Final project

INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH
PGDM- 2010-12

WINTER PROJECT REPORT ON

³A comparative study of performance of ULIP Schemes with specific reference to return generated - A study of public and private sector companies ´

GUIDED BY: PROF. A.S.KHALSA

SUBMITTED By:Mahesh Mohanan

ACKNOWLEDGEMENT I have taken this opportunity to express my sincere gratitude towards the pillar of successful completion of my PGDM Trim-II project. In this era of modernization & sophistication my endeavour to achieve complete and perfect knowledge in the field I choose will be successful only with the help of guidance, direction, stimulation & encouragement by our esteemed professor and Dean Dr. Amarjeet Singh Khalsa who helped me to know and learn various aspects of ULIP Schemes at various stages of my Project and also I like to thank Prof. Vaibhav Lowlekar for his credible support through out my project.

I Mahesh Mohanan of PGDM Trim-II of Institute of professional education and research, herby declare that this project work tittled ³Comparative study of ULIP schemes of Private sector verses Public sector companies ³ is an original work of mine under the guidance of Prof. Dr. Amarjeet singh khalsa. And also any matter related to my project I will be liable to clarify each and every aspect of this project.

Mahesh Mohanan PGDM Trim- II

CHAPTER NO. 1. 2. 2.1 2.2 2.3 2.4 3. 3.1 3.2 4. 4.1 4.2 5. 6.

TOPIC Conceptual Overview Research Methodology Objective Scope Methodology Limitation Theoretical Background Meaning of ULIP Types of ULIP Case Study Public Sector Insurance Companies Private Sector Insurance Companies Data Analyses & Interpretation Findings of the Study Bibliography

PAGE NO.

CHAPTER- 1 INTRODUCTION

CONCEPTUAL OVERVEIW OF ULIP (Unit linked insurance plan)
ULIP or Unit linked insurance plan (ULIP) is a life insurance solution that provides the benefits of risk protection as well as flexibility in investment. Unit Linked Insurance Plans are market linked insurance plans, where in a part of ur premium goes towards providing a life cover, and the balance (after charges have been deducted) is invested in stock market ULIP stands for Unit Linked Insurance Plans. The insurance is for protecting our life from the any uncertain events like death or accident. The purpose of the normal insurance plan is just protecting the life but not ensuring any savings for the future. The examples for the pure insurance plans are term insurance. Many people wanted plan which gives protection also gives the returns for their investment. So, insurance companies come up with the ULIP plan where the premium amount is invested in the stock market and returns better income on the maturity period Unit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of risk protection and flexibility in investment. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV). The policy value at any time varies according to the value of the underlying assets at the time.

In a ULIP, the invested amount of the premiums after deducting for all the charges and premium for risk cover under all policies in a particular fund as chosen by the policy holders are pooled together to form a Unit fund. A Unit is the component of the Fund in a Unit Linked Insurance Policy. The returns in a ULIP depend upon the performance of the fund in the capital market. ULIP investors have the option of investing across various schemes, i.e, diversified equity funds, balanced funds, debt funds etc.

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

The ULIP investment value depends on the condition of the stock market. ULIP policy are of various types e.g. diversified equity funds (quite risky), balanced funds (balanced), debt funds (not risky but low growth) etc. Investors can pay their premiums annually, semi-annually, quarterly or monthly. They 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 his ULIP policy. 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). They can also shift their investments across various plans/asset classes (diversified equity funds, balanced funds, debt funds) either at a nominal or no cost.

In this research, comparative study of performance of ULIP schemes is done. This study is focusing on the returns generated from various ULIP schemes. This study gives an indication to the investor about the returns generated from ULIP schemes of public sector and private sector insurance companies. In addition to study of returns generated from ULIP schemes of public and private sector companies, ULIP schemes are compared with risk free investment also i.e. governmentsecurities.

CHAPTER ² 2 OBJECTIVE OF STUDY

2.1 Objective of the study: y To study the returns generated from various plans

2.2 RESEARCH METHODOLOGY: For comparative study of ULIP Schemes of Private sector verses Public sector companies, five companies of private sector and two companies of public sector are being taken. From each company five different schemes are being taken, on the basis of which study on different schemes of public and private sector have to be done. For this study required data have been gathered about the various ULIP schemes which are currently available in the market. Data have been collected from past three years to analyze the returns from the various ULIP schemes provided by the target companies of this study. Return generated will be studied with the help of Standard deviation, Beta, Sharp ratio. Companies providing ULIP schemes are included in my study.

SIGNIFICANCE 1. To measure the return generated by a ULIP scheme as compare to other schemes 2. As we are calculating Beta, which is a historical measurement so it will predict the future returns also. 3. ULIP scheme holder can have a better understanding in choosing different schemes offered by different companies. 4. Sharpe ratio tells us whether a ULIP schemes returns are due to smart investment decisions or a result of excess risk

LIMITATION 1. The data which have been collected is very limited, so coverage of this study very limited. 2. There is an uneven sample taken from the public and private sector life insurance companies having ULIP schemes. This is because some public sector life insurance companies do not match with the parameter set for the study. i.e. Companies must have the ULIP scheme with the inception period before 1st April 2007. 3. This study only talk about the comparison between the various ULIP schemes, but it will not talk about the other investment options and returns generated.

CHAPTER- 3 MEANING & TYPES OF ULIP

3.1 ULIP - Concept
A ULIP is a unit linked insurance plan. This is the type of investment where the characteristics of insurance and mutual fund are combined. Some part of the money invested goes into the insurance cover and the remaining goes into an asset class. The three important things to remember about a ULIP is that entry costs are high and the brokerage, commission could be as high as 30% of the premium in the first year. The second think is that management fee is low in a ULIP at around. The price of an insurance cover is higher in a ULIP than in a plain vanilla insurance policy ULIPs were spoken of in the same breath as ULIP schemes. In fact, many agents even went as far as projecting ULIPs superior to ULIP schemes because they attract tax benefits on all options, unlike ULIP schemes where we get a tax benefit only on the ELSS category. ULIPs were shown to be a short-cut investment/insurance avenue ± for instance, investors were encouraged to pay premiums only for the first 3 years and not necessarily over the entire tenure of the policy. The reason is the expenses in the initial 3 years¶ premium are so high that insurance companies recover the entire cost of the policy and can µdo without¶ the remaining premiums.

ULIPs need to mention their investment mandate, is it going to aim for aggressive capital appreciation or steady growth. Exposure to a stock/sector in a ULIP portfolio must be defined. Diversified equity funds have a limit to how much they can invest in a stock/sector. Investment guidelines for ULIPs must also be crystallized. Our interaction with insurance companies indicates that there is little clarity on this front; we believe that since ULIPs invest so heavily in stockmarkets they must have very clear-cut investment guidelines. ULIP stands for Unit Linked Insurance Plans. As we know that insurance is for protecting our life from the any uncertain events like death or accident. The purpose of the normal insurance plan is just protecting the life but not ensuring any savings for the future. Many people wanted plan which gives protection also gives the returns for their investment. So, insurance companies come up with the ULIP plan where the premium about is invested in the share market and returns better income on the maturity period.

Types of ULIP
1. Equity Funds 2. Income, Fixed interest and bond funds 3. Cash funds

4. Balance Funds Equity Funds
In ULIP particularly the equity portion have revived much from the earlier correction which led to many ULIP Equity portion getting devalued by almost 75%. India¶s main stock index has more than doubled since early March but more than 95%.So its high time to use the Switch Option of your ULIP to book profits and switch over to Debt option. Equity funds can be defined as an investment fund and money market that carry the purpose of earning interest for shareholders. Some suppliers of money market funds are brokerage firms, ULIP schemes, banks, etc. Most of the money market funds are not nationally insured, they are normally covered by private insurance. It is observed that a major amount of funds invest only in governmentbacked securities. For this reason, shareholders can think themselves as safe. Money market funds allow the investors to attain the flexibility of switching their money from one fund to the other. The other advantage is that it exerts no charge. Features of money market funds comprise of short-term securities that provide monetary instruments, quality etc. Money market funds can be treated as a type of ULIP that invests in short-term money market legal documents like commercial paper, government securities, CDs (certificates of deposit) etc. Some of the money market funds purchase specifically the government

securities like treasury bills, while the other general purpose funds normally invest on short-term paper. People prefer these money market funds for their high yielding capacity, and security. Money funds sells share to investor and they get interest payment on a regular basis. There are several factors which are responsible to acquire the interest amount. These are management fees, level of interest rates, commission etc.

A money market fund is a mutual fund that invests solely in money market instruments. Money market instruments are forms of debt that mature in less than one year and are very liquid. Treasury bills make up the bulk of the money market instruments. Securities in the money market are relatively risk free. Money market funds are generally the safest and most secure of mutual fund investments. The goal of a money-market fund is to preserve principal while yielding a modest return. Moneymarket mutual fund is akin to a high-yield bank account but is not entirely risk free. When investing in a money-market fund, attention should be paid to the interest rate that is being offered. A money market fund is a type of mutual fund that is required by law to invest in low-risk securities. These funds have relatively low risks compared to other ULIP schemes and pay dividends that generally reflect short-term interest rates. Unlike a ³money market deposit account´ at a bank, money market funds are not federally insured. Money market funds typically invest in government securities, certificates of deposit, commercial paper of companies, or other highly liquid and low-risk securities. While investor losses in money markets have been rare, they are possible. An investor tendering mutual fund shares, including shares of money market funds, for redemption generally must be paid within seven days of tender. Pursuant to Section 22(e) of the Investment Company Act of 1940, registered open-end companies may not suspend the right of redemption and must pay redemption proceeds within seven days, except in certain emergencies or for such other periods as the Commission may by order permit for the protection of security holders of the company. Before investing in a money market fund, you should carefully read all of the fund¶s available information, including its prospectus, or profile if the fund has one, and its most recent shareholder report.

Balance fund
A fund that combines a stock component, a bond component and, sometimes, a money market component, in a single portfolio. Generally, these hybrid funds stick to a relatively fixed mix of stocks and bonds that reflects either a moderate or conservative orientation. A balanced fund is geared toward investors who are looking for a mixture of safety, income and modest capital appreciation. The amounts that such a mutual fund invests into each asset class usually must remain within a set minimum and maximum. Although they are in the "asset allocation" family, balanced fund portfolios do not materially change their asset mix. This is unlike life-cycle, target-date and actively managed asset-allocation funds, which make changes in response to an investor's changing risk-return appetite and age, or overall investment market conditions. A Balance fund is a combination of common stock, preferred stock, bonds, and short-

term bonds, to provide both income and capital appreciation while avoiding excessive risk. The purpose of balanced funds (also sometimes called hybrid funds) is to provide investors with a single mutual fund that combines both growth and income objectives, by investing in

both stocks (for growth) and bonds (for income). Such diversified holdings ensure that these funds will manage downturns in the stock market without too much of a loss; the flip side, of course, is that balanced funds will usually increase less than an all-stock fund during a bull market. Balanced fund is also known as hybrid fund. It is a type of mutual fund that buys a combination of common stock, preferred stock, bonds, and short-term bonds, to provide both income and capital appreciation while avoiding excessive risk. Balanced funds provide investor with an option of single mutual fund that combines both growth and income objectives, by investing in both stocks (for growth) and bonds (for income). Such diversified holdings ensure that these funds will manage downturns in the stock market without too much of a loss. But on the flip side, balanced funds will usually increase less than an all-stock fund during a bull market.

Advantages of Balanced Fund

y

Generally, balanced funds maintain a 60:40 equity debt ratio. This means that 60% of their total investment is in equity and the balance 40% in debt and cash equivalents. Balance funds combine the power of equities (shares) and the stability of debt market instruments (fixed return investments like bonds) and provide both income and capital appreciation while avoiding excessive risk.

y

Balanced funds continuously rebalance their portfolios to ensure that the broad asset allocation is not disturbed. Therefore, the profits earned from the stock markets are encashed and invested in low risk instruments. This helps the investor in maintaining the appropriate asset mix, without getting into the hassles of rebalancing the portfolio on their own.

Income Funds

A type of ULIP scheme that emphasizes current income, either on a monthly or quarterly basis, as opposed to capital appreciation.Such funds hold a variety of government, municipal and corporate debt obligations, preferred stock, money market instruments, and dividend-paying stocks. Share prices of income funds are not fixed; they tend to fall when interest rates are rising and to increase when interest rates are falling. Generally, the bonds included in the portfolios of these funds are of investment grade. The other securities are of sufficient credit quality to assure a preservation of capital. There are two popular high-risk funds that also focus mainly on income: high-yield bond funds and bank loan funds. The former invests primarily in

corporate "junk" bonds and the latter in floating-rate loans issued by banks or other financial institutions. Income Funds in India usually invest their principal in companies that give high payouts of dividends and also in securities of fixed income such as corporate debentures, government securities, and bonds. The advantage of Income Funds in India is that it provides regular income to the investor either on a monthly or quarterly basis. Further the advantage of Income Funds in India is that it also provides stability of capital to the investor. Income Funds share prices are not fixed for they have a tendency to grow with the fall in interest rates and fall with the rise of the interest rates. The bonds that are there in Income Funds are usually of the investment grade. The other bonds are of such credit quality that they assure the protection of the capital. An income fund is a ULIP schemes whose goal is to provide an income from investments. Income funds are often assumed to be synonymous with bond funds, however income funds may hold stocks instead (typically those with a good history of paying dividends), more accurately called equity income funds, or even some combination. The point in any case is that the investor is more interested in income than capital gains, perhaps with the intention the fund will never be sold. Income funds are ULIP schemes that focus on acquiring monthly or quarterly income for the investor. Other types of ULIP schemes tend to focus on capital growth instead of income or opt for a combination of both. Often, people invest in income funds with the intention of keeping them for regular income over a long-term period instead of selling their shares in the future. Understanding ULIP schemes requires getting a handle on how ULIP schemes work. A mutual fund is unlike an individual stock orbond investment made by a sole investor. It pools the investments of many people together, with each one making an investment that accounts for only a small percentage of the fund's holdings. Each mutual fund has a manager, who takes this pooled investment and purchases stocks and bonds with it; he may purchases other types of securities as well. Income funds are ULIP schemes that focus on acquiring monthly or quarterly income for the investor. Other types of ULIP schemes tend to focus on capital growth instead of income or opt for a combination of both. Often, people invest in income funds with the intention of keeping them for regular income over a long-term period instead of selling their shares in the future.

Understanding ULIP schemes requires getting a handle on how ULIP schemes work. A mutual fund is unlike an individual stock .It pools the investments of many people together, with each one making an investment that accounts for only a small percentage of the fund's holdings. Each mutual fund has a manager, who takes this pooled investment and purchases stocks and bonds with it; he may purchases other types of securities as well. Income funds are ULIP schemes whose investment objective is to produce current income rather than long-term growth, typically by investing in bonds or sometimes a combination of bonds and preferred stock. Investors, especially those who have retired or are about to retire, may prefer income funds to potentially more volatile growth funds. The amount of income a fund may generate is related to the risk posed by the investments that the fund makes and the return they generate. A fund that buys lower-grade bonds may provide substantially more income than a fund buying investmentgrade bonds. But the same fund may also put your principal, or investment amount, at substantial risk.

CASH FUNDS

Cash Funds are highly liquid funds that invest most of their assets in cash or near-cash instruments traded on the money market, such as bank deposits, certificates of deposit, very short-term bonds or floating rate notes. Also known as a money market fund. A money market fund's purpose is to provide investors with a safe place to invest easily accessible cash-equivalent assets characterized as a low-risk, low-return investment. Because of their relatively low returns, investors, such as those participating in employer-sponsored retirement plans, might not want to use money market funds as a long-term investment option.

CHAPTER- 4

CASE STUDY

CASE STUDY
4.1 TYPES OF SECTOR:

1. PRIVATE SECTOR 2. PUBLIC SECTOR

 Private sector Life insurance companies considered under this study are: 1. HDFC standard life insurance 2. MAX new york life insurance 3. Bharti AXA life insurance 4. Bajaj Allianz life insurance 5. ICICI prudential  Public sector Life insurance companies considered under this study are: 1. Life insurance corporation (LIC) 2. State bank of India life insurance

4.2 ULIP SCHEMES
Child Plan

Private Sector 1. ICICI Prudential Life Insurance: ICICI pru Smart Kid new unit 2. Bharti AXA life Insurance : Bharti AXA Future Confident 3. HDFC standard Life Insurance: HDFC standard star suvidha plus 4. Bajaj Allianz Life insurance: Bajaj Allianz young care plus 5. Max New York life insurance: Max New York Life maker gold Public sector 1. Life Insurance corporation: LIC Child fortune 2. State bank of India life insurance: SBI Unit plus child plan

Pension Plan

Private Sector 1. ICICI Prudential Life Insurance: ICICI Pru Life stage pension 2. Bharti AXA life Insurance: Bharti AXA Dream life insurance 3. HDFC standard Life Insurance: HDFC standard Unit care pension plus 4. Bajaj Allianz Life insurance: Bajaj Allianz unit care pension plus plan 5. Max New York life insurance: Max New York Smart invest pension

Public sector 1. Life Insurance corporation: LIC Future plus 2. State bank of India life insurance: SBI Pension Horizon II

Growth Plan

Private Sector 1. ICICI Prudential Life Insurance: ICICI Pru Life Link

2. Bharti AXA life Insurance: Bharti AXA Aspire Life 3. HDFC standard Life Insurance: HDFC standard Leave encashment 4. Bajaj Allianz Life insurance: Bajaj Allianz Unit gain super 5. Max New York life insurance: Max New York Life platinum

Public Sector 1. Life Insurance corporation: LIC Jeewan Plus 2. State bank of India life insurance: SBI Smart ULIP

Investment Plan

Private Sector 1. ICICI Prudential Life Insurance: ICICI pru Life time 2. Bharti AXA life Insurance : Bharti AXA Invest confident 3. HDFC standard Life Insurance: HDFC standard gratuity Plan 4. Bajaj Allianz Life insurance: Bajaj Allianz Life long gain 5. Max New York life insurance: Max New York Life invest

Public Sector 1. Life Insurance corporation: LIC Money plus 2. State bank of India life insurance: SBI Elite Plan

Wealth Plan

Private Sector 1. 2. 3. 4. 5. ICICI Prudential Life Insurance: ICICI Pru golden years Bharti AXA life Insurance: Bharti AXA wealth confident HDFC standard Life Insurance: HDFC standard Endowment suvidha plus Bajaj Allianz Life insurance: Bajaj Allianz New family gain Max New York life insurance: Max New York Secure return builder

Public Sector 1. Life Insurance corporation: LIC Beema plus 2. State bank of India life insurance: SBI Saral ULIP

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HDFC STANDARD LIFE INSURANCE

HDFC Standard Life believes that establishing a strong and ethical foundation is an essential prerequisite for long-term sustainable growth. To ensure this, They have concentrated our focus on expansion of branch network, organizing an efficient and well trained sales force, and setting up appropriate systems and processes with optimum use of technology. As all these areas form the basic infrastructure for establishing the highest possible customer service standards. Their core values are drilled down to all levels of employees, as these are inviolable. They continue to promote high integrity in business practices and shun short cuts and unethical practices, as we wish to be perceived as an institution with high moral standing. Since their inception in 2000, when the Indian insurance space was opened for private participation, they have consistently focused on setting benchmarks in all aspect on insurance business.

HDFC Standard Life, one of India¶s leading private life insurance companies, offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC), India¶s leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom. HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others. HDFC Standard Life¶s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health. Customers have the added advantage of customizing the plans, by adding optional benefits called riders, at a nominal price. The company currently has 32 retail and 4 group products in its portfolio, along with five optional rider benefits catering to the savings, investment, protection and retirement needs of customers.

HDFC Standard Life continues to have one of the widest reaches among new insurance companies with 568 branches servicing customer needs in over 700 cities and towns. The company has a strong presence in its existing markets with a base of 2,00,000 Financial Consultants.

PENSION PLAN
Retirement Plans provide you with financial security so that when our professional income starts to ebb, you can still live with pride without compromising on our living standards. By providing a tool to accumulate and invest your savings, these plans will give a lump sum on retirement, which is then used to get regular income through an annuity plan. Given the high cost of living and rising inflation, employer pensions alone are not sufficient. Pension planning has therefore become critical today. India¶s average life expectancy is slated to increase to over 75 years by 2050 from the present level of close to 65 years. Life spans have been increasing due to better health and sanitation conditions in the country. However, the average number of years of employment has not been rising commensurately. The result is an increase in the number of post-retirement years. Accordingly, it has become necessary to ensure regular income for life after retirement, so that you can live with pride and enjoy your twilight years.

CHILD PLAN

Children¶s Plans helps to save so that parents can fulfill child¶s dreams and aspirations. These plans go a long way in securing your child¶s future by financing the key milestones in their lives even if you are no longer around to oversee them. As a parent, people wish to provide their child with the very best that life offers, the best possible education, marriage and life style. Most of these goals have a price tag attached and unless plan finances carefully, people may not be able to provide the required economic support to their child when you need it the most.

For example, with the high and rising costs of education, if you are not financially prepared, your child may miss an opportunity of a lifetime.
GROWTH PLAN

Growth Plans help insurer¶s family from uncertainties in life due to financial losses in terms of loss of income that may dawn upon them in case of untimely demise or critical illness. Securing the future of one¶s family is one of the most important goals of life. Protection Plans go a long way in ensuring family¶s financial independence in the event of unfortunate demise or critical illness. They are all the more important if you are the chief wage earner in family. No matter how much have saved or invested over the years, sudden eventualities, such as death or critical illness, always tend to affect the family financially apart from the huge emotional loss.

INVESTMENT PLAN

All the people have always given their family the very best. And there is no reason why they shouldn¶t get the very best in the future too. As a judicious family man, your priority is to secure the well-being of those who depend on them. Not just for today, but also in the long term. More importantly, you have to ensure that family¶s future expenses are taken care, even if something unfortunate were to happen to wage earner of the family. Their Investment Plans provide us the assurance of lump sum funds for the family¶s future expenses. While providing an excellent savings tool for your short term and long term financial goals, these plans also assure the family a certain sum by way of an insurance cover.

MAX NEW YORK LIFE

Max New York Life Insurance Company Ltd. is a joint venture between Max India Limited, one of India's leading multi-business corporations and New York Life International, the international arm of New York Life, a Fortune 100 company. The company has positioned itself on the quality platform. In line with its vision to be the most admired life insurance company in India, it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, carin, integrity and teamwork .

Incorporated in 2000, Max New York Life started commercial operation in April 2001. In line with its values of financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds. The Company's paid up capital as on 31 st August, 2010 is Rs 1,973 crore. Max New York Life has multi-channel distribution spread across the country. Agency distribution is the primary channel complemented by partnership distribution, bancassurance and dedicated distribution for emerging markets. The agent advisors are trained in-house to ensure optimal control on quality of training. Max New York Life has put in place a unique hub and spoke model of distribution to deepen our rural penetration. Max New York Life offers a suite of flexible products. It now has 21 products covering both life and health insurance and 8 riders that can be customized to over 800 combinations enabling customers to choose the policy that best fits their need. Besides this, the company offers 6 products and 7 riders in group insurance business.

CHILD PLAN

A few decades back, it was all about focusing on education and ensuring that the children get the best opportunities for their education. Now it goes beyond that. Its more about having a multi-faceted personality, being an all-rounder and excelling in various fields.

We understand this desire that every parent has for their child. Therefore, our child plan is designed specifically to ensure that your child not only gets the best of education but also can explore and develop his/her hidden talent. Max New York Life Shiksha Plus II is a 360 degree child plan that provides for over all development of child in all the circumstances.

GROWTH PLAN
Settling for the second best has never been an option for investor. When it comes to a plan that will help the investor plan for your financial goals be it a car, your dream home, a holiday abroad or the protection and comfort of your family, you want to trust the best., a unit linked Life Insurance plan, which offers a unique combination of protection with returns to fulfill your goals.

PENSION PLAN
In the journey through life, everyone will need to take care of changing needs like asset creation, investing for retirement, children¶s education and marriage and so on. At Max New York Life, they understand investor¶s desire to take care of these needs and yet simplify the financial planning and investment, a life insurance plan that offers protection for life, cash bonuses, and multiple options to utilize these cash bonuses to meet all the individual requirements. This plan offers triple benefits. It gives you maturity benefits at the age of 75, provides you a life coverage insurance and fulfill the financial needs of the family members, incase of your untimely death and offers money back feature as well, where they will pay a part of the sum assured at regular intervals to take care of your periodic foreseen needs. Investor can also customize the policy to meet their specific needs. They offer the flexibility to enhance the value of the policy by using various rider options available.

INVESTMENT PLAN

Life Invest provides the investor with an insurance cover that is guaranteed for 20 years down the line. It builds cash value, which you can use during your lifetime to fund any unforeseen needs either by surrendering accumulated PUAs or taking a loan. You can enjoy the full benefits of an endowment plan with life insurance that requires you to pay premiums only over a very limited period, while you get cover for the entire tenure! Also, your money grows quickly, resulting in a substantial lump sum on maturity. In case of unfortunate death, this plan also provides sum assured plus additional insurance coverage purchased from bonuses for first 5 years.

Investor can also customize your policy to meet your specific needs. They offer the flexibility to enhance the value of your policy by using various rider options available. In addition, investorare also eligible for bonuses and terminal illness benefits, where investor can use 50% of sum assured at the time of the treatment and the balance of the sum assured will be payable to family on the occurrence of the insured event.

BAJAJ ALLIANZ
Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance Company Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion (Over INR. 55, 00,000 Crores). Allianz SE has over 119 years of financial experience and is present in over 70 countries around the world. At Bajaj Allianz Life Insurance, customer delight is our guiding principle. Our business philosophy is to ensure excellent insurance and investment solutions by offering customised products, supported by the best technology. Market linked insurance plans invest the premium in to the equity, debt and cash markets by the way of allocating units, which like any other mutual fund have a NAV and the customer is free to switch between one fund class to another depending on the risk factor he wishes to be in. ULIPs offer a better return than the traditional endowment plans and offer a great deal of flexibility along with great returns making them the finest product offering. We at Bajaj Allianz Life Insurance have developed a number of ULIP products which range from single premium to a regular premium option along with investment funds ranging from index funds to mid-cap funds and debt market linked funds.

WEALTH PLAN

Bajaj Allianz Wealth Insurance Plan is a hassle-free way of investing your money and at the same time taking care of your insurance needs. The plan gives investorthe benefits of paying a single premium, so investor don't have to worry about due dates, repetitive paperwork and renewals or constantly make phone calls to your financial advisor. Apart from this, the high allocation offered by the plan allows investorto meet your financial goals. Wealth Insurance Plan provides investorthe option to decrease your sum assured. Systematic switching option to manange your investments better and optional rider benefits to enhance your protection are also some features of Wealth Insurance Plan.

GROWTH PLAN
Bajaj Allianz Shield Insurance Plan, a single premium fixed-term unit-linked insurance plan gives investorthe choice of investment options to achieve your desired objective at maturity. This plan also gives investorguaranteed unit price at maturity with Shield Plus Fund III. your choice and units are allocated depending on the unit price of the fund(s). The value of your policy is the total value of units that investorhold in the fund .Bajaj Allianz Shield Insurance Plan is a simple to understand fixed-term unit-linked life insurance plan. Single premiums & any top-up premium paid by you, net of premium allocation charge is invested in the fund(s) of The mortality charge, the policy administration charge and the rider premium charge(s) (if any) are deducted monthly through cancellation of units. Fund Management Charge is adjusted in the unit price.

PENSION PLAN
Pension Guarantee Plan ensures regular Income after Retirement. for Life. With Bajaj Allianz Pension Guarantee Plan, you can ensure a regular income after retirement. The plan offers you a range of immediate annuities to choose from. All you have to do is pay a lump sum amount to Bajaj Allianz Life Insurance Company, and the annuity payments will start after expiry of monthly/quarterly/half-yearly/yearly interval corresponding to the payment mode selected by you. Under all options, annuity is payable for life, so you don't have to worry about your income stopping at any age.

CHILD PLAN
Child has miles to go and Bajaj Allianz have promises to keep. Taking care of a child is perhaps the most important job a parent can have. It is but natural that you would like to give your child your best, and therefore, this is the time when careful financial planning can help you fulfill the aspirations that you have for your children. The Bajaj Allianz Child Gain Solutions help you to enjoy the joys of parenthood responsibly, with the reassurance of a secure future for your child.

BHARTI AXA LIFE
Bharti AXA Life is a life insurance player that was started in 2006. It brings together strong financial expertise of the Paris-headquartered AXA Group, and Bharti Enterprises - one of India's leading business groups with interests in telecom, agricultural business, financial services, and retail. The joint venture has a 74% stake from Bharti and 26% stake from AXA Asia Pacific Holdings Ltd.(APH).The company launched national operations in December 2006. Today, Bharti AXA Life has a national footprint of distributors trained to provide quality financial advice and insurance solutions to the large Indian customer base. Bharti AXA Life offers a range of innovative products and services that cater to specific insurance and wealth management needs of customers.

Wealth plan:

Bharti AXA Wealth Builder is an exclusive plan crafted for elite achievers like you. An investment cum insurance plan that will actively help in building your wealth and give you twin advantage of exclusive funds (actively managed for you) along with choice of limited premium payment term. This plan provides the financial protection to your loved ones and builds up your wealth effortlessly. This plan also gives Bumper Addition to the fund value at Maturity.

CHILD PLAN

Bharti AXA life Insurance future confident is a unit linked child plan. On maturity of the Policy, you will get the policy fund value plus jump-start benefit. In the Unfortunate event of death of the life insured during the policy benefit period, the beneficiary would get sum assured immediately and all the future premiums payable till maturity are waived off and Bharti AXA life will pay all those premiums into the investment funds. The policy continues until maturity with the nominee having the right to exercise all the applicable benefits under the policy.

INVESTMENT PLAN
As a judicious family man, our priority is to secure the well-being of those who depend on them. Not just for today, but also in the long term. More importantly, you have to ensure that family¶s future expenses are taken care, even if something unfortunate were to happen to wage earner of the family. Their Investment Plans provide us the assurance of lump sum funds for the family¶s future expenses. While providing an excellent savings tool for your short term and long term financial goals, these plans also assure the family a certain sum by way of an insurance cover.

PENSION PLAN
Pension plans provide financial security to policyholders during their retirement days and so it¶s important to choose a pension plan carefully..Sky high costs throw even a well-salaried person off balance. With rates rising everyday, you can imagine how high they will be when you are about to retire. It is reasonable to start thinking about a good retire plan that fits your needs. Begin by understanding the pension amount you would require and the premiums you can afford. India has a growing elderly population with most of them having no formal access to retirement benefits. Most are still dependent on their children for old age care. The government has set up Pension Fund Regulatory Development Authority to promote old-age income security by establishing, developing and regulating pension funds.Pension Plans are individual insurance plans that impact your future by providing financial stability during old age.

ICICI PRUDETIALS LIFE INSURANCE

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and Prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

They began their operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide reach includes over 1,900 branches (inclusive of 1,074 micro-offices), over 210,000 advisors; and 7 banch assurance partners.

For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India. The ICICI Prudential edge comes from our commitment to our customers, in all that we do - be it product development, distribution, the sales process or servicing. Here's a peek into what makes them leaders.

1. Their products have been developed after a clear and thorough understanding of customers' needs. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee their child's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after investor retire, or Health insurance that arms investor with the funds investor might need to recover from a dreaded disease.

2. Having the right products is the first step, but it's equally important to ensure that their customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base

across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute their products .

3. Robust risk management and underwriting practices form the core of their business. With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and hasslefree claims process.

4. Entrusted with helping their customers meet their long-term goals, we adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term.

5. Last but definitely not the least, their team is given the opportunity to learn and grow, every day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they can deliver on their promise to cover you, at every step in life.

PENSION PLAN

A retirement plan is an assurance that investor will continue to earn a satisfying income and enjoy a comfortable lifestyle, even when investor are no longer working. To understand why an increasing number of individuals have already started planning for their retirement, and why investor should too, read on.

Independence is the new way of life: An increasing number of young Indian professionals are moving away from the traditional joint family structure. Since support no longer comes easily, parents have realized the need to provide for themselves during their retirement years.

Costs set to soar: Skyrocketing costs throw even a well-salaried person off balance. With rates rising everyday, investor can imagine how high they will be when investor are ready to retire. A retirement plan provides investor with a steady income every month, to arm investor in the face of rising costs.

To understand how inflation can impact their monthly expenses, use their special tool, the Inflation Index calculator.Non-earning retirement phase is now longer: Only 4% of India working population- mostly government employees ± are covered by pensions. The remaining 96% comprises self-employed and salaried professionals who do not have a formal, mandated provision for pensions.

LIFE INSURANCE CORPORATION (LIC)
Life insurance ensures that their family will receive financial support in their absence. Put simply, life insurance provides their family with a sum of money should something happen to you. It protects their family from financial crises. In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers investor to accumulate wealth-to buy a new car, get their children married and even retire comfortably. Life insurance also triples up as an ideal tax-saving scheme.

PENSION PLAN
LIC¶s Pension Plus is a unit linked deferred pension plan, which provides investora minimum guarantee on the gross premiums paid. The plan is without any life cover. Investor have a choice of investing ytheir premiums in one of the two types of investment funds available. Premiums paid after deduction of allocation charge will purchase units of the Fund type chosen. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the Net Asset Value (NAV).

CHILD PLAN
LIC¶s Child Fortune Plus is a unit linked plan which offers investor solution to meet their child¶s educational and other needs. Investor can insure their self under this plan if investor are the parent of a child up to the age of 17 years last birthday in case of single premium policies and age of 10 years last birthday in case of regular premium policies. The child named under the policy shall be the nominee. There will not be any insurance coverage on the life of the child, but the policy will be allowed based on the age of the child. The policy will continue till the child attains the age of 25 years last birthday or till investor attain the age of 75 years nearest birthday, whichever is earlier. Investor can pay the premiums either in lump sum (single premium) or regularly throughout policy term. The death benefit under the policy shall be the Sum Assured.

Investor can choose the level of cover (Sum Assured) within the limits, which will depend on whether the policy is a Single premium or Regular premium contract, their age and the amount of premium investor agree to pay. In addition, for regular premium policies, in case of death of the life assured during the term of the policy, the plan also provides for waiver of all future premiums including outstanding premiums, if any, provided life cover is in force. Investor will also have an option to make additional investments under the policy through Topup premiums.Their types of investment Funds are offered. Premiums paid after allocation charge will purchase units of the Fund type chosen. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the Net Asset Value.

GROWTH PLAN
Growth Plans help insurer¶s family from uncertainties in life due to financial losses in terms of loss of income that may dawn upon them in case of untimely demise or critical illness. Securing the future of one¶s family is one of the most important goals of life. Protection Plans go a long way in ensuring family¶s financial independence in the event of unfortunate demise or critical illness.

INVESTMENT PLAN
Life Insurance Corporation¶s Investment Plans provide us the assurance of lump sum funds for the family¶s future expenses. While providing an excellent savings tool for your short term and long term financial goals, these plans also assure the family a certain sum by way of an insurance cover. All the people have always given their family the very best. And there is no reason why they shouldn¶t get the very best in the future too. As a judicious family man, your priority is to secure the well-being of those who depend on them. Not just for today, but also in the long term. More importantly, you have to ensure that family¶s future expenses are taken care, even if something unfortunate were to happen to wage earner of the family

STATE BANK OF INDIA(SBI) LIFE INSURANCE
Unit Linked Insurance Plans are long term investment cum protection plans that offer you an opportunity of availing market linked returns while providing life insurance protection. Depending on your risk appetite, you have the option of choosing from host of funds having varied degree of risk exposure. Flexibility and transparency are some of the other attractive features that make ULIPs an attractive long term investment option.

PENSION
SBI Life long pension plus is a unique individual non participating traditional plan which gives you total safety and security while offering you complete transparency flexibility. This plan is a perfect way for you to accumulate your saving and annuity with it, a time of your choice, to give you regular income. You would agree will surely give you a secure future and a joyous retirement

CHILD PLAN
Life begins afresh when we become a parent. It¶s a joy you never felt and a feeling you never experienced. When our child takes baby steps towards you, Amidst all this divine happiness, there¶s a new sense of responsibility that fills your heart. Like we may not really believe that life¶s a rose bed or a tender cushion, but you certainly want it to be for our lovely children. At SBI Life, we understand and we provide you with a unique, flexible and all-encompassing solution through our SBI Life ± unit plus child plan. Choose the one that suits you and your child¶s needs best. Our specially crafted unit plus child plan is as accommodating as you are to your child.

INVESTMENT PLAN
SBI Investment Plan offers you a maturity benefit and a death benefit through its remarkable banking system. The investment-cum-protection plan has been updated with guaranteed additions.SBI Life-Unit Plus II attempts to fulfill financial & insurance needs via non participating product only. No surrender charges after three years add a significant feature and you can also save your income tax and may get the benefit of Section 80C of Income Tax Act on premium.SBI Investment Plans secure our future and we live a safe and sound life with the investment plan. We do not need to opt for another investment option to realize your dreams.

GROWTH PLAN
Growth Plans help insurer¶s family from uncertainties in life due to financial losses in terms of loss of income that may dawn upon them in case of untimely demise or critical illness. Securing the future of one¶s family is one of the most important goals of life. Protection Plans go a long way in ensuring family¶s financial independence in the event of unfortunate demise or critical illness. They are all the more important if you are the chief wage earner in family.

WEALTH PLAN
Wealth Insurance Plan provides investor the option to decrease your sum assured. Systematic switching option to manage your investments better and optional rider benefits to enhance your protection are also some features of Wealth Insurance Plan. The plan gives investor the benefits of paying a single premium, so investor don't have to worry about due dates, repetitive paperwork and renewals or constantly make phone calls to your financial advisor. Apart from this, the high allocation offered by the plan allows investor to meet your financial goals.

CHAPTER- 5 DATA ANALYSIS & INTERPRETATION

CHILD PLAN - BETA

Companies
ICICI prudential life insurance Bharti AXA life insurance HDFC standard life insurance Bajaj Allianz life insuance MAX new York life insurance Life insurance corporartion State bank of India

Ratio
-0.024177371 0.09589934 -0.002327715 0.032559646 0.079783889 0.011635307 -0.002946575

Child Plan
0.12 0.1 0.08 0.06 0.04 0.02 0 -0.02 -0.04 ICICI pru life Bharti AXA HDFC Bajaj allianz Max New insurance life standard life life york life insurance Insurance insurance Insurance LIC SBI life Insurance Child Plan

CHILD PLAN - SHARPE RATIO
Companies Ratio -0.206166954 0.09589934 -0.105721537 0.492946501 -0.918915965 0.117594797 -0.193051355

ICICI prudential life insurance Bharti AXA life insurance HDFC standard life insurance Bajaj Allianz life insuance MAX new York life insurance Life insurance corporartion State bank of India

Child Plan
0.6 0.4 0.2 0 -0.2 -0.4 -0.6 -0.8 -1 ICICI pru Bharti AXA HDFC Bajaj Max New life life standard allianz life york life insurance insurance life insurance Insurance Insurance LIC SBI life Insurance Child Plan

INTERPRETATION- CHILD PLANS- BETA After the comparison of Child plan of public sector and private sector life insurance ULIP schemes, study have drawn certain conclusion. Private sector 1. ICICI Prudential life insurance smart kid new unit has shown a negative beta with comparison to market, Here the main thing which need to be noted is that, beta of rest of company¶s child plan is positive, it certainly indicate the lower returns out of this plan. Negative beta of ICICI pru child plan shows the bear market were market prices are going down. 2. Bharti AXA life insurance child plan has shown a positive beta but surely less than one with comparison to market. Bharti AXA Child plan has indicated a less volatility but this beta also indicating the lower returns with comparison to market. 3. HDFC standard life insurance star suvidha child plan has shown a slightly negative beta with comparison to market. Also the negative beta shows that it will be volatile when there is bear market, otherwise it will give a negative return on the portfolio 4. Bajaj Allianz life insurance child plan has shown a negative beta where as Max new York life child plan has shown a positive beta slightly better than Bajaj Allianz child plan which is certainly less than one and less volatile but it will not result in a higher returns in comparison to market.

Public sector- BETA In public sector, Life Insurance corporation has shown a beta more than zero but less than one. As it has a positive beta it can be said that it will be a less volatile investment but not an investment which result in good returns because very low positive beta. On the other hand SBI life insurance ULIP child plan has shown a slightly negative beta and it will be less volatile if market goes down otherwise, this scheme will end up with lower returns.

CHILD Plan ± Sharpe ratio After the comparison of Ulip schemes with the risk free investment. Private sector life insurance companies like ICICI prudential and HDFC standard life insurance which has shown a negative Sharpe ratio in comparison to risk free investments which indicate that risk free investment will perform better than the child plan of these companies. Where as child plans of Bharti AXA, Bajaj Allianz Max New York, has shown a positive sharpe ratio but that is slightly more than zero which shows it will generate return more than risk free investment but not a very high return. And in public sector companies SBI has shown a negative sharpe ratio in comparison to risk free investments, where as LIC has shown a positive sharpe ratio which indicate more returns than risk free investments.

PENSION PLAN - BETA
Companies Ratio
0.012752219 -0.224033352 -0.003132763 0.007758271 -0.011217547 -0.010050327 -0.000580819

ICICI prudential life insurance Bharti AXA life insurance HDFC standard life insurance Bajaj Allianz life insuance MAX new York life insurance Life insurance corporartion State bank of India

Pension Plan
0.05 0 ICICI pru life Bharti AXA HDFC Bajaj allianz Max New insurance life standard life life york life -0.05 insurance Insurance insurance Insurance -0.1 -0.15 -0.2 -0.25 LIC SBI life Insurance

Pension Plan

PENSION PLAN - SHARPE
Companies Ratio
0.278585006 -0.224033352 -0.089094755 -0.450715799 -0.459654345 -0.32665253 -7.951562785

ICICI prudential life insurance Bharti AXA life insurance HDFC standard life insurance Bajaj Allianz life insuance MAX new York life insurance Life insurance corporartion State bank of India

Pension Plan
0 -1 -2 -3 -4 Pension Plan -5 -6 -7 -8 -9 ICICI pru life Bharti AXA HDFC Bajaj allianz Max New insurance life standard life life york life insurance Insurance insurance Insurance LIC SBI life Insurance

INTERPRETATION

Private sector - Pension plan± BETA 1. ICICI prudential life insurance Life stage pension plan has shown a positive beta with comparison to market This beta indicate less volatility but also indicate less returns with comparison market. 2. Bharti AXA life insurance dream life pension plan has shown a relatively more deline in beta with comparison to market. This certainly showcases the poor volatility of the pension plan of Bharti AXA pension plan. 3. HDFC standard life insurance unit link pension plus plan has indicated a beta as almost near to zero which shows that it is an investment with almost risk fee. It is as safe as risk free investment.Where as Bajaj Allianz has shown a positive beta which is again shows a less return investment. 4. Max New York life insurance Smart invest pension plan has indicated a negative beta with comparison to market. Negative beta of Max New York Life Insurance which specify the lower returns. Public sector- Pension plan 1. In public sector, Life insurance corporation has shown a negative beta with comparison to market where as SBI life insurance has also shown a negative beta which is very close to zero it can be consider as risk free ULIP plan as same as risk free investment. Sharpe ratio ± Pension plan 1. After the comparison of ULIP schemes with the risk free return, all the private sector life insurance companies like Bharti AXA life insurance , HDFC standard life insurance, Max new York life and ICICI prudential life, Bajaj Allianz life insurance all the private companies has shown a negative sharpe ratio, in public sector companies like LIC and SBI life insurance has also shown a sharpe ratio which means all the companies considered in this study has shown a negative return with comparison to investment in government securities which is a risk free return investment. Investor will be in a better position if they invest in risk free investment in comparison to Ulip pension schemes.

GROWTH PLAN - BETA
Companies Ratio
-0.024366817 0.054837787 -0.0043825 0.0018899 -0.008598561 0.002549593 0.003014338

ICICI prudential life insurance Bharti AXA life insurance HDFC standard life insurance Bajaj Allianz life insuance MAX new York life insurance Life insurance corporartion State bank of India

Growth Plan
0.06 0.05 0.04 0.03 0.02 Growth Plan 0.01 0 -0.01 -0.02 -0.03 ICICI pru Bharti AXA HDFC Bajaj Max New life life standard allianz life york life insurance insurance life insurance Insurance Insurance LIC SBI life Insurance

GROWTH PLAN - SHARPE
Companies Ratio
-0.225655141 0.054837787 -0.188654236 0.079949982 -0.290393173 -0.33291121 -4.287533499

ICICI prudential life insurance Bharti AXA life insurance HDFC standard life insurance Bajaj Allianz life insuance MAX new York life insurance Life insurance corporartion State bank of India

Growth Plan
0.5 0 -0.5 -1 -1.5 -2 -2.5 -3 -3.5 -4 -4.5 -5 ICICI pru Bharti AXA HDFC Bajaj Max New life life standard allianz life york life insurance insurance life insurance Insurance Insurance LIC SBI life Insurance

Growth Plan

INTERPRETATION
Private sector ± Growth plan ± BETA 1. ICICI prudential life insurance life link growth plan has shown a negative beta with comparison to market. ICICI prudential has shown relatively more decline than other Ulip plan considered in this study. This decline clearly shows the lower returns. 2. Bharti AXA life insurance has shown relatively good sign of improvement, Growth plan of Bharti AXA life insurance has shown a positive beta which is the most highest among all the companies considered in this study. And it indicates relatively higher returns comparative to other schemes. 3. HDFC standard life insurance has shown a negative beta in comparison to market, certainly indicates a low return. Max New York life has also shown a negative beta, it will consider as very small decline but certainly a risk free investment. 4. Bajaj Allianz life insurance has shown an indication of growth but in its is a small growth.

Public sector ± Growth plan ± BETA 1. In public sector, Life Insurance Corporation and SBI life insurance has shown a positive beta. Both the public sector life insurance company gives an indication of low volatility.

Sharpe ratio 1. After the comparison of ULIP schemes with the risk free return investment all the private sector companies which ICICI prudential life insurance, HDFC standard life insurance, Max new York life insurance has shown a negative sharpe ratio with comparison to risk free investment. Where as Companies like Bharti AXA life insurance, Bajaj Allianz life insurance has shown a positive sharpe ratio which indicate that these companies growth plan will gives more return than the risk free investments.

INVESTMENT PLAN - BETA
Companies Ratio
-0.024177371 0.09589934 -0.011036724 0.004209379 -0.011217547 -0.010753216 -0.002946575

ICICI prudential life insurance Bharti AXA life insurance HDFC standard life insurance Bajaj Allianz life insuance MAX new York life insurance Life insurance corporartion State bank of India

Investment Plan
0.12 0.1 0.08 0.06 0.04 0.02 0 ICICI pru life Bharti AXA HDFC Bajaj allianz Max New insurance life standard life york life insurance life insurance Insurance -0.04 Insurance -0.02 LIC SBI life Insurance Investment Plan

INVESTMENT PLAN - SHARPE
Companies Ratio
-0.205878339 0.09589934 -0.07260209 -0.825274359 -0.459654345 -0.17950835 -0.193051355

ICICI prudential life insurance Bharti AXA life insurance HDFC standard life insurance Bajaj Allianz life insuance MAX new York life insurance Life insurance corporartion State bank of India

Investment Plan
0.2 0 -0.2 -0.4 -0.6 -0.8 -1 ICICI pru Bharti AXA HDFC Bajaj allianz Max New life life standard life york life insurance insurance life insurance Insurance Insurance LIC SBI life Insurance

Investment Plan

INTERPRETATION
Private sector ± Investment plan ± BETA 1. ICICI prudential life insurance has shown a negative beta with comparison to market. And the decline shown by the Beta of ICICI pru Investment plan is relatively more, when its talks about the other investment ulip plan considered in this study. It shows the lower returns generated by this plan as well as it will be better if there is a bear market. 2. Bharti AXA life insurance has indicated a positive beta in comparison to market. It also specify about its less volatility and relatively higher returns than other schemes. 3. HDFC standard life insurance has shown a negative beta with comparison to market. But the decline shown by HDFC standard life insurance has relatively same as compare to other companies which have also shown a negative beta. So it indicates the low returns. 4. Bajaj Allianz life insurance has shown a slight increase in beta in comparison to market and also other companies considered in this study. And the increase shown by Bajaj Allianz is very high with comparison to private and public companies. It will consider as less volatile but it will not go up at the rate of market rise. 5. The second largest decline in beta is shown by Max new York life insurance with comparison to market. Investment in this ulip schemes may be less risk when market tends to go down. Public sector- investment plan- BETA 1. In public sector, Life Insurance Corporation and State bank of India life insurance both has shown a negative beta. The decline which has indicated by these public sector companies is not that huge but in certainly shows that ulip investment in public sector may not give the desire returns to the investors with the market movements. Sharpe ratio- Investment plan After the comparison of ulip schemes with the risk free returns investment. Apart from Bharti AXA life insurance all the life insurance companies considered in this study were under performed with comparison to risk free return. Bharti AXA life insurance did performed better but it is not that huge to be considered as a good investment option with comparison to risk free investment is concerned.

WEALTH PLAN - BETA
Companies Ratio
-0.024177371 0.09589934 -0.002327715 0.002661062 -0.001071709 -0.016125475 -0.002946575

ICICI prudential life insurance Bharti AXA life insurance HDFC standard life insurance Bajaj Allianz life insuance MAX new York life insurance Life insurance corporartion State bank of India

Wealth Plan
0.12 0.1 0.08 0.06 0.04 0.02 0 -0.02 -0.04 ICICI pru Bharti AXA HDFC Bajaj Max New life life standard allianz life york life insurance insurance life insurance Insurance Insurance LIC SBI life Insurance Wealth Plan

WEALTH PLAN - SHARPE
Companies Ratio .

ICICI prudential life insurance Bharti AXA life insurance HDFC standard life insurance Bajaj Allianz life insuance MAX new York life insurance Life insurance corporartion State bank of India

-0.205878339 0.09589934 -0.105721537 -0.610479001 -0.313733783 0.053363726 -0.192876696

Wealth Plan
0.2 0.1 0 -0.1 -0.2 -0.3 -0.4 -0.5 -0.6 -0.7 ICICI pru Bharti AXA HDFC Bajaj Max New life life standard allianz life york life insurance insurance life insurance Insurance Insurance LIC SBI life Insurance Wealth Plan

INTERPRETATION

Private sector ± Wealth ± BETA 1. ICICI prudential life insurance has shown a decline in beta with comparison to market. This decline is considered to a greater one because in comparison to other life insurance companies considered in this study are not that much decline or shown a very slight decline or increase that is why the decline shown by ICICI prudential life insurance wealth plan is greater than other insurance companies. Also it indicate low returns out of this investment. 2. Bharti AXA life insurance wealth plan has shown positive beta in comparison to market and as well as other companies included in this study. This wealth plan indicates less volatility but important thing is that it will not move with the market but we can say that it move less than the market movement. Bharti AXA is the only company with Bajaj Allianz has shown a positive beta but Bharti AXA life is the only company which performed relatively better than other companies. 3. HDFC and Max new York life insurance has shown a negative beta with comparison to market. Both the companies has shown a negative beta but the point to be noted is that both the companies have very small decline, which is almost equal to zero and it is risk free investment. 4. Bajaj Allianz has shown positive beta with comparison to market, this indicate the less volatility but certainly not a higher returns with comparison to market.

Public sector- Wealth plan In public sector, Both the public sector life insurance companies i.e. Life insurance corporation and state bank of India life insurance has indicated a negative beta with respect to market and as well as other companies. Life Insurance Corporation has shown negative beta which is more than the State bank of India life insurance. Both the public sector has indicated the very low risk but at the same time it will perform against the market.

Sharpe ratio After the comparison of Ulip schemes with comparison the investment in government securities. The wealth plan of all the companies included under this study has under performed with comparison to risk free investments. Bharti AXA life insurance wealth plan has performed better than any other Life insurance ulip wealth schemes. But that Positive growth of Bharti AXA life insurance is not that huge so as to attract good number of investor towards wealth plan.

FINDINDS AND SUGGESTION
1. Child plan: After the comparison of Ulip child plan of private and public sector companies, Life Insurance corporation of public sector has shown a indication of less volatility from the investment in Ulip child plan against the risk free investment, which means the investment in Ulip child plan will certainly gives a return greater than the risk free investment made in government securities. Where as, from private sector Bajaj Allianz will give a greater returns to their investor with comparison to risk free investment. If we compare the risk of investment in public and private sector life insurance Ulip child plan then we can certainly draw the conclusion that Bajaj Allianz ulip child plan will be the best investment portfolio available for investment among public and private sector life insurance ULIP child schemes. 2. Pension plan: After the comparison of Pension plan between public and private sector ulip pension scheme of every company which is included in this study has shown a return less than the return generated from the risk free investment. So the investment will be of more volatile. 3. Growth plan: After the analysis of ulip growth plan of public and private sector companies we can clearly conclude that growth plan of public sector life insurance companies has certainly giving a return less than the risk free investment. Where as, in private sector Bharti AXA life insurance and Bajaj Allianz life insurance has shown a slightly more return as compare to investment made in risk free securities. But the point to be noted is that besides the fact that Bharti AXA and Bajaj Allianz life insurance has shown a slightly more return than other growth plan but the return is too low and we can not say that it is a risk free investment. In fact, if we have to choose among both the sectors for investment then we can invest in private sector life insurance ulip growth plan of Bharti AXA life insurance or Bajaj Allianz with a point of view of risk free investment. 4. Investment plan: After the comparison of ulip investment schemes of public and private sector life insurance companies then it can be said that among both the sectors, private sector has performed better particularly Bharti AXA life insurance. Except Bharti AXA life insurance ulip investment scheme all the other schemes has under performed. It clearly indicates that investment in Bharti AXA life insurance will be the best option available for the risk free investment.

5. Wealth plan: After the analysis of wealth schemes of public and private sector life insurance companies again it can be concluded that among both the sector private and public sector company Bharti AXA from private sector and LIC from public sector has shown the indication of more returns in comparison to risk free investment. And also if we have to the select the best risk free investment among the both of the sector then Bharti AXA life insurance from private sector has evolved as a risk free investment.

Bibliography
Website:
1. http://www.google.com 2. http://www.licindia.in/plan_navs.htm 3. https://www.iciciprulife.com/ipru/Current_UnitValue 4. http://www.bajajallianz.com/Corp/life/ulip 5. http://www.maxnewyorklife.com/Fund_Performance 6. http://www.sbilife.co.in/sbilife/content 7. http://www.hdfclife.com/Products 8. http://www.indiainfoline.com/PersonalFinance/Insurance/Historical-Unit 9. http://www.wealth.moneycontrol.com/planinsurance/

Book Referred:
1. Pandey I M, Finacial Mannagement, Vikas publishing house Pvt Ltd,2004 2. Bhat Sudhindra, Financial Mannagement, Anurag jain publishing house Pvt Ltd,2008 3. Khan and Jain, Financial Management, Mcgraw-hill Education (india) Ltd (2005)