Bajaj Capital Ltd

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PROJECT REPORT

ON

COMPARISON AND POTENTIALITY

BETWEENMUTUAL FUND & UNIQUE LINKED

INSURANCE PLANAT

BAJAJ CAPITAL LTD.

SUBMITTED BYSANJAY B. MODHVADIYA

MBA Sem - IV

GUIDEDBY

Dr. ASHA ALEXANDER

ACADEMIC YEAR2006-2008

SUBMITTED TO

JAYSUKHLAL VADHAR INSTUTUTE OFMANAGEMENT STUDIES (JVIMS)

BIPIN T. VADHAR COLLEGE OF MANAGEMENTJAMNAGAR

AFFILIATED TO

SAURASHTRA UNIVERSITYRAJKOT

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PREFACE

As a part of MBA curriculum and in order to gain practical knowledge in the field of

management, we are required to do a grand project in any specific field, which

provide us good knowledge so I selected the industry which is in the filed of

financial planning, because in certain industry I can learn about the multiple

products.

The basic objective behind doing this project is to gain knowledge regarding the

real market situation. This is a report of a live project done by me for Bajaj Capital

Ltd. Company. This project report speaks about

Company Information

Information on different Investments Options.

All the two section take us stepwise from the present and findings for the future.

The recommendation rest on the basis of research work done and conclusion

derive there of. To add to this, various graphs, frequency tables etc. have been

added. Further, this analysis tries to bring to fore how RCAM can implement

opportunities owing to its service and quality that is renowned for. Through this

report, I summarize that I have strived to perfect us in best possible manner to

report my study systematically and ethically

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DECLARATION

I undersigned Mr. sanjay B. Modhvadiya, a student of M.B.A.III RD semester declare

that I have prepared this project report on TO STUDY THE AWARENESS OF

MUTUAL FUND AMONG THE INSURANCE AGENTS At Bajaj Capital Ltd. pvt.Ltd.

Under MR. Ketan Pandit. I am also guided by Mr.Rajesh Faldu of JVIMS

I also declare that this report is my own preparation and not copied from anywhere

else.

SANJAY MODHVADIYA

ROLL NO 36

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ACKNOWLEDGEMENT

It is great pleasure for me to introduce this report, which I have prepared after

doing my research work at BAJAJ CAPITAL in JAMNAGAR city area. I hope that

this report will be acknowledged.

I sincerely express my deep sense of gratitude to our Dy. Dir Ajay Shah and

ProfessorProf. Asha Alexanderfor placing before me such a golden opportunity

to undergo research work in corporate world. Their valuable guidance helped me

to complete my research project easily.

I would also like to acknowledge, Mr. Hitesh Panchal (Zonal head) and Mr.

Anand Udani (branch manager) who gave me his valuable guidance and time

throughout my project. Without his support I would have faced difficulties in

completing the project.

And lastly I would also thank my friends who helped in preparation of this project

report.

Yours faithfully,

(Sanjay. B. Modhvadiya)

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CONTENTS

Sr.No. Particulars Page

No.

1 Executive Summary 06

2 Introduction 07I) Company Details

II) Industry Details

III) Competitors Details

IV) Regulatory Environment Details

08

29

46

50

3 Research

I) Research Objectives

II) Research Methodology

a) Research Design

b) Unit of analysis

c) Sampling design

d) Data collection method

e) Data analysis & interpretation

56

59

60

60

61

61

62

64

4 Findings 83

5 Conclusion 84

6 Limitation of the study 85

7 Recommendation 86

8 Appendix 879 I) Questioners

I) List of graphs

II) Glossary

88

92

9310 Bibliography 103

Executive Summary

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The economy is highly influenced by the Financial System of the country. The

Indian Financial System has been broadly divided into two segments: the

organized and the unorganized. An investor has a wide array of investment

avenues available. Economic well being in the long run depends significantly on

how wisely he invests.

For todays complex financial scenario Bajaj Capital is offering the ideal investment

options. Markets for investment avenues like equity shares, bonds and other fixed

income instrument, real estate, derivatives have become information driven.

As Bajaj Capital is offering all these but my project is especially on the comparison

of mutual fund and Unique Linked Insurance Plan so I have studied these topic indepth.

Bajaj Capital is the financial planner established in 1964 and having 7 branches in

Gujarat State. The company has recently opened the branch in the JAMNAGAR

city. The company has 42years of trusted experience in the filed of financial

planning. I was placed under the marketing and sales department and I have

learned a lot in carrying out marketing task for Bajaj Capital. I have done marketing

of mutual fund and Unit Linked Insurance Plan products in the JAMNAGAR city

area.

I have also carried out a research project. Under the title of Comparative analysis

of mutual funds and Unique Linked Insurance Plan and Potentiality of MUTUAL

FUNDs and Unique Linked Insurance Plan.

The questionnaire was used as data collection instrument and both open ended

and close-ended type of questions were used as per the requirement. The surveywas random sample judgment. And from the survey it was found that the brand

awareness of Bajaj Capital. Is lower in JAMNAGAR.

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BAJAJ CAPITAL AND ITS JOURNEY SO FAR

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Bajaj Capital is a financial services company engaged in the business of Merchant

Banking, Resource Mobilization, Distribution of Financial Products, Investment

Advisory Service, Buying and Selling of Money Market Investments and Tailor

Made Financial Planning For Individual and Corporate Clients. Bajaj Capital is a

Securities and Exchange Board of India (SEBI) approved Category I Merchant

Banker/Investment Advisor, member of Delhi Stock Exchange and dealer on OTC

Exchange of India. The company was promoted in 1965 by Shri. K. K. Bajaj, a

lawyer turned businessman with an objective to provide professional guidance to

investors on where, when and how to invest and to assist the corporate sector in

its resource raising activities. Bajaj Capital became the first company to set up

Investment Centers all over India for this purpose. Today, Bajaj Capital has 90

offices in over 40 important Indian Cities and has a team of around 750 employees

i

Every year Bajaj Capital raises resources for over 1000 top Institutions/Corporate

for their fixed income and Equity offerings. Bajaj Capital is also one of Indias

largest distributors of financial products like Mutual Funds and Insurance.

ABOUT BAJAJ CAPITAL

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The Bajaj Capital Group is one of Indias premier Investment Advisory and

Financial Planning companies. We are also SEBI-approved Category I

Merchant Bankers.

We offer personalized Investment Advisory and Financial Planning services to

individual investors, corporate houses, institutional investors, Non-Resident

Indians (NRIs) and High Net worth Clients, among others.

As one of Indias largest distributors of financial products, we offer a wide

range of investment products such as mutual funds, life and general insurance,

bonds, post office schemes, etc. offered by reputed public and private and

government organizations

The History of Bajaj Capital

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Bajaj Capital has contributed to the growth of the Indian Capital Market at every

step. In 1965, we were the first to innovate the Companies Fixed Deposit. Today,

we are playing an active role in the growth of the Indian Mutual Fund industry. We

are also working closely with private insurance companies to deepen India's

insurance

here is a brief gist of our journey through the years.

1964

Bajaj Capital sets up its first Investment Centre in New Delhi to guide individual

investors on where, when and how to invest. India's first Mutual Fund, Unit Trust of

India (UTI) is incorporated in the same year.

1965

Bajaj Capital is incorporated as a Company. In the same year, the company

introduces an innovative financial instrument the Company Fixed Deposit. EIL

Ltd. (Oberoi Hotels, then known as Associated Hotels of India Ltd.) becomes the

first company to raise resources through Company Fixed Deposits.

1966

Bajaj Capital expands its product range to include all UTI schemes and

Government saving schemes in addition to Company Fixed Deposits.

1969

Bajaj Capital manages its first Equity issue (through an associate company) of

Grauer & Wells India Ltd.; right from drafting the prospectus to marketing the issue.

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1975

Bajaj Capital starts offering 'need-based' investment advice to investors, which

would later be known as 'Financial Planning' in the investment world.

1981

SAIL becomes the first government company to accept deposits, followed by IOC,

BHEL, BPCL, HPCL and others; thus opening the floodgates for growth of retail

investment market in India. Bajaj Capital plays an active role in all the schemes as

'Principal Brokers'

1986

Public Sector Undertakings (PSUs) begin making public issues of bonds MTNL,

NHPC, IRFC offer a series of Bond Issues. Bajaj Capital is among the top

mobilization for all these players

1991

SBI issues India Development Bonds for NRIs. Bajaj

Capital becomes the top mobilized with collections of over US $20 million.

1993

The first private sector Mutual Fund Kothari Pioneer is launched, followed by

Birla and Alliance in the following years. Bajaj Capital plays an active role and is

ranked among the top mobilizes for all these schemes.

1995

IDBI and ICICI begin issuing their series of Bonds for retail investors. Bajaj Capital

is the co-manager in all these offerings and consistently ranks among the top five

mobilizes on an all-India basis.

1997

Private sector players lead the revival of Mutual Funds in India through Open-

ended Debt schemes. Bajaj Capital consolidates its position as India's largest retail

distributor of Mutual Funds.

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1999

Bajaj Capital begins marketing Life and General Insurance products of LIC and

GIC (through associate firms) in anticipation of opening up of the Insurance Sector.

Bajaj Capital achieves the milestone of becoming the top 'Pension Scheme' seller

in India and launches marketing of GIC's Health Insurance schemes.

2000

Bajaj Capital implements its vision of being a 'One-stop Financial Supermarket.'

The Company offers all kinds of financial products, including the entire range of

investment and insurance products through its Investment Centres. Bajaj Capital

offers 'full-service merchant banking' including structuring, management and

marketing of Capital issues. Bajaj Capital reinvents 'Financial Planning' in itsinternational sense and upgrades its entire team of Investment Experts into

Financial Planners.

2002

The company focuses on creating investor awareness for Financial Planning and

need-based investing. To achieve this goal, the company introduced the

International College of Financial Planning. The graduates of this institute become

Certified Financial Planners (CFPs), a coveted professional qualification.

2004

Bajaj Capital obtains the All India Insurance Broking License. Simultaneously, a

series of wealth creation seminars are launched all over the country, making Bajaj

Capital a household name.

2005

Bajaj Capital launches 360 Financial Planning, a software-based programmed

aimed at encouraging scientific and holistic investing.

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CAIRMANS MESSAGE

For well over four decades now, we at Bajaj Capital have been helping millions of

investors reach their financial goals, and live fuller, richer and more satisfying lives.

Over these years, the Bajaj Capital family has seen tremendous growth. Now, with

our online venture, we are all set to make our presence felt even beyond the

geographical boundaries.

We remain committed to offer the best of our services, skills and expertise to all

our valued investor clients and visitors. Seen from this perspective, our online

venture is yet another effort at reaching out to you.

I hope that you will find this website useful. I welcome your suggestions to improve

this site, and make it more useful to investors.

K.K.Bajaj

Chairman,

Bajaj Capital Ltd.

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COMPANY PROFILE

Bajaj Capital is one of Indias leading Financial Services companies offering Free

Advice on Investments, Insurance, Tax Saving, Retirement Planning, Financial

Planning, Childrens Future Planning and other services. We also have a wide

range of products and services for Corporate, High Net worth Individuals, and

NRIs. all under one roof.

At Bajaj Capital, we believe in dreaming big. Dreams inspire us to excel. They

ignite hope and kindle in us the passion to stretch our limits. We also believe that

nothing can or should stop us from realizing our dreams and financial constraintsshould be the last thing to stop anyone.

Four decades of excellence

Forover four decades, we have been helping people realize their aspirations by

helping them make their wealth grow, and plan their financial lives.

Today, we are a one of the largest financial planning and investment advisory

companies in India, with a strong presence all over the country. We take pride in

serving our customers both individual and institutional and are known for our

strong professionalism and work ethics.

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Wide range of services

We offer a comprehensive range of services including financial planning and

investment advice, and the entire gamut of financial instruments and investment

products of almost all major companies, both public and private. In addition, we

also provide investment assistance by helping you complete all the formalities,

and help you keep regular track of your investments.

These services and products are delivered through our network of 109 Bajaj

Capital Investment Centers located all over the country.

We are also a SEBI-approved Category I Merchant Banker. We raise resources

for over 1,000 top institutions and corporate houses every year, and offer

specialized services to Non-Resident Indian (NRIs) and High Net worth

Clients.

What you can expect from Bajaj Capital.

Sound, research-based advice Unbiased, independent and need-based advice Prompt, courteous service Honest, ethical dealings Accessibility

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Branches of Bajaj Capital in Gujarat:

The company is having following branches in Gujarat State

Ahmedabad

Gandhinagar

JAMNAGAR

Rajkot

Surat

Vadodaa

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SERVICES PROVIDE BY BAJAJ CAPITAL

Merchant Banking:

Bajaj Capital enjoys SEBI category (I) authorization for Merchant Banking. We

offer the full spectrum of Merchant Banking Services, beginning from identifying

the best time for an issue to final stage of marketing it, to harvest unparalleled

success.

Bajaj Capital has always been cautious to associate only with select capital issues

and has managed over 100 issues for both Debt and Equity over the years for

Corporate sector ranging from family owned companies to professionally managed

multinationals to government companies and across the entire spectrum of

industries. On a cumulative basis, we have managed issues worth over RslOO

billion and are constantly ranked among Top 10 Merchant Bankers in the country.

Bajaj Capital excels in the area of Debt offerings from Central and State Financial

Institutions and Infrastructure companies. Our excellence in this field is a function

of deep industry

Knowledge, proven financial savvy and a team of brightest minds in the industry.

These strengths enable us to structure, price and distribute Debt solutions that

generate outstanding response.

Resource Mobilization:

Bajaj Capital is one of Indias leading mobilizes of public savings in shape of

financial Instruments like company Deposits, Bonds, Debentures, IPOs and other

Government saving schemes. Bajaj Capital since inception has raised resources

for 2000 leading institutions and corporate including over 1600 Private Corporate,

over 40 Government Companies/PSUs, over 28 Mutual Fund, 15 Central and State

level Financial institutions & over 15 Banks. The list includes the whos who of Top

Government Institutions and Private Corporate in India.

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Bajaj Capitals is widely regarded as one of Indias largest distributor of Mutual

Funds. We distribute over 100 schemes of all leading and selected Mutual Fund.

Investment Advisory

Bajaj Capital offers need based Investment Advice to retail investors, High Net

worth Investors (HNI) & Institutional Investors. Bajaj Capital is serving 5,40,000

Retail investors all over India including 10,000 NRIs and 5000 HNIs besides 2500

Institutional Investors. We offer investors advice on a range of over 1000

investment schemes including Fixed Income, Equity and Mutual Fund products

besides insurance.

Over 7000 prospective clients visit our offices all over India daily, seeking

investment advice.BajajCapital has a Premier Clients Group exclusively to caterto high Net worth Individuals (HNIs) who seek special attention. Relationship

Manager is assigned to every such Investor to constantly keep him up to date on

latest market changes and review his portfolio regularly.

Money Market:

Bajaj Capital has an active Money Market desk, which is engaged in purchase &

sale of Central & State Government Securities and Bonds catering to the needs ofEducational & Charitable Trusts, Societies, Corporate, Banks, Provident/Super

Annulations Gratuity Fund and HNIs. Bajaj Capital is also active in meeting short-

term fund requirements of various corporate clients by arranging Inter Corporate

Deposits and raising commercial paper.

Financial Planning:

Financial goal of each individual investor varies according to his dream, ambition

and family size and future financial planning for the children & old age pension for

self and wife so does the pathway to achieve it. At Bajaj Capital we apply the

principles of Financial Planning as both science & art; we understand the time

horizon, risk bearing capacity and investment goals of investors keeping in mind

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their psyche and financial needs. Based upon this we help individual investors plan

their entire life up to Retirement, Taxes, Insurance needs and other important

personal financial goals.

Insurance Broking:

Bajaj Capital is an IRDA licensed insurance broker. The job of an insurance broker

is to identify his clients requirements, assess them and then match them to the

most competitive and

Appropriate insurance for their clients. Bajaj Capital is an independent broker who

is not tied to any individual insurance company. We are multi-tied which is where

we can introduce products to the clients from a panel of insurance providers. Bajaj

Capital insurance broking will simply be acting on behalf of the customers and only

in their best interest. We know all the different products in the market and can find

the right one for the clients at the right price.

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VALUE ADDED SERVICES PROVIDES BY

BAJAJ CAPITAL

1. Regular information update: we keep you updated on the latest opportunities

in the world of investments.

2. Need based advise: our advise is all need based we give you customize advise

only after understanding your financial goals, risk, tolerance and other priorities in life.

3. Research based Advise: Our profession research team will help you with

advise that is thoroughly based on the analysis of market dynamics, government

policies and a close monitoring of global development.

4. Free Investment health check: we help you achieve your financial goals by

assessing your risk tolerance level and recommending to you a suitable asset allocation

model for your investments.

5. Door to door Service: We have a vast network of branches all over India

helping you to get services at your doorsteps.

6. Regular Information: through our in house publications like bajaj Capital

Investors India, Investors Outlook, investments select list and others we keep your

updated on the latest opportunities in the world of investments.

7. Accessibility: we have branches spread nationwide covering all important Indian

cities almost every nook and corner of the country.

8. Tailor made solution: you get easy transactions and tailor made solutions

through our Investment centers even at the tinkle of a phone.

9. Spoliation in all Clint Segment: we offer financial planning for wife

housewives, celebrities, players, doctors, architects, professionals, ambassadors, army

officers and the likes.

10. 24 hour availability: we are available to you, 24 hours a day on our website,

www.bajajcapital.com

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ORGANIZATION CHART

Figure-1 (Get from the Bajaj capital Jamnagar Branch)

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EXECUTIVES OF THE COMPANY

Mr. K.K. Bajaj, Chairman

A visionary par excellence, a pioneer and a leader,

Mr. K.K. Bajaj has been instrumental in shaping

Bajaj Capital has emergence as one of Indias largest

Investment Advisory companies.

He is a highly respected figure in the field of institutional and personal finance and

Company FDs. His emphasis on honesty, ethics and values are the guiding

principles of the organization.

Mr. Bajaj is also a prolific writer and has written over 200 articles on diverse issues

such as Personal Finance, Economic Affairs, and Health.

Mr. Rajiv Deep Bajaj, Managing Director

A qualified Financial Planner, Mr. Rajiv Deep Bajaj was the first to introduce the

concept of Financial Planning in India. In fact, he is the Founding Chairman of the

Association of Financial Planners (AFP). He is also amongst the first batch of 25Certified Financial Planners (CFPtm) designation holders in India.

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A Post-graduate in Management and holder of an International Certificate for

Financial Advisors from the Chartered Insurance Institute, London, Mr Rajiv Deep

Bajaj has played a pivotal role in expanding Bajaj Capital's reach across the

country. He has recently pursued an Executive MBA in International Wealth

Management under an exchange program between University of Geneva,

Switzerland and Carnegie Mellon University, Pittsburgh, USA.

His youthful energy, dynamic leadership, vision and 16 years strategic

management experience in Banking, Financial Advisory, Insurance Broking and

Financial Planning have strengthened Bajaj Capital.

The Media and Industry honchos have regularly acclaimed Mr Rajiv Deep Bajaj for

his strengths as a powerful orator and writer. His views on various Investment

Strategy and Financial Planning-related issues are regularly flashed in some of the

leading media entities like The Economic Times, Business Today, Star TV, CNBC

and Aaj Tak. His personal life goal is to spread Financial Education amongst the

Indian masses in order to increase their knowledge base and shift their perspective

from Saving to Investing.

Mr. Sanjiv Bajaj, Joint Managing Director

Mr. Sanjiv Bajaj started his career in 1995 as managerial trainee, worked on

various projects which included developments at alternate channel of distribution

like Broker's associations...etc. From here, he moved on to Investment Advisory

services, which included understanding the client's needs, and by using various

tools of financial planning to offer them a solution to meet his requirements.

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Mr Sanjiv Bajaj is versatile personality with diverse areas of interest. He is a Post-

graduate in Business Management with specialization in Finance, and holds an

International Certificate for Financial Advisors from the Chartered Insurance

Institute, London.

Thanks to him, Bajaj Capital is today the largest individual agent for LIC. Mr Sanjiv

Bajaj has a keen interest in IT, and has played a major role in implementing the

ERP software and E-commerce activities in the company

Mr. Anil Chopra

CEO & Director

Mr. Anil Chopra is the Chief Executive Officer & Director of Bajaj Capital Limited;

He joined the Company in 1984. Mr. Chopra has been instrumental in expanding

the branch network of Bajaj Capital Ltd. all over India.

A Chartered Accountant and a Certified Financial Planner, Mr. Chopra is credited

with introducing international accounting and HR practices in the organization. His

most valuable contribution, however, has been in building up a financially literate

society and making Bajaj Capital a strong retail brand. He is considered anauthority, and is widely sought after by the media for quotes on key developments

in the industry

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BAJAJ CAPITAL'S MISSION STATEMENT

The focus of our organization is to be the most useful, reliable and efficient

provider of Financial Services. It is our continuous endeavor to be a trustworthy

advisorto our clients, helping them achieve their financial goals.

AIMS OF BAJAJ CAPITAL

To serve our clients with utmost dedication and integrity so that we exceed

their expectations and build enduring relationships.

To offer unparalleled quality of service through complete knowledge of

products, constant innovation in services and use of the latest technology.

To always give honest and unbiased financial advice and earn our clients'everlasting trust.

To serve the community by educating individuals on the merits of Financial

Planning and in turn help shape a financially strong society.

To create value for all stake holders by ensuring profitable growth.

To build an amicable environment that accords respect to every individual

and permits their personal growth.

To utilize the power of teamwork to function as a family and build a

seamless organization.

MOTTO OF THE COMPANY

To provide better customer service

To increase AUM

Long-term wealth creation of customer.

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Figure-2 (Available www. Bajaj Capital.com)

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SIGNIFICANCE OF BAJAJ LOGO

Our logo depicts Lord Ganesha who is the source of all our values and ethics in

business.

The large ears of Lord Ganesha remind us to hear more. We listen carefully

to our clients to understand their needs.

The weight of the trunk on the mouth symbolizes silence. We work silently,without blowing our own trumpet.

The long trunk symbolizes continuous exploration. We explore all avenues

to provide the best investment opportunities for our clients.

The heavy posture of Ganesha symbolizes stability. We help our clients to

attain financial stability through wise investments.

Lord Ganesha is known as the remover of obstacles and best ower of

prosperity. We emulate His example and try our best to help our clients

attain prosperity by proper financial planning.

Our logo has a yellow background. Yellow is the color of gold, which

symbolizes wealth. According to Vedic lore, it is also the color associated

with Brihaspati, the guru and counselor of the Gods. We offer our clients

sage counsel to make their wealth grow.

The letters are in red. Red is the color rajas symbolizing power and

incessant activity. It symbolizes our aggressive quest for your well-being

and happiness.

The white streak represents the trunk of Lord Ganesha. White is the color of

satva guna, and implies our selfless commitment to your life-long

happiness.

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STRENGTH OF BAJAJ CAPITAL

Wide range ofproducts and services

41 years experience as Investment Advisors and Financial Planners

More than eight lakes satisfied clients all over India

Countrywide network of120 branches

Over12,000 NRI clients across the globe

Personalized wealth management advice

24 x 7 online accessibility through www.bajajcapital.com

Strong team of qualified and experienced professionals including CAs,

MBAs, MBEs, CFPs, CSs, Insurance experts, Legal experts and others

SEBI-Approved Category I Merchant Bankers

Group Co BCIBL is an IRDA-licensed Direct Insurance Broker

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THE INDIAN FINANCIAL MARKET

The economy of any country is widely influenced by the financial market of that country.

There is a strong link between the economy progress and the financial system withinstitutional arrangement and prevailing delivery system.

The Indian economy is on the path of progress and the projection of GDP growth rate in

Budget-2005 is around 9%. The financial system has a strong impact on GDP growth

rate. The Indian financial system is divided into two parts organized and unorganized.

The organized sector constitutes of Commercial Banks, FIs, Insurance companies,

Mutual Funds, Unit Trusts, etc. The Indian financial system has also the involvement of

public sector institutions.

Financial institutions being the important part of financial system in India help to realize

the opportunities for savings and real investment in the economy. The FIs help in

growth of economy, boosting the investment in various sectors of economy and also the

growth of GDP and per capita income.

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MUTUAL FUNDS

Introduction

The first investment trust established in Scotland by Robert Fleming and the first mutual

fund of the world The Massachusetts Investors Trust open-ended scheme was

launched in Boston, USA in 1924. It was 40 years later that the mutual fund institution,

namely the Unit Trust of India was established in India in 1964 and awareness about it,

has only been since late 1980s. As of date in US alone there are 5000 MUTUAL FUNDs

with the total assets over $3 billion.

The Mutual Fund is the ideal investment vehicle for todays complex financial scenario.

Markets for equity shares, bonds and other fixed income instrument, real estate,

derivatives and other asset have become information driven.

Mutual funds are comparatively better option for investment due to various benefits.

First benefit is that investors funds are properly managed by fund manager who has

wide experience in capital market. Also with proper management of funds returns on

mutual fund schemes are maintained. The liquidity option, which is the main investment

attribute, can also chosen according to ones investment objective and need.

The mutual fund industry is growing at a faster pace. In future mutual fund will be a

better option for retail investors who want to invest their money in capital market. Bank

deposits and insurance investments have lock-in periods and so retail investors can

have another option for investment i.e. Mutual Fund where investor can get liquidity with

satisfactory returns.

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THE INVESTMENT OPTIONS

In India the investor has wide variety of investment options available to him. Economic

well being in the long run depends significantly on how wisely he invests. Everyinvestment options has two main aspects i.e. risk and return. The investor has the

choice of investment in capital markets of the country and also in financial institution of

the country like Banks and Insurance companies. The various tools of investment

available to investor are as follows -:

Equity Shares

Bank Deposits Investment in Debt Market

Post Office Savings

Government Securities

Life Insurance

Real Estate

National Saving Certificate (NSC)

Kishan Vikas Patra (KVP) Mutual Fund Schemes

The investor can invest in any of the above investment tool depending on his

investment objective and need. Generally in India the investor prefer to invest in banks

and in post office savings account. But in last few years the trend have changed and

investors are moving towards capital markets.

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INVESTMENT ATTRIBUTES

Rate of Return

The rate of return is an very important aspect of the investment tool. The rate of return

is high in equity markets and it is low in post office savings and bank deposits. It means

the more riskier the instrument the more the return will be.

Risk

The rate of return from investments like equity shares, real estate, etc varies rather

widely. The risk of an investment refers to the variability of its rate of return. Bank

deposits, post office savings, investment in debt market are less risky and have fixed

return.

Liquidity

An investment is highly liquid if:

a) It can be transacted quickly

b) The transaction cost is low

c) The price change between two successive transactions is negligible

The liquidity of market may be judged in terms of its depth, breadth, and resilience.

Depth refers to the existence of buy as well as sells orders around the current market

price. Breadth implies the presence of such orders in substantial volume. Resiliencemeans that new orders emerge in response to price changes. High marketability is

desirable characteristics and low marketability is an undesirable characteristic.

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Tax Benefits

Some investments provide tax benefits, other does not. Tax benefits are of three kinds:

Initial tax benefit, Continuing tax benefit and Terminal tax benefit. Initial tax benefit

refers to the relief enjoyed at the time of making the investment. Continuing tax benefit

represents the tax shield associated with the periodic returns from the investment e.g.

Insurance, bank interest, etc. Terminal tax benefit refers to relief from taxation when an

investment is realized or liquidated.

Convenience

Convenience broadly refers to the ease with which the investment can be made and

looked after. Ready availability of investment and easy monitoring of investment can

judge convenience. The degree of convenience associated with investments varies

widely. On one hand there is deposit in savings bank account that can be readily

available and does not require maintenance effort. On the other hand is purchase of

real estate that may involve a lot of procedural and legal hassles at the time of

acquisition and a great deal of maintenance effort subsequently.

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BAJAJ CAPITAL: A ONE STOP FINANCIAL SUPERMARKET

Bajaj capital offers a comprehensive range of financial products and services, which will

help to achieve our lifes financial goals all under one roofs.

The products are as under:

INVESTMENT ADVISORY PRODUCTS

Company Fixed Deposits

Bonds

Mutual Funds

Life Insurance

General Insurance

Pension Schemes

Post office Schemes

Tax Savings Schemes

Insurance Linked Investment Schemes

Initial Public Offering

Housing Loans

NRI Schemes

Car Insurance

FINANCIAL PLANNING SCHEMES

Investment Planning

Retirement planning

Insurance Planning

Childrens Future Planning

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Tax Planning

Short Term Cash Flow Planning

COMPANY FIXED DEPOSITE:

Fixed Deposits in companies that earn a fixed rate of return over a period of time

are called Company Fixed Deposits. Financial institutions and Non-Banking

Finance Companies (NBFCs) also accept such deposits. Deposits thus mobilized

are governed by the Companies Act under Section 58A. These deposits are

unsecured, i.e., if the company defaults, the investor cannot sell the documents to

recover his capital, thus making them a risky investment option.

BONDS:

Bond refers to a security issued by a company, financial institution or government

which offers regular or fixed payment of interest in return for borrowed money for a

certain period of time.

MUTUAL FUND:

A Mutual Fund is a trust that pools together the savings of a number of investors

who share a common financial goal. The fund manager invests this pool of money

in securities -- ranging from shares and debentures to money market instrumentsor in a mixture of equity and debt, depending upon the objectives of the scheme .

LIFE INSURANCE & GENERAL INSURANCE:

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Insurance provides a cover against uncertainties like death, accidents, and

financial losses etc. It also serves as an effective investment and tax saving tool.

PENSION SCHEME:

The retirement age poses problems, health as well as family problems. The most

important problem is financial; hence the pension scheme which should act as a

financial friend in the years of post-retirement.

POST OFFICE SCHEME:

These schemes are offered by the Government of India.

Safe, secure and risk-free investment options.

No Tax Deduction at Source (TDS).

Nomination facility is available.

Nomination can be changed at any time

These instruments are transferable to any part of India.

Attractive rates of interest.

TAX SAVING SCH

This new section has been introduced from the Financial Year 2007-08.

Under this section, a deduction of up to Rs. 1,00,000 is allowed from Taxable

Income in respect of investments made in some specified schemes. The specified

schemes are the same which were there in section 88 but without any sectorial

caps (except in PPF).

EQUITY LINKED SAVINGS SCHEMES:

Equity Linked savings scheme is floated by the mutual funds. It is basically a

scheme, which according to the rules invests in the equity shares of the

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companies. Such investment will have to be made in the mutual fund specified u/s

10(23D) of the Income Tax Act to be eligible for rebate

INITIAL PUBLIC OFFERING:

Initial public offering (IPO), also referred to simply as a "public offering," is the first

sale of stock by a private company to the public. IPOs are often issued by smaller,

younger companies seeking capital to expand, but can also be done by large

privately-owned companies looking to become publicly traded

NRI SCHEMES:

NRIs can make direct investments in proprietary/partnership concerns in India

as also in the primary issues of shares/debentures of Indian companies.

They can also make portfolio investments, i.e. purchase of shares/debentures of

Indian companies through stock exchanges in India. These facilities are available

on both repatriation and non-repatriation basis.

In order to facilitate NRIs to set up new companies in India, the Reserve Bank of

India (RBI) vide its Notification NO. FERA 143/93 RB dated 26th April 1993, has

granted general permission to NRIs to subscribe to the Memorandum and Articles

of Association and to take up the shares of Indian companies for their

incorporation.

The general permission empowers such Indian companies to issue shares to

NRIs, provided that the company is not engaged into activity relating to

agricultural and plantation.

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:

FINANCIAL PLANNING SCHEMES:

INVESTMENT PLANNING:

RETIREMENT SCHEMES:

JVIMS-JAMNAGAR 40

Investment Planning is the key to successful investin

It is a scientific process, which, if done in the right spr

can help you achieve your financial goals. Here are th

basic steps of Investment Planning

Some like it. Some dont. But retirement is a reality forevery working person. Most young people today think of

retirement as a distant reality.

However, it is important to plan for your post-retirement

life if you wish to retain your financial independence and

maintain a co Mutual Fundortable standard of living even

when you are no longer earning. This is extremely

important, because, unlike developed nations, India does

not have a social security net.


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INSURANCE PLANNING:

CHILDRENS FUTURE PLANNING:

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Insurance is not for the person who passes away, it forthose who survive,"goes a popular saying that explains the importance of

Insurance Planning

Insurance Planning is concerned with ensuring adequate

coverage against insurable risks. Calculating the right level of

risk cover is a specialized activity, requiring considerable

expertise. Proper Insurance Planning can help you look atthe possibility of getting a wider coverage for the same

amount of premium or the same level of coverage for the

same amount of premium or the same level of coverage for a

reduced premium. Hence, the need for proper insurance

planning.

Every parent wishes to watch their child grow. All parents want

to give the best possible upbringing to their children. This

includes good education and security, in case of any

eventuality. Soon, your little bundle of joy will grow up, and it

will be time to provide for his or her higher education and

wedding.

The purpose of Children's Future Planning is to create a

corpus for foreseeable expenditures such as those on higher

education and wedding, and to provide for an adequate

security cover during their growing years.


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TAX PLANNING:

SHORT TERM CASH FLOW PLANNING:

In simple terms, cash flow refers to the inflow and outflow of money. It is a record

of your income and expenses. Though these sounds simple, very few people

actually take the time out to find out what comes in and what goes out of their

hands each month.

Cash flow planning refers to the process of identifying the major expenditures in

future (both short-term and long-term) and making planned investments so that the

required amount is accumulated within the required time frame.

Cash flow planning is the first thing that should be done prior to starting an

investment exercise, because only then will you be in a position to know how your

finances look like, and what is it that you can invest without causing a strain on

yourself. It will also enable you to understand if a particular investment matches

with your flow requirement.

JVIMS-JAMNAGAR 42

Proper tax planning is a basic duty of every person whichshould be carried out religiously. Basically, there are threesteps in tax planning exercise. These three steps in taxplanning are:

1. Calculate your taxable income under all heads i.e.,Income from Salary, House Property, Business &Profession, Capital Gains and Income from OtherSources.

2. Calculate tax payable on gross taxable income forwhole financial year (i.e., from 1st April to 31st March)using a simple tax rate table, given on next page.


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MY WRAP ACCOUNT

Entry Load FREE access to Mutual Fund investments (retailinvestment through Distribution channel otherwise attracts up to2.50% entry load);

Entry Load FREE access to Mutual Fund investments (retailinvestment through Distribution channel otherwise attracts up to2.50% entry load);

3 Fund Options to suit ones Risk Appetite with unlimited switches at

NO EXTRA COST (most of the AMCs offer only limited switches orswitches with charges);

Exposure to Multi Asset Group like Indian & International equities,debt funds, commodities (Gold), global real estate funds, structuredfunds, etc. through single investment;

Investment strategies & Mutual Fund selections backed by expertise ofover 4 decades old Financial Advisor services of Bajaj Capital;

Lowest Annual Maintenance Charges in the industry, so far;

Exit/Redemption (partial or full) facility at any time (nominal chargesapplicable if redeemed before 18 months);

Single application, Single Account Statement & Single Paymentsystem drastically reduces paper work and wastage of cheque leaves;

Absolute transparency through web based Portfolio Reports, 365 daysa year, 24 hours a day & Annual Audited Consolidated Asset wiseBalance Sheet to know capital gains/losses;

As on 28th January 2008 1 year yield of the bench mark index was 18%to 22%.

Minimum subscription Rs.5 lakhs per Fund Option.

Figure - 3 (Available on www.Bajaj Capital.com)

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JUST TRADE

CORPORATE HISTORY

Just Trade is the stock brokerage arm of Bajaj Capital Ltd., India's foremost

Financial Planning and Investment Advisory Company. Over the last 43 years of its

existence, Bajaj Capital has carved a niche for itself as honest, ethical,

independent and unbiased advisors, offering a world-class service. Bajaj Capitalhas over 142 offices in 77 cities across India; and serves over 8,00,000 clients.

Just Trade began operations on September 1, 2006, with the inauguration of the

first trading centre at Nehru Place, New Delhi.

Currently, we have 10 such Just Trade Centers in various cities across the country.

The launch of our online investment portal in June 2007 has multiplied our reach

manifold.

Do-it-Yourself Investing: Our Founding Principle

When it comes to online trading in equity and investments, Just Trade puts you on

the driver's seat. You decide when, where and how much to invest. Our role is only

to facilitate the process and help you take informed decisions. Here are some of

the other benefits that Just Trade TM offers:

Hi-speed, hi-tech

There are no speed limits for creating wealth. Our hi-tech and highly reliable online

connectivity through V-SAT and Lease Lines ensures that your trading orders are

executed at lightning speed.

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Easy... for the busy!

Your time is precious. We understand that trading may not be your only business.

That's why we have created simplified processes, from account opening to

execution of orders.

Just 'n' fair

Being a value driven company, we believe in offering the best value at a 'fair price'.

There are no hidden costs involved. All our processes are transparent and comply

with statutory requirements.

World-class services

We not only adhere to the industry's global best practices, but exceed them in

many respects. Our quality control mechanism ensures a uniform delivery of high

standard services.

The knowledge edge

The right information at the right time is the key to trading success. Our

researchers sift through information from multiple sources, and communicate them

in a jargon-free language. We provide long and short-term investment strategies

based on scientific principles.

Personal touch

A service is only as good as those who deliver it. That's why we have invested in a

team that serves with a smile be it at our Just Trade Centers across India, our

back office staff handling online and telephone queries.

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RELIANCE MONEY

Reliance Money has interests in asset management and mutual funds, life and

general insurance, private equity and proprietary investments, stock broking,

depository services, distribution of financial products, consumer finance and other

activities in financial services.

Reliance Mutual Fund is Indias no.1 Mutual Fund. Reliance Life Insurance is

Indias fastest growing life insurance company and among the top 5 private sector

insurers. Reliance General Insurance is Indias fastest growing general insurance

company and the top 3 private sector insurers. Reliance Money which commenced

commercial operations in April 2007 has over 300,000 customers and 4,300 outlets

in more than 3,500 locations across India. Reliance Consumer finance which

commenced commercial operations in May 2007 has disbursed loans of over

Rs.3,000 corers within 6 months of operations.

Reliance Capital has a net worth of Rs.5, 662 corers and total assets of Rs. 10,083

corers as of September 30, 2007 and over 16,000 employees.

Products:

IPO

Forex

Personnel finance

Mutual fund

Equity

Commodity

Derivatives

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NJ Indiainvest Pvt. Ltd.

BAJAJ CAPITAL LTD.S PVT. LTD is a Mutual Fund Distribution company. The

company on behalf of various AMCs and its mutual fund schemes collects money fromprospective investors and provides services to them. At present the company is dealing

with all types of mutual fund schemes.

Two promoters Neeraj Choksi and Jignesh Desai at Surat established the company in

the year 1994. At that time the company was in the business of investment revenue like

SSNL, RBI bonds, IDBI bonds, direct equity, etc. In the year 1996 the company started

Mutual Fund Distribution business. And today the company is involved in only mutual

fund distribution business. The Companies corporate head office is at Surat.

The main area of business for the company is Gujarat. The company is having 68

branches in all over India. The company is covered whole of Gujarat state in mutual

fund distribution business. And now they effectively works outside Gujarat too for

expanding their business .

Services provided by the Company are:

Mutual funds

Fixed Deposits

Infrastructure Bonds

Approved Securities for Charitable Trust

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Karvy Consultants

Karvy Consultants Limited was established in 1982 at Hyderabad the capital of

Andhra Pradesh. It was established by a group of Hyderabad-based practicingChartered Accountants. At initial stage it was very small in size. It was started with

a capital of Rs. 1,50,000.

Today, company has 230 branches in 164 cities all over the India. The company

adds 5 new branches every month to the companys ever growing national network

in every nook and corner of the country. The company service over 16 million

individual investors, 180 corporate and handle corporate disbursements that

exceed Rs. 2500 Crore. Today Karvy is a legendary name in financial services.

Services provided by the Company are:

Stock Broking

Demat Services

Insurance

Mutual Fund services

Registrars & Transfer Agents

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REGULATORY BODIES OF MUTUAL FUNDS

Financial System is basically responsible for the major up and downs in the

economy. So, there are some Regulatory Bodies on it, which ensures

effectiveness in the management of fund of the investors and transparency in the

transactions.

Security Exchange Board Of India (SEBI):

Mutual Funds are regulated by SEBI Regulations, 1996. SEBI is theregulator of all funds except offshore funds. In the year 1992 SEBI Act was

passed. The objectives of SEBI are to protect the interest of investors in

securities and to promote the development of and to regulate the securities

market.

As far as Mutual Funds are concerned, SEBI formulates policies and

regulates the Mutual Funds to protect the interest of the investors. SEBI

notified regulations for the Mutual Funds in 1993. Thereafter, Mutual Funds

sponsored by private sector entities were allowed to enter the capital

market. The regulations were fully revised in 1996 and have been amended

thereafter from time to time. SEBI has also issued guidelines to the Mutual

Funds from time to time to protect the interests of investors.

Before starting an AMC the sponsor has to register it with the SEBI. Any

changes into the philosophy or investment pattern in the Company, should

be reported to SEBI.

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Reserve Bank Of India (RBI):

RBI Established on April 1, 1935 in accordance with the provisions of the

Reserve Bank of India Act, 1934. The Central Office is at Mumbai since

foundation.

The objectives of RBI are:

"to regulate the issue of Bank Notes and keeping of reserves with

a view to securing monetary stability in India and generally to operate

the currency and credit system of the country to its advantage."

Bank- sponsored Mutual Funds are jointly regulated by SEBI and RBI. If

there is a bank-sponsored fund, it cannot provide a guarantee without RBI

permission.

Association Of Mutual Fund in India (AMUTUAL FUNDI) Board:

AMUTUAL FUNDI is not a self-regulatory organization. AMUTUAL FUNDI is

regulated by its own board made up of its members. It runs under the

guidance of RBI and SEBI. It was formed for promoting mutual funds into

masses. To be a Mutual Fund Advisor, AMUTUAL FUNDI Board takes a

exam for it.

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http://www.rbi.org.in/index.dll/7?OpenSection?fromdate=06/18/04&todate=06/18/04&s1secid=0&s2secid=0http://www.rbi.org.in/index.dll/7?OpenSection?fromdate=06/18/04&todate=06/18/04&s1secid=0&s2secid=0


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REGULATORY BODIES OF LIFE INSURANCE

MINISTRY OF FINANCE INSURANCE DIVISION

Major Functions

The functions of the Division include formulation of policy for the orderly growth of

the Insurance sector. These, inter alias, include administration of the Insurance

Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance

Business (Nationalization) Act, 1972, Insurance Regulatory and Development

Authority (IRDA) Act, 1999 and other related Acts; monitoring of the performance

of the nationalized insurance companies, framing of rules and regulations in

respect of service conditions of employees of nationalized insurance companies;

framing of Rules in respect of terms and conditions of services of the Chairpersons

and Members of Insurance Regulatory and Development Authority (IRDA) and

appointment of the Members of IRDA, co-ordination of vigilance matters in the

nationalized insurance industry; and appointment of Chief Executives and

Directors on the Boards of nationalized insurance companies.

IRDA (INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY)

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development

Authority (IRDA, which was constituted by an act of parliament) specify the

composition of Authority.

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The Authority is a ten member team consisting of

(a) a Chairman;

(b) five whole-time members;

(c) four part-time members,

(all appointed by the Government of India)

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of

IRDA.

Subject to the provisions of this Act and any other law for the time being in force,

the Authority shall have the duty to regulate, promote and ensure orderly growth of

the insurance business and re-insurance business

.

Without prejudice to the generality of the provisions contained in sub-section

(1)The powers and functions of the Authority shall include, -

(a) Issue to the applicant a certificate of registration, renew, modify, withdraw,

suspend or cancel such registration.

(b) protection of the interests of the policy holders in matters concerning assigning

of policy, nomination by policy holders, insurable interest, settlement of insurance

claim, surrender value of policy and other terms and conditions of contracts of

insurance;

(c) Specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents;

(d) Specifying the code of conduct for surveyors and loss assessors;

(e) Promoting efficiency in the conduct of insurance business;

(f) Promoting and regulating professional organizations connected with the

insurance and re-insurance business.

(g) Levying fees and other charges for carrying out the purposes of this Act.

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(h) Calling for information from, undertaking inspection of, conducting enquiries

and investigations including audit of the insurers, intermediaries, insurance

intermediaries and other organizations connected with the insurance business.

(i) control and regulation of the rates, advantages, terms and conditions that may

be offered by insurers in respect of general insurance business not so controlled

and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act, 1938 (4 of 1938).

(j) Specifying the form and manner in which books of account shall be maintained

and statement of accounts shall be rendered by insurers and other insurance

intermediaries;

(k) Regulating investment of funds by insurance companies.

(l) Regulating maintenance of margin of solvency.

(m) Adjudication of disputes between insurers and intermediaries or insurance

intermediaries.

(n) Supervising the functioning of the Tariff Advisory Committee.

(o) Specifying the percentage of premium income of the insurer to finance

schemes for promoting and regulating professional organizations referred to in

clause.

(p) Specifying the percentage of life insurance business and general insurance

business to be undertaken by the insurer in the rural or social sector.

.

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Problem Formulation

Problem is any hurdle or barrier or area, which requires inquiry. Research Problem

is an issue for which thewhole procedure is carried on.Today competition and markets both have expanded. The company every now and

then cannot afford to undertake research activities as research involves huge cost.

The companies undertake research activities when it perceives that something is

going wrong or theyre in lack of information to solve a particular problem. In such

cases only company undertakes research activities. The research activity is totally

dependent on managerial problem and research objective.

Research has been done to find out the brand awareness of Bajaj Capital Ltd.. The

data was collected with the help of questionnaire. The main focus of research was

to study brand awareness among Individual Financial Agents as most of the

business done by the company is with Individual Agents only.

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Research Problem:

Comparison between mutual fund and Unique Linked Insurance Plan and

potentiality of mutual fund and Unique Linked Insurance Plan

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Problem Identification

Proble Discovery Analysis &Selection

Formulationof Objective


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Research Objectives

With an outlook of the every marketing research, it has been conducted for specific

objective. It must have clear-cut problem and based on it the objectives must also

be clearly defined. Therefore, that research gets clear idea about their task.

Research objectives help the researcher to achieve his task easily. Also after the

completion of research project, the whole project can be evaluated based on the

research objective. Thus it is at most important to define the research objective.

MAIN OBJECTIVE

To study the comparison of mutual fund and unit Linked Plan products of Bajaj

Capital.

SUB OBJECTIVES

To know the investor consider the expenses before investment in UNIT

LINKED PLAN and mutual fund

To know about the how much different companies charged the expenses in

mutual fund and UNIT LINKED PLAN

To identify investment time frame

To know about the how much different companies charged the expenses in

mutual fund and UNIT LINKED PLAN

To know the investor perception toward the UNIT LINKED PLAN and mutual

fund To know the investor tendency towards the risk (to get the information

about risk avers investors and risk taker customer )

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Research Methodology

Research Design

The research design acts as intermediary between research objective and actual

research done. The research design tells how data will be collected and from

where it will be collected. Also clarification is made on the analysis and

interpretation of data.

The research design in the project is exploratory design. The data are analyzedand based on the data suggestions are given.

Sources of Data

Data has to be collected from the right source so as to serve the purpose of the

research. Data are collected as per the requirement of the research project. There

are two main sources of data i.e.

Primary source

Secondary source

The primary source means the data are collected for the first time directly from the

sample or population as per the requirement. The secondary source is the source

already collected by other researcher, information available from newspaper,

magazines, journals, etc.

The source of data for project is primary source. The data is collected for the first

time to study the comparison of mutual fund and the Unique Linked Insurance Plan

of the Bajaj Capital.

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Sampling Design

It is not possible to study the whole population every time in a research project.

The study of whole population requires lot time and money. So most of the

research is done by choosing samples from the population. Sample surveyinvolves less cost and can give accurate results if sampling plan is designed

properly.

The Sampling Design consists of following-:

Sampling Unit

Sampling Size

Sampling Method

Sampling unit. Investors of JAMNAGAR city.

Sample size I have taken sample size 100 due to time constraints.

Sampling method Random sample judgment

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Data Collection Method

Data collection is a critical part of whole research project. It data are not collected

properly then the whole project would fail to give accurate results and will not servethe purpose of the study. So proper method has to be used to collect the data

systematically. The various methods of data collection are as follows-:

Observation Method

Survey Method

In Observation Method the units under study are observed and the behaviors ofthem are noted down under various conditions. This method gives very accurate

results but requires a very skillful observer.

The other method is the survey method where researcher directly approaches the

respondents and asks their view on the unit under study. The survey method

consists of following sub-methods-:

Interview Method

Questionnaire Method

For the research purpose questionnaire method was used where various

questions relating to comparison of mutual fund and Unique Linked Insurance

Plan were asked.

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Questionnaire Plan

Following were the points considered while designing the questionnaire-:

Initial 3-4 questions were qualifying and warm-up questions.

The question relating comparison was specific questions.

Both types of question i.e. open-ended and close-ended questions were

asked to know about the perception towards services provided by Bajaj

Capital.

At last the demographic details were collected which are useful to describethe person who has been studied.

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Data Analysis And Interpretation

In the study the data are analyzed using the percentage method. Percentage

method is selected because the data thus analyzed will be easier to interpret in

accordance with the objectives of the research. Wherever needed the graphs are

drawn so that data interpretation becomes easier and one can understand it easily.

For my research I have taken both primary and secondary data lets first see the

secondary data.

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Section -1: Secondary Data onComparative Analysis M.F V/S

UNIT LINKED PLANICICI PRUDENTIAL MUTUAL FUND

Parameter Mutual fund (equity plan )Growth plan

UNIT LINKED PLANplanLife time -1

One time expenses

Entry loadExit load

Nil


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and recurring expenses of ICICI mutual fund 2.5% it varies from categoryinvested

the total annual recurring expenses was 1.5% where is the total annualcharge of LIFE time plan is 2.25%

HDFC MUTUAL FUND

Parameter Mutual fund(equity plan )Long termadvantagefund

UNIT LINKED PLAN planOf insurance

One timeexpensesEntry load

Exit load

nil

5crors =nil

Premium allocation charges

1

st

year 27%2ed year 27%3rd year 1.00%

RecurringexpensesEstimatedrecurringexpenses

1st Rs100crores=2.50next Rs300crors=2.25

next Rs 300crors =2.00balance =1.75

Fund management charges 0.80% perannum of the funds valueAdministration charges Rs 15 per monthRisk benefit charges: as per the ageSwitching charges =0Surrender charges =before 3years of

regular premium have paid, we will makea charges 25% of outstanding premiums

Actual recurringexpenses for theprevious financialyear

Total annualrecurringexpenses=2.50% P.A

Approximate charges 27.80%

TABLE-2

Interpretation:-

In HDFC the one time expenditure is only 2.25% as exit load where is in

UNIT LINKED PLAN plan the premium allocation charge 27% charge in 1st

and year and same charge in second year and 1% in third year

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Recurring expenses is approximately 2.25% in HDFC mutual fund plan and

recurring expenses of UNIT LINKED PLAN endowment plan is Fund

management charges 0.80% per annum of the funds value Administration

charges Rs 15 per month

Risk benefit charges: as per the age Switching charges =0.Surrender charges

=before 3years of regular premium have paid, we will make a charges 25% of

outstanding premiums

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KOTAK MUTUAL FUND

Parameter Mutual fund

(equity plan)Opportunity

UNIT LINKED PLAN plan

Of insurance(Easy growth plan)One timeexpensesEntry loadExit load

1.00%nil

Entry load =2.5%Underwriting chargesAge charge as % of S.A0-35 0.2036-45 0.3046-59 0.4060+ 0.60

buy and sell ( entry exit )gilt fund 0.10%floting rate fund 0.22%bind fund 0.22balance fund 0.50growth fund 0.58aggressive growth fund 0.70surrender charges not more then 5%

RecurringexpensesEstimated

recurringexpenses

1st Rs 100crores

=2.50next Rs 300crors=2.25next Rs 300 crors=2.00balance =1.75

Administration charges 2.5%

Fund management chargesGilt fund 1.0%Floting rate fund 1.2%Bond fund 1.2%Balance fund 1.3%Growth fund 1.5%Aggressive growth fund 1.6%

Actualrecurringexpenses

for thepreviousfinancialyear

Total annualrecurringexpenses =2.25%

Approximate charges 18.00%

TABLE-3

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Interpretation:-

in kotak mutual fund one time expenses of entry load is 1% and exit load Is

nil and in the KOTAK easy growth UNIT LINKED PLAN plan charges are

Entry load=2.5%,

Underwriting charges

Age charge as % of S.A

0-35 0.2036-45 0.30

46-59 0.40

60+ 0.60

buy and sell ( entry exit ) gilt fund 0.10% floating rate fund 0.22% bind fund

0.22 balance fund 0.50 growth fund 0.58 aggressive growth fund 0.70

surrender charges not more then 5%

and recurring charges of KOTAK mutual fund approximately Is 2.25% and

recurring expenses of easy growth plan UNIT LINKED PLAN plan is

Administration charges 2.5%

Fund management charges Gilt fund 1.0% Floating rate fund 1.2% Bond

fund 1.2%

Balance fund 1.3% Growth fund 1.5% Aggressive growth fund 1.6%

so here total annual recurring expenses is 2.25%in M.F where is imn esy

growth plan is approximately 18.00%

JVIMS-JAMNAGAR 69


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SBI MUTUAL FUND

Mutual fund(equity plan )Magnum equityfund

UNIT LINKED PLAN planOf insurance (horizon plan)

One timeexpensesEntry load

Exit load

5crores =nilnil

Entry fees

regular premium st year -15%

2ed &3rd -10%

4th &after -5%

top up charge -1%surrender fees

year 2:10%year 3: 50%year 4th onwards: 1%

withdrawal fee1st 2withdrawais in policy year are free andafter 1%

RecurringexpensesEstimated

recurring expenses

1st 100 cores=

2.50%next Rs300crors=2.25%next Rs300crors=2.00%balance Rs=1.75%

Mortality charges :no monthly bases on fund

value %Administration charges : rs 70per monthFund mgt charge*equity fund -1.5%*bond fund -1.0%*money market fund -0.25

Actual recurringexpenses for the

previous financialyear

Total annualrecurring

expenses=2.08%

Approximate expenses 18.75

TABLE-4

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Interpretation:-

In SBI mutual fund exit load is nil and entry load Is 2.25 where is in SBIhorizon plan the total one time expenses is Entry fees

regular premium allocation charges st year -15% 2ed &3rd -10% 4th &after

-5% top up charge -1%

Surrender fees is 2ed year 10% 3rd year 50% and 4th year onwards: 1%

Withdrawal fee is 1st 2withdrawais in policy year are free and after 1%

And annual recurring charges of SBI mutual fund is 2.5% varies from

category to category

And total annual expenses of SBI horizon plan is

Mortality charges: No monthly bases on fund value %, Administration

charges: rs 70per month Fund mgt charge,*equity fund -1.5%,*bond fund

-1.0%, and *money market fund -0.25

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Section -2: Primary data onComparative Analysis M.F V/SUNIT LINKED PLAN

PREFERENCE FOR INVESTMENT

Products (%)of Respondents

Mutual Fund 60Unique Linked Insurance Plan 40

total 100

Interpretation: The above chart indicates that about 60% of the Respondents in

JAMNAGAR prefer to invest in mutual fund and 40% prefer to invest in Unit Linked

Plan. This shows that market potential for mutual fund is sound in JAMNAGAR.

JVIMS-JAMNAGAR 72

products (%)

Mutual

Fund, 59,

60%

ULIPs, 39,

40%

Mutual Fund ULIPs


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REASONS FOR INVEST IN MUTUAL FUNDS.

reasons for invest in mutual fund

No. ofRespondents

Percentage(%)

diversification 7 18liquidity 5 15Tax benefits 8 13Professional fund management 14 20

High returns 10 14wide choice of schemes 16 20

total 60 100

JVIMS-JAMNAGAR 73

resones for invest in mutual funds (%)

18%

15%

13%20%

14%

20%

diversification liquidity

Tax banifits Professional fund management

High returns wide choice of schemes


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Interpretation:

Research shows that most of the investors are investing in mutual fund for getting

benefits of the professional fund management wide choice of the schemes and

diversification. Others are to gate the other benefits of the mutual fund but they are

comparatively low in size.

REASONS FOR INVEST IN UNIQUE LINKEDINSURANCE PLAN

JVIMS-JAMNAGAR 74

Reasons for invest in UniqueLinked Insurance Plan

No. ofRespondents

Percentage(%)

7Tax benefit 5 30wealth creation 8 20Long term gain 14 10Children's education 10 15Retirement plan 16 25

Total 60 100


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Interpretation:

Here in Unique Linked Insurance Plan the majority of the investors are investing to

take the tax benefits and retirement plan while others are investing with the interest

of wealth creation, long term gain and children education plan.

MUTUAL FUND SCHEMES

JVIMS-JAMNAGAR 75

Mutual fund schemes (%)

Equity 35

Debt 20

Balance 25

Other 20

Total 100


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Interpretation:

As per the results of my survey it sows that more No. of the investors are risk

takers because more No. of the investors are wants to invest in equity skims as

they wants high growth and 25% of the investors wants their funds balance so that

they can get the market benefits as well as safety in their investment. While 20% of

the investors

wonts to invest their money in debts and same No. of the investors are interested

to invest in other schemes.

JVIMS-JAMNAGAR 76

Mutual fund schemes

(%)

35%

20%25%

20%

Equity Debt Balance Other


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UNIQUE LINKED INSURANCE PLAN SCHEMES

JVIMS-JAMNAGAR 77

Unique Linked Insurance

Plan schemes (%)Endowment plan 29Term Insurance plan 17Pension plan 37Other plan 17Total 100


78/103

Interpretation:

As per the results come from the survey under taken for the Unique Linked

Insurance Plan products is most of the investors are investing in pension plan i.e.

37% and another highest no. of the investors are interested in endowment plans.

Here for the term insurance plan is also having the considerable investors i.e. 17

and almost same no. of the investors are interested in the other plans of the

Unique Linked Insurance Plan product.

CLIENTS CONSIDERATION OF MUTUAL FUNDEXPANSES

1. One time expanses.

JVIMS-JAMNAGAR 78

one time expanses (%)

entry load 60exit load 40

Total 100

ULIPs schemes

(%)

29%

17%37%

17%

Endowment plan Term Insurance plan Pension plan Other plan


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Interpretation:

As per the results of the survey almost 60% of the investors are consider entry

load at the time of their investment and remaining 40% of the investors are

considering exit load at the time of their investment in the mutual fund.

2. Recurring expanses

JVIMS-JAMNAGAR 79

recurring expanses (%)

fund distribution charges 39Admin. Charges 35

ad. & printing 26 26

one time expenses (%)

entry load

60%

exit load

40%

entry load

exit load


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Interpretation:

As per the survey majority of the investors i.e. 39% are consider fund distribution

charges and 35% of the investors are consider the admin. Charges while 26% of

the investors are interested in the Ad. $ Printing charges

CLIENTS CONSIDERATION OF Unique LinkedInsurance Plan EXPANSES

1. One time fees.

JVIMS-JAMNAGAR 80

recurring expanses

(%)

39%

35%

26%

fund distribution charges Admin. Charges ad. & printing 26


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Interpretation:

As per the results of my survey it is found out that in Unique Linked Insurance Plan

also entry load is taken more into consideration i.e. 60% and then exit load i.e.

40% as one time expanses.

JVIMS-JAMNAGAR 81

one time expenses (%)entry fees 60

exit fees 40Total 100

one time expenses (%)

entry fees

60%

exit fees

40%

entry fees exit fees


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2. Recurring expanses

Interpretation:

As per the survey most of the clients are considering admin. Charges and the

switching charge most i.e. 20% and then they consider monitory charges and top

up charges i.e. 18%. And 15% of the customers are considering Risk benefit while

JVIMS-JAMNAGAR 82

Recurring expenses (%)

Monetary charges 18Admin. Charges 20Fund Mgmt. charges 9Top Up charges 18Risk benefit charges 15Switching charges 20

total 100

(%)

18%

20%

9%18%

15%

20%

Monetary charges Admin. Charges Fumd Mgmt. charges

Top Up charges Risk benif it charges Swi tching charges


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AFTER SALES SERVICE OF BAJAJ CAPITAL

After Sales Service of Bajaj Capital Excellent Good Average Poor

Technical Support 47 40 12 1

Response to Complaints 42 29 23 6

Reply to Complaint 45 32 13 10

Knowledge &Skill of Service Provider 48 25 20 7

Technical Document 49 26 18 7

Interpretation:

As per the survey, I come to know that most of the people are satisfied when they

have quire and the staff of Bajaj Capital has solved it easily with warm and kindly

response. And at Bajaj Capital Product and information availability is Excellent and

here customer can easily get commercial and technical document and they are

much more satisfied with the visit of sales person to their home.

JVIMS-JAMNAGAR 83

4 43 8

2 1

5 0

6 0


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PARAMETERS OF BAJAJ CAPITAL

Parameters of Bajaj Capital Excellent Good Average Poor

Response to Inquiry 44 33 21 2

Product Information Availability 47 38 12 3Visit Frequency by sales person toyour home 32 25 28 15

Commercial Document 48 27 23 2

Technical Document 49 27 22 2

Interpretation:

As per my research the After Sales service of Bajaj Capital is very good. All people

are satisfied with the advice provided by the staff of Bajaj Capital which would very

benefit for them for increase in financial term.

JVIMS-JAMNAGAR 84

5 06 0


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Findings

Following are the findings of the research study on Comparison between mutualfund and Unique Linked Insurance Plan and potentiality of Mutual fund and UniqueLinked Insurance Plan:-

In JAMNAGAR almost 61% of the investors are investing in mutual fund and

remaining 39% of investors are investing in Unique Linked Insurance Plan.

The main reason for invest in mutual fund are professional fund

management and wide choice of schemes.

The major reason for investing in Unique Linked Insurance Plan is to get the

tax benefit and so almost 30% of the Unique Linked Insurance Plans

investors are investing in it.

35% of the investors are investing in mutual fund in equity schemes while in

Unique Linked Insurance Plan 37% of the investors are investing in pension

plan.

As per the result of my survey it is found out that almost 90% of the existing

customers of the Bajaj Capital at JAMNAGAR are satisfied by the after

sales services of the company.

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Limitations of the Study

Following are the limitations of the research study on Comparison betweenmutual fund and Unique Linked Insurance Plan and potentiality of Mutual fund andUnique Linked Insurance Plan:-

The project was time bound, so the research was limited.

The survey was done in JAMNAGAR city only, so it cannot be generalized.

Due to limitation of time and cost constraints a sample size of only 100

respondents was chosen.

The data collection method was questionnaire and so the bias of the

respondents is present in giving the response.

Data Analysis and Interpretation done may not be that strong due to small

sample and random sampling method.

The findings do not represent the correct picture of Bajaj Capital in Gujarat.

The picture may be quite different from what is found in this report in other

state of the country.

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Conclusion

To conclude the analysis of the survey, it is found that awareness of the Unique

Linked Insurance Plan products in JAMNAGAR is very low in. The product may

be popular in other parts of the country.

Bajaj capital is doing good marketing campaign for the products but still it is

require more strong campaign especially for the Unique Linked Insurance Plan

product

Above all the most interesting conclusion drawn from survey is that the

investors of the JAMNAGAR are traditional so they are investing more of in

mutual fund so Unique Linked Insurance Plan products are not that popular.

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Suggestions

Section -1 comparative analysis

ICICI

Recommendations

ICICI M.F should emphasis the benefits of lower one time expenses in M.Fcompared to life time ULIP plan in the marketing efforts

ICICI M.F should also emphasis the lower annual recurring expensescompared to life time annual expenditure in the marketing efforts

HDFC

Recommendations

HDFC M.F should emphasis the benefits of lower one time expenses in M.Fcompared to ULIP endowment plan in the marketing efforts

The one time expense of HDFC endowment ULIP plan is too high comparedto other company so company should minimized this expense andequalized with other company charges

Company should have to minimized its policy surrender charges

KOTAK

Recommendation s

The KOTAK M.F should also emphasis the lower annual recurring expensescompared to easy growth ULIP plan annual expenditure in the marketingefforts

The company should advertise for their ULIP products for awareness

The one time expenses of ULIP paln is high compared with mutual fundplan so the company should minimize their entry load

the company should minimize their total annual recurring charge of easy

growth plan ULIP planSBI

Recommendation

Company should minimize its recurring expenses in mutual fund

Company should remove the withdrawal charges from the horizon plan ofULIP or either they should minimized their charges

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Section -2 research study

There is less awareness of the UNIT LINKED PLAN in JAMNAGAR so more

awareness amongst the investor should be increase.

The UNIT LIN

Bajaj Capital Ltd

Documents

Transcript of Bajaj Capital Ltd