comprative study or equity scheme in the mutual fund

8/13/2019 Comprative Study or Equity Scheme in the Mutual Fund

1/68


2/68

COMPARITIVE STUDY OR EQUITY SCHEMES IN THE MUTUAL FUND INDUSTRY

EXECUTIVE SUMMARY

)fter privati$ation and li erali$ation in 1**1+private sector is growing very fast

across wide spectrum of Indian economy. ) ma"or part of such li erali$ation process is

finance sector.

hat is also applica le to Insurance Industry. 'arge num er of multinational

companies in colla oration with the Indian companies is competing with the strong 'IC.

)t the same time an- rates are going down. #o investors are going for

alternatives. hey are investing in mar-et for good returns.

his report titled Comparison study of unit lin-ed policies and its mar-et research

contains detail study of unit4lin-ed policies and comparison unit lin-ed schemes of

different companies and also their mar-et potential in angalore city.

he main o "ect ehind ta-ing this pro"ect is to find outstanding terms and

conditions of different companies who issue unit lin-ed policies and mar-et potential for

unit lin-ed policies.

)t the same time we are interested to -now

1. hether people are aware a out unit lin-ed policies or not6

2. hat factor they are consider while purchasing unit lin-ed policy6

3. hat is their e pectation from unit lin-ed policy6

/. ow much they want to invest in 'ife Insurance6

5. In which type of fund they prefer to invest.6

ased on this an appropriate %uestionnaire was prepared. &ata was collected

through mar-et survey . he data is analy$ed using code sheet+ percentages+ averages+

sums and weightages .

BABASAB PATIL PROJECT REPORT ON MARKETING Page 2


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Findings

1. *08 of the people -now a out life insurance and 198 -now a out unit lin-ed

policy

2. Responded people ran-ed 'IC as first+ ICICI as second and )llian$ a"a" as third

3. :ost people want to invest in 'ife insurance in the range of Rs 3,,,,, to

Rs 5,,,,,

/. he Responded people mostly want to invest in alanced fund.

) ove study shows that awareness of )llian$ a"a" is very low.ut there is a potential mar-et for unit4lin-ed policies. #o )' ; should come up with

some salient features to tap the mar-et. hey should come up with some special offers

li-e giving onus or fi ing some minimum guarantee amount.



4/68


BACKGROUND

BABASAB PATIL PROJECT REPORT ON MARKETING Page /


5/68


AN INTRODUCTION:

he insurance industry in India is evolving and assuming different

proportions since it was privati$ed. here was a time when only traditional insurance

products used to dominate the arena+ ut with innovation coming into play+ unit4

lin-ed


6/68


HOW THE UNIT LINKED PLAN WORKS?

nit lin-ed plans com ines the protection of life insurance and

enefits of mutual fund . he main reason for increasing interest towards unit lin-ed plans

is that they allow you to earn more return on your investment in this declining interest

scenario+ and at the same time offer financial protection to your family in unfortunate

event of your death. hey also allow you the fle i ility of withdrawing or surrendering

your unit wholly or partially to meet any contingency li-e your children=s education

marriage+ etc.

nit lin-ed plans come in the form of units where the premium

paid y you is used to uy units and an investment fund is allotted to you. :ost of the

companies offer two or more options to you with regard to the fund. he choice of the

fund allows you to determine as to how much premium paid y you should e investedand in which financial instrument. he performance of the fund depends upon the current

value of units in the mar-et.

(or e.g. if current value of unit is Rs 1,


7/68


)ccording to the IR&)+ a company offering unit lin-ed plans must

give the investor an option to choose among de t+ alanced and e%uity funds.

If you opt for a unit4lin-ed endowment policy+ you can choose to

invest your premiums in de t+ alanced or e%uity funds. If you choose a de t fund+ the

ma"ority of your premiums will get invested in de t securities li-e gilts and onds.

If you choose e%uity+ then a ma"or portion of your premiums will

e invested in the e%uity mar-et. he type of fund you choose would depend on your ris-

profile and your investment need.

In case of death during the premium paying term or the term of the

policy+ the sum assured+ or value of policy fund+ whichever is higher+ is paid to the

eneficiaries.

In case of survival up to maturity+ the value of the fund is paid out.

herefore+ the ris- here is transferred to the policyholder and nothing is guaranteed. #o+ if

the fund value falls elow the amount invested+ the policyholder will receive a lower

amount.

a-ing a closer loo- at charges and feesone comes to -nows that+

there is an initial administrative charge deducted every month from units. his could e

very high+ around 158 per annum in the first year+ around 78 p a in the second and

around 2438 p a thereafter.

#uppose you uy a policy wherein the annual premium wor-s out

to Rs 1,+,,,+ in the first year+ Rs 1+5,, would e deducted towards administrative

charges+ Rs 7,, in the second year and around Rs 3,, from the third year. hese rates

vary from company to company ut are more or less in this range.



8/68


here is an investment management charge too+ which would varyaccording to the fund selected> for instance+ an e%uity fund would attract a higher

investment management fee of around 18 p a compared with a de t fund that might

attract a fee of ,.258.

#o continuing with the same e ample+ a sum of Rs 1,, would e

deducted from the annual premium if an e%uity fund is opted for. ?e t+ companies charge

an annual administration charge. In case of some companies this charge is a flat rate+ say+

Rs 2, per month. In the case of others+ this charge is again a percentage of net assets for

each fund.

(inally+ there is a deduction for ris- cover. his goes towards

contri ution to the sum assured or the life insurance cover. It is ased on mortality rates

as calculated y actuaries. (or comprehensively summarising our e ample+ we will

assume the age of the male policyholder to e 3, years and sum assured Rs 1+,,+,,,.

!f a total premium of Rs 1,+,,, paid in the first year+ Rs 1+5,, isdeducted towards initial administration fees+ Rs 1,, towards investment management

fees @assuming the fund opted for is e%uityA and Rs 2/, towards annual administration

fees.

hat leaves a alance of Rs 9+10, in the first year. !ut of this+ Rs

10* would e deducted towards ris- cover. ence+ finally Rs 7+**1 would e invested in

the fund. In the second year+ the figure would stand at Rs 9+7*1 and third year onwards+

around Rs *+1*1 for the term of the policy. #o+ every time you ma-e your premium

payment+ only a part of it is actually invested in the fund of your choice.



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Com in!"ion o# m$"$!% #$nd !nd ins$&!n'( 'o)(& :

nit4lin-ed plans are a com ination of an investment fund and an

insurance policy. ) ma"or part of the premium amount received on such policies is

invested in the stoc- mar-et y the insurer in select funds depending on the ris- level

chosen y the customer. :ind you+ this is after deducting administration charges and

management e penses that may vary from one fund to the other.

C*oi'( o# F$nds:

he customer has the option of choosing from de t+ alance and e%uity funds. If the

individual chooses a de t fund+ a ma"or part of his premia is invested in de t securities

li-e gilts and onds. ut if it is e%uity+ a ma"or portion goes towards investments in the

stoc- mar-et. #o depending on the ris- profile the individual may choose his investment

option.

S$&)i)!% +(n(#i"s:

)s regards survival enefits the fund value as on that date is paid to the individual.

D(!"* +(n(#i"s:

In case of death the individual is paid higher of the sum assured or the fund value

standing to his account.

F$nd V!%$(:

he fund value is the value of your investment as on a given date. his is influenced y

the ups and downs in the sense .

#o (und Balue nit Price ?um er of nits

BABASAB PATIL PROJECT REPORT ON MARKETING Page *


10/68


S,i"'*ing (",((n F$nds:

he advantage one gets in case of a unit lin-ed fund is that the wor-ing is similar to a

mutual fund. !ne can ship out of a fund if he feels its performance is not up to the mar-.

Companies allow certain num er of free switches in a year. (or any more switches one

may have to pay.

Ris- E%(m(n":

!n the face of it investment in unit4lin-ed plans are not entirely safe. )n

element of ris- is definitely in the hands of the individual. )n individual choosing to par-

his funds in e%uities stands to gain or lose depending on the ull run in the stoc- mar-et.

hen the mar-et is uoyant he stands to gain handsomely ut on the other hand he may

lose heavily when it tan-s out.

nit4lin-ed insurance plans are all of a sudden much tal-ed a out+

pu lici$ed and sold. hile these are not a recent phenomenon+ since a num er of

insurance companies already had these products as a part of their portfolio+ of late these

plans have seen sudden fren$y.

It is perhaps the ull phase or the lure of mar-et4lin-ed returns that

insurance companies have een shouting hoarse a out that is responsi le for these

products outselling others.

hile this is not to dissuade from purchasing unit lin-ed covers it would

e once own interest to ta-e a pee- at the Dmar-et lin-ed returns= you can e pect. )nd if

you thin- that the entire premium you pay is invested in avenues chosen y you to

ma imi$e returns you could e wrong.

BABASAB PATIL PROJECT REPORT ON MARKETING Page 1,


11/68


E./(ns(s d$&ing "*( #i&s" 0(!&:

he insurance company towards various charges reducing the investa le

amount considera ly deducts a su stantial amount from your premium income. In the

first year )llian$ a"a" through its nit Eain #P Plus claims to allocate 1,, percent of the

single premium you invest ut cancels units on a monthly asis towards various charges

from your fund.

)ccordingly Fota- #afe Investment Plan allocates 90 percent and

'ife ime of ICICI Pru 'ife allocates 9, percent for amounts less than Rs 5,+,,, and 92

percent for those a ove Rs 5,+,,, towards investments.

Adminis"&!"ion (./(ns(s:

he fund e pense is the highest in the first year. ICICI Pru 'ife charges

administration e penses of 2, percent of the premium for amounts elow Rs 5,+,,, and

19 percent for amounts over Rs 5,+,,, in the first year while it is 7 percent for amounts

upto Rs 2,+,,, in case of Fota- #afe Investment plan.

)gain there are annual administrative charges that are as high as 1.25

percent per annum of net assets on 'ife 'in- of ICICI Pru 'ife and on nit Eain #P Plus

of )llian$ a"a" 'ife Insurance.

Mo&"!%i"0 '*!&g(s G

hile the annual administrative charges stand at 1.25 percent of net assets for ICICI Pru

'ife and )llian$ a"a" 'ife Insurance the differences in mortality charges is %uite a it.

ICICI Pru 'ife charges 1./9 per thousand of sum assured at age 3, while )llian$ a"a"

charges 1.2* at age 31.



12/68


S,i"'*ing:

?ow what if you plan to switch from one fund to the other. ICICI Pru 'ife

offers only one free switch every year and charges a switching fee of 1 percent for e tra

switches. In contrast )llian$ a"a" offers three switches free with su se%uent switches

charged at the rate of 18 of switch amount or Rs 1,, which ever is higher while with

!: Fota-=s #afe Investment plan you can switch any num er of times at no e tra cost.

esides there are fund management charges that varies depending on the

type of fund you choose to par- your funds. !: Fota- charges ,.0 percent if you choose

to invest in money mar-et funds+ on gilt funds it is 1 percent+ on alanced funds it is 1.3

percent and on growth funds it is 1.5 percent.

T&!ns!'"ion 'os"s :

)lso )llian$ a"a" charges transaction costs at ,.5 percent ut not

e ceeding ,.7 percent of the e%uity investment while it is ,.1 percent not e ceeding ,.2

percent of the de t investments. :oreover+ there e ist underwriting charges on the asis

of the age of the individual.

Fnow that when you uy unit4lin-ed insurance products+ a ma"or part of

the ris- is transferred to you from the insurance company. nit lin-ed ris- products may

not e a good investment option when ta-en into account the high costs and the ris-

associated with volatile mar-ets.

hese products will entail regular monitoring since they are mar-et lin-ed

and may perhaps e a good et when the mar-et is at a pea- ut if the mar-et ottoms out

you may lose heavily. #o -now that you are playing with your ris- cover.



13/68


Uni"1%in-(d )s2 "&!di"ion!% ins$&!n'( /&od$'"s2

hile in a unit4lin-ed insurance product part of the premium paid

y the policyholder goes towards administrative and mortality charges @that provides life

coverA and the alance into an investment account+ in a traditional policy @with or without

profit policyA+ the premiums are put in a common fund+ part of which is invested and part

goes into paying for the ris- cover.

owever+ the entire profit from investment is not declared as onus in a traditional policy. #ome is held ac- y the insurance company to uild

reserves to pay end onus and other returns.

)lso+ there is a chance of using the money to cross4su sidise other

products i.e. paying more returns towards single premium products. he performance of

the investi le portion of premium in a unit4lin-ed scheme is monitored in the form of

mutual fund units.

nit4lin-ed insurance products allow policyholders to define their

underlying investment with choices varying from a conservative to an aggressive option.

In effect+ a customer can create his


14/68


after completing one policy year ta-ing advantage of mar-et movements to plan

investments and earn returns+ giving him complete control of his funds.

hus+ in a scenario when the e%uity mar-et is not performing well+

a policyholder with high e posure to e%uities can switch to the option+ which has a high

proportion of fi ed income instruments.

) ove all+ as in the case of other insurance products+ the premiums

are ta ing deducti le and the enefits i.e. the maturity enefit+ withdrawal+ surrender and

death enefits are all ta 4free.

Mod( o# /&(mi$m /!0m(n":

Paying single premium or regular premium in the form of yearly


15/68


A%%i!n3 +!4!4 Li#( Ins$&!n'( Com/!n0 Limi"(d

)llian$ a"a" 'ife Insurance Co. 'td. is a "oint venture etweentwo leading conglomerates4 )llian$ )E+ one of the worldHs largest insurance companies+

and a"a" )uto+ one of the iggest 2 and 3 wheeler manufacturers in the world.

)llian$ )E with over 11, years of e perience in over 7, countries

and a"a" )uto+ trusted for over 55 years in the Indian mar-et+ together are committed to

offering you financial solutions that provide all the security needed for once family and

oneself

)llian$ a"a" 'ife Insurance

Is the fastest growing private life

Insurance company in India

Currently has over Rs 3+,,+,,, p.a. satisfied customers

Is ac-ed y a networ- of 09 Customer Care Centers spanning 55 locations

across the country

!ne of IndiaHs leading private life insurance companies



16/68


COMPANY PROFILE

A%%i!n3 5&o$/

A%%i!n3 5&o$/ is on( o# "*( ,o&%d6s %(!ding ins$&(&s !nd #in!n'i!% s(&)i'(s /&o)id(&s2

(ounded in 19*, in erlin+ )llian$ is now present in over 7, countries with almost

17/+,,, employees. )t the top of the international group is the holding company+ )llian$

)E+ with its head office in :unich.

)llian$ Eroup provides its more than 0, million customers worldwide with a

comprehensive range of services in the areas of

Property and Casualty Insurance+

'ife and ealth Insurance+

)sset :anagement and an-ing.

ALLIAN7 A51 A 5LO+AL FINANCIAL POWERHOUSE

orldwide 2nd y Eross ritten Premiums 4 Rs./+ /0+05/ cr.

3rd largest )ssets nder :anagement @) :A largest amongst Insurance cos. 4

) : of Rs.51+ *0+*5* cr.

12th largest corporation in the world

/*.9 8 of glo al usiness from 'ife Insurance Jsta lished in 19*,+ 11, yrs of Insurance e pertise

7, countries+ 173+75, employees worldwide

+!4!4 5&o$/



17/68


+!4!4 A$"o L"d8 "*( #%!gs*i/ 'om/!n0 o# "*( Rs2 9 '&o&( +!4!4 g&o$/ is "*(

%!&g(s" m!n$#!'"$&(& o# ",o1,*((%(&s !nd "*&((1,*((%(&s in Indi! !nd on( o# "*( %!&g(s" in "*( ,o&%d2

) household name in India+ a"a" )uto has a strong rand image rand

loyalty synonymous with %uality customer focus.

A STRON5 INDIAN +RAND1 HAMARA +A;A;

!ne of the largest 2 3 wheeler manufacturer in the world

21 millionK vehicles on the roads across the glo e

:anaging funds of over Rs /,,, cr.

a"a" )uto finance one of the largest auto finance cos. in India

Rs. /+7// Cr. urnover Profits of 539 Cr. in 2,,24,3

It has "oined hands with )llian$ to provide the Indian consumers with a distinct.

!ption in terms of life insurance products

)s a promoter of )llian$ a"a" 'ife Insurance Co. 'td.+ a"a" )uto has the

following to offer 4 (inancial strength and sta ility to support the Insurance

usiness

) strong rand4e%uity.

) good mar-et reputation as a world4class organi$ation.

)n e tensive distri ution networ-.



18/68


)de%uate e perience of running a large organi$ation.

S*!&(d Vision

A *o$s(*o%d n!m( in Indi! "(!ms $/ ,i"* ! g%o !% 'ong%om(&!"(222

a"a" )uto 'td+ the flagship company of the Rs. 9,,, crore a"a"

group is the largest manufacturer of two4wheelers and three4wheelers in India and one of

the largest in the world.

) household name in India+ a"a" )uto has a strong rand image

rand loyalty synonymous with %uality customer focus. ith over 15+,,,

employees+ the company is a Rs. /,,, crore auto giant+ is the largest 2


19/68


J perience in the financial services industry through a"a" )uto (inance 'td

+OARD OF DIRECTORS OF ALLIAN7 +A;A; ARE

1. Rahul a"a"

2. ?ira" a"a"

3. #an"ivnayan a"a"

/. Ran"it Eupta

5. Eovind Prasad 'addha

0. ;.#hridhar

7. a"a" )uto 'imited

9. &r emer Ledelius

*. ein$ &oll erg

1,. &on ?guyen

11. )lan ilson

BABASAB PATIL PROJECT REPORT ON MARKETING Page 1*


20/68


)llian$ a"a" rings several innovative products+ the details of which as followes

ALLIAN7 +A;A;


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22/68



COMPARISON STATEMENTP!&"i'$%!&s A%%i!n3 +!4!4 +i&%! s$n %i#( ICICI LIC1A ypes of

policy

Issued

aA nit Eain

A nit Eain #P

aA (le i #ave Plus

Jndowment Plan

A (le i cash flow

money ac- Plan

cA (le i 'ife 'ine

Plan

aA 'ifetime

A 'ife lin-

aA 'ife ime

A 'ife ime #P

2A

Jligi ility

(rom 1year to 0,

years

(rom 3, days to

05 years

(rom ,year to

0, years

(rom 12 years to

55 years3A:inimum

premium

amount

@ in RsA

Rs 1,+,,, regular

Rs 25+,,, single

premium

5,+,,, for minor

75+,,, for adults

19+,,, p.a. or

*+,,, for half

yearly and 1+5,,

for monthly.

5+,,,regular

2,+,,, single

/A erm of

the Plan

&eath or low alance

whichever is first

)s per policy term

5+1,+15+2,+25or3,

or as per maturity

age 15+2,+25+3,or

35years for minor 0,+05+7,+9, for

adult

)t the age of

1,,

1, years

5A Premium

payment

fre%uency

Mearly+ alf yearly+

Nuarterly and #ingle

premium

O:onthly with salary

deduction scheme.Q

Mearly+ alf

yearly+

Nuarterly and

#ingle premium

O:onthly with

salary deduction

scheme.Q

Mearly+ alf

yearly+ and

:onthly

Mearly+ alf

yearly+

Nuarterly and

#ingle premium


23/68


24/68


BABASAB PATIL PROJECT REPORT ON MARKETING Page 2/

*A:inimum

and

ma imum

#um

)ssured

(or #ingle Premium

:in 1.,1 time the #P

:a M time the #P

here M as per following ta le

)

g

e

,4

3,

314

35

304

/,

/14

/5

/04

0,

M /5 /, 25 15 5

(or Regular Premium:in 5 time )P

:a M time the )P

here M as per following ta le

)

g

e

,4

3

,

31

4

35

304

/,

/14

/5

/04

55

50

0,

M 1

2

5

1,

5

75 55 3, 2,

)mount

chosen y

the customer

(or #ingle

Prem

ium

:in Rs

2,+,,,

:a Rs

1,+,,+,,,

(or Regular

Prem

ium

:in Rs

5,+,,,

:a Rs

1,+,,+,,,

1,A Cash

withdrawal

option

Mou may withdraw money any

time after D3= full years

Mou may

withdraw

money anytime after

D/=full years

Mou may

withdraw

money any timeafter D3= full

years

)fter D3=

years

the polic

y

hold

er

can

withdraw

ma

of

5,8.11AInvestm

ent option

J%uity (und

alanced fund

&e t fund

Cash fund

Protector

uilder

Jnhancer

:a imiser

Protector

alancer

#ecured

fund

alance

d fund

Ris-

fund


25/68


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In "*( %ong &$n s!0 = 0(!&s8 "*( non !%%o'!"ion ,i%% (

he main determinant of how policy operates is allocation of fund

and growth rate of the company. he growth rates are availa le in the

newspaper.


P!&"i'$%!&s A%%!n3 +!4!4 +i&%! S$n%i#( ICICI Om Ko"!- Mear 1 7,8 058 2,8 108Mear 2 28 7.58 7.58 3.58Mear3 18 58 /8 3.58Mear/ 58 /8 3.58Mear5 58 /8 3.58Mear0 58 /8 3.58Mear7 58 /8 3.58Mear9 58 /8 3.58Mear* 58 /8 3.58Mear1, 58 /8 3.58

?on allocation

charge@cumulativeA 738 112.58 5*.5 /7.5

P!&"i'$%!&s A%%!n3

+!4!4

+i&%! S$n%i#( ICICI Om Ko"!-

?on allocation

Charges@cumulativeA

738 102.58 **.58 92.58

)verage non

allocation per year

will e

3.058 9.1258 58 /.1258


27/68


owever+ some insurers do guarantee a part of the return. irla+ for

instance+ guarantees a minimum return of 08 in case of Protector option+ /.58 in uilder

and 38 in Jnhancer. irla+ as of ?ovem er 2,,3 has declared+ since inception+ a return

of 13.55 8 on Protector+ 19.238 on uilder and 25.018 on Jnhancer.



28/68


RESEARCH

METHODOLOGY

RESEARCH METHODOLO5Y

PRO+LEM DEFINITION



29/68


In the mar-et+ an- interest rates are coming down and peoples

prefer other investment avenues li-e mutual funds. he main focus of this pro"ect is to

-now a out unit4lin-ed policy @ com ination of mutual fund and life coverageA+ how this

plan wor-s in the mar-et and how people consider its attri utes and factors.

O+;ECTIVE

he main o "ective of the research is to find potential mar-et for

the unit lin-ed plans in angalore city.

SU+ O+;ECTIVES

1. o -now potential mar-et for life insurance.

2. o -now awareness of different insurance companies.

3. o -now which attri utes people consider most important.

/. o -now what factor people consider while purchasing unit lin-ed policy.

5. o -now the investment criteria

0. o -now in which range people want to invest.

Feeping a ove o "ective in mind a %uestionnaire was designed and

field survey conducted in angalore city.

SAMPLE PROFILE

usinessmen+ Jmployees and other are population for this pro"ect.

Jfforts were made to get the respondents with income of Rs 3+,,+,,, more. #ampling

units are ta-en from the angalore city.



30/68


SAMPLE SI7E

#ample si$e was 1,, in angalore city

SAMPLIN5 TECHNIQUE

#amples were chosen from different areas of angalore i.e. ;ayanagar+ : E

Road+ Corporation area+ Jlectronics city and tried to maintain 1G1G1 ratio of usinessman+

employees and other among the respondents

DATACOLLECTIONPROCEDURE

&ata collection for unit lin-ed policy

#econdary data collected from following source

1. 'iterature from )llian$ a"a" office

2. )rticles from Jconomictimes

3. )rticle from Insurance Cover

Primary data was collected through field survey y framing the

%uestionnaire

DATA ANALYSIS TECHNIQUE

he data collected was consolidated+ the sum average was

calculated. Barious charts were prepared which helped to analy$e the data etter .&ata

analysis involved converting of recorded o servation in to descriptive statement.



31/68


LIMITATION OF THE STUDY

1. he findings are relevant only to angalore city + however a generali$ed view can

e applica le to cities with similar characteristics.

2. #ince the sampling techni%ue was random+ the finding might not give an accurate

picture.

3. #ince the time and cost were the a constraints+ result may not e accurate+ as

surveyor could not survey the entire customer and potential investors.

/. #ome of the customers could not give an accurate response to some of the

%uestions

SCOPE OF THE STUDY

T*( /&o4('" in'%$d(s

1. #tudy of unit lin-ed policy.



32/68


2. he eligi ility criteria of the applicant

3. rief idea a out the company called )llian$ a"a" life insurance company

limited.

/. Comparison study of different unit in-ed policies of different companies

5. erms and conditions of different companies unit lin-ed policies

0. &ifferent types of policies issued y )llian$ a"a"



33/68


FINDINGS

Findings:

1A ave you ought any Insurance policy< -now a out unit lin-ed policy6



34/68


Awareness of life insurance

96%

4%

know insurancepolicy

dont knowinsurance policy

Awareness of unitlinked policy

18%

82%

know unit linkedpolicy

dont know unitlinked policy

2A Ran- the Insurance companies you are aware of6

Respondents ran-ed life insurance companies as elow



35/68


Ranking of Insurance Co panies!ased on co posite score

0

5

10

15

20

25

30

35

L I C I C I C I

l l i a n

! " a # a

#

$ a t a

I %

" i r l a

& u n l i '

e (

i ( a

"a e of co panies

c o p o s

i t e s c o r e

he ran-ing is

1. 'ife Insurance Corporation

2. ICICI3. )llian$ a"a" 'ife Insurance Company 'imited

/. ata )IE 'ife Insurance Company 'imited

5. )viva 'ife Insurance Company 'imited

3A ave you ought any unit lin-ed policy6



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!ut of 1,, samples only 2 people ought unit lin-ed policy.

#ercentage of respondents w$o

$a%e !oug$t unit linked policy

0

20

40

60

80

100

120

"ou)*t unit linkedpolicy

+oesnt ,ou)*tunitlinked policy

/A )re you interested in uying unit lin-ed policy6



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#ercentage of respondents w$o areintereste to !uy unit linked policy

0102030405060-08090

100

Interested to ,uyunit linked policy

.ot interested to,uy unit linked

policy

5ARan- the elow attri utes do you consider while purchasing6



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Consideration of attri!utes

Creation o'estate

16%

Li'eco(era)e

16%

/ode o'

payin)pre iu

14%

it*draw al,ene'its

15%

/aturity,ene'its

15%

&a(in)co ponent

15%

C*ar)esle(ied

9%



39/68


0A Ran- the factors do you consider while purchasing 'ife Insurance< nit 'in-ed

policy6

Consideration of factors w$ile !uying&ife Insurance

"rand i a)e14%

isk ' actor 19%

Inco e19%

)e18%

elati(es 'riends

12%

/arketcondition

18%

7A ow much do you want to invest6



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Respondent's interest of in%est ent inpercentage(In Rs p)a*

,o(e 1Lak*20%

1Lak* 2 Lak*s22%

2 Lak*s 3Lak*s16%

3 Lak*s 5Lak*s

28%

,o(e 5 Lak*s14%

9A In which fund do you prefer to invest@ran- them accordinglyA

BABASAB PATIL PROJECT REPORT ON MARKETING Page /,


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Co posite ranking of %arious fund

232 222246

280

0

50

100

150

200

250

300

uity 'und +e,t 'und Cas* 'und "alance'und

BABASAB PATIL PROJECT REPORT ON MARKETING Page /1


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ANALYSIS

ANALYSISHASBEENMADEIN THREEPARTS

Respondents in general

Respondents whose income is more than

Rs Rs 3,00,000 p.a.

Respondents who knows about Unit Linked Policy



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RESPONDENTS IN GENERAL

INCOME OF THE RESPONDENTS

(our types of income group has een responded+ accordingly respective percentage has

een given.

1. elow Rs 1+5,+,,, 298

2. Rs 1+5,+,,,4Rs 3+,,+,,, p.a. 2,8

3. Rs Rs 3+,,+,,, p.a.45+,,+,,, 3,8

/. ) ove Rs 5+,,+,,, 228


Inco e of respondents

28%

20%30%

22%"elow 150000

150000 300000

300000 500000

,o(e500000


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AWARENESS OF LIFE INSURANCE

Awareness of &ife Insurance

0

20

40

60

80

100

120

7now insurance policy +ont know insurancepolicy

)wareness of the life insurance is out of the 1,, samples 2 peoplesdon=t -now a out the life insurance.

BABASAB PATIL PROJECT REPORT ON MARKETING Page //


45/68


AWARENESS OF UNITLINKED POLICY

Awareness of unitlinked policy

22%

-8%

know unit linkedpolicy

dont know unitlinked policy

!ut of *9 people 228 -now a out the unit lin-ed policy.

RANKIN5 OF LIFE INSURANCE COMPANIES



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Respondents ran-ed life insurance companies as elow

Ranking of Insurance Co panies!ased on co posite score

0

5

10

15

20

25

30

35

L I C I C I C

I

l l i a n

! " a # a

#

$ a t a

I %

" i r l a

& u n l i ' e

( i ( a

"a e of co panies

c o p o s

i t e s c o r

he ran-ing is

1. 'ife Insurance Corporation

2. ICICI

3. )llian$ a"a" 'ife Insurance Company 'imited

/. ata )IE 'ife Insurance Company 'imited

5. )viva 'ife Insurance Company 'imited

Respondents ran-ed )llian$ a"a" as 3 rd among 0 life insurance companies. hat means

awareness is less a out the company. herefore company should ta-e some measure tocreate awareness.



47/68


hile purchasing unit lin-ed policy+ people consider the attri utes

li-e Creation o' estate Li'e co(era)e /ode o' payin) pre iu it*drawal ,ene'its &a(in)

co ponent ec*o uc* i portance t*ey )i(e to eac* attri,ute is )i(en ,elow

Consideration of attri!utesCreation o'

estate16%

Li'e co(era)e16%

/ode o'payin)

pre iu14%

it*draw al,ene'its

15%

/aturity,ene'its

15%

&a(in)co ponent

15%

C*ar)es le(ied9%

hile purchasing life insurance people considered most

important is %i#( 'o)(&!g( than C&(!"ion o# (s"!"( than s!)ing 'om/on(n" than other

attri utes li-e m!"$&i"0 (n(#i"s8 ,i"*d&!,!% (n(#i"s !nd mod( o# /!0ing

/&(mi$m 2 the least important attri ute is '*!&g(s %()i(d .

)s people consider most important as life coverage+ in the

policy of nit gain they should concentrate on &eath enefits and life coverage period.

)fter consideration of attri utes the ne t step towards the purchase of life

insurance y the prospective uyer are following factors



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1. rand Image

2. Ris- (actor

3. Income

/. )ge factor

5. Influence of relatives and friends

0. :ar-et condition

Consideration of factors w$ile!uying &ife Insurance

"rand ia)e

14%

isk 'actor 19%

Inco e19%

)e

18%

elati(es 'riends

12%

/arket condition18%

Respondents considered very important as Ris- #!'"o& than the

factors li-e In'om(8 Ag(8 !nd M!&-(" 'ondi"ions2 +&!nd im!g( as less important and

In#%$(n'( o# &(%!"i)(s !nd #&i(nds as very least important.)s people are tend to avoid ris- and give more importance to ris-

factor it shows that people are willing to ta-e ris-.



49/68


PEOPLE


50/68


PEOPLE >S PREFERENCE OF INVESTIN5 PREMIUM AMOUNT

Customer got several option to invest their premium . he preference according to

respondents are given elow

+rap$ s$owing Co posite rankingof %arious fund

232 222246

280

0

50

100

150

200

250

300

uity 'und +e,t 'und Cas* 'und "alance'und

Ran-ings are given elow

1. alanced fund 298

2. J%uity fund 258

3. Cash fund 2/8

/. &e t fund 238



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RESPONDENTS WHOSE INCOME IS MORE THAN

RS Rs 3, , !"a"

Ranking of &ife Insuranceco panies !ased on t$eir

co posite score

0

5

10

15

20

25

30

35

Lic "irla&unli'e

ICICI llian!"a#a#

(i(a $ata I

Ran-ing according to respondents whose income is more than Rs 3+,,+,,, p.a.1. 'IC

2. ICICI

3. irla #unlife

/. )llian$ a"a"

5. ata )IE

0. )viva

R(s/ond(n"s ,*os( in'om( is mo&( "*!n Rs 8 8 /2!2

'onsid(&(d !""&i $"(s !s (%o,



52/68


Consideration of Attri!utesCreation o'

estate16%

Li'e co(era)e16%

/ode o' payin)pre iu15%

it*draw al,ene'its

15%

/aturity ,ene'its14%

&a(in)co ponent

16%

C*ar)es la(ied

8%

Respondents considered very important attri ute as C&(!"ion o# (s"!"(8

S!)ing 'om/on(n"s !nd %i#( 'o)(&!g(2 ?e t important as Mod( o# /!0ing /&(mi$m

and ne t is Wi"*d&!,!% (n(#i"s ne t is M!"$&i"0 (n(#i"s and the least important is

C*!&g(s %()i(d2

Respondents even consider #aving component and creation of estate as

very important.

R(s/ond(n"s ,*os( in'om( is mo&( "*!n Rs 8 8 /2!2 'onsid(&(d

#!'"o&s !##('"ing "o $0 %i#( ins$&!n'( !s (%o,



53/68


,actors considered w$ile!uying &ife Insurance

"rand i a)e14%

isk 'actor 18%

Inco e19%

)e19%

elati(es 'riends11%

/arket condition19%

Respondent considered all the a ove4mentioned attri utes as most

important In percentage most important is Ag(8 In'om(8 M!&-(" 'ondi"ions8 Ris-

F!'"o& and least important is +&!nd im!g( !nd in#%$(n'( o# &(%!"i)(s !nd #&i(nds2

R(s/ond(n"s ,*os( in'om( is mo&( "*!n Rs 8 8 /2!2 'onsid(&(d "*(in)(s"m(n" '&i"(&i! !s #o%%o,s



54/68


Respondents interest ofin%est ent in percentage

(in Rs p)a*

"elow100000

4%100000200000

23%

200000350000

23%

350000500000

31%

,o(e500000

19%

Respondent interested to invest money more etween Rs 8@ 8 1@8 8 /2!2

?e t is Rs =8 8 1 8@ 8 /2!2 and same percentage of people wants to invest in

Rs 8 8 1=8 8 /2!2 and 1*8 want to invest in ! o)( Rs @8 8 /2!2 and least

people want to invest in (%o, Rs 8 8 /2!2

R(s/ond(n"s ,*os( in'om( is mo&( "*!n Rs 8 8 /2!2 'onsid(&(d

in)(s"ing "*(i& mon(0 in #o%%o,ing #$nds



55/68


#reference of respondentsinterest of in%esting #re iu in

%arious fundsuity 'und

22%

+e,t 'und22%

Cas* ' und25%

"alance ' und31%


1. alanced fund 3182. Cash fund 258

3. J%uity fund 228

/. &e t fund 228

OPINION O# THE RESPONDENTSWHO $NOW A%O&TTHE &NITLIN$ED POLIC'"



56/68


ATTRI-UTES C."SI/ERE/ -YRES#."/E"TS 01I&E #URC1SI"+

U"IT &I"2E/ #.&ICY

Creation o'estate15%

Li'eco(era)e

1-%

/ode o'payin)

pre iu13%

it*drawal ,ene'its

16%

/aturity,ene'its

14%

&a(in)co ponen

t15%

C*ar)esla(ied10%

Respondents considered very important attri ute as Li#( 'o)(&!g( ne t

important as Wi"*d&!,!% (n(#i"s ne t is S!)ing 'om/on(n"s !nd C&(!"ion o# (s"!"(

ne t important as M!"$&i"0 (n(#i"s ne t important attri ute is Mod( o# /!0ing

/&(mi$m and the least important is C*!&g(s %()i(d2

H(&( mos" im/o&"!n" "o no"( is ()(&0 !""&i $"( is 'onsid(&(d

im/o&"!n" ('!$s( !%% "*( /(&'(n"!g( is mo&( "*!n B2



57/68


C."SI/ERATI." ., T1E ,ACT.RS 01I&E -UYI"+ U"IT&I"2E/ #.&ICY

"rand i a)e15%

isk 'actor 20%

Inco e19%

)e19%

elati(es 'riends10%

/arket condition1-%

Bery important Ris- factor

'ess important Income+ age

Important :ar-et conditions

?ot important rand image

'east important Influence of relatives friends



58/68


0

10

20

30

40

50

60

"elow10000

10000450000

500004100000

1000004200000

,o(e200000

+RA#1 S1.0I"+ #ERCE"TA+E

., #E.#&E 3 T1EIR I"TEREST., I"VESTME"T (I" RS #)A)*

Respondents got an option of five categories as shown a ove. he response was

elow Rs 1+,,+,,, ,*8

Rs 1+,,+,,, 2+,,+,,, ,,8

Rs 2+,,+,,, Rs 3+,,+,,, p.a. ,*8

Rs Rs 3+,,+,,, p.a.4 5+,,+,,, 558

) ove Rs 5+,,+,,, 278



59/68


#E.#&E'S CRETERIA T. I"VESTI" VARI.US ,U"/S

uity 'und25%

+e,t 'und20%

Cas* 'und23%

"alance'und32%


1. alanced fund 328

2. J%uity fund 258

3. Cash fund 238

/. &e t fund 2,8



60/68


SUGGESTIONS:

1. he a ove study showed that the awareness a out )llian$ a"a" is less . People

ran-ed it 3 rd in the life insurance companies .#o companies should ta-e some

measure to create awareness in the minds of customer .(or that it may go for

aggressive advertising campaign or sponsor for some events+ go for anners orhoardings

2. he competitor companies of )' ; is very strong in unit lin-ed policies irla

#unlife and 'IC are going e tremely well in the mar-et.their growth rates are very

high .#o )' ; should highlight their strong points li-e

Choosing the sum assured

'ow allocation charges in the long run

Eood service

'ow switching charges

erm of policy is unlimited

#alary deduction schemes

3. he unit4lin-ed policies are suita le to those who are active investors and at the

same time they want to cover their life.



61/68


/. here are various categories of people who can e differentiated li-e

:en and omen

:en usually ta-e the ris-+ where as women hesitate to ta-e ris-. #o this policy

is more suita le to men

)ge factor

Moung people are more willing to ta-e the ris-+ where old people are not. #o it

is suita le to young income people

Income group

If income of the person is high than he can ta-e ris- ut low4income group

cant ta-e the ris-. #o this policy is suita le to high4income group people.

5. 'ife insurance is the classical e ample of unsought goods. he nature of that is

the consumer does -now a out or does not normally thin- of uying.

It re%uires personal selling support. #o agents should e fully informative and

they should e a le to tell the entire information customer needed.

0. )s awareness is less + )llian$ a"a" should open some more ranches

so that acccess ecomes easy. #o that people can approach the company and ta-e

service.

7. )s people consider ris- factor as very important company should give minimum

guarantee of money so that people may consider this policy as most secured and

also giving good profit.9. Company should come up with group unit lin-ed plans so that people may have

option to go for unit4lin-ed policy.



62/68


CONCLUSION

In new economy things are moving at a nanosecond pace> that our mar-ets are

characterised y hyper competition> that disruptive technologies are changing every

usiness and every usiness must adapt to the empowered consumer. In such an

environment )' ; is performing on a consistence asis. It is not a result of luc-+ tric-

plays or misfortune of the competitors+ ut service and attractive schemes of )' ;.

)llian$ a"a" sustained efforts are yielding superior long4term result.

he a ove study showed that unit lin-ed policy has attractive mar-et. ut main

pro lem is awareness. #o )llian$ a"a" should create awareness among the people. hey

should e plain the advantages they are getting out of unit4lin-ed policy. hey should

come up with some salient features li-e different investment criteria+ group investment

plans etc.In India people are not willing to invest their money in mar-et ut they ma-e

idle investment. #o it is the wor- of middlemen win the willingness of people to invest in

mar-et. )lso company should concentrate on death enefit and term of policy.



63/68


BIBLIOGRAPHY

1. Donald .#. ull aw-ins :ar-eting research measurement and method+

Prentice all of India Private 'imited+?ew &elhi42,,1

. 'iterature availa le at )llian$ a"a" ranch office+ angalore.

!. www.)llian$ a"a".com

". www.economictimes.com

http://www.allianzbajaj.com/http://www.allianzbajaj.com/


64/68


APPENDIX



65/68


MARKETSURVEYON UNIT LINKEDPOLICIES

Sir/Madam,

I am MBA student studying in. I am doing survey on unit linked plans .

Please co-operate and spare a few minutes of your time to fill up the following

questionnaire. The information provided by you will be kept confidential since this project

is for academic purpose.

Name :

Add&(ss :

P* 2No :



66/68


5(nd(& : Ag( :

P&o#(ssion O''$/!"ion:

Ann$!% in'om(: ! (%o, @ @ 1

' 1@ d ! o)( @

1. ave you ought any Insurance policy < -now a out unit lin-ed policy6

Mes ?o

2. Ran- the insurance companies you are aware off

' I C )llian$ a"a"

irla #unlife )viva

I CI C I ata )IE

3. Have you bought any unit linked policy?

Yes No

If Yes

Company name :

If No

4. Are you interested in buying unit linked policies

Yes No

If yes

From which company

And why



67/68


5 . Rank the below attributes do you consider while purchasing Life Insurance/ Unit

Linked policies (For very important 5 to least important 1)

)ttri utes 5 / 3 2 1Creation of estate

'ife coverage:ode of paying premiumithdrawal enefits:aturity enefits#aving componentCharges levied

0. Ran- the elow factors are you consider while purchasing 'ife Insurance< nit 'in-ed policies @(or very important 5 to least important 1A

(actors 5 / 3 2 1rand image

Ris- factor Income)geRelatives and friends:ar-et conditions

7. ow much do you want to invest6Below -10000 100000-200000

10000-50000 Above 200000

50000-100000

8. In which fund do you prefer to invest (rank them accordingly)Equity fund Cash fund

Debt fund Balance fund

han- you



68/68


comprative study or equity scheme in the mutual fund

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