SUMMER INTERNSHIP PROJECT REPORT

for
Post Graduate Master Of Business Administration [MBA]

Submitted by
Name: Sk Jahid Mustaque
Roll No - 10300923040
Batch: 2023-2025

Haldia Institute of Technology

Haldia ,West Bengal

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 Section - 1

Introduction To Company

Introduction To Project

Section - 2

Literature Review

Section – 3

Research Methodology

Scope and Limitations

Section- 4

Analysis & Findings

Section - 5

Conclusion & Recommendation

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 Section - 1
Introduction to Aditya Birla Group

Aditya Birla Group is within side the League of Fortune 500, an international
conglomerate. A brilliant pressure of over 140,000 personnel belonging to one
hundred nationalities anchors it. The Group is constructed on a robust basis of
stakeholder cost creation. With over seven years of accountable commercial
enterprise practices, their organizations have grown into international powerhouses
in various sectors – metals, pulp and fiber, chemicals, textiles, carbon black,
telecom and cement. Today, over 50% of Group sales float from distant places
operations that span 36 nations in North and South America, Africa, and Asia.

Aditya Birla Capital Limited (ABCL) is the retaining business enterprise of all of the
economic offering organizations of the Aditya Birla Group.

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Introduction to Aditya Birla Capital

Aditya Birla Capital Limited is a part of the Aditya Birla Group and is the financial services
arm of the conglomerate. It operates across various segments of the financial services
industry, providing a wide range of products and services to individuals, businesses, and
institutional clients.

The company offers services in the following key areas:

Life Insurance: Aditya Birla Sun Life Insurance is a joint venture between Aditya Birla
Group and Sun Life Financial Inc., a leading international financial services organization. It
offers a comprehensive range of life insurance solutions, including protection plans, savings
plans, retirement plans, and child plans.

Asset Management: Aditya Birla Sun Life Asset Management Company Limited is one of
India's leading asset management companies, managing a diverse portfolio of mutual funds
catering to different investment objectives and risk profiles.

Health Insurance: The company also provides health insurance products to cover medical
expenses and offers plans tailored to meet the specific health care needs of individuals and
families.

General Insurance: Aditya Birla Capital also offers various general insurance products,
including motor insurance, travel insurance, home insurance, and more, to safeguard against
unforeseen events and losses.

Housing Finance: Through its subsidiary, Aditya Birla Housing Finance Limited, the
company provides housing finance solutions, making homeownership more accessible to
individuals.

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Wealth Management: Aditya Birla Capital offers wealth management and advisory services
to high-net-worth individuals and corporate clients, assisting them in achieving their financial
goals.

Personal Finance: The company provides personal finance solutions, including loans and
credit offerings, to support various financial needs of individuals.

Aditya Birla Capital aims to be a one-stop-shop for financial solutions, catering to the diverse
needs of its customers. It leverages the vast expertise and experience of the Aditya Birla
Group to provide innovative and customer-centric financial products and services. As of my
last update in September 2021, Aditya Birla Capital continued to be a significant player in
India's financial services sector, contributing to the group's overall growth and performance.
Please note that there might have been developments or changes beyond my last update.

Subsidiaries of Aditya Birla Capital:

 Aditya Birla Finance Limited
is a subsidiary of Aditya Birla Capital Limited, which is the financial services arm of the
Aditya Birla Group. Aditya Birla Finance Limited operates in the non-banking financial
company (NBFC) segment and provides various financial solutions to businesses and
individuals.

Key aspects of Aditya Birla Finance limited:

Business Loans: Aditya Birla Finance offers a range of loan products for businesses,
including term loans, working capital finance, equipment and machinery loans, and other
customized funding solutions.

Capital Market Financing: The company provides financing solutions to help investors and
traders in the capital market segment manage their financial requirements.

Infrastructure Financing: Aditya Birla Finance supports the infrastructure sector by offering
specialized financing solutions for infrastructure projects.
Structured Finance: The company provides structured financing options for businesses with
specific financing needs, including project finance, acquisition finance, and more.

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Loan Against Property: Aditya Birla Finance offers loans against residential and commercial
properties, allowing individuals to unlock the value of their real estate assets.

Supply Chain Finance: The company provides supply chain financing solutions to help
businesses optimize working capital and strengthen their supply chain operations.

Aditya Birla Finance aims to cater to the diverse financial needs of its customers and prides
itself on providing innovative and customer-centric financial solutions. As part of the Aditya
Birla Group, it benefits from the group's extensive industry expertise and strong brand
reputation.

Aditya Birla Health Insurance Limited

Aditya Birla Health Insurance Co. Limited (ABHICL), a subsidiary of Aditya Birla
Capital Ltd (ABCL), is a joint venture between Aditya Birla Group and MMI
Holdings of South Africa. ABHICL was incorporated in 2015 wherein Aditya Birla
Capital Limited (ABCL) and MMI Strategic Investments (Pty) Ltd. hold 51% and
49% shares respectively. ABHICL serves as an enabler and influencer of health and
healthcare choices that customers make, in addition to being a payer of healthcare
expenses.

Aditya Birla Housing Finance Limited

Aditya Birla Housing Finance Limited (ABHFL) is a fast-growing housing finance

company (HFC) in India. It has a net worth of Rs11,569 million and a lending book
valued at Rs.108283 million a of on December 31st, 2018. The company offers a
complete range of housing finance solutions such as home loans, home extensive
loan so an, plot & home construct loans loan, home improvement loans an against
property, construction financing, lease rental discounting, commercial property
purchase loan, so an and property advisory services. Through its lending solutions,
ABHFL enables customers to own their homes home.

Aditya Birla Insurance Brokers Limited

Aditya Birla Insurance Brokers Limited (ABL), a subsidiary of Aditya Birla Capital
Limited, is a leading composite insurance broker and regulated by the Insurance

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Regulatory and Development Authority of India (IRDAI). ABIBL is in the business
of integrated insurance advisory services for companies and individuals. ABIBL
aims to simplify the complex world of general insurance for its customers. It
employs a team of experts to analyze a client’s business and estimate the level of
risk exposure before structuring an appropriate general insurance solution. ABIBL
focuses on developing cost-e AB Live and customized insurance packages while
ensuring that the process of claim settlements is swift and painless.

Aditya Birla Money

Aditya Birla Money Limited (ABML) is currently engaged in the business of
securities broking and is registered as a stock broker with SEBI. It offers equity and
derivatives trading through NSE and BSE and holds a PMS license from SEBI and
offers pa portfolio management services. It has a robust online and offline model
with a strong technological backbone to support a large registered customer base of
around 350,685 customers. It offers a wide range of solutions including broking,
portfolio management services, depository and e-insurance repository solutions and
distribution of other financial products.

Aditya Birla PE Advisors Limited

Aditya Birla PE Advisors is a wholly owned subsidiary of ABCL. It provides financial
advisory and management services with focus on managing venture capital funds and
alternate investment funds. ABPE is presently appointed as an investment manager to two
SEBI registered domestic venture capital funds, namely, Aditya Birla Private Equity - Fund I
and Aditya Birla Private Equity – Sunrise Fund, where it currently manages a gross AUM of
Rs. 11.63 billion under these two funds. In addition, ABPE offers investment management
and advisory services to domestic and global investors and partners with its portfolio
companies to provide them with strategic direction for proper taxations. ABPE focuses on
growth investments in mid-market companies based in India. ABPE seeks to tap the broader
alternative funds market through a variety of products such as buyout funds and mezzanine
funds in the future.

Aditya Birla Sun Life Asset Management Company

Aditya Birla Sun Life AMC Limited (ABSLAMC, formerly known as Birla Sun
Life Asset Management Company Limited) is established in 1994. It is a joint

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venture between the Aditya Birla Capital Limited and Sun Life (India) AMC
Investments Inc. ABSLAMC is primarily the investment manager of Aditya Birla
Sun Life Mutual Fund, a registered trust under the Indian Trusts Act, 1882.
Additionally, ABSLAMC has various other business lines such as Portfolio
Management Services, Real Estate Investments and Alternative Investment Funds.,
The Portfolio Management Service is a highly customized service designed to seek
consistent long-term results by adopting a research based, methodical approre
search-based.

Aditya Birla Sun Life Mutual Fund

Established in 1994, Aditya Birla Sun Life Mutual Fund (ABSLMF) is cosponsored
by Aditya Birla Capital Limited (ABCL) and Sun Life (India) AMC Investments
Inc. Having total domestic assets under management (AUM) of close to Rs. 2423
billion for the quarter ended December 31st, 2018. ABSLMF is one of the leading
Fund Houses in India based on domestic average AUM as published by the
Association of Mutual Funds of India (AMFI). ABSLMF has an impressive mix of
reach, a wide range of product offerings across equity, debt, balanced as well as
structured asset classes and sound investment performance, and around 6.8 million
investor folios as of December 31st, 2018.

Aditya Birla Sun Life Pension Management Limited

Aditya Birla Sun Life Pension Management Limited (ABSLPML) (formerly known
as Birla Sun Life Pension Management Ltd.), incorporated in 2015, is a wholly
owned subsidiary of Aditya Birla Sun Life Insurance Company Limited. It is
registered with the Pension Fund Regulatory and Development Authority (PFRDA)
to act as the Pension Fund Manager of the NPS Trust under the National Pension
System (NPS) to manage the pension funds for the private sector or by the
applicable b, the schemes, the guidelines issued by the IRDA.

Aditya Birla Asset Reconstruction Company Limited

Aditya Birla ARC, a subsidiary of Aditya Birla Capital Ltd (ABCL), is incorporated
on March 10, 2017, and received its license from the RBI to commence business as
an asset reconstruction company in March 2018. The net worth of Aditya Birla ARC

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as of March 31, 201,8 is INR 107 crore d, and its revenue of March 31, 2,018 is
INR 0.9 crore. ABARC, upon com the ,commencement of business, has focused
primarily on acquiring the idle non-performing assets (NPA) lying in the financial
sector (including banks and financial institutions) with a sector agnostic focus on the
NPAs in the Micro, Small and Medium Enterprises sector (SM,E/MSME) and the
mid-corporate sector.

Aditya Birla Sun Life Insurance

Sun Life Financial is a leading international financial services organization

providing insurance, wealth and asset management solutions to, individual and
corporate Clients. Sun Life Financial has operations in a number of markets
worldwide, in several in e United States, the United Kingdom, Ireland, Hong Kong,
the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam,
Malaysia and Bermuda. As of March 31, 2021, Sun Life Financial had total assets
under management of CAD 1,304 billion. For more information, please visit
www.sunlife.com. Sun Life Financial Inc. trades on the Toronto (TSX), New York
(NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

Aditya Birla Sun Life Insurance Company Limited (ABSLI) is a part of Aditya Birla Capital
Ltd (ABCL). ABSLI was incorporated on August 4th, 2000, and commenced operations on
January 17th, 2001. ABSLI is a 51:49 joint venture between the Aditya Birla Group and Sun
Life Financial Inc., an international financial services organization in Canada.

As of March 2021, total AUM of ABSLI Stood at Rs.526the ,151 million. ABSLI
recorded a gross premium income of Rs.97,752 million in FY 2020-21 and
registering a y-o-y growth of 22% register medium with Individual Business FYP at
Rs20,760 ABSLI has a nationwide distribution presence nationwide branches, 7
bank assurance partners, 6 distribution channels, over 90,000 direct selling agents
and, other Corporate Agents, and Broke the webs websites website site. Here are
Comb over 13,000 employees and more than 17 lac active customers.

Types of Life Insurance Policy:

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 1. Term Insurance Plan –

A term insurance plan, also known as a term life insurance plan, is a type of life insurance
policy that provides coverage for a specific period, typically for a fixed number of years. If
the insured person passes away during the policy term, the designated beneficiaries receive a
death benefit pay out from the insurance company.
Key features of a term insurance plan include:
Temporary Coverage: Unlike whole life or permanent life insurance, term insurance is
temporary and provides coverage for a specific duration, such as 10, 20, or 30 years. Once
the policy term expires, the coverage ends, and there is no payout if the insured survives the
term.
Death Benefit: The primary purpose of term insurance is to provide financial protection to
the beneficiaries in case the insured dies during the policy term. The death benefit is the
amount paid out to the beneficiaries, which is typically a lump sum.
Affordability: Term insurance is generally more affordable compared to permanent life
insurance policies because it does not accumulate cash value or offer additional investment
components.
No Cash Value Accumulation: Unlike permanent life insurance policies like whole life or
universal life, term insurance does not build up cash value over time. It is designed purely as
a risk management tool to provide a death benefit.
Renewability and Convertibility: Some term insurance plans may offer the option to renew
the policy at the end of the term or convert it into a permanent life insurance policy without
the need for a medical exam.
Choice of Term Length: Policyholders can select the duration of the term based on their
needs and financial goals. Common terms include 10, 20, and 30 years, but other options may
be available depending on the insurance provider.
Medical Underwriting: To obtain a term insurance policy, applicants typically undergo a
medical underwriting process, where the insurance company assesses their health and
lifestyle risks to determine the premium rate.

Aditya Birla provides term insurance plan:

• Aditya Birla Sun Life Insurance Life Shield Pl
• Aditya Birla Sun Life Insurance Digi shield Plan

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Aditya Birla Sun Life Insurance Life Shield Plan:
It was a term insurance plan offered by Aditya Birla Sun Life Insurance Company Limited,
one of the leading insurance providers in India. Please note that insurance companies may
update their product offerings, so it's essential to verify the current details directly from the
company or their official website.
Below are the key features and benefits that were typically associated with the Aditya Birla
Sun Life Insurance Life Shield Plan:
Term Insurance Coverage: The Life Shield Plan provided pure term insurance coverage,
which means it offered financial protection to the policyholder's family in case of their
unfortunate demise during the policy term.
Flexible Policy Terms: Policyholders could choose the duration of the term according to
their needs, ranging from a minimum of a few years up to a specific maximum age.
Death Benefit: In the event of the insured's death during the policy term, the plan would pay
out a death benefit to the beneficiaries, helping to provide financial security and support
during difficult times.
Option for Regular or Limited Premium Payment: The plan might have offered the
flexibility to select between regular premium payment throughout the policy term or limited
premium payment for a shorter period.
Rider Options: Depending on the specific variant of the Life Shield Plan, policyholders
might have had the option to enhance their coverage by adding riders (additional benefits) to
the base policy. Riders could include critical illness cover, accidental death benefit, disability
benefit, etc.
Tax Benefits: The premiums paid towards the policy and the death benefit received by the
beneficiaries were eligible for tax benefits as per the prevailing tax laws in India.
High Sum Assured Rebate: Policyholders opting for a high sum assured might have been
eligible for a rebate on the premium, making the coverage more affordable.
Grace Period and Free Look Period: The plan likely provided a grace period for premium
payment in case of any delays, and a free look period during which the policyholder could
review the policy terms and conditions and return the policy if not satisfied.

Aditya Birla Sun Life Insurance Digi shield Plan

It was a term insurance plan offered by Aditya Birla Sun Life Insurance Company Limited,
one of the prominent insurance providers in India. However, please be aware that insurance

11
companies may make changes to their product offerings over time, so it's crucial to verify the
current details directly from the company or their official website.
Here are some of the key features and benefits that were typically associated with the Aditya
Birla Sun Life Insurance Digi Shield Plan:
Term Insurance Coverage: The Digi Shield Plan provided pure term insurance coverage,
which means it offered financial protection to the policyholder's family in the event of their
untimely demise during the policy term.
Online Term Plan: As the name suggests, the Digi Shield Plan was an online term insurance
plan, allowing customers to conveniently purchase the policy online through the company's
website or other digital channels.
Flexible Policy Terms: Policyholders had the flexibility to choose the duration of the term
according to their needs, with options ranging from a few years up to a specific maximum
age.
Death Benefit: In case of the insured's death during the policy term, the plan would pay out a
death benefit to the beneficiaries, providing financial security and support to the family.
Choice of Premium Payment Options: The plan might have offered options for premium
payment, such as regular premium payment throughout the policy term or limited premium
payment for a shorter duration.
Enhanced Protection with Riders: Depending on the variant of the DigiShield Plan,
policyholders might have had the option to enhance their coverage by adding riders
(additional benefits) to the base policy. Riders could include critical illness cover, accidental
death benefit, disability benefit, etc.
Tax Benefits: The premiums paid towards the policy and the death benefit received by the
beneficiaries were likely eligible for tax benefits as per the prevailing tax laws in India.
Grace Period and Free Look Period: The plan probably provided a grace period for
premium payment in case of any delays and a free look period during which the policyholder
could review the policy terms and conditions and return the policy if not satisfied.

2.Whole Life Insurance Plan

A whole life insurance plan is a type of permanent life insurance that provides coverage for
the entire lifetime of the insured, as long as the premiums are paid as per the policy terms.
Unlike term insurance, which provides coverage for a specific term or period, whole life
insurance remains in force throughout the policyholder's lifetime, provided the premiums are
paid.

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Key features of a whole life insurance plan include:
Lifetime Coverage: Whole life insurance guarantees coverage for the entire life of the
insured, regardless of when death occurs, as long as premiums are paid.
Death Benefit: In the event of the policyholder's death, the insurance company pays out a
death benefit to the designated beneficiaries. This death benefit is generally tax-free and is
usually paid as a lump sum.
Cash Value Accumulation: One of the distinguishing features of whole life insurance is
the accumulation of cash value over time. A portion of the premium paid goes into a cash
value account, which grows on a tax-deferred basis. Policyholders can often access the cash
value through policy loans or withdrawals, though doing so may reduce the death benefit.
Fixed Premiums: Premiums for whole life insurance plans are typically fixed and remain
constant throughout the life of the policy. This can be advantageous as the insured won't
experience premium increases as they age or if their health condition changes.
Dividends (Participating Policies): Some whole life insurance plans are "participating
policies," which means policyholders may receive dividends from the insurance company
based on the company's financial performance. Dividends can be taken as cash, used to
reduce premiums, accumulate interest, or purchase additional coverage.
Level Death Benefit: The death benefit is usually guaranteed and remains level throughout
the policy's existence, providing a predictable payout to beneficiaries upon the insured's
death.
Estate Planning and Wealth Transfer: Whole life insurance is often used for estate
planning purposes as it provides a guaranteed source of funds that can help cover estate taxes
or leave a financial legacy for beneficiaries.
Surrender Value: If the policyholder decides to surrender the policy before death, they can
receive the cash surrender value, which is the cash value accumulated in the policy minus any
surrender charges or outstanding loans.

• ABSLI VISION LIFE INCOME PLUS PLAN

• ABSLI VISION LIFE INCOME PLAN
• ABSLI VISION LIFE SECURE PLAN

ABSLI VISION LIFE INCOME PLUS PLAN

In short, the ABSLI Vision Life Income Plus Plan was a life insurance cum savings plan
designed to provide both life insurance coverage and regular income for a specific period.

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Here are the key features of the plan:
Life Insurance Coverage: The plan offered life insurance coverage to the insured individual
for a specified term. In the event of the policyholder's unfortunate demise during the policy
term, a death benefit would be paid out to the beneficiaries.
Regular Income: One of the unique features of this plan was the provision of regular income
pay outs to the policyholder or their family during the policy term. These income payments
were scheduled to be paid at regular intervals and could help supplement the policyholder's
income or support financial needs.
Policy Term Options: The plan likely provided flexibility in choosing the policy term,
allowing policyholders to select a term that best aligned with their financial goals and
requirements.
Premium Payment Options: The plan might have offered different premium payment
options, including single premium or regular premium payments, depending on the
policyholder's preferences.
Maturity Benefit: At the end of the policy term, if the insured survived the entire duration, a
maturity benefit might have been payable. The maturity benefit could include the sum
assured, accrued bonuses (if any), or other applicable benefits.
Bonuses (if applicable): Depending on the plan's terms, the policyholder might have been
eligible to receive bonuses, which could be regular bonuses or terminal bonuses, if any,
depending on the company's performance.
Tax Benefits: The premiums paid and the benefits received under the ABSLI Vision Life
Income Plus Plan were likely eligible for tax benefits as per the prevailing tax laws in India.
Surrender Value and Loan Facility: The plan might have allowed policyholders to
surrender the policy and receive a surrender value if needed. Additionally, some plans offer
the option to take policy loans against the cash value, if available.

ABSLI VISION LIFE INCOME PLAN:

It was a life insurance policy offered by Aditya Birla Sun Life Insurance Company Limited
(ABSLI), one of the prominent insurance providers in India. However, please note that
insurance companies may update their product offerings, so it's essential to verify the current
details directly from the company or their official website.
The ABSLI Vision Life Income Plan was a life insurance cum savings plan designed to
provide financial protection and a regular income stream to the policyholder.

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ABSLI VISION LIFE SECURE PLAN
The ABSLI Vision Life Secure Plan was a non-participating, non-linked term insurance plan
designed to provide comprehensive life coverage at an affordable premium. Here are the key
features of the plan:
Term Insurance Coverage: The plan offered life insurance coverage to the insured
individual for a specific term or duration. In the unfortunate event of the policyholder's
demise during the policy term, a death benefit would be paid out to the beneficiaries.
Death Benefit: The death benefit was the primary feature of the plan and provided a lump
sum pay out to the nominee(s) upon the insured's death during the policy term. This payout
could be used to meet financial obligations, replace lost income, or support the family's
financial needs.
Policy Term Options: The plan likely provided flexibility in choosing the policy term,
allowing policyholders to select a term that best aligned with their financial goals and
responsibilities. Common term options include 10, 15, 20, or more years.
Premium Payment Options: The plan might have offered various premium payment
options, including regular premium payment, limited premium payment, or single premium
payment, depending on the policyholder's preferences.
Enhanced Coverage with Riders: Depending on the variant of the ABSLI Vision Life
Secure Plan, policyholders might have had the option to enhance their coverage by adding
riders (additional benefits) to the base policy. Riders could include critical illness cover,
accidental death benefit, disability benefit, etc.
Surrender Value: As a non-linked plan, the ABSLI Vision Life Secure Plan was likely
designed to provide pure life insurance coverage without any savings or investment
component. Hence, it might not have accumulated a cash value or offered a surrender value.
Tax Benefits: The premiums paid towards the ABSLI Vision Life Secure Plan and the
benefits received under the policy were likely eligible for tax benefits as per the prevailing
tax laws in India.
Grace Period and Free Look Period: The plan probably provided a grace period for
premium payment in case of any delays and a free look period during which the policyholder
could review the policy terms and conditions and return the policy if not satisfied.

3. Endowment Plan
An endowment plan is a type of life insurance policy that combines both insurance coverage
and savings or investment components. It is a popular financial product that provides a

15
lumpsum pay out to the policyholder (or beneficiaries) either upon the maturity of the policy
or in the event of the policyholder's death during the policy term.
Here are the key features of an endowment plan:
Life Insurance Coverage: The endowment plan offers life insurance coverage, ensuring that
if the policyholder passes away during the policy term, a death benefit is paid out to the
designated beneficiaries.
Maturity Benefit: If the insured survives the entire policy term (maturity), the endowment
plan pays out a lump-sum amount known as the maturity benefit. This benefit includes the
sum assured (the guaranteed amount) along with any bonuses or investment returns accrued
over the policy term.
Savings or Investment Component: A significant portion of the premiums paid towards
the endowment plan is invested by the insurance company in various financial instruments
such as bonds, stocks, or fixed-income assets. This helps in accumulating a cash value over
time. Guaranteed and Non-Guaranteed Benefits: Endowment plans typically come with
both guaranteed and non-guaranteed benefits. The sum assured and the minimum guaranteed
returns are the guaranteed components, while bonuses and additional returns from
investments are non-guaranteed and depend on the insurance company's performance. Fixed
Premiums: The premiums for endowment plans are usually fixed and remain constant
throughout the policy term. This allows policyholders to plan their finances more effectively.
Limited or Regular Premium Payment: Endowment plans can have limited premium
payment terms, where premiums are paid for a specific period, or regular premium payment
terms, where premiums are paid throughout the policy term.
Surrender Value: Most endowment plans have a surrender value, which means that if the
policyholder decides to terminate the policy before maturity, they can receive a portion of the
accumulated cash value.
Tax Benefits: The premiums paid and the benefits received under an endowment plan may
be eligible for tax benefits as per the prevailing tax laws in the policyholder's country.

• ABSLI ASSURED SAVING PLAN

• ABSLI GURANTEED MILESTONE PLAN
• ABSLI SAVINGS PLAN
• ABSLI VISION ENDOWMENT PLUS PLAN
• ABSLI JEEVAN BACHAT PLAN

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 4. CHILD INSURANCE PLAN:
A child insurance plan is type of insurance policy specifically designed to provide financial
security for a child future needs, education and other needs. These plans are typically
purchased by parents or guardians on behalf of their children and offers a combination of life
insurance coverage and savings or investment components. The main objective of a child
insurance plan is to create a corpus of funds that can be utilized to meet various milestones
and requirements of a child.

• ABSLI CHID FUTURE ASSURED PLAN

• ABSLI VISION STAR PLAN

5. MONEY BACK PLAN:

A money back policy (also referred to as a money return policy or cash back insurance
policy) is a unique life insurance plan that not only provides life cover but also offers the
benefit of periodic returns during the tenure of the policy. In such a policy, a certain
percentage of the sum assured is returned to the policyholder at regular intervals. This is
known as the 'Survival Benefit'. If the policyholder survives the entire policy term, he/she
receives the balance sum assured. If the policyholder unfortunately passes away during the
term of the policy, the full sum assured is paid to the nominee, regardless of the survival
benefits already paid.
Features of Money back policy are:
 Survival Benefit
 Maturity Benefit
 Death Benefit
 Bonus

ABSLI PROVIDES:
• ABSLI SECURE PLUS PLAN
• ABSLI VISION MONEY BACK PLUS PLAN
• ABSLI ASSURED FLEXI SAVING PLAN  ABSLI INCOME ASSURED PLAN
• ABSLI ASSURED INCOME PLUS PLAN

6. UNIT LINKED INSURANCE PLAN: (ULIP)

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Unit Linked Insurance Plans (ULIPs) have succeeded in bringing together the features of two
important products - life insurance and investments - and merge them in one single solution.
This way, instead of monitoring and managing two different products, you can meet your
requirements with one single solution.

ULIPs allow you to customize your investment by choosing the fund in which you want your
money to be invested in. The returns you get depend on the performance of the fund you have
selected. Moreover, most ULIPs allow you to switch funds from time to time, according to
your needs.

TYPES OF PLAN ABSLI OFFERS:

• SMART GROWTH PLAN
• WEALTH INFINIA
• WEALTH ASSURE PLUS
• WEALTH MAX PLAN
• WEALTH SECURE PLAN
• FORTUNE ELITE PLAN
• WEALTH ASPIRE PLAN

7. GROUP INSURANCE PLAN:

Orchestrating organisational success through customised protection and retirement solutions
for the most prized assets of your company – employees.

ABSLI Group Business is a part of the Aditya Birla Sun Life Insurance Company, the life
insurance subsidiary of Aditya Birla Capital Ltd. Comprising seasoned professionals from the
realm of insurance and investments, we offer innovative Group Protection and Group
Retirement solutions to corporates that help them nurture and foster strong relationships with
their employees.

Our solutions also cater to the financial needs of affinity groups — non-employer-employee,
dealer ecosystem and industry bodies — sharing a common interest. One of the leading
players in the Group Insurance space, our holistic offerings has given us a robust clientele

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and we continue to build strong and enduring relationships through our end-to-end Group
offerings.

• ABSLI GROUP INCOME REPLACEMENT PLAN

8. RETIREMENT PLANS:
A retirement plan is a financial strategy designed to help individuals accumulate savings
and generate a steady income during their retirement years. These plans offer various
investment options, including pension policies, retirement savings plans, and insurance
policies, to suit different financial goals and risk appetites. The primary purpose of a
retirement plan is to ensure financial security and maintain a comfortable lifestyle after

one stops working.

WHY DO YOU NEED RETIREMENT PLAN?

 Financial Independence
 Maintain a standard of living
 Cover a unforeseen expenses
 Inflation Protection
 Longevity Risk
 Tax Benefits
 Peace of mind

3 TYPES OF RETIREMENT PLAN:

1. GENERAL ANNUITY PLAN
2. SINGLE PREMIUM ANNUITY PLAN
3. PENSION ACCUMULATION PLAN

4 RETIREMENT PLANS ABSLI OFFERS:

• ABSLI EMPOWER PENSION PLAN
• ABSLI EMPOWER PENSION SP PLAN
• ABSLI SARAL PENSION
• ABSLI GURANTEED ANNUITY PLUS

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 TYPES OF MUTUAL FUNDS:

 Equity Fund
 Debt Fund
 Hybrid Fund
 Other Fund

What are Equity Funds?

An equity fund invests in stocks/equity shares of companies of different market
capitalization. They are managed by experienced professional portfolio managers who aim to
generate returns for investors by investing in businesses that will grow over long term. These
funds can be actively or passively managed. Equity funds can be categorized based on their
investment mandate and the kind of stocks and sectors they invest in. For example there
could be large cap funds or midcap funds or funds which invest in a particular sector.

How do I start an SIP in equity Funds in India?

An SIP in equity funds can be easily started online on the website of Aditya Birla Sun life
Mutual Fund. Once registered on the website, investors need to complete their e-KYC online.
This requires submission of basic investor details as well as PAN card and address proof
documents. Thereafter investors must simply choose the equity fund of their choice and
proceed to begin their SIP investment. Online payment modes can be opted for including
setting up an OTM (ONE- TIME mandate) for weekly/monthly debit of SIP instalments.

What are Benefits of Equity Fund?

 Professional Management

 Economies of Scale

 Diversification

 Systematic Investments

 Flexibility

 Liquidity

20
Equity Funds Available in Aditya Birla Sun Life Insurance Co :-
 Aditya Birla Sun Life Frontline Equity Fund

 Aditya Birla Sun Life Flexi Cap Fund

 Aditya Birla Sun Life Focused Equity Fund

 Aditya Birla Sun Life Equity Advantage Fund

What are Debt Funds?

Any Fund that invest more than 35% of the portfolio into debt and debt-related instruments is
known as a debt fund. These funds invest majorly into fixed income instruments such as
government securities, corporate bonds, treasury bills, money market instruments, etc. These
are known for their lower risk. On the flip side, the return potential of these funds can be
lower than equity funds. Some popular types of debt funds are mentioned below.

 Liquid Funds:-

Liquid funds invest in short-term debt instruments to generate reasonable returns over a

shorter tenure. Investors with a low-risk appetite wanting to park surplus funds for a short

period can consider investing in these funds. The maturity of these funds is up to 91 days.

What are duration of these funds?

These funds invest into debt instruments ensuring the Macaulay Duration (MD) of the fund is
as per the type of fund. For instance, the ultra-short duration fund comes with an MD of 3-6
months, and the long duration fund comes with an MD of more than 7+ years.

Benefits of Debt Funds:-

Access to Professional Expertise and Market Returns: Investing in a debt fund offers the
opportunity to earn interest as well as capital gains from debt. It allows retail investors to
access money markets or wholesale debt markets- segments in which they cannot directly
invest.
Lowers Portfolio Risk: Since debt funds are less risky than equity funds, a strategic
allocation to the best-performing debt funds reduces risk and brings stability to an investment

21
portfolio. Tactical investments in debt funds are useful to take advantage of temporary yield
opportunities.
Range of investment options: Debt funds are available along the entire spectrum of maturity
and credit risk. Shorter-duration funds generate regular and stable income. Longer duration
funds earn from interest income as well as capital gains and suit investors who can take on
higher NAV volatility. Overnight funds, liquid funds, corporate bond funds, and low-duration
funds tend to invest in the safest debt products. Ultra-short and short-duration funds may be
structured to take on credit risk to provide higher returns.
Liquidity: Debt funds are very liquid, and can be redeemed easily, usually within one or two
working days of placing the redemption request. Unlike bank fixed deposits or recurring
deposits, there is no lock-in period. While a few funds may impose a small exit load for early
withdrawal, in general, there are no penalties when a mutual fund investment is withdrawn.
Low-Cost Investment: According to the SEBI norms, the total expense ratio of a debt fund
cannot exceed 2% of Assets under Management. Among debt funds, overnight and liquid
funds have very low expense ratios, while dynamic and long-term funds charge higher
expense ratios.

Debt Funds available in Aditya Birla Sun life Insurance Company;

 Aditya Birla Sun Life Liquid Fund
 Aditya Birla Sun life Corporate Bond Fund
 Aditya Birla Money Manager Fund
 Aditya Birla Sun Life Savings Fund  Aditya Birla Overnight Fund

What are Hybrid Funds?

A hybrid Fund is a mutual fund scheme that invest your money in more than one asset class,
like equity, debt and others as per the scheme objective. The mix of asset classes aids in
diversification and may have the potential to reduce the risks involved.
For instance, a hybrid fund that invest in equity and debt assets is considered less risky than
pure equity funds and can generate potentially reasonable returns in long run
Different types of Hybrid Funds:

Aggressive Hybrid Funds

22
Aggressive or equity-oriented hybrid funds invest 65% to 80% of the portfolio in the equity
asset class. The rest is invested in debt instruments.
Conservative Hybrid Funds
Conservative or debt-oriented hybrid funds invest 75% to 90% of the portfolio in debt
instruments. The rest is invested in equity and related instruments.
Dynamic Asset Allocation Funds
These mutual funds dynamically invest across equity and debt instruments depending on the
market conditions and scheme objective.
Multi-Asset Allocation Funds
Multi-asset funds invest at least 10% of the portfolio in three asset classes. The two of these
asset classes typically include equity and debt. The 3rd asset class could be real estate, gold,
etc. The exposure in each asset class is increased or decreased per the market conditions.
Arbitrage Funds
Arbitrage funds aim to profit from the difference in the price of securities between two
markets, like cash and futures. For tax purposes, arbitrage funds are considered equity funds
and have an equity exposure of at least 65%. The rest is invested in debt instruments.
Equity Savings Funds
Along with equity and debt instruments, equity savings funds also invest in arbitrage
opportunities in the cash and derivatives market. However, these funds need to invest at least
65% of their portfolio into equity and at least 10% into debt instruments. Moreover, these
funds are obliged to state the minimum hedged and unhedged exposure in the Scheme
Information Document (SID) clearly.

How to invest in hybrid funds:

 Compare the Top Hybrid Funds and choose one as per your financial goal and risk
appetite

 Visit the official website of the fund house offering the selected scheme
 Register for a new account and complete online KYC, if you are already a registered
user, directly transact.

 Once your account is ready, search for the hybrid scheme you like to invest in

 Choose between Lump sum and SIP  Make the payment online.

23
Other Funds:

A fund of funds invests in a portfolio of mutual fund schemes that consists of underlying
assets rather than directly investing in stocks, bonds and other securities. The fund of funds
(FOF) strategy aims to achieve broad diversification and appropriate asset allocation with
investments in a variety of fund categories that are all wrapped into one fund.

Why invest in Other Mutual Funds:

In simple terms, an FOF aims to provide the added benefit of multiple fund managers and
much more diversity than a single fund. By investing in FOF, an investor not only spreads
out risk in stocks as per asset classes, but also gets a portfolio of fund managers to manage
his
money

Benefits of Other Mutual Funds:

 Greater Diversification
 Investment in best of funds based on track record
 Professional Management

Other Mutual Funds available in Aditya Birla Sun Life Insurance Co.Ltd:

 Aditya Birla Sun Life Nifty Bank ETF

 Aditya Birla Sun Life Nifty 50

 Aditya Birla Sun Life Nifty 50 Index Fund

 Aditya Birla Sun Life Gold

24
 INTRODUCTION TO THE PROJECT

Balanced Advantage Funds have emerged as a popular investment option, combining the
benefits of equity and debt instruments to strike a balance between risk and returns. In recent
years, the finance sector has witnessed significant growth and innovation, with BAF
becoming a preferred choice for investors seeking stability and potential upside in their
portfolios. This project aims to delve into the world of Balanced Advantage Funds, with a
particular emphasis on their performance within the Finance sector.

Research Objectives:

 To understand the concept of Balanced Advantage Funds and how they operate.

 To analyze the historical performance of Balanced Advantage Funds in comparison to

other investment options.

 To investigate the key factors influencing the success of Balanced Advantage Funds
in the Finance sector.

 To offer insights and recommendations to investors and financial institutions on

effectively utilizing Balanced Advantage Funds.

In this study the focus will be on analyzing the performance Balanced Advantage Funds
specifically within the finance sector. The sector’s unique characteristics, such as regulatory
influences, market trends and economic conditions, will be taken into account.

This part of the study will identify the key factors that contribute to the success or failure of
Balanced Advantage Funds within the Finance sector. Possible factors include Fund
management strategies, Macroeconomic influences and asset allocation techniques.
Balanced Advantage Fund:

Investors who have put money through systematic investment plans in balanced advantage
funds, which invest in a mix of equity, debt and arbitrage, have fared better over the threeyear
period through February than those who opted for pure equity mutual funds.

25
As per data from Value Research, average SIP returns for the three-year period from the
balanced advantage fund category was 3.78%. In comparison, large-cap funds have returned
3.48%, large and midcaps 3.05% and midcaps 2.2%. Investors in small cap funds have on
average lost 2.17%.

A sharp slide in stock prices in the fortnight ended February 28- the NSE Nifty lost 8.4% due
to concerns over the Coronavirus outbreak has weighted on the returns of equity Funds.

While there are no formal data available, as much as 85-90% of SIP investments is estimated
to be in equity mutual funds. Balanced advantage, hybrid, and debt funds account for the rest.

Equity as an asset has high volatility and investors who get scared by that and do not have a
7-10year time frame will be better off using balanced advantage funds said by S Shankar a
certified financial planner at wealth management company Credo Capital.

Balanced Advantage Funds that have started gaining popularity over the last three years are
dynamically managed equity mutual funds that typically alter their equity allocation between
30% and 80% depending on market valuations and usually considering the price earnings
ratio. When valuations are high, they reduce their equity allocation and when low increase it.

The number of investors using SIP’s to participate in equities and meet their financial goals is
increasing. Data from the Association of Mutual Funds in India show that the MF industry
had added, on an average,9.81 lakh SIP account each month so far in fiscal 2020, with an
average investment of about Rs 2800 a month per SIP account. Inflows through the SIP route
have been study and investors have poured in more than Rs 8000 crore every month for the
last 14 months, despite the volatility in the equity markets.
Balanced advantage funds are also a type of hybrid funds that invest in both equity and debt
components. Unlike all other hybrid funds, they are highly flexible and need not follow a
fixed proportion of asset allocation. They can invest the fund assets in any money market
instrument and in any ratio. Also, unlike other hybrid funds, they do not have a static fund
allocation rule, but they can switch between asset classes dynamically according to the
market movements. Hence, balanced advantage funds are also known as dynamic asset
allocation funds.

Asset Allocation – Balanced Funds have to follow the static asset allocation rule 60/40 to
equity and debt. Either of the two asset classes can have a 60% fund allocation and the other
40% is allocated to the other money market instrument. Balanced advantage funds have no

26
such mandate by the SEBI Securities to maintain a definite Ratio. They can allocate the fund
to debt and equities in any proportion acting upon the market movements.

Rebalancing Asset Composition: Balanced Funds have limited scope for asset reallocation
where they can only switch between the asset types by a margin of 20%. This means they
may rebalance the asset allocation from one component to another from a maximum of 60%
to a minimum of 40%. Whereas, the balanced advantage funds have full flexibility to switch
the fund allocation between the debt and equity asset classes. There is no upper and lower
limit for rebalancing the fund corpus between debt and equity segments.
As they can dynamically switch between the asset classes, they are termed dynamic asset
allocation funds. Also, as these funds balance the asset composition between equities and
debt components to take advantage of the upheavals of the complete cycle of the market, they
are termed as balanced advantage

Fund’s objective: Both funds aim to strike a risk-reward balance, however, balanced funds
on stability and long-term growth. Balanced Advantage funds on the flip side, aim at beating
market volatility to give risk-adjusted returns. The latter uses the market dynamics and its
flexibility to adjust according to earning optimum returns.

Returns: Balanced advantage funds have the potential to yield higher returns in favorable
markets and offer more security and steady income during unfavorable times than balanced
funds. This is because the latter cannot allocate the fund corpus to any asset class after a
specified limit. So, even when the markets are topsy turvy, they must have minimum equity
investment of 40% whereas balanced advantage funds can dynamically switch from equity to
debt. Likewise, even when markets are soaring, balanced funds can have a maximum
exposure of 40% to equities whereas dynamic asset allocation funds can increase the equity
exposure to any limit.

Risks: Risk is associated with equity and debt components in their portfolios. Equities have
the market risk and if not well-diversified across different caps, they may also bear
concentration risks. However, Balanced advantage funds can shed off exposure to equities
when markets are down giving them an edge over balanced funds. Debt funds are associated
with credit and interest risk so the bonds and debt securities must be A Rated one.

27
Tax Treatment: Balanced funds are taxed like debt funds as their equity allocation even at a
maximum of 60% lies below 65% that qualify for equity-oriented funds and get the tax
treatment alike. On the other hand, balanced advantage funds are taxed like equity or debt
depending on the asset allocation at the time of redemption. However, most funds try to
maintain the 65% allocation to equities so that they are taxed like capital gains of equity
funds. They usually keep 65% in equities by allocating 33% to equities and 33% to arbitrage
or unhedged equities. The arbitrage opportunities benefit the fund from price difference in the
cash and futures market and the returns are not hampered by market volatility.

Why to Choose Balanced Advantage Funds?

 Possibility of Stable Returns.
 Relatively lower risk.
 Dynamic asset allocation strategy.
 Requires less monitoring.
 Tax Benefits.
 Eliminates behavioral biases in investing.
 Can be less volatile than aggressive hybrid funds.
 Provides an opportunity to generate consistent and regular passive income.
 Can be a beneficial contribution to an individual’s retirement fund.
 Can manage market volatility and aim to limit losses when markets correct.
 Allocation is dynamic.
 Tax leverage.
HDFC BALANCED ADVANTAGE FUND:
HDFC Balanced Advantage Fund is Open-ended Dynamic Asset Allocation Hybrid
scheme which belongs to HDFC Mutual Fund House The fund was launched on Sep 11
2000

Investment Objective & Benchmark:

 The Investment Objective of the Fund is that “The Scheme seeks to provide long term
capital appreciation/ income from a dynamic mix of equity and debt investments.”  It
is Benchmarked against NIFTY 50 Hybrid Composite debt 50:50 Index.

28
Current NAV- The Current Net Asset Value of the HDFC Balanced Advantage Fund as of
Jul 27, 2023 is Rs 32.03 for IDCW Monthly option of its Regular Plan.

Returns- Its trailing returns over different time periods are: 23.58%(1yr), 26.44%(3yr),
15.11%(5yr) and 18.06%(since launch). Whereas, Category returns for the same time
duration are: 13.69%(1yr), 13.36%(3yr) and 9.31%(5yr)

Fund Size: The HDFC Balanced Advantage Fund Currently holds Asset under Management
worth of Rs. 57778.88 crore as on Jun 30,2023

Expense Ratio: The expense ratio of the Fund is 1.47% for Regular Plan as on Jun30, 2023

Exit Load: HDFC Balanced Advantage Fund shall attract an Exit Load,” For units in excess
of 15% of the investment, 1% will be charged for redemption within 1 year”.

Minimum Investment: Minimum Investment required is Rs 100 and minimum additional

investment is Rs 100. Minimum SIP investment is Rs 100.
Trailing Returns of Balanced Advantage Fund:

1 M 3 M 6 M 1Y 3Y 5Y
Annualized returns 4. 9. 13. 24. 27. 14.
Category Avg 2.
7 7.
7 9.
66 13.
08 13.
33 9.
46
Rank within 29 48 28 173 151 10
Categor
No.
y of Funds within 3 3 3 2 2 1
Categor 2 2 0 8 8 7
y

Portfolio Allocation:
 The equity allocation in a balanced advantage fund can range from 30% to 80% of the
total portfolio, depending on market conditions. During bullish phases or when the
market is undervalued, the fund may increase its equity exposure to benefit from
potential capital appreciation.

 The debt allocation in the fund can range from 20% to 70% of the total portfolio.
During bearish phases or when the market is overvalued, the fund may increase its
debt exposure to protect capital and generate stable returns.

29
  In certain market conditions, when the fund manager believes that both equity and
debt market are not attractive, the fund may allocate a portion of the portfolio to cash
or cash equivalents, such as money market instruments.

 The asset allocation of the fund comprises around 60.58% in equities, 26.48% in
debts and 11.17% in cash & cash equivalents.

 While the top 10 equity holdings constitute around 34.11% of the assets, the top 3
sectors constitute around 35.13% of the assets.

 The fund largely follows a Growth oriented style of investing and invests across
market capitalizations - around 0.0% in giant & large cap companies, 0.0% in mid cap
and 0.0% in small cap companies.

Sector Allocation :
 The sector allocation of a balanced advantage fund can vary depending on the market
conditions and the funds manager’s strategy. These funds aim to dynamically allocate
their portfolios between equity and debt instruments based on various factors,
including sectoral opportunities and market valuations.

 Typically, Balanced advantage funds aim for diversification across sectors to mitigate
risks and capture growth opportunities. The sector allocation may be influenced by
the fund manager’s views on the economic outlook, sector specific growth prospects,
and other macroeconomic factors.

Tax Implications on HDFC Balanced Advantage Fund:

 Hybrid Funds which usually invest 65% or more in equity & equity related
instruments will be taxed like Equity Funds and those which invest less than 65% in
equity& equity related instruments will be taxed like Debt Funds.

 Generally, Tax implication are based on the average asset allocation of the last 12
months where the fund has invested. However, since the market is dynamic and asset
allocation towards equity may increase or decrease depending on the prevailing
market & economic conditions.

 So, the tax treatment of the given fund will vary accordingly and will be determined
by its asset allocation

30
Below are the tax implication from equity as well as debt side:

EQUITY SIDE

 Gains are taxed at a rate of 15% (Short-term Capital Gain Tax - STCG) if units are

redeemed within 1 year of investment.

 For units redeemed after 1 year of investment, gains of up to Rs. 1 lakh accruing from
those units in a financial year shall be exempted from tax.
 Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long-term Capital Gain
Tax - LTCG).

DEBT SIDE

 If units are redeemed within 3 years of investment, the whole amount of gain will get
added to the investor's income and will be taxed as per his/her applicable slab rate.

 For units redeemed after 3 years of investment, gains will be taxed at a rate of 20%
post indexation benefits. Indexation is a process of recalculating the purchase price
after accounting for inflation into it. The benefit of indexation lies in lowering down
one's capital gains which brings down the taxable income and thereby reduces taxes
on it.

31
ICICI Prudential Balanced Advantage Fund
ICICI Prudential Balanced Advantage Fund is Open- Ended Dynamic Asset Allocation
Hybrid scheme which belongs to ICICI Prudential Mutual Fund House.

The Fund was Launched on Dec 30,2006

Investment Objective & Benchmark:

 The investment objective of the fund is that, “The scheme seeks to provide capital
appreciation and income distribution to the investors by using equity derivatives
strategies, arbitrage opportunities and pure equity investments.”

 It is benchmarked against CRISIL Hybrid 50+50 Moderate Index.

Current NAV: The Current Net Asset Value of the ICICI Prudential Balanced Advantage
Fund as of Jul 28, 2023 is Rs 56.48 for Growth option of its Regular Plan.

32
Returns: Its trailing returns over different time periods are: 12.09%(1yr), 14.95%(3yr),
10.92%(5yr) and 10.99%(since launch). Whereas, Category returns for the same time
duration are: 13.69%(1yr), 13.36%(3yr) and 9.31%(5yr).

Fund Size: The ICICI Prudential Balanced Advantage Fund currently holds Asset under
Management worth of Rs. 47661.75 crore as on Jun 30,2023.

Expense Ratio: The expense ratio of the fund is 1.53% for Regular Plan as on Jun 30,2023.

Exit load: ICICI Prudential Balanced Advantage Fund shall attract an Exit Load, “Exit
load for units in excess of 30% of the investments, 1% will be charged for redemption
within 1 year”.

Minimum Investment: Minimum investment required is Rs 500 and minimum additional

investment is Rs 100. Minimum SIP investment is Rs100.
Trailing Returns of ICICI Prudential Balanced Advantage Fund:
1 M 3 M 6 M 1Y 3Y 5Y

Annualized Returns 1. 5. 7. 12. 14. 10.

9 4 7 13 91 76

Category Avg 2. 7. 9. 12. 12. 9.

6 4 9 78 98 0

Rank within Category 2 2 2 1 5 4

4 8 4 5

No. of Funds within 3 3 2 2 2 1

Categor 0 0 8 6 2 6
y

Portfolio Allocation:
 The asset allocation of the fund comprises around 40.74% in equities, 23.83% in
debts and 32.95% in cash & cash equivalents.

 While the top 10 equity holdings constitute around 32.81% of the assets, the top 3
sectors constitute around 22.6% of the assets

33
  The fund largely follows a Growth oriented style of investing and invest across
market capitalization in giant & large cap companies, in mid cap and in small cap
companies.

 The portfolio allocation of debt securities primarily has 2 kinds of risks: interest rate
risk & credit risk. While the interest rate movements are driven by the fund's duration,
credit quality of debt securities are based on the weighted average credit ratings of a
fund. Generally, funds with high credit quality will have the weighted average credit
rating of AA- and higher rated securities, funds with medium credit quality will hold
securities having credit rating lying between A- to BBB- and funds with low credit
quality will hold securities having average credit rating of less than BBB-. Credit
rating is a qualitative tool that basically assesses the creditworthiness and financial
soundness of a company and takes into consideration several factors including the
default rate and solvency of the concerned business entity.

Concentration & Valuation Analysis:

34
SBI BALANCED ADVANTAGE FUND:
Investment objective: The investment objective of the fund is that “The scheme seeks to
provide long term capital appreciation/income from a dynamic mix of equity and debt
investments”.
It is benchmarked against NIFTY 50 Hybrid Composite debt 50:50 Index.
Current NAV: The Current Net Asset Value of the SBI Balanced Advantage Fund- Direct
Plan as of Jul 27, 2023 is Rs 12.22 for IDCW option of its Direct Plan

Returns: Its trailing returns over different time period are: 18.28%(1yr) and 11.02%(since
launch). Whereas, Category returns for the same time duration are: 13.69%(1yr),
13.36%(3yr) and 9.31%(5yr).

Fund Size: The SBI Balanced Advantage Fund currently holds Asset under Management
worth of Rs 22654,44 crore as on Jun 30,2023.

Expense Ratio: The expense ratio of the fund is 0.75% for Direct plan as on Jun 30,2023.

Exit Load: SBI Balanced Advantage Fund- Direct plan shall attract an Exit Load, “For units
in excess of 10% of the investment, 1% will be charged for redemption within 1 year”

Minimum Investment: Minimum Investment required is Rs 5000 and minimum additional

investment is Rs. 1000. Minimum sip investment is Rs500.

TRAILING RETURNS OF SBI BALANCED ADVANTAGE FUND:

1 M 3 M 6 M 1Y 3Y 5Y
Annualized 3. 8. 11. 18. - -
Return 3 1 90 36
Category
s Avg 2. 7. 9. 12. 12. 9.
Rank within 96 41 79 478 -98 -0
Categor 3
No.
y of funds 3 3 2 2 2 1
within category 0 0 8 6 2 6

Asset Allocation:

35
  The asset allocation of the fund comprises around 55.01% in equities, 23.55% in
debts and 21.44% in cash & cash equivalents.

 While the top 10 equity holdings constitute around 31.69% of the assets, the top 3
sectors constitute around 30.27% of the assets

 The fund largely follows a Growth oriented style of investing and invest across
market capitalizations – around 0.0% in giant & large cap companies ,0.0% in mid
cap and in small cap companies.

TAXES ON DIVIDEND INCOME:

 For Dividend Distribution Tax, the dividend income from this fund will get added to
the income of an investor and taxed according to his/her respective tax slabs.

 Also, for dividend income in excess of Rs 5,000 in a financial year; the fund house
shall deduct a TDS of 10% on such income.

Concentration &Valuation Analysis:

JUN MAY2 APR MAR FEB JAN
2023 023 2023 2023 2023 2023
No. 1 1 1 1 1 1
of
holdin 1 2 2 3 4 4
Top
gs 22. % 23. % 23. % 23. % 23. % 22. %
5
Compa 48 19 96 65 02 04

yn
holdin
Top
gs 36. % 38. % 38. % 38. % 39. % 37. %
10
Compa 19 78 43 53 87 97

yn
Holdin
Compa
gs GOI(6.02 GOI(6.21 GOI(7.53 GOI(7.11 ICI ICI
yn %) ) %) %) BANK(5.77%
CI BANK(5.19%
CI
with ) )
Highes
t
Expos
e ur

36
Number 1 1 1 1 1 1
o 4 4 4 4 4 4
fSector
Top
s 30. % 3 % 31. % 29. % 24. % 23. %
3
secto 27 0. 46 21 61 53
r
holding
Top
s 40. % 39. % 40. % 38. % 32. % 30. %
5
Secto 04 83 45 04 42 73
r
Holding
s
PEER Comparison

Scheme Name N AU 1 M 1Y 3Y 5Y
A M
SBI BALANCED 12. 22,654. 3. 17. - -
ADVANTAGE FUND 22 4 4 1 86
ICI BALANCED 25. 47,661. 1. 12. 15. 11.
ADVANTAGE
CI FUND 53 5 7 9 85 63 49
HDF BALANCED 32. 42999.4 4. 23. 27. 14.
ADVANTAGE
C FUND 03 8 3 51 23 48

37
 Section – 2

LITERATURE REVIEW

G N Kaigorodova, A A Mustafina, D P Alyakina:

The Article presents a study of the information technologies impact on the insurance industry
development. The insurance business at present is getting opportunities for a technological
breakthrough. There is growing demand for a traditional insurance products- property
insurance, motor insurance, health insurance. There is a rapidly growing demand for Life
insurance and insurance against cyber risks.

Doron Nissim:
The large swings in insurers’ market valuations, and the significant role that financial
reporting played in the uncertainty surrounding insurance companies during that period,
highlight the importance of understanding insurers’ financial information and its implications
for the risk and value of insurance companies.

K. Geert Rouwenhorst:
Mutual funds emerged as early as the second half of the 18th century in The Netherlands. The
paper traces the history of mutual funds from the development of securitization in the 17th
century to the invention of depository receipts in the 19th century. The apparent motivation
for organizing the first mutual funds was to provide diversification for small investors.

Rob Bauer, Luc Kicken:

This article compares the cost-effectiveness of the pension fund structure with the mutual
fund structure. The authors hypothesize that the pension fund structure provides investment
management services at lower cost because most mutual funds are conflicted between
providing good financial results for their clients and good financial results for their
shareholders.

Madan Mohan Dutta:

Health insurance is one of the major contributors of growth of general insurance industry in
India. It alone accounts for around 29% of total general insurance premium income earned in

38
India. The growth of this sector is important from the perspective of overall growth of general
insurance Industry. At the same time, problems in this sector are also many which are
affecting its performance.

Krishna Chaitanya Vadlamannati:

A well-developed insurance sector is necessary for the economic development of an
emerging economy like India, as it provides long-term funds for physical and social
infrastructure, while simultaneously strengthening risk-taking abilities. The investment
requirements for India in the coming years are well-known and the rapid growth of the
insurance sector in the post-liberalization period is seen as a good sign as it can, to some
extent, facilitate investment in infrastructure development to help sustain the economic
growth of the country.

Gurunathan, K. Balanaga; Kansal, Pooja:

Balanced Mutual Funds were established with an objective of generating regular income and
long term capital appreciation by investing in shares, bonds and sometimes money market
instruments in a single portfolio. Balanced Mutual Fund is an avenue which offers an
investor the opportunity to invest in equity as well as fixed income securities.

Sahil Jain, Dr. Aditi Gangopadhyay:

The last decade has seen a tremendous growth in the mutual fund industry. As per the latest
data the assets under management in this industry is more than Rs6.8 thousand billion. Today
the Indian market is flooded with more than a thousand mutual fund schemes, promising
better returns than others. In this paper an attempt has been made to analyze the performance
of equity based mutual funds.

Badur Raja Mannar:

In the world of Globalization economic model adopted by our India, the Insurance Sector is
opening up not only to the Private Insurance providers along with the Public Sector
undertaking like Life Insurance Corporation Of India (LIC), also there is increasing
participation by foreign investors which shall led to setting up of Insurance Companies by
Foreign Institutions having higher capital base and expertise.

39
 Section - 3

RESEARCH METHODOLOGY

The analysis done in this research is on the mutual fund named “Balanced Advantage Fund”
which is an Hybrid Fund that means it is a combination of equity and debt fund on special
focus on Finance sector for which it includes 3 companies HDFC, ICICI, SBI.

The data used in this research is secondary in nature. The secondary data is collected from the
organization website, journals, Textbooks, etc. Most of the data is collected from the
company’s website and some other data sites.

Data collection requires a lot of time and it is cost-effective. The method selected for
collection data must be compatible with the resources, time The secondary data collected of
the mutual Fund are as given below:
 Online Databases and Websites: Utilize Financial data websites, such as Morningstar,
Yahoo Finance, Bloomberg to access comprehensive information on mutual funds in
the finance sector. These platforms often provide detailed data on fund performance,
holdings, expense ratio and historical returns.
 Fund Company Websites: Many mutual fund companies provide detailed information
on their websites. Visit the websites of major finance sector mutual fund providers to
access factsheets, fund profiles, and historical performance data.
 Research Reports and Market Analysis: Investment research firms and market
analysis companies often publish reports on mutual funds and the finance sector.
Access these research reports to gather data and insights on fund performance, risk
metrics, and investment strategies.
 Financial Blogs and forums: Participate in financial blogs and forums where investors
discuss mutual funds and finance sector. Although these sources may not be as
reliable as official databases, they can provide real-world perspective and insights.

40
 SCOPE & LIMITATIONS

SCOPE:
 The study will focus on understanding the structure, objectives, and investment
strategies of balance advantage funds. These funds aim to dynamically allocate assets
between equity and debt instruments based on market conditions. The research will
analyze how the fund managers make these asset allocation decisions and how the
funds perform relative to their benchmarks and peers.
 The study will specifically examine mutual funds that invest significantly in
companies within the finance sector. It will cover various sub-sectors within finance,
such as banking, insurance, financial services and fintech. The analysis will include
an overview of the finance industry’s performance and its impact on the balance
advantage funds with a focus on this sector.
 The research will delve into the risk and return characteristics of balance advantage
funds with a focus on those investing in the finance sector. It will investigate how the
funds manage risk and attempt to generate returns for investors by adapting their asset
allocation based on market conditions and the sector's performance.
 The research will consider the role of investor behavior and sentiment in the
performance of balance advantage funds in the finance sector. It will examine how
investors' perceptions and decisions impact the fund flows and overall performance of
these funds.

LIMITATIONS:
 The availability of comprehensive and up to date data on balance advantage funds
with a specific focus on the finance sector might be limited. Some funds might not
disclose their full holdings, which could hinder a detailed analysis.
 The performance of the following fund can be affected by various market factors, and
past performance may not be indicative of future results. Market volatility and
economic fluctuations might lead to challenges in drawing definitive conclusions.
 The study will focus on a specific category of funds and a particular sector. The
findings may not be generalizable to other types of funds or sectors.
 The asset allocation decisions in the following fund are made be fund managers based
on their analysis and judgement. As a result, there might be some subjectivity
involved, making it harder to predict future performance accurately.

41
 Section - 4
Analysis & Findings

ASSET ALLOCATION IN HDFC, ICICI, SBI:

ASSET ALLOCATION

S
B

I
C

H
D

0% 1% 2% 3% 4% 5% 6% 7%
0 0 0 0 0 0 0
EQUI D OTH
TY E ERS

SECTOR ALLOCATION IN HDFC:

Sector Alloca 琀椀 on
Financ Ene Materi Technolo Capital O rs
ial rgy als gy Goods t

2 %
1.

9%
5 % .
7.
4%
.
3%
3% .
.

42
SECTOR ALLOCATION IN ICICI:

Sector Allocation
Financ Automobil Ene Servi Technolo Oth
ial e rgy ces gy ers
1 %
0.

6%
.
5%
.

4%
.
3%
.

6 %
9.

SECTOR ALLOCATION IN SBI:

Sector Alloca 琀椀 on
Financ Ene Construc 琀 Technolo Automobil ots
ial rgy 椀 on gy e h

1 %
4.

9%
.

6%
.
5 %
9. 4%
.
4%
.

43
MARKET CAP ALLOCATION IN HDFC:

MARKET CAP ALLOCATION IN ICICI:

44
MARKET CAP ALLOCATION IN SBI:

ECONOMIC ANALYSIS:
GDP:

The gross domestic product (GDP) measures a country's economy's regional income and
output domestic product (GDP) is equal to the total expenditures for all final goods and
services produced within the country in a stipulated period. The Gross Domestic Product
(GDP) in India was worth 3173.40 billion US dollars in 2021, according to official data from
the World Bank. The GDP value of India represents 0.21 percent of the world economy.

Industrial Implementation Production:

45
India’s IIP

In India, industrial production measures the output of businesses integrated into the industrial
sector of the economy. Manufacturing is the most important sector and accounts for 78
percent of total production. The biggest segments within Manufacturing are basic metals (13
percent of total production); coke and refined petroleum products (12 percent); chemicals and
chemical products (8 percent); food products (5 percent); pharmaceuticals, medicinal
chemical, and botanical products (5 percent); motor vehicles, trailers, and semi-trailers (5
percent); machinery and equipment N.E.C. (5 percent); other non-metallic mineral products
(4 percent); and textiles, electrical equipment, and fabricated metal products (3 percent each).
Mining accounts for 14 percent of total output, and electricity accounts for 8 percent.

Inflation:
In India, the most important category in the consumer price index is Food and beverages
(45.86 percent of total weight), of which Cereals and products (9.67 percent), Milk and
products (6.61 percent), Vegetables (6.04 percent), Prepared meals, snacks, sweets, etc. (5.55
percent), Meat and fish (3.61 percent), and Oils and fats (3.56 percent). Miscellaneous

46
accounts for 28.32 percent, of which Transport and communication (8.59 percent), health
(5.89 percent), and education (4.46 percent). Housing accounts for 10.07 percent; Fuel and
light for 6.84 percent; Clothing and footwear for 6.53 percent; and Pan, tobacco, and
intoxicants for 2.38 percent. Consumer price changes in India can be very volatile due to
dependence on energy imports, the uncertain impact of monsoon rains on its large farm
sector, difficulties transporting food items to market because of its poor roads and
infrastructure, and high fiscal deficit. In 2013, the consumer price index replaced the
wholesale price index (WPI) as a main measure of inflation.

Japan’s IIP

In Japan, the most important categories in the consumer price index are Food (25 percent of
total weight) and Housing (21 percent). Transportation and communications account for 14
percent; Culture and recreation for 11.5 percent; Fuel, light, and water charges for 7 percent;
Medical care for 4.3 percent; Clothes and footwear for 4 percent. Furniture and household
utensils, Education, and Miscellaneous goods and services account for the remaining.

47
India’s Interest Rate
In India, interest rate decisions are taken by the Reserve Bank of India's Central Board of
Directors. The official interest rate is the benchmark repurchase rate. In 2014, the primary
objective of the RBI monetary policy became price stability, giving less importance to the
government's borrowing, the stability of the rupee exchange rate, and the need to protect
exports. In February 2015, the government and the central bank agreed to set a consumer
inflation target of 4 percent, with a band of plus or minus 2 percentage points, from the
financial year ending in March 2017.

48
Japan Interest Rate:

In Japan, interest rates are set by the Bank of Japan's Policy Board in its Monetary Policy
Meetings. The BoJ’s official interest rate is the discount rate. Monetary Policy Meetings
produce a guideline for money market operations in inter-meeting periods and this guideline
is written in terms of a target for the uncollateralized overnight call rate.

Unemployment Rate:

In India, the unemployment rate is estimated by directly interviewing a large sample of

randomly selected households. Centre for Monitoring Indian Economy Consumer Pyramids

49
panel of households includes over 174,405 households including over 522,000 members who
are over 15 years old.

In Japan, the unemployment rate measures the number of people actively looking for a job as
a percentage of the labor force.

Ease of Doing Business:

The Ease of doing business index ranks countries against each other based on how the
regulatory environment is conducive to business operation and stronger protections of
property rights. Economies with a high rank (1 to 20) have simpler and more friendly
regulations for businesses.

50
India’s Ease of Doing Business

Business confidence Index:

The Business Expectations Index (BEI) in India is calculated as a weighted (share of GVA of
different industry groups) net response of nine business indicators. The nine indicators
considered are (1) overall business situation; (2) production; (3) order books; (4) inventory of
raw material; (5) inventory of finished goods; (6) profit margins; (7) employment; (8)
exports; and (9) capacity utilization. BEI gives a snapshot of the business outlook every
quarter and takes values between 0 and 200, with 100 being the threshold separating
expansion from contraction. Total responses vary from quarter to quarter and averaged 1,200
over the last two years.
India’s Business Confidence Index:

51
In Japan, the quarterly Tankan Index of Sentiment at Large Manufacturers covers about 1,100
companies with capital of over 1 billion Yen. The survey is done by mail or e-mail and asks
participants to evaluate current trends and conditions in the business place and their
respective industries as well as their expected business activities for the next quarter and year.
The indicator is calculated by subtracting the percentage share of enterprises responding on
the negative side from the share giving positive assessments. Share-giving rides on a scale of
-100 to 100 such that a value above zero indicates business optimism, a value below zero
pessimism, and 0 indicates neutrality.
Japan’s Business Confidence Index

52
 FDI/FII Investment Growth:
India’s FDI/FII investment growth:

Total FDI inflows in the country in the last 23 years (April 2000 - March 2023) are $ 919 bn
while the total FDI inflows received in the last 9 years (April 2014- March 2023)595.25 bn
which amounts to nearly 65% of total FDI inflow in last 23 years.

Top 5 sectors receiving highest FDI Equity Inflow during FY 2022-23 are service sector (Fin,
Banking, Insurance, Fin/business, Outsourcing, R&D, Courier, Testing and Analysis, Other)
16% Computer Software & Hardware (15%), Trading (6%), Telecommunications (6%) and
Automobile Industry (5%).

Japan’s FDI/FII investment growth:

• In addition to having the third largest economy in the world, Japan has very strong
purchasing power and therefore strong domestic demand.

• As a leader in high technology, research and development (with the largest number of patents
in the world), Japan has had a steadily growing economy and rock solid stability for several
decades.

• Because of its geographical location, any foreign investor operating in the Japanese market
has a facilitated entry to other Asian markets.

• The business environment is clearly favorable and reinforced by a stable political system.

53
• The workforce is highly skilled and the Japanese are known as great workers dedicated to
their company.

• The ageing of its population opens up great opportunities for products and services geared
towards older age groups (health care technology, medical devices, entertainment,
pharmaceuticals, etc.).

• Japan has signed Trade agreement with the EU and Transpacific Partnership (December
2018).

Country Analysis:
Indian Economy

The economy of India is a middle-income developing market economy. It is the world's

fifthlargest economy by nominal GDP and the third-largest by purchasing power parity
(PPP). According to the International Monetary Fund (IMF), on a per capita income basis,
India ranked 142nd by GDP (nominal) and 128th by GDP (PPP). From independence in 1947
until 1991, successive governments. promoted a protectionist economy. policies, with
extensive state intervention and economic regulation. This is characterized as dirigisme, in
the form of the License Raj. The end of the Cold War and an acute balance of payments crisis
in 1991 led to the adoption of a broad economic liberalization at the start of the 21st century,
the annual average GDP growth has been 6% to 7%, and from 2013 to 2018, India was the
world fastest grow fastest-growing, surpassing China. Historically, India was the largest
economy in the world for most of the two millennia from the 1st until the 19th century.

54
British era (1793–1947)

55
The global contribution to world’s GDP by major economies from 1 CE to 2003 CE
according to Angus Maddison’s estimates. Up until the 18th century, China and India were the
two largest economies by GDP output.

Estimated GDP per capita of India and United Kingdom during 1700–1950 in 1990 US$
according to Maddison. However, Maddison's estimates for 18th-century India have been
criticized as gross underestimates, Bairoch estimates India had a higher GDP per capita in the
18th century, and Parthasarathi's findings show higher real wages in 18thcentury Bengal
and Mysore. But there is consensus that India's per capita GDP and income stagnated
during the colonial era, starting in the late 18th century.

Sectors:
Historically, India has classified and tracked its economy and GDP in three sectors:
agriculture, industry, and services. Agriculture includes crops, horticulture, milk and animal
husbandry, aquaculture, fishing, sericulture, aviculture, forestry, and related activities.
Industry includes various manufacturing sub-sectors. India's definition of services includes its
construction, retail, software, IT, communications, hospitality, infrastructure operations,
education, healthcare, banking and insurance, and many other economic activities.

56
The Employment Rate:

India averaged 44.36 percent from 2012 until 2021, reaching an all-time high of 50.80
percent in the fourth quarter of 2012 and a record low of 36.40 percent in the second quarter
of 2020. This page provides - India Worker Population Ratio- actual values, historical data,
forecast, chart, statistics, economic calendar and news. India Worker Population, Ratio -
values, historical data and charts - was last updated on, august 2.

57
Foreign Trade:
Foreign trade is an exchange of capital, goods, and services across international borders or
territories. In most countries, it represents a significant share of gross domestic product
(GDP). While international trade has been present throughout much of history, its economic,
social, and political importance has been on the rise in recent centuries.

58
 Section - 5

CONCLUSION & RECOMMENDATION

CONCLUSION:

 Balance advantage funds typically invest in a mix of equity and debt instruments,
including stocks of companies in the finance sector. The diversification across asset
classes can help reduce overall portfolio risk.
 The performance of balance advantage funds with a focus on the finance sector would
be influenced by the prevailing market conditions. In times of favorable economic and
financial sector performance, these funds might generate attractive returns.
 The dynamic asset allocation strategy employed by balance advantage funds could
offer some level of risk management in the finance sector. During periods of market
volatility or downturns in the financial sector, the fund managers may reduce
exposure to equities and increase allocations to debt instruments, potentially
providing downside protection.
 The returns of balance advantage funds with a significant allocation to the finance
sector would likely correlate with the performance of that sector. The overall returns
of the fund may be influenced by the financial sector's performance, which could be
impacted by factors such as interest rates, regulatory changes, economic conditions,
and company-specific developments.
 The study might also assess the expertise of the fund manager in understanding the
finance sector dynamics and their ability to make well-timed asset allocation
decisions to capitalize on opportunities or mitigate risks.

59
 RECOMMENDATIONS:

 Before investing in any mutual fund, including balance advantage funds with
exposure to the finance sector, conduct thorough research. Look into the fund's
historical performance, asset allocation strategy, expense ratio, fund manager's
experience, and risk management approach.
 Assess the fund's track record over different market cycles. Evaluate how the fund
performed during various market conditions, especially during periods of economic
downturns or volatility in the finance sector.
 Consider the expense ratio of the fund. Lower expense ratios can have a positive
impact on long-term returns, especially in a balanced advantage fund where costs are
a significant factor.
 Look into the fund manager's expertise and experience in managing assets within the
finance sector. A skilled and experienced manager can make a difference in
navigating the complexities of the financial industry.
 Ensure that the balance advantage fund maintains a diversified portfolio, even within
the finance sector. A well-diversified portfolio can help mitigate risks associated with
individual stocks or companies.
 Understand the fund's risk management strategy, particularly how it adjusts asset
allocation in response to changing market conditions. A successful balance advantage
fund should be able to tactically allocate between equity and debt to capitalize on
opportunities and manage risks.
 Consider your investment horizon and risk tolerance. Balance advantage funds, like
any mutual funds, are subject to market fluctuations. Make sure the fund aligns with
your investment goals and risk appetite.
 It's always prudent to consult with a qualified financial advisor who can assess your
financial situation, goals, and risk tolerance to recommend suitable investment

options, including balance advantage funds in the finance sector.

60