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 coverag
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.
