IDENTIFYING THE CHANGING INVESTMENT BEHAVIOUR AMONG PEOPLE FOR HDFC LIFE

8/13/2019 IDENTIFYING THE CHANGING INVESTMENT BEHAVIOUR AMONG PEOPLE FOR HDFC LIFE

1/23

SUMMER TRAINING REPORT

STUDY ONCONSUMER PERCEPTIOM ON LIFE INSURANCE-

Identifying the Changing Investment Behaviour among

People for HDFC LIFE INSURANCE COMPANY.

By:

Deepak Rai

Roll No.-1212470043


2/23

INTRODUCTION TO ORGANISATION

HDFC Life is a joint venture between Housing Development Finance

Corporation Limited (HDFC and Standard Life plc.

It was established after private companies were allowed to enterthe insurance industry in the year 2000.

HDFC Ltd. holds 72.37% and Standard Life (Mauritius Holding) Ltd.

holds 26.00% of equity in the joint venture, while the rest is held by

others.

The company currently has 35 retail and 10 group products in its

portfolio, along with 10 optional rider benefits catering to the savings,

investment, protection and retirement needs of customers.

HDFC Life continues to have one of the widest reaches among new

insurance companies with about 500 branches in India touching

customers in over 900 cities and towns. The company has also

established a liaison office in Dubai.


3/23

CHIEF EXECUTIVE OFFICER

(CEO)

GENARAL MANAGER

HEAD RETAIL SALES

ZONAL MANAGER (ZM)

REGIONAL MANAGER (RM)

SALES MANAGER(SM)

BRANCH MANAGER (BM)

ASSISTANT SALES MANAGER

(ASM)

ORGANISATIONAL STRUCTURE HDFC LIFE PRODUCTS

1. Protection Plans

2. Retirement Plans

3. Health Plans

4. Savings & Investment Plans

o HDFC Life Sampoorn Samridhi

Insurance Plan

o HDFC Endowment Assurance Plan

o HDFC SL Crest

o HDFC SL ProGrowth Super II

o HDFC SL ProGrowth Flexi

o HDFC SL ProGrowth Maximiser

o HDFC SL New Money Back Plan

o HDFC Assurance Plan

o HDFC Savings Assurance Plan

o Endowment Gain Insurance Plan

o Classic Assure Insurance Plan


4/23

SWOT ANALYSIS

STRENGTH

Company stands on first rank in Private

insurance Sector in India.

It has got already maximum policiesrather than government structures in

India.

That is the proof of the strength that

company has achieved & got maximum

Awards & medals in last 5 years rather

than all companies in this sector.

It has highest speed of achievements

and growth due to maximum support

from their employees and staff members

etc. in all over corporate sector.

WEAKNESSES

There are maximum competitors of

this sector in whole corporate world.

Company didnt declared any kind ofbonus or dividend in last 6 years and

thats while company had lost the

reliance of some stack holders and

capital investors etc.

Decreasing in policies due to recession

in the market for last 0.5 year.

Minimum policies of industrial sector.

More and more absence of directors in

board meetings due to intersection

disputes.


5/23

OPPORTUNITIES

Establish new policies of

industrial sector, accident

claims, Automobile

sectors.

Cover maximum areaswhich are unknown

introductory areas of

insurance facilities.

Recover the area of lost in

recession.

Includes more countries in

future prospectus budgets.

THREATS

Very affected point is recession

in the market and major

blocked money of the public in

infrastructure sector.

Increasing competitors in themarket.

Fear of establishment of

beneficial policies from LIC

(govt.) Blockage of money due to

useless decisions in huge

amount.


6/23

RESEARCH OBJECTIVE

To identify the changing behaviour regarding investment

specially for HDFC LIFE.

To undersatand the problems and satisfaction level of policy

holders.

For the analysis of the companys financial and marketing

perfomance.

For highlighting the factors affecting the investment decision of

a person and also the mind set at the time of choosing

alternatives


7/23

RESEARCH METHODOLOGY

Sampling Unit:The respondants who were asked to fill out questionnaires are the samplingunits. These comprise of employees of Banks, Govt. Employees, Self Employees

etc.

Sample size:

The sample size was restricted to only 100, which comprised of mainly peoplesfrom different regions of Uttar Pradesh and they are of the group of FNR(Friends, Natives & Relatives) due to time constraints.

SamplingTechnique:Initially, a rough draft was prepared keeping in mind the objective of the

research. A pilot study was done in order to know the accuracy of theQuestionnaire. The final Questionnaire was arrived only after certain importantchanges were done. Thus the sampling came out to be judgemental andconvenient.


8/23

DATA ANALYSIS

AGE OF THE RESPONDENTS HAVING INSURANCE

AGE NO. OF PERSONS

50 3

0

10

20

30

40

50

NO. OF PERSONS

NO. OFPERSONS

QUALIFICATION OF RESPONDENTS

QUALIFICATION NO. OF PEOPLES

HSC 12

SSC 35

GRADUATE 42

POST GRADUATE 11

HSC12%

SSC

35%

GRAD

UATE

42%

POSTGRAD

UATE

11%

NO OF PERSONS

Large no of respondents are of qualificationas graduate i.e. 42%.

MOST OF THE RESPONDENTS ARE OF AGE CLASSOF 30-40.


9/23

DATA SHOWING ANNUAL

INCOME OF RESPONDENTS

ANNUAL INCOMENO.OFRESPONDENTS

SHARE (%)

>1.8L 25 25

1.8L-3.6L 35 35

3.6L-6L 30 30

6L-8.4L 10 10

25%

35%

30%

10%INCOME >1.8 LAKHS

1.8-3.6

LAKHS3.6-6 LAKHS

6-8.4 LAKHS

INTERPRETATION

It can be noted that maximum amount of people

(35%) fall in the category of 1.8-3.6 lakhs slot .

NO. OF RESPONDENTS WHO

INVEST

RESPONSE NO OFRESPONDENTS

YES 95%

NO 0%

95%

5%

NO OF PERSONS

YES NO

INTERPRETATION95% of the Respondents are investing while others

are not very keen regarding investments.


10/23

WHERE THE PEOPLE INVEST MOST

0

10

20

30

40

5060

NO. OF PERSONS

NO OF

PERSONS

DATA SHOWS PEOPLE HAVING INSURANCE

RESPONSE NO. OF

RESPONDENT

S

SHARE (%)

Yes 70 70%

No 30 30%

INTERPRETATION

30% of the respondents are not interested towards

insurance while 70% of the respondents found

insurance as tool to protect family and also for tax

savings.

INTERPRETATION

Most of the persons are investing in the

Insurance and after that few persons using all

factors as tool to investments.


11/23


12/23

AMOUNT OF MONEY RESPONDENDENTS WANTS TO INVEST

AMOUNT NO OF RESPONDENTS % OF RESPONDENTS

50000 6 6%

TOTAL 100

0

10

20

30

40

NO OF

RESPONDENTS

VALUE IN THOUSANDS (K)


13/23

STATISTICAL TOOL

AMOUNT THAT RESPONDENT WANTS TO INVEST -

AMOUNT

(C.I.) in

thousands

rupees

NO OF

RESPONDENTSX d = (X-A)/i d2 f d f d2

0-10 10 5 -2 4 -20 40

10-20 16 15 -1 1 -16 16

20-30 37 25 0 0 0 0

30-40 23 35 1 1 23 23

40-50 8 45 2 4 16 32

50-60 6 55 3 9 18 54

TOTAL 100 21 165

Mean == 27.2=27 approxS.D. = 12.6724 = 13 approx

INTERPRETATION -

Mean- S.D. = 14

Mean + S.D.= 40

So, Range will be (14-40)

Hence, 68% of the population like have investment between Class

(10-20), (20-30), & (30-40) , also being more specifically (20-30) amount is liked bymost.


14/23

0

0.2

0.4

0.6

0.8

1

1.2

2012-2013 2011-2012

Current Ratio (%)

A) CURRENT RATIO

CURRENT ASSETS:

Cash and bank balances: 2,826,362

Advances and Other Assets: 4,917,758

CURRENT LIABILITIES: 12,281,585

CURRENT RATIO= CURRENT ASSETS/CURRENT LIABILITIES

2012-13= 77,44,120/1,22,81,585

=0.63:1

2011-12 = 95,37,359/88,20,225

=1.08:1

CommentCurrent ratio of HDFC LIFE insurance, has 0.63:1, it means it is less than 1 that indicates firms ability to

meet current obligations & greater the safety of funds of short-term creditors. It also indicates the sound solvencyof the company is lover.

FINANCIAL ANALYSIS


15/23

LIQUIDITY RATIO:Current Assets-Stock/Current Liabilities- BOD2012-13= 77,44,120-15,21,520/12,281,585

=0.60:1

2011-12= 95,37,359-45,44,600/88,20,225= 0.57:1

CommentThe liquid ratio of HDFC life in 2011 was 0.57 and in 2012 is .60 so increasing theliquid ratio and company have a good liquid position over the year.


16/23

NET PROFIT RATIO=

NET PROFIT RATIO

2012-13= = 22.09%

2011-12 = = 21.58%

21.2

21.4

21.6

21.8

22

22.2

2012-2013 2011-2012

Net Profit Ratio(%)

Comment:-The net profit ratio of HDFC LIFE in 2011 was 21.58% and in 2012 is22.09% therefore the net profit is increasing. The company have goodprofit margin. The company should more and more profit for the future.


17/23

(I)RETURN ON INVESTMENT

RETURN ON

INVESTMENT= EBIT

CAPITAL : SURPLUS:RESERVE 100

2012-13 = 5,29,63

9,68,: 552,892 100

= 24.86%

2011-12 = 275844

9,68,: 552,892 100

=13.60%

&

0

5

10

15

20

25

2012-2013 2011-2012

Series 3

Comment:-

The return on investment ratio of HDFC LIFE in 2011 was 13.60% and in 2012 is

24.86% there increasing the return on investment over the year so company become a profitableover the year.


18/23

DEBT-EQUITY RATIO

DEBT-EQUITY RATIO =;

* 100

2012-13 =

=1.58%

2011-12=5794775

463782 100

=1.25%

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

2012-2013 2011-2012

Series 3

Comment:The debt-equity ratio of HDFC LIFE in 2011 was 1.25% and in 2012 is 1.58% there

increasing the level of equity against long term debt.

FACTS/FINDINGS


19/23

FACTS/FINDINGS

1.As the people think that insurance is a tool to protect their family & a tax saving device. They

are aware of the fact & realizing its, importance. The company should try to expand & build up

its infrastructure because there is a large potential for insurance in India.

2.Company should come up with more branches in remote areas with the objective and goals tomeet the demands & expectations of the public. Because the entrance of private players will

increase the competition and it would be a tough task to secure a good position in market.

3.Since HDFC STANDARD LIFE INSURANCE LTDis leading with several companies

policies it should be easy for them to penetrate into the market and secure a good position if they

pay greater attention to the service part provided to their customer and thereby forming a longand trusted relationship.

4.As seen from the survey that at present 70% of the customer are having insurance policy out of

which 87.5% of the customer are planning for new investments. So it can be a good potential for

the company and they should make an attempt to trap these customers.

5. 43% of the customer is even ready to go for insurance if a service provider away from their

home is providing it. But intend they should provide good products and services. The company

should try to convince these customers and get them in its favor.

6. Company should try to maintain its Current Ratio to 2:1, Liquidity Ratio to 1:1, And also

Profitability and Debt Equity Ratio should be improved a lot.


20/23

CONCLUSION

People are beginning to look beyond LIC for their insurance needs and are willing to

trust private players with their hard earned money.

A high penetration of print , radio and Television ad campaigns over the years is

beginning to have its impact now

People viewing insurance as a tax saving and investment instrument as much as a

protective one

The general satisfaction levels among public with regards to policy and agents still

requires improvement

LIC has never been known for prompt service or customer oriented methods and

HDFC Standard Life can build on these factors.

HDFC has been remarkable in the field of service, its focus on building a best team

of Financial Consultants making its service far better than other Companies.

Company is expanding and reaching to the remote location by Agents and local

centers, this is helping in development of its financial status.


21/23

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts FNR

(friends, natives & relatives) and does not necessarilyshows a pattern applicable to all of Country .A smallnumber of 100 also does not show the pattern of thewhole city.

2. Some respondents were reluctant to divulge personalinformation which can affect the validity of all responses.

3. In a rapidly changing industry, analysis on one day orin one segment can change very quickly. Theenvironmental changes are vital to be considered in orderto assimilate the findings.4. The training period was very less.

BIBLIOGRAPHY


22/23

1. BOOKS REFFERED:

Marketing Research- G.C Beri( TMH Publication 4thedition) Chapter 4- Page No. 48-52,Chapter 5- Page No. 61-66, Chapter No. 7-Page.No. 108-115.

Marketing Management- Kotler P. (2010) Pearson Publications; 13th

edition New Delhi, PageNo.50.Research MethodologyC.R. Kothari (2010), New Age International Pvt. Ltd.; 2ndEdition,New Delhi, Page No. 160.

2.WEBSITES REFFERED:WWW.CIFAINSURANCE.COM

WWW.MONEYOUTLOOK.COMWWW.INSURANCE.IND.COMWWW.HDFCINURANCE.COM

3. IMPORTANT LINKS:

http://www.hdfclife.com/insurance-planshttp://www.hdfclife.com/abouthttp://www.hdfclife.com/about-us/vision-valueshttp://en.wikipedia.org/wiki/HDFC_Lifehttp://www.irda.gov.in/ADMINCMS/cms/frmGeneral_NoYearList.aspx?DF=AR&mid=11.1

http://www.policyholder.gov.in/Insurance_Awareness_Survey.aspx

BIBLIOGRAPHY
http://www.cifainsurance.com/http://www.moneyoutlook.com/http://www.insurance.ind.com/http://www.hdfcinurance.com/http://www.hdfclife.com/insurance-planshttp://www.hdfclife.com/abouthttp://www.hdfclife.com/about-us/vision-valueshttp://en.wikipedia.org/wiki/HDFC_Lifehttp://www.irda.gov.in/ADMINCMS/cms/frmGeneral_NoYearList.aspx?DF=AR&mid=11.1http://www.irda.gov.in/ADMINCMS/cms/frmGeneral_NoYearList.aspx?DF=AR&mid=11.1http://www.policyholder.gov.in/Insurance_Awareness_Survey.aspxhttp://www.policyholder.gov.in/Insurance_Awareness_Survey.aspxhttp://www.policyholder.gov.in/Insurance_Awareness_Survey.aspxhttp://www.irda.gov.in/ADMINCMS/cms/frmGeneral_NoYearList.aspx?DF=AR&mid=11.1http://www.irda.gov.in/ADMINCMS/cms/frmGeneral_NoYearList.aspx?DF=AR&mid=11.1http://en.wikipedia.org/wiki/HDFC_Lifehttp://www.hdfclife.com/about-us/vision-valueshttp://www.hdfclife.com/about-us/vision-valueshttp://www.hdfclife.com/about-us/vision-valueshttp://www.hdfclife.com/about-us/vision-valueshttp://www.hdfclife.com/about-us/vision-valueshttp://www.hdfclife.com/abouthttp://www.hdfclife.com/insurance-planshttp://www.hdfclife.com/insurance-planshttp://www.hdfclife.com/insurance-planshttp://www.hdfcinurance.com/http://www.insurance.ind.com/http://www.moneyoutlook.com/http://www.cifainsurance.com/


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IDENTIFYING THE CHANGING INVESTMENT BEHAVIOUR AMONG PEOPLE FOR HDFC LIFE

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