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INTRODUCTION:

The insurance sector in India governed by Insurance Act, 193 , the !i"e insurance cor#oration Act, 19$% and &enera' insurance (usiness Act, 19)*, Insurance Regu'atory and Deve'o#+ent Authority,IRDA- Act, 1999 and other re'ated Acts. /ith such a 'arge #o#u'ation and the unta##ed +ar0et area o" this #o#u'ation Insurance ha##ens to be a very big o##ortunity in India. 1cono+y Today it stands as a business gro2ing at the rate o" 1$3*4 #ercent annua''y. Together 2ith ban0ing services, it adds about ) #er cent to the country5s &D6. A'' this gro2th the statistics o" the #enetration o" the insurance in the country is very #oor. Near'y 47 o" Indian #o#u'ations are 2ithout !i"e insurance cover and the 8ea'th insurance. This is an indicator that gro2th #otentia' !i"e insurance sector is i++ense in India. It 2as due to this i++ense gro2th that the regu'ations 2ere introduced in the insurance sector and in continuation 9:a'hotra Co++ittee; 2as constituted by the govern+ent in 1993 to e<a+ine the various as#ects o" the industry. The 0ey e'e+ent o" the re"or+ #rocess 2as #artici#ation o" overseas insurance co+#anies 2ith *%7 ca#ita'. Creating a +ore e""icient and co+#etitive "inancia' syste+ suitab'e "or the re=uire+ents o" t he 2as the +ain idea behind this re"or+.

Insurance De"inition
A #ro+ise o" co+#ensation "or s#eci"ic #otentia' "uture 'osses in e<change "or a #eriodic #ay+ent. Insurance is designed to #rotect the "inancia' 2e''3 being o" an individua', co+#any or other entity in the case o" une<#ected 'oss. >o+e "or+s o" insurance are re=uired by 'a2, 2hi'e others are o#tiona'. Agreeing to the ter+s o" an insurance #o'icy creates a contract bet2een the insured and the insurer. In e<change "or #ay+ents "ro+ the insured ,ca''ed #re+iu+s-, the insurer agrees to #ay the #o'icy ho'der a su+ o" +oney u#on the occurrence o" a s#eci"ic event. In +ost cases, the #o'icy ho'der #ays #art o" the 'oss ,ca''ed the deductib'e-, and the insurer #ays the rest. 1<a+#'es inc'ude car insurance, hea'th insurance, disabi'ity insurance, 'i"e insurance, and business insurance.

Insurance Advantages
River ?orest @achting Centers have been recogniAed by severa' o" the 'arge insurance co+#anies and designated as #re3a##roved hurricane coded +arine "aci'ities. The insurance co+#aniesB engineers and sa"ety ins#ectors have conc'uded that based on the in'and 'ocations, construction +ethods, and +eticu'ous +aintenanceC R?@C "aci'ities are su#erior to other o#tions +a0ing it an e<ce''ent insurance ris0.R?@C o""ers inside storage to #rotect your boat not on'y "ro+ the sun and 2ind, but a'so "ro+ 'ightning 2hich is a +aDor cause o" c'ai+s during the su++er +onths. R?@C a'so o""ers outside 'and storage 2ith tie do2n c'eats and stra#s your boat do2n in the event o" a 2ind stor+ to 0ee# it sa"e and secure.

R?@C has a'so deve'o#ed a +e+bers on'y 8urricane C'ub to #rotect the boats o" 'oca' custo+ers 2ho choose to stay in ?'orida and need a re"uge "ro+ the stor+. As a resu't o" storing 2ith R?@C, =ua'i"ied boat o2ners +ay receive u# to a *47 credit o"" o" their hu'' #re+iu+ 2hi'e +aintaining "u'' ?'orida coverage 2hich 2e have been in"or+ed is a high'y unusua' credit, never be"ore #rovided in the >tate o" ?'orida. R?@C is ha##y to #rovide insurance re"erra's u#on re=ue

>o+e Areas o" ?uture &ro2th: !i"e Insurance:


The traditiona' 'i"e insurance business "or the !IC has been a 'itt'e +ore than a savings #o'icy. Ter+ 'i"e ,2here the insurance co+#any #ays a #redeter+ined a+ount i" the #o'icy ho'der dies 2ithin a given ti+e but it #ays nothing i" the #o'icy ho'der does not die- has accounted "or 'ess than *7 o" the insurance #re+iu+ o" the !IC ,:itra and Naya0, *441-. ?or the ne2 'i"e insurance co+#anies, ter+ 'i"e #o'icies 2ou'd be the +ain 'ine o" business

!i"e Insurance 6'ans


!i"e insurance #roducts assure your "a+i'y 2i'' receive "inancia' su##ort, even in your absence. 6ut si+#'y, 2hen you buy insurance you #rovide your "a+i'y 2ith a su+ o" +oney, shou'd so+ething ha##en to you. It thus #er+anent'y #rotects your "a+i'y "ro+ "inancia' crises.

In addition to serving as a #rotective cover, 2hen you buy insurance you create a "'e<ib'e +oney3saving sche+e, 2hich e+#o2ers you to accu+u'ate 2ea'th to buy a ne2 car, get your chi'dren educationa' so'utions, and even retire co+"ortab'y. Today, there is no shortage o" invest+ent o#tions "or a #erson to choose "ro+. &iven the #'ethora o" choices, it beco+es i+#erative to +a0e the right choice 2hen investing your hard3earned +oney, and on'ine insurance is an idea' choice in today5s techno'ogy driven 2or'd. (uying !i"e insurance on'ine is a 2ay to +a0e a uni=ue invest+ent that he'#s you to +eet your dua' needs 3 saving "or 'i"eBs i+#ortant goa's, and #rotecting your assets. E?ro+ an investorBs #oint o" vie2, an invest+ent can #'ay t2o ro'es 3 asset a##reciation or asset #rotection. /hi'e +ost "inancia' instru+ents have the under'ying bene"it o" asset a##reciation, buying 'i"e insurance on'ine gets you the uni=ue reassurance o" asset #rotection, a'ong 2ith a strong e'e+ent o" asset a##reciation. /hen you buy 'i"e insurance on'ine the core bene"it is that the "inancia' interests o" one5s "a+i'y re+ain #rotected "ro+ circu+stances such as 'oss o" inco+e due to critica' i''ness or death o" the #o'icyho'der. >i+u'taneous'y, buying 'i"e insurance on'ine gives a strong inbui't 2ea'th creation #ro#osition. The custo+er there"ore bene"its on t2o counts and on'ine insurance #roducts occu#y a uni=ue s#ace in the 'andsca#e o" invest+ent o#tions avai'ab'e to a custo+er. As your 'i"e stage and there"ore your "inancia' goa's change, the instru+ent in 2hich you invest shou'd o""er corres#onding bene"its #ertinent to the ne2 'i"e stage. On'ine insurance #roducts are the on'y invest+ent o#tion that o""er s#eci"ic #roducts tai'or3+ade "or di""erent 'i"e stages. @ou are thus ensured that the

bene"its o""ered to the custo+er re"'ect the needs o" the custo+er at that #articu'ar 'i"e stage, and hence ensures that the "inancia' goa's o" that 'i"e stage are +et. On the basis o" 2hich 'i"e stage you are in and the corres#onding insurance needs, ICICI #rudentia' #'ans can be categoriAed into the "o''o2ing three ty#es: 1ducation Insurance 6'an /ea'th creation #'an 6rotection 6'an

8ea'th Insurance:
The 8ea'th insurance e<#enditure in India is rough'y %7 o" &D6, +uch higher than +ost other countries 2ith the sa+e 'eve' o" econo+ic deve'o#+ent. O" that, F.)7 is #rivate and the rest is #ub'ic. /hat is even +ore sta0ing is that F.$7 are out o" #oc0et e<#enditure there has been an a'+ost tota' "ai'ure o" the #ub'ic hea'th care syste+ in India. This creates an o##ortunity "or the ne2 insurance co+#anies. Thus, #rivate insurance co+#anies 2i'' be ab'e to se'' hea'th insurance to a vast nu+ber o" "a+i'ies 2ho 2ou'd 'i0e to have hea'th care cover but do not have it.

6ension:
The #ension syste+ in India is in its in"ancy. These are genera''y three "or+s o" #'ans: #rovident "unds, gratuities and #ension "unds. :ost o" the #ension sche+es are con"ined to govern+ent e+#'oyees ,and so+e 'arge co+#anies-. The vast
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+aDority o" 2or0ers are in the in"or+a' sector. As a resu't, +ost 2or0ers do not have any retire+ent bene"its to "a'' bac0 a"ter retire+ent. Tota' assets o" a'' the #ension #'ans in India a+ount to 'ess than U>D F4 bi''ion. There"ore, there is a huge sco#e "or the deve'o#+ent o" #ension "unds in India. The "inance +inister o" India has re#eated'y asserted that a !atin A+erican sty'e re"or+ o" the #rivatiAed #ension syste+ in India 2ou'd be 2e'co+e. &iven a'' the #ros and cons, it is not c'ear 2hether such a 2ho'esa'e #rivatiAation 2ou'd rea''y bene"it India or not.

C8AN&1> IN IN>URANC1 6RODUCT> AND 6!AN> IN *414:


(y the end o" *414, IRDA +ade "ar reaching changes in U!I6 #'ans. U!I6 have beco+e +ore stab'e and better as IRDA has ca##ed the charges, e<tended the +ini+u+ #eriod, assured. There is a'so discussion on giving ban0s +ore autono+y by i+#'e+enting an o#en architecture so that ban0s can act as an agent "or insurance #roducts "ro+ di""erent insurance #roviders. The decision has not been ta0en yet. Cash'ess sche+es got the beating "ro+ the insurance co+#anies and they re"used to honor cash'ess hos#ita'iAation because o" high charges. IRDA has re"used to intervene in this dis#ute.

TR1ND> IN *411:
The changes +ade in *414 and other discussions initiated 2i'' set the trend o" insurance industry in *411 and beyond.

!i"e insurance:
The changes in U!I6 structure 2i'' +a0e it +ore #o#u'ar in *411.8o2ever, there is concern that insurance #roviders 2i'' discourage se''ing U!I65s and they +ay bac0 to traditiona' #'ans. There 2i'' be e+#hasis on traditiona' #'ans such as 2ho'e 'i"e insurance, endo2+ent #'an, and +oney bac0 #'an. The ter+ insurance +ay get chea#er as the #re+iu+ is inverse'y #ro#ortiona' to the 'i"e e<#ectancy. Additiona''y 2e 2i'' see ban0s increasing their "ocus on insurance re'ated business. Ti'' no2, ban0s have been a''o2ed to se'' insurance "ro+ one #rovider "ro+ one #rovider on'y. The ban0ing sector +ay o#en u# and act as agent "or +u'ti#'e insurance #roviders. Custo+ers 2i'' have another channe' to buy insurance "ro+.

N11D O? T81 >TUD@:


India 2ith about *44 +i''ion +idd'e c'ass househo'd sho2s a huge unta##ed #otentia' "or #'ayers in the in the insurance industry. >aturation o" +ar0ers in +any deve'o#ed econo+ies has +ade the Indian +ar0et even +ore attractive "or g'oba' insurance +aDors. The insurance sector in India has co+e to a #osition o" very high #otentia' and co+#etitiveness In the +ar0et. Indians, have a'2ays seen 'i"e insurance as a ta< saving device, are no2 sudden'y turning to the #rivate sector that are #roviding the+ ne2 #roducts and variety "or their choice.

Consu+ers re+ain the +ost i+#ortant centre o" the insurance sector. A"ter the entry o" the "oreign #'ayers the industry is seeing a 'ot o" co+#etition and thus i+#rove+ent o" the "oreign #'ayers the industry is seeing a 'ot o" co+#etition and thus i+#rove+ent o" the custo+er service in the industry. Co+#uteriAation o" o#erations and u#dating o" techno'ogy has beco+e i+#erative in the current scenario. ?oreign #'ayers are bringing in internationa' best #ractices in service through use o" 'atest techno'ogies.

O(G1CTIH1> O? T81 >TUD@: :ar0eting obDectives:


Increase re#eat custo+ers. Decrease custo+er ac=uisition costs. &enerate brand e=uity, =uanti"ied by an increase in unso'icited

service re=uests.

?inancia' ObDectives:
6ro"itabi'ity by the end o" year one. >teady, sustainab'e gro2th. Decrease training costs by *7 a =uarter.

>CO61 O? T81 >TUD@:


The study is basica''y +ade to ana'yAe the various sche+es to

high'ight the diversity o" invest+ent that +utua' "und o""er Through the study one 2ou'd understand ho2 co++on +an cou'd

"ruit"u''y convert #ittance into great #enny by 2ise'y investing into the right sche+e according to his ris0 abi'ities.

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:1T8ODO!O&@ O? T81 >TUD@:


The data co''ection +ethods inc'ude both the #ri+ary and secondary co''ection +ethods.

6ri+ary co''ection +ethod: This +ethod inc'udes the data

co''ection "ro+ the #ersona' discussion 2ith the authoriAed c'er0s and +e+bers o" the ICICI 6rudentia' !i"e Insurance

>econdary co''ection +ethod: The 'ectures o" the su#erintend o" the

de#art+ent o" +ar0et o#erations and so on., a'so the data co''ected "ro+ the ne2s, +agaAines o" the Ange' (ro0ing and di""erent boo0s issue o" this study.

!I:ITATION> O? T81 >TUD@:


This is a theoretica' study on'y based on various sources such as ne2s

#a#ers 2ebsites, artic'es, co''ege "acu'ty an ICICI 6rudentia' sta"". >tudy avai'abi'ity o" secondary data. The ti+e constraint 2as one o" the +aDor #rob'e+s. The study is 'i+ited to se'ected insurance "und sche+es.

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INDU>TR@ 6RO?I!1:
!i"e Insurance in its +odern "or+ ca+e to India "ro+ 1ng'and in the year 1 1 . Orienta' !i"e Insurance Co+#any started by 1uro#eans in Ca'cutta 2as the "irst 'i"e insurance co+#any on Indian >oi'. A'' the insurance co+#anies estab'ished during that #eriod 2ere brought u# 2ith the #ur#ose o" 'oo0ing a"ter the needs o" 1uro#ean co++unity and Indian natives 2ere not being insured by these co+#anies. 8o2ever, 'ater 2ith the e""orts o" e+inent #eo#'e 'i0e (abu :utty'a' >ea', the "oreign 'i"e insurance co+#anies started insuring Indian 'ives. (ut Indian 'ives 2ere being treated as sub3standard 'ives and heavy e<tra #re+iu+s 2ere being charged on the+. (o+bay :utua' !i"e Assurance >ociety hera'ded the birth o" "irst Indian 'i"e insurance co+#any in the year 1 )4, and covered Indian 'ives at nor+a' rates. >tarting as Indian enter#rise 2ith high'y #atriotic +otives, insurance co+#anies ca+e into e<istence to carry the +essage o" insurance and socia' security through insurance to various sectors o" society. (harat Insurance Co+#any ,1 9%- 2as a'so one o" such co+#anies ins#ired by nationa'is+. The >2adeshi +ove+ent o" 194$3 194) gave rise to +ore insurance co+#anies. The United India in :adras, Nationa' Indian and Nationa' Insurance in Ca'cutta and the Co3o#erative Assurance at !ahore 2ere estab'ished in 194%. In 194), 8industan Coo#erative Insurance Co+#any too0 its birth in one o" the roo+s o" the Gorasan0o, house o" the great #oet Rabindranath Tagore, in Ca'cutta. The Indian
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:ercanti'e, &enera' Assurance and >2adeshi !i"e ,'ater (o+bay !i"e- 2ere so+e o" the co+#anies estab'ished during the sa+e #eriod. 6rior to 191* India had no 'egis'ation to regu'ate insurance business. In the year 191*, the !i"e Insurance Co+#anies Act, and the 6rovident ?und Act 2ere #assed. The !i"e Insurance Co+#anies Act, 191* +ade it necessary that the #re+iu+ rate tab'es and #eriodica' va'uations o" co+#anies shou'd be certi"ied by an actuary. (ut the Act discri+inated bet2een "oreign and Indian co+#anies on +any accounts, #utting the Indian co+#anies at a disadvantage The "irst t2o decades o" the t2entieth century sa2 'ot o" gro2th in insurance business. ?ro+ FF co+#anies 2ith tota' business3in3"orce as Rs.**.FF crore, it rose to 1)% co+#anies 2ith tota' business3in3"orce as Rs.*9 crore in 193 . During the +ushroo+ing o" insurance co+#anies +any "inancia''y unsound concerns 2ere a'so "'oated 2hich "ai'ed +iserab'y. The Insurance Act 193 2as the "irst 'egis'ation governing not on'y 'i"e insurance but a'so non3'i"e insurance to #rovide strict state contro' over insurance business. The de+and "or nationa'iAation o" 'i"e insurance industry 2as +ade re#eated'y in the #ast but it gathered +o+entu+ in 19FF 2hen a bi'' to a+end the !i"e Insurance Act 193 2as introduced in the !egis'ative Asse+b'y. 8o2ever, it 2as +uch 'ater on the 19th o" Ganuary 19$% that 'i"e insurance in India 2as nationa'iAed. About 1$F Indian insurance co+#anies, 1% non3Indian co+#anies and )$ #rovident 2ere o#erating in India at the ti+e o" nationa'iAation.

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Nationa'iAation 2as acco+#'ished in t2o stagesC initia''y the +anage+ent o" the co+#anies 2as ta0en over by +eans o" an Ordinance, and 'ater, the o2nershi# too by +eans o" a co+#rehensive bi''. The 6ar'ia+ent o" India #assed the !i"e Insurance Cor#oration Act on the 19th o" Gune 19$%, and the !i"e Insurance Cor#oration o" India 2as created on 1st >e#te+ber, 19$%, 2ith the obDective o" s#reading 'i"e insurance +uch +ore 2ide'y and in #articu'ar to the rura' areas 2ith a vie2 to reach a'' insurab'e #ersons in the country, #roviding the+ ade=uate "inancia' cover at a reasonab'e cost.

Indian Insurance Industry:


The insurance business is gro2ing at an annua' rate o" *1.9 #er cent. Together 2ith ban0ing services, it accounts "or about ).1 #er cent to the country5s &D6. 8o2ever Insurance #enetration tends to rise as inco+e increases, #articu'ar'y in 'i"e insurance. India 2ith about *44 +i''ion +idd'e c'ass househo'ds sho2s a #otentia' "or insurance industry. >aturation o" +ar0ets in +any deve'o#ed econo+ies has +ade in the Indian +ar0et even +ore attractive "or g'oba' insurance +aDors. The insurance sector 2as o#ened u# "or #rivate #artici#ation "our years ago and the #rivate #'ayers are active in the 'ibera'iAed environ+ent. The insurance +ar0et have 2itnessed dyna+ic changes 2hich inc'udes #resence o" a "air nu+ber o" insurers both 'i"e and non3'i"e seg+ent.

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:ost o" the #rivate insurance co+#anies have "or+ed Doint venture #artnering 2e'' 2ith recogniAed "oreign #'ayers across the g'obe. The Indian insurance +ar0et accounts on'y "or 4.$9 #er cent o" U>D *,%*) bi''ion g'oba' insurance +ar0et.

CO:6AN@ 6RO?I!1 ICICI 6RUD1NTIA! A>>1T :ANA&1:1NT CO:6AN@ !I:IT1D


ICICI 6rudentia' :utua' ?und is one o" the 'argest +utua' "und houses in India. ICICI 6rudentia' :utua' ?und is a Doint venture bet2een #rudentia' #'c, one o" UIBs 'argest #'ayers in the insurance J "und +anage+ent sectors and ICICI (an0, a 2e''30no2n and trusted na+e in "inancia' services in India. ICICI and 6rudentia' ca+e together in 1993 to #rovide +utua' "und #roducts in India and today are the 'argest #rivate sector +utua' "und co+#any in India. ICICI 6rudentia' Asset :anage+ent Co+#any, in a s#an o" Dust over eight years, has "orged a #osition o" #re3e+inence in the Indian :utua' ?und industry as one o" the 'argest asset +anage+ent co+#anies in the country 2ith assets under +anage+ent o" Rs.$4,)F*.4) crores ,as on :ay 31, *44)-. The Co+#any +anages a co+#rehensive range o" sche+es to +eet the varying invest+ent needs o" its investors s#read across % cities in the country.

6RUD1NTIA!:
1stab'ished in !ondon in 1 F , 6rudentia' #'c, through its businesses in the UI, U> and Asia, #rovides retai' "inancia' services #roducts and services to +ore
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than *1 +i''ion custo+ers, #o'icyho'ders and unit ho'ders 2or'd2ide 2ith over U>KF44 ,as o" 31st Dece+ber, *44$- bi''ion in "unds under +anage+ent. 6rudentia' e+#'oys so+e *3,444 sta"" 2or'd2ide. In Asia, 6rudentia' has 'i"e insurance and "unds +anage+ent o#erationsacross across t2e've countries 3 China, 8ong Iong, India, Indonesia, Ga#an, Iorea, :a'aysia, the 6hi'i##ines, >inga#ore, Tai2an, Thai'and and Hietna+. 6rudentia' has cha+#ioned custo+er3centric #roducts and services "or over 4 years, su##orted by an e<tensive net2or0 o" over 1F$,444 sta"" and agents across the region.

Iey Indicators:
At ince#tion3 :ay199 ,as on +ay31,*44)-

Asset Under :anage+ent Nu+ber o" ?unds :anaged

Rs.1%4 crores

Rs$9,$)3.4 crores *F1

>tatutory:
ICICI 6rudentia' :utua' ?und ,erst2hi'e 6rudentia' ICICI :utua' ?und- ,the ?und- 2as set u# as a Trust s#onsored by 6rudentia' #'c ,through its 2ho''y o2ned subsidiary na+e'y 6rudentia' Cor#oration 8o'dings !td- and ICICI (an0 !td. ICICI 6rudentia' Trust !i+ited ,erst2hi'e 6rudentia' ICICI Trust !i+ited- ,Trust co+#anyis the Trustee to the ?und and ICICI 6rudentia' Asset :anage+ent Co+#any !td. ,erst2hi'e 6rudentia' ICICI Asset :anage+ent Co+#any !i+ited- ,A:C- is the Invest+ent :anager to the ?und.
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ICICI (an0 !td ,ICICI (an0- and 6rudentia' 6'c ,acting through its 2ho''y o2ned subsidiary na+e'y 6rudentia' Cor#oration 8o'dings !td- are the #ro+oters o" the A:C and the Trust Co+#any. ICICI (an0 current'y ho'ds $17 sta0e in both the co+#anies and the ba'ance F97 sta0e in both the co+#anies is he'd by 6rudentia' #'c ,acting through its 2ho''y o2ned subsidiary na+e'y 6rudentia' 8o'dings Cor#oration !td-.

6rudentia' 6'c ,acting through its 2ho''y o2ned subsidiary na+e'y 6rudentia' Cor#oration 8o'dings !td- trans"erred %7 o" its shareho'ding in both the co+#anies to ICICI (an0 2.e." August *%, *44$. >ubse=uent'y in accordance 2ith the a##rova' granted by the (oard o" Directors and the shareho'ders o" the A:C and the Trust Co+#any the na+e o" the A:C has been changed to ICICI 6rudentia' Asset :anage+ent Co+#any !i+ited and the na+e o" the Trust Co+#any has been changed to ICICI 6rudentia' Trust !i+ited. >1(I has vide its 'etter no I:DL6:L F9% L4) dated Ganuary *3, *44) conveyed its no obDection to the said change o" na+es o" the A:C J the Trust co+#any.

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The said change o" na+es has a'so been a##roved by the Registrar o" Co+#anies, NCT o" De'hi J 8aryana, :inistry o" Co+#any A""airs, &ovt o" India. The (oard o" Directors o" the Trust co+#any have at their +eeting he'd on *4th ?ebruary *44) accorded a##rova' "or the change o" na+e o" the :utua' ?und to ICICI 6rudentia' :utua' ?und as 2e'' as o" the various sche+es L#'ansLo#tions there under. >1(I has vide its !etter Nos I:DL6:L941% L4) J I:DL6:L941)4L4) dated A#ri' 4*, *44) accorded a##rova' "or the sa+e.

A2ard:
ICICI 6rudentia' Dyna+ic 6'an has been ran0ed ICRA :?R 1 in the category Diversi"ied 1=uity M De"ensive "or its 1 year #er"or+ance ti'' Dece+ber 31, *44%. There 2ere %9 sche+es in the category. The ran0 is an outco+e o" an obDective and co+#arative ana'ysis against various #ara+eters inc'uding: ris0 adDusted returns, "und siAe, sector concentration, #ort"o'io turnover, 'i=uidity, co+#any concentration and average +aturity. The ran0ing +ethodo'ogy did not ta0e into account entry and e<it 'oads. Ran0ing >ource and 6ub'isher: ICRA On'ine.-

N1/ 6!AN> O? ICICI 6RUD1NTIA!: ICICI 6rudentia' 'aunched TO6 U6 T81 >I6
ICICI 2as the "irst A:C 2hich has 'aunched TO6 U6 T81 >I6, in this the "eature a''o2s an investor to increase his #eriodic invest+ent through an auto+ated route in +u'ti#'es o" Rs.$44.Ti'' no2C investors cou'd not increase their >I6 a+ounts. They had to go in "or a "resh #'an. /hy TO6 U6N
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A >yste+atic Invest+ent 6'an ,>I6- a''o2s an investor to achieve his "inancia' goa' by saving "or it regu'ar'y Ni'esh >hah.De#uty :anaging Director, ICICI 6rudentia' A:C says: 9An >I6 2ith TO63U6 gives the investors the advantage o" #o2er o" co+#ounding 2hich 2i'' enab'e the+ to reach their "inancia' goa' "aster;.

6roducts o" ICICI 6rudentia' +utua' ?und:


ICICI 6rudentia' +utua' ?und sche+es consist o" various categories 'i0e Debt ?unds, 1=uity ?unds and (a'anced ?unds.

1=uity ?unds:
1=uity "unds see0 to #rovide +a<i+u+ gro2th o" ca#ita' 2ith secondary e+#hasis on dividend or interest inco+e. They invest in co++on stoc0s 2ith a high #otentia' "or ra#id gro2th and ca#ita' a##reciation. An e=uity "und gives an e<#osure to the stoc0 +ar0et. The "und 2ou'd have 'ong3ter+ gro2th #otentia' but #rovide 'o2 current inco+e. They are not suitab'e "or investors 2ho are ris0 averse and are "ocused on +a<i+iAing current inco+e or conserving #rinci#a'.

19

INH1>T:1NT 68I!O>O68@:
The overriding obDective o" the A:C in +anaging its invest+ents is to #roduce a consistent'y above average 'ong3ter+ #er"or+ance. The A:C be'ieves in a botto+3u# a##roach to stoc0 #ic0ing. This +eans that the "ocus is on the "unda+enta' =ua'ity o" co+#anies as o##osed to a "ocus on "avored sectors and +ar0et +ove+ents. The A:C 2i'' "o''o2 a structured invest+ent #rocess in order to identi"y the best stoc0s "or inc'usion in the #ort"o'io. This 2ou'd invo've consistent'y e<a+ining a'' stoc0s under an interna''y deve'o#ed research "ra+e2or0. A stoc0 2ou'd be considered or inc'usion in the #ort"o'io 2hen the va'uation does not ade=uate'y ca#ture its under'ying "unda+enta' va'ue in the A:CBs o#inion based on the above "actors. The A:CBs #ort"o'io +anage+ent sty'e is conducive to a 'o2 #ort"o'io turnover rate. 8o2ever, the A:C 2i'' ta0e advantage o" the o##ortunities that #resent the+se'ves "ro+ ti+e to ti+e because o" ine""iciencies o" the securities +ar0ets.

20

The A:C 2i'' endeavor to ba'ance the increased cost on account o" higher #ort"o'io turnover 2ith the bene"its derived there "ro+. The "unds o""ered under this category are: ICICI &ro2th 6'an ICICI 6rudentia' Ta< 6'an ICICI 6rudentia' ?:C& 6'an ICICI 6rudentia' Techno'ogy 6'an ICICI 6rudentia' 6o2er ICICI 6rudentia' Inde< ?und ICICI 6rudentia' Dyna+ic 6'an ICICI 6rudentia' Discovery ?und ICICI 6rudentia' 1+erging >TAR ?und ICICI 6rudentia' In"rastructure ?und ICICI 6rudentia' >ervice Industries ?und

21

(a'anced ?unds:
(a'anced "unds are +ore even'y invested in e=uities and inco+e securities. (a'anced and e=uity3inco+e "unds are suitab'e "or conservative investors 2ho 2ant high current yie'd 2ith so+e gro2th. I" you see0 to generate 'ong3ter+ ca#ita' a##reciation and current inco+e, an invest+ent in the ba'anced "und 2ou'd be idea'. It gives you an e<#osure to the stoc0 +ar0et 2ithout the entire ris0 o" the stoc0 +ar0et

INH1>T:1NT 68I!O>O68@:
The A:C #ro#oses to invest in a +i< o" e=uities and "i<ed inco+e securities 2ith the ai+ o" generating ca#ita' a##reciation, 2hi'e at the sa+e ti+e +ini+iAing the vo'ati'ity inherent in #ure e=uity sche+es. /ith this ai+, the A:C 2ou'd a''ocate the assets bet2een e=uity and "i<ed inco+e instru+ents 2ithin the 'i+its 'aid do2n "or each sche+e. The "unds o""ered under this category are: ICICI 6rudentia' (a'anced ?und

ICICI 6rudentia' Chi'd Care 6'an3>tud 6'an ICICI 6rudentia' Chi'd Care 6'an 3 &i"t 6'an ICICI 6rudentia' ('ended 6'an

22

Debt ?unds:
The "unds are suitab'e "or investors 2ho 2ant to +a<i+iAe current inco+e and 2ho do not 2ish to assu+e a high degree o" ca#ita' ris0 in order to do so. >ince bond #rices "'uctuate 2ith changing interest rates, there is so+e #rinci#a' ris0 invo'ved des#ite the "undBs conservative nature.

INH1>T:1NT 68I!O>O68@:
The A:C ai+s to identi"y securities, 2hich o""er su#erior 'eve's o" yie'd at 'o2er 'eve's o" ris0s. /ith the ai+ o" contro''ing ris0s, the invest+ent tea+ o" the A:C 2i'' carry out rigorous in3de#th credit eva'uation o" the securities #ro#osed to be invested in. The credit eva'uation inc'udes a study o" the o#erating environ+ent o" the co+#any, the #ast trac0 record as 2e'' as the "uture #ros#ects o" the issuer, the short as 2e'' as 'onger3ter+ "inancia' hea'th o" the issuer. Rated debt instru+ents in 2hich the >che+e invests 2i'' be o" invest+ent grade as rated by a credit rating agency. In case a debt instru+ent is not rated, s#eci"ic a##rova' o" the (oard o" the A:C 2i'' be obtained "or such an invest+ent. In addition, the invest+ent tea+ o" the A:C studies the +acro econo+ic conditions, inc'uding the #o'itico3econo+ic environ+ent and "actors a""ecting 'i=uidity and interest rates. The A:C 2ou'd use this ana'ysis to atte+#t to #redict the 'i0e'y direction o" interest rates and #osition the #ort"o'io a##ro#riate'y to ta0e advantage o" the sa+e.

23

The "unds o""ered under this category are

ICICI 6rudentia' !i=uid 6'an ICICI 6rudentia' !i=uid 6'an3 Dividend O#tion ICICI 6rudentia' Inco+e 6'an ICICI 6rudetia' &i't ?und M Invest+ent 6'an ICICI 6rudetia' &i't ?und ICICI 6rudetia' :onth'y Inco+e ?und ICICI 6rudetia' ?i<ed :aturity 6'an ICICI 6rudetia' >hort Ter+ 6'an ICICI 6rudetia' !ong Ter+ 6'an ICICI 6rudetia' ?'e<ib'e Inco+e 6'an ICICI 6rudentia' >2ee# 6'an

24

?eatures o" ICICI 6rudentia' :utua' ?und sche+es:


obDective 1ach ?und >che+e has its o2n #ort"o'io. 1ach ?und sche+e is +anaged by a s#eci"ied ?und :anager A'+ost every ?und >che+e has a "eature o" >I6 ,>yste+atic 1ach ?und sche+e o" ICICI 6rudentia' is diversi"ied based on its

Invest+ent 6'an-. ?or the >I6 investors there is an additiona' advantage that they can

avai' the "aci'ity o" Auto Debit o" the a+ount every +onth. :ost o" the "und sche+es are given #'ans 'i0e &ro2th, dividend and

Dividend reinvest+ent. Trigger o#tion is one o" the additiona' "eatures o" ICICI 6rudentia'

?und sche+es 2here the investors can direct A:C to 2ithdra2 their "unds 2hen the NAH is do2n. 1very investor 2i'' be sent hisLher Account in"or+ation be"ore the

third 2or0ing days o" the +ar0et. The investor is a'so #rovided 2ith the additiona' "eature i.e. >2itch

o#tion. There"ore the custo+er can s2itch "ro+ one "und sche+e to another.

25

The investor is a'so having Dividend rede+#tion as and 2hen it is

dec'ared. A'' the investors 2ho o#ted "or Dividend rede+#tion 2i'' be sent che=ues. An investor can redee+ the a+ount he invested any ti+e he 2ants.

,On'y i" it is o#en ended sche+e- /here as the investor 2i'' be charged a certain #ercent as entryLe<it 'oad. ICICI 6rudentia' a'so #rovides an o#tion to investors i.e. >/6

,>yste+atic 2ithdra2a' #'an-. 1very investor is been #rovided 2ith the in"or+ation o" NAH ,Net

Asset Ha'ue- as and 2hen he 2ants. The investor can a'so get re=uired in"or+ation on the 2ebsite o" 222.icici#rua+c.co+

*414 A/ARD>:
:s Chanda Iochhar, :anaging Director J C1O, con"erred the

Outstanding /o+an (usiness !eader o" the @ear a2ard by CN(C TH1 (usiness /or'd :s Chanda Iochhar "eatured in (usiness TodayBs 'ist o" 34 +ost ICICI (an0 a2arded the +ost Tech3"riend'y (an0 a2ard by

#o2er"u' 2o+en 'eaders "or the th consecutive year :s. Chanda Iochhar, :anaging Director J C1O, ran0ed 9*nd in

?orbes 'ist o" the :ost 6o2er"u' /o+en in the 2or'd :s.Chanda Iochhar, :anaging Director J C1O 2as ran0ed 14th

in the Internationa' ?ortune 'ist o" $4 +ost #o2er"u' 2o+en in business

26

ICICI (an0 2as voted as the :ost Trusted (rand a+ong #rivate

sector ban0s in the *414 1cono+ic Ti+es 3 (rand 1=uity :ost Trusted (rands A2ards and ran0ed )th in the 'ist o" To# $4 service brands ICICI (an0 received the *414 /or'd ?inance UI a2ard "or:

1<ce''ence in Re+ittance (usiness, /or'd2ide

1<ce''ence in NRI >ervices, /or'd2ide

1<ce''ence in 6rivate (an0ing (usiness, A6AC Region

ICICI (an0 UI, 8i>AH1 has been a2arded B(est On'ine >avings

Account 6rovider *414 B by @our :oney ,direct consu+er a2ards,UI ICICI (an0 UI, 8i>AH1 has been co++ended "or B(est Internet

Account 6rovider *414B and B(est ?i<ed Rate Account 6rovider *414B by :oney"acts, an inde#endent consu+er "inance 'eading aggregator :s.Chanda Iochhar, :D J C1O 2as a2arded the ?inancia'

1<#ress (est (an0er A2ard ?or the si<th ti+e in a ro2, ICICI (an0 has received the :ost

6re"erred Auto !oan (rand in the ?inancia's >ervices category at the CN(C Consu+er A2ards ICICI (an0 has 2on &o'd in the Readers Digest Trusted (rands

*414 Consu+er a2ard in the ?inance category "or a- (est (an0 and b- (est Credit Card Issuing (an0

27

ICICI (an0 2on the (est Trade ?inance (an0 and (est ?oreign

1<change (an0, India at the ?inance Asia Country A2ards "or Achieve+ent, 8ong Iong Revie2, UI ICICI (an0 2on the (est !oca' (an0 by Trade and ?or"aiting

*411 A/ARD>:
ICICI (an0 received the O(est ?oreign 1<change (an0 ,India-O, by ?inance Asia ICICI (an0 2on the OHani''a hedging instru+ents and >tructured hedging instru+ents India /inner, *411O "or OInterest Rate and Currency 6roductsO, by Asia Ris0 Cor#orate Ran0ings A2ards,UI. :r. N. Haghu', ?or+er Chair+an, ICICI (an0, received the O!i"eti+e ICICI (an0 2on the (est !o0a' (an03 &o'd by Trade and "or"aiting

Achieve+ent A2ardO, by (usiness2or'd

28

:s. Chanda Iochhar, :anaging Director J C1O 2as ran0ed 14th in

the 'ist o" OTo# $4 /o+en In /or'd (usiness *411O, by ?inancia' Ti+es :s. Chanda Iochhar, :anaging Director J C1O, "eatured in the 8a''

O" ?a+e o" :ost 6o2er"u' /o+en in Indian business by (usiness Today :s. Chanda Iochhar, :anaging Director J C1O, a2arded the >0och

Cha''enger A2ards *411, "or (an0ing. The >0och a2ards recogniAes best #ractices in #eo#'e, #roDects and institutions "or inc'usive gro2th :s. Chanda Iochhar, :anaging Director J C1O, in the 'ist o" *$

+ost #o2er"u' #ro"essiona' Association in the "o''o2ing categories: O(est ?inancia' Inc'usion InitiativeO ,"irst #riAeO(est On'ine (an0O , runner u#O(est use o" (usiness Inte''igenceO , runner u#OTechno'ogy (an0 o" the yearO , runner u#-

*41* A/ARD>:

29

Insurance:
In "inancia' sence: The "inancia' de"inition "ocuses on an arrange+ent
that redistributes the cost o" une<#ected 'osses.That is the co''ectin o" a s+a''

#re+iu+ #a+ent "ro+ a'' e<#osed and distributed to those su""ering 'oss.

30

In 'ega' sence: The 'ega' de"inition "ocuses on a contractua' arrange+ent


2hereby one #arty agress to co+#ensate another #arty "or 'osses. The "inancia' de"inition #rovides "or the 'osses 2hereas the 'ega' de"inition "or the 'ega''y en"orceb'e contract that s#e''s out the 'ega' rights, duties and ob'igations o" a'' the #arties to the contract.

Costs and (ene"its o" Insurance


The #ur#ose o" insurance +ode o" ris0 trans"er is to #rovide econo+ic against the 'osses that +ay be incurred but to chance events such as Death Disabi'ity 1cono+ic 'osses

One #arty ,the insure- "or a set a+ount o" +oney,,#re+iu+- agrees to #ay the other #arty ,insured or bene"iciary-,a su+ o" +oney ,bene"it - u#on the occurrence o" an event 2hich +ay or +ay not occur. Insurance #rovides econo+ic #rotection against 'osses that +ay be incurred due to chance events that +ay or +ay not occur during the e""ective ti+e o" the contract ca''ed a #o'icy. The insurance o" business organisations is essentia' in the sence that advertise+ents, i" not guarded, +ay a""ect the business itse'" the business o2ner5s #ersona' #ro#erty and +ay a'so threaten the continued o#eration o" the business and threaten the continued o#eration o" the business and threaten he o2ner5s "inancia' 2e''3being.

Insurance Device

31

The "unda+enta' characteristics o" insurance are:


It invo'ves trans"er o" ris0 "ro+ the individua' to the grou#,and There is sharing ,#oo'ing- o" 'osses on so+e e=uitad'e basis such that "ortuitous 'osses 2i'' be inde+ni"ied,#aid-. :ore s#eci"ica''y, the cost and bene"its o" insurance are:

(ene"its:
return. o" 2ea'h 6revention o" 'osses Credit +u'ti#'ication Costs o" insurance to society Cost o" (usiness o#erations3 socia' 2astage o" resources ?raudu'ent and e<aggerated c'ai+s3 :a'acious and undesirab'e trans"er Rei+burse+ent "or 'osses Reduction in tension and "ear Avenue "or invest+ent M 'i"e insuarance invest+ent o""icer attractive

?INANCIA! >@>T1:

32

:eaning o" ?inancia' >yste+:


The econo+ic deve'o#+ent o" any country de#ends u#on the e<istence o" a 2e'' organiAed "inancia' syste+. A "inancia' syste+ is a co+#'e<. /e''3integrated set i" sub3syste+ o" "inancia' institution, +ar0et, instru+ents and services 2hich "aci'itates the trans"er and a''ocation o" "unds e""icient'y and e""ective'y. A "inancia' syste+ o" "inancia' sector "unctions as an inter+ediary and "aci'itates the "'o2 o" "unds "ro+ the areas o" sur#'us to the areas o" de"icit. A "inancia' syste+ is a co+#osition o" various institutions, +ar0ets, regu'ations and 'a2s, #ractices, +oney +anager, ana'ysts, transactions and c'ai+s and 'iabi'ities.

?eatures o" "inancia' syste+:


1. ?inancia' syste+ #rovides an idea' 'in0age bet2een de#ositors and investors, thus encouraging both savings and invest+ents. *. ?inancia' syste+ "aci'itates e<#ansion o" "inancia' +ar0ets over s#ace and ti+e. 3. ?inancia' syste+ #ro+otes e""icient a''ocation o" "inancia' resources "or socia''y desirab'e and econo+ica''y #roductive #ur#oses. F. ?inancia' syste+ in"'uences both the =ua'ity and the #ace o" econo+ic deve'o#+ent.

33

?INANCIA! :ARI1T>:
The "inancia' +ar0et #'ays a crucia' ro'e in the econo+ic deve'o#+ent o" a country by "aci'itating the a''ocation o" scarce resources. (y trans"erring resources "ro+ the savers to the borro2ers, it directs resources "ro+ the id'e to the #roductive sector, thus acce'erating invest+ent activities in the econo+y. The a''ocation "unction o" the "inancia' +ar0et has been described succinct'y by >tig'itA ,199F-: P?inancia' +ar0ets essentia''y invo've the a''ocation o" resources. This can be thought o" as the brain o" the entire econo+ic syste+, the 'ocus o" centra' decision3+a0ingC i" they "ai'. Not on'y 2i'' the sectors5 #ro"it be 'o2er than 2ou'd other2ise have been, but the #er"or+ance o" the entire econo+ic syste+ +ay be i+#aired.5 The i+#ortance o" "inancia' deve'o#+ent 2as a+#'y ac0no2'edged by c'assica' econo+ists ,Ada+ >+ith and others-, 2ho be'ieved that there is a c'ose re'ationshi# bet2een ca#ita' accu+u'ation and the #rocess o" econo+ic deve'o#+ent. 8o2ever, the i+#ortance o" "inancia' "actors in the deve'o#+ent #rocess 2as 'arge'y ignored and "orced saving 2ere considered the best +eans o" "inancing deve'o#+ent. (ut Pthe resu'tant "inancia' re#ression is thought to be a +aDor cause o" 'o2 savings rates and the underdeve'o#+ent o" the "inancia' sector5.

:eaning o" ?inancia' :ar0et:


A "inancia' +ar0et is a +echanis+ that a''o2s #eo#'e to easi'y buy and se'' "inancia' securities, co++odities and other "ungib'e ite+s o" va'ue at 'o2 transaction costs and at #rices that re"'ect the e""icient +ar0et hy#othesis. ?inancia' +ar0ets have evo'ved signi"icant'y over severa' hundred years and are undergoing constant innovation to i+#rove 'i=uidity

34

Insurance Trends in India:


/ith the de3regu'ation in Indian Insurance industry, the +ono#o'y o" #ub'ic sector co+#anies in 'i"e insurance and genera' insurance has co+e to an end. This has aug+ented the innovative #ractices initiated by the #rivate #'ayers. &ro2th in the interactive techno'ogy such as internet has "urther created a 2ave o" e<cite+ent in the insurance +ar0et. Indian econo+y and Indian Insurance sector is co++itted to a doub'e digit gro2th. 8ere5s a g'i+#se o" Insurance Industry over 194 years.

Insurance Regu'atory J Deve'o#+ent Authority

(ac0ground:

!IC,&IC,#rivate Ca#ita' +ar0et insurance inter+ediaries co+#anies J reinsurance

Insurance is a RsF$4 bi''ion industry in India. The va'ue o" the +ar0et is deter+ined by gross #re+iu+ inco+es. The 'i"e insurance seg+ent 2rites about 47 Q>toc0 e<change o" the overa'' +ar0et va'ue. Indian Insurance +ar0et 2as at its a'' ti+e high in *443 ban0ers Q:erchant 2ith a gro2th o" about 1).F7 over the #ervious year. >ince *441 Insurance is QUnder2riters gro2ing at the rate o" 1$3*4 7 annua''y. The gro2th in the insurance industry is Q>toc0bro0ers

QRetai' investors a""ected by vo'ati'ity in rea' estate rates, &D6 rates and 'ong ter+ interest rates.
?'uctuations in e<change rates a'so a""ect the gro2th in this sector. Q?''s The gross #re+iu+ as a #ercentage o" the &D6 has gone u# "ro+ *.3 in the year *444 to F. in *44%. Together 2ith ban0ing services, it adds about )7 to the country5s &D6.

35

8istory o" Indian Insurance:


The ancient origin o" insurance is 1+ersion, 2hose bri''iant and 'earned Traits des Assurances, "irst #ub'ished in 1) 3, is sti'' read 2ith res#ect and ad+iration. The resu't sho2s that insurances 2ere 0no2n to the ancients such as Ro+ans, 6hoenicians Rhodians, a'though the business o" under2riting co++ercia' ris0s 2as #robab'y not high'y deve'o#ed. The histories o" !ivy and >uetonius sho2s that the contractors 2ho undertoo0 to trans#ort #rovisions and +i'itary stores to the troo#s in >#ain sti#u'ated that the govern+ent shou'd assu+e a'' ris0 o" 'oss by reason o" #eri's o" the sea or ca#ture and this 2as #robab'y the "irst ti+e 2hen insurance #rocess 2as 0no2n. There 2ere "riend'y societies organiAed, "or the #ur#ose o" e<tending aid to their un"ortunate +e+bers "ro+ a "und +ade u# o" contributions "ro+ a''. These societies undoubted'y e<isted in China and India in the ear'iest ti+es. The ear'iest traces o" Insurance in the ancient Indian history 2as in the "or+ o" +arine trade 'oans or carrier5s contracts, 2hich can be "ound in Iauti'ya5s Arthashastra, @aDnyava'0ya5s Dhar+ashastra and :anu5s >+riti. These 2or0s sho2 that the syste+ o" credit and the 'a2 o" interest 2ere 2e'' deve'o#ed in India. They 2ere based on c'ear a##reciation o" haAard invo'ved and the +eans o" sa"eguarding against it.

36

(ritish3India 6eriod:
Insurance in India 2ithout any regu'ations started in the nineteenth century. It 2as a ty#ica' story o" a co'onia' era 2here a "e2 (ritish insurance co+#anies do+inated the +ar0et serving +ost'y 'arge urban centers. Co+#any started by 1uro#eans in Ca'cutta 2as the "irst 'i"e insurance co+#any on Indian >oi'. (o+bay :utua' !i"e Assurance >ociety indicated the birth o" "irst Indian 'i"e insurance co+#any in the year 1 )4, and covered Indian 'ives at nor+a' rates. 1934s 2as the 'ast o" the o'd3sty'e crises in the Indian econo+y because it +ar0ed the beginning o" the end o" the co'onia' state and an acce'eration o" the #ace o" industria'iAation as entre#reneurs +oved their ca#ita' out o" the countryside. Inde#endent India reduced its vu'nerabi'ity to e<terna' econo+ic shoc0s by c'ose contro' o" "oreign e<change and by #ro+oting a +assive change in the e<#ort schedu'e. Ti'' the end o" nineteenth century insurance business 2as a'+ost entire'y in the hands o" overseas co+#anies. 6ost Inde#endence era o" Indian Insurance:

The insurance business gre2 at a "aster #ace a"ter inde#endence. Indian co+#anies strengthened their ho'd on this business but des#ite the gro2th that 2as 2itnessed, insurance re+ained an urban #heno+enon. During :rs. &andhi5s tenure ,"ro+ 19%%319% -, there 2as a s#'it 2ithin the business co++unity o" #rotectionists and those 2ho 2anted +ore o#en trade. (ut 2hat +aintained the +o+entu+ 2as the co++it+ent o" T2o :inisters, Asho0 :ehta and >ubra+ania+ to2ards 'ibera'iAation o" the econo+y. This 2as seconded 2ith high ho#e o" getting increased "oreign aid.

37

Deregu'ation actua''y he'#ed the #oorest in India as it 2ou'd eventua''y create +ore e+#'oy+ent and "aster gro2th. @et the intense "ears o" 'ibera'iAation in the 'o2er +idd'e c'ass and a+ong 2or0ing c'ass e+#'oyees o" the state sector, #ose serious ris0s in "reeing the econo+y. It +ight be #re"erab'e to introduce 'ibera'iAation during an econo+ic u#s2ing 2hen the ris0 o" s2itching Dobs is 'ess trau+atic. The three 'ibera'iAation e#isodes in Indian econo+ic #o'icy have "o''o2ed c'ear cyc'ica' #atterns. 1cono+ic #o'icy has s2ung broad'y bet2een contro's and greater o#enness, 2ith a tendency to2ard decontro''ing 'arger and +ore i+#ortant seg+ents o" the econo+y.

Nationa'iAation 6hase o" Indian Insurance: 19FF: The Nationa'iAation o" insurance industry gathered +o+entu+ in 19FF
2hen a bi'' to a+end the !i"e Insurance Act 193 2as introduced in the !egis'ative Asse+b'y.

19$%: 1$F Indian insurance co+#anies, 1% non3Indian co+#anies and )$


#rovident societies 2ere ta0en over by the centra' govern+ent and nationa'iAed. !IC "or+ed by an Act o" 6ar'ia+ent, viA. !IC Act, 19$%, 2ith a ca#ita' contribution o" Rs.$ Crore "ro+ the &overn+ent o" India.

19)*: The &enera' Insurance (usiness ,Nationa'iAation- Act, 2hich


nationa'iAed the genera' insurance business in India 2ith e""ect "ro+ 1st Ganuary 19)3. 14) insurers a+a'ga+ated and grou#ed into "our co+#anies viA. the Nationa'

38

Insurance Co+#any !td., the Ne2 India Assurance Co+#any !td., the Orienta' Insurance Co+#any !td. and the United India Insurance Co+#any !td. Nationa'iAation 2as acco+#'ished in t2o stagesC initia''y the +anage+ent o" the co+#anies 2as ta0en over by +eans o" an Ordinance, and 'ater, the o2nershi# too 2as ta0en by +eans o" a co+#rehensive bi''. 8o2ever, it 2as on'y in 19$%, !IC 2as nationa'ised, 2ith the obDective o" s#reading 'i"e insurance +uch +ore 2ide'y and in #articu'ar to the rura' areas 2ith a vie2 to reach a'' insurab'e #ersons in the country, #roviding the+ ade=uate "inancia' cover at a reasonab'e cost.And as o" *44), !IC is India5s 'eading Insurance co+#any, 2ith *444 branches, 2hich #robab'y is the highest nu+ber o" branches across India insurance sector.

!ibera'iAation o" Indian Insurance: 199F: Insurance sector invited #rivate #artici#ation to induce a s#irit o"
co+#etition a+ongst the various insurers and to #rovide a choice to the consu+ers.

199): Insurance regu'ator IRDA 2as set u# as there "e't the need:
a- To set u# an inde#endent regu'atory body, that #rovides greater autono+y to insurance co+#anies in order to i+#rove their #er"or+ance, b- To enab'e the+ to act as inde#endent co+#anies 2ith econo+ic +otives. c- To #rotect the interest o" ho'ders o" insurance #o'icies. d- To A+end the Insurance Act, 193 , the !i"e Insurance Cor#oration Act, 19$% and the &enera' insurance (usiness ,Nationa'iAation- Act, 19)*

39

e- To end the +ono#o'y o" the !i"e Insurance Cor#oration o" India and &enera' Insurance Cor#oration and its subsidiaries. In the "irst year o" insurance +ar0et 'ibera'iAation ,*441- as +uch as 1% #rivate sector co+#anies inc'uding Doint ventures 2ith 'eading "oreign insurance co+#anies have entered the Indian insurance sector. O" this, 14 2ere under the 'i"e insurance category and si< under genera' insurance. Thus in a'' there are *$ #'ayers ,1*3'i"e insurance and 133genera' insurance- in the Indian insurance industry ti'' date.

Indian Insurance in *1st Century: *444: IRDA starts giving 'icenses to #rivate insurers: ICICI #rudentia' and
8D?C >tandard !i"e insurance "irst #rivate insurers to se'' a #o'icy

*441: Roya' >undara+ A''iance "irst non 'i"e insurer to se'' a #o'icy *44*: (an0s a''o2ed tose'' insurance #'ans. As T6As enter the scene,
insurers start setting non3'i"e c'ai+s in the cash'ess +ode

*44): ?irst On'ine Insurance #orta', 222.insurance+a''.in set u# by an


Indian Insurance (ro0er, (onsai Insurance (ro0ing 6vt !td.

The &overn+ent o" India 'ibera'ised the insurance sector in :arch *444 2ith the #assage o" the Insurance Regu'atory and Deve'o#+ent Authority ,IRDA- (i'',
40

'i"ting a'' entry restrictions "or #rivate #'ayers and a''o2ing "oreign #'ayers to enter the +ar0et 2ith so+e 'i+its on direct "oreign o2nershi#. :ini+u+ ca#ita' re=uire+ent "or direct 'i"e and Non3'i"e Insurance co+#any is INR1444 +i''ion and that "or reinsurance co+#any is INR *444 +i''ion. In the *44F34$ budgets, the &overn+ent #ro#osed "or increasing the "oreign e=uity sta0e to F97, this is yet to be e""ected. Under the current guide'ines, there is a *% #ercent e=uity ca# "or "oreign #artners in direct insurance and reinsurance Co+#any. ,/or'd (an0 1cono+ic Revie23*444-.

On'ine Insurance in India:


Internet access in India has doub'ed every year over the 'ast "ive years and "orecasts #redict this gro2th to =uadru#'e every year over the ne<t three years. According to +ar0eter re#ort on India on'ine, in *44), about 33.* +i''ion #eo#'e in India accessed internet and that5s about *.97 o" Indian #o#u'ation. This "igure is going to be )1.% +i''ion #eo#'e, 2hich 2i'' be about %7 o" #o#u'ation by *411. Considering 'i+ited access o" hu+an3insurance agents in rura' areas, there 2i'' +ore de+and o" #urchasing insurance on'ine "ro+ these areas, "o''o2ed by se+i3urban areas.

The

insurance

#orta's

that

are

active

in

on'ine

distribution

are

222.icici'o+bard.co+,222.baDaDa''ianA.co.in,222.insurance+a''.in,222.bi+aon'i
41

ne.co+,222.insurance#andit.co+.Recent'y,Co+#are M Choose M (uy #orta's 'i0e (onsai Insurance (ro0er5s 222.insurance+a''.in, have been deve'o#ed "or #roviding co+#arison o" di""erent ty#es o" insurance #o'icies, their #re+iu+s and their #urchase on'ine. The #o'icy detai's are stored digita''y and a'' transactions are +ade over secure channe's. 13insurance o""ers a ne2 gate2ay o" inco+es and #rovides additiona' +ar0et #enetration, 2hich is a need o" an hour "or Indian Insurance >eg+ent. The ?irst :overs in Distribution o" Insurance goes to 3 co+#anies in India : 1. ICICI !o+bard &enera' Insurance *. (aDaD A''ianA &enera' Insurance 3. 222.insurance+a''.in ,Created by (onsai Insurance (ro0ing.-

INH1>T:1NT O? ICICI 6RUD1NTIA! !I?1 IN T81 @1AR 19 ): ,In Crores-

42

61RC1NTA&1 T@61> O? INH1>T:1NT 1. Centra' &ovt. >ec. *. >tate &ovt. J other &ovt. &uaranteed :ar0etab'e >ec. 3. 1'ectricity ,>1(sF. 8ousing $. /ater >u##'y J >e2erage ,:un R S.6%. >tate Road Trans#ort Cor#n. ). !oans to Industria' 1st. . !oans to >ugar Co3o# 9. Deve'o#+ent Authority 14. Road2ays, 6ort, Rai'2ays 11. 6o2er &eneration ,6vt. >ector1*. :unici#a' Co#. Tota' :3 31333 ) F%)$ 1% 3 *%43 1 )* )1 1 4 3) 3) 1 3 3 3 11 4% O? TOTA! 39.%4 1F.*% **.4$ 1$. % %.4 1.$* 4.31 4.31 4.41 3 3 3 144.44

OUT

ANA!@>I> O? INH1>T:1NT> IN 19 ):
43

1-

:aDor #ortion o" the invest+ent o" the ICICI 6RU!I?1 2ere ca#tured

by the state &ovt. securities. *!i"e Insurance Cor#oration concentrated on'y in the ICICI 6RU!I?1

sector and the 6rivate sector 2as co+#'ete'y neg'ected. 3securities. FF$.$*7 ,3RFR$R%R9- o" ICICI 6RU!I?1 Invest+ents 2ere invested $3. %7 ,1R*- o" ICICI 6RU!I?15> Invest+ents are invested in the

in the Deve'o#+ent o" In"rastructure o" the Country. $4.%*7 ,)R - 2as given as 'oans "or the gro2th o" Industries in India.

ICICI 6RU!I?1 INH1>T:1NT> IN T81 @1AR 199),In Crores-

61RC1NTA&1 T@61> O? INH1>T:1NT 1. Centra' &ovt. >ec. *. >tate &ovt. J other &ovt. &uaranteed :ar0etab'e >ec. 3. 1'ectricity ,>1(sF. 8ousing $. /ater >u##'y J >e2erage ,:un R S.6313339) 3)334 94% *1F 149%) *4* OUT O? TOTA! $F. F 13.4 1*.4) 1%.14 3.44

44

%. >tate Road Trans#ort Cor#n. ). !oans to Industria' 1st. . !oans to >ugar Co3o# 9. Deve'o#+ent Authority 14. Road2ays, 6ort, Rai'2ays 11. 6o2er &eneration ,6vt. >ector1*. :unici#a' Co#. Tota' :3

$F4 F$ 3) 1 3 3 3 % 4%

4.)9 4.4% 4.4$ 4.41 3 3 3 144.44

ANA!@>I> O? INH1>T:1NT> IN 199):


1This year ICICI 6RU!I?15> invest+ent in centra' &ovt. securities

increased drastica''y. *ICICI 6RU!I?15> invest+ents in centra' &ovt. securities increased

"ro+ 39.%7 3 $F. F7.

45

3-

(ut there 2as a dec'ine in the invest+ent in >tate &ovt. and other

&ovt. securitiesC it reduced "ro+ 1F.*%7 3 13.4 7. F8o2 ever there 2as an increase in the net invest+ent in securities, it

increased by *%.147 ,2hen co+#ared to 19 )- and at the end 2as %).9*7 o" the tota' invest+ents. $Invest+ent in the deve'o#+ent o" in"rastructure 2as 31.9)7 o" the

tota' 2hen co+#ared to F$.$*7 in the #revious year that +eans there 2as a dec'ine o" *9.))7 2hen co+#ared to 19 ). %This year 'oans to industria' estateBs and sugar co3o# increased "ro+

+argina' 4.%*7 to 1.17 and sho2ed an increase o" )).F*7 )On the 2ho'e the ICICI 6RU!I?1 sho2ed a very good gro2th rate in

their invest+ents in 19 ) their tota' invest+ents 2ere 11 4% crores but in this year it sho2ed an increase o" F)%.$$7 ICICI 6RU!I?1Bs invest+ents increased by a'+ost $ ti+es in 14 years

2hich sho2ed a great increase o" $47 #er year on an average. 9!oo0ing at the s#eed gro2th o" ICICI 6RU!I?1 O? INDIA it 2as

=uite c'ear "or every one that ICICI 6RU!I?1 O? INDIA 2as heading to2ards beco+ing the 2or'd5s no 1 insurance co+#any. 14!oo0ing at current year the e<#ected #er"or+ance o" the cor#oration

2as increasing at a ra#id #ace.

46

INH1>T:1NT O? ICICI 6RU!I?1 IN T81 @1AR *44F,In Crores-

61RC1NTA&1 T@61> O? INH1>T:1NT 1. Centra' &ovt. >ec. *. >tate &ovt. J other &ovt. &uaranteed :ar0etab'e >ec. 3. 1'ectricity ,>1(sF. 8ousing $. /ater >u##'y J >e2erage ,:un R S.6%. >tate Road Trans#ort Cor#n. ). !oans to Industria' 1st. . !oans to >ugar Co3o# 9. Deve'o#+ent Authority 14. Road2ays, 6ort, Rai'2ays 11. 6o2er &eneration ,6vt. >ector313334F F$ )% 14F)1 91$3 1**F* **%F $$1 F$ 3) 1 *$ *)% O? TOTA! $%.% 1*.9F 11.31 1$.1* *. 4.% 4.4$ 4.4F 4.41 4.43 4.3F

OUT

47

1*. :unici#a' Co#. Tota' :3

F 49F$

4.4F9 144.44

ANA!@>I> O? INH1>T:1NT> IN *44F:


1!i0e the #revious year this year a'so the +aDor #ortion o" the

invest+ents 2as ca#tured by centra' govern+ent securities. *There 2as an increase in invest+ent in centra' &ovt. securities "ro+

$F. F7 3 $%.% , it sho2ed an Increase o" 3.3$7 3?o''o2ing the trend o" #ast 11 years this year a'so the net invest+ent

in securities increased, it 2as $F. F in the #revious year and rose to $%.% in this year, sho2ing an increase o" *.$7. FInvest+ent in the deve'o#+ent o" in"rastructure at the beginning 2as

F$.$*7 and at the end 2as *9.9*7, 2hich sho2ed a dec'ine o" 3F.*)7 2hich 2as =uite considerab'e

48

$-

!oans to industries 2as stab'e at 4.97 o" the tota' invest+ents.

%-

There is an i+#ortant #oint to be seen in this year as this is the "irst

ti+e ICICI 6RU!I?1 started to invest in #o2er generation o" #rivate sector. )#rivate sector. The invest+ent in the #o2er generation o" #rivate sector 2as 4.3F7 It is "ro+ this year ICICI 6RU!I?1 started direct'y investing in the

o" the tota' invest+ent. 9?ro+ this year ICICI 6RU!I?1 started investing in deve'o#ing

trans#ort i.e., rai'2ays, #orts, road2ays. The #ercentage o" invest+ent in this 2as 4.437 2hich 2as =uite +argina'. 14ICICI 6RU!I?1 started to he'# the +unici#a' counci's and

cor#orations "ro+ this year and the #ercentage o" invest+ent stood at 4.44F7 and the a+ount invested 2as F crores.

49

INH1>T:1NT O? ICICI 6RU!I?1 IN T81 @1AR *44$,In Crores-

61RC1NTA&1 T@61> O? INH1>T:1NT 1. Centra' &ovt. >ec. *. >tate &ovt. J other &ovt. &uaranteed :ar0etab'e >ec. 3. 1'ectricity ,>1(sF. 8ousing $. /ater >u##'y J >e2erage ,:un R S.6%. >tate Road Trans#ort Cor#n. ). !oans to Industria' 1st. . !oans to >ugar Co3o# 9. Deve'o#+ent Authority 14. Road2ays, 6ort, Rai'2ays 11. 6o2er &eneration ,6vt. >ector1*. :unici#a' Co#. Tota' :3 31333*44$ $%1 $ 1*9* 14$91 1F*4) *$4 %)1 F$ 3) 1 *$ 41 F 9 443 O? TOTA! $).33 13.19 14. 1 1F.$4 *.$% 4.% 4.4$ 4.43 4.441 4.43 4. * 4.44F 144.44

OUT

50

ANA!@>I> O? INH1>T:1NT> IN *44$:


1Tota' net invest+ent in securities 2as $%.% 7 2hich raised to )4.$*7

sho2ing a gro2th rate o" *F.F17. *A tota' invest+ent in deve'o#+ent activity in this year 2as Rs.*)9)

crores 2hich 2as * .$F7o" the tota' invest+ent, re+aining a'+ost stab'e 2ho co+#ared to *9.9*7 in the #revious year. 36ercentage o" invest+ents granted as 'oan has dec'ined by *).37 and

stood at 4.4 7 o" the tota' invest+ent. FDirect invest+ent in #rivate sector has raised by 1F1.1)7 and 2as

4. *7 o" the tota' 2hen co+#ared to 4.3F7 in the #revious year.

51

INH1>T:1NT O? ICICI 6RU!I?1 IN T81 @1AR *44%,In Crores-

61RC1NTA&1 T@61> O? INH1>T:1NT 1. Centra' &ovt. >ec. *. >tate &ovt. J other &ovt. &uaranteed :ar0etab'e >ec. 3. 1'ectricity ,>1(sF. 8ousing $. /ater >u##'y J >e2erage ,:un R S.6%. >tate Road Trans#ort Cor#n. ). !oans to Industria' 1st. . !oans to >ugar Co3o# 9. Deve'o#+ent Authority 14. Road2ays, 6ort, Rai'2ays 11. 6o2er &eneration ,6vt. >ector1*. :unici#a' Co#. Tota' :3 313334% )4$33 1F1$% 11931 1$ $ *99) )3% F$ 3) 1 $ 1F) F 11) O? TOTA! $9. 3 1*.41 14.1* 13.** *.$F 4.%* 4.4F 4.43 4.441 4.4) 1.*$ 4.443 144.44

OUT

52

ANA!@>I> O? INH1>T:1NT> IN *44%:


1Tota' net invest+ent in securities 2as )4.$*7 2hich raised to )1. F7

sho2ing a gro2th rate o" 1. )7, but the gro2th rate dec'ined by 9*.37. *Tota' invest+ents in deve'o#+ent activity in this year 2ere Rs.311$4

crores 2hich 2as *%.F*7 o" the tota' invest+ent, re+aining a'+ost near 2hen co+#ared to * .$F7 in the #revious year. 36ercentage o" invest+ents granted as 'oan has dec'ined by 1*.$7 and

stood at 4.4)7 o" the tota' invest+ent. FDirect invest+ent in #rivate sector has raised by F$7 and 2as 1.*$7

o" the tota' 2hen co+#ared to 4. *7 in the #revious year.

53

INH1>T:1NT O? ICICI 6RU!I?1 IN T81 @1AR *44),In Crores-

61RC1NTA&1 T@61> O? INH1>T:1NT 1. Centra' &ovt. >ec. *. >tate &ovt. J other &ovt. &uaranteed :ar0etab'e >ec. 3. 1'ectricity ,>1(sF. 8ousing $. /ater >u##'y J >e2erage ,:un R S.6%. >tate Road Trans#ort Cor#n. ). !oans to Industria' 1st. . !oans to >ugar Co3o# 9. Deve'o#+ent Authority 14. Road2ays, 6ort, Rai'2ays 11. 6o2er &eneration ,6vt. >ector1*. :unici#a' Co#. Tota' :3 313334) $1 1 1) )) 1*F4* 1)99 3%$) ) F F$ 3) 1 3*$ 1%1$ F 1399*% O? TOTA! %4. 1*.) . % 1*. % *.%1 4.$% 4.43 4.43 4.441 4.*3 1.1$ 4.443 144.44

OUT

54

ANA!@>I> O? INH1>T:1NT> IN *44):


1Tota' net invest+ent in securities 2as )1. F7 2hich raised to )3.%$7

sho2ing a gro2th rate o" *.$*7, sho2ing a good increase 2hen co+#ared to the #revious year. *Tota' invest+ents in deve'o#+ent activities in this year 2ere Rs.3F F*

Crores 2hich 2as *F.947 o" the tota' invest+ent, sho2ing a dec'ine o" %.9$7 2hen co+#ared to *%.)%7 in the #revious year. 36ercentage o" invest+ents granted as 'oan has dec'ined by 1F.37 and

stood at 4.4%7 o" the tota' invest+ent. FDirect invest+ent in #rivate sector has decreased by 7 and 2as

1.1$7 o" the tota' 2hen co+#ared to 1.*$7 in the #revious year.

55

INH1>T:1NT O? ICICI 6RU!I?1 IN T81 @1AR *414,In Crores-

61RC1NTA&1 T@61> O? INH1>T:1NT 1. Centra' &ovt. >ec. *. >tate &ovt. J other &ovt. &uaranteed :ar0etab'e >ec. 3. 1'ectricity ,>1(sF. 8ousing $. /ater >u##'y J >e2erage ,:un R S.6%. >tate Road Trans#ort Cor#n. ). !oans to Industria' 1st. . !oans to >ugar Co3o# 9. Deve'o#+ent Authority 14. Road2ays, 6ort, Rai'2ays 11. 6o2er &eneration ,6vt. >ector1*. :unici#a' Co#. Tota' :3 3133314 14993 *1F%3 13FF) 194$F F444 93 F$ 3) 1 % 1 3)9) 1F 1)33)4 O? TOTA! %3.F1 1*.3 ).)% 14.99 *.31 4.$* 4.43 4.4* 4.441 4.39 *.19 4.44 144.44

OUT

56

ANA!@>I> O? INH1>T:1NT> IN *414:


11ven this year invest+ent in the centra' &ovt. securities

increased 'i0e the #ast trend, it increased by F.1$7 and stood at %3.F17 out o" the tota' invest+ents. *The tota' net invest+ents in securities stood at )$.)97 i.e.,

+ore than #ercentage o" the tota' invest+ents, shoeing a gro2th o" *. 97. 3Tota' invest+ent in the deve'o#+ent o" in"rastructure

Rs.3)39$ crores, 2hich is *1.$%7 o" the tota' invest+ent. FInvest+ent in the #rivate sector 2as *.197 o" the tota'

invest+ent in *44 , sho2ing a gro2th rate o" 94.F37. 5) There is an i+#ortant #oint to be noted that "ro+ #ast F

years ICICI 6RU!I?1 o" India 2as investing F crores in the :unici#a' Cor#oration but "ro+ this year this a+ount increased to 1F rores.

57

invest+ent in deve'o#+ent authority re+ains constant "or the 2ho'e #eriod.

NH1>T:1NT O? ICICI 6RU!I?1 IN T81 @1AR *411,In Crores61RC1NTA&1 T@61> O? INH1>T:1NT 1. Centra' &ovt. >ec. *. >tate &ovt. J other &ovt. &uaranteed :ar0etab'e >ec. 3. 1'ectricity ,>1(sF. 8ousing $. /ater >u##'y J >e2erage ,:un R S.6%. >tate Road Trans#ort Cor#n. ). !oans to Industria' 1st. . !oans to >ugar Co3o# 9. Deve'o#+ent Authority 14. Road2ays, 6ort, Rai'2ays 11. 6o2er &eneration ,6vt. >ector1*. :unici#a' Co#. Tota' :3 3133311 13)*)% * 9 1F$4 199FF FF*4 13$ F$ 3) 1 ) 1 %14$ 1F *13F)) O? TOTA! %F.34 13.$ %. 4 9.3F *.4) 4.%F 4.4* 4.4* 4.444$ 4.3) *.94 4.41 144.44 OUT

58

ANA!@>I> O? INH1>T:1NT> IN *411:


1Invest+ent in centra' &ovt. securities goes u# even "urther

"ro+ %3.F17 3 %F.37, sho2ing gro2th rate o" 1.F7 *Net invest+ent in securities increased )$.)97 3 ) . 7,

sho2ing a net increase o" F.4 7 3Invest+ent in the deve'o#+ent o" in"rastructure 2as

*1.$%7, 2hich reduced to 1 . F7. F$!oans granted reduced by *47 and stood at 4.4F7. Direct invest+ent in 6vt. >ector 2as *.197 in the

#revious year and raised by 3*.F*7 and stood at *.97 o" the tota' invest+ent.

59

&RA68 >8O/IN& N1T INH1>T:1NT> @1AR@

60

?INDIN&>
1ICICI 6RUD1NTIA! !I?1 has invested Rs.F%)$ crores in the year

19 ) 2hich is 39.%47 o" its #ro"its in the centra' govt. sector and the invest+ent has increased to 3)334 crores in the ne<t decade i.e. in the year 199) 2hich is $F. F7 out o" #ro"its. *3It has drastica''y increased its invest+ents in the centra' govern+ent. There 2as a dec'ine in the invest+ent in state govern+ent. It has

reduced "ro+ 1F.*%7 to 13.4 7. FICICI 6RU!I?1 has decreased its invest+ent in the year 199) in

in"rastructure "ro+F$.4*7 to 31.9)7. $!oo0ing at the s#eed gro2th o" ICICI 6RU!I?1 it is =uite c'ear that

ICICI 6RU!I?1 is heading to2ards beco+ing the 2or'd5s no 1 insurance co+#any. %As the years #assing on the invest+ent o" ICICI6RU!I?1 in centra'

govern+ent is increasing co+#ared to other avenues o" invest+ent. )The net invest+ent in the securities has been increased.

61

>U&&1>TION>
1ICICI 6RU!I?1 is a'so investing a certain #art o" its #ro"its in the state

road trans#ort cor#oration and #o2er generation ,6vt. >ector- but there is a stab'e gro2th in these invest+ents. *In the year *44$ the tota' invest+ent in securities has increased to

)4.$*7, 2hich sho2s a tre+endous gro2th rate o" *F.F*7. 3ICICI 6RU!I?1 has decreased giving 'oans, and the #ercentage

decrease by *).37. FThe invest+ents in the #rivate sector a'so raised drastica''y "ro+ the

year *44F3*44$, 2hich is 1F1.1)7.

62

CONC!U>ION>
1sectors. *generation etc. 3:ore Insurance #o'icies need to be introduced that suit a'' There is a need o" increase it invest+ents in 8ousing, 6o2er ICICI 6RUD1NTIA! is suggested to e<#and its #ort"o'io to other

c'assi"ications o" #eo#'e. F/e'' =ua'i"ied Invest+ent ana'yst need to be a##ointed in order to

#ro#er a''ocation o" #ort"o'io "or co+#any5s gro2th. $:ore #'ans have to be introduced by ICICI 6RU!I?1 in order to

co+#ete 2ith co+#etitors. %ICICI 6ru'i"e has to introduce +ore ta< bene"its #'ans in order to

attract +ore #o'icy ho'ders in the +ar0et.

63

(I(!IO&RA68@ (oo0s
>ecurities Ana'ysis and 6ort"o'io :anage+ent by 6rasanna

chandra. ,Tata :c&ra2 8i'' #roduction >ecurities Ana'ysis and 6ort"o'io :anage+ent by

H.A.Avadhani. ,8i+a'aya 6ub'ishing 8ouse 1ducation ?inancia' :anage+ent by :.@. Ihan J 6.I. Gain ,Tata :c&ra238i'' The Indian ?inancia' >yste+ by (harat H. 6atha0.,6earson

6ub'ishing Co. !td. >ons?inancia' :anage+ent by Dr .>.N. :ahesh2ari.,>u'tan Chand J

/ebsites
222.icici#ru'i"e.co+ 222.Irdaon'ine.org 222.+oneycontro'.co+

64

65