Investment Analysis of Birla Sun Life Insurance

BY: VIMAL KUMAR BHATI

Introduction

Established in 2000.

joint venture - Aditya Birla Group and Sun Life Financial Inc.

Known for its innovation and creating industry benchmarks.

Won various Awards in the Industry.

Vision

To be a leader and role model in a broad based and integrated financial service business.

Mission

To help people mitigate risks of life, accident, health, and money at all stages and under all circumstances. Enhance the financial future

of our customers including enterprises.

Values

Integrity

Commitment

Passion

Seamlessness

Speed

Literature

Jeffrey Brown, Nellie Liang, and Scott Weisbenner (2014), A key policy implication is that the number and mix of investment options will have an important effect on overall asset allocation

Quazi Sagota Samina (2012), General insurance industries in Bangladesh which gives general insurance only for 1 year, and therefore the industries have to invest those fund in short term instruments which are marketable means easily sellable in market.

Literature

Arkell (2011), A part of premium income the companies use for making payment of reinsurance premium. And a part companies use for investment purpose. So among the various uses of premium, investment is the only utilization which provides positive income in future for the company.

Janowicz-Lomott (2011), As maximizing risk adjusted returns while meeting regulatory requirements on its assets, investment returns preserve the solvency, both regulatory and economic, of the insurance company, earn the return commensurate with the use of its capital and enable it to continue to underwrite profitable insurance business.

Methodology

Data Source:

Research Approach:

Data completion and Analysing:

Limitation

1. Time paucity

2. Analysis is limited to the extent of 10 product

3. Not possible to get in depth information

4. Open and close ended fund

Products

Assure Fund

Protector Fund

Enhancer Fund

Magnifier Fund

Super 20 Fund

Platinum Premier Fund

Titanium III Fund

Pure Equity

Liquid Plus

Liquid Plus

Assure Fund

Objective: To provide Capital Protection, safety and liquidity.

Strategy: Investment into fixed interest securities having short-term

maturity

Corporate Debt33%

MMI, De-posits, CBLO

& Others67%

Allocation of fund

Corporate Debt

MMI, Deposits, CBLO & Others

Protector Fund

Objective: persistence returns and creating long term equity portfolio with minimum risk .

Strategy: invest in fixed income securities and exposure to equity with low level of risk.

0.2609

36.65%

27.02%

9.79%

GOVERNMENT SECURITIES Corporate Debt

EQUITY MMI, Deposits, CBLO & Others

Enhancer Fund

Objective: Enhanced returns over a medium to long term period by maintaining good balance

between risk and return.

Strategy: Diversified equity portfolio and seek to earn regular return on fixed income portfolio.

26.09%

36.65%0.45%

27.02%

9.79%

Allocation of fund

GOVERNMENT SECURITIES Corporate Debt

Securitised Debt EQUITY

MMI, Deposits, CBLO & Others

Magnifier Fund

Objective: To maximize wealth by actively managing a diversified equity portfolio.

Strategy: Invest in high quality equity security to provide long term capital appreciation.

GOVERN-MENT SE-CURITIES;

0.0173; 2%

Corporate Debt;

0.0269; 3%

EQUITY; 0.9359;

94%

MMI, De-posits, CBLO

& Others; 0.0199; 2%

GOVERNMENT SECURITIES Corporate Debt

EQUITY MMI, Deposits, CBLO & Others

Super 20 Funds

Objective: To generate long-term capital appreciation by making investments in fundamentally strong and liquid large cap companies.

Strategy: To build and manage a concentrated equity portfolio of 20 fundamentally strong large cap stocks in terms of market capitalization.

EQUITY; 92.03%

MMI, Deposits, CBLO & Others; 7.97%

Platinum Premier Fund Objective: To optimize the participation in an actively managed

well-diversified equity portfolio of fundamentally strong blue chip companies and using debt instruments and derivatives to lock -in

capital appreciations.

Strategy: building and actively managing a well-diversified equity portfolio of value & growth driven fundamentally strong blue chip companies and in fixed income side investment in government securities, high rated corporate bonds and money market instruments.

1.73%

2.69%

93.59%

1.99%

GOVERNMENT SECU-RITIES

Corporate Debt

EQUITY

MMI, Deposits, CBLO & Others

Titanium III Fund

Objective: To provide Capital Protection, at a high level of safety and liquidity

Strategy: Return with low level of risk through investment into fixed interest securities having short-term maturity.

10%

20%

68%

2%

GOVERNMENT SECU-RITIES

Corporate Debt

EQUITY

MMI, Deposits, CBLO & Others

Pure Equity

Objective: The objective of the fund is to provide long-term wealth creation by actively managing portfolio The objective of the fund is to provide long-term wealth creation by actively managing portfolio

Strategy: The equity investment strategy will revolve around building and actively managing a well-diversified equity portfolio of value &

growth driven fundamentally strong companies by following a investment approach

96.61%

3.09%

EQUITY MMI, Deposits, CBLO & Others

Liquid Plus Fund

Objective: To provide superior risk-adjusted returns with low volatility at a high level of safety and liquidity through investments in high quality short term fixed income instruments - upto1 year maturity

Strategy: The fund will invest in high quality short-term fixed income instruments – up to 1-year maturity

100%

MMI, Deposits, CBLO & Others

1

Pension Growth Fund

Objective: This fund option helps build yourcapital and generate better returns at moderate level of risk, over a

medium or long-term period through a balance of investment in equity and debt.

Strategy : Generate better return with moderate level of risk through active management of fixed income portfolio and focus on creating long term equity portfolio

29.34%

34.81%

18.42%

17.44%

Allocation of fund

GOVERNMENT SECURITIES Corporate Debt

EQUITY MMI, Deposits, CBLO & Others

Conclusion

Different product of BSLI has different features , product like Assured fund in this the amount are invested in high quality short term maturity securities, whereas product like Pure Equity the fund are invested for long term in blue chip companies by diversifying the investment. Therefore BSLI invest the fund according to the requirement of the customer, if the customer has chooses the fund like liquid plus equity then the BSLI will invest in those assets which having low maturity like MMI and short term debt which secure the money of investor.

Bibliography

Birlasunlife.com

Ssrn.com

Doaj.org

business.illinois.edu

www.studymode.com 

Thank You