Comparative-Analysis-Insurance-vs-Mutual-Fund-in-India.pptx

free

1. Comparative Analysis: Insurance vs Mutual Fund in India Priyanshu Thakur 2251 M.B.A SEM: -3

2. BACKGROUND OF THE COMPANY Stock Holding Corporation of India Limited (SHCIL) is an Indian custodian and depository participant, based in Navi Mumbai, Maharashtra. Stock Holding Company of India Ltd. SHCIL) is a leading player in the Indian financial sector. Established in 1986, SHCIL provides a wide range of financial services including custodial services, depository participant services. Future Vision SHCIL aims to continue its growth and expanding its service offerings. financial solutions provider.

3. Insurance: Protecting Your Future Insurance Insurance is a contract between an individual and an insurance company. The individual pays a premium to the company in exchange for coverage against specific financial risks. Insurance provides peace of mind by protecting against sudden and unexpected events that could be costly. Purpose and Benefits of Insurance Risk coverage: Insurance protects against financial loss due to events like accidents,. Flexibility: Insurance policies can be customized to fit individual needs and budgets. Tax benefits: Some types of insurance offer tax advantages, such as deductions or tax-free growth.

4. Types of Insurance 1 . Life Insurance Life insurance offers financial protection to beneficiaries upon the insured's death. It helps provide for loved ones, pay off debts, or cover funeral expenses. 2. Auto Insurance Auto insurance protects against financial loss in case of vehicle damage or accidents. It covers repairs or replacement of vehicles, medical expenses, and liability for damage caused to others. 3 .Home Insurance Home insurance safeguards your home and belongings from risks like fire, theft, natural disasters, or accidents. It provides coverage for repairs, replacement, or rebuilding costs, as well as liability protection. 4 . Health Insurance Health insurance provides coverage for medical expenses and helps protect against the financial burden of unexpected health issues, such as hospitalization, surgeries, or prescription medications.

5. Mutual Funds Mutual Fund Mutual funds are an effective investment option that allows individuals to pool their money for diversified investments in different assets. By investing in mutual funds, individuals can access a wide range of investment opportunities that may not be available to them individually. Purpose and Benefits of Mutual Funds Investment growth potential: Mutual funds provide the opportunity for long-term investment Growth, as they invest in a diversified portfolio of assets. Risk coverage: By investing in a variety of assets, mutual funds help to spread the risk and reduce the impact of individual asset performance on overall returns. Flexibility: Investors can choose from a wide range of mutual fund options based on their investment goals, risk tolerance. Cost efficiency: Mutual funds benefit from economies of scale, allowing investors to access professional investment management at a relatively low cost.

6. Types of Mutual Funds Equity funds :- Equity funds invest in stocks of companies. They aim for long-term growth by focusing on capital appreciation. These funds are suitable for investors with a higher risk tolerance looking for higher returns. Bond funds : - Bond funds invest in fixed-income securities such as government and corporate bonds. They aim for regular income and have lower risk compared to equity funds. These funds are suitable for investors looking for stable income. Money market funds :- Money market funds invest in short-term, low-risk securities such as treasury bills and commercial paper. They aim for capital preservation and provide liquidity. These funds are suitable for investors looking for stability and easy access to their funds Balanced funds : - Balanced funds also known as hybrid funds, invest in a mix of stocks and bonds. They aim for both growth and income, providing a balanced approach to investing. These funds are suitable for investors seeking a combination of capital appreciation and regular income.

7. Comparing Insurance and Mutual Funds in India Insurance Mutual Funds Investment type Protection and savings Investment and savings Risk level Low to medium Medium to high Rate of return 4% to 6% 10% to 12% Companies and Investment Rates Compare leading insurance companies and mutual fund providers in India. Explore their investment rates and options. Risk Coverage Analyze the differences between insurance and mutual funds in terms of risk coverage. Understand how they protect investors against potential losses. Returns on Investment Examine the potential returns on investment offered by insurance policies and mutual funds. Learn about the factors that influence these returns.

8. OBJECTIVES OF THE STUDY Understand the benefits of Mutual Funds Explore the advantages of Insurance. Compare Mutual Funds and Insurance Make informed financial decisions. METHODOLOGY (Data Collection) PRIMARY DATA & SECONDARY DATA We collected data from 100 people through a fun questionnaire on Google Forms. When conducting research, there are two types of data that can be gathered: primary data and secondary data. In this card, we will focus on Secondary data provides valuable insights without the need for data collection. It includes sources like books, articles, and websites. By analyzing this secondary data, we were able to gain a deeper understanding of the insurance and mutual fund industry in India. It provided us with valuable insights and helped us make informed financial decisions.

9. Conclusion: Understanding Mutual Funds and Insurance in India Comparing Insurance and Mutual Funds: Both insurance and mutual funds serve different purposes. Insurance focuses on risk management and protection, while mutual funds focus on wealth creation through investments. Depending on your financial goals and risk appetite, you can choose the option that aligns with your needs.