Submitted By:

POOJA N. MADANE
MMS (FINANCE)
ROLL NO: 20
“BANK OF BARODA”
A
PROJECT REPORT
ON
“Comparative Study of Investments in Mutual funds and
Life Insurance Products”
02nd MAY 2018 – 30th JUNE 2018
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
MASTER OF MANAGEMENT STUDIES
BATCH 2017-2019

ALKESH DINESH MODY INSTITUTE FOR FINANCIAL &

MANAGEMENT STUDIES
UNIVERSITY OF MUMBAI
 DECLARATION
I hereby declare that the project entitled “Comparative Study of Mutual funds and
Life Insurance Products” submitted in partial fulfilment of the requirements for the MBA
Degree, is my original work; and that the project has not formed the basis for the award of
any degree, associate ship, fellowship or any other similar titles.

Pooja Madane

Place: Mumbai

Date: Signature
 CERTIFICATE OF APPROVAL

Place: Kalina (Mumbai)

Date:

________________ ________________

Dr. Smita Shukla Examiner

Director
 ACKNOWLEDGEMENT

I would like to take this opportunity to thank Bank of Baroda for giving me the privilege
of interning with such a great institution.

I also express my extreme gratitude to the Director (Dr. Smita Shukla) of my institute,
I would like to convey my sincerest gratitude to my mentor Mr Vikram. T. Gotam. for
being my guiding light throughout the duration of my project. He ensured that I was well
versed with the requirements of the project from the first day and guaranteed that all
bottlenecks were resolved as and when I faced them. He was a great support and always took
out time to mentor me despite his busy schedule at work.

I would like to express my profound gratitude to Mrs. Kavita Pandey, Professor,

Alkesh Dinesh Mody Institute for Financial and Management Studies, in for his continuous
support and guidance both pre and post my internship

I would like to thank Staff members of Baroda Pioneer and India first Life Insurance
also who helped me in streamlining my research and taught me the basic nuances of my
project. They accompanied me to the market a few times to make me understand the industry
better and gave me their valuable feedback on my final deliverables and gave suggestions to
make it better.

And finally, I would like to extend sincere thanks to Bank of Baroda for entrusting a
great deal of trust in me to accomplish this project.
 TABLE OF CONTENTS

Sr. No PARTICULARS Page No.

1 Summary 1

2 Introduction About Bank 2

3 Introduction About Project 8

4 Comparative Study of Mutual Funds 9

5 Categorization and Rationalization of Mutual Fund Schemes 17

in India

6 Baroda Pioneer Asset Management Company 23

7 Comparative Study of Life Insurance Life Insurance 34

8 India first Life Insurance 37

9 Methodology 44

10 Conclusion 46

11 Bibliography 47
 EXECUTIVE SUMMARY

Project Title – Comparative Study of Investments in Mutual funds and Life Insurance
Products

Project Deliverables

 Study about Mutual funds and Life Insurance

 Analysis of all schemes of Baroda Pioneer and India first Life Insurance
 Comparative study of different schemes of Mutual funds and life Insurance Products
 Comparison of products with that of competitors.

I was assigned Bank of Baroda, Regional Office Mumbai. The primary objective of my
internship was to Comparative study of different schemes of Mutual funds and life Insurance
Products. These Products of Bank of Baroda not fully controlled by Bank. These were in
association with other Private companies. The Mutual fund schemes were in association with
Pioneer Investments with Joint Venture named as Baroda Pioneer, the same is wit Life
Insurance business which was marketing its products under India first Life Insurance. The
initial days in Regional Office were spent in trying to understand the current system of
functioning at Bank. I spent the first week trying to understand role of different Departments
of Bank. Also, how Mutual funds and Life Insurance Products contribute to Revenue
generation for the Bank. After getting familiar with core business of Bank, I started looking
into my Project topic and spent time meeting with my Mentors understand on what model
does these schemes and Products are sold to customers

After understanding the functioning, I formulated a plan and decided to work for my
Project accordingly as my topic was related to Mutual funds and Life Insurance. To do this I
have to visit different officers of Bank of Baroda I have coordinate with them accordingly.
The idea was to study different products of Mutual Funds and Life Insurance offered at Bank
of Baroda. The next couple of weeks were spent visiting different branches and interacting
with customers regarding these Products. Also, at the same time I got the opportunity to
work closely and understand the differences of these Products and showcase the Products to
customer as per his/her risk-taking ability of investor. The aim was to create awareness
among customers regarding these Products and how to help them in managing their future
financial needs through Wealth management.

1
 INTRODUCTION

ABOUT BOB
Bank of Baroda (BOB) was established on Jul 20, 1908 by Maharaja Sayajirao
Gaekwad III of Baroda State. In 1910, the bank opened its first branch in Ahmedabad
followed by another in Mumbai in 1919. In 1930, BOB started offering safe deposit lockers
to its customers in Baroda. Soon after Independence, the bank began its overseas branch at
Mombassa (Kenya) in 1953, followed by its first European branch in 1957 at London. BoB
has total income of ₹ 47,365.55 Cr. in financial year 2014-15, a network of 5336 branches in
India and abroad, and over 8000 ATMs
The various functions of bank are included under: Personal, Business, Corporate,
International, NRI Services, Treasury and Rural. The Department of Personal is related to
Deposits, Retail Loans, Lockers and Debit and Credit cards. The Business Department is to
take care if the small and medium business enterprise. Services such as Deposits, Loans &
Advances, Collection Services, Working Capital Finance, Term Finance, Non-Fund based
Facilities, Trade Finance, Merchant Banking are offered under this. Bank of Baroda
Corporate Banking offers various options that help fund and enable corporations in their
investment and expansion plans. These products also offer merchant banking and cash
management solutions. With a network of 106 branches / offices in 24 countries the bank is
offering International services like- Foreign Currency Credits, External Commercial
Borrowings, FCNR (B) Loans, Export Credit (Rs), Import Finance. BOB has Specialized
Integrated Treasury Branch (SITB) in Mumbai for its treasury operations. Under Rural
Banking Service Bank of Baroda have special offerings that extend credit facilities to small
and marginal farmers, agricultural labourers and cottage industry entrepreneurs.
The bank has entered into Wealth Management to tap the potential. Therefore, Wealth
Management, as a business line is being given sharper focus. To offer these services bank has
entered in to this segment with joint venture.
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 OUR MISSION
To be a top-ranking National Bank of International Standards committed to augmenting stake
holders' value through concern, care and competence

OUR LOGO

Our new logo is a unique representation of a universal symbol. It comprises dual ‘B’
letterforms that hold the rays of the rising sun. We call this the Baroda Sun.
The sun is an excellent representation of what our bank stands for. It is the single
most powerful source of light and energy – its far-reaching rays dispel darkness to illuminate
everything they touch. At Bank of Baroda, we seek to be the source that will help all our
stakeholders realise their goals. To our customers, we seek to be a one-stop, reliable partner
who will help them address different financial needs. To our employees, we offer rewarding
careers and to our investors and business partners, maximum return on their investment.
The single-colour, compelling vermillion palette has been carefully chosen, for its
distinctiveness as it stands for hope and energy.
We also recognize that our bank is characterised by diversity. Our network of
branches spans geographical and cultural boundaries and rural-urban divides. Our customers
come from a wide spectrum of industries and backgrounds. The Baroda Sun is a fitting face

3
for our brand because it is a universal symbol of dynamism and optimism – it is meaningful
for our many audiences and easily decoded by all.
Our new corporate brand identity is much more than a cosmetic change. It is a signal
that we recognize and are prepared for new business paradigms in a globalised world. At the
same time, we will always stay in touch with our heritage and enduring relationships on
which our bank is founded. By adopting a symbol as simple and powerful as the Baroda Sun,
we hope to communicate both.

BOARD OF DIRECTORS

Non-Executive Chairman

Shri Ravi Venkatesan

Mr. Ravi Venkatesan is the founder Non- Executive Chairman of Social Venture
Partners India, a national network of philanthropists addressing social problems through
venture philanthropy. Ravi is a Venture Partner at impact investor Unitus Seed Fund and
serves on the boards of Rockefeller Foundation, Infosys Ltd, and Strand Lifesciences. He is
the author of an acclaimed book "Conquering the Chaos: Win in India, Win Everywhere"
published by Harvard Business Review.
Ravi has a BS from IIT Bombay, an MS from Purdue University, and an MBA from
Harvard Business School where he was a Baker Scholar. He is a recipient of the Indian
Institute of Technology Bombay’s Distinguished Alumnus Award and Purdue University's

4
 Distinguished Engineering Alumnus Award. He was voted as one of India's best management
thinkers by Thinkers50

Managing Director & CEO

Shri P.S. Jayakumar

Mr. P. S. Jayakumar, 56 years is a Chartered Accountant by qualification and

additionally holds a Post Graduate Diploma in Business Management from XLRI
Jamshedpur. He also has the distinction of being a Chevening Gurukool Scholar through the
London School of Economics and Political Science.
Prior to his appointment as MD & CEO of Bank of Baroda in October 2015, he was
the Co-founder and CEO of VBHC Value Budget Housing (VBHC), a leader in housing for
low- and moderate-income household from 2009 to 2015. He was also the Co-founder and
Non-Executive Promoter Director for Home First Finance Company (HFFC), a housing
finance institution regulated by the NHB, focused on financing customers who are not able to
access mortgage loans from the banking sector.
Mr. Jayakumar joined Bank of Baroda on October 13, 2015 and has since been
steering the Bank's comprehensive transformation journey currently underway across all
aspects - business, digital and technology, compliance and controls, organization and people.
Mr. Jayakumar is currently a member of the Board of Directors of the following entities that
are part of the Bank of Baroda Group:
 BOB Capital Markets Limited
 BOBCARDS Limited
 IndiaFirst Life Insurance Company Limited
 India International Bank Malaysia Berhad

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Executive Directors

Shri. Mayank K. Mehta Shri. Ashok Kumar Garg Smt. Papia Sengupta

Directors

Shri. Debasish Panda Shri. Ajay Kumar Shri. Gopal Krishan Agarwal

6
Prof. Biju Varkkey Smt. Soundara Kumar

Shri. Bharatkumar D. Dangar Ms. Usha A Narayanan

7
 PROJECT INTRODUCTION

Wealth Management
Wealth Management is fast emerging practice in Banking. Ranging from Financial
Planning, Investor risk profiling, Asset allocation & Product selection, Portfolio tracking &
rebalancing; it comprises of all these services to suit the consumer especially high-net-worth
clients. There are two aspects to the wealth management process. One is protecting assets
from market crashes or slowdowns, availing tax advantages and capitalizing or hedging
against unexpected events. Second one is growing the asset values through actively
managing the risk and reward attempting to make financial gains for clients beating the
benchmark returns.
Two main Objectives:
1. Asset Management – which involves investing said amount in different asset classes,
ensuring appreciation of capital, protection of portfolio, tracking, rebalancing
portfolio and capital growth
2. Liability Management – Studying customer’s existing liabilities such as business
loans, home loans, personal loans etc and providing the required Life insurance cover
to protect his family from heavy outflows towards loan repayment in case of his
premature death. Also providing adequate cover to customer to ensure his family get a
big lump sum or certain fixed income for at least 5, 10, 15 years to maintain their
existing living standards in the case of customer’s unexpected death.
The objective of Project
 Study about Mutual funds under Asset Management and Life Insurance under
Liability Management.
 Analysis of all schemes of Baroda Pioneer and India first Life Insurance
 Comparative study of different schemes of Mutual funds and life Insurance Products
 Comparison of products with that of competitors.

Two main products under Wealth Management are as follow -

1. Mutual funds.
2. Life Insurance.

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 COMPARATIVE STUDY OF MUTUAL FUNDS

A Mutual fund is a scheme in which several people invest their money for a financial
clause. The collected money is invested in Capital markets & the money which they earned,
is divided based on the number of units which they hold.
The Mutual fund Industry was started in India in a small way with the UTI creating
what was effectively a small savings division within the RBI. This was successful for the next
25 years as it gave investors good returns. Due to this RBI gave a go ahead to Public sector
banks & financial institution to start Mutual Funds in India and their success gave way to
Private sector Mutual Funds.
The advantages of Mutual Funds are Portfolio Diversification, Liquidity, Professional
Management, Ease of Companies, Less Risk, Low Transaction cost, Transparency, Safety.
The Disadvantages of Mutual Funds are Cost, Index Does Better, Fees, No Control
over Investments, Profitability of High returns reduced significantly, and Personal Tax
situation is not considered.
Mutual Funds must follow specific rules and regulation which are prescribed by the
SEBI. AMFI is the apex body of all the Asset Management companies and is registered with
the SEBI. Association of Mutual Funds India has brought down the Indian Mutual Fund
Industry to a professional and healthy market with ethical lines enhancing.
There are many types of mutual funds in India. You can classify based on BY
STRUCTURE (Open Ended Schemes, Close-Ended Schemes & Interval schemes), BY
NATURE (Equity Fund, Debt Fund, Balanced Fund), BY INVESTMENT OBJECTIVE
(Growth Schemes, Income Schemes, Balanced Schemes & Money Market Schemes),
OTHER SCHEMES (Tax Saving Schemes, Index Schemes, Sector Specific).
Mutual Funds are very easy to buy and sell. You can buy mutual funds directly from
company or a broker. Before Investing in Mutual Funds, one must look at all the factors like
performance of the mutual funds from last 5 years, the returns given by mutual funds from
last 5 years & the company’s net worth must be considered.
There are two types of Mutual Funds in India Public Sector Mutual Fund & private
sector mutual Fund. In Public Sector Mutual Funds there are UTI Mutual Fund, State bank of
India Mutual funds, Bank of Baroda mutual funds and in private sector mutual funds there are
Mutual Funds, Bank of Baroda Mutual Funds & In Private sector Mutual Funds there are
Birla Sun Life Mutual, HDFC Mutual Fund, ICICI Prudential Mutual Fund etc.
9
 The Most trend of Mutual Funds is the aggressive expansion of Mutual Funds.
Nowadays there is lot of Competition within the Mutual Fund as there are lot of private sector
& Public sector mutual funds have entered the industry.
Returns Comparison has been done between two Mutual Fund Companies like
BARODA PIONEER Mutual Fund, HDFC Mutual Fund & SBI Mutual Fund. In this
comparison we had taken both small & midcap companies. In which markets they have
invested the investors’ money and how the returns for the 5 years has been done. It gives you
an Idea how you can and where you can invest.
“Mutual Funds are Subject to Market Risk, please read the offer document before Investing"

OBJECTIVE OF THE STUDY OF MUTUAL FUNDS

The objective of the study is to analyses, in detail the growth pattern of the mutual
funds industry in India and to evaluate performance of different schemes floated by most
preferred Mutual Funds in public fund in public and private sector.

The Main Objectives of this project.

 To Study about the Mutual Funds in India.
 To Study about returns of the Mutual Funds.
 To give brief Idea about mutual funds available in India.
 To give an idea about the schemes available.
 To study market trends in mutual funds.
 To study some mutual fund companies and their funds.
 To give idea about the regulation of mutual fund.
 To study about mutual fund schemes.

Many individuals own mutual funds today. Indeed, mutual fund industry is very big.
It comprises of many investors’ financial assets, whether for retirement or taxable saving
purposes. To a large extent, mutual funds are investment vehicle for the majority of
households in India.

The overall study of my study on this project is to know which companies provide
better returns HDFC Mutual funds & SBI Mutual Funds and calculate their returns from last

10
 5 years. We must examine carefully all the possibility while calculating the returns. I am
doing my Project on “Small & Midcap companies”. We must make comparison, so it is very
useful for investors to make a decision.

TYPES OF MUTUAL FUNDS SCHEMES IN INDIA

TYPES OF MUTUAL FUNDS

BY BY NATURE BY OTHER
STRUCTURE INVESTMENT SCHEMES

Open Ended Schemes Equity Fund Growth Scheme Tax

Close Ended Schemes Debt Fund Income Scheme Index Schemes

Interval Schemes Balanced Fund Balanced Scheme Money Sector Specific

Market Scheme

A) BY STRUCTURE
 Open-Ended - This scheme allows investors to buy or sell units at any point in time. This
does not have a fixed maturity date. Investors can conveniently buy & sell units at Net
Asset Value Related Prices. The key feature of Open-Ended scheme is liquidity.
 Closed-Ended - A closed-end fund has a fixed number of shares outstanding and
operates for a fixed duration (generally ranging from 3 to 15 years). The fund would be
open for subscription only during a specified period and there is an even balance of
buyers and sellers, so someone would have to be selling for you to be able to buy it.
Closed-end funds are also listed on the stock exchange, so it is traded just like other
stocks on an exchange or over the counter. Usually the redemption is also specified which
means that they terminate on specified dates when the investors can redeem their units.
 Interval – Interval schemes combine the features of open-ended and close-ended funds.
The units may be traded on the stock exchange or may be open for sale or redemption
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 during pre-determined intervals at NAV-related prices. Fixed maturity plans, or, FMPs
are examples of these types of schemes.

B) BYNATURE
 Equity Fund - Equities are a popular mutual fund category amongst retail investors.
They invest the funds into Equity holdings. The structure of the fund may vary different
for different schemes and the fund manager’s outlook on different stocks.
These funds are sub- classified depending on Investment objective such as
a. Diversified Equity Funds
b. Mid-Cap Funds
c. Sector Specific Funds
d. Tax Savings Funds (ELSS)
 Debt Funds - Debt funds are mutual funds that invest in fixed income securities like
bonds and treasury bills. Gilt fund, monthly income plans (MIPs), short term plans
(STPs), liquid funds, and fixed maturity plans (FMPs) are some of the investment options
in debt funds. Apart from these categories, debt funds include various funds investing in
short term, medium term and long-term bonds.
 Balanced Funds - This scheme allows investors to enjoy growth and income at regular
intervals. Funds are invested in both equities and fixed income securities; the proportion
is pre-determined and disclosed in the scheme related offer document. These are ideal for
the cautiously aggressive investors.

C) BY INVESTMENTOBJECTIVE
 Growth Schemes - Growth Schemes are also known as equity schemes. The aim of these
schemes is to provide capital appreciation over medium to long term. These schemes
normally invest a major part of funds in Equities & look for capital appreciation.
 Income Scheme - Income Scheme are also known as debt schemes. The aim of the
scheme is to provide regular and steady income to the investor. These Schemes invest in
fixed income securities such as bonds & corporate debentures. In such scheme’s capital
appreciation may be limited.
 Balance Scheme - This scheme allows investors to enjoy growth and income at regular
intervals. Funds are invested in both equities and fixed income securities; the proportion
is pre-determined and disclosed in the scheme related offer document. These are ideal for
the cautiously aggressive investors.
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  Money Market scheme - This is ideal for investors looking to utilize their surplus funds
in short term instruments while awaiting better options. These schemes invest in short-
term instruments such as treasury bills, certificate of Deposit, commercial paper &
Intercompany call money and seek to provide reasonable returns for the investors.

D) OTHERSCHEMES
 Tax Saving Schemes – As the name suggests, this scheme offers tax benefits to its
investors. The funds are invested in equities thereby offering long-term growth
opportunities. Tax saving mutual funds (called Equity Linked Savings Schemes) has a 3-
year lock-in period.
 Index Schemes - Index schemes are a widely popular concept in the west. These follow a
passive investment strategy where your investments replicate the movements of
benchmark indices like Nifty, Sensex, etc.
 Sector Specific Schemes –Sectoral funds are invested in a specific sector like
infrastructure, IT, pharmaceuticals, etc. or segments of the capital market like large caps,
mid-caps, etc. This scheme provides a relatively high risk-high return opportunity within
the equity space.
Comparison between FD, Bonds and Mutual Fund- features

Characteristics FD'S Bonds Mutual Funds

Accessibility Low Low High
Tenor Fixed (Medium) Fixed (Long) No Lock-in
Min. Investment Rs 1000 Rs 5000 Rs 5000
Tax Benefits None 80L, 88 Dividend Tax-Free

Liquidity Low Very Low Very High

Convenience Medium Tedious Very High
Transparency None None Very High

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 Major Mutual Fund Companies in India

A. Public Sector Mutual Funds

 Bank of Baroda Mutual Fund
 State Bank of India Mutual Fund
 LIC Mutual Fund
 UTI Mutual Fund
 Canara Bank Mutual Fund

B. Private Sector Mutual Fund

 ABN AMRO Mutual Fund
 Birla Sun Life Mutual Fund
 HDFC Mutual Fund
 HSBC Mutual Fund
 ICICI Prudential Mutual Fund
 Tata Mutual Fund
 Standard Chartered Mutual Fund
 Morgan Stanley Mutual Fund
 Alliance Capital Mutual Fund
 Franklin Templeton Mutual Fund
 Reliance Mutual Fund
 DSP Blackrock Mutual Fund

These above are the Various Mutual Funds in India which has given a good return.

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 Regulatory Body of Mutual Funds in India

As far as Mutual funds are concerned, SEBI (Securities& Exchange Board of

India) Formulates policies and regulates the mutual funds to protect the interest of the investor.
In January 1993, SEBI prescribed registration of mutual funds integrity in business
transactions and financial soundness while granting permission. This would curb excessive
growth of mutual funds and protect investor’s interest by registering only the sound
promoters with proven track record & financial strength.
The offer documents of schemes launched by mutual funds and the scheme are required to be
vetted by SEBI. A standard format for mutual fund prospectuses is being formulated.
Mutual funds have been required to adhere to a code of advertisement.
SEBI has introduced a change in the Securities Control and Regulations Act
governing the mutual funds. The mutual funds which have been in the market for at least five
years can assure a maximum return of 12 per cent only, for one year.
The current SEBI guidelines on mutual funds prescribe a minimum start-up of Rs.50 crore for
an open-ended scheme, and Rs.20 crore for closed-ended scheme, failing which application
money must be refunded. AMFI (Association of Mutual Funds in India) have appealed to
regulatory authority of India for scrapping the minimum requirement
Also, 50% of the directors of AMC must be independent. All mutual funds are
required to be registered with SEBI before they launch any scheme.
The transparent and well understood declaration or Net Asset Values (NAVs) of
mutual fund schemes is an important issue in providing investors with information as to the
performance of the fund. SEBI has warned some mutual funds earlier of unhealthy market
Trustees shall immediately report to the Board of any special developments in the mutual
fund.

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 NET ASSET VALUE (NAV)

The Net Asset Value (NAV) of a mutual fund is the price at which the units of a
mutual fund are bought and sold. It is the market value of the fund after deducting its
liabilities. The value of all units of a mutual fund portfolio are calculated daily, from this all
expenses are then subtracted. The result is then divided by the total number of units the
resultant value is the NAV. NAV is also sometimes referred to as Net Book Value or book
Value.
NAV indicates the market value of the units in a fund. So, it helps an investor keep
track of the performance about the mutual fund. An investor can calculate the actual increase
in the value of their investment by determining the percentage increase in the mutual fund
NAV. NAV, therefore, gives accurate information about the performance about the mutual
fund.

CALCULATION OF NAV
Mutual fund assets usually fall under two categories – securities & cash. Securities,
here, include both bonds and stocks. Therefore, the total asset value of a fund will include its
stocks, cash and bonds at market value. Dividends and interest accrued, and liquid assets are
also included in total assets

The formula for calculating NAV:

NAV of a mutual funds = (Assets of the fund – Liabilities of the fund)
Number of outstanding units of the fund

The mutual fund itself and/or certain accounting firms calculate the NAV of a mutual
fund. Since, mutual funds depend on stock markets, they are usually declared after the
closing hours of the exchange.
All Mutual Funds are required to publish their NAV at every business day as per
SEBI guidelines.
NAV is obtained after subtracting the expense ratio of a fund. This expense ratio is
the total of all expenses made by the mutual fund annually, including the operating expenses
and the management fees, distribution and marketing fees, transfer agent fees, custodian fees
and audit fees.

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 Expense Ratio

An expense ratio is the annual fee of a fund and is deducted from the fund’s corpus
every year. The expense ratio you pay the fund is basically deducted from the gains you have
made. For example, if your fund earns a return of 10% and the expense ratio is 2%, then your
effective return is 8%.
A mutual fund is free to charge the expense ratio that it wishes to charge, but it should
be within the limit imposed by SEBI–2.5% for equity mutual funds and 2.25% for debt
mutual funds. The expense ratio can be a good differentiator between two similar funds that
are also performing equally.

Assets Under Management

Assets under management or AUM of a mutual fund is the total amount of money that is
invested in the fund. As more and more money gets invested in a mutual fund, it’s AUM will
rise. A fund with a high AUM will mean that it is popular with a lot of investors, but the
AUM alone should not be the deciding factor in choosing a fund.

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 Categorization and Rationalization of Mutual Fund Schemes in India

A. Equity Schemes:

Sr. Category of Type of scheme (uniform

No. Schemes Scheme Characteristics description of scheme)
Minimum investment in equity & Multi Cap Fund- An open-ended
1 Multi Cap Fund equity related instruments- 65% of equity scheme investing across large
total assets cap, mid cap, small cap stocks
Minimum investment in equity & Large Cap Fund- An open-ended
2 Large Cap Fund equity related instruments of large equity scheme predominantly
cap companies- 80% of total assets investing in large cap stocks
Minimum investment in equity & Large & Mid Cap Fund- An open-
equity related instruments of large ended equity scheme investing in
Large & Mid cap companies- 35% of total assets both large cap and mid cap stocks
3
Cap Fund Minimum investment in equity &
equity related instruments of mid
cap stocks- 35% of total assets
Minimum investment in equity & Mid Cap Fund- An open-ended
4 Mid Cap Fund equity related instruments of mid equity scheme predominantly
cap companies- 65% of total assets investing in mid cap stocks
Minimum investment in equity & Small Cap Fund- An open-ended
5 Small cap Fund equity related instruments of small equity scheme predominantly
cap companies- 65% of total assets investing in small cap stocks
Scheme should predominantly An open-ended equity scheme
Dividend yield invest in dividend yielding stocks. predominantly investing in
6
Fund Minimum investment in equity- dividend yielding stocks
65% of total assets
Scheme should follow a value An open-ended equity scheme
Investment strategy. following a value investment
7 Value Fund* Minimum investment in equity & strategy
equity related instruments - 65% of
total assets

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 Scheme should follow a contrarian An open-ended equity scheme
Investment strategy. Minimum following contrarian investment
Contra Fund* investment in equity & equity strategy
related instruments - 65% of total
assets
A scheme focused on the number An open-ended equity scheme
of stocks (maximum 30) investing in maximum 30 stocks
8 Focused Fund Minimum investment in equity & (mention where the scheme intends
equity related instruments - 65% of to focus, viz., multi cap, large cap,
total assets mid cap, small cap)
Minimum investment in equity & An open-ended equity scheme
equity related instruments of a investing in __ sector (mention the
Sectoral/
9 particular sector/ particular theme- sector)/ An open-ended equity
Thematic
80% of total assets scheme following __ theme
(mention the theme)
Minimum investment in equity & An open-ended equity linked saving
equity related instruments - 80% of scheme with a statutory lock in of 3
total assets (in accordance with years and tax benefit
10 ELSS
Equity Linked Saving Scheme,
2005 notified by Ministry of
Finance)

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 B. Debt Schemes

Sr. Category of Type of scheme (uniform

Scheme Characteristics
No. Scheme description of scheme)
Investment in overnight securities An open-ended debt schemes
1 Overnight Fund
having maturity of 1 day investing in overnight securities
Investment in Debt and money An open-ended liquid scheme
2 Liquid Fund market securities with maturity of up
to 91 days only
Investment in Debt & Money Market An open ended ultra-short-term
instruments such that the Macaulay debt scheme investing in
Ultra-Short
3 duration of the portfolio is between 3 instruments with Macaulay
Duration Fund
months - 6 months duration between 3 months and 6
months
Investment in Debt & Money Market An open-ended low duration debt
Low Duration instruments such that the Macaulay scheme investing in instruments
4
Fund duration of the portfolio is between 6 with Macaulay duration between 6
months- 12 months months and 12 months
Investment in Money Market An open-ended debt scheme
Money Market
5 instruments having maturity up to 1 investing in money market
Fund
year instruments
Investment in Debt & Money Market An open-ended short-term debt
Short Duration instruments such that the Macaulay scheme investing in instruments
6
Fund duration of the portfolio is between 1 with Macaulay duration between 1
year – 3 years year and 3 years
Investment in Debt & Money Market An open-ended medium-term debt
Medium instruments such that the Macaulay scheme investing in instruments
7
Duration Fund duration of the portfolio is between 3 with Macaulay duration between 3
years – 4 years years and 4 years
Investment in Debt & Money Market An open-ended medium-term debt
Medium to Long instruments such that the Macaulay scheme investing in instruments
8
Duration Fund duration of the portfolio is between 4 with Macaulay duration between 4
– 7 years years and 7 years

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 Investment in Debt & Money Market An open-ended debt scheme
Long Duration Instruments such that the Macaulay investing in instruments with
9
Fund duration of the portfolio is greater Macaulay duration greater than 7
than 7 years years
Investment across duration An open-ended dynamic debt
10 Dynamic Bond
scheme investing across duration
Minimum investment in corporate An open-ended debt scheme
Corporate Bond
11 bonds- 80% of total assets (only in predominantly investing in highest
Fund
highest rated instruments) rated corporate bonds
Minimum investment in corporate An open-ended debt scheme
bonds- 65% of total assets investing in below highest rated
12 Credit Risk Fund
(investment in below highest rated corporate bonds
instruments)
Minimum investment un debt An open-ended debt schemes
instruments of banks, Public Sector predominantly investing in Debt
Banking and
13 Undertakings, Public Financial Instruments of banks, Public
PSU Fund
Institutions- 80% of total assets Sector Undertakings, Public
Financial Institutions
Minimum investment in G secs- 80% An open-ended debt scheme
14 Gilt Fund of total assets (across maturity) investing in government securities
across maturity
Minimum investment in G secs- 80% An open-ended debt scheme
Gilt Fund with
of total assets such that the investing in government securities
15 10-year constant
Macaulay duration of the portfolio is having a constant maturity of 10
duration
equal to 10 years years
Minimum investment in floating rate An open-ended debt scheme
16 Floater Fund instruments- 65% of total assets predominantly investing in floating
rate instruments

21
 C. Hybrid Schemes

Sr. Category of Type of scheme (uniform

Scheme Characteristics
No. Schemes description of scheme)
Investment in equity & equity related An open-ended hybrid scheme
instruments- between 10% and 25% investing predominantly in debt
Conservative
1 of total assets; Investment in Debt instruments
Hybrid Fund
instruments- between 75% and 90%
of total assets
Equity & Equity related instruments- An open-ended balanced scheme
between 40% and 60% of total investing in equity and debt
Balanced Hybrid assets; Debt instruments- between instruments
Fund 40% and 60% of total assets No
Arbitrage would be permitted in this
2
scheme
Equity & Equity related instruments- An open-ended hybrid scheme
Aggressive Hybrid between 65% and 80% of total assets; investing predominantly in
Fund Debt instruments- between 20% - equity and equity related
35% of total assets instruments
Dynamic Asset Investment in equity/ debt that is An open-ended dynamic asset
Allocation or managed dynamically allocation fund
3
Balanced
Advantage
Invests in at least three asset classes An Open-ended scheme
Multi Asset
4 with a minimum allocation of at least investing in __, __, __ (mention
Allocation
10% each in all three asset classes the three different asset classes)
Scheme Following arbitrage strategy. An open-ended scheme investing
Minimum investment in equity & in arbitrage opportunities
5 Arbitrage Fund
equity related instruments- 65% of
total assets
Minimum investment in equity & An open-ended scheme investing
6 Equity Savings equity related instruments- 65% of in equity, arbitrage and debt
total assets and minimum investment

22
 in debt- 10% of total assets
Minimum hedged &unhedged to be
stated in the SID.

D. Solution Oriented Schemes:

Sr. Category of Type of scheme (uniform

Scheme Characteristics
No. Schemes description of scheme)
Scheme having a lock-in for at least An open-ended retirement
5 years or till retirement age solution-oriented scheme
1 Retirement Fund whichever is earlier having a lock-in of 5 years or
till retirement age (whichever is
earlier)
Scheme having a lock-in for at least An open-ended fund for
5 years or till the child attains age of investment for children having a
2 Children’s Fund majority whichever is earlier lock-in for at least 5 years or till
the child attains age of majority
(whichever is earlier)

E. Other Schemes:

Sr. Category of Type of scheme (uniform

Scheme Characteristics
No. Schemes description of scheme)
Minimum investment in securities of An open-ended scheme
Index Funds/
1 an index (which is being replicated/ replicating/ tracking _ index
ETFs
tracked)- 95% of total assets
Minimum investment in the An open-ended fund of fund
FoFs (Overseas/
2 underlying fund- 95% of total assets scheme investing in ___ fund
Domestic)
(mention the underlying fund)

23
 BARODA PIONEER ASSET MANAGEMENT COMPANY

Baroda Pioneer Asset Management Company Limited is a joint venture between two
large and well-established financial services companies - Bank of Baroda and Pioneer
Investments. Baroda Pioneer Mutual Fund is positioned to serve the varied asset management
needs of investors in India through a range of equity, debt and money market offerings. Since
the formation of the joint venture in 2008, Baroda Pioneer has been working to create an
operational and servicing platform well suited to the exacting requirements of our existing
and potential investors.
The Company operates out of 40 locations in India and manages monthly average
assets of about Rs. 11,371 cr. for the month ending December 2017
With a focus on enhancing the overall customer experience, Baroda Pioneer Asset
Management Company is working towards:

1. Enhancing the existing product range to include products that will provide investors
with a much wider choice suited to their diverse needs and risk profiles
2. Providing access to international product offerings through the range of products
available with Pioneer Investments across its global network
3. Providing superior and consistent investment performance through sound local
investment management supported by expertise available across the globe
4. Creating an increasing number of access points for investors through the vast branch
network of Bank of Baroda
5. Bringing in the highest levels of compliance and corporate governance
6. Introducing increasingly innovative and useful service features on an ongoing basis
7. Making it easier for investors to receive prompt and efficient/effective/the best levels
of customer service

24
 Flow chart for Sales Operation of Mutual Funds:

Based on time stamping

Based on the leads -
and cutoff time, units Customers are alloted
Customers are
are alloted to Investor units in particular
introduced to Baroda
based on prevaling scheme of choice
Pioneer Advisors.
NAV

Then the Financial Filled Application

Advisors guide these forms are sent to Karvy In same way
customers based on Investor Srvices(RTA) Redemption request is
period and plan of for time stamp processed
scheme processing.

Based on the option

Customers files the Next time based on
chosen customer can
application for purchase Folio number customer
start investing either
in ongoing scheme or can buy or sell units of
onetime or in form of
NFO Mutual funds
SIP

Flow chart for Sales Operation of Mutual Funds

The main work here is how to capitalize target sale based on the leads. Based on the
customer profile bankers would provide information to Baroda Pioneer Advisors, so to assist
these customers with their Wealth management i.e. by offering Mutual Fund products.
The focus of Financial Advisor/ Relationship Manager is to guide these customers
about their products benefits and assist them in choosing the correct scheme as per the
financial condition and need. This is mostly done through proper Financial Planning
mechanism which involves: Life cycle, Wealth cycle and risk appetite ability of
investor/customer.

25
26
 FUNDS MANAGED BY BARODA PIONEER:

EQUITY SCHEMES:

BARODA PIONEER MID CAP FUND

The primary objective of the Scheme will be to generate

capital appreciation by investing predominantly in a
diversified portfolio of equity and equity related securities of
growth oriented mid cap stocks.

BARODA PIONEER LARGE CAP FUND

The primary objective of the Scheme is to generate capital

appreciation by investing predominantly in a diversified
portfolio of equity and equity related securities of large cap
companies.

BARODA PIONEER ELSS’96 FUND

To provide the investor long term capital
growth as also tax benefit under
Section 80C of the Income Tax Act, 1961.

27
BARODA PIONEER MULTICAP FUND:

To provide long term capital appreciation from an

actively managed portfolio of equity and equity

related instruments.

BARODA PIONEER HYBRID EQUITY FUND:

To provide long term capital appreciation along

with stability through a well-balanced portfolio

comprising of equity, equity related instruments,

money market instruments and debt securities.

BARODA PIONEER BANK AND FINANCIAL

SERVICES FUNDS:

To generate long term capital appreciation for unit holders

from a portfolio invested predominantly in equity and

equity related securities of companies engaged in the

banking and financial services sector.

28
DEBT INCOME SCHEMES:

BARODA PIONEER SHORT TERM BOND FUNDS:

An open-ended short-term debt scheme investing in instruments such

that the macaulay duration of the portfolio is between 1 year and 3
years. To generate income from a portfolio constituted of short-term
debt and money market securities.

BARODA PIONEER TREASURE ADVANTAGE FUND:

To provide optimal returns and liquidity through a portfolio comprising of debt securities
and money market instruments.

BARODA PIONEER INCOME FUND:

To generate regular income by investing in a
portfolio of good quality fixed income securities
by maintaining a balance between risk and return

BARODA PIONEER GILT FUNDS

To generate income by investing in a portfolio of government securities.

BARODA PIONEER CONSERVATIVE HYBRID FUNDS:

To generate regular income through investment in debt and

money market instruments and to generate long-term capital
appreciation by investing a portion in equity and equity related
instruments.

29
BARODA PIONEER DYNAMIC BOND FUNDS:
To generate returns with liquidity by managing the portfolio dynamically through interest rate
cycles.

BARODA PIONEER CREDIT RISK FUND:

The primary objective of the scheme is to generate returns by investing in debt and money
market instruments across the credit spectrum. There is no assurance or guarantee that the
investment objective of the scheme will be realized.

BARODA PIONEER LIQUID FUND

Investment Objective

To generate income with a high level of

liquidity by investing in a portfolio of money
market and debt securities.

30
 HDFC MUTUAL FUND

HDFC Mutual Fund has been constituted as a trust in accordance with the provisions
of the Indian Trusts Act, 1882, as per the terms of the trust deed dated June 8, 2000 with
Housing Development Finance Corporation Limited (HDFC) and Standard Life Investments
Limited as the Sponsors / Settlers and HDFC Trustee Company Limited, as the Trustee. The
Trust Deed has been registered under the Indian Registration Act, 1908. The Mutual Fund has
been registered with SEBI, under registration code MF/044/00/6 on June 30,2000.

HDFC Asset Management Company Limited (AMC)

HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies
Act, 1956, on December 10, 1999, and was approved to act as an Asset Management
Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000.
In terms of the Investment management Agreement, the trustee has appointed HDFC
Asset Management Company Limited to manage the mutual funds. As per the terms of the
Investment Management Agreement, the AMC will conduct the operations of the Mutual
Fund and manage assets of the schemes, including the schemes launched from time to time.

Funds Managed by HDFC Mutual Fund.

 Equity Fund
 Balanced Funds
 Income Fund

ACHIEVEMENT OF HDFC

 HDFC Asset Management company (AMC) is the first AMC in India to have been
assigned the CRISIL Fund House -1rating.
 This is the highest fund governance and process quality rating which reflect the highest
governance levels and fund management practices at HDFC AMC.
 It is only fund house to have been assigned this rating for 2 years in succession.

31
 SBI MUTUAL FUND
The SBI mutual fund Private Ltd is a joint venture between “The state bank of India”
and Societe General Asset management (France). The fund manages over Rs 42,100 crore of
assets and has a diverse profile of Investors actively parking their investments across 38
active schemes.
At SBI Mutual Fund we know that every investor has unique financial goals and
requires a different set of products. Which is why we have a wide range of schemes that
fulfills every kind of Investors requirement. Each scheme is managed by devising a different
strategy which is reflective of the investors profile and carries with different risks and
rewards.

Vision: - “To be the most preferred and the largest fund house for all asset classes, with a
consistent track record of excellent returns and best standards in customer service, product
innovation, technology and HR practices.”
SBI Funds Management has emerged as one of the largest players in India advising
various financial institutions, pension funds, and local and international asset management
companies.
SBI Funds makes one of the largest investment management firms in India, managing
investment mandates of over 5.4 million investors.

EQUITY FUNDS & SCHEMES

The Primary objective of the equity asset class is to provide capital growth /
appreciation by Investing in the equity & equity related instrument companies over medium
and long term.
There are range of Schemes available which fulfill Every Kind of Investors Requirements.
Each Scheme Provides different strategy which is reflective of the investors profile and
carries with its different risks and rewards.
1) Equity Schemes
2) Debt/Income Schemes
3) Liquid Scheme.
4) Hybrid Schemes.
5) Fixed Maturity Plans
6) Exchange Traded Schemes.
We would be looking at only Equity Schemes. Below are the Equity Schemes.

32
 EQUITY / GROWTH FUNDS
1) SBI Magnum Equity Fund
2) SBI Magnum Global Fund
3) SBI Blue chip Fund
4) SBI Magnum Multicap Fund
5) SBI Magnum Multiplier Fund
6) SBI Small and Midcap Fund
7) SBI Magnum Midcap Fund
8) SBO Emerging Businesses Fund

SECTORAL FUNDS
1) SBI Contra Fund
2) SBI FMCG Fund
3) SBI IT Fund
4) SBI Pharma Fund
5) SBI Banking & Financial services Fund

THE MATIC FUNDS

1) SBI Magnum COMMAFUND
2) SBI Infrastructure Fund
3) SBI PSUFUND
ELSS FUND
1) SBI Magnum Tax Gain Scheme1993
2) SBI Tax Advantage Fund – Series1
3) SBI Tax Advantage Fund – Series2
4) SBI Tax Advantage Fund – Series3
INDEX FUND
1) SBI Index Nifty Fund
MARKET NEUTRAL STRATEGY
1) SBI Arbitrage Opportunities fund.

33
following are gives 2 examples compare with its peer companies.

Baroda pioneer multi cap Sbi magnum multicap fund

Scheme
fund (G) (G)
Fund type Open ended Open ended

Benchmark BSE 200 BSE 500

Scheme Asset 616.34 3555.53
Rs in cr
Latest NAV 101.18 48.68
Rs/ units
1st year return 5.5 % 9.1%
3rd year return 9.5% 13.2%
5th year return 18.0% 24.5%

Baroda Pioneer Growth HDFC Growth

Scheme
(G) Opportunities Fund (G)
Fund type Open ended Open ended
Benchmark BSE 200 BSE 100
Scheme Asset 616.34 1255.56
Rs in cr
Latest NAV 101.18 114.008
Rs/ units
1st year return 5.5% 8.4%
3rd year return 11.2% 11.8%
5th year return 18% 13.8%

Mutual fund investments are subject to market risks, please read all scheme related
documents carefully

34
 COMPARATIVE STUDY OF LIFE INSURANCE LIFE INSURANCE

Approximately 22,500 people lose their lives each day in India. This essentially
means that 940 people die each hour. While Life and Death are a parcel of life, the loss of a
loved one can leave a void which might never be filled. A life insurance policy helps fill
certain aspects of this void, ensuring that the financial health of the insured’s family is taken
care of.

Life Insurance in India has yet to become popular among the masses, with the total
insurance penetration in India being just 3.44%, with life insurance accounting for 2.72%.
Non-life insurance accounts for 0.72%. Given these numbers it is easy to understand that
most of our population is not covered, leaving millions of Indians unprotected.

What is Life Insurance?

Life Insurance, in simple terms, is a contract which is signed between an individual

and an insurance provider, wherein the insurance provider guarantees to pay a certain sum of
money (sum assured) in case of the insured individual’s death. To avail this protection, the
insured pays a certain amount as premium towards maintaining the policy.

It is nothing but a safety net which provides financial security/protection against loss
of life. The primary purpose of a life insurance policy is to protect the financial interests of
the insured’s family.

While one might think that this is a recent concept, studies have shown that it has
been around for centuries, with different variations of insurance dating back to 1750 BC.

There are 3 basic aspects related to life insurance, namely:

 Premium – An individual is accorded cover only if he/she pays a certain sum of money
towards the policy. This is termed the premium. One can consider it to be the initial
investment which offers returns in the future.
 Death Benefit/Sum Assured – This is the money which the insurer assures to pay to the
nominee/beneficiary of the policyholder after his/her demise. This varies based on several
parameters.

35
 Term – An insurance policy provides protection for a certain period. This is called the
term, and it could vary based on the type of policy chosen.

Types of Life Insurance Policies Available in India

 Term Insurance
 ULIP
 Endowment Policies
 Whole Life Policies
 Pension Plans
 Money Back Plans
 Cancer Insurance

Insurance in India is monitored by the Insurance Regulatory and Development Authority

of India (IRDAI). As of March 2016, the country had 54 insurers, with 24 of these offering
life insurance products. These insurers offer a diverse range of products, which can be
categorised into six broad types, namely:

Term Insurance Plans:

These are plans which provide life cover for a fixed period. They can be either long-
term or short-term plans, with the term ranging from a minimum of 5 years to a maximum of
60 years (or more) in certain cases. The insured individual is protected during this term, with
the insurance company paying his/her nominee the sum assured on his/her death during the
policy term. No protection is provided if the insured dies after the term.
These can be considered as the simplest insurance plans available. While they are
affordable, they might not be the ideal option, for there is no protection after the said period.
These plans do not provide a maturity benefit in almost all cases. One should consider these
plans if he/she foresees their demise within a specific period (though it would be close to
impossible to predict the accuracy). This could be viewed as ‘temporary insurance’ and is
also referred to as pure life plans by certain insurers.

Unit Linked Insurance Policies (ULIPs):

Individuals looking for protection plus returns can consider unit linked insurance
plans. These policies are ‘linked’ to market products like mutual funds, bonds, stocks, etc.

36
There is a certain amount of risk associated with ULIPs, with this risk falling on the
policyholder.
Most insurers invest a certain portion of the premium into market units, keeping the
remaining portion aside for the base sum assured. It is important to keep an eye on the
performance of the funds, for the returns could be negligible if there is a market crash. As
such, the choice of insurance company is critical. ULIPs can be a smart option for the savvy
investor who wishes to invest in a life insurance policy. Insurance companies have dedicated
fund managers who oversee the investment.

Endowment Policies:
An endowment plan serves a dual purpose, offering not just life cover, but also
doubling as a savings instrument to cater to any future needs. Under these plans, the
policyholder is rest assured of an amount, even on maturity of the policy.
Individuals who are looking to protect themselves financially during the future can
opt for such plans. These are ideal for people who might encounter expenses after a specified
period. These plans attract a higher premium when compared to regular term plans. The
premium is split into two major portions, with one of it going towards the basic sum assured
and the other portion utilised as an investment tool to offer returns on maturity.
While it is possible to have unit linked endowment policies, most insurers in India
offer non-linked endowment plans.

Whole Life Policies:

A whole life policy, as the name implies, offers protection for the entire lifetime of an
individual. Certain insurers can have an upper age limit for maturity of policy. These can be
in the form of insurance plus investment plans, wherein a death benefit is provided to the
nominee on demise of the policyholder. If there is a maturity benefit associated with the plan,
a maturity amount will be paid when the policyholder attains the upper age limit associated
with the scheme.
While one might consider a whole life plan to be like a term plan, there are a few
subtle differences. The premium for a whole life plan is typically higher, but these plans also
offer a maturity benefit, which is not assured in case of a term plan.

37
Pension Plans:
Retiring from work can often be hard, given the fact that money might become a
constraint. Retirement plans, also known as annuity/pension plans can be used by individuals
looking to financially secure their retired life. These are mostly single premium policies,
wherein a lump sum amount is paid to the insurer.
One can choose the frequency of payouts they wish to receive, with the insurer paying
them an amount after they retire. This amount is paid throughout their lifetime, guaranteeing
financial security even when one doesn’t work. Certain annuity plans are unit linked, offering
market-based returns to policyholders.

Money Back Plans:

Money back policies are a subset of endowment plans which provide a survival
benefit to the policyholder. These take multiple contingencies into account. While a death
benefit is payable on the demise on the policyholder, the survival benefit will be paid if
he/she survives for a certain period.
Insurers pay a certain percentage of the sum assured at regular intervals, with this plan
offering an additional source of income to policyholders. These plans are ideal for individuals
who want a regular source of income but are not keen to take risks associated with market
instruments. The survival benefit is paid until maturity of the policy. These plans are known
for the liquidity they offer, making them a popular option in the country.

38
 INDIAFIRST LIFE INSURANCE:

Launched in 2010 by the then Finance Minister of India, Mr. Pranab Mukherjee,
IndiaFirst Life Insurance is one of India’s youngest life insurance companies. Headquartered
in Mumbai, we are present in over 1000 cities across India. We are a joint venture between
Bank of Baroda (44% stake), Andhra Bank (30% stake) and UK’s leading risk, wealth and
investment brand Legal & General group (26% stake). Our promoters have been servicing the
financial needs of the world for over 360 years and give us access to a network of 8000+
branches and more than 50 million customers across India.

 Indiafirst Anytime Plan

Key Features about this Plan

1. IndiaFirst Anytime Plan is an online pure protection plan which offers an insurance cover
on the Life Assured’s life and upon the death of the Life Assured during the Plan Term
provides an assured lump sum benefit.
2. The Plan provides for a life insurance cover for a period of up to 40(Forty) years at a
reasonable price.
3. Tax Benefit: Under Section 80C of the Income Tax Act. Based on the Premium paid and
in case of death, benefits in given which are covered under the Income Tax Act of Section
10(10D).
Risk Factors associated with this Plan:
1. As being term end plan, there is no maturity or survival benefits offered under this Plan.
2. This is a traditional pure term insurance plan which is non-participating.

 Indiafirst Group Term Plan

Key Features about this Plan:

 Master policyholder
1. Investor of Term Plan will be offered life cover at competitive rates so that
they can enrol their members – be it their employees or customers or members
2. Investor can also opt for the Employees Deposit Linked Insurance (EDLI)
scheme under this Plan
3. The Plan provides investor the flexibility to add new members during the plan
year and an option to pay the premium as per their convenience

39
 4. Investors have the flexibility to automatically secure the life of all their
members or offer it as a voluntary scheme where Investor members may choose to
participate

 Member
1. This scheme provides benefits to secure their loved ones as beneficiary will get a life
cover at an extremely reasonable price.
2. In the event of the member's/ life assured demise, a lump sum amounts equal to the
Sum Assured will be payable to the nominee/ appointee/ legal heirs
3. Investor can enjoy tax benefits on the premium they pay under Section 80(C), Income
Tax Act, 1961
Risk Factors associated with this Plan:
1. There is no maturity benefit for this Plan
2. Tax laws are subject to change from time to time as per Government Tax Laws.
3. The sum assured is paid to the nominee / appointee/ legal heirs.

 Indiafirst Smart Save Plan

Key Features about this Plan

1. IndiaFirst Smart Save Plan is a unit linked endowment, non-participating insurance plan
which is available for insurance investment on Regular Premium, Limited Premium and
Single Premium basis
2. The highest amount of the Sum Assured or the Fund Value is paid in case of Life
Assured’s death when the Plan Term is active.
3. The Maturity Value which is also called Fund value is paid on the Maturity Date to the
Life Assured.
4. In case Investors look for more returns they can switch their investment form one Fund to
another.
5. Partial Withdrawals facility is available to Investors to access their money in case of any
financial emergency.
6. Tax Benefit: Under Section 80C of the Income Tax Act. Based on the Premium paid and
in case of death, benefits in given which are covered under the Income Tax Act of Section
10(10D).

40
Risk Factors associated with this Plan:
1. There is an investment risks associated due to capital markets on Premium paid in unit
linked insurance plan
2. The NAV of scheme changes daily so value of the Units will change based on Fund
performance.

 Indiafirst Happy India Plan

Key Features about this Plan

1. IndiaFirst Happy India Plan is a unit linked, non-participating endowment insurance plan
which is available on Regular Premium basis.
2. The Sum Assured is paid in case of the Life Assured’s death during the Plan Term. The
family gets additional financial security by paying the remaining premiums into the plan
or directly to you.
3. The Maturity Value which is also called Fund value is paid on the Maturity Date to the
Life Assured.
4. In case Investors look for more returns they can switch their investment form one Fund
to another.
5. Partial Withdrawals facility is available to Investors to access their money in case of any
financial emergency.
6. Tax Benefit: Under Section 80C of the Income Tax Act. Based on the Premium paid and
in case of death, benefits in given which are covered under the Income Tax Act of Section
10(10D).
Risk Factors associated with this Plan:
1. There is an investment risks associated due to capital markets on Premium paid in unit
linked insurance plan.
2. The NAV of scheme changes daily so value of the Units will change based on Fund
performance.

41
  Indiafirst Annuity Plan

Key Features about this Plan

1. This Plan is a traditional life time Immediate Annuity Plan, which is available for a
Purchase Price as mentioned in the Plan Schedule. Lifetime Annuity is the fixed amount,
which is payable if the Annuitant lives. This payment stops on the Annuitant's death.
2. Investors will receive a definite regular monthly income through their years of retirement
Risk Factors associated with this Plan:
1. This plan provides annuity payout only till the Annuitant (policyholder) is living. All
benefits cease on the Annuitant's demise.

 Indiafirst Money Balance Plan

Key Features about this Plan

1. IndiaFirst Money Balance Plan is a unit linked Savings, nonparticipating, insurance plan
for customers which is available on Regular Premium, Limited Premium and Single
Premium basis
2. The higher amount of the Sum Assured which is called Fund Value is paid on the Life
Assured’s death during the Plan Term is active.
3. The Maturity Value which is also called Fund value is paid on the Maturity Date to the
Life Assured.
4. Facility like Automatic Trigger Based Investment Option is available.
5. Investors can make the most out of their investments by switching from one Fund to
another
6. Partial Withdrawals facility is available to Investors to access their money in case of any
financial emergency.
7. Tax Benefit: Under Section 80C of the Income Tax Act. Based on the Premium paid and
in case of death, benefits in given which are covered under the Income Tax Act of Section
10(10D).
Risk Factors associated with this Plan:
1. There is an investment risks associated due to capital markets on Premium paid in unit
linked insurance plan.
2. The value of the Units based on NAV of scheme changes based on the performance of the
Fund.
 Indiafirst Maha Jeevan Plan

42
Key Features about this Plan
1. IndiaFirst Maha Jeevan Plan of India First Life Insurance is available on a regular
Premium basis which is a non-linked, participating endowment insurance plan.
2. When any bonus is declared by Insurance Company then maximum Sum Assured in
addition Bonus is paid on the death of the Life Assured during the Plan Term. Also, as
per the IRDA Regulations, minimum death benefit under this Plan will be at least 105%
(One Hundred Five percent) of the total Premiums received till the date of death of the
Life Assured.
3. The Guaranteed or the Maturity Value which is also called Fund value is paid on the
Maturity Date to the Life Assured.
4. Terminal Bonus will be paid in the end, if declared.
5. Insured person can easily access to their money in case of emergency by availing loan of
up to 90% (Ninety percent) of the Surrender Value.
6. Death Benefits can be enhanced by opting for IndiaFirst Term Rider
7. Tax Benefit: Under Section 80C of the Income Tax Act. Based on the Premium paid and
in case of death, benefits in given which are covered under the Income Tax Act of Section
10(10D).
Risk Factors associated with this Plan:
1. There are no guarantees for Bonus rate and will vary from time to time.

 Indiafirst Cash Back Plan

Key Features about this Plan

1. IndiaFirst Cash Back Plan is a non-participating, non-linked, money back plan, available
on a Limited Premium basis
2. Guaranteed Survival Benefit i.e. 20% of the Sum Assured on Maturity will become
payable to the Life Assured at regular intervals based on the plan
3. The Guaranteed Maturity Value which is also called Fund value is paid on the Maturity
Date to the Life Assured i.e. 60% of the Sum Assured on Maturity along with Guaranteed
Additions.
4. The plan offers Guaranteed Death Benefit equal to the Sum Assured on death and
guaranteed addition, if any till date of death where sum assured on death is defined as
higher of 10 times of annualized premium or 105% of all premiums paid as on date of

43
 death or guaranteed sum assured on maturity. Annualized premium is the annual premium
which excludes modal factor, extra premium and rider premium, if any.
5. Tax Benefit: Under Section 80C of the Income Tax Act. Based on the Premium paid and
in case of death, benefits in given which are covered under the Income Tax Act of Section
10(10D).
Risk Factors associated with this Plan
1. Benefits are assured at start of policy and fixed during the plan of term.
2. Tax Benefits may not be same and will vary from time to time as per tax laws.

44
 Comparison with Peers:

1. Comparison of Term Insurance Plan:

IndiaFirst Life Plan - Non ICICI Pru iProtect HDFC Life

Linked Pure Protection Smart Click2Protect Plus
Sum Assured Plan
5000000 5000000 5000000
Age 40 40 40
Plan term (Years) 30 30 30
Premium Paying term (Years) 30 30 30
Yearly Premium (in Rs.) 11851 10513 12848
Gender Male Male Male
Smoker/Non Smoker Non Smoker Non Smoker Non Smoker

Table 20: Comparison of Term Insurance Plan

Description: The premium paid based on Sum assured, Age, Plan Term and gender is
different for all Policies. But Yearly Premium amount is in the competitive range for
IndiaFirst Life Insurance in comparison to peers.

2. Comparison of Endowment Insurance Plan

IndiaFirst Maha Jeevan HDFC Life Sampoorn

Plan Non Linked Samridhi Plus
Insurance Plan
Sum Assured 5000000 5000000
Age 40 40
Plan term (Years) 25 25
Premium Paying term (Years) 25 20
Gender Male Male
Smoker/Non Smoker Non Smoker Non Smoker
Yearly Premium (in Rs.) 159842 308735

Table 21: Comparison of Endowment Insurance Plan

Description: The premium paid based on Sum assured, Age, Plan Term and gender is
very much higher for peers than IndiaFirst. Also, yearly premium amount is in the
competitive range for IndiaFirst Life Insurance in comparison to peers.

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 METHODOLOGY

Selection of Projects
The project was selected based on a list of opportunities as extended by the Bank of
Baroda under their Wealth Management. The project deals with study of various Mutual
Fund and Life Insurance schemes offered by Baroda Pioneer and India First Life Insurance.
Selection of Sample
The Research was undertaken based on secondary data taken from Baroda Pioneer
Mutual Funds schemes and India First Life Insurance.
Data Collection
Data collection is through secondary sources like KIM documents, Fact Sheet,
SID documents and Daily Reports for Baroda Pioneer Mutual Funds. Similarly, for Life
Insurance Products India First Life Insurance Brochures were used as source
Current Issues
The primary issue identified while working at Baroda Pioneer and India first Life
Insurance is lack of financial literacy among the investors.
Some of these are as follows:
1. Most of the customers are unaware of Mutual Funds.
2. Even if some of them know about it, they don’t know the difference of Direct Plan and
Indirect Plan.
3. Many of them are not aware of SIPs and its advantages.
4. Even under Life Insurance, customers are unaware of Participating policy and other
benefits.
5. Most of them are unaware of Tax benefit based on the investments in Mutual funds and
Life Insurance under Section 80C.
6. Lack of Financial Planning for achieving the goals of life.

However, to overcome these issues Baroda Pioneer and India First are trying to make
their Investors/Customer more Literate about these Financial Products by:
1. With online learning of India First Life Insurance through its website and mentioning
about its products and features.
2. With the learning center such as Knowledge Plug of Baroda Pioneer, explaining different
terms and terminologies associated with it.

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3. With different articles and FAQ’s explaining the questions.
4. Conducting workshops and lectures on these topics.
5. Also, the BD Managers and Regional Managers of India First and Baroda Pioneer
respectively assisting their customers about different ways of Financial Planning.

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 CONCLUSION AND RECOMMENDATIONS

The conclusion of the entire research is given as aligned with the objective.

The first objective was to study about the Mutual Funds and Life Insurance, where
different ways of Wealth management i.e. Asset and liability management were studied.
Under Asset management Mutual funds were discussed and under Liability management Life
Insurance Products.
The second objective was to study and determine the various Schemes and products
of Baroda Pioneer Mutual Fund and IndiaFirst Life Insurance. All Mutual fund schemes and
Products discussions were concluded with calculation of returns for 1 year and since
Inception timeline. Risk Management aspects of all the schemes were done and standard
Deviation was calculated to find variation amongst all schemes offered by Baroda Pioneer.
Similarly, all Life Insurance Key points and Risk factors were discussed and concluded with
important features of Products.
The third objective was to compare the Mutual Fund schemes and Life Insurance
Products with that of Peers. From the research it can be concluded that Baroda Pioneer
Mutual Funds are performing in line of Indices and much better. Also, the Life Insurance
Products of IndiaFirst are offering Insurance at competitive rate to Investors in comparison to
peers.
As observed in the study the Customers are still Financial Illiterate about mutual Fund
Schemes and Life Insurance Products benefits. So, there is a scope for Banking Institutions to
get on these uncovered Customers and increase their business through proper Financial
Planning of customers.
So, based on results it is recommended to invest actively in Mutual Funds Equity
schemes as in long run in the past it has given more than 15% returns annually. And on
shorter period one can go for Liquid Fund which gives better returns then Equity. On the
other hand, based on risk taking approach and age of investor, Debt schemes are safer option.
Similarly, one should go for and have Pure Term Insurance plan which are low in premium
cost and cover death benefits. Also, if one is looking for maturity benefits with death benefits
also, one can look for Endowment Plans.

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 Bibliography

 https://www.google.co.in
 https://www.bankofbaroda.com
 https://online.barodapioneer.in/online/Login.aspx
 https://mf.indiainfoline.com/MFOnline/Compare
 https://www.indiafirstlife.com
 https://www.bankbazaar.com/insurance/indiafirst-life-
insurance.html?ck=Y%2BziX71XnZjIM9ZwEflsyDYlRL7gaN4W0x
huJSr9Iq7aMYwRm2IPACTQB2XBBtGG&rc=1

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