MF Vs ULIPS

8/8/2019 MF Vs ULIPS

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A Report

OnTo Study the Marketing

Strategies of ULIPsAnd

Mutual Fund

With Special Emphasis onReliance Life Insurance Company

Ltd.


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About the company

Reliance Life Insurance, a part of the Reliance

Anil Dhirubhai Ambani Group is one of India's

fastest growing life insurance company.

Reliance Life Insurance has 1,145 branches

and over 142,000 agents.

It offers 35 products covering savings,

protection & investment requirements.


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Objectives of the project

The primary objective of the research is to

help RLIC to device a marketing strategy to

market ULIPs differently than Mutual Funds.

It will also serve the purpose of understanding

the investment pattern of the investor based

on some parameters- Demographic ,

Economic and on family cycle.


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Value added to the company

With the activity of filling of the questionnaire from the

household and the corporate people we are trying to generate

prospect customers out of the suspect customers. This will

definitely help the company to increase its market share.

This activity will also create brand awareness among the

customers.

The comparative analysis of Mutual Fund against ULIPs will help

the host company to frame out the future marketing strategies.

The inputs from the project may help the company to carry outlocal promotional campaigns and open various avenues to reach

out to the customers.

The inputs from the project may also be utilized for the future

studies


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Limitations

Off field

The promotional activities conducted by our

marketing team are limited to the territory of Jammu.

The use of questionnaire in the data collection

activities leads to many discrepancy in the information

given.

The customers are reluctant to reveal their personal

details in the Questionnaire.

Data on Mutual Fund market will be based on the

secondary data.


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Limitations.

On field

Lack of the acceptance of the private players in

the insurance industry is the major problem faced

while undergoing this project.


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Research Methodology

Used primary data (received through

customer feedback) and

Secondary data (reference materials) toanalyze the marketing strategies utilized.

Sample size 200 respondents.


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Demographics for the study


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Gender


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Occupation


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ANALYSIS AND INTERPRETATION ON

THE BASIS OF THE QUESTIONNAIRE

Do you have any life Insurance cover?


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Analysis

No. of respondents who have the insuranceare far more in Number.

Interpretation

Life insurance as a financial product hasbecome a necessity in todays scenario. In this

fast paced scenario the sense of security is the

key factor in the Insurance sector.


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Awareness about ULIPs?


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Interpretation

ULIPs are the new insurance product in theoffering. So, there is a very little awareness aboutULIPs.

A keen interest in ULIPs have been shown by all

the strata of the which we have taken.

It is a new product altogether so; awarenessneeds to be generated for the product. It couldbe done through different data sources like,Newspapers, Magazines, internet etc.


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Awareness about Mutual Funds


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Interpretation

It is an interesting fact that those who haveinvested in ULIPs fall under the age group of

30 beyond.

It shows that most of them are married andthey are looking forward to have a long term

Insurance cum Investment plan.

It is a clear indication that the youngergeneration are not looking for long term

Investment.


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Have you invested in MFs?


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Inference

Mutual Fund has been accepted as an

Investment product.

Young and working population are looking for

Mutual Fund Investment.


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Investment objective


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Interpretation

The primary objective of the Investment issave Tax. The young population is also keen in

saving tax.

This is an edge for ULIP over Mutual Fund as

ULIP give tax benefit under both sec. 80c and

10 (10D).

The married people with child opt for ULIPs or

traditional Insurance in general


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Consultation before Investment


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Inference

The emergence of newspaper, magazines, TVetc. shows the fact that the growingawareness among the investors to know aboutdifferent Investment avenues. This keenness

can be most commonly seen with the 30-35 yrof age group who are actually seriousInvestors.

The loosing faith on the financial consultant is

a concern and leads to the fact that they arenot qualified enough to answer to the queriesof the normal investor


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Looking for Insurance in MFs


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Inference

This is the area where ULIP should look at. Theinference we can generate from the fact that

Mutual Fund is a pure Investment product and

investors dont want to mix insurance with the

MFs.


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RECOMMENDATIONS AND

CONCLUSION ULIP awareness programme need to be run by the company trough

different sources like- Newspaper, Magazines, TV etc.

On the local level few activities need to be undertaken to enhance thepeople awareness towards ULIPs.

ULIP products are quite similar to Mutual Fund but it is not advisable to

market ULIP products directly against Mutual Fund. ULIPs should be marketed as an Insurance Products with high returns and

flexible instrument which can be customized to suit a persons risk andreturn appetite.

For any Insurance company the agents of the company to sell its productsare like the face of the company. So, it is very essential for the company tokeep its consultants / Agents well informed about the new developmentstaking place in the industry. This will enhance the trust of the prospectivecustomers and will ultimately benefit the company. Company can organizeregular training programmes and regular tests can be conducted


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THANK YOU

Ankit Malhotra`

Roll No.- RR1809B75

Reg. No.- 10810844

MF Vs ULIPS

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