TABLE OF CONTENTS

Serial No. Contents Page No.

1. Certificate

2. Acknowledgement

3. Company Profile

Vision

Incorporation of company

Corporate structure

Capital structure

Strategy

Corporate governance

Board of directors

4. Objective of the study

5. Introduction to the study

a. Investor and Investment

b. Mutual funds

c. Insurance

6. Literature Review

7. Research Methodology

a. Sampling & Sample Design

b. Analytical Tools

c. Data Collection

d. Limitations of the study

8. Result & Discussions/Findings

9. Recommendation

10. Executive summary

11. Bibliography

12. Annexure

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Acknowledgement

Preservation, inspiration and motivation have always played a key role in the

success of any venture. In the present world of cutthroat competition project

is likely a bridge between theoretical and practical working, willingly I have

prepared this particular project.

First of all, I would like to thank the supreme power, the almighty

God who is obviously the one who has always directed me to work on the

right path of my life. With this grace this project could become a reality.

I feel highly delighted with the way my dissertation report on topic

“Investment Pattern of Investor’s in Mutual Funds & Life Insurance”

has been completed.

Any accomplishment requires the efforts of many people and this

work is not different. Firstly, I would like to extend my sincere thanks to

RELIGARE SECURITIES for co-operation and providing me good

environment to work on.

Finally, I would like to thanks all the branch employees’,

respondents and other people whom directly or indirectly help me

completing the project.

(P.SANTOSH KUMAR)

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COMPANY PROFILE

RELIGARE SECURITIES LTD

Religare Enterprises Limited (REL) is a global financial services

group with a presence across Asia, Africa, Middle East, Europe and the

Americas. In India, REL’s largest market, the group offers a wide array of

products and services ranging from insurance, asset management, broking

and lending solutions to investment banking and wealth management. The

group has also pioneered the concept of investments in alternative asset

classes such as arts and films. With 10,000 plus employees across multiple

geographies, REL serves over a million clients, including corporates and

institutions, high net worth families and individuals, and retail investors.

REL is part of a family of companies that fall under the broader Religare

brand, which includes other global businesses such as diagnostics, aviation

and travel, wellness retail, and IT products and solutions.

Vision & Mission

Vision - To build Religare as a globally trusted brand in the financial services domain.

Mission - Providing complete financial care driven by the core values of diligence and transparency.

Brand Essence - Core brand essence is Diligence and Religare is driven by ethical and dynamic processes for wealth creation.

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Religare Enterprises Limited

Religare Securities Limited

Equity Broking

Online Investment Portal

Portfolio Management Services

Depository Services

Religare Commodities Limited

Commodity Broking

Religare Realty Limited

In house Real Estate Management Company

Religare Capital Markets Limited

Corporate Broking

Institutional Broking

Derivatives Sales

Corporate Finance

Religare Finvest Limited

Lending and Distribution business

Religare Insurance Broking Limited

Life Insurance

General Insurance

Reinsurance

Religare Arts Initiative Limited

Business of Art

Gallery launched - arts-i

Religare Venture Capital Limited

Private Equity and Investment Manager

Religare Asset Management*

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OUR BRAND IDENTITY

Name

Religare is a Latin word that translates as 'to Bind Together'. This name has been chosen to reflect the integrated nature of the financial services the company offers.

Symbol

The Religare name is paired with the symbol of a four-leaf clover. Traditionally, it is considered good fortune to find a four-leaf clover as there is only one four-leaf clover for every 10,000 three-leaf clovers found.

For us, each leaf of the clover has a special meaning. It is a symbol of Hope. Trust. Care. Good Fortune.

For the world, it is the symbol of Religare.

The first leaf of the clover represents Hope. The aspirations to succeed. The dream of becoming. Of new possibilities. It is the beginning of every step and the foundation on which a person reaches for the stars.

The second leaf of the clover represents Trust. The ability to place one’s own faith in another. To have a relationship as partners in a team. To accomplish a given goal with the balance that brings satisfaction to all, not in the binding, but in the bond that is built.

The third leaf of the clover represents Care. The secret ingredient that is the cement in every relationship. The truth of feeling that underlines sincerity and the triumph of diligence in every aspect. From it springs true warmth of service and the ability to adapt to evolving environments with consideration to all.

The fourth and final leaf of the clover represents Good Fortune. Signifying that rare ability to meld opportunity and planning with circumstance to generate those often looked for remunerative moments of success.

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Hope. Trust. Care. Good Fortune. All elements perfectly combine in the emblematic and rare, four-leaf clover to visually symbolize the values that bind together and form the core of the Religare vision.

Accent usage

The diacritical tilde mark (~) over the letter A in the Religare typeface indicates a palatal emphasis sound of the letter A.

PRODUCTS & SERVICES OF Religare SECURITIES LTD

Equity:

Race- Pro, you can place online trades for virtually any stock listed on NSE

& BSE. Race-pro offers plenty of powerful ways to place stock orders ...

along with the trading tools and services that help you move quickly and

conveniently. Ways to trade stock

Delivery based Trading: Place delivery based orders for all stocks listed on

NSE & BSE

Intra-day Trading: Execute Margin Orders up to 3 to 4 times your

available funds. The same is available for select group of stocks listed on

NSE & BSE.

BTST: customers should sell shares before they receive the same in their

Demat account. They can avail of this facility 1st and 2nd day after the buy

order date.

Derivative

With a Derivative-approved Use trade account, you can pursue a wide

range of Futures & Options trading strategies with speed and ease. The

company delivers the support, information and structure

Mutual.Fund

At Use trade, we offer access to more than 1000 mutual fund schemes from

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leading fund families. These funds provide broad diversification and cover a

range of investment objectives, philosophies, asset classes and risk

exposures. Trades may be placed via the Internet, Interactive Voice

Response (IVR) phone system or with a broker.

IPO

IPO or Initial Public Offer presents excellent opportunities for gaining high

returns on your investments in a relatively short period of time. We have

made investing in IPO’s hassle free. All that is required is “Buying

POWER” and rest is at the click of a button. No paperwork no queues. Get

information on IPO news, Forthcoming IPO’s and a lot more on

Usectrade.com

Commodities

Metals, energies, grains and livestock — whatever you wish to trade, you'll

find it on our commodity trading system. Plus, you'll get a comprehensive

suite of educational, analytical, and execution tools that makes trading

commodities easy.

Insurance

Use trade in association with Birla Sun life brings you a secure insurance

option without the hassles and worries of a conservative insurance plan.

With least paperwork, you get the dual benefit of a risk cover and savings.

What's more, we shall send you regular reminders about your premium

payments due.

Bonds

Fixed income securities can help reduce your risk within an investment

portfolio while providing a steady stream of income over time. Currently

you can choose to invest online in GOI Bonds. If you are looking to

diversify your portfolio, possibly improve your tax efficiency and/or

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reducing your risk exposure, you may want to consider making fixed income

securities part of your personal investment strateg

ORGANIZATIONAL STRUCTURE OFON-LINE SHARE TRADING,

9

(Vice President) Head E-broking

National Sales Operations Head Service Head Site development Commissions and salaries

R.M.C

S.M

EXECUTIVES

Competitors

KOTAK SECURITIES

ANGEL BROKING

INDIABULLS

KARVY

INDIAINFOLINE

ICICI BROKERAGE

MOTILAL OSWAL

HDFC

SHARE KHAN

IDBI PAISA BUILDER

ANAGRAM

ANAND RATHI

CUSTOMERS

· An Individual Person

Partnership Firms

Proprietorship Firms

Companies

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Public limited companies

Analysis of the Company

Strengths:

Company has a brand image in the market

Providing better services to the customers.

Charges offered by the company are less compared to other stock broking firms.

Team of talented and committed professionals available to improve company’sperformance.

Weakness:

Competition from cheap imports.

Not available for rural area customers.

Opportunities:

Securities will provide tremendous scope for diversification and growth.

Opportunity to support securities operations by supplying products from India.

By proving better services helps to acquire new more number of customers.

Threats :

Constant pressure to be cost competitive to meet customer expectations.

Relentless pressure to maintain profitability due to rising input/raw material prices.

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Heavy competition from other stock broking companies.

OBJECTIVE OF THE STUDY

The main objective of the study is to find out the investment pattern of the investors in Mutual fund and Life insurance. To determine what factors influence them while they choose a particular investment ,a particular company and in which particular scheme they prefer to invest and to find out whether they are satisfied with their investment decision or not

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INTRODUCTION TO THE STUDY

Investor

An investor is any party that makes an Investment.

However, the term has taken on a specific meaning in finance to describe the

particular types of people and companies that regularly purchase equity or

debt securities for financial gain in exchange for funding an expanding

company. Less frequently the term is applied to parties who purchase real

estate, currency, commodity derivatives, personal property, or other assets.

The term implies that a party purchases and holds assets in hopes of

achieving capital gain, not as a profession or for short-term income.

Types of investors

Individual investors (including trusts on behalf of individuals, and

umbrella companies formed for two or more to pool investment funds)

Collectors of art, antiques, and other things of value

Angel investors, either individually or in groups

Venture capital funds, which serve as investment collectives on behalf

of individuals, companies, pension plans, insurance reserves, or other

funds.

Investment banks.

Businesses that make investments, either directly or via a captive fund

Investment trusts, including real estate investment trusts

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Mutual funds, hedge funds, and other funds, ownership of which may

or may not be publicly traded

Investment

Investment or investing is a term with several closely-related meanings in

business management, finance and economics, related to saving or deferring

consumption. An asset is usually purchased, or equivalently a deposit is

made in a bank, in hopes of getting a future return or interest from it.

Types of investment

The term "investment" is used differently in economics and in finance.

Economists refer to a real investment (such as a machine or a house), while

financial economists refer to a financial asset, such as money that is put into

a bank or the market, which may then be used to buy a real asset.

Business Management

The investment decision (also known as capital budgeting) is one of the

fundamental decisions of business management: managers determine the

assets that the business enterprise obtains. These assets may be physical

(such as buildings or machinery), intangible (such as patents, software,

goodwill), or financial (see below). The manager must assess whether the

net present value of the investment to the enterprise is positive; the net

present value is calculated using the enterprise's marginal cost of capital.

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Economics

In economics, investment is the production per unit time of goods, which are

not consumed but are to be used for future production. Examples include

tangibles (such as building a railroad or factory) and intangibles (such as a

year of schooling or on-the-job training). In measures of national income

and output, gross investment I is also a component of Gross domestic

product (GDP), given in the formula GDP = C + I + G + NX. I is divided

into non-residential investment (such as factories) and residential investment

(new houses). "Net" investment deducts depreciation from gross investment.

It is the value of the net increase in the capital stock per year.

Finance

In finance, investment is buying securities or other monetary or paper

(financial) assets in the money markets or capital markets, or in fairly liquid

real assets, such as gold, real estate, or collectibles. Valuation is the method

for assessing whether a potential investment is worth its price.

Personal Finance

Within personal finance, money used to purchase shares, put in a collective

investment scheme or used to buy any asset where there is an element of

capital risk is deemed an investment. Saving within personal finance refers

to money put aside, normally on a regular basis. This distinction is

important, as investment risk can cause a capital loss when an investment is

realized; unlike saving(s) where the more limited risk is cash devaluing due

to inflation.

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In many instances the terms saving and investment are used interchangeably,

which confuses this distinction. For example many deposit accounts are

labeled as investment accounts by banks for marketing purposes. Whether an

asset is a saving(s) or an investment depends on where the money is

invested: if it is cash then it is savings, if its value can fluctuate then it is

investment.

RealEestate

In real estate, investment is money used to purchase property for the sole

purpose of holding or leasing for income and where there is an element of

capital risk. Unlike other economic or financial investment, real estate is

purchased.

Broad of speaking, a person can make use of his income in three alto

natives. They are saving, investment and expenditure. If he saves more then

he will have to reduce on his expenses and vice versa. To meet the current

and future financial requirement of the person, a right combination of these

is essential. These few lines explain the importance of a right combination of

the three activities. This is what we mean by investor investment pattern &

thus comes the need of awareness initiatives for this concept.

An Investor has many objects for doing the investment some are doing

investment for security purpose some are doing for high return purpose and

some for tax benefits. Same income and age group people follow different

pattern of investment and to understand this pattern is very complex.

Researchers try to find out the investment pattern of Investor’s in Mutual

Fund & Life Insurance.

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Investment objective

The options for investing our savings are continually increasing, yet every

single investment vehicle can be easily categorized according to three

fundamental characteristics - safety, income and growth - which also

correspond to types of investor objectives. While it is possible for an

investor to have more than one of these objectives, the success of one must

come at the expense of others. Here we examine these three types of

objectives, the investments that are used to achieve them and the ways in

which investors can incorporate them in devising a strategy.

Safety

Perhaps there is truth to the axiom that there is no such thing as a completely

safe and secure investment. Yet we can get close to ultimate safety for our

investment funds through the purchase of government-issued securities in

stable economic systems, or through the purchase of the highest quality

corporate bonds issued by the economy's top companies. Such securities are

arguably the best means of preserving principal while receiving a specified

rate of return.

The safest investments are usually found in the money market and include

such securities as Treasury bills (T-bills), certificates of deposit, commercial

paper or bankers' acceptance slips; or in the fixed income (bond) market in

the form of municipal and other government bonds, and in corporate bonds.

The securities listed above are ordered according to the typical spectrum of

increasing risk and, in turn, increasing potential yield. To compensate for

their higher risk, corporate bonds return a greater yield than T-bills.

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Income

However, the safest investments are also the ones that are likely to have the

lowest rate of income return, or yield. Investors must inevitably sacrifice a

degree of safety if they want to increase their yields. This is the inverse

relationship between safety and yield: as yield increases, safety generally

goes down, and vice versa.

Most investors, even the most conservative-minded ones, want some level of

income generation in their portfolios, even if it's just to keep up with the

economy's rate of inflation. But maximizing income return can be an

overarching principle for a portfolio, especially for individuals who require a

fixed sum from their portfolio every month. A retired person who requires a

certain amount of money every month is well served by holding reasonably

safe assets that provide funds over and above other income-generating

assets, such as pension plans.

Growth Of Capital

This discussion has thus far been concerned only with safety and yield as

investing objectives, and has not considered the potential of other assets to

provide a rate of return from an increase in value, often referred to as a

capital gain. Capital gains are entirely different from yield in that they are

only realized when the security is sold for a price that is higher than the price

at which it was originally purchased. (Selling at a lower price is referred to

as a capital loss.) Therefore, investors seeking capital gains are likely not

those who need a fixed, ongoing source of investment returns from their

portfolio, but rather those who seek the possibility of longer-term growth.

Growth of capital is most closely associated with the purchase of common

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stock, particularly growth securities, which offer low yields but considerable

opportunity for increase in value. For this reason, common stock generally

ranks among the most speculative of investments as their return depends on

what will happen in an unpredictable future. Blue-chip stocks, by contrast,

can potentially offer the best of all worlds by possessing reasonable safety,

modest income and potential for growth in capital generated by long-term

increases in corporate revenues and earnings as the company matures. Yet

rarely is any common stock able to provide the near-absolute safety and

Income-generation of government bonds.

Secondary Objectives

Tax Minimization

An investor may pursue certain investments in order to adopt tax

minimization as part of his or her investment strategy. A highly paid

executive, for example, may want to seek investments with favorable tax

treatment in order to lessen his or her overall income tax burden. Making

contributions to an IRA or other tax-sheltered retirement plan, such as a

401k, can be an effective tax minimization strategy.

Marketability Liquidity

Many of the investments we have discussed are reasonably illiquid, which

means they cannot be immediately sold and easily converted into cash.

Achieving a degree of liquidity, however, requires the sacrifice of a certain

level of income or potential for capital gains. Common stock is often

considered the most liquid of investments, since it can usually be sold within

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a day or two of the decision to sell. Bonds can also be fairly marketable, but

some bonds are highly illiquid, or non-tradable, possessing a fixed term.

Similarly, money market instruments may only be redeemable at the precise

date at which the fixed term ends. If an investor seeks liquidity, money

market assets and non-tradable bonds aren't likely to be held in his or her

portfolio.

In brief, choosing a single strategic objective and assigning weightings to

all other possible objectives is a process that depends on such factors as the

investor's temperament, his or her stage of life, marital status, family

situation, and so forth. Out of the multitude of possibilities out there, each

investor is sure to find an appropriate mix of investment opportunities. You

need only be concerned with spending the appropriate amount of time and

effort in finding, studying and deciding on the opportunities that match your

objectives.

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WHAT IS A MUTUAL FUND?

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

share a common financial goal. The money thus collected is then invested in

capital market instruments such as shares, debentures and other securities.

The income earned through these investments and the capital appreciations

realized are shared by its unit holders in proportion to the number of units

owned by them. Thus a Mutual Fund is the most suitable investment for the

common man as it offers an opportunity to invest in a diversified,

professionally managed basket of securities at a relatively low cost.

TYPES OF MUTUAL FUNDS

BY STRUCTURE

Open-Ended Schemes

Close-Ended Schemes

Interval Schemes

BY INVESTMENT OBJECTIVE

Growth Schemes

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Income Schemes

Balanced Schemes

Money Market Schemes

OTHER SCHEMES

Tax Saving Schemes

Special Schemes

Index Schemes

Sector Specific Schemes

Features that investors like in Mutual Fund

If mutual funds are emerging as the favorite investment vehicle,

it is because of the many advantages they have over other forms

and avenues of investing, particularly for the investor who has

limited resources available in terms of capital and ability to carry

out detailed research and market monitoring. The following are

the major advantages offered by mutual funds to all investors.

Portfolio diversification: Mutual Funds normally invest in

a well-diversified portfolio or securities. Each investor in a

fund is a part owner of all of the fund’s assets. This enables

him to hold a diversified investment portfolio even with a

small amount of investment that would otherwise require

big capital.

Professional management; Even if an investor has a big

amount of capital available to him, he lacks the

professional attitude that is generally present in the

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experienced fund manager who, ensures a much better

return than what an investor can manage on his own. Few

investors have the skills and resources of their own to

succeed in today’s fast moving, global and sophisticated

markets.

Reduction/ diversification of risk: An investor in a mutual

fund acquires a diversified portfolio, no matter how small

his investment. Diversification reduces the risk of loss, as

compared to investing directly in one or two shares or

debentures or other instruments. When an investor invests

directly, all the risk of potential loss is his own. A fund

investor also reduces his risk in another way. While

investing in the pool of funds with other investors any loss

on one or two securities is also shared with other investors.

This risk reduction is one of the most important benefits of

a collective investment vehicle like the mutual fund.

Reduction of transaction costs : What is true of risk is also

true of the transaction costs. A direct investor bears all the

costs of investing such as brokerage or custody of

securities. When going through a fund, he has the benefit of

economies of scale; the funds pay lesser costs because of

larger volumes, a benefit passed on to its investors.

Liquidity: Often, investors hold shares or bonds they

cannot directly, easily and quickly sell. Investment in a

mutual fund, on the other hand, is more liquid. An investor

can liquidate the investment by selling the units to the fund

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if open-end, or selling them in the market if the fund is

closed-end, and collect funds at the end of a period

specified by the mutual fund or the stock market.

Convenience and flexibility : Mutual fund management

companies offer many investor services that a direct market

investor cannot get. Investors can easily transfer their

holdings from one scheme to the other, get updated market

information

But roses have thorns as well…

While the benefits of investing through mutual funds far

outweigh the disadvantages, an investor and his advisor will do

well to be aware of a few shortcomings of using the mutual funds

as investment vehicles.

No Control over Costs : an investor in a mutual fund has

any control over the overall cost of investing. He pays

investment management fees as long as he remains with the

fund, albeit in return for the professional management and

research. Fees are usually payable as a percentage of the

value of his investments. Whether the fund value is rising

or declining. A mutual fund investor also pays fund

distribution costs, which he would not incur in direct

investing. However, this shortcoming only means that there

is a cost to obtain the benefits of mutual fund services.

However, this cost is often less than the cost of direct

investing by the investors.

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No Tailor-made Portfolios : Investors who invest on their

own can build their own portfolios of shares, bonds and

other securities. Investing through funds means he

delegates this decision to the fund managers. The very

high-net-worth individuals or large corporate investors may

find this to be a constraint in achieving their objectives.

However. Most mutual funds help investors overcome this

constraint by offering families of schemes-a large number

of different schemes – within the same fund. An investor

can choose from different investment plans and construct a

portfolio of his choice.

Poor Reach : Lack of deeper distribution networks and

channels is hurting the growth of the industry. This is an

area of concern for the MF industry, which has not been

able to penetrate deeper into the country and has been

limited to few metros.

Banks still dominate : The biggest hindrance to the growth

of the mutual fund industry lies in its inability to attract the

savings of the public, which constitutes the major source of

investment in the other developed countries. A large pool of

money in the savings in India is still with the state –run and

private banks.

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The structure and organization of Mutual Funds as per SEBI guidelines

is as follows:

(a) Sponsor

Sponsor is the company which sets up the Mutual Fund e.g. Kothari Pioneer

Mutual Fund have sponsor Pioneer Investment Management, Inc., USA and

the Investment Trust Of India Ltd. (ITI). The Investment Trust Of India

(Pvt.) Ltd. was established in 1946 and is one of the India well known

Financial Services Companies. To promote the Mutual Fund, the sponsor

has to meet the criteria laid down by SEBI. The criteria broadly deal with

sufficient experience, net worth, and past record in terms of fair dealing &

integrity. Those who qualify these criteria are permitted by SEBI to setup

Mutual Funds.

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(b) Asset Management Company (AMC)

AMC manages the funds of various Schemes: AMC employs a large number

of professional for investment and research. It plays a key role in the running

of a Mutual Fund and it operates under the supervision and guidance of the

trustee. For example, Kothari Pioneer AMC Ltd. has been appointed as the

investment manages Kothari Pioneer Mutual Fund and operates its various

schemes under the provisions of the investment Management Agreement

entered into with Kothari Pioneer Mutual Fund on July 29,1993. The AMC

can be a private or public limited company either listed or not. The AMC

may be a new or existing, should have a minimum 40 percent stake paid up

in the paid-up equity of the AMC to be set up the sponsor. The minimum net

worth of the AMC is stipulated at Rs. 5 crore. The Memorandum and

Articles Of Association of the AMC Company should have the approval of

SEBI. AMC is authorized to do business, if the following condition of SEBI

are fulfilled.

(1) AMC, which are already existing, should have a sound track record,

general reputation and fairness in all other business transactions.

(2) The directors of AMC should be persons of high repute and standing

having at least 10 years of professional experience in the relevant

fields such as portfolio management, investment analysis, and in

financial administrator.

(3) At least 50 percent of the Board of AMC should be independent

director not connected with sponsoring organization.

(4) The AMC should at all times have a minimum net worth of Rs. 5

crore.

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Except in the case of Bank sponsored AMC where the Prior concurrence of

RBI is required. SEBI may withdraw the authorization granted to any AMC,

if it is not serving in the interest of investors. The board of trustees, of a

Mutual Fund, will appoint another AMC or liquidate the Mutual Fund as

may be necessary with in there months of withdrawal.

(c) Trustee

The trustees are an important link in the working of a Mutual Fund. Trustees

are people with long experience and who have earned a name for themselves

for integrity and excellence in their fields. It is the responsibility of the

trustees to see that AMC always act in the best interest in the investors. Thus

they carry the crucial responsibility of safe guarding the interest of the

investors. They do this by constant monitoring of the operations of the

scheme. AMC supplies all information demanded by trustees on a regular

basis i.e. quarterly.

Establishing a separate trust company should carry out trusteeship functions.

At least 50 percent of the Board of Trustee shall be independent and should

not have any affiliation with the sponsoring institution or any of its

subsidiaries. The trustees have to submit a six monthly report to the SEBI

and an annual report to the investors in the fund.

(d) Custodian

The SEBI while granting the authorization for setting up of a Mutual Fund,

would also approve the custodian as part of the package. The custodian

should be different from the AMC. The sponsor and trustee companies

cannot act as custodian. If the sponsor has a custodian division, it can act for

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other Mutual Fund not set up by the sponsor. The approval of any agency as

custodian would depend upon its track record, experience, and qualify of

service, computerization and other infrastructure facilities. The approval of

Mutual Fund involves the approval of sponsor, AMC, trustee and custodian

all together, who are responsible for the management of fund. Each scheme

floated by Mutual Fund should have prior registration with SEBI. The AMC

should prepare a proportion/letter of offer for each to decide the proposal

within 30 days of its receipt, filing within SEBI before inviting public. SEBI

has to decide the proposal within 30 days of its receipt, failing which SEBI

clearance is presumed. Mutual Funds are allowed to start and operate both

open-ended and close-ended schemes.

History of the Indian Mutual Fund Industry

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank the. The history of mutual funds in India can be broadly divided into four distinct phases

First Phase – 1964-87Unit Trust of India (UTI) was established on 1963 by an Act of Parliament.

It was set up by the Reserve Bank of India and functioned under the

Regulatory and administrative control of the Reserve Bank of India. In 1978

UTI was de-linked from the RBI and the Industrial Development Bank of

India (IDBI) took over the regulatory and administrative control in place of

RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end

of 1988 UTI had Rs.6, 700 crores of assets under management

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Second Phase – 1987-1993 (Entry of Public Sector Funds)1987 marked the entry of non- UTI, public sector mutual funds set up by

public sector banks and Life Insurance Corporation of India (LIC) and

General Insurance Corporation of India (GIC). SBI Mutual Fund was the

first non- UTI Mutual Fund established in June 1987 followed by Canbank

Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian

Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda

Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while

GIC had set up its mutual fund in December 1990.

At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004 crores

Third Phase – 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian

mutual fund industry, giving the Indian investors a wider choice of fund

families. Also, 1993 was the year in which the first Mutual Fund

Regulations came into being, under which all mutual funds, except UTI were

to be registered and governed. The erstwhile Kothari Pioneer (now merged

with Franklin Templeton) was the first private sector mutual fund registered

in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry

now functions under the SEBI (Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign

mutual funds setting up funds in India and also the industry has witnessed

several mergers and acquisitions. As at the end of January 2003, there were

33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of

31

India with Rs.44,541 crores of assets under management was way ahead of

other mutual funds.

Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963

UTI was bifurcated into two separate entities. One is the Specified

Undertaking of the Unit Trust of India with assets under management of

Rs.29,835 crores as at the end of January 2003, representing broadly, the

assets of US 64 scheme, assured return and certain other schemes. The

Specified Undertaking of Unit Trust of India, functioning under an

administrator and under the rules framed by Government of India and does

not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and

LIC.

It is registered with SEBI and functions under the Mutual Fund Regulations.

With the bifurcation of the erstwhile UTI which had in March 2000 more

than Rs.76,000 crores of assets under management and with the setting up of

a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and

with recent mergers taking place among different private sector funds, the

mutual fund industry has entered its current phase of consolidation and

growth. As at the end of September, 2004, there were 29 funds, which

manage assets of Rs.153108 crores under 421 schemes.

32

The graph shows the growth of assets under management over the years

33

What is Insurance?

Insurance, in law and economics, is a form of risk management primarily

used to hedge against the risk of a contingent loss. Insurance is defined as

the equitable transfer of the risk of a potential loss, from one entity to

another, in exchange for a premium. Insurer, in economics, is the company

that sells the insurance. Insurance rate is a factor used to determine the

amount, called the premium, to be charged for a certain amount of

insurance coverage. Risk management, the practice of appraising and

controlling risk, has evolved as a discrete field of study and practice.

Principles of insurance

Commercially insurable risks typically share seven common characteristics.

1. A large number of homogeneous exposure units. The vast majority

of insurance policies are provided for individual members of very

large classes. Automobile insurance, for example, covered about 175

million automobiles in the United States in 2004. The existence of a

large number of homogeneous exposure units allows insurers to

benefit from the so-called “law of large numbers,” which in effect

states that as the number of exposure units increases, the actual results

are increasingly likely to become close to expected results. There are

exceptions to this criterion. Lloyds of London is famous for insuring

the life or health of actors, actresses and sports figures. Satellite

Launch insurance covers events that are infrequent. Large commercial

property policies may insure exceptional properties for which there

are no ‘homogeneous’ exposure units. Despite failing on this criterion,

many exposures like these are generally considered to be insurable.

34

2. Definite Loss. The event that gives rise to the loss that is subject to

insurance should, at least in principle, take place at a known time, in a

known place, and from a known cause. The classic example is death

of an insured on a life insurance policy. Fire, automobile accidents,

and worker injuries may all easily meet this criterion. Other types of

losses may only be definite in theory. Occupational disease, for

instance, may involve prolonged exposure to injurious conditions

where no specific time, place or cause is identifiable. Ideally, the time,

place and cause of a loss should be clear enough that a reasonable

person, with sufficient information, could objectively verify all three

elements.

3. Accidental Loss. The event that constitutes the trigger of a claim

should be fortuitous, or at least outside the control of the beneficiary

of the insurance. The loss should be ‘pure,’ in the sense that it results

from an event for which there is only the opportunity for cost. Events

that contain speculative elements, such as ordinary business risks, are

generally not considered insurable.

4. Large Loss. The size of the loss must be meaningful from the

perspective of the insured. Insurance premiums need to cover both the

expected cost of losses, plus the cost of issuing and administering the

policy, adjusting losses, and supplying the capital needed to

reasonably assure that the insurer will be able to pay claims. For small

losses these latter costs may be several times the size of the expected

cost of losses. There is little point in paying such costs unless the

protection offered has real value to a buyer.

35

5. Affordable Premium. If the likelihood of an insured event is so high,

or the cost of the event so large, that the resulting premium is large

relative to the amount of protection offered, it is not likely that anyone

will buy insurance, even if on offer. Further, as the accounting

profession formally recognizes in financial accounting standards (See

FAS 113 for example), the premium cannot be so large that there is

not a reasonable chance of a significant loss to the insurer. If there is

no such chance of loss, the transaction may have the form of

insurance, but not the substance.

6. Calculable Loss. There are two elements that must be at least

estimate able, if not formally calculable: the probability of loss, and

the attendant cost. Probability of loss is generally an empirical

exercise, while cost has more to do with the ability of a reasonable

person in possession of a copy of the insurance policy and a proof of

loss associated with a claim presented under that policy to make a

reasonably definite and objective evaluation of the amount of the loss

recoverable as a result of the claim.

7. Limited risk of catastrophically large losses. The essential risk is

often aggregation. If the same event can cause losses to numerous

policyholders of the same insurer, the ability of that insurer to issue

policies becomes constrained, not by factors surrounding the

individual characteristics of a given policyholder, but by the factors

surrounding the sum of all policyholders so exposed. Typically,

insurers prefer to limit their exposure to a loss from a single event to

some small portion of their capital base, on the order of 5%. Where

the loss can be aggregated, or an individual policy could produce

36

exceptionally large claims, the capital constraint will restrict an

insurers appetite for additional policyholders. The classic example is

earthquake insurance, where the ability of an underwriter to issue a

new policy depends on the number and size of the policies that it has

already underwritten. Wind insurance in hurricane zones, particularly

along coastlines, is another example of this phenomenon. In extreme

cases, the aggregation can affect the entire industry, since the

combined capital of insurers and reinsures can be small compared to

the needs of potential policyholders in areas exposed to aggregation

risk. In commercial fire insurance it is possible to find single

properties whose total exposed value is well in excess of any

individual insurer’s capital constraint. Such properties are generally

shared among several insurers, or are insured by a single insurer who

syndicates the risk into the reinsurance market.

Why Life Insurance?

You think twice before taking the plunge into buying insurance. Is buying

insurance a necessity now? Spending an 'extra' amount as premium at

regular intervals where you do not see immediate benefits does not seem a

necessity at the moment.

Well you could be wrong. Buying Insurance cannot be compared with

any other form of investment. Insurance gives you a life long benefit and the

returns will definitely come but only when you need it the most i.e. at the

right time. Besides buying insurance early in life is one of the wise decisions

you could take. Because the premium you would be paying would be

comparatively lower.

37

Insurance is not about how much more it can offer you when the stock

market is at its peak. It may not be an attractive investment option. But

weigh the pros and cons and consider how much more it offers at a small

price.

Most important of all it provides you with that unique sense of

security that no other form of investment provides. It gives you a sense of

financial support especially during that time of crisis irrespective of the

fluctuations in the stock market. Insurance provides for your career goals

right from your childhood years.

If the earning member of the family is no more your child's

educational needs will not suffer. In fact his higher education too will be

provided for. You need not spend sleepless nights thinking about how to

save for your child's marriage. Life Insurance will take care of that typical

once-in-a-life-time spending on marriages.

An accident or a disability may be devastating but an insurance policy

can be of utmost support for the family during such times too. Besides it

provides for additional benefits such as bonuses. You need not worry about

your retirement years. The rising prices, taxes, and your lifestyle will be

taken care of easily. And you can relax and spend your old age in comfort

and peace.

Life insurance today plays a major role in ones life at various stages.

Considering the benefits it offers one cannot but give a thought to buying an

insurance policy at the earliest.

38

Need for Life Insurance

The need for life insurance comes from the need to safeguard our family. If

you care for your family’s needs you will definitely consider insurance.

Today insurance has become even more important due to the disintegration

of the prevalent joint family system, a system in which a number of

generations co-existed in harmony, a system in which a sense of financial

security was always there as there were more earning members.

Times have changed and the nuclear family has emerged. Apart from other

pitfalls of a nuclear family, a high sense of insecurity is observed in it today

besides, the family has shrunk. Needs are increasing with time and

fulfillment of these needs is a big question mark.

Insurance provides a sense of security to the income earner as also to the

family. Buying insurance frees the individual from unnecessary financial

burden that can otherwise make him spend sleepless nights. The individual

has a sense of consolation that he has something to fall back on.

From the very beginning of your life, to your retirement age insurance can

take care of all your needs. Your child needs good education to mould him

into a good citizen. After his schooling he needs to go for higher studies, to

gain a professional edge over the others - a necessity in this age where

cutthroat competition is the rule. His career needs have to be fulfilled.

Six tips for investing in life insurance

1. Understand Why You Need It: - While most people may need life

insurance at some point in their life, don't buy a policy just because you

heard it was a good idea. Life insurance is designed to provide families with

39

financial security in the event of the death of a spouse or parent. Life

insurance protection can help pay for mortgages, a college education, help to

fund retirement, provide charitable bequests and of course is a key element

in estate planning. In short, if others depend on your income for support, you

should strongly consider life insurance. Even if you don't have any of these

needs immediately, you still may want to consider purchasing a small

"starter" policy, if you anticipate you will have them in the future. The

reason: the younger you are, the less expensive life insurance will be.

2. Determine the Amount of Coverage You Need: - The amount of money

your family or heirs will receive after your death is called a death benefit. To

determine the proper amount of life insurance an online calculator, like the

one available at this site, can be helpful. You can also get a ballpark figure

using any number of formulas. The easiest way is to simply take your annual

salary and multiply by 8. A more detailed method is to add up the monthly

expense your family will incur after your death. Remember to include the

one-time expenses at death and the ongoing expenses such as a mortgage or

school bills. Take the ongoing expenses and divide by .07.That indicates

you'll want a lump sum of money earning approximately 7% each year to

pay those ongoing expenses. Add to that amount any money you'll need to

cover one-time expenses and you'll have a rough estimate of the amount of

life insurance you need. As useful as calculators and rough estimates are,

there are some things they don't do.

They cannot provide you with any final answers. Calculators only allow you

to perform "hypothetically," recalculating and generating new results as you

make and input new assumptions. Using these tools and educating yourself

on the workings of life insurance and other financial products, however, can

40

help you feel more comfortable when discussing your needs with such

professionals as a New York Life agent.

3. Find the Right Type of Policy:-Once you've got an estimate of how

much insurance you'll need, it's time to think about the type of policy that

best fits your needs. Today life insurance comes in many varieties, but there

are four basic type’s term, whole life, universal life, and variable life. As a

first-time buyer, one will more than likely fit your needs.

.4. Look at the Quality of the Company: - An insurance policy is only as

good as the company that backs it. You want to know for certain that the

company that issues your policy will be around to service it and eventually

pay the death claim. To help you discern the strongest companies, there are

several ratings agencies that rate insurance companies on the quality of their

fiscal fitness, quality of investments, and overall financial soundness. A

credit rating represents an independent assessment of the insurer's ability to

pay its claims on time and meet all its other financial obligations, the bottom

line for any life insurance company.

5. Consult an Agent: - Agents provide an invaluable service. First, an agent

can help you factor in the other "human' elements into your insurance

equations to help you determine the right amount of insurance. The

relationship you develop with an agent can last a lifetime. Second, an agent

can help you update your coverage as your needs change. They can help you

guide you through a lifetime of financial decisions, giving you one less thing

to worry about.

6. Increase Your Vocabulary: - Any discussion of insurance will probably

include words such as cash value, premium, dividends, death benefit and

41

more. To discuss life insurance knowledgeably, it will help to understand the

terms. Below is a brief summary of some common terms. This site offers a

complete glossary of insurance terms.

42

Literature Review.

The literature review includes the academic books, journals, internet access,

magazines etc.

Business Statistics by “S.P Gupta &M.P. Gupta”- The

information regarding the statistical tools and their limitations

in different fields the research is given in this section. This

section explains why to use correlation and what are the

situations in which correlation can be used, and what does

correlation means.

Research Methodology by “C.R. Kothari” The information

regarding the basics of research and research methodology ,

what are the different types of research designs, what is

problem statement, what are the sources of data collection and

what are the methods of data collection is given in this section

Financial Management by “I.M. Pandey”- The information

regarding nature of financial management, portfolio

management, risk-return relationship,options,derivatives and

valuation of shares have been understood from this book.

WORK BOOK by “Association Of Mutual Funda In

India”-The information about the basic knowledge and

working of mutual funds in India is taken from this book.

43

RESEARCH METHODOLOGY

Research is a systematic and continues method of defining a problem,

collecting the facts and analyzing them, reaching conclusion forming

generalizations.

Research methodology is a way to systematically solve the problem. It may

be understood has a science of studying how research is done scientifically.

In it we study the various steps that all generally adopted by a researcher in

studying his research problem along with the logic behind them.

The scope of research methodology is wider than that of research method.

Thus when we talk of research methodology we not only talk of research

methods but also consider the logic behind the method we use in the context

of our research study and explain why we are using a particular method.

So we should consider the following steps in research methodology:

Problem statement

Objective of study

Research design

Data collection

Sample design

Statistical tool

Limitation of study

44

PROBLEM STATEMENT

The research problems, in general refers to sum difficulty with a researcher

experience in the contest of either a particular a theoretical situation and

want to obtain a salutation for same, there are so many investment options

available for the investors, how they invest or choose a particular investment

option and what factor they consider more for investing or choosing a

particular investment option and also to find out are they satisfied with their

investment decision.

RESEARCH OBJECTIVE

To understand the investor pattern of investment

To find out the difficulties of investors while investing.

To find out that which is more popular among investor between Life

Insurance & Mutual Fund.

To find out that are investor satisfied with their investment decision or

not.

RESEARCH DESIGN

A research design is the arrangement of the conditions for the collections

and analysis of the data in a manner that aims to combine relevance to the

research purpose with economy in procedure. In fact, the research design is

the conceptual structure within which research is conducted; it constitutes

the blue print of the collection, measurement and analysis of the data. As

45

search design includes an outline of what the researcher will do from writing

the hypothesis and its operational implication to the final analysis of data. I

used descriptive research design in this project.

The research design focus on the following .

o What is the study about?

o Why is the study being made?

o Where will the study be carried out?

o What type of data is required?

o Where can be required data be found?

o What period of time will the study include?

o What will be sample design?

o What techniques of data collection will be used?

o How will the data be analyzed?

o In what style will the report be prepared?

DATA COLLECTION

The task of data collection is begins after a research problem has been

defined and research designed/ plan chalked out. Data collection is to gather

the data from the population. The data can be collected of two types:

Primary data

Secondary data

Primary data

The Primary data are those, which are collected afresh and for the first time,

and thus happened to be original in character.

46

Methods of collection of Primary data are as follows:

o Interview

o Questionnaire

Secondary data

The Secondary data are those which have already been collected by some

one else and which have already been passed through the statistical tool.

Methods of collection of Secondary data are Journals, Websites and books.

SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from a given

population. It refers to the technique or the procedure and the researcher

would adopt in selecting items of sample. Sample design may as well lay

down the number of items to be included in the sample i.e. the size of the

sample. Sample design is determined before data are collected.

Sapling area –Hyderabad

Sample Size –100

Sampling Technique - Non-Probability

47

STATISTICAL TOOL

Introduction

In our day-to-day life, we find many examples when a mutual relationship

exists between two variables i.e. with fall or rise in the value of one variable,

the fall or rise ay take place in the value of other variable. For example, price

of a commodity rises as the demand for the commodity goes up. Upto a

certain time-period, weight of a person increases with the increase in the

age. Similarly, the temperature rises with the rise in the sunlight. These facts

indicate that three is certainly some mutual relationship that exists between

the demand for a commodity and its price, the age of a person and his

weight, and the sunlight and temperature. The correlation refers to the

statistical technique used in measuring the closeness of the relationship

between the variables.

Definition of Correlation

Some important definitions of correlation are given below:

1. Correlation analysis deals with the association between two or ore

variables. “Simpson and Kafka”

2. If two or ore quantities vary in sympathy, so that movement in one

tend to be accompanied by corresponding movements in the other,

then they are said to be correlated. “Conner”

3. Correlation analysis attempts to determine the degree of relationship

between variables. “Ya-Lun-Chou”

48

Spearman’s Rank Correlation Method

This method of determining correlation was propounded by Prof. Spearman

in 1984. By this method correlation between qualitative data namely beauty,

honesty, intelligence etc, can be computed. Such types of variables can be

assigned ranks but their quantitative measurement is not possible. Thus, rank

correlation method is used in such cases. The following is the formula for

the computation of rank correlation coefficient:

R = 1 - 6∑D 2 or 1- 6∑D 2 N (N2-1) (N3-N)

Where R = Rank coefficient of correlation, D= Difference between two

ranks (R1-R2) N= Number of pair of observation.

The value of rank correlation always lies between –1 and +1.

This method can be studied in the following three different situations:

1. When ranks are given

2. When ranks are not given.

3. When equal or tied ranks.

49

What are the reasons for choosing a particular company for investing in life insurance and mutual funds?

Life Insurance

RankR1

Mutual Fund

Rank R2

(D=R1-R2) 2

Agent 7 3 12 3 0Brand name 37 1 33 1 0Track record 19 2 30 2 0

∑D2=0

R = 1 - 6∑D 2 or 1- 6∑D 2 N (N2-1) (N3-N)

1- 6.0 =1 (33-3)

Hence there is a complete agreement in the order of ranks and the ranks are

in same direction.

50

LIMITATIONS

In every research there are chances of errors and constraints. I have found

following limitations in my study.

Sample size, which I have taken, is very small, on the basis of which

efficient decision can’t be taken.

Respondents were biased in their responses because they were more in

favor of the brand they were using.

Co-operation from respondents, this was the major problem.

Most of the people were at their work. So they did not have enough

time to give all replies.

The population surveyed was not open to questions related to their

personal income i.e. either they fell hesitant in disclosing the facts

about their incomes or they were simply not interested.

The respondents were not in the favor to disclose their address and

contact number because they believed that they would be contacted

through telemarketing.

51

Results and Discussions/Findings

Q:Do you invest?

0

10

20

30

40

50

60

70

80

90

100

Yes No

Response

No

. o

f re

spo

nse

s

Q: If not, what is the reason for that?

0

1

2

3

4

5

6

7

8

Lack ofknowledge

Lack of interest Inadequate funds

Reasons

No

. o

f re

spo

nse

s

Q:What do you perceive first while investing?

52

0

5

10

15

20

25

30

35

40

45

1

Perception

No

. o

f re

sp

on

ses

Saving

High returns

Tax benefits

Security

High returns&Taxbenefits

Saving&Taxbenefits

Q: Do you invest in LIFE INSURANCE or MUTUAL FUNDS?

0

5

10

15

20

25

30

35

40

45

50

Life Insurance Mutual Funds Both

No

of

resp

on

ses

Q: What are the reasons for investing in LIFE INSURANCE?

53

0

5

10

15

20

25

30

1

Reasons

No

. o

f re

sp

on

ses

Security

Saving

Tax benefits

Security&Taxbenefits

Saving&Taxbenefits

Q:Give the name of company you prefer for investing in LIFE INSURANCE?

Q:What are the reasons for choosing a particular company for life insurance?

0

5

10

15

20

25

30

35

1

Company

No

.of

resp

on

ses

ICICI Prudential

LIC

Birla Sunlife

Religare Insurance

Others

54

0

5

10

15

20

25

30

35

40

Agent Brand name Track record

Reason

No

.of

resp

on

ses

Q:In which plan do you invest your money in LI?

0

5

10

15

20

25

30

35

Money back Endowment plan ULIPS

Scheme

No

. o

f re

spo

nse

s

Q:Are you satisfied with your decision of investing in LI?

55

0

10

20

30

40

50

60

Highly satisfied Satisfied Moderate

No

. o

f re

spo

nse

s

Q:What are the reasons for investment in Mutual Fund?

0

5

10

15

20

25

30

1

Reasons

No

. o

f re

sp

on

ses

Tax benefits

High returns

Diversified portfolio

Saving

Highreturns&Diversifiedportfolio

Tax benefits&Saving

Q:Which company do you prefer for investing in MF ?

56

Q: What are the reasons for choosing a particular company?

0

5

10

15

20

25

30

35

Agent Brand name Track record

Reasons

No

. o

f re

spo

nse

s

Q: In which scheme do you invest?

0

5

10

15

20

25

30

35

40

1

Name of company

No

. of

resp

on

ses

UTI MF

Birla Sunlife MF

Prudential ICICI

Religareutual Fund unds MFOthers

57

0

5

10

15

20

25

30

35

40

45

1

Scheme

No

. o

f re

sp

on

ses

Equity

Balanced

Income

Sector specific

Tax saving

Q:Are you satisfied with your decision of investing in MF?

0

10

20

30

40

50

60

Highly satisfied Satisfied Moderate

Satisfaction level

No

. o

f re

spo

nse

s

58

RECOMMENDATIONS

Investors should make the investment with proper planning keeping in mind their investment objectives.

Investors should read the offer document carefully before investing in any scheme of the mutual funds and life insurance.

Investors should also consults the brokers or agents to seek information and advice but their decision should not merely be based on agents advice rather the decision should be based on their careful investigation.

The investors should select a particular investment option on basis of their need and risk tolerance.

The investors should diversify their investment portfolio in order to reduce the risk.

The investors should continuously monitor their investments.

The companies should provide all relevant information to the investors.

59

EXECUTIVE SUMMARY

Management ideas without any action based on them mean nothing. That is

why practical experience is vital for any management studies. Theoretical

studies in the class room are not sufficient to understand the functioning

climate and the real problems coming in the way of management. So,

practical exposures are indispensable to such courses. Thus, practical

experience acts as a supplement to the classroom studies.

This report deals with “Investment Pattern of Investor’s in Mutual

Fund & Life Insurance” has been completed. I have learnt a lot of new

things which could never been learnt from theory classes.

Main objectives of this project is to find out the investment pattern of

investor’s in Mutual Fund & Life Insurance, to find out what factors

influence them more to choose a particular investment option, particular

company & to find out whether they are satisfied with their investment

decision or not.

In this study I used non-probability sampling technique and collected

data from primary and secondary source. In this study descriptive research

design is used. Area of study is Hyderabad. It is find out that out of 100

people 89 invest their money while 11 do not invest at all because of

60

inadequate funds, lack of interest and lack of knowledge. Majority of people

invest their money in both Mutual Funds & Life insurance .Majority of

people take the investment decision on the basis of brand name and track

record and are satisfied from their decision.

61

BIBLIOGRAPHY

Books:-

Financial Management 9th edition by “I.M. Pandey.” Vicas publication house pvt ltd.

Research Methodology 2nd edition by “C.R. Kothari” .New age international publication,

Business Statistics 14th edition by “S.P. Gupta &M.P.Gupta.”Sultan Chand & Sons publication.

Workbook 3rd edition May 2006 by “Association of Mutual Funds in India.”

Websites:-

http://www.insurance.com/LifeArticles.aspx

http://www.amfiindia.com

http://www.investopedia.com/articles/basics/04/032604.asp

http://finance.indiamart.com/taxation/income_tax/tax_planning.ht

ml

www.religaresecurities.com

ANNEXURE

62

Investment Pattern of Investor’s in Mutual Fund & Life Insurance

Name of Investor:- Sex:- Male/Female Age(In Yrs.).

Place:-

Occupation:- Service/Business/Other

Annual Income (in Rs.)

Service………………..

Business………………

Others………………..

Investment Details:

Q:- Do you invest?

Yes No

Q:- If not, why? What is the reason for that?

Lack of Knowledge Lack of Interest

Full of Risks Inadequate Funds

Q:- What do you perceive first while investing?

Saving High Returns

Tax Benefits Security

Others

Q:-Arrange the following investment option in descending order according

to your

preferences while making an investment?

Life Insurance Mutual Fund

63

Bank Deposits Govt. Bonds

Equity

Q:-Do, You invest in Life Insurance or in Mutual funds?

LI MF Both

Q: What are the reasons for investment in Life Insurance? Security Savings

Tax benefits High Return

Others Q:- Give the name of the company you prefer for investing in life insurance?

ICICI Prudential Life Insurance Religare Insurance Birla Sun Life

Others

Q:- What are the reasons for choosing a particular company for life insurance?

Broker/Agent Brand Name

Track Record Others

Q: In which plan do you invest your money? Money back Endowment plan

ULIPS

64

Q;- Are you satisfied with the overall decision of our investment in life insurance?

Highly Satisfied Satisfied

Moderate Unsatisfied

Highly Unsatisfied No Reply

Q:- What are the reasons for investment in Mutual Fund?

Tax Benefits High Return

Diversified Portfolio Saving

Q:-Which company do you prefer for investing in Mutual Fund?

UTI Mutual Fund Birla Sun Life Mutual Fund

Religare Mutual FundsPrudential ICICI Others

Q:- What are the reasons for investing/ choosing a particular company for investing in Mutual Fund?

Broker/Agent Brand Name

Track Record Q: In which scheme do you invest? Equity specific scheme Balanced scheme

65

Income scheme Index scheme Sector specific scheme Tax saving scheme

Q: - Are you satisfied with your decision of investing in Mutual Fund?

Highly Satisfied Satisfied

Moderate Unsatisfied

Highly Unsatisfied

Place:

Date: Respondent Signature

66