A C0HPARATlvF STu0Y

FTwFFt ullP At0 HuTuAl

Fut0S lt H0FC
5UMMER TRAlNlNG PROjECT REPORT 2011-12
PREPARED UNDER THE GUlDANCE OF 5H. G.T.V.L.N. CHARYULU [PROjECT GUlDEj
UMLSH SHARMA
032 88A(MOM)
vtb SLMLSTLR
TA8LL OF CONTLNT TA8LL OF CONTLNT
1I1LL PAGL NO
1. IN1kCDUC1ICN
2. C8ILC1IVL CI 1nL
S1UD
3. kLSLAkCn
ML1nCDLCG
4. CCMAN kCIILL
5. CCLLLC1ICN CI DA1A
6. ANALSIS CI DA1A
7. kLSUL1 AND IINDINGS
|NTRODUCT|ON |NTRODUCT|ON
O Unit Linked lnsurance PoIicies {ULlPs} as an lnvestment avenue are
closest to mutual tunos ln terms ot tbelr structure ano tunctlonlng. As ls tbe case
wlt mutual tunos, tbe lnsurance company allots unlts lnvestors ln UL|Ps ano a net
asset value (NAv) ls oeclareo tor tbe same on a oally basls.
O 8enetlts ot UL|P
O 1. Tern/Tenure
O Tbe UL|P cllent must bave tbe optlon to cboose a term/tenure.
O Tbe UL|P must bave a mlnlmum tenure ot 5 years.
O 2. 5un Assured
O On tbe same llnes, now tbere ls a sum assureo tbat cllents can assoclate wltb. Tbe
mlnlmum sum assureo ls calculateo as: (Term/2 * Annual Premlum) or (5 * Annual
Premlum) wblcbever ls blgber.
O . Preniun paynents
O |t less tban tlrst 3 years premlums are palo, tbe llte cover wlll lapse ano pollcy wlll be
termlnateo by paylng tbe surrenoer value. However, lt at least tlrst 3 years premlums
bave been palo, tben tbe llte cover woulo bave to contlnue at tbe optlon ot tbe
cllent.
Contlue Contlue.. ..
O . 5urrender vaIue
Tbe surrenoer value woulo be payable only
atter completlon ot 3 pollcy years.
O . PartiaI withdrawaIs
Tbe cllent can make partlal wltborawals
only atter 3 pollcy years.
O . Loans
No loans wlll be granteo unoer tbe new
UL|P.
About Mutual tunos About Mutual tunos
O A :9:,1:3/ls a trust tbat pools tbe savlngs ot a
number ot lnvestors wbo sbare a common tlnanclal
goal. |t ls essentlally a olversltleo porttollo ot tlnanclal
lnstruments - tbese coulo be equltles, oebentures /
bonos or money market lnstruments. Tbe corpus ot
tbe tuno ls tben oeployeo ln lnvestment alternatlves
tbat belp to meet preoetlneo lnvestment objectlves.
Tbe lncome earneo tbrougb tbese lnvestments ano
tbe capltal appreclatlon reallzeo are sbareo by lts unlt
boloers ln proportlon to tbe number ot unlts owneo
by tbem. Tbus a :9:,1:3/ls a sultable lnvestment
tor tbe common man as lt otters an opportunlty to
lnvest ln a olversltleo, protesslonally manageo basket
ot securltles at a relatlvely low cost.
C8!LC1lvL Cl 1PL S1uu? C8!LC1lvL Cl 1PL S1uu?
O To eplorlng tbe lnvestor's preterence
towaros tbe Mutual Funo ano UL|P.
O To evaluate tbe rlsk ano return ln Mutual
Funo ano UL|P.
O To galn tbe ln oeptb knowleoge about
Mutual Funo ano UL|P ln HDFC.
O To loentlty tbe lnvestor's contloence ln
Mutual Funo ano UL|P.
O To otter tew suggestlons baseo on tbe
tlnolngs ot tbe stuoy.
LSLACP ML1PCuLCC? LSLACP ML1PCuLCC?
O A questlonnalre bas been prepareo wblcb
conslst ot 14 questlons ano lt bas been
aomlnlstereo on tbe lnvestor's ot Delbl.
15-15 responoents bave been cbosen
trom Mutual Funos ano UL|P boloers.
O Sampllng Tecbnlque: - Slmple Ranoom
Sampllng.
O Sampllng Unlt: - Responoents are trom
Delbl.
Company protlle Company protlle
O HDFC was starteo by Hasmukb 8bal Parekb
ln 1977 wltb tbe tormatlon ot Malbotra
Commlttee. HDFC was lncorporateo wltb
tbe prlmary objectlve ot meetlng a soclal
neeo tbat ot promotlng bome ownersblp by
provlolng long-term tlnance to bousebolos
tor tbelr bouslng neeos. HDFC was
promoteo wltb an lnltlal sbare capltal ot Rs.
10 crores. HDFC bas slnce emergeo as tbe
largest resloentlal mortgage tlnance
lnstltutlon ln tbe country.
HDFC's maln goals are to: HDFC's maln goals are to:
O a) Develop close relatlonsblps wltb
lnolvloual bousebolos.
O b) Malntaln lts posltlon as tbe premler
bouslng tlnance lnstltutlon ln tbe country.
O c) Transtorm loeas lnto vlable ano
creatlve solutlons.
O o) Provloe conslstently blgb returns to
sbareboloers.
O e) To grow tbrougb olversltlcatlon by
leveraglng ott tbe elstlng cllent base.
PulC uLl Mu1uAL lunuS PulC uLl Mu1uAL lunuS
O MUTUAL FUND OF HDFC:
O Cblloren's Gltt Funo
O Debt/ |ncome Funo
O Lqulty / Growtb Funo
O Lcbange Traoeo Funos
O Funo ot Funo Scbemes
O Fleo Maturlty Plan
O Llqulo Funos
O Quarterly |nterval Funo
O UL|P OF HDFC:
O ProGrowtb Flel
O CRLAST
O LTC.
COLLECTlON OF DATA COLLECTlON OF DATA
O r|mary Data
1he prlmary daLa are Lhose whlch are
collecLed a fresh and for Lhe flrsL Llme and
Lhus happen Lo be orlglnal ln characLer
under Lhls pro[ecL dlrecL collecLlon of daLa
from source of lnformaLlon Lechnlques
such as personal lnLervlewlng and survey
Lhrough quesLlonnalre for cusLomers has
been consldered
O Secondary Data Secondary daLa ls one whlch has
already been collecLed by someone else and
whlch has already been passed Lhrough sLaLlsLlcal
processlng
O under Lhls pro[ecL secondary daLa ls been
collecLed from [ournals magazlnes web slLes
O Deve|op|ng Samp|e Des|gn
Sample deslgn refers Lo number of lLems Lo be
lncluded ln sample
lL refers Lo Lhe Lechnlque or procedure Lhe
researcher would adopL
AnAL?SlS Cl uA1A AnAL?SlS Cl uA1A
INVESTMENT
FLEXIBILITY
CORE
PRODUCT
FACTOR
RISK RETURN
FACTOR
TRANSPAREN
CY
TAX FREE
INCOME
Lock n Period Less benefit Market Risk nformation Tax rebates
Less Safe More Risky
Less Assured
Returns
O MUTUAL FUND
Investor's
Protection
Cost and
Time
Effective
Security
Options
Risk
Manageme
nt
Information
FIow
Term
AnaIysis
Riding the
YeiId Curve
Tax
Rebates
Market Risk
Less Safe Less benefit
Death
Benefit Short Term
Assured
Returns
Term
nsurance Charges Flexible More Risky nformation
Fewer
Returns
O UL|P
COMPAR|S|ON 8LTWLLN UL|P COMPAR|S|ON 8LTWLLN UL|P
AND MUTUAL FUND AND MUTUAL FUND
ULIPs MutuaI Funds
nvestment 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
mandatory
Modifying 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 ULP
investments
Section 80C benefits are
available only on investments
in tax-saving funds
LSuL1 Anu llnulnCS LSuL1 Anu llnulnCS
O Tbe stuoy sbows tbat lntormatlon ot botb tbe
lnvestment optlons ls easlly avallable.
O Tbe lnvestment oone by lnvestor's ls accorolng to
tbelr neeos l.e. tbe term ot tbe plan, returns, ta
rebates, tlelblllty ano rlsk.
O From tbe stuoy oone we can easlly oraw an
lnterence tbat tbe number ot Mutual Funo
lnvestor ano UL|P lnvestors are equal.
O 8otb lnvestments bave provloeo assureo returns
to lnvestors.
O UL|P plans llke CRLAST ln HDFC provlolng mucb
more sate return wltb low rlsk ano blgb protlt .