yen. &oming under the remit of financial services many of the world@s largest companies are at least in part investment managers and employ millions of staff and create billions in revenue.

Fund Manage en!

Investment 'tyle selection depends upon risk appetite and return expectation. There are a range of different st:les of fund management that the institution can implement. %or example, growth, value, ar7et !eutral, small capitalization, indexed, etc. 2ach of these approaches has its distinctive features, adherents and, in any particular financial environment, distinctive risk characteristics. %or are especially effective when the companies able to generate such growth are scarceC conversely, when such growth is plentiful, then there is evidence that value styles tend to outperform the indices particularly successfully. example, there is evidence that growth styles *buying rapidly growing earnings+
2009

ASSET MANAGEMENT

The management of the financial assets of a company in order to maximize return. It is also called an account at a financial institution that includes checking services, credit cards, debit cards, margin loans, the automatic sweep of cash balances into a money market fund, as well as brokerage services.

HDFC STANDARD LIFE5S FUND MANAGEMENT STRATEGIES

$#%& '(I& believes that customers have invested their savings for the long term, with specific ob-ectives in mind like protection for the family in case of death of family member, child education and marriage liabilities or -ust investment returns over a longer period of time. eeping in view the above, the investment focus is based on the primary ob-ective of protecting and generating good and consistent investment returns to match the investor:s long term ob-ective and return expectations.

$#%& 'tandard (ife:s Investment 4pproach can be categorized intoB

Fund Manage en!

67 I!8est

e!t pro+ess? $#%& '(I& follows an investment process that is based

on the fundamental evaluation of each individual security. The Investment decision making process is defined and has clear responsibilities and discretion articulated at various levels. dealing. The Investment &ommittee of $#%& 'tandard (ife comprises top management of $#%& 9roup and $#%& 'tandard (ife and plays a pivotal role in defining long term investment policies, strategic asset allocation and monitoring the Investment team performance on a continuous basis. ey elements to the investment process include asset allocation, stock selection, portfolio construction, risk management and
2009

I&4e!"+e&" S"#("egy'
" " " " " !rimarily 1alue Investors (ong Term Investment !erspective 4ctive and ,obust %und Management 4ppropriate %und 'election 2fficiency (iquid Management *"ox Management7

I&4e!"+e&" P# &) /*e!'

" " " " Minimize &apital (ossesB 9reater emphasis on price of purchase %ocus on identifying strong investment candidatesB Ignore short term volatility Invest for the long termB (ow levels of trading activity Identify an overheated marketB $old cash in such circumstances

Fund Manage en!

87 R !3 M(&(ge+e&"' ,isk management is a critical function in the Investment process and is monitored at multiple levels like %und risk, 0perational ,isk, Market ,isk and 'tock L Instrument 'pecific ,isk. $#%& '(I& strives to generate higher risk/ad-usted returns over a longer period of time. The main endeavor is to generate for policyholders, consistent, risk/ad-usted returns in a disciplined and repeatable manner with the aim of beating the defined benchmarks by active fund management. $#%& '(I& normally does not hold any stock with an exposure of less than ;.?D and the portfolio should consist of four un/correlated sectors at all times. L 9% d "y R !3' There should be a mix of highly liquid stocks, as well as stocks which will be less liquid. The portfolio constructed can be sold to the extent of .?D within A/7 days.

:7 Bo1 M(&(ge+e&"' The concept of "ox Management can be broadly outlined as followsB " 'hareholder:s money is utilized to provide short term liquidity in units.

2009

Fund Manage en!

" "

To set up a ready supply of units for the new entrants to the scheme To set up a ready buyer of units for members who exit.
2009

Key P#()" )(* Be&e. "! .#o+ (& I&4e!"o#5! /e#!/e)" 4e'
o 1irtual 'I! *'ystematic Investment !lanning+ on a daily basis for the fund. / "ox helps to buyLsell in the market at any point of time irrespective of inflowLoutflow of funds. o o o !revents fund )41s getting impacted by large movementsLshifts. Investors benefit by being fully invested. #emonstrates shareholders commitment to the business.

HDFC SLIC5! F%&d! C*(!! . )(" o&'

L 9% d F%&d' It is composed of Money Market, "ank #eposits and 9overnment 'ecurities and "onds. It has extremely low capital risk with very stable returns. Sta)le Ma!a"ed 0u!d? It is composed ofB Money Market/ 8/78D

Fund Manage en!

"ank #eposits and 9overnment 'ecurities and "onds/ .8/;88D Se+ure Ma!a"ed 0u!d? It is composed ofB Money Market/ 8/? D "ank #eposits/ 8/A8D 9overnment 'ecurities and "onds/ .?/;88D More capital stability than equity funds G higher potential return than liquid funds.
2009

De#en$%&e Managed Fund' I! %$ () *)$ed )#'

Money MarketB 8/?D "ank #epositsB 8/;?D 9overnment 'ecurities and "ondsB ?8/<?D 2quityB ;?/78D 4ccess to better long term returns through equities while significant bond exposure keeps risk down as compared to equities. B(*(&)ed M(&(ged F%&d' It is composed ofB Money MarketB 8/?D "ank #epositsB 8/;?D 9overnment 'ecurities and "ondsB A8/.8D 2quityB 78/>8D Increased equity exposure gives better long term return while bond exposure provides some stability as compared to equities. E9% "y M(&(ged F%&d' It is composed ofB Money MarketB 8/?D "ank #epositsB 8/;8D 9overnment securities and "ondsB 8/E8D 2quityB >8/;88D %urther increased equity exposure gives greater long term return while bond exposure provides little stability.

G#o2"0 F%&d' I" ! )o+/o!ed o.'

Money MarketB 8/?D 2quityB =?/;88D 4pproximate ;88D investment in equities maximizes the returns.

Fund Manage en!

 ASSET ALLOCATION'
The different asset classes and the exercise of allocating funds among these assets *and among individual securities within each asset class+ is what investment management firms are paid for. 4sset classes exhibit different market dynamics, and different interaction effectsC thus, the allocation of monies among asset classes will have a significant effect on the performance of the fund. 4rguably, the skill of a successful investment manager resides in constructing the asset allocation, and separately the individual holdings, so as to outperform certain benchmarks *e.g., the peer group of competing funds, bond and stock indices+.
2009

PORTFOLIO DISCLOSURE'
!ortfolio Management is the art and science of making decisions about investment mix and policy, matching investments to ob-ectives, asset allocation for individuals and institutions, and balancing risk vs. performance. It is all about strengths, weaknesses, opportunities and threats in the choice of debt vs. equity, domestic vs. international, growth vs. safety, and many other tradeoffs encountered in the attempt to maximize return at a given appetite for risk. The entire breakup of the portfolio is called !ortfolio #isclosure where we get to find the details of the fund:s investment in different stocks and sectors.

HDFC SLIC5! F%&d! Po#".o* o D !)*o!%#e ! e1/*( &ed $e*o2 2 "0 "0e $#e(3%/! o. "0e &4e!"+e&"!. 67 L 9% d F%&d ; I&d 4 d%(* Pe&! o&

Fund Manage en!

2009

" "

No&-Go4e#&+e&" Se)%# " e!' <<.<=> C%##e&" A!!e"!' @.@=>

<<.?8> @.6?>

87 Se)%#e M(&(ged F%&d- I&d 4 d%(*

Pe&! o&

" " "

No&-Go4e#&+e&" Se)%# " e!' AB.:@> G *"' C%##e&" A!!e"!' 8=.CA> @.@:>

?=.C> 6B.8A> @.6B>

:7 De.e&! 4e M(&(ged F%&d- I&d 4 d%(*

Pe&! o&

Fund Manage en!

E9% "y S0(#e!' G *"'

?8.?C> 8.8=>

?8.?<> 8.@6>
2009

No&-Go4e#&+e&" Se)%# " e!' 6:.=?> C%##e&" A!!e"!' 6.:@>

Telecom, IT, Transport 'ervices and 0il G 9as.

6:.CA> 6.B:>

E9% "y' Transport 2quipment, &apital 9oods, %M&9, 4griculture, Media G !ublishing,

C7 G#o2"0 F%&d- I&d 4 d%(*

Pe&! o&

E9% "y S0(#e!' <=.A@> C%##e&" A!!e"!' B.:@>

Transport 'ervices, Media G !ublishing, 4griculture.

<=.@A> B.<:>

E9% "y' Transport 2quipments, &apital 9oods, %M&9, Metal, Metal !roducts G Mining,

NAV DNET ASSET VALUE7

)et 4sset 1alue, or )41, is the current market value of the fund:s assets minus the current market value of any liabilities the fund might have *such as unsettled trades+, divided by the number of outstanding shares. In the context of mutual funds, )41 per share is computed once a day based on the closing market prices of the securities in the fund@s portfolio. 4ll mutual fund:s buy and sell orders are processed at the )41 of the trade date. $owever, investors must wait until the following day to get the trade price.

Fund Manage en!

Mutual funds pay out virtually all of their income and capital gains. 4s a result, changes in )41 are not the best gauge of mutual fund performance, which is best measured by annual total return.
2009

Net Assets= Current Market Value of Funds Assets- Current Market Value of Funds Liabilities NAV= Net Assets/ Total Nu ber of !utstanding "hares

I+/()" o. NAV o& F%&d V(*%e

In case of companies, the price of its share is @as quoted on the stock exchange,@ which apart from the fundamentals, is also dependent on the perception of the company@s future performance and the demand/supply scenario. 4nd hence the market price is generally different from its book value. There is no concept as market value for the M% unit or 6(I! %und unit. Therefore, when we buy M% units at )41, we are buying at book value. 4nd since we are buying at book value, we are paying the right price of the assets whether it be ,s ;8 or ,s.;88. There is no such thing as a higher or lower price.

Fund Manage en!

CONCLUSION
Insurance is related to the protection of the economic values of assets. it is a mechanism that helps to reduce the effects of such adverse situations. !eople who are exposed to the same kind of risks come together and agree that, if any one of them suffers a loss, the others will share the loss and make good to the person who lost. Insurance Industry has always been a growth/oriented industry globally. 0n the Indian scene too, the insurance industry has always recorded noticeable growth vis/S/ vis other Indian industries $#%& '(I& was incorporated on ;E th 4ugust A888, was the first life insurance company to be granted a certificate of registration by the I,#4 on the A7 rd of 0ctober A888.The company also declared its fifth bonus for participating policyholders. $#%& 'tandard life Insurance offers a wide range of insurance and investment products *. individual products and A group plans+ which can best suit the individual needs by adding optional benefits such as &ritical Illness "enefit, 4ccidental #eath "enefit and many more. $#%& '(I& as a company emphasizes on providing services to its clients. It lays great stress on values and ethicsC the product line is too simple and easy to understand. ,egarding the awareness of $#%& 'tandard life it is very poor due to low advertisement and promotional strategy. The company should increase their spending towards promotional activities as by doing so that they can enhance the profit and increase their client, so they should go for $i/tech advertisement medium i.e., Internet and interactive media. In a nutshell we can say that different plans, some are good in some aspect and others are beneficial in other way. 4mong them, the $#%&'(I& !roducts are having more flexibility rather than most of the similar players in the market. 0n the other hand the charges of $#%&'(I& plans are very less compared to the other similar type of products of the other companies. The main benefit of insurance one can get from their net return that is gross return minus all the charges levied by the insurance company. 'o though many companies may show good returns but as their charges are higher, so the ultimate return of the investor goes down. $ere the $#%&'(I& product is superior than the others, so the net return of the investor increases automatically and heLshe can get a good amount of money at the end of the policy term.
2009

Fund Manage en!

.I.LOGRAPHY
Book
Marketing Management. !hilip otlar
2009

We-sites
www.google.com www.licindia.com www.irda.org.com www.worldinsurancebazar.com www.insuranceprofessional.com www.altavista.com

Maga/ines
Insurance &hronicle Insurance Times Insurance world The > Imperatives of Marketing by 4llen H Magrath !ublished by/4M4&0M, )ew Nork, 6'4 copyrights ;==A 4llan H Magrath Marketing Moves by !hilip otler, #eepak & Hain and 'umit Maesincee. !ublished by/

$avard "usiness 'chool &opyrights A88A $avard "usiness 'chool.

Fund Manage en!