A study on Investment Portfolio towards ULIPs of HDFC Life

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1A STUDY ON INVESTMENT PORTFOLIO TOWARDS ULIPS OF HDFC LIFE
1.1 ORIGIN OF INSURANCE INDUSTRY
“If risk is like a smoldering coal that may spark a fire at any moment, then
insurance is our fire extinguisher.” The origin of insurance refers to the
development of the modern business of insurance against risks, especially
regarding cargo, property, death, automobile accidents and medical treatment.
The industry helps to eliminate risks (as when fire insurance companies demand
the implementation of safe practices and the installation of hydrants), spreads risks
from the individual to the larger community, and provides an important source of
long-term finance for both the public and private sectors. The insurance industry is
generally profitable and provides attractive employment opportunities for white
collar workers.
Ancient world
In some sense we can say that insurance dates back to early human society. We
know of two types of economies in human societies: natural or non-monetary
economies (using barter and trade with neither centralized nor standardized set of
financial instruments) and monetary economies (with markets, currency, financial
instruments and so on). Insurance in the former case entails agreements of mutual
aid. If one family's house gets destroyed, the neighbors are committed to help
rebuild it. Granaries embodied another early form of insurance to indemnify

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against famines. These types of insurance have survived to the present day in
countries or areas where a modern money economy with its financial instruments
is not widespread.
The first methods of transferring or distributing risk in a monetary economy were
practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd
millennia BC, respectively. Chinese merchants travelling treacherous river rapids
would redistribute their wares across many vessels to limit the loss due to any
single vessel's capsizing. The Babylonians developed a system which was recorded
in the famous Code of Hammurabi, c. 1750 BC, and practiced by early
Mediterranean sailing merchants. If a merchant received a loan to fund his
shipment, he would pay the lender an additional sum in exchange for the lender's
guarantee to cancel the loan should the shipment be stolen or lost at sea.
Merchants have sought methods to minimize risks since early times. Achaemenian
monarchs in Ancient Persia were presented with annual gifts from the various
ethnic groups under their control. This would function as an early form of political
insurance, and officially bound the Persian monarch to protect the group from
harm.

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Medieval era
Separate insurance contracts (i.e., insurance policies not bundled with loans or
other kinds of contracts) were invented in Genoa in the 14th century, as were
insurance pools backed by pledges of landed estates. The first known insurance
contract dates from Genoa in 1347, and in the next century maritime insurance
developed widely and premiums were intuitively varied with risks.
Modern insurance
Insurance became far more sophisticated in Enlightenment era Europe, and
specialized varieties developed. Some forms of insurance developed in London in
the early decades of the 17th century.
Property insurance
Property insurance as we know it today can be traced to the Great Fire of London,
which in 1666 devoured more than 13,000 houses. The devastating effects of the
fire converted the development of insurance "from a matter of convenience into
one of urgency, a change of opinion reflected in Sir Christopher Wren's inclusion
of a site for 'the Insurance Office' in his new plan for London in 1667".
In the wake of this first successful venture, many similar companies were founded
in the following decades. Initially, each company employed its own fire

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department to prevent and minimize the damage from conflagrations on properties
insured by them. They also began to issue 'Fire insurance marks' to their
customers. These would be displayed prominently above the main door of the
property and allowed the insurance company to positively identify properties that
had taken out insurance with them. One such notable company was the Hand in
Hand Fire & Life Insurance Society, founded in 1696 at Tom's Coffee House in St.
Martin's Lane in London. It was structured as a mutual society, and for 135 years it
operated its own fire brigade and played an important part in shaping fire fighting
and prevention. The Sun Fire Office is the earliest still existing property insurance
company, dating from 1710.
In Colonial America, the first insurance company that underwrote fire insurance
and was formed in Charles Town (modern-day Charleston), South Carolina in
1732. Benjamin Franklin helped to popularize and make standard the practice of
insurance, particularly Property insurance to spread the risk of loss from fire, in the
form of perpetual insurance. In 1752, he founded the Philadelphia Contributionship
for the Insurance of Houses from Loss by Fire. Franklin's company made
contributions toward fire prevention. Not only did his company warn against
certain fire hazards, it refused to insure certain buildings where the risk of fire was
too great, such as all wooden houses.

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Business insurance
At the same time, the first insurance schemes for the underwriting of business
ventures became available. By the end of the seventeenth century, London's
growing importance as a centre for trade was increasing demand for marine
insurance. In the late 1680s, Edward Lloyd opened a coffee house on Tower Street
in London. It soon became a popular haunt for ship owners, merchants, and ships'
captains, and thereby a reliable source of the latest shipping news.
Life insurance
The first life insurance policies were taken out in the early 18th century. The first
company to offer life insurance was the Amicable Society for a Perpetual
Assurance Office, founded in London in 1706 by William Talbot and Sir Thomas
Allen. The first plan of life insurance was that each member paid a fixed annual
payment per share on from one to three shares with consideration to age of the
members being twelve to fifty-five. At the end of the year a portion of the
"amicable contribution" was divided among the wives and children of deceased
members and it was in proportion to the amount of shares the heirs owned.
Amicable Society started with 2000 members.
The first life table was written by Edmund Halley in 1693, but it was only in the
1750s that the necessary mathematical and statistical tools were in place for the

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development of modern life insurance. James Dodson, a mathematician and
actuary, tried to establish a new company that issued premiums aimed at correctly
offsetting the risks of long term life assurance policies, after being refused
admission to the Amicable Life Assurance Society because of his advanced age.
He was unsuccessful in his attempts at procuring a charter from the government
before his death in 1757.
The sale of life insurance in the U.S. began in the late 1760s. The Presbyterian
Synods in Philadelphia and New York founded the Corporation for Relief of Poor
and Distressed Widows and Children of Presbyterian Ministers in 1759;
Episcopalian priests created a comparable relief fund in 1769. Between 1787 and
1837 more than two dozen life insurance companies were started, but fewer than
half a dozen survived.
Accident insurance
In the late 19th century, "accident insurance" began to become available. This
operated much like modern disability insurance. The first company to offer
accident insurance was the Railway Passengers Assurance Company, formed in
1848 in England to insure against the rising number of fatalities on the nascent
railway system. It was registered as the Universal Casualty Compensation
Company to grant assurances on the lives of persons travelling by railway and to

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grant, in cases, of accident not having a fatal termination, compensation to the
assured for injuries received under certain conditions.
1.2 INSURANCE INDUSTRY IN INDIA
Insurance in India is the market for insurance in India which covers both the state
and private sector organizations. It is listed in the Constitution of India on the
Union list in the Seventh Schedule meaning it can only be legislated by the central
government.
The insurance sector has gone through a number of phases by allowing private
companies to solicit insurance and also allowing foreign direct investment of up to
26% (as of 2013 there have been proposals to extend the FDI up to 49% to
strengthen the Insurance Market even further). However, the largest life-insurance
company in India, Life Insurance Corporation of India is still owned by the
government and carries a sovereign guarantee for all insurance policies issued by
it.
History
In India, insurance has a deep-rooted history. Insurance in various forms has been
mentioned in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmashastra)
and Kautilya (Arthashastra). The fundamental basis of the historical reference to

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insurance in these ancient Indian texts is the same i.e. pooling of resources that
could be re-distributed in times of calamities such as fire, floods, epidemics and
famine. The early references to Insurance in these texts have reference to marine
trade loans and carriers' contracts.
Insurance in its current form has its history dating back until 1818, when Oriental
Life Insurance Company was started by Anita Bhavsar in Kolkata to cater to the
needs of European community. The pre-independence era in India saw
discrimination between the lives of foreigners (English) and Indians with higher
premiums being charged for the latter. In 1870, Bombay Mutual Life Assurance
Society became the first Indian insurer.
At the dawn of the twentieth century, many insurance companies were founded. In
the year 1912, the Life Insurance Companies Act and the Provident Fund Act were
passed to regulate the insurance business. The Life Insurance Companies Act, 1912
made it necessary that the premium-rate tables and periodical valuations of
companies should be certified by an actuary. However, the disparity still existed as
discrimination between Indian and foreign companies. The oldest existing
insurance company in India is the National Insurance Company, which was
founded in 1906, and is still in business.

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The Government of India issued an Ordinance on 19 January 1956 nationalizing
the Life Insurance sector and Life Insurance Corporation came into existence in the
same year. The Life Insurance Corporation (LIC) absorbed 154 Indian, 16 non-
Indian insurers as also 75 provident societies—245 Indian and foreign insurers in
all. In 1972 with the General Insurance Business (Nationalization) Act was passed
by the Indian Parliament, and consequently, General Insurance business was
nationalized with effect from 1 January 1973. 107 insurers were amalgamated and
grouped into four companies, namely National Insurance Company Ltd., the New
India Assurance Company Ltd., the Oriental Insurance Company Ltd and the
United India Insurance Company Ltd. The General Insurance Corporation of India
was incorporated as a company in 1971 and it commence business on 1 January
1973.
The LIC had monopoly till the late 90s when the Insurance sector was reopened to
the private sector. Before that, the industry consisted of only two state insurers:
Life Insurers (Life Insurance Corporation of India, LIC) and General Insurers
(General Insurance Corporation of India, GIC). GIC had four subsidiary
companies. With effect from December 2000, these subsidiaries have been de-
linked from the parent company and were set up as independent insurance
companies: Oriental Insurance Company Limited, New India Assurance Company

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Limited, National Insurance Company Limited and United India Insurance
Company Limited.
Industry structure
By 2012 Indian Insurance is a US$72 billion industry. However, only two million
people (0.2% of the total population of 1 billion) are covered under Mediclaim,
whereas in developed nations like USA about 75% of the total population is
covered under some insurance scheme. With more and more private companies in
the sector, this situation is expected to change. ECGC, ESIC and AIC provide
insurance services for niche markets. So, their scope is limited by legislation but
enjoy some special powers.
Legal structure
The insurance sector went through a full circle of phases from being unregulated to
completely regulated and then currently being partly deregulated. It is governed by
a number of acts.
The Insurance Act of 1938 was the first legislation governing all forms of
insurance to provide strict state control over insurance business. Life insurance in
India was completely nationalized on 19 January 1956, through the Life Insurance

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Corporation Act. All 245 insurance companies operating then in the country were
merged into one entity, the Life Insurance Corporation of India.
The General Insurance Business Act of 1972 was enacted to nationalize the about
100 general insurance companies then and subsequently merging them into four
companies. All the companies were amalgamated into National Insurance, New
India Assurance, Oriental Insurance and United India Insurance, which were
headquartered in each of the four metropolitan cities. Until 1999, there were no
private insurance companies in India. The government then introduced the
Insurance Regulatory and Development Authority Act in 1999, thereby de-
regulating the insurance sector and allowing private companies. Furthermore,
foreign investment was also allowed and capped at 26% holding in the Indian
insurance companies.
In 2006, the Actuaries Act was passed by parliament to give the profession
statutory status on par with Chartered Accountants, Notaries, Cost & Works
Accountants, Advocates, Architects and Company Secretaries. A minimum capital
of US$80 million (Rs.400 Crores) is required by legislation to set up an insurance
business.

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Authorities
The primary regulator for insurance in India is the Insurance Regulatory and
Development Authority (IRDA) which was established in 1999 under the
government legislation called the Insurance Regulatory and Development
Authority Act, 1999.
The industry recognizes examinations conducted by IAI (for actuaries), III (for
agents, brokers and third-party administrators) and IIISLA (for surveyors and loss
assessors). TAC is the sole data repository for the non-life industry. IBAI gives
voice for brokers while GI Council and LI Council are platforms for insurers.
AIGIEA, AIIEA, AIIEF, AILICEF, AILIEA, FLICOA, GIEAIA, GIEU and
NFIFWI cater to the employees of the insurers. In addition, there are a dozen
Ombudsman offices to address client grievances.
Insurance Companies in India
There are two types of insurance companies in India. They fall under two
categories of Life Insurance Companies and Non-life Insurance Companies.
India’s life insurance segment collected new business premiums worth Rs 11,742.7
crore (US$ 1.84 billion) for April–May 2013. Indian insurance companies

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collected a combined Rs 107,010.7 crore (US$ 16.85 billion) worth of new
premiums for FY 2012–13, according to data released by IRDA.
Meanwhile, the general insurance industry grew by 19.6 per cent in April–May
period of FY 2013–14. Non-life insurers collected premiums worth Rs 13,552.46
crore (US$ 2.13 billion) in the first two months of the current year, as compared to
Rs 11,333.54 crore (US$ 1.78 billion) during the corresponding period of the
previous year.
This list of life insurance companies in India is based on the list of life insurance
companies registered and approved with the Insurance Regulatory and
Development Authority.
Life Insurers in India:
Table: 1(a)
S.No. Life Insurance Companies
1 Bajaj Allianz Life Insurance Co. Ltd.
2 Birla Sun Life Insurance Co. Ltd.
3 HDFC Standard Life Insurance Co. Ltd.
4 ICICI Prudential Life Insurance Co. Ltd.
5 Life Insurance Corporation of India.

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6 PNB Metlife India Insurance Co. Ltd.
7 Kotak Mahindra Old Mutual Life Insurance Ltd.
8 SBI Life Insurance Co. Ltd.
9 Tata AIA Life Insurance Co. Ltd.
10 Reliance Life Insurance Co. Ltd.
11 Aviva Life Insurance Company India Ltd.
12 Sahara India Life Insurance Co. Ltd.
13 Shriram Life Insurance Co. Ltd.
14 Bharti AXA Life Insurance Co. Ltd.
15 Future Generali India Life Insurance Co. Ltd.
16 IDBI Federal Life Insurance Co. Ltd.
17 Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.
18 AEGON Religare Life Insurance Co. Ltd.
19 DHFL Pramerica Life Insurance Co. Ltd.
20 Star Union Dai-ichi Life Insurance Co. Ltd.
21 IndiaFirst Life Insurance Co. Ltd.
22 Edelweiss Tokio Life Insurance Co. Ltd.
23 Max Life Insurance Co. Ltd.
24 ING Vysya Life Insurance Company Ltd.

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1.3 INTRODUCTION TO THE TOPIC
An investment portfolio is a collection of assets owned by an individual or by an
institution. It is made up mainly of securities, such as stocks, bonds, mutual funds,
money market funds and exchange traded funds. Pool of different investments by
which an investor bets to make a profit (or income) while aiming to preserve the
invested (principal) amount. These investments are chosen generally on the basis
of different risk-reward combinations: from 'low risk, low yield' (gilt edged) to
'high risk, high yield' (junk bonds) ones; or different types of income streams:
steady but fixed, or variable but with a potential for growth. A portfolio investment
is a passive investment in securities, which entails no active management or
control of the securities by the investor. A portfolio investment is an investment
made by an investor who is not particularly interested in involvement in the
management of a company. The purpose of the investment is solely financial
gain.It includes investment in an assortment or range of securities, or other types of
investment vehicles, to spread the risk of possible loss due to below-expectations
performance of one or a few of them.
A Unit Linked Insurance Plan (ULIP) is a product offered by insurance
companies that unlike a pure insurance policy gives investors the benefits of both
insurance and investment under a single integrated plan. A ULIP is basically a

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combination of insurance as well as investment. A part of the premium paid is
utilized to provide insurance cover to the policy holder while the remaining portion
is invested in various equity and debt schemes. The money collected by the
insurance provider is utilized to form a pool of fund that is used to invest in various
markets instruments (debt and equity) in varying proportions just the way it is done
for mutual funds. Policy holders have the option of selecting the type of funds
(debt or equity) or a mix of both based on their investment need and appetite. Just
the way it is for mutual funds, ULIP policy holders are also allotted units and each
unit has a net asset value (NAV) that is declared on a daily basis. The NAV is the
value based on which the net rate of returns on ULIPs are determined. The NAV
varies from one ULIP to another based on market conditions and the fund’s
performance.
 Open end Fund:
A type of fund that does not have restrictions on the amount of shares/units the
fund will issue. If demand is high enough, the fund will continue to issue
shares/units no matter how many investors there are. Open-end funds also buy
back shares when investors wish to sell. The majority of ULIPs/mutual funds
are open-end. By continuously selling and buying back fund shares/units, these
funds provide investors with a very useful and convenient investing vehicle.

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It should be noted that when a fund's investment manager(s) determine that a
fund's total assets have become too large to effectively execute its stated
objective, the fund will be closed to new investors and in extreme cases, be
closed to new investment by existing fund investors.
 Assets Under Management:
In finance, assets under management (AUM), sometimes called funds under
management (FUM), measures the total market value of all the financial assets
which a financial institution such as a ULIP fund, mutual fund, venture capital
firm, or brokerage house manages on behalf of its clients. This metric is very
popular within the financial industry and is a sign of size and success of any
firm against its competition. The AUM is calculated by different methods.
 Equity:
An instrument that signifies an ownership position, or equity, in a corporation, and
represents a claim on its proportionate share in the corporation's assets and profits.
A person holding such an ownership in the company does not enjoy the highest
claim on the company's earnings. Instead, an equity holder's claim is subordinated
to creditor's claims, and the equity holder will only enjoy distributions from
earnings after these higher priority claims are satisfied also called equities or
equity securities or corporate stock.

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 Large Cap Equity
Large Cap Equities are equities of those companies whose market capitalization
is greater than $ 8 million.
 Mid Cap Equity
Mid Cap Equities are equities of those companies whose market capitalization
between $ 2billion and $7 billion.
 Debentures/Bonds
A debenture is a debt security issued by a corporation that is not secured by
specific assets, but rather by the general credit of the corporation. Stated assets
secure a corporate bond, unlike a debenture, but in India these are used
interchangeably.
Bonds are lOUs between a borrower and a lender. The borrowers include public
financial institutions and corporations. The lender is the bond fund, or an
investor when an individual buys a bond. In return for the loan, the issuer of the
bond agrees to pay a specified rate of interest over a specified period of time.
Typically bonds are issued by PSUs, public financial institutions and
corporates. Another distinction is SLR (Statutory liquidity ratio) and non-SLR

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bonds. SLR bonds are those bonds which are approved securities by RBI which
fall under the SLR limits of banks.
 Government Securities
The Government securities comprise dated securities issued by the Government
of India and state governments as also, treasury bills issued by the Government
of India. Reserve Bank of India manages and services these securities through
its public debt offices located in various places as an agent of the Government.
 Money Market Securities
Money Market means market where money or its equivalent can be traded.
Money is synonym of liquidity. Money Market consists of financial institutions
and dealers in money or credit who wish to generate liquidity. It is better known
as a place where large institutions and governments manage their short term
cash needs. For generation of liquidity, short term borrowing and lending is
done by these financial institutions and dealers. Money Market is part of
financial market where instruments with high liquidity and very short term
maturities are traded. Due to highly liquid nature of securities and their short
term maturities, money market is treated as a safe place. Hence, money market
is a market where short term obligations such as treasury bills, commercial
papers and bankers’ acceptances are bought and sold.

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 Credit Rating
Credit rating is an opinion about a debt instrument and its issuer. It tells an
investor, whether the debt instrument is safe or risky. It tells whether the issuer
will be able to pay the interest and repay the principal amount in time.
Credit rating is only an opinion. It is not a recommendation. It does not ask an
investor to buy, hold or sell an instrument. So, credit rating is an opinion about
the future ability and legal obligation of the issuer to make timely payments of
principal amount and interest on their debt instruments.
Credit rating is done by independent credit-rating agencies like:
S & P, which is based in USA,
while CRISIL, CARE and ICRA Ltd., which are based in India.
Credit rating is done by experts after examining various factors. The rating is
expressed in alphabetical or alphanumeric symbols.
Following are examples of credit rating:
If the rating of debenture is AAA (Triple A), then it is considered to have the
highest safety for the investor.

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If the credit rating is DDD (Triple D),, then the debenture is considered to have
highest risk for the investor.
 Fund Performance Index
Fund Performance Index can be defined as the index which acts as the
benchmark performance which consider various factors against which the
funds’ performance is measured. In India, these indices are prepared by BSE,
NIFTY, CRISIL and so on.

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2.1 TITLE OF THE PROJECT
“A STUDY ON INVESTMENT PORTFOLIO TOWARDS ULIPS OF HDFC LIFE”
2.2 STATEMENT OF PROBLEM
There are many options for investing in India such as equities, bonds, real estates,
commodities, gold, foreign currencies, etc. As I went to HDFC Life, I found
another option of investment which is called as Unit Linked Insurance Plans
(ULIPs) and I was interested in knowing how do ULIPs function and I decided to
make a project report on ULIPs specifically on their investment portfolio:
 To find out different ULIPs offered by HDFC Life.
 To find out different fund related to ULIPs.
 To find out different investment avenues associated with the ULIPs.
 To find out the combination of equities, bonds and money market
instruments in portfolio of ULIPs’ funds.
2.3 SCOPE OF THE STUDY
The current study is undertaken to know the investment portfolio towards ULIPs of
HDFC Life and the performance of the same against the industry benchmark. The
study also looks at the investment strategies adopted by HDFC Life in positioning

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the investment options in its portfolio. The study can be extended to ULIPs of
other Life Insurance Companies as well.
2.4 OBJECTIVES OF THE STUDY
 To know the asset allocation of ULIPs’ funds.
 To identify different equites, debentures/bonds, government securities and
money market securities where ULIPs’ funds invest.
 To analyze the performance of HDFC Life’s ULIPs’ funds.
 To help the investors in making investment decisions.
 To provide helpful reference for related studies in future.
2.5 METHODOLOGY
The study is based on secondary data analysis. The typology of research is like a
case study. However, both primary and secondary data are considered while doing
data analysis and interpretation.
2.5.1 DATA ANALYSIS PLAN
The appropriate methods of data analysis have been determined in the project and
are based on types of data and variables.

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The project contains the following types of data analysis strategies:
 Exploratory: The study has an approach to analyze data sets to summarize
their main characteristics using different visual methods.
 Descriptive: The most common type of data analysis, it is used to summarize
the major findings and discussions over different data.
 Inferential: Inferential statistics has allowed drawing conclusions about the
data analysis and the actual performance analysis of the ULIPs.
2.5.2 SOURCES OF DATA
Data are values of qualitative or quantitative variables, belonging to a set of items.
Data in computing are often represented by a combination of items organized in
rows and multiple variables organized in columns. Data are typically the results of
measurements and can be visualized using graphs or images. The data related to
the study is collected mainly from secondary sources.
 PRIMARY DATA
Since the study is based on secondary data, primary data is not considered.
 SECONDARY DATA
Secondary data consists of periodical fund reports, publications, NAVs
indicator, files; obtained from different websites.

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2.6 LIMITATIONS OF THE STUDY
Though the study can give a broad knowledge about Unit Linked Insurance Plans
(ULIPs) and their investment portfolio, it suffers from following limitations:
 It is based on secondary data. So, the data provided by HDFC Life has been
considered as reflecting the true picture.
 Only limited aspects of the investment portfolio have been studied which
may not be sufficient to draw a valuable conclusion.
 The study has been completed within a shorter time frame; so many other
variables related to the interest of the study have been left out.
 Out of 82 funds, only 11 funds are selected as samples for the study.
 The study only focuses on one insurance organization, i.e., HDFC Standard
Life Insurance Company Limited (HDFC Life).
2.7 NEED FOR THE STUDY
1. The study has great significance and provides benefits to various parties who
directly or indirectly interact with the company.
2. It is beneficial to the company in providing crystal clear picture regarding
important aspects like ULIPs, its features, its functioning, its returns, its risks
and its portfolios.

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3. It is also beneficial to employees and offers motivation by showing how
actively they are contributing to company’s growth.
4. The investors who are interested in investing in the ULIPs will also get
benefited by going through the study and can easily take a decision whether to
invest or not.

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3.1 INTRODUCTION OF HDFC LIFE
HDFC Life is a joint venture between Housing Development Finance Corporation
Limited (HDFC), India's leading housing finance institution and Standard Life plc,
the leading provider of financial services in the United Kingdom.
HDFC Ltd. holds 72.37% and Standard Life (Mauritius Holding) Ltd. holds
26.00% of equity in the joint venture, while the rest is held by others.
HDFC Life's product portfolio comprises solutions, which meet various customer
needs such as Protection, Pension, Savings, Investment and Health. Customers
have the added advantage of customizing the plans, by adding optional benefits
called riders, at a nominal price. The company currently has 22 retail and 8 group
products in its portfolio, along with 9 optional rider benefits catering to the
savings, investment, protection and retirement needs of customers.
HDFC Life continues to have one of the widest reaches among new insurance
companies with about 500 branches in India touching customers in over 900 cities
and towns. The company has also established a liaison office in Dubai. HDFC Life
has a strong presence in its existing markets with a strong base of Financial
Consultants.

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HDFC Limited
HDFC Ltd. is India’s premier housing finance company and a well established
financial conglomerate. It has assisted more than 45 Lakhs customers in acquiring
their own home through cumulative housing loan disbursements of over Rs.
4,56,000 crores. With a wide network of 333 offices, it caters to 2,400 towns and
cities across India. HDFC Ltd has International offices in London, Dubai and
Singapore with service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi
and Saudi Arabia – Al Khobar, Jeddah and Riyadh to cater to non-resident Indians
and PIO’s.
Customer Service and satisfaction has been the mainstay of the organization since
its inception, with HDFC setting a benchmark for the Indian housing finance
industry. Recognition for the service to the sector has come from several national
and international entities including the World Bank that has lauded HDFC as a
model housing finance company for the developing countries. HDFC has
undertaken a lot of consultancies abroad for setting up of housing finance
companies - assisting different countries including Sri Lanka, Indonesia, Bhutan,
Nepal, Ghana, Thailand, Philippines, Egypt, Maldives, Mauritius, Bangladesh,
Jamaica and Russia among other countries.

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Standard Life plc.
Established in 1825, Standard Life plc. is a leading provider of long term savings
and investments to around six million customers worldwide. Headquartered in
Edinburgh, Standard Life plc. has around 8,500 employees internationally.
The Standard Life plc. group includes savings and investments businesses, which
operate across the UK, Canada, Europe, Asia and Middle East; workplace pensions
and benefits businesses in the UK and Canada; Standard Life Investments, a global
investment manager, which manages over £179bn globally; and its Chinese and
Indian Joint Venture businesses. At the end of September 2013 the Group had total
assets under administration of over £237bn.
Standard Life plc is listed on the London Stock Exchange and has approximately
1.5 million individual shareholders in over 50 countries around the world. It is also
listed in the Dow Jones Sustainability World Index, ranking it among the top 10%
of sustainable companies in the world.
Type of business
Insurance & Investments

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Board of Directors
Mr. Deepak S. Parekh
He is the Chairman of the Company. He is also the Chairman and Director of
Housing Development Finance Corporation Limited (HDFC Limited). He joined
HDFC Limited in a senior management position in 1978. He was inducted as a
whole-time director of HDFC Limited in 1985 and was appointed as its Chairman
in 1993. Mr. Parekh is a Fellow of the Institute of Chartered Accountants (England
& Wales).
Mr. Gerald E. Grimstone
He was appointed Chairman of Standard Life in May 2007, having been Deputy
Chairman since March 2006. He became director of the Standard Life Assurance
Company in July 2003. He is also Chairman of Candover Investments plc and was
appointed as one of the UK’s Business Ambassadors by the Prime Minister in
January 2009. Gerry held senior positions within the Department of Health and
Social Security and HM Treasury until 1986. He then spent 13 years with
Schroders in London, Hong Kong and New York, and was Vice Chairman of
Schroders’ worldwide investment banking activities from 1998 to 1999. He is
appointed as Director of the Company from April 1, 2013. He has completed

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Master of Arts, Master of Science in Chemistry, Merton College, Oxford
University and NATO-CCMS Fellowship Wolfson College, Oxford University.
Mr. Keki M. Mistry
He joined the Board of Directors of the Company in December, 2000. He is
currently the Vice Chairman and Chief Executive Officer of HDFC Limited. He
joined HDFC Limited in 1981 and appointed as Executive Director in 1993, he is
currently Managing Director for the group since 2000. Mr. Mistry is a Fellow of
the Institute of Chartered Accountants of India and a member of the Michigan
Association of Certified Public Accountants.
Ms. Renu S. Karnad
She is the Managing Director of HDFC Limited. She is a graduate in Law and
holds a Master's degree in Economics from Delhi University. She has been
employed with HDFC Limited since 1978 and was appointed as the Executive
Director in 2000 and Deputy Managing Director in 2007. She is responsible for
overseeing all aspects of lending operations of HDFC Limited.
Mr. David Nish
He joined Standard Life on 1st November 2006 as Group Finance Director and
held the designation until December 2009. He is the Chief Executive at Standard

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Life Plc. In 2000, he was awarded the Scottish Business Awards Finance Director
of the Year and from 2004 to 2005 he was one of the members of the Government
Employers Pension Task Force. He is a member of the Institute of Chartered
Accountants of Scotland. He joined the Board of Directors in February 2010.
Mr. Norman K. Skeoch
He is currently the Chief Executive in Standard Life Investments Limited and is
responsible for overseeing Investment Process & Chief Executive Officer
Function. Prior to this, Mr. Skeoch was working with M/s. James Capel & Co.
holding the positions of UK Economist, Chief Economist, Executive Director,
Director of Controls and Strategy HSBS Securities and Managing Director
International Equities. He was also responsible for Economic and Investment
Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of
Directors in November 2005. Mr. Skeoch is a Fellow of the Securities Institute,
Fellow of the Royal Institute for the Encouragement of the Arts, Manufacture and
Commerce, BA, MA.
Mr. Gautam R. Divan
He is a practising Chartered Accountant and is a Fellow of the Institute of
Chartered Accountants of India. Mr. Divan was the Former Chairman and
Managing Committee Member of Midsnell Group International, an International

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Association of Independent Accounting Firms and has authored several papers of
professional interest. Mr. Divan has wide experience in auditing accounts of large
public limited companies and nationalized banks, financial and taxation planning
of individuals and limited companies and also has substantial experience in
structuring overseas investments to and from India.
Mr. Ranjan Pant
He is a global Management Consultant advising Chief Executive Officer/Boards
on Strategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice-
President at Bain & Company Inc., Boston, where he led the worldwide Utility
Practice. He was also Director, Corporate Business Development at General
Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from The Wharton
School and BE (Honors) from Birla Institute of Technology and Sciences.
Mr. Ravi Narain
He is the Vice Chairman of National Stock Exchange of India Limited. Mr. Ravi
Narain was a member of the core team to set-up the Securities & Exchange Board
of India (SEBI) and is also associated with various committees of SEBI and the
Reserve Bank of India (RBI). Mr. Ravi Narain is a Cambridge University-trained
Economist and an MBA from Wharton School, University of Pennyslvania, USA.

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Mr. A. K.T. Chari
He has joined HDFC Standard Life as a Director on March 10, 2010. Mr. Chari has
completed his Electrical Engineering from Madras University in 1962. He is
associated with Infrastructure Development Finance Company Ltd. (IDFC) for the
past 11 years. Currently, he is handling project finance for infrastructure projects at
IDFC. Prior to this he was associated with Infrastructure Development Bank of
India (IDBI) from 1975 to 1999.
Dr. S. A. Dave
He is a Doctorate of economics and holds a Master’s degree in economics from the
University of Rochester. Dr. Dave is the former chairman of the Securities and
Exchange Board of India and the Unit Trust of India. Dr. Dave is currently the
chairman of the Centre for Monitoring Indian Economy and director on the boards
of many prominent companies in India. He was appointed as Additional Director
of the Company from April 26, 2012.
Mr. Michael G Connarty
He is responsible for Standard Life's investments in life assurance Joint Ventures
in India and China. He holds a degree in Law and MBA. He has worked with
Standard Life for 33 years in managerial positions covering a number of fields
such as Pensions law, International Marketing, Operational Management, Strategy,

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Risk, Compliance, Company Secretarial and Banking. He served as the Project
Manager for the start-up project of the Company in 2000. He is the Alternate
Director to Mr. Norman K. Skeoch.
Mr. Amitabh Chaudhry
He is the Managing Director and Chief Executive Officer of HDFC Life. Before
joining HDFC Standard Life, he was the Managing Director and Chief Executive
Officer of Infosys BPO and was also heading an Independent Validation Services
unit in Infosys Technologies. He started his career with Bank of America
delivering diverse roles ranging from Head of Technology Investment Banking for
Asia, Regional Finance Head for Wholesale Banking and Global Markets and
Chief Finance Officer of Bank of America (India). He moved to Credit Lyonnais
Securities in 2001 in Singapore where he headed their investment banking
franchise for South East Asia and structured finance practice for Asia before
joining Infosys BPO in 2005. Mr. Chaudhry completed his Engineering in 1985
from Birla Institute of Technology and Science, Pilani and MBA in 1987 from
IIM, Ahmedabad.
Ms. Vibha Padalkar
She is the Executive Director and Chief Financial Officer at HDFC Life. Ms.
Padalkar joined HDFC Life in August 2008 after a seven year stint as Executive

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Vice President-Finance at WNS Global Services; a NYSE listed leading global
business process outsourcing company. Vibha's key achievement during her tenure
at WNS was to lead a team that successfully completed the Group's IPO on the
New York Stock Exchange in a short span of six months. Prior to WNS, Vibha was
with Colgate Palmolive India, including a short posting to the group's New York
headquarters. Ms. Padalkar became a member of the Institute of Chartered
Accountants in England and Wales in 1992, after having completed the last part of
her schooling as well as college education in London. She is also a member of the
Institute of Chartered Accountants in India. Apart from leading the finance,
internal audit, compliance, risk management, legal and secretarial teams, Vibha has
taken additional responsibility during the year of hub operations, claims and
payouts, underwriting and medical operations.

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3.3 ORGANISATIONAL STRUCTURE
Graphical Representation: 3(a)
CHAIRMAN
MANAGING DIRECTOR
ZONAL MANAGER
REGIONAL MANAGER
ALTERNATIVE
CHANNEL
Territory
Manager,
B.M
HUMAN
RESOURSE
MANAGER
RETAIL
Territory,
Branch,
Asst. B.M.
OPERATION
CHANNEL
Team and
Operation
Manager
BUSINESS DEVELOPER, SALES DEVELOPMENT
EXECUTIVE, CHANNEL EXECUTIVE, H.R EXECUTIVE,
AND OTHERS

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3.4 PRODUCTS AND SERVICES
Protection Plans
Protection plans are typically low cost insurance plans that provide full protection
and financial stability to your loved ones in case of any unforeseen events. HDFC
Life presents a variety of Protection plans according to your various needs.
HDFC Life Click2Protect
HDFC Life Click2Protect, an online term insurance plan that offers a quick and
simple solution at the click of a button to safeguard the financial independence of
your entire family. The plan takes care of family’s financial needs in case of
uncertainties by providing a lump sum to the family.
HDFC Term Assurance Plan
HDFC Term Assurance Plan is a term plan that safeguards your family’s financial
protection in the event of your unfortunate demise and in addition to this it also
provides you the option of selecting some add-on benefits like Critical illness,
Accidental and Accelerated Sum Assured benefits.

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Health Insurance Plans
Health Plans offer financial security to meet health related contingencies. Due to
changing lifestyles, health issues have not just escalated, they have increasingly
become more complex in nature. It becomes imperative therefore to have a health
insurance plan in place, thus your financial planning is incomplete if you have not
accounted for health.
HDFC Life Health Assure Plan
HDFC Life Health Assure Plan, a comprehensive, pure protection health insurance
plan that reimburses medical expenses incurred in a hospital. It provides individual
as well as family floater option.
Children's Insurance Plans
Successful parenting is no mean accomplishment. A huge contributor to this
success is financial planning for your child's future needs at the right age! There is
really no better gift you can give your child, than the promise of a secure future
with YoungStar Plans from HDFC Life. This Birthday, gift your child a secure
future and watch her soar high to fulfill her dreams.

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HDFC SL YoungStar Super Premium
Children insurance plans help build savings so that over time there is enough to
finance your child’s education, marriage, house or car. HDFC SL YoungStar Super
Premium, a unit-linked insurance plan (ULIP) designed to accumulate savings for
your child's future, even in your absence.
Savings and Investment Plans
Our Savings and Investment plans are life insurance plans that offer you multiple
avenues to save and to grow your money. These plans help in systematic and
disciplined investment ensuring that you and your family achieve your financial
goals.
HDFC Life Sanchay -Guaranteed Savings Insurance Plan
Life is full of responsibilities and as a responsible individual you aspire to build a
financially secured life for your loved ones. Guaranteed Returns helps you to fulfill
your responsibility with ease. Presenting HDFC Life Sanchay, a non-participating
insurance plan, which offers guaranteed benefits along with flexibility to choose
your investment horizon.

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HDFC SL Crest ULIP Investment Plan
HDFC SL Crest, is a unit linked insurance plan which helps you to achieve your
investment goals in a short period of 10 years along with financial protection for
your family. Pay premiums for only 5 years to get market linked returns for a
period of 10 years. Get Flexibility of 4 investment fund options to help you make
the right investment choice as per your needs.
HDFC Life ClassicAssure PlusText Size
HDFC Life ClassicAssure Plus is an investment cum insurance plan that offers
guaranteed benefit while letting your money grow. The plan is ideal for meeting
long term financial goals as well as creating a financial cushion to secure your
family’s future.
HDFC Life Super Savings Plan
Regular savings over a long period ensures that a corpus is built to meet financial
goals at various life stages. Presenting HDFC Life Super Savings Plan, a 'with
profits' plan to safeguard the financial interests of your loved ones in your absence.

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HDFC Life Super Income Plan
HDFC Life Super Income Plan is a participating regular income plan with
guaranteed benefits plus bonuses. This policy offers guaranteed income for a
period of 8 to 15 years and is ideal for individuals who need regular income at their
disposal so that they don’t have to worry about future expenses and fulfill their
financial goals uninterrupted.
HDFC Life ProGrowth Plus
HDFC Life ProGrowth Plus, a simple savings-cum-insurance plan that will enable
you to enjoy life cover and benefit from comfort of creating your own investment
strategies. This ULIP plan will help you to make the most of equities by
channelizing your savings effectively.
HDFC SL ProGrowth Flexi
It's prudent to be prepared all the time so that you can meet your life’s goals in a
manner that secures your finances. HDFC SL ProGrowth Flexi, a savings-cum-
insurance unit-linked plan (ULIP) that enables you to provide financial security to
your loved ones.

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Pension Plans for Retirement Planning
Retirement Plans provide you with financial security so that when your
professional income starts to ebb, you can still live with pride without
compromising on your living standards. Given the high cost of living and rising
inflation, Retirement planning has become all the more important.
HDFC Life Personal Pension Plus
HDFC Life Personal Pension Plus is a traditional participating pension plan ideal
for individuals who seek to plan for their retirement. Get secure and stable returns
on your invested corpus for post retirement income.
HDFC Life Single Premium Pension Super Plan
Investing in a pension plan is one way to secure your finances post-retirement.
Presenting HDFC Life Single Premium Pension Super Plan, a unit-linked pension
plan that creates a corpus over the policy term to generate post-retirement income
for life.
HDFC Life Pension Super Plus
You wait for the day when you can retire and pursue your interests - full time. This
is possible only if you have assurance of post-retirement income. Presenting,

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HDFC Life Pension Super Plus Plan, a unit-linked pension plan designed to build a
corpus over the policy term so that you can enjoy post-retirement life.
HDFC Life New Immediate Annuity Plan
HDFC Life New Immediate Annuity Plan is a non linked traditional annuity plan
that offers you various annuity options and provides you an opportunity to live life
at on your terms even after retirement.
HDFC Life Guaranteed Pension Plan
Don't let market downturns take your retirement savings and your retirement
dreams down with them! Presenting, HDFC Life Guaranteed Pension Plan, a plan
designed to help you build and secure your retirement fund to enjoy the post
retirement income.
Women's Insurance Plans
HDFC Life presents special solutions catering to different financial needs of
women. Women’s plans are a set of specially created and hand-picked products
which suit the needs of women at different stages of their life; such as protection,
health, retirement, child’s education and long term savings and investments.

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HDFC Life Smart Woman Plan
HDFC Life Smart Woman Plan, a life insurance policy for women that gives wings
to your aspirations. The plan ensures your savings grow leaving you free to pursue
your career and continue making a difference to those around you.
HDFC Life Click2Protect
As a modern woman, it’s time to shoulder the responsibility for your family’s
financial security. HDFC Life Click2Protect is an online term insurance plan
which helps you secure your family’s financial independence at the click of a
button. Ensure your parents, spouse and child are taken care of in your absence.
Rural & Social Plans
Rural & Social Plans are a special offering from HDFC Life, exclusively for the
benefit of our rural customers. These plans have been designed keeping in view the
rural population with stable returns and insurance cover.
HDFC SL SarvGrameen Bachat Yojana
HDFC SL SarvGrameen Bachat Yojana is a special offering from HDFC Standard
Life, exclusively for the benefit of our rural customers to help them have this
preparedness. HDFC SL SarvGrameen Bachat Yojana provides robust returns even
on an investment as small as Rs. 200 by adding 50% to original investment in 5

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years. Apart from guaranteed returns, this plan offers the essential security of a life
insurance. A single premium of Rs. 200 is due on the date of commencement.
There is no further premium/s due.
3.5 CORPORATE OFFICE AND BRANCHES
HDFC Life is a Life Insurance Company which operates its business and provides
services from its more than 450 branches covering above 960 cities in India. It has
more than 15000 employees working in its head office, branches and one
international liaison office in Dubai.
Corporate Office
HDFC Standard Life Insurance Company Limited,
12th & 13th Floor, Lodha Excelus,
Apollo Mills Compound, N .M. Joshi Road,
Mahalaxmi, Maharashtra, Mumbai - 400 011.

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Customer Service Office
Customer Service- Mumbai
HDFC Standard Life Insurance Co. Ltd.
11th Floor, Lodha Excelus Apollo Mills Compound,
N .M. Joshi Road, Mahalaxmi,
Mumbai- 400011.
Customer Service- Chennai
HDFC Standard Life Insurance Company Limited,
6th Floor, RR Tower III,
T.V.K. Industrial Estate, Guindy,
Chennai-600032.
International Liaison Office
HDFC Standard Life Insurance Co. Ltd,
Office number- 207, 2nd floor, The Business Center,
Bank Street, Bur Dubai, Dubai, United Arab Emirates.

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3.6 Vision & Values
Values are the most critical elements that reflect the conduct of an organization.
Below is HDFC Life’s vision and our values, the pillars that support the success of
HDFC Life.
Vision
The most successful and admired life insurance company, which mean that we are
the most trusted company, the easiest to deal with, offer the best value for money
and set the standards in the industry.
'The most obvious choice for all'
Values
The vision and values that HDFC Life observe at work
Excellence
People Engagement
Integrity
Customer Centricity
Collaboration

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3.7 FUTURE GROWTH AND PROSPECTS
The major future prospects are as follows:
 Further growth in distribution network across North East India.
 Focus in insurance advisory service and ULIPs apart from Traditional
Insurance Plans.
 Reaching out to the potential customers.
 Increasing the base of insurance agents.
 Applying Information Technology in its business operations
3.8 SWOT ANALYSIS
 STRENGTHS
 Domestic image of HDFC supported by Standard Life’s international image
is the strength of the company.
 Strong and well spread network of qualified intermediaries and sales person.
 Strong capital and reserve base.
 The company provides customer service of the highest order.
 Huge basket of product range which are suitable for all age and income
groups.

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 Large pool of technically skilled manpower with in depth knowledge and
understanding of the market.
 The company also provides innovative products to cater to different needs of
different customers.
 WEAKNESS:
 Heavy management expenses and administrative costs.
 Low customer confidence on private players.
 Vertical hierarchical reporting structure with many designations and cadres
leading to power politics at all levels without any exception.
 Poor retention percentage of tied up agents.
 OPPORTUNITIES
 Insurable population: According to IRDA only 10% of people are insured.
 This suggests that more than 300m people, with the potential to buy
insurance, remain uninsured.

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 There will be inflow of managerial and financial expertise from the world’s
insurance markets. Further the burden of educating consumers will be shared
among many players.
 International companies will help in building world class expertise in local
market by introducing the best global practices.
 THREATS
 Other private insurance companies also vying for the same uninsured
population.
 Competition from public sector insurance companies like LIC, National
Insurance Company Limited, Oriental Insurance Limited, New India
Assurance Company Limited and United India Insurance Company Limited.
 People trust Public sector insurance companies and go to them more.
 Poaching of customer base by other companies.
 Most people don’t understand the need or are not willing to take insurance
policies in general.

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3.8 MARKET SHARE
Graphical Representation: 3(b)
The above figure clearly shows that life insurance business is apparently
dominated by LIC. Apart from ICICI Prudential, all private players are having
single digit market share of which HDFC Life has achieved a market share of 6%.

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1. Liquid Fund
Fund Type: Open-End Fund
Asset Class: Money Market
Date of Inception: 02 Jan 2004
Assets Under Management ( In Lakhs): 10,853.80
1.1Investment Portfolio
Table: 4(a)
PORTFOLIO %
Deposits, Money Market Securities and other Assets. 100
Total 100

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Graphical Representation: 4(a)
INTERPRETATION:
The table and the figure shows that the entire amount of Liquid fund is invested in
deposits, money market securities and other short term instruments which is cash
or cash equivalents. The Fund invests 100% in high quality short-term money
market instruments and bank deposits. This means that the risk associated with
Liquid Fund is low and it delivers returns linked to Money Market levels with
minimal interest rate risk and minimal credit risk so as to provide a high level of
safety of capital.
Deposits, Money Mkt Securities
and other Assets 100%

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1.2 Fund V/s Benchmark Performance
Table: 4(b)
The benchmark returns is based on CRISIL Liquid Fund Index. From the table, it
can be understood that Liquid fund gave the return more than the benchmark
return in its inception. In the period of 5 years, the fund outperformed the
benchmark return by 1.31%. Likewise, the fund slightly yielded more return
(8.69%) than benchmark return (8.62%) in 3 years period. In 2 years period, the
actual return of the fund was less than benchmark return by 0.19%. Similarly, the
fund’s rate of return was 8.22% as compared to benchmark return of 9.16% in 1
year period. In the period of 3 months, the fund gave return at the rate of 2.03%
against the benchmark return of 2.17%.
Period Returns (%) Benchmark Returns
(%)
Inception 7.65 6.65
5 years 8.41 7.10
3 years 8.69 8.62
2 years 8.56 8.75
1 years 8.22 9.16
3 months 2.03 2.17

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2. Secured Managed Fund
Asset Class: Intermediate Bond
2.1 Investment Portfolio
Table:4(c)
PORTFOLIO %
Debentures/Bonds 50.94
Government Securities 35.50
Deposits, Money Market Securities and other Assets. 13.56
Total 100

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Graphical Representation: 4(b)
INTERPRETATION:
The table and the figure show that Secured Managed Fund invests in three types
of investment avenues. They are Debentures/Bonds, Government Securities and
deposits, money market securities and other short term instruments which are cash
or cash equivalents.
The Fund invests 51% of its money in debentures and bonds issued by various
public limited companies which includes Power Finance Corporation Limited,
Rural Electrification Corporation Ltd, LIC Housing Finance Limited, Housing
Development Finance Corporation Ltd, National Bank for Agriculture Rural
Development, National Thermal Power Corporation, Tata Sons Ltd., L&T
51%
35%
14%
Debentures/Bonds Government Securities Deposits, MMI & Others

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Shipbuilding Ltd., Power Grid Corporation of India Ltd., UPL Limited, Export and
Import Bank of India, Infrastructure Dev. Finance Ltd., Hindalco Industries
Limited and Others.
35% of the fund holds various securities of Government of India which consists of
8.33% GOI Mat 09-Jul-2026, 8.32% GOI Mat 02-Aug-2032, 8.83% GOI Mat 12-
Dec-2041, 1.44 Inflation Index Bond Mat 05-Jun-2023, 8.20% GOI Mat 24-Sep-
2025, 8.28% GOI Mat 21-Sep-2027, 6.35% Oil Bond Mat 23-Dec-2024, 7.28%
GOI Mat 03-Jun-2019, 9.23% GOI Mat 23-Dec-2043, 8.12% GOI Mat 10-Dec-
2020 and Others.
For the contingent purpose, the fund has 14% investment in high quality short-term
money market instruments and bank deposits. In this way, the fund provides
reasonable returns through investments in high credit quality debt instruments
while maintaining an optimal level of interest rate risk.

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Table:4(d)
The benchmark returns is based on CRISIL Composite Bond Index. From the
table, it can be understood that Secured Managed fund gave the return more than
the benchmark return in its inception. In the period of 5 years, the fund
outperformed the benchmark return by 1.29%. Likewise, the fund slightly yielded
more return (7.80%) than benchmark return (6.85%) in 3 years period. In 2 years
period, the actual return of the fund was more than benchmark return by 0.62%.
Similarly, the fund’s rate of return was 3.36% as compared to benchmark return of
3.33% in 1 year period. In the period of 3 months, the fund gave return at the rate
of 1.61% against the benchmark return of 1.59%.
(%)
Inception 06.57 05.27
5 years 07.24 05.95
3 years 07.80 06.85
2 years 06.76 06.14
1 years 03.36 03.33
3 months 01.61 01.59

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3. Defensive Managed Fund
Asset Class: Conservative Allocation
Table: 4(e)
PORTFOLIO %
Equity 24.67
Total 100

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Graphical Representation: 4(c)
INTERPRETATION:
The table and the figure show that Defensive Managed Fund invests in four types
of investment avenues. They are Debentures/Bonds, Government Securities,
Equities and deposits, money market securities and other assets.
The Fund invests 34% of its investment in debentures and bonds issued by various
public limited companies which includes Rural Electrification Corporation Ltd,
Power Finance Corporation Limited, Export and Import Bank of India, Housing
34%
27%
25%
14%
Debentures/Bonds
Government Securities
Equity
Deposits, Money Market Securities and other Assets.

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Development Finance Corporation Ltd, LIC Housing Finance Limited,Tata Sons
Ltd., Indian Railway Finance Corporation, Infrastructure Dev. Finance Ltd., UPL
Limited and Others.
8.32% GOI Mat 02-Aug-2032, 8.33% GOI Mat 09-Jul-2026, 8.83% GOI Mat 12-
Dec-204, 8.20% GOI Mat 24-Sep-2025, 1.44 Inflation Index Bond Mat 05-Jun-
2023, 8.28% GOI Mat 21-Sep-2027, 7.28% GOI Mat 03-Jun-2019 and others.
The fund’s investment portfolio includes 25% of its assets on equities such as
Infosys Ltd, Reliance Industries Ltd, ICICI Bank Ltd., Tata Consultancy Services
Ltd, ITC Ltd and Others.
money market instruments and bank deposits. The fund aims to enhance long term
returns for a portfolio predominantly invested in fixed income securities by taking
a moderate to medium exposure to equity and equity related securities.

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Table: 4(f)
From the table, it can be understood that Defensive Managed Fund gave the
return more than the benchmark return in its inception. In the period of 5 years, the
fund outperformed the benchmark return by 1.28%. Likewise, the fund slightly
yielded more return (6.84%) than benchmark return (6.46%) in 3 years period. In 2
years period, the actual return of the fund was less than benchmark return by
0.14%. Similarly, the fund’s rate of return was 3.47% as compared to benchmark
return of 4.61% in 1 year period. In the period of 3 months, the fund gave return at
the rate of 1.89% against the benchmark return of 1.44%.
(%)
5 years 10.16 08.88
3 years 06.84 06.46
2 years 06.28 06.42
1 years 03.47 04.61
3 months 01.89 01.44

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4. Balanced Managed Fund
Asset Class: Moderate Allocation
Table: 4(g)
PORTFOLIO %
Equity 51.29
Total 100

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Graphical Representation: 4(d)
INTERPRETATION:
The table and the figure show that Balanced Managed Fund invests in four types
of investment avenues. They are Equities, Debentures/Bonds, Government
Securities, and deposits, money market securities and other assets.
The fund’s investment portfolio includes 51% on equities such as Infosys Ltd, ITC
Ltd, ICICI Bank Ltd, Reliance Industries Ltd, HDFC Bank Ltd, Larsen & Toubro
51%
24%
17%
8%
Equity
Debentures/Bonds

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Limited, Tata Consultancy Services Ltd, Oil & Natural Gas Corporation Ltd,
Bharti Airtel Ltd and Others.
Power Finance Corporation Limited, Indian Railway Finance Corporation,
Housing Development Finance Corporation Ltd, Export and Import Bank of India,
State Bank of Patiala, LIC Housing Finance Limited, Infrastructure Development
Finance Ltd, Tata Sons Ltd, UPL Limited and Others.
8.32% GOI Mat 02-Aug-2032, 8.83% GOI Mat 12-Dec-204, 1.44 Inflation Index
Bond Mat 05-Jun-2023, 9.23% GOI Mat 23-Dec-2043, 6.35% Oil Bond Mat 23-
Dec-2024 and others.
money market instruments and bank deposits. The fund aims to generate long term
capital appreciation along with current income from a combined portfolio of equity
and debt market instruments.

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Table: 4(h)
From the table, it can be understood that Balanced Managed fund gave the return
more than the benchmark return in its inception. In the period of 5 years, the fund
outperformed the benchmark return by 2.62%. Likewise, the fund negligibly
yielded less return (6.02%) than benchmark return (6.07%) in 3 years period. In 2
years period, the actual return of the fund was less than benchmark return by 1%.
(%)
5 years 14.42 11.80
3 years 06.02 06.07
2 years 05.71 06.71
1 years 03.99 05.89
3 months 1.94 01.30

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5. Growth Fund
Asset Class: Large Cap Equities
Table: 4(i)
PORTFOLIO %
Equity 99.04
Total 100

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Graphical Representation: 4(e)
INTREPRETATION:
The table and the figure show that Growth Fund invests in two types of
investment avenues. They are Equities and deposits, money market securities &
other assets.
The fund’s investment portfolio includes 99% on equities of Infosys Ltd, ITC Ltd,
ICICI Bank Ltd, Reliance Industries Ltd, Larsen & Toubro Limited, HDFC Bank
Ltd, Shree Cement Limited, Tata Consultancy Services Ltd, IndusInd Bank Ltd,
Bharti Airtel Ltd, Nestle India Limited, Sun Pharmaceuticals Industries Ltd, Bharat
99%
1%
Equity Deposits, Money Market Securities and other Assets.

| BRINDAVAN COLLEGE
Petroleum Corporation Ltd, Rural Electrification Corporation Ltd, Divis
Laboratories Ltd, Exide Industries Ltd, Oil India Limited, Cadila Healthcare Ltd,
Oracle Financial Services Software Ltd, National Mineral Development
Corporation Ltd, Godrej Industries Ltd, Hindustan Petroleum Corporation Ltd,
Power Finance Corporation Ltd, Sesa Sterlite Ltd, Bank of Baroda, UPL Limited,
Crompton Greaves Ltd and others.
money market instruments and bank deposits. Growth Fund aims to generate long
term capital appreciation from a diversified portfolio of equity and equity related
securities.

| BRINDAVAN COLLEGE
Table: 4(j)
INTERPRETATION:
From the table, it can be understood that Growth fund gave the return more than
the benchmark return in its inception. In the period of 5 years, the fund performed
almost equal to the benchmark performance. Likewise, the fund yielded less return
(%)
5 years 18.93 18.94
3 years 03.74 05.11
2 years 05.05 07.40
1 year 05.11 09.02
3 months 01.70 00.94

| BRINDAVAN COLLEGE
6. Equity Managed Fund
Asset Class: Equity
Table: 4(k)
PORTFOLIO %
Equity 82.53
Total 100

| BRINDAVAN COLLEGE
Graphical Representation: 4(f)
INTERPRETATION:
The table and the figure show that Equity Managed Fund invests in four types of
investment avenues. They are Equities, Debentures/Bonds, Government Securities,
and deposits, money market securities and other assets.
The fund’s investment portfolio includes 83% on equities of Infosys Ltd, ITC Ltd,
ICICI Bank Ltd, Reliance Industries Ltd, HDFC Bank Ltd, Larsen & Toubro
Limited,Tata Consultancy Services Ltd, Oil & Natural Gas Corporation Ltd, Bharti
83%
2%
9%
6%
Equity
Debentures/Bonds

| BRINDAVAN COLLEGE
Airtel Ltd, Divis Laboratories Ltd, IndusInd Bank Ltd, Dr Reddys Laboratories
Limited, AXIS Bank Limited, Nestle India Limited, Shree Cement Limited, Wipro
Ltd, Sesa Sterlite Ltd, Cadila Healthcare Ltd, Adani Port & Special Economic
Zone Ltd, Exide Industries Ltd, Lupin Limited, Bharat Petroleum Corporation Ltd,
Maruti Suzuki India Ltd, Sun Pharmaceuticals Industries Ltd and others.
2% of the portfolio of this fund holds debentures and bonds issued by public
limited companies like LIC Housing Finance Limited, L&T Shipbuilding Ltd, IL
& FS Limited, Housing Development Finance Corporation Ltd, Tata Sons Ltd and
others.
The fund has 9% of its total holding in government securities which includes
8.28% GOI Mat 21-Sep-2027, 8.79% GOI Mat 08-Nov-2021, 1.44 Inflation Index
Bond Mat 05-Jun-2023, 8.32% GOI Mat 02-Aug-2032, 8.33% GOI Mat 09-Jul-
2026 and others.
money market instruments and bank deposits. Equity Managed Fund aims to
achieve long term capital appreciation by investing pre-dominantly in equity and
equity related securities and balancing it by shifting assets to the fixed income
securities depending on the fund manager's views.

| BRINDAVAN COLLEGE
Table: 4(l)
INTERPRETATION:
From the table, it can be understood that Equity Managed Fund gave the return
outperformed the benchmark performance by 2.14%. Likewise, the fund yielded
less return (4.55%) than benchmark return (5.46%) in 3 years period. In 2 years
period, the actual return of the fund was less than benchmark return by 2.19%.
(%)
5 years 18.48 16.34
3 years 04.55 05.46
2 years 04.96 07.15
1 year 04.90 07.88
3 months 02.15 01.07

| BRINDAVAN COLLEGE
7. Stable Managed Fund
Asset Class: Mixed Allocation
Date of Inception: 20 Jun 2007
Table: 4(m)
PORTFOLIO %
Total 100

| BRINDAVAN COLLEGE
Graphical Representation: 4(g)
INTERPRETATION:
The table and the figure show that Stable Managed Fund invests in three types of
investment avenues. They are Debentures/Bonds, Government Securities and
deposits, money market securities and other short term instruments which are cash
or cash equivalents.
84%
9%
7%
Debentures/Bonds

| BRINDAVAN COLLEGE
The fund’s portfolio includes 84% of its investment in debentures and bonds of
public limited companies which consists of Power Finance Corporation Limited,
Infrastructure Dev. Finance Ltd, LIC Housing Finance Limited, National Bank for
Agriculture Rural Development, Shree Cement, HDB Financial Services Ltd, Tata
Capital Financial Services Ltd, Power Grid Corporation of India Ltd, Mahindra
and Mahindra Financial Services Limited, Marico Ltd, Rural Electrification
Corporation Ltd, Indian Railway Finance Corporation, L&T Finance Ltd, ICICI
Home Finance Company Ltd, Housing Development Finance Corporation Ltd,
Tata Sons Ltd and others.
9% of the total fund is invested in government securities which are 7.38% GOI
Mat 03-Sep-2015 and 7.59% Oil Bond Mat 23-Mar-2015.
money market instruments and bank deposits. Stable Managed Fund aims to
generate optimal returns for investors through short term investments in high credit
quality securities so as to keep interest rate risks low and provide safety of capital
over the medium term horizon.

| BRINDAVAN COLLEGE
Table: 4(n)
From the table, it can be understood that Stable Managed Fund gave the return
outperformed the benchmark performance by 0.38%. Likewise, the fund yielded
less return (8.15%) than benchmark return (8.61%) in 3 years period. In 2 years
period, the actual return of the fund was less than benchmark return by 0.67%.
(%)
5 years 07.58 07.20
3 years 08.15 08.61
2 years 07.94 08.61
1 year 07.23 08.48
3 months 01.83 02.12

| BRINDAVAN COLLEGE
8. Bond Opportunities Fund
Asset Class: Fixed Income
Date of Inception: 04 Aug 2008
Table: 4(o)
PORTFOLIO %
Total 100

| BRINDAVAN COLLEGE
Graphical Representation: 4(h)
INTERPRETATION:
The table and the figure show that Bond Opportunities Fund invests in three
types of investment avenues. They are Government Securities, Debentures and
Bonds and deposits, money market securities and other assets.
The fund has 56% of its investment in government securities which includes 8.83%
GOI Mat 12-Dec-2041, 8.28% GOI Mat 21-Sep-2027, 8.33% GOI Mat 07-Jun -
2036, 8.33% GOI Mat 09-Jul-2026, 9.20% GOI Mat 30-Sep-2030, 8.20% GOI Mat
15-Feb-2022, 8.32% GOI Mat 02-Aug-2032, 10.71% GOI Mat 19-Apr-2016,
56%30%
14%
Debentures/Bonds

| BRINDAVAN COLLEGE
7.59% GOI Mat 12-Apr-2016, 8.97% GOI Mat 05-Dec-2030, 8.28% GOI Mat 15-
Feb-2032 and others.
30% of the portfolio is occupied by the debentures and bonds of public limited
companies which are LIC Housing Finance Limited, Steel Authority of India Ltd,
ICICI Securities Primary Dealership Limited, L&T Shipbuilding Ltd, Indian
Railway Finance Corporation, Rural Electrification Corporation Ltd, Tata Capital
Financial Services Ltd, State Bank Of Patiala, Tata Sons Ltd and others.
money market instruments and bank deposits. Bond Opportunities Fund aims to
provide reasonable returns through investments in high credit quality debt
instruments while maintaining an optimal level of interest rate risk.

| BRINDAVAN COLLEGE
Table: 4(p)
From the table, it can be understood that Bond Opportunities Fund gave the
return slightly less than the benchmark return in its inception. In the period of 5
years, the fund underperformed the benchmark performance by 1.32%. Likewise,
the fund yielded less return (5.41%) than benchmark return (6.85%) in 3 years
period. In 2 years period, the actual return of the fund was less than benchmark
return by 1.41%. Similarly, the fund’s rate of return was 1.53% as compared to
benchmark return of 3.33% in 1 year period. In the period of 3 months, the fund
gave return at the rate of 1.25% against the benchmark return of 1.59%.
(%)
5 years 04.63 05.95
3 years 05.41 06.85
2 years 04.73 06.14
1 year 01.53 03.33
3 months 01.25 01.59

| BRINDAVAN COLLEGE
9. Large Cap Niche Life Fund
Asset Class: Large Cap Equity
Table: 4(q)
PORTFOLIO %
Large Cap Equity 98.17
Total 100

| BRINDAVAN COLLEGE
Graphical Representation: 4(i)
INTERPRETATION:
The table and the figure show that Large Cap Niche Life Fund invests in two
types of investment avenues. The fund’s investment portfolio consists of Large
Cap Equities and Deposits, Money Market Securities and other Assets.
The fund mainly holds equities of large cap companies. 98% of its portfolio
consists of equities of Infosys Ltd, ITC Ltd, ICICI Bank Ltd, Reliance Industries
Ltd, HDFC Bank Ltd, Tata Consultancy Services Ltd, Larsen & Toubro Limited,
Tata Motors Limited, Sun Pharmaceuticals Industries Ltd, Dr Reddys Laboratories
Limited, Bharti Airtel Ltd, Oil & Natural Gas Corporation Ltd, IndusInd Bank Ltd,
98%
2%
Large Cap Equity Deposits, Money Market Securities and other Assets.

| BRINDAVAN COLLEGE
Mahindra & Mahindra Ltd, Maruti Suzuki India Ltd, Sesa Sterlite Ltd, Wipro Ltd,
Bharat Petroleum Corporation Ltd, Divis Laboratories Ltd, AXIS Bank Limited,
Lupin Limited, Cipla Limited, State Bank of India, Kotak Mahindra Bank Limited,
Power Grid Corporation of India Ltd, Nestle India Limited, Grasim Industries Ltd,
Cairn India Limited, Shree Cement Limited, UltraTech Cement Ltd, Hindustan
Zinc Ltd, Bajaj Auto Ltd and others.
money market instruments and bank deposits. Large Cap Niche Life Fund aims to
generate long term capital appreciation from a diversified portfolio of pre-
dominantly in large cap equity and equity related securities.

| BRINDAVAN COLLEGE
Table: 4(r)
The benchmark returns rate is as per NIFTY Index. From the table, it can be
understood that Large Cap Niche Life Fund gave the return more than the
benchmark return in its inception. In the period of 5 years, the fund outperformed
the benchmark performance by 0.70%. Likewise, the fund yielded less return
(%)
5 years 18.53 17.83
3 years 03.91 05.58
2 years 06.12 07.96
1 year 07.85 10.26
3 months 01.64 01.63

| BRINDAVAN COLLEGE
10. Mid Cap Niche Life Fund
Asset Class: Mid Cap Equity
Table: 4(s)
PORTFOLIO %
Mid Cap Equity 96.89
Total 100

| BRINDAVAN COLLEGE
Graphical Representation: 4(j)
INTERPRETATION:
The table and the figure show that Mid Cap Niche Life Fund invests in two types
of investment avenues. The fund’s investment portfolio consists of Mid Cap
Equities and Deposits, Money Market Securities and other Assets.
Mid Cap Equities account for 97% of the portfolio of the fund which includes
equities of Bajaj Holdings & Investment Limited, Federal Ban, IPCA Laboratories
Ltd, Thermax Ltd, Eicher Motors Ltd, Apollo Tyres Ltd, Balkrishna Industries Ltd,
UPL Limited, Tata Global Beverages Ltd, Bajaj Finance Ltd, Hexaware
Technologies Ltd, Godrej Industries Ltd, Bata India Ltd, P & G Hygine & Health
97%
3%
Mid Cap Equity Deposits, Money Market Securities and other Assets.

| BRINDAVAN COLLEGE
Care Ltd, Sanofi India Ltd, Britannia Industries Ltd, ING Vysya Bank Ltd,
Hindustan Petroleum Corporation Ltd, Tata Chemicals Ltd, Gujarat State Petronet
Ltd, MindTree Limited, Bajaj Corp Ltd, Coromandel International Ltd, Sobha
Developers Ltd, SKF India Ltd, Emami Ltd, Blue Dart Express Ltd, Gujarat
Mineral Developmnet Corporation Ltd, Trent Ltd, Voltas Ltd, IL&FS
Transportation Networks Ltd, Oriental Bank of Commerce, EID Parry India Ltd,
MRF Ltd, Petronet LNG Ltd, Indraprastha Gas Ltd, Gujarat Gas Company
Limited, Bajaj Electricals Limited, Great Eastern Shipping Company Ltd, Supreme
Industries Ltd, Torrent Power Ltd, Honeywell Automation India Ltd and others.
money market instruments and bank deposits. Mid Cap Niche Fund aims to
generate long term capital appreciation from a diversified portfolio of pre-
dominantly in mid cap equity and equity related securities.

| BRINDAVAN COLLEGE
Table: 4(t)
The benchmark returns rate is as per BSE Mid Cap Index. From the table, it can be
understood that Mid Cap Niche Life Fund gave the return more than the
benchmark return in its inception. In the period of 5 years, the fund outperformed
the benchmark performance by 3.16%. Likewise, the fund yielded more return
actual return of the fund was negative as against benchmark return of 0.89%.
(%)
Inception 10.62% 02.25%
5 years 21.86% 18.70%
3 years 02.96 00.66
2 years -01.23 00.89
1 year 01.56 03.14
3 months 03.59 02.76

| BRINDAVAN COLLEGE
11. Money Plus Fund
Asset Class: Short Term Bond
Table: 4(u)
PORTFOLIO %
Total 100

| BRINDAVAN COLLEGE
Graphical Representation: 4(k)
INTERPRETATION:
The table and the figure show that Money Plus Fund invests in three types of
investment avenues. They are Government Securities, Debentures and Bonds and
deposits, money market securities and other assets.
93.80%
0.48%
5.72%
Debentures/Bonds

| BRINDAVAN COLLEGE
The fund makes 93.8% of its investment on government securities which includes
7.59% Oil Bond Mat 23-Mar-2015, 7.59% GOI Mat 12-Apr-2016, 7.17% GOI Mat
14-Jun-2015 and10.71% GOI Mat 19-Apr-2016.
0.48% of the portfolio occupies corporate bond of L&T Finance Ltd.
For the contingent purpose, the fund has 5.72% investment in high quality short-
term money market instruments and bank deposits. The fund aims to generate
optimal returns from investments biased to the highest credit quality at the short
end of the yield curve, such that interest rate risks and credit risks are low.
Table: 4(v)
(%)
5 years 05.02 07.10
3 years 05.73 08.62
2 years 05.83 08.75
1 year 05.13 09.16
3 months 01.45 02.17

| BRINDAVAN COLLEGE
INFERENCE:
The benchmark returns rate is as per CRISIL Liquid Fund Index. From the table, it
can be understood that Money Plus Fund gave the return less than the benchmark
return in its inception. In the period of 5 years, the fund underperformed the
benchmark performance by 2.08%. Likewise, the fund yielded less return (5.73%)
than benchmark return (8.62%) in 3 years period. In 2 years period, the actual
return of the fund was less than benchmark return by 2.92%. Similarly, the fund’s
rate of return was 5.13% as compared to benchmark return of 9.16% in 1 year
period. In the period of 3 months, the fund gave return at the rate of 1.45% against
the benchmark return of 2.17%.

| BRINDAVAN COLLEGE
12. Managers Fund
Fund Type: Fund of Funds
Asset Class: Mixed Allocation
Table: 4(w)
PORTFOLIO %
Equity 59.98
Total 100

| BRINDAVAN COLLEGE
Graphical Representation: 4(l)
INTERPRETATION:
The table and the figure show that Managers Fund invests in four types of
investment avenues. They are Equities, Debentures/Bonds, Government Securities,
and deposits, money market securities and other assets.
The fund’s investment portfolio includes 60% on equities such as Infosys Ltd, ITC
Ltd, ICICI Bank Ltd, HDFC Bank Ltd, Reliance Industries Ltd, Larsen & Toubro
Limited, P & G Hygine & Health Care Ltd, Tata Consultancy Services Ltd, Sanofi
60%
21%
14%
5%
Equity
Debentures/Bonds

| BRINDAVAN COLLEGE
India Ltd, Bajaj Holdings & Investment Limited, Godrej Industries Ltd, Blue Dart
Express Ltd, Tata Motors Limited and others.
LIC Housing Finance Limited, Power Finance Corporation Limited, Housing
Development Finance Corporation Ltd, ICICI Securities Primary Dealership
Limited and others.
8.28% GOI Mat 21-Sep-2027, 8.20% GOI Mat 24-Sep-2025, 8.28% GOI Mat 15-
Feb-2032, 8.32% GOI Mat 02-Aug-2032, 1.44 Inflation Index Bond Mat 05-Jun-
2023 and others.
money market instruments and bank deposits. The Manager's Fund dynamically
manages the asset allocation between equity and fixed income instruments to
deliver higher returns through the equity exposure, combined with the stability of
the fixed income exposure. The fund returns are likely to be volatile due to the
market movements.
The data for this purpose is not available.

| BRINDAVAN COLLEGE
5.1 SUMMARY
This study is mainly done to know the asset allocation of ULIPs’ funds with
regards to HDFC Life. In the study, the investment portfolio of different ULIPs’
funds has been described and detailed. For a life insurance companies offering
ULIPs, its funds’ investment portfolio and funds’ performance plays very
important role. With the information pertaining to fund where ULIPs invest, the
customers both existing as well as potential can simply identify the funds where
they can put the investing portion of their premium. As we know, ULIPs are
becoming a growing and common avenue for investment, it is very important to
understand the funds’ asset allocation and their performance to avoid risks and to
achieve financial goals.
The project was carried out with the purpose to study and understand the funds’
portfolio and performance of HDFC Life. It was prepared by visiting the branch of
the company in Bangalore and interacting with different personnel like Branch
Manager, Financial Consultants and HR executives as well as with my college
guide. The study gives a bird’s eye view on the asset allocation and the
performance against the benchmark performance of the funds.
Graphical and tabular representation has been used to analyse and interpret the
investment portfolio of the funds. The performance of the fund over various
periods has been compared against the benchmark performance. The description is

| BRINDAVAN COLLEGE
made available regarding the equities, debentures/bonds, government securities
and money market instruments depending upon the type of the funds.
5.2 FINDINGS
1. In case of Liquid Fund, the total asset under management is 10,853.80 Lakhs,
of which entire investment is injected in deposits, money market securities and
other short term instruments which is cash or cash equivalents which maturity is
less than a year and they are rated as AAA which means they are prime and highly
rated debt. Regarding the performance, this fund is stable with the benchmark
performance in all time period.
2. In case of Secured Managed Fund, the total asset under management is
20,134.60 Lakhs, which mainly invests in corporate debentures and bonds and
partly in government securities and money market instruments; 54.62% of the debt
is rated as AAA, 4.31% of the debt is rated as AA+ and 41.07% of the debt is rated
as Sovereign which means some asset holding are prime grade (AAA), some are
high grade (AA+) and government securities are rated as “sovereign”. Regarding
the performance, this fund has yielded return more than the benchmark return in
every time period.
3. In case of Defensive Managed Fund, the total asset under management is
12,674.72 Lakhs, which mainly invests in corporate debentures and bonds and

| BRINDAVAN COLLEGE
partly in equities, government securities and money market instruments; 52.01% of
the debt is rated as AAA, 3.83% of the debt is rated as AA+ and 44.17% of the
debt is rated as Sovereign which means some asset holding are prime grade
(AAA), some are high grade (AA+) and government securities are rated as
“sovereign”. Regarding the performance, the fund yielded more rate of return than
the benchmark in its inception, 5 years and 3 years period and less rate of return in
2 years and 1 year period.
4. In case of Balanced Managed Fund, the total asset under management is
53,905.16 Lakhs, which mainly invests in equities and partly in debentures/bonds,
government securities and money market instruments; 54.59% of the debt is rated
as AAA, 4.20% of the debt is rated as AA+ and 41.21% of the debt is rated as
Sovereign which means some asset holding are prime grade (AAA), some are high
grade (AA+) and government securities are rated as “sovereign”. Regarding the
performance, the fund had higher returns than the benchmark returns in its
inception, 5 years and 3 years period and lower returns in 2 years, 1 year and
3months period.
5. In case of Growth Fund, the total asset under management is 308,150.21
Lakhs, which mainly invests in equities and equities related securities. Regarding
the performance, the fund gave higher returns than the benchmark returns in its

| BRINDAVAN COLLEGE
inception and 5 years period; it underperformed in 3 years, 2 years and 1 year
period and gave stable return in 3 months period.
6. In case of Equity Managed Fund, the total asset under management is
78,704.87 Lakhs, which mainly invests in equities and equities related securities
and partly in debentures/bonds, government securities and money market
instruments; 18.82% of the debt is rated as AAA and 81.18% of the debt is rated as
Sovereign which means some asset holding are prime grade (AAA) and
government securities are rated as “sovereign”. Regarding the performance, the
fund gave returns higher than the benchmark returns in its inception and 5 years
period. It under performed in 3 years, 2 years and 1 year period. In 3 months
period, the fund yielded higher return than the benchmark.
7. In case of Stable Managed Fund, the total asset under management is 6,030.53
Lakhs, which mainly invests in short term and mid -term corporate debentures and
bonds and partly in government securities and money market instruments; 66.07%
of the debt is rated as AAA, 24.57% of the debt is rated as AA+ and 9.36% of the
debt is rated as Sovereign which means some asset holding are prime grade
(AAA), some are high grade (AA+) and government securities are rated as
“sovereign”. Regarding the performance, the fund’s returns are almost stable to the
benchmark returns in all periods.

A study on Investment Portfolio towards ULIPs of HDFC Life

A study on Investment Portfolio towards ULIPs of HDFC Life

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