Mutual Funds & Insurance

Paper Code: 
BIE 232
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

To acquaint the students with theory aspects of Mutual Funds & Insurance.  

 

10.00
Unit I: 
Concept and Role of Mutual Funds

Concept of a Mutual Fund; Advantages, Evolution of Mutual Funds in India 

Size of Industry, Growth Trends, Role of Mutual Funds in Financial Markets, Mutual Funds vis a vis other investment Options

14.00
Unit II: 
Classification and Organisation of Mutual Funds

Classification  of Mutual Funds : Operational, Portfolio, Geographical, Structural classification

Organisation of Mutual Funds:  Functions of  Asset Management Company,  Appointment and Functions of Trustees/Trust Companies , Custodian of mutual funds, Fund Sponsors, Role of AMFI

12.00
Unit III: 
Regulation of Mutual Funds and Insurance

Regulation of Mutual Funds: Guidelines by RBI and SEBI , Rights and Facilities available to investors.

 Regulation of Insurance: IRDA: Role , power and functions

Essentials of insurance contracts- Distinction between General Law of contract and Insurance contract; Life and indemnity Contract.

14.00
Unit IV: 
Risk Management , Double Insurance and Reinsurance

Double Insurance: Meaning, Features

Reinsurance: Characteristics of Reinsurance, Types of Reinsurance. Reinsurance Vs. Double insurance, Methods of Reinsurance

Risk: Meaning , Definition , Peril , Hazard, Classification of hazard Classification of risk, Requirements of an Insurable risk.

Risk Management in Insurance: Need and process,

Methods of handling risk: Avoidance, Risk Reduction, Risk retention, Risk transfer, combination, Hedging method.

10.00
Unit V: 
Insurance Premium

Calculation of Premium: Net premium, Gross premium, Methods of computation of Premium-Assessment plan, Natural premium Plan, Level Premium Plan, Mortality table-meaning, characteristics, need

Settlement of claim: Death claims, Maturity/Survival claims

Essential Readings: 
  • Sadhak.H. Mutual Fund in India: Marketing Strategies and Investment Practices, Response Publication, New Delhi.
  • National Stock Exchange of India Ltd, Mutual Fund Basic and Advisors Module.
  • Pathak Bharti V., Indian Financial System, Pearson Education, New Delhi.
  • Jha R.N., Insurance in India, Bharat book Buereau, Mumbai.
References: 
  • Rajda George, Principles of Risk Management and Insurance, Pearson Education, New Delhi.
  • Banking and insuranc, O.P, Agarwal, himalya Publishing House
  • Risk management in Insurance,R.K. Kothari, Mukesh jain, RBD publications
Academic Year: 
2018-2019
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