Vip Call Girls Hauz Khas ➡️ Delhi ➡️ 9999965857 No Advance 24HRS Live
Project report
1. CHAPTER – I
1.1INTRODUCTION
Starting out as an industry with a single player, the UTI, in 1963, the mutual fund
industry in India has come a long way since then. Today, close to 30 players,
offering over 460 schemes, dot the industry landscape.
A mutual fund is vehicle pool money from investors, with a promise that
professional managers who are expected to honour the promise would invest the
money in a particular manner.
In four decades of its existence in India, the mutual fund industry has gone
through several structural changes. From the days of UTI’s monopoly to 1987,
when the industry was opened first to other public sector enterprises, and then to
private sector players in 1993, It has come a long way. The entry of private player
has galvanized the sector as on product innovation, market penetration, identifying
new channels of distribution, and last but not the least, improving investor service.
Further, the emergence of India as a major investment destination has done a
world of good to the mutual fund industry in the country as it is witnessing entry
of many big names in the global players like Morgan Stanley, Principal, Sun life,
and Fidelity, while Vanguard is mulling over its India debut, augurs well for the
industry as not only these global investment management firms bring with them
the expertise gained internationally but also bring the best international practices
in terms of performances and investor services which will benefit the industry and
will go a long way in helping it catch up with its counter parts in developed
markets like US and the UK.
1
2. 1.2 Company Profile
About the company:
SPA Group was promoted by a team of finance professionals in 1995 with an
objective to provide value added financial services.
In January 2000, the Group expanded its operations and the range of services.
Today, SPA provides services for securities broking, merchant banking, wealth
management, financial advisory, corporate finance, risk management and
insurance broking.
1.2.1 VISION
SPA believes in attaining customer satisfaction, on continuing basis, by
providing highest standard of financial services in India.
The basic work theme at SPA is:
1. Dedicated, competent and honest team of professionals
2. Customer centric work environment
3. Insight of customers’ perspectives
4. Strong research base
5. Clear understanding of applicable laws
6. Consistency and passion to excel
1.2.2 PROMOTERS
Mr. Kamal Somani, FCA, is a senior finance professional with over 30
years of experience in investment banking, securities broking and corporate
finance.
Mr. Sandeep Parwal, B.Com (Hons), FCA, has over 20 years of experience
in various aspects of financial services.
2
3. 1.2.3 INDUSTRY PROFILE
The flagship company of the group provides investment advisory services.
The company has mobilized more than Rs.7 trillion for various Mutual
Funds during the last 7 years and is currently having Asset under
Management of over Rs.50 billion with satisfied customers.
It provides advisory services for alternate investment options like portfolio
management services in equity, debt and commodities
Equity broking is empanelled with all the major domestic institutional
players and has achieved a turnover of over Rs. 1,600 crores.
The company is catering to existing customers of the group by providing
research based commodity broking services.
1.2.4 GROUP OF COMPANIES
SPA Securities ltd
SPA Merchant Bankers ltd
SPA Insurance Broking Services ltd
SPA Com Trade ltd
3
4. 1.2.5 SERVICES
Investment
• Mutual fund
• Fixed deposits
• Capital gains & Other Bonds
Brokering Services
• Equity Broking(NSE & BSE)
• Depositary Service(CDSL)
• Currency derivative
Insurance
• Life Insurance
• General Insurance
Loan & Mortgages
• Housing Loan
• Personal Loan
Taxation
o Income tax planning & Advisory
o Income tax Filing & Assessment
o Services for PAN
4
5. 1.3 Objective of the Study:
1) To exploring the investor’s preference towards the Mutual Fund and ULIP.
2) To evaluate the risk and return in Mutual Fund and ULIP.
3) To gain the in depth knowledge about the Indian Mutual Fund and ULIP
Industry.
4) To identify the investor’s confidence in Mutual Fund and ULIP.
5) To offer few suggestions based on the findings of the study.
5
6. CHAPTER – II
2.1 REVIEW OF LITERATURE
2.1 MUTUAL FUND AN OVERVIEW
A Mutual fund is a trust that pools the savings of a number of investors who
share a common financial goal. It is essentially a diversified portfolio of financial
instruments - these could be equities, debentures / bonds or money market
instruments. The corpus of the fund is then deployed in investment alternatives
that help to meet predefined investment objectives. The income earned through
these investments and the capital appreciation realised are shared by its unit
holders in proportion to the number of units owned by them. Thus a Mutual fund
is a suitable investment for the common man as it offers an opportunity to invest
in a diversified, professionally managed basket of securities at a relatively low
cost.
6
7. ORGANISATION OF A MUTUAL FUND
There are many entities involved and the diagram below illustrates the
organisational set up of a mutual fund:
You could make money from a Mutual fund in three ways:
1) Income is earned from dividends declared by Mutual fund schemes from time to
time.
2) If the fund sells securities that have increased in price, the fund has a capital
gain. This is reflected in the price of each unit. When investors sell these units at
prices higher than their purchase price, they stand to make a gain.
3) If fund holdings increase in price but are not sold by the fund manager, the
fund's unit price increases. You can then sell your Mutual fund units for a profit.
This is tantamount to a valuation gain.
7
8. TYPES OF MUTUAL FUNDS
Mutual fund schemes may be classified on the basis of their structure and their
investment objective:
Types of Mutual Fund
Other Equity
By Structure By Investment Objective
Related Schemes
Open Close Growth Income Balanced Money Index
Ended Ended Funds Funds Funds Market Schemes
Funds Funds Funds
Tax
Saving Sectoral
Schemes Schemes
By Structure
Open-ended Funds
An open-ended fund or scheme is one that is available for subscription and
repurchase on a continuous basis. These schemes do not have a fixed maturity
period. Investors can conveniently buy and sell units at Net Asset Value (NAV)
related prices, which are declared on a daily basis. The key feature of open-end
schemes is liquidity.
Close-ended Funds
A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The
fund is open for subscription only during a specified period at the time of launch
8
9. of the scheme. Investors can invest in the scheme at the time of the initial public
issue and thereafter they can buy or sell the units of the scheme on the stock
exchanges where the units are listed. In order to provide an exit route to the
investors, some close-ended funds give an option of selling back the units to the
Mutual fund through periodic repurchase at NAV related prices. SEBI Regulations
stipulate that at least one of the two exit routes is provided to the investor i.e.
either repurchase facility or through listing on stock exchanges. These mutual
funds schemes disclose NAV generally on weekly basis.
By Investment Objective
Growth Funds
The aim of growth funds is to provide capital appreciation over the medium to
long- term. Such schemes normally invest a major part of their corpus in equities.
Such funds have comparatively high risks. These schemes provide different
options to the investors like dividend option, capital appreciation, etc. and the
investors may choose an option depending on their preferences. The investors
must indicate the option in the application form. The mutual funds also allow the
investors to change the options at a later date. Growth schemes are good for
investors having a long-term outlook seeking appreciation over a period of time.
Income / Debt Oriented Scheme
The aim of income funds is to provide regular and steady income to investors.
Such schemes generally invest in fixed income securities such as bonds, corporate
debentures, Government securities and money market instruments. Such funds are
less risky compared to equity schemes. These funds are not affected because of
fluctuations in equity markets. However, opportunities of capital appreciation are
also limited in such funds. The NAVs of such funds are affected because of
change in interest rates in the country. If the interest rates fall, NAVs of such
funds are likely to increase in the short run and vice versa. However, long-term
investors may not bother about these fluctuations.
Balanced Funds
The aim of Balanced Funds is to provide both growth and regular income. Such
schemes periodically distribute a part of their earning and invest both in equities
and fixed income securities in the proportion indicated in their offer documents.
This proportion affects the risks and the returns associated with the balanced fund
9
10. - in case equities are allocated a higher proportion, investors would be exposed to
risks similar to that of the equity market.
Balanced funds with equal allocation to equities and fixed income securities are
ideal for investors looking for a combination of income and moderate growth.
Money Market Funds
The aim of Money Market Funds is to provide easy liquidity, preservation of
capital and moderate income. These schemes generally invest in safer short-term
instruments such as Treasury Bills, Certificates of Deposit, Commercial Paper and
Inter-Bank Call Money. Returns on these schemes may fluctuate depending upon
the interest rates prevailing in the market.
These are ideal for corporate and individual investors as a means to park their
surplus funds for short periods.
Gilt Fund
These funds invest exclusively in government securities. Government securities
have no default risk. NAVs of these schemes also fluctuate due to change in
interest rates and other economic factors as are the case with income or debt
oriented schemes.
Other Equity Related Schemes
Tax Saving Schemes
These schemes offer tax rebates to the investors under specific provisions of the
Indian Income Tax laws, as the Government offers tax incentives for investment in
specified avenues.
Investments made in Equity Linked Savings Schemes (ELSS) and Pension
Schemes are allowed as deduction under Section 88 of the Indian Income Tax
Act, 1961.
10
11. Index Schemes
Index Funds attempt to replicate the performance of a particular index such as the
BSE Sensex or the NSE S&P CNX 50.
Sectoral Schemes
Sectoral Funds are those, which invest, exclusively in specified sector(s) such as
FMCG, Information Technology, Pharmaceuticals, etc. These schemes carry
higher risk as compared to general equity schemes as the portfolio is less
diversified, i.e. restricted to specific sector(s) / industry (ies).
Sector specific funds / schemes
These are the funds/schemes, which invest in the securities of only those sectors or
industries as specified in the offer documents. E.g. Pharmaceuticals, Software,
Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in
these funds are dependent on the performance of the respective sectors/industries.
While these funds may give higher returns, they are more risky compared to
diversified funds. Investors need to keep a watch on the performance of those
sectors/industries and must exit at an appropriate time. They may also seek advice
of an expert.
Load or no-load Fund
A Load Fund is one that charges a percentage of NAV for entry or exit. That is,
each time one buys or sells units in the fund, a charge will be payable. This charge
is used by the Mutual fund for marketing and distribution expenses. Suppose the
NAV per unit is Rs.10. If the entry as well as exit load charged is 1%, then the
investors who buy would be required to pay Rs.10.10 and those who offer their
units for repurchase to the Mutual fund will get only Rs.9.90 per unit. The
investors should take the loads into consideration while making investment as
these affect their yields/returns. However, the investors should also consider the
performance track record and service standards of the mutual fund, which are
more important. Efficient funds may give higher returns in spite of loads.
A no-load fund is one that does not charge for entry or exit. It means the investors
can enter the fund/scheme at NAV and no additional charges are payable on
purchase or sale of units.
11
12. Assured return scheme
Assured return schemes are those schemes that assure a specific return to the unit
holders irrespective of performance of the scheme.
A scheme cannot promise returns unless such returns are fully guaranteed by the
sponsor or AMC and this is required to be disclosed in the offer document.
Investors should carefully read the offer document whether return is assured for
the entire period of the scheme or only for a certain period. Some schemes assure
returns one year at a time and they review and change it at the beginning of the
next year.
DIFFERENT PLANS IN MUTUAL FUNDS
To cater to different investment needs, Mutual Funds offer various investment
options. Some of the important investment options include:
Growth Option
Dividend is not paid-out under a Growth Option and the investor realizes only the
capital appreciation on the investment (by an increase in NAV).
Dividend Payout Option
Dividends are paid-out to investors under the Dividend Payout Option. However,
the NAV of the Mutual fund scheme falls to the extent of the dividend payout.
Dividend Re-investment Option
Here the dividend accrued on mutual funds is automatically re-invested in
purchasing additional units in open-ended funds. In most cases mutual funds offer
the investor an option of collecting dividends or re-investing the same.
Retirement Pension Option
12
13. Some schemes are linked with retirement pension. Individuals participate in these
options for themselves, and corporate participate for their employees.
Insurance Option
Certain Mutual Funds offer schemes that provide insurance cover to investors as
an added benefit.
Systematic Investment Plan (SIP)
Here the investor is given the option of preparing a pre-determined number of
post-dated cheques in favour of the fund. The investor is allotted units on a
predetermined date specified in the offer document at the applicable NAV.
Systematic Encashment Plan (SEP)
As opposed to the Systematic Investment Plan, the Systematic Encashment Plan
allows the investor the facility to withdraw a pre-determined amount / units from
his fund at a pre-determined interval. The investor's units will be redeemed at the
applicable NAV as on that day.
EXPENSES AND TERM'S
Mutual funds bear expenses similar to other companies. The fee structure of
a Mutual fund can be divided into two or three main components: management
fee, non-management expense, and 12b-1/non-12b-1 fees. All expenses are
expressed as a percentage of the average daily net assets of the fund.
Management Fees
The management fee for the fund is usually synonymous with the contractual
investment advisory fee charged for the management of a fund's investments.
However, as many fund companies include administrative fees in the advisory fee
component, when attempting to compare the total management expenses of
different funds, it is helpful to define management fee as equal to the contractual
advisory fee + the contractual administrator fee. This "levels the playing field"
when comparing management fee components across multiple funds.
13
14. Contractual advisory fees may be structured as "flat-rate" fees, i.e., a single fee
charged to the fund, regardless of the asset size of the fund. However, many funds
have contractual fees, which include breakpoints, so that as the value of a fund's
assets increases, the advisory fee paid decreases. Another way in which the
advisory fees remain competitive is by structuring the fee so that it is based on the
value of all of the assets of a group or a complex of funds rather than those of a
single fund.
Non-management Expenses
Apart from the management fee, there are certain non-management expenses,
which most funds must pay. Some of the more significant (in terms of amount)
non-management expenses are: transfer agent expenses (this is usually the person
you get on the other end of the phone line when you want to purchase/sell shares
of a fund), custodian expense (the fund's assets are kept in custody by a bank
which charges a custody fee), legal/audit expense, fund accounting expense,
registration expense (the SEC charges a registration fee when funds file
registration statements with it), board of directors/trustees expense (the
disinterested members of the board who oversee the fund are usually paid a fee for
their time spent at board meetings), and printing and postage expense (incurred
when printing and delivering shareholder reports)
Fees and Expenses Borne by the Investor (not the Fund)
Fees and expenses borne by the investor vary based on the arrangement made with
the investor's broker. Sales loads (or contingent deferred sales loads (CDSL)) are
not included in the fund's total expense ratio (TER) because they do not pass
through the statement of operations for the fund. Additionally, funds may charge
early redemption fees to discourage investors from swapping money into and out
of the fund quickly, which may force the fund to make bad trades to obtain the
necessary liquidity. For example, Fidelity Diversified International Fund (FDIVX)
charges a 1 percent fee on money removed from the fund in less than 30 days.
Brokerage Commissions
An additional expense, which does not pass through the statement of operations
and cannot be controlled by the investor, is brokerage commissions. Brokerage
commissions are incorporated into the price of the fund and are reported usually 3
months after the fund's annual report in the statement of additional information.
Brokerage commissions are directly related to portfolio turnover (portfolio
14
15. turnover refers to the number of times the fund's assets are bought and sold over
the course of a year). Usually the higher the rate of the portfolio turnover, the
higher the brokerage commissions. The advisors of Mutual fund companies are
required to achieve "best execution" through brokerage arrangements so that the
commissions charged to the fund will not be excessive.
TYPES OF RISK
Risk is an inherent aspect of every form of investment. For Mutual fund
investments, risks would include variability, or period-by-period fluctuations in
total return. The value of the scheme's investments may be affected by factors
affecting capital markets such as price and volume volatility in the stock markets,
interest rates, currency exchange rates, foreign investment, changes in government
policy, political, economic or other developments.
Market Risk
At times the prices or yields of all the securities in a particular market rise or fall
due to broad outside influences. When this happens, the stock prices of both an
outstanding, highly profitable company and a fledgling corporation may be
affected. This change in price is due to "market risk".
Inflation Risk
Sometimes referred to as "loss of purchasing power." Whenever the rate of
inflation exceeds the earnings on your investment, you run the risk that you'll
actually be able to buy less, not more.
Credit Risk
In short, how stable is the company or entity to which you lend your money when
you invest? How certain are you that it will be able to pay the interest you are
promised, or repay your principal when the investment matures?
Interest Rate Risk
15
16. Changing interest rates affect both equities and bonds in many ways. Movements
in the interest rates influence Bond prices in the financial system. Generally, when
interest rates rise, prices of the securities fall and when interest rates drop, the
prices increase. Interest rate movements in the Indian debt markets can be volatile
leading to the possibility of large price movements up or down in debt and money
market securities and thereby to possibly large movements in the NAV.
Investment Risks
In the sectoral fund schemes, investments will be predominantly in equities of
select companies in the particular sectors. Accordingly, the NAV of the schemes
are linked to the equity performance of such companies and may be more volatile
than a more diversified portfolio of equities.
Liquidity Risk
Thinly traded securities carry the danger of not being easily saleable at or near their real
values. The fund manager may therefore be unable to quickly sell an illiquid bond and
this might affect the price of the fund unfavorably. Liquidity risk is characteristic of the
Indian fixed income market.
16
17. BENEFITS OF INVESTING IN MUTUAL FUND
1. Access to professional money managers
Experienced fund managers using advanced quantitative and mathematical
techniques manage your money.
2. Diversification
Mutual funds aim to reduce the volatility of returns through diversification by
investing in a number of companies across a broad section of industries and
sectors. It prevents an investor from putting "all eggs in one basket". This
inherently minimizes risk. Thus with a small investible surplus an investor can
achieve diversification which would have otherwise not been possible.
3. Liquidity
Open-ended mutual funds are priced daily and are always willing to buy back
units from investors. This mean that investors can sell their holdings in Mutual
fund investments anytime without worrying about finding a buyer at the right
price. In the case of other investment avenues such as stocks and bonds, buyers are
not necessarily available and therefore these investment avenues are less liquid
compared to open-ended schemes of mutual funds.
4.Tax Efficiency
(i) Equity Funds
Currently, dividends are tax-free in the hands of the investor. There is no
distribution tax payable by the Mutual fund on dividends distributed. There is no
tax deduction at source on dividends as well. Investments for over 12 months
qualify for long-term capital gains. Moreover for resident investors there is no
TDS on redemption of the units. The recently introduced Securities Transaction
Tax is applicable to equity fund investments.
17
18. (ii) Debt Funds
Currently, dividends are tax-free in the hands of the investor. However, there is
distribution tax together with surcharge and education cess, as may be applicable,
payable by the Mutual fund on dividends distributed. There is no tax deduction at
source on dividends as well. Investments for over 12 months qualify for long-term
capital gains. For resident investors there is no TDS on redemption of the units.
Low transaction costs - Since mutual funds are a pool of money of many
investors, the amount of investment made in securities is large. This therefore
results in paying lower brokerage due to economies of scale.
Transparency - Prices of open-ended mutual funds are declared daily. Regular
updates on the value of your investment are available. The portfolio is also
disclosed regularly with the fund manager's investment strategy and outlook.
Well-regulated industry - All the mutual funds are registered with SEBI and they
function under strict regulations designed to protect the interests of investors.
Convenience of small investments - Under normal circumstances, an individual
investor would not be able to diversify his investments (and thus minimize risk)
across a wide array of securities due to the small size of his investments and
inherently higher transaction costs. A Mutual fund on the other hand allows even
individual investors to hold a diversified array of securities due to the fact that it
invests in a portfolio of stocks. A Mutual fund therefore permits risk
diversification without an investor having to invest large amounts of money.
DISADVANTAGES OF MUTUAL FUND
18
19. Professional Management
Did you notice how we qualified the advantage of professional management with
the word "theoretically"? Many investors debate over whether or not the so-called
professionals are any better than you or I at picking stocks. Management is by no
means infallible, and, even if the fund loses money, the manager still takes his/her
cut. We'll talk about this in detail in a later section.
Costs
Mutual funds don't exist solely to make your life easier--all funds are in it for a
profit. The mutual fund industry is masterful at burying costs under layers of
jargon. These costs are so complicated that in this tutorial we have devoted an
entire section to the subject.
Dilution
It's possible to have too much diversification (this is explained in our article
entitled "Are You Over-Diversified?"). Because funds have small holdings in so
many different companies, high returns from a few investments often don't make
much difference on the overall return. Dilution is also the result of a successful
fund getting too big. When money pours into funds that have had strong success,
the manager often has trouble finding a good investment for all the new money.
Taxes
When making decisions about your money, fund managers don't consider your
personal tax situation. For example, when a fund manager sells a security, a
capital-gain tax is triggered, which affects how profitable the individual is from
the sale. It might have been more advantageous for the individual to defer the
capital gains liability.
FREQUENTLY USED TERMS
19
20. Net Asset Value (NAV)
Net Asset Value is the market value of the assets of the scheme minus its
liabilities. The per unit NAV is the net asset value of the scheme divided by the
number of units outstanding on the Valuation Date.
Sale Price
Is the price you pay when you invest in a scheme. Also called Offer Price. It may
include a sales load.
Repurchase Price
Is the price at which a close-ended scheme repurchases its units and it may include
a back-end load. This is also called Bid Price.
Redemption Price
Is the price at which open-ended schemes repurchase their units and close-ended
schemes redeem their units on maturity. Such prices are NAV related.
Sales Load
Is a charge collected by a scheme when it sells the units. Also called, ‘Front-end’
load. Schemes that do not charge a load are called ‘No Load’ schemes.
Repurchase or ‘Back-end’ Load
Is a charge collected by a scheme when it buys back the units from the unit
holders.
2.2 UNIT LINKED INSURANCE PLAN (ULIP’s)
20
21. Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to
mutual funds in terms of their structure and functioning. As is the case wit mutual
funds, the insurance company allots units investors in ULIPs and a net asset value
(NAV) is declared for the same on a daily basis.
Similarly ULIP investors have the option of investing across various schemes
similar to the ones found in the mutual funds domain, i.e. diversified equity funds,
balanced funds and debt funds to name a few. Generally speaking, ULIPs can be
termed as Mutual fund schemes with an insurance component.
However it should not be construed that barring the insurance element there is
nothing differentiating mutual funds from ULIPs.
Unit-linked insurance plans, ULIPs, are distinct from the more familiar ‘with
profits’ policies sold for decades by the Life Insurance Corporation.
‘With profits’ policies are called so because investment gains (profits) are
distributed to policyholders in the form of a bonus announced every year.
ULIPs also serve the same function of providing insurance protection against
death and provision of long-term savings, but they are structured differently.
In ‘with profits’ policies, the insurance company credits the premium to a common
pool called the ‘life fund,’ after setting aside funds for the risk premium on life
insurance and management expenses.
Every year, the insurer calculates how much has to be paid to settle death and
maturity claims. The surplus in the life fund left after meeting these liabilities is
credited to policyholders’ accounts in the form of a bonus.
In a ULIP too, the insurer deducts charges towards life insurance (mortality
charges), administration charges and fund management charges.
The rest of the premium is used to invest in a fund that invests money in stocks or
bonds.
The number of units represents the policyholder’s share in the fund.
21
22. The value of the unit is determined by the total value of all the investments made
by the fund divided by the number of units.
If the insurance company offers a range of funds, the insured can direct the
company to invest in the fund of his choice. Insurers usually offer three choices —
an equity (growth) fund, balanced fund and a fund, which invests in bonds.
In both ‘with profits’ policies as well as unit-linked policies, a large part of the
first year premium goes towards paying the agents’ commissions.
22
23. KEY FEATURES OF ULIPs
Insurers love ULIPs for several reasons. Most important of all, insurers can
sell these policies with less capital of their own than what would be required if
they sold traditional policies.
In traditional ‘with profits’ policies, the insurance company bears the investment
risk to the extent of the assured amount. In ULIPs, the policyholder bears most of
the investment risk.
Since ULIPs are devised to mobilise savings, they give insurance companies an
opportunity to get a large chunk of the asset management business, which has been
traditionally dominated by mutual funds.
1. Term/Tenure
The ULIP client must have the option to choose a term/tenure.
If no term is defined, then the term will be defined as '70 minus the age of the
client'. For example if the client is opting for ULIP at the age of 30 then the policy
term would be 40 years.
The ULIP must have a minimum tenure of 5 years.
2. Sum Assured
On the same lines, now there is a sum assured that clients can associate with. The
minimum sum assured is calculated as: (Term/2 * Annual Premium) or (5 *
Annual Premium) whichever is higher.
There is no clarity with regards to the maximum sum assured.The sum assured is
treated as sacred under the new guidelines; it cannot be reduced at any point
during the term of the policy except under certain conditions - like a partial
withdrawal within two years of death or all partial withdrawals after 60 years of
age. This way the client is at ease with regards to the sum assured at his disposal.
3. Premium payments
23
24. If less than first 3 years premiums are paid, the life cover will lapse and policy will
be terminated by paying the surrender value. However, if at least first 3 years
premiums have been paid, then the life cover would have to continue at the option
of the client.
4. Surrender value
The surrender value would be payable only after completion of 3 policy years.
5. Top-ups
Insurance companies can accept top-ups only if the client has paid regular
premiums till date. If the top-up amount exceeds 25% of total basic regular
premiums paid till date, then the client has to be given a certain percentage of sum
assured on the excess amount. Top-ups have a lock-in of 3 years (unless the top-up
is made in the last 3 years of the policy).
6. Partial withdrawals
The client can make partial withdrawals only after 3 policy years.
7. Settlement
The client has the option to claim the amount accumulated in his account after
maturity of the term of the policy up to a maximum of 5 years. For instance, if the
ULIP matures on January 1, 2007, the client has the option to claim the ULIP
monies till as late as December 31, 2012. However, life cover will not be available
during the extended period.
8. Loans
No loans will be granted under the new ULIP.
9. Charges
The insurance company must state the ULIP charges explicitly. They must also
give the method of deduction of charges.
10. Benefit Illustrations
24
25. The client must necessarily sign on the sales benefit illustrations. These
illustrations are shown to the client by the agent to give him an idea about the
returns on his policy.
Agents are bound by guidelines to show illustrations based on an optimistic
estimate of 10% and a conservative estimate of 6%. Now clients will have to sign
on these illustrations, because agents were violating these guidelines and
projecting higher returns.
While what the IRDA has done is commendable, a lot more needs to be done. At
Personalfn, we have our own wish list with regards to ULIP portfolios:
Regular disclosure of detailed ULIP portfolios. This is a problem with the
industry; for all their talk on being just like (or even better than) mutual funds,
ULIP portfolios are nowhere near their Mutual fund counterparts in frequency as
well as in transparency.
On the same lines, other data points like portfolio turnover ratios need to be
mentioned clearly so clients have an idea on whether the fund manager is
investing or punting.
ULIPs (especially the aggressive options) need to mention their investment
mandate, is it going to aim for aggressive capital appreciation or steady growth. In
other words will it be managed aggressively or conservatively? Will it invest in
large caps, mid caps or across both segments? Will it be managed with the growth
style or the value style?
Exposure to a stock/sector in a ULIP portfolio must be defined. Diversified equity
funds have a limit to how much they can invest in a stock/sector. Investment
guidelines for ULIPs must also be crystallised.
Our interaction with insurance companies indicates that there is little clarity on
this front; we believe that since ULIPs invest so heavily in stock markets they
must have very clear-cut investment guidelines.
25
26. ARE ULIP’S SIMILAR TO MUTUAL FUNDS?
In structure, yes; in objective, no. Because of the high first-year charges, mutual
funds are a better option if you have a five-year horizon.
But if you have a horizon of 10 years or more, then ULIPs have an edge. To
explain this further a ULIP has high first-year charges towards acquisition
(including agents’ commissions).
As a result, they find it difficult to outperform mutual funds in the first five years.
But in the long-term, ULIP managers have several advantages over Mutual fund
managers.
Since policyholder premiums come at regular intervals, investments can be
planned out more evenly.
Mutual fund managers cannot take a similar long-term view because they have
bulk investors who can move money in and out of schemes at short notice.
26
27. COMPARISON, UNIT LINKED OR “WITH PROFITS”
The two strong arguments in favour of unit-linked plans are that — the investor
knows exactly what is happening to his money and two, it allows the investor to
choose the assets into which he wants his funds invested.
A traditional ‘with profits,’ on the other hand, is a black box and a policyholder
has little knowledge of what is happening. An investor in a ULIP knows how
much he is paying towards mortality, management and administration charges.
He also knows where the insurance company has invested the money. The investor
gets exactly the same returns that the fund earns, but he also bears the investment
risk.
The transparency makes the product more competitive. So if you are willing to
bear the investment risks in order to generate a higher return on your retirement
funds, ULIPs are for you.
Traditional ‘with profits’ policies too invest in the market and generate the same
returns prevailing in the market. But here the insurance company evens out returns
to ensure that policyholders do not lose money in a bad year. In that sense they are
safer.
ULIPs also offer flexibility. For instance, a policyholder can ask the insurance
company to liquidate units in his account to meet the mortality charges if he is
unable to pay any premium installment.
This eats into his savings, but ensures that the policy will continue to cover his
life.
27
28. FIVE STEPS OF SELECTING THE RIGHT ULIP
1. Understand the concept of ULIPs
Do as much homework as possible before investing in an ULIP. This way you will
be fully aware of what you are getting into and make an informed decision.
More importantly, it will ensure that you are not faced with any unpleasant
surprises at a later stage. Our experience suggests that investors on most occasions
fail to realize what they are getting into and unscrupulous agents should get a lot
of 'credit' for the same.
Gather information on ULIPs, the various options available and understand their
working. Read ULIP-related information available on financial Web sites,
newspapers and sales literature circulated by insurance companies.
2. Focus on your need and risk profile
Identify a plan that is best suited for you (in terms of allocation of money between
equity and debt instruments). Your risk appetite should be the deciding criterion in
choosing the plan.
As a result if you have a high-risk appetite, then an aggressive investment option
with a higher equity component is likely to be more suited. Similarly your existing
investment portfolio and the equity-debt allocation therein also need to be given
due importance before selecting a plan.
Opting for a plan that is lop-sided in favour of equities, only with the objective of
clocking attractive returns can and does spell disaster in most cases.
3. Compare ULIP products from various insurance companies
Compare products offered by various insurance companies on parameters like
expenses, premium payments and performance among others. For example,
information on premium payments will help you get a better picture of the
minimum outlay since ULIPs work on premium payments as opposed to sum
assured in the case of conventional insurance products.
28
29. Compare the ULIPs' performance i.e. find out how the debt, equity and balanced
schemes are performing; also study the portfolios of various plans. Expenses are a
significant factor in ULIPs, hence an assessment on this parameter is warranted as
well.
Enquire about the top-up facility offered by ULIPs i.e. additional lump sum
investments, which can be made to enhance the policy's savings portion. This
option enables policyholders to increase the premium amounts, thereby providing
presenting an opportunity to gainfully invest any surplus funds available.
Find out about the number of times you can make free switches (i.e. change the
asset allocation of your ULIP account) from one investment plan to another. Some
insurance companies offer multiple free switches every year while others do so
only after the completion of a stipulated period.
4. Go for an experienced insurance advisor
Select an advisor who is not only conversant with the functioning of debt and
equity markets, but also independent and unbiased. Ask for references of clients he
has serviced earlier and crosscheck his service standards.
When your agent recommends a ULIP from a given company, put forth some
product-related questions to test him and also ask him why the products from other
insurers should not be considered.
Insurance advice at all times must be unbiased and independent; also your agent
must be willing to inform you about the pros and cons of buying a particular plan.
His job should not be restricted to doing paper work like filling forms and
delivering receipts; instead he should keep track of your plan and offer you advice
on a regular basis.
5. Does your ULIP offer a minimum guarantee?
In a market-linked product, protecting the investment's downside can be a huge
advantage. Find out if the ULIP you are considering offers a minimum guarantee
and what costs have to be borne for the same.
29
30. 2.3 ULIP’s Versus MUTUAL FUNDS
1. Mode of investment/ investment amounts
Mutual fund investors have the option of either making lump sum investments or
investing using the systematic investment plan (SIP) route, which entails
commitments over longer time horizons. The fund house lays out the minimum
investment amounts.
ULIP investors also have the choice of investing in a lump sum (single premium)
or using the conventional route, i.e. making premium payments on an annual, half-
yearly, quarterly or monthly basis. In ULIPs, determining the premium paid is
often the starting point for the investment activity.
This is in stark contrast to conventional insurance plans where the sum assured is
the starting point and premiums to be paid are determined thereafter.
ULIP investors also have the flexibility to alter the premium amounts during the
policy's tenure. For example an individual with access to surplus funds can
enhance the contribution thereby ensuring that his surplus funds are gainfully
invested; conversely an individual faced with a liquidity crunch has the option of
paying a lower amount (the difference being adjusted in the accumulated value of
his ULIP). The freedom to modify premium payments at one's convenience clearly
gives ULIP investors an edge over their Mutual fund counterparts.
2. Expenses
In Mutual fund investments, expenses charged for various activities like fund
management, sales and marketing, administration among others are subject to pre-
determined upper limits as prescribed by the Securities and Exchange Board of
India.
For example equity-oriented funds can charge their investors a maximum of 2.5%
per annum on a recurring basis for all their expenses; any expense above the
prescribed limit is borne by the fund house and not the investors.
30
31. Similarly funds also charge their investors entry and exit loads (in most cases,
either is applicable). Entry loads are charged at the timing of making an
investment while the exit load is charged at the time of sale.
Insurance companies have a free hand in levying expenses on their ULIP products
with no upper limits being prescribed by the regulator, i.e. the Insurance
Regulatory and Development Authority. This explains the complex and at times
'unwieldy' expense structures on ULIP offerings. The only restraint placed is that
insurers are required to notify the regulator of all the expenses that will be charged
on their ULIP offerings.
Expenses can have far-reaching consequences on investors since higher expenses
translate into lower amounts being invested and a smaller corpus being
accumulated. ULIP-related expenses have been dealt with in detail in the article
"Understanding ULIP expenses".
3. Portfolio disclosure
Mutual fund houses are required to statutorily declare their portfolios on a
quarterly basis, albeit most fund houses do so on a monthly basis. Investors get the
opportunity to see where their monies are being invested and how they have been
managed by studying the portfolio.
There is lack of consensus on whether ULIPs are required to disclose their
portfolios. During our interactions with leading insurers we came across divergent
views on this issue.
While one school of thought believes that disclosing portfolios on a quarterly basis
is mandatory, the other believes that there is no legal obligation to do so and that
insurers are required to disclose their portfolios only on demand.
Some insurance companies do declare their portfolios on a monthly/quarterly
basis. However the lack of transparency in ULIP investments could be a cause for
concern considering that the amount invested in insurance policies is essentially
meant to provide for contingencies and for long-term needs like retirement;
regular portfolio disclosures on the other hand can enable investors to make timely
investment decisions.
31
32. ULIP’s vs. Mutual Funds
ULIPs Mutual Funds
Minimum investment amounts
Determined by the investor are determined by the fund
Investment amounts and can be modified as well house
No upper limits, expenses Upper limits for expenses
determined by the insurance chargeable to investors have
Expenses company been set by the regulator
Quarterly disclosures are
Portfolio disclosure Not mandatory* mandatory
Generally permitted for free Entry/exit loads have to be
Modifying asset allocation or at a nominal cost borne by the investor
Section 80C benefits are Section 80C benefits are
available on all ULIP available only on investments
Tax benefits investments in tax-saving funds
* There is lack of consensus on whether ULIPs are required to disclose their
portfolios. While some insurers claim that disclosing portfolios on a quarterly
basis is mandatory, others state that there is no legal obligation to do so.
4. Flexibility in altering the asset allocation
As was stated earlier, offerings in both the mutual funds segment and ULIPs
segment are largely comparable. For example plans that invest their entire corpus
in equities (diversified equity funds), a 60:40 allotment in equity and debt
instruments (balanced funds) and those investing only in debt instruments (debt
funds) can be found in both ULIPs and mutual funds.
If a Mutual fund investor in a diversified equity fund wishes to shift his corpus
into a debt from the same fund house, he could have to bear an exit load and/or
entry load.
On the other hand most insurance companies permit their ULIP inventors to shift
investments across various plans/asset classes either at a nominal or no cost
(usually, a couple of switches are allowed free of charge every year and a cost has
to be borne for additional switches).
Effectively the ULIP investor is given the option to invest across asset classes as
per his convenience in a cost-effective manner.
32
33. This can prove to be very useful for investors, for example in a bull market when
the ULIP investor's equity component has appreciated, he can book profits by
simply transferring the requisite amount to a debt-oriented plan.
5. Tax benefits
ULIP investments qualify for deductions under Section 80C of the Income Tax
Act. This holds well, irrespective of the nature of the plan chosen by the investor.
On the other hand in the mutual funds domain, only investments in tax-saving
funds (also referred to as equity-linked savings schemes) are eligible for Section
80C benefits.
Maturity proceeds from ULIPs are tax free. In case of equity-oriented funds (for
example diversified equity funds, balanced funds), if the investments are held for a
period over 12 months, the gains are tax free; conversely investments sold within a
12-month period attract short-term capital gains tax @ 10%.
Similarly, debt-oriented funds attract a long-term capital gains tax @ 10%, while a
short-term capital gain is taxed at the investor's marginal tax rate.
Despite the seemingly similar structures evidently both mutual funds and ULIPs
have their unique set of advantages to offer. As always, it is vital for investors to
be aware of the nuances in both offerings and make informed decisions
CHAPTER – III
3.1 Research Methodology:
33
34. 1) A questionnaire has been prepared which consist of 14 questions and it has
been administered on the investor’s of Chennai. 35-35 respondents have
been chosen from Mutual Funds and ULIP holders in SPA Capital services
Pvt Ltd.
2) Sampling Technique: - Simple Random Sampling.
3) Sampling Unit: - Respondents are from Chennai (T.N).
4) Tools for Analysis: - Z-test, Factor Analysis.
5) Hypothesis for Z-test: -
H0 =There is no significant difference in perception of customer for
products offered by Mutual Funds companies and ULIP companies
H1 = There is a significant difference in perception of customer for products
offered by Mutual Funds companies and ULIP companies
.
CHAPTER – IV
34
35. 4.1 Results and Interpretation
Hypothesis (Z Test)
Z test Comparative series test
Z test is based on the normal probability distribution and is used for judging the
significance of several statistical measures, particularly the mean. The relevant test
statistics is worked out and compared with its probable value (to be read from table
showing area under normal curve) at a specified level of significance from the judging
the significance of the measures concerns. This is most frequently used in research study.
The test used even when binominal distributions or t distribution is applicable on the
presumption that such a distribution tends to approximate normal distribution as V
becomes larger. Z test is generally used for comparing the mean of a sample to sum –
hypothesized means for the population in case of large sample or when population
variance is known. Z test is also used for judging the significance of difference between
means of two independent samples in case of large samples or when the population’s
variance is known. Z test is also used for comparing the sample proportion to a
theoretical value o population or for finding the difference in proportions of 2
independent samples when n happens to large. Besides this test may be used for judging
the significance of median, mode, coefficient of correlation and several other measures.
In this study I have used this tool to evaluate the HFC’s pre and post performance after
liberalization, has it improved or reduced.
The hypothesis is taken as : -
Ho.: There is no significant difference in perception of customer for products
offered by Mutual Funds companies and ULIP companies.
H1: There is significant difference in perception of customer for products
offered by Mutual Funds companies and ULIP companies.
The Z test was applied to test the significance at 5% level of significance.
35
36. Factors
Mutual Funds
Factor Of Investors Preference For Mutual Fund
F1 F2 F3 F4 F5
Investment Core Product Risk Return Transparency Tax Free
Flexibility Factor Factor Income
Lock In Period Less benefit Market Risk Information Tax rebates
Death Benefit Term Insurance Fewer Returns Charges Less Flexible
More Risky Less Assured
Less Safe Returns
Short Term
Investment Flexibility
Investment flexibility gives options to choose from various plans available,
and gives investor facility to switch between the plans even after investing, this
makes it easy for the investor to switch between the plans in the term as which
plan providing high returns and NAV. Death benefit in case of ULIP makes
investors money more secure. It is measured by item 11,14,9 and these variables
are “Lock In Period”, “Death Benefit” and “Less Safe” Variable 11 is the strongest
and explains 17.5289 per cent variance and has a total factor load of 2.851039.
Core Product Factor
Works under “high risk high return”, the investment long or short termed, provide
returns, and side by side, covers the insurance Factor; this provides double benefit
to the investor as he gets the returns and growth of both i.e. the investment and the
insurance cover at the time of maturity. It is measured by item 10, 12, 1, 5 and
these variables are “Less benefit”, “Term Insurance”, “More Risky” and “Short
Term” Variable 10 is the strongest and explains 14.2961 per cent variance and has
a total factor load of 2.236417783.
36
37. Risk Return Factor
The returns covers all the possible risk, provide the minimum “sum assured”, the
NAV goes according to the market but never falls too short of providing a good
returns, and if for a time period it falls short then the losses can be covered the
next moment the NAV climbs up, thus making the “sum assured” returns in the
despite of Market risk involved. It is measured by item 6,8,13 and these variables
are “Market Risk”, “Fewer Returns” and “Less Assured Returns” Variable 06 is
the strongest and explains 12.76165 per cent variance and has a total factor load of
0.519326.
Transparency
The investors are provided with all the details of the plans available, making them
easy to choose accordingly, i.e. which plan is providing high rates of returns,
which plan is having the high NAV in the market, that can be decided by the
investors before investing their hard earned money, it is measured by item 2,3 and
these variables are “Information” and “Charges” Variable 02 is the strongest and
explains 12.42219 per cent variance and has a total factor load of 0.126049.
Tax Free Income
All the returns which the investors get are totally tax free, i.e. they are not taxable
under any head of income tax, this makes the investors save all the tax on the
growth provided by the available plans, all the funds so generated are termed
“white” and gives the investors the chance to use the way freely as they like. It is
measured by item 4,7 and these variables are “Tax rebates” and “Less Flexible”
ULIP (Unit Linked Insurance Plan)
37
38. INVESTORS PROTECTION
Tax saving option as all the returns are tax free, insurance cover also goes side by
side thus covering the risk involved, this insures that the returns provided by the
F1 F2 F3 F4 F5 Ff6 F7
Investor's Cost and Security Risk Informatio Term Riding the
Protection Time Options Management n Flow Analysis Yeild Curve
Effective
Tax Market Less Safe Less benefit Death Short Assured
Rebates Risk Benefit Term Returns
Term Charges Flexible More Risky Information Fewer Returns
Insurance
plan can be used by the way investor likes, and at the time of maturity the returns
thus provided are of both, the fund invested and the insurance benefit. It is
measured by item 4, 12 and these variables are “Tax Rebates” and “Term
Insurance” Variable 04 is the strongest and explains 12.48766 per cent variance
and has a total factor load of 1.643967.
COST AND TIME EFFECTIVE
No hidden charges, all the charges are clearly mentioned in it, the market risk so
involved gets minimized by the lock in period provided, the lock in period insures
minimum time period for which the fund is invested and it provides the return thus
making the fund grow in that period of time, and at the time of maturity into a
handsome amount. It is measured by item 6, 3, 11 and these variables are “Market
Risk” and “Charges” Variable 06 is the strongest and explains 12.37681 per cent
variance and has a total factor load of 0.684604.
38
39. SECURITY OPTIONS
Various security and flexibility options insures proper and safe management of
funds, the funds so invested goes to the invested market according to the portfolio
designed, this insures safe and sound growth of funds as they are invested in
various area and not in the same place. It is measured by item 9,7 and these
variables are “Less Safe” and “Flexible” Variable 09 is the strongest and explains
12.18735 per cent variance and has a total factor load of -0.27762.
RISK MANAGEMENT
Investment in the said plans provides the facility of switching and insurance i.e.
the money so invested never goes out in the same place, minimizing the risk of
getting less returns, investments in the places according to the portfolio designed
helps to compensate the losses, if arise from the other place from where the
investor is getting higher returns thus minimizing the risks in every possible way.
It is measured by item 10, 1 and these variables are “Less benefit” and “More
Risky” Variable 10 is the strongest and explains 11.87087 per cent variance and
has a total factor load of 1.522173.
INFORMATION FLOW
All the needed information is given resulting proper fund management and
investment, the factors and the details are clearly mentioned thus making it easy
for the investor to invest accordingly to the right plan of his choice. It is measured
by item 14,2 and these variables are “Death Benefit” and “Information” Variable
14 is the strongest and explains 11.82194 per cent variance and has a total factor
load of 1.432328
TERM ANALYSIS
Short term results in high returns in less period of time, while giving out all the
benefits of a long termed plan. This results in the growth in short span giving the
investor the choice of reinvesting the growth in another plan after the maturity in
39
40. short period of time, It is measured by item 5 and the variable is “Short Term”
Variable 5 is the strongest and explains 9.314896 per cent variance and has a total
factor load of 0.897818.
RIDING THE YIELD CURVE
The term for which the money is invested is known as the lock in period, it insures
the money to grow in the beat possible way while covering all the risks involved,
this results in the assured sum of returns, in the short period of time. It is measured
by item 13,8 and these variables are “Assured Returns” and “Fewer Returns”
Variable 13 is the strongest and explains 8.770282 per cent variance and has a
total factor load of 0.373159.
40
41. CHAPTER – V
5. FINDINGS OF THE STUDY
Mutual funds
1) This makes it easy for the investor to switch between the plans in the term
as which plan providing high returns and NAV.
2) This provides double benefit to the investor as he gets the returns and
growth of both.
3) The returns covers all the possible risk, provide the minimum “sum
assured”, the NAV goes according to the market but never falls too short of
providing a good returns
4) The investors are provided with all the details of the plans available,
making them easy to choose accordingly
5) All the returns which the investors get are totally tax free.
41
42. IN ULIP’s
1) Tax saving option as all the returns are tax free, insurance cover also goes
side by side thus covering the risk involved, the fund invested and the
insurance benefit.
2) The market risk so involved gets minimized by the lock in period provided,
the lock in period insures minimum time period for which the fund is
invested and it provides the return thus making the fund grow in that period
of time, and at the time of maturity into a handsome amount.
3) This insures safe and sound growth of funds as they are invested in various
area and not in the same place.
4) Investment in the said plans provides the facility of switching and
insurance.
5) This results in the growth in short span giving the investor the choice of
reinvesting the growth in another plan after the maturity in short period of
time,
6) This results in the assured sum of returns, in the short period of time
42
43. CHAPTER – VI
6. Conclusion
1. The study shows that information of both the investment options is easily
available.
2. The investment done by investor’s is according to their needs i.e. the term
of the plan, returns, tax rebates, flexibility and risk.
3. From the study done we can easily draw an inference that the number of
Mutual Fund investor and ULIP investors are equal.
4. Both investments have provided assured returns to investors.
43
44. CHAPTER –VII
7. BIBLIOGRAPHY
1) Sisodiya, A. (2006). “Mutual Fund Industry in India: An Introduction”. The
ICFAI Material.
2) Pandian, Punithavathy (2007). Security Analysis and Portfolio Management.
Vikas Publishing House PVT LTD.
3) Hugonnier; Julien; kaniel and Ron (June 27, 2007). Mutual Fund Portfolio
Choice in the Presence of Dynamic Flows.
4) Sethu; Baid and Rachana. Trends and Structure of the Indian Mutual Fund
Industry.
5) Sisodiya, Singh; Reddy; Santhosh; Zaheer and Feroz. On a Growth Trail.
6) Kurien and A P. Investor Education – AMFI, Playing An Important Role.
7) Singh and Kumar. Mutual Fund Regulations: The Journey So Far.
8) www.amfiindia.com
9) www.moneycontrol.com
10) www.google.com
11) www.icicidirect.com
12) www.bseindia.com
13) www.nseindia.com
CHAPTER – VIII
44
45. Annexure
Customer Preference For ULIP Versus Mutual Fund
Dear Respondent,
I am the students of MBA (VIBA) - 3rd Semester and undertaken summer
Internship project on ULIP Vs Mutual Fund - A Comparative Study in SPA Capital
Services Pvt Ltd.
In this questionnaire various factors are enumerated which highlights the
customers interest towards these two products.
I assure you that the information provides by you are used for the academic
purpose only & will be kept confidential.
Name :
Designation :
Organization :
Give your response for the statements by encircling the appropriate 5-pt.
scale as given below.
1 2 3 4 5
Strongly Agree Neither agree Disagree Strongly
Agree Nor Disagree Disagree
1 Do you agree that investing in Mutual fund is more risky as 12345
compare to in ULIP?
2 Do you think that information about Mutual Fund is more 12345
available as compare to ULIP?
3 Do you agree that Charges in Mutual fund are more than ULIP? 12345
4 Do you think that Tax rebates in Mutual Funds are less as 12345
Compared to ULIP?
5 Do you think investment done in Mutual Funds is for short term 12345
as compared to ULIP?
6 Do your agree that market risk is more in mutual fund 12345
investments as compared to ULIP?
45
46. 7 Do you agree that Mutual fund is less flexible as compared to 1 2 3 4 5
ULIP?
8 Do you think that Mutual funds provide fewer returns than 1 2 3 4 5
ULIP?
9 Do you think that money invested is less safe in Mutual Funds as 1 2 3 4 5
compared to ULIP?
10 Do you agree that Mutual Funds provide less benefit than ULIP? 1 2 3 4 5
11 Do you think Lock in period in Mutual Fund is more than ULIP? 12345
12 Do you agree that Mutual Funds do not provide term insurance 12345
while ULIP has an option of Insurance?
13 Do you think that Mutual Funds provide less assured returns as 12345
compared to ULIP?
14 Do you agree that Mutual Funds do not provide death benefit 12345
while ULIP provides?
46