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MBA Sem - IV

Dr. ASHA ALEXANDER 2006-2008







As a part of MBA curriculum and in order to gain practical knowledge in the field of management, we are required to do a grand project in any specific field, which provide us good knowledge so I selected the industry which is in the filed of financial planning, because in certain industry I can learn about the multiple products. The basic objective behind doing this project is to gain knowledge regarding the real market situation. This is a report of a live project done by me for Bajaj Capital Ltd. Company. This project report speaks about Company Information Information on different Investments Options. All the two section take us stepwise from the present and findings for the future. The recommendation rest on the basis of research work done and conclusion derive there of. To add to this, various graphs, frequency tables etc. have been added. Further, this analysis tries to bring to fore how RCAM can implement opportunities owing to its service and quality that is renowned for. Through this report, I summarize that I have strived to perfect us in best possible manner to report my study systematically and ethically


I undersigned Mr. sanjay B. Modhvadiya, a student of M.B.A.III RD semester declare

that I have prepared this project report on TO STUDY THE AWARENESS OF MUTUAL FUND AMONG THE INSURANCE AGENTS At Bajaj Capital Ltd. pvt.Ltd. Under MR. Ketan Pandit. I am also guided by Mr.Rajesh Faldu of JVIMS I also declare that this report is my own preparation and not copied from anywhere else.



It is great pleasure for me to introduce this report, which I have prepared after doing my research work at BAJAJ CAPITAL in JAMNAGAR city area. I hope that this report will be acknowledged. I sincerely express my deep sense of gratitude to our Dy. Dir Ajay Shah and Professor Prof. Asha Alexander for placing before me such a golden opportunity to undergo research work in corporate world. Their valuable guidance helped me to complete my research project easily. I would also like to acknowledge, Mr. Hitesh Panchal (Zonal head) and Mr. Anand Udani (branch manager) who gave me his valuable guidance and time throughout my project. Without his support I would have faced difficulties in completing the project. And lastly I would also thank my friends who helped in preparation of this project report.

Yours faithfully, (Sanjay. B. Modhvadiya)


Sr.No. 1 2 Particulars Executive Summary Introduction I) Company Details II) III) 3 Industry Details Competitors Details Page No. 06 07 08 29 46 50 56 59 60 60 61 61 62 64 83 84 85 86 87 88 92 93 103

IV) Regulatory Environment Details Research I) II) Research Objectives Research Methodology a) Research Design b) Unit of analysis c) Sampling design d) Data collection method e) Data analysis & interpretation

4 5 6 7 8 9

Findings Conclusion Limitation of the study Recommendation Appendix I) Questioners I) List of graphs II) Glossary Bibliography


Executive Summary


The economy is highly influenced by the Financial System of the country. The Indian Financial System has been broadly divided into two segments: the organized and the unorganized. An investor has a wide array of investment avenues available. Economic well being in the long run depends significantly on how wisely he invests. For todays complex financial scenario Bajaj Capital is offering the ideal investment options. Markets for investment avenues like equity shares, bonds and other fixed income instrument, real estate, derivatives have become information driven. As Bajaj Capital is offering all these but my project is especially on the comparison of mutual fund and Unique Linked Insurance Plan so I have studied these topic in depth. Bajaj Capital is the financial planner established in 1964 and having 7 branches in Gujarat State. The company has recently opened the branch in the JAMNAGAR city. The company has 42years of trusted experience in the filed of financial planning. I was placed under the marketing and sales department and I have learned a lot in carrying out marketing task for Bajaj Capital. I have done marketing of mutual fund and Unit Linked Insurance Plan products in the JAMNAGAR city area. I have also carried out a research project. Under the title of Comparative analysis of mutual funds and Unique Linked Insurance Plan and Potentiality of MUTUAL FUNDs and Unique Linked Insurance Plan. The questionnaire was used as data collection instrument and both open ended and close-ended type of questions were used as per the requirement. The survey was random sample judgment. And from the survey it was found that the brand awareness of Bajaj Capital. Is lower in JAMNAGAR.




Bajaj Capital is a financial services company engaged in the business of Merchant Banking, Resource Mobilization, Distribution of Financial Products, Investment Advisory Service, Buying and Selling of Money Market Investments and Tailor Made Financial Planning For Individual and Corporate Clients. Bajaj Capital is a Securities and Exchange Board of India (SEBI) approved Category I Merchant Banker/Investment Advisor, member of Delhi Stock Exchange and dealer on OTC Exchange of India. The company was promoted in 1965 by Shri. K. K. Bajaj, a lawyer turned businessman with an objective to provide professional guidance to investors on where, when and how to invest and to assist the corporate sector in its resource raising activities. Bajaj Capital became the first company to set up Investment Centers all over India for this purpose. Today, Bajaj Capital has 90 offices in over 40 important Indian Cities and has a team of around 750 employees i Every year Bajaj Capital raises resources for over 1000 top Institutions/Corporate for their fixed income and Equity offerings. Bajaj Capital is also one of Indias largest distributors of financial products like Mutual Funds and Insurance.



The Bajaj Capital Group is one of Indias premier Investment Advisory and Financial Planning companies. We are also SEBI-approved Category I Merchant Bankers. We offer personalized Investment Advisory and Financial Planning services to individual investors, corporate houses, institutional investors, Non-Resident Indians (NRIs) and High Net worth Clients, among others. As one of Indias largest distributors of financial products, we offer a wide range of investment products such as mutual funds, life and general insurance, bonds, post office schemes, etc. offered by reputed public and private and government organizations

The History of Bajaj Capital


Bajaj Capital has contributed to the growth of the Indian Capital Market at every step. In 1965, we were the first to innovate the Companies Fixed Deposit. Today, we are playing an active role in the growth of the Indian Mutual Fund industry. We are also working closely with private insurance companies to deepen India's insurance here is a brief gist of our journey through the years. 1964 Bajaj Capital sets up its first Investment Centre in New Delhi to guide individual investors on where, when and how to invest. India's first Mutual Fund, Unit Trust of India (UTI) is incorporated in the same year. 1965 Bajaj Capital is incorporated as a Company. In the same year, the company introduces an innovative financial instrument the Company Fixed Deposit. EIL Ltd. (Oberoi Hotels, then known as Associated Hotels of India Ltd.) becomes the first company to raise resources through Company Fixed Deposits. 1966 Bajaj Capital expands its product range to include all UTI schemes and Government saving schemes in addition to Company Fixed Deposits. 1969 Bajaj Capital manages its first Equity issue (through an associate company) of Grauer & Wells India Ltd.; right from drafting the prospectus to marketing the issue.



1975 Bajaj Capital starts offering 'need-based' investment advice to investors, which would later be known as 'Financial Planning' in the investment world. 1981 SAIL becomes the first government company to accept deposits, followed by IOC, BHEL, BPCL, HPCL and others; thus opening the floodgates for growth of retail investment market in India. Bajaj Capital plays an active role in all the schemes as 'Principal Brokers' 1986 Public Sector Undertakings (PSUs) begin making public issues of bonds MTNL, NHPC, IRFC offer a series of Bond Issues. Bajaj Capital is among the top mobilization for all these players 1991 SBI issues India Development Bonds for NRIs. Bajaj Capital becomes the top mobilized with collections of over US $20 million. 1993 The first private sector Mutual Fund Kothari Pioneer is launched, followed by Birla and Alliance in the following years. Bajaj Capital plays an active role and is ranked among the top mobilizes for all these schemes. 1995 IDBI and ICICI begin issuing their series of Bonds for retail investors. Bajaj Capital is the co-manager in all these offerings and consistently ranks among the top five mobilizes on an all-India basis. 1997 Private sector players lead the revival of Mutual Funds in India through Openended Debt schemes. Bajaj Capital consolidates its position as India's largest retail distributor of Mutual Funds. JVIMS-JAMNAGAR 11

1999 Bajaj Capital begins marketing Life and General Insurance products of LIC and GIC (through associate firms) in anticipation of opening up of the Insurance Sector. Bajaj Capital achieves the milestone of becoming the top 'Pension Scheme' seller in India and launches marketing of GIC's Health Insurance schemes. 2000 Bajaj Capital implements its vision of being a 'One-stop Financial Supermarket.' The Company offers all kinds of financial products, including the entire range of investment and insurance products through its Investment Centres. Bajaj Capital offers 'full-service merchant banking' including structuring, management and marketing of Capital issues. Bajaj Capital reinvents 'Financial Planning' in its international sense and upgrades its entire team of Investment Experts into Financial Planners. 2002 The company focuses on creating investor awareness for Financial Planning and need-based investing. To achieve this goal, the company introduced the International College of Financial Planning. The graduates of this institute become Certified Financial Planners (CFPs), a coveted professional qualification. 2004 Bajaj Capital obtains the All India Insurance Broking License. Simultaneously, a series of wealth creation seminars are launched all over the country, making Bajaj Capital a household name. 2005 Bajaj Capital launches 360 Financial Planning, a software-based programmed aimed at encouraging scientific and holistic investing.




For well over four decades now, we at Bajaj Capital have been helping millions of investors reach their financial goals, and live fuller, richer and more satisfying lives. Over these years, the Bajaj Capital family has seen tremendous growth. Now, with our online venture, we are all set to make our presence felt even beyond the geographical boundaries. We remain committed to offer the best of our services, skills and expertise to all our valued investor clients and visitors. Seen from this perspective, our online venture is yet another effort at reaching out to you. I hope that you will find this website useful. I welcome your suggestions to improve this site, and make it more useful to investors. K.K.Bajaj Chairman, Bajaj Capital Ltd.




Bajaj Capital is one of Indias leading Financial Services companies offering Free Advice on Investments, Insurance, Tax Saving, Retirement Planning, Financial Planning, Childrens Future Planning and other services. We also have a wide range of products and services for Corporate, High Net worth Individuals, and NRIs. all under one roof. At Bajaj Capital, we believe in dreaming big. Dreams inspire us to excel. They ignite hope and kindle in us the passion to stretch our limits. We also believe that nothing can or should stop us from realizing our dreams and financial constraints should be the last thing to stop anyone.

Four decades of excellence

For over four decades, we have been helping people realize their aspirations by helping them make their wealth grow, and plan their financial lives. Today, we are a one of the largest financial planning and investment advisory companies in India, with a strong presence all over the country. We take pride in serving our customers both individual and institutional and are known for our strong professionalism and work ethics.



Wide range of services We offer a comprehensive range of services including financial planning and investment advice, and the entire gamut of financial instruments and investment products of almost all major companies, both public and private. In addition, we also provide investment assistance by helping you complete all the formalities, and help you keep regular track of your investments. These services and products are delivered through our network of 109 Bajaj Capital Investment Centers located all over the country. We are also a SEBI-approved Category I Merchant Banker. We raise resources for over 1,000 top institutions and corporate houses every year, and offer specialized services to Non-Resident Indian (NRIs) and High Net worth Clients.

What you can expect from Bajaj Capital.

Sound, research-based advice Unbiased, independent and need-based advice Prompt, courteous service Honest, ethical dealings Accessibility



Branches of Bajaj Capital in Gujarat:

The company is having following branches in Gujarat State Ahmedabad Gandhinagar JAMNAGAR Rajkot Surat Vadodaa




Merchant Banking: Bajaj Capital enjoys SEBI category (I) authorization for Merchant Banking. We offer the full spectrum of Merchant Banking Services, beginning from identifying the best time for an issue to final stage of marketing it, to harvest unparalleled success. Bajaj Capital has always been cautious to associate only with select capital issues and has managed over 100 issues for both Debt and Equity over the years for Corporate sector ranging from family owned companies to professionally managed multinationals to government companies and across the entire spectrum of industries. On a cumulative basis, we have managed issues worth over RslOO billion and are constantly ranked among Top 10 Merchant Bankers in the country. Bajaj Capital excels in the area of Debt offerings from Central and State Financial Institutions and Infrastructure companies. Our excellence in this field is a function of deep industry Knowledge, proven financial savvy and a team of brightest minds in the industry. These strengths enable us to structure, price and distribute Debt solutions that generate outstanding response. Resource Mobilization: Bajaj Capital is one of Indias leading mobilizes of public savings in shape of financial Instruments like company Deposits, Bonds, Debentures, IPOs and other Government saving schemes. Bajaj Capital since inception has raised resources for 2000 leading institutions and corporate including over 1600 Private Corporate, over 40 Government Companies/PSUs, over 28 Mutual Fund, 15 Central and State level Financial institutions & over 15 Banks. The list includes the whos who of Top Government Institutions and Private Corporate in India.



Bajaj Capitals is widely regarded as one of Indias largest distributor of Mutual Funds. We distribute over 100 schemes of all leading and selected Mutual Fund. Investment Advisory Bajaj Capital offers need based Investment Advice to retail investors, High Net worth Investors (HNI) & Institutional Investors. Bajaj Capital is serving 5,40,000 Retail investors all over India including 10,000 NRIs and 5000 HNIs besides 2500 Institutional Investors. We offer investors advice on a range of over 1000 investment schemes including Fixed Income, Equity and Mutual Fund products besides insurance. Over 7000 prospective clients visit our offices all over India daily, seeking investment advice.BajajCapital has a Premier Clients Group exclusively to cater to high Net worth Individuals (HNIs) who seek special attention. Relationship Manager is assigned to every such Investor to constantly keep him up to date on latest market changes and review his portfolio regularly. Money Market: Bajaj Capital has an active Money Market desk, which is engaged in purchase & sale of Central & State Government Securities and Bonds catering to the needs of Educational & Charitable Trusts, Societies, Corporate, Banks, Provident/Super Annulations Gratuity Fund and HNIs. Bajaj Capital is also active in meeting shortterm fund requirements of various corporate clients by arranging Inter Corporate Deposits and raising commercial paper. Financial Planning: Financial goal of each individual investor varies according to his dream, ambition and family size and future financial planning for the children & old age pension for self and wife so does the pathway to achieve it. At Bajaj Capital we apply the principles of Financial Planning as both science & art; we understand the time horizon, risk bearing capacity and investment goals of investors keeping in mind JVIMS-JAMNAGAR 18

their psyche and financial needs. Based upon this we help individual investors plan their entire life up to Retirement, Taxes, Insurance needs and other important personal financial goals. Insurance Broking: Bajaj Capital is an IRDA licensed insurance broker. The job of an insurance broker is to identify his clients requirements, assess them and then match them to the most competitive and Appropriate insurance for their clients. Bajaj Capital is an independent broker who is not tied to any individual insurance company. We are multi-tied which is where we can introduce products to the clients from a panel of insurance providers. Bajaj Capital insurance broking will simply be acting on behalf of the customers and only in their best interest. We know all the different products in the market and can find the right one for the clients at the right price.




1. Regular information update: we keep you updated on the latest opportunities
in the world of investments.

2. Need based advise: our advise is all need based we give you customize advise
only after understanding your financial goals, risk, tolerance and other priorities in life.

3. Research based Advise: Our profession research team will help you with
advise that is thoroughly based on the analysis of market dynamics, government policies and a close monitoring of global development.

4. Free Investment health check: we help you achieve your financial goals by
assessing your risk tolerance level and recommending to you a suitable asset allocation model for your investments.

5. Door to door Service: We have a vast network of branches all over India
helping you to get services at your doorsteps.

6. Regular Information: through our in house publications like bajaj Capital

Investors India, Investors Outlook, investments select list and others we keep your updated on the latest opportunities in the world of investments.

7. Accessibility: we have branches spread nationwide covering all important Indian

cities almost every nook and corner of the country.

8. Tailor made solution: you get easy transactions and tailor made solutions
through our Investment centers even at the tinkle of a phone.

9. Spoliation in all Clint Segment: we offer financial planning for wife

housewives, celebrities, players, doctors, architects, professionals, ambassadors, army officers and the likes.

10. 24 hour availability: we are available to you, 24 hours a day on our website,




Figure-1 (Get from the Bajaj capital Jamnagar Branch)




Mr. K.K. Bajaj, Chairman A visionary par excellence, a pioneer and a leader, Mr. K.K. Bajaj has been instrumental in shaping Bajaj Capital has emergence as one of Indias largest Investment Advisory companies. He is a highly respected figure in the field of institutional and personal finance and Company FDs. His emphasis on honesty, ethics and values are the guiding principles of the organization. Mr. Bajaj is also a prolific writer and has written over 200 articles on diverse issues such as Personal Finance, Economic Affairs, and Health.

Mr. Rajiv Deep Bajaj, Managing Director

A qualified Financial Planner, Mr. Rajiv Deep Bajaj was the first to introduce the concept of Financial Planning in India. In fact, he is the Founding Chairman of the Association of Financial Planners (AFP). He is also amongst the first batch of 25 Certified Financial Planners (CFPtm) designation holders in India.



A Post-graduate in Management and holder of an International Certificate for Financial Advisors from the Chartered Insurance Institute, London, Mr Rajiv Deep Bajaj has played a pivotal role in expanding Bajaj Capital's reach across the country. He has recently pursued an Executive MBA in International Wealth Management under an exchange program between University of Geneva, Switzerland and Carnegie Mellon University, Pittsburgh, USA. His youthful energy, dynamic leadership, vision and 16 years strategic management experience in Banking, Financial Advisory, Insurance Broking and Financial Planning have strengthened Bajaj Capital. The Media and Industry honchos have regularly acclaimed Mr Rajiv Deep Bajaj for his strengths as a powerful orator and writer. His views on various Investment Strategy and Financial Planning-related issues are regularly flashed in some of the leading media entities like The Economic Times, Business Today, Star TV, CNBC and Aaj Tak. His personal life goal is to spread Financial Education amongst the Indian masses in order to increase their knowledge base and shift their perspective from Saving to Investing. Mr. Sanjiv Bajaj, Joint Managing Director

Mr. Sanjiv Bajaj started his career in 1995 as managerial trainee, worked on various projects which included developments at alternate channel of distribution like Broker's associations...etc. From here, he moved on to Investment Advisory services, which included understanding the client's needs, and by using various tools of financial planning to offer them a solution to meet his requirements. JVIMS-JAMNAGAR 23

Mr Sanjiv Bajaj is versatile personality with diverse areas of interest. He is a Postgraduate in Business Management with specialization in Finance, and holds an International Certificate for Financial Advisors from the Chartered Insurance Institute, London. Thanks to him, Bajaj Capital is today the largest individual agent for LIC. Mr Sanjiv Bajaj has a keen interest in IT, and has played a major role in implementing the ERP software and E-commerce activities in the company

Mr. Anil Chopra

CEO & Director Mr. Anil Chopra is the Chief Executive Officer & Director of Bajaj Capital Limited; He joined the Company in 1984. Mr. Chopra has been instrumental in expanding the branch network of Bajaj Capital Ltd. all over India. A Chartered Accountant and a Certified Financial Planner, Mr. Chopra is credited with introducing international accounting and HR practices in the organization. His most valuable contribution, however, has been in building up a financially literate society and making Bajaj Capital a strong retail brand. He is considered an authority, and is widely sought after by the media for quotes on key developments in the industry



BAJAJ CAPITAL'S MISSION STATEMENT The focus of our organization is to be the most useful, reliable and efficient provider of Financial Services. It is our continuous endeavor to be a trustworthy advisor to our clients, helping them achieve their financial goals. AIMS OF BAJAJ CAPITAL

To serve our clients with utmost dedication and integrity so that we exceed their expectations and build enduring relationships. To offer unparalleled quality of service through complete knowledge of products, constant innovation in services and use of the latest technology. To always give honest and unbiased financial advice and earn our clients' everlasting trust. To serve the community by educating individuals on the merits of Financial Planning and in turn help shape a financially strong society. To create value for all stake holders by ensuring profitable growth. To build an amicable environment that accords respect to every individual and permits their personal growth. To utilize the power of teamwork to function as a family and build a seamless organization.


To provide better customer service To increase AUM Long-term wealth creation of customer.



Figure-2 (Available www. Bajaj Capital.com)




Our logo depicts Lord Ganesha who is the source of all our values and ethics in business.

The large ears of Lord Ganesha remind us to hear more. We listen carefully to our clients to understand their needs. The weight of the trunk on the mouth symbolizes silence. We work silently, without blowing our own trumpet. The long trunk symbolizes continuous exploration. We explore all avenues to provide the best investment opportunities for our clients. The heavy posture of Ganesha symbolizes stability. We help our clients to attain financial stability through wise investments. Lord Ganesha is known as the remover of obstacles and best ower of prosperity. We emulate His example and try our best to help our clients attain prosperity by proper financial planning. Our logo has a yellow background. Yellow is the color of gold, which symbolizes wealth. According to Vedic lore, it is also the color associated with Brihaspati, the guru and counselor of the Gods. We offer our clients sage counsel to make their wealth grow. The letters are in red. Red is the color rajas symbolizing power and incessant activity. It symbolizes our aggressive quest for your well-being and happiness. The white streak represents the trunk of Lord Ganesha. White is the color of satva guna, and implies our selfless commitment to your life-long happiness.




Wide range of products and services 41 years experience as Investment Advisors and Financial Planners More than eight lakes satisfied clients all over India Countrywide network of 120 branches Over 12,000 NRI clients across the globe Personalized wealth management advice 24 x 7 online accessibility through www.bajajcapital.com Strong team of qualified and experienced professionals including CAs, MBAs, MBEs, CFPs, CSs, Insurance experts, Legal experts and others

SEBI-Approved Category I Merchant Bankers Group Co BCIBL is an IRDA-licensed Direct Insurance Broker






The economy of any country is widely influenced by the financial market of that country. There is a strong link between the economy progress and the financial system with institutional arrangement and prevailing delivery system. The Indian economy is on the path of progress and the projection of GDP growth rate in Budget-2005 is around 9%. The financial system has a strong impact on GDP growth rate. The Indian financial system is divided into two parts organized and unorganized. The organized sector constitutes of Commercial Banks, FIs, Insurance companies, Mutual Funds, Unit Trusts, etc. The Indian financial system has also the involvement of public sector institutions. Financial institutions being the important part of financial system in India help to realize the opportunities for savings and real investment in the economy. The FIs help in growth of economy, boosting the investment in various sectors of economy and also the growth of GDP and per capita income.



The first investment trust established in Scotland by Robert Fleming and the first mutual fund of the world The Massachusetts Investors Trust open-ended scheme was launched in Boston, USA in 1924. It was 40 years later that the mutual fund institution, namely the Unit Trust of India was established in India in 1964 and awareness about it, has only been since late 1980s. As of date in US alone there are 5000 MUTUAL FUNDs with the total assets over $3 billion. The Mutual Fund is the ideal investment vehicle for todays complex financial scenario. Markets for equity shares, bonds and other fixed income instrument, real estate, derivatives and other asset have become information driven. Mutual funds are comparatively better option for investment due to various benefits. First benefit is that investors funds are properly managed by fund manager who has wide experience in capital market. Also with proper management of funds returns on mutual fund schemes are maintained. The liquidity option, which is the main investment attribute, can also chosen according to ones investment objective and need. The mutual fund industry is growing at a faster pace. In future mutual fund will be a better option for retail investors who want to invest their money in capital market. Bank deposits and insurance investments have lock-in periods and so retail investors can have another option for investment i.e. Mutual Fund where investor can get liquidity with satisfactory returns.




In India the investor has wide variety of investment options available to him. Economic well being in the long run depends significantly on how wisely he invests. Every investment options has two main aspects i.e. risk and return. The investor has the choice of investment in capital markets of the country and also in financial institution of the country like Banks and Insurance companies. The various tools of investment available to investor are as follows -: Equity Shares Bank Deposits Investment in Debt Market Post Office Savings Government Securities Life Insurance Real Estate National Saving Certificate (NSC) Kishan Vikas Patra (KVP) Mutual Fund Schemes

The investor can invest in any of the above investment tool depending on his investment objective and need. Generally in India the investor prefer to invest in banks and in post office savings account. But in last few years the trend have changed and investors are moving towards capital markets.



Rate of Return The rate of return is an very important aspect of the investment tool. The rate of return is high in equity markets and it is low in post office savings and bank deposits. It means the more riskier the instrument the more the return will be. Risk The rate of return from investments like equity shares, real estate, etc varies rather widely. The risk of an investment refers to the variability of its rate of return. Bank deposits, post office savings, investment in debt market are less risky and have fixed return. Liquidity An investment is highly liquid if: a) b) c) It can be transacted quickly The transaction cost is low The price change between two successive transactions is negligible

The liquidity of market may be judged in terms of its depth, breadth, and resilience. Depth refers to the existence of buy as well as sells orders around the current market price. Breadth implies the presence of such orders in substantial volume. Resilience means that new orders emerge in response to price changes. High marketability is desirable characteristics and low marketability is an undesirable characteristic.



Tax Benefits Some investments provide tax benefits, other does not. Tax benefits are of three kinds: Initial tax benefit, Continuing tax benefit and Terminal tax benefit. Initial tax benefit refers to the relief enjoyed at the time of making the investment. Continuing tax benefit represents the tax shield associated with the periodic returns from the investment e.g. Insurance, bank interest, etc. Terminal tax benefit refers to relief from taxation when an investment is realized or liquidated. Convenience Convenience broadly refers to the ease with which the investment can be made and looked after. Ready availability of investment and easy monitoring of investment can judge convenience. The degree of convenience associated with investments varies widely. On one hand there is deposit in savings bank account that can be readily available and does not require maintenance effort. On the other hand is purchase of real estate that may involve a lot of procedural and legal hassles at the time of acquisition and a great deal of maintenance effort subsequently.






Bajaj capital offers a comprehensive range of financial products and services, which will help to achieve our lifes financial goals all under one roofs. The products are as under:


Company Fixed Deposits Bonds Mutual Funds Life Insurance General Insurance Pension Schemes Post office Schemes Tax Savings Schemes Insurance Linked Investment Schemes Initial Public Offering Housing Loans NRI Schemes Car Insurance

FINANCIAL PLANNING SCHEMES Investment Planning Retirement planning Insurance Planning Childrens Future Planning

Tax Planning Short Term Cash Flow Planning


Fixed Deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits. Financial institutions and Non-Banking Finance Companies (NBFCs) also accept such deposits. Deposits thus mobilized are governed by the Companies Act under Section 58A. These deposits are unsecured, i.e., if the company defaults, the investor cannot sell the documents to recover his capital, thus making them a risky investment option. BONDS: Bond refers to a security issued by a company, financial institution or government which offers regular or fixed payment of interest in return for borrowed money for a certain period of time. MUTUAL FUND: A Mutual Fund is a trust that pools together the savings of a number of investors who share a common financial goal. The fund manager invests this pool of money in securities -- ranging from shares and debentures to money market instruments or in a mixture of equity and debt, depending upon the objectives of the scheme. LIFE INSURANCE & GENERAL INSURANCE:



Insurance provides a cover against uncertainties like death, accidents, and financial losses etc. It also serves as an effective investment and tax saving tool.

PENSION SCHEME: The retirement age poses problems, health as well as family problems. The most important problem is financial; hence the pension scheme which should act as a financial friend in the years of post-retirement. POST OFFICE SCHEME:

These schemes are offered by the Government of India. Safe, secure and risk-free investment options. No Tax Deduction at Source (TDS). Nomination facility is available. Nomination can be changed at any time These instruments are transferable to any part of India. Attractive rates of interest.

TAX SAVING SCH This new section has been introduced from the Financial Year 2007-08. Under this section, a deduction of up to Rs. 1,00,000 is allowed from Taxable Income in respect of investments made in some specified schemes. The specified schemes are the same which were there in section 88 but without any sectorial caps (except in PPF). EQUITY LINKED SAVINGS SCHEMES: Equity Linked savings scheme is floated by the mutual funds. It is basically a scheme, which according to the rules invests in the equity shares of the



companies. Such investment will have to be made in the mutual fund specified u/s 10(23D) of the Income Tax Act to be eligible for rebate

INITIAL PUBLIC OFFERING: Initial public offering (IPO), also referred to simply as a "public offering," is the first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded NRI SCHEMES: NRIs can make direct investments in proprietary/partnership concerns in India as also in the primary issues of shares/debentures of Indian companies. They can also make portfolio investments, i.e. purchase of shares/debentures of Indian companies through stock exchanges in India. These facilities are available on both repatriation and non-repatriation basis. In order to facilitate NRIs to set up new companies in India, the Reserve Bank of India (RBI) vide its Notification NO. FERA 143/93 RB dated 26th April 1993, has granted general permission to NRIs to subscribe to the Memorandum and Articles of Association and to take up the shares of Indian companies for their incorporation. The general permission empowers such Indian companies to issue shares to NRIs, provided that the company is not engaged into activity relating to agricultural and plantation.





Investment Planning is the key to successful investing. It is a scientific process, which, if done in the right sprit, can help you achieve your financial goals. Here are the basic steps of Investment Planning
RETIREMENT SCHEMES: Some like it. Some dont. But retirement is a reality for every working person. Most young people today think of retirement as a distant reality. However, it is important to plan for your post-retirement life if you wish to retain your financial independence and maintain a co Mutual Fundortable standard of living even when you are no longer earning. This is extremely important, because, unlike developed nations, India does not have a social security net.




Insurance is not for the person who passes away, it for those who survive," goes a popular saying that explains the importance of Insurance Planning Insurance Planning is concerned with ensuring adequate coverage against insurable risks. Calculating the right level of risk cover is a specialized activity, requiring considerable expertise. Proper Insurance Planning can help you look at the possibility of getting a wider coverage for the same amount of premium or the same level of coverage for the same amount of premium or the same level of coverage for a reduced premium. Hence, the need for proper insurance planning.

CHILDRENS FUTURE PLANNING: Every parent wishes to watch their child grow. All parents want to give the best possible upbringing to their children. This includes good education and security, in case of any eventuality. Soon, your little bundle of joy will grow up, and it will be time to provide for his or her higher education and wedding. The purpose of Children's Future Planning is to create a corpus for foreseeable expenditures such as those on higher education and wedding, and to provide for an adequate security cover during their growing years.



TAX PLANNING: Proper tax planning is a basic duty of every person which should be carried out religiously. Basically, there are three steps in tax planning exercise. These three steps in tax planning are: 1. Calculate your taxable income under all heads i.e., Income from Salary, House Property, Business & Profession, Capital Gains and Income from Other Sources. 2. Calculate tax payable on gross taxable income for whole financial year (i.e., from 1st April to 31st March) using a simple tax rate table, given on next page.

SHORT TERM CASH FLOW PLANNING: In simple terms, cash flow refers to the inflow and outflow of money. It is a record of your income and expenses. Though these sounds simple, very few people actually take the time out to find out what comes in and what goes out of their hands each month. Cash flow planning refers to the process of identifying the major expenditures in future (both short-term and long-term) and making planned investments so that the required amount is accumulated within the required time frame. Cash flow planning is the first thing that should be done prior to starting an investment exercise, because only then will you be in a position to know how your finances look like, and what is it that you can invest without causing a strain on yourself. It will also enable you to understand if a particular investment matches with your flow requirement. JVIMS-JAMNAGAR 42


Entry Load FREE access to investment through Distribution 2.50% entry load); Entry Load FREE access to investment through Distribution 2.50% entry load);

Mutual Fund investments (retail channel otherwise attracts up to Mutual Fund investments (retail channel otherwise attracts up to

3 Fund Options to suit ones Risk Appetite with unlimited switches at NO EXTRA COST (most of the AMCs offer only limited switches or switches with charges); Exposure to Multi Asset Group like Indian & International equities, debt funds, commodities (Gold), global real estate funds, structured funds, etc. through single investment; Investment strategies & Mutual Fund selections backed by expertise of over 4 decades old Financial Advisor services of Bajaj Capital; Lowest Annual Maintenance Charges in the industry, so far; Exit/Redemption (partial or full) facility at any time (nominal charges applicable if redeemed before 18 months); Single application, Single Account Statement & Single Payment system drastically reduces paper work and wastage of cheque leaves; Absolute transparency through web based Portfolio Reports, 365 days a year, 24 hours a day & Annual Audited Consolidated Asset wise Balance Sheet to know capital gains/losses; As on 28th January 2008 1 year yield of the bench mark index was 18% to 22%. Minimum subscription Rs.5 lakhs per Fund Option. Figure - 3 JVIMS-JAMNAGAR (Available on www.Bajaj Capital.com) 43


Just Trade is the stock brokerage arm of Bajaj Capital Ltd., India's foremost Financial Planning and Investment Advisory Company. Over the last 43 years of its existence, Bajaj Capital has carved a niche for itself as honest, ethical, independent and unbiased advisors, offering a world-class service. Bajaj Capital has over 142 offices in 77 cities across India; and serves over 8,00,000 clients. Just Trade began operations on September 1, 2006, with the inauguration of the first trading centre at Nehru Place, New Delhi. Currently, we have 10 such Just Trade Centers in various cities across the country. The launch of our online investment portal in June 2007 has multiplied our reach manifold. Do-it-Yourself Investing: Our Founding Principle When it comes to online trading in equity and investments, Just Trade puts you on the driver's seat. You decide when, where and how much to invest. Our role is only to facilitate the process and help you take informed decisions. Here are some of the other benefits that Just Trade TM offers: Hi-speed, hi-tech There are no speed limits for creating wealth. Our hi-tech and highly reliable online connectivity through V-SAT and Lease Lines ensures that your trading orders are executed at lightning speed.



Easy... for the busy! Your time is precious. We understand that trading may not be your only business. That's why we have created simplified processes, from account opening to execution of orders. Just 'n' fair Being a value driven company, we believe in offering the best value at a 'fair price'. There are no hidden costs involved. All our processes are transparent and comply with statutory requirements. World-class services We not only adhere to the industry's global best practices, but exceed them in many respects. Our quality control mechanism ensures a uniform delivery of high standard services. The knowledge edge The right information at the right time is the key to trading success. Our researchers sift through information from multiple sources, and communicate them in a jargon-free language. We provide long and short-term investment strategies based on scientific principles. Personal touch A service is only as good as those who deliver it. That's why we have invested in a team that serves with a smile be it at our Just Trade Centers across India, our back office staff handling online and telephone queries.





Reliance Money has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking, depository services, distribution of financial products, consumer finance and other activities in financial services. Reliance Mutual Fund is Indias no.1 Mutual Fund. Reliance Life Insurance is Indias fastest growing life insurance company and among the top 5 private sector insurers. Reliance General Insurance is Indias fastest growing general insurance company and the top 3 private sector insurers. Reliance Money which commenced commercial operations in April 2007 has over 300,000 customers and 4,300 outlets in more than 3,500 locations across India. Reliance Consumer finance which commenced commercial operations in May 2007 has disbursed loans of over Rs.3,000 corers within 6 months of operations. Reliance Capital has a net worth of Rs.5, 662 corers and total assets of Rs. 10,083 corers as of September 30, 2007 and over 16,000 employees.

Products: IPO Forex Personnel finance Mutual fund Equity Commodity Derivatives



NJ Indiainvest Pvt. Ltd.

BAJAJ CAPITAL LTD.S PVT. LTD is a Mutual Fund Distribution company. The

company on behalf of various AMCs and its mutual fund schemes collects money from prospective investors and provides services to them. At present the company is dealing with all types of mutual fund schemes. Two promoters Neeraj Choksi and Jignesh Desai at Surat established the company in the year 1994. At that time the company was in the business of investment revenue like SSNL, RBI bonds, IDBI bonds, direct equity, etc. In the year 1996 the company started Mutual Fund Distribution business. And today the company is involved in only mutual fund distribution business. The Companies corporate head office is at Surat. The main area of business for the company is Gujarat. The company is having 68 branches in all over India. The company is covered whole of Gujarat state in mutual fund distribution business. And now they effectively works outside Gujarat too for expanding their business .

Services provided by the Company are: Mutual funds Fixed Deposits Infrastructure Bonds Approved Securities for Charitable Trust



Karvy Consultants
Karvy Consultants Limited was established in 1982 at Hyderabad the capital of Andhra Pradesh. It was established by a group of Hyderabad-based practicing Chartered Accountants. At initial stage it was very small in size. It was started with a capital of Rs. 1,50,000. Today, company has 230 branches in 164 cities all over the India. The company adds 5 new branches every month to the companys ever growing national network in every nook and corner of the country. The company service over 16 million individual investors, 180 corporate and handle corporate disbursements that exceed Rs. 2500 Crore. Today Karvy is a legendary name in financial services. Services provided by the Company are: Stock Broking Demat Services Insurance Mutual Fund services Registrars & Transfer Agents






Financial System is basically responsible for the major up and downs in the economy. So, there are some Regulatory Bodies on it, which ensures effectiveness in the management of fund of the investors and transparency in the transactions. Security Exchange Board Of India (SEBI): Mutual Funds are regulated by SEBI Regulations, 1996. SEBI is the regulator of all funds except offshore funds. In the year 1992 SEBI Act was passed. The objectives of SEBI are to protect the interest of investors in securities and to promote the development of and to regulate the securities market. As far as Mutual Funds are concerned, SEBI formulates policies and regulates the Mutual Funds to protect the interest of the investors. SEBI notified regulations for the Mutual Funds in 1993. Thereafter, Mutual Funds sponsored by private sector entities were allowed to enter the capital market. The regulations were fully revised in 1996 and have been amended thereafter from time to time. SEBI has also issued guidelines to the Mutual Funds from time to time to protect the interests of investors. Before starting an AMC the sponsor has to register it with the SEBI. Any changes into the philosophy or investment pattern in the Company, should be reported to SEBI.



Reserve Bank Of India (RBI): RBI Established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office is at Mumbai since foundation. The objectives of RBI are: "to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage." Bank- sponsored Mutual Funds are jointly regulated by SEBI and RBI. If there is a bank-sponsored fund, it cannot provide a guarantee without RBI permission. Association Of Mutual Fund in India (AMUTUAL FUNDI) Board: AMUTUAL FUNDI is not a self-regulatory organization. AMUTUAL FUNDI is regulated by its own board made up of its members. It runs under the guidance of RBI and SEBI. It was formed for promoting mutual funds into masses. To be a Mutual Fund Advisor, AMUTUAL FUNDI Board takes a exam for it.




Major Functions The functions of the Division include formulation of policy for the orderly growth of the Insurance sector. These, inter alias, include administration of the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts; monitoring of the performance of the nationalized insurance companies, framing of rules and regulations in respect of service conditions of employees of nationalized insurance companies; framing of Rules in respect of terms and conditions of services of the Chairpersons and Members of Insurance Regulatory and Development Authority (IRDA) and appointment of the Members of IRDA, co-ordination of vigilance matters in the nationalized insurance industry; and appointment of Chief Executives and Directors on the Boards of nationalized insurance companies.


Composition of Authority under IRDA Act, 1999 As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament) specify the composition of Authority.



The Authority is a ten member team consisting of (a) (b) (c) a Chairman; five whole-time members; four part-time members,

(all appointed by the Government of India) Duties, Powers and Functions of IRDA Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA. Subject to the provisions of this Act and any 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 . Without prejudice to the generality of the provisions contained in sub-section (1)The powers and functions of the Authority shall include, (a) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration. (b) protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance; (c) Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents; (d) Specifying the code of conduct for surveyors and loss assessors; (e) Promoting efficiency in the conduct of insurance business; (f) Promoting and regulating professional organizations connected with the insurance and re-insurance business. (g) Levying fees and other charges for carrying out the purposes of this Act. JVIMS-JAMNAGAR 54

(h) Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business. (i) 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 section 64U of the Insurance Act, 1938 (4 of 1938). (j) Specifying 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; (k) Regulating investment of funds by insurance companies. (l) Regulating maintenance of margin of solvency. (m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries. (n) Supervising the functioning of the Tariff Advisory Committee. (o) Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause. (p) Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector. .





Problem Formulation
Problem is any hurdle or barrier or area, which requires inquiry. Research Problem is an issue for which the whole procedure is carried on. Today competition and markets both have expanded. The company every now and then cannot afford to undertake research activities as research involves huge cost. The companies undertake research activities when it perceives that something is going wrong or theyre in lack of information to solve a particular problem. In such cases only company undertakes research activities. The research activity is totally dependent on managerial problem and research objective. Research has been done to find out the brand awareness of Bajaj Capital Ltd.. The data was collected with the help of questionnaire. The main focus of research was to study brand awareness among Individual Financial Agents as most of the business done by the company is with Individual Agents only.



Research Problem:
Comparison between mutual fund and Unique Linked Insurance Plan and potentiality of mutual fund and Unique Linked Insurance Plan

Problem Identification

Proble Discovery

Analysis & Selection

Formulation of Objective



Research Objectives
With an outlook of the every marketing research, it has been conducted for specific objective. It must have clear-cut problem and based on it the objectives must also be clearly defined. Therefore, that research gets clear idea about their task. Research objectives help the researcher to achieve his task easily. Also after the completion of research project, the whole project can be evaluated based on the research objective. Thus it is at most important to define the research objective.

To study the comparison of mutual fund and unit Linked Plan products of Bajaj Capital.

To know the investor consider the expenses before investment in UNIT LINKED PLAN and mutual fund To know about the how much different companies charged the expenses in mutual fund and UNIT LINKED PLAN To identify investment time frame To know about the how much different companies charged the expenses in mutual fund and UNIT LINKED PLAN To know the investor perception toward the UNIT LINKED PLAN and mutual fund To know the investor tendency towards the risk (to get the information about risk avers investors and risk taker customer )



Research Methodology
Research Design
The research design acts as intermediary between research objective and actual research done. The research design tells how data will be collected and from where it will be collected. Also clarification is made on the analysis and interpretation of data. The research design in the project is exploratory design. The data are analyzed and based on the data suggestions are given.

Sources of Data
Data has to be collected from the right source so as to serve the purpose of the research. Data are collected as per the requirement of the research project. There are two main sources of data i.e. Primary source Secondary source The primary source means the data are collected for the first time directly from the sample or population as per the requirement. The secondary source is the source already collected by other researcher, information available from newspaper, magazines, journals, etc. The source of data for project is primary source. The data is collected for the first time to study the comparison of mutual fund and the Unique Linked Insurance Plan of the Bajaj Capital.



Sampling Design
It is not possible to study the whole population every time in a research project. The study of whole population requires lot time and money. So most of the research is done by choosing samples from the population. Sample survey involves less cost and can give accurate results if sampling plan is designed properly. The Sampling Design consists of following-: Sampling Unit Sampling Size Sampling Method Sampling unit. Sample size Investors of JAMNAGAR city. I have taken sample size 100 due to time constraints.

Sampling method Random sample judgment



Data Collection Method

Data collection is a critical part of whole research project. It data are not collected properly then the whole project would fail to give accurate results and will not serve the purpose of the study. So proper method has to be used to collect the data systematically. The various methods of data collection are as follows-: Observation Method Survey Method In Observation Method the units under study are observed and the behaviors of them are noted down under various conditions. This method gives very accurate results but requires a very skillful observer. The other method is the survey method where researcher directly approaches the respondents and asks their view on the unit under study. The survey method consists of following sub-methods-: Interview Method Questionnaire Method For the research purpose questionnaire method was used where various questions relating to comparison of mutual fund and Unique Linked Insurance Plan were asked.



Questionnaire Plan
Following were the points considered while designing the questionnaire-: Initial 3-4 questions were qualifying and warm-up questions. The question relating comparison was specific questions. Both types of question i.e. open-ended and close-ended questions were asked to know about the perception towards services provided by Bajaj Capital. At last the demographic details were collected which are useful to describe the person who has been studied.



Data Analysis And Interpretation

In the study the data are analyzed using the percentage method. Percentage method is selected because the data thus analyzed will be easier to interpret in accordance with the objectives of the research. Wherever needed the graphs are drawn so that data interpretation becomes easier and one can understand it easily. For my research I have taken both primary and secondary data lets first see the secondary data.



Section -1: Secondary Data on Comparative Analysis M.F V/S UNIT LINKED PLAN
Parameter Mutual fund (equity plan ) Growth plan UNIT LINKED PLAN plan Life time -1 Premium allocation charges 1st year 20% 2ed year 7% 3rd year 4% Administration charges (1) maximize 2.25% (2) balancer 2.25% (3) protector 1.50% (4) preserver 0.75% mortality charges :as per the age top up charges 1.00% Switching charges: except for the 4 free switches allowed every policy year. all other will be charge Rs 100per switching So approximate charges is 22.25%

One time expenses Entry load Exit load Nil <5crores =2.25% 5carors<=nil

Recurring expenses Estimated recurring expenses 2.50%

Actual recurring expenses for the previous financial year Interpretation:

Total annual recurring expenses =1.50% p.a TABLE -1

In ICICI mutual fund entry load is nil and exit load is 2.25% maximum where is in life time -1 plan fund allocation charges in 1st year 20 second and third year 7and 4% respectively



and recurring expenses of ICICI mutual fund 2.5% it varies from category invested the total annual recurring expenses was 1.5% where is the total annual charge of LIFE time plan is 2.25%


Parameter Mutual fund (equity plan ) Long term advantage fund nil <5crors =2.25% >5crors =nil 1st Rs 100crores =2.50 next Rs 300crors =2.25 next Rs 300 crors =2.00 balance =1.75 Total annual recurring expenses =2.50% P.A UNIT LINKED PLAN plan Of insurance

One time expenses Entry load Exit load Recurring expenses Estimated recurring expenses

Premium allocation charges 1st year 27% 2ed year 27% 3rd year 1.00% Fund management charges 0.80% per annum of the funds value Administration charges Rs 15 per month Risk benefit charges: as per the age Switching charges =0 Surrender charges =before 3years of regular premium have paid, we will make a charges 25% of outstanding premiums Approximate charges 27.80%

Actual recurring expenses for the previous financial year

TABLE-2 Interpretation: In HDFC the one time expenditure is only 2.25% as exit load where is in UNIT LINKED PLAN plan the premium allocation charge 27% charge in 1st and year and same charge in second year and 1% in third year



Recurring expenses is approximately 2.25% in HDFC mutual fund plan and recurring expenses of UNIT LINKED PLAN endowment plan is Fund management charges 0.80% per annum of the funds value Administration charges Rs 15 per month

Risk benefit charges: as per the age Switching charges =0.Surrender charges =before 3years of regular premium have paid, we will make a charges 25% of outstanding premiums




Parameter One time expenses Entry load Exit load Mutual fund (equity plan) Opportunity 1.00% nil UNIT LINKED PLAN plan Of insurance (Easy growth plan) Entry load =2.5% Underwriting charges Age charge as % of S.A 0-35 0.20 36-45 0.30 46-59 0.40 60+ 0.60 buy and sell ( entry exit ) gilt fund 0.10% floting rate fund 0.22% bind fund 0.22 balance fund 0.50 growth fund 0.58 aggressive growth fund 0.70 surrender charges not more then 5% Administration charges 2.5% Fund management charges Gilt fund 1.0% Floting rate fund 1.2% Bond fund 1.2% Balance fund 1.3% Growth fund 1.5% Aggressive growth fund 1.6% Approximate charges 18.00%

Recurring expenses Estimated recurring expenses

1st Rs 100crores =2.50 next Rs 300crors =2.25 next Rs 300 crors =2.00 balance =1.75 Total annual recurring expenses =2.25%

Actual recurring expenses for the previous financial year




Interpretation: in kotak mutual fund one time expenses of entry load is 1% and exit load Is nil and in the KOTAK easy growth UNIT LINKED PLAN plan charges are Entry load=2.5%,

Underwriting charges Age 0-35 36-45 46-59 60+ charge as % of S.A 0.20 0.30 0.40 0.60

buy and sell ( entry exit ) gilt fund 0.10% floating rate fund 0.22% bind fund 0.22 balance fund 0.50 growth fund 0.58 aggressive growth fund 0.70 surrender charges not more then 5% and recurring charges of KOTAK mutual fund approximately Is 2.25% and recurring expenses of easy growth plan UNIT LINKED PLAN plan is Administration charges 2.5% Fund management charges Gilt fund 1.0% Floating rate fund 1.2% Bond fund 1.2% Balance fund 1.3% Growth fund 1.5% Aggressive growth fund 1.6%

so here total annual recurring expenses is 2.25%in M.F where is imn esy growth plan is approximately 18.00%




Mutual fund (equity plan ) Magnum equity fund One time expenses Entry load Exit load <5crors =2.25% >5crores =nil nil UNIT LINKED PLAN plan Of insurance (horizon plan)

Entry fees regular premium st year -15% 2ed &3rd -10% 4th &after -5% top up charge -1% surrender fees year 2:10% year 3: 50% year 4th onwards: 1% withdrawal fee 1st 2withdrawais in policy year are free and after 1% Mortality charges :no monthly bases on fund value % Administration charges : rs 70per month Fund mgt charge *equity fund -1.5% *bond fund -1.0% *money market fund -0.25

Recurring expenses Estimated 1st 100 cores= recurring expenses 2.50% next Rs 300crors =2.25% next Rs 300crors =2.00% balance Rs =1.75% Actual recurring Total annual expenses for the recurring previous financial expenses year =2.08%

Approximate expenses 18.75




Interpretation: In SBI mutual fund exit load is nil and entry load Is 2.25 where is in SBI horizon plan the total one time expenses is Entry fees regular premium allocation charges st year -15% 2ed &3 rd -10% 4th &after -5% top up charge -1% Surrender fees is 2ed year 10% 3rd year 50% and 4th year onwards: 1% Withdrawal fee is 1st 2withdrawais in policy year are free and after 1% And annual recurring charges of SBI mutual fund is 2.5% varies from category to category And total annual expenses of SBI horizon plan is Mortality charges: No monthly bases on fund value %, Administration charges: rs 70per month Fund mgt charge,*equity fund -1.5%,*bond fund -1.0%, and *money market fund -0.25



Section -2: Primary data on Comparative Analysis M.F V/S UNIT LINKED PLAN
(%) Products of Respondents Mutual Fund Unique Linked Insurance Plan total 60 40 100

products (%)

ULIPs, 39, 40%

Mutual Fund, 59, 60% ULIPs

Mutual Fund

Interpretation: The above chart indicates that about 60% of the Respondents in JAMNAGAR prefer to invest in mutual fund and 40% prefer to invest in Unit Linked Plan. This shows that market potential for mutual fund is sound in JAMNAGAR.




No. of Respondents reasons for invest in mutual fund diversification liquidity Tax benefits Professional fund management High returns wide choice of schemes total
resones for invest in mutual funds (%) 20% 14% 20% diversification Tax banifits High returns 18% 15% 13% liquidity Professional fund management wide choice of schemes

Percentage(%) 7 5 8 14 10 16 60 18 15 13 20 14 20 100



Research shows that most of the investors are investing in mutual fund for getting benefits of the professional fund management wide choice of the schemes and Reasons for invest in Unique Linked Insurance Plan Tax benefit wealth creation Long term gain Children's education Retirement plan

No. of Respondents

7 5 8 14 10 16

30 20 10 15 25

60 Total 100 diversification. Others are to gate the other benefits of the mutual fund but they are
comparatively low in size.




Mutual fund schemes Equity Debt Balance Other Total

(%) 35 20 25 20 100

Here in Unique Linked Insurance Plan the majority of the investors are investing to take the tax benefits and retirement plan while others are investing with the interest of wealth creation, long term gain and children education plan.




Mutual fund schemes (%)



25% 20%
Equity Debt Balance Other

Interpretation: As per the results of my survey it sows that more No. of the investors are risk takers because more No. of the investors are wants to invest in equity skims as they wants high growth and 25% of the investors wants their funds balance so that they can get the market benefits as well as safety in their investment. While 20% of the investors wonts to invest their money in debts and same No. of the investors are interested to invest in other schemes.



UNIQUE LINKED INSURANCE PLAN SCHEMES Unique Linked Insurance Plan schemes
Endowment plan Term Insurance plan Pension plan Other plan

(%) 29 17 37 17 100




ULIPs schemes (%)





Endow ment plan

Term Insurance plan

Pension plan

Other plan

Interpretation: As per the results come from the survey under taken for the Unique Linked

Insurance Plan products is most of the investors are investing in pension plan i.e. 37% and another highest no. of the investors are interested in endowment plans. Here for the term insurance plan is also having the considerable investors i.e. 17 and almost same no. of the investors are interested in the other plans of the Unique Linked Insurance Plan product.

CLIENTS CONSIDERATION OF MUTUAL FUND EXPANSES 1. One time expanses. one time expanses entry load exit load

(%) 60 40 100


one time expenses (%)

exit load 40% entry load exit load entry load 60%

Interpretation: As per the results of the survey almost 60% of the investors are consider entry load at the time of their investment and remaining 40% of the investors are considering exit load at the time of their investment in the mutual fund.

2. Recurring expanses recurring expanses fund distribution charges Admin. Charges ad. & printing 26

(%) 39 35 26

recurring expanses (%)

26% 39%


fund distribution charges

Admin. Charges

ad. & printing 26

Interpretation: As per the survey majority of the investors i.e. 39% are consider fund distribution charges and 35% of the investors are consider the admin. Charges while 26% of the investors are interested in the Ad. $ Printing charges

CLIENTS CONSIDERATION OF Unique Linked Insurance Plan EXPANSES 1. One time fees.

one time expenses entry fees exit fees Total

(%) 60 40 100

one time expenses (%)

exit fees 40%

entry fees 60%

entry fees

exit fees

Interpretation: As per the results of my survey it is found out that in Unique Linked Insurance Plan also entry load is taken more into consideration i.e. 60% and then exit load i.e. 40% as one time expanses.



2. Recurring expanses
Recurring expenses Monetary charges Admin. Charges Fund Mgmt. charges Top Up charges Risk benefit charges Switching charges total

(%) 18 20 9 18 15 20 100



15% 18% 9%


Monetary charges Top Up charges

Admin. Charges Risk benifit charges

Fumd Mgmt. charges Sw itching charges

Interpretation: As per the survey most of the clients are considering admin. Charges and the switching charge most i.e. 20% and then they consider monitory charges and top up charges i.e. 18%. And 15% of the customers are considering Risk benefit while




After Sales Service of Bajaj Capital Technical Support Response to Complaints Reply to Complaint Knowledge &Skill of Service Provider Excellent 47 42 45 48 Good 40 29 32 25 Average 12 23 13 20 Poor 1 6 10 7

Technical Document





As per the survey, I come to know that most of the people are satisfied when they have quire and the staff of Bajaj Capital has solved it easily with warm and kindly response. And at Bajaj Capital Product and information availability is Excellent and here customer can easily get commercial and technical document and they are much more satisfied with the visit of sales person to their home. JVIMS-JAMNAGAR 83

60 50 44 40 33 30 21 20 10

47 38 1


Parameters of Bajaj Capital Response to Inquiry Product Information Availability Visit Frequency by sales person to your home Commercial Document Technical Document Excellent 44 47 32 48 49 Good 33 38 25 27 27 Average 21 12 28 23 22 Poor 2 3 15 2 2


As per my research the After Sales service of Bajaj Capital is very good. All people are satisfied with the advice provided by the staff of Bajaj Capital which would very benefit for them for increase in financial term. JVIMS-JAMNAGAR 84

60 50 40 30 20

Following are the findings of the research study on Comparison between mutual fund and Unique Linked Insurance Plan and potentiality of Mutual fund and Unique Linked Insurance Plan: In JAMNAGAR almost 61% of the investors are investing in mutual fund and remaining 39% of investors are investing in Unique Linked Insurance Plan. The main reason for invest in mutual fund are professional fund management and wide choice of schemes. The major reason for investing in Unique Linked Insurance Plan is to get the tax benefit and so almost 30% of the Unique Linked Insurance Plans investors are investing in it. 35% of the investors are investing in mutual fund in equity schemes while in Unique Linked Insurance Plan 37% of the investors are investing in pension plan. As per the result of my survey it is found out that almost 90% of the existing customers of the Bajaj Capital at JAMNAGAR are satisfied by the after sales services of the company.



Limitations of the Study

Following are the limitations of the research study on Comparison between mutual fund and Unique Linked Insurance Plan and potentiality of Mutual fund and Unique Linked Insurance Plan: The project was time bound, so the research was limited. The survey was done in JAMNAGAR city only, so it cannot be generalized. Due to limitation of time and cost constraints a sample size of only 100 respondents was chosen. The data collection method was questionnaire and so the bias of the respondents is present in giving the response. Data Analysis and Interpretation done may not be that strong due to small sample and random sampling method. The findings do not represent the correct picture of Bajaj Capital in Gujarat. The picture may be quite different from what is found in this report in other state of the country.



To conclude the analysis of the survey, it is found that awareness of the Unique Linked Insurance Plan products in JAMNAGAR is very low in. The product may be popular in other parts of the country. Bajaj capital is doing good marketing campaign for the products but still it is require more strong campaign especially for the Unique Linked Insurance Plan product Above all the most interesting conclusion drawn from survey is that the investors of the JAMNAGAR are traditional so they are investing more of in mutual fund so Unique Linked Insurance Plan products are not that popular.



Section -1 comparative analysis ICICI
Recommendations HDFC Recommendations HDFC M.F should emphasis the benefits of lower one time expenses in M.F compared to ULIP endowment plan in the marketing efforts The one time expense of HDFC endowment ULIP plan is too high compared to other company so company should minimized this expense and equalized with other company charges Company should have to minimized its policy surrender charges ICICI M.F should emphasis the benefits of lower one time expenses in M.F compared to life time ULIP plan in the marketing efforts ICICI M.F should also emphasis the lower annual recurring expenses compared to life time annual expenditure in the marketing efforts

KOTAK Recommendation s SBI Recommendation Company should minimize its recurring expenses in mutual fund Company should remove the withdrawal charges from the horizon plan of ULIP or either they should minimized their charges 88 The KOTAK M.F should also emphasis the lower annual recurring expenses compared to easy growth ULIP plan annual expenditure in the marketing efforts The company should advertise for their ULIP products for awareness The one time expenses of ULIP paln is high compared with mutual fund plan so the company should minimize their entry load the company should minimize their total annual recurring charge of easy growth plan ULIP plan


Section -2 research study

There is less awareness of the UNIT LINKED PLAN in JAMNAGAR so more awareness amongst the investor should be increase. The UNIT LINKED PLAN Is related to the Insurance so the return in the UNIT LINKED PLAN is less. In Mutual Fund there is the option of Growth where the return is higher then UNIT LINKED PLAN. In mutual fund the portfolio is maintain which can be changed according to return of the particular company which is not so in the UNIT LINKED PLAN. The company should try to more Awareness of ULIP Product in order to the attract more customer. The company should try to educate customer about the benefit in investment in ULIP Products.

The Company should try to minimize one type expenses in order to attract more investor The Company should also try to reduce recurring charges in order to attract more investor





Research is conducted to get the knowledge about the awareness of the brand image of Bajaj Capital.. As a part of my MBA-III curriculum. So its requested to give genuine information. 1. Have you ever heard about Bajaj Capital? [ ] Yes [ ] No 2. Do you invest in Bajaj Capital? [ ] Yes [ ] No 3. Dose the Bajaj Capital have clear vision? [ ] Yes [ ] No 4. Dose the location of Bajaj Capital convenient to you? [ ] Yes [ ] No 5. Which of the following do you prefer to investing in: [ ] [ ] [ ] Mutual Funds Unique Linked Insurance Plan Both

6. Reasons why you prefer investing in Mutual Funds: [ [ [ [ [ [ ] ] ] ] ] ] Diversification Liquidity Tax Benefit Professional Fund Management High Returns Wide Choice of Schemes



7. Reasons why you prefer investing in Unique Linked Insurance Plan: [ [ [ [ [ [ ] ] ] ] ] ] Insurance Cover Tax Benefit Wealth Creation Long Term Gain Childrens Education Retirement Plan

8. Indicate which scheme of mutual fund investment do you prefer? [ [ [ [ ] ] ] ] Equity Debt Balance Other


9. Indicate which scheme of Unique Linked Insurance Plan do you prefer? [ [ [ [ ] ] ] ] Endowment plan Term Insurance plan Pension plan Other plan________________________________________

10. Indicate which expenses do you take into more consideration while Investing in Mutual Funds? One Time Expenses [ ] Entry load [ ] Exit load Recurring Expenses [ ] Fund distribution charges [ ] Administration charges [ ] Advertising & printing 11. Indicate which expenses do you take into more consideration while investing in Unique Linked Insurance Plan? One Time Expense [ ] Entry fees [ ] Exit fees



Recurring Expense [ ] Mortality charges [ ] Administration charges [ ] Fund management charges [ ] Surrender charges [ ] Top up charges [ ] Risk benefit charges [ ] Switching charges 12. Which of the following two is more transparent and convenient? [ ] [ ] Mutual Funds Unique Linked Insurance Plan

13. Which investment option do you think gives you better returns? [ ] [ ] Mutual Funds Unique Linked Insurance Plan

14. How will you rate the Bajaj Capital on the following Parameters? Excellent Poor Response to inquiry Product Information Availability Visit Frequency by Sales Person to your home. Commercial Documents Technical Documents AFTER SALES SERVICE Technical Support Response to Reply to Complain Knowledge & Skill of service provider 15. Personal details: Name _________________________________________ Age __________ Contact No. ___________ Occupation ________________ Annual Income ______________ [ [ [ [ ] ] ] ] [ [ [ [ ] ] ] ] [ [ [ [ ] ] ] ] [ [ [ [ ] ] ] ] [ [ [ [ [ [ ] ] ] ] ] ] Good [ [ [ [ [ [ ] ] ] ] ] ] Average [ [ [ [ [ [ ] ] ] ] ] ] [ [ [ [ [ [ ] ] ] ] ] ]



List of charts
hart No. 1. 2. Particulars Organization Chart Motto Of The Company Page No. 21 29

List Of Tables
Table No. 1. 2. 3. 4. Particulars ICICI Prudential Mutual Fund HDFC Mutual Fund Kotak Mutual Fund SBI Mutual Fund Page No. 65 66 68 70

List of Graphs
Graph No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Particulars Preference For Investment Reasons for invest in mutual funds. Reasons For Invest In Unique Linked Insurance Plan Mutual Fund Schemes Unique Linked Insurance Plan Schemes Clients Consideration Of Mutual Fund Expanses Recurring Expanses After Sales Service Of Bajaj Capital Parameters Of Bajaj Capital Page No. 72 73 74 75 76 77 78 81 82



Adjusted NAV: The Net Asset Value after adjusting for all changes caused due to dividend declaration, bonus etc. assuming reinvestment of distributions made to the investors at the prevailing NAV. Annual Report: The yearly record of scheme's performance, and is distributed to investors and/or shareholders under SEBI regulations. Applicable NAV: It is the NAV that will be applied for a transaction depending upon the cutoff time specified by the Mutual Fund. All investments or redemptions are processed at that particular NAV. A different NAV holds if received after the cutoff time. Asset Allocation: The distribution of total funds available with the scheme into instruments of various types such as stocks, bonds etc. based on the scheme's investment objective as detailed in the offer document. Asset Management Company: It is the investment manager for the mutual fund. It is a company set up primarily for managing the investment of mutual funds and makes investment decisions in accordance with the scheme objectives, deed of Trust and other provisions of the Investment Management Agreement. For Tata Mutual Fund, Tata Asset Management Private Limited is the Asset Management Company. Benchmark: The investment performance of the scheme needs to be compared in relative terms against some indicator, which is called as the benchmark for the scheme. For example, the performance of an equity fund is benchmarked against the BSE Sensex.



BSE Sensex: An index reflecting the stock prices of 30 companies listed on the Bombay Stock Exchange (BSE) which is taken to be representative of the stock market movement. Capital Gains: The profit realizations on sale of securities and certain other capital assets (including units of mutual funds) are called capital gains. The gains can be classified into long-term, if the investments are held for more than one year, or short-term, otherwise, and are charged at different tax rates. Close ended schemes: Schemes have a pre-specified maturity period and investments in these schemes can be made at the time of the IPO and thereafter at market price through the stock exchange on which the same is listed. The market price is generally at a discount to the NAV depending upon market perception and expectations of the scheme. The Fund may also offer an exit route by offering to repurchase at NAV related prices. Compliance Officer SEBI regulations require that an officer be appointed by the AMC to comply with various regulatory requirements and to redress investor grievances associated with the funds. Current Load: It refers to the load structure applicable currently on any fund. Funds keep revising the load structures from time to time. The ratio of coupon interest to the actual market price, prevailing in the market, of the bond expressed as a percentage: annual interest/ current market value = current yield. Custodian: SEBI mandates that a Custodian be appointed for safekeeping of a fund's securities and other assets. Cutoff time: Investments and redemptions are processed at a particular NAV. This NAV is a function of the cutoff times specified by the fund. For example a fund may JVIMS-JAMNAGAR 96

10.00 am as the cutoff time in the Liquid Fund for previous day NAV. Investment Applications received after the cutoff time of 10.00 am will get same day NAV, while applications received before 10 am will get previous day NAV, assuming that there are no holidays/Sundays involved in between. Debt Fund: Funds that invest predominantly in fixed income bearing instruments such as corporate debentures, PSU bonds, gilts, treasury bills, certificates of deposit and commercial papers. These funds are the least risky and are generally preferred by risk-averse investors. However they are prone to interest rate risk. Dividend Plan: Generally a scheme has two plans, Growth Plan and Dividend plan. In the latter earnings of the scheme are declared as dividends, as and when there is a distributable surplus available with the scheme as per the Trustees. Dividend Payout: Under the Dividend plan of a scheme there are two options available to the investor, viz. Dividend Payout option and Dividend Reinvestment option. Under the Dividend Payout option, the dividend declared is also actually distributed i.e. given to the investor. Dividend Reinvestment: Under the Dividend plan of a scheme there are two options available to the investor, viz. Dividend Payout option and Dividend Reinvestment option. Under the Dividend Reinvestment option, the dividend declared is not distributed i.e. given to the investor. but reinvested in the scheme itself. Dividend yield: It refers to the dividend earned per unit in Rupees of a scheme at the prevailing NAV.



Entry Load: It is the load charged by the fund when one invests into the fund. It increases the price of the units to more than the NAV and is expressed as a percentage of NAV. For example a 1 % entry load will increase the NAV from Rs 11 to Rs 11.11 and therefore the number of units allotted will be lesser to that extent. Expense Ratio: The Expenses of a scheme include management fees and all the fees associated with the scheme's daily operations. Expense Ratio refers to the annual percentage of fund's assets that is paid out in expenses and can effect the performance of the scheme. Exit Load: It is the load charged by the fund when one redeems the units from the fund. It reduces the price of the units to less than the NAV and is expressed as a percentage of NAV.

Face Value: The original issue price of one unit of a scheme, generally Rs 10. Fund Manager: H/She is the person who makes all the investment decisions for deployment of the funds of a scheme. Gilts/Government Securities: Securities created and issued by the Central Government and/or State Government, and may include securities unconditionally guaranteed by the Government. The coupon on these securities is determined by an auction process. Gilt Funds: Gilt Funds are those schemes, which as per their offer document can invest only in government securities of different maturities. They offer lower returns as the credit risk is virtually absent and there are no chances of government defaulting on its payment obligations. This effectively reduces the yield on them. They are still subject to the interest rate risk. JVIMS-JAMNAGAR 98

Growth Plan: The Growth plan of a scheme retains/ploughs back the earnings, instead of declaring dividends of the scheme. The returns from the investor's point of view are accumulated within the scheme. Growth Plan is different from the Dividend Reinvestment Option as in the latter dividends are declared but not distributed, while in the Growth Plan the dividends are not declared. There are differing implications for tax computation. Inflation: The rise in prices of goods and services over a period of time. Inflation Risk: The probability of the value of an asset being eroded on account of inflation. Liquid Funds: Funds, as per their offer documents, investing only in short-term money market instruments including treasury bills, commercial paper and certificates of deposit. The objective is to provide liquidity and preserve the capital. Liquidity: From the Fund management point of view, the cash and cash equivalent assets available with a fund to meet expenses and immediate redemption requirements of the investors. It refers to the ability to buy or sell an asset quickly or the ability to convert to cash quickly. From the Investor point of view, it reflects the ease and speed with which an investor can convert his/her unit holdings into cash. Lock-in period: The cooling period after investment in fresh units during which the investor cannot redeem the units.



Management Fee: The fees charged to a scheme for investment management of the funds under the scheme, usually expressed as percentage of assets, and are subject to limits prescribed by SEBI. Market Risk: It refers to the risk posed by the market in itself i.e. the risk that the price of a security will rise or fall due to changing economic, political, or market conditions. Money Market: It refers to a market for very short-term securities less than a year, such as Treasury Bills and Call Money make up the bulk of trading in the money markets. Mutual Funds: An investment company/trust that pools money from unit holders and invests that money into a variety of securities, including stocks, bonds, and money-market instruments as defined in the offer document of the specific mutual fund. Net Asset Value: The value of fund's portfolio at market value less current liabilities and other accrued expenses divided by the number of units outstanding. Net asset value is normally computed daily. No Load: It refers to the fund that does not charge any load for buying or selling its units, i.e. the investor can transact at the NAV. Non-Performing Assets: Assets that do not provide returns are classified as NPAs as per the provisions of SEBI regulations. Offer Document: It is the official document issued by mutual funds prior to the launch of a fund describing the characteristics of the proposed scheme/fund to all its prospective investors. It contains information required by SEBI pertaining to issues such as investment objective and policies, services, and fees.



Open Ended Fund/Scheme: It is a type of a scheme/fund where purchase or sale of units is offered on a continued basis at NAV related prices. Redemption: An investor wishing to withdraw his/her investment from a scheme/fund gives a redemption transaction. The investor is paid a NAV linked price. Risk Adjusted Returns: For the purpose of comparing returns across schemes involving varying levels of risk, the returns are adjusted for the level of risk before comparison. Such returns (reduced for the level of risk involved) are called riskadjusted returns. Sale Price: The price at which a fund offers to sell one unit of its scheme to investors. This NAV is grossed up with the entry load applicable, if any. Sponsors: A sponsor is the person who, acting alone or in combination with another body or corporate, establishes a mutual fund and applies to SEBI for its registration. As per SEBI regulations, the sponsor has to contribute a minimum of 40% of the net worth of the AMC. Systematic Investment Plan (SIP): It is a plan offered to facilitate systematic investments at regular intervals so that an investor can give post-dated cheques to the mutual fund to allot fresh units at specified intervals (usually monthly or quarterly). On the specified dates, the cheques are realized by the mutual fund and additional units at the prevailing NAV are allotted to the investor. SIP helps investors to average the cost of acquisition. Systematic Withdrawal Plan (SWP): It is the opposite of SIP and facilitates regular withdrawals. This helps investors in meeting their regular financial needs.



Total Return: Return on investment, calculated after taking into account capital appreciation, dividends or interest, and individual tax considerations adjusted for present value and expressed on an annualized basis. Trustee: The Trustees comprise the Trust and having an overall supervisory authority over the AMC. They ensure that the AMC follow the trust deed, the SEBI regulations and the offer document and the assets of the funds are held safely. Yield Curve: The curve gives the relationship between yields on a group of fixedincome securities with varying maturities viz. treasury bills, notes, and bonds. The curve typically slopes upward since longer maturities normally have higher yields, although it can be flat or even inverted. Yield to Maturity: Used to determine the rate of return an investor will receive if a long-term, interest-bearing investment, such as a bond is held to its maturity date. It takes into account purchase price, redemption value, time to maturity, coupon yield and the time between interest payments.




For research study Luck David J. & Rubin Ronalds, Marketing Research, 7th Edition (Prentice Hall of India Pvt. Ltd.) Beri G.C Marketing Research 3rd Edition Tata Mc. Graw Hill Publishing Co. Ltd. Sekhran Uma - Research Methods for Business - 4th Edition John Wiley & Sons (Asia) Pvt. Limited

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5 Fact sheet of Bajaj Capital Ltd. Pvt. Ltd. 6 Fact sheet of other AMC. 7 Pamphlet and material of mutual funds