security analysis and portfolio management Ff1

8/19/2019 security analysis and portfolio management Ff1

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DECLARATION

I the undersigned here by declare that the project entitled

PORTFOLIO ANALYSIS &ANA!""NT is #y original $or% based

On #y o$n indings during practical training done in 'IRLA S(N LIF"

& INS(RAN)"*

I urther declare that to the best o #y %no$ledge the project

report has not been sub#itted in any degree or diplo#a in +i%ra# (ni,ersity*

I the declaration ound alse at any stage I shall be held

responsible or it that case I shall abide by the (ni,ersity-s rules and

regulations*

.ate /

Place / Signature o the

Student Na#e 00000

)lass 00000

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ACKOWLEDGEMENT

It is #y great pleasure and pri,ilege to ac%no$ledge the ,aluable guidance and

support1 I recei,ed in the preparation o this project report*

I $ish to e2press #y sincere gratitude and than%ulness to Mr.VIJAY SINGH,

Branch Manager, Bira S!n Li"e In#!rance C$%&an' L(). 3ho obliged #e a

chance to co#plete #y training at this estee#ed Organi4ation*

I a# e2tre#ely than%ul to the oicers and sta o 'irla Sun Lie Insurance)o#pany Ltd* For their 5ind )ooperation and i##ense help6 $ithout their support

and ,aluable guidance #y project $ould ha,e ne,er seen the light o the day*

This note o than%s $ould be inco#plete i I do not than% #y co7trainees $ith

$ho# I ha,e $or%ed in groups during the project and ad,isors o 'irla Sunlie

Insurance $ith $ho# I ha,e $or%ed during last stage o the project & has learned

,aluable things ro# the# and Acade#ic .e,elop#ent )ell 8A.)9 & aculty

#e#bers6 $ho al$ays encourage us to do challenging tas%s*

I a# deeply indebted to #y parents and riends or pro,iding #e all necessary help

in co#pleting #y project*

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INDE*

SR.

NO

DESCRIPTION PAGE

NO.

1. ABOUT BIRLA SUNLIFE INSURANCE 4-5

2. INTRODUCTION TO INDIAN INSURANCE

INDUSTRY

6-15

HISTORY

PLAYERS IN THE INDIAN INSURANCE SECTOR

ROLE OF IRDA

TYPE OF INSURANCE POLICIES

INTRODUCTION TO ULIPS

3. EXECUTIVE SUMMARY 16

4. RESEARCH METHODOLOGY 17-19

5. PORTFOLIO ANALYSIS & MANAGEMENTWHAT IS PORTFOLIO MANAGEMENT

MAGNIFIER FUND

MAXIMISER FUND

6.

SECURITY ANALYSIS 24-27

7.

COMPETITOR ANALYSIS ULIP!

COMPARISION"

2-!9

INTRODUCTION TO "SIL CLASSIC LIFE PLAN

COMPARISION WITH COMPETITION

INTRODUCTION TO "SIL PLATINUM AD#ANTAGE

PLAN

COMPARISION WITH COMPETITION#. ULIP! V! MUTUAL FUNDS 4$-41

INTRODUCTION TO "SIL FORESIGHT PLAN

RETURNS COMPARISION OF FORESIGHT #%.

MUTUAL FUND

$. SUMMARY & CONCLUSIONS 42-4!

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1%. RECOMMENDATIONS 44-45

11. REFERENCES & BIBILOGRAPHY 46

ABOUT BIRLA SUNLIFE INSURANCE

"stablished in :;;;6 Bira S!n Li"e In#!rance C$%&an' Li%i(e) +BSLI is a

joint ,enture bet$een the Aditya 'irla !roup6 A (S =;6;;; e#ployees6 belonging

to ?; dierent nationalities operating in :@ countries across si2 continents and

Sun Lie Financial Inc6 leading international inancial ser,ices organi4ation

ro# )anada*

The local %no$ledge o the Aditya 'irla !roup co#bined $ith the do#ain

e2pertise o Sun Lie Financial Inc*6 oers a or#idable protection or its

custo#ers uture* 3ith an e2perience o o,er >; years6 'SLI has contributed

signiicantly to the gro$th and de,elop#ent o the lie insurance industry in

India and currently ran%s a#ongst the top B pri,ate lie insurance co#panies in

the country*

5no$n or its inno,ation and creating industry bench#ar%s6 'SLI has se,eral

irsts to its credit* It $as the irst Indian Insurance )o#pany to introduce CFree

Loo% PeriodC and the sa#e $as #ade #andatory by IR.A or all other lie

insurance co#panies* Additionally6 'SLI pioneered the launch o (nit Lin%ed

Lie Insurance plans a#ongst the pri,ate players in India* To establish

credibility and urther transparency6 'SLI also enjoys the prestige to be the

originator o practice to disclose portolio on #onthly basis* 'SLI oer the

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co#plete bouDuet o insurance products ,i4* pure ter# plan6 lie stage products6

health plan6 retire#ent plan & (nit Lin%ed Insurance Plans 8(LIPs9 etc*

Add to this6 the e2tensi,e reach through its net$or% o B;; branches and >6

?@6E;; e#panelled ad,isors* This i#pressi,e co#bination o do#ain e2pertise6

product range6 reach and ears on ground6 helped 'SLI co,er #ore than :*?

#illion li,es since it co##enced operations and establish a custo#er base

spread across #ore than >;; to$ns and cities in India* 'SLI has ensured that it

has lo$est outstanding clai#s ratio o ;*;;G or FY :;>;7>>** Such ser,ices are

$ell supported by sound inancials that the )o#pany has* The A( o 'SLI

stood at >E@: crs a# $n A&ri -, /00, $hile the co#pany has a robust capital

base o Rs* :?; crs*

INTRODUCTION TO INDIAN INSURANCE

INDUSTRY

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HISTORY

Insurance in India has its history dating bac% till >H>H6 $hen Oriental Lie

Insurance )o#pany $as started by "uropeans in 5ol%ata to cater to the needs

o "uropean co##unity* Pre7independent era in India sa$ discri#ination

a#ong the lie o oreigners and Indians $ith higher pre#iu#s being charged

or the latter* It $as only in the year >H@;6 'o#bay utual Lie Assurance

Society6 the irst Indian insurance co#pany co,ered Indian li,es at nor#al rates*

At the da$n o the t$entieth century6 insurance co#panies started

#ushroo#ing up* In the year >E>:6 the Lie Insurance )o#panies Act6 and the

Pro,ident Fund Act $ere passed to regulate the insurance business* The Lie

Insurance )o#panies Act6 >E>: #ade it necessary that the pre#iu# rate tables

and periodical ,aluations o co#panies should be certiied by an actuary*

o$e,er6 discri#ination still e2isted bet$een Indian and oreign co#panies*

The oldest e2isting insurance co#pany in India is National Insurance )o#pany

Ltd6 $hich $as ounded in >E;B and is doing business e,en today* The

Insurance industry earlier consisted o only t$o state insurers/ Lie Insurers

i*e* Lie Insurance )orporation o India and !eneral Insurers i*e* !eneral

Insurance )orporation o India*

This #illenniu# has seen insurance co#e a ull circle in a journey e2tending to

nearly :;; years* The process o re7opening o the sector had begun in the early

>EE;s and the last decade and #ore has seen it been opened up substantially* In

>EE=6 the !o,ern#ent set up a co##ittee under the chair#anship o RN

alhotra6 or#er !o,ernor o R'I6 to propose reco##endations or reor#s in

the insurance sector* The objecti,e $as to co#ple#ent the reor#s initiated in

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http://www.licindia.com/http://www.gicofindia.in/http://www.gicofindia.in/http://www.gicofindia.in/http://www.gicofindia.in/http://www.licindia.com/


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the inancial sector* They stated that oreign co#panies be allo$ed to enter by

loating Indian co#panies6 preerably a joint ,enture $ith Indian partners*

Follo$ing the reco##endations o the alhotra )o##ittee report6 in >EEE6 the

Insurance Regulatory and .e,elop#ent Authority 8IR.A9 $as constituted as an

autono#ous body to regulate and de,elop the insurance industry* The IR.A

$as incorporated as a statutory body in April6 :;;;* The %ey objecti,es o the

IR.A include pro#otion o co#petition so as to enhance custo#er satisaction

through increased consu#er choice and lo$er pre#iu#s6 $hile ensuring the

inancial security o the insurance #ar%et*

The IR.A opened up the #ar%et in August :;;; $ith the in,itation or

application or registrations* Foreign co#panies $ere allo$ed o$nership o up

to :BG* The Authority has the po$er to ra#e regulations under Section >>?A

o the Insurance Act6 >E=H and has ro# :;;; on$ards ra#ed ,arious

regulations ranging ro# registration o co#panies or carrying on insurance

business to protection o policyholders- interests* In .ece#ber6 :;;;6 the

subsidiaries o the !eneral Insurance )orporation o India $ere restructured as

independent co#panies and at the sa#e ti#e !I) $as con,erted into a national

re7insurer* Parlia#ent passed a bill de7lin%ing the our subsidiaries ro# !I) in

July6 :;;:*

The insurance sector is a colossal one and is gro$ing at a speedy rate o >7

:;G* Together $ith ban%ing ser,ices6 insurance ser,ices add about @G to the

country-s !.P* A $ell7de,eloped and e,ol,ed insurance sector is a boon or

econo#ic de,elop#ent as it pro,ides long7 ter# unds or inrastructure

de,elop#ent at the sa#e ti#e strengthening the ris% ta%ing ability o the

country*

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1LAYERS IN THE INDIAN INS2RANCE SECTOR

Today there are :? general insurance co#panies including the ")!) and

Agriculture Insurance )orporation o India and := lie insurance co#panies

operating in the country*

>* 'ajaj Allian4 Lie Insurance )o#pany Li#ited:* 'irla Sun Lie Insurance )o* Ltd=* .F) Standard Lie Insurance )o* Ltd

?* I)I)I Prudential Lie Insurance )o* Ltd* IN! +ysya Lie Insurance )o#pany Ltd*B* Lie Insurance )orporation o India@* a2 Ne$ Yor% Lie Insurance )o* LtdH* et Lie India Insurance )o#pany Ltd*E* 5ota% ahindra Old utual Lie Insurance Li#ited>;*S'I Lie Insurance )o* Ltd>>*Tata AI! Lie Insurance )o#pany Li#ited>:*Reliance Lie Insurance )o#pany Li#ited*>=*A,i,a Lie Insurance )o#pany India Li#ited

ROLE O3 IRDA

The Insurance Regulatory and .e,elop#ent Authority Act o >EEE brought

about se,eral crucial policy changes in the insurance sector o India* It led to

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the or#ation o the Insurance Regulatory and .e,elop#ent Authority 8IR.A9

in :;;;*

The goals o the IR.A are to saeguard the interests o insurance policyholders6

as $ell as to initiate dierent policy #easures to help sustain gro$th in the

Indian insurance sector*

IR.A has notiied Protection o Policyholders Interest Regulations :;;> to

pro,ide or/ policy proposal docu#ents in easily understandable language1

clai#s procedure in both lie and non7lie1 setting up o grie,ance redressal

#achinery1 speedy settle#ent o clai#s1 and policyholders ser,icing* The

Regulation also pro,ides or pay#ent o interest by insurers or the delay in

settle#ent o clai#*

The insurers are reDuired to #aintain sol,ency #argins so that they are in a

position to #eet their obligations to$ards policyholders $ith regard to pay#ent

o clai#s* It is obligatory on the part o the insurance co#panies to disclose

clearly the beneits6 ter#s and conditions under the policy* The ad,ertise#ents

issued by the insurers should not #islead the insuring public* All insurers are

reDuired to set up proper grie,ance redress #achinery in their head oice and at

their other oices* The Authority ta%es up $ith the insurers any co#plaint

recei,ed ro# the policyholders in connection $ith ser,ices pro,ided by the#

under the insurance contract*

TY1ES O3 INS2RANCE 1OLICIES

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Ta%ing out a lie insurance policy co,ers the ris% o dying early6 by pro,iding

or your a#ily in the e,ent o your death* It also #anages the ris% o retire#ent

pro,iding an inco#e or you in non7earning years* )hoosing the right policy

type $ith the co,erage that is right or you thereore beco#es critical*

There are a ,ariety o policies a,ailable in the #ar%et6 ranging ro# Ter#

"ndo$#ent and 3hole Lie Insurance6 to oney 'ac% Policies6 (LIPs6 and

Pension plans* Lets see $hat each o these is about6 so that you can consider

the one that best suits you*

Ter% In#!rance

Ter# Insurance6 as the na#e i#plies6 is or a speciic period6 and has the lo$est

possible pre#iu# a#ong all insurance plans* You can select the length o the

ter# or $hich you $ould li%e co,erage6 up to = years*

Pay#ents are i2ed and do not increase during your ter# period* In case o an

unti#ely death6 your dependents $ill recei,e the beneit a#ount speciied in the

ter# lie insurance agree#ent* You can custo#i4e Ter# lie insurance $ith theaddition o riders6 such as )hild6 3ai,er o Pre#iu#6 or Accidental .eath*

En)$4%en( In#!rance

"ndo$#ent Insurance is ideal i you ha,e a short career path6 and hope to enjoy

the beneits o the plan 8the original su# and the accu#ulated bonus9 in your

lie ti#e*

"ndo$#ent plans are especially useul $hen you retire1 by buying an annuity

policy $ith the su# recei,ed6 it generates a #onthly pension or the rest o your

lie*

Wh$e Li"e In#!rance

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3hole Lie Policies ha,e no i2ed end date or the policy1 only the death

beneit e2ists and is paid to the na#ed beneiciary* The policy holder is not

entitled to any #oney during his or her o$n lieti#e6 i*e*6 there is no sur,i,al

beneit* This plan is ideal in the case o lea,ing behind an estate*

Pri#ary ad,antages o 3hole Lie Insurance are guaranteed death beneits6

guaranteed cash ,alues6 and i2ed and %no$n annual pre#iu#s*

M$ne'5Bac6 1an

In a oney7'ac% plan6 you regularly recei,e a percentage o the su# assured

during the lieti#e o the policy* oney7'ac% plans are ideal or those $ho areloo%ing or a product that pro,ides both 7 insurance co,er and sa,ings*

It creates a long7ter# sa,ings opportunity $ith a reasonable rate o return6

especially since the payout is considered e2e#pt ro# ta2 e2cept under

speciied situations*

2LI1

(nit7lin%ed Insurance Plans 8(LIPs96 introduced by the pri,ate players6 are

hugely popular6 because they co#bine the beneits o lie insurance policies

$ith #utual unds* A certain part o the pre#iu# is in,ested in listed

eDuitiesKdebt undsKbonds6 and the balance is used to pro,ide or lie insurance

and und #anage#ent e2penses*

1en#i$n 1an

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Insurance co#panies oer t$o %inds o pension plans 7 endo$#ent and unit

lin%ed* "ndo$#ent plans in,est in i2ed inco#e products6 so the rates o return

are ,ery lo$*

(nit7lin%ed plans are #ore le2ible* You can stop contributing ater >; years

and the und $ill %eep co#pounding your corpus till the ,esting date* You can

opt or higher e2posure in the stoc% #ar%et or your plan i your ris% appetite

allo$s it* Lo$er ris% options li%e balanced unds are also oered*

Ri)er#7 C$%&rehen#i8e c$8erage

In addition to the insurance plan o your choice6 you #ight $ant to consider additional ris% co,ers6 in $hich case you can you can opt or riders/ additional

beneits that can be purchased $ith an insurance policy*

"2a#ples o riders include the Ter# rider6 the Accidental .eath 'eneit rider6

and the )ritical Illness rider* )hoosing the right set o riders ensures a

co#prehensi,e insurance co,er*

INTROD2CTION TO 2LI1S +2NIT LINKED INS2RANCE

1LANS

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The introduction o (nit Lin%ed Insurance Plans has possibly been the single

largest inno,ation in the ield o lie insurance *It has addressed and o,erco#e

#any diiculties and concerns that custo#ers had about lie insurance

liDuidity6 le2ibility6 and transparency* These beneits are possible because

(LIPs are dierently structured products and lea,e #any choices to the

policyholder* They are structured such that the protection 8insurance9 ele#ent

and the sa,ings ele#ent 8in,est#ent9 can be distinguish and hence #anaged

according to one-s speciic needs6 oering le2ibility and transparency* Thus $e

can say it is such a product that ta%es care o #ultiple needs* (LIPs are also

called as M'undled Policies*

There $ere so#e actors $hich ga,e entry or (LIPs in the insurance #ar%et/ 7

Firstly $as the arri,al o pri,ate o pri,ate players6 and (LIPs $ere the #ost

signiicant inno,ation done by the#6 and secondly $as the decline o assured

returns in endo$#ent plans* "arly the #ar%et o (LIPs $as ta%en up 'irla Sun

Lie as they $ere the irst to introduce such product in the #ar%et* These are the

insurance plans $hich are attached to (nits* The pre#iu# a#ount recei,ed in

this policy6 so#e part is used in in,est#ent o unds and re#aining is used or

insurance co,er*

(LIPs are re#ar%ably si#ilar to6 #utual und in ter#s o structure and

unctioning/ pre#iu# pay#ents are con,erted into units and net asset ,alue

8NA+9 is declared regularly* In,estors ha,e an option o choosing their und

according to their ris% ta%ing ability* They disclose all the #aterial acts #ost

reDuent and consistent 8oten Duarterly or hal7yearly9 *Also in,estor has a

airly good idea about e2penses* The e2penses $hich are considered are as

ollo$s/7

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1) Mortality Rate/ 7 These are charged by the lie insurance co#pany to co,er

the ris% o an e,entuality to the indi,idual*2) Adminitration! ale"mar#etin$ C%ar$e& ' All lie insurance co#panies

incur certain e2penses on regular basis* Agent-s co##ission6 sales &

#ar%eting e2penses and o,erhead costs incurred to run the day to day basis

are so#e e2a#ples*() Fnd Mana$ement C%ar$e& ' These charges are le,ied by the insurance

co#pany to co,er the e2penses incurred by the# on #anaging (lip #onies**) Uli+',nd S-it.% C%ar$e& ' These charges are borne by the indi,iduals

$hen they decide to s$itch their6 #oney ro# one type o und to another*/) To+'+ C%ar$e& A certain percentage is deducted ro# the top7up a#ount to

reco,er the e2penses incurred on #anaging the sa#e*

(LIPs are ,ery dierent ro# the traditional policies because they are based on

so#e unda#entals o utual unds as dierent types o unds $hich are

created $herein the pre#iu#s $hich are recei,ed on the policy these are

in,ested in these unds basically these unds are o ollo$ing types/7

a E9!i(' + A$$rei0e"ro-t%) Fnd/7Such unds in,est a #ajor portion in

eDuity #ar%ets* They are thereore considered to be high on ris% para#eter*

: Det Fnd/ 7 These types o unds in,est the pre#iu# #oney in debt

instru#ents li%e g7secs6 bonds and AAA rated securities* Such unds are lo$

ris% in nature*

c Balan.ed Fnd/ 7 This und is co#bination o gro$th & debt und* This#eans its portolio consists o both eDuities and debt instru#ents* The ris%

or this und is #oderate*

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) Money Mar#et"Li3id Fnd/7 Such a und in,ests the pre#iu# #oney

in short ter# liDuid instru#ents li%e ban% deposits and #oney #ar%et

instru#ents*

The "ea(!re# $" 2LI1# are a# "$$4#75

a9 Fle4iility& 7 Fle2ibility in choosing your o$n unds ho$ you $ould li%e

to in,est your o$n #oney*

b9 Tran+aren.y& 7 It discloses all your #aterial acts6 i*e* you %no$ $here

your #oney is been in,ested*

c9 Li3idity/ 7 ere you can $ithdra$ certain a#ount ro# your (nits $hichha,e been collected*

d9 Ta4 Bene,it/ 7 ta2 beneits are a,ailable under Section H;) subject to a

#a2i#u# li#it o Rs >;;6;;;*

The other eatures o (LIPs are li%e6 lie protection $hich can be adjustable6

#any in,est#ent options6 beneits li%e disability6 critical illness6 surgeries6

and also inancial planning etc*

/ E*EC2TIVE S2MMARY

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The project on Portolio anage#ent and analysis $as carried out $ith 'SLI* The

objecti,e o this project $as to pri#arily understand the ,arious unds o 'irla

Sunlie & analy4ing the peror#ance o ,arious scrip in,ol,ed in the portolio & to

suggest $hether the co#pany is #issing out on any peror#ing co#pany as an

in,est#ent option* The project also helped us in understanding the past

peror#ance o the co#panies & the i#pact co#panies had during recession* Ater

going through the balance sheet $e also tried to analy4e $hether the co#pany is

able to sur,i,e any recession in near uture & $hat $ill be the i#pact on the#*

In the second part o the project dealt $ith (LIP co#parison o ,arious players*

For this product brochures o dierent lie insurance co#panies $ere reerred*

Also the co#pany $ebsite $as used to ind out the peror#ance o the ,arious

unds* Fund co#parison $as done to ind out $hy a particular und has peror#ed

better than the other** In this part $e also co#pared highest NA+ products o #ajor

co#petitors & tried to analy4e the NA+ pattern o all the #utual unds as $ell as

insurance unds* ighest NA+ products peror#ance $as e,aluated as co#pared to

#utual unds* IRR calculation & analysis o each product based on IRR $as done*

In the third part o the project $e analy4ed the dierent in,est#ent options

a,ailable and to co#pare the# $ith the #utual und in,est#ents* For the purpose

o analy4ing the in,est#ent pattern and selecting eecti,e and beneicial sche#es

o #utual unds dierent a,ailable sche#es $ere thoroughly analy4e & insurance

can be used as an in,est#ent option $as pro,e

- RESEARCH METHODOLOGY

;.0 Re#earch Brie"7

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The irst stage in,ol,ed initial discussion bet$een the ,arious tea# #e#bers and

the co#pany in order to identiy the research objecti,es 8Rationale o the research96

$hich is the #ost diicult step in the research process*

;./ Re#earch De#ign7

Research design is the arrange#ent o condition or collection and analysis o data

in a #anner that ai#s to co#bine rele,ance to the research purpose $ith the

econo#y in procedure* It is the blueprints or collection6 #easure#ent and analysis

o data*

;./.0 T'&e $" Re#earch7 Ana'(ica Re#earch

(nder the analytical research6 the researcher has to use acts or inor#ation already

a,ailable and analy4e the acts and inor#ation to #a%e a critical e,aluation o the

#aterial* The research is designed to study the peror#ance o insurance

co#panies in the post7liberali4ation era*

(nder this type the researcher has to use the acts and inor#ation already

a,ailable and analy4e the# to #a%e e,aluation o the #ar%et* In analytical research

the researcher has to use the acts already a,ailable6 and analyse these to #a%e the

critical e,aluation data o the #aterial*

The %e(h$)$$g' "$$4e) "$r re#earch i# a# "$$4ing7

>* Sur,ey o concerned literature

:* )ollecting data/

• uantitati,e

• ualitati,e

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=* Ater the collection o data the ra$ data is processed through editing6 loading6

classiication and tabulation to #a%e analysis o the data o inor#ation

Ater the analysis the inding are dra$n and reco##endationsKconclusion are

#ade*

The research design $hich help to ans$er the ollo$ing Duestions/

• 3hy the study is being #ade

• Fro# $here the data needed can be collected

;././ Da(a C$ec(i$n7

0. 1ri%ar' Da(a7

These include the sur,ey or Duestionnaire #ethod6 telephonic inter,ie$ as $ell as

the personal inter,ie$ #ethods o data collection

:* Secondary .ata/

The secondary data as it has al$ays been i#portant or the co#pletion o any

report pro,ides a reliable6 suitable6 adeDuate and speciic %no$ledge*

Secondary data is a data6 $hich is collected ro# ,arious sources* Secondary data

is not a resh data so it has its o$n li#itations li%e/ Ti#e )onstraints6 Accuracy and

Applicability*

The sa#ple si4e or #easuring the peror#ance or lie insurance co#panies is as

ollo$s/

This study is based on analysis the peror#ance o dierent lie insurance

co#pany in India6 LI) is the #ajor player in the #ar%et6 there are := other lie

insurance co#panies operating in the country* Thus the si4e o the uni,erse is :?*

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Out o these >B co#panies6 ? co#panies are selected1 in these one is Public

)o#pany and other Three are Pri,ate )o#panies/

• 'irla Sunlie insurance

•

Lie Insurance )orporation o India• 'ajaj Allian4 lie insurance

• IN! +ysya lie insurance

Analysis pattern

Ater the data is collected and editing6 the ne2t job o the researcher is to present it

syste#atically* The collected data is so large6 co#ple2 and unarranged that it can-t

be processed $ithout arranging it according to sa#e characteristics*

The ollo$ing statistical and analytical tools ha,e been used/

!raph/

• +arious plans oered by the co#panies*

• Net Asset +alue o )o#panies #ajor Plans*

• ar%et Share o the co#panies*

• .ata has been collected ro# the Fact sheet o the ,arious insurance unds &

#utual und sche#es & used those data s or the research* In act sheet past

returns $ere gi,en o dierent unds*

1ORT3OLIO ANALYSIS < MANAGEMENT

Wha( i# 1$r("$i$ Manage%en(=

An in,estor considering in securities is aced $ith the proble# o choosing

ro# a#ong a large nu#ber o securities* is choice depends upon the ris%

return characteristics o indi,idual securities* e $ould atte#pt to choose the

#ost desirable securities and li%e to allocate his unds o,er this group o

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securities* Again he is aced $ith proble# o deciding $hich securities to hold

and ho$ #uch to in,est in each* The in,estor aces an ininite nu#ber o

possible portolios or groups o securities* The ris% and return characteristics o

portolios dier ro# those o indi,idual securities co#bining to or# a

portolio*The in,estor tries to choose the opti#al portolio ta%ing into consideration the

ris% return characteristics o all possible portoliosThe irst phase o the project in,ol,ed analy4ing the e2isting und portolios

underlying dierent insurance products oered by 'irla Sun lie Insurance*

The analysis in,ol,ed analy4ing the peror#ance o the unds 8portolios9

considering para#eters such as asset si4e6 asset allocation6 returns generated

o,er speciic ti#e periods $*r*t* 'ench#ar% Inde2 etc*

1ha#e# $" 1$r("$i$ Manage%en(>* Security Analysis:* Portolio Analysis=* Portolio Selection?* Portolio Re,ision

* Portolio ",aluation

0. Sec!ri(' Ana'#i#

+a 3!n)a%en(a ana'#i#7 This analysis concentrates on the unda#ental

actors aecting the co#pany such as "PS 8"arning per share9 o the co#pany6

the di,idend payout ratio6 co#petition aced by the co#pany6 #ar%et share6Duality o #anage#ent etc*

+: Technica ana'#i#7 The past #o,e#ent in the prices o shares is studied to

identiy trends and patterns and then tries to predict the uture price #o,e#ent*

)urrent #ar%et price is co#pared $ith the uture predicted price to deter#ine

~ 2$ ~


21/45

the #ispricing* Technical analysis concentrates on price #o,e#ents and ignores

the unda#entals o the shares*

+c E""icien( %ar6e( h'&$(he#i#7 This is co#parati,ely #ore recent approach*

This approach holds that #ar%et prices instantaneously and ully relect all

rele,ant a,ailable inor#ation* It #eans that the #ar%et prices $ill al$ays be

eDual to the intrinsic ,alue*

/. 1$r("$i$ Ana'#i#

A portolio is a group o securities held together as in,est#ent* It is an atte#pt

to spread the ris% all o,er* The return & ris% o each portolio has to be

calculated #athe#atically and e2pressed Duantitati,ely* Portolio analysis phase

o portolio #anage#ent consists o identiying the range o possible portolios

that can be constituted ro# a gi,en set o securities and calculating their ris%

or urther analysis*

-. 1$r("$i$ Seec(i$n

The goal o portolio construction is to generate a portolio that pro,ides the

highest returns at a gi,en le,el o ris%* arry ar%o$it4h portolio theory

pro,ides both the conceptual ra#e$or% and the analytical tools or

deter#ining the opti#al portolio in a disciplined and objecti,e $ay*

;. 1$r("$i$ Re8i#i$n

~ 21 ~


22/45

The in,estorKportolio #anager has to constantly #onitor the portolio to ensure

that it continues to be opti#al* As the econo#y and inancial #ar%ets are highly

,olatile dyna#ic changes ta%e place al#ost daily* As ti#e passes securities

$hich $ere once attracti,e #ay cease to be so* Ne$ securities $ith anticipation

o high returns and lo$ ris% #ay e#erge*

>. 1$r("$i$ E8a!a(i$n

Portolio e,aluation is the process6 $hich is concerned $ith assessing the

peror#ance o the portolio o,er a selected period o ti#e in ter#s o return &

ris%* The e,aluation pro,ides the necessary eedbac% or better designing o

portolio the ne2t ti#e around*

?. Mea#!re%en( $" ri#6

Ris% reers to the possibility that the actual outco#e o an in,est#ent $ill dier

ro# the e2pected outco#e* In other $ords $e can say that ris% reers to

,ariability or dispersion* 3hene,er $e calculate the #ean returns o an

in,est#ent $e also need to calculate the ,ariability in the returns*

The irst phase o the project in,ol,ed analy4ing the e2isting und portolios

underlying dierent insurance products oered by 'irla Sun lie Insurance* The

analysis in,ol,ed analy4ing the peror#ance o the unds 8portolios9

considering para#eters such as asset si4e6 asset allocation6 returns generated

o,er speciic ti#e periods $*r*t* 'ench#ar% Inde2 etc*

Ana'#i#7

~ 22 ~


23/45

• The a2i#iser und is si#ilar to agniier und in that it is also

predo#inantly eDuity oriented und & has #ore than HG e2posure into

eDuity*

•

It is an old und co#pared to agniier & has higher assets under#anage#ent 8A(9 $hich is positi,e because it gi,es it #ore ability to ta%e

ris%s & has #ore holding capacity & it can also di,ersiy #ore*

• The und has outperor#ed its bench#ar% in recent years but loo%ing at

higher : years returns & lo$ returns since inception indicates that during the

recession o :;;H6 it has underperor#ed by a $ider #argin but has

reco,ered Duic%ly in the past : years*

• Its )A!R return since launch is lo$er than agniier & but has gi,en

higher returns co#pared to agniier in the past t$o years indicating that

the und is #ore ,olatile co#pared to agniier*

SEC2RITY ANALYSIS

Ater analy4ing the und portolios : sectors & scrip in that sector $hich $as

8or could be9 the part o the e2isting portolios $ere analy4ed in details to

re,ie$ the peror#ance o the sector & scrip o,er past = years*The basic concept o analy4ing the co#pany & understanding $as to get these

ollo$ing details/

• 3hat actors aected the co#pany $hich resulted in increase or decrease in

its stoc% price• 3hich sectors $ere i#pacted during recession

• In $hich co#panies $e should increase the e2posure & $hy

• Peror#ance o the co#pany & gro$th o stoc% price in three years

• Find the reco,ery period o co#panies ater recession

• Finding the stoc% luctuation in past three years

~ 2! ~


24/45

• 'alance sheet analysis o the co#pany

• 3hich co#panies can sur,i,e another recession i double dip occurs in near

uture

The "$$4ing )a(a 4a# c$ec(e) < ana'@e) in )e(ai.

• The e,eryday Open6 igh6 Lo$ & )lose price6 +olu#e traded o the

scrip ro# >st April :;;H to =>st arch :;>> recorded on the stoc%

e2changes $as collected*

• The 3ee%ly6 Fortnightly6 onthly6 uarterly6 Se#i7Annually6 Annually

a,erages $ere then calculated in the e2cel sheet*• The data $as also plotted on a line graph to analy4e the trend in the stoc%

o,er the three year period

• The All7ti#e igh & All7ti#e lo$ o the stoc% o,er a three year period

$as ound out & probable reasons behind the sa#e $ere e2plored*

• Also any signiicant rise or do$nall in the stoc% $as ound & probable

reasons $ere e2plored*

• ",ery Pyra#id 8Rise & subseDuent all9 & In,erted Pyra#id 8all &

subseDuent rise9 pattern on the plotted graph $ere highlighted & also

analy4ed*

• Also the reco,ery period o the stoc% in days $as calculated i*e* the ti#e

stoc% too% to reco,er the global recession o :;;H*

• The detailed 'alance Sheet analysis o the stoc% $as carried out to judge

$hether the co#pany under analysis $ill be able to reco,er another

recession in the uture i it $ere to happen*

L&T has di,ersiied business portolio and it operates through its dierent

operating di,isions

$hich include/

~ 24 ~


25/45

• "ngineering & )onstruction Projects

• "P) Po$er

• ea,y "ngineering

• "ngineering6 )onstruction & )ontracts

• "lectrical & "lectronics• achinery & Industrial Products

• IT and Integrated "ngineering Ser,ices

• Financial Ser,ices

L&T6 one o the India-s largest "ngineering )o#panies6 $as incorporated in

February >E?B* It $as con,erted into a public li#ited co#pany in >E;* L&T6

along $ith its group co#panies6 pro,ides integrated design6 engineering6

procure#ent6 construction and project #anage#ent ser,ices to ,arious sectors* The

co#pany is present in #ultiple operating seg#ents such as "ngineering &

)onstruction 8"&)96 "lectrical & "lectronics 8"&"96 achinery & Industrial

Products 8IP9 and others* It has e2posure to inrastructure 'OT projects in roads6

ports and real estate* Through its subsidiaries li%e L&T Finance6

L&T Inrastructure Finance and L&T Inotech6 L&T has also di,ersiied intoinancial ser,ices and the ITKITeS sector*

The "&) di,ision o L&T underta%es engineering

design and construction o buildings6 actories6 inrastructure6 industrial and po$er

trans#ission & distribution6 $hile the "&" seg#ent is engaged in #anuacturing

o electrical standard products6 syste#s and eDuip#ent*

The IP di,ision o L&T is ocused on #anuacturing

industrial ,al,es6 construction and hydraulic eDuip#ent6 #achinery or #ining6

paper and rubber processing industry*

~ 25 ~


26/45

L&T is regarded as the pree#inent inrastructure #ajor

oten reerred to as the Qbuilder o the India o the :>st century-* Its

achie,e#ents across sectors include/

• ydrocarbon projects e2ecuted in India6 the iddle "ast and South "ast

Asia

• Po$er projects e2ecuted in India6 the !ul and Sri Lan%a*

• The $orld-s largest coal gasiier #ade in India and e2ported to )hina

• The $orld-s biggest "O Reactor or a petroche#ical co#ple2 in the !ul

• The $orld-s largest F)) 8Fluid )atalytic )rac%er9 Regenerator or a reinery

• Asia-s highest ,iaduct

• Inrastructure projects in Jordan6 (*A*"* and South "ast Asia

• The $orld-s longest li#estone con,eyor • India-s $idest range o s$itchgear

• A $ide range o construction and #ining eDuip#ent

~ 26 ~


27/45

COM1ETITORS ANALYSIS +2LI1#

COM1ARISION7

This phase o the project in,ol,ed co#paring one o the #ost successul (LIP

product under 'SLI i*e* 'SLI )lassic Lie Plan stable $ith the e2isting si#ilar

products o co#petitors in the #ar%etplace*

Ater identiying the si#ilar product o co#petitors & collection o rele,ant

data6 the detail co#parison $as carried considering all the para#eters

#entioned abo,e* The co#petitors selected or the study included LI)6 'ajaAllian4 & IN! +ysya*

INTROD2CTION TO BSLI CLASSIC WHOLE LI3E 1LAN

3hile one $or%s hard to$ards achie,ing a#bitions6 one also $ishes to sa,e or

a co#ortable retire#ent* And $ant a plan that gi,es you the le2ibility to

#anage your sa,ings* The 'SLI )lassic Lie Plan gi,es co#plete control o,er

the in,est#ents by directing pre#iu#s to range o >; In,est#ent Funds along

$ith a range o rider options to gi,e the security o inancial protection*

This plan oers/

• Fle2ibility o directing your sa,ings in >; In,est#ent Funds6 as per ris%

appetite

• )hoice o Pay Ter#• 3hole lie co,er

• "nhanced inancial security or lo,ed ones

H$4 BSLI Ca##ic Li"e 1an 4$r6#=

~ 27 ~


28/45

• Select the Sa,ings .ate that suits your retire#ent goals*

• Select the 'asic Pre#iu# you $ant to pay e,ery year*

• Recei,e 'asic Su# Assured $hich is the #ini#u# death beneit payable on

the de#ise o the lie insured*

• Select the nu#ber o years you $ant to pay your pre#iu#s6 and select your

Pay Ter# ro# option o 7Pay K >;7Pay K >7Pay K :;7Pay K To Sa,ings

.ate*

• It also has the option to choose "nhanced Su# Assured to increase the

inancial security or lo,ed ones* This increases lie co,er o,er and abo,e

the 'asic Su# Assured at a no#inal cost*

• It also has the option to choose ro# our range o riders and custo#i4e the

security o your a#ilys inancial uture*

1an S!%%ar'7

Policy Ter# 3hole lie

"ntry Age >H to ? years >H to ; years >H to years >H to B; years

Sa,ings .ate To age To age B; To age B To age @;

'asic Pre#iu# ini#u# Rs* :6;;; p*a* i paid annuallyini#u# Rs* =;6;;; p*a* i paid #onthly6 Duarterly orse#i7annually

Pay Ter# Short pay 6 >;6 >6 :;years

To Sa,ings .ate

Pre#iu# Pay#entFreDuency

onthly6 uarterly6 Se#i7annually or Annually

Top7up Pre#iu# ini#u# Rs* 6;;;"nhanced Su# Assured ini#u# Rs* ;6;;;6 subject to #a2i#u# o =; years

to Sa,ings .ate

COM1ARISION WITH COM1ETITION

~ 2 ~


29/45

INS2RER BIRLA S2N LI3E LIC

2LI1 CLASSIC LI3E 1LAN ENDOWMENT 1L2S

En(r' Age >H 7 B; Years @7B; Years

Ter% 3hole Lie >; to :; Years

1re%i!% 1a' Ter%pay6 >;pay6 >pay6Tosa,ings date

pay6to Policy ter#

Ma(!ri(' Age @; Years >H Years8in96@; Years8a29

M$)eYearly6 al7Yearly6uarterly6 onthly

Yearly6 al7Yearly6 uarterly6onthly

Ba#ic S!% A##!re)

'asic Pre#iu# #ultiplied by/ The higher o >; or thenu#ber o years to attain

age @; di,ided by :6 orentry ages belo$ ?1 or Thehigher o @ or the nu#ber o years to attain age @;di,ided by ?6 or entry ages? and abo,e

ini#u# Su# Assured/8Policy Ter# >9 ti#es theannuali4ed pre#iu#

a2i#u# Su# Assured/=; ti#es o the annuali4ed

pre#iu# i age at entry is upto? years: ti#es o the annuali4ed

pre#iu# i age at entry is ?B toB; years

G!aran(ee) A))i(i$n#

On >; policy anni,ersaryand on e,ery policyanni,ersary thereater*

!uaranteed Addition is:*;G o the 'asicPre#iu#s paid in the last B;#onths* In addition on >>

policy anni,ersary ande,ery policy anni,ersarythereater* !uaranteedAddition is ;*:G o thea,erage Fund +alue in the

last >: #onths

A guaranteed #ini#u# interestrate o =*G p*a* shall becredited to the .iscontinuedPolicy Fund constituted by theund ,alue o all discontinued

policies*

Dea(h C$8er

!reater o 8a9 the Fund+alue as on date ointi#ation o death or 8b9the 'asic Su# Assured

igher o Su# Assured and thePolicyholder-s Fund +alue shal

be a,ailable as death beneit*

~ 29 ~


30/45

E(en)e) C$8er

"nhanced Su# Assured8#in Rs ;;;;97pre#iu#calculated accordingly6 Topup pre#iu#s 8#in Rs

;;;97'asic Su# Assured$ill be auto#aticallyincreased by the top7up

pre#iu# being paid#ultiplied by/>:G i theattained age o the lieinsured is less than ?years1 or >>;G i theattained age o the lieinsured is ? years or #ore

NO

Ri)er#

A2is'SLI Accidental .eath and.isability Rider 'SLI )ritical Illness Rider 'SLI Surgical )are Rider 'SLI ospital )are Rider 'SLI 3ai,er o Pre#iu#Rider

A2isAccident 'eneit Option)ritical Illness 'eneit Rider/

3!n) T'&e >; unds attached ? unds attached

A$ca(i$n Charge#

+0#( Year@*G o 'asic Pre#iu# @*G o 'asic Pre#iu#

A$ca(i$n Charge#

+/n) YearB*G o 'asic Pre#iu# G o 'asic Pre#iu#

A$ca(i$n Charge#

+-r) Year an)

$n4ar)#

*;G o 'asic Pre#iu# =G o 'asic Pre#iu#

A$ca(i$n Charge# +$n

an' ($& !& &re%i!%

:G o Top (p Pre#iu# paid

NA

3!n) Manage%en(

Charge#

>*;;G p*a* or Inco#eAd,antage6 Assure6Protector and 'uilder

;*;G p*a* o (nit Fund orM'ond Fund

>*:G p*a* or "nhancer and)reator

;*B;G p*a* o (nit Fund orMSecured Fund

~ !$ ~


31/45

>*=G p*a* or agniier6a2i#iser6 ultiplier andSuper :;

;*@;G p*a* o (nit Fund orM'alanced Fund

;*H;G p*a* o (nit Fund or

M!ro$th Fund

1$ic' A)%in ChargeRs* :; per #onth or theirst i,e policy years*

Rs* =;K7 per #onth during theirst policy year*

Rs* : per #onth in thesi2th year and inlate at G

p*a* thereater*

Rs =;K7 per #onth escalating at=G p*a* thereater6 throughoutthe ter# o the policy shall bele,ied

INS2RER BIRLA S2N LI3E BAJAJ ALLIAN

2LI1 CLASSIC LI3E 1LAN I5GAIN III

En(r' Age >H7B; Years >H7B; Years

Ter% 3hole Lie >;6> & :; years

1re%i!% 1a' Ter% pay6 >; pay6 > pay6 Tosa,ings date pay7No li#it

Ma(!ri(' Age @; Years @ Years

M$)eYearly6 al7Yearly6uarterly6 onthly

Yearly6 al7Yearly6 uarterly6onthly

Ba#ic S!% A##!re)

'asic Pre#iu# #ultiplied by/ The higher o >; or thenu#ber o years to attainage @; di,ided by :6 orentry ages belo$ ?1 or The

higher o @ or the nu#ber o years to attain age @;di,ided by ?6 or entry ages? and abo,e

>; ti#es o Annuali4edPre#iu# or entry age belo$? years@ ti#es o Annuali4edPre#iu# or entry age ? years& abo,e

~ !1 ~


32/45

G!aran(ee) A))i(i$n#

On >; policy anni,ersaryand on e,ery policyanni,ersary thereater*!uaranteed Addition is

:*;G o the 'asicPre#iu#s paid in the lastB; #onths* In addition on>> policy anni,ersary ande,ery policy anni,ersarythereater* !uaranteedAddition is ;*:G o thea,erage Fund +alue in thelast >: #onths

NA

Dea(h C$8er

!reater o 8a9 the Fund+alue as on date ointi#ation o death or 8b9the 'asic Su# Assuredreduced or partial$ithdra$als

Fund ,alue as on date o

receipt o inti#ation o death atthe )o#panys oice Thedeath beneit payable $ould becalculated separately orregular pre#iu# and top up

pre#iu#s*

E(en)e) C$8er

"nhanced Su# Assured8in Rs ;;;;97pre#iu#calculated accordingly6 Top

up pre#iu#s 8#in Rs;;;97'asic Su# Assured$ill be auto#aticallyincreased by the top7up

pre#iu# being paid#ultiplied by/>:G i theattained age o the lieinsured is less than ?years1 or >>;G i theattained age o the lie

insured is ? years or #ore

NA

~ !2 ~


33/45

Ri)er#

A2is'SLI Accidental .eath and

.isability Rider 'SLI )ritical Illness Rider 'SLI Surgical )are Rider 'SLI ospital )are Rider 'SLI 3ai,er o Pre#iu#Rider

'ajaj Allian4 (L Fa#ilyInco#e 'eneit Rider 'ajaj Allian4 (L Ter# Rider 'ajaj Allian4 (L 3ai,er o

Pre#iu# 'eneit Rider'ajaj Allian4 (L )riticalIllness 'eneit Rider'ajaj Allian4 (L ospital )ash'eneit Rider'ajaj Allian4 (L AccidentalPer#anent Total K Partial.isability 'eneit Rider

3!n) T'&e >; unds attached @ und attachedA$ca(i$n Charge#

+0#( Year @*G o 'asic Pre#iu# : G o 'asic Pre#iu#A$ca(i$n Charge#

+/n) YearB*G o 'asic Pre#iu# : G o 'asic Pre#iu#

A$ca(i$n Charge#

+-r) Year an)

$n4ar)#

*;G o 'asic Pre#iu# : G o 'asic Pre#iu#

A$ca(i$n Charge# +$n

an' ($& !& &re%i!%



3!n) Manage%en(

Charge#

>*;;G p*a* or Inco#e

Ad,antage6 Assure6Protector and 'uilder

>*= G or "Duity !ro$th

Fund :6Accelerator id capund :6 Pure stoc% Fund

>*:G p*a* or "nhancerand )reator

>*: G or Asset allocation &'lue chip eDuity und

>*=G p*a* or agniier6a2i#iser6 ultiplier andSuper :;

;*E G or LiDuid & 'ondund

1$ic' A)%in Charge

Rs* :; per #onth or theirst i,e policy years* Rs*: per #onth in the si2thyear and inlate at G p*a*thereater*

Rs* =: per #onth inlating atG at each policy anni,ersary*The charge $ill be deducted ateach #onthly anni,ersary bycancellation o units*

M$r(ai(' Charge# 8>*?B to >B*:B@9 per >;;; >*@: to @*=@ per >;;;Mi#c. Charge# Rs* ; per reDuest or

pre#iu# re7direction6 unds$itch and partial

The #iscellaneous charge oRs*>;;K7 per transaction inrespect o change in pre#iu#

~ !! ~


34/45

$ithdra$al* Rs* >;; per policy re,i,al*

paying ter#

1ar(ia Wi(h)ra4a

(nli#ited partial$ithdra$als any ti#e ateri,e co#plete policy years*The #ini#u# a#ount o

partial $ithdra$al is Rs*6;;;* There is no#a2i#u# li#it6 but you arereDuired to #aintain a#ini#u# Fund +alue o Rs*:6;;; plus any top7up

pre#iu#s

All partial $ithdra$als $ill beirst #ade ro# eligible top up

pre#iu# und ,alue6 i any onFirst in First out 8FIFO9 basis*Once the eligible top up

pre#iu# und ,alue ise2hausted6 urther partial$ithdra$als $ill be #ade ro#the regular pre#iu# und ,alue

S!rren)er

One can surrender your policy to us ater theco#pletion o i,e policyyears and recei,e the Fund+alue at that ti#e*

One can surrender your policyto us ater the co#pletion osi2 policy years and recei,e theFund +alue at that ti#e*

LOANS

The #ini#u# loan a#ountis Rs* 6;;; and the#a2i#u# loan a#ount is?;G o the und ,alue neto any discontinuancecharges* The interest $echarge on such loans $ill bei2ed by us ro# ti#e toti#e

NA

1$ic' Di#c$n(in!ance

Charge#

For AP o Rs* :6;;; or#ore

In 1$ic' Year 0Lo$er o BG o AP6 BG oF+6 Rs* B6;;;

Lo$er o BG o AP6 BG o F+6Rs* B6;;;

In 1$ic' Year /Lo$er o ?G o AP6 ?G o

F+6 Rs* 6;;;

Lo$er o ?G o AP6 ?G o F+6

Rs* 6;;;

In 1$ic' Year -Lo$er o =G o AP6 =G oF+6 Rs* ?6;;;

Lo$er o =G o AP6 =G o F+6Rs* ?6;;;

In 1$ic' Year ;Lo$er o :G o AP6 :G oF+6 Rs* :6;;;

Lo$er o :G o AP6 :G o F+6Rs* :6;;;

In 1$ic' Year > Nil Nil

~ !4 ~


35/45

Ana'#i#7

• The LI) o India has highest net in,estable pre#iu#6 Fund ,alue & IRR

ollo$ed by 'ajaj Allian4 & 'irla Sunlie due to lo$ o,erall cost structure

o LI)*

• 'SLI )lassic oers $hole lie co,er unli%e LI) endo$#ent plus $hich only

oers :; years #a2 policy ter#*

• 'SLI oers enhanced co,er option $hich is not a,ailable under LI)

endo$#ent plus*

• 'SLI )lassic plan oers a $ider choice o unds i*e*>; Funds co#pared to

LI) "ndo$#ent Plus $hich only oers choice o ? unds*

• 'SLI oers rider options unli%e LI) "ndo$#ent plus $hich oers only :

rider options*

• LI) "ndo$#ent Plus has lo$er ortality charges & und #anage#ent

charges co#pared to 'SLI classic plan*

• The und ,alue o 'SLI BG is lo$er than IN! +ysya but >;G gross

returns und ,alue & IRR o 'SLI are higher*

• 'SLI )lassic oers $hole lie co,er unli%e 'ajaj I7!ain III $hich only


• 'SLI )lassic oers guaranteed additions $hereas 'ajaj I7!ain III doesn-t

oer any such option*

• 'SLI )lassic oers enhanced co,er unli%e 'ajaj I7!ain III $hich doesn-t

oer any e2tended co,er*


'ajaj I7 !ain III $hich only oers choice o @ unds*• 'ajaj I 7!ain III has lo$er pre#iu# allocation charges & but higher und

#anage#ent charges & ad#in charges co#pared to 'SLI classic plan*

• 'SLI )lassic plan has lo$er ortality charges co#pared to 'ajaj I7 !ain

~ !5 ~


36/45

• 'SLI )lassic oers $hole lie co,er unli%e IN! Prospering Lie $hich only


• 'SLI )lassic oers guaranteed additions $hereas IN! Prospering Lie

doesn-t oer any such option*• 'SLI )lassic oers Rider options unli%e IN! Prospering Lie $hich

doesn-t oer any rider options*

• 'SLI )lassic oers enhanced co,er unli%e IN! Prospering Lie $hich

doesn-t oer any e2tended co,er*


IN! Prospering Lie $hich only oers choice o unds*

• IN! Prospering Lie has lo$er pre#iu# allocation charges & #ortality

charges but higher und #anage#ent charges & ad#in charges co#pared to

'SLI classic plan*

3!n)# C$%&ari#$n7

The ,arious unds o the sche#es & their return peror#ance ha,e been presented

belo$*

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37/45

BIRLA SUN LIFE

3!n)# Ince&(i$n

3!n)

Manage%en(

Charge#

Re(!rn# +Since

Ince&(i$n

a2i#iser8H;7>;;G "9 Sep :;;@ >*=G 00.;>

)reator 8=;7;G "9 Jun :;;? >*:G 0;.;

"nhancer 8:;7=G "9 Jun :;;? >*:G 0-.-

'uilder 8>;7:;G "9 Jun :;;? >G 0.F

Inco#e Ad,antage 8>;;G .9 Jul :;;E >G 0-.?;

ultiplier 8H;7>;;G "9 No, :;;@ >*=G >.

Super :; 8H;7>;;G "9 Jul :;;E >*=G /0./

Assure 8>;;G .9 ar :;;H >G ./

Protector 8>;G "9 Jun :;;? >G .>0

agniier 8;7E;G "9 ar :;;H >*=G 0F.0F

LIC OF INDIA

3!n)# Ince&(i$n3!n)

Manage%en(

Charge#

Re(!rn# +Since

Ince&(i$n

!ro$th 8?;7@;G "9 Jan :;>; ;*H;G 5/./

'alanced 8=;7@;G "9 Jan :;>; ;*@;G 0.0-

Secured 8>7G "9 Jan :;>; ;*B;G 50.-F

'ond 8>;;G "9 Jan :;>; ;*;G /.>/

BA5A5 ALLIAN6

3!n)# Ince&(i$n

3!n)

Manage%en(

Charge#

Re(!rn# +Since

Ince&(i$n

"Duity !ro$th Fund II8B;G to >;;G"9 .ec :;>; >*=G 5/.0

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38/45

Pure Stoc% Fund8B;7>;;G "9 Jul :;;B >*=G 0?.?/

Assest Allocation8B;7>;;G "9 Oct :;;@ >*:G F.?

'luechip "Duity8B;7>;;G "9 No, :;>; >*:G 50/./-

LiDuid Fund8>;;G .9 Oct :;>; ;*EG .>F

'ond Fund Oct :;>; ;*EG Accelator id )ap Fund Jan :;>; >*:G 0-.>

ING VYSYA

3!n)# Ince&(i$n

3!n)

Manage%en(

Charge#

Re(!rn# +Since

Ince&(i$n

IN! Pri#e"Duity8>;;G "9 Jan :;>; >*=G >.F

IN! !ro$th Fund8B;G "9 No, :;;? >*:G 0/.0-

IN! 'alanced Fund8?;G "9 No, :;;? >*:G 0.

IN! Secure Fund8:;G "9 No, :;;? >G .F-

IN! Preser,er Fund8>;;G .9 Jan :;>; >G 00.0

Ana'#i#7

• agniier has gi,en highest returns co#pared to other unds in its category

ollo$ed by Pure Stoc% und o 'ajaj Allian4*

• ost o the unds under 'SLI ha,e gi,en good ris% adjusted returns o,er a

long ter# period*

• ost o the co#petitor-s unds are recently launched & ha,e not been able

to generate co#parable returns*

INTROD2CTION TO BSLI 1LATIN2M

ADVANTAGE 1LAN

This Plan gi,es the ad,antage to choose ro# : In,est#ent Options !uaranteed

Option and Sel7anaged Option* 3ith the !uaranteed Option in,est#ents in the

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39/45

Platinu# Ad,antage Fund are saeguarded ro# any do$nsides in the capital

#ar%ets* And it also oers options to enhance the inancial security o lo,ed ones6

at a no#inal additional cost* This plan oers a >;7year plan $ith a 7year Pay

Ter#*

H$4 BSLI 1a(in!% A)8an(age 1an 4$r6#7

>* )hoose the 'asic Pre#iu# one $ants to pay annually or years:* )hoose In,est#ent Option ro# Sel7#anaged Option or !uaranteed Option=* )hoose the "nhanced Su# Assured to increase the inancial protection o

your lo,ed ones?* )hoose ro# range o riders and saeguard a#ilys inancial uture

In8e#(%en( O&(i$n#7

Se"5Manage) O&(i$n/

The Sel7anaged Option gi,es the co#plete access to in,est pre#iu#s in $ell7

established suite o >; In,est#ent Funds6 ranging ro# >;;G debt to >;;G eDuity*

One can choose ro# our range o >; In,est#ent Funds6 to suit one-s ris% appetite

& can change allocations as per changing reDuire#ents

G!aran(ee) O&(i$n /

The !uaranteed Option allo$s in,esting your irst three annual pre#iu#s in

Platinu# Ad,antage Fund* This Fund co#es $ith a guarantee o the highest unit

~ !9 ~


40/45

price recorded on a daily basis o,er @ years* It oers opti#al participation in

capital #ar%et gro$th6 $hile saeguarding in,est#ents and any gains thereon*

S2MMARY < CONCL2SION

The en(ire &r$ec( "in)ing# can :e #!%%ari@e) a# "$$4# /

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41/45

• )apital goods sector & ban%ing sector $as hit ,ery badly during recession*

)apital goods Sector stoc% price decreased by ?;G to ;G & 'an%ing

sector decreased by =; to ?;G*

•

All the ban%ing stoc%s touched their all7ti#e high during the period o No,e#ber :;>;

• The balance sheet analysis o the L&T stoc% sho$s that though the stoc%

underperor#ed during recession6 unda#entally the stoc% has the capability

to sur,i,e & rebound strongly ater recession

• The balance sheet analysis o A2is 'an% sho$s that it is one o the best

peror#ing pri,ate sector ban%s in the last i,e years* Though the stoc% price

$as badly hit during recession due to global #eltdo$n6 the peror#ance o

the ban% $as ,ery co##endable* The stoc% is a good potential in,est#ent

ro# a long ter# perspecti,e due to its ocus on e#erging sectors in India*

• Only :;G o the stoc%s o the portolio o 'ajaj Allian4 Pure Stoc% $as hit

during recession $hereas 'SLI #a2i #iser had :G stoc% i#pacted during

recession

• Pure stoc% is the best peror#ing und in the ast trac% und category

• )lassic lie Plan o 'SLI is the best product in the #ar%et or $hole lie

(LIP plans* No other co#petitors are oering such products* ost o these

%ind o product $as $ithdra$n in :nd hal o :;>;

• Fund anage#ent charges o LI) are ,ery less due to the huge pre#iu#

collections $ith the co#pany*

• ortality charge or higher age indi,iduals is less in 'SLI as co#pared to its

co#petitors*

•In the highest NA+ product category 'SLI-s platinu# ad,antage is the best

product in #ar%et both in ter#s o highest NA+ & Fund peror#ance*

• The concept Foresight is the best in,est#ent option a,ailable or the

in,estors as co#pared to other insurance plans & #utual unds considering

ris%7return trade o*

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42/45

• Foresight a$ards the in,estor $ith in,est#ent at best possible ti#e &

returns $ith highest NA+*

RECOMMENDATIONS

• 'SLI has ten unds in their portolio or classic lie but none o the portolio

$as able to sustain the recession during recession* In order to saeguard the

in,estor-s #oney they should construct a portolio $hich is not hit during

recession*

• 'SLI should balance its portolio $ith co#bination o gro$th stoc%s li%e

Ther#a2 & Yes 'an% & balance the portolio $ith in,est#ents in deensi,e

~ 42 ~


43/45

stoc%s li%e (L6 IT)6 )IPLA6 'ASF etc* $hich are less li%ely to be aected

by the recession*

• 'SLI should #a%e a portolio $hich has li#ited e2posure in ban%ing &

)apital goods sector due to highly ,olatile nature o the sector especiallyduring recession*

• any insurance co#panies ha,e not pic%ed 'ajaj Auto in their portolio

$hile the past peror#ance o this stoc% is un#atchable*

• The uture o auto#obile is not sho$ing great signs $ith uncertainty in the

uel prices still 'ajaj Auto posted a ::G increase in latest Duarter*

• Teleco# sector has underperor#ed in the past = years due to the :! sca# &

urious co#petition in this sector6 but $ith all the proble#s sorted out 'hartiAirtel & Idea loo% as a descent bet in the long run*

• Sun Phar#a has been a peror#ing $ell ro# past = years & it $ill continue

to gro$ due to the strong de#and or healthcare all o,er the globe*

• In the capital goods sector )ro#pton !rea,es loo% a descent beat in the long

run due to the %ey #erger it has done in the last one year*

• IRR o 'SLI is least in the $hole lie product categories* The IRR can be

increased by increasing the guaranteed additions ro# the tenth year at a

higher percentage o the und ,alue* This guaranteed addition is already a

(SP o 'SLI*

• Inno,ati,e Products li%e oresight should be #ar%eted appropriately & #ore

a$areness should be created o the potential o the product to pro,ide high

ris%7adjusted returns to the in,estors*

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44/45

RE3ERENCES < BIBILOGRA1HY

$$$*birlasunlie*co#

$$$*irdaindia*org

$$$*#oneycontrol*co#

$$$*policyba4aar*co#

$$$*inditrade*co#

$$$*,alueresearchonline*co#

$$$*indiainoline*co#

$$$*hdc#*co#

~ 44 ~

http://www.birlasunlife.com/http://www.moneycontrol.com/http://www.policybazaar.com/http://www.inditrade.com/http://www.valueresearchonline.com/http://www.indiainfoline.com/http://www.hdfcmf.com/http://www.birlasunlife.com/http://www.moneycontrol.com/http://www.policybazaar.com/http://www.inditrade.com/http://www.valueresearchonline.com/http://www.indiainfoline.com/http://www.hdfcmf.com/


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security analysis and portfolio management Ff1

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