PURPOSE OF STUDY:
• To study the concept and working mechanism of ULIPs
• Reasons why ULIPs get thumps up
• Reasons for investing systematically
• To study in detail about two ULIP product of Bajaj Allianz Life Insurance Co Ltd
• To make a comparison between Mutual Funds & ULIPs• To study the comparison between Traditional Policies & ULIPs• To understand the relationship between Mutual Funds & ULIPs and Traditional Policies & ULIPs
• To have an awareness of IRDA Guidelines with respect to ULIPs
SCOPE OF STUDY:
The ULIP as an Investment Avenue MBA Final Year Project entitled “ULIP as an Investment Avenue” is a detailed study about the inception of the concept of Unit linked insurance policies and its working mechanism. The study is confined only to the analysis about the ULIPS and its effectiveness in comparison with the traditional policies and the Mutual funds. The Scope is limited only to the detailed understanding of the two products of the Bajaj Allianz.
LIMITATIONS OF THE STUDY:
• The study is limited only to Bajaj Allianz.
• The study does not include any comparison with product of other companies.
• More focused on ULIPs only.
FINDINGS:
• ULIP is gaining importance as it could suffice the needs of the small investor while offering the dual options of insurance and the investment.
• Unit Linked Insurance Plans are purely subject to market risk. Any person having the perfect knowledge of the markets can pocket huge returns.
• If the investor invests in equity no minimum guarantee is offered to the investor amount.
• If the investor invest in Bond fund, there is minimum guarantee to the investor amount
• Popular for its triple benefits, this offers life cover, capital appreciation and income tax benefits
• ULIPs are better when compare with Traditional policies and Mutual Funds
• ULIPs are liquid and offer flexibility to the investor after some period
CONCLUSIONS
In conclusion, the ULIPs there by collects money or funds from the investors with similar investment goals. It is one of the ways of mobilizing the funds and channelizing them properly. Very small percentage of the population is well aware of the ULIPs. The advertisement has become an effective tool to create public awareness, thus educating them about the various avenues available to them. The switching off from the ULIPs are very low. The investment manager has to guide the investor to choose the correct available funds which they prefer.
In rural areas, people have no idea about the ULIPs, while they totally depend on the agents who often cheat them. Therefore, it is the duty of the fund managers to guide investors properly. In Final, ULIPs are better than Mutual Funds and Traditional policies
Download ULIP as an Investment Avenue MBA Final Year Project.