MUTUAL FUND BUSINESS vs. INSURANCE BUSINESS … A COMPARISON

	Dynamic Comparison Tool
	MUTUAL FUND BUSINESS vs. INSURANCE BUSINESS … A COMPARISON
	Insurance Premium and Mutual Fund SIP Amount			Rs.	1,00,000	Yearly
	Commission Structure … Insurance
		Insurance		Mutual Funds
	Year 1	30%		Upfront	2.00%	1st year
	Year 2	15%		Trail	0.65%	2nd yr on…
	Year 3 on …	5%
	Growth in AUM for Mutual Fund Investments …				15.00%
	Results
	Total Business Done by the Agent/Distributor				25,00,000	In 25 years
	Total Earnings in Insurance				1,60,000
	Total Earnings in Mutual Funds				9,99,732
	Times MF Earnings to Insurance Earnings				6.25
	Year End	INSURANCE - 1 Sale			MUTUAL FUNDS - 1 Planning Assuming business from day 1					Growth in AUM
		Premium Rs.	% Comm.	Income Rs.	SIP Amt.	AUM	Up-front Income	Trail Income	Total Income	15%	115%
	1	1,00,000	30%	30,000	1,00,000	1,07,500	2,000	349	2,349
	2	1,00,000	15%	15,000	1,00,000	2,31,125	2,000	1,125	3,125
	3	1,00,000	5%	5,000	1,00,000	3,73,294	2,000	1,989	3,989
	4	1,00,000	5%	5,000	1,00,000	5,36,788	2,000	2,982	4,982
	5	1,00,000	5%	5,000	1,00,000	7,24,806	2,000	4,125	6,125
	6	1,00,000	5%	5,000	1,00,000	9,41,027	2,000	5,438	7,438
	7	1,00,000	5%	5,000	1,00,000	11,89,681	2,000	6,949	8,949
	8	1,00,000	5%	5,000	1,00,000	14,75,633	2,000	8,687	10,687
	9	1,00,000	5%	5,000	1,00,000	18,04,478	2,000	10,685	12,685
	10	1,00,000	5%	5,000	1,00,000	21,82,650	2,000	12,983	14,983
	11	1,00,000	5%	5,000	1,00,000	26,17,547	2,000	15,625	17,625
	12	1,00,000	5%	5,000	1,00,000	31,17,679	2,000	18,664	20,664
	13	1,00,000	5%	5,000	1,00,000	36,92,831	2,000	22,159	24,159
	14	1,00,000	5%	5,000	1,00,000	43,54,256	2,000	26,177	28,177
	15	1,00,000	5%	5,000	1,00,000	51,14,894	2,000	30,799	32,799
	16	1,00,000	5%	5,000	1,00,000	59,89,628	2,000	36,114	38,114
	17	1,00,000	5%	5,000	1,00,000	69,95,573	2,000	42,226	44,226
	18	1,00,000	5%	5,000	1,00,000	81,52,408	2,000	49,255	51,255
	19	1,00,000	5%	5,000	1,00,000	94,82,770	2,000	57,339	59,339
	20	1,00,000	5%	5,000	1,00,000	1,10,12,685	2,000	66,635	68,635
	21	1,00,000	5%	5,000	1,00,000	1,27,72,088	2,000	77,325	79,325
	22	1,00,000	5%	5,000	1,00,000	1,47,95,401	2,000	89,619	91,619
	23	1,00,000	5%	5,000	1,00,000	1,71,22,211	2,000	1,03,757	1,05,757
	24	1,00,000	5%	5,000	1,00,000	1,97,98,043	2,000	1,20,015	1,22,015
	25	1,00,000	5%	5,000	1,00,000	2,28,75,249	2,000	1,38,713	1,40,713
	TOTAL	25,00,000		1,60,000	25,00,000		50,000	9,49,732	9,99,732

Brokerage in Mutual Funds

Lumsum Business – Partner Earning Calcy
Lumsum Business (Rs.)	1,00,00,000		Upfront	2.00%
Growth Rate	15.00%		1st Year Trail	0.65%
			2nd Year Trail	0.65%
Year	Investment	AUM Growth	Upfront	Trail	Total Income	Cumulative
1	1,00,00,000	1,15,00,000	200000	74750	2,74,750	2,74,750
2	0	1,32,25,000	0	85963	85,963	3,60,713
3	0	1,52,08,750	0	98857	98,857	4,59,569
4	0	1,74,90,063	0	113685	1,13,685	5,73,255
5	0	2,01,13,572	0	130738	1,30,738	7,03,993
6	0	2,31,30,608	0	150349	1,50,349	8,54,342
7	0	2,66,00,199	0	172901	1,72,901	10,27,243
8	0	3,05,90,229	0	198836	1,98,836	12,26,080
9	0	3,51,78,763	0	228662	2,28,662	14,54,742
10	0	4,04,55,577	0	262961	2,62,961	17,17,703
11	0	4,65,23,914	0	302405	3,02,405	20,20,108
12	0	5,35,02,501	0	347766	3,47,766	23,67,875
13	0	6,15,27,876	0	399931	3,99,931	27,67,806
14	0	7,07,57,058	0	459921	4,59,921	32,27,727
15	0	8,13,70,616	0	528909	5,28,909	37,56,636
16	0	9,35,76,209	0	608245	6,08,245	43,64,881
17	0	10,76,12,640	0	699482	6,99,482	50,64,363
18	0	12,37,54,536	0	804404	8,04,404	58,68,768
19	0	14,23,17,716	0	925065	9,25,065	67,93,833
20	0	16,36,65,374	0	1063825	10,63,825	78,57,658