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A brief history of the Insurance sector

The insurance sector was opened up for private participation with the enactment of the

Insurance Regulatory and Development Authority Act, 1999. While permitting foreign

participation in the ventures set up by the private sector, the government restricted

participation of the foreign joint venture partner through the FDI route to 26 per cent of the

paid-up equity of the insurance company. The objective of the liberalization was to expand

the scope and ambit of Insurance both Life and General in India.

Since opening up, the number of participants in the sector has gone up from six insurers

(including the Life Insurance Corporation of India, four public sector general insurers and the

General Insurance Corporation (GIC) as the national re-insurer) in the year 2000 to 37

insurers operating in the life, non-life and re-insurance segments as on December 2007. 26

insurance companies in the private sector have been granted registration in the country in

collaboration with established foreign insurance companies from across the globe.

As per industry estimates, out of 78 per cent Indian households that are aware about life

insurance, only 24 per cent own a policy. A combined ICICI Prudential Life Insurance and

IMRB survey, conducted in three metros Delhi, Mumbai and Chennaishows that

households with income of Rs. 35000 on an average have two policies. Further, 79 per cent

people prefer life insurance over other tax saving instruments like post office savings, Equity-

Linked Saving Schemes and fixed deposits.

Since end of 2000 when insurance was privatized, Life Insurance Company and The

distribution network expanded significantly.

Until 2000, the general insurance sector had only four public sector players. The public

enterprises Oriental Insurance Company of India (OIC), National Insurance Company of

India (NIC), and New India Assurance Company of India (NIA) and United Insurance

Company of India (UII) -- were located in Delhi, Kolkata, Mumbai and Chennai respectively.

They primarily focused on their immediate regions and there was little competition, leading

to a near monopolistic environment. On the whole, the sector achieved double-digit growth

and this trend is expected to persist over the medium term.

ABOUT IRDA (Insurance Regulatory and Development Authority Act)

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Insurance sector has been opened up for competition from Indian private insurance

companies with the enactment of Insurance Regulatory and Development Authority Act,

1999 (IRDA Act).Insurance Regulatory and Development Authority (IRDA) was established

on 19th April 2000 to protect the interests of holder of insurance policy and to regulate,

promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way

for the entry of private players into the insurance market which was hitherto the exclusive

privilege of public sector insurance companies/ corporations. Under the new dispensation

Indian insurance companies in private sector were permitted to operate in India with the

following conditions:

Company is formed and registered under the Companies Act, 1956; The aggregate holdings of equity shares by a foreign company, either by itself or

through its subsidiary companies or its nominees, do not exceed 26%, paid up equity

capital of such Indian insurance company;

The company's sole purpose is to carry on life insurance business or general insurancebusiness or reinsurance business.

The minimum paid up equity capital for life or general insurance business is Rs.100crores.

The minimum paid up equity capital for carrying on reinsurance business has beenprescribed as Rs.200 crores.

The Authority has notified 27 Regulations on various issues which include Registration of

Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of

Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of

policy holders' interest etc. Applications were invited by the Authority with effect from 15th

August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The

Authority has its Head Quarter at Hyderabad.

1.2 PROFILE OF THE COMPANY

HOUSING DEVELOPMENT FINANCE CORPORATION:

HDFC was started by Hasmukh Bhai Parekh in 1977 with the formation of Malhotra

Committee. HDFC was incorporated with the primary objective of meeting a social need that

of promoting home ownership by providing long-term finance to households for their housing

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needs. HDFC was promoted with an initial share capital of Rs. 10 crores. HDFC has since

emerged as the largest residential mortgage finance institution in the country.

HDFC operates through 75 locations throughout the country with its Corporate Headquarters

in Mumbai, India. HDFC also has an international office in Dubai, U.A.E., with service

associates in Kuwait, Oman and Qatar.

HDFCs main goals are to:

a) Develop close relationships with individual households.

b) Maintain its position as the premier housing finance institution in the country.

c) Transform ideas into viable and creative solutions.

d) Provide consistently high returns to shareholders.

e) To grow through diversification by leveraging off the existing client base.

STANDARD LIFE:

The Standard Life Assurance Company ("Standard Life") was established in 1825 and the

first Standard Life Assurance Company Act was passed by Parliament in 1832. Standard Life

was reincorporated as a mutual assurance company in 1925.

Standard Life is Europe's largest mutual life assurance company. Standard Life, which has

been in the life insurance business for the past 182 years, is a modern company surviving

quite a few changes since selling its first policy in 1825.

Standard Life currently has assets exceeding over 125 billion under its management and has

the distinction of being accorded "AAA" rating consequently for the past six years by

Standard & Poor.

INCORPORATION OF HDFC STANDARD LIFE INSURANCE CO. LTD.:The company was incorporated on 14th August 2000 under the name of HDFC Standard Life

Insurance Company Limited.

http://www.google.co.in/imgres?imgurl=http://www.domain-b.com/finance/insurance/200204apr/hdfc-standard-life-insurance%20logo.gif&imgrefurl=http://www.domain-b.com/finance/insurance/200204apr/20020404_equity.html&h=64&w=173&sz=2&tbnid=MCluDZZMMQX4bM::&tbnh=37&tbnw=100&prev=/images?q=HDFC+STANDARD+LIFE+LOGO&hl=en&usg=__snrQztL_AvoP1Kxv2HIS7sBoyck=&ei=3F2_SafTLtXLkAWfksUn&sa=X&oi=image_result&resnum=1&ct=image&cd=1

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Their ambition from the beginning was to be the first private company to re-enter the life

insurance market in India. On the 23rd of October 2000, this ambition was realized when

HDFC Standard Life was the first life company to be granted a certificate of registration.

HDFC are the main shareholders in HDFC Standard Life, with 74% , while Standard Life

owns 26%. Given Standard Life's existing investment in the HDFC Group, this is the

maximum investment allowed under current regulations.

HDFC and Standard Life have a long and close relationship built upon shared values and

trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies

and be the yardstick by which all other insurance companies in India are measured.

HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life insurance

companies, which offers a range of individual and group insurance solutions. It is a joint

venture between Housing Development Finance Corporation Limited (HDFC Ltd.), Indias

leading housing finance institution and one of the subsidiaries of Standard Life plc, leading

providers of financial services in the United Kingdom.

Both the promoters are well known for their ethical dealings and financial strength and are

thus committed to being a long-term player in the life insurance industry.

VISION, MISSION AND VALUESVISION:

The most successful and admired life insurance company, which means that we are the most

trusted company, the easiest to deal with, offer the best value for money, and set the

standards in the industry'.

'The most obvious choice for all'.

MISSION:

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To be the top new life insurance company in the market. This does not just mean being

the largest or the most productive company in the market, rather it is a combination of

several things like

Customer service of the highest order. Value for money for customers Professionalism in carrying out business Innovative products to cater to different needs of different customers Use of technology to improve service standards Increasing market share.

VALUES:

Values that we observe while we work:

Integrity Innovation Customer centric

People Care One for all and all for one Team work Joy and Simplicity

PRODUCTS OF HDFC STANDARD LIFE INSURANCE:

HDFC Standard Life offers a bouquet of insurance solutions to meet every need. The

products of the company are categorized into various sections which are as follows:

A. INDIVIDUAL PRODUCTSB. GROUP PRODUCTS

For Individuals, HDFC Standard Life has a range of protection, investment, pension and

savings plans that assist and nurture dreams apart from providing protection. Customer can

choose from a range of products to suit his life-stage and needs.

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For Organizations, HDFC Standard Life has a host of customized solutions that range from

Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These

affordable plans apart from providing long term value to the employees help in enhancing

goodwill of the company.

In this project I, as a trainee was dealing with Individual Products. The

various products and plans under this category are:

Individual Products:

1. HDFC Children's Plan,2. HDFC Endowment Assurance Plan,3. HDFC Loan Cover Term Assurance Plan,4.

HDFC Money Back Plan,

5. HDFC Personal Pension Plan,6. HDFC Single Premium Whole Of Life Plan,7. HDFC Term Assurance Plan,8. HDFC Unit Linked Endowment,9. HDFC Unit Linked Endowment Plus,10.HDFC Unit Linked Pension,11.HDFC Unit Linked Pension Plus,12.HDFC Unit Linked Young Star,13.HDFC Unit Linked Young Star Plus

At HDFC Standard Life realize that not everyone has the same kind of needs. Keeping this in

mind, varied range of products that customer can choose from to suit all needs. These will

help secure customer future as well as the future of family.

Protection Plans:

Customer can protect his family against the loss of his income or the burden of a loan in the

event of his unfortunate demise, disability or sickness. These plans offer valuable peace of

mind at a small price.

HDFC Standard Life Protection range includes Term Assurance Plan & Loan Cover Term

Assurance Plan.

Investment Plans:

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HDFC Standard Life Single Premium Whole of Life plan is well suited to meet long term

investment needs. HDFC Standard Life provides with attractive long term returns through

regular bonuses.

Pension Plans:

HDFC Standard Life Pension Plans help secure financial independence even after retirement.

Pension range includes Personal Pension Plan, Unit Linked Pension, and Unit Linked Pension

Plus Savings Plans.

Savings Plans:

HDFC Standard Life Savings Plans offer flexible options to build savings for future needs

such as buying a dream home or fulfilling childrens immediate and future needs.

Group Products:

1. Group Term Insurance,2. Group Variable Term Insurance,3. Group Unit Linked Plan,4. Gratuity Group Unit Linked Plan,5. Superannuation Group Unit Linked Plan ,6. Leave Encashment

1.3 COMPETITOR INFORMATION

As we know that this time insurance sector is on boom. Reason is that it gives more profit

not only to the company but also to the investor. Today company invest money not only in

government securities and bonds but also in the equity which gives more return than the

government securities and bonds, and bank deposits. In the market there are lots of insurance

companies which are trying to capture more and more market share. The information

regarding competitors of HDFC Standard Life Insurance are:-

Life Insurance Corporation of India

Every day the company wake up to the fact that more than 220 million lives are part of our

family called LIC. We are humbled by the magnitude of the responsibility we carry

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and realize that the lives that are associated with us are very valuable indeed. Although this

journey started five decades ago, we are still conscious of the fact that, while insurance may

be a business for us, being part of millions of lives every day for the past 50 years has been

a process called TRUST.

Birla sun life insurance

Birla Sun Life Insurance Co. Ltd is a 26:74 joint venture between Sun Life Financial Services

Canada and Aditya Birla Group.

SBI Life Insurance

SBI Life Insurance offers Personal Insurance and related services in order to enable us plan

our life for contingencies and unforeseen events. SBI Life Insurance is a product of the

collaboration of the State Bank of India and the French Insurance company, the Cardiff SA.

SBI Life Insurance offers Insurance Benefits and pension services based on the case and the

portfolio of the clients.

ICICI Prudential Life Insurance Company

ICICI Insurance has two faces-ICICI Prudential Life Insurance Company and ICICI

Lombard General Insurance Company Limited. ICICI Prudential Life Insurance is a 74:26

joint venture between ICICI Bank India Ltd. and Prudential PLC based in UK.

Established in 2000.

ICICI Lombard General Insurance Company Limited is a 74:26 JV between ICICI Bank

India ltd. - the second largest private sector bank in India and Lombard Canada Ltd. a

Fairfax Financial Holdings Ltd group company that is a 26 billion USD Company. ICICI

Lombard started their general insurance businesses in August 2001. It is India's No. l private

general insurance company. It is also the first general insurance company to be awarded

ISO 9001:2000 certification. These companies are giving tough competition to each other

in acquiring market share and adopting new marketing strategy for it. The main

competitor of HDFCSL is LIC, Reliance life insurance ltd, and ICICI Prudential.

Today LIC Insurance product likes "JIVAN ANAND", Reliance life Insurance product

like "Alternate Investment plan and investment and medic lame plan" and HDFC Standard

life

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Product like "Young Star Plan and pension Plus Plan" is running in the market and helping

to the industry to capture more market share. In this stuff market HDFCSL need to adopt new

marketing strategy, new innovative policy, and new idea of policy, and advertisement so

that it can get the potential market share.

1.4 SWOT ANALYSIS

STRENGTHS:

1. Domestic image of HDFC supported by Prudentials international image is strength of the

company.

2. Strong and well spread network of qualified intermediaries and sales person.

3. Strong capital and reserve base.

4. The company provides customer service of the highest order.

5. Huge basket of product range which are suitable to all age and income groups.

6. Large pool of technically skilled manpower with in depth knowledge and understanding of

the market.

7. The company also provides innovative products to cater to different needs of different

customers.

WEAKNESSES:

1. Heavy management expenses and administrative costs.

2. Low customer confidence on the private players.

3. Vertical hierarchical reporting structure with many designations and cadres leading to

power politics at all levels without any exception.

4. Poor retention percentage of tied up agents.

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OPPORTUNITIES:

1. Insurable population According to IRDA only 10% of the population is insured, which

represents around 30% of the insurable population. This suggests more than 300m people,

with the potential to buy insurance, remain uninsured.

2. There will be inflow of managerial and financial expertise from the worlds leading

insurance markets. Further the burden of educating consumers will also be shared among

many players.

3. International companies will help in building world class expertise in local market by

introducing the best global practices.

THREATS:

1. Other private insurance companies also trying to capture the same uninsured population.

2. Big public sector insurance companies like Life Insurance Corporation of India (LIC),

National Insurance Company Limited, Oriental Insurance Limited, New India Assurance

Company Limited and United India Insurance Company Limited. People trust them more.

3. Poaching of customer base by other companies.

4. Most of the people dont understand the need or are not willing to take insurance policies

in

general.

MEANING:

Research methodology is a way to systematically solve the research problem. I may be

understood as a science of how research is done scientifically. Under it I study the various

steps that are generally adopted by a researcher in studying the research problem along with

the logic behind them. It is necessary for the researcher to know not only the research

methods/ techniques but also the methodology.

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2.1OBJECTIVES OF THE STUDY

1. To gain an insight about the Financial Instruments available for investment in themarket.

2. To know what are the objectives which are kept in mind by the investors beforeinvesting in Financial Instruments.

3. To know for how much time investors generally invest their money so that they canearn good returns.

4. To know which is the better investment option which can generate good returns forthe investor and will give the benefit of Tax Saving.

2.2 SCOPE OF THE STUDY

1. This study is carried out in Delhi that covers the investors who use to invest theirmoney in the financial instruments for tax saving purposes.

2. This study has been done to see the perception of investors about the various factorswhich should be keep in mind at the time of investment.

3. This study has been carried out to know for what purpose the investors invest theirmoney in the financial instruments.

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2.3 MANAGERIAL USEFULLNESS OF THE STUDY

1. This study is helpful in understanding about the various investment opportunitiesavailable in the market.

2. This study helps the investors whom to consult before making any investment.3. This study is useful to company in understanding the investors perception to devise

the suitable product/marketing strategies in order to attract them.

4. Financial planner get advantage to make portfolio according to response given byrespondents/investors, which belong to different occupations, having different income

level, different age level or which instrument is mostly like by the investors for

investment.

2.4 METHODOLODY

In this project the Primary method of data collection used is

Questionnaire Method

In this method, the investigator prepares a Questionnaire and sends it to the informants by

post with the request that the Questionnaires may be filled up and sent back by a specified

date. In this method, a large geographical area can be easily covered and the informant also

can fill up the questionnaire according to his convenience.

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In this Project, I have prepared a Questionnaire, which is given in the annexure section, and

this Questionnaire is filled by investors living in the Delhi.

In this project the Secondary method of data collection used are

Websites Books

In this method of data collection, the investigator uses the data that is already available.

In this project, I have collected the data with the help of websites, search engines and books.

SAMPLE SIZE:

Sample size used in this project is 50 respondents of Delhi.

2.5 LIMITATIONS

The project was constrained by time limit of two months.

Mindset of people may vary depending upon their age, gender, income etc.

People mind set about the survey was an obstacle in acquiring completeinformation & positive interaction.

Respondents were very busy in their schedule. So it was very time taken in everyQuestionnaire response by them.

Sometimes due to negativity in their mind regarding insurance, they never use totake interest in giving correct information.

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Insurance and ULIP

Life insurance has traditionally been looked upon pre-dominantly as an avenue that offers tax

benefits while also doubling up as a saving instrument. The purpose of life insurance is to

indemnify the nominees in case of an eventuality to the insured. In other words, life insurance

is intended to secure the financial future of the nominees in the absence of the person insured.

The purpose of buying a life insurance is to protect your dependants from any financial

difficulties in your absence. It helps individuals in providing them with the twin benefits of

insuring themselves while at the same time acting as a compulsory savings instrument to take

care of their future needs. Life insurance can aid your family on a rainy day, at a time when

help from every quarter is welcome and of course, since some plans also double up as a

savings instrument, they assist you in planning for such future needs like childrens marriage,

purchase of various household items, gold purchases or as seed capital for starting a business.

Traditionally, buying life insurance has always formed an integral part of an individuals

annual tax planning exercise. While it is important for individuals to have life cover, it is

equally important that they buy insurance keeping both their long-term financial goals and

their tax planning in mind. This note explains the role of life insurance in an individuals tax

planning exercise while also evaluating the various options available at ones disposal.

Life is full of dangers, but with insurance, you can at least ensure that you and your

dependents dont suffer. Its easier to walk the tightrope if you know there is a safety net.

You should try and take cover for all insurable risks. If you are aware of the major risks andbuy the right products, you can cover quite a few bases. The major insurable risks are as

follows:

living Wealth

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DATA ANALYSIS

NOTE: All the information related to Questionnaire is given in Chapter III Conceptual

Discussions.

Ques1. Do you invest your money in any kind of Financial Instruments?

Yes 85%

No 15%

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INTERPRETATION

According to this graph, it is interpreted that 85% people invest their money in financial

instruments to get good returns and with the purpose of tax saving too. There are 15% people

who do not invest their money in financial instruments due to many reasons like they do not

believe in saving money for investment and in some cases, they like to save but their high

expenses and financial commitments do not permit them to invest.

Ques2. Which one you prefer the most and why?

F.D., Govt. Bonds, PPF 23%

Insurance and ULIP 30%

Equity Trading 26%Retirement Plans 9%

Mutual Funds 12%

85%

15%

Yes

No

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INTERPRETATION

According to this figure, it has been analyzed that most of the people i.e. 30% prefer ULIP

and Insurance as an investment tool because ULIP combines the benefit of Insurance and

Investment both and Insurance save human life against death and avail tax benefit too.

Secondly,26% of the people prefer to invest in Equity because they want to earn higher

returns.23% of the people still prefer F.Ds and investments in govt. bonds because they prefer

safety of the principal and tax saving/benefits.

Ques3. What is the main objective of your investment?

Protection (Life Insurance) 23%

Returns 32%

Safety 13%

Retirement Planning 9%

To reduce tax liability / tax saving 15%

Beating Inflation 8%

23%

30%26%

9%12%

0%

5%

10%

15%

20%

25%

30%

35%

F.D.,Govt.

Bonds,PPF

Insurance

and ULIP

Equity

Trading

Retirement

Plans

Mutual

Funds

Most Preferred form of investment

Most Preferred form of

investment

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INTERPRETATION

It is found that growth of capital/returns is the most important objective which investors

consider while investing. It is also seen that 23% of the investors prefer to secure their life

against death. Safety of their capital is also considered to be important. Inflation has only

been given 8% which reflects that people are still not giving much consideration to inflation

even due to a sharp rise in the inflation rate. The people who are business man are generally

seen returns/growth and tax benefits at the time of investment. Serviceman generally gives

preference to safety and retirement benefits.

Ques4.Which Tendency do you prefer the most?

23%32%

0%

5%

10%

15%20%

25%

30%

35%

High risk, high return 39%

Moderate risk, moderate return 35%

Low risk, low return 26%

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INTERPRETATION

It is found that 39% people like the tendency high risk high return, as they believe unless and

until we would not take risk how can we earn or get return more. That tendency is generally

prefer by business and servicemen whose income level is more than 5 lac. The investor with

low income level generally prefer moderate risk or low risk to invest in insurance,

Government bonds, bank savings, Debt etc. The age level also influence the tendency, the age

level between 1830 likes to take risks but above 45 they prefer low risk low return.

Ques5. For what term do you generally invest?

39%35%

26%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

High risk, high return Moderate risk,

moderate return

Low risk, low return

Tendency

Tendency

Less than10years 60%

10-15 years 35%

More than 15 years 5%

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INTERPRETATION

By looking at this graph, it has been analyzed that most of the people take the time horizon of

less than 10 years which is followed by 35% of the investors investing for 10-15 years.

Investors investing for 10-15 years in order to earn better returns because most of the times

long term investment generate good returns over the investments. ULIPs are the best productsfor Long-Term Investors. Investors investing for more than 15 years go for insurance,

retirement plans etc.

Ques6. Why do you save and invest?

To meet day to day expenses 56%

To achieve future goals. 44%

60%

35%

5%0%

10%

20%

30%

40%

50%

60%

70%

15 years

Term of investment

Term of investment

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INTERPRETATION

It is found that 56% of the investor invest their money to meet day to day expenses and like

to invest for a short period of time. These investors use to invest mostly in Equity shares,

Mutual Funds (ELSS)etc. There are 44% of the investors who invest their money to achieve

future goals and invest for long period of time like in ULIP, Retirement Plans, LifeInsuranceetc. The investors perception investing to achieve future goals is different from the investors

investing to meet day to day expenses.

Ques7. At what time you prefer to invest in the financial instruments?

At the beginning/middle of the financial year 55%

At the end of the financial year 45%

56%

44%

0%

10%

20%

30%

40%

50%

60%

To meet day to day

expenses

To achieve future goals.

Present/Future Goals

Present/Future Goals

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INTERPRETATION

It is found that 55% of the investors go for investment in financial instruments at the

beginning and middle of the financial year because they want peace of mind and they think

that they will be able to save small amount of money till the end of year and will not be able

to save and invest more. While 45% of the investors invest at the end of the year in order to

save tax or to take advantage of tax benefits and use to take financial decisions from CAs

/Tax Consultants.

Ques8. Whom do you consult before going for any kind of tax saving investment?

0%

10%

20%

30%

40%

50%

60%

At the b

Independently 40%

Tax Consultants/CAs 35%

Advise from friends/Relatives 7%

Financial Consultants. 18%

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INTERPRETATION

It is found that 40% of the respondents take their financial decisions independently which

depicts they are not taking any advisory services from financial experts and they feel that

they can handle their portfolio on their own and hence make their own decisions regarding

investments. while 35% of the respondents make investment decisions from Tax Consultants

and CAs so that they can save their huge amount of tax by investing their money and 18% of

the investors take their investment decisions by consulting financial consultants. This opens

up the door for various financial advisors who can target these investors and can give

advisory services.

CONCLUSION

On the basis of Data Analysis of the project titled Study of various financial instruments as

tax saving options.I can conclude that:

Investment in various financial instruments is affected by the perception of the peopleand their tendency towards risk and return.

40%35%

7%

18%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Independently Tax

Consultants/CAs

Advise from

friends/Relatives

Financial

Consultants.

Consultant

Consultant

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The age of the investor also affects the investment decision. The younger investorslike to take risk and generally invest in more in equity than the people who are

between 4560.

While investing into ULIPs, Insurance, Retirement plans and PPF people invests withthe main objective of taking the Tax Benefit the government offers while in Mutual

Funds and equity shares people invests with the main objective of the appreciation of

capital.

People generally invest for the period of 1015 years, take a long term view forinvestment in order to grow their money.

Most of the people prefer ULIP as an investment option because ULIPs offer thebenefits of both Insurance and Investment.

SUGGESTIONS

After doing a survey on Study of various financial instruments as tax saving options.The

following suggestions can be made:

Many of the investors take their investment decisions independently but they shouldconsult CAs, Tax consultants if they are investing with the main purpose of tax

saving.

People are insured but there is still high uninsured population so the insurancecompanies should tap the highly uninsured area in order to increase their market

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share. HDFC SLIC being the private player, must use aggressive marketing strategies

to capture the more market because LIC is a public company and people have more

trust on it. So, HDFC SLIC has to do a lot in order to build a trust in the customers.

Mutual Funds are not so popular because there are lot of charges deducted every yearfor example Fund Management charge, entry load, exit load in case of premature

withdrawls etc. So these entry and exit loads must be abolished by the mutual fund

companies.

Somewhere ULIPs are criticized for charging heavy charges in the initial 2 3 years,for example policy administration charges, premium allocation charge. So these

charges must be reduced in order to attract more customers.

It is suggested that if the investor is investing in ULIPs then invest for long period oftime to earn high returns.

Investors should not put all the eggs into one basket but should diversify its portfolioto minimize the risk. Investors who prefer equity investment should also include debt

in their portfolio because share market is totally unpredictable and can lead to heavy

losses in bear situation.

Investors investing with the main purpose of tax saving should consult theirconsultants to know where to invest so that investment leads to higher returns as well

as tax saving too.

QUESTIONNAIRE

Personal Information

Name : __________________________________________________

Telephone No : __________________________________________________

Age Group

18-25 years 25-35 years 35-45 years 45-60 years Above 60 years

Income Group (per annum):

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>5 lacsQues1. Do you invest your money in any kind of Financial Instruments?

Yes

No

Ques2. Which one you prefer the most and why?

Fixed Deposit, Post Office Savings, Government Bonds Retirement Plans Equity Trading Insurance and ULIP Bank Savings PPF Mutual Funds

Ques3. What is the main objective of your investment?

Protection (Life Insurance) Returns Safety Retirement Planning To reduce tax liability / tax saving Beating Inflation Others (please specify).

Ques4. Which Tendency do you prefer the most?

Low risk, low return Moderate risk, moderatereturn High risk, high return

Ques5. For what term do you generally invest?

Less than 10years 10-15 years More than 15 years

Ques6. Why do you save and invest?

To meet day to day expenses To achieve future goals.

Ques7. At what time you prefer to invest in the financial instruments?

At the beginning of the financial year At the end of the financial year

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Ques8. Whom do you consult before going for any kind of tax saving investment?

Independently Tax Consultants/CAs Advise from friends/Relatives Financial Consultants.

Your overall experience regarding investment in various financial Instruments...

BIBLIOGRAPHY

BOOKS

Khan M.Y. and Jain P.K (2001),Financial Management, Tata McGraw Hill. Kothari C.R., Research Methodology: Methods and Techniques, Edition-2005,

Published by WISHWA PRAKASHAN 1990.

Pandey I.M. (2003),Financial Management, Tata McGraw Hill.

WEBSITES

www.google.co.in www.hdfcinsurance.com

http://www.google.co.in/http://www.google.co.in/http://www.hdfcinsurance.com/http://www.hdfcinsurance.com/http://www.hdfcinsurance.com/http://www.google.co.in/

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