IN DEAPTH STUDY OF THE INSURANCEWITH THE HELP OF COMPARISON of ULIPS v/s MUTUAL FUNDS in ING

VYSYA

Presents by: Nisha Singh

The business of insurance is related to the protection of economic value of assets.

Every asset has a value. The asset have been created through the efforts of owner in the expectation that either through the income generated there from or some other output some of his needs would be met.

CLASSIFICATION OF INSURANCE Life insurance- Life insurance is concerned with

making provision for a specific event happening to the in individual such as death.

Non life insurance- Non life insurance is commonly concerned with the provision for a specific event, which affects a property such as fire, flood, theft etc.

Introduction of Insurance

ING Group the world’s largest financial services provider, entered the private life insurance industry in India in September 2001.

Company is currently present in 246 cities and has a network of over 300 branches, staffed by 7,000 employees and over 51,000 advisors, serving over 5.5 lakh customers.

ING Vysya has 3 businesses in India, ING Vysya Life Insurance, ING Vysya Bank and ING Vysya Mutual Fund.

Company Profile

The mission of the company is to have the best and the most productive advisors force.

The core values of company are:

◦ Professional◦ Entrepreneurial◦ Trustworthy ◦ Approachable

Company Profile

The major objective of the project was to comprise unit linked insurance plans with mutual funds.

Objective of My Study

Unit Linked Insurance Plan 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.

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.

About Unit Linked Insurance Plans(ULIP’s)

Life protection Investment and Savings Flexibility Adjustable Life Cover Investment Options Transparency Options to take additional cover against Death due to accident Disability Critical Illness Surgeries Liquidity Tax planning

Benefits

A Mutual Fund is a pool of money, collected from investors, and is invested according to certain investment objectives.

Concept of mutual fund

About Mutual Fund

Classification on the basis of its structure & its investment objective.

By Structure:1. Open ended funds2. Closed-ended funds3. Interval Funds

By Investment Objective:1. Growth Funds2. Income Funds3. Balanced Funds4. Money Market Funds

Other Schemes:1. Tax Saving Schemes2. Gilt Funds3. Short-term Funds4. Liquid Funds

Special Schemes:a. Industry specific schemesb. Index schemesc. Sector Specific Schemes

Benefits of Mutual Fund Professional Management Diversification Convenient Administration Growth Potential Low Costs Liquidity Transparency Flexibility Affordability Tax benefits Well regulated

Primary ObjectiveMFs: InvestmentsULIPs: Protection + Investments

Investment DurationMFs: Works out for Medium term, Long Term InvestorsULIPs: Works out for Long Term Investors only

FlexibilityMFs: Very flexible. ULIPs: Flexibility is limited to moving across the different funds offered with your policy.

Liquidity MFs: It can sell your MF units any time

ULIPs: Limited liquidity.

Tax ImplicationsMFs: All investments in MF's don't qualify for section 80CULIPs: Provide Tax Benefits under section 80C

Comparison of MF and ULIP’s

Preparation of the Research Design-◦ Survey Method◦ Questionnaire Method

Data Sources◦ Primary Source◦ Secondary Sources

Data Collection Techniques◦ through questionnaire & telephone interviewing

Market Segmentation◦ Businessmen ◦ Professionals◦ Govt. employees◦ Private employees

RESEARCH METHODOLOGY

Awareness towards ULIP & MF

Investment in ULIP’s and MF

Suggestions The bank & AMCs should emphasize on educating the

people about new investment avenue like ULIPs & specially Mutual Funds because the awareness is less enough.

Awareness camps should be organized on a periodic basis.

Company should emphasize on market survey so as to design the product as the customer desires.

AMCs should organize advertising campaigns to attract the investors towards the funds & schemes.

Since most of the respondents have desired to avail the “safety” & “Returns” from their investments therefore AMCs need to emphasize the feature of diversified portfolio & the equity returns.

ULIPs form an attractive investment avenue and have a lot of potential for growth. However the major hindrance observed has been the lack of awareness regarding the same.

Most of the respondents have not even heard about Mutual Funds.

Some respondents know about ULIP & Mutual Funds but not educated enough to invest in.

There is very less awareness of Mutual Funds in the segments of Businessmen & Govt. employees, thus there is huge potential in those segments.

Conclusion

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