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MMS PROJECT IIBM Vishweshwar Education Society’s Indira Institute of Business Management PROJECT REPORT ON Investment Analysis ON BIRLA SUN LIFE INSURANCE SUBMITTED TO INDIRA INSTITUTE OF BUSINESS MANAGEMENT, NAVI MUMBAI, SANPADA BY ASHISH KUMAR YADAV Specialization: Finance Roll No.2013060 Batch No: 2013-2015 IN PARTIAL FULFILLMENT OF MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY OF MUMBAI AUGUST, 2014 1 UNIVERSITY OF MUMBAI

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Page 1: SIP FINAL PROJECT

MMS PROJECT IIBM

Vishweshwar Education Society’sIndira Institute of Business Management

PROJECT REPORT

ON

Investment Analysis

ON

BIRLA SUN LIFE INSURANCE

SUBMITTED TOINDIRA INSTITUTE OF BUSINESS MANAGEMENT,

NAVI MUMBAI, SANPADA

BY

ASHISH KUMAR YADAV

Specialization: Finance

Roll No.2013060

Batch No: 2013-2015

IN PARTIAL FULFILLMENT OF

MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY OF MUMBAI AUGUST,

2014

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DECLARATION

I, Mr./Ms. ASHISH KUMAR YADAV

Hereby declare that this project report is the record of authentic work carried out by me during the period from 1st May 2014 to 05th July 2014 and has not been submitted to any other University or Institute for the award of any degree / diploma etc.

Signature:

ASHISH KUMAR YADAV

Date:

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CERTIFICATE

This is to certify that Mr. / Ms. ASHISH KUMAR YADAV of Indira Institute of Business Management has successfully completed the project work titled INVESTMENT ANALYSIS ON BIRLA SUNLIFE INSURANCE in partial fulfilment of requirement for the completion MMS as prescribed by the University of Mumbai.

This project report is the record of authentic work carried out by him / her during the period from 01-05-2014 to 05-07-2014

He has worked under my guidance.

Signature : Signature Dr. Ritu Bhattacharyya Prof. Tanaya devasthali (Director) (Project Guide Internal) Date : Date:

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ACKNOWLEDGEMENT

“Accomplishment of any task necessarily depends upon the willingness and enthusiastic contribution of time and energy of many people.”

I, therefore, acknowledge all who generously helped me by sharing their time, experience and knowledge with me without which this project would have been accomplished.

We, would like to extend our thanks to Indira Institute of Business Management Studies (IIBMS) Navi Mumbai, for given us the platform for corporate interaction through this summer internship project which has helped us to understand the duties & responsibility that comes with a job.

Moreover, I would like to extend my thanks and appreciation to Birla Sun Life Insurance Company, Ghatkopar for giving us the opportunity and a platform to work in a healthy and knowledgeable corporate working environment. Through Birla Sun Life, we got the opportunity to meet some wonderful and highly intellectual people.

I would like to thank Mr. Shubhajit Sen Gupta , for his welcome to the organization and introducing us to the various phase of the co-operate front with perceptive guidance, constant encouragement, constructive criticism and affection were the light of guidance during tenure of my work.

Finally, I would like to thank Ms. Tanaya Devasthali our project guide for her patience and guidance, which not only fulfilled an academic requirement, but would also help me in future endeavours in the years to come.

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TABLE OF CONTENTS

Chapter No. Title Page No.1 Introduction 8,9

1.1 Object of the Project1.2 Introduction of the Topic1.3 Objectives of the Study1.4 Scope of the Study

1.5 Limitations of the Study

2. Profile of the Organisation 10, 11,12,13,14,162.1 Company Profile2.2 About Aditya Birla Group2.3 About ABFSG2.4 About Birla Sun Life Insurance2.5 About Sun Life Financial2.6 AWARDS2.7 Competitors Analysis2.8 SWOT Analysis

3. Review of Literature 17,213.1 Insurance History3.2 IRDA

4. Research Methodology 23,24,28

4.1 Data Collection4.2 Sampling4.3 Presentation of Data,4.4 Products

5. Findings 62

6. Recommendations 63

7. Conclusions 64

8. Bibliography 65

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EXECUTIVE SUMMARY

Birla Sun Life Insurance Company Limited (BSLI) established in 2000 is a joint

venture between the Aditya Birla Group, a well known and trusted name globally amongst 

Indianconglomerates and Sun Life Financial Inc, leading international financial services

organization from Canada. The local knowledge of the Aditya Birla Group combined with the

domain expertise of Sun Life Financial Inc., offers a formidable protection for its customers’

future.

With an experience of over 10 years, BSLI has contributed significantly to the growth and

development of the life insurance industry in India and currently ranks amongst the top 6 private

life insurance companies in the country.

I have carried out a project during summer training; the title of my project is “ Investment

Analysis on Birla Sun Life Insurance”. The objective of this project was to understand the

information contained in Investment Avenues of Birla Sun Life Insurance Company Limited

(BSLI) with particularly functional area of finance. This project has been a good experience for

me and at the same time it gave me enough scope to implement my analytical ability.

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CHAPTER: 1

INTRODUCTION

1.1 Objective of the Project

Summer internship program [SIP] is integral part of the MMS program. In that students go

for eight to twelve weeks in any company/ organization. More students do internships during the

summer than during any other time of the year. This is a short term experience but it provides a real

insight into what it’s actually like working in a particular job or career field. There was ample time to

get into a regular work routine and gain valuable knowledge and skills. This kind of experience is very

important and adds an important element to the resume.

I did my summer internship at Birla Sun Life Insurance Company Ltd. The internship

period was from 1st May to 05 July 2014. The objectives of the project are as follows:

1 Main objective of the project is to give an exposure to real life organizational problems.

2 It provides an opportunity to work on live project.

3 Project work provides several opportunities to learn & work on some aspects which taught in

MMS.

4 It gives chance to understand the organization structure and process in the practical setting.

5 It provides an opportunity to analysis the problems and apply the concepts and theory learnt in the

class room

1.2 Introduction of the Topic The main purpose of doing this project was to know about company portfolio and its

functioning. This helps to know in details about Investment Avenues right from its inception stage,

growth and future prospects.

It also helps in understanding different schemes of Investment products. Because my study depends

upon prominent funds in India and their schemes like equity, income balance as well as the returns

associated with those schemes.

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MMS PROJECT IIBMUnderstand the Investment pattern of a common investor and determine the competitor position in the

market. To do a performance evaluation of Birla Sun Life Insurance products in comparison on with

other insurance companies.

1.3 Objective of the study To determine and analyze the market potential of  Birla Sun Life Insurance Company Ltd.

To study the various investment option available in the market and the comparative return from the investment.

To apply the knowledge of research methodology to analyze the problem or issues faced by

company.

To get an opportunity of real life business experience.

To become able to apply theoretical knowledge obtained at the institute in a practical manner.

To understand how various principles, policy in work is applied in the real time business world.

1.4 Scope of the study

The study covers all the information related to the Economic Analysis, Industrial Analysis, and

Company Analysis of BIRLA SUNLIFE INSURANCE.

Data has been collected from “BIRLA SUNLIFE INSURANCE”.

This study is related to investment avenues available in the market and also of the company.

This study does a performance evaluation of Birla Sun Life Insurance products in comparison with

other insurance companies

1.5 Limitation of the study

The major limitation for this project of BIRLA SUNLIFE INSURANCE is a large financial

institution; therefore it is not possible to find out the true picture within a short period.

Officials don’t want to disclose all necessary information to an external.

The data collected is basically confined to secondary sources, with very little amount of primary

data associated with the project.

There is a constraint with regard to time allocated for the research study.

The availability of information in the form of annual reports & price fluctuations of the

companies is a big constraint to the study.

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CHAPTER: 2

PROFILE OF THE ORGANISATION

2.1 COMPANY PROFILE

Birla Sun Life Insurance Co. Ltd.

Established in 2000, Birla Sun Life Insurance Company Limited (BSLI) is a joint

venture between the Aditya Birla Group, a well known and trusted name globally amongst Indiancongl

omerates and Sun Life Financial Inc, leading international financial services organization from

Canada. The local knowledge of the Aditya Birla Group combined with the domain expertise of Sun

Life Financial Inc., offers a formidable protection for its customers’ future.

With an experience of over 10 years, BSLI has contributed significantly to the growth and

development of the life insurance industry in India and currently ranks amongst the top 6 private life

insurance companies in the country.

Known for its innovation and creating industry benchmarks, BSLI has several firsts to its

credit. It was the first Indian Insurance Company to introduce “Free Look Period” and the same was

made mandatory by IRDA for all other life insurance companies. Additionally, BSLI pioneered the

launch of Unit Linked Life Insurance plans amongst the private players in India. To establish

credibility and further transparency, BSLI also enjoys the prestige to be the originator of practice to

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MMS PROJECT IIBMdisclose portfolio on monthly basis. These category development initiatives have helped BSLI be

closer to its policy holders’ expectations, which gets further accentuated by the complete bouquet

of insurance products (viz. pure term plan, life stage products, health plan and retirement plan) that the

company offers.

Vision

To be a leader and role model in a broad based and integrated financial services business.

Mission

To help people mitigate risks of life, accident, health, and money at all stages and under

all circumstances.

Enhance the financial future of our including enterprises.

Values

Integrity

Commitment

Passion

Seamlessness

Speed

2.2 About Aditya Birla Group

A US $35 billion corporation, the Aditya Birla Group is in the league of Fortune 500. It is anchored by

an extraordinary force of 133,000 employees, belonging to 42 different nationalities. The group

operates in 36 countries across six continents – truly India's first multinational corporation.

2.3 About Aditya Birla Financial Services Group (ABFSG)

Aditya Birla Financial Services Group (ABFSG) ranks among the top 5 fund managers in India

(excluding LIC) with an AUM of USD 20.4 billion. Having a strong presence across the life insurance,

asset management, NBFC, private equity, retail broking, distribution & wealth management, and

general insurance broking businesses, ABFSG is committed to serve the end-to-end financial services

needs of its retail and corporate customers. The seven companies representing ABFSG are: Birla Sun

Life Insurance Company Ltd., Birla Sun Life Asset Management Company Ltd., Aditya Birla Finance

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MMS PROJECT IIBMLtd., Aditya Birla Capital Advisors Pvt. Ltd., Aditya Birla Money Ltd., Aditya Birla Money Mart Ltd.

and Aditya Birla Insurance Brokers Ltd. In FY 2013-14, ABFSG reported consolidated revenue from

these businesses at Rs. 6,640 Cr (USD 1.1 billion) and earnings before tax at Rs. 745 Cr. Anchored by

about 13,000 employees and trusted by over 5.3 million customers, ABFSG has a nationwide reach

through 1,500 point of presence and about 130,000 agents / channel partners.

2.4 About Birla Sun Life Insurance

Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla Group,

a well known Indian conglomerate and Sun Life Financial Inc., one of the leading international

financial services organisations from Canada. With an experience of over a decade, BSLI has

contributed to the growth and development of the Indian life insurance industry and is currently one of

the leading life insurance companies in the country. BSLI has a customer base of over two million

policy holders and has attained recognition as the 3rd Most Trusted Life Insurance Company in the

'Most Trusted Brands' survey 2013 conducted by Brand Equity (The Economic Times Group) with

Neilsen. The Company offers a complete range of offerings comprising protection solutions, children's

future solutions, wealth with protection solutions, health and wellness solutions, retirement solutions

and savings with protection solutions. It has an extensive distribution reach in over 500 cities through

its network of over 540 branches, more than 81,000 empanelled advisors and over 140 partnerships

with corporate agents, brokers and banks. Birla Sun Life Insurance has total assets under management

of 24,775 Cr and a robust capital base of over 2,170 Cr, as on 31st Mar, 2014.

2.5 About Sun Life Financial

Sun Life Financial is a leading international financial services organization providing a diverse range

of protection and wealth products and services to individuals and corporate customers. Sun Life

Financial and its partners have operations in key markets worldwide, including Canada, the United

States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China,

Australia, Singapore, Vietnam, Malaysia and Bermuda. As of March 31, 2014, the Sun Life Financial

group of companies had total assets under management of $671 billion.

Objective & Scope:

Developing a basic understanding and potential of the Indian market, envisaging and

developing knowledge of offering various investment idea of the equity share market.

Scope of this study project is limited to the Indian listed companies in the equity market.

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2.6 AWARDS

At Birla Sun Life Insurance, winning is a way of life. Our innovative solutions and customer-

friendly services have been admired, appreciated and rewarded by customers and the industry at large.

Year Awards From Title

2011 Golden Peacock Global Awards Secretariat Golden Peacock Award

2011 Internet Advertising Competition (IAC) Awards Best Insurance Integrated ad campaign

2011 Advertising Agencies Association of India & Bronze – Media Abby Awards at Goa Fest

Advertising Club Bombay 2011 as Best Never Before use of Media

2011 Advertising Agencies Association of India & Gold – Creative Abby Awards at Goa Fest

Advertising Club Bombay 2011 as Direct marketing Dimensional Mail

2011 BBC.com-Campaign India Digital Media Awards Gold – “Financial service website” category

For Birla Sun Life Insurance

2010 APPIES 2010 – Asia Pacific Advertising & Silver Medal & a letter of appreciation for -

Marketing Congress Wealth with Protection Solution campaign

2010 14th Annual Webby Awards Official Nominee – BSLI Email marketing

Campaign “Save Forest”

2009 Institute of Chartered Accountant of India (ICAI) ICAI Awards for Excellence in Financial

Reporting – Silver in Insurance Category

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2.7 Competitors Analysis

Competitors in Detail:-

Aviva life insurance: Aviva L i fe Insurance Company Ind ia Pv t . L td . i s a

jo in t ven tu re  between Aviva of UK and Dabur, one of India's leading producers

of traditional healthcare products. Aviva holds a 26 per cent stake in the joint venture and

the Dabur group holds the balance 74 per cent share.

Bajaj Allianz: Bajaj Allianz is a joint venture between Allianz AG one of the world's largest

insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the

world. Bajaj Allianz is into both life insurance and general insurance. Allianz Group is one

of the world's leading insurers and financial services providers. Founded in 1890 in

Berlin, Allianz is now present in over 70 countries

HDFC Standard Life Insurance Co. Ltd: is a joint venture between HDFC Ltd.,

India's largest housing finance institution and Standard Life Assurance Company,

Europe's largest mutual life company. It was the first life insurance company to be

granted a certificate of registration by the IRDA on the 23rd of October 2000.

ING Vysya Life Insurance Company Limited: is a joint venture between Vysya Bank and ING

Group of Holland, the world's 4th largest financial services group, with presence across50

countries, and a heritage of over 150 years.

Kotak Mahindra Old Mutual Life Insurance Ltd: i s a jo in t ven tu re be tween

Kotak  Mahindra Bank Ltd. (KMBL), and Old Mutual plc. Kotak Mahindra is one of India's

leading financial institutions and offers a range of financial services such as commercial

banking.

Life Insurance Corporation of India: (LIC) is an autonomous body authorized to run

the life insurance business in India with its Head Office at Mumbai. It has been established by

an act of the Parliament and started functioning from 1/9/1956.

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ICICI Prudential Life Insurance : ICICI Prudential life insurance is a part of ICICI Bank

MetLife India Insurance Co. Pvt. Ltd: is a joint venture between MetLife Group and

its Indian partners. The Indian partners include J&K Bank, Dhanalakshmi Bank,

Karnataka Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini Muthoothu.

Reliance Life Insurance Company: Limited is a part of Reliance Capital Ltd. of the Reliance-

Anil Dhirubhai Ambani Group. The company acquired 100 per cent shareholding

in AMP Sanmar Life Insurance Company in August 2005. Taking over AMP

Sanmar Life provided Reliance Life Insurance a readymade infrastructure and a portfolio.

SBI Life Insurance: is a joint venture between the State Bank of India and Cardiff

SA of France. SBI Life Insurance is registered with an authorized capital of Rs 500 cr. and a

paid up capital of Rs 350 cr.

Tata AIG Life Insurance Company: Limited is a joint venture between Tata Group

and A m e r i c an I n t e rn a t io na l G ro up , I n c . ( A I G ) . T a t a G r ou p i s o ne o f t he

o l d es t a n d l e ad i ng  business groups of India. Tata Group has had a long association with

India's insurance sector having been the largest insurance company in India prior to the

nationalization of insurance. T he L a t e S i r D or a b T a t a w a s t h e f ou nd e r

Ch a i r m an o f N e w In d i a A s s u r an c e Co . L t d . , a group company incorporated way

back in 1919.

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2.8 SWOT ANALYSIS

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Multi-channel distribution and one of the largest distribution networks in India.Implementing Six-Sigma process.Customer centric products and services.Training process of the company is very strong.Different plan for different peoples.Superior investment and risk management framework.Company does not penetrate on the rural market at a time.There is no plan for the low income group.Fees for the advisor is high than the other company.Insurance market is very big, where company can expand its horizon in insurance industry. Though good investment and insurance it is easy to top Indian customers.The huge insurance market (77%) is left so company has opportunity to expand our products.OLD HABITS DIE HARD’: It’s still difficult task to win the confidence of public towards private company.The company is facing major threats from LIC-which is an only government company.Major Competitor at a Glance LIC (Life Insurance Corporation)Threats

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CHAPTER: 3

REVIEW OF LITERATURE

Literature:

Insurance is a must because of the uncertain future adversities of life. Accidents, illnesses, disability

etc are facts of life that can be extremely devastating. Other than the hospitalization, medication bills

these may run up it’s the aftermath of the incident, the physical well being of the individual that has to

be taken into consideration. Will the individual be in a position to earn as before? A pertinent question,

But what if he is not? Disability can be taken care of by insurance. Your family will not have to go

through the grind due to your present inability. You think twice before taking the plunge into buying

insurance. Is buying insurance a necessity now? Spending an 'extra' amount as premium at regular

intervals where you do not see immediate benefits does not seem a necessity at the moment. May be

later well you could be wrong. Buying Insurance cannot be compared with any other form of

investment. Insurance gives you a lifelong benefit and the returns will definitely come but only when

you need it the most i.e. at the right time. Besides buying insurance early in life is one of the wise

decisions you could take. Because the premium you would be paying would be comparatively lower.

3.1 INSURANCE HISTORY

INSURANCE IN INDIA:

The insurance sector in India has come a full circle from being an open competitive market to

nationalization and back to a liberalized market again. Tracing the developments in the Indian

insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. A brief

history of the Insurance sector. The business of life insurance in India in its existing form started in

India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

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Some of the important milestones in the life insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general

insurance business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life

insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical

information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of

protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central government

and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,1956, with a capital contribution

of Rs. 5 core from the Government of India. The General insurance business in India, on the other

hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company

established in the year 1850 in Calcutta by the British.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of

conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the

Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance

business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four

company’s viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the

Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a

company

Insurance sector reforms:

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra,

was formed to evaluate the Indian insurance industry and recommend its future direction. The

Malhotra committee was set up with the objective of complementing the reforms initiated in the

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MMS PROJECT IIBMfinancial sector. The reforms were aimed at “creating a more efficient and competitive financial

system suitable for the requirements of the economy keeping in mind the structural changes currently

underway and recognizing that insurance is an important part of the overall financial system where it

was necessary to address the need for similar reforms…”In 1994, the committee submitted the report

and some of the key recommendations included:

i) Structure

Government stake in the insurance Companies to be brought down to 50%·

Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries

can act as independent corporations.

All the insurance companies should be given greater freedom to operate

ii) Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the

industry· No Company should deal in both Life and General Insurance through a single entity·

Foreign companies may be allowed to enter the industry in collaboration with the domestic

companies·

Postal Life Insurance should be allowed to operate in the rural market·

Only one State Level Life Insurance Company should be allowed to operate in each state.

iii) Regulatory Body·

The Insurance Act should be changed·

An Insurance Regulatory body should be set up·

Controller of Insurance (Currently a part from the Finance Ministry) should be made

independent

iv) Investments·

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to

50%·

GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings

to be brought down to this level over a period of time)

v) Customer Service·

LIC should pay interest on delays in payments beyond 30 days·

Insurance companies must be encouraged to set up unit linked pension plans·

Computerization of operations and updating of technology to be carried out in the insurance

industry. The committee emphasized that in order to improve the customer services and

increase the coverage of the insurance industry should be opened up to competition. But at the

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players could ruin the public confidence in the industry. Hence, it was decided to allow

competition in a limited way by stipulating the minimum capital requirement of Rs.100 cores.

The committee felt the need to provide greater autonomy to insurance companies in order to

improve their performance and enable them to act as independent companies with economic

motives. For this purpose, it had proposed setting up an independent regulatory body.

3.2 Insurance Regulatory and Development Authority

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in

December 1999. The IRDA since its incorporation as a statutory body in April 2000 has

fastidiously stuck to its schedule of framing regulations and registering the private sector insurance

companies. The other decisions taken simultaneously to provide the supporting systems to the

insurance sector and in particular the life insurance companies were the launch of the IRDA’s

online service for issue and renewal of licenses to agents. The approval of institutions for imparting

training to agents has also ensured that the insurance companies would have a trained workforce of

insurance agents in place to sell their products, which are expected to be introduced by early next

year. Since being set up as an independent statutory body the IRDA has put in a framework of

globally compatible regulations. In the private sector 10 life insurance and 6 general insurance

companies have been registered.

Life Insurers -:

HDFC Standard Life Insurance Company Ltd.

Max New York Life Insurance Co. Ltd.

ICICI Prudential Life Insurance Company Ltd

Kotak Mahindra Old Mutual Life Insurance Ltd.

Birla Sun Life Insurance Company Ltd.

Tata AIG Life Insurance Company Ltd.

SBI Life Insurance Company Ltd.

ING Vysya Life Insurance Company Private Ltd.

Bajaj Allianz Life Insurance Company Ltd.

Metlife India Insurance Company Pvt. Ltd.

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General Insurers -:

Royal Sundaram Alliance Insurance Company Ltd.

IFFCO Tokio General Insurance Company Ltd.

TATA AIG General Insurance Company Ltd.

Bajaj Allianz General Insurance Company Ltd.

ICICI Lombard General Insurance Company Ltd.

Reliance General Insurance Company Ltd.

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CHAPTER: 4

RESEARCH METHODOLOGY

4.1 Plan of Research:

RESEARCH TYPE Analytical

SOURCE OF DATA Primary and Secondary

PRIMARY DATA:

Discussion with the Branch Manager of “BIRLA SUNLIFE INSURANCE”.

Discussion with the persons who maintain the record.

Direct observation of working.

The company profile, annual reports have been obtained from BIRLA SUNLIFE

INSURANCE

SECONDARY SOURCE:

The secondary data was collected on the basis of organizational file, official records, news papers,

management books, preserved information in the company's database and website of the company.

4.2 Data Collection

The data required for the study may be collected either from primary sources or from secondary sources.

A major portion of the data in this study has been collected through secondary sources of data.

Secondary data sources include:

o Company Annual Report

o Internet-websites

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4.3 Presentation of Data, Analysis and Interpretation data

Overview of market

Outlooks for Equities:

Equity Markets witnessed a big hope rally in March. On the back of expectation of a positive poll

outcome, which would through up a stable ruling alliance at the centre, the BSE Sensex closed at all-

time high above 22,000 levels. Better economic data like falling inflation and lower Q3 current

account deficit further fuelled the rally. Sensex finally settled at 22,386 which was a 6% month on

month increase. Banks, NBFCs and capital goods companies participated in the rally. Defensives like

IT and Pharmaceuticals, were laggards. FIIs were net buyers with net inflow of USD 3.3bn as

compared to an inflow of USD 229mn in the previous month. Domestic mutual funds continued were

also net sellers with outflows of USD 523mn vs. an outflow of USD 215mn in Feb'14. Assuming a

conservative earnings growth of 12%, the BSE Sensex EPS for FY 15 is estimated at Rs.1500. The

Sensex is trading at forward valuations of 15xFY15e earnings, making equity an attractive investment

option

.% Change in 2 months

Table: A.1

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INDEX 31-Mar-14 28-Feb-14 %Change

Nifty 6704.2 6276.95 6.81%

Sensex 22386.27 21120.12 5.99%

BSE 100 6707.28 6235.99 7.56%

Dow Jones 16457.66 16321.71 0.83%

Nikkei 14827.83 14841.07 -0.09%

Hang Seng 22151.06 22836.95 -3.00%

Nasdaq 4198.99 4308.12 -2.53%

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MMS PROJECT IIBM Outlook for Debt:

Bond markets continued to be range bound in March. While the market did not react to the borrowing

calendar for the 1 half of 2015, markets were uncertain ahead of the monetary policy. The 1HFY15

borrowing calendar was expectedly front-loaded with 61.6% of the FY2015 budgeted gross

borrowing, with net issuances at ~8% higher than last year. As per the detailed borrowing calendar, the

weekly dated securities auctions size is Rs140-160 bn. The borrowing has been concentrated again in

the 10-14-year bucket with 45% of the gross borrowings in this bucket. There were almost no fresh

issuances of corporate bonds though banks were active in raising bulk deposits. The 10 year

government bond traded in the range of 8.80%- 8.90% and corporate bond spreads remained at 65 bps.

Despite improving inflation and an appreciating currency, bond yields can be expected to harden on

account of the supply pipeline of government securities coupled with the declining recourse to OMOs.

We expect the 10 year government bond to trade in the range of 8.95% to 9.25% in the near term.

Corporate bond spreads are expected to remain tight at 65 basis points as fresh issuances are not

expected. This is a good opportunity for debt investors to lock into higher yields in duration funds.

% Change in rate of bond in 2 month

Key Indices 31-Mar-14 28-Feb-14 % Change

10 year G-Sec 8.80% 8.86% -0.68%

5 year G-Sec 8.88% 8.98% -1.13%

91 Days T-Bill 8.55% 9.09% -6.32%

364 Days T-Bill 8.70% 8.99% -3.33%

MIBOR 9.89% 8.82% 10.82%

Call Rates 8.03% 7.97% 0.75%

Table: B.1

23UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

4.4 Products:

There are total 28 products of the Birla Sun life Insurance into the market which caters the requirement

of general public. Each product has its own features and demand in the public. BSLI takes all

necessary steps to maximise the wealth of their customer by diversifying the investment into the

different areas like investment in Equity, Debt, MMI, Government Securities, Deposits, CBLO and

others. Few products of BSLI are as follows.

1) Assure Fund:

Objective:To provide Capital Protection, at a high level of safety and liquidity through judicious

investments in high quality short-term debt.

STRATEGY:Generate better return with low level of risk through investment into fixed interest securities

having short-term maturity profile.

Total Assets:As on 31st March, 2014 the total amount of assets held by the company under this fund is Rs.

169.47Crores.

Investment in securities:As the name of the product is Assured Fund therefore the BSLI assured its customer that the

fund they are investing in this product is invested in the securities which yield assured profit so

to safeguard the customer’s capital and bring them good returns on the capital. Nearly 32.91%

of the fund is invested in the corporate debt and 67.09% is invested in MMI, Deposits, CBLO

and Others. The diversification of investment is given below.

Tabulated bifurcation of fund different market

24UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

Table: 1.1

% Allocation of fund in different instrument

Corporate Debt33%

MMI, Deposits, CBLO & Others

67%

Corporate DebtMMI, Deposits, CBLO & Others

Figure: 1.1

25UNIVERSITY OF MUMBAI

securities Holding

Corporate Debt 32.91%

8.83% National Bank For Agri. And Rural Development 2015 5.29%

9.62% LIC Housing Finance Ltd. 2015 4.61%

10.18% LIC Housing Finance Ltd. 2016 4.19%

8.97% EID-Parry (India) Ltd. 2016 2.89%

8.6% Bharat Aluminum Company Limited 2016 2.86%

9.75% Housing Development Finance Corps. Ltd. 2016 2.85%

9.8% Power Finance Corps. Ltd. 2016 2.38%

10.1% HDB Financial Services Ltd 2015 1.79%

8.8% HDB Financial Services Ltd 2016 1.75%

9.97% HDB Financial Services Ltd 2018 1.20%

Other Corporate Debt 3.10%

MMI, Deposits, CBLO & Others 67.09%

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MMS PROJECT IIBM

Maturity of Fund:The funds are invested in such a way that it has low maturity which invested in high quality

short-term debt and it includes 76.93% of fund having maturity of less than 2 years, whereas

23.07% of fund having the maturity between 2 to 7 years. The average maturity of the fund has

slightly increased to 1.33 years from years in the previous month. Assure fund continues to be

predominantly invested in highest rated fixed income instruments.

Fund Maturity

Less than 2 years 2 to 7 years0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

76.93%

23.07%

Maturity

Figure: 1.2

26UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM2) Protector Fund:

Objective:To generate persistence return through active management through active management of fixed

income portfolio and focus on creating long term equity portfolio, which will enhance yield of

composite portfolio with minimum risk appetite.

STRATEGY: To invest in fixed income securities with marginal exposure to equity up to 10% at low level of

risk. This fund is suitable for those who want to protect their capital and earn steady return on

investment through higher exposure to debt securities.

Total Assets:As on 31st March, 2014 the total amount of assets held by the company under this fund is Rs.

415.83 Crores

Investment in securities:Protector Fund is those products which invest give more priority to secure the fund of the

customer and take limited risk to increase the return. Nearly 36.91% of the fund is invested in

the Government securities, 38.55% in Corporate Debt, 9.77% in Equity and 14.78% is invested

in MMI, Deposits, CBLO and Others. The diversification of investment is given below.

Tabulated bifurcation of fund in different market

27UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

securities Holding

GOVERNMENT SECURITIES 36.91%

8.33% Government Of India 2026 11.87%

7.8% Government Of India 2021 3.42%

7.16% Government Of India 2023 2.74%

7.5% Government Of India 2034 2.08%

8.15% Government Of India 2022 2.05%

8.24% Government Of India 2027 1.64%

6.9% Government Of India 2019 1.54%

8.79% Government Of India 2021 1.53%

7.95% Government Of India 2032 1.39%

8.2% Government Of India 2022 1.375

Other Government Securities 7.27%

Corporate Debt 38.55%

8.6% Power Finance Corpn. Ltd. 2014 3.11%

10.85% Rural Electrification Corpn. Ltd. 2018 2.76%

9.57% Indian Railway Finance Corpn. Ltd. 2021 2.43%

2% Tata Steel Ltd. 2022 2.33%

9.55% Mahindra And Mahindra Financial Services Ltd. 2014 2.28%

8.64% Power Grid Corpn. Of India Ltd. 2014 1.92%

8.9% Steel Authority Of India Ltd. 2019 1.87%

9.61% Power Finance Corpn. Ltd. 2021 1.20%

11.25% Power Finance Corpn. Ltd. 2018 1.40%

10.25% Tech Mahindra Ltd. 2014 1.20%

Other Corporate Debt 18.03%

EQUITY 9.77%

ITC Ltd. 0.70%

HDFC Bank Ltd. 0.64%

Infosys Ltd. 0.63%

ICICI Bank Ltd. 0.55%

Housing Development Finance Corpn. Ltd. 0.53%

Reliance Industries Ltd. 0.52%

28UNIVERSITY OF MUMBAI

Page 29: SIP FINAL PROJECT

MMS PROJECT IIBMTata Consultancy Services Ltd. 0.44%

Larsen And Toubro Ltd. 0.38%

Tata Motors Ltd. 0.34%

Sun Pharmaceutical Inds. Ltd. 0.29%

Other Equity 4.75%

% Allocation of fund in different instrument

0.2609

36.65%

27.02%

9.79%

GOVERNMENT SECURITIES Corporate DebtEQUITY MMI, Deposits, CBLO & Others

Figure: 2.1

Maturity of Fund:The funds are invested in fixed income securities and long-term equity having low maturity to

long maturity basically reason behind is to give consistent returns to the customer with

minimum risk and it includes 27.44% of fund having maturity of less than 2 years, whereas

20.55% of fund having the maturity between 2 to 7 years and 52% of fund having the maturity

of more than 7 years. The average maturity of the fund 7.27 years. Exposure to G-secs has

decreased to 36.91% from 38.46% while that to MMI has increased to 14.78% from 11.65% on

a MOM basis. Protector fund continues to be predominantly invested in highest rated fixed

income instruments.

Fund Maturity

29UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

L es s t h a n 2 y ea r s

2 t o 7 y ea r s

m o r e t h a n 7 y ea r s

11.28%

74.53%

14.19%

Maturity

Figure: 2.2

Sectorial allocation of fund:The fund that BSLI has collected from the customer has well diversified into different sectors,

from this Banking sector has occupied the 20.06% of the fund followed by Software/IT with

16.63% and the least fund hold by the sector is Media and Entertainment which comes to

2.79%. The bifurcation of total funds is given below

% Wise Sectorial Allocation

10

5

10

15

20

25

20.12

16.57

10.67

13.46

7.87 8.45

6.054.65

2.61 2.84

Banking Software/IT FMCG Oil and Gas PharmaceuticalAutomobiles Financial Services Capital goods Cement Power

Figure: 2.3

30UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM3) Enhancer Fund:

Objective:Helps you to grow your capital through enhanced returns over a medium to long term

period through investments in equity and debt instruments, thereby providing a good

balance between risk and return.

Strategy:To earn capital appreciation by maintaining diversified equity portfolio and seek to earn

regular return on fixed income portfolio by active management resulting in wealth

creation for policy holders

Total Assets:As on 31st March, 2014 the total amount of assets held by the company under this fund is Rs.

6568.24Crores.

Investment in securities:Enhancer Fund is the products which gives more importance to increasing the returns of the

customers fund and therefore increase the investment in Equity to enhance the return and at the

same time secure the fund of investor by cordially investment in corporate debt and

government. Exposure to Equities has decreased to 27.01% from28.00% while that to MMI has

increased to 9.79% from 6.08% on a MOM basis. So nearly 26.09% of the fund is invested in

the Government securities, 36.65% in Corporate Debt, 0.45% in Securitized Debt, 27.01% in

Equity and 9.79% is invested in MMI, Deposits, CBLO and Others. The diversification of

investment is given below.

31UNIVERSITY OF MUMBAI

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MMS PROJECT IIBMTabulated bifurcation of fund in different market

securities

Holdin

g

GOVERNMENT SECURITIES 26.09%

6.9% Government Of India 2019 3.28%

8.33% Government Of India 2026 2.20%

8.15% Government Of India 2022 2.14%

7.16% Government Of India 2023 2.00%

7.8% Government Of India 2021 1.45%

6.35% Government Of India 2020 1.42%

7.95% Government Of India 2032 1.14%

8.2% Government Of India 2022 1.06%

7.8% Government Of India 2020 0.99%

8.79% Government Of India 2021 0.94%

Other Government Securities 9.49%

Corporate Debt 36.65%

10.75% Reliance Industries Ltd. 2018 0.86%

10.2% Tata Steel Ltd. 2015 0.76%

2% Tata Steel Ltd. 2022 0.76%

9.05% State Bank Of India 2020 0.70%

10.25% Tech Mahindra Ltd. 2014 0.59%

2% Indian Hotels Co. Ltd. 2014 0.55%

9.8% LIC Housing Finance Ltd. 2017 0.49%

9.48% Rural Electrification Corpn. Ltd. 2021 0.47%

9.1% State Bank Of Mysore 2019 0.45%

9.61% Power Finance Corpn. Ltd. 2021 0.44%

Other Corporate Debt 30.57%

Securitized Debt 0.45%

32UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

EQUITY 27.01%

ITC Ltd. 2.07%

Infosys Ltd. 1.87%

HDFC Bank Ltd. 1.80%

Reliance Industries Ltd. 1.69%

ICICI Bank Ltd. 1.64%

Housing Development Finance Corpn. Ltd. 1.51%

Tata Consultancy Services Ltd. 1.40%

Larsen And Toubro Ltd. 1.15%

Tata Motors Ltd. 0.94%

Sun Pharmaceutical Inds. Ltd. 0.89%

Other Equity 12.06%

MMI, Deposits, CBLO & Others 9.79%

Table: 3.1

% Allocation of fund in different instrument

26.09%

36.65%0.45%

27.02%

9.79%

Chart Title

GOVERNMENT SECURITIES Corporate Debt Securitised DebtEQUITY MMI, Deposits, CBLO & Others

Figure: 3.1

33UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

Maturity of Fund:21.98% of the fund have the maturity of less than 2 years, 42.78% of the fund has the maturity

from 2-7 years and the remaining 35.24% of the fund having maturity of more than 7 years, as

more percentage of fund having long maturity to enhance the wealth of customer by investing

large part of it in equity and equally in Debt market.

Fund Maturity

1

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

11.28%

74.53%

14.19%

Figure: 3.2

Sectorial allocation of fund:The fund that BSLI has collected from the customer has well diversified into different sectors,

from this Banking sector has occupied the 14.46% of the fund followed by Software/IT with

18.21% and the least fund hold by the sector is Telecommunication which comes to 2.83%.

The bifurcation of total funds is given below.

34UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

% Wise Sectorial Allocation

10

5

10

15

20

25

20.12

16.57

10.67

13.46

7.87 8.45

6.054.65

2.61 2.84

Banking Software/IT FMCG Oil and Gas PharmaceuticalAutomobiles Financial Services Capital goods Cement Power

Figure: 3.3

35UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

4) Magnifier Fund:

Objective:

To maximize wealth by actively managing a diversified equity portfolio.

Strategy:To invest in high quality equity security to provide long term capital appreciation with high

level of risk. This fund is suitable for those who want to have wealth maximization over

long-term period with equity market dynamics

Total Assets:As on 31st March, 2014 the total amount of assets held by the company under this fund is Rs.

977.29Crores

Investment in securities:Magnifier Fund is the product of BSLI which was made solely for those who want to have

wealth maximization over long-term period with equity market dynamics. Exposure to Equities

has decreased to 81.51% from 84.64% while that to MMI has increased to 17.62% from

14.32% on a MOM basis Magnifier fund continues to be predominantly invested in large

cap stocks and maintains a well-diversified portfolio with investments made across various

sectors, So nearly 0.08% of the fund is invested in the Government securities, 0.80% in

Corporate Debt, 81.51% in Equity and 17.62% is invested in MMI, Deposits, CBLO and

Others. The diversification of investment is given below.

36UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

Tabulated bifurcation of fund in different market

GOVERNMENT SECURITIES 0.08%

7.59% GOVERNMENT OF INDIA 2015 0.06%

7.61% GOVERNMENT OF INDIA 2015 0.02%

Corporate Debt 0.80%

8.2% ASHOK LEYLAND L TD. 2014 0.30%

9.63% POWER FINANCE CORPN. L TD. 2014 0.15%

9.25% I C I C I HOME FINANCE CO. L TD. 2014 0.15%

9.46% NATIONAL BANK FOR AGRI. AND RURAL DEVELOPMENT 2015 0.08%

9.2% IDFC L TD 2015 0.08%

8.6% POWER FINANCE CORPN. L TD. 2014 0.01%

8.8% HDB FINANCIAL SERVICES L TD 2016 0.01%

EQUITY 81.51%

ITC LTD. 6.12%

INFOSYS L TD. 5.44%

HDFC BANK LTD. 5.37%

RELIANCE INDUSTRIES LTD. 5.03%

ICICI BANK L TD. 4.89%

HOUSING DEVELOPMENT FINANCE CORPN. LTD. 4.50%

TATA CONSULTANCY SERVICES LTD. 4.19%

LARSEN AND TOUBRO L TD. 3.44%

TATA MOTORS LTD. 2.77%

SUN PHARMACEUTICAL INDS. LTD. 2.62%

OTHER EQUITY 37.14%

MMI, Deposits, CBLO & Others 17.62%

Table: 4.1

37UNIVERSITY OF MUMBAI

Page 38: SIP FINAL PROJECT

MMS PROJECT IIBM% Allocation of fund in different instrument

GOVERNMENT SECURITIES; 0.0173; 2%

Corporate Debt; 0.0269; 3%

EQUITY; 0.9359; 94%

MMI, Deposits, CBLO & Others;

0.0199000000000002; 2%

GOVERNMENT SECURITIES Corporate DebtEQUITY MMI, Deposits, CBLO & Others

Figure: 4.1

Maturity of Fund:99.46% of the fund have the maturity of less than 2 years, 0.07% of the fund has the maturity

from 2-7 years and the remaining 0.47% of the fund having maturity of more than 7 years, and

the average maturity period comes to 1.20 years, with low maturity, high risk and well

diversified fund generate good returns to the invested capital.

Fund Maturity

10.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

11.28%

74.53%

14.19%

Less than 2 years 2 to 7 years more than 7 years

Figure: 4.2

38UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

Sectorial allocation of fund:The fund that BSLI has collected from the customer has well diversified into different sectors,

from this Banking sector has occupied the 19.75% of the fund followed by Software/IT with

17.18% and the least fund hold by the sector is Telecommunication which comes to 3.06%.

The bifurcation of total funds is given below.

% Wise Sectorial Allocation

Banking

Software/IT

FMCG

Oil and Gas

Pharmaceutical

Automobiles

Financial Services

Capital goods

Metal

Telecommunication

0 5 10 15 20 25

19.75

17.18

9.46

10.68

9.24

8.02

6.11

4.22

3.73

3.06

% wise Sectoral Allocation

Figure: 4.3

39UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

5) Super 20 Fund:

Objective:

To generate long-term capital appreciation for policyholders by making investments in

fundamentally strong and liquid large cap companies.

Strategy: To build and manage a concentrated equity portfolio of 20 fundamentally strong large cap

stocks in terms of market capitalization by following an in depth research-focused investment

approach. The fund will attempt diversify across sectors and will invest in companies having

financial strength, robust, efficient & visionary management & adequate market liquidity . It

will adopt a disciplined and flexible approach towards investing with a focus on generating long-

term capital appreciation. The non-equity portion of the fund will be invested in highly rated money

market instruments and fixed deposits.

Total Assets:As on 31st March, 2014 the total amount of assets held by the company under this fund is Rs.

372.16Crores

Investment in securities:This fund absolutely deal in the equities and that also in large cap equities to earn greater

returns for long term capital appreciation for policy holder, though certain portion is kept for

the deposits and investment in money market instruments. Exposure to Equities has decreased

to 92.03% from 96.73% while that to MMI has increased to 7.97% from 3.27% on a

MOM basis. So nearly 92.03% of the fund is invested in Equity and 7.97% is invested in

MMI, Deposits, CBLO and Others. The diversification of investment is given below.

40UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

Tabulated bifurcation of fund in different market

securities Holding

EQUITY 92.03%

ITC LTD. 7.94%

RELIANCE INDUSTRIES LTD. 7.19%

HDFC BANK LTD. 6.93%

ICICI BANK L TD. 6.84%

INFOSYS L TD. 6.65%

TATA CONSULTANCY SERVICES LTD. 6.05%

HOUSING DEVELOPMENT FINANCE CORPN. LTD. 5.70%

LUPIN LTD. 5.52%

SUN PHARMACEUTICAL INDS. LTD. 5.15%

WIPRO LTD. 4.23%

OTHER EQUITY 29.83%

MMI, Deposits, CBLO & Others 7.97%

Table: 5.1

% Allocation of fund in different instrument

EQUITY; 92.03%

MMI, Deposits, CBLO & Others; 7.97%

Figure: 5.1

41UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

Maturity of Fund:100% of the fund have the maturity of less than 2 years, , and the average maturity period

comes to 0.01 years, with low maturity, high risk and well diversified fund generate good

returns to the invested capital.

Sectorial allocation of fund:As the major part of the fund is invested in the equities and in that the highest share is of

Software and IT with 21.53% of share in investment and on 2nd number comes of

pharmaceutical having 15.82%. The diversification of fund is given below in different sectors

% Wise Sectorial Allocation

Banking

Software/IT

FMCG

Oil and Gas

Pharm

aceutical

Automobiles

Financia

l Servi

ces

Capital g

oods

Cement

Power

20.12

16.57

10.67

13.46

7.87 8.45

6.054.65

2.61 2.84

Series1

Figure 5.2

42UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

6) Platinum Premier Fund :

Objective:To optimize the participation in an actively managed well-diversified equity portfolio of

fundamentally strong blue chip companies while using debt instruments and derivatives to

lock -in capital appreciations. The use of derivatives will be for hedging purposes only and as

approved by the IRDA.

Strategy:To dynamically manage the allocation between equities and fixed income instruments, while

using derivatives when necessary and for hedging purposes only. The equity investment

strategy will revolve around building and actively managing a well-diversified equity portfolio

of value& growth driven fundamentally strong blue chip companies by following a research-

focused investment approach. On the fixed income side, investments will be made in

government securities, high rated corporate bonds and money market instruments.

Total Assets:As on 31st March, 2014 the total amount of assets held by the company under this fund is Rs.

856.9Crores

Investment in securities:The most of the fund is used to invest in equities and also certain amount of fund also put in

the fixed income instruments. The fund are well diversified in the different sectors are as follows.

Exposure to Equities has increased to 93.59% from 88.56% while that to MMI has decreased to

1.99% from 5.83% on a MOM basis. Nearly 1.73% of the fund is invested in the Government

securities, 2.69% in Corporate Debt, 93.59% in Equity and 1.99% is invested in MMI,

Deposits, CBLO and Others.

43UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

Tabulated bifurcation of fund in different market

GOVERNMENT SECURITIES 1.73%

8.19% GOVERNMENT OF INDIA 2020 1.18%

6.35% GOVERNMENT OF INDIA 2020 0.55%

7.17% GOVERNMENT OF INDIA 2015 0.01%

Corporate Debt 2.69%

8.85% NHPC L TD. 2020 0.56%

9.18% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 2018 0.46%

RURAL ELECTRIFICATION CORPN. L TD. 2020 0.43%

9.25% POWER GRID CORPN. OF INDIA L TD. 2019 0.32%

8.46% RURAL ELECTRIFICATION CORPN. L TD. 2028 0.27%

9.61% POWER FINANCE CORPN. L TD. 2021 0.21%

8.85% N H P C L TD. 2019 0.19%

9.45% STATE BANK OF INDIA 2026 0.17%

9.2% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 2018 0.08%

EQUITY 93.59%

I T C L TD. 7.70%

RELIANCE INDUSTRIES LTD. 7.06%

INFOSYS L TD. 6.51%

H D F C BANK LTD. 6.44%

I C I C I BANK L TD. 6.36%

HOUSING DEVELOPMENT FINANCE CORPN. LTD. 5.15%

TATA CONSULTANCY SERVICES LTD. 4.61%

LARSEN AND TOUBRO L TD. 4.35%

STATE BANK OF INDIA 3.25%

OIL AND NATURAL GAS CORPN. L TD. 3.10%

OTHER EQUITY 39.06%

MMI, Deposits, CBLO & Others 1.99%

Table: 6.1

44UNIVERSITY OF MUMBAI

Page 45: SIP FINAL PROJECT

MMS PROJECT IIBM% Allocation of fund in different instrument

1.73%

2.69%

93.59%

1.99%

GOVERNMENT SECURITIESCorporate DebtEQUITYMMI, Deposits, CBLO & Others

Figure: 6.1

Maturity of Fund:There is low percentage of fund is under the maturity of less than 2 years which comes to

11.28% and the very high percentage of fund is under the maturity of 2-7 years category which

is 74.53%, whereas only 14.19% of fund is under the category of more than 7 year of maturity

but if we see the average maturity period comes to 6.32 years. Fund

Maturity

10.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

11.28%

74.53%

14.19%

Maturity

Less than 2 years 2 to 7 years more than 7 years

Figure: 6.2

45UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

Sectorial allocation of fund:The fund that BSLI has collected from the customer has well diversified into different sectors, from this

Banking sector has occupied the 20.12% of the fund followed by Software/IT with 16.57% and the least

fund hold by the sector is cement which comes to 2.61%. The bifurcation of total funds is given below.

% Wise Sectorial Allocation

1

20.1216.57

10.6713.46

7.87 8.456.05 4.65

2.61 2.84

Banking Software/IT FMCG Oil and Gas PharmaceuticalAutomobiles Financial Services Capital goods Cement Power

Figure: 6.3

46UNIVERSITY OF MUMBAI

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MMS PROJECT IIBM

7) Titanium III Fund

Objective:The primary objective of the fund is to provide Capital Protection, at a high level of

safety and liquidity through judicious investments in high quality short-term debt.

Strategy:

Generate better return with low level of risk through investment into fixed interest

securities having short-term maturity profile

Total Assets:As on 31st March, 2014 the total amount of assets held by the company under this fund is Rs.

7.36Crores

Investment in securities:The main objective of this fund is to secure the fund of investors by investing it in debt market

and also generate income for the investors by putting major share of the fund in well

diversified equity portfolio. The investment is done in such a way that it has high liquidity and

therefore having low maturity. Exposure to Equities has decreased to 54.61% from 50.66%

while that to MMI has slightly decreased to 1.99% from 1.45% on a MOM basis. Titanium III

fund is predominantly invested in large cap stocks and maintains a well-diversified

portfolio. The fund are well diversified in the different sectors are as follows . Nearly 14.61 % of the

fund is invested in the Government securities, 28.79% in Corporate Debt, 54.61% in Equity

and 1.99% is invested in MMI, Deposits, CBLO and Others.

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Tabulated bifurcation of fund in different market

GOVERNMENT SECURITIES 14.61%

7.17% Government Of India 2015 10.71%

7.59% Government Of India 2015 3.90%

Corporate Debt 28.79%

8.64% Power Grid Corpn. Of India Ltd. 2015 8.42%

9.37% National Housing Bank 2015 5.44%

9.15% Export Import Bank Of India 2015 5.43%

9.2% IDFC Ltd 2015 5.43%

8.95% Power Finance Corpn. Ltd. 2015 2.71%

9.46% National Bank For Agri. And Rural Development 2015 1.36%

EQUITY 54.61%

HDFC Bank Ltd. 4.00%

ITC Ltd. 3.74%

Reliance Industries Ltd. 3.69%

Housing Development Finance Corpn. Ltd. 3.50%

T ata Consultancy Services Ltd. 2.94%

Mahindra And Mahindra Ltd. 2.81%

ICICI Bank Ltd. 2.67%

Infosys Ltd. 2.57%

State Bank Of India 2.32%

Larsen And Toubro Ltd. 1.99%

Other Equity 24.38%

MMI, Deposits, CBLO & Others 1.99%

Table: 7.1

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% Allocation of fund in different instrument

10%

20%

68%

2%

GOVERNMENT SECURITIESCorporate DebtEQUITYMMI, Deposits, CBLO & Others

Figure: 7.1

Maturity of Fund:

The huge chunk of the fund having the low maturity which comes to 99.87% of the fund having

maturity of less than 2 years where as remaining having the maturity of more than 7 years.

Fund Maturity

10.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

11.28%

14.19%

Maturity

Less than 2 years more than 7 years

Figure: 7.2

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Sectorial allocation of fund:The fund are well diversified in different sectors with having low maturity to make them highly

liquid in nature. Therefore the top runner up sector who having high chunk of fund is Banking

(22.90%), 2nd is software and IT (16.11) and the last goes to telecommunication (2.23%). The

list of top sectors is given below.

10

2

4

6

8

10

12

14

16

5.44 5.87 6.56 6.568.26 8.84

11.6613.73 13.92 14.2

% wise Sectoral Allocation

Automobiles Diversified Auto ancilliary Cement Agri relatedCapital goods Software/IT Pharmaceutical Oil and Gas FMCG

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8) Pure Equity:

Objective: The objective of the fund is to provide long-term wealth creation by actively managing

portfolio through investment in selective businesses. Fund will not invest in businesses that

provide goods or services in gambling, lottery/contests, animal produce, liquor , tobacco,

entertainment like films or hotels, banks and financial institutions.

Strategy: The equity investment strategy will revolve around building and actively managing a well-

diversified equity portfolio of value &growth driven fundamentally strong companies by

following a research-focused investment approach. Equity investments will be made based

on the following criteria: Investment in companies will be made in strict compliance

with the objective of the fund, Fund will not invest in banks and financial institutions

and companies whose interest income exceeds 3% of total revenues, Investing in

leveraged-firms is restrained on the provision that heavily indebted companies ought to

serve a considerable amount of their revenue in interest payments.

Total Assets:As on 31st March, 2014 the total amount of assets held by the company under this fund is Rs.

5.02Crores

Investment in securities:The fund that has generated from the customer will be invested in the business and not on those

businesses that provide goods or service in gambling, lottery/contests, animal produce,

liquor , tobacco, entertainment like films or hotels, banks and financial institutions. It has

been invested by keeping in mind for long term to generate high profit with well

diversification. Exposure to Equities has increased to 96.91% from

95.41% while that to MMI has decreased to 3.09% from 4.59% on a MOM basis. Nearly

96.91% of the fund is invested in the Equity and 3.09% is invested in MMI, Deposits, CBLO

and Others.

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Tabulated bifurcation of fund in different market

securities

Holdin

g

EQUITY 96.61%

HDFC Bank Ltd. 4.00%

ITC Ltd. 3.74%

Reliance Industries Ltd. 3.69%

Housing Development Finance Corpn. Ltd. 3.50%

Tata Consultancy Services Ltd. 2.94%

Mahindra And Mahindra Ltd. 2.81%

ICICI Bank Ltd. 2.67%

Infosys Ltd. 2.57%

State Bank Of India 2.32%

Larsen And Toubro Ltd. 1.99%

Other Equity 24.38%

MMI, Deposits, CBLO & Others 3.09%

Table: 8.1

% Allocation of fund in different instrument

96.61%

3.09%

EQUITY MMI, Deposits, CBLO & Others

Figure: 8.1

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Maturity of Fund:This fund having the long term maturity which is basically more than 7 years because all the

funds are invested in the equity and money market instrument and its similar type.

Sectorial allocation of fund:The fund that BSLI has collected from the customer has well diversified into different sectors, from this

FMCG sector has occupied the 14.20% of the fund followed by Oil and Gas with 13.92% and the least

fund hold by the sector is Automobile which comes to 5.44%. The bifurcation of total funds is given

below.

% Wise Sectorial Allocation

10

2

4

6

8

10

12

14

16

5.44 5.87 6.56 6.568.26 8.84

11.6613.73 13.92 14.2

Automobiles Diversified Auto ancilliary Cement Agri related Capital goods

Software/IT Pharmaceutical Oil and Gas FMCG

Figure: 8.2

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9) Liquid Plus:

Objective:To provide superior risk-adjusted returns with low volatility at a high level of safety and

liquidity through investments in high quality short term fixed income instruments - upto1 year

maturity

Strategy:The fund will invest in high quality short-term fixed income instruments – up to 1-year

maturity. The endeavor will be to optimize returns while providing liquidity and safety with

very low risk profile.

Total Assets:As on 31st March, 2014 the total amount of assets held by the company under this fund is Rs.

28.52 Crores.

Investment in securities:As the name suggest liquid plus fund, it is but obvious that this fund is purely for those who do

not want to make long term investment and therefore whole of fund is invested in high quality

short term fixed income instruments - upto1 year maturity. The average maturity of the

fund has slightly increased to 0.66 years from 0.42 years in the previous month.

Tabulated bifurcation of fund in different market

securities

Holdin

g

MMI, Deposits, CBLO & Others 100.00%

Table: 9.1

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% Allocation of fund in different instrument

100%

MMI, Deposits, CBLO & Others

1

Figure: 9.1

Maturity Profile:The fund is invested totally in short term liquid market with fixed return and low risk profile

there the maturity of the whole asset is less than 2 years.

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10) Pension Growth Fund:

Objective:This fund option helps build your capital and generate better returns at moderate level of risk,

over a medium or long-term period through a balance of investment in equity and debt.

Strategy : Generate better return with moderate level of risk through active management of fixed income

portfolio and focus on creating long term equity portfolio which will enhance yield of

composite portfolio with low level of risk appetite.

Total Assets:As on 31st March, 2014 the total amount of assets held by the company under this fund is Rs.

36.49Crores

Investment in securities:The fund are allocated under this product in such a way that it generate better return over a

long period of time with moderate level of risk. As the name of this fund is pension plan

therefore to generate the amount for the long period of time the company need to invest in

those assets which have long maturity and fixed income over a long period of time.Exposure

to Equities has decreased to 18.42% from19.14% while that to MMI has increased to

17.44% from 16.68% on a MOM basis. Nearly 29.34 % of the fund is invested in the

Government securities, 34.81% in Corporate Debt, 18.42% in Equity and 17.44% is invested in

MMI, Deposits, CBLO and Others.

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Tabulated bifurcation of fund in different market

securities

Holdin

g

GOVERNMENT SECURITIES 29.34%

8.33% Government Of India 2026 6.44%

8.32% Government Of India 2032 5.10%

8.2% Government Of India 2022 3.50%

7.95% Government Of India 2032 2.83%

8.79% Government Of India 2021 2.69%

8.28% Government Of India 2032 1.90%

7.46% Government Of India 2017 1.85%

9.2% Government Of India 2030 1.38%

8.97% Government Of India 2030 1.36%

5.64% Government Of India 2019 1.08%

Other Government Securities 1.21%

Corporate Debt 34.81%

9.2% Housing Development Finance Corpn. Ltd. 2018 5.42%

9.2% Power Grid Corpn. Of India Ltd. 2020 5.38%

9.02% Rural Electrification Corpn. Ltd. 2022 5.29%

9.48% Rural Electrification Corpn. Ltd. 2021 3.53%

9.4% National Bank For Agri. And Rural Development 2016 2.74%

9.65% Cholamandalam Investment And Finance Co. Ltd. 2018 2.70%

9.3% State Bank Of India 2021 2.70%

9.55% Hindalco Industries Ltd. 2022 2.68%

8.8% Power Grid Corpn. Of India Ltd. 2014 1.37%

9.35% Power Grid Corpn. Of India Ltd. 2021 1.35%

Other Corporate Debt 1.65%

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EQUITY 18.42%

ITC Ltd. 1.76%

Infosys Ltd. 1.54%

HDFC Bank Ltd. 1.37%

Housing Development Finance Corpn. Ltd. 1.16%

ICICI Bank Ltd. 1.08%

Reliance Industries Ltd. 1.02%

Tata Consultancy Services Ltd. 0.93%

Larsen And Toubro Ltd. 0.74%

Lupin Ltd. 0.71%

Oil And Natural Gas Corpn. Ltd. 0.64%

Other Equity 7.47%

MMI, Deposits, CBLO & Others 17.44%

Table: 10.1

% Allocation of fund in different instrument

29.34%

34.81%

18.42%

17.44%

Chart Title

GOVERNMENT SECURITIES Corporate DebtEQUITY MMI, Deposits, CBLO & Others

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MMS PROJECT IIBMFigure: 10.1

Maturity of Fund:The assets having the maturity of less than 2 years to more than seven years. This product has

been created for long term purpose who having long maturity and therefore more percentage of

fund comes under the category of more than 7 years which comes to 51.22%, 36.48% of funds

comes under the category of 2 – 7 years and only 12.30% of fund comes under the category of

less than 2 years, and average maturity comes to 8.32 years.

Fund Maturity

Perc.

Less than 2 years

2 to 7 years

more than 7 years

12.30%

36.48%

51.22%

Less than 2 years 2 to 7 years more than 7 years

Figure: 10.2

Sectorial allocation of fund:The fund that BSLI has collected from the customer has well diversified into different sectors,

from this Banking sector has occupied the 22.15% of the fund followed by Software/IT with

16.25% and the least fund hold by the sector is Alcohol Beverages which comes to 1.62 %.

The bifurcation of total funds is given below.

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% Wise Sectorial Allocation

10

5

10

15

20

25

7.21

1.62

6.28

22.15

2

5.48

16.25

10.35

11.93 11.73

Automobiles Alcohol BeveragesFinancial ServicesBanking MetalCapital goods Software/ITPharmaceuticalOil and Gas FMCG

Figure: 10.3

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CHAPTER: 5

FINDINGS

To be successful in marketing of insurance products, the entire business scenario

has to be taken into account.

Attractive schemes and brand image are the most important factor that influences the buying

behavior of the consumers.

Majority of respondents will shift to any other insurance company.

People a re no t sa t i s f i ed wi th the op ted insurance . I t was found tha t the

reason fo r the dissatisfaction of consumer is high premium, delay in claim

settlement and poor after sale service.

So to achieve a greater insurance penetration, insurance sector companies have to

create a more vibrant and competitive industry, with greater efficiency, choice of products

and value for customers.

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CHAPTER: 6

RECOMMENDATIONS

Birla Sun Life Insurance Ltd should have more pension plans, more children plans and more

help line plans.

Birla Sun Life Insurance Ltd should have proper division of departments under heads.

Developing and implementing superior risk management and investment strategies

to offer sustainable and stable returns to our policyholders.

Company should target each and every class of the society.

Leveraging technology to service customers quickly, efficiently and conveniently.

Company should provide full information to the customers before targeting so they

can take interest and become more aware about insurance.

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CHAPTER: 7

CONCLUSION

Different product of BSLI has different features , product like Assured fund in this the amount are

invested in high quality short term maturity securities, whereas product like Pure Equity the fund are

invested for long term in blue chip companies by diversifying the investment. Therefore BSLI invest

the fund according to the requirement of the customer, if the customer has chooses the fund like liquid

plus equity then the BSLI will invest in those assets which having low maturity like MMI and short

term debt which secure the money of investor.

The market potential for a private insurance company is found to be greater in the long

run as mos t o f the Ind ians a re o f t he op in ion tha t , p r iva t e insurance companies

would be ab l e t o  perform well in the future. The private and foreign insurance companies have to

take immediate steps in appointing more number of agents and/or advisors in addition to the

employees as it has been found out that agents are the best channel to reach the general

public regarding selling of insurance products. The private and foreign insurance

companies have to concentrate on the factors like 'Prevention of Loss', 'Assured Returns'

and 'Long term Investment'. They can also focus on an insurance amount of Rs. 1 – 2

Lakh with 'money back policies'. Hence, the market has potential . The private

and foreign insurance companies that are taking immediate steps can tap it easily & rapidly.

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BIBLIOGRAPHY

Birlasunlife.com

Ssrn.com

Doaj.org

business.illinois.edu

www.studymode.com 

Moneycontrol.com

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