Summer Internship & Project report

Submitted by
K SAI CHARAN
REGISTRATION NO
PG17045
Project Title: Comparative Study on Birla Sun life Insurance Products

Conducted at

Birla Sun Life Insurance

In partial fulfilment of the requirement

For the award of the degree
Of

POST GRADUATE DIPLOMA IN MANAGEMENT

JULY - SEPTEMBER, 2018

ISBR BUSINESS SCHOOL

BENGALURU-560100

i
 ISBR-B-SCHOOL, ELECTRONIC CITY,
BANGALORE-560100
CERTIFICATE

This is to certify that Mr. K SAI CHARAN, Roll no.PG17045, student of PGDM has

successfully completed Summer Internship and Live project on Comparative Study on Birla

Sun life Insurance Products. In partial fulfillment for the award of degree of PGDM during

the academic session 2017-19. The project report has been approved as it satisfies the

academic requirements prescribed for the said degree.

Internal Guide: Director

Dr. Aditi Priya Prof. G.R.Nair

Examiner

ii
 DECLARATION

I hereby declare that this Summer Internship Report on Comparative Study on Birla Sun life
Insurance Products at BIRLA SUN LIFE INSURANCE Pvt Ltd submitted in partial
fulfilment of the requirement for III Semester PGDM Degree examinations 2018-19 of
ISBR Business School, Bengaluru, Karnataka, is my original work and not submitted to
any other university. This work has been done under the supervision of Prof. G.R.Nair -
Director and Dr. Aditi Priya - Prof. Marketing in ISBR Business School, Bengaluru,
Karnataka.

Place: Bengaluru K SAI CHARAN

Date: 11/04/2019 PG17045

iii
 ACKNOWLEDGEMENT

I take this opportunity to express my sincere thanks and warmth to all those directly or
indirectly supported, mentored and encouraged me to complete my SIP (Summer Internship
Project) successfully.

I wish to express my sincere gratitude to ISBR Business School, Bengaluru, Karnataka,

for providing the academic environment for undertaking this Internship.

I would like to express my deep gratitude to Prof. G.R.Nair, Director at ISBR, for
mentoring me in right way and constantly providing valuable inputs time to time.

I would also like to thank Dr. Aditi Priya, Internal Guide at ISBR, who showed me a right
way and resolved the erupting confusions during the period of internship.

I express my profound and sincere thanks to Mr. Tanmay Bagayatkar who encouraged and
rendered moral support and gave regular inputs both as a reporting manager as well as a
person.

I would also like to thank Mr Naresh Rupel, (Business mentor) BIRLA SUN LIFE
INSURANCE Pvt Ltd, for giving me an opportunity to work in the organization and help in
carrying forward a delightful and knowledgeable stay as well as indirectly supporting me in
my project.

Last but not the least I would like to thank my parents who supported me in all parts of my
life as well as my colleagues in Birla Sun Life Insurance, who have also contributed in the
project by giving valuable feedback from time to time.

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 CONTENTS

Chapter PARTICULARS Page No.

No.

EXECUTIVE SUMMARY 01

1. INTRODUCTION 03

INSURANCE SECTOR OVERVIEW

2.1. Introduction 05
2. 2.2. Market Size 05
2.3. Investments 06
2.4. Life Insurance Market Appears Vibrant 08
2.5. Government Initiatives 08
2.6. Road Ahead 10

COMPANY DETAILS
3.1. Vision 11
3. 3.2. Values 12
3.3. CSR Philosophy 12
3.4. Products 13
3.5. Customers for Birla Sun Life Insurance 13
3.6. Organization Structure 14

INTERNSHIP ACTIVITIES
4. 4.1. Table Related To Internship Activities. 15
4.2. Few terms Used in IPO. 19

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 4.3. Fundamental & Technical Analysis
4. 4.3.1. Few Terms Related. 22
4.3.2. Candle Stick Analysis. 24
4.3.3. Three Day Candlestick Patterns. 25
4.3.4. Rising Three Method. 26
4.4. Business Model Canvas 27

INTERNSHIP RESEARCH
5.1. Statement Problem 30
5.2. Scope of Study 30
5.3. Products Covered
5.3.1. Child Solution 30
5.3.2. Retirement Solution 32
5.3.3. Wealth Solution 34
5.3.4. Tax Solution 35
5.4. Need For The Study 36
5.5. Objectives of the Study 36
5.6. Research Methodology 37
5. 5.7. Population 37
5.8. Sampling Unit 37
5.9. Sampling Element 37
5.10. Sampling Size 37
5.11. Sampling Technique Adopted 37
5.12. Analysis 37
5.13. Tools Used for Data Collection 37
5.14. Tools Used for Data Analysis 37
5.15.Findings and Inferences 38
5.16.Limitations 53
5.17.Conclusions Of the Study 53

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 5.19. Recommendations 54
5.20. Future Scope 54

6. AN ASSESSMENT OF INTERNSHIP 55

7. CONCLUSION 57

ILLUSRTATIONS & APPENDIX

A1 Questions posed to Respondents 58
A2 Fundamental Analysis Report (Cement & Aluminum Sector) 64
A3 Technical Analysis Report 67

BIBLIOGRAPHY 72

LIST OF FIGURES
Growth of Insurance Sector 10
Market Share of Major Insurance Companies 10
Organisation Structure 14
Candle Stick Model 24
Rising 3 Method 26
Business Canvas Model 27
Bar Graphs ,Column Charts, Pie Charts of Findings in Research 38-52
(Fig.5.1 to Fig.5.22)
Fundamental Analysis Report 65-67
Technical Analysis Diagrams 67-71

LIST OF TABLES
Table Of Activities Taken During Internship 15-19
Tables For Various Products (Fig.5.1 to Fig.5.3.) 31-35

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Cement Sector UV/OV Comparison 64-65

Aluminium Sector UV/OV Comparison 66

viii
 EXECUTIVE SUMMARY

Insurance sector has taken lots of twists and turns in today’s scenario. From merely being a life
securing element, insurance has diversified itself into other domains like Child protection, Health
care, Tax solution, Wealth management, Travel protection etc. Insurance has in-fact now become
a new mode of investment giving safe returns. This dual nature of modern-day insurance policies
is showing a positive tone and is expected to strengthen the power of this sector and make it equally
likely to other contemporary investment options like mutual funds, stocks etc. Birla Sun-life
Insurance is one of the prominent players of this sector and attracts the investors with its exclusive
policies.

This report includes the crux of the training and learning undergone during the eight weeks of
internship. It also includes the research report on the investors’ opinion on various policies of Birla
Sun-Life Insurance and the reasons which make them to show interest on only few particular
choices. Thus, it covers the aspects of the new trending “BEHAVIOURAL FINANCE”.

To support the purpose, a set of 20 general multiple-choice type questionnaires was prepared and
was sent to the potential investors who were approached during the period of internship and to
those who opt for multiple insurance policies. Based on their responses an analysis has been done
in various dimensions and has been found that people are interested in periodic return tax-saving
policies if it is in Birla-Sun life insurance.

Few assumptions were made prior to the survey: 1). There exists a significance relation between
the age group and the type of insurance policy if taken in Birla-Sun life Insurance. 2). There exists
a relation between choice of insurance policy in Birla-Sun life and assurance provided under the
policy.

Taking all points in considerations it is found that people are expecting more from this sector at
the same time they want to invest on products which gives them exemptions with regular returns
and at high rates. Thus, proving insurance is no longer seen as a dead investment.

Birla Sun life being a wing of Aditya Birla group has got trust factor amongst the public. Its
policies are attractive and assuring but a clear-cut competition in the performance of various

1
products of the same company can be seen internally. In addition to that LIC and other competitors
are attracting the clients in more efficient way by introducing high returns and lower premium.

Through this study it can be conclude that if few policies are reframed and premium amount is
lowered then, a larger class of potential investors can be converted to Birla Policy holders.

2
 CHAPTER 1

INTRODUCTION

In today’s “VUCA” world it’s necessary to save and invest the hard-earned money in a right place
to safeguard the future and to relieve ourselves from being dependent on others. There are many
financial institutes which facilitate us with better options. For short term and to earn fast SIPs,
Mutual Funds, Stock Markets contribute a lot but, for long run security and returns Insurance plays
a pivotal role. Insurance, which was previously considered as a death benefit element has gone
forth steps ahead and transformed itself to befit in today’s world. New policy plans are being
designed in a customized way to cater the needs of all classes of society. Few people are in need
to save their future keeping retirement in mind, few people get insured to safeguard their child’s
future while few want more tax benefits which drag them towards investing in insurance and there
are many who invest to manage the wealth. Now a- days there are many other products and parts
which are falling in the category of getting insured, but this report mainly focuses on only the
public opinion and performance on four main life- insurance policies’ which are supposed to be
dealt by interns at Birla-Sun life insurance. This report also focuses on key activities undertaken,
inputs got during internship period and the way it helped to gain a new insight towards observing
things.

This report is being written to help the readers who potentially want to invest in Insurance sector
especially in Birla Sun life insurance to know about what the opinion of different categories of
people towards these policies is. This would not only clarify the mind of potential investor but
also helps in suggesting an idea of framing anew customized policy.

This may be useful to the future interns, as they can observe the demand of various products which
would in-turn help them in doing better client acquisition during their internship period.

In addition to the live questionnaires regarding Birla Sun life products, there are few worked on
models in the domain of IPO, Fundamental and Technical analysis of stock market which would
help the students who are enthusiastic in this domain, especially to those who want to pursue their
career in Finance discipline.

3
Entrepreneurship activity given during the period of internship has also been covered superficially
which would help the young readers in framing business model especially covering revenue
generation and costs.

In short, this report is the package of experience and learning of 45 days spent valuable in Birla
Sun Life Insurance head office, Indira Nagar, Bengaluru which helped a lot to go on with the
survey regarding the investors’ opinion about investing in insurance products and the challenges
faced. Few suggestions and recommendations have also been included in the end from a view point
which may prove useful while investing or while framing new policies.

4
 CHAPTER 2

INSURANCE SECTOR OVERVIEW

2.1. Introduction
The insurance industry of India consists of 53 insurance companies of which 24 are in life
insurance business and 29 are non-life insurers. Among the life insurers, Life Insurance
Corporation (LIC) is the sole public sector company. Apart from that, among the non-life insurers
there are six public sector insurers. In addition to these, there is sole national re-insurer, namely,
General Insurance Corporation of India (GIC Re). Other stakeholders in Indian Insurance market
include agents (individual and corporate), brokers, surveyors and third-party administrators
servicing health insurance claims.
Out of 29 non-life insurance companies, five private sector insurers are registered to underwrite
policies exclusively in health, personal accident and travel insurance segments. They are Star
Health and Allied Insurance Company Ltd, Apollo Munich Health Insurance Company Ltd, Max
Bupa Health Insurance Company Ltd, Religare Health Insurance Company Ltd and Cigna TTK
Health Insurance Company Ltd. There are two more specialized insurers belonging to public
sector, namely, Export Credit Guarantee Corporation of India for Credit Insurance and Agriculture
Insurance Company Ltd for crop insurance.

2.2. Market Size

Government's policy of insuring the uninsured has gradually pushed insurance penetration in the
country and proliferation of insurance schemes are expected to catapult this key ratio beyond 4 per
cent mark by the end of this year, reveals the ASSOCHAM latest paper.
The number of lives covered under Health Insurance policies during 2015-16 was 36 crore which
is approximately 30 per cent of India's total population. The number has seen an increase every
subsequent year as 28.80 crore people had the policy in the previous fiscal.
During April 2015 to March 2016 period, the life insurance industry recorded a new premium
income of Rs 1.38 trillion (US$ 20.54 billion), indicating a growth rate of 22.5 per cent. The
general insurance industry recorded a 12 per cent growth in Gross Direct Premium underwritten

5
in April 2016 at Rs 105.25 billion (US$ 1.55 billion). The life insurance industry reported 9 per
cent increase in overall annual premium equivalent in April-November 2016. In the period, overall
annual premium equivalent (APE)- a measure to normalize policy premium into the equivalent
of regular annual premium- including individual and group business for private players was up
16 per cent to Rs 1,25,563 crore (US$ 18.76 billion) and Life Insurance Corporation up 4 per
cent to Rs 1,50,456 crore (US$ 22.48).
India’s life insurance sector is the biggest in the world with about 360 million policies which are
expected to increase at a Compound Annual Growth Rate (CAGR) of 12-15 per cent over the next
five years. The insurance industry plans to hike penetration levels to five per cent by 2020.
The country’s insurance market is expected to quadruple in size over the next 10 years from its
current size of US$ 60 billion. During this period, the life insurance market is slated to cross US$
160 billion.
The general insurance business in India is currently at Rs 78,000 crore (US$ 11.44 billion)
premium per annum industry and is growing at a healthy rate of 17 per cent.
The Indian insurance market is a huge business opportunity waiting to be harnessed. India
currently accounts for less than 1.5 per cent of the world’s total insurance premiums and about 2
per cent of the world’s life insurance premiums despite being the second most populous nation.
The country is the fifteenth largest insurance market in the world in terms of premium volume,
and has the potential to grow exponentially in the coming years.

2.3. Investments
The following are some of the major investments and developments in the Indian insurance sector.

➢ New York Life Insurance Company, the largest life insurance company in the US, has
invested INR 121 crore (US$ 18.15 million) in Max Ventures and Industries Ltd for a 22.52
per cent stake, which will be used by Max for investing in new focus areas of education
and real estate.

6
➢ New York Life Investments, the global asset management division of New York Life,
along with other investors like Jacob Ballas, will own a significant minority ownership in
Centrum Capital by being one of the leading global investors in buying the available 30
per cent stake worth US$ 50 million of Centrum Capital.
➢ Max Life Insurance Co Ltd and HDFC Life Insurance Co Ltd have signed a merger
agreement, which is expected to create India's largest private sector life insurance company
once the transaction is completed.
➢ Aviva Plc, the UK-based Insurance company, has acquired an additional 23 per cent stake
in Aviva Life Insurance Company India from the joint venture (JV) partner Dabur Invest
Corporation for Rs 940 crore (US$ 141.3 million), thereby increasing their stake to 49 per
cent in the company.
➢ Insurance firm AIA Group Ltd has decided to increase its stake in Tata AIA Life Insurance
Co Ltd, a joint venture owned by Tata Sons Ltd and AIA Group from 26 per cent to 49 per
cent.
➢ Canada-based Sun Life Financial Inc plans to increase its stake from 26 per cent to 49 per
cent in Birla Sun Life Insurance Co Ltd, a joint venture with Aditya Birla Nuvo Ltd,
through buying of shares worth Rs 1,664 crore (US$ 244.14 million).
➢ Nippon Life Insurance, Japan’s second largest life insurance company, has signed
definitive agreements to invest Rs 2,265 crore (US$ 332.32 million) in order to increase its
stake in Reliance Life Insurance from 26 per cent to 49 per cent.
➢ Bennett Coleman and Co. Ltd (BCCL), the media conglomerate with multiple publications
in several languages across India, is set to buy Religare Enterprises Ltd’s entire 44 per cent
stake in life insurance joint venture Aegon Religare Life Insurance Co. Ltd. The foreign
partner Aegon is set to increase its stake in the joint venture from 26 per cent to 49 per
cent, following government’s reform measure allowing the increase in stake holding by
foreign companies in the insurance sector.
➢ GIC Re and 11 other non-life insurers have jointly formed the India Nuclear Insurance Pool
with a capacity of Rs 1,500 crore (US$ 220.08 million) and will provide the risk transfer
mechanism to the operators and suppliers under the CLND Act.

7
 ➢ State Bank of India has announced that BNP Paribas Cardiff is keen to increase its stake in
SBI Life Insurance from 26 per cent to 36 per cent. Once the foreign joint venture partner
increases its stake to 36 per cent, SBI’s stake in SBI Life will get diluted to 64 per cent.

2.4. Life Insurance Market Appears Vibrant

➢ The life insurance market grew from US$ 10.5 billion in FY02 to US$ 27.5 billion in FY16
➢ Over FY02–FY16, life insurance premiums expanded at a CAGR of 7.5 per cent.

➢ The life insurance industry has the potential to grow 2-2.5 times by 2020 in spite of multiple
challenges supported by long-term trends and fundamentals underlying household savings.

2.5. Government Initiatives

The Union Budget of 2017-18 has made the following provisions for the Insurance Sector:

➢ The Budget has made provisions for paying huge subsidies in the premiums of Pradhan
Mantri Fasal Bima Yojana (PMFBY) and the number of beneficiaries will increase to 50
per cent in the next two years from the present level of 20 per cent. As part of PMFBY,
Rs.9, 000 crore (US$ 1.35 billion) has been allocated for crop insurance in 2017-18.
➢ By providing tax relief to citizens earning up to Rs.5 lakh (US$ 7500), the government will
be able to increase the number of taxpayers. Life insurers will be able to sell them insurance
products, to further reduce their tax burden in future. As many of these people were
understating their incomes, they were not able to get adequate insurance cover.
➢ Demand for insurance products may rise as people’s preference shifts from formal
investment products post demonetization.
➢ The Budget has attempted to hasten the implementation of the Digital India initiative. As
people in rural areas become more tech savvy, they will use digital channels of insurers to
buy policies.
➢ The Government of India has taken a number of initiatives to boost the insurance industry.
Some of them are as follows:

8
➢ The Union Cabinet has approved the public listing of five Government-owned general
insurance companies and reducing the Government’s stake to 75 per cent from 100 per
cent, which is expected to bring higher levels of transparency and accountability, and
enable the companies to raise resources from the capital market to meet their fund
requirements.
➢ The Insurance Regulatory and Development Authority of India (IRDAI) plans to issue
redesigned initial public offering (IPO) guidelines for insurance companies in India, which
are to look to divest equity through the IPO route.
➢ IRDAI has allowed insurers to invest up to 10 per cent in additional tier 1 (AT1) bonds that
are issued by banks to augment their tier 1 capital, in order to expand the pool of eligible
investors for the banks.
➢ IRDAI has formed two committees to explore and suggest ways to promote e-commerce
in the sector in order to increase insurance penetration and bring financial inclusion.
➢ IRDAI has formulated a draft regulation, IRDAI (Obligations of Insures to Rural and
Social Sectors) Regulations, 2015, in pursuance of the amendments brought about under
section 32 B of the Insurance Laws (Amendment) Act, 2015. These regulations impose
obligations on insurers towards providing insurance cover to the rural and economically
weaker sections of the population.
➢ The Government of Assam has launched the Atal-Amrit Abhiyan health insurance scheme,
which would offer comprehensive coverage for six disease groups to below-poverty line
(BPL) and above-poverty line (APL) families, with annual income below Rs 500,000 (US$
7,500).
➢ The Uttar Pradesh government has launched a first of its kind banking and insurance
services helpline for farmers where individuals can lodge their complaints on a toll free
number.
➢ The select committee of the Rajya Sabha gave its approval to increase stake of foreign
investors to 49 per cent equity investment in insurance companies.
➢ Government of India has launched an insurance pool to the tune of Rs 1,500 crore (US$
220.08 million) which is mandatory under the Civil Liability for Nuclear Damage Act
(CLND) in a bid to offset financial burden of foreign nuclear suppliers.

9
 ➢ Foreign Investment Promotion Board (FIPB) has cleared 15 Foreign Direct Investment
(FDI) proposals including large investments in the insurance sector by Nippon Life
Insurance, AIA International, Sun Life and Aviva Life leading to a cumulative investment
of Rs 7,262 crore (US$ 1.09 billion).
➢ IRDAI has given initial approval to open branches in India to Switzerland-based Swiss Re,
French-based Scor SE, and two Germany-based reinsurers namely, Hannover Re and
Munich Re.

2.6. Road Ahead

India’s insurable population is anticipated to touch 750 million in 2020, with life expectancy
reaching 74 years. Furthermore, life insurance is projected to comprise 35 per cent of total savings
by the end of this decade, as against 26 per cent in 2009-10.
The future looks promising for the life insurance industry with several changes in regulatory
framework which will lead to further change in the way the industry conducts its business and
engages with its customers.
Demographic factors such as growing middle class, young insurable population and growing
awareness of the need for protection and retirement planning will support the growth of Indian life
insurance.

Fig.2.1. Insurance Sector Growth Fig.2.2. Market Share of Insurance Sector

Source: IRDA Annual Report, Tech SCi Research

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 CHAPTER 3

COMPANY DETAILS- BIRLA SUN LIFE INSURANCE

Established in 2000, Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between
the Aditya Birla Group, a well-known and trusted name globally amongst Indian conglomerates
and Sun Life. Financial Inc, leading international financial services organization from Canada. The
local knowledge of the Aditya Birla Group combined with the domain expertise of Sun Life
Financial Inc., offers a formidable protection for its customers' future.

With an experience of over 17 years, BSLI has contributed significantly to the growth and
development of the life insurance industry in India and currently ranks amongst the top 7 private
life insurance companies in the country. Known for its innovation and creating industry
benchmarks, BSLI has several firsts to its credit. It was the first Indian Insurance Company to
introduce "Free Look Period". “IRDA” made it mandatory for other life insurance companies.
Additionally, BSLI pioneered the launch of Unit Linked Life Insurance plans amongst the private
players in India. To establish credibility and further transparency, BSLI also enjoys the prestige to
be the originator of practice to disclose portfolio on monthly basis. These category development
initiatives have helped BSLI be closer to its policy holder’s expectations, which gets further
accentuated by the complete bouquet of insurance products (viz. pure term plan, life stage
products, health plan and retirement plan) that the company offers.

3.1. Vision

“To be a leader and role model in a broad based and integrated financial services business, actively
contribute to the social and economic development of the communities in which we operate. In so
doing build a better, sustainable way of life for the weaker and marginalized sections of society
and raise the country's human development index - Mrs. Rajashree Birla, Chairperson, Aditya Birla
Centre for Community Initiatives and Rural Development.

3.2. Values

Integrity, Commitment, Passion, Seamlessness, Speed

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3.3. CSR philosophy

Reaching out to underserved communities is part of our DNA. They believe in the trusteeship
concept. This entails transcending business interests and grappling with the "quality of life"
challenges that underserved communities face and working towards making a meaningful
difference to them.

All projects are identified in consultation with the community in participatory manner, literally
sitting with them and gauging their basic needs. They follow participatory rural appraisal mapping
process. Subsequently, based on a consensus and in discussion with the village panchayats, and
other stakeholders, projects are prioritized. Arising from this, they focus areas that have emerged
are Education, Health care, Sustainable livelihood, Infrastructure development, and espousing
social causes. All of their community projects/programmes are carried out under the aegis of
‘Aditya Birla Centre for Community Initiatives and Rural Development’. Their activities are in
line with Schedule VII of the companies Act, 2013.

Birla Sun Life Insurance Company Limited (BSLI) is a vertical of business of the Aditya Birla
Financial Services Group (ABFSG). It is a joint venture between the Aditya Birla Nuvo Limited,
a leading Indian conglomerate, and Sun Life Financial Inc., one of the leading international
financial services organizations from Canada. BSLI ranks 5th in India among the private life
insurers in terms of annual premium- equivalent with a market share of 7.1%* for FY17. During
2016-17, it recorded a gross premium income of Rs. 5,724 Crore, registering a y-o-y growth of 3%
and posted a net profit of Rs. 123 Crore. Its assets under Management are Rs. 34, 523 Crore as on
FY 17. BSLI has a nation-wide distribution presence through 409 branches, 6 bank assurance
partners, over 73,000 direct selling agents and more than 150 corporate agents and brokers. BSLI
is meeting its growth capital and solvency requirements through internal accruals and has not
required any capital infusion during past five years.

12
3.4. Products

The company offers a complete range of protection solutions, children's future solutions, wealth
with protection solutions, health and wellness solutions, retirement solutions and savings with
protection solutions.

3.5. Customers for Birla Sun life insurance

Birla Sun life deals in both life and general insurance so the customers for both the categories of
insurance are different.

End users of life insurance include Individuals irrespective of their demographics such as age income
occupation etc. End users of the general insurance include individuals if the insurance pertains to be a
health cover and owner of the assets insured in case of other type of general insurance

Fig.3.1. Office located at Indira Nagar

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3.6. ORGANISATION STRUCTURE
Birla Sun life Insurance follows a top-down hierarchy structure with CEO- Chief Executive Officer
at its top and Insurance Advisor at the base.

CEO-Chief
Executive Officer

CFO-Chief Financial
Officer

CDO-Chief Design
Officer

HOS-Head Of Sales

ZM-Zonal Manager

RM-Regional
Managers

TMS-Territory
Managers

BH-Branch Heads

BM-Branch
Managers

BDM/BP-Business Development
Manager/Business Partner

SAM-Senior Agency
Manager

Fig.3.2.Organization Chart of BLSI

Source: insurance.birlasunlife.com

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 CHAPTER 4

INTERNSHIP ACTIVITIES

The main motto to undergo an internship is to get a practical exposure to the industrial activities
and to experience a real time environment which helps the intern in removing fears and confusions
which naturally do persist before getting placed in a full-fledged job. In eight weeks of internship
the capability of absorbing multifold because of the intern’s enthusiasm to give the best. The
activities given during this period not only helps the interns in relating to the theoretical concepts
in the real sense but also enhance the ability to use the resources and to deal with the people.

Much as expected, internship days at Birla Sun life insurance has taught many things both related
to work as well as the things other than work. Time maintenance, Knowledge about the means of
transport depending on city traffic, Team work, People engagement, Work distribution etc. were
the by-products of the activities assigned.

Following table shows the key activities and methods used to carry out the same:

4.1 Table Related to activities Performed

Week Key activity Activity type Method of Key Learning

No. execution

To get basic Went through Learnt about origin of

knowledge about videos from banks, US involvement
1.
US financial Investopedia and in controlling world
crisis and Single articles on the economy, Rise and fall
condition of topics of Lehmann brothers,

15
 Lehmann Impact of crisis on
Brothers globe.

Went through the Significance of issuing

prospectus of IPO, FPO, participants
To prepare a Group: Group
companies and of IPO like Promoters,
2.
detailed size 3,
shortlisted Coal Retailers, SEBI, angel
presentation on Presentation
India, Just Dial and Investors, QIBs, HNIs
companies which type: 1 company
Bharti Infra for etc. Use of RHPs,
went for each
final presentation, DRHPs, price bands,
IPO(Initial Public
observed the working days etc.
Offering) after
performance of
2010
stocks from 2010.

3 Entrepreneurship Group Activity: Brainstormed with To empathize with

Activity Part 1 : Group size 3. the team mates, others for getting better
To come up with enquired the near ideas, SW-SO-WS-WO
Involvement of
new business and dear ones to table analysis, To
each group
idea, to do know the areas concentrate more on
member was
complete SWOT they face problem Weakness-Threat for
necessary
analysis of the in-order to get reducing errors while
idea better ideas, and framing a model
went through
major failure &
successful projects
and their SWOT
analysis.

16
 Entrepreneurship Group Activity: Worked on the Significance of Target
Activity Part 2 : Group size 3. Business Structure audience, cost revenue
To come up with by analyzing the models for a business
Involvement of
Business key players idea, expectations of
each group
Structure involved, Business investors, things to be
member was
supporting the type, Segregated taken care while
necessary
idea and to the target presenting to investors,
present it to Audience, Listed proper distribution of
investors for the areas to start work with team mates,
getting funds the business for needs of people and the
more profits, model’s contribution in
concentrated more fulfilling their needs.
on cost structure
and revenue
model.

5 Fundamental & Went through sites Came to know about

Technical like policy bazar when and where to use
Individual
Analysis of and others to get which type of analysis,
companies details of capital, Significance of P/E
belonging to two ratios etc. (for ratios, EPS,
different sectors fundamental significance of candle
analysis), observed sticks like dozi, mori
the stock market bozo, inverted hammer,
graph in deep to 3 white soldiers etc. in
get the pattern of both bullish and bearish
candle sticks of the market. Basic idea of
companies (for when and in which
technical analysis). company to invest
(particularly in these
sectors).

17
6 Introduction Got tips from the
about of the four reporting manager
Learnt the importance
main products of on how to deal
of each product and
the company to Individual with the products,
benefits associated with
be dealt by empathized in the
them, Learnt to
interns, Prepared shoes of client and
segregate the targets
the list of clarified the
category wise
potential answers for FAQs,
investors Mapped the
potential client
according to the
product type and
premium amount.

7 Field Work: To Individual/group Cold Calls to Learnt the demands and

get the clients. Mapped persons, expectations of the
direct engagement people from insurance
with the mapped sector, significance of
clients in and socio-economic factors
around Banglore. while framing policies,
way to approach people.

8 Prepared Live Framed a Google Got to know about the

questionnaire for docs. difficulties in
the project and Questionnaire and explaining the need of
analyzed the Individual circulated amongst filling the questionnaire
response. the approached to the people,
clients through Analyzing and knowing
various means of the authentication of the
media and

18
 analyzed the responses, dealing with
responses in Google forms.
various aspects.

Table 1. Activities during Internship.

4.2. Few terms used in IPO

➢ IPO- Initial public offering (IPO) or stock market launch is a type of public offering in
which shares of a company usually are sold to institutional investors that in turn, sell to the
general public, on a securities exchange, for the first time. Through this process, a privately
held company transforms into a public company. Initial public offerings are mostly used
by companies to raise the expansion of capital, possibly to monetize the investments of
early private investors, and to become publicly traded enterprises. A company selling
shares is never required to repay the capital to its public investors. After the IPO, when
shares trade freely in the open market, money passes between public investors.

➢ FPO- A follow-on offering (often but incorrectly called a secondary offering) is an

issuance of stock subsequent to the company's initial public offering. A follow-on offering
can be either of two types (or a mixture of both): dilutive and non-dilutive. A secondary
offering is an offering of securities by a shareholder of the company (as opposed to the
company itself, which is a primary offering). A follow-on offering is preceded by release
of prospectus similar to IPO: a Follow-on Public Offer (FPO). For example, Google's
initial public offering (IPO) included both a primary offering (issuance of Google stock
by Google) and a secondary offering (sale of Google stock held by shareholders, including
the founders).

➢ QIBs- A qualified institutional buyer (QIB) is a purchaser of securities that is deemed

financially sophisticated and is legally recognized by securities market regulators to need
less protection from issuers than most public investors. Certain private placements
of stocks and bonds are made available only to qualified institutional buyers to limit
regulatory restrictions and public filing requirements.

19
➢ Angel Investors- An angel investor (also known as a business angel, informal
investor, angel funder, private investor, or seed investor) is an affluent individual who
provides capital for a business start-up, usually in exchange for convertible
debt or ownership equity. A small but increasing number of angel investors invest online
through equity crowd-funding organize themselves into angel groups or angel
networks to share research and pool their investment capital, as well as to provide advice
to their portfolio companies.
➢ Promoter- A person or a group of person or institutions promoting a start-up.
➢ RHP- A red herring prospectus, as a first or preliminary prospectus, is a document
submitted by a company (issuer) as part of a public offering
of securities (either stocks or bonds). Most frequently associated with an initial public
(IPO), this document, like the previously submitted Form S-1 registration statement, must
be filed with the Securities and Exchange Commission (SEC).A red herring prospectus is
issued to potential investors, but does not have complete particulars on the price of the
securities offered and quantum of securities to be issued.
➢ DHRP- a Draft Red Herring Prospectus, or offer document, is when a company that is
planning to raise money from the public provides detailed information about its business
operations and financials. This includes details about its promoters, reason for raising
money, how the money will be used, risks involved with investing in the company and so
on. Investors should bear in mind that it does not provide information about the price or
size of the offering. The issuer company approaches a merchant banker to prepare the offer
document. Merchant bankers take care of the legal compliance issues as well ensure that
prospective investors are aware and kept in the loop of the public issue.
➢ Merchant Bankers- Merchant bankers provide advice to entrepreneur right from the stage
of conception of the project till the commencement of production. Merchant bankers are in
charge of the issue process. They act as intermediaries between the company and the
investors. They are also responsible for preparing the prospectus and marketing the issue.
➢ HNIs-High net worth individual (HNI) -is a classification used by the financial services
industry to denote an individual or family with high net worth. The cutoff for this
designation is imprecise i.e. some companies use the term to denote individuals with over
$100,000 in assets, while other companies use $500,000. Although there is no precise

20
 definition of how rich somebody must be to fit into this category, high net worth is
generally quoted in terms of liquid assets over a certain figure. The categorization is
relevant because high net worth individuals generally qualify for separately managed
investment accounts instead of regular mutual funds. HNIs are in high demand by private
wealth managers. The more money a person has, the more work it takes to maintain and
preserve those assets. These individuals generally demand (and can justify) personalized
services in investment management, estate planning, tax planning etc.
➢ Virtual Bank- Internet based financial institution which offers all banking facilities
through automated machines without any walk-in premise.
➢ Retail Investor- A retail investor is an individual investor possessing shares of a given
security. Retail investors can be further divided into two categories of share ownership.

1. A Beneficial Shareholder is a retail investor who holds shares of their securities in the
account of a bank or broker, also known as “in Street Name.” The broker is in possession
of the securities on behalf of the underlying shareholder.
2. A Registered Shareholder is a retail investor who holds shares of their securities directly
through the issuer or its transfer agent. Many registered shareholders have physical copies
of their stock certificates.

➢ Price Band- A price band is a value-setting method in which a seller indicates an upper
and lower cost range, between which buyers are able to place bids. The price band's floor
and cap provide guidance to the buyers. This type of auction pricing technique is often
used with initial public offerings (IPOs).
➢ Working Days-Subscription list for public issues shall be kept open for at least 3
working days and not more than 10 working days. In case of Book built issues, the
minimum and maximum period for which bidding will be open is 3-7 working days
extendable by 3 days in case of a revision in the price band.

21
 4.3. FUNDAMENTAL & TECHNICAL ANALYSIS

These terms refer to two different stock-picking methodologies used for researching and forecasting the
future growth trends of stocks. Like any investment strategy or philosophy, both have their advocates and
adversaries.

• Fundamental analysis is a method of evaluating securities by attempting to measure the

intrinsic value of a stock. Fundamental analysts’ study everything from the overall
economy and industry conditions to the financial condition and management of companies.
• Technical analysis is the evaluation of securities by means of studying statistics generated
by market activity, such as past prices and volume. Technical analysts do not attempt to
measure a security's intrinsic value but instead use stock charts to identify patterns and
trends that may suggest what a stock will do in the future.

4.3.1. Few terms related

➢ EPS: Earnings per share (EPS) is the portion of a company's profit allocated to each
outstanding share of common stock. Earnings per share serves as an indicator of a
company's profitability.

Earnings per share is generally considered to be the single most important variable in
determining a share's price. It is also a major component used to calculate the price-to- earnings
valuation ratio. An important aspect of EPS that's often ignored is the capital that is required to
generate the earnings (net income) in the calculation. Two companies could generate the same
EPS number, but one could do so with less equity (investment) - that company would be more
efficient at using its capital to generate income and, all other things being equal, would be a
"better" company.

22
 ➢ PE ratio: Price Earnings ratio is the ratio of company’s current share price to its earnings per
share. It gives us an idea of what the market is willing to pay for company’s earnings. It also
indicates how the stock is valued in the market.
PE ratio = Stock Price/Earnings per share

Example
Current market Price Rs 100
EPS Rs 10
P/E: 10 (100/10)
Generally, a high PE ratio suggests that market participants are bullish on the stock and expect the
company to post higher earnings growth going forward. However, it can also be interpreted as an overpriced
stock in some cases. A low PE ratio can either be interpreted as an undervalued stock or market participants
are not too bullish on the company’s future earnings growth. The above may not always hold true as the PE
ratio varies from industry to industry. Traditionally there are certain sectors like diamonds, fertilizers or
sectors that are very cyclical and command a low PE ratio. There are certain sectors like FMCG, Pharma,
IT that normally have a higher PE. So, the PE ratio of a company should either be compared with its peers
having parallel business activity and of similar size or with its historical PE to evaluate whether a stock is
undervalued or overvalued.

➢ Market Capitalization: Market capitalization refers the total dollar market value of a
company's outstanding shares. Commonly referred to as "market cap," it is calculated by
multiplying a company's shares outstanding by the current market price of one share. The
investment community uses this figure to determine a company's size, as opposed to using
sales or total asset figures.

23
4.3.2. Candle Stick analysis:
A candlestick is a chart that displays the high, low, opening and closing prices of a security for a
specific period. The wide part of the candlestick is called the "real body" and tells investors
whether the closing price was higher or lower than the opening price. Black/red indicates that the
stock closed lower and white/green indicates that the stock closed higher.

Fig.4.1. Candle Stick Model

Source: http://www.investopedia.com/terms/c/candlestick.asp

The candlestick's shadows show the day's high and low and how they compare to the open and
close. A candlestick's shape varies based on the relationship between the day's high, low, opening
and closing prices.

Candlesticks reflect the impact of investor sentiment on security prices and are used by technical
analysts to determine when to enter and exit trades. Candlestick charting is based on a technique
developed in Japan in the 1700s for tracking the price of rice. Candlesticks are a suitable technique
for trading any liquid financial asset such as stocks, foreign exchange and futures.

Long white/green candlesticks indicate there is strong buying pressure; this typically indicates
price is bullish, however, they should be looked at in the context of the market structure as
opposed to individually. For example, a long white candle is likely to have more significance if it
forms at a major price support level. Long black/red candlesticks indicate there is significant
selling pressure. This suggests the price is bearish. A common bullish candlestick reversal
pattern, referred to as a hammer, forms when price moves substantially lower after the open, then

24
rallies to close near the high. The equivalent bearish candlestick is known as a hanging man.
These candlesticks have a similar appearance to a square lollipop and are often used by traders
attempting to pick a top or bottom in a market. Two-Day Candlestick Trading Patterns

There are many short-term trading strategies based upon candlestick patterns. The engulfing
pattern suggests a potential trend reversal; the first candlestick has a small body that is completely
engulfed by the second candlestick. It is referred to as a bullish engulfing pattern when it appears
at the end of a downtrend, and a bearish engulfing pattern at the conclusion of an uptrend. The
harami is a reversal pattern where the second candlestick is entirely contained within the first
candlestick and is opposite in color. A related pattern, the harami cross has a second candlestick
that is a doji; when the open and close are effectively equal.

4.3.3. Three-Day Candlestick Trading Patterns

An evening star is a bearish reversal pattern where the first candlestick continues the uptrend. The
second candlestick gaps up and has a narrow body. The third candlestick closes below the midpoint
of the first candlestick. A morning star is a bullish reversal pattern where the first candlestick is
long and black/red-bodied, followed by short candlestick that has gapped lower; it is completed
by a long-bodied white/green candlestick that closes above the midpoint of the first candlestick.

25
4.3.4. Rising 3 methods

A bullish candlestick pattern that is used to predict the continuation of the current uptrend. This
pattern is formed when the candlesticks meet the following characteristics.

Fig.4.2. Rising3 method

Source: http://www.investopedia.com/terms/c/candlestick.asp

1. The first candle in the pattern is a long white candlestick within a defined uptrend.
2. A series of descending small-bodied candlesticks that trade within the range of the first
candlestick.
3. A long white candlestick creates a new high, which suggests that bullish are back in control of
the direction

The series of small-bodied candlesticks are regarded as a period of consolidation before the uptrend
is able to continue. This pattern is important because it shows traders that sellers still do not have
enough conviction to reverse the trend and it is used by some active traders as a signal to add to
their positions.

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4.4. BUSINESS MODEL CANVAS:

Business Model Canvas is a strategic management and lean startup template for developing new
or documenting existing business models. It is a visual chart with elements describing a firms or
product's value proposition, infrastructure, customers, and finances. It assists firms in aligning
their activities by illustrating potential trade-offs.

Fig.4.3. BUSINESS CANVAS MODEL

Source: HBR Case Study on -A better way to think about Business Model

27
4.4.1. Finances
Cost Structure: This describes the most important monetary consequences while operating
under different business models. A company's DOC.

Classes of Business Structures:

➢ Cost-Driven – This business model focuses on minimizing all costs and

having no frills. e.g. Low-cost airlines
➢ Value-Driven – Less concerned with cost, this business model focuses on
creating value for their products and services. e.g. Louis Vuitton, Rolex

➢ Characteristics of Cost Structures:

• Fixed Costs – Costs are unchanged across different applications. e.g. salary,
rent
• Variable Costs – These costs vary depending on the amount of production
of goods or services. e.g. music festivals
• Economies of Scale – Costs go down as the amount of good are ordered or
produced.
• Economies of Scope – Costs go down due to incorporating other businesses
which have a direct relation to the original product.

➢ Revenue Streams: The way a company makes income from each customer segment.
Several ways to generate a revenue stream:

➢ Asset Sale – (the most common type) Selling ownership rights to a physical good.
e.g. retail corporations
➢ Usage Fee – Money generated from the use of a particular service e.g. UPS
➢ Subscription Fees – Revenue generated by selling a continuous service. e.g.
Netflix

28
➢ Lending/Leasing/Renting – Giving exclusive right to an asset for a particular
period. e.g. Leasing a Car
➢ Licensing – Revenue generated from charging for the use of a protected intellectual
property.
➢ Brokerage Fees – Revenue generated from an intermediate service between 2
parties. e.g. Broker selling a house for commission
➢ Advertising – Revenue generated from charging fees for product advertising

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 CHAPTER 5

INTERNSHIP RESEARCH

5.1. Statement of Problem

There are many companies offering exclusive insurance products. It is hard for the common man to think
and invest. Most of the people without giving second thought may go to LIC policies, they being so
common and popular. Birla sun life insurance is also an equally safe and secure policies with decent
returns. But the performance of only few products is good. Do investors really think before going for any
particular product? Do they take decisions under the influence of age? These are the key questions related
to under performance or over performance of the product.

5.2. Scope of the Study

The scope of the study is limited to only insurance and no other financial statements are considered. The
study will help us know the opinion on various products of Birla Sun life insurance and the key points
which attracts them towards a particular policy. The above study is done with reference to Birla Sun life
Insurance, only four policies are being taken in consideration Child Solution, Tax Solution, Wealth
Solution and Retirement solution. This would also try to cover the general problems people undergo in this
sector.

5.3. Products covered

5.3.1. Child Solution BLSI:

From the moment you hold your baby so carefully in your arms, you want to protect him/her from the
vulnerability and uncertainties of life. You question yourself time to time and again
as your child grows up and looks for success in this fast-paced world, he will always look up to you for
support and inspiration. He may want to discover his true passion and explore unconventional career
options. He might want to try new things until he is sure about his career path. You will need to keep pace
with his changing goals, you will need a plan that gives your child the confidence to pursue and
discover his/her real passion. Presenting, BSLI Vision Star Plan, so that you can ensure that your child
doesn't miss out on opportunities due to insufficient funds.

30
 5.3.1.1. An illustration for child solution:
If at the age of 32, when your child is just born, you start investing a fraction of your income –
Rs. 5,000 monthly, for a period of 12 years with a sum assured of Rs. 8,89,683. It will strengthen
your child's wings when he is ready to take flight towards a better tomorrow. He will receive

• At the age of 17 years & 19 years, when your child's dreams are finally taking shape. You can get
an amount of approx. Rs. 1.78 Lakhs
• At the age of 21 years, you get an amount of approx. Rs. 2.67 Lakhs to support him as he goes
after his dreams.
• And finally, on your child turning 23, you get an amount of approx. Rs. 12 Lakhs @ 8% interest
rate and Rs. 4.3 lakhs @ 4% to give him the right platform as he takes off in his career.
All this while, you have the flexibility to get the benefits of your payouts as per your child's need
and deferring the payouts if required. During this time, if something happens to you, the policy
continues in your absence and your child receives the amount he is eligible for, at the time of
maturity. Thus, you can relax with the surety that your child will never have to compromise on his
future.

Note: Illustration is assuming 8% and 4% return. These assumed rates of return shown in the
illustration above are not guaranteed and they are not the upper or lower limits of what you might
get back, as the value of your policy is dependent on several factors including future investment
performance.

5.3.1.1.2. Steps to buy

Step 1 Choose your Sum Assured

Step 2 Choose your Assured Payout Option

Step 3 Choose your Premium Paying Term

Table 5.1.a. Steps to buy Child Solution

31
 5.3.1.3. Plan At Glance

Entry Age (Age on last birthday) : 18 – 55 years

Max Maturity Age : 75 years

For Option A - 16 years (maximum of 23 years)

Minimum Policy Term :
For Option B - 14 years (maximum of 21 years)

Premium Paying Term : 5 -12 years

Minimum Sum Assured : Rs. 100,000

Premium Frequency : Annual, Semi-annual, Quarterly & Monthly

Table 5.1.b. Child Solution Plan at Glance

5.3.2. Retirement Solution of BLSI:

Your retirement years are your second innings, a new life where you leave behind your working
life and responsibilities and find time for yourself. During this time, you want to be empowered
to do all that you could not while working - exotic holidays, time with family and loved ones,
pilgrimage etc. However, to enable yourself to have a worry-free retirement, you need to plan
right, so that you can truly enjoy your golden years.

Presenting, BSLI Empower Pension – SP Plan this plan will help you gain financial freedom
during your second innings. The plan helps you focus on your goals and enhances your savings
for a future free from worries.

BSLI Empower Pension – SP Plan is a unit linked, non-participating pension plan.

A simple, hassle free plan that invests your single premium and the investment returns thereof
into a corpus for your retirement. This period of retirement corpus generation is called the
"accumulation period." Once you decide to vest your policy, you will enter the "income
phase" where your corpus will be used to purchase a stream of regular income payable for the
rest of your lifetime.

32
During the accumulation period we offer our Smart Option– an option where you allow us to
manage and administer your investment portfolio on your behalf, based on your chosen vesting
date and risk profile to meet your retirement objectives.

Your accumulated retirement corpus is utilized at vesting (retirement) to purchase an annuity

option with us prevailing at that time.

5.3.2.1. Steps to buy

Step 1 Choose your single premium amount

Step 2 Choose your vesting date
Choose your risk profile
Step 3
Aggressive | Moderate | Conservative

Table 5.2.a. Steps to buy Retirement Solution at BLSI

5.3.2.2. Plan at a glance

Entry Age (age last birthday) : 25 - 70 years

Accumulation Period : 5 – 20 years; subject to maximum vesting age of 80 years
Pay Term : Single pay
Single Premium : Minimum Rs. 1,00,000; Max - No limit

Table 5.2.b. Retirement Solution Plan of BLSI

33
5.3.3. Wealth Solution:

In order to build a better life and realize your dreams, you always need to plan. That's why you
need a savings plan that helps you attain your goals with your changing life stage and can be
customized to match your needs while giving you peace of mind. Introducing Birla Sun Life
Insurance Wealth Secure Plan that combines long term savings and whole life coverage specially
designed for you to focus on your goals and maximize savings for your future.

5.3.3.1 Example of Wealth Plan at BLSI

Aniket Oberoi is a healthy 35-year-old senior software engineer. A father of two, his parents still
live with him. Ensuring his family gets the best of everything is his prime concern. Although this
results in his own passions tacking a back seat. So, to ensure that his golden years remain truly
golden he opts for the Wealth Secure Plan for a period of 20 years. He pays 2,40,000 annual
premiums regularly and gains a life cover that's 17.5% times as big as his premium. The moment
he turns 55, he gains Rs.50,000(as per 8%) (1) or Rs.15,000(as per 4% every month as a regular
source of wealth. This amount is 2.5 times as big as his premium and is entirely tax-free. Apart
from this, Aniket also enjoys this cover till the age of 100 and the freedom to pursue his dreams.
In case of his untimely death, his family also gets the total sum assured.

The illustration is based on 4% or 8% rate of return. The rate of returns mentioned above are
bound to change in future. These assumed rates of return shown in the illustration above are not
guaranteed and they are not upper or lower limits of what you might get back, as value of your
policy is dependent on number of factors including future investment performance.
Tax benefits are subject to changes in the tax law, please consult your tax advisor for more
details.
5.3.3.2. Key Features:
1. Pay premiums for a limited term and get life cover for whole life
2. Flexibility to add top-ups whenever you have additional savings
3. Flexibility of partial withdrawals to meet any emergency fund requirements
4. Flexibility to choose from 3 investment options to suit your investment needs
5. Tax benefits under section 80C and section 10(10D) of the Income Tax Act, 1961

34
 5.3.3.3 Working
1. Choose the Basic Premium
2. Based on your insurance needs, you can increase the amount of protection by opting for 150%,
200%, 250% or 300% of the minimum Basic Sum Assured.
3. Choose the mode of payment i.e. monthly, quarterly, semi-annually or annually
4. Choose Investment Option

5.3.3.4. Quick View

Policy Term : Whole Life

Entry Age : 1 to 60 years
Pay Term : 5 to 30 years
Attained age at the end of premium paying term
Minimum PPT :
must be 18 years & more
Attained age at the end of premium paying term
Maximum PPT :
must be 75 years or less

Minimum Rs.20,000 p.a. if paid annually

Minimum Rs.30,000 p.a. if paid semi-annually
Basic Premium :
Minimum Rs.60,000 p.a. if paid monthly or
quarterly

Top-up Premium : Minimum Rs.5,000

Table 5.3.Quick view of Wealth Solution at BLSI

5.3.4. Tax Solution:

All the above plan covers tax exemptions. A special policy exclusively meant for tax to exist. Premium
payment is for 12 years. Where in you receive periodic returns and the maturity period is also flexible.
Returns can be reaped in 5,10,15,20 years respectively. Final maturity can be claimed by 25th year.

Source: BLSI official website (All the tables and information in this section)

35
 5.4. Need for the study

➢ In order to understand the opinion of people about the Birla Sun life products this study is
necessary.
➢ Consumer behavior and consumer demographics need to be analyzed before sound product
formation and marketing plans are developed.
➢ Finding out the stronger and weaker portions of the product USPs is necessary to improvise.
Analyzing the problems undergone by the investors in the field of insurance helps in giving
better assistance.

5.5. Objective of the study

➢ To know the opinion of insurance products and complications faced in the sector.
➢ To study the insurance products offered by Birla Sun life Insurance and significance.
➢ To analyze the selection pattern of insurance products of the Birla Sun life insurance.
➢ To know the public awareness about Birla Products.

5.6. Research methodology

As a part of internship, four products namely Child Solution, Wealth Solution, Retirement Solution, Tax
Solutions were given to deal with. Approaching clients and explaining about these four policies in details
formed a strong base in conducting the research. Based on the reactions and frequently asked questions a
self -made questionnaire was prepared and was sent to almost all the approached persons. Thus, making
the process systematic. Based on the answers given by the respondent’s conclusions are made and the
research is supported by the graphs based on responses.

The study is carried out to understand the behavioral pattern customer demographics with reference to fur
USP products of Birla Sun life insurance private limited. Exploratory research technique is used for the
study. The research covers around 102 people belonging to various demographics.

36
 5.7. Population

Population included 102 people belonging to different socio-economic demographics.

5.8. Sampling unit

Since the data is collected through the personal contacts all the respondents to the survey belong to different
age groups and different income groups as well.

5.9. Sampling elements

Individual respondents are the sampling elements.

5.10. Sample size

The sample size consists of 102 respondents.

5.11. Sampling Technique Adopted

Convenient sampling

5.12. Analysis

The data for study was collected both from primary and secondary data sources. Percentages and graphs
are shown to clearly represent the data

5.13. Tools used for data collection

Self-designed questionnaire is used to study the evaluation of factors affecting the consumer demographics.

5.14. Tools used for data analysis

To fulfil the objectives of the study Pie charts, Bar diagrams, Graphs are used.

37
5.15. Findings and Inferences

Fig 5.1.Pie Chart showing Gender

From Fig.5.1. It can be inferred that a greater number of males are interested in knowing about

insurance. Females who invest in insurance are mostly working class

Fig5.2. Pie Chart showing Age Group

From Fig.5.2. It can be inferred that people of age group 18-30 years are more curious to insurance
sector and are concerned in securing future.

30-60 year old prefer insurance for the safeguard of other dependents.

38
 Fig 5.3. Pie Chart Showing occupation status

From Fig.5.3.It can be inferred that people working in private sector are interested in going for external
insurance compared to government sector employees.

The government employees joined post 2004 i.e. after the ending of pension scheme, are more interested in
insurance.

Students who have excess amount as pocket money go for general insurances.

Fig.5.4. Pie Chart Showing Annual Income

Inference: Most of the people, interested in insurance belong to a very young age group, so they would
be at the starting stage of the career. Thus, annual income is between 0-5 lakhs. Others are either
choosing insurance as another alternate source of investing or want to invest high premiums in
insurance.

39
 Fig.5.5. Pie Chart for Marital Status.

From 5.5. It can be inferred that most of the unmarried people tend to start insuring themselves so that
they can enjoy the benefits at the optimum time. Married people who were previously deferred of
insurance would go for it. Amongst married people due reasons like ensuring child’s security, wealth
etc. people go for second insurance.

Fig.5.6. Pie Chart showing number of dependents in the family.

From Fig.5.6. It can be said that 32% of the people who are independent go for insurance to secure
their own life, as they have concern for self. Maximum percentage of people have two or more than
two dependents in family and it becomes necessary to go for secured investments like insurance.

40
 Fig.5.7. Pie Chart Showing Insurance Status.

From Fig.5.7. It can be inferred that only 41% people are insured. There are yet more than 59%
people to be insured. It can be easily said that most of the people are in dilemma to go for
insurance as a mode of investment or not. In today’s fast world people feel insurance as dead
investment and ignore the thoughts of thinking about death benefits. Most of them are unaware
that even the insurance sector has evolved itself a lot.

Fig.5.8. Pie chart showing average insurance preference.

From Fig.5.8. It can be said that 34% of the people go for a single insurance, as they think
that insurance is essential part of life but, investing more in insurance is not feasible for
them. About 45% of people prefer two or more factors, as they are concerned about
multiple parameters like health, tax saving, family security. Remaining 21.4% people do
not find insurance as a feasible place to invest.

41
 Fig.5.9. Pie chart showing Life Insurance Product Preference

From Fig.5.9.It can be inferred that People are almost equal percent of people prefer each
policy. Child solution has a bit lesser percent i.e.13.8% whereas wealth solution has 33%
population. From this we can analyze that people are interested in managing wealth effectively.
It can also be said that the ones who go for child solution have kids in the age group of 0-1
years. This helps in getting returns at the age of 18 for the child i.e. at the time of his/her
education. Thus, lowering the burden on parents.

Fig.5.10.a. Column charts showing rates of parameter consideration for Insurance Product.

Note: Here strongly disagree=1; Disagree=2; Neutral=3; Agree=4; Strongly Agree=5

(applicable to all bar charts in this research otherwise mentioned).

Following are the mean ratings for each option of Fig.10. :

Secured future- 3.31; Benefit with periodic returns- 3.06; Tax exemptions- 3.14; Savings for
children-3.11.

42
Though all means tend to neutral observing the decimals it can be inferred that compared to all
other factors people feel Secured future as the main motto of going for an insurance policy
then followed by child’s future.

mean
SAVINGS FOR CHILDREN 3.11
TAX EXEMPTIONS 3.14
BENEFIT WITH RETURNS 3.06
SECURED FUTURE 3.31

2.9 3 3.1 3.2 3.3 3.4

Fig.5.10.b. comparison chart between mean ratings of parameters.

Fig.5.11. Company Preference

From Fig.5.11. It can be said that 62.1% of population is interested to have insurance at LIC,
whereas SBI occupies 11.7% i.e. Total of 74% prefer insurance companies of public sector, as
they feel more secured. 25% of people preferred Birla Sun Life, even being a private firm, due
to its exclusive policies and principles

43
 Fig.5.12. Pie Chart showing the people’s opinion on private insurance firms

From the Fig.5. It can be said that most of the people has got expectations from private
insurance companies and only 20% people are the ones who do not believe that private sectors
fetch promissory returns, the reason for this may be their strong belief in public firms and lack
of awareness about private firms. About 52% have neutral opinion, depicting that they are the
ones who are indifferent whether it is a public or a private firm, they tend to go to the
company which gives promissory returns.

Fig.5.13. Pie chart showing opinion on BSLI products.

From Fig.5.13. It can be inferred that Majority of people have good-excellent opinion on BSLI
products. About 11% people have below average opinion on the products. Main reason for this
may be either a bitter experience or lack of awareness about the products. But it can be expected
that with effective marketing techniques more consumer base can be created.

44
 Fig.5.14.a.Column Chart Showing Quality Factors in LI sector attracting clients

mean
EASY PROCESSING 3.029
APPROACH BY AGENT 2.84
SAFE INVESTMENT 3.136
GOOD RETURNS 3.029

2.6 2.7 2.8 2.9 3 3.1 3.2

Fig.5.14.b.Comparision Chart between the ratings of Quality Factors

From Fig.5.14 a & b it can be said that safe investment principle is the quality factor which
attracts the clients most followed by good Returns and easy Processing. Low rate for Agents’
approach convey a message that agents are not influencing effectively in getting the food fall.

45
 Fig.5.15.a. Column chart showing features of “Child Solution” attracting clients.

mean
LESSER COMPLICATIONS 2.97
CARE TAKEN BY BIRLA 3.1
FLEXIBILIY OF PREMIUM 3.01
RATE OF RETURNS 2.89

2.75 2.8 2.85 2.9 2.95 3 3.05 3.1 3.15

Fig 5.15 b. Comparison chart between ratings of “Child Solution” option features.

From Figure 5.15a & 5.15b. It can be inferred that the respondents are attracted by the care
taken by BLSI during the time of emergency because .in case of emergency, the premium
payment is done by the company itself. Another option which attracts the people most is
flexibility of premium payment where the insurance holder can skip one-year premium and can
resume the payment after a year. This feature acts as a big plus point for all those who find
difficulty in special cases.

46
 Fig.5.16.a. Column charts showing the respondent’s opinion on features of “Tax Solution” at BLSI.

mean
LUMP SUM AMOUNT 3.03
TAX EXEMPTION AMOUNT 3.09
SHORTER PREMIUM PAY 3.03
GOOD RETURNS 3.07
3 3.02 3.04 3.06 3.08 3.1

Fig.5.16.b. Comparison chart of ratings for features of “Tax Solution” of BLSI.

From Figure 5.16a. & 5.16.b. it can be said that respondents are finding all the features equally
feasible. This policy is specially designed to save the taxes. The ones who are keen in shorter
term payment and periodic returns generally prefer this policy. Lump sum amount received
during the maturity period is also one of the attractive features.

47
 Fig.5.17a.Column chart showing the opinion on features of “Retirement Solution” by BLSI

mean
LESSER COMPLICATION 2.97

OPTIMUM SV 2.97

FLEXIBITY 3

GOOD BENEFITS 3.087

2.9 2.95 3 3.05 3.1

Fig.5.17.b. Comparison chart of ratings for features of “Retirement Solution” of BLSI.

From Figure 5.17a. & 5.17.b. it can be said that respondents are finding all the features equally
feasible. This policy has good features like lesser complications, optimum surrender value,
good returns and benefits. This policy is preferred by the age group of 40 years as they find it
an optimum time to invest in retirement policies with good benefits and BLSI is one amongst
the companies providing good returns.

48
 Fig.5.18.a.Column chart showing the opinion on features of “Wealth Solution” by BLSI.

mean
EASY PROCESSING 2.93

BETTER SECURITY 2.99

TAX SAVING OPTION 2.99

BETTER PERSONAL ASSISTANCE 3.009

2.88 2.9 2.92 2.94 2.96 2.98 3 3.02

Fig.5.18.b. Comparison chart of ratings for features of “Wealth Solution” of BLSI

From Figure 5.18a. & 5.18.b. it can be inferred that personal assistance and ideas given by
BLSI consultants attracts the potential investors. Managing wealth is a matter of concern,
especially for those who are not able to keep close watch on investment. Wealth solution covers
both insurance and investment. Security of money is also better. Hence all the features are
equally likely and personal assistance feature steals the race due to its feasibility.

49
 Fig.5.19.a.Column chart showing the opinion on BLSI products.

mean
WEALTH SOLUTION 3.048

RETIREMENT SOLUTION 3.058

TAX SOLUTION 3.165

CHILD SOLUTION 3.097

2.98 3 3.02 3.04 3.06 3.08 3.1 3.12 3.14 3.16 3.18

Fig.5.19.b. Comparison chart of ratings for products of BLSI.

From Figure 5.19.a. & 5.19.b. mean values has been drawn where Scale values are as follows:
Excellent-5, Very Good-4, Good-3, Average-2, Below Average-1.Amongst 103 respondents
“Tax Solution” has got good rating, the reason being the lower tenure and periodic returns.
Most of the people in today’s world find it irrelevant to wait for longer years and expects
returns soon. Hence, they get attracted easily to Tax solutions for tax benefits and good
returns.

50
 Fig.5.20.Pie Chart showing Optimum premium brackets of BSLI

From Fig.5.20. It can be said that about 35.2% people want polices less than Rs.12500, i.e.
they do not want to invest more amount in insurance due to income constraints or due to the
thought of diversifying the investments.

The ones who cover Rs.12500-Rs.50000 frame about 43% depicting that they expect good
returns and benefits for the welfare of children and other family members.

13.6% of the people prefer brackets more than Rs.1lakh premium. Mostly such people prefer
wealth management products.

Fig5.21. Pie chart showing opinion on BLSI going for lower premiums.

From Fig.5.21 it can be said that more than 50% of people want BLSI to go for lower premium.
This shows that they are interested in BLSI but higher premium rates of few products make them
think before taking a policy.37% people are indifferent to the fact whether BLSI should go for
lower premiums or higher. Such people prefer product type, quality and returns irrespective
premium amount to be paid.

51
 Fig.5.22.a.Column chart showing the opinion on challenges faced by common man while investing.

mean
CONFUSIONS TO CHOOSE 3.12
COMPLICATION IN CLAIM 3.18
LEGIBILITY OF AGENTS 3.049
DOUBTFUL RETURNS 3.08

2.95 3 3.05 3.1 3.15 3.2

Fig.5.22.b. Comparison chart of ratings for opinion on challenges faced by common man while investing in insurance.

From Figure 5.22.a. & 5.22.b. it can be concluded that out of many challenges complications
occurring during death claim is rated as the most recurring problem. Insurance companies must
look into this seriously and reframe the rules to resolve issues and process the claims legibly to
gain the confidence of the investors. Other factors of concern like legibility and knowledge of
agent, doubtful returns etc. are also needed to be solved to strengthen back the industry.

Note: All the graphs and charts of this section has been adopted from
ttps://docs.google.com/forms/d/1_FmNrY59h5yU_iHTRx87s78ZDu2OYxsw2EghIDgxU9M/edit#responses

52
5.16. Limitations

➢ The study is limited to constraint of time and information available.

➢ Possibility of error in data collection because many of the respondents may not give the correct
information.
➢ Maximum number of respondents belong to younger age group, so this may dilute the results of
other group and only 4 products taken into consideration
➢ The study has done only on 102 respondents.

5.17. Conclusions of the study:

➢ Most of the youth of age group 18-30 fall under the lower-mid salary income and are yet
to be insured depicting that there is a huge potential to tap.
➢ Concentration of this age group is mostly towards tax saving plans.
➢ Most of the respondents have more than two dependents in the family so they would go for
multiple insurances, thus they may opt BLSI as one of the options.
➢ People do not go for too long period investments unless they have kids and they expect
periodic returns too. That is the key factor on which Tax Solution product performs better.
➢ Though many people feel that Private sector fetch good and promissory returns, most of
them opted LIC as their first choice. This means there are factors to be addressed to reach
out maximum to the public.
➢ Most of the people are confused by similar products of different companies and are
unaware about complete benefits of insurance policies. That is the reason why most of the
respondents went for Neutral opinion on all questions.
➢ Products with lowered premium would attract more potential investors.
➢ People are worried due to the consequences faced during the claims. This leads to their
lack of interest towards insurance products.

53
5.18. Recommendations:

➢ More awareness about this modern insurance sector must be created else people would not
be able to utilize the modernized policies.
➢ Approach by the agents should be changed from primitive methods to a new way where in
the investor feel free to invest.
➢ Birla Sun-Life insurance products must go for lower premiums and higher returns to tap
the market.
➢ Exclusive products must be made especially to the young generations who are still left un-
insured.
➢ Reframing must be done to the policies which are not performing well.

5.19. Future Scope:

➢ This research can be further deepened by collecting more details like the exact domain they
work for, the requirement of policy types etc.
➢ Individual Study can be done on the basis of particular socio-economic strata for new
policy formation exclusively for the group.
➢ Requirement for rural areas is different from urban areas and BLSI is already into the
projects for rural areas, so there is a better and big scope for further findings.

Note: The detailed charts and graphs related to the report has been attached with the appendix.

54
 CHAPTER 6

AN ASSESSMENT OF INTERNSHIP

Realization of learning outcome is the only proof of any work done successfully. Internship is the
platform where-in one assess his/her own skill and try to enhance the skills sets by grasping it from
the environment. In general one can learn the discipline, sticking the commitments, punctuality,
team work, coordination, time utilization, alertness ,getting updated with the environment around,
adaptation of new things, conflict resolution skills, dealing with superiors, subordinates, colleagues
and other staff are inculcated once one gets exposed to corporate environment. Sticking much to
the expectations the above-mentioned qualities were literally tested and it was nothing less than a
boon to experience, inculcate and implement the above-mentioned qualities in each and every
activity given. Every activity demands all the above traits but depending on the situation prefer
order and quantity varies.

Being an insurance company, Birla Sun-life Insurance concerns and concentrates on client
acquisitions and expect the keen seriousness and dedication from all levels of members in the
hierarchy while dealing with clients. This target-based orientation and evaluation is applicable to
the interns too. This system helped a lot in exploring the mindset of people towards the insurance
sector. It was really surprising and exciting to see that the demand of two clients are not same even
if they belong to same socio-economic state. This activity of engaging and interacting with people
through cold calling and direct meetings removed all the hesitations which persisted before the
task. Confidence levels which seemed to be very low got an elevation. The way of approaching
people improvised from week to week.

It was an added responsibility to deal four products by myself and it requires patience and
dedication to choose the right targets and to allocate the meeting/calling time individually. Initially
it was thought easy to deal with, but it was not so. In order to maintain the seriousness and
dedication constant pressure was applied by the management. This helped me a lot in handling
them and being calm in such situations. The group activity given to work on a business model was
another milestone to reach. This not only taught to work properly in team, but also acted as an eye
opener in understanding the various parameters involved in framing a business structure and

55
estimating costs, revenue and target audience. In addition, this activity helped a lot in knowing the
things from investor’s view point.

Class room knowledge about EPS and ratios, Lehman brothers, US crisis, SWOT analysis helped
a lot in accomplishing the task in feasible way. Regular activities of group presentations as well as
individual presentation undertaken in the college helped to perform better in the office
presentations.

Internship indeed would affect the career plans. It gave a new dimension of thought. It is a thing
to be glad that, before entering into the core specialization of finance, I got a rough idea on different
sectors in this domain and through this internship a deeper analysis of work life in BFSI sector is
experienced. Before starting the internship, the perception towards this sector was completely
different, but these eight weeks of association from June to August proved that insurance sector
also has got a good scope and it has diversified itself in an interesting way. Same sort of risks and
benefits can be observed as compared to other corporates, but the way of dealing is completely
different. Through this exposure it can be learnt that if finance is an ocean different sectors are the
rivers flowing into this ocean. Every sector has its significance and importance of its own and will
prove worth- while if taken as a career.

Thus, it can be assessed that this internship as wrathful and hope that the experiences and
learnings take the individual forward in career. There are more areas to explore but due to time
constraint it was not possible. But if these learnings are carried forward, they would be helpful in
whole corporate life for years.

56
 CHAPTER 7

CONCLUSION

Internship from esteemed institutes add-on huge points to the career. Following conclusions have
been made to summarize the experience. Though it is hard to brief in merely few sentences, an
attempt has been made.

➢ Each task was associated with direct interaction to the public, especially the client
acquisition task was golden opportunity to approach various people as an employee of
BLSI rather than being a student.
➢ Business Model Task helped me in knowing the exact market needs and investor needs
which would be helpful in the corporate life irrespective of career to be chosen.
➢ Managing terms with the reporting manger helped a lot in knowing a bit deeper about
corporate culture.
➢ The insurance sector has got various sub-sectors which can be further explored and can be
a part of career too.
➢ Scope of insurance products is much wider than expected.

57
 ILLUSTRATIONS & APPENDIX

This section covers the internship research graphs, charts and other additional Reports.

A.1. Questions posed to the respondents.

Q1) Gender:

a) Male b) Female c) Others

Q2) Age Group:

a) 18-30 b) 30-50 c) 50-60 d) 60+

Q3) Occupation status:

a) I am a government employee. b) I work in a private firm c). Self-employed d)

other

Q4) Annual income:

a) 3-5 l b) 5-10l c) 10-15 l d) 15l+

Q5) Marital status:

a). Married. b). Unmarried c) Divorcee d). Widower

Q6) Number of dependents in the family:

a) None b) One c) two d) More than 2

Q7) Insurance status:

a) Insured b) Yet to insure

58
Q8). How many insurance policies in average do you prefer to have?

a) 1 b) 2 c). More than 2 d). None

Q9). Which product would you prefer while taking insurance?

a) Tax-solution b) Health solution c) Wealth solution d) Child solution e)

Retirement solutions f) others

Q10). Which parameters would you consider while investing in insurance policies?

a) Secured future.

b) Benefits with Periodic returns

c) Tax exemptions.

d) Savings for children

Q11). Do you think private insurance sector companies fetch you the higher and promissory
returns compared to public sector?

a) Yes. b). No

Q12). What is your opinion about Birla Sun-life Insurance policies?

Excellent. b). Good c) Average d) Below Average

Q13). What is your first choice of insurance company?

a) Birla Sun-life insurance. b). LIC c). SBI Life insurance d). Bajaj Aviva

59
Q14). Which quality factor of life-Insurance do you think attracts the client most?

SD D N A SA

a) Good Returns

b) On-time Returns

c) Approach by agents

d) Easy Process

e) Better Personal Assistance

Q15). Which of the following features of “Child Solution” Attract the client to Hold Birla Sun life policy?

SD D N A SA

a) Rate of Returns
b) Flexibility of premium payment
c) Care taken by Birla in case of emergency
d) Less complications in the time of maturity & emergency

Q16). Which of the following features of “Tax Solution” attracts the client to Hold Birla Sun life policy?

SD D N A SA

a) Good retirement Benefits

b) Shorter Premium payment period
c) Tax exemption amount
d) Lump sum amount during maturity period

60
Q17). Which of the following features of “Retirement Solution” attracts the client to Hold Birla Sun life
policy?

SD D N A SA

a) Good Retirement benefits

b) Flexibility of premium payment
c) Surrender value is optimum
d) Fewer complications in the time of emergency.

Q18). Which of the following features of “Wealth Solution” attracts the client to Hold Birla Sun life policy?

SD D N A SA

a) Better Personal Assistance

b) Tax saving Features
c) Higher security
d) Easy Processing

Q19).Rate the following policies of Birla Sun life insurance:

a) Child Solution
b) Tax Solution Scale 1to 5 1: Excellent 2. Very Good 3. Good 4. Average 5. Below
c) Retirement Solution
d) Wealth Solution

Q20). Which brackets of premium do you think is optimum while going with Birla Sun- life insurance?

a) Below Rs.12500 b). Rs.12500-Rs.25000. C) Rs.25000-Rs. 50000 d).50000-1lakh e) above 1lakh

Q21) Do you think Birla Sun-life insurance should go for lower premium plans?

a) Yes b) No

61
Q22) .What challenges are faced by an individual while investing in insurance?

SD D N A SA

a) Doubtful Returns
b) Legibility of insurance agents
c) Complications during death claim
d) Lack of idea where to invest SD- Strongly Disagree, D- Disagree, N-
Neutral, A-Agree, SA- Strongly agree

A1.2-Major Observations in Research

Observation 1.

➢ Most the respondents belong to age group of 18-30.

➢ About 61% of the respondents are yet to be insured.
➢ Most of the respondents fall under the annual income of 3-5 lakhs.
➢ Unmarried population is more in this sample.
➢ Interested in policies like wealth Solution and tax solution.

Observation 2.

➢ Irrespective of marital status most of about 60% of the respondents have 2 or more than
two dependents in the family.
➢ 45% of them want to invest in 2 or more than 2 insurance policies.
➢ 30-35% agree that Secured future, periodic returns, tax exemptions are the main reasons to
invest in insurance.
➢ 30% of people strongly agree that private firms fetch more returns.
➢ Over 50% of the people have neutral opinion about returns and reasons for investing in
insurance.

62
Observation 3.

➢ 63% people have LIC as their first choice of insurance where as 27% of the sample
considers BSLI as first choice.
➢ Over 75% of them have good-excellent opinion about Birla Sun life Insurance.
➢ Amongst those who clearly stand on Agree or disagree line most of the respondents
disagree with the fact that the approach from insurance agents is the quality factor.
However, they feel that safe returns and secured future are the domains where quality is
assured.

Observation 4.

➢ Flexibility in premium payment and Care taken by Birla during the case of emergency
forms the key factor for going for “Child Solution” at BSLI according to 30% of
respondents.
➢ All the features of “Tax solutions” like Lower premium payment period, lump sum
amounts earned at end, Good returns are key performing factors for about 30% of the
sample.
➢ Easy processing, lesser complications and better assistance are the factors tending the
investors towards “Wealth Solution” and “Tax Solution”. About 25-27% agree this fact
where as 18% disagree.
➢ About 50-55% of respondents have neutral opinion all key factors of all the products.

Observation 5.

➢ Tax Solution has got higher percent of Good-Excellent reviewers compared to other
policies.
➢ No clear picture cannot be seen but amongst the ones who rated average or below average
to the products “Wealth Solution” has got more such rating compared to other products.
➢ About 85% of respondents are pleased if premium amount to be paid is under Rs.50,000
➢ Of which most are either interested in policies below Rs.12500 or the ones in range of
Rs.12500-Rs.25000

63
 ➢ The ones interested in higher premiums opted Rs100000 policies compared to the ones in
the range of Rs.50000- Rs.100000.
➢ Most of the respondents feel that the company should go with lower premium plans.

Confusions due to numerous products, doubtful returns, complications during death claims

A2. Fundamental Analysis Reports

I. CEMENT SECTOR

Top Players and their Stock Market Details

Table A. Data of EPS, PE ratio, UV/OV of top cement companies in India.

S.no Company Sector Market P/E Sectorial EPS UV/OV

Name Capitalization Ratio P/E
Ratio
1. Ultra-tech Cement 113783.3 43.06 60.9 20.92 UV
Cement
2. Shree Cement 64267.7 47.82 60.9 360.75 UV
Cement
3. Ambuja Cement 50653.8 46.13 60.9 5.04 UV
Cement
4. ACC Cement 31078.9 47.61 60.9 28.69 UV

5. Dalmia Cement 23482.5 68.31 60.9 20.92 OV

Bharat
6. Ramco Cement 16195.9 25.95 60.9 23.63 UV
Cement
7. OCL India Cement 7024.3 18.05 60.9 40.69 UV
8. J.K. Cement 6817.9 26.67 60.9 39.88 UV
Cement
9. Birla Corp Cement 6699.1 30.33 60.9 28.50 UV
10. India Cement 6329.3 36.94 60.9 4.28 UV
Cements

64
 11. Prism Cement 6266.7 356.7 60.9 0.17 OV
Cement
12. JK Cement 5264.4 67.57 60.9 0.48 OV
Lakshmi
Cement
13. Rain Cement 4170.6 9.50 60.9 6.52 UV
Industries
14. Orient Cement 3184.6 50.90 60.9 2.83 UV
Cement
15. Heidelberg Cement 3036.6 38.58 60.9 1.71 UV
Cement

EPS
400
350
300
250
200
EPS
150
100
50
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Fig. A. EPS Comparison Chart of Cement Companies.

CONCLUSION: Companies with Low PE ratio and High EPS are optimal choice for investment

Highest EPS is of Shree cement and P/E is also considerably low. So it is better choice.

Note: Source of information for this section is Policybazar.com.

65
II. ALUMINIUM SECTOR

Top Players and Their Stock Market Details

S.no Sector Company Market P/E Sectorial EPS UV/OV

Name Capitalization Ratio P/E
(in Cr.)
1. Aluminum Sachet 89.02 146.88 22.51 0.32 OV
Metals
2. Aluminum Maitra 1.60 93.33 22.51 0.09 OV
3. Aluminum Century 38.24 31.87 22.51 0.15 OV
Extr
4. Aluminum Hindaalco 45214.6 29.04 22.51 6.94 OV
5. Aluminum NALCO 12989.28 19.42 22.51 3.46 UV

6. Aluminum Maan 61.28 19.08 22.51 4.75 UV

Aluminum
7. Aluminum Hind 58.91 9.30 22.51 10.05 UV
Aluminum
8. Aluminum PG Foils 123.27 7.12 22.51 21.35 UV
9. Aluminum Golconda 3.72 1.21 22.51 2.48 UV
Aluminum
10. Aluminum Bothra 74.53 0.00 22.51 0.00 UV
Metals
11. Aluminum Guj Foils 13.77 -0.33 22.51 -51.33 UV
12. Aluminum Sudal Ind 7.19 -1.04 22.51 -9.40 UV
13. Aluminum Penna 1.29 -2.75 22.51 -0.08 UV
Alum
14. Aluminum Bhoruka 2.69 -3.27 22.51 -0.15 UV
Alum
15. Aluminum Manasika 55.93 -12.10 22.51 -0.70 UV
Alum

Table. B. MarCap, EPS, PE, UV/OV details of Top Aluminium Companies in India.

66
 EPS
30
20
10
0
-10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
-20 EPS
-30
-40
-50
-60

Fig. B. EPS Comparison Chart of Aluminum Companies

CONCLUSION: Negative P/E is due to Negative EPS it means no profit on such shares. From
10-15 it’s not feasible to invest. 5-9 are comparatively fine. NALCO can be better trusted.PG foils
have considerable returns.

Note: Source of information for this section is Policybazar.com

A.3. Technical Analysis Report

Fig. C. 1.Technical Graph of Ultra-Tech Cement trading stock.

67
ULTRA-TECH CEMENT

Conclusion:

Red: Bearish

Green: Bullish

Spinning DOP candle in Aug-Sept 50-50 chance of raise or fall

October witnessed hammer (shooting Star) depicting sellers back in game.

Oct-Nov witnessed 3 white soldiers making the market bullish.

Over-all 1-year market: trending down.

Fig. C.2. Technical Graph of Ambuja Cement trading stock

AMBUJA CEMENT

Hammers can be seen constantly after May, Mid-April witnessed 3 white soldiers…March-April
was overall bearish but the trend turned bullish after April.

68
 Fig. C.3. Technical Graph of Dalmia Bharat Cement trading stock

DALMIA BHARAT

Just before 2017 start Dalmia was slightly low in value but the candle sticks of 3 white bsoldiers kept
it strong and attracted buyers. This was followed by Maru Bozu which depicted the continual of trade
in positive node. Buyers got more attracted seeing the trend and appearance of inverted hammer in Feb
depicts sellers got exhausted. A series of Bearish and few traces of bullish candles can be seen in
March-May. Last candle seen is inverted bullish hammer depicting buyers are back again.

Overall trade gained a huge momentum in the beginning of Jan which helped to play safe side till May.

Fig. D.1. Technical Graph of HINDALCO trading stock

HINDALCO

69
Feb 2016 had spinning DOP followed by reverse hammer and depicted trend reversal from bullish to
bearish. Further Moru Bozu in red continued the trend of bearish market. Final: Bearish Market.

Fig. D.2. Technical Graph of Maan Aluminium trading stock

MAAN ALUMINIUM

May ending and June starting witnessed revers hammer and shooting star depicting fluctuation where some
time sellers were dominant and buyers in other case. Maru- Bozu in June depicts reveresd the trend from
bullish to bearish. Series of candle sticks appeared in red color showing down trend of overall performance.

70
 Fig. D.3. Technical Graph of Golconda Aluminium trading stock

GOLCONDA ALLUMINIUM

Image clearly specifies the trend.

Conclusion: Technical Analysis helps a lot who deal with trading in both short and long term
basis. It gives a keen view compared to fundamental analysis which gives an
overall view. Technical analysis is thus the pulse of a stock market trend analysis
helping in correct time to buy/sell of stocks.

Note: Source of this section is Bombay Bulls.com, Chartsuperformance.com and official websites
of respective companies

71
 BIBLIOGRAPHY

This project would not have been successful without the support of following sources:

https://www.ibef.org/industry/insurance-presentation

https://en.wikipedia.org/wiki/Business_Model_Canvas

http://www.investopedia.com/ask/answers/131.as

http://www.investopedia.com/terms/c/candlestick.asp

https://insurance.birlasunlife.com/about-us/company-profile.aspx

https://insurance.birlasunlife.com/our-solutions.aspx

ttps://docs.google.com/forms/d/1_FmNrY59h5yU_iHTRx87s78ZDu2OYxsw2EghIDgxU9M/edit#responses

www.policybazar.com

Birla Sun life new advisory book

Wallstreetmojo.com

Insurance and Behavioral Economics by Prof.Mark V Pauly.

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