A STUDY ON UNIT LINKED INSURANCE PLANS AT KOTAK LIFE

A STUDY ON UNIT LINKED INSURANCE PLANS AT KOTAK

LIFE INSURANCE, HYD 1YASWADA BHARATH,

2Mr. K. PRAVEEN KUMAR

1MBA Student,

2Assistant professor

DEPARTMENT OF MBA

MALLA REDDY INSTITUTE OF ENGINEERING AND TECHNOLOGY,MAISAMMAGUDA,

SECUNDRABAD

ABSTRACT

Unit Linked Insurance Plan (ULIP) is a disaster

protection plan which accommodates the advantage

of hazard spread just as adaptability in speculation.

The interest in ULIPs is meant as unit and is spoken

to by the worth called Net Asset Value (NAV). In a

ULIP, the measure of premium to be contributed in

the wake of deducting for all charges and premium

for hazard spread are pooled together to frame a

reserve. The estimation of reserve whenever is

equivalent to the measure of units increased by

estimation of unit around then.

The presentation of Unit Linked Insurance Plans has

conceivably been the single biggest advancement in

the field of life coverage .It has tended to and

conquered numerous challenges and concern s that

clients had about disaster protection – liquidity,

adaptability, and straightforwardness.

These advantages are conceivable on the grounds that

ULIPs are contrastingly organized items and leave

numerous decisions to the policyholder. They are

organized with the end goal that the assurance

(insurance) component and the reserve funds

component (venture) can be recognize and

consequently overseen as indicated by one's

particular needs, offering adaptability and

straightforwardness. Along these lines we can say it

is such an item, that deals with various needs. There

were a few variables which gave section for ULIPs in

the insurance advertise: - Firstly was the entry of

private of private players, and ULIPs were the most

critical advancement done by them, and besides was

the decrease of guaranteed returns in gift plans. Other

than this as the financial exchanges were blasting

which currently has turned into the essential factor.

As referenced before upgraded adaptability and

converging of venture and insurance in a solitary

substance that have truly charmed them to people.

Early the market of ULIPs was taken up kotak life;

they were the first to catch the market in this field.

These are the insurance plans which are appended to

Units – Mutual Funds. The top notch sum got in this

strategy, some part is utilized in venture of assets and

remaining is utilized for insurance spread. ULIPs are

surprisingly like, shared store regarding structure and

working: premium installments are changed over into

units and net resource esteem (NAV) is proclaimed

routinely. Financial specialists have a choice of

picking their store as per their hazard taking capacity.

They un cover all the material certainties most

continuous and steady (regularly quarterly or half-

yearly) .Also financial specialist has a genuinely

smart thought about costs.

I. INTRODUTION

ULIP is a life coverage item, which gives hazard

spread to the arrangement holder alongside venture

alternatives to put resources into any number of

qualified speculations, for example, stocks, securities

or shared assets. As a solitary incorporated plan, the

venture part and the insurance part can be overseen as

per explicit needs and decisions.

In Unit Linked Insurance Plans(ULIP), the

ventures made are liable to dangers related with the

capital markets. This speculation hazard in venture

portfolio is borne by the strategy holder. In this

manner, you should settle on your speculation

decision subsequent to thinking about your hazard

craving and needs.

Another factor that you have to consider is

your future requirement for assets. Kotak Life offers

you an assortment of unit-linked insurance items to

suit your objectives - be it for your retirement

planning, for your wellbeing, for your youngster's

training and marriage or for venture purposes.

The individuals who wish to intently follow

their speculations: Unit linked insurance plans enable

arrangement takers to intently screen their portfolios.

They likewise offer the adaptability to switch your

capital between assets with changing danger return

profiles.

People with a medium to long haul

speculation skyline: ULIPs (Unit Linked Plans) are

perfect for people who are prepared to remain

contributed for generally significant lots of time.

Financial specialists over all life stages : This plan

class offers an assortment of plans which can be

settled on relying on the existence organize you are in

and your needs and budgetary liabilities by then.

In a Unit Linked Plan (ULIP), the premiums

you pay are put resources into the assets picked by

you subsequent to deducting designation charges and

charges including those for overseeing reserves,

strategy organization and for giving insurance spread

are deducted from the assets by dropping certain

units.

The estimation of every unit of a store is

controlled by isolating the all out estimation of the

reserve's speculations by the all out number of units.

Market linked returns : Unit linked plans offer you a

chance to win showcase linked returns as a

component of the premiums are put resources into

market linked finances which put resources into

various market instruments including obligation

instruments and value in changing extents.

Life assurance, Investment and Savings :

Unit linked plans offer the twin advantages of extra

security and reserve funds at market-linked returns.

Along these lines, you have the opportunity to

contribute your cash to gain higher returns, while

dealing with your security needs. Putting resources

into unit linked plans instills a normal propensity for

sparing and contributing, which is significant for

structure riches over the long haul.

Adaptability: Unit Linked Plans offer you a wide

scope of adaptable alternatives, for example, The

choice to switch between speculation assets to

coordinate your evolving needs.

The office to mostly pull back from your

store, subject to charges and conditions. Single

premium options to empower the approach holder to

contribute extra wholes of cash (well beyond the

customary premium) as and when wanted, subject to

conditions.

Single Premium : The approach holder is required to

pay the whole premium sum as a single amount

toward the start of the strategy term.

Normal Premium Payment (yearly, semi-every year

or month to month) : The approach holder needs to

pay the pre-decided premium sum intermittently for

example every year, semi every year or month to

month, contingent on the excellent installment term

selected.

Number of Premium Paying Years : This relies

upon the term of the approach that you have picked.

Much of the time, the strategy term and the quantity

of premium paying years (if there should arise an

occurrence of ordinary premiums) are the equivalent.

Nonetheless, a few approaches give the guaranteed

the alternative of picking the quantity of premium

paying years.

NEED FOR THE STUDY

To begin with, ULIPs serve the purpose of

providing life insurance combined with savings at

market-linked returns. To that extent, ULIPs can be

termed as a two-in-one plan in terms of giving an

individual the twin benefits of life insurance plus

savings. This is unlike comparable instruments like a

mutual fund for instance, which does not offer a life

cover.

ULIPs offer a lot more variety than

traditional life insurance plans. So there are multiple

options at the individual's disposal. ULIPs generally

come in three broad variants:

Although this is how the ULIP options are generally

designed, the exact debt/equity allocations may vary

across insurance companies

SCOPE OF THE STUDY

The scope of the study is limited to different

life insurance schemes of KOTAK LIFE. The present

study has taken to observe the returns of ULIPs for a

period of three months (i.e. from 01.01.2019 to

31.03.2019).

OBJECTIVES OF THE STUDY

To study some of the Unit Linked Insurance

plans of KOTAK Life Insurance.

To study the benefits Unit Linked Insurance

Policies (ULIPS).

To determine which investment option

(ULIPS) would bring out maximum returns

for an investor in short run and long run.

II. RESEARCH METHODOLOGY

Data collection: The information needed to further

proceed in the project information had collected

through secondary data.

Secondary data: The information collected from

already available records is called the secondary data.

The information collected for the corporate profile

and product profile from the past records of the

company are secondary data.

Formulae:

Standard deviation (σ) = √∑D2/(n-1)

Sharpe Performance Ratio=( ri-rf)/

LIMITATIONS OF THE STUDY

The main limitation of the study is the

availability of time. As the sufficient time was not

available for analysis of data.

As the study was restricted to the Unit

Linked Insurance Plans of Kotak Life only.

III. LITERATURE SURVEY

Muhammed Thayyib. K(2017) This Research paper

surveys the possibilities of ULIP insurance strategy

in India. Paper features the which means and

significance of ULIP in insurance segment. The

paper likewise specifies that whether the individual

ULIP reserve plan has beated or failed to meet

expectations with the speculation. It indicate an

examination among the ULIP reserve plans

dependent on the risk bearing limit and anticipated

return of the financial specialist.

Karuna (2009) featured on 'Importance of ULIPs as a

wise speculation device' to watch conventional extra

security plans offered by LIC dealt with just the

insurance needs of individuals. Nonetheless, with the

regularly changing requests of clients another item

called ULIP was propelled which consolidates the

advantages of insurance, speculation and tax

reductions. The writer saw that ULIPs were more

qualified to financial specialists who have 15-20

years as their time skyline to spread the cost over the

more extended period and receive the rewards.

Divya Y. Lakhani (2011) had led an exploration

concentrate to recognize the connection among

returns and Sensex, speculators' inclination for ULIP

and Equity, development and infiltration of ICICI

Prudential and the exhibition of a portion of its ULIP

plans. The significant finding of this examination was

that the NAV for value based store choices moves

couple with Sensex while for obligation based

reserve choices it isn't quite influenced by the

development of Sensex

IV. DATA ANALYSIS AND

INTERPRETATION

CALCULATION OF RISK AND RETURNS OF

KOTAK MAHINDRA BALANCED FUND FROM

01.01.2019 TO 31.03.2019

INTERPRETATION

The above table shows NAV ‘S of ULIPS

BALANCED FUND from 01.01.2019 to 31.03.2019.

The highest NAV is 24.0375. and the lowest NAV is

22.5717. The average return is 0.0805, risk is 0.3557

and Sharpe Performance Ratio=-1.4136.

CALCULATION OF RISK AND RETURNS OF

KOTAKMAHINDRA GUARANTEE FUND FROM

01.01.2019 TO 31.03.2019

INTERPRETATION

The above table shows NAV ‘S of ULIPS

GUARANTEE FUND from 01.01.2019 to

31.03.2019. The highest NAV is 20.0469. and the

lowest NAV is 19.058. The average return is 0.0607,

risk is 0.3154 and Sharpe Performance Ratio=-

1.6570.

V. FINDINGS

The KOTAK BALANCED FUND has

average return is 0.0805, risk is 0.3557 and

Sharpe Performance Ratio-1.4136.

The KOTAK GUARANTEE FUND has



The KOTAK ADVANTAGE

MULTIPLIER FUND has average return is

0.0255, risk is 0.0741 and Sharpe

Performance Ratio-7.5280.

The KOTAK DYNAMIC BALANCED

FUND has average return is 0.0883, risk is

0.3974 and Sharpe Performance Ratio-

1.2456.

The KOTAK DYNAMIC BOND has



The KOTAK GROUP MONEY MARKET

has average return is 0.0299, risk is 0.07 and


The KOTAK GROUP PRUDENT FUND

has average return is 0.0592, risk is 0.1664

and Sharpe Performance Ratio-3.1498.

The KOTAK GROUP SHORT TERM

BOND FUND has average return is 0.0414,

risk is 0.0640 and Sharpe Performance

Ratio-8.4676.

The KOTAK PENSION BALANCED has



The KOTAK PEAK GUARANTEE FUND

has average return is 0.0181, risk is 0.0854

and Sharpe Performance Ratio-6.6186.

SUGGESTIONS

The kotak dynamic balanced fund has given

high returns whereas compared to others

schemes. This scheme is better to choose

first priority.

The kotak balanced fund has given low

returns whereas compared to kotak dynamic

balanced fund scheme. This scheme is better

to choose second priority.

The kotak pension balanced has given low


balanced fund and balanced fund schemes.

This scheme is better to choose third

priority.

The kotak guarantee fund has given medium


balanced fund, balanced fund and pension

balanced schemes. This scheme is better to

choose fourth priority.

The kotak group prudent fund has given low

returns it is better to considered five priority.

The kotak dynamic bond has given low

returns it is better to considered above first

five schemes.

The kotak group short term bond fund has

given low returns it is better to considered

above first five schemes.

The kotak group short term bond fund has



The kotak advantage multiplier fund has



The kotak peak guarantee fund has given

low returns whereas compared to others

schemes. it is better to not considered.

VI. CONCLUSION

ULIPs or Unit linked insurance plans offer life

insurance and risk protection to the policy holders. It

provides tax reduction benefits to the policy holders.

Unit linked insurance plans provides assurance and

investment.

It is advisable to the policy holders to invest in ULIPs

(Unit Linked Insurance Plans) because ULIPs

provide both security and high returns.

All investment which are invested by KOTAK LIFE

INSURANCE in various schemes of KOTAK AMC

has given positive returns but the top five best returns

schemes are

Kotak Dynamic Balanced Fund

Kotak Balanced Fund

Kotak Pension Balanced

Kotak Guarantee Fund

Kotak Group Prudent Fund

BIBLIOGRAPHY

Textbooks

Scott E. Harrington, Gregory R. Niehaus,

Risk Management and Insurance Tata

McGraw-Hill Edition 2004

Rejda, George E., McNamara, Mike,

Principles of Risk Management and

Insurance (11th Edition)

R.D.Samarth, Operational Transformation of

General Insurance Industry during the

period 1950 to 1990

John Magee & David Bicklhaupt, General

Insurance

Websites

www.insurance.kotak.com

www.kotak.com/en.html

www.policybazaar.com/life-insurance/ulip-

plans/articles/

www.bankbazaar.com/life-insurance/ulip.html

http://www.insurance.kotak.com/

http://www.kotak.com/en.html

http://www.bankbazaar.com/life-insurance/ulip.html

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A STUDY ON UNIT LINKED INSURANCE PLANS AT KOTAK LIFE