PUNJAB TECHNICAL

UNIVERSITY

A
Project
On
Mutual Funds & ULIPS

In partial fulfillment of the requirement of two years full time

Masters of Business Administration (MBA) Program

(2009-2011)

Of

Asian Business School, Noida

201301

UNDER THE GUIDENCE OF: SUBMITTED BY:

 PROF.LALITHA RAVI HEERA SINGH

3rd Semester

CONTENTS

S.No. Particulars Page No.

1 Mutual Funds – An overview 1-3

2 How does Mutual fund Work? 4
3 Basic Terminologies of Mutual Funds 5-7
4 Types of MF Schemes 8-15
5 Types Of Return 16
6 NAV - Calculation 17-18
7 List OF Mutual Funds Companies In 19
India
8 Advantages of Mutual Funds 20-21
9 Disadvantages of Mutual Funds 22
10 Mutual Funds Industry In India 23-26
11 Growth of Asset Under Management 27
12 SWOT Analysis 28-29
13 Special Feature! 30-31
Unit Linked Insurance Products
 -An Introduction
15 Insurance – Industry Profile 32-33
16 Purpose & Need of Insurance 34
17 Insurance Regulatory And 35
Development Authority(IRDA)
18 Role Of Life Insurance 36-37
19 Advantages Of Life Insurance 38-39
20 Working Of ULIPs 40-41
21 Charges, Fee & Deductions In ULIPs 42-43
22 Unit Funds 44-45
23 SEBI-IRDA Tiff – Who wins who loses 46-49
24 Bibliography 50
 PREFACE

Investing money where the risk is less has always been risky to decide.

The first factor, which an investor would like to see before investing, is risk

factor. Diversification of risk gave birth to the phenomenon called Mutual

Fund. We are preparing comprehensive report of Mutual Fund industry in

India. The basic idea of assignment of this project is to augment our

knowledge about the industry in its totality and appreciate the use of an

integrated loom. It is concerned the environmental issues and tribulations.

This makes us more Conscious about Industry and its pose and makes us

capable of analyzing Industry’s position in the competitive market. This may

also enhance our logical abilities. The Mutual Fund Industry is in the

growing stage in India, which is evident from the flood of mutual funds

offered by the Banks, Financial Institutes & Private Financial Companies.

Unit linked insurance plan (ULIP) is life insurance solution that provides for

the benefits of risk protection and flexibility in investment. The investment is

denoted as units and is represented by the value that it has attained called

as Net Asset Value (NAV). The policy value at any time varies according to
the value of the underlying assets at the time. In a ULIP, the invested

amount of the premiums after deducting for all the charges and premium

for risk cover under all policies in a particular fund as chosen by the policy

holders are pooled together to form a Unit fund. A Unit is the component of

the Fund in a Unit Linked Insurance Policy. The returns in a ULIP depend

upon the performance of the fund in the capital market. ULIP investors

have the option of investing across various schemes, i.e., diversified equity

funds, balanced funds, debt funds etc. It is important to remember that in a

ULIP, the investment risk is generally borne by the investor. In a ULIP,

investors have the choice of investing in a lump sum (single premium) or

making premium payments on an annual, half-yearly, quarterly or monthly

basis. Investors also have the flexibility to alter the premium amounts

during the policy's tenure.

There are various aspects, which have been studied in detail in the project

and have been added to this project report. Hope this report would help

one understand the Mutual Fund Industry and ULIPS of India in detail.
 ACKNOWLEDGEMENT

I am indebted to a multitude of persons who have provided me

with valuable help during our endeavor of research. The project
would not have seen the illumination of the day without the efforts
of the many who managed the show in the wings. I am thankful to
all people who have put in great efforts and gave me guidance for
the successful completion of the project.

I am indeed grateful to Prof.Lalitha Ravi for providing me the

guidance, advice, constructive suggestions and faith in my ability
inspired to perform well who gave me a valuable opportunity of
involving me in studying this project. Preparing a project of this
nature is an arduous task and I am fortunate enough to get
support from a large number of people to whom we shall always
remain grateful.

Finally, I thank all those who directly and indirectly contributed to

this project.

Heera Singh