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MUTUAL FUNDS AT
IDBI FEDERAL LIFE INSURANCE CO.
LTD
INTRODUCTION TO THE STUDY
Investment means purchasing of an asset with the intention to gain
income from it.
ULIP gives investors the benefits of both insurance and investment under a
single integrated plan.
MF is a trust that pools the savings of investors who share a common
financial goal is known as mutual fund.
The topic helps in understanding the relationship between ULIPs and
Mutual Funds and the working mechanism of both the investment
products.
It gives a holistic approach to study the risk involved in both the
investments and thereby the returns that they generate.
ABOUT THE COMPANY
IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, Federal
Bank, and Ageas.
Vision: To be the leading provider of wealth management, protection and
retirement solutions that meets the needs of the customers and adds
value to their lives.
Mission: To be transparent in the way we deal with our customers and to
act with integrity. To invest in and build quality human capital in order to
achieve our mission.
Commenced operations in 2008, IDBI Federal was able to achieve
breakeven within just 5 years. the Companys passion for innovation and
growth helped it achieve this feat.
Network of 2, 964 branches of IDBI Bank and Federal Bank.
As on March 31, 2015, the company has issued nearly 7.88 lakh
policies with a sum assured of over Rs. 41,856 crore.
Assets under management of 4,087 crore and a robust capital base of
over 800 crores, as on March 31, 2015.
Types of channels are Banca channel, Agency channel, Direct
marketing channel, online channel.
It offers 16 products including 4 ULIP products.
OBJECTIVE OF THE STUDY
To study the working mechanism of select two ULIP products of IDBI
Federal Life Insurance Co. ltd. and two Mutual fund products of HDFC
Mutual fund.
To study the performance of select two ULIP products of IDBI Federal
Life Insurance Co Ltd and two mutual fund products of HDFC Mutual
fund.
To analyze and examine the risk and return relationship between
Mutual Funds & ULIPs and also comparing with the index.
METHODOLOGY
Primary Data:
Guide and Expert Interviews.
Secondary Data:
Business magazines, Editorials, Business Newspapers, Internet surfing,
Library, and Bibliographies, Wealth trends of IDBI Federal and
competitors, NAV graph reports, Company website, Journals
Tools and Techniques:
CAGR (Compounded Annual Growth Rate)
IRR (Internal Rate of Return)
Sample variance, Standard deviation, Covariance, Correlation
Holding period returns of Net Asset Values
ANALYSIS AND INTERPRETATION
WORKING MECHANISM:
Working mechanism of select two ULIP products of IDBI Federal and
two products of HDFC Mutual fund is studied.
IDBI FEDERAL GROWTH INSURANCE PLAN
IDBI FEDERAL SUVIDHA GROWTH
HDFC EQUITY FUND
HDFC MID-CAP OPPORTUNITIES FUND
PERFORMANCE ANALYSIS:
Benefit illustration of IDBI FEDERAL WEALTHSURANCE GROWTH
INSURANCE PLAN
The policy has sum assured of Rs. 5, 00, 000 with PT=15 years, PPT=15
years and annual premium of Rs. 50, 000
The allocation of premium is 70% in equity growth fund and 30% in
mid-cap fund.
CAGR@4%= 4.57%, CAGR@8%= 6.87
Actual Performance: 2008-2015
EQUITY FUND
IDBI Federal Life Insurance Co CNX HDFC Mutual fund
Ltd
11.44% 8.7% 16.04%
MID-CAP FUND