A PROJECT STUDY REPORT ON

Training undertaken at

titled

FINANCIAL ANALYSIS & PORTFOLIO MANAGEMENT

Submitted in partial fulfillment for the Award of degree of

MASTER OF BUSINESS ADMINISTRATION

(2010-12)
Submitted by: Narendra Jangir Submitted To: Ms. Kaneenika Jain

MBA III Sem.

(Assistant Professor)

SUBODH INSTITUTE OF MANAGEMENT & CAREER STUDIES JAIPUR

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DECLARATION
I Narendra Jangir Student of MBA Part II of SUBODH INSTITUTE OF

MANAGEMENT AND CAREER STUDIES, JAIPUR, hereby declare that the Summer Training Report entitled Financial Analysis & Portfolio Management is an original work and the same has not been submitted to any other Institute for the award of any other degree and the suggestions as approved by the faculty were duly incorporated. I have not copied it from anywhere and have acknowledged the source of any material used from secondary sources in the bibliography.

Narendra Jangir MBA Part II,SIMCS, Jaipur

PREFACE
Theories are being developed, designed and stated on the groundwork of their practical implementation and usage. Work experience seems to be the most effective and indispensable factor of making an individual an adept. This is because one cannot do without being exposed to varying circumstances and possible consequences. Training not only develops individual skills and abilities but also provides proficiency in work performance. This report served as a means to share my personal experiences while working on this project, which provided me the platform where I was face to face with practical aspects of theoretical knowledge gained so far. This training project report has been prepared during the due course of final semester of MBA within an organization. To work on a Project Study was challenging, gainful and interesting and it gave real insight of corporate world. I sincerely believe that there is no better place to learn the practical side of management studies than the industry itself.

ACKNOWLEDGEMENT
I extend my extreme gratitude and sincere thanks to MAX NEWYORK LIFE multinational company for offering me an opportunity to do a project in their esteemed organization. I record my heartfelt thanks to my project guide Mr. PUSHP SAURABH for his expert guidance and support all through the course of the project. Discussions on subject matter, constant feedback and needed references have enriched me to make the project work a pleasurable experience. I am also deeply indebted to all the member of Sales team, for their support, active interest and timely help extended in carrying out the project. My Faculty Guide Ms. Kaneenika Jain (Assistant Professor) Subodh Institute of Management &Career Studies, Jaipur has also been a constant source of support whether it is for facing any complication or for simplifies sharing the joy out of an achievement. Finally, I would like to thank Director Mr. Raju Agrawal, faculty Members, parents, friends who provided helping hand and instilled confidences in me to complete the project.

EXECUTIVE SUMMARY
The operation of business enterprise is becoming more and more complicated day by day so, it has become more essential for the management students to have a thorough understanding of the corporate world through projects. Projects convert theory to Practice. The project helped me to understand the market ways and Functionalities of the market and also brought about an overall improvement in my managerial skills. The initial part of my project includes Market Survey for finding out Investors satisfaction. The second part includes PORTFOLIO MANAGEMENT As well As for New Investors. Every observation made in this study is based on response of the interviews, various primary and secondary data and their analysis, various findings of the project.

Loyalty program is a very helpful tool of marketing to reinforce brand value among retailer as well as consumers also. This program was designed to make Investors faithful with an organization by giving them something (e.g. monetary rewards, Exciting prizes etc.) which could make them feel happy and can be helpful to a company to increase sales or revenue. The incentive that is offered in a loyalty program is important to whether the program succeeds or fails at building brand loyalty. The data reported suggest that incentives that have overlap with brand associations, which can prompt rehearsal that increases the accessibility of favorable brand associations.

CONTENTS OF TABLE

Sr. No. 1. 2. 3.

CONTENTS Introduction of the Insurance Industry Introduction to the Organization Research Methodology 3.1 Title of the Study 3.2 Duration of the Project 3.3 Objective of Study 3.4 Type of Research 3.5 Sample Size 3.6 Scope of Study 3.7 Limitation of Study

PAGE NO. 7-15 16-54 55 56 56 56 56 57 58 58 59-62 63-69 70-72 73-75 76-77 78-80 81

4. 5. 6. 7. 8.

Findings & Facts Data Analysis & Interpretation SWOT Conclusion Recommendation and Suggestions Annexure Bibliography

CHAPTER 1

INTRODUCTION TO THE INSURANCE INDUSTRY

INTRODUCTION TO THE INSURANCE INDUSTRY

Indian Insurance Industry: Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. The risk, which can be insured against include fire, the peril of sea, death, incident, & burglary. Any risk contingent upon these may be insured against at a premium Commensurate with the risk involved. Insurance is actually a contract between 2 parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party happening of a certain event. Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. With the help of Insurance, large numbers of people exposed to a similar risk make contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good.

MAJOR PLAYERS IN INSURANCE INDUSTRY: Birla Sun Life Insurance Company In India Bajaj Allianz Insurance Company In India Om Kotak Mahindra Life Insurance Company In India Royal Sundaram Alliance Insurance Co. Ltd Ing Vysya Life Insurance Co. Ltd Max Life Insurance Co. Ltd HDFC Standard Life Insurance Met life Insurance Sahara India Life Insurance Cholamandalam MS General Insurance Employee State Insurance Corporation Export Credit Guarantee Corporation Of India Ltd ICICI Lombard Agriculture Insurance Company F India Ltd Peerless Smart Financial Solutions

INDIAN INSURANCE INDUSTRY: Insurers Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers: Life Insurers:

Life Insurance Corporation of India (LIC)

General Insurers:

General Insurance Corporation of India (GIC) (with effect from Dec'2000, a National Reinsurer)

GIC had four subsidiary companies, namely ( with effect from Dec'2000, these subsidaries have been de-linked from the parent company and made as independent insurance companies. 1. The Oriental Insurance Company Limited 2. The New India Assurance Company Limited, 3. National Insurance Company Limited 4. United India Insurance Company Limited.

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INSURANCE BUSINEES: Insurance business is divided into four classes : 1) Life Insurance 2) Fire Insurance 3) Marine Insurance and 4) Miscellaneous Insurance. Life Insurers transact life insurance business; General Insurers transact the rest. No composites are permitted as per law. LEGISLATION (as on 1.4.2000): Insurance is a federal subject in India. The primary legislation that deals with insurance business in India is: Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999. INSURANCE PRODUCTS (as on 1.4.2000) (for latest information get in touch with the current insurers website information of insurers is provided at the web page for insurers): Life Insurance: Popular Products: Endowment Assurance (Participating) and Money Back

(Participating). More than 80% of the life insurance business is from these products.

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General Insurance: Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is compulsory. Tariff Advisory Committee (TAC) lays down tariff rates for some of the general insurance products (please visit website of GIC for details) 2001 New products have been launched by life insurers. These include linked-products. For details, please visit the websites of life insurers. INFORMATION About the insurance industry, the following documents may be helpful: Malhotra Committee Report (The Report of the Committee on Reforms in the Insurance Sector); IRDA's First Annual Report - 2001 CUSTOMER PROTECTION: Insurance Industry has Ombudsmen in 12 cities. Each Ombudsman is empowered to redress customer grievances in respect of insurance contracts on personal lines where the insured amount is less than Rs. 20 lakhs, in accordance with the Ombudsman Scheme. Addresses can be obtained from the offices of LIC and other insurers.

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Functions Of Insurance
The functions of Insurance can be bifurcated into two parts:

1. Primary Functions 2. Secondary Functions 3. Other Functions The primary functions of insurance include the following:

Provide Protection - The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with others. Collective bearing of risk - Insurance is a device to share the financial loss of few among many others. Insurance is a mean by which few losses are shared among larger number of people. All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid. Assessment of risk - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also Provide Certainty - Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device whereby the uncertain risks may be made more certain.

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The secondary functions of insurance include the following: Prevention of Losses - Insurance cautions individuals and businessmen to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Prevention of losses cause lesser payment to the assured by the insurer and this will encourage for more savings by way of premium. Reduced rate of premiums stimulate for more business and better protection to the insured. Small capital to cover larger risks - Insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty. Contributes towards the development of larger industries - Insurance provides development opportunity to those larger industries having more risks in their setting up. Even the financial institutions may be prepared to give credit to sick industrial units which have insured their assets including plant and machinery. The other functions of insurance include the following: Means of savings and investment - Insurance serves as savings and investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured's For the purpose of availing income-tax exemptions also, people invest in insurance. Source of earning foreign exchange - Insurance is an international business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways. Risk Free trade - Insurance promotes exports insurance, which makes the foreign trade risk free with the help of different types of policies under marine insurance cover. 14

History of Insurance Sector

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost 190 years. 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 nationalized. 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.

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CHAPTER 2

INTRODUCTION TO THE ORGANIZATION

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INTRODUCTION TO THE ORGANIZATION

Introduction to Max New York Life:
Max New York Life is a joint venture between Max India Ltd., one of Indias leading multibusiness corporate and New York life, a Fortune 100 company. Max New York Life Insurance, incorporated in 2000, is one of Indias leading private life insurance companies. The company offers both individual and group life insurance solutions. It has established a wide distribution network across India. Through its wide network of highly competent life insurance agent advisors and flexible product solutions, Max New York life Insurance is creating a partnership for life with its customers in India. The details of the joint venture are at an advanced state of finalization and will involve equity participation from both partners. As specified by the Insurance Regulatory Authority bill of India, 1999, the Indian partner, Max India, will have 74% and New York Life International will subscribe to 26% of the equity. Turnover of Max India Max India is one of India's fastest growing companies with diversified interests in bulk Pharmaceuticals, Specialty Products, Electronics and Telecom Services. The Max India Group registered a turnover of Rs. Crores 119.4 million for 1998-99. It has nationwide presence and employs over 1600 people. Max has recently entered into a strategic alliance with Harvard Medical International, USA and announced its plans to enter the health care industry through the setting up of health care delivery business, to begin with in New Delhi.

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Vision Max New York Life Insurance Company has a vision of being the Most Admired Life Insurance Company of India. Our constant endeavor is to provide high quality products and services to our Customers. To serve our Customers effectively and to their satisfaction, we are steadily on a journey of Quality and Business Excellence. Amongst the many initiatives that we are taking for our Customers, present and future, we are constantly working towards making our policies and procedures simpler and Customer friendly. Career in Insurance The insurance sector in India is projected to grow exponentially in the coming years. Max New York Life will provide you with the required platform which will enable you to take full leverage of the opportunities thrown up by this sector. The Insurance Industry is at a critical stage in India. Over the next two decades, India is likely to have high growth in the Insurance sector. With the entry of private Indian as well as foreign companies, along with existing players, the insurance sector has added variety and quality to the present insurance services. Another very positive impact is creation of new employment opportunities. As the population ages and wealth grows, the demand for insurance professionals will increase dramatically. An Insurance professional helps clients understand their insurance needs, explain different options to them and help them purchase appropriate insurance policies. MNYL offers exciting career opportunities which would open up entirely new avenues for growth in an individual's career. Not only will it speed up your professional success, it would also help in taking your social life to a new level and will throw up opportunities which come by rarely in everyday life. 18

Insurance as an industry provides ample career options in various fields. With respect to Max New York Life we have specific career options at various levels in varied functions of both sales & non sales. The distribution channel accounts for the major chunk of opportunities varying from an Executive to a Regional Manager level depending on the experience of the candidate. Similarly, non-sales or support functions like HR, Finance, Facilities, IT, etc. also have a variety of options ranging from Executive to Vice President level. Feature of Insurance Protection Children Investment Retirement Health Savings

Joining Guidelines Eligibility Criteria: Age Group 18 Yrs and above Minimum Qualification 12th Pass Who can become an Agent Advisor? Anyone from housewives to entrepreneurs, teachers to part-time workers, who is enterprising, well-networked, flexible, and outgoing can become an Agent Advisor.

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Competencies for success Entrepreneurship Selling and influencing Perseverance Relationship Building / Customer Service Planning and Organizing Communication Skill

Culture at Max New York Life Insurance Some of the most prominent aspects of our culture are as stated below: The customer comes first Do it right the first time Bias for result oriented action Financial strength and discipline Clarity of purpose International quality standards Inclusive meritocracy Learning opportunities Fun at work Commitment to published value system

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MAX NEW YORK LIFE INSURANCE: What are unit linked insurance products? A policy which provides for life insurance where the policy value at any time varies according to the values of the underlying assets at the time. Unit linked insurance plans (ULIP) is life insurance solutions that provides the client with the benefits of protection and flexibility in investment. The investment is denoted as unite value and is represented by the value that it has attained called as Net asset value (NAV). An ULIP structure looks like as follows

Contribution

Fewer charges

Investment represented as units

Life cover

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FEATURES OF UNIT-LINKED PLAN ULIP distinguishes itself through the multiple that it provides to the customers. The plan is one stop solution providing 1. Life protection 2. Investment and savings 3. Flexibility (a) Adjustable life cover (b) Investment options 4. Transparency 5. Options to take additional cover against (a) Death due to accident (b) Disability (c) Critical illness (d) Surgeries 6. Liquidity 7. Tax planning

INVESTMENT OPTIONS ULIP provides the client with the options of investing as per personal risk profile and get returns accordingly. There are options of funds where in the client can put money in 1. Equity market 2. Debt market 3. Balanced funds with a mix of the above two 4. Short-term debt market 22

LIFE PROTECTION

Every person needs life cover for the protection of the economic value of human life asset. Honestly none of us can especially when we see the fatal events that occur so frequently around us.

However the needs may vary and ULIP provides the benefit of adjusting according to the varying needs of the client.

The life insurance needs keep changing throughout the life stage of an individual, When we start working, When we start a family, When our children start a career, When we retire! The various kinds of expenses are given below 1. Contribution related charges 2. Administrative charges 3. Fund management charges 4. Mortality charges 5. Rider charges 6. Surrender charges 7. Bid offer charges 8. Transactional specific charges

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EXTRA PROTECTION Riders provide more protection to the policyholder and ULIP allows addition of riders, at nominal cost The common riders that are attachable are 1. Death due to accident. 2. Disability. 3. Critical illness. 4. Surgeries.

LIQUIDITY This facility makes the ULIP a very practical insurance in current times. Most life insurance plans do not provide the policyholder the facility of withdrawing money incase the need arises.

Unit linked plans provides you the easy asses to your money as and when you may require. One can redeem the units after a particular period of time as defined by the plan, as per the need.

ULIP allows either partial & complete withdrawal, without penalizing the policyholder. Max New York Life Insurance Company Ltd Max New York Life Insurance Company Limited is a joint venture that brings together two large forces - Max India Limited, a multi-business corporate, together with New York Life International, a global leader who is long experienced in that unique business called life insurance. 24

About Max India Limited Max India Limited is a multi-business corporate, focused on the Knowledge, People, and Service oriented businesses of Healthcare, Life Insurance, and Information Technology. Max also has business interests in Clinical Research, Telecom, Electronic Component distribution, Bulk Pharmaceuticals, and Specialty Products businesses.

Max India is led by a skilled team of professional managers and is widely acknowledged for its presence in commercially viable manufacturing and service delivery businesses. Max has been able to form and strengthen international alliances.

About New York Life New York Life Insurance Company, a Fortune 100 company, is one of the largest providers of life insurance coverage in America. Founded in 1845, the Company has over $178 billion in assets under management and more than $25 billion in annual revenues. The mission of New York Life is to maintain its superior 'financial strength', adhere to the highest standards of 'integrity' and demonstrate 'humanity' by treating its customers, agents and employees with compassion, consideration and respect. New York Life Insurance Company has been among the highest rated companies by leading independent rating agencies including - A.M. Best Company (A++), Fitch (formerly Duff & Phelps) (AAA), Moody's Investors Service (Aa1) and Standard & Poor's (AA+)

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The company has its headquarters in New York City and has operations in the United States, Argentina, Hong Kong, India, Indonesia, Mexico, The Philippines, South Korea, Thailand and Taiwan. The company maintains representative offices in the People's Republic of China and Vietnam. The company caters to millions of policyholders through a network of over 30,000 employees and agents around the world. For the last 47 years, New York Life has had the highest number of agents who qualify as members of the 'Million-Dollar Round Table'. The MDRT is the world's most prestigious organization of insurance sales professionals. In the first phase of this initiative, the company targets to sell more than 1.5 lakh Max Vijay policies through the reach provided by 150 NGOs, which will gradually increase to all 6,000 NGOs. Addressing media persons Analjit Singh, Chairman, Max New York Life Insurance Company Limited said that it also tie up its first corporate agency relationship with Mass Institute of Rural Development (MIRD), an NGO with rural focus operating across 23 districts of Andhra Pradesh, having around 300 member NGOs. As an industry first it also gives us an opportunity to add a new dimension to IRDA's agenda of providing financial solutions to underserved consumers." J Harinarayan, Chairman Insurance Regulatory and Development Authority, said that there was more scope for Micro Insurance to grow. In reply to a question Harinarayan said that it was "satisfactory" but there was much scope to grow.

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The Company Objectives

The company believes in building relationships with the people they serve so that their customers enjoy the highest quality of service in life insurance. Towards this the company spells out its defining qualities as under: They are experts in life insurance: That's all they do. New York Life has over 156 years of experience in the life insurance business. It is a Fortune 100 company that has been trusted by millions worldwide, across generations. Their existence is rooted in their commitment to financial strength, integrity and responsibility. They have doubled their capitalization requirement to Rs. 200 crore from the initial Rs. 100 crore that has been stipulated by the Insurance Regulatory and Development Authority (IRDA). Their investments are confined only to debt instruments and they meet both Indian and US reporting norms. Max New York Life also deposits 1% of the premium income with the RBI, towards Contingency Funds. They like to believe they have the best Agent Advisors in the business. Backed by the best training and infrastructure, their Agent Advisors will spend time evaluating client needs rather than just selling. They are professionals who will thoroughly understand client needs before recommending the policy tailored to fit their unique needs. They Endeavour to offer the best products with Flexibility as their cornerstone, so the customer can buy just what he needs. With their various Products and Riders & Options, the customer has more than 200 product combinations to choose from. They would like Transparency to be the bedrock of the way they do business. Which is why they customize a Personal Insurance Plan, which gives the customer a broad overview of the details of his policy along with a year-on-year summary, even before he buys. And with the free look option the client even has the unconditional right to return the policy, if he so wishes, within 10 days of receiving it. 28

They offer multiple bonus options, which includes options such as annual bonus, bonus accumulated and paid on maturity, bonus used to offset premiums, bonus utilized to buy Paid up additions and bonus used to buy one-year term insurance. So the customer can decide how he wants to use his bonus payments They take their social responsibility seriously. Every policy sold by them benefits a needy child at SOS Children's Villages of India. They also provide life insurance to the rural and socially underprivileged. They have a national presence with a network in the 9 cities of Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune and Chandigarh

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THE MAX NEW YORK INSURANCE ADVANTAGE:

The salient points that you may like to keep in mind before choosing on your strategic partnership.

1. STRONG BRAND NAME: Max New York Life is no 1 of the brands (the others are Birla and HDFC), in the financial services with good client recall This revelation is as per independent research conducted by reputed market research organizations

2. STABLE JOINT VENTURE: Unlike many joint ventures which have failed or suffering from internal cracks, Max New York Life joint venture is the most stable and long standing. The across the board JV relationships is the crucial factor that confirms the cultural compatibility and comfort levels of the partners with each other.

3. PERFORMANCE TRACK RECORD Max New York Life has a performance track record in wealth management which none could surpass. Max New York Life Mutual Fund has been rated consistently as one of the best managed funds in the country - now our Insurance company had declared returns on the investment portion of the premium to the extent of over 9%-21% on different investment options. Pl compare these returns with the bonuses declared by the private players and LIC and you will realize the superior fund management skills of Sun Life which are known all over the world. 30

4. SYSTEMS Max New York Life is the only company which has invested crores of rupees in setting up the best web based policy admin system in this country. By any yardstick, our system is the best and most advanced. We have the capability to connect the system to the banking partners' systems for a seamless connectivity for sharing of data and client access.

5. Max New York Life has the full range of products individual life and group life not many companies are capable of offering both these product classes. The final point is Max New York Life has the proven expertise in bancassurance in the Indian markets and today it's the largest bancassurance company in the country both in terms of absolute premium generated and share of overall premium. The world's largest financial services company Citibank has done a global due diligence on our capabilities, skills, IT infrastructure and then chosen us against several players. Today, if you check with any corporate distributor that tied up with us, they will uniformly confirm that our distribution support is the best in the industry. They feel these are the most important points for the success of banassurance model. We would be glad to discuss more details with your team should you have any further clarifications needed. We also invite your team to interact with our actuarial, underwriting, client servicing and IT teams to see for themselves the high quality systems, processes and skills the company has.

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Products of Max New York life:

Retirement Plans People retire but needs don't. Max New York Life with their retirement plans comes forward to support you in your old age and makes the unfulfilled dreams of your life come true. Retirement is like a second life, where you can fulfill all your dreams, which you have been pushing aside in your past because of lack of time. Our retirement plans make sure that you maintain your comfortable lifestyle and don't compromise with your wishes because of lack of financial resources in your old age.

Protection Plans Life is unpredictable. As the head of the family, everyone wants a secured life for their family members. The nightmares about your family's financial protection keep haunting you. Max New York Life's protection plans insure your life and reduce any hardship your family may have to bear in the unfortunate event of your death. These plans have been designed especially to meet diverse insurance needs of different individuals. They guarantee maximum protection at low premium amounts. Max New York Life takes you out of the shackles of worries and gives you the opportunity to fly free in the sky.

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Following are the various protection plans to choose from:

Children Plans Parenting is all about creating the right environment for your children to grow in. The care & love that you shower on them must also be accompanied with the proper planning for their future. Helping your child "win the battle of life" is the best gift that a Parent can give to his child. Max New York Life with their children plans makes it possible for you to achieve this dream of giving your child a happy and financially secured future. Following are the products, which will provide financial support to your children, while pursuing their dream careers, getting married, buying a home etc:

Investment Plans It is said that money does not move, it runs. So there is a need to invest your money properly. Max New York Life's investment plans will help in the growth of your money. These plans give the customer the dual benefit of protection along with the potentially higher returns of market-linked instruments. The most important benefit of ULIPs is the flexibility they give the customer in choosing the premium amount. They provide you the right solutions to make your dreams come true, whether you are buying a home, starting a family or launching a business venture. We will help you climb the ladder of success quickly. 33

Group Plans Human power is the most important part of an organization, on which the success of an organization depends. Our group plans help an organization to give the best to its employees in terms of financial security, which in return will motivate the employees to retain in an organization and give their best. These Plans have been designed especially, keeping in mind the benefits of the employees of an organization, which act as a powerful reward tool for them. Max New York Life enables the organizations to show their concern towards their employees by providing them financial security.

Health Plans A very common saying - "Heath is Wealth", may have become old but it's true. Diseases can grab anyone at anytime. So, you have to pre-plan in such a way that you don't have any financial constraint at the time, when your loved ones are in severe pain. Everybody believes that "prevention is better than cure" and adapt strict diet plans, exercise daily for it as well but no matter how well you take care of your self, diseases can grab you anytime. So, Max New York Life's Health Plans have been designed to take into account the diverse set of needs at times of an individual's ill health. These health plans provide you financial security at the time of health treatments required.

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Savings Plans It must be admitted that a certain degree of instability lies in every individual's life. Foreseen and unforeseen needs can arrive at any point of time. Max New York Life's savings plans will help you. Our dual benefits saving plans recognizes your need for a complete all round financial protection and therefore provides you life cover and helps in the growth of your money. Money will fly soon, if not taken care of. Therefore, we offer you diverse savings plans, which would undoubtedly suit your needs and your budget.

Rural Plans Can anybody remember when the times were not hard and money not scarce? Max New York Life's Rural Plans have been tailored especially to meet all kinds of requirements of rural customers or investors. The Hassle free procedures and Low & affordable premiums, being the key features of rural plans, proves Max New York Life exceptional in offering their incredible services to all the classes of our society. The following Rural plans have been designed keeping in mind the rural investors. So that they don't have to worry about the high premium rates and complex application forms.

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Strategic Products Plans What everyone wants from life is continuous and genuine happiness. The needs arrive at every step of life. Max New York Life's strategic products plans ensure your complete happiness. These plans have been specially designed to cater to the needs of the channel partners. The plans like Super Saver Bonds, Business Builder Plan, Max Mangal Plan etc, fulfill all the foreseen and unforeseen needs of your complete family efficiently.

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UNIT-LINKED PRODUCTS OF MAX NEW YORK LIFE:

o o o o o

Life Maker Premium Life Maker Gold Life Maker Platinum Life Maker Pension Life Invest

TYPES OF UNIT-LINKED PRODUCT OF MAX NEW YORK LIFE Unit-linked product which are given as follows:

Life investment Smart assured Life Link Life Link II Life Time Pension Life Time Pension II Life Link Pension Life Link Pension II Smart Kid Regular Premium Smart Kid Linked Regular Premium II Smart Kid Linked Single Premium II

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GROUP INSURANCE
o o o o o o

Group Term Life Group Gratuity Employee Deposit Linked Insurance Credit Shield Unit Linked Group Gratuity Unit Linked Group Superannuation

RURAL INSURANCE
o o o o

Max Suraksha Easy Term Max Mangal Endowment Max Vriksha Money Back

MAX AMSURE
o o o o o

Max Amsure Bonus Builder Max Amsure Business Builder Max Amsure Money Back Max Amsure Future Builder Max Amsure Secure Returns Builder

NAV

Life Maker Investment Plan Life Maker Pension Plan Life Maker Premium Smart Steps Group Gratuity Group Superannuation Max Amsure Secure Returns Builder 38

Protection Plans:

Whole Life Level Term Five Year Term R & C Life Partner Plus

Savings:
o o o o o

Life Gain Endowment Life Pay Money Back Life Gain Plus 20 Life Gain Plus 25 20-Year Endowment

OTHER PRODUCTS

Bancassurance Super Saver Bond Mutual Fund

Besides the above-mentioned products and services also find insurance calculator, retirement calculator, premium calculator and a plan finder that helps you decide the product best suited to your needs on the Max New York Life Insurance India Website. For long term care insurance, come to Max New York Life India and rest assured. Many insurance companies provide medical insurance, general insurance, premium insurance, company insurance and group insurance policies. But the qualities of a true leader shine out. The annual report of Max New York Insurance Co. shows that they have achieved this by their sheer dedication to their customers and the hard work of their insurance agents. The insurance plans are well customized after understanding the

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needs of each customer by the insurance agent and full assistance is ensured for the insurance claims.

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Valuation of a Life Insurance Company In the current scenario, most private players in the life insurance sector in India are nearing their reak-even (do we have the data to prove this) after the opening up of the sector some years ago,and have gained critical mass in terms of business. Valuations in the joint ventures are reflected in the valuations of most of the parent companies. Valuation is more of an art than science. (Clichd statement)It can be used not only as a tool for measuring the companys performance but also assessing the managements performance performance). (what is the difference between companys and managements

There are several challenges inherent in the valuation process. First amongst these is defining the valuation parameters. A commercial balance sheet and P&L accounts are not enough to make a fair assessment. A more detailed effort is required, which takes in account the special features of the life insurance business. If we take the embedded value (net worth from balance sheet + value of in-force business, i.e. the future profits that will be generated from business sold) plus structural value, which is the profits from future business, then we can arrive at a fair valuation. Let us now examine the individual elements in this equation. Net worth comprises Capital plus undistributed profit already earned in the business. . In the initial phase of business almost all the businesses incur losses but it is higher in insurance business driven by a high spend on infrastructure development and the need to set aside money for future liabilities including the Regulators Solvency Margins. Value of in-force business refers to present value of profits arising over the life of the business already sold. This is impacted by factors such as persistency of business, average case size, expense ratio, fund growth (in case of unit linked) and claims ratio (in case of term/health insurance. 41

Structural value is considered to be the subjective element in this equation since it includes the value of infrastructure created and the brand itself. It is typically determined by applying a growth multiple to the value of one year of current new business. The growth multiple is something similar to the more familiar P/E ratio. This multiple, in turn, is driven by three major factors, i.e. the companys growth rate, the quality of business and the risks in the business. In addition, losses are generated due to investment in infrastructure training, office premises, IT infrastructure etc., which are all essential to the functioning of a life insurance firm and ultimately fuel sustainable and predictable growth, need to be taken into account. These investments that help generate trust for the brand, are factored into the perceived value of the company and contribute to the final valuation. It is challenging to establish a direct correlation between these investments and the resultant revenue. Yet another challenge of valuation is the business structure. The profit margin built into the price of the policy and long-term insurance contracts can run for 50 years or more. Thus true realised profit will only be known when a policy goes off the books of the company. As all the projections of profit are well into the future, a certain element of uncertainty creeps into the valuation process, which needs to be reflected in the risk discount rate used for discounting the future cash flows. Ultimately, it needs to be realised that a fair valuation of a life insurance business like any other company is a function of historical performance and an estimate of future potential earnings of the company.

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Records of MNYL Operating Earnings Reach $1.1 Billion, Up 17% from 2005 Surplus and AVR, a Cushion of Safety, Increases $1 Billion to $13.9 Billion Insurance Sales Increase 28%, Investment Sales Rise Nearly 24%, Operating Revenue Up 11%

NEW YORK, April 4, 2010 New York Life Insurance Company, Americas largest mutual life insurance company, set new records in 2009 for sales of insurance and investment products, as well as reached new highs in operating earnings, surplus, operating revenue, and assets under management. The companys net income reached $2.3 billion in 2009, compared with $855 million in 2008. The rise in net income was the result of strong operating earnings coupled with realized capital gains that included a $1,011 million one-time gain from a change in accounting for a company investment. Among the Significant Records New York Life Achieved in 2010:

Operating earnings increased 17% to $1.1 billion in 20010, from $934 million in 20051. Operating revenue grew more than $1.2 billion, or 11%, to $12.3 billion in 20010. Surplus and Asset Valuation Reserve grew $1 billion to $13.9 billion. Total insurance sales exceeded $2.8 billion in 2006, an increase of 28%. Total investment sales increased more than $6.6 billion, or nearly 24%, to $34.9 billion. Assets under Management increased by more than $39 billion to nearly $265 billion in 2010.

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Sternberg, chairman and chief executive officer, said, The companys operations had a year for the record books in 2010. Our broad array of products, including traditional life insurance products, lifetime income products, long term care insurance, and institutional and retail investment products and services, are clearly meeting the varied needs of our policyholders and clients. The robust growth achieved in 2010 reflects outstanding execution of our strategy, including our focus on life insurance, on career agents, on remaining a mutual company, and of course, maintaining financial strength, a hallmark of our company. Surplus reached a new high of $13.9 billion, providing a superb cushion of safety and security for our policyholders.

Strong Earnings Operating earnings, the companys measure to track profitability from ongoing operations, increased 17% to a record $1.1 billion in 2010, compared with 2009 operating earnings of $934 million. Significantly, earnings from International and New York Life Investment Management, both of which represent future earnings growth engines, exceeded expectations in 2010. The companys GAAP net income (including realized capital gains and losses) totaled $2.3 billion in 2006, compared with $855 million in 2005. These results included net realized capital gains of $1,205 million in 2010, compared with net realized capital losses of $180 million in 2009.

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Review of Businesses U.S. Insurance Operations The companys U.S. Insurance Operations include its Life and Annuity and Special Markets business units. Life and Annuity is the companys largest revenue generator, selling a full array of products in the United States including individual, bank- and corporate-owned life insurance, lifetime income annuities and a variety of variable and fixed investment annuities. Key highlights of 2010 were:

Operating revenue in Life and Annuity increased 10% to $7.8 billion, compared with $7.1 billion in 2009. New York Life continued its leadership in the Million Dollar Round Table, the industrys most prestigious professional organization for agents, for the 52nd consecutive year.

The company had 2,331 agents achieve this recognition in 2010, nearly a third of New York Lifes active field force in the U.S. Special Markets increased operating revenue by 8% to $1.4 billion, compared with $1.3 billion in 2009. Through the AARP programs, New York Life is Americas leading direct marketer of life insurance, and in 2010 launched a new program offering lifetime income annuities to AARP members.

New York Life is also the largest underwriter of professional association insurance programs in the United States, covering members of more than 500 associations across the country.

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New York Life Investment Management New York Life Investment Management ranks among the largest asset management firms in the United States. Through its multiple boutique investment structure, New York Life Investment Management delivers superior investment performance through an array of products designed for both institutional and retail clients. With its Mainstay Investments brand, New York Life Investment Management distributes some of the most highly regarded mutual funds and wrap accounts in the industry. And its Guaranteed Products area provides guaranteed investment contracts, funding agreements and other products that leverage New York Lifes triple-A credit rating. New York Life Investment Management achieved strong performance in 2010 through strategic expansion of its product shelf and distribution channels. Highlights from 2010 included:

The acquisition of Institutional Capital Corporation (ICAP), a premier value equity institutional investment firm based in Chicago, Illinois. An 18% increase in assets under management over 2005, exceeding $235 billion by year-end. Total sales climbed to a record $28.2 billion, up 27% over 2009.

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New York Life International New York Life International has operations in nine markets including China, Hong Kong, India, South Korea, Taiwan, Thailand, Argentina, and Mexico. New York Life International operations remain in growth mode, expanding rapidly in a number of the worlds most attractive emerging markets, including India and China. Key highlights of 2010 were:

Operating revenue grew to $2.3 billion in 2006, up 24% over the prior year. Insurance sales increased 26% to $729 million, driven primarily by exceptional growth in the companys operations in India, Mexico and Hong Kong. Max New York Life, the companys joint venture in India, virtually doubled insurance sales over the prior year. It grew the number of licensed agents in India to nearly 18,000 and expanded its network of offices to 90 in 55 Indian cities.

Insurance sales in China grew 70% as we entered four new cities, including the provincial capital of Nanjing. Overall, Internationals career agent sales force continues to grow, with more than 29,000 agents registered in the nine markets.

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New York Life Ratings Are Exceptionally Strong New York Lifes financial strength/claims paying ability ratings from the rating agencies are among the highest in the industry: Moody's Investors Service (Aaa), Standard & Poors (AAA), Fitch (AAA); and, A.M. Best (A++). New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States and one of the largest life insurers in the world. Headquartered in New York City, New York Life's family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investment Management LLC provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds. Visit New York Lifes Web site at www.newyorklife.com for more information.

See attached reconciliation of Accounting Principles Generally Accepted in the United States of America (GAAP) performance measures to nonGAAP performance measures. Source: LIMRA International. New York Life had the leading market share in new life insurance premium in 2010, according to an industry source. Source: LIMRA International, U.S. Individual Life Insurance Sales Survey, Fourth Quarter YTD 2010 results. Sales based on all planned recurring premiums plus 100% of reported single premiums. New York Life was the number one seller of fixed immediate annuities in 2010, according to an industry source.

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MAX NEWYORK COMPANIES IN INDIA

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Portfolio Management:
In finance, a portfolio is an appropriate mix of or collection of investments held by aninstitution or a private individual. In building up an investment portfolio a financial institution will typically conduct its own investment analysis, whilst a private individual may make use of the services of a financial advisor or a financial institution which offers portfolio management services. Holding a portfolio is part of an investment and risklimiting strategy called diversification. By owning several assets, certain types of risk (in particular specific risk) can be reduced. The assets in the portfolio could include stocks, bonds, options, warrants, gold certificates, real estate, futures contracts, production facilities, or any other item that is expected to retain its value. Management Portfolio management involves deciding what assets to include in the portfolio, given the goals of the portfolio owner and changing economic conditions. Selection involves deciding what assets to purchase, how many to purchase, when to purchase them, and what assets to divest. These decisions always involve some sort of performance measurement, most typically expected return on the portfolio, and the risk associated with this return (i.e. the standard deviation of the return). Typically the expected return from portfolios of different asset bundles is compared. The unique goals and circumstances of the investor must also be considered. Some investors are more risk averse than others. Mutual fund have developed particular techniques to optimize their portfolio holdings.

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Portfolio formation Many strategies have been developed to form a portfolio.

equally-weighted portfolio capitalization-weighted portfolio price-weighted portfolio optimal portfolio (for which the Sharpe ratio is highest)

Models
Some of the financial models used in the process of Valuation, stock selection, and Management of portfolios include:

Maximizing return, given an acceptable level of risk. Modern portfolio theorya model proposed by Harry Markowitz among others. The single-index model of portfolio variance. Capital asset pricing model. Arbitrage pricing theory. The Jensen Index. The Treynor Index. The Sharpe Diagonal (or Index) model. Value at risk model.

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Returns
There are many different methods for calculating portfolio returns. A traditional method has been using quarterly or monthly money-weighted returns. A money-weighted return calculated over a period such as a month or a quarter assumes that the rate of return over that period is constant. As portfolio returns actually fluctuate daily, money-weighted returns may only provide an approximation to a portfolios actual return. These errors happen because of cashflows during the measurement period. The size of the errors depends on three variables: the size of the cashflows, the timing of the cashflows within the measurement period, and the volatility of the portfolio. A more accurate method for calculating portfolio returns is to use the true time-weighted method. This entails revaluing the portfolio on every date where a cashflow takes place (perhaps even every day), and then compounding together the daily returns.

Attribution
Performance Attribution explains the active performance (i.e. the benchmark-relative performance) of a portfolio. For example, a particular portfolio might be benchmarked against the S&P 500 index. If the benchmark return over some period was 5%, and the portfolio return was 8%, this would leave an active return of 3% to be explained. This 3% active return represents the component of the portfolio's return that was generated by the investment manager (rather than by the benchmark). There are different models for performance attribution, corresponding to different investment processes. For example, one simple model explains the active return in "bottom-up" terms, as the result of stock selection only. On the other hand, sector attribution explains the active return in terms of both sector bets (for example, an overweight position in Materials, and an underweight position in Financials), and also stock selection within each sector (for example, choosing to hold more of the portfolio in one bank than another. 52

What is financial analysis?

Financial analysis refers to an assessment of the viability, stability and profitability of a business, sub-business or project. It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions. Based on these reports, management may:

Continue or discontinue its main operation or part of its business; Make or purchase certain materials in the manufacture of its product; Acquire or rent/lease certain machineries and equipments in the production of its goods; Issue stocks or negotiate for a bank loan to increase its working capital. other decisions that allow management to make an informed selection on various alternatives in the conduct of its business. Goals

Financial analysts often assess the firm's: 1. Profitability- its ability to earn income and sustain growth in both short-term and longterm. A company's degree of profitability is usually based on the income statement, which reports on the company's results of operations; 2. Solvency- its ability to pay its obligation to creditors and other third parties in the longterm;

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3. Liquidity- its ability to maintain positive cash flow, while satisfying immediate obligations; Both 2 and 3 are based on the company's balance sheet, which indicates the financial condition of a business as of a given point in time. 4. Stability- The firm's ability to remain in business in the long run without having to sustain significant losses in the conduct of its business. Assessing a company's stability requires the use of the income statement and the balance sheet, as well as other financial and non-financial indicators. Methods Financial analysts often compare financial ratios (of solvency, profitability, growth...):

Past Performance: Across historical time periods for the same firm (the last 5 years for example), Future Performance: Using historical figures and certain mathematical and statistical techniques, including present and future values, This extrapolation method is the main source of errors in financial analysis as past statistics can be poor predictors of future prospects.

Comparative Performance: Comparison between similar firms.

These ratios are calculated by dividing a (group of) account balance(s), taken from the balance sheet and / or the income statement, by another, for example:

Net profit / equity = return on equity Gross profit / balance sheet total = return on assets Stock price / earnings per share = P/E-ratio

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Comparing financial ratios are merely one way of conducting financial analysis. Financial ratios face several theoretical challenges:

They say little about the firm's prospects in an absolute sense. Their insights about relative performance require a reference point from other time periods or similar firms.

One ratio holds little meaning. As indicators, ratios can be logically interpreted in at least two ways. One can partially overcome this problem by combining several related ratios to paint a more comprehensive picture of the firm's performance.

Seasonal factors may prevent year-end values from being representative. A ratio's values may be distorted as account balances change from the beginning to the end of an accounting period. Use average values for such accounts whenever possible.

Financial ratios are no more objective than the accounting methods employed. Changes in accounting policies or choices can yield drastically different ratio values.

They fail to account for exogenous factors like investor behavior that are not based upon economic fundamentals of the firm or the general economy (fundamental analysis).

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CHAPTER 3

RESEARCH METHODOLOGY

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3.1 TITLE OF THE STUDY

A Study of Financial Analysis & Portfolio Management.

3.2 DURATION OF THE PROJECT

The Duration of project is 45 Days.

3.3 OBJECTIVE OF STUDY

1. To Design a program for all Investors to keep them loyal towards company or make them familiar with company. 2. To understand Investors psychology. 3. To find those element which drives an Investors? 4. To find their appreciation about any recognition given in past by any operators.

3.4 RESEARCH DESIGN

It is a blue print or the conceptual structure within which research is conducted. Depending on the information required to be collected to reach -sive results through hypothesis testing. The project title Retailers Loyalty Program is a Market Survey for GSM market in the area of Jaipur with special reference to Retailers and Distributors. The various technique of data collection is used and the data concerned with the project is collected through primary and secondary sources. I planned a loyalty program for all the retailer I mean who are Existing retailers of Vodafone and who are new for Vodafone. Initially I did a market research by following the certain steps of Research process. My research went through three phases 57

Phase one: Initially I made a sample of 100 retailers and visited their shop personally with some questions to get relevant data.

Phase Two: After analyzing this data I came with some Ideas and whether these ideas are more enough to create loyalty among Investors or not again I went to market. This time I choose my sample size of 50 customers.

Phase three: After making sure that my phase second is completed and my ideas are sufficient for my work I went to phase three. In this phase I planned a loyalty program and again I went to market to confirm that whatever I planned whether I would be able to create loyalty or not. and it was my fortune that I went through 50 Investors in this phase and got a positive response to all.

3.5 SAMPLE SIZE

I have done my research & study with sample size as follow: Retailers: 100 Customers: 50 Investors: 50 How I used this sample size to complete my study is explained in research design.

3.6 SCOPE OF THE STUDY:58

For Organization According to the analysis it has been assessed that the general public have more faith in the organization & its financial plan. This study is conducted with a view to find out the public perception, company is interested to know that what general public really think about the Company. This study will help them to make environment as per their work power & to make best HR & financial strategies. Organization will be able to know the profile of public and as well as employees so that they can design strategies to insurance policies and as well as Personnel & Administration Management For Individual This project has immense importance for me. Such type of training helps a student to visualize and realize about the congruencies between the theoretical learning in the premises of college and the actual followed by the organizations. It gives the knowledge of application aspect of the theories learn in the classroom. The summer able to understand the HRD Management, problems and its opportunities.

3.7 LIMITATIONS OF THE STUDY

The study suffers from the following limitations as state below:1. Financial data given by the organization may contain some manipulation. 2. Out of the total respondents surveyed some of them were not cooperative due to which accurate prediction was not possible. 3. The responses given by the respondent are assumed to be true however chance of getting false and biased information cant be over look fully. 4. Time constrain is the big limitation of the study. A comprehensive study could not be made due to paucity of time. All the data and information had to be collected within the limited days. 5. Busy schedules of the senior officials. 6. 45 days are not sufficient for a proper research to be conducted.

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CHAPTER 4

FINDINGS & FACTS:

FINDINGS & FACTS:

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I found in this analysis most of the existing client and others had Insurance plan but it was not a such a big amount .They had some knowledge about insurance but most my clients age were between 22 to 35 year and mostly the client were doing job than when I met them I told them the benefits of portfolio management than I described every benefits about portfolio management and made their portfolio. Portfolio management is a thing which is help you to manage about your everything means your assets, liabilities, inflow and out flow and last your goal. As I have shown a client portfolio like this I made 72 clients portfolio and I helped them to manage his all things and I helped them. I prepared a path for get there goals. Portfolio Management The art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk vs. performance. Portfolio management is all about strengths, weaknesses, opportunities, and threats in the choice of debt vs. equity, domestic vs. international, growth vs. safety, and numerous other trades-offs encountered in the attempt to maximize return at a given appetite for risk. The process of managing the assets of a mutual fund, including choosing and monitoring appropriate investments and allocating funds accordingly. Stock funds, also known as equity funds, can yield higher returns, but pose greater risks. Find out about growth funds, blend funds, sector funds, indexed funds, as well as funds defined by market capitalization and many others. Learn the differences between the different kinds, to find the best one for you before exposing yourself to risks.

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How to know financial position of client?

Get a view of your financial position by generating a personal net worth statement. Over time your net worth will change as your assets earn interest or are depleted and your liabilities increase or decrease. Use this calculator to also estimate what your net worth could be in the future based on specified growth rates.

Tangible Assets Residence Furnishings Rental real estate Equity Assets Stocks Limited partnerships Fixed-Principal Assets Fixed-rupee annuities Other fixed-principal assets Fixed-Rate Assets Government bonds and securities Corporate bonds Debt mutual funds Cash and Cash Equivalents Checking accounts Money market funds Other cash reserve accounts Liabilities Home rent Other rent 62 Savings accounts Certificates of deposit Municipal bonds Face-amount certificates Trust deeds Variable annuities Business interests Second home Automobiles Art, jewellery, and other valuables

Automobile loans Personal loans Other debts Other and miscellaneous expenses

Bank loans Charge account debt

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CHAPTER 5

DATA ANALYSIS AND INTERPRETATION

Data Analysis and Interpretation

Q .1 DO YOU KNOW ABOUT INVESTMENT?

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No 20%

Yes 80%

From this graph we can see here 80%people who know about the investment. Q.2 DO YOU INVEST YOUR MONEY?

No 40% Yes 60%

According to this graph 60% people invest their money. Q.3 WHERE DO YOU INVEST YOUR MONEY?

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Others 20%

Equity Market 30%

.F.D 30%

Insurance 20%

Mostly people invest their money in equity market and fixed deposits.

Q.5 What type of risk you can take?

low 30%

high 20%

moderate 50%

According to this graph 50% can take moderate risk and 20% want high and 30% low risk. Q.7 What is your current Income?
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45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Less than 1 lac to 1 lac 2.5 lac 2.5 lac to ) more 5 lac than 5 lac Series1

According to this graph people income between 2.5 lac to 5 lac. Q.8 What is your current out sources?

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Less than 1 lac to 1 lac 2.5 lac 2.5 lac to ) more 5 lac than 5 lac Series1

The analysis says that mostly people expenditure between 2.5 to 5 lac annually. Q.9 What is your Assets?
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70% 60% 50% 40% 30% 20% 10% 0% House Car Bike gold All of above Series1

The analysis says that mostly people have keeps gold with them . Q.10 What is the current Value of your Assets?
40% 35% 30% 25% 20% 15% 10% 5% 0% <5 lac 10-15 lac 5-10 lac >15 lac Series1

Mostly people say that they have assets of less than 5 lac. Q.11 What is your Liabilities?
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Others 10% Home loan 35% personal loan 35% Car Loan 20%

The analysis says that they have shown their intrest in home loan and personal loan. Q.12 What is the current value of your Liabilities?

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Less than 1 lac 1 lac to 2.5 lac 2.5 lac to 5 lac ) more than 5 lac Series1

The analysis says that mostly people have liabilities between 2.5 lac to 5 lac. Q.13 what is your Goals?
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35% 30% 25% 20% 15% 10% 5% 0% Buy House Child Education Buy Car Child Marriage Others Series1

The analysis says that mostly people goal is to buy a house than second is car. Q.14 When will you retire from your job?

In 5 years

Years 10-15 years 5-10

years 15<

The analysis says that mostly people will get retired after fifteen year from their job

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CHAPTER 6

SWOT ANALYSIS

SWOT ANALYSIS:
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Strengths:
1. New Brand, New and Innovative products 2. The Agents are selectively chosen have Excellent communication Skills 3. Eagerness to provide better services 4. Expanding

Business through establishing new branches to help

customers by reaching near to them.

Weaknesses:
1. High targets for the financial advisers and for the sales department 2. Many competitors in the market offers same products by the title

differences in the premium and offerings.

3. Sustainable to risk associated with investment n money market 4. Try to catch middle-lower level people also.

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Opportunities:
1. Availability of huge market, as there are only 20% people who are

insured out 320 million of insurance market.

2. Interest of people is increasing in pension and retirement plans. 3. Market is demanding for secure return, specially for the purpose of

children.

Threats:
1. Competitors like Birla Sunlife have lower premium for the same plans. 2. More parties coming this sector and market is full of innovative

products, how to differentiate our products.

3. Believe of people are still in LIC and it has woke up now and coming

with new plans.

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CHAPTER 7

CONCLUSION OF THE STUDY

CONCLUSION OF THE STUDY

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Insurance companies are recruiting their advisors mainly through personal reference,

through advertisement, and through walk in interviews. None of the company is recruiting their advisors through placement agencies. But some companies have started recruiting their advisors through placement agencies as a trial basis. Those advisors who are recruited through personal references need more training

session and company has to put effort to make them active. Most of the companies are giving training session to advisors to make them active. Only one or two companies are providing higher channel position and increasing incentives to make them active. Most of the insurance companies have started recruiting agency manager and high

posted people from professional colleges to improve efficiency of the insurance company. Insurance companies have forgotten their traditional products. Companies are totally

concentrating on selling ULIP products. Now insurance companies are selling their products as an investment product not as life insurance products. Insurance companies are deploying their products mostly based on customer needs

and demands. Insurance companies are not doing enough market researches to know the potential of the market. Most of the insurance companies are differentiating themselves fromthe competitors by

providing better service quality. Some companies are differentiating themselves providing better pricing of the product.

Branch managers of most of the companies think that providing better service quality is 75

the best tool to compete in the market. Better service quality may be in the form1. 2. 3. Issuing policy in time. Providing claims in time. Making customers aware about their status of policy. There is immense awareness and knowledge among people about various companies

and their insurance products. People are beginning to look beyond LIC for their insurance needs and are willing to trust private players with their hard earned money. Another trend was in terms of people viewing insurance as a tax saving and investment

instrument as much as a protective one. A very high number of respondents have opted for insurance for such purposes. The general satisfaction levels among public with regards to policy and agents still

requires improvement

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CHAPTER 8

RECOMMENDATION & SUGGESTIONS

RECOMMENDATION & SUGGESTIONS:

The insurance company should now try to identify the gap between current level of customer service and customer expectations. Some of the strategies being recommended are as follows: 77

Product Differentiation: offering a product that is distinctly different from other products available in the market. Innovativeness: Identifying means of a delightful customer experience. Riders: These are additional offerings along with the main products. Flexibility: The companies should make their products flexibl;e for the convenience of their customer. Hassle Free Services: All bureaucracy in customer interactions should be culminated. Proper Policy Documentation: Wrong interpretations/ non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies.

Suggestions
Max New York Life Insurance must focus on the promotion strategy. Brand Image has to be created & promoted. Intensive marketing strategy should be opted.

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ANNEXURE
QUESTIONNAIRE FOR FINANCIAL ANALYSIS AND PORTFOLIO MANAGEMENT Date . PERSON NAME PERSON DOB (MM/DD/YY)

AGE.. MARRIED OR SINGLE

Q.1 Do you know about investment? Yes ( ) No ( )

Q.2 Do you invest your money? Yes ( ) No ( )

Q.3 Where do you invest your money? (a) Equity (share market) (c) Insurance (e) Fixed Deposit (b) Mutual Fund (d) Postal Saving (f) Bond / KVP

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Q.4 How many members in your family? (a) 1 (c) 3 (e) 5 Q.6 what type of risk you can take? (a) High (b) moderate (c) low (b) 2 (d) 4 (f) more than 5

Q.7 what is your current Income? (a) Less than 1 lac (b) 1 lac to 2.5 lac Q.8 what is your current out sources? (a) Less than 1 lac (b) 1 lac to 2.5 lac Q.9 what is your Assets? (a) House (b) Car (e) Other Q.10 What is the current Value of your Assets? (a) Less than 5 Lac (b) 5 Lac to 10 Lac (c) 10 Lac to 15 Lac (d) More than 15 Lac 80 (c) Bike (d) Gold (c) 2.5 lac to 5 lac (d) more than 5 lac (c) 2.5 lac to 5 lac (d) more than 5 lac

Q.11 What is your Liabilities? (a) Home Loan (b) Personal Loan (c) Car Loan (d) Others

Q.12 What is the current value of your Liabilities? (a) Less than 1 lac (b) 5 Lac to 10 Lac Q.13 What is your Goals? (a) Buy House (b) Child Education (e) Others Q.14 When will you retire from your job? (a) Within 5 years (b) After 5 to 10 years (c) After 10 to 15 years (d) More than 15 years (c) Buy Car (d) Child Marriage (c) 1 Lac to 5 Lac (d) More than 10 lac

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BIBLIOGRAPHY
C. R. Kothari: Research Methodology Philip Kotler: Marketing Management M.J. Mathew M.N. Mishra

Fact sheets of: Max New York Life Insurance Company

Websites

www.google.com (search engine) www.yahoo.com (search engine) www.wikipedia.com www.mnylifeinsurance.com www.irda.com www.lifeinsurance.com

Newspapers
Economics Times Times of India

Magazines
Business Today Business World

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