A STUDY ON FINANCIAl &MARKETING ACTIVITIES

OF AIM INDIA

Submitted in partial fulfilment of the requirements

for the award of the degree of

Bachelor of Commerce (Honours)

BCOM (H)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Ms. Sejal Submitted By: Ashwin Binu

Enrollment no:01224488820

Institute of Innovation in Technology & Management

New Delhi – 110058
Batch (2020-2023)

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 Certificate

I, Mr. ASHWIN BINU, Roll No. 01224488820 certify that the Project

Report/Dissertation BCOM (H) / Code 309 entitled “A Study on financial activities of

‘AIM INDIA” is done by me and it is an authentic work carried out by me. The matter

embodied in this project work has not been submitted earlier for the award of any degree

or diploma to the best of my knowledge and belief.

Signature of the Student

Date:

Certified that the Project Report/Dissertation of BCOM (H) entitled “A Study on Financial Activities
of ‘’aim india” done by MR. Ashwin binu, Roll No.01224488820, is completed under my guidance.

Signature of the Guide

Name of the Guide: Ms.
Sejal
Designation:
Date:

Countersigned

(Director / Project Coordinator)

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 ACKNOWLEDGEMENT

I would like to acknowledge the support received from the following

persons during the preparation of this report. Firstly, my parents, who

provided me with the necessary resources to complete the project. They

helped me by encouraging my creativity. Secondly, my guide Ms. Sejal

who helped and advised me at various times on how to initiate the

project. She has provided very useful and relevant tips regarding this

report. Finally, I would also like to thank my classmates who have

supported and encouraged me throughout the preparation of the project.

ASHWIN BINU

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 CONTENTS & LIST OF TABLES/FIGURES/ SYMBOLS

CONTENTS

S No Topic Page No

1 Certificate (s)

2 Acknowledgements -

3 Chapter-1: Introduction 1

4 Chapter-2: Research Methodology 5

5 Chapter-3: Data Presentation & Analysis 9

6 Chapter-4: Summary and Conclusions 22

7 References 24

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 CHAPTER-1

INTRODUCTION

AIM INDIA is the one stop solution provider for all your financial needs. Our
objective is to serve the customers with the best solution for

directing their finances in the most profitable direction. Company is able to

facilitate various trainings and development programs with top B schools and
we have already trained thousands of interns till date. We have liaison with
more than 50 universities in India with the base size of 800 and above
campuses, keeping in mind the most critical needs in

today's context, we have emerged as a service partner of various bank providing

one stop solution offering a gamut of services. Thus, our mission is to establish
high standards of professional etiquette and to effectively facilitate a
comprehensive and accomplished system of continuing professional
development for every possible profession through our exceptional training
solutions.

Our Mission
To become an organization that is knowledge centric and offers expert advice to
our clients.

Our Vision
Our vision is to deliver high rate of returns to our clients and to move towards
financial independence.

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Our Identity

Our identity as the leading provider of professional wealth

advisory in India and Abroad, AIM India delivers a one stop solution/ service to
achieve financial independence. Our principle is to deliver high returns to our
clients through our network of government sector banks in India. Our
comprehensive wealth management is a high level professional service that
combines financial and investment advice in accounting, taxation services and
retirement planning. Our wealth management is much more than just investment
advice as we encompass all parts of an individual's financial life. We coordinate
all the services needed to manage client's money and plan for their own and
family's current and future needs. We maintain and increase their wealth based
on individual's financial situation goals and comfort level with risk.

Commitment to You

Our team offers an ongoing support and advice when your investment is

successfully done. We will keep you informed of changes in regulations that
directly affect you and leaving you to focus on strategies that maximize
profitability and productivity in investment.

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STRUCTURE

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STRENGTHS
Greatest strengths are the human resources.

- Well-managed workforce who has domain knowledge.

-Efficient teamwork, partnership and joint efforts.

WEAKNESS

Lack of trading facilities in certain branches.

Not having adequate technology to do job faster crisis.
- Slow process

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-Small client list
- Limited services
=Covid finical crunches
OPPURTUNITIES
⚫Since the stock market and the Indian economy are booming, more and more
people are willing to invest and multiply their wealth.

Due to this there is a demand of financial service provider to people to fulfill

their advisory needs so that they can have money to support them at the time of

THREATS
The threats are the

competitors like India info line

⚫ angel broking firm

⚫ competitors

⚫ changing regulation

⚫ supplier bankruptcy

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CHAPTER-2

What is the research methodology?

Research methodology simply refers to the practical “how” of any given

piece of research. More specifically, it’s about how a researcher

systematically designs a study to ensure valid and reliable results that

address the research aims and objectives.

Types of research can be classified in many different ways. Some major

ways of classifying research include the following: -

 Descriptive Research
 Analytical Research
 Applied Research
 Fundamental Research
 Qualitative Research
 Quantitative Research
 Conceptual Research
 Empirical Research

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 Descriptive research concentrates on finding facts to ascertain the

nature of something as it exists.

 Analytical research is concerned with determining validity of

hypotheses based on analysis of facts collected.

 Applied research is carried out to find answers to practical problems

to be solved and as an aid in decision making in different areas

including product design, process design and policy making.

 Fundamental research is carried out more to satisfy intellectual

curiosity, than with the intention of using the research findings for any

immediate practical application.

 Quantitative research studies such aspects of the research subject

which are not quantifiable, and hence not subject to measurement and

quantitative analysis.

 Quantitative research makes substantial use of measurements and

quantitative analysis techniques.

 Conceptual research involves investigation of thoughts and ideas and

developing new ideas or interpreting the old ones based on logical

reasoning.

 Empirical research is based on firm verifiable data collected by

either observation of facts under natural condition or obtained

through experimentation.

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Sources of data collection
The sources of data can be classified into two types: statistical and non-

statistical. Statistical sources refer to data that is gathered for some official

purposes, incorporate censuses, and officially administered surveys. Non-

statistical sources refer to the collection of data for other administrative

purposes or for the private sector.

The following are the two sources of data:

Internal sources

When data is collected from reports and records of the organisation itself,

they are known as the internal sources.

For example, a company publishes its annual report’ on profit and loss, total

sales, loans, wages, etc.

External sources

When data is collected from sources outside the organisation, they are

known as the external sources.

Types of data collection

A) Primary data

Primary data means first-hand information collected by an investigator.

It was collected for the first time.

It is original and more reliable.

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For example, the population census conducted by the government of India

every ten years is primary data.

B) Secondary data

Secondary data refers to second-hand information.

It is not originally collected and rather obtained from already published or

unpublished sources. For example, the address of a person taken from the

telephone directory or the phone number of a company taken from Just Dial

are secondary data

Methodology used for Data Collection

Data is distinct pieces of information, usually formatted in a special way.

The word data means computer information stored or transmitted.

To fulfil the objectives of the study, the data have been collected from
secondary sources.

Methodology used for Data Analysis:

Data analysis is the process of collecting, modelling, and analysing data to

extract insights that support decision-making. There are several methods and

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techniques to perform analysis depending on the industry and the aim of the

analysis.

For the purpose of this study the data analysis is done in following manner-

• Data entry with data validation and data cleaning

• Data analysis with different facts and figures

Secondary Data- Data collected from books, websites and unpublished
sources

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 CHAPTER 3 DATA AND INTERPRETATION

ABOUT THE SECTOR

Insurance in India refers to the market for insurance in India which covers both
the public and private sector organizations. It is listed in the Constitution of
India in the Seventh Schedule as a Union List subject, meaning it can only be
legislated by the Central government. The insurance industry of India consists
of 57 insurance companies of which 24 are in life insurance business and 33 are
non-life insurers. The Confederation of Indian Industry states that the insurance
sector of the country has been witnessing a consistent growth rate of late and its
present worth is 41 billion US dollars.

The industry has of late achieved a yearly growth rate within 32 and 34 percent
and this makes itthe 5th best among emerging economies around the world. The
various entities of the industry are also bringing out newer products on a regular
basis to attract their customers. As per rules, the upper limit of foreign direct
investment permitted in this sector is 26 percent. However, this has to be done
through the automatic route and the investor needs a license from Insurance
Regulatory and Development Authority (IRDA).
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Among the life insurers, Life Insurance Corporation (LIC) is the sole public-
sector company. Apart from that, among the non-life insurers there are six
public sector insurers. In addition to these, there is sole national re-insurer,
namely, General Insurance Corporation of India (GIC Re). Other stakeholders
in Indian Insurance market include agents (individual and corporate), brokers,
surveyors and third-party administrators servicing health insurance claims.

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Evolution of Insurance sector

 All life insurance companies were nationalized to form LIC in 1956 to

increase penetration and protect policy holders from mismanagement
 The non-life insurance business was nationalized to form GIC in 1972 •
Malhotra Committee recommended opening up the insurance sector to
private players
 IRDA, LIC and GIC Acts were passed in 1999, making IRDA the
statutory regulatory body
 for insurance and ending the monopoly of LIC and GIC
 Post liberalization, the insurance industry recorded significant growth; the
number ofprivate players increased to 44 in 2012(1)
 The industry has been spurred by product innovation, vibrant distribution
channels,coupled with targeted publicity and promotional campaigns by
the insurers

 In December 2014, Goverment approved the ordinance increasing FDI

limit in Insurance sector from 26 per cent to 49 per cent. This would
likely to attract investment of USS 7-8 billion
 In 2015, Government introduced Pradhan Mantri Suraksha Bima Yojna
and Pradhan Mantri Jeevan Jyoti Bima Yojana

 Government introduced Atal Pension Yojana and Health insurance in

2015 • As per Union Budget 2016-17, new health insurance scheme
under the National HealthProtection Scheme has been introduced

 In Union Budget 2017, government increased the coverage from 30 per

cent to 40 per cent under Pradhan Mantri Fasal Bima Yojna.

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  Insurance companies raised more than USS 5 billion from public issues.

India insurance industry growth in last few years

The life insurance companies have performed the best when it comes to growth
with an increase of almost 70% in new premium that has been collected in the
initial 5 months of 2012.

As per IRDA data, in April-August 2010 the insurance companies earned

$11.73 billion in new premium- in the corresponding period in the previous year
the amount stood at 6.9 billion dollars.

LIC, a state held insurer, had been the biggest profit maker at that time with an
addition of 88% to their existing business. The privately-owned insurers
together had seen a leap of 34% to their policy sales.

ICICI Prudential earned $76.60 million dollars at that time. During April-
August 2009 SBI Life had earned $379.20 million in sales of new policies and
that figure went up to $531.87 million in the corresponding period in 2010
making it an increase of 40% HDFC Standard Life also experienced a good
growth of 54% in new sales.

IRDA data shows that between April and October 2010 the general insurance
industry experienced a year-on-year growth of 22.76% with regards to
underwritten gross premium.

India's current market continues to be strong

 The insurance industry is expected to reach USS 280 billion by 2020. In
2016, around 46 private players were operating in the industry, while Life
Insurance Corporation accounted for 72.61 per cent of the country's
insurance market.

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  Individual single premiums received increased from US$ 0.16 billion in
2015 to around USS 1.02 billion in 2016.
 Indian Government announced its plans to divest USS 1.63 billion worth
of stakes in PSU general insurance companies to execute the steep
disinvestment target of USS 10.78 billion in FY 17.

 IRDAI has allowed insurers to invest up to 10 per cent in additional tier 1

(ATI) bonds, that are issued by banks to augment their tier capital, in
order to expand the pool of eligible investors for the banks.

India insurance product composition

General composistion

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21
Life insurance

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India insurance industry major problems
Following are some of the major problems plaguing the insurance industry in
India:
Focus on actuarial pricing
Regulatory misunderstanding
Investment regulations
Solvency regulation Claims settlement procedures
Data clarity
Distribution channel issues

Why are more people taking insurance policies?

One of the major reasons for an increasing number of people availing insurance
policies in India is the growing level of awareness. People nowadays value their
lives, their health, and their families even more than before given the tough

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economic circumstances and so want to make sure that everything is fine even if
they are not there.

Yet another reason for the growing popularity of insurance policies is the
benefit of tax exemption that is provided to family oriented and individual
plans. Majority of the private insurers also provide lucrative returns and are now
being availed by a section of the Indian society with greater disposable
earnings.
There is an aspect of psychological comfort attached to the insurance policies as
well - whenever an insurance is availed the policyholder can be more or less
assured of a safe future for that

 Porter's Five Forces Model of Insurance Sector

particular part of his or her life. Competition in an industry is rooted in its

underlying economics, and competitive forces exist that go well beyond the
established combatants in a particular industry. Customers, suppliers, potential
entrants, and substitute products are all competitors that may be more or less
prominent or active depending on the industry. The state of competition in an
industry depends on five basic forces that are as follows:

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 1. The threat of new entrants Other financial companies can enter the
industry regulations
• Overall threat is medium given that entry is subject to license and

2. The bargaining power of buyers/customers

⚫ Bargaining power of customers especially corporate is very high
because they pay huge amount of premium

3. The threat of substitute products Similarity in services makes switchover a

potent threat Investment oriented customers have switched to other avenues

4. The amount of bargaining power suppliers have Supplier being the distributor
or agent have high bargaining power because they have customer database and
can influence customers in making choices

5. The intensity of the competitive rivalry

• Insurance industry is becoming highly competitive with 52 players operating

in the industry

Companies are competing on price and also using low price and high
returns strategy for customers to lure them

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CHAPTER 4
SUMMARY AND CONCLUSION
In the modern education system internship plays a crucial role as the act of

mediator for the student to connect the theoretical knowledge with practical

working environment. Internship program provides an opportunity to

provide practical knowledge along with academic program. Exact to the

motive of the internship program during the internship period, I got an

opportunity to explore the theoretical knowledge into the real working

environment. As an intern, I worked on various operational activities such as

recording of financial transactions, preparing bills and keeping record of raw

material inventory which enhance my skills and gained practical knowledge

of importance of team work and coordination during the internship period.

The internship is a bridge between the theoretical knowledge and the

practical or the reality work. My hosting company help me in acquiring

different knowledge in different positions.

First 15 days we had orientation and learning session , where we were

getting acquitted with the company and we got to know the Company.
Next 15 days we had to market their product ( IndiaFirst Life Mahajeevan
Plus Plan ) and make sales among our friends and relatives .
As it is a consultancy firm which aims at providing financial investment
guidance and knowledge,
We mainly worked on the sales of premiums, life insurance and other
financial investments. I even saw how after-sales services work. I got to learn
who much efforts do it take to keep a user/customer intact to the company.

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 The Internship was mainly focused on to enable me to learn practical
knowledge and acquire practical skills. It also enabled me to link theoretical
knowledge to the real world.
These skills will help in meeting the market needs in mere future. The
practical skills involved leadership, time management, dealing with customers,
management, etc. It also helped me realize how actually big companies deal
with their baby companies.
The work of the company does not finish after the sale of the product, but
the second and an important part starts, the after-sales service.
AIM INDIA is working on a diversifying the products it deals in and
establishing new strategy for branding. I had a really great experience interning
with them. The atmosphere at their head office was also very warm and
welcoming. All the staff there was too cooperative.

SUGGESTION

⚫ Promotion of India First Life Insurance company should be more on every

platform.
⚫ Claims of insurance policies should be given on time.

⚫ Every benefit illustration through the policy must be shown in the bond.

⚫ Every insurance policy should give their customer an online authentication

where they can be also updated with their policy details and
premium.
⚫ AIM India can collaborate with various multi-national companies and can get
data on newly hired employees, where the company can tell the employee the
tax that they can save their salaries.

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 REFERENCES
https:/en.wikipedia.org
https://www.insurance.com/
https://www.indiafirstlife.com
https://www.aimincorp.com/
https://www.linkedin.com/company/aimindia/

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