Académique Documents
Professionnel Documents
Culture Documents
I hereby declare that this project report titled “A Project Report On Life
Insurance” has been submitted by me for the award of certificate. This is result of
original work carried out by me. This report has not been submitted anywhere
1
ACKNOWLEDGEMENT
I Sincerely want to thank all the people helped me throughout the procedure of
I would also like to thank Dr. Meeraj Ahamad, my supervisor at GBAMS and staff
for giving me their precious time and for the guidance and he/she directed me
I would also like to appreciate the help given by the all faculty of GBAMS
for giving their valuable time sharing their experience with us, with their valuable
Neetu Dubey
2
Chapter 1
Industrial Profile
3
Life Insurance
Life policies are legal contracts and the terms of the contract describe
the limitations of the insured events. Specific exclusions are often
written into the contract to limit the liability of the insurer; common
examples are claims relating to suicide, fraud, war, riot, and civil
commotion.
4
common form - more common in years past - of a protection policy
design is term insurance.
History
Main article: History of insurance
Amicable Society for a Perpetual Assurance Office, established in 1706,
was the first life insurance company in the world.
5
Each member made an annual payment per share on one to three shares
with consideration to age of the members being twelve to fifty-five. At
the end of the year a portion of the "amicable contribution" was divided
among the wives and children of deceased members, in proportion to the
number of shares the heirs owned. The Amicable Society started with
2000 members.[3][4]
The first life table was written by Edmund Halley in 1693, but it was
only in the 1750s that the necessary mathematical and statistical tools
were in place for the development of modern life insurance. James
Dodson, a mathematician, and actuary, tried to establish a new company
aimed at correctly offsetting the risks of long term life assurance
policies, after being refused admission to the Amicable Life Assurance
Society because of his advanced age. He was unsuccessful in his
attempts at procuring a charter from the government.
6
basis of modern life assurance upon which all life assurance schemes
were subsequently based".
Mores also gave the name actuary to the chief official - the earliest
known reference to the position as a business concern. The first modern
actuary was William Morgan, who served from 1775 to 1830. In 1776
the Society carried out the first actuarial valuation of liabilities and
subsequently distributed the first reversionary bonus (1781) and interim
bonus (1809) among its members.[5] It also used regular valuations to
balance competing interests.[5] The Society sought to treat its members
equitably and the Directors tried to ensure that policyholders received a
fair return on their investments. Premiums were regulated according to
age, and anybody could be admitted regardless of their state of health
and other circumstances.[7]
7
The sale of life insurance in the U.S. began in the 1760s.
The Presbyterian Synods in Philadelphia and New York City created the
Corporation for Relief of Poor and Distressed Widows and Children of
Presbyterian Ministers in 1759; Episcopalian priests organized a similar
fund in 1769. Between 1787 and 1837 more than two dozen life
insurance companies were started, but fewer than half a dozen survived.
In the 1870s, military officers banded together to found both the Army
(AAFMAA) and the Navy Mutual Aid Association (Navy Mutual),
inspired by the plight of widows and orphans left stranded in the West
after the Battle of the Little Big Horn, and of the families of U.S. sailors
who died at sea.
Overview
Parties to contract
The person responsible for making payments for a policy is the policy
owner, while the insured is the person whose death will trigger payment
of the death benefit. The owner and insured may or may not be the same
person. For example, if Joe buys a policy on his own life, he is both the
owner and the insured. But if Jane, his wife, buys a policy on Joe's life,
she is the owner and he is the insured. The policy owner is the guarantor
and he will be the person to pay for the policy. The insured is a
participant in the contract, but not necessarily a party to it.
8
Chart of a life insurance
In cases where the policy owner is not the insured (also referred to as
the celui qui vit or CQV), insurance companies have sought to limit
9
policy purchases to those with an insurable interest in the CQV. For life
insurance policies, close family members and business partners will
usually be found to have an insurable interest.
Contract terms
10
Most US states specify a maximum contestability period, often no more
than two years. Only if the insured dies within this period will the
insurer have a legal right to contest the claim on the basis of
misrepresentation and request additional information before deciding
whether to pay or deny the claim.
The face amount of the policy is the initial amount that the policy will
pay at the death of the insured or when the policy matures, although the
actual death benefit can provide for greater or lesser than the face
amount. The policy matures when the insured dies or reaches a specified
age (such as 100 years old).
11
Costs, insurability, and underwriting
In the 1980s and 1990s, the SOA 1975–80 Basic Select & Ultimate
tables were the typical reference points, while the 2001 VBT and 2001
CSO tables were published more recently. As well as the basic
parameters of age and gender, the newer tables include separate
mortality tables for smokers and non-smokers, and the CSO tables
include separate tables for preferred classes.[10]
The mortality tables provide a baseline for the cost of insurance, but the
health and family history of the individual applicant is also taken into
12
account (except in the case of Group policies). This investigation and
resulting evaluation is termed underwriting. Health and lifestyle
questions are asked, with certain responses possibly meriting further
investigation. Specific factors that may be considered by underwriters
include:
Based on the above and additional factors, applicants will be placed into
one of several classes of health ratings which will determine the
premium paid in exchange for insurance at that particular carrier.[13]
13
by underwriters, and thus seeks to reduce the work effort, time and/or
data necessary to underwrite a life insurance application.[17] These
systems allow point of sale distribution and can shorten the time frame
for issuance from weeks or even months to hours or minutes, depending
on the amount of insurance being purchased.[18]
The mortality of underwritten persons rises much more quickly than the
general population. At the end of 10 years, the mortality of that 25-year-
old, non-smoking male is 0.66/1000/year. Consequently, in a group of
one thousand 25-year-old males with a $100,000 policy, all of average
health, a life insurance company would have to collect approximately
$50 a year from each participant to cover the relatively few expected
claims. (0.35 to 0.66 expected deaths in each year x $100,000 payout per
death = $35 per policy).
14
source of profit for most life insurance companies. Group
Insurance policies are an exception to this.
15
first year of a policy.[20] Mortality approximately doubles for every extra
ten years of age, so the mortality rate in the first year for non-smoking
men is about 2.5 in 1,000 people at age 65.[20] Compare this with the US
population male mortality rates of 1.3 per 1,000 at age 25 and 19.3 at
age 65 (without regard to health or smoking status).[21]
Death proceeds
Upon the insured's death, the insurer requires acceptable proof of death
before it pays the claim. The normal minimum proof required is a death
certificate, and the insurer's claim form completed, signed, and
typically notarized.[citation needed] If the insured's death is suspicious and the
policy amount is large, the insurer may investigate the circumstances
surrounding the death before deciding whether it has an obligation to
pay the claim.
16
Insurance vs assurance
Life insurance may be divided into two basic classes: temporary and
permanent; or the following subclasses: term, universal, whole life, and
endowment life insurance.
17
Term assurance
Provides life insurance coverage for a specified term. The policy does
not accumulate cash value. Term insurance is significantly less
expensive than an equivalent permanent policy but will become higher
with age. Policy holders can save to provide for increased term
premiums or decrease insurance needs (by paying off debts or saving to
provide for survivor needs).
The three basic types of permanent insurance are whole life, universal
life, and endowment.
Whole life.
19
Universal life coverage
"Flexible death benefit" means the policy owner can choose to decrease
the death benefit. The death benefit can also be increased by the policy
owner, usually requiring new underwriting. Another feature of flexible
death benefit is the ability to choose option A or option B death benefits
and to change those options over the course of the life of the insured.
20
Option A is often referred to as a "level death benefit"; death benefits
remain level for the life of the insured, and premiums are lower than
policies with Option B death benefits, which pay the policy's cash
value—i.e., a face amount plus earnings/interest. If the cash value grows
over time, the death benefits do too. If the cash value declines, the death
benefit also declines. Option B policies normally feature higher
premiums than option A policies.
Endowments
Endowments can be cashed in early (or surrendered) and the holder then
receives the surrender value which is determined by the insurance
company depending on how long the policy has been running and how
much has been paid into it.
21
Accidental death
Accidental death and AD&D policies very rarely pay a benefit, either
because the cause of death is not covered by the policy or because death
occurs well after the accident, by which time the premiums have gone
unpaid. To know what coverage they have, insureds should always
review their policies. Risky activities such as parachuting, flying,
professional sports, or military service are often omitted from coverage.
22
Senior and pre-need products
23
Pre-need life insurance policies are limited premium payment, whole
life policies that are usually purchased by older applicants, though they
are available to everyone. This type of insurance is designed to cover
specific funeral expenses that the applicant has designated in a contract
with a funeral home. The policy's death benefit is initially based on the
funeral cost at the time of prearrangement, and it then typically grows as
interest is credited. In exchange for the policy owner's designation, the
funeral home typically guarantees that the proceeds will cover the cost
of the funeral, no matter when death occurs. Excess proceeds may go
either to the insured's estate, a designated beneficiary, or the funeral
home as set forth in the contract. Purchasers of these policies usually
make a single premium payment at the time of prearrangement, but
some companies also allow premiums to be paid over as much as ten
years.
24
Related products
Riders are modifications to the insurance policy added at the same time
the policy is issued. These riders change the basic policy to provide
some feature desired by the policy owner. A common rider is accidental
death (see above). Another common rider is a premium waiver, which
waives future premiums if the insured becomes disabled.
These are unique insurance plans which are basically a mutual fund and
term insurance plan rolled into one. The investor doesn't participate in
the profits of the plan per se, but gets returns based on the returns on the
funds he or she had chosen.
See the main article for a full explanation of the various features and
variations.
25
With-profits policies[edit]
Taxation
Australia
Where the life insurance is provided through a superannuation fund, contributions
made to fund insurance premiums are tax deductible for self-employed persons and
substantially self-employed persons and employers. However where life insurance
is held outside of the superannuation environment, the premiums are generally not
tax deductible. For insurance through a superannuation fund, the annual deductible
contributions to the superannuation funds are subject to age limits. These limits
apply to employers making deductible contributions. They also apply to self-
employed persons and substantially self-employed persons. Included in these
26
overall limits are insurance premiums. This means that no additional deductible
contributions can be made for the funding of insurance premiums. Insurance
premiums can, however, be funded by undeducted contributions. For further
information on deductible contributions see "under what conditions can an
employer claim a deduction for contributions made on behalf of their employees?"
and "what is the definition of substantially self-employed?". The insurance
premium paid by the superannuation fund can be claimed by the fund as a
deduction to reduce the 15% tax on contributions and earnings. (Ref: ITAA 1936,
Section 279).[24]
South Africa[edit]
Premiums paid by a policyholder are not deductible from taxable income, although
premiums paid via an approved pension fund registered in terms of the Income Tax
Act are permitted to be deducted from personal income tax (whether these
premiums are nominally being paid by the employer or employee).
The benefits arising from life assurance policies are generally not taxable as
income to beneficiaries (again in the case of approved benefits, these fall under
retirement or withdrawal taxation rules from SARS). Investment return within the
policy will be taxed within the life policy and paid by the life assurer depending on
the nature of the policyholder (whether natural person, company-owned, untaxed
or a retirement fund).
27
United States[edit]
Premiums paid by the policy owner are normally not deductible for federal and
state income tax purposes, and proceeds paid by the insurer upon the death of the
insured are not included in gross income for federal and state income tax
purposes.[25] However, if the proceeds are included in the "estate" of the deceased,
it is likely they will be subject to federal and state estate and inheritance tax.
Cash value increases within the policy are not subject to income taxes unless
certain events occur. For this reason, insurance policies can be a legal and
legitimate tax shelterwherein savings can increase without taxation until the owner
withdraws the money from the policy. In flexible-premium policies, large deposits
of premium could cause the contract to be considered a modified endowment
contract by the Internal Revenue Service (IRS), which negates many of the tax
advantages associated with life insurance. The insurance company, in most cases,
will inform the policy owner of this danger before deciding their premium.
The tax ramifications of life insurance are complex. The policy owner would be
well advised to carefully consider them. As always, both the United States
Congress and state legislatures can change the tax laws at any time.
28
United Kingdom[edit]
Premiums are not usually deductible against income tax or corporation tax,
however qualifying policies issued prior to 14 March 1984 do still attract LAPR
(Life Assurance Premium Relief) at 15% (with the net premium being collected
from the policyholder).
Non-investment life policies do not normally attract either income tax or capital
gains tax on a claim. If the policy has as investment element such as an endowment
policy, whole of life policy or an investment bond then the tax treatment is
determined by the qualifying status of the policy.
Qualifying status is determined at the outset of the policy if the contract meets
certain criteria. Essentially, long term contracts (10 years plus) tend to be
qualifying policies and the proceeds are free from income tax and capital gains tax.
Single premium contracts and those running for a short term are subject to income
tax depending upon the marginal rate in the year a gain is made. All UK insurers
pay a special rate of corporation tax on the profits from their life book; this is
deemed as meeting the lower rate (20% in 2005–06) of liability for policyholders.
The proceeds of a life policy will be included in the estate for death duty (in the
UK, inheritance tax) purposes. Policies written in trust may fall outside the estate.
Trust law and taxation of trusts can be complicated, so any individual intending to
use trusts for tax planning would usually seek professional advice from
an Independent Financial Adviser and/or a solicitor.
30
Although available before April 2006, from this date pension term
assurance became widely available in the UK. Most UK insurers adopted the name
"life insurance with tax relief" for the product. Pension term assurance is
effectively normal term life assurance with tax relief on the premiums. All
premiums are paid at a net of basic rate tax at 22%, and higher rate tax payers can
gain an extra 18% tax relief via their tax return. Although not suitable for all, PTA
briefly became one of the most common forms of life assurance sold in the UK
until, Chancellor Gordon Brown announced the withdrawal of the scheme in his
pre-budget announcement on 6 December 2006.
31
Stranger originated
Stranger originated life insurance or STOLI is a life insurance policy that is held
or financed by a person who has no relationship to the insured person. Generally,
the purpose of life insurance is to provide peace of mind by assuring that financial
loss or hardship will be alleviated in the event of the insured person's death.
STOLI has often been used as an investment technique whereby investors will
encourage someone (usually an elderly person) to purchase life insurance and
name the investors as the beneficiary of the policy. This undermines the primary
purpose of life insurance, as the investors would incur no financial loss should the
insured person die. In some jurisdictions, there are laws to discourage or prevent
STOLI.
Criticism
The television series Forensic Files has included episodes that feature this
scenario. There was also a documented case in 2006, where two elderly women
32
were accused of taking in homeless men and assisting them. As part of their
assistance, they took out life insurance for the men. After the contestability period
ended on the policies, the women are alleged to have had the men killed via hit-
and-run car crashes.[27]
33
However, viatical settlements ensure that such policies will with absolute
certainty be paid out. Some purchasers, in order to take advantage of the
potentially large profits, have even actively sought to collude with uninsured
elderly and terminally ill patients, and created policies that would have not
otherwise been purchased. These policies are guaranteed losses from the
insurers' perspective.
34
And Some others common were given below:
35
Chapter 2
Company Profile
36
The business of the ‘Fintellect Intelligent
Financial Solutions LLP’
• To transact and carry on all kinds of shares, securities & financial
advisory business and to be appointed to act as agents of any
company or concern and to do and platform all or any of the
several duties, services and authorities appertaining to such office
or imposed by the terms of and agreement entered into for the
purpose aforesaid.
37
• To carry on business as financiers (financers), commercial agents,
merchant bankers, mortgage brokers, insurance and mutual fund
brokers, stock market brokers, portfolio management services and
advices on tax planning, cash flow, financial and investment
planning and analysis, retirement planning and such other services
as may be required to carry the above said activities.
DETAILS OF PRODUCT/SERVICES
• Financial Planning
• Mutual Funds
• Taxation
38
• Equity/IPO
39
VISION STATEMENT OF ‘FINTELLECT
INTELLIGENT FINANCIAL SOLUTIONS LLP’
In birla sun Life, the two companies are having shareholding pattern as
follows:
• Mutual Funds
• Wealth Management
• Life insurance
Type Private
41
Industry Insurance
Founded 2000
Insurance
Services
42
BIRLA SUN LIFE INSURANCE
With an experience of over a decade, Birla Sun Life Insurance Company
Limited (BSLI) is one of the leading life insurance companies in India. .
BSLI is a joint venture between the Aditya Birla Group, a globally
trusted multinational company and Sun Life Financial Inc., one of the
top international financial services companies from Canada. Birla Sun
Life Insurance is one of the seven companies representing the Aditya
Birla Financial Services Group.
Aditya Birla Financal Services is the financial services arm of the Aditya
Birla Group and is one of the top 5 fund managers in India (excluding
LIC).
Enjoying the trust of over 2.5 million customers, BSLI is known for its
innovative ideas and creating industry benchmarks, and has also
consistently contributed to the growth and development of the Indian life
insurance industry.
Birla Sun Life Insurance ranks among the top innovative companies and
is the first Indian insurance company to introduce the Free Look Period
before it was made mandatory by Insurance Regulatory and
Development Authority (IRDA). It pioneered the launch of Unit Linked
Life Insurance plans.
43
The company is also the originator of the practice to
disclose monthly portfolio which establishes credibility and additional
transparency. The idea behind these category development initiatives is
to be closer to its policy holders.
44
BIRLA SUN LIFE INSURANCE OFFERS A
COMPLETE RANGE OF INSURANCE PRODUCTS
• Protection Plan
• Savings Plan
• Child Plans
• Investment Plans
• Retirement Plans
• Group Plans
• Rural Plans
COMPETITORS
• MetLife Insurance
45
• Bajaj Allianz life insurance
VISION
46
OBJECTIVE OF THE REASEARCH
Offerings
Birla Sun Life Insurance has attained recognition as the 'third Most
Trusted Life Insurance Company in the ‘Most Trusted Brands’ survey
2013 conducted by Brand Equity (The Economic Times Group) with
Neilsen.
Birla Sun Life Insurance believes that employee benefit plans provided
by employers to their employees play a very important role in increasing
47
employee loyalty and productivity.The company uses its vast expertise
in helping organisations and groups design customised group insurance
solutions for their employees.
BSLI has an extensive distribution reach of over 500 cities through its
network of about 600 branches, 10500 empanelled advisors and over
150 partnerships with corporate agents, brokers and banks.
Birla Sun Life ranks among the top seven private sector life insurance
companies in India and has won the prestigious ‘Good Corporate Citizen
Award’ for the year 2009-10 in Mumbai under the Banking and
Financial Institutions category. This award aims to recognise and honour
conspicuous achievement by corporate in terms of service to the civic
community, in addition to outstanding operational performance.
48
Secure your family’s future in this increasingly uncertain world and
don’t leave their dreams to fate.
If your dream for yourself and your loved ones is to live life on your
own terms, then you will need to ensure that this dream comes to
fruition. The best way to do this is to take term insurance. Aditya Birla
Sun Life Insurance Company Limited (ABSLI) offers you the chance to
take term insurance plans that go a long way in ensuring that your family
is cared for even when storm clouds gather over the horizon.
49
The Aditya Birla Group is an Indian multinational conglomerate named
after Aditya Vikram Birla, headquartered in the Aditya Birla Centre
in Worli, Mumbai, India.[3][4] It operates in 40 countries with more than
120,000 employees worldwide.[5] The group was founded by Seth Shiv
Narayan Birla in 1857. The group interests in sectors such as viscose
staple fibre, metals, cement (largest in India), viscose filament yarn,
branded apparel, carbon black, chemicals, fertilisers, insulators, financial
services, telecom (third largest in India), BPO and IT services. The
group had a revenue of approximately US$41 billion in year 2015.[6]
50
under ₹70 billion (US$1.1 billion) and profits of about ₹7.5
billion (US$120 million). Anchored by over 14,000 employees and
trusted by over 6 million customers, ABFSG has a nationwide reach
through 1,500 points of presence and about 130,000 agents/channel
partners.
Growth
52
Awards and recognition
Gold Midas Awards 2013 in Direct Mail/Collateral competition
53
Non-ferrous metals[edit]
54
Cement
The Group's cement business was earlier under Grasim Industries and UltraTech
Cement. The two entities have now been merged into UltraTech Cement to form
India's largest cement company. UltraTech Cement was acquired from L&T in
2004.
Carbon black
After purchasing Columbian Chemicals Co (Press Release), the Group is now the
largest manufacturer of Carbon black worldwide.[13]
Textile business
The Aditya Birla Group is the world's largest producer of Viscose staple fibre.[14] It
operates from India, Laos, Thailand, Malaysia and China. It owns the Birla
Cellulose brand. Apart from viscose staple fibre, the group also owns acrylic
fibre businesses in Egypt and Thailand, viscose filament yarn businesses and
spinning mills in India and South East Asia. The group has pulp and plantation
55
interests in Canada and Laos. It also owns the Domsjö factory in Sweden which
exports viscose today. The Swedish government is hoping to negotiate further
investments in Sweden, in particular in the hyper-modern future biorefinery in the
city of Örnskökdsvik.[15] Its two companies i.e. Aditya Birla Nuvo Ltd and Grasim
Bhiwani Textiles Ltd which is a subsidiary of Grasim Industries are in textile
business.
Fashion[edit]
See also: Abof
Aditya Birla Group sells in-house and other branded apparel via brick-and-mortar
and online stores. The group's firm Aditya Birla Fashion & Retail Ltd sells in-
house brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England and
People via their individual brand stores and through other multi brand outlets. It
also operates a multi brand fashion retail chain Pantaloons.[16]
The group ventured into niche target and select portfolio apparel in October 2015
with Abof.[17]
Planet fashion[edit]
The Aditya Birla Group’s retail store enterprise – Madura Fashion & Lifestyle – is
one of the strongest developing brand clothes corporations throughout The Indian
56
subcontinent. Global marketing involves models like Van Heusen, Allen Solly,
Philip Britain and Louis Philippe. Madura Fashion & Lifestyle has 1607 shops,
covering 2.2 sq. ft. connected with retail store room. It has 1,500 premium multi-
brand shops along with 320+ departmental shops worldwide. The company
outsources engineering, textiles and apparel.
Telecom Services[edit]
Aditya Birla Group is the majority shareholder of Idea Cellular.[20] Idea Cellular
was started as a joint venture with the AT&T and the Tata Group. After an IPO on
the Indian stock markets, Idea Cellular now accounts for a third of the group's
market capitalisation. The company is headquartered in Mumbai.
57
Financial Services[edit]
Aditya Birla Financial Services Group (ABFSG) is the umbrella brand for all the
financial services business of The Aditya Birla Group. ABFSG ranks among the
top 5 fund managers in India (including LIC) with an AUM of US$23 billion.
Having a strong presence across the life insurance, asset management, lending
(excluding Housing), housing finance, equity & commodity broking, wealth
management and distribution, online money management portal—Aditya Birla
Money MyUniverse, general insurance advisory and private equity and health
insurance businesses.
ABFSG is committed to serve the end-to-end financial services needs of its retail
and corporate customers.
58
Philanthropy
The group's philanthropic activities are looked after by Mrs Rajashree Birla.[21] The
group also runs 45 schools and 18 hospitals.
Schools[edit]
Kolkata)[23]
59
Aditya Birla Intermediate College, Renukoot
Rajasthan
And Some others which are also running are given below:
60
Aditya Birla Public School, Reddipalayam, Ariyalur
61
Institutes
Companies portal
Birla family
Birla Foundation
Grasim Industries
62
CK Birla Group
COMPANIES
A US $41 billion corporation, the Aditya Birla Group is in the League of
Fortune 500. It is anchored by an extraordinary force of over 120,000
employees, belonging to 42 different nationalities.
Group Companies
63
ADITYA BIRLA FINANCIAL SERVICES GROUP
(FANGCHENGGANG) LIMITED
AV GROUP NB INC
LIMITED
64
BIRLA SUN LIFE ASSET MANAGEMENT
DOMSJÖ FABRIKER
NOVELIS INC.
(BIRLA CARBON)
LIMITED
66
THAI ACRYLIC FIBRE
THAI RAYON
ULTRATECH SUBSIDIARIES
The month gone by was by far the most action packed month in the
recent past. As if base changes of the key macroeconomic variables
weren’t enough to keep markets busy and buzzing, the economic survey,
the railway budget, the scheduled as well as a surprise RBI policy
meet brought interesting twists to almost every day of the shortest month
in the calendar.
67
Growth
Inflation
CPI inflation also saw a base change (2012=100). The key take away
from this exercise was the move away from arithmetic mean to
geometric mean, with the objective of reducing volatility caused by
some items.
68
This is expected to pull a statistical downward pressure on
CPI. Resultantly, headline CPI inflation came in at 5.1% in January’15,
rising from 4.3% in Dec’14 (new base).
Continuous
moderation in both retail and wholesale inflation, created conditions
conducive for monetary easing. (source: MoSPI)
External Equation
Owing to falling oil prices, trade Deficit for Jan moderated by ~1bn$ to
8.3bn$. Keeping aside the price effect, the volume of oil imports seems
to be growing. The same hold true for exports, where net of oil exports,
the story doesn’t look as gloomy. We expect CAD in Q3 to rise to ~12-
69
13bn$ and FY15 to range between ~25-27bn$. This is expected to
improve further in FY16. (Source: Ministry of Commerce, BSLAMC
internal
Research)
Fiscal front
Even after exhausting more than the budgeted fiscal deficit by the month
of Jan, the finance minister in the revised estimates for FY15
assured that 4.1% of GDP would be acheievd as the fiscal deifict
number. For FY16, in a welcome deviation from the FRBM roadmap
laid out
by the Kelkar committee, the finance minister decided to defer it by a
year and announced a fiscal deficit of 3.9% of GDP for FY16 (as against
3.6% suggested by the Kelkar committee).
A large part of this etra stimulus in both a direct and an indirect (via the
leverage route) is expected.
70
Birla Sun Life Dynamic Bond Fund
(An Open-ended Income Scheme)
Savings
Solutions
March 2015
The above parameters are indicative and can change from time to time at
the discretion of the fund manager.
Internal views, estimates, opinions of Birla Sun Life Asset Management
Company Ltd. (BSLAMC) expressed herein may or may not materialize.
71
factors. Forward looking statements are based on internal views and
assumptions and subject to known and unknown risks and uncertainties
which could materially impact or
differ the actual results or performance from those expressed or implied
under those statements. to go for capital spending.
72
All this is likely to have the following impact on portfolio positioning-
73
Portfolio Action and Strategy
As on 27th Feb 2015, the modified duration of the scheme stands at 3.15
years and the YTM is 7.89%. The higher portfolio duration
had been built chiefly through exposure to Sovereign Bonds which
currently accounts for ~60% of the portfolio.
After benefiting from the 10 year benchmark rally in the last few
months, we have gradually reduced the duration in the portfolio. Going
forward, for an “absolute return oriented fund” like BSL Dynamic Bond
Fund we believe that the risk-reward proposition is in favour of a
more conservative accrual led strategy while keeping sufficient leeway
for any opportunity on duration from time to time.
74
within the provisions of the Scheme Information Document (SID) of the
scheme. Please refer to the SID for asset allocation, investment strategy
and scheme specific risk
factors.
75
Know Your Fund
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RESEARCH
METHODOLOGY
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Problem defining/Scope of the study
manner. This section highlight the objective and procedure of the study.
RESEARCH DESIGN :
1. What one wants to find out that is properly posing the problems or
enquiry.
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2. How to do it . That is collecting data through scientific and
• Exploratory
• Descriptive
• Experimental
There are two types of data used. They are primary and secondary
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I. Primary Sources
II . Secondary Sources
etc
SAMPLING PLAN
Sampling Technique :
RANDOM SAMPLEING
Sample size :
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Sampling Area:
Time period:
The total time period that was spent by me during this summer Training
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Chapter 4
ANALYSIS and
INTERPRETATION
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