A Thesis on Returns Given by Ulip Funds of Icici Pru

a thesis ON

returns given by ulip funds

of

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submitTED BY:

GAURESH S. SHET TALAULIKAR

8NBGP028
INDEX
|Sr. No. |Title |Page No |
|1 |Certificate |2 |
|2 |Declaration |3 |
|3 |Acknowledgement |4 |
|4 |Introduction |6 |
|5 |Company Profile |16 |
|6 |Literature Review |27 |
|7 |Research Methodology |32 |
|8 |Statistical Tools |34 |
| | | |
| | | |
| | | |
|9 |Analysis |36 |
|10 |Conclusion And Recommendation |45 |
|11 |References |48 |

Certificate

This is to certify that the project titled “A STUDY OF RETURNS GIVEN BY ULIP FUNDS OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY”. Analyse insurance as an investment option. Calculate returns profile of unit linked insurance plans (ULIP) at ICICI Prudential Life Insurance Company Ltd, is a bonafide work done by Mr. Gauresh S. Shet Talaulikar Enrollment No. 8NBGP028.

ROSHAN NAIK
Faculty Guide

Declaration

I here by declare the project work titled “A STUDY OF RETURNS GIVEN BY ULIP FUNDS OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY”. Analyse insurance as an investment option/avenue. Calculate return profile of unit linked insurance plans (ULIP) and mutual funds” at ICICI Prudential has been developed by me, under the guidance & supervision of Miss Roshan Naik , Faculty Guide, INC Porvorim

Gauresh S. Shet Talaulikar

ACKNOWLEDGEMENT

This Thesis entitled A STUDY OF RETURNS GIVEN BY ULIP FUNDS OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY has been successfully completed for Sem-III of MBA.

I would first and foremost like to express my sincere gratitude and thank our faculty guide Ms. Roshan Naik of INC Porvorim for their guidance and co-operation whenever I required it.

I would also take the opportunity to thank our campus head Mr. Imran Ahmad, for providing me with all facilities necessary for completing my thesis.

I would also thank my parents and friends for encouraging me and keeping me spirited towards the thesis.

Last but not the least I am thankful to the Almighty.

INTRODUCTION

History of Insurance industry
In some sense we can say that insurance appeared simultaneously with appearance of human society. In earlier economies, we can see insurance in the form of people helping each other. For example, if a house is burnt, the members of the community help build a new one. Should the same thing happen to one’s neighbor, the other neighbors must come to help? Otherwise, neighbors will not receive help in the future.

Insurance in the modern sense, started as a methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants traveling treacherous river rapids would redistribute their cargo across many vessels to limit the loss due to any single vessel’s capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender’s guarantee to cancel the loan should the shipment be stolen.

Greek monarchs were the first to insure their people and made it official by registering the insuring process in governmental notary offices. They invented the concept of the ‘general average’. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were jettisoned during storm or sinking of the vessel in the sea.

The Greeks and Romans introduced the origins of health and life insurance c. 600 AD when they organized guilds called “benevolent societies” which cared for the families and paid funeral expenses of members upon death. Guilds in the middle Ages served a similar purpose. Before insurance was established in the late 17th century, “friendly societies” existed in England, in which people donated amounts of money to a general sum that could be used for emergencies.

Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Greeks rulers in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in post-Renaissance Europe, and specialized varieties developed. Insurance as we know it today can be traced to the Great Fire of London, which in 1666 A.D devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to insure buildings. In 1680, he established England’s first fire insurance company, “The Fire Office,” to insure brick and frame homes.
The first insurance company in the United States underwrote fire insurance and was formed in Charles Town (modern-day Charleston), South Carolina, in 1732.

INSURANCE SECTOR IN INDIA
The insurance sector in India has come a full circle from being an open competitive market to nationalisation and back to a liberalised market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries.
A brief history of the Insurance sector
The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance business in India are: • 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. • 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. • 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. • 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are: • 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. • 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. • 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. • 1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the general insurance business in India with effect from 1st January 1973. • 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

Insurance sector reforms
In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future direction.
The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at "creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…"
In 1994, the committee submitted the report and some of the key recommendations included:
1) Structure • Government stake in the insurance Companies to be brought down to 50%. • Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. • All the insurance companies should be given greater freedom to operate.
2) Competition • Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. • No Company should deal in both Life and General Insurance through a single entity. • Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. • Postal Life Insurance should be allowed to operate in the rural market. • Only One State Level Life Insurance Company should be allowed to operate in each state.
3) Regulatory Body • The Insurance Act should be changed. • An Insurance Regulatory body should be set up. • Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.

4) Investments • Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. • GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time).
5) Customer Service • LIC should pay interest on delays in payments beyond 30 days. • Insurance companies must be encouraged to set up unit linked pension plans. • Computerisation of operations and updating of technology to be carried out in the insurance industry The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition.
But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.
MAJOR POLICY CHANGES

Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public sector insurance companies/ corporations. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions: • Company is formed and registered under the Companies Act, 1956; • The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company; • The company 's sole purpose is to carry on life insurance business or general insurance business or reinsurance business. • The minimum paid up equity capital for life or general insurance business is Rs.100 crores. • The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores.
The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders ' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad.
INTRODUCTION TO ULIP
ULIPs are the insurance policies where the insurance cover is bundled with an investment benefit under a single contract. The customer gets insurance cover as well as investment based on marked performance. ULIPs amazingly resemble mutual funds in return of their structure and functioning; premium payments made are converted into units and a Net Asset Value(NAV) is declared for the same.
Before the opening up of insurance industry for private players, only two insurance companies were offering ULIPs in market. One was UTI and another was LIC Mutual Fund. But today almost all the insurers are offering ULIPs.
The advantage of unit-linked plans is that they are simple, clear, and easy to understand. Being transparent the policyholder gets the entire upside on the performance of his fund. Besides all the advantages they offer to the customers, unit-linked plans also lead to an efficient utilization of capital.

Expenses Charged in a ULIP

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.
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.
Fund Management Fees:
Fees levied for management of the fund and is deducted before arriving at the NAV.

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 Switching Charge:
Usually a limited number of fund switches are allowed each year without charge, with subsequent switches, subject to a charge.

Service Tax Deductions:
Service tax is deducted from the risk portion of the premium.

Advantages of ULIP
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2.8 FUNDS
Maximiser: If high growth is your priority, this is the plan for you. You can enjoy long-term capital appreciation from a portfolio that is invested primarily in equity and equity-related securities

Protector: - If on the other hand, your priority is steady returns, you can opt for the protector Plan. Plan, you can accumulate a steady income at a low risk across a medium to long-term period from a portfolio, which is primarily invested in fixed income securities.

Balancer:-If you prefer a balance of growth and steady returns, choose our balancer plan. This would ensure that your portfolio is invested in equity-linked securities, as well as in fixed income securities.

Preserver: The objective of this plan is not ensuring capital protection by investing in very low risk investments like the cash and call money markets. However, the returns generated may also be on the lower side due to the investment pattern. At inception, investments up to 20% can be allocated to this fund.

| FUND TYPE |ASSET MIX |POTENTIAL RISK /REWARD |
|Maxi miser |Equity& Related securities: Max 100% |High |
| |Debt, Money market & Cash: Max 25% | |
|Balancer |Debt. Money market & Cash: |Moderate |
| |Min 60% | |
| |Equity & Related securities: Max: 40% | |
|Protector |Debt Instruments, |Low |
| |Money market & Cash: Max 100%: | |
|Preserver |Debt Instruments: Max 50% |Capital preservation |
| |Money market & Cash: Min 50% | |

Insurance companies

IRDA has so far granted registration to 12 private life insurance companies and 9 general insurance companies. If the existing public sector insurance companies are included, there are currently 13 insurance companies in the life side and 13 companies operating in general insurance business. General Insurance Corporation has been approved as the "Indian reinsurer" for underwriting only reinsurance business. Particulars of the life insurance companies and general insurance companies including their web address is given below:

|LIFE INSURERS |Websites |
|Public Sector |
|Life Insurance Corporation of India |www.licindia.com |
|Private Sector |
|Allianz Bajaj Life Insurance Company Limited |www.allianzbajaj.co.in |
|Birla Sun-Life Insurance Company Limited |www.birlasunlife.com |
|HDFC Standard Life Insurance Co. Limited |www.hdfcinsurance.com |
|ICICI Prudential Life Insurance Co. Limited |www.iciciprulife.com |
|ING Vysya Life Insurance Company Limited |www.ingvysayalife.com |
|Max New York Life Insurance Co. Limited |www.maxnewyorklife.com |
|MetLife Insurance Company Limited |www.metlife.com |
|Om Kotak Mahindra Life Insurance Co. Ltd. |www.omkotakmahnidra.com |
|SBI Life Insurance Company Limited |www.sbilife.co.in |
|TATA AIG Life Insurance Company Limited |www.tata-aig.com |
|AMP Sanmar Assurance Company Limited |www.ampsanmar.com |
|Dabur CGU Life Insurance Co. Pvt. Limited |www.avivaindia.com |
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MARKET SHARE OF INSURANCE COMPANIES IN INDIA

Protection of the interest of policy holders

IRDA has the responsibility of protecting the interest of insurance policyholders. Towards achieving this objective, the Authority has taken the following steps: • IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for: policy proposal documents in easily understandable language; claims procedure in both life and non-life; setting up of grievance redressal machinery; speedy settlement of claims; and policyholders ' servicing. The Regulation also provides for payment of interest by insurers for the delay in settlement of claim. • The insurers are required to maintain solvency margins so that they are in a position to meet their obligations towards policyholders with regard to payment of claims. • It is obligatory on the part of the insurance companies to disclose clearly the benefits, terms and conditions under the policy. The advertisements issued by the insurers should not mislead the insuring public. • All insurers are required to set up proper grievance redress machinery in their head office and at their other offices. • The Authority takes up with the insurers any complaint received from the policyholders in connection with services provided by them under the insurance contract.

Company profile

COMPANY PROFILE
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India 's foremost financial services companies-and Prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 2100 branches (inclusive of 1,116 micro-offices), over 290,000 advisors; and 18 bancassurance partners. ICICI Prudential is the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India 's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands '. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India.

The ICICI Prudential edge

The ICICI Prudential edge comes from our commitment to our customers, in all that we do - be it product development, distribution, the sales process or servicing. Here 's a peek into what makes us leaders. 1. Our products have been developed after a clear and thorough understanding of customers ' needs. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee your child 's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire, or Health insurance that arms you with the funds you might need to recover from a dreaded disease. 2. Having the right products is the first step, but it 's equally important to ensure that our customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute our products . 3. Robust risk management and underwriting practices form the core of our business. With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claims process. 4. Entrusted with helping our customers meet their long-term goals, we adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term. 5. Last but definitely not the least, our 32,000 plus strong team is given the opportunity to learn and grow, every day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they can deliver on our promise to cover you, at every step in life.
ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000. The authorized capital of the company is Rs.2300 Million and the paid up capital is Rs. 1500 Million. The Company is a joint venture of ICICI (74%) and Prudential plc UK (26%).

The Company was granted Certificate of Registration for carrying out Life Insurance business, by the Insurance Regulatory and Development Authority on November 24, 2000. It commenced commercial operations on December 19, 2000, becoming one of the first few private sector players to enter the liberalized arena.

The Company is now operational in Mumbai, New Delhi, Pune, Chennai, Kolkata, Bangalore, Chandigarh, Ahmedabad, Hyderabad, Lucknow, Nasik, Jaipur, Cochin, Meerut, Mangalore and Ludhiana.

Till March 31,2002 the Company has issued 100,000 polices translating into a Premium Income of around Rs. 1,200 Million and a sum assured of over Rs.15,000 Million.

The Company recognizes that the driving force for gaining sustainable competitive advantage in this business is superior customer experience and investment behind the brand. The Company aims to achieve this by striving to provide world class service levels through constant innovation in products, distribution channels and technology based delivery. The Company has already taken significant steps to achieve this goal..

Vision and Mission
Their vision is to make ICICI Prudential Life Insurance Company the dominant new insurer in the life insurance industry. This they hope to achieve through their commitment to excellence, focus on service, speed and innovation, and leveraging our technological expertise.

The success of the organisation will be founded on its strong focus on values and clarity of purpose. These include: • Understanding the needs of customers and offering them superior products and service • Building long lasting relationships with their partners • Providing an enabling environment to foster growth and learning for their employees
And above all building transparency in all our dealings.
They believe that they can play a significant role in redefining and reshaping the sector. Given the quality of their parentage and the commitment of their team, they feel that there will be no limits to their growth.

PROMOTERS

ICICI Bank

ICICI Bank Limited (NYSE:IBN) is India 's largest private sector bank and the second largest bank in the country, with consolidated total assets of $121 billion as of September 30 , 2008. ICICI Bank’s subsidiaries include India’s leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI Bank’s presence currently spans 19 countries, including India. Prudential Plc
Established in London in 1848, Prudential plc, through its businesses in the UK, Europe, US, Asia and the Middle East, provides retail financial services products and services to more than 21 million customers, policyholder and unit holders and manages over £256 billion of funds worldwide (as of June 30, 2008). In Asia, Prudential is the leading Europe-based life insurer with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest asset management companies in terms of overall assets sourced in Asia ex-Japan, with £34.3 billion funds under management (as of June 30, 2008) and operations in ten markets including China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.

Distribution

ICICI Prudential Life has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with over 2100 branches (including 1,116 micro-offices) and an advisor base of over 290,000 (as on January 31, 2009). The company has 18 bancassurance partners having tie-ups with ICICI Bank, South Indian Bank, Jalgaon Peoples Co-op Bank, Idukki District Co-op Bank, Wainganga Krishna Gramin Bank, Aryawart Gramin Bank, Jharkhand Gramin Bank, Narmada Malwa Gramin Bank, Baitarani Gramya Bank, Ratnagiri District Central Co-op Bank, Seva Vikas Co-op Bank, Sangli Urban Co-Operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Co-Operative Bank, Renuka Nagrik Sahakari Bank, Amanath Co-Operative Bank, Arvind Sahakari Bank, Bhandara Urban Co Operative Bank. Fund Managers Of ICICI Pru Life

Puneet Nanda: Executive Vice President
Puneet is an engineer with a PGDM from IIM, Lucknow. He has 15 years of experience in the areas of treasury, trading and fund management. He has been with ICICI Prudential since the inception of the company and looks after the Corporate Center which includes Investment Management, Human Resources, Finance and Accounts, Compliance, Investor/analyst relationship, Business Intelligence and Corporate Strategy, Product Development, Corporate Communications and Sales Strategy. Prior to joining ICICI Prudential, he has worked in leading foreign and Indian financial institutions.

Manish Kumar: SVP & Head – Investments
Manish is an engineer with a PGDM from IIM Kolkata. He has the overall responsibility for managing the entire investment portfolio of the company. He has 16 years of experience in the area of equity research, trading and fund management. Prior to ICICI Prudential, Manish has been with a leading Indian asset management company.
Fund Management & Research Team • Lakshmikanth Reddy: SVP & Fund Manager - Equity Lakshmikanth is an engineer with a PGDM from IIM Ahmedabad. He has 12 years of experience in the area of equity analysis and fund management. Prior to joining ICICI Prudential, Lakshmikanth has worked with leading foreign financial institutions.

• Jitendra Arora: VP & Fund Manager – Fixed Income Jitendra is a commerce graduate and has a PGDM from IIM Bangalore. He has been with ICICI Prudential since 2001 in the areas of financial risk management, actuarial and fund management. • Arun Srinivasan: VP & Fund Manager - Fixed Income Arun has done Masters in Management Studies from Mumbai University. He has 12 years of experience in the areas of treasury and trading. Prior to ICICI Prudential, Arun worked with a leading Indian fund house.

• Shiladitya Dasgupta: AVP & Fund Manager - Equity Shiladitya is an engineer with post graduation from IIITM Gwalior. He has 9 years of experience as a research analyst. Prior to ICICI Prudential, Shiladitya worked both in a leading foreign financial institutions and a domestic broking house.

• Akalp Gupta: Senior Manager – Equity Dealing and Analysis Akalp is an engineer with a PGDM from IIM Kozhikode. He has 6 years of experience as an equity analyst. Prior to ICICI Prudential, he has worked with both Indian and foreign financial institutions. • Om Tewani: Manager - Equity Dealing & Analysis Om is a commerce graduate with a Masters in Management Studies from Mumbai University. He has 2 years of experience as an equity dealer. Prior to ICICI Prudential, he has worked with a leading Indian financial institution. • Rohan Soares: Senior Manager & Equity Analyst Rohan is a commerce graduate with a Master’s degree from Sydenham College, Mumbai. He has 7 years of work experience in the areas of equity research and sales with foreign financial institutions and domestic broking houses.

• Fatema Pacha: Manager & Equity Analyst Fatema is an engineer with PGDM from SP Jain Institute (Mumbai). She has 3 years of experience as an equity analyst. Prior to ICICI Prudential, she has worked with a leading domestic fund house.

• Sumanta Khan: Manager & Equity Analyst Sumanta is an engineer with PGDM from IIM Indore. Sumanta has 3 years of experience as an equity analyst. Prior to ICICI Prudential, he has worked with a leading foreign financial institution. • Aditya Ahluwalia: Management Associate & Equity Analyst Aditya is an engineer with an MBA from FMS, Delhi. He is also a Financial Risk Manager certified by Global Association of Risk Professionals. Aditya specializes in the field of equity research and analysis.

• Vidya Iyer: Manager - Investments Vidya is an engineer with a PGDM from XLRI Jamshedpur. She is also a Financial Risk Manager certified by Global Association of Risk Professionals. Prior to ICICI Prudential, she has worked in the treasury of a leading foreign bank.

Products

Insurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 4 riders, to create a customized solution for each policyholder. Savings & Wealth Creation Solutions Save 'n ' Protect is an ideal plan for those who want to accumulate funds on a regular basis while enjoying insurance protection. CashBak is a single policy that combines the triple benefit of protection, savings & periodic liquidity. LifeTime Gold is a unit-linked plan which offers potentially higher returns over the long term with flexible investment options to help you achieve your goals. It offers 8 fund options - Preserver, Protector, Return Guarantee Fund, Balancer, Flexi Balanced Multiplier, R.I.C.H and Flexi Growth. LifeStage RP is unit linked plan that provides you with an option of lifecycle-based portfolio strategy that continuously re-distributes your money across various asset classes based on the customer’s profile, helping him achieve his desired financial goals. LifeLink Super is a single premium unit linked insurance which offers attractive premium allocation along with the opportunity to enjoy potentially high returns over the long term, without compromising on the protection of your family. Premier Life Gold is a limited premium paying plan with the freedom to enjoy long-term wealth creation. It also provides flexibility of premium reduction from 2nd year onwards. InvestShield Life New is a unit linked plan that provides premium guarantee and allows the customer to enjoy the benfits of potentially higher returns while guaranteeing him that he will get back at least all the premiums paid by him, while providing protection to your family with a life insurance cover. InvestShield Cashbak is a unit linked plan that provides premium guarantee while maintaing a balance between return, safety & liquidity. Wealth Advantage is a unique whole life single premium unit linked plan that provides long term coverage up to the age of 70 years and provides you the option to systematically withdraw your money. LifeStage Assure a unit linked insurance plan that provides Guaranteed Maturity Addition of 100%- 450% of first year premium based on the term and number of premiums paid, with the additional advantage of a lifecycle based portfolio strategy that allocates the investor’s money across various asset classes based on his age and risk appetite. Protection Solutions Pure Protect is a flexible and affordable term product, with which you can ensure your life and provide total security for your family in case of an unfortunate event. LifeGuard is a protection plan, which offers life cover at low cost. It is available in 2 options –level term assurance with return of premium & single premium. HomeAssure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner.

Child Plans SmartKid New ULRP The policy is designed to provide money at key educational milestones in the child 's life. SmartKid plans are also available in traditional form. Retirement Solutions • ForeverLife s a traditional retirement product that offers guaranteed returns for the first 4 years. • LifeTime Super Pension is a regular premium unit linked pension plan that helps one accumulate over the long term and offers 5 annuity options (life annuity, life annuity with return of purchase price, joint life last survivor annuity with return of purchase price, life annuity guaranteed for 5,10 and 15 years & for life thereafter, joint life, last survivor annuity without return of purchase price) at the time of retirement. • LifeStage Pension is a regular premium unit linked pension plan that provides you with a unique lifecycle-based strategy that continuously re-distributes your money across various asset classes based on your age and risk profile. • LifeLink Super Pension is a single premium unit linked pension plan. • Immediate Annuity is a single premium annuity product that guarantees income for life at the time of retirement. It offers the benefit of 5 payout options. Health Solutions Health Assure Plus is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance, irrespective of the actual medical expenses. Health Assure Plus also offers the added advantage of an equivalent life insurance cover. Cancer Care is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions. Hospital Care is a fixed benefit plan covering various stages of treatment – hospitalization, ICU, procedures & recuperating allowance. It covers a range of medical conditions (900 surgeries) and has a long term guaranteed coverage up to 20 years. Crisis Cover is a 360-degree product that will provide long-term coverage against 35 critical illnesses, total and permanent disability, and death. Diabetes Care Active is a long term insurance policy created for individuals with Type II diabetes and pre-diabetes. It offers long term (up to 20 years) control over diabetes through a specially designed Wellness Programme including regular health checkups and a Diabetes Coach to facilitate diabetes management. It also provides you coverage against seven major critical illnesses. MediAssure is a health insurance policy that provides assured insurability till age 75 years, assured coverage for accepted pre-existing illnesses after 2 years and an assured price for 3 years. Health Saver provides comprehensive hospitalization cover and reimburses all other medical expenses by building a health fund. Group Insurance Solutions
ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. Group Gratuity Plan: ICICI Prudential Life 's group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner and also avail of tax benefits as applicable to approved gratuity funds. Group Superannuation Plan: ICICI Prudential Life offers a flexible market linked scheme that provides substantial benefits to both employers and employees. Both defined contribution (DC) and defined benefit (DB) schemes are offered to optimise returns for members of the trust and rationalise cost. Members have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. Group Immediate Annuities: ICICI Prudential Life realises the importance of prudent retirement planning. With this in mind, we have developed a suite of annuity products that not only give you an income for life but also provide you options to match your needs. In addition to the annuities offered to existing superannuation customers, we offer immediate annuities to superannuation funds not managed by us. Group Term Plan: ICICI Prudential Life 's flexible group term solution helps provide an affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.
Flexible Rider Options ICICI Prudential Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer. Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the rider sum assured under the policy. If an accident results in total and permanent disability, 10% of rider sum assured will be paid each year, from the end of the 1st year after the disability date for the remainder of the base policy term or 10 years, whichever is lesser. If the death occurs while travelling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit. Critical illness benefit: Critical Illness Benefit Rider provides protection against 9 critical illnesses to the policyholder when attached to the basic plan. Waiver of premium: On total and permanent disablement due to accident all future premiums under the base plan will be waived till the end of the term of the rider or death of assured life, if earlier. Income benefit rider: In case of death of the Life Assured during the term of the policy, 10% of the Sum Assured is paid annually to the nominee on each policy anniversary till the maturity of the rider.

OBJECTIVES

• To analyze returns given by ULIP funds for the financial year of 2006 to 2009.

PURPOSE OF STUDY

This project is to study the returns given by ULIP funds and how the ULIP funds functions according to market scenario. And how ULIP plans are benefiting investors to get higher returns on long term or short term basis. The study is basically done to analyze the ICICI Prudential Life Insurance Companies ULIP funds which are giving good returns.

Literature Review

Jay Sampat(2008) has said that ULIPS are insurance policy and market linked investments wherein certain proportion of the premium paid is invested in the market linked instruments likes equities and bonds (depending on the scheme) and the balance is used to provide for the expenses incurred on providing with an insurance cover. ULIPS are positioned as a long term wealth generation which also offers insurance benefits. Money should not be withdrawn from ULIPS at least for initial 3-5 years due to charges unless you are in emergency. Even if you invest in ULIPS the investor should not away from equities since they give good returns which can help you to achieve your long term objectives. Short term weakness can be used as an opportunity to enter into equities and equities linked investment products such as ULIPS.

B.Balaji Sathya Narayanan(2008) in this article it is said before endowment and money back policies were preferred for savings due to high interest rate and investors were not worried about risk return trade off. With the opening up of insurance to private players and softening of interest rate on financial instruments, investors started looking out for other attractive returns so due to this endowment and money back policies started falling down and capital market insurance plans (ULIP) started emerging.
ULIP started becoming popular due to flexibility and investment and insurance in single entity. In order to have a fair deal for investors IRDA says that there should be better understanding of product design, transparency in operations and assuring reasonable amount of sum assured as an insurance cover in ULIPS thus making it a long term protection cum saving instrument. In ULIPS there is Sum Assured, Miscellaneous Features(Lock in period & premium holiday), ULIP Expenses, Portfolio Investment, Withdrawal from ULIPS( Settlement options& Surrender the policy) Tax benefit and Riders which makes them attractive to the customers.

Abhilashita Rao(2008)has said that Mutual fund schemes ensure that an investor gets an unbiased opinion on the funds. However the use of a systematic performance evaluation technique helps the investors to take informed decisions so that they are able to achieve their investment objectives. It should however be kept in mind that the ratings issued by various agencies like CRISIL, Te Economic Times, Value Research Online, etc, are based on the past performance and the past performance may or may not be sustained in the future.
The ranking of the funds by Credit rating Agencies are based on the historical returns, Portfolio diversification, liquidity analysis, Asset Quality, Average Maturity, Downside Risk. Interpretation of the ranking is based on CPR1 means the fund has shown a very good performance and is among the top 10 %, CPR 2 means good performance and the fund is among the next 20 % , CPR3 means average performance next 40 %, CPR 4 means below Average performance next 20 % and CPR 5 means poorest performance in the category bottom 100%

Radha Badrinat(2008) said that a person with moderate knowledge of capital market or a person who does not have time to analyze the market and want to minimize his risk can go for alternate route of mutual fund. Mutual fund are financial intermediaries who collect funds from and invest on behalf of the public where in the lose and gain are accrued to the investor.
In general, a Contra Fund is considered more suitable for that investor who has already invested in diversified equity stocks and large cap stocks and also who are willing to take more risks in anticipation of a higher return. Theses Contra funds typically have longer gestation period than the normal funds and time factor should be considered before making the decision. However, as in any other option, Contra Fund has their own merits and demerits and offers some interesting propositions to look at.

Radha Badrinat who is a Senior Faculty, The Oxford College of Business Management, Bengaluru,( January 2008 )- Portfolio Organizer- Ban on PN-Stock Markets Reactions--“Contra Fund in India-A Quick Look”, Issue January 2008, pg 31
Y bala bharathi(2008) said that many people have fallen into fraudulent agents trap since they have poured their hard earned money in ULIPS just going by their agent’s advice instead of fully understanding the workings of ULIPS. They were totally unaware of the outgoes like very high agent commissions and other administrative expenses which are hampering the ULIP’s returns. The premium which he is paying in invested in debts or equity instruments which gives them units which presents the NVA.
During the first yr of the policy the premium allocation charges varies from 15-71% of the premium paid and only from the fourth yr it stabilizes at 4-5%.the very high commission structure in the initial yrs make ULIP an expensive product. So IRDA made an attempt to solve this by having transparency while explaining the policy to the customer, this can be ensured by signing the one page document saying that they have understood the policy and instead of charging heavy commission in the initial yrs, it should be spread out evenly over the period of the policy

Tamal Datta Chaudhari(2008) in this article it has been discussed that MF industry in India has to concentrate on to achieve growth and provide stability to the capital market have. It involves investor education, use of technology, various distributions models and development of new products. According to ICICI Prudential estimates, Rs.7000 bn of deposits, i.e.63% of total deposits, is in non-urban centers comprising 588 districts, more than 750 towns and 600000 villages. There is thus ample scope to divert these deposits to MF products. The intentions behind increased MF activity should be customer retention, customer growth and provision of value-added services.
The rate of growth of business opportunities in the urban financial sector is stagnating and thus, for increase in growth in income and profits, the vast rural sector provides ample scope. This should motive Mutual Funds to flock to the rural sector for income and profit generation.

Kartik Jhaveri (2007) in his article “Do you know that there is a term called 'minimum premium payable ' in any ULIP” said that there is a term called 'minimum premium payable ' in any ULIP (Unit Linked Insurance Plan) that you buy from a life insurance company? If you don 't know about this term, please read each word very carefully. If you have a ULIP or plan to buy one in the near future, reading this piece could change your life. Given that we are in the tax planning season and that many advisors would be calling on us constantly, it is more than critical that we precisely understand this special feature of a ULIP policy. It is most likely that your friendly life insurance agent/bank advisor will never tell you about this aspect of the policy.

He also said for these advisors, their sole objective in life is achievement of their targets - that is all that matters. The only important thing for them is to make fast bucks and cut out huge commission deals for themselves at the cost of naïve individuals.

In his example he said how advisors cheat individual. A person named Rajesh bought a ULIP policy from a leading life insurance provider. The premium he paid and will pay in years to come is astounding Rs 300,000 per annum. So how did the advisors rob him? Well, the economics works like this. When you buy a ULIP policy, there is a charge you pay each year. It is quite steep in the first year and gradually reduces in subsequent years. In Rajesh 's case, the charge in the first year was 18 per cent of his premium i.e. Rs. 54,000 was taken away as charges. Now, from the balance Rs 246,000, some money would be apportioned towards providing him the life insurance benefit and balance would get invested as per his chosen allocation of 100 per cent equity. This type of arrangement was completely in the interest of the advisors. If the advisor would have told to Mr. Rajesh that Rs 20,000 was the minimum premium payable and given that he had about Rs 300,000 to invest the balance Rs 280,000 could have been deployed into the policy as a top-up. On the basis of this arrangement, he would be charged 20 per cent on his annual premium of Rs 20,000 i.e. Rs 4,000 and on eper cent on his top-up of Rs 280,000 i.e. Rs 2800. The total charges in this case would have been Rs 6,800. Against this, he was charged Rs 54,000 because the entire amount was taken to be his premium instead of splitting the amount as premium of Rs 20,000 and top-up of Rs 280,000.

Amar Ranu(2009) in his article “ULIP charges axed: Investors to benefit” said that Insurance industry in India has not taken off to a desired level, as is seen in the western countries. This leaves a lot of scope for innovation and experimentation, especially in products. Unit linked insurance plan (ULIP) is one such example. It is always marketed as a high-return product, but it does not come without its disadvantage - its hefty charges. But investors see a ray of hope in the ruling of the Insurance Regulatory and Development Authority (IRDA) which limit the initial charges. The IRDA ruling says that life insurance companies can charge up to 3 per cent on gross yield of insurance policies up to 10 years and 2.25 per cent on policies with a term over 10 years, effective from Oct 01. Insurance companies are having tough time managing their expenses as the overall premium growth rate has declined in the recent quarters. To bring down the cost, the companies have to reduce the premium allocation charges as also premium administration charges. The fund management charges will have to be kept at 1.25 per cent as directed by IRDA against the market practice of 1.5-2.50 per cent. He also said that in ULIP investments, though the charges are initially high, they get spread over a longer period. But a mutual fund investment for a short tenure, say 5 years, will give a higher amount on maturity when compared with ULIP investments for the same tenure as initial charges (3%-5%) are high in ULIP. And its concluded saying IRDA acted well in time by capping the charges on ULIP and weaning away business from mutual fund players who, unhappy with the SEBI ruling of scrapping the entry load on mutual fund investments, are scrambling to keep their business running. Though finance experts say that insurance and investment objectives should not be mixed, if selected well a ULIP can help investors achieve both these goals, especially building wealth.
Amit Gupta(2007)in his article said that Unit linked plans (ULIP’s) are different from traditional plans purely because, they are much more transparent, various charges are shared with the customer before the sale of the product, so as to enable the customer to make an informed decision. Basically a ULIP is an insurance plan and like for any insurance plan whether a traditional or ULIP the customer should look for adequate insurance cover based on their age and risk profile. Customers should have a clear understanding on how unit linked plans work and should have sufficient information on the fund options available for the plan chosen. He/she should be able to switch fund options depending on the market conditions prevailing. Also customers should be cautious of the downside risk in ULIPs and therefore should choose unit linked plans with a long term perspective in mind.
Kirang Ghandi (2008)in his article “Why ULIPs are better than Fixed Deposits” said that A good investment strategy requires choosing the right mix of safe and risky investments.
Among safe investments, fixed deposits (FD) are the most popular. But think before investing in FD because there are some other investment avenues that provide you much better returns such as ULIPs and Mutual Funds. With FDs you deposit a lump sum of money for a fixed period ranging from a few weeks to a few years and earn a pre-determined rate of interest. In ULIPs you invest money regularly and after a period of time you will receive the lump sum amount. The return on ULIPs will be normally greater than the return on FD. ULIPs not only provided life cover, but also brought in a lot of transparency in the way the policyholders ' money is invested. The returns on ULIPs are normally higher than the mutual funds. ULIPs do not face redemption pressures as the insurance money is for longer term and hence offers room for fund managers to design better, disciplined investment strategies.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research Methodology deals with, the procedure adopted to carry out the study.
According to green and Tull:
“A research design is the specification of methods and procedures acquiring the information needed It is the overall operational pattern or framework of the project that stipulates which information is to be collected from which sources by what procedures’’.

This study is based on the secondary data collected from company, magazines, journals , internet and also from ICICI Prudential Life Insurance Companies brochures and Web site .

STATASTICAL TOOLS

STATASTICAL TOOLS

• MEAN: The simple mathematical average of a set of two or more numbers. The mean for a given set of numbers can be computed in more than one way, including the arithmetic mean method, which uses the sum of the numbers in the series, and the geometric mean method. However, all of the primary methods for computing a simple average of a normal number series produce the same approximate result most of the time. [pic]

• VARIANCE: Variance measures the variability (volatility) from an average. Volatility is a measure of risk, so this statistic can help determine the risk an investor might take on when purchasing a specific security.
[pic]

• STANDERD DEVIATION: Is a statistical measurement that sheds light on historical volatility. For example, a volatile stock will have a high standard deviation while the deviation of a stable blue chip stock will be lower. A large dispersion tells us how much the return on the fund is deviating from the expected normal returns. SD ([pic] ) =[pic]

ANALYSIS

ANALYSIS

I. BALANCER FUND

|Date |NAV(A) |% Change |A-Ā |(A-Ā)² |
|Apr-06 |22.087 | |-2.681 |7.188 |
|May-06 |21.915 |-0.779 |-2.853 |8.140 |
|Jun-06 |20.614 |-5.937 |-4.154 |17.256 |
|Jul-06 |21.002 |1.882 |-3.766 |14.183 |
|Aug-06 |21.700 |3.323 |-3.068 |9.413 |
|Sep-06 |22.324 |2.876 |-2.444 |5.973 |
|Oct-06 |22.777 |2.029 |-1.991 |3.964 |
|Nov-06 |23.337 |2.459 |-1.431 |2.048 |
|Dec-06 |23.446 |0.467 |-1.322 |1.748 |
|Jan-07 |23.625 |0.763 |-1.143 |1.306 |
|Feb-07 |23.731 |0.449 |-1.037 |1.075 |
|Mar-07 |22.941 |-3.329 |-1.827 |3.338 |
|Apr-07 |23.374 |1.887 |-1.394 |1.943 |
|May-07 |24.053 |2.905 |-0.715 |0.511 |
|Jun-07 |24.411 |1.488 |-0.357 |0.127 |
|Jul-07 |25.483 |4.391 |0.715 |0.511 |
|Aug-07 |25.308 |-0.687 |0.540 |0.292 |
|Sep-07 |26.231 |3.647 |1.463 |2.140 |
|Oct-07 |27.639 |5.368 |2.871 |8.243 |
|Nov-07 |28.389 |2.714 |3.621 |13.112 |
|Dec-07 |28.872 |1.701 |4.104 |16.843 |
|Jan-08 |28.798 |-0.256 |4.030 |16.241 |
|Feb-08 |28.066 |-2.542 |3.298 |10.877 |
|Mar-08 |26.976 |-3.884 |2.208 |4.875 |
|Apr-08 |27.144 |0.623 |2.376 |5.645 |
|May-08 |27.602 |1.687 |2.834 |8.032 |
|Jun-08 |26.421 |-4.279 |1.653 |2.732 |
|Jul-08 |25.603 |-3.096 |0.835 |0.697 |
|Aug-08 |26.286 |2.668 |1.518 |2.304 |
|Sep-08 |26.147 |-0.529 |1.379 |1.902 |
|Oct-08 |24.522 |-6.215 |-0.246 |0.061 |
|Nov-08 |23.718 |-3.279 |-1.050 |1.103 |
|Dec-08 |24.544 |3.483 |-0.224 |0.050 |
|Jan-09 |24.555 |0.045 |-0.213 |0.045 |
|Feb-09 |24.031 |-2.134 |-0.737 |0.543 |
|Mar-09 |23.988 |-0.179 |-0.780 |0.608 |
| | | | |175.069 |

|Mean |24.768 |
|Variance |5.002 |
|Standard Deviation |2.237 |

% Change=(today’s closing-previous days closing) * 100 Previous days closing = (21.915-22.087) * 100 22.087 = -0.779

In the above table analysis is being done using the risk and returns analysis. In the table I have taken the data for the financial years 2006 to 2009.
I analyzed that mean is 24.768, Variance which is total fluctuation as per is 5.002 and standard deviation which is average fluctuation as per is 2.237.

II. MAXIMIZER FUND

|Date |NAV(A) |% Change |A-Ā |(A-Ā)² |
|Apr-06 |22.58 | |-3.125 |9.766 |
|May-06 |21.986 |-2.631 |-3.719 |13.831 |
|Jun-06 |18.656 |-15.146 |-7.049 |49.688 |
|Jul-06 |19.585 |4.980 |-6.120 |37.454 |
|Aug-06 |20.961 |7.026 |-4.744 |22.506 |
|Sep-06 |22.37 |6.722 |-3.335 |11.122 |
|Oct-06 |23.352 |4.390 |-2.353 |5.537 |
|Nov-06 |24.5 |4.916 |-1.205 |1.452 |
|Dec-06 |24.637 |0.559 |-1.068 |1.141 |
|Jan-07 |25.156 |2.105 |-0.550 |0.302 |
|Feb-07 |25.384 |0.909 |-0.321 |0.103 |
|Mar-07 |23.144 |-8.824 |-2.561 |6.557 |
|Apr-07 |24.184 |4.493 |-1.521 |2.313 |
|May-07 |25.398 |5.017 |-0.307 |0.094 |
|Jun-07 |26.044 |2.544 |0.339 |0.115 |
|Jul-07 |28.278 |8.580 |2.573 |6.621 |
|Aug-07 |27.596 |-2.411 |1.891 |3.577 |
|Sep-07 |29.800 |7.986 |4.095 |16.769 |
|Oct-07 |33.654 |12.932 |7.949 |63.181 |
|Nov-07 |35.518 |5.540 |9.813 |96.297 |
|Dec-07 |36.569 |2.959 |10.864 |118.025 |
|Jan-08 |35.310 |-3.441 |9.605 |92.264 |
|Feb-08 |32.722 |-7.329 |7.017 |49.244 |
|Mar-08 |29.652 |-9.382 |3.947 |15.581 |
|Apr-08 |30.203 |1.858 |4.498 |20.233 |
|May-08 |31.321 |3.701 |5.616 |31.539 |
|Jun-08 |28.111 |-10.247 |2.406 |5.791 |
|Jul-08 |25.930 |-7.761 |0.225 |0.050 |
|Aug-08 |27.734 |6.960 |2.029 |4.118 |
|Sep-08 |27.037 |-2.515 |1.332 |1.773 |
|Oct-08 |22.346 |-17.349 |-3.359 |11.282 |
|Nov-08 |19.845 |-11.193 |-5.860 |34.340 |
|Dec-08 |19.640 |-1.033 |-6.065 |36.784 |
|Jan-09 |19.104 |-2.732 |-6.602 |43.580 |
|Feb-09 |18.612 |-2.575 |-7.093 |50.317 |
|Mar-09 |18.459 |-0.822 |-7.246 |52.512 |
| | | | |915.858 |

|Mean |25.705 |
|Variance |26.167 |
|Standard deviation |5.115 |

% Change=(today’s closing-previous days closing) * 100 Previous days closing = (21.986-22.58) * 100 22.58 = -2.631

In the above table analysis is being done using the risk and returns analysis. In the table I have taken the data for the financial years 2006 to 2009.
I analyzed that mean is 25.705, Variance which is total fluctuation as per is 26.167 and standard deviation which is average fluctuation as per is 5.115.

III. PROTECTOR FUND

|Date |NAV(A) |% Change |A-Ā |(A-Ā)² |
|Apr-06 |10.520 | |-1.270 |1.614 |
|May-06 |10.581 |0.579 |-1.209 |1.463 |
|Jun-06 |10.617 |0.341 |-1.173 |1.376 |
|Jul-06 |10.654 |0.349 |-1.136 |1.291 |
|Aug-06 |10.729 |0.705 |-1.061 |1.126 |
|Sep-06 |10.813 |0.787 |-0.977 |0.954 |
|Oct-06 |10.885 |0.662 |-0.905 |0.819 |
|Nov-06 |10.967 |0.752 |-0.823 |0.678 |
|Dec-06 |11.015 |0.443 |-0.775 |0.600 |
|Jan-07 |11.034 |0.166 |-0.756 |0.572 |
|Feb-07 |11.065 |0.281 |-0.725 |0.526 |
|Mar-07 |11.095 |0.270 |-0.695 |0.484 |
|Apr-07 |11.177 |0.742 |-0.613 |0.376 |
|May-07 |11.262 |0.762 |-0.528 |0.279 |
|Jun-07 |11.358 |0.852 |-0.432 |0.187 |
|Jul-07 |11.547 |1.661 |-0.243 |0.059 |
|Aug-07 |11.607 |0.523 |-0.183 |0.034 |
|Sep-07 |11.682 |0.648 |-0.108 |0.012 |
|Oct-07 |11.811 |1.101 |0.021 |0.000 |
|Nov-07 |11.899 |0.750 |0.109 |0.012 |
|Dec-07 |12.010 |0.931 |0.220 |0.048 |
|Jan-08 |12.209 |1.654 |0.419 |0.175 |
|Feb-08 |12.251 |0.343 |0.461 |0.212 |
|Mar-08 |12.233 |-0.144 |0.443 |0.196 |
|Apr-08 |12.531 |2.438 |0.741 |0.549 |
|May-08 |12.342 |-1.512 |0.552 |0.304 |
|Jun-08 |12.322 |-0.164 |0.532 |0.283 |
|Jul-08 |12.292 |-0.237 |0.502 |0.252 |
|Aug-08 |12.359 |0.541 |0.569 |0.323 |
|Sep-08 |12.451 |0.749 |0.661 |0.437 |
|Oct-08 |12.508 |0.453 |0.718 |0.515 |
|Nov-08 |12.652 |1.152 |0.862 |0.743 |
|Dec-08 |13.359 |5.593 |1.569 |2.463 |
|Jan-09 |13.645 |2.135 |1.855 |3.439 |
|Feb-09 |13.450 |-1.424 |1.660 |2.757 |
|Mar-09 |13.503 |0.393 |1.713 |2.935 |
| | | | |28.093 |

|Mean |11.790 |
|Variance |0.8027 |
| | |
| | |
| | |
|Standard deviation |0.8959 |

% Change=(today’s closing-previous days closing) * 100 Previous days closing = (10.520-10.581) * 100 10.581 = 0.579

In to the above table analysis is being done using the risk and returns analysis. In the table I have taken the data for the financial years 2006 to 2009.
I analyzed that mean is 11.790, Variance which is total fluctuation as per is 0.8027 and standard deviation which is average fluctuation as per is 0.8959.

IV. PRESERVER FUND

|Date |NAV(A) |% Change |A-Ā |(A-Ā)² |
|Apr-06 |11.001 | |-1.394 |1.944 |
|May-06 |11.063 |0.567 |-1.332 |1.774 |
|Jun-06 |11.123 |0.542 |-1.272 |1.618 |
|Jul-06 |11.188 |0.587 |-1.207 |1.456 |
|Aug-06 |11.255 |0.598 |-1.140 |1.299 |
|Sep-06 |11.320 |0.575 |-1.075 |1.155 |
|Oct-06 |11.382 |0.549 |-1.013 |1.026 |
|Nov-06 |11.449 |0.584 |-0.946 |0.896 |
|Dec-06 |11.513 |0.562 |-0.882 |0.778 |
|Jan-07 |11.582 |0.599 |-0.813 |0.661 |
|Feb-07 |11.654 |0.618 |-0.741 |0.550 |
|Mar-07 |11.727 |0.632 |-0.668 |0.446 |
|Apr-07 |11.812 |0.723 |-0.583 |0.340 |
|May-07 |11.898 |0.728 |-0.497 |0.247 |
|Jun-07 |11.988 |0.756 |-0.407 |0.166 |
|Jul-07 |12.103 |0.958 |-0.292 |0.085 |
|Aug-07 |12.206 |0.858 |-0.189 |0.036 |
|Sep-07 |12.295 |0.725 |-0.100 |0.010 |
|Oct-07 |12.384 |0.723 |-0.011 |0.000 |
|Nov-07 |12.486 |0.827 |0.091 |0.008 |
|Dec-07 |12.584 |0.785 |0.189 |0.036 |
|Jan-08 |12.674 |0.712 |0.279 |0.078 |
|Feb-08 |12.740 |0.521 |0.345 |0.119 |
|Mar-08 |12.816 |0.599 |0.421 |0.177 |
|Apr-08 |12.909 |0.722 |0.514 |0.264 |
|May-08 |13.001 |0.713 |0.606 |0.367 |
|Jun-08 |13.088 |0.673 |0.693 |0.480 |
|Jul-08 |13.183 |0.726 |0.788 |0.621 |
|Aug-08 |13.286 |0.780 |0.891 |0.794 |
|Sep-08 |13.394 |0.811 |0.999 |0.997 |
|Oct-08 |13.506 |0.840 |1.111 |1.235 |
|Nov-08 |13.636 |0.964 |1.241 |1.541 |
|Dec-08 |13.794 |1.154 |1.399 |1.956 |
|Jan-09 |13.956 |1.179 |1.561 |2.438 |
|Feb-09 |14.065 |0.781 |1.670 |2.790 |
|Mar-09 |14.171 |0.754 |1.776 |3.156 |
| | | | |31.543 |

|Mean |12.395 |
|Variance |0.901 |
|Standard deviation |0.949 |

% Change=(today’s closing-previous days closing) * 100 Previous days closing = (11.001-11.063) * 100 11.063 = 0.567
In the above table analysis is being done using the risk and returns analysis. In the table I have taken the data for the financial years 2006 to 2009.
I analyzed that mean is 12.395, Variance which is total fluctuation as per is 0.901 and standard deviation which is average fluctuation as per is 0.949.
COMPARSION OF FOUR FUNDS
| |MEAN |VARIENCE |STANDARD DEVIATION |
|Balancer |24.768 |5.002 |2.237 |
|Maximiser |25.705 |26.167 |5.115 |
|Preserver |11.790 |0.8027 |0.8959 |
|Protector |12.395 |0.901 |0.949 |

In the above table the comparission is being done with 4 funds which are Balancer, Maximiser, Protector and Preserver for the period of financial year 2006 to 2009.
In above table of return analysis, statistical tool used are mean, variance and standard deviation. And we can see that returns of the 4 funds which are Balancer, Maximiser, Protector and Preserver of which maximiser is doing better then other and returns given is 25.705 and the standard deviation which is average fluctuation is more with thw maximiser fund.

CONCLUSION AND
RECOMENDATION

CONCLUSION
In India, insurance is generally considered as a tax-saving device instead of its other implied long-term financial benefits. Indian people are prone to investing in properties and gold followed by banks deposits. They selectively invest in shares also but the percentage is very small. Even to this day, Life insurance market has become more vibrant. Smashing all doubts over the decision to liberalize the industry, the overwhelming first year performance of the Indian insurance sector is test case of a massive success story of private players entering into the erstwhile state monopoly.
The funds which I have taken is for the financial year of 2006 to 2009.

Maximiser fund has given the maximum returns as it is fully a equity fund which invest the full amount in the equity market and its totally dependent on the market and had the maximum risk. In maximize fund money invested can become double or it may go in minus figure.

Balancer fund is half equity and half debt fund the invested amount half would go in equity and half in debt market. The advantage of this fund is that if the equity market goes down then the other half is in the debt market so that the investor does not loose his whole money at least investor will get slightly more money then he/she has invested.

Preserver and Protector funds both are debt funds in which full money is invested in the debt market like for eg. In government securities, bonds and so on. In which the investor is getting granted sought of returns but comparing to other funds it is very less.

Maximizer is the fund wherein the investment is only into equity. So it depends on the investor which fund they want to take. If the investor is risk taker he can go for Maximizer fund where he can get high returns and if he is not a risk taker then he can go for mixed fund where there is more of fixed and secure returns.

RECOMMENDATION / FUTHER SCOPE
The study is limited only to the returns of ULIP funds given by ICICI Prudential Life Insurance Company. However it can be always further compared with other companies ULIP funds so that an investor can compare the ULIP plans provide by other companies and decide upon which company will give higher returns

REFERENCES

REFERENCES
Brochures:
ICICI Prudential Life Insurance Company Ltd.
Websites:
www.Welipedia.com/insurancehistory www.iciciprulife.com www.irdaindia.com www.kgandhi.anindia.com www.scribd.com
www.google.com

References: • 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. • 1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the general insurance business in India with effect from 1st January 1973. MAJOR POLICY CHANGES Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act)