GURU NANAK KHALSA COLLEGE OF ARTS, SCIENCE & COMMERCE

MATUNGA MUMBAI – 400019 (AUTONOMUS)

A PROJECT ON

“INVESTORS BEHAVIOR ON ULIPS”

SUBMITTED BY

HARSHAL MANISH LONDHE

B.COM (ACCOUNTING & FINANCE) SEM-VI

ROLL NO.-37

UNDER THE GUIDANCE OF

PROF. SHAHID QURESHI

IN THE PARTIAL FULFILLMENT OF THE DEGREE OF BACHELOR OF

COMMERCE (ACCOUNTING & FINANCE)

UNDER THE

UNIVERSITY OF MUMBAI

(2022-23)
 DECLARATION

I, HARSHAL MANISH LONDHE, hereby declare that this project report

Entitled “INVESTORS BEHAVIOR ON ULIPS”.

Submitted during the year 2022-23 under the valuable guidance and supervision of

Prof. Shahid Qureshi in partial fulfilment of requirement of the Bachelor of

commerce (Accounting & Finance).

Degree of University of Mumbai.

Further, I extend my declaration that this report is result of my original work.

(Harshal Manish Londhe)

 ACKNOWLEDGEMENT

I would like to express my gratitude towards Almighty.

I would like to thank University of Mumbai and Guru Nanak Khalsa College for
providing assistance.

I would like to express special thanks to my,

Principal – Dr. Kiran Mangaonkar

Vice Principal & amp; H.O.D. -

Project Guide – Prof. Shahid Qureshi

I would also thank the non-teaching staff for helping me throughout the project.

I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and organizations. I would
like to extend my sincere thanks to all of them.

I am highly indebted for their guidance and constant supervision as well as for
providing

necessary information regarding the project & amp; also for their support
completing the project.

I would like to express my gratitude towards my parents & amp: non-teaching

members for their kind co-operation and encouragement which help me in
completion of this project.

My thanks and appreciation also go to my friends in developing the project and

people who have willingly helped me out with their abilities.
 CERTIFICATE

This is to certify that MR HARSHAL MANISH LONDHE of B.COM

(ACCOUNTING & FINANCE) Semester VI (2022-23) has successfully
completed the project on “INVESTORS BEHAVIOR ON ULIPS” under the
guidance of Prof. SHAHID QURESHI

PLACE:

DATE:

_________________ _________________ ________________

Internal Examiner HOD & Coordinator External Examiner

__________________

PRINCIPAL
Abstract
 Chapter 1

Introduction

Investors Behavior on Unit Linked Insurance Plan (ULIP)

Investment and its Main Concepts:

An investment is putting money into real or financial assets. Real assets are not more liquid than
financial assets in real scenario. However, while all investments involve risk, the degree of risk
and return varies. As a result, successful investors must have a solid understanding of financial
investment and the art of managing it.

Insufficient professional guidance, inability to reduce risk, and a lack of information and
resources make it difficult for Indian investors to succeed in the secondary market. Investors are
hesitant to invest their hard-earned money in corporate securities due to a lack of professional
expertise, high secondary market volatility, and inadequate knowledge of the capital market.
This group of investors has been able to significantly increase their investable funds in order to
reap the benefits of capital market investment since the introduction of mutual funds as a catalyst
for industrial development. Investing in mutual funds relieves investors of the emotional stress
associated with investment selection because professionals manage them.

A study of 152 mutual funds revealed that schemes earned an average annual return of 12.4%
while their alpha was negative with 20 basis points, according to the pioneering work on mutual
funds carried out in the United States of America. By 2015, it is anticipated that IMFI's assets
under management in India will reach $500-600 billion, as more global players plan to establish
asset management businesses. Even though the Indian mutual fund industry is making progress,
there is still a long way to go because IMFI only receives less than 17 percent of household
savings.

The investment procedure is constantly changing. The process of investing consists of five
fundamental parts: characteristic of an investor, investment refers to the creation,
implementation, and monitoring of strategies. The transformation of the business cycle has
resulted in a shift in investor behavior.

Because of the variety of schemes, the majority of investors choose investment strategies with
higher rates of return. However, they are unsure whether the plan is correct or the safest option.

Initially, investors must be made aware of savings and the safest options. The investors will then
investigate the various investment alternatives. As a result, the government must prioritize
investor protection by providing investor-friendly guidelines and enforcing legal regulations on
financial institutions. Thus, investors will select the best and most secure option for their money.
Our government's primary responsibility is to safeguard investors. Reports from academics,
researchers, corporate and foreign delegates, lawyers, doctors, people with advanced degrees,
young and old, and men and women of all ages. Victims 3, ranging in age from 18 to 90, have
filed a variety of complaints. Investors need to be aware that anyone can commit fraud.
Investment fraud affects everyone.

The trade of a certain present value for an uncertain reward in the future is investment. It
involves making a number of choices, such as type, mix, quantity, timing, grade, and so on. of
investments and withdrawals Additionally, such decision-making must be continuous and
rational.

An investment decision is generally a compromise between risk and return. Since investments in
securities are revocable, investment ends are unstable, and investment environment is fluid, the
reliable bases for distant future, all investment decisions are made at points in time in accordance
with personal investment ends and in consideration of an uncertain future. As a result, securities
investors will periodically reevaluate their various investment commitments in light of new
information, altered expectations, and new goals.

The theory of economics is based on the creation of savings and their transformation into capital.
Any nation's economic development depends on the size and composition of its savings. In India
prior to independence, the majority of people spent their money and time on consumption, with
only a small amount saved. Indian citizens had a very low rate of saving as a result. Since
independence, the goal of government policy has been to encourage savings and investment,
which are regarded as the primary drivers of economic expansion.

savings in the form of financial assets and their significance in a developing nation like India due
to their sizeable potential for capital formation. Households make up the majority of the nation's
savings in India. In India, their average share of net domestic savings remains around 70%.

Individuals have a wide range of goals when it comes to investing, some of which may be to reap
the rewards of capital appreciation with some risk or to receive a regular, uniform, safe, and
continuous return in the future. A person's age, sex, occupation, educational level, and other
personal factors also affect their investment goals.
Dimensions of Investment:

Investment has numerous implications and aspects. Notwithstanding, speculation can be

deciphered extensively from three points: Monetary, Layman, and Monetary. Financial Venture
incorporates the responsibility of the asset for net expansion to the capital supply of the
organization.

The net augmentations to the capital stock means an expansion in building gear or inventories
over how much identical merchandise that existed, say, one year prior simultaneously. Layman
Speculation utilizes the term speculation as any responsibility of assets for a future advantage not
fundamentally concerning return. For instance, a responsibility of cash to purchase another
vehicle is absolutely a speculation according to a singular perspective.

Monetary Venture is the responsibility of assets for a future return, consequently 5 investment
might be perceived as a movement committing assets in any monetary or actual structure within
the sight of an assumption for getting unexpected return in future.

Monetary venture is responsibility of assets to determine pay as interest, profit premium, benefits
advantages or appreciation in the worth of starting speculation. However, there are sure principal
elements of ventures: Speculation alludes to the idea of conceded utilization, which includes
buying a resource, giving a credit or keeping supports in a ledger with the point of producing
future returns.

Different speculation choices are accessible, offering varying gamble reward compromises. A
comprehension of the center ideas and a careful examination of the choices can help a financial
backer make a portfolio that expands returns while limiting gamble openness. The different sorts
of ventures are Money speculation, Obligation protections, Stocks, Shared reserves, Wares,
Land, and Subordinates

Investors Behavior in General:

Investors behavior way of behaving might be characterized as a mental, social, and actual way of
behaving of likely clients as they become mindful of, assess, buy, consume and enlighten others
regarding buy and administrations.

The investigation of investors behavior way of behaving is worried about choice process
engaged with buy, and the entire way of behaving of an individual while making buys is named
as investors behavior of behaving. Investors Behavior Conduct is the investigation of human way
of behaving that incorporates every one of the means in the dynamic cycle. investors behavior
way of behaving as if to be continually unpredictable and fluctuating non-stable reason for
estimating the interest for customer products.

It has been ceaseless in affecting both emphatically and adversely by different substantial and 8
impalpable variables like value, pay, design and different special exercises of contenders. Thus,
an investigation of investors behavior way of behaving is key where different variables from
which a purchaser needs to make a decision from a tremendous expanse of items.

Investors Behavior Conduct is one of the main peculiarities in the acquisition of any item. This is
a moderately frequently concentrated on idea in the board. Anything concentrate on has been led
is investors behavior’s way of behaving, a definitive end is the investors behavior. The progress
of different brands and items relies upon the investors behavior’s decision. Normally every one
of the items are going to arrive at the choices of investors behavior, and it is important that the
investors behavior needs to answer via choice and buying.

Investors behavior not entirely set in stone generally by the social, mental, and monetary
elements and it is essential for a supervisor to comprehend the factors for the legitimate
preparation of showcasing systems. The motivations behind why purchasers purchase specific
items or brands are because of purchasing thought processes.

All conduct starts with inspiration. An intention is an invigorated need that an individual looks to
fulfill. These inspirations can be bio-natural or psychogenesis necessities and thought processes
that are impacted by discernments.

Saving behavior among the investors

The idea of saving is a significant one as it is the wellspring of supply of capital for investment.
An elevated degree of investment funds helps the economy to advance on a ceaseless
development way since investment is fundamentally supported out of investment funds. The idea
of saving has changed 9 significantly throughout the long term. There has been a significant
development in the saving way of behaving of individuals of India.

The saving way of behaving of India is going through a total change since freedom and, in
specific, after monetary area changes. All the while, family’s life cycle stage is going into the
following stage by the approach to making positive saving climate. In this setting, this study
follows the patterns, organization of family reserve funds and investment designs and
subsequently attempts to figure out procedures to assemble reserve funds by different monetary
specialist co-ops.

According to somewhere safe and secure of investment perspective, bank stores and post office
reserve funds conspire were exceptionally protected investment roads for investors while
specialists saw value offers to be profoundly protected.

The most liked advantage of putting resources into shared assets for investors was productivity
followed by charge haven and capital appreciation as against agents' need for portfolio
broadening, liquidity of investment, and proficient administration. Most elevated inclination was
towards private area joint endeavor (transcendently).

Second evaluating was for bank supported common assets for financial backers and confidential
area, Indian assets for dealers. Investors and brokers had first appraising for development
objective.

Second favored common asset venture objective was pay. The whole three class of respondents
to be specific, people who are investing, brokers, and asset chiefs had best option for the nature
of administration as the main consideration deciding the outcome of shared store association.10

The investor’s discernment uncovered that the demeanor of financial backers had a noticeable
bearing on investment choice. Investor’s appointed fourth inclination for common assets.
Customary pay, security, benefit and assessment benefits roused investors in conspire choice.
The two investors and merchants had high inclination for private area joint endeavor.
Productivity, portfolio broadening, simple liquidity and expert administration were the
significant advantage of common assets.

Nature of administration was the most significant determinant of progress for shared reserves.
Altruism was the primary model of picking common asset association. Capital appreciation
impacted decision of common asset conspire.

Not very many investors were completely fulfilled while larger part were modestly fulfilled with
execution, potential open doors gave, and benefits presented by IMFI. Subsequently reserve
directors need to find satisfactory ways to work on the execution of common assets. Steps must
be taken to enlarge financial backers' base through teaching, certainty building and contacting
potential as well as reluctant investors.
Investment Risk:

"No risk, no gain" is the trademark commonly utilized by the financial backers of stock trade.
This ideal motto manages different viewpoints connecting with venture arranging. In financial
planning speech, risk alludes to the likelihood of a money related misfortune or genuine gets
back from a venture being lower than the normal returns.

There is an opposite relationship between financial planning hazard and return. Speculation
choices that are dangerous need to offer better yields than those that are safer to draw in financial
backers and make it advantageous to face the extra gamble.

Types of Risks: A Treasury bond is considered to be among the safest investments and equities
are associated with higher risks. However, every investment involves risk, the difference being in
the degree and the type:

 Capital risk
 Currency risk
 Liquidity risk
 Credit risk
 Inflation risk
 Interest rate risk
 Market risk
  Legal risk
 Counterparty risk

Investor’s Behavior is the investigation of people, gatherings, or associations and the cycles
they use to choose, secure, use, and discard items, administrations, encounters, or thoughts to
fulfill needs and the effect that these cycles have on the buyer and society. It mixes components
from brain science, humanism, social humanities, showcasing and financial aspects. It endeavors
to comprehend the direction cycles of purchasers, both exclusively and in gatherings like how
feelings influence purchasing conduct. It concentrates on qualities of person buyers like
socioeconomics and conduct factors in an endeavor to grasp individuals' needs. It additionally
attempts to evaluate effects on the shopper from gatherings, for example, family, companions,
sports, reference gatherings, what's more, society overall.

Cognitive behavior approach is a self-arranged type of mental technique that accepts

maladaptation or broken thinking designs that cause maladaptive way of behaving and
"pessimistic feelings. Maladaptive way of behaving is a way of behaving that is financial backers
specific or impedes consistently living.

Cognitive behavior in relationship with financial backers conduct. Mental way of behaving is
especially interrelated with the investors conduct concerning view of investment of the investor
and its suggestions, for example, decision of speculation, dynamic interaction is

especially impacted by mental components, dangers and inclinations of speculation perspectives

are additionally uncovered unequivocally in the financial backers conduct.

Maladaptive way of behaving is emphatically animate the investors in ULIPs market without the
variation of normal measures into ID of market items in its truths is the ongoing mentality of the
financial backer conduct in the field of protection and other venture roads.
Combination of cognitive behavior and individuals’ goals:

Spearheaded by analysts Aaron Beck and Albert Ellies in 1960, mental methodology accepts that
maladaptive conduct upset temperament or on the other hand feelings are the consequences of in
suitable on silly reasoning designs called programmed contemplations, rather than responding to
the truth of a circumstance, an individual responds to his as her own contorted view point of the
circumstance. Conduct techniques or changing outwardly qualities the people to supplant the
unfortunate ways of behaving with better ways of behaving, a similar social strategy is applied in
financial backer conduct during the time spent determination, inclinations and chance taking

perspectives are altered or supplanted with legitimate preparation stages mindfulness

fabricating, and gives information about the different venture plans which are appropriate to the
financial backers based on their socio-economic attributes, which didn't zero in on revealing or

understanding the cognizant inspirations that might be behind the maladaptive way of behaving.

Numerous protection plans give repayment to cognitive behavioral treatment administrations.

Since inclusion is subject to the confusion or disease the treatment is treating, patients ought to
check with their singular plans.

Affective Behavior:

Conduct that is basically pointed toward creating an ideal outcome, as endeavoring to grasp the
requirements of another party and endeavoring to fulfill those necessities, for example, the
character and persuasiveness that is shown by a salesperson that prompts the client opening a
new record.

Affect is the experience of feeling or feeling. Affect is a critical part of the course of a life form's
collaboration with upgrades. The word moreover alludes here and there to affect show, which is
"a facial, vocal, or gestural conduct that fills in as a sign of effect" (APA 2006). The full of
feeling space addresses one of the three divisions depicted in current brain science: the mental,
the mental, and the full of feeling. Traditionally, these divisions have likewise been alluded to as
the "ABC of brain research", all things considered utilizing the expressions " affect ", "conduct",
also "cognizance". In specific perspectives, the mental might be viewed as a part of the
emotional, or the full of feeling as a piece of the mental. Emotional states are viewed as psycho-
physiological develops what's more, fluctuate along three chief aspects: valence, excitement, and

inspirational power. Valence is the positive-to-negative assessment of the abstractly experienced

state. Profound valence is characterized as alluding to the feeling's ramifications, evoking
conditions, or emotional feel or disposition. Excitement is by the initiation of the thoughtful

sensory system and can be estimated emotionally. Excitement is a build that is firmly connected
with inspirational force however they contrast in light of the fact that inspiration requires activity
suggestions while excitement doesn't. Persuasive force alludes to impulsion to act. It is the
strength of inclination to push toward or away from an improvement. Basically, moving isn't

considered approach inspiration without a persuasive urge present. All three of these
classifications are significant while taking a gander at the impact of emotional states on mental
degree. At first, it was believed that positive affects widened mental extension while negative
influences restricted mental extension. In any case, proof currently proposes that affects high in

persuasive power slender mental degree though influences low in inspirational force expand
mental degree. The mental extension has to be sure shown to be an exceptionally powerful
mental methodology. Affect can mean an instinctual response to excitement happening

before the run of the mill mental cycles considered essential for the development of a more
mind-boggling feeling. Robert B. Zajonc states this response to boosts is essential for people and
that it is the prevailing response for lower organic entities. Zajonc proposes that full of feeling
responses would be able happen without broad perceptual and mental encoding and can be

made sooner and with more prominent certainty than mental decisions

(Zajonc, 1980). Numerous scholars (Lazarus, 1982) believe influence to be post cognitive:
inspired solely after a specific measure of mental handling of data has been achieved. In this
view, such emotional responses as preferring, loathing, assessment, or the experience of joy or

disappointment each outcome from an alternate earlier mental interaction that makes various
substance segregations and distinguishes highlights, looks at them to track down esteem, and
weighs them as indicated by their commitments
(Fermenting, 1989; Lerner and Keltner, 2000) contend that affect can be both pre and post
mental: introductory profound reactions produce considerations, which produce influence. In a
further cycle, that's what a few researchers contend affect is fundamental for empowering more
reasonable methods of discernment. Emotional data ways of behaving are responses to
inspirational states and objective coordinated thinking. These emotional states and mental

processes are both inside arranged by the social worth (emotional) and the construction (mental)
of the data climate. Full of feeling responses are generally bi-polar, either certain or negative.
The impact of positive effect on mental cycles has been displayed to work with

learning in numerous areas of human undertaking shows that emotional data ways of behaving
are coordinated progressively by the social socialization experience that searchers bring to a hunt
circumstance. The elements for the full of feeling conduct is affected by Impressions of safety,
Better Benefit Return in ULIPs markets, Burglary Evidence, Home loan, Strategy upgrade, Tax
cuts and exclusion area, Specialist's odd-on administrations, Feasible for Restorations in ULIPs
and so on.

Affective Behavior in Relation with Investors Behavior:

The perspective of a financial backers in various ventures is result arranged because of its
various elements of venture, the upsides of venture and furthermore the close to home
connection of the financial backers towards the sorts of speculation chose by the financial
backer, full of feeling responsibility towards the organization and its items are additionally
essential for emotional way of behaving uncovered by the financial backers, some of the time the
organization might turn down its offers and goals to make to new organization yet the financial
backers are unequivocally adhering to the old and past organization and its items with the
variables of full of feeling responsibility towards the organization and its items.
Challenging Behavior of Investors:

Challenging Behavior of investors is defined as such intensity, frequency or duration that the
physical safety of the person or others is placed in serious jeopardy or behavior which is likely to
seriously limit or deny access to the use of ordinary community facilities (Emerson).

Factors of Challenging Investors Behavior:

They include Medical, Psychiatric and Environmental factors. Impact of Challenging Investors
Behavior: Danger to self and others, social isolation and Lack of social, domestic and/or
employment opportunities.

Significance of Challenging Investors Behavior: Challenging behavior may seriously affect a

person’s health and quality of life. Self-injurious behavior (including ingestion or inhalation of
foreign bodies) can result in bowel perforation, infection, blood loss, brain damage and even
death. Oppositional behavior may result in dietary deficiencies, weight loss or gross obesity.
Accidental injury is a common medical problem in people with aggressive behavior. Lack of
social skills can lead to loneliness and depression.

Factors Influencing the Investors Behavior:

Medical Influences: Unrecognized pain or discomfort, Substance abuse, Epilepsy, Syndrome-

specific conditions and behavioral phenotypes and Medication (side effect). Psychiatric
Influences: Is there a family history of psychiatric disorders Depression, Mood disorders and
Schizophrenia. Environmental (Social and Physical) Influences: Gaining social attention, Escape
or avoidance of demands, Gaining access to preferred activities or objects, Sensory feedback,
egg hand flapping, eye poking, Pursuit of power and control over own life, Reduction of arousal
and anxiety and Challenging behavior.
Concept of Investors Awareness:

Mindfulness about disaster protection is a fundamental pre-imperative for guaranteeing need-

based buy and customer security. There is poor understanding among clients about the ideas of
disaster protection and its job in protecting one's future. To add to it, the failure of customers in
understanding the key focus points from a huge volume of data prompts data lopsidedness
between the wholesaler and the castor.

In this specific situation, monetary training can assume a critical part in assisting customers with
crossing over this data hole. Moreover, information about the presence of a compelling
complaint redressal component is fundamental for acquiring the certainty of the uninsured
populace and beating misgivings they might have about partaking in the ULIPs space. For the
populace bunch that would have recently entered into the formal monetary framework through
monetary incorporation drives like

miniature protection, mindfulness about the phrasings and different parts of disaster protection is
an unquestionable requirement to stay away from any unpalatable experience. To add to it the
expanded mindfulness about ULIPs will assist with ordinary class check life out protection past
similarly as a duty reserve funds instrument.

Concept and Components of ULIPs:

ULIP is a condensing for Unit Connected Insurance Contract/Plan. What does unit connect
mean. It implies that it is connected to units of speculation which are made in the capital and
currency markets. Subsequently, ULIPs are a mix of extra security and market connected
speculation. Subsequently, it gives your life cover as well as capital appreciation connected

to the capital business sectors. From the hour of their send off, ULIPs have gotten the
extravagant of people for a very long time. At a certain point, most, as a matter-of-fact people
choosing extra security would go in for ULIPs rather than term plans or gift plans. Anyway, their
energy has gone down as of late because of administrative changes. However, they are as yet
optimal items to put resources into as they give life cover as well as adaptable
venture choices for different gamble levels. There are a plenty of items accessible in ULIPs. In
this manner, people actually should comprehend what to search for in a ULIP prior to effective
money management. Everything of premium paid isn't distributed to buy units.

Back up plans assign units on the piece of the premium excess later accommodating different
charges under the arrangement. Hence, the piece of premium used to buy units differs from one
item to another. The aggregate money related worth of the units assigned is perpetually not
exactly how much premium paid in light of the fact that the charges are first deducted from the
premium gathered and the leftover sum is utilized for apportioning units. Allow us to get

acclimated for certain normal terms that you will go over while putting resources into ULIPS:

 Unit Fund: The entire invested amount from various investors in a scheme is pooled
together after deducting the initial expenses to form a fund that is called a Unit Fund.

 Unit: One single part of the total invested amount of the insurance fund is called a unit.

 NAV: NAV or Net Asset Value is the value of each unit of the fund on a given day. The
NAV of each fund is displayed on the website of the respective insurers.

Types of ULIPs:

Contingent upon the reason for speculation ULIPS can be isolated into the accompanying kinds:
ULIPs for Retirement Arranging: These plans gather a piece of your reserve funds throughout
some stretch of time and the corpus sum is made accessible to the policyholder at development
for buying a quick annuity plan. ULIPs for Youngster Schooling: These plans point at offering
monetary help for costs connected with youngsters like training, marriage and so forth.

ULIPs for Abundance Creation: There are quite a large number ULIP's with the target of
amassing abundance after some time which will assist the policyholder with beating the
increasing expenses by offering return on venture. ULIPs for Wellbeing Arrangements:
Remembering the rising clinical costs, these plans permit the policyholders to guarantee for
wellbeing related costs of any sort. A few plans may likewise support your future medical
coverage charges.

Most safety net providers offer a large number of assets to suit one's protection and speculation
goals, risk profile and time skylines. Various assets have different risk profiles. The potential for
gets back moreover fluctuates from one asset to another. Coming up next are a portion of the
normal kinds of assets accessible in India, alongside a sign of their risk attributes.

General Description Nature of Investment Risk Category

Cash Funds Sometimes known as Money Low

Market Funds - invested in
cash, bank deposits and money
market instruments
Income, Fixed Interest and Invested in corporate bonds, Medium
Bond Funds government securities and
other fixed income
instruments
Balanced Funds Combining equity investment Medium
with fixed interest instruments
Equity Funds Primarily invested in company Medium to High
stocks with the general aim of
capital appreciation

As definite in the table, value reserves put generally in value, and convey higher gamble. These
assets are ideal for youthful financial backers with higher gamble hungers. Pay, Fixed Interest,
Security and Adjusted reserves give lesser gamble then value reserves. Moderately aged
financial backers with medium risk profile can pick adjusted reserves that contribute just piece of
the corpus in values.

Cash reserves are an optimal choice for risk-disinclined clients. Unit Connected Protection Plan
(ULIP) is a life coverage arrangement that accommodates the advantages of hazard assurance
and adaptability in speculation. The venture is indicated as units and is addressed by the worth
that it has accomplished called as Net Resource Worth (NAV).

The strategy esteem at any time fluctuates as per the worth of the basic resources at that point. In
a ULIP, the contributed measure of the charges in the wake of deducting for all the charges and
premium for risk cover under all strategies in a specific asset as picked by the strategy holders
are pooled together to frame a Unit store. A Unit is the part of the Asset in a Unit Connected
Insurance Contract. The returns in a ULIP rely on the presentation of the asset in the capital
market.

ULIP financial backers have the choice of effective money management across different plans,
i.e., enhanced value reserves, adjusted reserves, obligation reserves and so forth. It is essential to
recall that in a ULIP, the venture risk is by and large borne by the financial backer. In a ULIP,
financial backers have the decision of putting resources into a single amount (single premium) or
making premium installments on a yearly, half-yearly, quarterly or month to month premise.
Financial backers additionally have the adaptability to change the premium sums during the
approach's residency.

For instance, if an individual has excess assets, he can improve the commitment in ULIP. On the
other hand, an individual confronted with a liquidity crunch has the choice of paying a lower
sum (the distinction being changed in the collected worth of his ULIP).

ULIP financial backers can move their speculations across different plans/resource classes
(expanded value reserves, adjusted reserves, obligation reserves) either at an ostensible or no
expense.
Service charges in a ULIP:

Charges Meaning
Service Tax Deductions Service tax is deducted from the risk portion
of the premium.
Fund Switching Charge Usually, a limited number of fund switches
are allowed each year without charge, with
subsequent switches, subject to a charge.
Administration Charges This is the charge for administration of the
plan and is levied by cancellation of units.
Surrender Charges Deducted for premature partial or full
encashment of units.
Fund Management Charges Fees levied for management of the fund and is
deducted before arriving at the NAV.
Mortality Charges These are charges for the cost of insurance
coverage and depend on number of factors
such as age, amount of coverage, state of
health etc.
Premium Allocation Charge A percentage of the premium is appropriated
 towards charges initial and renewal expenses
apart from commission expenses before
allocating the units under the policy

Advantages of Investing in ULIPs:

During the monetary year (2006-07), most financial backers would have associated with their
venture consultants and specialists for charge arranging. What's more, there's a fair opportunity
that unit connected protection plans highlighted conspicuously in the counsel's suggestion. As of
late, scarcely any venture roads (particularly in the assessment saving space) can profess to
match ULIPs as far as their sheer ubiquity. ULIPs basically join the advantages of an insurance
contract furthermore, a market-connected venture. A specific extent of the premium paid is put
resources into market-connected instruments like values and securities (in line with the expressed
order) and the equilibrium is utilized to accommodate the costs caused on furnishing the
financial backer with a protection cover. Like most different items in the expense saving
fragment, ULIPs are additionally intended to accomplish the twin targets of tax breaks and
capital appreciation. With this rudimentary comprehension of ULIPs, we will presently attempt
to investigate what is it about ULIPs that makes them so famous with venture consultants and
financial backers the same. The Appealing Organization Commission: A counsel selling a ULIP
is prone to take a commission in the scope of 30.00 percent of the premium paid in the initial not
many years. On the other hand, an interest in a taxsaving common asset (which offers a similar
tax reduction under Segment 80C of the Personal Duty Act) would bring him a forthright
commission of 2.00-2.50 percent of the speculation esteem. Likewise, the commission in the

following years (known as trail commission) adds up to around 5.00 percent for ULIP
speculations opposite around 0.70 percent if there should be an occurrence of common assets.
The alluring commissions on ULIPs contrasted with other roads like common assets and term
designs surely functions as a significant motivation for the counsel. Understanding the reason
why an advisor is easy would hard offer ULIPs to each planned protection searcher paying little
mind to whether ULIPs are fit to address the last option's issues.
ULIPs Trends in India

Customarily, one of the methods for reserve funds as ULIPs has been purchased for charge
saving, as opposed to according to the viewpoint of safeguarding oneself. Subsequently, the
'protection' viewpoint ordinarily assumes a lower priority. Besides, mindfulness among financial
backers regarding protection items will in general be low. Most dependable and exclusively on
their ULIPs investment funds specialist for suggestions. It is as of now talked about that a
protection specialist is possible to suggest a ULIPs on need. For most people, a term plan ought
to be the main item to highlight in their protection portfolios; speculation connected items like
enrichment and ULIPs can be purchased as required. Term plans give the safeguarded chosen
people the aggregate guaranteed if a possibility happens during the term of the approach. There
are no development benefits; subsequently on the off chance that the safeguarded were to endure
the approach term, he would not get anything. Tragically, purchasing term plans are never
considered in light of the fact that of the attitude - "I have paid cash (premium) towards the
protection strategy, so I ought to get a return". Counselors under the affection of relieving

financial backers' fears of not getting any profits on development offer items like ULIPs. Such
items with their commitment of giving returns, effectively get the extravagant of most financial
backers.

History of Share Market and ULIP:

The supported bull run in the value markets throughout the course of recent years has come
about in most market-connected speculations seeing significant development. This has

worked for ULIPs too. Yet, one should observe the way that virtually all the ULIPs in the market
are of ongoing beginning and they have not however been tried over a drawn out bear stage.
Retail financial backers will quite often get moved by ongoing exhibitions without understanding
that there is no ensure that a comparative presentation will be supported from now on. The

consultant on his part will in general underplay the new beginning of ULIPs and rather uses their
presentation as a selling suggestion.
Flexibility in ULIPs:

ULIPs aren't well known only for some unacceptable reasons. Have confidence, they have their
up-sides also. ULIPs offer the sort of adaptability that no protection item can. For instance,
financial backers can choose a ULIP with a value obligation mix that is in accordance with their
gamble profile. A gamble taking financial backer would ordinarily choose one with a high value
part, while a gamble opposed financial backer would choose a debtheavy one. Additionally,
ULIP financial backers have the chance to 'make due' their monies. At the point when value
markets appear to be overheated, financial backers can move their corpus into an obligation
situated portfolio, and in the process protect it from unpredictability in the value markets.
Comparative changes can be integrated when the financial backer's gamble profile goes through
a change. Then there are benefits like the top-up office (which resembles a one-time premium
installment) that can be utilized to use overflow monies profitably. One more justification behind
purchasing a ULIP is the advantage it offers, by packaging protection with a speculation item.
Consequently, for anybody who needs to stay away from the issue of dealing with various sorts
of venture and disaster protection items, ULIPs can be a decent choice. In spite of the fact that
ULIPs might have become well known for more 'wrong' reasons than 'right' ones, the section has
its reasonable part of up-sides. Financial backers on their part need to guarantee that they put
resources into a ULIP for the right reasons, in the wake of turning out to be completely mindful
of the results of the venture. At the end of the day, they need to obstruct all the commotion (read
one-sided suggestions from the guide) and make an educated venture choice in view of their
gamble profile and speculation goals.
Benefits of ULIPs:

Unit Linked Plans offer remarkable open door to consolidate insurance with ventures. ULIPs
offer a total choice of high, medium and generally safe venture choices under a similar strategy.

Fitting approach can be picked by risk taking craving, combined with the potential chance to
switch between store choices with practically no extra cost for indicated number of switches.
ULIPs give the adaptability to pick the aggregate guaranteed and speculation proportion in the
yearly designated premium. It likewise offers the adaptability of one-time expansion in
speculation portfolio, through top-ups to benefit venture an open door presented by outside
climate or own pay streams.

Transparency:

The charge structure, value of investment and expected IRR based on 6% and 10% rate of
returns, for the complete tenure of the policy are shared with the insurers before that buy a
product. Similarly, the annual account statement, quarterly investment portfolio and daily NAV
reporting, ensures that you are aware of the status of your investment portfolio at all times. Most
companies publish latest NAVs on their respective websites on a daily basis. Liquidity: To cope
with unforeseen circumstances, ULIPs offer the benefit of partial withdrawal; wherein after 5
years you can withdraw funds from our Unit Linked account, retaining only the stipulated
minimum amount. Disciplined and regular savings: ULIPs help you inculcate a regular saving
habit. Also, the average unit costs tend to be lower than one time investment. Multiple benefits
bundled in one product: ULIP is an outstanding solution for risk cover, long term investments
with the benefit of various investment opportunities, coupled with tax benefits. Spread of risk:
ULIPs are ideal for those investors who wish to avail the benefit of market linked growth without
actually participating in the stock market, with the added benefit of risk-cover.

Investor Behavior in the Study Area:

Argo-Monetary Highlights: Cuddlier locale possesses a significant place in the field of farming,
since horticulture is the backbone of the individuals of this region. The harvests filled in the
region can be helpfully gathered into two, viz., the grains and heartbeats which go under food

harvests, and others which go under cash yields or business crops. 72.4 percent of the complete
planted region in the locale covers food crops. The head grain yields of this locale are paddy,
virago, cholla, combo, also, ragi. Significant assortments of heartbeats are red gram, green gram
and dark gram. Dark gram is one of the significant heartbeats filled in Tamil Nadu

what's more, is developed during both Kharif and Rabi seasons and it possesses almost of 40% of
the complete region under beats. Black gram is widely filled in ten locale and Cuddlier area one
among them. Other assortments of heartbeats brought up in the locale, viz., Bengal gram, red
gram and horse gram are prevalently developed as rainfed crops. The central business yields of
the locale are groundnut, sugarcane and gingelly. Paddy is developed in all the taluks of the
locale furthermore, to a greater extent in Chidambaram. Oil seeds are developed all through the
locale as a mid-year crop. Among oil seeds, groundnut, gingelly and castor possess significant
spots. Different harvests filled in the region are cashew, tobacco, and cotton. Bananas, Mangoes
and Jack natural products are the significant natural products developed in the region. The
conspicuous job that Cuddlier is presently playing in the Farming area in the State is expected

generally, to its water system offices. The greater part of the net region planted in the locale is
under water system. The central wellspring of water system in the area is the waterways
enhanced by countless down-poured tanks, wells and spring channels. The central streams that
serve the district are the Celeron, Velar, Velar and Ponniah. This multitude of waterways run in
valleys and have been tackled for water system purposes by anicuts constructed
across them at different phases of their course. Tanks are taken care of by waterway channels
and downpour water. Generally significant among significant tanks of the region are the Verena
tank, Wallaba tank and Penner tank. The significant populaces in Cuddlier region develop
agribusiness also, its connected exercises besides in the metropolitan and semi metropolitan
regions. The significant financial backers fall in similarly both provincial and in metropolitan
regions. Age of reserve funds and its transformation into capital is principal to the hypothesis of
financial development.

Chaptalization:

The first chapter provides a detailed background and relevant information about thrust area of
our study, aimed at knowing the meaning and concepts of investment, investors behavior and
their different dimensions of investment, types and risks factors found in the different
investments and finally the assessment of different behavior in the ULIPs market. In second
chapter we have briefly reviewed a few of the studies on investors behavior, preference and
decision making in ULIPs market. The review includes studies conducted in the functional
aspects of investors behavior in ULIPs market. This help not only in exposing the significant
information about ULIPs market status in different provides and the changing trends in the
ULIPs market. This clearly provides comprehensive perspective of the multiple views on the
subject matter but also in centralizing our own study.
 Chapter 2

Review of Literature

An analysis of review of literature is an important aspect of research, through which one can
understand the past trends in research output in any particular discipline. Thrust area of present
study can be clarified by reviewing the available literature on the subject, objectives, and
methodology of the study. Hence a review of studies deserves due attention for the analysis of
the present research work and helps one to identify the research gap in the previous study.

Arifur Rehman Shaikh & Anil Kalkundarikar (2011), in their research “Analysis of Retail
Investor’s Behaviour in Belgaum District, Karnataka State”, clearly pointed out that due to
emergence of economic liberalization policy, it paved a may to increase the number of
investment opportunities available for retail investors depending upon their selection of different
funds like bank deposits, government and private, shares and stocks, exchange traded funds,
mutual funds, insurance derivatives, gold silver, currencies, real estates and other. There was a
clear indicator that retail investors were increasingly tapping the stock markets through the
mutual fund route. The mutual fund, as a capital intermediary, has emerged as new avenue for
capital resources. It brought gap between retail investors and capital markets. The main aim of
the retail investors was to earn regular income and expected rate of return.

Manoj Sharma, Sai Vijay & Pateria, Sheetal Sharma (2012), in their paper, “Impact of
demographic factors on the satisfaction of investors towards insurance policies: an empirical
study”, analysed the effects of socio-economic characteristics on the fulfillment of investors
towards insurance policies. The study used the survey approach. The total number of sample was
358 respondents. The result of the study was different as socio-economic characteristics such as
age, gender, marital status, educational qualification, employment status make impact of their 61
satisfaction level towards insurance policies in the Indian scenario. The study emphasised
strongly the importance of socio-economic characteristics which promote the public and private
insurance companies to identify the needs of these segments of society. This paper found that
there is a significant relationship between demographic factors and general satisfaction of the
customers towards the insurance policies.

Radhika (2012), in her study, “Comparative study of Life Insurance Policies with Unit Linked
Insurance Policies-An Investor’s Perception - an Empirical Study”, revealed that the perception
of investing public and financial intermediaries was identified through an opinion survey of
investors, brokers and fund managers. The study indicated, that the average rate of return
investment was marginally lower than the market return while the standard deviation was higher
than the market. The analysis also provided that, performance of fund was not clearly associated
its size and the equality funds managed by professionally qualified managers to be more risky
but better diversified than the others. The study indicated on the saving and investment pattern of
investors and the factors responsible for selection investment in life insurance and ULIPs and
comparison with life insurance polices with ULIPs under different dimensions.

Anant Gupta (2012), is Unit Linked Insurance Products (ULIPs) – “Insurance or investment?”,
showed that the Indian life insurance has taken many regulatory changes with the guidance of
IRDA 62 especially to clamp down the mis-selling of ULIPs as investment products made for
regulatory arbitrage and not as insurance products. The major effort has been taken towards the
changes in regulatory arbitrage included increasing the mortality risk lowering 10 times the
annual premium increasing the context and reducing the investment context. The author
identified the urgent need for comprehensive selfregulatory regime for mutual funds in India, in
the context of dimensions in its size, constitution, regulation among funds and sampling
deregulation and liberalization in its financial sector. The study revealed the findings on
liberalization of economic facilities, meta marphic changes in the financial system bringing out
increase in the share of household savings, changes in investment attitude, and preference.

Babita Yadav and Anshuman Tiwari (2012), in their review “A Study on Factors Affecting
Customers Investment Towards Life Insurance Policies”, contended that LIC is the most
endorsed and well known in life coverage. In the venture piece of the pie of private examples are
steadily developing with individuals' trust and best administrations delivered by them are a
portion of the fundamental discoveries of the review. Protection is protected against risk, on the
off chance that it doesn't occur the gamble, the safeguarded cash will be back toward the finish of
the development time frame: Reserve funds and venture which are advanced by the capital are
the premise of capital of arrangement and monetary development in the country. A large portion
of the investors go for plans of higher pace of profits for their speculation, since they are drawn
in by various plans, yet they don't know whether the plans understanding are the most secure
decision or not. Along these lines, at first, we need to make mindfulness on reserve funds and
most secure roads for the investors then the investor will dissect the hydrous choices for their
venture. Thus, our administration must take more consideration on the investor by giving
appropriate rules to the financial backer by utilizing monetary establishments. It is the imperative
obligation of the government to safeguard the investors. The paper uncovered that financial
qualities of individuals assume an essential and huge part in dynamic in the acquisition of life
insurance policies.

Chand Basha et al., in their article, “A Study on Policy Holders Perception towards Life
Insurance Corporation of India”, (2014), talked about the Indian financial backer’s difficulty in
optional market because of absence of proficient exhortation, failure to limit the gamble,
restricted assets and data. Investment is a responsibility of assets in genuine resources or
monetary resources. Financial assets more liquid than real assets. Anyway, all monetary
speculations are hazardous, yet the level of chance and return contrast from one another.
Consequently, the information on monetary speculations and the specialty of its administration
are the premise prerequisites for an effective financial backer. Greater part of the financial
backers was firmly impacted by the inspiration by specialists while choosing an insurance
contract from LIC, enormous quantities of policyholders unequivocally are of the assessment
that the top-notch rate is high, larger part of the example policyholders liked to buy cash back
strategy and policyholders expected an arrival of 11-15 percent from their investments.
Deep Thakkar (2014), “A Study of Consumer Behavior Towards Life Insurance in Kolhapur
City”, stated that life insurance is perhaps the best-known method of protecting against the risk
of the life of the individuals. Insurance simply transfers risk to a specified intermediary in
exchange of for insurance premium. So, his/her family has used against life risk. The purpose of
life insurance may vary from individual. There are many insurance sectors having multiple
attractive schemes, which may put customers in a complicated situation of the status. They are
unable to take any decision on different products and polices. So, the marketers very keen to the
investors behavior of their in purchasing type of polices through their marketing strategies. So,
the study clearly brought about study of the investor behavior is very important before release
different polices of life insurance schemes.

Jin-Ying Wang (2014), is article “Investment behaviours and IPO returns: evidence from
Taiwan”, used Buy-Sell Imbalance (BSI) as an indicator of investment behaviour to analyse the
correlation between investor trading behaviours and returns of Initial Public Offerings (IPOs). In
Taiwan’s stack market, the individual investors play a dominant role, individual investors have
difficult time while determining thesis portfolio, they did not usually have time to research a
share are debenture in depth before the investment decision, they have business life, a family life,
social life and the time remaining from these pursuits, if any, is likely to be worry limited. In
contradiction with individual investors, institutional investors seem to be having long term lower
returns. Institutional investors, have both time and resources to dig deeper than the individual
investors they can employ skilled economist, financial analysis and investment managers. They
could purchase of copies of registration of the documents of the relevant corporations, as
accompanies and read with them understanding. The institutional investors own a major portion
of the corporate securities. The article comes with the suggestions price correction of the
investment and optimistic individual investors is the 65 record for poorer long term realizes of
IPOs benefited by individual investors.
Research Gap

It is evident that research gap is found in the Indian insurance industry in gaining maturity and
confidence. This insurance industry family contributed to India’s economic development and
witnessed occur the last decade. In this regard, India shall learn from global history to steer
ahead in proper direction. In the case of countries like Japan, German, Italy, the United Kingdom
and more recently Korea, after the Korean war, post-war reconstruction has been 66 strongly
influenced insurance industries. With the limited research findings and exposure background
towards ULIPs market in India when compared to Western countries, the present research has
been under taken in the field of investor behavior in ULIPs. The findings cannot be completely
generalized to the whole context of investor behavior in ULIPs.
 Chapter 3

Research Methodology

Introduction:

The previous chapter focused on the studies related to the present study. Keeping the research
trend in mind, the present study was designed. This chapter provides the objectives and research
methodology adopted for this study “Investors Behaviour on ULIPs (Unit Linked Insurance
Plans)” Market. The hypotheses arrived at, after careful study, are presented. Statement of the
problem, significance of the study, Research design data, data collection method, sampling plan,
sampling size, and statistical tools are explained in this chapter.

Statement of Problem:

Due to the emergence of globalization and liberalization there is a strong competition among the
insurance industries which are focusing attention in capturing the Indian markets and insurance
industries are no more considered with security, awareness, investment decision, preference,
problems related investment. Investors have now changed their attitude that yesterday’s ULIPs
investments are today’s necessities. To be a successful marketer it is absolutely essential to study
the investors behaviour on ULIPs markets. The substantial changes in lifestyle patterns of the
investors have caused tremendous changes in insurance market place which is a result of 69
globalization and integration of world economies. The measure of behaviour of investors of
current generation has become difficult to gauge as time tested insurance marketing concepts
have failed. The preference is characterized by distinctiveness of an individual’s expectations,
for multiple options, heavy tendency of abandoning loyalty and switching towards competitor
insurance companies which provide higher value to the investors. The new generation investors
are difficult to classify by conventional demographic factors and unless their thought process and
buying behavior preferences are fully understood, decisions on investors and security are likely
to be misled.
Significance of the Study:

Research in behavioural finance is comparatively less in India, when compared to other foreign
countries. Within behavioural finance it is assumed that information structure and the
characteristics of market participants systematically influence individuals' investment decisions
as well as market outcomes. The behavioral finance mainly focuses on how investors interpret
and act on micro and macro information to make investment decisions. ULIPs is a growing
industry and considered as the major mobilizer of financial resources for the stock market and
the economy in general. The rapid growth of the ULIPS industry in India has attracted a number
of private players into the market. Formulation of alternative schemes by various ULIPs
companies has become important to light the battle and to secure a sound position in the
industry. ULIPs as an investment means is capturing the attention of various segments of the
society, like academicians, industrialists, financial intermediaries, investors and regulators for
varied reasons and deserves an in depth study. With the increase in domestic savings and
improvement in awareness of value of life of the earning person in a family, the need and scope
for life Insurance operation has increased tremendously. Life Insurance is not only best suited for
the purpose of insuring the life but also is capable of meeting future financial challenges
effectively. Hence, this study explores customers' opinion and awareness level of Unit Linked
Insurance Policy. Even though this ULIPs plan is working with the market conditions, but it has
lot of problems to the investors due to lake of awareness and other reasons. Low level of
business tractions and volume of business are major problems of ULIPs business. This study
aims to address the current issues on ULIPs offered by various companies. This study would
include customers who have invested in mutual funds and ULIPs. The study is to appraise the
financial performance of mutual funds. The study would collect and use the details of Net Asset
Value of mutual funds and ULIPs for a period of one year. Though various studies have been
conducted in other countries but to the best of the researcher's knowledge, the researcher could
not find any similar study in India. Hence this study attempts to find out the factors influencing
investors’ attitude towards investing in ULIPs market.
Objectives of the Study:

The study is based on the following objectives:

1. To identify the important factors for investing in ULIPs, preference of investment, problems
of investors.

2. To find whether there is any difference in the importance attached to factors for investing in
Unit Linked Insurance Plans (ULIPs) based on the demographic factors.

3. To know whether there is variation in the preference level of various investment based on
various factors.

4. To identify whether the intensity of problems vary with respect to various factors.

5. To analyse the investors cognitive behaviour and affective behaviour based on various factors

Formulation of Hypothesis:

1. Occupation and gender are independent of the investors in investment decision in ULIPs

2. Age and income have no significant impact in the investment decision in ULIPs.

3. There is no relationship between the level of awareness and expected returns.

4. There is no relationship between educational status and level of awareness.

5. There is no relationship between educational status and investment preference.

6. There is no relationship between occupation and level of risk assumed by investors.

Limitation of Study:

In several research, especially studying the human behaviour on certain issues, the findings
based on primary data collection will not always lead to accurate results due to many differences
like geographical, level of understanding, observations, and informations provided by the
respondents may be with lack of accuracy.
Research Methodology

Research Design:

In any research study, the research design adopted is basic and vital concept. In the present
study, a comparative idea of the responses of the chosen respondents about the investors
behaviour on ULIPs (Unit Linked Insurance Plans) Market will help to have as an idea in
important aspects of the investors in the decision of the investment and its impact. The data were
collected through using a structured questionnaire.

Research Tool:

In any survey or study, one of the concepts of collecting data is very important and it plays a
dominant role in knowing the primary information about the research area and the respondents
its accuracy. There are many points to be taken into consideration in the preparation of a
questionnaire. “Preparation of a schedule or questionnaire with suitable instructions needs to be
given to investors Behaviour on ULIPs (Unit Linked Insurance Plans) Market consideration in
planning surveys, as the utility of the results of the survey depends on large extent in the
collection of data. The framing of questionnaire or items should be done in a simple,
unambiguous, interesting and tactful manner and they should be so prepared not to influence the
answer of the respondents. The sequence of items is important. Those items, which are likely to
help the investigation in establishing a good rapport with the respondents should be put first, and
items relating to a particular aspect of the survey should come together in the questionnaire.

Scope of Study:

In any research study, the scope of the study is very vital and important. In the different areas of
Management studies like marketing, human resource management, finance etc, studies are
investors behaviour on ULIPs market with specific objectives in mind. The data collection
through a well-framed questionnaire would bring out the ground realities. Suitable strategies can
be applied to enhance the returns, performance of insurance industry as well as individuals
consumption in the same. In the present study, the factors influencing the investors behaviour on
ULIPs market are identified. The expectations of the security, demographic variables that
influence the decision to investment on ULIPs are identified. This study brings out the security
of importance given to the different aspects and factor in the investors behaviour on ULIPs. All
these attempts put together would improve the satisfaction of the investors on ULIPs marketing.

Data Collection

Primary Data:

In order to fulfill the objectives set, a sample study was undertaken by using a well framed
questionnaire that was duly filled by the respondents. The respondents were selected with
varying background. A noteworthy feature was that all the respondents filled the questionnaire
enthusiastically. This was due to the high level of literacy among the respondents and the
researcher’s rapport with them. The specimen of the questionnaire given to the selected sample
respondents are shown in the appendix section of this thesis.

Secondary Data:

The primary data were supplemented by a spate of secondary sources of data. The secondary
data pertaining to the study was gathered from the records published by ULIPs books. Further,
the secondary data were also collected from various leading journals. A number of standard
textbooks were studied to obtain pertinent literature on ULIPs investors behaviour. Web
resources were also used to collect the latest information about the research.

Techniques:

Questionnaires were utilized as the methods and tools for data gathering during surveys, and pie
diagram was used statistically.
 Chapter 4

Data Analysis and Interpretation

What is your most favoured type of investing?

10%

12%
43%
Mutual Funds
Shares
ULIPs
Fixed Deposits
36%
How much life cover would you prefer in ULIP? 

12%

10%

1 crore
2 crore
19% 60%
3 crore
5 crore and above
How much risk are you willing to take in ULIP?

5%

38%
Low risk
57% Moderate risk
High risk
Are you satisfied by flexibility offered by ULIP in investment?

8% 3%

35% Highly satisfied

Satisfied
54%
Average
Not satisfied
Why do you think ULIP is preferred over Mutual funds?

19%

45%
Life cover
More Returns
24% Tax benefits
All of the above

12%
How often do you pay insurance premium?

19%
33%

Monthly
17% Quaterly
Semi Annually
Annually

31%
From where do you prefer buying ULIP?

31%

50%
Public Sector
Private Sector
Both

19%
What do you think are costs associated with a ULIP?

13%

43%
Mortallity fees
Fund Management charges
40% Surrender Charges
All of the above

4%
Why would you invest in ULIP ?

15%

3% 36%

Wealth Creation
Family Safety
Children Education
Retirement Planning
46%
How long do you think insurance company permit the investors to switch over a
plan for free of cost?

12%

12%

1-2 times
56% 2-3 times
3-4 times
21% No Limit
How can investors increase the interest on their ULIP?

14%
29%

24% Starting Early

Paying premium on time
Diversifying investment
Other

33%
At which rate you want your investment to grow ?

10%

33%

29% 0-5%
5-10%
10-15%
Above 15%

29%
In which sector do you prefer invest money?

13%

10%

IT Sector
54% BFSI Sector
FMCG Sector
23% Other
What percentage of your income do you like to invest in ULIP?

10%

12%
44%
5-15%
15-25%
25-35%
Above 35%
34%
How do you get information about various insurance companies and plans?

14%

50% Advertisement
26% Workshops
Agent
Seminar

10%
At what age would you like to start your ULIP plan ?

2%
17%

50% As early as possible

20-25 age group
25-30 age group
31% above 30 age group
Do you agree that ULIP provides affordable life cover than term insurance?

10%
7%

7%
Strongly disagree
55% Disagree
Strongly agree
21% Agree
Neutral
Do you agree that ULIP returns are volatile?

7%
10%

7%
Strongly disagree
52% Disagree
Strongly agree
Agree
24% Neutral
What are the things to keep in mind before selecting a ULIP?

14%

41%
19% Financial goals
Risk appetite
Various charges on plan
Other

26%
Do you agree that ULIP plans are suitable for long term investment?

5%
7%

12%
Strongly disagree
52% Disagree
Strongly agree
Agree
24% Neutral
Do you think investment returns are guaranteed in ULIP?

14% 17%

Definitely
Probably
33% Maybe
36% May not
Do you agree that ULIP plans are suitable for long term investment?

5%
10%

10%
Strongly Disagree
50%
Disagree
Strongly Agree
Agree
25% Neutral
Do you agree partial withdrawal available in ULIP plans?

10%
10%

Strongly Disagree
17% Disagree
63% Strongly Agree
Agree
Would you recommend ULIP investment to others?

2%
19%

33%

Definitely
Probably
Maybe
May not
45%
 Chapter 5

FINDINGS