ULIP

WHERE TO INVEST -ULIP OR MUTUAL FUNDS: AN INVESTOR’S GUIDE

A

PROJECT REPORT

ON

WHERE TO INVEST-ULIP OR MUTUALWHERE TO INVEST-ULIP OR MUTUAL FUNDS: AN INVESTOR’S GUIDEFUNDS: AN INVESTOR’S GUIDE

FORE SCHOOL OF MANAGEMENT

QUTUB INSTITUTIONAL AREA, NEW DELHI

FORE SCHOOL OF MANAGEMENT 1

http://images.google.com/imgres?imgurl=http://www.bris.ac.uk/ceas/images/news/sc.jpg&imgrefurl=http://www.bris.ac.uk/ceas/news/detail/june052.shtml&h=194&w=270&sz=11&tbnid=pFgixvuV6eGX6M:&tbnh=77&tbnw=108&hl=en&start=39&prev=/images%3Fq%3Dstandard%2Bchartered%2Bbank%26start%3D20%26svnum%3D10%26hl%3Den%26lr%3D%26rls%3DGGLG,GGLG:2006-20,GGLG:en%26sa%3DN


CONTENTS ACKNOWLEDGEMENT

PREFACE

INTRODUCTION

Indian banking System

Profile of the Bank

PRODUCTS OFFERED BY THE BANK

Savings Account

ULIP (Unit Linked Insurance Plan)

Mutual Funds

SAVINGS ACCOUNT OFFERED BY DIFFERENT BANKS

ULIP AND MUTUAL FUNDS : A General Study

COMPARISON BETWEEN ULIP AND MUTUAL FUNDS

WHERE TO INVEST : ULIP OR MUTUAL FUNDS

MARKET SURVEY

Objective

Research Methodology

Findings

Recommendations

CONCLUSION

BIBLIOGRAPHY



ANNEXURE

ACKNOWLEDGEMENT

We wish to express our gratitude to Standard Chartered Bank’s management for giving us an

opportunity to be a part of their esteem organization and enhance our knowledge by granting

permission to do our summer training project under their guidance.

We are grateful to Mr. NITISH DIPANKAR (Team Leader), our guide, for his invaluable guidance

and cooperation during the course of the project. He provided us with his assistance and support

whenever needed that has been instrumental in completion of this project.

The learning during the project was immense & invaluable. Our work basically included the study of

various financial products of the bank and understanding the customer investing patterns. The present

report is an amalgamation of our thoughts and our efforts to study the present banking and investment

scenario and market potential for the sale of products like ULIP and Mutual Funds. Further a detailed

study has been done in order to suggest the customers where to invest according to their identified

needs.

We are also thankful to DR. GAURAV AGGARWAL (Faculty, FSM), our internal faculty guide who

helped us as and when required with his big reservoir of experience and knowledge. If the ideas do

make the difference, than this project has gained maximum from his experience. He has in fact given

the project is form.

Last but not the least we are grateful to all the staff members of Standard Chartered Bank for their kind

cooperation and help during the course of our project.

SHANTA KUMARI

VARUN LALL



PREFACE

Someone has rightly said that practical knowledge is far better than classroom

teaching. During the course of this project we actually realized how true it is when

we analyzed the Banking Industry and the real world of Financial Product

marketing. This project enabled us to know about the consumers’ needs and

competitors’ activities in the real world of Banking.

The subject of our study is Where to invest-ULIP or Mutual Funds : An

Investor’s Guide, for which we did a detailed study of features of ULIP and Mutual

Funds offered by different banks followed by a market research in order to know the

investing patterns and concerns of the investors thereby identifying the potential

customers for these products.

The report contains at first, the brief introduction about the company, the products

and services being offered by the bank, comparative analysis of different products

offered by different banks and then the findings and analysis of the research on the

basis of which final suggestions and conclusion has been drawn.

We have also put forward recommendations that will help Standard Chartered Bank

to move a step ahead to be banking giant in India.



INTRODUCTION

INDIAN BANKING SYSTEM:India has a well developed banking system. Most of the banks in India were founded by Indian

entrepreneurs and visionaries in the pre-independence era to provide financial assistance to traders,

agriculturists and budding Indian industrialists. Indian banks have played a significant role in the

development of Indian economy by inculcating the habit of saving in Indians and by lending finance to

Indian industry.

The commercial banking structure in India consists of: Scheduled Commercial Banks and

Unscheduled Banks. Scheduled commercial Banks constitute those banks, which have been included

in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI includes only those banks in

this schedule, which satisfy the criteria laid down vide section 42 (6) (a) of the Act.

Indian banks can be broadly classified into nationalized banks/public sector banks, private banks and

foreign banks.

Foreign banks have brought latest technology and latest banking practices in India. They have helped

made Indian Banking system more competitive and efficient. Government has come up with a road

map for expansion of foreign banks in India.

The road map has two phases. During the first phase between March 2005 and March 2009, foreign

banks may establish a presence by way of setting up a wholly owned subsidiary (WOS) or conversion

of existing branches into a WOS. The second phase will commence in April 2009 after a review of the

experience gained after due consultation with all the stake holders in the banking sector. The review

would examine issues concerning extension of national treatment to WOS, dilution of stake and

permitting mergers/acquisitions of any private sector banks in India by a foreign bank.



Major foreign banks in India are:

ABN-AMRO Bank

Abu Dhabi Commercial Bank Ltd.

American Express Bank Ltd

BNP Paribas

Citibank

DBS Bank Ltd

Deutsche Bank

HSBC Ltd

Standard Chartered Bank

STANDARD CHARTERED BANK: BACKGROUNDStandard Chartered Bank is one of the largest MNC bank which employs 38,000 people at over 950

locations in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa,

the United Kingdom and the Americas.

Standard Chartered is listed on both the London Stock Exchange and the Stock Exchange of Hong

Kong and is in the top 25 FTSE-100 companies, by market capitalization. The Bank is well-

established in growth markets and aims to be the right partner for its customers by combining deep

local knowledge with global capability. It is trusted across its network for its standard of governance

and its commitment to making a difference in the communities in which it operates.

Standard Chartered Bank offers a full range of traditional as well as structured banking products to

corporate clients, covering short and long term funding in local and foreign currencies and transaction

banking including comprehensive trade finance, supply and dealer chain financing, and cash

management services.

The Bank has expanded client coverage further to include the middle market segment of corporate

customers in selected industry sectors and has also commenced initiatives covering commercial real

estate and commodity finance. The Bank works in close partnership with other businesses - Global

Markets and Consumer Banking, to offer a seamless and comprehensive banking solution to clients.

STANDARD CHARTERED –AT A GLANCE The worlds leading emerging markets bank

Assets in excess of USD 100 billion


http://www.iloveindia.com/finance/bank/foreign-banks/abn-amro-bank.html

http://www.iloveindia.com/finance/bank/foreign-banks/standard-chartered-bank.html

http://www.iloveindia.com/finance/bank/foreign-banks/hsbc-bank.html

http://www.iloveindia.com/finance/bank/foreign-banks/deutsche-bank.html

http://www.iloveindia.com/finance/bank/foreign-banks/dbs-bank.html

http://www.iloveindia.com/finance/bank/foreign-banks/citibank.html

http://www.iloveindia.com/finance/bank/foreign-banks/bnp-paribas.html

http://www.iloveindia.com/finance/bank/foreign-banks/american-express-bank.html

http://www.iloveindia.com/finance/bank/foreign-banks/abu-dhabi-commercial-bank.html


500 offices in over 60 countries with 30,000 employees

Currently having H.O at London

Acquired ANZ Grindlays in Aug 2000 at $1.34 Billion

Acquired Chase Hong Kong Consumer Banking for $1.32 Billion

Acquired Korea First Bank in Jan 2005 for $3.3 Billion

STANDARD CHARTERED IN INDIAStandard Chartered is a London based international bank with significant operations in Asia, Africa,

the Middle East and Latin America. The Standard Chartered Group was formed in 1969 through a

merger of two banks: The Standard Bank of British South Africa founded in 1863, and the Chartered

Bank of India, Australia and China, founded in 1853.

Both companies were keen to capitalize on the huge expansion of trade and to earn the handsome

profits to be made from financing the movement of goods from Europe to the East and to Africa.

Chartered Bank opened its first overseas branch in India, at Kolkata, on 12 April 1858. During that

time Kolkata was the most important commercial city and was the hub of jute and indigo trades. With

the opening of the Suez Canal in 1869 and the growth of cotton trade, Bombay replaced Kolkata as the

main commercial center. Hence Standard Chartered shifted its main operations to Bombay. Today the

Bank's branches and sub-branches in India are directed and administered from Bombay with Kolkata

remaining an important trading and banking centre.

The merger with the Standard Bank of British South Africa in 1969 and the acquisition of Grindlays

Bank in 2000 were two key events that have played an important role in making the Bank the largest

international bank in India. To cater to diverse financial needs, Standard Chartered offers a wide range

of state-of-the-art banking products and services through its network of 80 branches in 31 cities across

the country.



MORE THAN BANKING:

Corporate Social Responsibility (CSR) is at the core of the values of Standard Chartered Bank. The

Bank is committed to the communities and environments in which it operates. The Bank strongly

supports the trend towards delivering shareholder value in a socially, ethically and environmentally

responsible manner. ‘Living with HIV’ is a global community initiative of Standard Chartered that is

aimed at raising awareness of HIV/AIDS amongst employees through workshops and amongst

stakeholders by providing thought leadership. Under ‘Seeing is believing’, a programme that aims to

restore sight to one million people globally by 2006, the Bank has raised funds to help 8000 people to

see.

In partnership with Sight Savers International and VISION2020 the Bank is now involved in two

flagship projects at Vishakhapatnam and Muzaffarpur, both aimed at the elimination avoidable

blindness. Furthermore, in support of the communities ravaged by the Asian Tsunami Crisis in 2004

the Standard Chartered Group committed US$ 1 million to India. The Bank is utilizing these funds for

the rehabilitation of two villages adopted near Chennai.

In 2004, Standard Chartered initiated the phenomenally successful Standard Chartered Mumbai

Marathon - an event dedicated to charity fund raising. The two marathons held so far have forged

partnerships with customers and charities and deepened the Bank’s ties with the community, with over

US$ 1 million being raised in 2005.


Standard Chartered Today

Nationalised - 80% Foreign – 8%

Private – 12%

The Group’s Share of the Indian Banking Industry

Advantage of level playing field

Others

9%

16%

18%

27%

30%

Citibank

HSBC

HSBC

8


FUTURE PLANS:After 150 years of service to India, Standard Chartered Bank continues to be committed to the country

and optimistic of positively contributing to the Indian Financial Sector. The Standard Chartered Group

considers India to be one of the greatest economic opportunities of the 21st century and is proud to be

so strongly positioned here. The Bank has ambitious plans to transform its business in the country and

to further expand operations across the country.

MARKET POTENTIAL:With a burgeoning national economy, financial-sector reforms and a growing middle class, the Indian

market offers huge potential for SCB to grow. The large and growing middle class population and

increase in disposable incomes have created booming markets in housing, motor, televisions,

computers, mobile phones and other products, most of which require financing. SCB has been

effective in leveraging this opportunity with its product and service offerings.

PRODUCTS OFFERED:Standard Chartered bank provides different products and services in order to cater the needs of the

customers which can be broadly classified into the following categories:

1. PERSONAL BANKING: To cater the diverse financial needs, Standard Chartered offers a

wide range of premium banking products and services through its network of 81 branches in 31

cities across the country.As a privileged customer of this bank, the customers can always be

assured of a banking service that is flexible enough to tailor-make a product suite to take care

of his specific banking needs.

2. SME BANKING: SME Banking provides integrated financial solutions to small and medium

businesses, through a relationship management approach. Its customer focused product

offerings include working capital finance, trade services, foreign exchange, and cash

management.

3. COMMERCIAL BANKING: Standard Chartered has maintained a long local presence, since

1858, with particular emphasis on relationship banking. Significant networks have been

established with vendors and financial-related organisations to enable it to offer the customers


http://www.standardchartered.com/in/home/branch.html


a comprehensive range of flexible financial services, with special focus on transactional

banking products. Supported by state-of-the-art operations, Standard Chartered is pro-active in

improving every part of services. Electronic Delivery system has been put in place to ensure

that transactions are handled speedily. It has its Cash Product Specialists and dedicated

Customer Service Centres to provide its customers with effective solutions.

To fully understand the workings and functions of Standard Chartered Bank, the scope of this project

has been limited to the detailed study of only three products offered by this bank under the above

mentioned categories:

1. Savings Account : Personal banking

2. Unit Linked Insurance Plan (ULIP): Personal banking

3. Mutual Funds: Commercial banking

SAVINGS ACCOUNT

An account primarily opened for and operated by individuals, wherein the numbers of transactions are

few and which give the customer liquidity, with the facility to earn some interest on the residual

balances.

Standard Chartered bank offers 4 types of Savings account matching different needs of customers

namely:

1. Axcess Plus :The Standard Chartered Bank have launched the Axcess Plus

saving account as a premium product placed in the market with maintenance of minimum

quarterly balance of 10,000/- The product in supposed to be targeted to a specific group elite of

customers. This will help to increase the volume and as such the profitability of the company. The

name axcess plus means that the account is accessible anywhere anytime, as well as it will be an

innovative and convenient services for the customers needs.

2. Super Value

3. Parivaar account

4. Saral Account



ELIGIBILITY (IN GENERAL)

Indian Residents

NRI’s

Clubs, Associations, Trusts and Registered Societies

HUF (Hindu Undivided Family)

Foreign Nationals (QA-22)

PRODUCT FEATURES (IN GENERAL)

Account can be in sole name or in joint names

Minimum balance: Minimum Quarterly balance of a specific amount is to be maintained failing to

which a specific fees per quarter has to be paid.

Account can be operated at any branch across the country.

PARAMETERS

SAVINGS ACCOUNT NAME aXcessPlus Savings AccountSuperValue Savings

AccountACCOUNTS CHARGES FOR OPENING THE ACCOUNT NIL NILAVERAGE QUARTERLY (DAILY)BALANCE REQD. Rs.10000 Rs 50,000

PENALTY FOR UNSUFFICIENT AQB

Rs. 1500/qtr (Bal<Rs.5000) Rs.750/qtr(Rs.10000>Bal>Rs.5000)

Rs. 1250/qtr (Rs.5000<=Bal<10k) Rs.1250/qtr(Rs.10000>Bal>Rs.5000)

DORMANT A/C CHARGES Rs.1000 per yr. Rs.1000 per yr.

ACCOUNT CLOSURE Rs.500 (within 6 months)Rs.500 (within 6 months)

DEMAND DRAFT DRAWN AT OWN BANK(min fee Rs.50 & max Rs.1500) 0.25% FREECANCELLATION Rs 250 Rs.250DRAWN AT OTHER BANK( Min Fee Rs.250) 0.30% 0.25%PAY ORDER Rs.75 FREE STATEMENTS STATEMENT OF ACCOUNT,(E-STMT) FREE/qtr FREE/qtr



CHARGES FOR DUPLICATE STATEMENT Rs.100 Rs.100MONTHLY STATEMENT CHARGES Rs.100 FREEISSUE BALANCE CONFIRMATION CERTIFICATE Free for 1st Yr yr,250/yr

Free for 1st Yr yr,250/yr

CARDS DEBIT CARD ANNUAL FEE Rs.200 per year FREEDEBIT CARD REPLACEMENT FEE Rs.200 Rs.200

ATM INTERCHANGE(NON PARTNER)

Free for first 4 transactions per month/ Rs.50 for beyond 4 trans.

SERVICES NETBANKING FREE INTERBRANCH/ INTERCITY BANKING Rs.50 BILLPAY FREE PHONE BANKING FREE MOBILE BANKING(SMS) NOT AVAILABLE

PARAMETERSaXcessPlus Savings Account

SuperValue Savings Account

STANDING INSTRUCTIONS

SETTING UPRs.100(for setting) Rs.25(on execution)

DOOR STEP BANKING FREECASH PICK UP FREECASH DELIVERY/TRANSACTION FREE CHEQUE BOOKS CHEQUE BOOK CHARGES(AT PAR) FREE FREECHARGES FOR STOP PAYMENT OF INSTRUMENT Rs.100 FREE

CHEQUE RETURN CHARGES(Issued)Rs.250 + other banks charges Rs.250

CHEQUE RETURN CHARGES(Deposited)

Rs.100 + other banks charges FREE

MISCELLANEOUS BALANCE CERTIFICATE(Upto 1 Yr)/more Than 1 Yr old FREE/Rs.250 FREE/Rs.250BANKER'S REPORT Rs.50 FREESIGNATURE VERIFICATION Rs.25 FREE INSURANCE PARTNER BAJAJ ALLIANZ BAJAJ ALLIANZ



PARAMETERS SAVINGS ACCOUNT NAME Parivaar Account

ACCOUNTS CHARGES FOR OPENING THE ACCOUNT NILAVERAGE QUARTERLY (DAILY)BALANCE REQD. Rs.25000 across all linked Savings a/c

PENALTY FOR UNSUFFICIENT AQBRs. 1000/qtr (Bal<Rs.10000) Rs.750/qtr(Rs.25000>Bal>=Rs.10000)

DORMANT A/C CHARGES Rs.1000 per yr.ACCOUNT CLOSURE Rs.500 (within 6 months) DEMAND DRAFT DRAWN AT OWN BANK(min fee Rs.50 & max Rs.1500) 0.25%CANCELLATION Rs 250DRAWN AT OTHER BANK( Min Fee Rs.250) 0.30%PAY ORDER Rs.75 STATEMENTS STATEMENT OF ACCOUNT,(E-STMT) FREE/qtrCHARGES FOR DUPLICATE STATEMENT Rs.100MONTHLY STATEMENT CHARGES Rs.100



ISSUE BALANCE CONFIRMATION CERTIFICATE Free for 1st Yr yr,250/yr CARDS DEBIT CARD ANNUAL FEE Rs.200 per yearDEBIT CARD REPLACEMENT FEE Rs.200

ATM INTERCHANGE(NON PARTNER)Free for first 4 transactions per month/ Rs.50 for beyond 4 trans.

SERVICES NETBANKING FREEINTERBRANCH/ INTERCITY BANKING Rs.50BILLPAY FREEPHONE BANKING FREEMOBILE BANKING(SMS) NOT AVAILABLE

PARAMETERS Parivaar AccountSTANDING INSTRUCTIONS

SETTING UPRs.100(for setting),Rs.25(on execution)

DOOR STEP BANKING CASH PICK UP CASH DELIVERY/TRANSACTION CHEQUE BOOKS CHEQUE BOOK CHARGES(AT PAR) FREECHARGES FOR STOP PAYMENT OF INSTRUMENT Rs.100CHEQUE RETURN CHARGES(Issued) Rs.250 + other banks chargesCHEQUE RETURN CHARGES(Deposited) Rs.100 + other banks charges MISCELLANEOUS BALANCE CERTIFICATE(Upto 1 Yr)/more Than 1 Yr old FREE/Rs.250BANKER'S REPORT Rs.50SIGNATURE VERIFICATION Rs.25 INSURANCE PARTNER BAJAJ ALLIANZ



COMPARITIVE ANALYSIS OF VARIOUS SAVINGS ACCOUNT OFFERED

BY DIFFERENT BANKS

The services provided by Standard Chartered Bank are almost the same as any other private or

multinational banks like statement charges, phone banking, automatic cheque book reorder, any

branch banking, investment advisory services, net banking, demat, overdraft, corporate salary

accounts, priority banking, doorstep banking. Thus, it becomes essential to do a comparative analysis

among the different chosen banks.



BANKS ABN-AMROKOTAK

MAHINDRAPARAMETERS

SAVINGS ACCOUNT NAME FLEX PLUS EDGE ACCOUNTS CHARGES FOR OPENING THE A/C NIL NILAVERAGE QUART. (DAILY)BAL REQD.

(Rs. 10000/mth),Rs 15000 with add on A/C Rs.10000

PENALTY FOR UNSUFFICIENT AQB

Rs. 300/mth(Rs7500<=Bal<10000),Rs 400(Rs 5000<=Bal<Rs7500,Rs500(Bal<Rs 5000) Rs 661/Qtr

DORMANT A/C CHARGES Rs. 300/qtr (2 yrs.) ACCOUNT CLOSURE Rs.500(Within 1 yr) Rs 661DEMAND DRAFT

DRAWN AT OWN BANK Rs 50 Min 50,Rs2.5/1000CANCELLATION Rs 50 DRAWN AT OTHER BANK 0.25% STATEMENTS STATEMENT OF ACCOUNT,(E-STMT) FREE/Hlf yr,(FREE/mth) FREE/qtrCHARGES FOR DUPLICATE STATEMENT Rs. 50/stmt.



MONTHLY STATEMENT CHARGES Rs.25 ISSUE BALANCE CONFIRMATION CERT. Rs.50 CARDS

DEBIT CARD ANNUAL FEE Rs.180FREE FOR 1ST YR,110/yr

DAILY ATM WITHDRAWL LIMIT Rs.50000(NON GOLD) Rs 25,000DEBIT CARD SPENDING LIMIT Rs.50000(NON GOLD) Rs 25,000DEBIT CARD REPLACEMENT FEE Rs 200 ATM INTERCHANGE(PARTNER)/TRANSN FREE,Bal=Rs5 FREEATM INTERCHANGE(NON PARTNER) Rs 50,Bal=Rs 20 FREESERVICES NETBANKING FREE FREEINTERBRANCH/ INTERCITY BANKING BILLPAY FREE FREEPHONE BANKING Rs.100 FREE

BANKS ABN-AMROKOTAK

MAHINDRAPARAMETERS

SAVINGS ACCOUNT NAME FLEX PLUS EDGESERVICES MOBILE BANKING(SMS) (FREE) STANDING INSTRUCTIONS

SETTING UP Rs 50 AMMENDMENT Rs 50 DOOR STEP BANKING CASH PICK UP FREECASH DELIVERY/TRANSACTION 1/DAY FREE,Rs 50 FREECHEQUE BOOKS CHEQUE BOOK CHARGES(AT PAR) Rs.50 CHARGES FOR STOP PAYMENT OF INSTRU Rs.100 110.2CHEQUE RETURN CHARGES(Issued) Rs.350 110CHEQUE RETURN CHARGES(Deposited) Rs 100 ISSUE OF CHEQUE LEAF CHARGE MISCELLANEOUS BALANCE CERTIFICATE Rs 50



PHOTO ATTESTATION Rs 50 SIGNATURE VERIFICATION Rs 50

INSURANCE PARTNER RELIANCE,Kotak

BANKS STANDARD CHARTERED HSBCPARAMETERS

SAVINGS ACCOUNT NAME aXcessPlus Savings AccountSavings Account

ACCOUNTS CHARGES FOR OPENING THE ACCOUNT NIL NILAVERAGE QUARTERLY (DAILY)BALANCE REQD. Rs.10000 Rs.25000

PENALTY FOR UNSUFFICIENT AQBRs. 1500/qtr (Bal<Rs.5000) Rs.827/qtr(Rs.10000>Bal>Rs.5000) Rs. 750/qtr

DORMANT A/C CHARGES Rs.1000 per yr.Rs. 150/qtr (2 yrs.)

ACCOUNT CLOSURE Rs.500 (within 6 months) DEMAND DRAFT

DRAWN AT OWN BANK 0.25% CANCELLATION Rs 250 DRAWN AT OTHER BANK 0.30% STATEMENTS STATEMENT OF ACCOUNT,(E-STMT) FREE/qtr FREE/qtr



CHARGES FOR DUPLICATE STATEMENT Rs.100 Rs. 150/stmt.MONTHLY STATEMENT CHARGES Rs.100 ISSUE BALANCE CONFIRMATION CERTIFICATE Free for 1st Yr yr,250/yr CARDS DEBIT CARD ANNUAL FEE Rs.200 per year DAILY ATM WITHDRAWL LIMIT Rs. 25000/dayDEBIT CARD SPENDING LIMIT DEBIT CARD REPLACEMENT FEE ATM INTERCHANGE(PARTNER)/TRANSACTION

ATM INTERCHANGE(NON PARTNER)

Free for first 4 transactions per month, Rs.50 for beyond 4 trans.

SERVICES NETBANKING FREE FREE

INTERBRANCH/ INTERCITY BANKING Rs.50 BILLPAY FREE PHONE BANKING FREE

BANKS ICICI HDFCPARAMETERS


BANKS STANDARD

CHARTERED HSBCPARAMETERS

SAVINGS ACCOUNT NAMEaXcessPlus Savings Account

Savings Account

SERVICES MOBILE BANKING(SMS) NOT AVAILABLE STANDING INSTRUCTIONS

SETTING UPRs.100(for setting), Rs.25(on execution)

AMMENDMENT DOOR STEP BANKING CASH PICK UP CASH DELIVERY/TRANSACTION CHEQUE BOOKS CHEQUE BOOK CHARGES(AT PAR) CHARGES FOR STOP PAYMENT OF INSTRUMENT Rs.100

CHEQUE RETURN CHARGES(Issued)Rs.250 + other banks charges

CHEQUE RETURN CHARGES(Deposited)

Rs.100 + other banks charges

ISSUE OF CHEQUE LEAF CHARGE MISCELLANEOUS BALANCE CERTIFICATE PHOTO ATTESTATION SIGNATURE VERIFICATION

INSURANCE PARTNERBAJAJ ALLIANZ,Royal Sundaram TATA AIG

19


SAVINGS ACCOUNT NAME SAVINGS ACCOUNT Savings Account ACCOUNTS CHARGES FOR OPENING THE A/C NIL NILAVERAGE QUART. (DAILY)BAL REQD. Rs. 5000 Rs. 5000PENALTY FOR UNSUFFICIENT AQB Rs 750/qtr Rs 750/qtr DORMANT A/C CHARGES

ACCOUNT CLOSURERs. 250 (within 1 yr) Rs. 100(>1 yr)

Rs.100 (< 6 months),NIL (>6 months)

DEMAND DRAFT

DRAWN AT OWN BANK Min 50,Rs 2/1000

Rs 75(Amt<= Rs 50K),Rs 2.5/1000 Min 100(50K<Amt<=1 L),Rs2/1000 (Amt>1L)

CANCELLATION Rs 50 Rs 50DRAWN AT OTHER BANK Min 50,Rs 2.5/1000 Rs 50+Other chargesSTATEMENTS STATEMENT OF ACCOUNT,(E-STMT) FREE(Qtr) FREE/qtrCHARGES FOR DUPLICATE STATEMENT Rs. 25 per page Rs.100MONTHLY STATEMENT CHARGES Rs. 200/ yr Rs.800/yrISSUE BALANCE CONFIRMATION CERT. Rs. 50/ cert Free for 1st Yr yr,250/yr CARDS

DEBIT CARD ANNUAL FEERs.99,FREE FOR Sr CTZN Rs.100/yr

DAILY ATM WITHDRAWL LIMIT Rs 50000(Ncash) Rs. 15000DEBIT CARD SPENDING LIMIT Rs 50000(Ncash) DEBIT CARD REPLACEMENT FEE Rs.200 ATM INTERCHANGE(PARTNER)/TRANSN Rs 20,Bal= Rs 10 Rs.55,Bal=Rs 10ATM INTERCHANGE(NON PARTNER) Rs 60, Bal= Rs 25 SERVICES NETBANKING FREE FREE

INTERBRANCH/ INTERCITY BANKING FREE

FREE (UPTO Rs.50000/day),Rs.2.90 / Rs.1000 (> Rs.50000/day)

BILLPAY Rs.25/qtrPHONE BANKING FREE FREE

BANKS ICICI HDFC



PARAMETERS SAVINGS ACCOUNT NAME SAVINGS ACCOUNT Savings AccountSERVICES

MOBILE BANKING(SMS) FREEFREE (SMS CHARGES APPLY)

STANDING INSTRUCTIONS

SETTING UP Rs 100/instnRs.100(for setting), Rs.25(on execution)

AMMENDMENT Rs 25/amdmt DOOR STEP BANKING CASH PICK UP Rs 10 CASH DELIVERY/TRANSACTION Rs 10 CHEQUE BOOKS CHEQUE BOOK CHARGES(AT PAR) FREE CHARGES FOR STOP PAYMENT OF INSTRU Rs.50CHEQUE RETURN CHARGES(Issued) Rs. 200 Rs.350CHEQUE RETURN CHARGES(Deposited) Rs 50(local),Rs100(outstn) Rs.50(local),Rs.100(outstation)ISSUE OF CHEQUE LEAF CHARGE Rs.25 MISCELLANEOUS BALANCE CERTIFICATE Rs 50 Rs 50PHOTO ATTESTATION Rs 100 Rs 50SIGNATURE VERIFICATION Rs 50 Rs 50

INSURANCE PARTNER PRUDENTIAL,LOMBARD STANDARD LIFE

ULIP (Unit Linked Insurance Plan)



INTRODUCTION:A Unit Link Insurance Policy (ULIP) is one in which the customer is provided with a life insurance

cover and the premium paid is invested in either debt or equity products or a combination of the two.

In other words, it enables the buyer to secure some protection for his family in the event of his

untimely death and at the same time provides him an opportunity to earn a return on his premium paid.

In the event of the insured person's untimely death, his nominees would normally receive an amount

that is the higher of the sum assured or the value of the units (investments). To put it simply, ULIP

attempts to fulfill investment needs of an investor with protection/insurance needs of an insurance

seeker. It saves the investor/insurance-seeker the hassles of managing and tracking a portfolio or

products.

A ULIP, as the name suggests, is a market-linked insurance plan. The main difference between a ULIP

and other insurance plans is the way in which the premium money is invested. Premium from, say, an

endowment plan, is invested primarily in risk-free instruments like government securities (gsecs) and

AAA rated corporate paper, while ULIP premiums can be invested in stock markets in addition to

corporate bonds and gsecs.

ULIPs offer a variety of options to the individual depending on his risk profile. For instance, an

individual with an above-average risk appetite can choose a ULIP option that invests upto 60% of

premium in equities. Likewise, an individual with a lower risk appetite can select a ULIP that invests

upto 20% of premium in equities.

ULIP VS TRADITIONAL INSURANCE PLAN

It wasn't too long back, when the good old endowment plan was the preferred way to insure oneself

against an eventuality and to set aside some savings to meet one's financial objectives. Then insurance

was thrown open to the private sector. The result was the launch of a wide variety of insurance plans,

including the ULIPs.

Two factors were responsible for the advent of ULIPs on the domestic insurance horizon. First was the

arrival of private insurance companies on the domestic scene. ULIPs were one of the most significant

innovations introduced by private insurers. The other factor that saw investors take to ULIPs was the



decline of assured return endowment plans. Of course, the regulator -- IRDA (Insurance and

Regulatory Development Authority) was instrumental in signaling the end of assured return plans.

Today, there is just one insurance plan from LIC (Life Insurance Corporation) -- Komal Jeevan -- that

assures return to the policyholder.

These were the two factors most instrumental in marking the arrival of ULIPs, but another factor that

has helped their cause is a booming stock market. While this now appears as one of the primary

reasons for their popularity, we believe ULIPs have some fundamental positives like enhanced

flexibility and merging of investment and insurance in a single entity that have really endeared them to

individuals.

SUM ASSURED

Perhaps the most fundamental difference between ULIPs and traditional endowment plans is in the

concept of premium and sum assured.

When you want to take a traditional endowment plan, the question your agent will ask you are -- how

much insurance cover do you need? Or in other words, what is the sum assured you are looking for?

The premium is calculated based on the number you give your agent.

With a ULIP it works in reverse. When you opt for a ULIP, you will have to answer the question --

how much premium can you pay?

Depending on the premium amount you state, you are offered a sum assured as a multiple of the

premium. For instance, if you are comfortable paying Rs 10,000 annual premium on your ULIP, the

insurance company will offer you a sum assured of say 5 to 20 times the premium amount.

In the case of LIC's ULIP, the sum assured--premium relationship works the traditional way. So you

need to state how much sum assured you are looking for and your premium is calculated as 1/10th the

sum assured. If you have opted for a sum assured of Rs 100,000, your annual premium will be Rs

10,000.

INVESTMENTS



Traditionally, endowment plans have invested in government securities, corporate bonds and the

money market. They have shirked from investing in the stock markets, although there is a provision

for the same.

However, for some time now, endowment plans have discarded their traditional outlook on investing

and allocate about 10%-15% of monies to stocks. This percentage varies across life insurance

companies.

ULIPs have no such constraints on their choice of investments. They invest across the board in stocks,

government securities, corporate bonds and money market instruments. Of course, within a ULIP there

are options wherein equity investments are capped.

EXPENSES

ULIPs are considered to be very expensive when compared to traditional endowment plans. This

notion is rooted more in perception than reality.

Sale of a traditional endowment plan fetches a commission of about 30% (of premium) in the first year

and 60% (of premium) over the first five years. Then there is ongoing commission in the region of 5%.

Sale of a ULIP fetches a relatively lower commission ranging from as low as 5% to 30% of premium

(depending on the insurance company) in the first 1-3 years. After the initial years, it stabilises at 1-

3%. Unlike endowment plans, there are no IRDA regulations on ULIP commissions.

Mortality expenses for ULIPs and traditional endowment plans remain the same as also the

administration charges.

One area where ULIPs prove to be more expensive than traditional endowment is in fund

management. Since ULIPs have an equity component that needs to be managed actively, they incur

fund management charges. These charges fluctuate in the 0.80%-1.50% (of premium) range.

FLEXIBILITY



As we mentioned, one aspect that gives ULIPs an edge over traditional endowment is flexibility.

ULIPs offer a host of options to the individual based on his risk profile.

There are insurance companies that offer as many as five options within a ULIP with the equity

component varying from zero to a maximum of 100%. You can select an option that best fits your

objectives and risk-taking capacity.

Having selected an option, you still have the flexibility to switch to another option. Most insurance

companies allow a number of free 'switches' in a year.

Another innovative feature with ULIPs is the 'top-up' facility. A top-up is a one-time additional

investment in the ULIP over and above the annual premium. This feature works well when you have a

surplus that you are looking to invest in a market-linked avenue, rather than stash away in a savings

account or a fixed deposit.

ULIPs also have a facility that allows you to skip premiums after regular payment in the initial years.

For instance, if you have paid your premiums religiously over the first three years, you can skip the

fourth year's premium. The insurance company will make the necessary adjustments from your

investment surplus to ensure the policy does not lapse.

With traditional endowment, there are no investment options. You select the only option you have and

must remain with it till maturity. There is also no concept of a top-up facility.

Your premium amount cannot be enhanced on a one-time basis and skipped premiums will result in

your policy lapsing.

TRANSPARENCY

ULIPs are also more transparent than traditional endowment plans. Since they are market-linked, there

is a price per unit. This is the net asset value (NAV) that is declared on a daily basis. A simple

calculation can tell you the value of your ULIP investments. Over time you know exactly how your

ULIP has performed.

ULIPs also disclose their portfolios regularly. This gives you an idea of how your money is being

managed. It also tells you whether or not your mutual fund and/or stock investments coincide with

your ULIP investments. If they are, then you have the opportunity to do a rethink on your investment



strategy across the board so as to ensure you are well diversified across investment avenues at all

times.

With traditional endowment, there is no concept of a NAV. However, insurers do send you an annual

statement of bonus declared during the year, which gives you an idea of how your insurance plan is

performing.

Traditional endowment also does not have the practice of disclosing portfolios. But given that there

are provisions that ensure a large chunk of the endowment portfolio is in high quality (AAA/sovereign

rating) debt paper, disclosure of portfolios is likely to evoke little investor interest.

LIQUIDITY

Another flexibility that ULIPs offer the individual is liquidity. Since ULIP investments are NAV-

based it is possible to withdraw a portion of your investments before maturity. Of course, there is an

initial lock-in period (3 years) after which the withdrawal is possible.

Traditional endowment has no provision for pre-mature withdrawal. You can surrender your policy,

but you won't get everything you have earned on your policy in terms of premiums paid and bonuses

earned. If you are clear that you will need money at regular intervals then it is recommended that you

opt for money-back endowment.

TAX BENEFITS

Taxation is one area where there is common ground between ULIPs and traditional endowment.

Premiums in ULIPs as well as traditional endowment plans are eligible for tax benefits under Section

80C subject to a maximum limit of Rs 100,000. On the same lines, monies received on maturity on

ULIPs and traditional endowment are tax-free under Section 10.

ULIP - KEY FEATURES (IN GENERAL):

1. Premiums paid can be single, regular or variable. The payment period too can be regular or

variable. The risk cover can be increased or decreased.

2. As in all insurance policies, the risk charge (mortality rate) varies with age.



3. The maturity benefit is not typically a fixed amount and the maturity period can be advanced

or extended.

4. Investments can be made in gilt funds, balanced funds, money market funds, growth funds

or bonds.

5. The policyholder can switch between schemes, for instance, balanced to debt or gilt to

equity, etc.

6. The maturity benefit is the net asset value of the units.

7. The costs in ULIP are higher because there is a life insurance component in it as well, in

addition to the investment component.

8. Insurance companies have the discretion to decide on their investment portfolios.

9. They are simple, clear, and easy to understand.

10. Being transparent the policyholder gets the entire episode on the performance of his fund.

11. Lead to an efficient utilization of capital.

12. ULIP products are exempted from tax and they provide life insurance.

13. Provides capital appreciation.

14. Investor gets an option to choose among debt, balanced and equity funds.

ULIP SALES SINCE 2003

The Story in Numbers 2003-04 2004-05 Apr-Sep '05No of policies 186,443 288,189 200,213Gross premium (Rs cr) 221 1,002 762Market share (%) Pvt life insurance cos 7.3 15.4 19.8 All life insurance cos 0.96 3.39 4.75



ULIP – STANDARD CHARTEREDThe flexible Unit linked life insurance plans at Standard Chartered bank provides the opportunity to

participate in market-linked returns while enjoying the valuable benefits of life insurance. Insurance

Plans for Standard Chartered Bank customers is issued by Bajaj Allianz Life Insurance Company

Limited.

BAJAJ ALLIANZ-BACKGROUND:Bajaj Allianz Life Insurance Co Ltd is a joint venture between two leading conglomerates- Allianz

AG, one of the world's largest insurance companies, and Bajaj Auto, one of the biggest two and three

wheeler manufacturers in the world.

Allianz Group is one of the world's leading insurers and financial service providers. Founded in 1890

in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. Allianz Group

provides its more than 60 million customers worldwide with a comprehensive range of services in the

areas of Property and Casualty Insurance, Life and Health Insurance, & Asset Management and

Banking.

Bajaj Auto Ltd, the flagship company of the Rs80bn Bajaj Group is the largest manufacturer of two-

wheelers and three-wheelers in India and one of the largest in the world. Bajaj Auto has a strong brand

image & brand loyalty synonymous with quality & customer focus in India

Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto, trusted for over 55

years in the Indian market, together are committed to offer Insurance solutions that provide all the

security needed for a family.

UNIT GAIN – A UNIT LINKED PLAN:With Bajaj Allianz Unit Gain, one can invest in life insurance plan that can take care of all changing

requirements throughout one’s life. This plan has been designed to provide the maximum flexibility to

the customers, so that they do not have to worry about the changing needs.

Bajaj Allianz Unit Gain offers the unique option of combining the protection of life insurance with the

attractive prospects of investing in securities. One can choose the investment funds he wants to invest

his money in, providing with an opportunity to have a direct stake in the performance of the financial

markets. One can also benefit from attractive tax advantages and can protect his loved ones against

unfortunate events.



FEATURESThe Bajaj Allianz Unit Gain comes with a host of features to allow a customer to have the best of all

worlds –Protection and Investment with flexibility like never before.

Some of the key features of this plan are:

• Guaranteed death benefit

• Choice of 6 investment funds with flexible investment management: you can change funds at any

time.

• Attractive investment alternative to fixed-interest securities

• Provision for full/partial withdrawals any time after three full years premiums are paid.

• Unmatched flexibility –to match the changing needs.

In order to understand the ULIP policy, a detailed analysis of how the plan works, what all are the

service charges charged by the company, what is the amount assured and how is it calculated etc. has

been done in the following sheets. Moreover, as at present every next bank is offering this policy it

becomes essential to compare the different ULIP policies offered by different banks and companies

with the policy offered by Bajaj Allianz.

FUTURE PROSPECTS:Bajaj Allianz Life Insurance Company has firmed up massive network expansion and it plans to

achieve around 100 per cent growth in its total premium income at Rs 6,000 crore in 2006-07. The

company is planning to double its branch network to more than 1,000 from the current level of 550.

(Currently, Bajaj Allianz Life has branches in 150200 districts headquarters).



ULIP

Bajaj Allianz Unit Gain ICICI Prudential Life Time2 Joint/Single life Single life Single life Min Annual premium(Rs) 10,000 18,000 Mode of premium payment Yearly,quarterly,monthly Yearly,quarterly,monthly Min Sum Assured 5*Annual Premium 7*Annual Premium

Types of Funds6(Equity,Equity Gain,Equity Midcap,Debt,Balanced,Cash)

4(Maximiser,Balancer,Protector,Reserver

Benefits Death Benefit Yes Yes Accidential Death Benefit Optional Critical illness Benefit Optional Accidential Pemanent/Partial Disability Benefit Optional Hospital Cash Benefit Optional MahilaGain Rider Benefit Optional(for womem only)

Cash Withdrawl OptionAnytime after payment of 3 full year premiums

Anytime after payment of 3 full year premiums

Min Withdrawl Amt(Rs.) 1000 2000 Min Balance requirement(Rs.) 10000 Redirect Premium Allowed Allowed Free Switches 3/yr 4/yr Min Switching Amt(Rs) 5000 10000 Top Up Choice Of Top Up Yes Yes Min Top Up Amt. - 5000

Percentage of Top up Allocated 100% 100% Flexibility to Increase Sum Assured Yes Yes No of Times Every 3rd year upto 4 times Every 3rd year upto 3 times

Quantum of Increase25% of the SA/Rs.1Lakh whichever lower

25% of the SA/Rs.1Lakh whichever lower

Flexibility to Decrease Sum Assured yes Yes

Flexibility to Decrease Premium NoYes,Max Decrease 20 % of the original premium

Flexibility to Increase Premium Yes yes Additional Allocation of Units No Yes Charges

Allocation All (18000-49,999)(50,000 & above)

1st year 30% 80% 82%2nd year 98% 92.50% 92.50%3rd Year 99% 96% 96%

4 th Year 100 % onwards 96% onwards 96% onwardsBid Offer Spread 5% Transaction Charges 0.5%(equity)0.2%(debt)



ULIP

HDFC Unit Linked Endowment Plan

Joint/Single life Single life Min Annual premium(Rs) 10000 Mode of premium payment Yearly,quarterly,monthly Min Sum Assured 5*Annual Premium

Types of Funds

6(liquid,secure managed,defensive managed,balanced managed,equity managed growth.

Benefits Death Benefit Yes Accidential Death Benefit Optional Critical illness Benefit Optional

Accidential Permanent/Partial Disability Benefit No Hospital Cash Benefit No MahilaGain Rider Benefit No

Cash Withdrawal Option Min Withdrawal Amt(Rs.) 10000 Min Balance requirement(Rs.) 15000 Redirect Premium Allowed Free Switches No Limit Min Switching Amt(Rs) Top Up Choice Of Top Up Yes Min Top Up Amt. 5000

Percentage of Top up Allocated97%(1 & 2 Yr),99%(3 yr Onwards)

Flexibility to Increase Sum Assured No No of Times

Quantum of Increase Flexibility to Decrease Sum Assured Yes

Flexibility to Decrease Premium Flexibility to Increase Premium Additional Allocation of Units no Charges

Allocation upto1,99,999

2,00,000 to 4,99,999

5,00,000 to 9,99,999

10,00,000 & Above

1st year 73% 80% 85% 90%2nd year 73% 80% 85% 90%3rd Year 99% 99% 99% 99%

4 th Year 99% Onwards99% Onwards

99% Onwards

99% Onwards

Bid Offer Spread Transaction Charges

Fund Administration Charges Rs15/month ULIP

Max New York Life Maker Aviva Life Bond



Joint/Single life Single life Joint lifeMin Annual premium(Rs) 15000 25000(one time)Mode of premium payment Min Sum Assured 1,00,000

Types of Funds4(secure,conservative,balanced,growth)

4(with profits, secure,growth,balanced)

Benefits Death Benefit Accidental Death Benefit Optional Critical illness Benefit Optional

Accidental Permanent/Partial Disability Benefit Hospital Cash Benefit MahilaGain Rider Benefit

Cash Withdrawal OptionAnytime after payment of 3 full year premiums Anytime after 5 years

Min Withdrawal Amt(Rs.) 5000Min Balance requirement(Rs.) 10000Redirect Premium Allowed Allowed,2 timesFree Switches 2/yr 1/yrMin Switching Amt(Rs) 5000Top Up Choice Of Top Up yes YesMin Top Up Amt. 10000

Percentage of Top up Allocated Flexibility to Increase Sum Assured No of Times

Quantum of Increase Flexibility to Decrease Sum Assured

Flexibility to Decrease Premium Flexibility to Increase Premium Additional Allocation of Units Yes Charges

Allocation As applicable1st year 75% 2nd year 80% 3rd Year 100%

4 th Year 100%Onwards Bid Offer Spread Transaction Charges 5%

Fund Administration Charges Rs 50/month1.5% Of the initial premium for 1st 5yrs,0.5% subsequently



HDFC Unit Linked Endowment Plan

Other Charges

Investment Charges(as% of fund value) 0.80%

Switching Charges Free Mortality Charges As applicable Top Up Charges Initial Set up Charge(1st year only)

Max New York Life Maker Aviva Life Bond

Other Charges

Investment Charges(as% of fund value) (0.9% to1.25%) 1%

Switching Charges 0.5%of switch Amt/Rs 100 whichever higher

Mortality Charges Top Up Charges

Initial Set up Charge(1st year only)(0.15% to 0.25%)/month

MUTUAL FUNDS

A mutual fund is a pool of money, collected from investors, and is invested according to certain

investment objectives.

A mutual fund is created when investors put their money together. It is therefore a pool of investors’

funds. The most important characteristic of a mutual fund is that the contributors and the beneficiaries

of the fund are the same class of people, namely the investors.

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY


Bajaj Allianz Unit Gain ICICI Prudential Life Time2

Other Charges

Investment Charges(as% of fund value)

1%(Equity,Balanced,Debt & Cash),1.5%(Equity Gain,Equity Midcap)

[including Adm Charges]2.25%(Maximiser),2.25%(Balancer),1.5%(Protector),0.75%(Reserver)

Switching Charges1%of switch Amt/Rs 100 whichever higher Rs. 100

Mortality Charges As applicable As applicableTop Up Charges - 1% of Top upInitial Set up Charge(1st year only)

33


The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the

initiative of the Government of India and Reserve Bank the. The history

of mutual funds in India can be broadly divided into four distinct phases.

First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the

Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve

Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India

(IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched

by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets under

management.

Second Phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life

Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual

Fund was the first non- UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund

(Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of

India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989

while GIC had set up its mutual fund in December 1990. At the end of 1993, the mutual fund industry

had assets under management of Rs.47,004 crores.

Third Phase – 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry,

giving the Indian investors a wider choice of fund families. Also, 1993

was the year in which the first Mutual Fund Regulations came into being, under which all mutual

funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged

with Franklin Templeton) was the first private sector



mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a

more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under

the SEBI (Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual funds setting up

funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of

January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of

India with Rs.44,541 crores of assets under management was way ahead of other mutual funds.

Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into

two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under

management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US

64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of

India, functioning under an administrator and under the rules framed by Government of India and does

not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with

SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI

which had in March 2000 more than Rs.76,000 crores

of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI

Mutual Fund Regulations, and with recent mergers taking place among different private sector funds,

the mutual fund industry has entered its current phase of consolidation and growth. As at the end of

September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

The graph indicates the growth of assets over the years.



Source: Association of Mutual Funds in India (AMFI)

ADVANTAGES OF INVESTING IN MUTUAL FUNDS:

1. Portfolio diversification

2. Professional management

3. Reduction in risk

4. Reduction of transaction costs

5. Liquidity

6. Convenience and flexibility



DISADVANTAGES OF INVESTING IN MUTUAL FUNDS:

1. No control over costs: Since investors do not directly, monitor the fund’s operations they cannot

control the costs effectively. Regulators therefore usually limit the expenses of mutual funds.

2. No tailor made portfolios: Mutual fund portfolios are created and marketed by AMCs into which

investors invest. They cannot create tailor made portfolios.

3. Managing a portfolio of funds: As the numbers of mutual funds increase, in order to tailor a

portfolio for him, an investor may be holding a portfolio of funds, with the costs of monitoring them

and using them, being incurred by him.

TYPES OF MUTUAL FUNDS By Structure

o Open - Ended Schemes o Close - Ended Schemes o Interval Schemes

By Investment Objective o Growth Schemes o Income Schemes o Balanced Schemes o Money Market Schemes

Other Schemes o Tax Saving Schemes o Special Schemes

Index Schemes Sector Specific Scheme

MUTUAL FUNDS – ORGANIZATION



Organization of a Mutal Fund

MUTUAL FUND COMPANIES IN INDIA

The concept of mutual funds in India dates back to the year 1963. The era between 1963 and 1987

marked the existence of only one mutual fund company in India with Rs. 67bn assets under

management (AUM), by the end of its monopoly era, the Unit Trust of India (UTI). By the end of the

80s decade, few other mutual fund companies in India took their position in mutual fund market.

The new entries of mutual fund companies in India were SBI Mutual Fund, Canbank Mutual Fund,

Punjab National Bank Mutual Fund, Indian Bank Mutual Fund, Bank of India Mutual Fund.

The succeeding decade showed a new horizon in Indian mutual fund industry. By the end of 1993, the

total AUM of the industry was Rs. 470.04 bn. The private sector funds started penetrating the fund

families. In the same year the first Mutual Fund Regulations came into existance with re-registering all

mutual funds except UTI. The regulations were further given a revised shape in 1996.

Kothari Pioneer was the first private sector mutual fund company in India which has now merged with

Franklin Templeton. Just after ten years with private sector players penetration, the total assets rose up

to Rs. 1218.05 bn. Today there are 33 mutual fund companies in India.

MAJOR MUTUAL FUND COMPANIES IN INDIA



Birla Sun Life Mutual Fund

Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life Financial. Sun

Life Financial is a golbal organisation evolved in 1871 and is being represented in Canada, the US, the

Philippines, Japan, Indonesia and Bermuda apart from India. Birla Sun Life Mutual Fund follows a

conservative long-term approach to investment. Recently it crossed AUM of Rs. 10,000 crores.

HDFC Mutual Fund

HDFC Mutual Fund was setup on June 30, 2000 with two sponsorers nemely Housing Development

Finance Corporation Limited and Standard Life Investments Limited.

HSBC Mutual Fund

HSBC Mutual Fund was setup on May 27, 2002 with HSBC Securities and Capital Markets (India)

Private Limited as the sponsor. Board of Trustees, HSBC Mutual Fund acts as the Trustee Company of

HSBC Mutual Fund.

Prudential ICICI Mutual Fund

The mutual fund of ICICI is a joint venture with Prudential Plc. of America, one of the largest life

insurance companies in the US of A. Prudential ICICI Mutual Fund was setup on 13th of October,

1993 with two sponsorers, Prudential Plc. and ICICI Ltd. The Trustee Company formed is Prudential

ICICI Trust Ltd. and the AMC is Prudential ICICI Asset Management Company Limited incorporated

on 22nd of June, 1993.

State Bank of India Mutual Fund

State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to launch offshore fund, the

India Magnum Fund with a corpus of Rs. 225 cr. approximately. Today it is the largest Bank

sponsored Mutual Fund in India. They have already launched 35 Schemes out of which 15 have

already yielded handsome returns to investors. State Bank of India Mutual Fund has more than Rs.

5,500 Crores as AUM. Now it has an investor base of over 8 Lakhs spread over 18 schemes.

Tata Mutual Fund



Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act, 1882. The sponsorers for Tata Mutual

Fund are Tata Sons Ltd., and Tata Investment Corporation Ltd. The investment manager is Tata Asset

Management Limited and its Tata Trustee Company Pvt. Limited. Tata Asset Management Limited's

is one of the fastest in the country with more than Rs. 7,703 crores (as on April 30, 2005) of AUM.

Kotak Mahindra Mutual Fund

Kotak Mahindra Asset Management Company (KMAMC) is a subsidiary of KMBL. It is presently

having more than 1, 99,818 investors in its various schemes. KMAMC started its operations in

December 1998. Kotak Mahindra Mutual Fund offers schemes catering to investors with varying risk -

return profiles. It was the first company to launch dedicated gilt scheme investing only in government

securities.

Reliance Mutual Fund

Reliance Mutual Fund (RMF) was established as trust under Indian Trusts Act, 1882. The sponsor of

RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is the Trustee. It was

registered on June 30, 1995 as Reliance Capital Mutual Fund which was changed on March 11, 2004.

Reliance Mutual Fund was formed for launching of various schemes under which units are issued to

the Public with a view to contribute to the capital market and to provide investors the opportunities to

make investments in diversified securities.

Standard Chartered Mutual Fund

Standard Chartered Mutual Fund was set up on March 13, 2000 sponsored by Standard Chartered

Bank. The Trustee is Standard Chartered Trustee Company Pvt. Ltd. Standard Chartered Asset

Management Company Pvt. Ltd. is the AMC which was incorporated with SEBI on December 20,

1999.

Franklin Templeton India Mutual Fund

The group, Frnaklin Templeton Investments is a California (USA) based company with a global AUM

of US$ 409.2 bn. (as of April 30, 2005). It is one of the largest financial services groups in the world.

Investors can buy or sell the Mutual Fund through their financial advisor or through mail or through

their website. They have Open end Diversified Equity schemes, Open end Sector Equity schemes,

Open end Hybrid schemes, Open end Tax Saving schemes, Open end Income and Liquid schemes,

closed end Income schemes and Open end Fund of Funds schemes to offer.



Morgan Stanley Mutual Fund India

Morgan Stanley is a worldwide financial services company and it’s leading in the market in securities,

investment management and credit services. Morgan Stanley Investment Management (MISM) was

established in the year 1975. It provides customized asset management services and products to

governments, corporations, pension funds and non-profit organizations. Its services are also extended

to high net worth individuals and retail investors. In India it is known as Morgan Stanley Investment

Management Private Limited (MSIM India) and its AMC is Morgan Stanley Mutual Fund (MSMF).

This is the first close end diversified equity scheme serving the needs of Indian retail investors

focussing on a long-term capital appreciation.

Chola Mutual Fund

Chola Mutual Fund under the sponsorship of Cholamandalam Investment & Finance Company Ltd.

was setup on January 3, 1997. Cholamandalam Trustee Co. Ltd. is the Trustee Company and AMC is

Cholamandalam AMC Limited.

LIC Mutual Fund

Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989. It contributed Rs. 2

Crores towards the corpus of the Fund. LIC Mutual Fund was constituted as a Trust in accordance

with the provisions of the Indian Trust Act, 1882. The Company started its business on 29th April

1994. The Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog Asset Management

Company Ltd as the Investment Managers for LIC Mutual Fund.

FUTURE OF MUTUAL FUNDS IN INDIA By December 2004, Indian mutual fund industry reached Rs 1, 50,537 crore. It is estimated that by

2010 March-end, the total assets of all scheduled commercial banks should be Rs 40, 90,000 crore.

The annual composite rate of growth is expected 13.4% during the rest of the decade. In the last 5

years we have seen annual growth rate of 9%. According to the current growth rate, by year 2010,

mutual fund assets will be double.

SOME FACTS FOR THE GROWTH OF MUTUAL FUNDS IN INDIA

100% growth in the last 6 years.



Number of foreign AMC’s is in the queue to enter the Indian markets.

Our saving rate is over 23%, highest in the world. Only channelizing these savings in mutual

funds sector is required.

We have approximately 29 mutual funds which is much less than US having more than 800.

There is a big scope for expansion.

'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are concentrating

on the 'A' class cities. Soon they will find scope in the growing cities.

Mutual fund can penetrate rurals like the Indian insurance industry with simple and limited

products.

SEBI allowing the MF's to launch commodity mutual funds.

Emphasis on better corporate governance.

Trying to curb the late trading practices.

Introduction of Financial Planners who can provide need based advice.

Category Equity ELSS



Inception Date 1yr(%) 3yr(%) SI(%)

Top 10 Holdings(%)

HDFC Tax Saver-G 31-Mar-96 77.68 82.45 45.79 56.1PruICICI Taxplan-G 9-Aug-99 67.39 86.19 37.22 39.85Tata Tax Saving 31-Mar-96 52.21 70.47 30.25 35.12 Equity Index HDFC Index Sensex plus G Fund 10-Jul-02 56.88 50.26 41.64 57.53Prudential ICICI index 25-Feb-02 55.19 44.49 28.6 67.62Birla Index Fund-G 17-Sep-02 50.16 43.07 40.24 28.63 Equity Large Cap HDFC Equity Fund-G 24-Dec-94 76.35 72.63 25.55 66.42Tata pure Equity Fund 7-May-98 63.76 75.04 36.42 41.85HDFC Top 200-G 31-Aug-96 69.13 71.88 28.72 43.2DSP Merrill Lynch Oppurtunities Fund-G 10-Apr-00 65.06 73.27 29.34 34.87 Eqiuty Mid Cap Reliance Growth 7-Oct-05 75.78 90.25 34.01 47.16Sundram Select Midcap 19-Jul-02 77.5 84.07 70.5 30.85HDFC Capital Builder Fund 31-Dec-03 55.56 73.27 15.94 42.95Birla Mid Cap Fund-G 1-Oct-02 60.09 69.12 62.44 39.32 Balanced HDFC Prudence Fund 31-Jan-94 51.8 53.92 23.24 32.15Tata Balanced Fund 7-Oct-95 39.29 46.68 18.85 19.68

DSP Merrill Lynch Balanced-Fund14-May-99 42.76 45.76 18.84 22.15

Prudential ICICI Balanced 7-Oct-99 45.78 43.91 18.2 22.97 Liquid DSP Merrill Lynch Liquidity Fund RP-G 9-Mar-98 5.64 5.18 6.92 HDFC Cash Management Fund SP-G 19-Nov-99 5.55 5.12 6.08 HSBC Cash Fund-Regular-G 3-Dec-02 5.28 2.02 5.07 Tempelton India Treasury Management A/C-G 29-Apr-98 5.15 5 7.25 MIP Tata Young Citizens Fund 14-Oct-95 30.44 31.6 17.26 FT India Monthly Income Plan 28-Sep-00 10.81 12.61 12.7 Prudential ICICI Monthly Income Plan 14-Oct-00 12.23 10.73 10.95 Tempelton Monthly Income Plan 7-Feb-00 9.9 11.16 10.57



Category Equity ELSS

Expense Ratio Corpus(Crs) RAR

Standard Deviation

HDFC Tax Saver-G 2.43 323.28 3.59 6.66PruICICI Taxplan-G 2.36 280.96 3.52 8.07Tata Tax Saving 2.49 106.27 2.91 6.86 Equity Index HDFC Index Sensex plus G Fund 1.5 5.82 2.4 6.12Prudential ICICI index 1.25 2.94 2.08 6.98Birla Index Fund-G 1.49 4.31 2 6.72 Equity Large Cap HDFC Equity Fund-G 1.95 2657.9 3.18 6.46Tata pure Equity Fund 2.4 265.48 3.1 6.87HDFC Top 200-G 2.18 1003.38 3.06 6.97DSP Merrill Lynch Oppurtunities Fund-G 2.2 925.96 3.05 Eqiuty Mid Cap Reliance Growth 1.96 2496.41 3.74 7.06Sundram Select Midcap 2.32 474.05 3.55 7.89HDFC Capital Builder Fund 2.06 952.82 3.18 6.37Birla Mid Cap Fund-G 2.42 152.27 3.06 6.17 Balanced HDFC Prudence Fund 2.01 1643.57 2.58 4.46Tata Balanced Fund 2.46 137.29 2.22 4.95DSP Merrill Lynch Balanced-Fund 2.04 312.11 2.19 Prudential ICICI Balanced 2.28 321.11 2.14 4.82 Liquid DSP Merrill Lynch Liquidity Fund RP-G 0.45 4476.52 0.32 HDFC Cash Management Fund SP-G 0.45 2369.69 0.31 0.01HSBC Cash Fund-Regular-G 0.7 2663.42 0.31 0.01Tempelton India Treasury Management A/C-G 0.75 1780.26 0.3 0.01 MIP Tata Young Citizens Fund 2.46 138.49 1.63 3.53FT India Monthly Income Plan 1.83 702.54 0.71 0.48Prudential ICICI Monthly Income Plan 1.8 463.07 0.64 0.61Tempelton Monthly Income Plan 1.9 142.63 0.63 0.38



Category Equity ELSS Alpha Beta R-squared Benchmark IndexHDFC Tax Saver-G 2.31 0.88 0.79 S&P 500PruICICI Taxplan-G 2.37 0.98 0.65 S&P Cnx NiftyTata Tax Saving 1.8 0.86 0.71 Sensex Equity Index HDFC Index Sensex plus G Fund 0.58 0.9 0.98 SensexPrudential ICICI index -0.06 1.03 1 S&P Cnx NiftyBirla Index Fund-G -0.04 0.99 0.99 S&P Cnx Nifty Equity Large Cap HDFC Equity Fund-G 1.42 0.9 0.88 S&P 500Tata pure Equity Fund 1.7 0.95 0.86 SensexHDFC Top 200-G 1.34 0.9 0.84 BSE 200DSP Merrill Lynch Oppurtunities Fund-G Eqiuty Mid Cap Reliance Growth 2.63 0.89 0.72 BSE 100Sundram Select Midcap 2.82 0.86 0.53 BSE midcapHDFC Capital Builder Fund 2.19 0.78 0.67 S&P 500Birla Mid Cap Fund-G 2.17 0.73 0.63 CNX Midcap Balanced HDFC Prudence Fund 1.79 1.03 0.66 Crisil BalancedTata Balanced Fund 1.62 1.17 0.69 Crisil BalancedDSP Merrill Lynch Balanced-Fund Prudential ICICI Balanced 1.19 1.23 0.8 Crisil Balanced Liquid DSP Merrill Lynch Liquidity Fund RP-G HDFC Cash Management Fund SP-G 0.02 0 0 Crisil LiquidHSBC Cash Fund-Regular-G 0.01 0.05 0.18 Crisil LiquidTempelton India Treasury Management A/C-G 0.01 0.08 0.26 Crisil Liquid MIP Tata Young Citizens Fund 2.38 0.72 0.1 Crisil BalancedFT India Monthly Income Plan 0.15 0.05 0.01 Crisil MIP BlPrudential ICICI Monthly Income Plan 0.26 0.07 0.01 Crisil MIP BlTempelton Monthly Income Plan 0.13 0.04 0.01 Crisil MIP Bl

ULIP V/S MUTUAL FUNDS



Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual funds in terms

of their structure and functioning. As is the case with mutual funds, investors in ULIPs is allotted units

by the insurance company and a net asset value (NAV) is declared for the same on a daily basis.

Similarly ULIP investors have the option of investing across various schemes similar to the ones

found in the mutual funds domain, i.e. diversified equity funds, balanced funds and debt funds to name

a few. Generally speaking, ULIPs can be termed as mutual fund schemes with an insurance

component.

However it should not be construed that barring the insurance element there is nothing differentiating

mutual funds from ULIPs.Despite the seemingly comparable structures there are various factors

wherein the two differ.

1. MODE OF INVESTMENT/ INVESTMENT AMOUNTS

Mutual fund investors have the option of either making lump sum investments or investing using the

systematic investment plan (SIP) route which entails commitments over longer time horizons. The

minimum investment amounts are laid out by the fund house.

ULIP investors also have the choice of investing in a lump sum (single premium) or using the

conventional route, i.e. making premium payments on an annual, half-yearly, quarterly or monthly

basis. In ULIPs, determining the premium paid is often the starting point for the investment activity.

This is in stark contrast to conventional insurance plans where the sum assured is the starting point and

premiums to be paid are determined thereafter.

ULIP investors also have the flexibility to alter the premium amounts during the policy's tenure. For

example an individual with access to surplus funds can enhance the contribution thereby ensuring that

his surplus funds are gainfully invested; conversely an individual faced with a liquidity crunch has the

option of paying a lower amount (the difference being adjusted in the accumulated value of his ULIP).

The freedom to modify premium payments at one's convenience clearly gives ULIP investors an edge

over their mutual fund counterparts.



2. EXPENSES

In mutual fund investments, expenses charged for various activities like fund management, sales and

marketing, administration among others are subject to pre-determined upper limits as prescribed by the

Securities and Exchange Board of India.

For example equity-oriented funds can charge their investors a maximum of 2.5% per annum on a

recurring basis for all their expenses; any expense above the prescribed limit is borne by the fund

house and not the investors.

Similarly funds also charge their investors entry and exit loads (in most cases, either is applicable).

Entry loads are charged at the timing of making an investment while the exit load is charged at the

time of sale.

Insurance companies have a free hand in levying expenses on their ULIP products with no upper limits

being prescribed by the regulator, i.e. the Insurance Regulatory and Development Authority. This

explains the complex and at times 'unwieldy' expense structures on ULIP offerings. The only restraint

placed is that insurers are required to notify the regulator of all the expenses that will be charged on

their ULIP offerings.

Expenses can have far-reaching consequences on investors since higher expenses translate into lower

amounts being invested and a smaller corpus being accumulated.

3. PORTFOLIO DISCLOSURE

Mutual fund houses are required to statutorily declare their portfolios on a quarterly basis, albeit most

fund houses do so on a monthly basis. Investors get the opportunity to see where their monies are

being invested and how they have been managed by studying the portfolio.

There is lack of consensus on whether ULIPs are required to disclose their portfolios. During our

interactions with leading insurers we came across divergent views on this issue.

While one school of thought believes that disclosing portfolios on a quarterly basis is mandatory, the

other believes that there is no legal obligation to do so and that insurers are required to disclose their

portfolios only on demand.



Some insurance companies do declare their portfolios on a monthly/quarterly basis. However the lack

of transparency in ULIP investments could be a cause for concern considering that the amount

invested in insurance policies is essentially meant to provide for contingencies and for long-term needs

like retirement; regular portfolio disclosures on the other hand can enable investors to make timely

investment decisions.

4. FLEXIBILITY IN ALTERING THE ASSET ALLOCATION

As was stated earlier, offerings in both the mutual funds segment and ULIPs segment are largely

comparable. For example plans that invest their entire corpus in equities (diversified equity funds), a

60:40 allotment in equity and debt instruments (balanced funds) and those investing only in debt

instruments (debt funds) can be found in both ULIPs and mutual funds.

If a mutual fund investor in a diversified equity fund wishes to shift his corpus into a debt from the

same fund house, he could have to bear an exit load and/or entry load.

On the other hand most insurance companies permit their ULIP inventors to shift investments across

various plans/asset classes either at a nominal or no cost (usually, a couple of switches are allowed

free of charge every year and a cost has to be borne for additional switches).

Effectively the ULIP investor is given the option to invest across asset classes as per his convenience

in a cost-effective manner. This can prove to be very useful for investors, for example in a bull market

when the ULIP investor's equity component has appreciated, he can book profits by simply

transferring the requisite amount to a debt-oriented plan.

5. TAX BENEFITS

ULIP investments qualify for deductions under Section 80C of the Income Tax Act. This holds good,

irrespective of the nature of the plan chosen by the investor. On the other hand in the mutual funds

domain, only investments in tax-saving funds (also referred to as equity-linked savings schemes) are

eligible for Section 80C benefits.

Maturity proceeds from ULIPs are tax free. In case of equity-oriented funds (for example diversified

equity funds, balanced funds), if the investments are held for a period over 12 months, the gains are

tax free; conversely investments sold within a 12-month period attract short-term capital gains tax @

10%.



Similarly, debt-oriented funds attract a long-term capital gains tax @ 10%, while a short-term capital

gain is taxed at the investor's marginal tax rate.Despite the seemingly similar structures evidently both

mutual funds and ULIPs have their unique set of advantages to offer. As always, it is vital for

investors to be aware of the nuances in both offerings and make informed decisions.

IN A NUTSHELL:

ULIPs Mutual Funds

Investment amounts

Determined by the investor and can be modified as well

Minimum investment amounts are determined by the fund house

Expenses

No upper limits, expenses determined by the insurance company

Upper limits for expenses chargeable to investors have been set by the regulator

Portfolio disclosure Not mandatory* Quarterly disclosures are mandatoryModifying asset allocation

Generally permitted for free or at a nominal cost

Entry/exit loads have to be borne by the investor

Tax benefits

Section 80C benefits are available on all ULIP investments

Section 80C benefits are available only on investments in tax-saving funds



WHERE TO INVEST

Whether to invest in ULIP or to invest in MUTUAL FUND depends upon customer’s future financial

goals & present investments.

1. If an investor is looking for an insurance policy and is ready to take moderate risks, he must

opt for the ULIP plan. A term of 10 years or less is advisable only when one needs an

insurance cover, otherwise if a customer wants to enter a horizon of 11-30 years, then ULIP

scores handsomely over Mutual funds.

2. ULIP is not meant for an irregular investor, as under a ULIP policy an investor has to make

compulsory savings. An investor has to save regularly and invest through the highs and lows in

the market. So, for the investors who generally do not save regularly and invest only when

market is high and disinvest when the market is low, mutual funds are the best option.

3. The investors who want to invest only to enjoy short term gains and want to switch and

withdraw their amounts frequently are not advised to invest in ULIP as there is usually a lock

in period of 3 or 4 years involved in ULIP.Such investors should go in for Mutual funds where

they can switch anytime they want to.

4. For low risk taking investors mutual funds can be the best option as the risk can be diversified

as there exists huge variety of specialized schemes under mutual funds which can be tailored

according to all the possible requirements and the needs of the investor. Such options are not

available under the ULIP scheme.

5. The service charges such as fund management charges etc. are usually low in the case of ULIP

as compared to mutual funds. Though the initial charges under ULIP are high but still the

cumulative effect comes out to be less than that of Mutual funds, thus an investor who doesn’t

want to shell out more on the expenses and wants safe investment should opt for ULIP as

compared to Mutual funds.



SURVEYAs a part of our project, in order to know the perceptions of the investors about the investment

schemes basically ULIP and MUTUAL FUNDS, a survey was being conducted by us in Delhi NCR

region.

OBJECTIVE OF THE SURVEY: To know the existing investment pattern among different age groups and different occupations.

To know the present portfolio of the investors, their perceptions about different investment

schemes, their investment concerns, their present returns, and their future expectations from

different investment schemes.

To know the popularity and acceptability of the two products i.e. ULIP and MUTUAL FUNDS

(of Standard Chartered bank specially) among the above mentioned categories.

To know the potential customers for the investment schemes: ULIP and Mutual Funds of

Standard Chartered bank.

To analyze which set of customers should invest in ULIP and Mutual Funds as per their needs

identified.

DATA COLLECTION METHOD

The basic objective of the project was to compare the products offered by Standard Chartered namely

ULIP and Mutual Funds. Both primary and secondary data has been used in order to analyze these

products.

The primary data was obtained through observation, direct communication with the people and filling

up of questionnaires.

The secondary data was collected through the

Internet

Journals and newspapers



DATA COLLECTION INSTRUMENT

A semi structured kind of questionnaire was designed which contained both open- ended and multiple

choice questions.

The questionnaire designed was to provide dual information sharing type, it is seriously undertaken

that anyone who is undergoing the process, should find his interest or else he might show disinterest

towards the programme. The questionnaire was equally important both to the customers as well as to

the bank to draw out its prospects.

The questionnaire was designed to meet all the objectives of the survey fully and helped us in knowing

the needs of the customers and the market value and image of the bank from those who already had an

experience with the Standard Chartered bank. Moreover, it helped us to give suggestions to the bank

so as to cater customers’ needs in a much better way and hence broaden its customer base.

RESEARCH METHODOLOGY

The survey process involved two phases: First phase included identification and selection of the target

audience to be studied and to determine the parameters on which respondents will justify their

preferences. The audience were targeted and analyzed basically on the basis of two important

parameters: Age and Occupations. Demographical information was also taken in order to know the

investment patterns according to the location, age, gender etc. A questionnaire was designed to collect

the needed information from the respondents. (See the annexure)

In the second phase data was collected through questionnaire from more than 100 respondents within

DELHI- NCR region. Results were viewed cautiously as sample was from a specific population.

The responses that were generated during this exercise were converted in the form of percentages to

have a comparative outlook, as the numbers itself cannot explain the true picture. These percentages

were then represented through the simple tools like bar graphs, pie charts.



ANALYSIS

FINDINGS:

OCCUPATION

To begin with the nature of occupation was divided broadly into 2 categories:

1. Business

2. Services

The study shows:

Almost 80% of people were into service and 20% were into business, either proprietorship or

partnership.

BUSINESS

The sample consisted of 50 % having income between Rs. 2 lakh to Rs. 5 lakh. 33% had income

greater than Rs. 5 lakh. It can be seen that a large amount of people in business are investing (72%)

and are insured (83%). But the investments are basically in fixed deposits and share markets. There

is some lack of awareness of the products like ULIP and Mutual funds as can be seen that only 16% of

people are holding ULIP policy and 19 % are having Mutual Funds. The prime concern of this

segment for investing is to build cash reserves and purchase assets.

This class (79%) considers High Returns as very important investment factor while only 20 %

Liquidity with the same importance.

In the ULIPs we find LIC to be dominating with 50 % of the market share, ICICI is second most

preferred company with 17 % share. 83% of the people investing in ULIP invest in Equity Type Fund,

indicating their preference for high returns as well as well as Risk Tolerance.

In Mutual Funds we find that of the 19 % people investing in Mutual Funds, 34 % have invested with

Reliance with ICICI as second preference.



SERVICE

The sample consisted of 61 % having income between Rs. 2 lakh to Rs. 5 lakh. 28% had income

greater than Rs. 5 lakh.

It can be seen that 68 % people in services are investing and only 64% people are having their life

insured. In this segment the main concern of investing is to build cash reserves. The majority of their

portfolio consists of Mutual Funds (23%) & Fixed Deposits (23%). This segment is comparatively

better aware of ULIPs.This Risk Tolerance is also low as only 18% invest in share markets.

This class (60%) considers High Returns as very important investment factor while only 20 % Tax

free proceeds with the same importance.

In the ULIPs we find LIC & ICICI to be dominating the market with 36% share each. Bajaj Allianz

has 14 % presence. We find the preference for Equity Type Fund declines to 54 % & for balanced

increase to 34 % when compared with Business class. 14 % people also invest in cash fund, indicating

their preference for low Risk Tolerance.

In Mutual Funds we find that of the 23 % people investing in Mutual Funds, 23 % have invested with

Franklin. ICICI & Reliance with 16 % each come as second preference.

AGE

The analysis was also done on the basis of age which was being broadly classified into 4 categories:

1. 18-25 years

2. 25-35 years

3. 35-45 years

4. 45 and above

The study shows:



AGE 18-25

The sample consisted of 58 % people having income between Rs. 2 lakh to Rs. 5 lakh. 25% had

income greater than Rs. 5 lakh. Majority (74%) belonged to salaried class. It can be seen that only

54% people are investing. We find that majority of people of this age group (58%) do not have Life

Insurance cover. The investments are basically in Mutual funds (35%) & share markets (24%).

This indicates high Risk Tolerance for this age group. The prime concern of this segment for investing

is to purchase assets.

This class considers High Returns (79%) & Flexibility (60%) as very important investment factors

while only 21 % consider Tax Free proceeds with the same importance.

In the ULIPs we find ICICI to be dominating with 50 % of the market share, LIC is second most

preferred company. Almost all investing in ULIP invest in Equity Type Fund, indicating their

preference for high returns as well as well as Risk Tolerance.

In Mutual Funds we find that of the 35% people investing in Mutual Funds, Reliance & Franklin are

their common choice.[No. of observations:24]

AGE 25-35


income greater than Rs. 5 lakh. Majority (70%) belonged to salaried class. It can be seen that majority

(70%) people are investing with Building Cash reserves & Funding for children being their main

concerns. We find that majority of people of this age group (71%) have Life Insurance cover. The

investments are basically in ULIP (27%) & Fixed Deposits (23%).

This class considers High Returns, Safety & Liquidity as important investment factors with less

importance given to Tax Free proceeds & Flexibility.

In the ULIPs we find LIC (33 %) & ICICI (29%) to be dominating with Bajaj Allianz having 19%

market share. Majority (60%) of people investing in ULIP invest in Equity Type Fund, indicating their

preference for high returns as well as well as Risk Tolerance.

In Mutual Funds we find that of the 21% people investing in Mutual Funds, Reliance & Fidelity are

their common choice.[No. of observations:35]



AGE 35-45


income greater than Rs. 5 lakh. Majority (60%) belonged to salaried class. It can be seen that 87%

people are investing. We find that majority of people of this age group (90%) have Life Insurance

cover. The investments are basically in Mutual funds (22%) & ULIP (31%). This indicates their

high awareness regarding these two. The prime concern of this segment for investing is to build Cash

reserves & Funding for their children.

This class considers safety (70%) & High Returns (50%) as very important investment factors while

only 10 % consider Flexibility with the same importance.

In the ULIPs we find ICICI, UTI & LIC to be dominating the market. We find that there is a shift to

Balanced fund from Equity fund indicating more preference for less risk as the age increases.

In Mutual Funds we find, Reliance & ICICI to be the common choice.[No. of observations:10]

AGE 45 AND ABOVE


income greater than Rs. 5 lakh. 33% worked in Government jobs & 29% belonged to salaried class. It

can be seen that this is an investing segment and is mostly insurance covered.

The investments are basically in Government securities & Fixed Deposits. The product ULIP also

seems to be quite popular in this segment as quite a large number of people are holding the ULIP

policy. The prime concern of this segment for investing is to build Cash reserves.

This class considers predominantly safety (82%) as very important investment factor while only 25 %

consider Liquidity with the same importance. In the ULIPs we find, UTI & LIC to be dominating the

market. We find that majority are investing in Balanced fund In Mutual Funds we find, presence of

many companies.

[No. of observations: 24]



RECOMMENDATIONS:

OCCUPATION

The business segment can be targeted for ULIP (as an investment product) and Mutual funds as

these products are offering high returns and safety which is the major concern of this segment. The

need is to promote ULIP as a better product than the F.D’s and mutual fund can be promoted in

lieu of the share markets.

The service class can be a potential customer both for the ULIP and Mutual Funds. ULIP needs to

be promoted as an insurance product and can be sold emphasizing the importance and need of

insurance. This segment is already investing into Mutual funds, thus the bank needs to promote its

mutual funds by promising the customers higher returns and safety than the others.

AGE

The segment (18-25) can be a potential customer segment for the bank as most of the people

are falling in the income group of Rs. 2-5 lakhs.The company can target this segment by

offering its ULIP product both as an insurance and investment product, which can provide high

returns as the investments and provide the insurance cover too, as a large segment doesn’t have

an insurance cover. The return on investments (ULIP and Mutual funds) is mostly between the

10% -20% brackets so products offering returns higher than this band can be offered to this

category as 24% of people under this category are looking for building cash reserves and

earning higher returns. The need is to make this segment aware of the products like ULIP

(which is promising return of 20-25% p.a.) and tap as many customers as possible.

In order to tap the 25-35 years segment ULIP can be promoted as an investment option rather

than an insurance product. Mutual funds need to be promoted as only a small segment is

investing in mutual funds. Mutual funds and ULIP both can be the best investment option for

this segment as the basic reason for investment as can be seen from above is building Cash

reserves and funding for children and both these products are offering high returns.



As the segment 35-45 years is an investing and risk taking segment, Mutual funds promising

higher returns can be promoted in this segment. The product ULIP is also highly acceptable by

this segment, so both of these products can be promoted as a best investment options promising

high returns and low risks.

Thus this segment can mainly be targeted for the Mutual funds as can be seen that very few

people are investing M.Fs. this is because this segment consists of risk averters as this segment

prefers Fixed Deposits and government securities than any other investment product as safety

is the most important factor which is being considered while investing by this segment, thus

product like ULIP and Mutual Funds need to be promoted as safe investments and better than

F.D’s only then this segment can be tapped.

CONCLUSION

The Standard Chartered Bank has a global presence and it has acquired good recognition in India also.

This can be attributed to the fact that the products and services being offered by the bank have been

carefully developed, over the years, after studying the nitty gritties of the Indian market.

The bank offers a wide range of products and services to meet the requirements of varied customers,

as customer satisfaction is their prime concern. They aim at making banking convenient for their

customers by offering services like Internet banking, mobile banking, doorstep banking, ATM Service

and so on. Each service / product, offered by the blank is designed for a particular market segment.

Moreover, getting along with Standard Chartered is a status symbol for people and really feels proud

to be with Standard Chartered.

The main focus of the bank in the present scenario is to target only the elite group of customers and

that’s why the bank is charging high slightly high service charges and maintenance of Rs. 10000 as

AQB in savings account. But the need of the hour is to shift the focus to the middle class in order to

meet the competition existing in this industry and expand the customer base.

The other financial products offered by the bank i.e. ULIP and Mutual Funds, for such products the

bank needs to target the right segment as per their needs and try to offer the best of their services in

order to achieve loyal and satisfied customers.



BIBLIOGRAPHY

BOOKS:

1. Indian Mutual Funds Handbook by Sankaran S.

2. Investment policy and performance of Mutual Funds by Barua 2003.

3. Mutual funds in India by Sadhak, 2005.

4. Money Simplified, Sept 2005.

5. Business Research Methods by Schindler & cooper, 2003.

WEBSITES:

1. http://www.iloveindia.com/finance/bank/index.html

2. www.valueresearchonline.com

3. http://www.rediff.com/money/2005/oct/18perfin.htm

4. www.standardchartered.com

5. www.icicibank.com

6. www.abnamro.com

7. www.hsbc.com

8. www.kotak.com


http://www.kotak.com/

http://www.hsbc.com/

http://www.abnamro.com/

http://www.icicibank.com/

http://www.standardchartered.com/

http://www.rediff.com/money/2005/oct/18perfin.htm

http://www.valueresearchonline.com/

http://www.iloveindia.com/finance/bank/index.html


ANNEXURE

AGE 18-25

Income No.As a % of

totalabove5 6 0.25b/w 2-5 14 0.58below 2 4 0.17

24 1

INCOME

25%

58%

17%above5 b/ w 2-5 below 2

Life Insurance Cover No.

As a % of total

Yes 10 0.42No 14 0.58

24 1

LIFE INSURANCE COVER

42%

58%

YesNo



Invest or Not No.As a % of

totalYes 13 0.54No 11 0.46

24 1

INVEST OR NOT

54%46% Yes

No

Reasons for Investment No.

As a % of total

Asset Purchase 8 0.470588235Building Cash

Reserves 4 0.235294118Retirement 3 0.176470588

Others 2 0.11764705917 1

REASONS FOR INVESTMENTS

46%

24%

18%12%

Asset Purchase

Building CashReservesRetirement

Others



PORTFOLIO No.As a % of

totalMutual Funds 10 0.344827586Fixed

Deposits 5 0.172413793ULIP 4 0.137931034Share

markets 7 0.24137931Others 3 0.103448276

29 1

PORTFOLIO

35%

17%14%

24%10% Mutual Funds

Fixed DepositsULIPShare marketsOthers

ULIP Scheme No.

As a % of total

ICICI 2 0.5LIC 1 0.25

AVIVA 1 0.254 1

ULIP SCHEME

ICICI50%

LIC25%

AVIVA25% ICICI

LICAVIVA



M.F Co. No.As a % of total

Franklin 4 0.25ICICI 2 0.125

Fidelity 2 0.125Reliance 4 0.25Others 4 0.25

16 1

MUTUAL FUNDS

Franklin24%

ICICI13%Reliance

25%

Others25%

Fidelity13%

FranklinICICIFidelityRelianceOthers

RETURNS ON M.F. No.As %

of total10%-20% 5 0.520%-30% 3 0.3above 30% 2 0.2

10 1

RETURNS ON M.F.

50%30%

20%10%-20%20%-30%above 30%



AGE 25-35

Income No. As a % of totalabove5 11 0.314285714b/w 2-5 19 0.542857143below 2 5 0.142857143 35 1

Income

31%

55%


Invest or Not No.As a % of total

Yes 26 0.74285714No 9 0.25714286 0 35 1

INVEST OR NOT

74%

26%YesNo



Life Insurance Cover No.

As a % of total

Yes 25 0.71428571No 10 0.28571429 0 35 1

LIFE INSURANCE COVER

71%

29%YesNo

Reasons for Investment No. As a % of totalIncome replacement 4 0.090909091Asset Purchase 6 0.136363636Building Cash Reserves 16 0.363636364Retirement 7 0.159090909Funding for Children 9 0.204545455Others 2 0.045454545 44 1


REASONS FOR INVESTMENT

14%14%

36%16%

20%5%

IncomereplacementAsset Purchase


Funding forChildrenOthers

65


PORTFOLIO No. As a % of totalMutual Funds 13 0.213114754Fixed Deposits 14 0.229508197ULIP 16 0.262295082Share markets 10 0.163934426Others 8 0.131147541 61 1

PORTFOLIO

21%

23%27%

16%13% Mutual Funds

Fixed DepositsULIPShare marketsOthers

ULIP Scheme No.

As a % of total

ICICI 6 0.285714286LIC 7 0.333333333Bajaj Allianz 4 0.19047619Others 4 0.19047619 21 1

ULIP Scheme

29%

33%19%

19% ICICILICBajaj AllianzOthers

Type of Fund No.

As a % of Total

Equity 13 0.619047619Balanced 3 0.142857143Cash 5 0.238095238 21 1



Type of Fund

62%14%

24% EquityBalancedCash

Returns No.As a % of Total

Below 10% 2 0.12510%-20% 7 0.437520%-30% 3 0.1875Above 30% 4 0.25 16 1

Returns

13%

43%19%

25% Below 10%10%-20%20%-30%Above 30%

M.F Co. No.As a % of total

Franklin 3 0.115384615ICICI 3 0.115384615Fidelity 5 0.192307692Reliance 5 0.192307692HDFC 3 0.115384615Others 7 0.269230769



M.F Co.

12%12%

19%19%

12%

26%FranklinICICIFidelityRelianceHDFCOthers

RETURNS ON M.F. No. As % of total10%-20% 3 0.23076923120%-30% 4 0.307692308above 30% 6 0.461538462 13 1

RETURNS ON M.F.

23%

31%

46%10%-20%20%-30%above 30%



AGE 35- 45

Invest No 1Yes 7

Invest

13%

87%

NoYes

Life Insurance No 1Yes 9

Life Insurance

10%

90%

NoYes

Investment reasonsAsset Purchase 2Building Cash reserves 6Funding for children 4Income replacement 2Retirement 2



Investment Reasons

13%

37%24%

13%

13%

Asset Purchase

Building CashreservesFunding forchildrenIncomereplacementRetirement

Most Important High returns 5Safety 7Liquidity 4Tax free proceeds 3Flexibility 1

Most Important

012345678

High

retu

rns

Safe

ty

Liqu

idity

Tax f

ree p

roce

eds

Flex

ibili

ty

Series1

Portfolio Government securities 4Mutual funds 5ULIP 7



Share Markets 3Fixed Deposits 1Bonds 3

Portfolio

17%

22%

31%

13%

4%

13%

GovernmentsecuritiesMutual funds

ULIP

Share Markets

Fixed Deposits

Bonds

ULIP SCHEME ICICI 2LIC 3UTI 2Others 0

ULIP SCHEME

29%

42%

29%0% ICICI

LICUTIOthers

Returns Below 10% 110%-20% 420%-30% 1Above 30 % 1



Return in ULIP

14%

58%

14%14% Below 10%

10%-20%20%-30%Above 30 %

MUTUAL FUND CO. Reliance 2ICICI 2HDFC 1SBI 1GLSS 1

Mutual Fund Co.

29%

29%14%

14%14% Reliance

ICICIHDFCSBIGLSS

45 AND ABOVE

Life InsuranceNo 4Yes 20


Life Insurance

17%

83%

NoYes

72


Invest No 7Yes 17

Portfolio Government securities 8Mutual funds 5ULIP 9Share Markets 6Fixed Deposits 13Bonds 5

Portfolio

17%

11%

20%13%

28%

11%

GovernmentsecuritiesMutual funds

ULIP

Share Markets

Fixed Deposits

Bonds


Invest

29%

71%

NoYes

73


Investment reasonsAsset Purchase 3Building Cash reserves 11Funding for children 6Income replacement 1Retirement 5

Investment Reasons

12%

42%23%

4%

19%

Asset Purchase

Building CashreservesFunding forchildrenIncomereplacementRetirement

Most ImportantHigh returns 12Safety 16Liquidity 6Tax free proceeds 10Flexibility 6

Most Important

05

101520

High

retu

rns

Safe

ty

Liqu

idity

Tax f

ree

proc

eeds

Flex

ibili

ty

Series1



ULIP SCHEME ICICI 1LIC 4UTI 4Aviva 2

FUNDS Equity 2Balanced 7Debt 0Cash 0

Returns Below 10% 210%-20% 6Above 30 % 1


ULIP SCHEME

9%

37%36%

18% ICICILICUTIAviva

FUNDS

22%

78%

0%

0%

EquityBalancedDebtCash

75


Returns in ULIP

22%

67%

11%Below 10%10%-20%Above 30 %

MUTUAL FUND CO. Reliance 1ICICI 2HDFC 1Franklin 1Fidelity 1UTI 1IDBI 1

Mutual Fund Co.

12%

24%

12%13%

13%

13%

13%

RelianceICICIHDFCFranklinFidelityUTIIDBI



BUSINESS

INCOME No.As a % of Total

Below 2 3 0.16667b/w 2-5 9 0.5Above 5 6 0.33333 18 1

INCOME

17%

50%

33% Below 2b/ w 2-5Above 5

Invest or Not No.As a % of Total

Yes 13 0.72222No 5 0.27778 0 18 1

Invest or Not

72%

28%YesNo

Life Insurance No. As a %



Cover of TotalYes 15 0.83333No 3 0.16667

018 1

Life Insurance Cover

83%

17%

YesNo


As a % of total

Asset Purchase 7 0.26923Building Cash Reserves 8 0.30769Retirement 3 0.11538Others 8 0.30769 26 1

Reasons for Investment

27%

30%12%

31%

Asset Purchase


Others

Investment Very Import Somewhat Less



Factors Important ant Important ImportantHigh returns 10 1 1 1Safety 8 4 1 0Liquidity 3 6 3 1Tax free proceeds 6 3 2 2Flexibility 5 3 3 2

Investment Factors Rating

0%20%40%60%80%

100%

Hig

hre

turn

s

Saf

ety

Liqu

idity

Tax

free

proc

eeds

Flex

ibilit

y

Less Important

SomewhatImportantImportant

Very Imporant

PORTFOLIO No.

As a % of total

Mutual Funds 60.187

5

Fixed Deposits 70.218

75

ULIP 50.156

25

Share markets 70.218

75Government Securities 5

0.15625

Others 20.062

5

320.843

75



PORTFOLIO

19%

21%16%

22%

16% 6% Mutual FundsFixed DepositsULIPShare marketsGovernment SecuritiesOthers

ULIP Scheme No.

As a % of total

ICICI 1 0.16667LIC 3 0.5Others 2 0.33333 6 1

ULIP Scheme

17%

50%

33% ICICILICOthers

Type of Fund

83%

17%EquityBalanced

M.F Co. No. As a %



of totalFranklin 1 0.08333ICICI 3 0.25Reliance 4 0.33333Others 4 0.33333 12 1

M.F Co.

8%25%

34%

33% FranklinICICIRelianceOthers

SERVICE

Income No.As a % of total

above5 150.28301886

8

b/w 2-5 320.60377358

5

below 2 60.11320754

7 53 1

Income

28%

61%




Invest or Not No. As a % of totalYes 36 0.679245283No 17 0.320754717 0 53 1

Invest or Not

68%

32%YesNo

Life Insurance Cover No. As a % of totalYes 34 0.641509434No 19 0.358490566 0 53 1

Life Insurance Cover

64%

36% YesNo


As a % of total

Income replacement 2

0.036363636

Asset Purchase 90.16363636

4Building Cash 22 0.4



Reserves

Retirement 90.16363636

4Funding for Children 9

0.163636364

Others 40.07272727

3 55 1

Reasons for Investment

4% 16%

41%16%

16%7%

IncomereplacementAsset Purchase


Funding forChildrenOthers

PORTFOLIO No.As a % of total

Mutual Funds 190.22619047

6

Fixed Deposits 190.22619047

6

ULIP 180.21428571

4

Share markets 150.17857142

9Government Securities 6

0.071428571

Others 70.08333333

3

840.92857142

9



PORTFOLIO

23%

23%21%

18%7% 8%

Mutual Funds

Fixed Deposits

ULIP

Share markets

GovernmentSecuritiesOthers

Investment Concerns

Very Imporant

Important

Somewhat Important

Less Important

High returns 23 9 4 2Safety 20 13 4 1Liquidity 12 18 6 2Tax free proceeds 7 19 8 4Flexibility 14 15 5 4

Investment Factor Rating

0%20%40%60%80%

100%

Hig

hre

turn

s

Saf

ety

Liqu

idity

Tax

free

proc

eeds

Flex

ibili

ty

Less Important

SomewhatImportant

Important

Very Imporant

ULIP Scheme No.

As a % of total

ICICI 80.363

64

LIC 80.363

64

Bajaj Allianz 30.136

36

Others 30.136

36



22 1

ULIP Scheme

36%

36%

14%14% ICICI

LICBajaj AllianzOthers

Type of Fund

54%32%

14% EquityBalancedCash

Returns on ULIP No.

As a % of Total

Below 10% 40.181

8210%-20% 11 0.5

20%-30% 40.181

82

Above 30% 30.136

36 22 1



Returns on ULIP

18%

50%

18%14% Below 10%

10%-20%20%-30%Above 30%

M.F Co. No.

As a % of total

Franklin 7

0.22581

ICICI 40.129

03Fidelity 5

0.16129

Reliance 5

0.16129

Others 10

0.32258

31 1

M.F Co.

23%

13%16%16%

32%FranklinICICIFidelityRelianceOthers



MARKET SURVEY FOR STANDARD CHARTERED BANK SHANTA BANSAL

WHERE TO INVEST -ULIP OR MUTUAL FUNDS: AN INVESTOR’S GUIDE VARUN LALL FORE School of Mgmt Name: ______________ Contact No. ___________ Age: ______

1. Occupation: Government Salaried Business Others (specify) ____

2. What is Your Family‘s Annual Income (Rs. Lakhs): Below 2 2 -5 above 5

3. How many dependents you have? None 1 2 More than 2

4. Do you have a Life Insurance Cover? Yes No

5. Do you invest? Yes No if yes, what is your investment concerns? Income replacement at death/disability Building Cash reserves Retirement Asset Purchase Funding for children Others_____________________(If ‘No’ - proceed to Q.13)

6. Rate the following investment factors in your order of importance.Very Important ‘1’ Important ‘2’ Somewhat Important ‘3’ Less Important ‘4’


S.NO PARAMETERS RATING

1. High Returns 1 2 3 42. Safety 1 2 3 43. Liquidity 1 2 3 44. Tax Free Proceeds 1 2 3 45. Flexibility 1 2 3 4

87


7. Your current portfolio consists of?Share Markets Fixed Deposits Government Securities Mutual Funds Bonds ULIP Others (Please specify) ____________

Attempt (Q.8 – Q. 10) if you invest in ULIP schemes

8. With which company do you have the ULIP scheme? LIC AVIVA ICICI PRUDENTIAL BAJAJ ALLIANZ OTHERS _________

9. Which type of fund you invest in? Equity Debt Balanced Cash

10. How much returns are you getting on your ULIP investments annually (approximately)? Below 10% 10% - 20 % 20%-30% above 30%

Attempt (Q.11 – Q. 12) if you invest in Mutual Funds

11. Which mutual funds are you investing in presently? _______________________12. How much returns are you getting on your investments annually (approximately)? Below 10% 10% - 20 % 20%-30% above 30% 13. Standard Chartered Bank is offering an opportunity to participate in investment schemes generating high returns, would you like to avail it? Yes No

THANK YOU!!!!!


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