BIJU PATNAIK INSTITUTE OF IT &

MANAGEMENT STUDIES

A PROJECT REPORT ON COMPARATIVE ANALYSIS OF

INSURANCE INDUSTRY AND MUTUAL FUND INDUSTRY

FACULTY GUIDE PROJECT GUIDE

Prof. Bhagvan Behera Subhajit Das

SUBMITTED BY

Lochan Soy
Reg.no-1706258061

1
 ACKNOWLEDGEMENT

With regard to my project with IDBI Federal Life

Insurance I would like to thank each and every one
who offered help, guideline and support whenever
required. First and foremost I would like to express
gratitude to Manager of the company who gave me
opportunity to work and learn at their esteemed
organization.
I am extremely grateful to my guide, SUBHAJIT DAS
and Project guide AVINASH KR. JALAN for their
valuable guidance and timely suggestions. I would
like to thank all faculty members of IDBI Federal Life
Insurance for the valuable guidance& support. I
would also like to extend my thanks to my members
and friends for their support specially.
And lastly, I would like to express my gratefulness
to the parent’s for seeing me through it all.

LOCHAN SOY

2
 CERTIFICATE

This is to certify that Mr. LOCHAN SOY (REGD NO-

1706258061) has completed project work on
“COMPARATIVE ANALYSIS OF INSURANCE INDUSTRY AND
MUTUAL FUND INDUSTRY” under my guidance and
supervision

I certify that this is an original work and has not been

Copied from any source.

Signature of Guide
Name of Project Guide: AVINASH KR. JALAN

3
 DECLARATION

I hereby declare that this Project Report entitled

“COMPARATIVE ANALYSIS LIFE INSURANCE
INDUSTRY AND MUTUAL FUND INDUSTRY” in
the partial fulfillment of the requirement of Master of
Business Administration (MBA) of BIITM B-SCHOOL,
BHUBANESWAR is based on primary & secondary data
found by me in various department, books, magazines and
websites & collected by me in under guidance of MR
AVINASH KUMAR JALAN.

LOCHAN SOY
REGD NO -17006258061

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 TABLE OF CONTENTS

Sl. TOPICS Page

no no.
1. Preface
2. Introduction:-
Overview of Insurance industry & Mutual
fund industry

3. Insurance industry:-
 Background of Insurance industry
 Duties, Powers and Functions of
Authorities of IRDA
 Types of Insurance
 List of life insurance &general insurance
companies
 Structure of insurance industry in India
4. Mutual fund industry:-
 History of mutual fund industry
 List of mutual fund houses in India
 Structure of Mutual funds
 Types of Mutual funds
 Development of Indian mutual fund
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5. Company Profile:-
 About company
 History of Company
 Mission & vision of company
 Products of company

6. Research methodology:-
 Objective of study

7. Data Analysis & Interpretation

 Of Insurance industry
 Of Mutual Fund industry
8. Suggestions and Recommendation:-
 For insurance industry
 For mutual fund industry
9. Conclusions
10. Bibliography

6
 PREFACE
In the fast changing scenario of the corporate world
, practicalk n o w l e dg e o f i n d u st r i a l e n v ir o n m
e n t an d bus i n e s s p r a c t i c e s i s b ec o mi n g
N e c e s s a r y d ay b y d ay t o c o mp e te w i t h th e
c u t th r o at competition. So with the theoretical kno
wledge the practicalknowledge of the industry is al
so important to know about the prevailing business
environment.

There were so many objectives of the group during

thisreport.
Theo b j e c tiv e o f th e p r a c t i c a l s tu d y to b e co
me mo r e a w a r e a b o u t t h e in d u s tri a l e n v i ro
n me n t . W e c a me t o k n o w sty l e s, th e i r at t it
u d e towards their work and their services towards
their customers. Apart from these direct benefits
of developing communication skills and
approaching work as a team with co-ordination .the
experience was very wonderful because we got
a chance to analyze the marketing function of
Insurance Industry.
7
 INTRODUCTION
Indian Mutual Funds and Insurance Industry:-
An Overview The origin of Mutual Fund Industry in India is
with the introduction of the concept of mutual fund by Unit
Trust of India (UTI) in the year 1963. Though the growth was
slow initially, it has been accelerated from the year 1987 when
non-UTI players entered the industry. With the boom of June
1990 and then again 1991 due to the implementation of new
economic policies leading to structural change of securities
pricing in stock market, the performance of the mutual fund
industry is encouraging. Because, individual investors have been
emphasized in India in contrast to advanced countries where
mutual funds depend largely on institutional investors. In
general, it appears that the mutual fund in India have given a
good account of itself so far. With the entry of private sector
funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund
families.
The industry now functions under the SEBI (Mutual Fund)
Regulations 1996. The number of mutual fund houses goes on
increasing with many foreign mutual funds setting up funds in
India and also the industry has witnessed several mergers and
acquisitions. As at the end of January 2005, there were 33
mutual funds with total assets of Rs.121805 cores. The industry
has grown in size and manages total assets of more than $30351

8
million. Of the various sectors, the private sector accounts for
nearly 91% of the resources mobilized showing their
overwhelming dominance in the market. Individuals constitute
98.04% of the total number of investors and contribute US
$12062 million, which is 55.16% of the net assets under
management.
The Indian Life Insurance Industry is driven by factors like
incidences of natural calamities at regular intervals, shifting
consumer behavior, rising insurance contribution to GDP and
changing socio-economic demography. The growth of the life
insurance products has been further boosted by the entry of
private players following the deregulation of the industry in
2000. They have contributed a lot to the industry by introducing
new distribution channels (such as banc assurance) and
strategies to the industry. The rising demand for retirement
provision in the ageing population along with efforts of
governments to move from public to private pension schemes
has also led to rapid growth. Filliped by the above factors, it is
reported that the life insurance market to swell at a CAGR of
over 200% during 2006-2009.
The dynamic growth of insurance buying is partly affected by
the (changing) income elasticity of insurance demand. It has
been shown that insurance penetration and per capita income
have a strong non-linear relationship (Enz 2000). Based on this
relation and other considerations, it can be postulated that by
2014 the penetration of life insurance in India will increase to
9
4.4%. Yet, more than three-fourth of India's insurable population
has no life insurance coverage. Considering that only about 65
million out of 250 million people are covered by life insurance,
the potential is quite evident.
BACKGROUND OF INSURANCE INDUSTRY
Evolution of Insurance
Some kind of life insurance was practiced in ancient Rome,
where citizens used to form burial clubs that would meet the
funeral expenses of its members. The code of ‘Manu’ that was in
force during the Reign of Cholas in South India shows that there
was the practice of marine insurance carried out by traders in
India with those in Sri Lanka, Egypt and Greece. As the
European civilization progressed, welfare practices also became
more refined. With the discovery of new lands, sea routes and
the consequent growth in trade, there was a need to protect the
traders from loss on account of fire, shipwrecks and the like. As
a result the need for insurance came into existence.

Meaning of Insurance is “a contract for reducing losses from

accident incurred by an individual party through a distribution of
the risk of such losses among a number of parties”. The
definition goes on to say: “In return for a specified
consideration, the insurer undertakes to pay the insured or his
beneficiary some specified amount in the event that the insured
suffers loss by pooling both the financial contributions and the
‘insurable risks’ of a large number of policyholders. The insured
10
is typically able to absorb losses incurred over any given period
much more easily than would the uninsured individual”.

History of Life Insurance in India

The insurance sector in India has come back to the square one
from being an open competitive market to nationalization and
back to a liberalized market once again. The business of life
insurance started in India in the year 1818, with the
establishment of the Oriental Life Insurance Company in
Calcutta.

Milestones in the Life Insurance Business in India:

• 1912: The Indian Life Insurance Companies Act enacted as
the first statute to regulate the life insurance business.
• 1928: The Indian Insurance Companies Act enacted to enable
the government to collect statistical information both about life
and non-life insurance businesses.
• 1938: Earlier legislation consolidated and amended to by the
Insurance Act with the objective of protecting the interests of the
insuring public.
• 1956: 245 Indian and Foreign Insurers and Provident
Societies taken over by the Central Government and
nationalized. LIC formed by an Act of Parliament, viz. LIC Act,
1956, with a capital contribution of Rs. 5 crore from the
Government of India.

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• 1993: The Indian government constituted the “Malhotra
Committee” to suggest reforms in the Insurance Industry.
• 1994: “Malhotra Committee” submitted its report
. • 1999: theInsurance Regulatory Development Act (IRDA)
was passed in the Indian Parliament and the door was opened for
private companies with foreign equity.

Composition of Authority
The sec.4 of IRDA Act' 1999, (which was constituted by an act
of parliament) specify the composition of authority, who were
appointed by the Government of India. The authority is a ten-
member team consisting of
1. A Chairman
2. Five whole-time members and
3. Four part-time members

Duties, Powers and Functions of Authorities in IRDA

Sec.14 of IRDA Act’, 1999 lays down the duties, powers and
functions for the authorities in IRDA. It is subject to the
provisions of this act and any 12 other law for the time being in
force. The authority shall have the duty to regulate, promote and
ensure orderly growth of the insurance business and re-insurance
business. The powers and functions of the authority shall
include:

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1. Issue to the applicant a certificate of registration, renew,
modify, withdraw, suspend or cancel such registration;
2. Protect the interests of the policy holders in matters
concerned with assigning the policy, nomination by policy
holders, insurable interest, settlement of insurance claim,
surrender value of policy and other terms and conditions of
contracts of insurance;
3. Specify the requisite qualifications, code of conduct and
practical training for insurance intermediaries and agents;
4. Specify the code of conduct for surveyors and loss assessors;
5. Promote the efficiency in the conduct of insurance business
; 6. Promote and regulate professional organizations connected
with the insurance and re-insurance business;
7. Levy the fees and other charges for carrying out the purposes
of this act;
8. Control and regulation of the rates, advantages, terms and
conditions that may be offered by insurers in respect of general
insurance business not so controlled and regulated by the Tariff
Advisory Committee under sec.64U of the Insurance Act, 1938;
9. Specify the form and manner in which books of account shall
be maintained and statement of accounts shall be rendered by
insurers and other insurance intermediaries;
10. Regulate the investment of funds by insurance companies;

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11. Regulate the maintenance of margin of solvency;
12. Adjudication of disputes between insurers and
intermediaries;
13. Supervise the functioning of the Tariff Advisory Committee;
14. Specify the percentage of premium income of the insurer to
finance schemes for promoting and regulating professional
organizations;
15. Specify the percentage of life insurance business and general
insurance business to be undertaken by the insurer in the rural or
social sector; and
16. Exercise such other powers as may be prescribed.
Growth of Life Insurance in India
Before the private players entered into the market, LIC was the
only dominant player in the public sector. LIC enjoyed over
98% of the market share in the early stage of liberalization and
private players suffered losses in the first year of their
operations. But LIC’s market share has drastically reduced and
now it is nearly 78% and 22% of the market share has been
gained by the private players. It could be seen that the Indian life
insurance industry is an underdeveloped one, as 80% of the
Indian population is still not under the insurance coverage.
Therefore, there is ample scope for the 14 growth of the life
insurance sector in India. Previously, customers were insured
with public insurance companies with no flexibility and
14
transparency in the products. They have visualized the life
insurance as a tax saving device only. As the private players
entered, the change has taken place in terms of offering
flexibility and transparency. Customers are looking for new and
innovative products and are more interested to take insurance
from private players due to its attractive features and services.
Emergence of Private Insurance Players
The Government of India liberalized the insurance sector in
March 2000, which lifted the entry restrictions for private
insurance players, allowing foreign players to enter into the
Indian market and start their operations in India. Each foreign
company needs to have a 26% equity capital to enter into the
Indian insurance market. Many foreign companies have joined
their hands with the Indian companies and started their
operations in early 2001. Currently there are 26 life insurance
companies that are operating in the private sector. However, the
private insurance companies have three times more products
than public insurance companies. Analysts found that the private
insurance players have established their own identities in the
Indian market within a short period of time. India has the
world’s top companies like AIG, New York Life, ING,
Lombard, Aviva, MetLife, etc.; competing in the same market.
The private sector players have seen 200% growth in the second
year of liberalization. The current annual growth in 15 the
average insurance premium in India has been 8.2% compared
with the global average of 3.4%.
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Distribution Channels
The distribution channel is one of the best ways to increase the
growth of the insurance industry. Channels like corporate
agents, brokers and banc assurance are playing a greater role in
distribution. The general way of selling insurance products is
through agents and brokers. But the companies are now looking
at a new distribution channel “Work-site marketing”, which is
nothing but selling of financial products and other services to
employees through workplace participation and is entirely on a
voluntary basis. In this, the employee has to pay for the products
through a payroll deduction. 16 The private players are looking
for alternative channels to market their products as they are
facing difficulty in training new agents with skill sets, which is a
time-consuming and costly activity. The private players are
mainly concentrating on banc assurance model; through this,
they are concentrating on providing the service to rural and
semi-urban sector. In the banc assurance model, the insurance
companies have tie-ups with the banks and sell their products to
the bank customers. With the rise in agricultural income, the
potential for banc assurance has increased in smaller cities. So
the companies are moving to smaller cities and towns, which
have also increased the growth opportunity for insurance
companies. According to a Fitch report on the insurance sector,
the banc assurance channel has contributed about 20% of the
total insurance business in the financial year 2005, whereas all
the alternative distribution channels together have contributed

16
25-30% of sales in private insurance companies. These
distribution channels include corporate brokers, internet and
corporate agents.
Basic Types of Insurance:
1. Credit Insurance:

Credit insurance means of insuring the payment of commercial debts

against the risk of non-payment by the borrower because of his
insolvency or for some other reason.

2. Group Insurance:

Group Insurance is insurance or life insurance obtained by a person as a

member of a group, such as a professional organization, rather than as an
individual, because in this way better terms can often be obtained. This
is because there is an administrative saving for the company, and
sometimes also because a particular group has a better life expectancy
than people in general.

3.Life Insurance:
Life Insurance/Assurance is a contract by which the insurer/assuror
undertakes to pay the person for whose benefit the cover is effected, or
to his personal representative, a certain sum of money on the happening
of a given event, or on the death of the person whose life is assured.

4.Marine Insurance:
It is contract by which underwriters engage to indemnify the owner of a
ship, cargo or fright against losses from certain perils or sea risks to
which their ship or cargo may be exposed. In case of marine insurance
another type of insurance is prevalent known as Mutual Insurance.

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This type of insurance is provided by ship-owners throughout the world
who have clubbed together in various mutual protection and indemnity
associations to cover hazards which are not covered by marine policies,
which have standard clauses leaving a number of contingencies un-
provided for, or only partially provided for. The liabilities of Mutual
Insurance Company are periodically divided amongst the subscribers in
proportion to the tonnage they have entered with the company.

5.Fire Insurance:
Is a contract of indemnity by which an insurance company undertakes to
make good any damage or loss by fire to buildings or property during a
specific time.

Presently there are 24 Life Insurance Companies, 25

General Insurance Companies and 6 Health Insurance
Companies doing business in India as detailed below:-
Life Insurance Companies are:-

Private Sector Companies

 Aegon Life Insurance Co. Ltd.
 Aviva Life Insurance Co. India Ltd.
 Bajaj Allianz Life Insurance Co. Ltd.
 Bharti AXA Life Insurance Co. Ltd.
 Birla Sun Life Insurance Co. Ltd.
 Canara HSBC Oriental Bank of Commerce Life Insurance
Co. Ltd.
 DHFL Pramerica Life Insurance Co. Ltd.
 Edelweiss Tokio Life Insurance Co. Ltd
 Exide Life Insurance Co. Ltd.
 Future Generali India Life Insurance Co. Ltd.
 HDFC Standard Life Insurance Co. Ltd.
 ICICI Prudential Life Insurance Co. Ltd.
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  IDBI Federal Life Insurance Co. Ltd.
 IndiaFirst Life Insurance Co. Ltd
 Kotak Mahindra Old Mutual Life Insurance Ltd.
 Max Life Insurance Co. Ltd.
 PNB MetLife India Insurance Co. Ltd.
 Reliance Life Insurance Co. Ltd.
 Sahara India Life Insurance Co. Ltd.
 SBI Life Insurance Co. Ltd.
 Shriram Life Insurance Co. Ltd.
 Star Union Dai-Ichi Life Insurance Co. Ltd.
 Tata AIA Life Insurance Co. Ltd.
Name of the General Insurance Companies:-
Private Sector Companies
 Aditya Birla Health Insurance Co. Ltd.
 Bajaj Allianz General Insurance Co. Ltd.
 Bharti AXA General Insurance Co.Ltd.
 Cholamandalam General Insurance Co. Ltd.
 Future Generali India Insurance Co.Ltd.
 HDFC ERGO General Insurance Co. Ltd.
 ICICI Lombard General Insurance Co. Ltd.
 IFFCO-Tokio General Insurance Co. Ltd.
 Kotak General Insurance Co. Ltd.
 L&T General Insurance Co. Ltd.
 Liberty Videocon General Insurance Co. Ltd.
 Magma HDI General Insurance Co. Ltd.
 Raheja QBE General Insurance Co. Ltd.
 Reliance General Insurance Co. Ltd.
 Royal Sundaram Alliance Insurance Co. Ltd
 SBI General Insurance Co. Ltd.
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  Shriram General Insurance Co. Ltd.
 TATA AIG General Insurance Co. Ltd.
 Universal Sompo General Insurance Co.Ltd.

Health Insurance Companies:-

 Apollo Munich Health Insurance Co.Ltd.
 Star Health Allied Insurance Co. Ltd.
 Max Bupa Health Insurance Co. Ltd.
 Religare Health Insurance Co. Ltd.
 Cigna TTK Health Insurance Co. Ltd.
This collaboration with the foreign markets has made the
Insurance Sector in India only grow tremendously with a
high current market share. India allowed private companies
in insurance sector in 2000, setting a limit on FDI to 26%,
which was increased to 49% in 2014. IRDAI states –
Insurance Laws (Amendment) Act, 2015 provides for
enhancement of the Foreign Investment Cap in an Indian
Insurance Company from 26% to an Explicitly Composite
Limit of 49% with the safeguard of Indian Ownership and
Control.

 Private insurers like HDFC, ICICI and SBI have been some
tough competitors for providing life as well as non-life
products to the insurance sector in India.

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21
History of Mutual Funds in the World
The origin of the mutual fund goes directly almost 200 years back. The
modern mutual fund was first introduced in Belgium in the year
182210. It was a very new attempt that time and of course on a very
small scale. However the idea of investing in a group became very
popular and the new form of investment slowly spread to Great Britain
and France. Mutual Funds were started in United States also and
became a common to many investors around the year 1920s and
continued to be popular since the 1930s,11. The idea of open-end
mutual funds was more popular as compared to that of close-ended
funds, perhaps the reason may be investors liking to have freedom to
withdraw their money when they liked to do so. However there was the
existence of the mutual fund concept before these events. Though
there is uncertainty about the exact origins of the mutual fund concept,
many expert look closed-end investment companies launched in the
Netherlands in the year 1822 by King William I as the first mutual funds.
Others believe that a Dutch merchant named Adriaan van Ketwich
whose investment trust created in 177412 may have given the king the
idea. The literature shows that Ketwich brought the concept that
diversification would increase the appeal of investments to smaller
investors with minimal capital. The next wave of near-mutual funds
included an investment trust launched in Switzerland in 1849, followed
by similar vehicles created in Scotland in the 1880s.

The idea of pooling resources and spreading risk using closed-end

investments soon took root in Great Britain and France, making its way
to the United States in the 1890s.13 The Boston Personal Property
Trust, formed in 1893, was the first closed ended fund in the U.S. The

22
creation of the Alexander Fund in Philadelphia in 1907 was an
important step in the evolution toward what we know as the modern
mutual fund. The Alexander Fund featured semi-annual issues and
allowed investors to make withdrawals on demand.

Arrival of the Modern Mutual Funds

The arrival of the modern mutual funds can be considered from the
starting of the Massachusetts Investors' Trust in Boston,
Massachusetts, in 192414. The fund was made open to public in 1928.
It slowly became popular amongst the common people. the mutual
fund firm known today as MFS Investment Management. At the same
time State Street Investors started its own fund in 1924 with Richard
Paine & Richard Saltonstall. Saltonstall was also affiliated with Scudder,
Stevens and Clark, an outfit that launched the first no load fund in
1928. Another milestone in the process of development of a modern
mutual fund can considered as launching of first mutual fund with
investment in stocks and bonds. It was launched in the year 192815 by
Wellington Fund, which was the first mutual fund to include stocks and
bonds, as opposed to direct merchant bank style of investments in
business and trade.

After the introduction of the funds with new ideas of investment, the
number of funds slowly increased. By the year 1929, the total number
of open ended funds went to around 19. Though the number of
investors investing in these mutual funds was very less, this can be
considered as the important stage in the development phase of the
mutual funds. In the year 1929, the world stock market experienced a
major crash. Under this situation most of closed ended funds could not
survive and they were replaced by small open ended mutual funds. 16

23
By this time governments of many countries became aware about the
development of this new instrument of investment and the mutual
fund industry as well. Many controlling authorities were started to
control the mutual fund activities e.g. Securities and Exchange
Commission (SEC) by passing The Securities Act 1933 and the
enactment of the Securities Exchange Act 1934. The Investment
Company Act was introduced in the year 1940 which added new
regulations that required more disclosures and tried to safeguard the
interest of the common investors in the mutual funds. After 1950, the
mutual fund industry started to expand its wings very rapidly. Many of
the economies experienced the introduction and development of this
new industry in their economies. Mutual fund companies of one
country started to enter in the economies of other countries for getting
the investment. The 1960s saw the rise of aggressive growth funds,
wherein billions of dollars were invested.

Development of Indian Mutual Funds

The mutual fund industry in India started in 1963 with the formation of
Unit Trust of India, at the initiative of the Government of India and
Reserve Bank of India. The history of mutual funds in India can be
broadly divided into four distinct phases

1) Introductory Phase:-
The introductory phase of the mutual fund industry can be
considered for the period 1963 to 1987. Unit Trust of India (UTI)
was established on 196319 by an Act of Parliament. It was set up
by the Reserve Bank of India and functioned under the
Regulatory and administrative control of the Reserve Bank of
India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and
24
 administrative control in place of RBI. The first scheme launched
by UTI was Unit Scheme 1964. At the end of 1988 UTI had
Rs.6,700 crores of assets under management20. The US -64
Scheme became very popular amongst the common investors but
due to the technical problems, the scheme could not work as per
the expectations of the both sponsors as well as of investors.

2) Entry of Public Sector funds21

This phase can be considered from the year 1988 to 1993. In the
year 1987 there was the entry of non- UTI, public sector mutual
funds set up by public sector banks and Life Insurance
Corporation of India (LIC) and General Insurance Corporation of
India (GIC). SBI Mutual Fund was the first non- UTI Mutual
Fund established in June 1987. Immediately after SBI Mutual
Fund, following mutual fund also entered in the industry.
 Canbank Mutual Fund (Dec 1987)
 Punjab National Bank Mutual Fund (Aug 1989)
 Indian Bank Mutual Fund (Nov 1989)
 Bank of India (Jun 1990)
 Bank of Baroda Mutual Fund (Oct 1992).

LIC established its mutual fund in June 1989 while GIC had
set up its mutual fund in December 1990. At the end of
1993, the mutual fund industry had assets under
management of Rs.47,004 crores.

3) Entry of Private Sector Funds

The span of this phase can be considered of 10 years from the
year 1993 to the year 2003. With the entry of private sector funds
in 1993, a new era started in the Indian mutual fund industry. This

25
 gave the Indian investors a wider choice of fund families. Also,
1993 was the year in which the first Mutual Fund Regulations
came into being, under which all mutual funds, except UTI were
to be registered and governed. The erstwhile Kothari Pioneer
(then merged with Franklin Templeton) was the first private
sector mutual fund registered in July 1993. The 1993 SEBI
(Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996.
The industry started to work under the SEBI (Mutual Fund)
Regulations 1996. The number of mutual fund houses went on
increasing. Many foreign mutual funds started to set up funds in
India and also the industry witnessed several mergers and
acquisitions. As at the end of January 2003, there were 33 mutual
funds with total assets of Rs. 1,21,805 crores. The Unit Trust of
India with Rs.44,541 crores of assets under management was way
ahead of other mutual funds

4) Development phase
The development phase of the mutual fund industry was
witnessed since the year 2003. In 2003 UTI was bifurcated into
two separate entities. One is the Specified Undertaking of the Unit
Trust of India with assets under management of Rs.29,835 crores
22as at the end of January 2003, representing broadly, the assets
of US 64 scheme. The Specified Undertaking of Unit Trust of
India, functioning under an administrator and under the rules
framed by Government of India and does not come under the
purview of the Mutual Fund Regulations. The second is the UTI
Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund
Regulations. With the bifurcation of the erstwhile UTI which had

26
in March 2000 more than Rs.76,000 crores of assets under
management and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual Fund Regulations, and with
recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of
consolidation and growth. The Indian Mutual Fund Industry is
one of the fastest growing segments of the Indian economy.
During the period 1998 to 2008, the industry grew by almost 22
percent CAGR23.

27
 COMPANY PROFILE :-
• IDBI federal life insurance establish march 2008
• It is public sector
• Head office Mumbai
• Govt. owned by 48%
• CEO- VIGNESH SHAHANE
• Industry life insurance
• Type joint venture
• Number of employee 1941 employees on –roll
Over 10000 agents
• JOINT VENTURE OF 3 COMPANIES
1) IDBI BANK
• Established in 1964
• Leading public sector bank
• Head office – Mumbai
• Govt. owned
• Shares-48%
2) FEDERAL BANK
• Leading private sector bank
• Head office – Kerala
28
 • Shares-26%
3) AGEAS
• 180 years old
• European insurance
• Belgium based
• Top 20 insurance company in Europe
• Shares-26%
COMPANY OVERVIEW
HISTORY
 IDBI federal distributes its products through a multi channel net
work consisting of insurance agents’ bancasssurance partners
(IDBI bank, federal banks direct channel and insurance brokers.

 IDBI bank federal bank and Belgian Dutch insurance major Fortis
insurance international NV signed a MOU Fortis to start a life
insurance company in INDIA. The company received its license
from insurance regulatory and development authority of INDIA
(IRDAI)

 J ARUL JEGADEESH one of the trainee in the IDBI federal life

insurance company in MADURAI in December 2007

 IDBI Fortis life insurance co ltd officially began its operations in

March 2008 in august 2008 the company collected the premium
of over rs 100 crore within a record time of five months.

29
  INDIA SRI LANKA ODI series that took place in October 2009 found
a title sponsor in insurance major IDBI Fortis. The company AUM
crossed the rs 1000 crore mark for the first time in March 2010.

 In 2012-2013 it declared its maiden profits in record 5 years thus

was one of the faster to do so in the industry. It yet again clocked
rs 80 crore profits for the financial year 2013 -2014

OUR KEY MILESTONES

License received first policy Break even within
From IRDAI sold 5 years among the
December 2007 March 2008 fastest in the
Industry
March 2013

Records a profit IDBI federal crosses rs 1000 crore in total

Of rs 80 crore business
March 2014 March 2015

Movies to a bigger with rs 1565 in total premium we

Modern office registered 27% growth
October 2016 March 2018

30
IDBI federal life insurance is a joint venture among:-
IDBI BANK :-
India’s premier development and commercial bank serving retail and
corporate customer in all corners of the country offers a wide range of
innovative products and services through 1717 branches
FEDERAL BANK:-
One of India’s leading private sector banks with a dominant presence in
the state of Kerala. It has a strong network of over 1247 branches
serves more than 4 million retail customer with a bouquets of financial
products.
AGEAS:-
An European international insurance group with a herit age spanning
190 years and ranking among the top 20 insurance companies in
Europe. Ageas has chosen to concentrate its business activity in Europe
and Asia which together constitute the largest share of the global
insurance market. They also focus on four segments: Belgium, UK,
Continental Europe and Asia. Ageas is ranked among top 20 insurance
companies of Europe.

VISION OF COMPANY
To be the leading provider of wealth management protection
and retirement solution that meets the needs of our customers and
adds value to their lives

31
MISSION OF COMPANY:-
To continually strive to enhance customer experience through
innovative product offerings dedicated relationship management and
superior services delivery while striving to interact with our customer in
the most convenient and cost effective manner
 To be transparent in the way we deal our customer
and to act with integrity
 To invest in and build quality human capital in
order to achieve our mission

VALUES OF COMPANY:-
TRANSPARENCY
Crystal clear communication to our partners and stakeholders

VALUE TO CUSTOMER
A product and service offering in which customer perceive value.

ROCK SOILD AND DELIVERY ON PROMISE

This translates into being financially strong operationally robust and
having clarity in claims.

CUSTOMER FRIENDLY
Advice and support in working with customer and partners.

PROFIT TO STAKEHOLDERS

32
Balance the interests of customer partners, employees, shareholders
and the community at large.

NETWORK OF COMPANY
Bancassurance services spread across over 2500 bank branches of IDBI
bank and federal bank.

An agency network that covers 60 branches across the country with

367 distribution managers and 13089 advisors.

INOVATIVE PRODUCT CATEGORIES

Innovation is an important step towards acquiring greatness product
centric innovation is a crucial lever for the success of an insurance
organization.

TERMSURANCE
Termsurance offers financial protection to the family of the life insured
in case of the unfortunate event of the death of the life insured.
LIFESURANCE
Lifesurance offers an array of participating endowment plans designed
to provide long term saving along life cover.
WEALTHSURANCE
Wealthsurance enables the life insured to build wealth providing the
protection of life cover.
INCOMESURANCE
Incomesurance provides guaranteed regular income along with a life
cover.

33
LOANSURANCE
Loansurance is a cost effective insurance plan that covers the life
insured outstanding loan.
CHILDSURANCE
Childsurance offers solution to ensure funding the life insured’s child
future needs like higher education marriage, vocational, training etc.
RETIRESURENCE
Retiresurance offers plan that help the life insured build a corpus that
lasts throughout his retired life to make them the best years of his life.
MICROSURANCE
Microsurance has been designed to provide effective insurance services
for low-income groups and promote financial inclusion for the
community.
Our well admired suite of product solutions reflect our innovation
strength and underline the transformational focus of our product
strategy

34
 LIST OF MUTUAL FUND COMPANIES IN INDIA

 Axis Asset Management Company Ltd.

 Baroda Pioneer Asset Management Company Ltd
 Birla Sun Life Asset Management Company Ltd
 BNP Paribas Asset Management India Pvt Ltd
 BOI AXA Investment Managers Pvt Ltd
 Canara Robeco Asset Management Company Ltd
 Daiwa Asset Management (India) Pvt Ltd
 Deutsche Asset Management (India) Pvt. Ltd.
 DSP BlackRock Investment Managers Pvt. Ltd.
 Edelweiss Asset Management Ltd
 Escorts Asset Management Ltd
 FIL Fund Management Private Ltd
 Franklin Templeton Asset Management (India) Pvt Ltd.
 Goldman Sachs Asset Management (India) Pvt Ltd.
 HDFC Asset Management Company Ltd
 HSBC Asset Management (India) Pvt. Ltd.
 ICICI Prudential Asset Management Company Ltd
 IDBI Asset Management Ltd.
 IDFC Asset Management Company Ltd
 India Infoline Asset Management Co. Ltd.
 Indiabulls Asset Management Company Ltd.
 ING Investment Management (India) Pvt. Ltd.

35
 JM Financial Asset Management Pvt Limited
 JPMorgan Asset Management India Pvt. Ltd.
 Kotak Mahindra Asset Management Company Ltd.
 L&T Investment Management Ltd.
 LIC NOMURA Mutual Fund Asset Management Company Ltd.
 Mirae Asset Global Investments (India) Pvt. Ltd.
 Morgan Stanley Investment Management Pvt.Ltd.
 Motilal Oswal Asset Management Company Ltd.
 Peerless Funds Management Co. Ltd.
 Pine Bridge Investments Asset Management Company (India) Pvt.
Ltd.
 Pramerica Asset Managers Private Ltd
 Principal PNB Asset Management Co. Pvt. Ltd.
 Quantum Asset Management Company Private Ltd.
 Reliance Capital Asset Management Ltd.
 Religare Asset Management Company Private Ltd.
 Sahara Asset Management Company Private Ltd
 SBI Funds Management Private Ltd.
 Sundaram Asset Management Company Ltd
 Tata Asset Management Ltd
 Taurus Asset Management Company Ltd
 Union KBC Asset Management Company Pvt Ltd
 UTI Asset Management Company Ltd

36
STRUCTURE OF MUTUAL FUND

37
Types of Mutual Funds Schemes in India
Wide variety of Mutual Fund Schemes exists to cater to the needs such
as financial position, risk tolerance and return expectations etc. thus
mutual funds has Variety of flavors, Being a collection of many stocks,
an investors can go for picking a mutual fund might be easy. There are
over hundreds of mutual funds scheme to choose from. It is easier to
think of mutual funds in categories, mentioned below.

Overview of existing schemes existed in mutual

fund category: By structure
1. Open - Ended Schemes:
An open-end fund is one that is available for subscription all through
the year. These do not have a fixed maturity. Investors can
conveniently buy and sell units at Net Asset Value ("NAV") related
prices. The key feature of open-end schemes is liquidity.

2. Close - Ended Schemes:

These schemes have a pre-specified maturity period. One can invest
directly in the scheme at the time of the initial issue. Depending on the
structure of the scheme there are two exit options available to an
investor after the initial offer period closes. Investors can transact (buy
or sell) the units of the scheme on the stock exchanges where they are
listed. The market price at the stock exchanges could vary from the net
asset value (NAV) of the scheme on account of demand and supply
situation, expectations of unit holder and other market factors.
Alternatively some close-ended schemes provide an additional option
of selling the units directly to the Mutual Fund through periodic
repurchase at the schemes NAV; however one cannot buy units and can
only sell units during the liquidity window. SEBI Regulations ensure
38
 that at least one of the two exit routes is provided to the investor.

3. Interval Schemes:
Interval Schemes are that scheme, which combines the features of
open-ended and close-ended schemes. The units may be traded on the
stock exchange or may be open for sale or redemption during pre-
determined intervals at NAV related prices.

Overview of existing schemes existed in mutual fund

category: By nature
1. Equity fund:
These funds invest a maximum part of their corpus into equities
holdings. The structure of the fund may vary different for different
schemes and the fund manager’s outlook on different stocks. The Equity
Funds are sub-classified depending upon their investment objective, as
follows:

 Diversified Equity Funds

 Mid-Cap Funds
 Sector Specific Funds
 Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon, thus Equity
funds rank high on the risk-return matrix.

2. Debt funds:
The objective of these Funds is to invest in debt papers. Government
authorities, private companies, banks and financial institutions are some
of the major issuers of debt papers. By investing in debt instruments,
these funds ensure low risk and provide stable income to the investors.
Debt funds are further classified as:

39
Gilt Funds: Invest their corpus in securities issued by Government,
popularly known as Government of India debt papers. These Funds carry
zero Default risk but are associated with Interest Rate risk. These
schemes are safer as they invest in papers backed by Government.

Gilt Funds at a glance

 Gilts are government securities.
 Maturity - Medium to long term.
 Typically of over one year (less than one-year instruments are the
money market securities).
 Gilts invest in government paper called dated securities (unlike
treasury bills that mature in less than one year).
 Issuers – Government of India or State Government.
 Risk – Little risk of default, offer better protection of capital.
 Gilt securities face interest rate risk, like other debt securities.
 Debt securities prices are having inverse relation with Interest
Rates.
 Income Funds: Invest a major portion into various debt instruments
such as bonds, corporate debentures and Government securities.
 MIPs: Invests maximum of their total corpus in debt instruments
while they take minimum exposure in equities. It gets benefit of
both equity and debt market. These scheme ranks slightly high on
the risk-return matrix when compared with other debt schemes.
 Short Term Plans (STPs): Meant for investment horizon for three
to six months. These funds primarily invest in short term papers
like Certificate of Deposits (CDs) and Commercial Papers (CPs).
Some portion of the corpus is also invested in corporate
debentures.
 Liquid Funds: Also known as Money Market Schemes, These
funds provides easy liquidity and preservation of capital. These
schemes invest in short-term instruments like Treasury Bills, inter-
bank call money market, CPs and CDs. These funds are meant for
short-term cash management of corporate houses and are meant for
an investment horizon of 1day to 3 months. These schemes rank
40
 low on risk-return matrix and are considered to be the safest
amongst all categories of mutual funds.

3. Balanced funds:
As the name suggest they, are a mix of both equity and debt funds.
They invest in both equities and fixed income securities, which are in
line with pre-defined investment objective of the scheme. These
schemes aim to provide investors with the best of both the worlds.
Equity part provides growth and the debt part provides stability in
returns.

Further the mutual funds can be broadly classified on the basis of

investment parameter viz,
Each category of funds is backed by an investment philosophy, which
is pre-defined in the objectives of the fund. The investor can align his
own investment needs with the funds objective and invest accordingly.

By investment objective:
Growth Schemes: Growth Schemes are also known as equity schemes.
The aim of these schemes is to provide capital appreciation over
medium to long term. These schemes normally invest a major part of
their fund in equities and are willing to bear short-term decline in value
for possible future appreciation.

Income Schemes:
Income Schemes are also known as debt schemes. The aim of these
schemes is to provide regular and steady income to investors. These
schemes generally invest in fixed income securities such as bonds and
corporate debentures. Capital appreciation in such schemes may be
limited.

41
Balanced Schemes:
Balanced Schemes aim to provide both growth and income by
periodically distributing a part of the income and capital gains they
earn. These schemes invest in both shares and fixed income securities,
in the proportion indicated in their offer documents (normally 50:50).

• Money Market Schemes: Money Market Schemes aim to provide

easy liquidity, preservation of capital and moderate income. These
schemes generally invest in safer, short-term instruments, such as
treasury bills, certificates of deposit, commercial paper and inter-bank
call money.

Other schemes
• Tax Saving Schemes:
Tax-saving schemes offer tax rebates to the investors under tax laws
prescribed from time to time. Under Sec.88 of the Income Tax Act,
contributions made to any Equity Linked Savings Scheme (ELSS) are
eligible for rebate.

• Index Schemes:
Index schemes attempt to replicate the performance of a particular
index such as the BSE Sensex or the NSE 50. The portfolio of these
schemes will consist of only those stocks that constitute the index. The
percentage of each stock to the total holding will be identical to the
stocks index weightage. And hence, the returns from such schemes
would be more or less equivalent to those of the Index.

42
• Sector Specific Schemes:
These are the funds/schemes which invest in the securities of only
those sectors or industries as specified in the offer documents. e.g.
Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG),
Petroleum stocks, etc. The returns in these funds are dependent on the
performance of the respective sectors/industries. While these funds
may give higher returns, they are more risky compared to diversified
funds. Investors need to keep a watch on the performance of those
sectors/industries and must exit at an appropriate time.

43
 RESEARCH METHODOLOGY
OBJECTIVE OF STUDY

INSURANCE INDUSTRY:-
1. To compare the performance of insurance
companies in India.
2. To find out the performances of insurance
companies in each category (size. growth, productivity
and efficiency)
3. To compare grievance management of private
insurance companies

MUTUAL FUND INDUSTRY:-

1. To find out the preferences of investors for
Asset Management Company.
2. To know the preferences for the portfolios.
3. To know why one has invested or not invested
in mutual funds.
4. To find out the preferred channel.
5. To find out what should do to boost Mutual
Fund Industry.

44
 DATA ANALYSIS (INSURANCE INDUSTRY)
Market share of private life insurance on the basic of new business
premium
COMPANY FY2013 FY2014 FY2015 FY2016 FY2017

IDBI 1.12% 1.07% 1.39% 1.44% 1.57%

FEDERAL
LIFE
INSURANCE
HDFC 14.42% 13.68% 15.77% 15.83% 17.18%
STANDARD
LIFE
ICICI 15.63% 12.74% 14.31% 16.51% 15.53%
PRUDENTIAL
LIFE
INSURANCE
SBI LIFE 16.85% 17.17% 15.87% 17.34% 20.04%
INSURANCE

BIRLA SUN 5.97% 5.75% 5.57% 5.42% 5.01%

LIFE
INSURANCE
MAX LIFE 6.17% 7.66% 7.39% 7.03% 7.24%
INSURANCE

BHARTI AXA 0.81% 1.27% 1.36% 1.32% 1.20%

LIFE
INSURANCE
BAJAJ 9.73% 8.78% 7.76% 7.04% 6.50%
ALLIANZ
LIFE
TATA AIA 1.82% 1.47% 0.90% 1.81% 2.24%
LIFE

KOTAK 3.86% 4.31% 4.42% 5.39% 5.63%

MAHINDRA
OLD
MUTUAL
LIFE

45
 FY2017

IDBI FEDERAL LIFE

1.57%
INSURANCE
2.24% HDFC STANDARD LIFE
5.63%

ICICI PRUNDENTIAL
6.50% 17.18% LIFE INSURANCE
1.20% SBI LIFE INSURANCE

BIRLA SUN LIFE

7.24% INSURANCE
MAX LIFE INSURANCE

5.01% 15.53% BHARTI AXA LIFE

INSURANCE
BAJAJ ALLIANZ LIFE

20.04% TATA AIA LIFE

KOTAK MAHINDRA
OLD MUTUAL LIFE

46
RESPONDENT HAVING LIFE INSURANCE

The question was asked to respondents to know how many

of respondents had a life insurance policy

LIFE INSURANCE POLICY

15%

YES
NO

85%

From the survey it was found out that 85% of the respondents
had a life insurance where 15% of respondent doesn’t have
insurance policy.

INSURANCE POLICY TAKEN FROM WHICH

COMPANY:-

The question was asked to the respondents so as to get to

know from which insurance company they have bought
insurance

47
 3%
3%
LIC
10%
Bajaj Allianz

40% ICICI Prudential

13% Max New York Life

SBI Life

14% IDBI federal life insurane

From whose suggestion have the respondent taken a

policy?
 It was asked to gain the insight from the respondents that
on whose suggestion did they have taken the insurance
policy
Column1

30 30

25 25
23
20

15
13
10

0
FAMILY FRIENDS AGENTS OTHERS

48
After the survey it was found that most of the respondents
took policy or life insurance cover from the suggestions of
their friends and family i.e, 30&25 respondents. Only 23
respondents took policy from agents.

TYPE OF PLAN
The respondents were asked which type of plan they go
for when they take insurance policy.

Column1

30
28
25

20
22
15 14 13

10 8 5

0
Term plan Endowment Moneyback pension plan ULIP Health Plan
plan plan

49
 DATA ANALYSIS (MUTUAL FUND INSURANCE)
Equity diversified (Table 1)

Scheme name Asset NAV 1w% 3w% 6w% 1y% 3y% 5y%

(Rs.
Cr)

ICICI Pru 7.31 28.59 1.1 4.6 15.3- 31.1 45.0 ----
Exp&other
Services-DP
ICICI Pru 183.34 28.39 1.1 4.6 15.1 30.6 44.2 82.5
Exp&other
Service-RP (G)
ICICI PruUS 11.65 15.82 0.6 1.1 4.0 15.7 42.9 ----
Bluechip_Direct
(G)
ICICI Pru US 180.65 15.70 0.6 1.0 3.8 15.3 42.3 ----
Bluechip Equity
(G)
Birla SL 8.62 15.96 0.1 -0.4 3.7 11.8 30.7 ----
Intl.Equity A-
Direct (G)

50
 Interference:

Table 1 depicts the performance of selected equity diversified

schemes return for a period of 2009 to 2014. It also depicts the
average Portfolio return and scheme return performance in
comparison to the benchmark.

The fifth column shows the schemes-wise return for five years
in which gives highest return of 82.5% in the year 2014 by
ICICI Pru Exp & Other Services-RP (G)and also from the
inception. It is followed by ICICI Pru Exp &Other Services-DP
(G), ICICI Pru US Bluechip - Direct (G), ICICI Pru US
Bluechip Equity (G) and Birla SL Intl. Equity A -Direct (G)
with 45.0, 42.9, 42.3, 30.7 return respectively.

In all five years duration ICICI Pru Exp &Other Services-RP

(G) is performed well compared to others schemes.

b) Debt Long Term (Table 2)

Scheme Asset NAV 1w% 3w% 6w% 1y% 3y% 5

(Rs.Cr) y%
name
L&T Gilt 38.90 29.58 0.2 2.1 2.3 5.3 9.6 ----
Fund - Direct
(G)
ICICI Pru 57.26 13.80 0.2 0.7 2.6 5.3 9.6 20.4
Long Term
Plan (G)

51
ICICI Pru 3.04 13.80 0.2 0.7 2.6 5.3 9.6 ----
Long Term -
Direct (G)
Templeton 36.96 12.48 0.2 1.0 2.8 6.4 9.4 -----
Corporate
Bond-Direct
(G)

Interference:

Table 2 depicts the performance of selected Debt Long Term

return for a period of 2009 to 2014. It also depicts the average
Portfolio return and scheme return performance in comparison
to the benchmark.

The fifth column shows the schemes-wise return for five years
in which gives highest return of 20.4% in the year 2014 by
ICICI Pru Long Term Plan (G)and also from the inception
followed by ICICI Pru Long Term Plan-PP (G) with return of
19.8% . It is followed by L&T Gilt Fund - Direct (G), ICICI Pru
Long Term - Direct (G) and Templeton Corporate Bond-Direct
(G), with 9.6, 9.6 and 9.4% for third year return respectively.

In all five years duration, ICICI Pru Long Term Plan (G) and
ICICI Pru Long Term Plan-PP (G is performed well compared
to others schemes

52
c) Hybrid: Top 5 funds in India (Table 3)
Scheme Asset NAV 1w% 3w% 6w% 1y% 3y% 5
name (Rs.Cr) y%
FT (I) FF 47.14 17.97 1.0 2.2 7.8 21.3 55.1 ---
US Opp. -
Direct (G)
FT (I) 455.13 17.77 1.0 2.1 7.5 20.6 53.5 ----
Feeder-
Franklin US
Opp. (G)
DSP BR US 46.81 15.25 ----- 1.6 7.1 16.5 44.8 ----
Flexible*
Eqty-Direct
(G)
DSP BR US 36.09 15.14 ----- 1.5 7.0 16.2 43.8 ---
Flexible*
Equity
Fund (G)
DWS Top 3.96 13.18 -0.4 0.9 3.1 17.1 29.3 53.4
Euroland
Offshore
Fund (G)

Interference:
Table 3 depicts the performance of selected Hybrid: Top 5 funds
in India for a period of 2009 to 2014. It also depicts the average
Portfolio return and scheme return performance in comparison
to the benchmark.

The fifth column shows the schemes-wise return for five years
in which gives highest return of 20.4% in the year 2014 by DWS
Top Euroland Offshore Fund (G). It is followed by FT (I) FF US
Opp. -Direct (G), FT (I) Feeder-Franklin US Opp. (G), DSP BR
53
US Flexible* Eqty-Direct (G) and TDSP BR US Flexible*
Equity Fund (G) with 55.1, 53.5, 44.8 and 43.8 % for third year
return respectively.

In all five years duration, DWS Top Euroland Offshore Fund

(G) is performed well compared to others schemes.

54
SUGGESTIONS AND RECOMMENDATION

 People are not aware of the life insurance. Most of

them know only one company which provides life
insurance i.e. LIC. So awareness campaign should be run
so that people are aware of different life insurance
companies in India.

 People should be educated about the different types of

products or plans offered by the life insurance companies.
Most of them don’t know much of the different types
of plan or products.

 It was felt that most of the people took life for tax
savings or just to cover up their life, not as an
investment avenue. Life Insurance companies need to
advertise in such a manner that people start investing in
life insurance like the way they invest in the stock market

 Now at the time of global turmoil insuran

c e c o m p a n y h a d t o h o l d o n t o t h e policyholder
s trust which might lead the company to the path of success

 Insurance companies should try to adopt different strategies

to market their products or plan. Companies should not
primarily focus on the agents for their business

55
 CONCLUSION:
 Insurance is one sector that witnessed continuous growth owing to
the reforms in 2000.The insurance sector is likely to attain a
size of Rs. 2,00,000 crore ($ 51.2 billion) in2009-10. In life
insurance, the business grew by 23.3% to Rs. 93,000 crore
in 2007-08.
 A well-functioning insurance market plays an important
role in economic development and financial stability of
developing economies such as India’s. First, it
inculcates and en cou rag es th e h ab it of sav ing. Secon d,
it p rov id es a saf ety n et to rural and u rb an enterprise and
productive individuals.
 Running asuccessful Mutual Funds requires c
o m p l e t e u n d e r s t a n d i n g o f t h e peculiarities of the
Indian Stock Market and also the psyche of the small investors.
 Thisstudyhasmad e an attemp t to un derstand the finan cia
l beh av io r of Mu tu al Fund investorsin connection with the
preferences of Brand (AMC), Products, Channels etc.I observed
that many of people have fear of Mutual Fund. They think
their money willnot be secure in Mutual Fund. They need the
knowledge of Mutual Fund and its relatedterms. Many of
people do not have invested in mutual fund due to lack of
awarenessalthough th ey h ave mo n ey to invest. As th e
awaren ess and in co me is g rowing t h enumber of mutual
fund investors are also growing.
 “Brand” plays important role for the investment. People
invest in those Companies wh ere th ey have faith o r th ey
are well kno wn with th em.

56
 BIBLIOGRAPHY

1) http://www.wikipedia.com
/
2) http://www.irdaindia.org/
3) http://www.google.com/
4) http://www.onlineresearc
h.com/
5) http://shodhganga.inflibn
et.ac.in/bitstream/10603/95
114/10/10_chapter2.pdf

57