Post on 10-Apr-2018
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ULIP FUND MANAGEMENT 0
CONTENTS
Sl. No. Chapter Name Page No.1. Acknowledgement 12. Executive
Summary
2
3. Introduction 3-44. Company Profile 5-105. Products 11-326. Research
Methodology
33-34
7. Fund details &analysis
35-55
8. Findings 56-579. Recommendations 5810 Limitation 5911.
Bibliography 60
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ULIP FUND MANAGEMENT 1
ACKNOWLEDGEMENTIT IS MY PROUD PRIVILEGE TO EXPRESS THE DEEP GRATITUDE TO THE
MANAGEMENT OF MET LIFE INDIA INSURANCE CO. PVT LTD. FOR
ALLOWING ME TO UNDERTAKE A PROJECT. I AM INDEBTED TO MANY
PEOPLE FOR THE COMPLETION OF THE PROJECT. FIRST OF ALL I
WOULD LIKE TO MENTION THE NAME OF MR. SHIBENDRA SHARMA TO
WHOM I REMAIN GRATEFUL FOR GIVING ME THE OPPURTUNITY TO DO
THE PROJECT AT METLIFE INDIA INSURANCE CO. PVT. LTD. HE GUIDED
ME THROUGHOUT THE PROJECT AND WITHOUT HIS HELP THE PROJECT
WOULD NEVER HAVE MATEREALIZED.
FOR THIS PROJECT I ACKNOWLEDGE WITH SINCERE GRATITUDE THE
SUGGESTIONS AND IDEAS OF MR. JOYDEEP MUKHERJEE, MR.
SUBHABRATA MAZUMDAR, MY INTERNAL GUIDE PROF. ASUTOSH KAR
AND OUR COURSE COORDINATOR MR. SIDDHARTHA RANJAN BASAK
AND OUR PRINCIPLE MR. BIJAY BHUJABAL. I WOULD ALSO LIKE TO
ACKNOWLEDGE THE HELP FORWADED TO ME BY THE STAFFS OF
METLIFE INDIA INSURANCE CO.PVT.LTD.
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ULIP FUND MANAGEMENT 2
EXECUTIVE SUMMARY
AS A PART OF MBA PROGRAMME IN NSHM BUSINESS SCHOOL UNDER
THE WEST BENGAL UNIVERSITY OF TECHNOLOGY AND AICTE
GUIDELINES WE HAVE TO UNDERGO SUMMER TRAINING FOR EIGHT
WEEK IN AN ORGANIZATION WHERE WE ARE TO BE EXPOSED TO THE
PRACTICAL ASPECTS OF BUSINESS WORLD. I DID MY PROJECT ON ULIP
FUND MANAGEMENT OF THE COMPANY.
FUND MANAGEMENT MEANS IT IS THE IMPLIMENTATION OF PLANS OF
INVESTING THE FUNDS AND MANAGING ITS PORTFOLIO FOR ITS
BETTER TRADING ACTIVITIES. SO, THIS EIGHT WEEK I HAVE STUDIED
ON THE FUND MANAGEMENT OF THE ULIP PLANS THE COMPANY GETS
FROM ITS CUSTOMER.
DURING MY PROJECT ANALYSIS I HAVE COLLECTED SOME PRIMARY
DATA AND AFTER ANALYSING THOSE I FOUND SOME FACTS WHICH
WILL BE HELP FULL TO THE COMPANY PROSPECT IN NEAR FUTURE.
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ULIP FUND MANAGEMENT 3
INTRODUCTIONWHAT IS FUND: Fund can be defined as a sum of money which has
been devoted together or individually for a specific purpose or any
assets which may convert into liquid assets or money after a certain
period of times.
According to business dictionary we may call it as sum of money set
aside and earmarked for a specified purpose. It may refer to the way
for resourcing the other project.
PURPOUSE OF FUNDING:
Convert short-term debt into long-term debt that bears fixed
interest and is represented by bonds.
Place or store up in a for accumulation.
provide a fund for the redemption of principal or payment of
interest.
Invest money in government securities.
A reserve of money set aside for some purpose. Accumulate a fund for the discharge of a recurrent liability; "fund a
medical care plan".
Store: a supply of something available for future use; "he brought
back a large store of Cuban cigars".
Furnish money for; "The government funds basic research in many
areas".
Investment Company: a financial institution that sells shares to
individuals and invests in securities issued by other companies.
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ULIP FUND MANAGEMENT 4
WHAT IS ULIP PLAN :A ULIP is a unit linked insurance plan. This isthe type of investment where the characteristics of insurance and
mutual fund are combined. Some part of the money invested goes into
the insurance cover and the remaining goes into an asset class.
ULIP is life insurance solution that provides for the benefits of
protection and flexibility in investment.
We further can say it is a type of insurance vehicle in which the
policyholder purchases units at their net asset values and also makescontributions toward another investment vehicle. Unit linked
insurance plans allow for the coverage of an insurance policy, and
provide the option to invest in any number of qualified investments,
such as stock, bonds or mutual funds.
According to the Investopedia a unit linked insurance plan acts just
like a savings vehicle, but also has the benefits of an insurance
contract. When an investor purchases units in a ULIP, he or she
is purchasing units along with a larger number of investors, just like
an investor would purchase units in a mutual fund.
So, in short we can say that ULIP or Unit Linked Insurance Plan is
nothing but a combination of insurance and units (like- bond, stock,
share) which has its NAV or Net Annual Value which fluctuates
according to the market situation.
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ULIP FUND MANAGEMENT 5
COMPANY PROFILENAME: METLIFE INDIA INSURANCE COMPANY PRIVATE LTD.
ADDRESS: 4th Floor, Premises No. 3A
Shakespeare Sarani,
Kolkata : 700 071
HEAD OFFICE: MetLife India Insurance Company Limited. No.5 Brigade Seshmahal Vani Vilas Road
Basavanagudi
Bangalore
Phone : 080 - 66006969 / 26438638
Fax : 080-22421970
Pin : 560004
REGISTERED OFFICE: MetLife India Insurance Company Limited5th Floor Orchid Centre Golf Course Road Sector 53,Gurgaon
Phone:0124-4179000
Fax:2572748
Pin : 122002
WEBSITE: www.metlife.co.in
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ULIP FUND MANAGEMENT 6
BACKGROUND OF THE COMPANYMetlife India Insurance Company (Metlife) is an affiliate ofMetlife,
Inc. and was incorporated as a joint venture between Metlife
International Holdings, Inc., The Jammu and Kashmir Bank, m.
Palonji and Co. Private Limited and other private investors.
Metlife is one of the fastest growing companies among the industry. It
is offering a range of huge innovative products and group of
customers at more than 700 locations through its Bank partners andcompany-owned offices.
Metlife has more than 55000 Financial Advisors, who help customer
to achieve peace of mind across the length and breadth of the country.
MetLife, Inc., through its affiliates, reaches more than 70 million
customers in the Americas, Asia Pacific and Europe. Affiliated
companies, outside of India, include the number one life insurer in the
United States (based on life insurance inforce), with over 140 years of
experience and relationships with more than 90 of the top one
hundred FORTUNE 500 companies. The MetLife companies offer
life insurance, annuities, automobile and home insurance, retail
banking and other financial services to individuals, as well as group
insurance, reinsurance and retirement and savings products and
services to corporations and other institutions.
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ULIP FUND MANAGEMENT 7
FACT SHEET
Founded 2001
Started Operation FY 2001-02
Headquarters Bangalore, India
World Wide Web Address www.metlife.co.in
Managing Director Rajesh Relan
Employees 7688
Financial Advisors 56,072
Bancassurance Tie-Ups 5 (J&K Bank/Axis
Bank/Dhanalakshmi
Bank/Karnataka
Bank/Barclays)
Number Of Products Over 20 products
Presence Through MetLife
Offices
192 offices in 131 cities
Presence Through BankPartners
1910 offices in 686 cities
Comment [s1]:
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ULIP FUND MANAGEMENT 8
"Coming into your
own",performing as
a Leader to be really
effective and
successful by
acting and making
decisions
independently to get
results.
It's all about People,
MetLife's key
resource. MetLife
will succeed
because we are
winning from
within.
Functioning
productively in
teams towards a
common purpose;
realising the
collective power odiverse work-
groups.
Operating with an
intense dedication to
managing monetary
resources for strong
business results.
Conducting all
business endeavors
with truth, sincerityand fairness.
Continuously
creating and
introducing new andoriginal ideas and
ways of doing thing
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ULIP FUND MANAGEMENT 9
Management:-
Rajesh Relan
Managing Director
MSVS Phanesh Murthy
Appointed Actuary
Shilpa Vaid
Deputy Director- Human Resources
Gaurav Sharma
Director - Customer Service and Operations
Girish Malhotra
Director- Agency
KR Anil KumarDirector - Financial Planning
& Controller
KS Raghavan
Chief Administrative Officer
Preetinder Chadha
Deputy Director - Corporate Sales &
Training
P. S. Sankaran
Director Business Support
Sameer Bansal
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ULIP FUND MANAGEMENT 10
Director- BA & BP
Vijay Raghavan
Director - Marketing & Strategy
Partners:-
Corporate Social Responsibility:-
MetLife has always been committed to making a positive difference
in the lives of the individuals and communities. Today, that
commitment drives volunteer work and philanthropy across the
globe. Working with non-profit organizations, MetLife supports programs that provide young people with the skills they need to
succeed in life and create opportunities for people of all ages.
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ULIP FUND MANAGEMENT 11
PRODUCTS
Child Plan:-
Met Bhavishya:
MetLife offers 'Met Bhavishya' - a guaranteed money back plan that
pays out funds to help to meet the education and career milestones of
children. With this plan, the Life Insured is that of the parent. The
plan also has inbuilt guaranteed additions to add value to the policy
over its term.
There are two options to choose from and fixed term benefits,
periodic additions & terminal additions are payable based on the
option that select. The policy is suitable for parents with children
between the ages 0-12 and parents in the age group of 20-50 years
old.
Met Junior Endowment
is born in family. And, parents would like to provide their star with all
the building blocks that could develop his or her potential to the
fullest. This could mean special instruction sessions for talented
children, unique training gear for exceptional athletes or qualified
training for born singers to provide that extra-edge.
To ensure this, parents would need an investment and protection
package that is exclusively designed to help you plan for financial
security, no matter what uncertainties life brings.
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ULIP FUND MANAGEMENT 12
'Met Little Star', a Unit-Linked, regular premium, child insurance
plan helps parents do just that. It secures finances for child's
educational needs and ensures that plans go as planned, no matter
what the circumstances.
\Met JuniorMoney Back
MetLife offers 'Met JuniorMoney Back' - a money back plan that
combines savings and security. Child's well-being is our highest
priority. SoMetLife offer a money back plan which provides
guaranteed periodic survival benefits at the end of 5, 10 & 15 years,
along with guaranteed growth of savings.
A plan which offers both timely and efficient return on investment
with payouts at different milestones.
Survival Benefit
At the end of 5
years
20% of Sum Assured
At the end of 10years
20% of Sum Assured
At the end of 15
years
20% of Sum Assured
Upon survival to
maturity
40% of Sum Assured plus total
Guaranteed Additions
Met Magic
MetLife offers 'Met Magic', a Unit-Linked (non-medical, regular
premium) life insurance plan (Non Par).
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ULIP FUND MANAGEMENT 13
Parents always want their little angel to have the best, in every sphere
of life. You don't want your child to have to compromise. No matter
what the circumstances.
Met Magic, a unique life insurance plan, helps you secure the future
of your loved one!
(IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT
PORTFOLIO IS BORNE BY THE POLICY HOLDER )
Retirement:-
Met Growth
MetLife offers 'Met Growth' - a Unit-Linked solution to help in
golden years. It is specially designed to provide financial security for
future requirements. This plan allows to start planning immediately
by ensuring the safety of first year premiums. It also helps create
retirement fund faster by giving you 100% allocation from the second
year onwards, coupled with attractive loyalty additions into fund.
Guaranteed.
Entry Age (in completed Min 0 years (3 months to be
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ULIP FUND MANAGEMENT 14
years) completed)Max 60 years
Maturity Age Min 18 years
Max 75 years
Coverage Term 15 / 20 / 25 / 30 years
Premium Payment Term Regular
Minimum Annualized
Premium
Rs. 12,000
Basic Sum Assured Min - 5 times the Annualized
Premium ***Other Sum Assured
multiples - 10 times & 20 times the
Annualized Premium.
Premium Paying Modes Monthly, Quarterly, Half-yearly,
Yearly
Benefit
y Death BenefitIn the unfortunate event of death, the higher of the Sum Assured
or the Fund Value would be payable.
If death of the Person Insured occurs before age 7, the Fund
Value plus the regular premium received by us in the first policy
year is payable.
y Maturity BenefitOn maturity, you will receive the Fund Value including theGuaranteed Loyalty Addition or you can opt for the settlement
options.
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ULIP FUND MANAGEMENT 15
y Loyalty AdditionsYou get the guarantee of enhancing your wealth creation
through guaranteed loyalty additions (up to 120% of the first
year annual premium) at the end of the 10th & 15th year plus
Guaranteed Additions as a % of the Fund Value.
At the end of the 10th year: 50% of the first year annualized
premium
At the end of the 15th year:
Met Advantage Plus
MetLife offers 'Met Advantage Plus' - a Unit-Linked Pension Plan
that allows to effectively and efficiently accumulate retirement needs.
As the name suggests, it comes with many advantages.One can
choose from eight annuity options, two life cover options and get tax
benefits under Section 80 C and 10 (10 A). One can buy the plan
without any hassles and invest more as you approach retirement by
using the top-up functionality. All in all, its a plan which works
harder when one stop working. For one, it ensures that you lead a
comfortable lifestyle post retirement.
Entry Age (in completed
years)
Min 20 years
Max 55 years
Minimum Term 10 years
Minimum Vesting Age 45 years
Maximum Vesting Age 65 years
Minimum Premiums Single Pay: Rs. 1,00,000
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ULIP FUND MANAGEMENT 16
Regular Premium: Rs. 10,000Premium Paying Term Single Pay & Regular Pay
Benefits
y Death BenefitIn case of death during the accumulation period, the death
benefit payable is:
Under Option A: A guaranteed amount of 110% of the Fund
Value is payable to the nominee.
Under Option B: 100% of the Fund Value is payable to thenominee.
y Vesting BenefitOn the vesting date, i.e. at the end of the accumulation term,you
can take one-third of your retirement kitty as a tax-free lump
sum and utilize the balance to buy annuities. Or you can use the
entire retirement kitty to buy annuities.
Met Pension-Par
'Met Pension (Par)' serves as a friendly helping hand so one can stay
financially independent even after retirement. It helps to build up afund for golden years.
With this plan,one can ensure his\her enjoy retirement as a happy new
chapter.
Entry Age (in
completed years)
Min 18 years
Max 60 years
Minimum Term 10 years
Minimum VestingAge
45 years
Maximum Vesting 70 years
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ULIP FUND MANAGEMENT 17
Age
Minimum Sum
Assured
Rs. 50,000
Maximum Sum
Assured
No Limit
Minimum Annual
Premium
Rs. 4000 p.a. for Regular Pay
Premium PaymentTerm Single Pay, Limited Pay (3 or 5 Pay) &Regular Pay
Benefits
Death Benefit
In case of death while one is saving for retirement, the death benefit
payable
1. Return of premiums.
2. Accrued reversionary bonus, if any.
3. Any insurance on the life of the Insured that may be provided by
riders to this policy.
Vesting Benefit
On the vesting date, you can take one third of your retirement kitty as
a tax-free lump sum and utilize the balance to buy annuities or you
can use the entire retirement kitty to buy annuities. The retirement
fund on the date of vesting is equal to the Sum Assured plus
Guaranteed Additions plus the compounded reversionary bonuses
plus the terminal bonus, if any.
Guaranteed Additions
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ULIP FUND MANAGEMENT 18
Savings:-
Met Sukh
MetLife offers 'Met Sukh'- a guaranteed money-back policy which
provides guaranteed periodic survival benefits at the end of 5, 10, 15
& 20 years and guaranteed additions of 10% of the Sum Assured for
the entire term. It not only covers your life, but also guarantees you
cash payments at various milestones along with guaranteed growth of
your savings.
Entry Age Min - 15 years
Max - 55 years
Coverage Term 20 years
Premium Payment Term Regular
Minimum Sum Assured Rs. 75,000
Maximum Sum Assured No Limit
Benefits
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ULIP FUND MANAGEMENT 19
y Death BenefitIn the unfortunate event of death of the Person Insured, the Sum
Assured along with the Guaranteed Additions are payable.
The policyholder is entitled to Guaranteed Additions of Rs. 100
per Rs. 1,000 of the Sum Assured for each completed year.
y Maturity BenefitOn maturity, the life insured will receive the Survival Benefits
plus the Guaranteed Addition.
y Survival Benefits
Met Suvidha
'Met Suvidha' is a flexible Endowment Plan that combines savings
and security. In addition to providing you protection till the maturity
of the plan, it helps you save for your specific long term financial
objectives. This long term savings-cum-protection plan comes to a
customer at affordable premiums.
At the end of 5 years 20% of the Sum
Assured
At the end of 10
years
20% of the Sum
Assured
At the end of 15
years
20% of the Sum
Assured
Upon survival to
maturity
40% of the Sum
Assured plus Total
Guaranteed Additions
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ULIP FUND MANAGEMENT 20
Met Suvidha is available in both participating as well as non-
participating versions.
Minimum Entry Age Par: 15 years - 60 years
Non-Par: 15 years - 70 years
Term Par: - 15 years - 30 years
Non-Par: 5 years - 30 years
Premium Paying Terms Single Pay, Limited Pay (5 or
10) & Regular Pay
Minimum Annual Premium
Amount
Rs. 2,500
Minimum Sum Assured Rs. 75,000
Maximum Sum Assured No Limit
Met Saral
MetLife presents 'Met Saral' - a non- participating endowment plan.
As the name suggests, its a simple savings plan which gets customer
into the savings habit without any medical tests. All need to do is fill
in a simple application form and are ensured a guaranteed maturity
amount of Rs 100,000, even in the case of death during the term. Take
the first step towards a better financial future for customer and his
family. Ensure and insure the first Lakh.
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ULIP FUND MANAGEMENT 21
Met 100
'Met 100' - a whole life policy where customer pay premiums for 15,
20 or 25 years.
It helps create a legacy for the children, leaving money for a
dependant spouse and, more importantly, provides insurance cover at
affordable rates.
Met 100 is available in participating as well as non- participatingversions.
Non-Par Par
Minimum Entry
Age
15 yrs 0 yrs
Maximum Entry
Age
70 yrs for ppt of 15 yrs
65 yrs for ppt of 20 yrs
60 yrs for ppt of 25 yrs
70 yrs for ppt of
15 yrs
65 yrs for ppt of20 yrs
60 yrs for ppt of
25 yrs
70 yrs for life
ppt
Premium Paying
Terms
15, 20, 25 yrs 15, 20, 25 yrs
Minimum Sum
Assured
Rs. 50,000 Rs. 50,000
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ULIP FUND MANAGEMENT 22
Maximum SumAssured
No limit (subject to UW) No limit(subject to UW)
Minimum
Annual Premium
Rs. 1,000 for issue age of =
15 yrs
Met 100 Gold:
Rs. 2,500
Met 100
Platinum: Rs.
7,500
Death Benefit
Met 100 - Par
In the event of death, the Sum
Assured plus the ReversionaryBonus and Terminal Bonuses, if
any, are payable.
Met 100 - Non-Par
In the event of death, the SumAssured is payable.
Maturity Benefit
Met 100 - Par
On maturity of the policy, the
Sum Assured plus the
Reversionary Bonus and
Terminal Bonuses, if any, are
payable.
Met 100 - Non-Par
On maturity of the policy, the
Sum Assured is payable
Protection:-
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ULIP FUND MANAGEMENT 23
Met Suraksha
MetLife offers 'Met Suraksha - Term Assurance (TA)', a non
participating term assurance plan which provides life cover at a
nominal cost. To put it simply, it is a life insurance plan that gives
complete protection to enjoy life to the fullest. Customer can further
customize plan with two riders Accidental Death Benefit and
Critical Illness.
Met Suraksha TROP
MetLife offers 'Met Suraksha - Term with Return of Premium
(TROP)', a non participating term assurance plan which provides life
cover at a nominal cost. To put it simply, it is a life insurance plan
that gives complete protection to enjoy life to the fullest. You can
further customize your plan with two riders Accidental Death
Benefit and Critical Illness.
Met Mortgage Protector
This plan which provides life cover for home loans taken for any
period above 5 years. It is a decreasing term insurance with single and
limited premium options. The plan covers an amount equal to the
outstanding amount as per the policy schedule.
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ULIP FUND MANAGEMENT 24
It ensures the assets that have created stays with family.
Rural :-
None of us can be sure what tomorrow will bring. Shield your
families against the unknown. MetLifes rural plans protect your
loved ones against financial liabilities and help you save for
tomorrow. All at affordable premiums
Met Vishwas
'Met Vishwas', - a single premium, micro insurance, non-
participating term assurance plan which provides life cover at a
nominal cost. On survival, customers get 110% or 125% of the
premium.
Minimum Entry Age 18 years
Maximum Entry Age 60 years
Maximum Maturity
Age
70 years
Minimum Sum Assured Rs. 5,000
Maximum Sum
Assured
Rs. 50,000
Policy Term 5 or 10 years
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ULIP FUND MANAGEMENT 25
Premium Paying Terms Single Pay
Met Suvidha-Rural
Met Suvidha (Rural) is a participating flexible Endowment Plan that
combines savings and security. In addition to providing protection up
to maturity, it helps to save for specific long term financial objectives.
This long term savings-cum-protection plan comes at affordable
premiums.
Benefits:
Met Suvidha - Par
In the event of death during the
term of the policy, the
beneficiary will receive the base
Sum Assured, the accrued
reversionary bonus and terminal
bonus if any.
Maturity Benefit
Met Suvidha - Par
On maturity of the policy, you
will receive the base Sum
Assured, the accrued
reversionary bonus and terminal
bonus if any.
y It is an Endowment plan that offers both savings and lifeinsurance.y Flexible premium paying options to suit various income cycles.y A plan which participates in the bonuses declared by the
company.
y Customization possible with Accident Death Benefit, CriticalIllness, Term, Waiver of Premium Riders for comprehensive
protection.
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ULIP FUND MANAGEMENT 26
Investment:-
MetLifes Unit-Linked Insurance Plans ensure systematic
enhancement of wealth. Be it higher returns or the right blend of
protection and wealth optimization, they help to ensure the rightchoice and peace of mind.
(IN THESE POLICY, THE INVESTMENT RISK IN INVESTMENT
PORTFOLIO IS BORNE BY THE POLICY HOLDER )
Met Easy
A simplified unit-linked plan which offers an opportunity to
systematically build wealth and protection for you and your family.
10 years 15 years 20 years
Minimum
Age at Entry
8 3 0 (3 months to
be completed)
Maximum
Age at Entry
55 50 50
Minimum
Premium
20,000 15,000 12,000
Maximum
Premium
6,00,000 4,00,000 3,00,000
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ULIP FUND MANAGEMENT 27
(The maximum Sum Assured available in this product is based on
age, at the time of buying the policy.)
Benefits-
Death Benefit
In the event of
death:
In the 1st Policy
Year: Higher of
50% of the Sum
Assured or the
Fund Value is
payable.
After the 1st Policy
Year: Higher of
100% of the Sum
Assured or Fund
Value. If death of
the Person Insuredoccurs before age
7, the Fund Value
plus the Regular
Premium received
by us in the first
policy year is
payable.
Maturity Benefit
On maturity, you
will receive the
Fund Value
including the
Loyalty Addition
or you can opt for
the settlement
options.
Loyalty Additions
With Met Easy,
you get the benefit
of potentially
enhancing your
wealth creation
with loyalty
additions that are
added to your
policy on maturity.
Sum Assured 5 times theannualized
regular premium
7.5 times theannualized
regular premium
10 times theannualized
regular premium
Premium
payment
modes
Yearly, Half-
yearly,
Quarterly,
Monthly
Yearly, Half-
yearly,
Quarterly,
Monthly
Yearly, Half-
yearly,
Quarterly,
Monthly
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Met Smart Gold
MetLife offers 'Met Smart Gold'- a Unit-Linked wealth creation cum
protection plan for the well-heeled. It's specially conceived so that one
can get a plan to match his specific financial requirements.
If you are keen on investing lump sum amounts over a shorter
horizon, this is the ideal plan for you.
Met Smart Plus-Regular Pay
'Met Smart Plus' a Unit-Linked Whole life plan that matures at age
100. If you want to protect your family from lifes uncertainties; at the
same time, you wish insurance would yield higher returns on your
investments. You want your insurance policy to help realize all your
dreams. Its a right plan to go with.
Entry Age (in completed
years)
Min 0 years (3 months to be
completed)
Max 70 years
Maturity Age 100 years
Premium Payment Term Regular
Minimum Annualized
Premium
Rs. 12,000
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Minimum Basic SumAssured
Rs. 60,000
Premium PaymentModes Monthly, Quarterly, Half-yearly,
Yearly
Met Smart Plus- Single Pay
Same as Met Smart Plus Regular but premium is payable in a single
term or at the time of policy taken.
Met Smart Premier- Regular Pay
MetLife offers 'Met Smart Premier' a Unit-Linked Whole life plan
that matures at age 100. You want to protect your family from lifes
uncertainties; at the same time, you wish insurance would yield higher
returns on your investments. You want your insurance policy to help
realize all your dreams.
Met Smart Premier- Single Pay
Payable lump sum at the time of policy taken.
Health:-
Met Health Care
UIN no: 117N048V01
Health problems strike unexpectedly. In addition to causing ill health,
it can also scar financial health. One need to protect himself against
such a situation through a health insurance plan. In order to ensure
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ULIP FUND MANAGEMENT 30
you are well protected to face any health condition that could befall
you, MetLife presents - Met Health Care, a simple health insurance
policy with unique and smart advantages for you and your family#.
(# Family means spouse and two children. Every additional family
member shall be underwritten as per the underwriting conditions laid
by the Company from time to time.)
Met Health Care is a long term health insurance plan from MetLife.
This plan covers
1. Hospitalization expenses by providing a Daily Cash benefit as
chosen by you.
2. 10 major Critical Illnesses by providing a lump sum benefit.
3. Total & Permanent Disability due to accident by providing a lump
sum benefit.
All the above benefits can be availed without the hassle of undergoing
any medical examination. Just fill up the simple application form and
start enjoying the unmatched benefits ofMet Health Care.
Minimum/Maximum age
of entry
18 years-55 years (At first entry, for
the Principal insured)
3 months-55 years (For Secondary
Insured lives)
Cover ceasing age 65 years
Maturity/Death Benefit No Maturity/Death Benefit payable
Benefits Offered (a) Daily Hospitalisation Cash Benefit
(b) Daily ICU Cash Benefit
(c) Recuperation Benefit
(d) Critical Illness Benefit
(e) Accidental Total & Permanent
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ULIP FUND MANAGEMENT 31
DisabilityBenefit
Premium paying
frequency
Yearly. Half-Yearly mode is avaiable
only if each of the persons insured
choose a daily cash benefit of Rs.
3000 or more.
Illustration
Benefit Option 1 Option 2 Option 3 Option 4 Option 5
Daily
Hospitalisation
Cash Benefit
Rs. 1000
per day
Rs. 2000
per day
Rs. 3000
per day
Rs. 4000
per day
Rs. 5000
per day
Daily ICU
Cash Benefit
Rs. 2000
per day
Rs. 4000
per day
Rs. 6000
per day
Rs. 6000
per day
Rs. 6000
per day
Recuperation
Benefit
Rs. 3000 Rs. 6000 Rs. 9000 Rs.
10000
Rs.
10000
Critical Illness
Benefit
Rs. 1
Lakh
Rs. 2
Lakh
Rs. 3
Lakh
Rs. 3
Lakh
Rs. 3
Lakh
Accidental
Total &
Permanent
Disability
Benefit
Rs. 1
Lakh
Rs. 2
Lakh
Rs. 3
Lakh
Rs. 3
Lakh
Rs. 3
Lakh
Benefits
Death/Maturity Benefit
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ULIP FUND MANAGEMENT 32
There is no Death/Maturity Benefit underMet Health Care.
Tax Benefits
The premium paid (excluding the service tax) under this plan is
eligible for Tax Benefits under Section 80 D of the Income Tax
Act, 1961 as per the provisions and conditions given therein and
are subject to any changes made in the tax laws in future.
Reasons to Buy
1. Coverage for the entire family.
2. No Claim Discounts.
3. Guaranteed Cover* till age 65.
4. Payouts in addition to other Insurance Plans.
5. Multiple Claims.
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ULIP FUND MANAGEMENT 33
RESEARCH AND METHODOLOGY
AS the project is on the basis of the ULIP products, in order to realize
the study a considerably volume of both primary and secondary data
is needed. Then it is realized further to arrange some other analysis on
the relevant data is needed.
Collectionofprimary data: The primary data has been collected fromthe METLIFE customer database who already have invested their
money into the ULIP products of the company during the period of
25-Aug-2009 to 25-Aug-2010. The study is conducted on the last one
year fund performance of the company
Collectionofsecondary data: The secondary data which is regardingthe company fund update and its performance has been drawn from
the company websites only.
This study is necessarily based on the limited knowledge and little
practical exposure the constraints of resources and time have further
imposed limits to the study boundaries. The response of the customer
was very busty and could not afford time more than 2-3 minutes.
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ULIP FUND MANAGEMENT 34
Objectivesof
the project: whatever the data have collected during theeight weeks, have tried to find out below things:-
The company puts their all funds of the ULIP plans into sevenfunds, namely
1)PROTECTOR2)PRESERVER3)MODERATOR4)BALANCER5)ACCELARATOR6)MULTIPLIAR and7)VIRTUE
It is being tried to find which fund growth rate is maximumduring the last one year (considering my interns period)
It is also tried to search in which fund the Financial Advisors ofthe company suggesting their customer to keep the funds.
As the funds are considering some sensitive sectors of the Indianeconomy and besides the ULIP is one of the best growing sector
in India so that the company have to deal with it very carefully.
For this reason discussion of the funds are needed.
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ULIP FUND MANAGEMENT 35
FUND DETAILS &DATA ANALYSISPROTECTOR:
OBJECTIVES OF THE FUND: To earn regular income by
investing in high quality fixed income securities.
INVESTMENT PHILOSOPHY:
The fund targets 100% investment in Govt. securities & other debt
securities to meet the stated objectives.
ASSETS CLASS :
Govt. securities & other debt securitiesCash & money marketASSETS CLASS
Cash &MoneyMarket 9%
Govt. securities 27%
Corporate Bond 64%
Considering a pie will be easy to define that what the funds
considering of:
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ULIP FUND MANAGEMENT 36
MOVEMENT OF THE FUND:
Month NAV
Aug-09 13.505
Sep-09 13.525
Oct-09 13.601
Nov-09 13.769
Dec-09 13.832Jan-10 13.923
Fev-10 13.95
Mar-10 14.027
Apr-10 14.162
May-10 14.305
Jun-10 14.31
Jul-10 14.355
Aug-10 14.303
9%
27%
64%
ASSETS CLASS
Cash&moneymarket Govt .securities CorporateBonds
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ULIP FUND MANAGEMENT 38
PRESERVER:OBJECTIVE OF THE FUND:
To generate a income at a level consistent with the preservation
of the capital, through investment in securities issued or
guaranteed by central or state Govt.
INVESTMENT PHILOSOPHY:
The fund will target 100% investment in Government & Govt.
securities to get the stated objective
ASSETS CLASS :
Government & Govt. guaranteed securitiesCash & money market
.
Considering a pie will be easy to define that what the funds
considering of:
ASSETS CLASS
Cash &MoneyMarket 15%
Government & Govt.
securities
85%
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ULIP FUND MANAGEMENT 39
MOVEMENT OF THE FUND:
Month NAV
Aug-09 13.118
Sep-09 13.142
Oct-09 13.181
Nov-09 13.279
Dec-09 13.32
Jan-10 13.403
Fev-10 13.43
Mar-10 13.478
Apr-10 13.541
May-10 13.67
Jun-10 13.634
Jul-10 13.646
Aug-10 13.575
15%
85%
ASSETS CLASS
cash&moneyma rket Go vt.&Govt.secirities
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ULIP FUND MANAGEMENT 41
MODERATOR:INVESTMENT OBJECTIVE:
To earn regular income by investing in high quality fixed income
securities and to generate capital appreciation by investing little into
the equity.
INVEST PHILOSOPHY:
The fund targets 20% investments in Equity and rest 80% in Govt. &
other debt securities to meet the stated objectives.
ASSETS CLASSES:
Govt. & other debt securitiesEquitiesCash & money market
Considering a pie will be easy to define that what the funds
considering of:
ASSETS CLASS
Cash &MoneyMarket 10%
Govt. securities 17%
Equities 18%
Corporate Bonds 55%
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ULIP FUND MANAGEMENT 42
MOVEMENT OF FUND:
Month NAV
Aug-09 15.166
Sep-09 15.266
Oct-09 15.445 Nov-09 15.581
Dec-09 15.693
Jan-10 15.806
Fev-10 15.64
Mar-10 15.866
Apr-10 16.033
May-10 16.047
Jun-10 16.172
Jul-10 16.328
Aug-10 16.293
10%
17%
18%
55%
ASSETS CLASS
Cash& Moneymarket G ovt.secur iti es Equi ti es Corpor ate Bonds
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UL P FU M EME 43
S , it is s fi t t st rts it . fi r s s it
t fi r f . ri t r. S if si r t f ts
l sis t t t M f r t is:
18
19
20
21
22
23
24
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ULIP FUND MANAGEMENT 44
BALANCER:Investment Objective:
To generate capital appreciation and current income through a
judicious mix of equities and Fixed Income securities.
Investment Philosophy:
The fund targets 50% investment in Equities and rest 50% in Govt. &
other debt securities to meet the stated objective.
ASSETS CLASS:
Govt. & Other debt securitiesEquitiesCash &Money marketCorporate Bonds
ASSETS CLASS
Corporate Bonds 36%
Equities 46%
Cash&Money market 4%
Govt. securities 14%
Considering a pie will be easy to define that what the funds
considering of:
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ULIP FUND MANAGEMENT 45
MOVEMENT OF FUND:
Month NAV
Aug-09 17.794
Sep-09 18.088Oct-09 18.42
Nov-09 18.473
Dec-09 18.704
Jan-10 18.871
Fev-10 18.287
Mar-10 18.882
Apr-10 19.159
May-10 10.023
Jun-10 19.072
Jul-10 19.386Aug-10 19.544
36%
46%
4%
14%
ASSETS CLASS
Corporate Bonds Equities Cash& Moneym arket Govt. Securities
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ULIP FUND MANAGEMENT 47
ACCELATO
R:
INVESTMENT OBJECTIVE:
To achieve capital appreciation by investing predominantly in
Equities, with limited investment in fixed income securities.
INVESTMENT PHILOSOPHY:
The fund targets 80% investments in Equities and the rest 20% in
Govt. & other debt securities in order to get the above objective.
ASSETS CLASS:
Govt. & Other debt securitiesEquitiesCash & money marketCorporate Bonds
ASSETS CLASS
Corporate Bonds 19%Equities 76%
Cash&Money market 4%
Govt. securities 1%
Considering a pie will be easy to define that what the funds
considering of:
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ULIP FUND MANAGEMENT 48
MOVEMENT OF FUND:
Month NAV
Aug-09 20.076Sep-09 21.247
Oct-09 21.783
Nov-09 21.732
Dec-09 22.183
Jan-10 22.427
Fev-10 21.318
Mar-10 22.408
Apr-10 22.023
May-10 21.997
Jun-10 22.485Jul-10 23.073
Aug-10 23.439
4
1
76
19
ASSETS CLASS
Cash&Money Market Govt.securities Equities CorporateBonds
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ULIP FUND MANAGEMENT 50
MULTI
PLIE
R:
INVESTMENT OBJECTIVE:
To generate long term capital appreciation by investing diversified
Equities.
INVESTMENT PHILOSOPHY:
The fund targets 100% investment in Equities to meet the above
stated objective.
ASSETS CLASS:
EquitiesCash & money market
ASSETS CLASS
Equities 94%
Cash&Money market 6%
Considering a pie will be easy to define that what the funds
considering of:
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ULIP FUND MANAGEMENT 51
MOVEMENT OF FUND:
Month NAV
Aug-09 21.417Sep-09 22.107
Oct-09 22.834
Nov-09 22.689
Dec-09 23.223
Jan-10 23.491
Fev-10 22.027
Mar-10 23.405
Apr-10 23.096
May-10 22.814
Jun-10 23.418Jul-10 24.201
Aug-10 24.723
6%
94%
ASSETS CLASS
Cash&MoneyMarket Equi ti es
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ULIP FUND MANAGEMENT 53
VIRTUE:INVESTMENT OBJECTIVE:
To generate long term capital appreciation by investing in diversified
Equities of companies promoting healthy life style and enhancing
quality of life.
INVESTMENT PHILOSOPHY:
The fund targets 100% investment in Equities to meet the stated
objective.
ASSETS CLASS:
EquitiesCash & money market
ASSETS CLASS
Equities 94%
Cash&Money market 6%
Considering a pie will be easy to define that what the funds
considering of:
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ULIP FUND MANAGEMENT 54
MOVEMENT OF FUND:
Month NAV
Aug-09 8.301Sep-09 9.102
Oct-09 9.501
Nov-09 9.522
Dec-09 9.901
Jan-10 10.038
Fev-10 9.891
Mar-10 9.921
Apr-10 9.902
May-10 9.482
Jun-10 9.915Jul-10 10.307
Aug-10 10.228
6%
94%
ASSETS CLASS
Cash&MoneyMarket Equi ti es
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ULIP FUND MANAGEMENT 56
FINDINGSSo during the data analysis it is found that the company have several
funds to invest their ULIP funds which are considering the facts like
Cash &Money market of the country, Equities, Government & Other
Debt Securities, Corporate Bonds etc. Those factors are ever changing
and dependents upon the facts like market scenario, government rules
& regulation etc. So, it is the duty of the company to make it clear to
the customer that where they should keep their fund.
During project time it is being tried to find that at which fund the
customer keep their fund, and resulted the following:
The above table shows that 53% of the customer keeps their fund in
the fund MULTIPLIER. The customer data is unable to produce as it
is against the company rules & regulation, but the bar chart represent
the right situation of the customers funding.
0%
10%
20%
30%
40%
50%
60%
Protector Preserver Moderator Balancer Accelarator Multiplier Virtue
BAR DIAGRAM SHOWING CUSTOMERS'
INVESTMENT
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ULIP FUND MANAGEMENT 58
RECOMENDATIONFrom the data analysis and findings it is easy to say:
The most of the customer keeps their funds with the fundMultiplier.
The fund gives the 3rd highest return from the market.The fund Virtue has its highest return during the period of time.
From the coming month of September-2010 it is necessary for the
Insurance companies to announce fixed return or a guaranteed
return from ULIP plan. So the market is going to become more
competitive and interesting for the investors.
In this scenario if the company possibly can convince the
customer to keep their funds with that fund which grows
maximum in a year, then it will be easy for the company and thecustomer to achieve desired revenue.
Another point which should be mentioned at last that is most of the
customers are unknown about the facts that what is actually
happening with their ULIP plans , and how it works in the market.
So such customers are unable to experience the plans properly. It is
the duty of the Financial Advisers to give them a little knowledge
about it, which will allow the customer to switches their fund
according their wish.
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ULIP FUND MANAGEMENT 59
LIMITATIONSThe study is depends on some data and information which are being
collected from the company and analysed by the help of some
techniques. But this study has a certain limit to accept as there have
certain limitation on it:
The customer data has to keep in secret according to thecompany rules & regulation.
It was not possible to analyse each and every customer at a time,thats why the customer diversification has been made only in a
sample size.
70 numbers of customers are taken as a sample size.The fund growths are of the very short period of 12 months, it
may be changed according to the market scenario. This growth
chart is being calculated as on it is on 25-Aug-2010 consideringthe time period of 12 months.
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ULIP FUND MANAGEMENT 60
BIBILOGRAPHY
For the completion of this project the help has
taken from the following sources:
I. http://www.businessdictionary.com/definition/fund.html
II. http://www.investopedia.com/terms/u/unit-linked-insurance-plan.asp
III. www.metlife.co.in