A project report on

Net connect penetration in modern trade

PREPARED FOR & PRESENTED TO

RELIANCE COMMUNICATION

UNDER THE GUIDANCE OF (pre- paid)

MR.MRITYUNJAY
Data Card Head

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BY

SONU MISHRA
Masters in Business Administration Second semester

Submitted in partial fulfilment of the requirement for the degree of

MASTERS IN BUSINESS ADMINISTRATION

GAUTAM BUDDHA TECHNICAL UNIVERSITY (2010-2012)

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DECLARATION
I hereby declare that this project work titled NET CONNECT PENETRATION IN MODERN TRADE is a record of Original work done by me under the guidance of Mr. Lalit Nagpal and that this project work has not formed the basis for the award of any Degree/Diploma/Associate ship/Fellowship or similar title to any candidate of any University.

(Signature of the candidate) Name Roll No Course :Marketing : SONU MISHRA :1014370051 with Specialization

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CERTIFICATE
This is to certify that the project work entitled UNIQUE MQRKETTING STRATEGIES OF INSURANCE COMPANIES FOR DISTRIBUTION BUILDING submitted to MAHAMAYA TECHNICAL UNIVERSITY,NOIDA in partial fulfilment of the requirements for the award of the Degree of Master of Business Administration in Marketing is a record of the original work done by Ratnadeep Gautam under my Supervision and guidance and that this project work has not formed the basis for the award of any Degree/Diploma/Associate ship/Fellowship or Similar title to any candidate of any University.

(Seal)

Signature of the Guide Name and Designation

Forwarded by

Director/Principal Centre for Participatory and Online Programmes IMS Engineering College, Ghaziabad Submitted for University Examination held on______________________________

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Internal Examiner Examiner

External

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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 competition and success, project is like a bridge between theoretical and practical working. Willingly, I prepared this particular project. First of all I would like to thank the supreme power, the almighty God, who is the one who has always guided us to work on the right path.

I would like to thank Mr. Mritunjay for granting me the permission to undertake the summer training project. I owe my gratitude to Mr. Saket tewari for giving me their valuable time and guide and support in completing the project. I would like to also thank to my parents who supported me in all the way. At last I am heartily thankful to all those persons who help me in completion of the project directly or indirectly.

INDEX
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SL NO. TOPIC
1 2 3 4 5

PAGE NO. i ii iii iv v

Cover Page Declaration Certificate of internal guide Certificate of organisation Acknowledgement

6 7 8 9 10 11 12 13

Preface Tata Profile Values And Purpose Tata Group Tata Group Holding Structure Board of Directors Introduction of Ratan Tata Market Capitalisation Tata Company Management of Tata Group Objective of Project Scope of the Project ULIP What is Mutual Fund? ULIP Vs Mutual Fund Tata Aig Life Insurance Company(TALIC) Vision

07 8-9 10-11 12-13 14 15 16-25 26 27-28 29 29 30-36 37-43 44-49 50-51

14
15 16 17 18 19 20

21

Company Overview Key Executives

52

22

Organisational Structure of TALIC

53

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Senior Leadership Agency structure Alternate Channel Structure

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54 55 56 57-59 60-63 64-67

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Market share of Private Players Conclusion Sample of Financial Planning

PREFACE

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Practical training is an important part of theoretical studies. It covers all that which remains uncovered in classroom. It offers all that which remains an invaluable treasure of experience. It offers an exposure to practical management of business organization.

As we know well that practical training play an important role in future building of an individual, one can easily overcome the fear from that life in which he has to join the company as member after sometime.

Just theoretical knowledge is not sufficient for the success of an individual; one should have practical knowledge about theory in general life.

The project highlights the important areas of the company, how they work and what functions they performed that finally contributes to the growth of the organization.

I owe gratitude and indebtedness to all those personalities who helped me to complete the project.

I shall feel amply rewarded if the project proves helpful to the company.

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Executive Summary
The service industry is one of the fastest growing sectors in India today. The upcoming sectors, which are really showing the graph towards upwards, are Telecom, Banking, and Insurance. These sectors really have a lot of responsibility towards the economy. Amongst the above-mentioned areas insurance is one sector, which took a lot of time in positioning itself. The insurance business of non-life companies was not much in problems but the major problem was with life insurance. Life Insurance Corporation of India had monopoly for more than 45 years, but the picture then was completely different. Previously people felt that Insurance is only for classes not for masses but now the picture is vice-versa. The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian natives. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as substandard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance
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companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. The formation of IRDA, entrance of private life insurance companies into India with one foreign partner, compulsory training of Insurance agents etc. developments started to take place. And this was the time when these companies started searching for proper channel partners who can help the organization in expanding its network and business in India. Channel partners are those who are going to be into direct selling of companys products i.e. the insurance policies. They are the link between the customers and the management or company. These channel partners are people with different profiles. They are selected on some grounds like their network of people, their problem handling ability, convincing power and lot many things. The main idea behind companys Questionnaire Survey is to find out and analyze the proper profile that can be recruited by company as a channel partner. Company has been focusing on some of the profile that can be very beneficial for the company. For example Chartered Accountants, Tax Consultants, Postal agents, Banks Daily Collection Agents etc. the main idea behind targeting the above profile is strong client network which is really very important for an insurance company.

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INTRODUCTION TO INSURANCE

WHAT IS INSURANCE
Insurance is a risk management technique primarily used to hedge against the risk of a contingent, uncertain loss that may be suffered by those individuals or entities who have an insurable interest in scarce resources, by transferring the possibility of this loss from one interested person, persons, or entity to another. The scarce resources referred to here fall into three divisions: human resources, financial resources, and capital, or tangible resources. In the context of insurance, scarce resources are also known as "exposures," because they are "exposed" to perils, those things, or forces, which cause destruction or reduction, in the usefulness, or value, of an exposed resource. Human resources are thus exposed to perils such as illness or death; financial resources to legal judgments that may result from negligent acts, and capital resources to physical perils such as fire, theft, windstorm, and vandalism, to name but a few. A hazard is the cause of a peril, it is that thing or condition which increases the likelihood of a peril. Thus perils and hazards are identified by the exposure that they threaten. For example a slippery roadway could be viewed as a financial hazard, capital hazard, or human hazard by automobile owners, and rightly so, since this condition increases the likelihood of an automobile accident that might result in an unfavorable legal judgment, automobile damage, and bodily injury. In the context of commercial trade, insurance is further defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for consideration, payment, in the form of a risk premium.

The insurance premium develops at an actuarially determined rate. This rate is a factor used to determine the amount of premium to
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charge for a certain limit, and type, of insurance on the scarce resource. The premium can further be viewed as a guaranteed, known, relatively small financial loss to the insured, paid to the insurer, in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a loss to the insured resource(s). The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be indemnified.

PRINCIPLES
Insurance involves pooling funds from many insured entities (known as exposures) to pay for the losses that some may incur. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring. In order to be insurable, the risk insured against must meet certain characteristics in order to be an insurable risk. Insurance is a commercial enterprise and a major part of the financial services industry, but individual entities can also self-insure through saving money for possible future losses.

Insurers' business model

The business model is to collect more in premium and investment income than is paid out in losses, and to also offer a competitive price which consumers will accept. Profit can be reduced to a simple equation: Profit = earned premium + investment income - incurred loss - underwriting expenses. Insurers make money in two ways:

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Through underwriting, the process by which insurers select the risks to insure and decide how much in premiums to charge for accepting those risks; By investing the premiums they collect from insured parties. The most complicated aspect of the insurance business is the actuarial science of ratemaking (price-setting) of policies, which uses statistics and probability to approximate the rate of future claims based on a given risk. After producing rates, the insurer will use discretion to reject or accept risks through the underwriting process. At the most basic level, initial ratemaking involves looking at the frequency and severity of insured perils and the expected average payout resulting from these perils. Thereafter an insurance company will collect historical loss data, bring the loss data to present value, and comparing these prior losses to the premium collected in order to assess rate adequacy.[8] Loss ratios and expense loads are also used. Rating for different risk characteristics involves at the most basic level comparing the losses with "loss relativities" - a policy with twice as money policies would therefore be charged twice as much. However, more complex multivariate analyses through generalized linear modeling are sometimes used when multiple characteristics are involved and a univariate analysis could produce confounded results. Other statistical methods may be used in assessing the probability of future losses. Upon termination of a given policy, the amount of premium collected and the investment gains thereon, minus the amount paid out in claims, is the insurer's underwriting profit on that policy. Underwriting performance is measured by something called the "combined ratio"[9] which is the ratio of expenses/losses to premiums. A combined ratio of less than 100 percent indicates an underwriting profit, while anything over 100 indicates an underwriting loss. A company with a combined ratio over 100% may nevertheless remain profitable due to investment earnings.

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History of Insurance
In some sense we can say that insurance appears simultaneously with the appearance of human society. We know of two types of economies in human societies: natural or non-monetary economies (using barter and trade with no centralized nor standardized set of financial instruments) and more modern monetary economies (with markets, currency, financial instruments and so on). The former is more primitive and the insurance in such economies entails agreements of mutual aid. If one family's house is destroyed the neighbors are committed to help rebuild. Granaries housed another primitive form of insurance to indemnify against famines. Often informal or formally intrinsic to local religious customs, this type of insurance has survived to the present day in some countries where modern money economy with its financial instruments is not widespread.

Turning to insurance in the modern sense (i.e., insurance in a modern money economy, in which insurance is part of the financial sphere), early methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively.[13] Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The
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Babylonians developed a system, which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen or lost at sea. Achaemenian monarchs of Ancient Persia were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in Norouz (beginning of the Iranian New Year); the heads of different ethnic groups as well as others willing to take part, presented gifts to the monarch. The most important gift was presented during a special ceremony. When a gift was worth more than 10,000 Derrik (Achaemenian gold coin) the issue was registered in a special office. This was advantageous to those who presented such special gifts. For others, the presents were fairly assessed by the confidants of the court. Then the assessment was registered in special offices. The purpose of registering was that whenever the person who presented the gift registered by the court was in trouble, the monarch and the court would help him. Jahez, a historian and writer, writes in one of his books on ancient Iran: "[W]henever the owner of the present is in trouble or wants to construct a building, set up a feast, have his children married, etc. the one in charge of this in the court would check the registration. If the registered amount exceeded 10,000 Derrik, he or she would receive an amount of twice as much." A thousand years later, the inhabitants of Rhodes invented the concept of the general average. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were deliberately jettisoned in order to lighten the ship and save it from total loss. The Talmud deals with several aspects of insuring goods. Before insurance was established in the late 17th century, "friendly
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societies" existed in England, in which people donated amounts of money to a general sum that could be used for emergencies. Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in post-Renaissance Europe, and specialized varieties developed.

Some forms of insurance had developed in London by the early decades of the 17th century. For example, the will of the English colonist Robert Hayman mentions two "policies of insurance" taken out with the diocesan Chancellor of London, Arthur Duck. Of the value of 100 each, one relates to the safe arrival of Hayman's ship in Guyana and the other is in regard to "one hundred pounds assured by the said Doctor Arthur Ducke on my life". Hayman's will was signed and sealed on 17 November 1628 but not proved until 1633. Toward the end of the seventeenth century, London's growing importance as a center for trade increased demand for marine insurance. In the late 1680s, Edward Lloyd opened a coffee house that became a popular haunt of ship owners, merchants, and ships' captains, and thereby a reliable source of the latest shipping news Insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured more than 13,000 houses. The devastating effects of the fire converted the development of insurance "from a matter of convenience into one of urgency, a change of opinion reflected in Sir Christopher Wren's inclusion of a site for 'the Insurance Office' in his new plan for London in 1667."[16] A number of attempted fire insurance schemes came to nothing, but in 1681 Nicholas Barbon, and eleven associates, established England's first fire insurance company, the 'Insurance Office for Houses', at the back of the Royal Exchange. Initially, Barbons Insurance Office insured 5,000 homes.

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The first insurance company in the United States underwrote fire insurance and was formed in Charles Town (modern-day Charleston), South Carolina, in 1732. Benjamin Franklin helped to popularize and make standard the practice of insurance, particularly against fire in the form of perpetual insurance. In 1752, he founded the Philadelphia Contribution ship for the Insurance of Houses from Loss by Fire. Franklin's company was the first to make contributions toward fire prevention. Not only did his company warn against certain fire hazards, it refused to insure certain buildings where the risk of fire was too great, such as all wooden houses. In the United States, regulation of the insurance industry is highly Balkanized, with primary responsibility assumed by individual state insurance departments Whereas insurance markets have become centralized nationally and internationally, state insurance commissioners operate individually, though at times in concert through a national insurance commissioners' organization. In recent years, some have called for a dual state and federal regulatory system (commonly referred to as the Optional federal charter (OFC)) for insurance similar to that which oversees state banks and national banks.

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Insurance In India

The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000
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years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Cooperative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in20 | P a g e

force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost. LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand 1 of 3 30/06/11 7:31 PMLife Insurance Corporation of India http://www.licindia.in/history.htm the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of reorganization servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about
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200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with reorganization happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies. Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8 zonal offices, 992 satellite offices and the Corporate office. LICs Wide Area Network covers 109 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer online premium collection facility in selected cities. LICs ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centers have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year. From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families. Some of the important milestones in the life insurance business in
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India are:

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and nonlife insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:
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1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

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TATA Profile
Leadership with trust Tata companies operate in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. They are, by and large, based in India and have significant international operations. The total revenue of Tata companies, taken together, was $70.8 billion (around Rs. 325, 334 crore) in 2008-09, with 64.7 per cent of this coming from business outside India, and they employ around 357,000 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. Every Tata Company or enterprise operates independently. Each of these companies has its own board of directors and shareholders, to whom it is answerable. There are 28 publicly listed Tata enterprises and they have a combined market capitalization of some $60 billion, and a shareholder base of 3.5 million. The major Tata companies are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels and Tata Communications.

Tata Steel became the sixth largest steel maker in the world after it acquired Corus. Tata Motors is among the top five commercial vehicle manufacturers in the world and has recently acquired Jaguar and Land Rover. TCS is a leading global software company, with delivery centers in the US, UK, Hungary, Brazil, Uruguay and China, besides India. Tata Tea is the second largest branded tea company in the world, through its UK-based subsidiary Tetley. Tata Chemicals is the worlds second largest manufacturer of soda ash and Tata Communications is one of the worlds largest wholesale voice carriers. In tandem with the increasing international footprint of Tata companies, the Tata brand is also gaining international recognition. Brand Finance, a UK-based consultancy firm, recently valued the Tata brand at $9.92 billion and ranked it 51st among the world's Top 100 brands. Business Week magazine ranked Tata 13th among the '25 Most Innovative Companies' list and the Reputation Institute, USA, recently rated it 11th on its list of world's most reputable companies.

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Founded by Jamsetji Tata in 1868, Tatas early years were inspired by the spirit of nationalism. It pioneered several industries of national importance in India: steel, power, hospitality and airlines. In more recent times, its pioneering spirit has been showcased by companies such as TCS, Indias first software company, and Tata Motors, which made Indias first indigenously developed car, the Indica, in 1998 and recently unveiled the worlds lowest-cost car, the Tata Nano. Tata companies have always believed in returning wealth to the society they serve. Two-thirds of the equity of Tata Sons, the Tata promoter company, is held by philanthropic trusts that have created national institutions for science and technology, medical research, social studies and the performing arts. The trusts also provide aid and assistance to non-government organizations working in the areas of education, healthcare and livelihoods. Tata companies also extend social welfare activities to communities around their industrial units. The combined development-related expenditure of the trusts and the companies amounts to around 4 per cent of the net profits of all the Tata companies taken together. Going forward, Tata is focusing on new technologies and innovation to drive its business in India and internationally. The Nano car is one example, as is the Eka supercomputer (developed by another Tata company), which in 2008 was ranked the worlds fourth fastest. Anchored in India and wedded to traditional values and strong ethics, Tata companies are building multinational businesses that will achieve growth through excellence and innovation, while balancing the interests of shareholders, employees and civil society.

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Values and purpose

Purpose
The two Promoter companies of Tata Group are: Tata Sons and Tata Industries. Tata Sons is the promoter of all key companies of the Tata Group and holds the bulk of shareholding in these companies. Tata Sons is the owner of the Tata name and the Tata trademark, which are registered in India and several other countries. Tata Sons set up Tata Industries in 1945 as a managing agency for businesses it promoted. At the Tata group they are committed to improving the quality of life of the communities they serve. They do this by striving for leadership and global competitiveness in the business sectors in which they operate. Their practice of returning to society what they earn evokes trust among consumers, employees, shareholders and the community. They are committed to protecting this heritage of leadership with trust through the manner in which they conduct their business.

Core values
Tata has always been values-driven. These values continue to direct the growth and business of Tata companies. The five core Tata values underpinning the way they do business are:

Integrity:
They conduct their business fairly, with honesty and transparency. Everything they do stand the test of public scrutiny.

Understanding:
They are caring, show respect, compassion and humanity for the colleagues and customers around the world, and always work for the benefit of the communities.
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Excellence:
They constantly strive to achieve the highest possible standards in our day-today work and in the quality of the goods and services provided.

Unity:
They work cohesively with their colleagues across the group and with customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.

Responsibility:
They are responsible, sensitive to the countries, communities and environments in which they work, always ensuring that what comes from the people goes back to the people many times over.

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Tata Group
Tata Group is one of India's largest and most respected business groups. Tata Group's name is synonymous with India's industrialisation. The Group gave India her first steel plant, hydro-electric plant, inorganic chemistry plant and created a reservoir of scientific and technological manpower for the country. Its Trusts have instituted the Tata Institute of Social Sciences in 1936; India's first cancer hospital, the Tata Memorial in 1941, and in 1945, the Tata Institute of Fundamental Research, which became the cradle of India's Atomic energy program. Today, Tata Group comprises 96 operating companies in seven business sectors: information systems and communications; engineering; materials; services; energy; consumer products; and chemicals. The Group has operations in more than 54 countries across six continents, and its companies export products and services to 120 nations. Jamsetji Nusserwanji Tata laid the foundations of Tata Group when he started a private trading firm in 1868. In 1874, he set up the Central India Spinning Weaving and Manufacturing Company Limited and thus marked the Group's entry into textiles. In 1887, Jamsetji Tata formed a partnership firm, Tata & Sons, with his elder son Sir Dorabji Tata and his cousin Ratanji Dadabhoy Tata. His younger son Sir Ratan Tata joined the firm in 1896. In 1902, the Indian Hotels Company was incorporated to set up the Taj Mahal Palace and Tower, India's first luxury hotel, which opened in 1903. The Tata Iron and Steel Company (now known as Tata Steel) was established to set up India's first iron and steel plant in Jamshedpur. The plant started production in 1912. In 1910, Tata Hydro-Electric Power Supply Company, (now Tata Power) was set up. In 1917, Tata Oil Mills Company was established to make soaps, detergents and cooking oils. In 1932, Tatas entered aviation sector with the establishment of Tata Airlines. In 1939, Tata Chemicals, presently, the largest producer of soda ash in India, was established. In 1945, Tata Engineering and Locomotive Company (renamed Tata Motors in 2003) was established to manufacture locomotive and engineering products. In 1954, India's major marketing, engineering and manufacturing organisation, Voltas, was established. In 1962, Tata Finlay (now Tata Tea), one of the largest tea producers, was established. In 1968, Tata Consultancy Services (TCS), India's first software services company, was established as a division of Tata Sons. In 1970, Tata McGrawHill Publishing Company was created to publish educational and technical books. In 1984, Titan Industries, a joint venture between the Tata Group and the Tamil Nadu
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Industrial Development Corporation (TIDCO), was set up to manufacture watches. In 1996, Tata Teleservices (TTSL) was established to lead the Group's foray into the telecom sector. In 1998, Tata Indica, India's first indigenously designed and manufactured car was launched by Tata Motors. In 2000, Tata Tea acquired the Tetley Group, UK. This was the first major acquisition of an international brand by an Indian business group. In 2001, Tata entered into insurance business in joint venture with Tata AIG. In 2007, Tata Steel acquired Corus the fifth largest steel company in the world.

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Tata Group Companies

Tata Group Holding Structure
Sir Dorabji Tata Trust Sir Ratan Tata Trust Other Tata-endowed Trust

Tata Sons Ltd. (Major holdings) Tata Consultancy Services Tata Steel Tata Motors Tata Power Tata Communications Tata Chemicals Tata Beverage Group Indian Hotels Titan Voltas Tata Elxsi Trent Tata Investment Corporation Tata Teleservices Tata International Tata AIG General Insurance Co. Tata AIG Life Insurance Co. Tata Sky Tata Asset Management Tata Advanced Systems Tata Capital Tata| Realty e 31 P a g and Infrastructure (Major holdings) Tata Advanced Materials Tata Auto Comp Systems Tata Industrial Services Drive India Enterprise Solutions Tata Industries Ltd.

A brief introduction of Ratan N Tata

Ratan N Tata has been the Chairman of Tata Sons, the promoter company of the Tata group, since 1991. He is also the Chairman of the major Tata companies, including Tata Motors, Tata Steel, Tata Consultancy Services, Tata Power, Tata Tea, Tata Chemicals, Indian Hotels and Tata Teleservices. During his tenure, the groups revenues have grown nearly 13-fold. Mr Tata also serves on the board of directors of Fiat Spa and Alcoa. He is also on the international advisory boards of Mitsubishi Corporation, the American International Group, JP Morgan Chase and Rolls Royce. Mr Tata is associated with various organisations in India and overseas. He is the Chairman of two of the largest private-sector-promoted philanthropic trusts in India. He is a member of the Prime Ministers Council on Trade and Industry, the National Hydrogen Energy Board, and the National Manufacturing Competitiveness Council. He is the president of the Court of the Indian Institute of Science and Chairman of the Council of management of the Tata Institute of Fundamental Research. He also serves on the UK Prime Ministers Business Council for Britain and the International Advisory Council of Singapores Economic Development Board. He is also a member of the Global Business Council on HIV / Aids and the Programme Board of the Bill and Melinda Gates Foundations India Aids initiative. Mr Tata joined the Tata group in 1962. After serving in various companies, he was appointed director-in-charge of The National Radio and Electronics Company in 1971. In 1981 he was named Chairman of Tata Industries; the groups other promoter company, where he was responsible for transforming it into a group strategy thinktank, and a promoter of new ventures in high technology businesses. Mr Tata received a BS degree in architecture from Cornell in 1962. He worked briefly with Jones and Emmons in Los Angeles before returning to India in late 1962. He completed the Advanced Management Program at Harvard Business School in 1975.
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The Government of India honoured Mr Tata with its second-highest civilian award, the Padma Vibhushan, in 2008. He has also received honorary doctorates from Ohio State University, the Asian Institute of Technology, the University of Warwick and the Indian Institutes of Technology of Kharagpur and Madras, and an honorary fellowship from the London School of Economics.The rest of the Tata companies spread over seven sectors in which Tata Group operates are: 1. Engineering (a) Automotive:

Tata Auto Comp Systems Subsidiaries / associates / joint ventures: Automotive Composite Systems International, Automotive Stampings and Assemblies, Knorr Bremse Systems for Commercial Vehicles, TACO Engineering, TACO Faurecia Design Centre, TACO Hendrickson Suspension Systems, TACO Interiors and Plastics Division, TacoKunststofftechnik, TACO MobiApps Telematics, TACO Supply Chain Management, TACO Tooling, TACO Visteon Engineering Center, Tata Ficosa Automotive Systems, Tata Johnson Controls Automotive, Tata Toyo Radiator, Tata Yazaki Auto Comp, TC Springs, Technical Stampings Automotive.

Tata Motors Subsidiaries / associates / joint ventures: Concorde Motors, HV Axels, HV Transmissions, Nita Company, TAL Manufacturing Solutions, Tata Cummins, Tata Daewoo Commercial Vehicles Company, Tata Engineering Services, Tata Precision Industries, Tata Technologies, Telco Construction Equipment Company

(b) Engineering Services

Tata Projects TCE Consulting Engineers Voltas

(c) Engineering Products

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TAL Manufacturing Solutions Telco Construction Equipment Company TRF

2. Materials (a) Composites Tata Advanced Materials (b) Metals

Tata Steel Subsidiaries / associates / joint ventures: Hooghly Met Coke and Power Company, Jamshedpur Injection Powder (Jamipol), Lanka Special Steel, junction services, NatSteel, Sila Eastern Company, Tata Metaliks, Tata Pigments, Tata Ryerson, Tata Sponge Iron, Tata Refractories, Tayo Rolls, The Indian Steel and Wire Products, The Tinplate Company of India, TM International Logistics, Wires Division.

3. Energy (a) Power Tata BP Solar India Tata Power Subsidiaries / associates / joint ventures: Tata Ceramics, Tata Power Trading, North Delhi Power Limited (b)Oil & Gas

Tata Petro dyne

4. Chemicals

Rallis India Tata Chemicals Tata Pigments

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5. Services (a) Hotels and Realty Indian Hotels (Taj group) Subsidiaries / associates / joint ventures: Taj Air , Roots Corporation (Ginger Hotels) THDC (b) Financial Services

Tata AIG General Insurance Tata AIG Life Insurance Tata Asset Management Tata Financial Services Tata Investment Corporation

(c) Other Services

Tata Quality Management Services Tata Services Tata Strategic Management Group

6. Consumer Products

Infiniti Retail Tata Tea Subsidiaries / associates / joint ventures: Tetley Group, Tata Coffee, Tata Tetley, Tata Tea Inc Tata Ceramics Tata McGraw Hill Publishing Company Titan Industries Trent

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7. Information Systems and Communications (a) Information Systems

Nelito Systems Tata Consultancy Services Subsidiaries / associates / joint ventures: APONLINE, Airline Financial Support Services, Aviation Software Development Consultancy, CMC, CMC Americas Inc, Conscripti, HOTV, Tata America International Corporation, WTI Advanced Technology Tata Elxsi SerWizSol Tata Interactive Systems Tata Technologies

(b) Communications

Tata Sky Tata Teleservices Subsidiaries / associates / joint ventures: Tata Teleservices (Maharashtra), Tata Internet Services VSNL Tatanet

(c) Industrial Automation

Nelco --Subsidiaries / associates / joint ventures: Tata net

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Note: The above information is up to 21-07-2007 Tata group sector-wise operations The chart below illustrates how Tata companies in each of these sectors contribute, in percentage terms, to the overall financial makeup of the group.

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SECTORS Services Materials engineering Energy Consumer products Chemicals Communication & Information System

CONTRIBUTION IN %AGE 3% 45% 24% 6% 3% 4% 14%

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The table that follows shows the group's sector-wise financial performance.

Tata group figures

(Rs million)

Year

Total turnover

Sales turnover
3,111,290

Value of assets

Gross block

Exports

2009-10

3,195,339

2,501,786

2,922,475 2,612,760

31,721

2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02

3,253,340 2,515,430 1,299,940 9,67,230 7,99,130 6,54,240 5,42,270 4,94,568

3,218,490 2,474,156 1,283,770 9,47,140 7,82,750 6,14,340 5,21,337 4,79,999

2,372,470 1,772,931 1,135,730 7,97,660 6,80,180 5,50,630 5,09,270 4,91,622

339,870 252,801 236,350 2,36,430 2,05,870 1,41,360 1,30,764 1,25,738

1,935,072 866,127 6,81,690 6,00,290 4,58,840 4,34,809 4,03,647

Market capitalisation of Tata companies as on June 10, 2010

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Name of the Company Tata Consultancy Services Tata Elxsi Tata Communications Tata Motors Voltas Tata Steel Taj Hotels, Resorts and Palaces Tata Power Tata Tea Titan Titan Trent Tata Chemicals Rallis

Rs. Cr 146,889 846 7,132 43,352 6,262 41,779 7,365 29,179 6,642 9,900 9,900 1,725 7,594 1,985

$ billion 31.27 0.18 1.52 9.23 1.33 8.89 1.57 6.21 1.41 2.11 2.11 0.37 1.62 0.42

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MANAGEMENT OF TATA GROUP

Management structure There are two decision-making bodies that define and direct the business endeavours of the Tata group. These are called the Group Executive Office and the Group Corporate Centre. Group Executive Office The Group Executive Office (GEO) defines and reviews the business activities of the Tata group and is involved in implementing programmes in corporate governance, human resources, the environment, etc. The chief objective of the GEO is to make the Tata group more synergistic; it does this by strengthening the relationship between the group and its companies. The GEO creates a shared understanding of a Tata company's current activities, its strengths and its weaknesses. It then addresses the most strategic issues facing the company. Apart from this, the GEO has reviewed the group's business portfolio and clustered companies into seven business sectors. The GEO assesses what unique value a company adds to a particular business sector and, conversely, what unique value the group can bring to that company. Besides Chairman Ratan N Tata, the GEO comprises R Gopalakrishnan, Ishaat Hussain, Kishor Chaukar and Arunkumar Gandhi.

Group Corporate Centre The Group Corporate Centre (GCC) is a forum at which broad policy issues relating to the growth of Tata companies are reviewed and the entry into new areas discussed. The GCC also provides advisory services to Tata companies in the areas of Human Resources, Finance, Legal, and other functional areas as and when required.
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Apart from this, the GCC from time to time, reviews Tata companies business portfolios across business sectors. The GCC comprises Chairman Ratan N Tata, NA Soonawala, JJ Irani, R K Krishna Kumar, R Gopalakrishnan, Ishaat Hussain, Kishor Chaukar, and Arunkumar Gandhi.

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Objective of the Project

The objective of the summer training is to study the market of ULIP and Mutual Funds and suggest difference between them. Only this was not the objective but also to learn how to do the financial planning of the customers. Under the study of these two different products of market lots of situation we have to cross on. With the help of market survey, field study etc the data of the project should be collected. Further the detail of this study is given.

Scope of the Project

The financial planning was done with the help of market survey. It was very useful for the company point of view as well as useful for the customers to know the future expectancy of funds required to fulfill their dreams and achieve their goals. Even it helps me also in knowing how we can study the financial position of anyone.

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Unit Linked Insurance Plans (ULIP)

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).

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 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. For example, if an individual has surplus funds, he can enhance the contribution in ULIP. Conversely an individual faced with a liquidity crunch has the option of paying a lower amount (the difference being adjusted in the accumulated value of his ULIP). ULIP investors can shift their investments across various plans/asset classes (diversified equity funds, balanced funds, debt funds) either at a nominal or no cost.

Expenses Charged in a ULIP

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Premium Allocation Charge: A percentage of the premium is appropriated towards charges initial and renewal expenses apart from commission expenses before allocating the units under the policy.

Mortality Charges: These are charges for the cost of insurance coverage and depend on number of factors such as age, amount of coverage, state of health etc.

Fund Management Fees: A fee levied for management of the fund and is deducted before arriving at the NAV.

Administration Charges: This is the charge for administration of the plan and is levied by cancellation of units.

Surrender Charges: Deducted for premature partial or full encashment of units.

Fund Switching Charge: Usually a limited number of fund switches are allowed each year without charge, with subsequent switches, subject to a charge. Service Tax Deductions: Service tax is deducted from the risk portion of the premium.
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How ULIPs can makes one RICH?

Despite the seemingly comparable structures there are various factors wherein the two differ.

In this article we evaluate the two avenues on certain common parameters and find out how they measure up.

1. Mode of investment/ investment amounts

Mutual fund investors have the option of either making lump sum investments or investing using the systematic investment plan (SIP) route, which entails commitments over longer time horizons. The minimum investment amounts are laid out by the fund house. ULIP investors also have the choice of investing in a lump sum (single premium) or using the conventional route, i.e. making premium payments on an annual, half-yearly, quarterly or monthly basis. In ULIPs, determining the premium paid is often the starting point for the investment activity.

This is in stark contrast to conventional insurance plans where the sum assured is the starting point and premiums to be paid are determined thereafter.

ULIP investors also have the flexibility to alter the premium amounts during the policy's tenure. For example an individual with access to surplus funds can enhance the contribution thereby ensuring that his surplus funds are gainfully invested; conversely an individual faced with a liquidity crunch has the option of paying a lower amount (the difference being adjusted in the accumulated value of his ULIP). The freedom to modify premium payments at one's convenience clearly gives ULIP investors an edge over their mutual fund counterparts.
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2. Expenses

In mutual fund investments, expenses charged for various activities like fund management, sales and marketing, administration among others are subject to pre-determined upper limits as prescribed by the Securities and Exchange Board of India.

For example equity-oriented funds can charge their investors a maximum of 2.5% per annum on a recurring basis for all their expenses; any expense above the prescribed limit is borne by the fund house and not the investors.

Similarly funds also charge their investors entry and exit loads (in most cases, either is applicable). Entry loads are charged at the timing of making an investment while the exit load is charged at the time of sale. Insurance companies have a free hand in levying expenses on their ULIP products with no upper limits being prescribed by the regulator, i.e. the Insurance Regulatory and Development Authority. This explains the complex and at times 'unwieldy' expense structures on ULIP offerings. The only restraint placed is that insurers are required to notify the regulator of all the expenses that will be charged on their ULIP offerings.

Expenses can have far-reaching consequences on investors since higher expenses translate into lower amounts being invested and a smaller corpus being accumulated. ULIP-related expenses have been dealt with in detail in the article "Understanding ULIP expenses". 3. Portfolio disclosure

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Mutual fund houses are required to statutorily declare their portfolios on a quarterly basis, albeit most fund houses do so on a monthly basis. Investors get the opportunity to see where their monies are being invested and how they have been managed by studying the portfolio.

There is lack of consensus on whether ULIPs are required to disclose their portfolios. During our interactions with leading insurers we came across divergent views on this issue.

While one school of thought believes that disclosing portfolios on a quarterly basis is mandatory, the other believes that there is no legal obligation to do so and that insurers are required to disclose their portfolios only on demand.

Some insurance companies do declare their portfolios on a monthly/quarterly basis. However the lack of transparency in ULIP investments could be a cause for concern considering that the amount invested in insurance policies is essentially meant to provide for contingencies and for longterm needs like retirement; regular portfolio disclosures on the other hand can enable investors to make timely investment decisions.

4. Flexibility in altering the asset allocation

As was stated earlier, offerings in both the mutual funds segment and ULIPs segment are largely comparable. For example plans that invest their entire corpus in equities (diversified equity funds), a 60:40 allotment in equity and debt instruments (balanced funds) and those investing only in debt instruments (debt funds) can be found in both ULIPs and mutual funds.

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If a mutual fund investor in a diversified equity fund wishes to shift his corpus into a debt from the same fund house, he could have to bear an exit load and/or entry load.

On the other hand most insurance companies permit their ULIP inventors to shift investments across various plans/asset classes either at a nominal or no cost (usually, a couple of switches are allowed free of charge every year and a cost has to be borne for additional switches).

Effectively the ULIP investor is given the option to invest across asset classes as per his convenience in a cost-effective manner.

This can prove to be very useful for investors, for example in a bull market when the ULIP investor's equity component has appreciated, he can book profits by simply transferring the requisite amount to a debt-oriented plan.

5. Tax benefits

ULIP investments qualify for deductions under Section 80C of the Income Tax Act. This holds good, irrespective of the nature of the plan chosen by the investor. On the other hand in the mutual funds domain, only investments in tax-saving funds (also referred to as equity-linked savings schemes) are eligible for Section 80C benefits.

Maturity proceeds from ULIPs are tax free. In case of equity-oriented funds (for example diversified equity funds, balanced funds), if the investments are held for a period over 12 months, the gains are tax free; conversely investments sold within a 12-month period attract short-term capital gains tax @ 10%.

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Similarly, debt-oriented funds attract a long-term capital gains tax @ 10%, while a short-term capital gain is taxed at the investor's marginal tax rate. Despite the seemingly similar structures evidently both mutual funds and ULIPs have their unique set of advantages to offer. As always, it is vital for investors to be aware of the nuances in both offerings and make informed decisions.

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What is MUTUAL FUND?

A mutual fund is a managed group of owned securities of several corporations. These corporations receive dividends on the shares that they hold and realize capital gains or losses on their securities traded. Investors purchase shares in the mutual fund as if it was an individual security. After paying operating costs, the earnings (dividends, capital gains or loses) of the mutual fund are distributed to the investors, in proportion to the amount of money invested. Investors hope that a loss on one holding will be made up by a gain on another. Heeding the adage "Don't put all your eggs in one basket" the holders of mutual fund shares are able collectively to gain the advantage by diversifying their investments, which might be beyond their financial means individually.

A mutual fund may be either an open-end or a closed-end fund. An open-end mutual fund does not have a set number of shares; it may be considered as a fluid capital stock. The number of shares changes as investors buys or sell their shares. Investors are able to buy and sell their shares of the company at any time for a market price. However the open-end market price is influenced greatly by the fund managers. On the other hand, closed-end mutual fund has a fixed number of shares and the value of the shares fluctuates with the market. But with close-end funds, the fund manager has less influence because the price of the underlining owned securities has greater influence.

Types of mutual funds

Most funds have a particular strategy they focus on when investing. For instance, some invest only in Blue Chip companies that are more established and are relatively low risk. On the other hand, some focus on high-risk start up companies that have the potential for double and triple digit growth

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finding

mutual

fund

that

fits

your

investment

criteria

and

style

is

important.

Types of mutual funds are:

Value stocks

Stocks from firms with relative low Price to Earning (P/E) Ratio usually pay good dividends. The investor is looking for income rather than capital gains.

Growth stock

Stocks from firms with higher low Price to Earning (P/E) Ratio usually pay small dividends. The investor is looking for capital gains rather than income.

Based on company size, large, mid, and small cap

Stocks from firms with various asset levels such as over $2 Billion for large; in between $2 and $1 Billion for mid and below $1 Billion for small.

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Income stock

The investor is looking for incomes which usually come from dividends or interest. These stocks are from firms which pay relative high dividends. This fund may include bonds which pay high dividends. This fund is much like the value stock fund, but accepts a little more risk and is not limited to stocks.

Index funds

The securities in this fund are the same as in an Index fund such as the Dow Jones Average or Standard and Poor's. The number and ratios or securities are maintained by the fund manager to mimic the Index fund it is following.

Enhanced index

This is an index fund which has been modified by either adding value or reducing volatility through selective stock-picking.

Stock market sector

The securities in this fund are chosen from a particular marked sector such as Aerospace, retail, utilities, etc.

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Defensive stock

The securities in this fund are chosen from a stock which usually is not impacted by economic down turns.

International

Stocks from international firms.

Real estate

Stocks from firms involved in real estate such as builder, supplier, architects and engineers, financial lenders, etc. Socially responsible

This fund would invest according to non-economic guidelines. Funds may make investments based on such issues as environmental responsibility, human rights, or religious views. For example, socially responsible funds may take a proactive stance by selectively investing in environmentallyfriendly companies or firms with good employee relations. Therefore the fund would avoid securities from firms who profit from alcohol, tobacco, gambling, pornography etc.

Balanced funds The investor may wish to balance his risk between various sectors such as asset size, income or growth. Therefore the fund is a balance between various attributes desired.

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Tax efficient

Aims to minimize tax bills, such as keeping turnover levels low or shying away from companies that provide dividends, which are regular payouts in cash or stock that, are taxable in the year that they are received. These funds still shoot for solid returns; they just want less of them showing up on the tax returns.

Convertible Bonds or Preferred stock which may be converted into common stock.

Junk bond

Bonds which pay higher that market interest but carry higher risk for failure and are rated below AAA.

Mutual funds of mutual funds

This fund that specializes in buying shares in other mutual funds rather than individual securities.

Closed end This fund has a fixed number of shares. The value of the shares fluctuates with the market, but fund manager has less influence because the price of the underlining owned securities has greater influence.

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Exchange traded funds (ETFs)

Baskets

of securities (stocks or bonds) that track highly recognized indexes. Similar to mutual funds, except that they trade the same way that a stock trades, on a stock exchange.

Mutual fund ranking

Funds are ranked based upon their performance as a whole and performance against their peers by such companies as Morning Star which has an industry recognized rating system for mutual funds. They have a one-to-five star system in which five stars is the best. Usually the higher the rank, the higher the quality of the fund. For example Morning Star rates mutual funds from 1 to 5 stars based on how well they've performed (after adjusting for risk and accounting for sales charges) in comparison to similar funds. Within each Morning Star Category, the top 10% of funds receive 5 stars and the bottom 10% receives 1 star. Funds are rated for up to three time periods: three-, fiveand 10- years and these ratings are combined to produce an overall rating. Funds with less than three years of history are not rated. Ratings are objective, based entirely on a mathematical evaluation of past performance. The ratings are a useful tool for identifying funds worthy of further research, but should not be considered signals to buy or sell.

History of Mutual Funds (Investment Trusts)

Mutual funds started to get popular in the 1980s - 90s when investors saw their returns skyrocket from these investment vehicles. The idea of pooling assets together for investment purposes, and generating return from these pools of investments has been around since the 19th century. Some possible origins of mutual funds are:

Launch of closed-end investment firms by King William I in 1822 in Holland

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Creation of an Investment Trust by Adriaan van Ketwich in 1774. His fund was known as "Eendragt Maakt Magt" which means "Unity Creates Strength." Van Ketwich believed that by pooling investments together and minimizing risk, more of the poor and middle class investors will be encouraged to also invest.

Mutual funds or investment trusts were created in 1849 in Scotland and in Scotland in the 1880s. The first closed-end mutual fund was created in USA by Boston Personal Property Trust in 1893. The first modern mutual fund known as the Alexander Fund was created in the state of Pennsylvania in 1907.

The Modern Mutual Fund

The first modern mutual fund was created in 1924 in Boston, Massachusetts. Known as Massachusetts Investors' Trust, the fund went public in 1928 and eventually led to the founding of MFS Investment Management firm. Some of the innovators involved in this transformation included Richard Paine, Richard Saltonstall and Paul Cabot.

By the year 1929, there were 700 closed-end funds with 19 open-ended mutual funds. Thanks to the 1929 stock market crash, closed-end funds lost their popularity and small open-end funds started to skyrocket. In 1933, the Securities and Exchange Commission (SEC) was created to protect the investments of consumers in mutual funds. Mutual funds must be registered with the Securities and Exchange Commission (SEC) before they can be invested into.

The 1950s saw the popularity of mutual funds expand even more. The open-ended funds grew from just 19 in 1929 to over 100 funds by 1954. In the 1960s, we witnessed the growth of aggressive growth mutual funds. This meant billions of more dollars being invested by Americans.
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In 1971, William Fouse and John McQuown working at the Wells Fargo bank created the first index mutual fund which would then grow into The Vanguard Group known for its low price index mutual funds. Furthermore, the 1970s also witnessed the growth in the popularity of no-load funds.

ULIP vs. Mutual Fund

Unit Links Insurance Plan (ULIP) and Mutual Fund (MF) are the two most preferred options for a part time investor to invest into equity. But how do we decide which one should we go for. Though it is very easy to decide, people tend to confuse themselves most of the time. This article talks about some points that you need to consider while deciding which option we want to take. Mutual Funds are pure investments. ULIPs are combination of Insurance and Investment. First question that we need to answer while buying ULIP is - Do I need to buy insurance? 1) Does the person seeking insurance have any financial liabilities? 2) If something happens to the person, Is there someone who can be in a financial crisis? If the answer to the above two question is yes, I NEED TO BUY INSURANCE. Now let us compare ULIP and MF based on certain well known facts:

1) Insurance

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ULIPs provide you with insurance cover. MFs dont provide you with insurance cover.

A point in favor of ULIPs. But let me tell you that you dont get this insurance cover for free. Mortality charges (i.e. the price you pay for the insurance cover) get deducted from your investment.

2) Entry Load

ULIPs generally come with a huge entry load. For different schemes, this can vary between 5 to 40% of the first years premium. MFs do not have any entry load. Here MFs have a huge advantage. If we consider a conservative market return of about 1015% you may get a zero percent return in the first year in case of ULIPs.

3) Maturity ULIPs generally come with a maturity of 5 to 20 years.

Tax saving MF ( Popularly called as Equity Linked Saving Scheme or ELSS) come with a lock-in period of 3 years. Other MFs dont have a lock-in period. Again MFs have advantage over ULIPs. ULIPs do allow you to take money out prematurely but they also put penalties on you for doing that.

4) Compulsion of Investing

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ULIPs would generally make you pay at least first three premiums. MFs dont have any compulsion on future investments.

If you have invested in a MF this year, and in the next year you dont have enough income or money to do investments you can decide not to make any investments. Also if you notice that the MF that you invested in is not giving good returns as compared to some other Funds scheme, you can decide to invest in some other MF.

5) Tax Saving Both the ELSS (only one product of MF) and ULIP come under 80C and can save you tax. Returns in the both form of investments are tax free.

6) Market exposure

ULIPs give you both moderate and aggressive exposure to equity market Debt and Liquid MF let invest with low risk, but dont give you tax benefit.

ULIPs need not be aggressive in equity exposure. That is ULIPs need not keep more that 60% of their funds in equity market. ULIPS also allow changing your equity market exposure. Thus it can help you time the market and still give you tax savings.

If a MF has a less than 60% exposure to equity market the returns from it are not tax free. Thus you dont get to take a conservative stand on returns.

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7) Flexibility of time of redemption

ULIP will get redeemed on maturing. Premature redemption is allowed with some penalty. In MF premature redemption is not allowed. For an open ended scheme one can redeem the MF anytime after maturity

This is mainly useful if the market is down at the maturity time of the investment. In case of ELSS you can wait till the market comes up again and then redeem them. ULIP scheme wont allow you to wait.

Thus, according to my opinion 1) If you wish to take a aggressive exposure to equity market, go ahead any buy MF. ULIP wont be able to give you similar returns.

2) If you think you are not disciplined enough to make regular investments and need a whip to make you invest, invest in ULIP.

3) If you want to take a low exposure to equity market and still get tax free returns, invest in ULIP but make sure that fund you are invested is conservative fund. 4) If you want Insurance cover and also good return on investment. I would suggest that you invest in MFs and take a term plan.

The table below shows the some of the common differences among ULIPs and MUTUAL FUND

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ULIPs
Investment amounts Determined by the investor and can be modified as well No upper limits, expenses determined by the insurance Expenses Portfolio disclosure Modifying asset allocation company Not mandatory*

Mutual Funds
Minimum investment amounts are determined by the fund house Upper limits for expenses chargeable to investors have been set by the regulator Quarterly disclosures are

mandatory Generally permitted for free or Entry/exit loads have to be at a nominal cost Section 80C benefits are available on all ULIP investments borne by the investor Section 80C benefits are available only on investments in tax-saving funds

Tax benefits

Difference between ULIPs and Mutual Funds

Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual funds in terms of their structure and functioning. As is the
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cases with mutual funds, investors in ULIPs are allotted units by the insurance company and a net asset value (NAV) is declared for the same on a daily basis.

Similarly ULIP investors have the option of investing across various schemes similar to the ones found in the mutual funds domain, i.e. diversified equity funds, balanced funds and debt funds to name a few. Generally speaking, ULIPs can be termed as mutual fund schemes with an insurance component.

However it should not be construed that barring the insurance element there is nothing differentiating mutual funds from ULIPs.

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TALIC (Tata AIG Life Insurance Company)

Tata AIG Life Insurance Company provides life insurance solutions to individuals, groups and corporate clients in India. The company was established in 2001. Tata Sons holds a 74 per cent stake in the company with American International Group Inc (AIG) holding the balance 26 per cent. AIG is the worlds leading international insurance and financial services organisation.

Areas of business

The Company provides insurance solutions to individuals, groups and corporate houses.

Life insurance solutions: Endowment and term, pension and group life, money back and whole-life plans. Micro insurance: Customised to the needs of underprivileged sections of society. Health insurance

Location The headquarter of Company is in Mumbai and has some 200 offices in the country.
Tata AIG Life Insurance Company Limited, which is a joint venture between Tata Group and American International Group, Inc. (AIG), offers a number of standard and custom-made life insurance policies. Tata is one of the oldest and leading business groups of India. Tata Group has had a long association with India's insurance sector being the largest insurance company in India prior to the nationalization. American International Group, Inc (AIG) is the leading U.S. based international insurance and financial services organization.

VISION
To be the fastest growing Life Insurance Company in India, measured by annualized premium growth, procuring persistent business, delivering first class customer service, adding shareholder values.

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THE TATA GROUP

Tata is a rapidly growing business group based in India with significant international operations. Revenues in 2007-08 are USD 62.5 billion (around Rs. 251,543 crores), of which 61% was from business outside India. The Groups Net Profit for 2007-08 is USD 5.4 billion (around Rs. 21,578 crores). The Group employs around 350,000 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. The business operations of the Tata Group currently encompass seven business sectors - Communications and Information Technology, Engineering, Materials, Services, Energy, Consumer Products and Chemicals. The Group's 28 publicly listed enterprises have a combined market capitalization of around $60 billion, among the highest among Indian business houses, and a shareholder base of 2.9 million. The major companies in the Group include Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels, Tata Teleservices and Tata Communications.

American International Group, Inc. (AIG)

American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.

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Company Overview
Tata AIG Life Insurance Company Ltd. offers life insurance products to individuals, associations, and businesses. It offers insurance products for children, adults, and retirement planning. The company also provides corporate life insurance products that include credit life, group pensions, and workplace solutions, as well as insurance products for low-income socio economic strata. In addition, it offers a unit-linked life insurance plan (ULIP) for childrens education. The company was incorporated in 2000 and is based in Mumbai, India. Tata AIG Life Insurance Company Ltd. operates as a subsidiary of Tata Sons Limited. Peninsula Towers, 6th floor Peninsula Corporate Park Ganpatrao Kadam Marg Lower Parel Mumbai, 400 013 India Founded in 2000 Phone: 91 22 5651 6000 Fax: 91 22 5655 0711

Key Executives

Mr. Suresh Mahalingam (Managing Director) Mr. Sharavan Kumar(Chief Financial Officer) Mr. Ivan Chak (Head of Life Profit Centre)

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Organizational Structure of TATA AIG LIFE INSURANCE

Board of Directors CEO/MD/CO O VP ACTUA RY VP SYSTEM AND OPS VP CORP DIRECT TRNG OR ALT CHALS VP HR

CFO VP-Marketing / sp mktg

AVP Rural and Social

VP Bank assuran ce ASST. Dir .Cor. Ag and BROKING HEAD BROKIN G

DIRECT VP-GRP OR Mkt AGENC /pension Y AVP Dist. operati VP ons Distributio n Training

AVPS--Zone Business Heads East, West, North and South

HEAD Corp Agcy

Rural and Social Team

ZONE Heads Alt. Chnls

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Senior Leadership
Suresh Mahalingam Managing Director Shweta Shahani Secretary

S. Bharat Head- BA & BSP

Manish Lalwani Head- UM

Viajy Sinha HeadAST, ACD, Best Practices & DSF

M. Anand HeadAlternate Channels, Strategic Alliances & Credit Life

Heerak Basu Chief Appointed Actuary

Vikrant Ramachandra Head-Brand Marketing

S. Mahesh HeadOperations & Systems and Worksite Marketing

Subhayu Mishra HeadCorporate Commun ocations & Channel Marketin g

Aditya Kanade Head- Internal Audit

Neeta Joshi Head-Hr, Training & Capability Development

Saravana Kumar Ananthan Chief Investments Officer

Vijay Athrey Head-Rural, Social & Micro Insurance

V. H. Harikrishnan AVP-Chief Operating Officers Office

Vikas Bagga Head-Employee Benifits, Corporate Pension & New Strategic Business Initiative

Mitali Dalal Head Corporate Planning

Vivek Sood Chief Financial Officer

Rajeev Dewal Head-Leagl & Compilance

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Agency Structure

Managing Director

Agency Sales*
BA Vertical
BSP Vertical

Agency Support*
UM Vertical
DSF Vertical AST Vertical ACD Vertical BPO Vertical

S BHARAT

MANISH LALWANI

VIJAY SINHA

*BA- Business Associate BSP- Business Service Partners UM- Unit manager DSF- Direct Sales Force

*AST- Agency Sales Training ACD- Agency Channel Development BPO- Best Practices Office 69 | P a g e

Alternate Channels Structure

M. Anand HEAD Alternate Channel Sales Jennifer Gonsalves Secretary- Alternate Channels

Sandeep Ghosh

Joydeep Acharya

Ashish Sardesai

Subhankar SenGupta

Reynold Dsouza

Vedanarayan Seshadri

Joy Banerjee

Partners Managed UBI OSCB Muthoot Tata Motors Tata Capital

Partners Managed SCIB Nulook SMC Insurance Others(N/E/S)

Partners Managed Karvy Bajaj Religare Chola DBS Other BroCA

Partners Managed DOH A IIFL Others

Alternate Channels Credit Life Strategic Planning Training & Best Practices

Sanjeev Priyadershi

Sachin Mishra

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Partners Managed Unicon & others

Partners Managed Apporva Insurance

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Market Share of Private

players YDT FY-2009

Company Name ICICI Prudential SBI Life Bajaj Allianz Reliance Life Birla Sun Life HDFC Standard Max NewYork Life Kotak Mahindra OM Others Tata Aig Met Life Aviva Life ING Vyasa Market share 21.60% 14.80% 13.20% 9.90% 8.50% 8.00% 5.60% 4.00% 3.50% 3.30% 3.30% 2.30% 2.20%

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MARKET SHARE OF ALL INSURANCE PLAYERS

FY 2010
Company Name LIC ICICI Prudential Birla Sun Life Bajaj Allianz SBI Life HDFC Standard Tata Aig Max NewYork Life Aviva Life Kotak Mahindra OM ING Vyasa Reliance Life Met Life Market share 82.30% 5.63% 2.56% 2.03% 1.80% 1.36% 1.29% 0.90% 0.79% 0.51% 0.37% 0.25% 0.21%

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Conclusion
Yes I am talking about Unit Linked Insurance Plans (ULIPS), which are currently the most popular of all insurance schemes available in the market. But why, as someone would rightly point out, is an ULIP being discussed in an investors guide edition purely dedicated to the mutual funds (MFs)? ULIPs and MFs have locked horns against each other for quite some time now. The recent debate roots from scrapping of the entry load from the MF schemes, closely followed by Insurance regulatory $ Development Authority (IRDA) capping the ULIP charges. But why, after all, are MFs and ULIPs, up against each other?

The answer, though simple is highly complex to deal with. And the answer lies in the manner in which the ULIPs are sold. Investors here are perceived to believe that they are buying an insurance plan with a built-in-add-on feature of mutual l fund investments. Thus prima face this product seems an attractive buy one get one free offer. But this perception goes for a toss when the investor realizes that the element of insurance is just miniscule .And this revelation pops only after the scheme is bought.

Most ULIPs available in the market today offer an insurance cover in the range of 5-10 times the amount of annual premium. Thus, for an investor paying a premium of rs 20, 000 per annum, the embedded value of insurance is simply a lakh to two lakh rupees. In a stark contrast, a traditional pure term insurance plan can fetch an insurance cove of about rs 50 lakh with the same amount of premium. Moreover, unlike a traditional endowment or money-back policy, ULIP does not pay back the amount of sum assured if the holder survives through the policy term. The amount receivable on maturity is purely the fund value whose growth is directly linked to the markets. There is thus

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a very thin line of distribution between an MF and a ULIP as far as the structure and investment strategies are concerned.

Another concern surrounding the ULIP is the fact that if at the time of maturity of the policy, the markets are sailing in troubled waters, investors have no option but to accept the returns as determined by the markets then, unlike an MF, they do not have an option to hold on to the is investment until the markets recover.

Thus, though MFs and ULIPs are said to be similar, the similarity is restricted to the product structure and investment strategies. The point where this similarity ends, the dissimilarities begin.

The starting point of dissimilarity is the extend of charges levied by both these products. An ULIP is normally loaded with a number of charges ranging from premium allocation charges to fund management fees to policy administration charge, mortality charges, top-up premium charge, switch-over charges and so on. Of these, the premium allocation charge which usually varies for about 10% to 100%, is the prime source of income for insurance distributors and is highly criticized for robbing the investor of this invest-able surplus.

On the other hand, the prime source of revenue in case of an MF is the fund management charge, which is currently capped at 2.5% per annum. There is also a small percentage of penal charge, ranging from 0.5 %- 1% called as exit loads, levied in case of premature withdrawals. Premature withdrawals here generally refer to withdrawals within one year from the date of investments. The net amount invested in thus is much higher in case of an MF vis--vis a ULIP. However, having said that, it would be wrong to conclude that ulip is a bad product and that of MF scores over an ulip at all times.

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ULIPs are known to be tax-friendly since both the investments and the returns are fully exempt from tax. Moreover, ULIPs offer flexibility to switch between the equity and the debt investments, which are currently absent in case of MF. This switch over, though, attracts some costs. But then Ulip is beaten by an MF when it comes to liquidity, as an early exit from an ulip is nothing less than suicidal. To prove this thesis, ETIG analyzed two investment options- 1 in an ulip and other in MF to analyse the returns from these two competing products over a period of time. And the results are investing in deeds. Under both the options we have assumed the age of the investor to be 30yrs. And annual amount of investment is Rs. 20000/- for 20yrs.

Under the 1st investment option we have assumed a Ulip scheme with a 100% exposure to equity markets. Assuming the risk cover to be 5 times first premium instalment, the sum assured is Rs. 100000/-. As far as charges are concerned, we have assured a premium allocation charge (PAC) of 20% for the 1st 2 years and 10% for the 3rd year. Thereafter, PAC is uniform at 2% per annum throughout the policy term. Policy administration is fixed at rs 60/- per month throughout the policy term while mortality charge is based on the policy holder and the amount of risk cover. The same thus increases with the age of the policy holder during the policy term. Another charge factor in is the fund management fees, which is 1.5% p.a. and gets deducted from the fund value on a regular basis. Thus in the 1st 3 yrs of the policy, almost 25% of annual premium is deducted towards these different charges. Under the second investment option, the premium paid towards a pure term insurance plan of rs 1 lac is mere rs 417 p.a. while investment in equity mutual fund will attract an annual fund management charge of about 2.5% of the fund value. (While we have assumed a pure term cover of rs 1lac, investors would do well to note that a pure term plan with such small cover is

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currently not available in the market. We have assumed the same top make investments under both the option comparable.)

Mutual Fund Vs Unit Linked Insurance Plan

Policy Term(Years) 3 5 7 10 15 20 Investment or Premium 60,000 1,00,000 1,40,000 2,00,000 3,00,000 4,00,000 Total Charges Mutual Fund 4,537 10,599 19,402 38,403 88,480 1,67,392 ULIP 14,309 19,675 26,671 40,713 75,816 1,30,269 Absolute net return @ 8% p.a Mutual Fund 65,199 1,14,628 1,69,436 2,63,028 4,55,150 7,03,874 ULIP 53,504 1,01,434 1,55,759 2,50,869 4,54,064 7,30,080

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Sample of Financial Planning

There are many tools and equipments through which financial advisors do the financial planning in TALIC. One in which is Your Dreams and Aspirations form. The format is given below in picture:

As the financial planning is done by me of many peoples lets explain this through one of them as an example:-

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YOUR DREAMS AND ASPIRATIONS

Name: Birth:
SPECIAL EVENTS TAX EFFICENCY CHILDS EDUCATION CHILDS MARRIAGE CREATING WEALTH RETIREME NT

Date of

PROTECT YOUR DREAMS AGAINST:PREMATURE DEATH, CRITICAL ILLNESS & ACCIDENT

AM OU NT RE QUI RE D

___________ AGE YEARS EVENTS ___________

Understanding Your Goals:

1. Why is this most important? 2. CONFIRM: Whom, When & How Much? 3. How would you feel if achieved? 4. Consequences of doing nothing: 5. Current provision: 6. What could stop you from saving your goal?

GOAL 1

GOAL 2

GOAL 3

Family MembersName Dependent

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Relationship with Client

Age

Monthly Income/Expenses & INCOME (A) EXPENSES (B) Investment:

Sources Occupatio n Investme nt Rental Spouse Others Total Amount Category Housing/ Rent Loans Household Expenses Regular Savings Others Total Amount Option

INVESTMENT Bank/Post Office Funds Mutual Equities Insurance Others Total Rs. Rs. Regular Savings Cor pus

Total Monthly Disposable Income: (A-B) From your lump sum how much are you willing to invest to achieve your goals? Risks & Rewards: Investment Your Preferences Secure 0 Stable 30-50 Aggressive 50-80

Equity 100

Proposed Solutions:
Goal Solution Amount Premium frequency

Customer Decisions:
Goal Solution Amount Premium frequency

Agent Signature: Client Signature: Agent Code: Date:

Referrals Name :

Relationship

Contact No.

Address

Next Review Date:

Reasons

Date

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It is the format of DNA by which an advisor does a financial planning of the customer. In order to do these planning first they call to the customer and take suitable time according to customer then they fix meeting time and place. Advisors go there and asked simple questions according to the format and realize to the customer that how proper use and investment is necessary for the future growth and fulfilment of future necessities. They realize to the customer the importance of money saving. How small savings of money in present makes his future bright? How he fulfil his/her all dreams in future. How much more money he/she required for fulfilment of future necessities? What is current position of customer and how much he/she required in future for child education, marriage, and retirement and for future needs (home, car etc.)

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Questionnaires
Retirement Planning
1. According to you, approximately how many people in India have the benefit of old age security provisions like Gratuity and provident fund? Around Rs 1 Crore Around Rs 2Crore Around Rs 3 Crore Around Rs 4 Crore

2. In India, what is the average life expectancy of birth as per 2001 census? Around 54 years. Around 64 years. Around 74 years. Around 84 years.

3. How many years do you have for retirement? Please Specify......................... 4. What According to you will be an ideal monthly income to live a comfortable retirement life?

Around 10000/ month. Around 25000/ month Around 40000/ month Around 50000/ month Please Specify.........................

5. How much money do you currently save per month, exclusively for your retirement funding?

Around 1000/ month. Around 2000/ month. Around 3000/ month. Around 4000/ month. ............... Please specify amount.

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None

6. Would you be interested in knowing more about ,innovative ways to provide for comfortable retirement? Yes Not now later No

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Awareness on Need Based Investments

1. On the following, what at present are your investment needs? To build a corpus for retirement. To save for childrens education /marriage. To provide for medical emergencies. To provide for families financial security To create wealth. all of the above

2. Which section of the Income tax Act promotes savings for the above need? Section 80C Section 80CCC Section 80D Section 10(10)D

3. What is the ceiling for investments under Section 80C? Rs 10000 Rs 30000 Rs 100000 Others (Please specify)....................

4. Which of the following are allowed as investment for tax saving under Section 80C? Contribution to Provident Fund Life Insurance Premium Investment in Public Provident Fund All of the above.

5. If you had Rs 10000, where would you prefer to invest it? Mutual Funds Fixed Deposits Direct Equity

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Life Insurance Post Office Deposits

6. Would you like to know more about an investment which will help you achieve your financial goal in tax-effective manner? Yes No Not yet.

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Awareness of Critical illness & Medical Cost

1. In your opinion which is the #1killer disease in India today? Heart Attack Cancer Stroke

2. Do you agree that more Indian are suffering from the above critical illnesses? Yes No

3. What would be the total cost of critical illness treatment in private hospital today? Up to Rs100000. Rs 100000-300000 Above RS 300000

4. What would be the cost of critical illness treatment in a private hospital in 2010? Up to Rs100000. Rs 150000-400000 Above RS 400000

According to some relevant studies: A.85%of the working population does not have Rs 500000 as instant cash. B.14% has Rs 500000 instantly But will subsequently face a financial crunch. C. Only 1%can afford to spend Rs500000 instantly and easily. 5. Which category would you fall into if you were to suffer from any critical illness? Category A Category B Category C

6. Which do you think is the best and most appropriate way to overcome this financial problem?
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Liquidate Property/Assets Money form family/friend/charity Lifetime Savings Critical illness/Medical Insurance

7. Would you like to save for unforeseen circumstances? Yes No

8. Are you aware of tax benefits you can avail of under Sec 80D? Yes No

9. Have you utilised the benefits of tax waiver on Rs 15000 spent on Health Insurance Under Sec 80D? Yes No

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