Final Project of Perseption

7/29/2019 Final Project of Perseption

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SHIVAJI UNIVERSITY, KOLHAPUR M.B.A. PROGRAMME

D.K.T.E.S DEPARTMENT OF MANAGEMENT STUDIES Page 1

A

PROJECT REPORT

ON

ROLE OF MUTUAL FUND ADVISOR IN NJ INDIA

INVEST

With Special Reference To

NJ INDIA INVEST PVT. LTD.

Submitted To

SHIVAJI UNIVERSITY, KOLHAPUR

For An Award Degree of Post Graduate Degree Of

MASTER OF BUSINESS ADMINISTRATION (MBA)

BYMASTER SACHIN SUGANCHAND BAHETI

Under The Guidance Of

CHIRAG DESAI

DKTE'S TEXTILE AND ENGINEERING INSTITUTE,

ICHALKARANJI 416115

(DEPARTMENT OF MANAGEMENT STUDIES)

FOR THE YEAR 2011-2013


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CERTIFICATE OF THE GUIDE

This is to certify that the Project Work titled Role Of Mutual Fund

Advisor In NJ India Invest is a bonafide work of Sachin SuganchandBaheti carried out in partial fulfillment for the award of degree of

MBA Marketing and Finance of Shivaji University under my

guidance. This project work is original and not submitted earlier for the

award of degree / diploma or associate ship of any other University /

Institution.

Signature of the Guide

__________________________

Name and Official Address of the Guide

___________________________________

Guides Academic Qualification

_________________________________

Designation and Experience

____________________________

_

Place:

Date:


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ACKNOWLEDGEMENT

I would like to Express my deep feeling of gratitude to the under

mentioned Officials for their Assistance, external guidance, Inspiration

before and through the Project (SIP). MY Special Thanks to Mr. Chirag

Desai who is the branch manager and also Mr. Yogesh Joshi , Mr.

Yogesh Gohil , Mr. Ravi Kachiwala who is the unit manager, for their

external guidance.

They show me a proper way to talk on for providing help andguidance. Through the SIP, They have always been the source of

encouragement. He has genuinely guided us in all the aspects of the

project with his abundance of experience and logical ideas.

I would like to thanks to MR. Sarfaraz Patel who is ZonalManager and Mr. Manoj Patel who is Regional Manager at NJ South

Gujarat. I am really gratitude about their precious contribution and

guidance in project of my SIP. They have made me clear about the any

confusion related to research study.

Working on project is tough, its need hard work and concentration,what made it possible is the support. I received it from those who around

me .I would like to say thanks to all the Senior Executives of Surat

Branch of marketing departmental studies. They all treated me as their

team member and that is very precious moments which I have spent with

them during the training.


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I am thankful to all faculties of my college. They were providingthe accurate information about the training guidelines and project

preparation. My special thanks to Mr. Nitin Mali All Faculties and my

internal guide. They have reduced my unfruitful efforts to complete the

project work.

I am thankful to my parents who are always source of inspirationfor my life. I am thankful to my Classmates, friends and also those peoplewho have helped me directly to completion of my Summer Internship

Project.


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DECLARATION

I, Mr. Sachin Suganchand Baheti hereby declare that the summer

project report titled, Role of Mutual Fund Advisors In NJ India

Invest is an original piece of work done by me and submitted to the

Shivaji University in fulfillment of requirements for the award of Master

of Business Administration under the supervision ofMr. Chirag Desai ,

Branch manager at Surat in N.J.INDIA INVEST PVT. LTD.

For the fulfillment of the award of post graduate program in

management and whatever information has been taken from any sources

has been duly acknowledged. I also declare that the data received from

the survey has not been shared with any one and is only used for the

purpose of preparing this report.

Date: Signature of the

Student

________________________


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CHAPTERS

NUMBER

SUBJECTS PAGES

NUMBERS

CH-1 INTRODUCTION

1.1 About Topics

1.2 Research objective & problem

CH-2 COMPANY PROFILE

2.1 About Company

2.2 Objective of NJ India invest

2.3 Products & services

2.4 Division of NJ India invest

2.5 Achievement

2.6 Thinking at NJ India invest2.7 Vision & Mission statement

2.8 AMC with NJ India invest

2.9 SWOT Analysis

Ch-3 INDUSTRY PROFILE

3.1 ... Introduction of mutual funds

3.2 History of mutual funds in India

3.3 Phases of mutual funds in India

3.4 Risk associated with mutual fund

3.5 What is mutual fund?

3.6 ... Structure of mutual funds3.7 Types of mutual funds

3.8 Advantages of mutual funds

3.9 Frequently used terms in mutual funds

CH-4 RESEARCH METHODOLGY

4.1 Research Problem

4.2 Research Design

4.3 Source of Data Collection

4.4 Sampling

4.5 ... Sample Study

4.6 Limitation of Study

CH-5 DATA ANALYSIS AND INTERPRETATION

CH-6 FINDING, SUGGESTION AND CONCLUSION

6.1 . . Finding

6.2 Suggestion

6.3 . .... Conclusion

BIBLIOGRAPHY

ANNEXURE


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1.1) ABOUT TOPICS1.2) RESEARCH OBJECTIVE &

PROBLEM


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INTRODUCTION OF PROJECT:

A Mutual Fund is well financial product. It is contributed to the India growth

and also helped families for the investments. Many people did not know about

the Mutual Fund out of 10 only 3 people know about that. If once people are

aware of mutual fund Investment opportunities it may be chances that many

investors agree with mutual fund.

It is very inspirable for me to study on Role of Mutual Fund, It is main

important Product for investing our money. We all aware about the world

recession period, only India & China were Growing economy. India didnt

affected more in world recession because saving in our Blood.

The question of whether or not to work with a Mutual Fund advisor is very

personal. For some people, dealing with financial issues is unpleasant and

requires a great degree of undesired discipline. For these people, the real

question will be how to choose the right advisor, rather than whether or not to

work with one.

A Mutual fund's advisor has the primary responsibility for the investment

performance of the fund. This responsibility may be shared with another

investment advisory firm, with each advisor focusing on different asset types in

a portfolio.

For fund investors, judging the quality of a mutual fund's portfolio

management is one of the most important considerations for investing in a

fund. A Mutual Fund advisor help to investor to take decision, where they can

get good return from investment.


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RESEARCH PROBLEM AND OBJECTIVES:

RESEARCH PROBLEM:

1. From last 4-6 month, more fluctuation creates in equity market, as aresult company facing the problem of sales decline in mutual fund.

2. NJ Funds wants to know the current situation of Mutual Fund advisors.By this way it can able to provide services to them.

3. Company wants to analysis that what was the Mutual Fund advisorPerception about NJ Funds.

4. NJ want to know that by research, how to invite Mutual fund advisor forbusiness Opportunity programmed(BOP) and NJ wants to know that

what the reason for not getting proper outcome from the BOP .

5. Company facing problem to find out potential mutual fund advisorsamong Insurance advisors.

RESEARCH OBJECTIVES:

1. To find out the experience of Mutual Fund advisor with NJ.2. To find out the duty and responsibility of Mutual Fund advisor and how

they work with NJ.

3. Mutual fund advisors place greater importance on performance relativeto other plans with similar fund style, fund risk, or substitute plans and

how they show the benefits of clients and how the advisor helps to select

the proper mutual fund plan to clients.

4. To find out the way of handle the clients and maintain satisfaction withthe commitment of their clients

5. The another objective of this project is concerned with getting theopinion of people regarding Mutual Fund and what they feel about

availing the service of Mutual Fund advisor.


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2.1) ABOUT COMPANY

2.2) OBJECTIVE OF NJ INDIA INVEST

2.3) PRODUCTS & SERVICES

2.4) DIVISIONS OF NJ INDIA INVEST2.5) ACHIEVEMENT2.6) THINKING AT NJ INDIA INVEST2.7) VISION & MISSION STATEMENT2.8) AMC WITH NJ INDIA INVEST2.9) SWOT ANALYSIS


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NJ INDIA INVEST PVT. LTD.

The word NJ stands, N for Neeraj Choksi

and J for Jignesh Desai the founder directors of NJ

India Invest. Seeing the growing scope of the financial service sector these

two dynamic young men, after completing their education, started their career

with this sector. Both of them decided to jump into the same field and came out

with the dynamic concept of NJ Capital stock, which is known as NJ India

Invest now

This business was started in the year 1994; it was the period when

private companies were entering the field of financial services. This was the

time when NJ India Invest evolved as a client focused need based investment

advisory firm. NJ has achieved expertise in need based investment of clients.

At NJ we regard Mutual Fund as one of the best investment avenues available

to satisfy any kind of investment need. NJ has a very well trained men power to

meet the need of the clients and market. With very well qualified work force

we have gained expertise in analyzing Mutual Fund schemes and we even have

achieved expertise in carrying out In-depth study on various parameters of

these different Mutual Fund schemes.

NJ India Invest is a company, which is evolved in this business from past

eleven years as a client focused need based investment advisory firm. It has

developed its own IT industry known as Fin logic India Pvt. Ltd. i.e.

Technology to support clients as well as its employees in their daily rout ine

work. The company has its site named www.njindiainvest.com which

provides a valuable support to clients.
http://www.njindiainvest.com/http://www.njindiainvest.com/http://www.njindiainvest.com/


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OBJECTIVES OF NJ INDIA INVEST

1. The first & main objective of the firm is to provide financial services to

investors.

2. To provide a need based investment advisory services to the clients for

investing their surplus at a right place.

3. To create awareness of mutual fund among the people & to prove that the

mutual is that the mutual fund is one of the best investment avenues available

to satisfy any kind of investment need.

4. To analyze the various schemes of mutual fund & an in-depth study on

various parameters is carried out on a regular basis

5. To manage clients investment to fulfill their needs from cap-a-pie.

PRODUCTS

Mutual fund Fixed deposits Infrastructure Bonds Approved security for Charitable Trust RBI Relief Bonds Real Assets Portfolio Investment ManagementThe above are the core investment in which we deal and where we have

developed our competency. But mutual funds are where the eyes of NJ are

focused the most.


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SERVICE PROVIDED TO VALUABLE CLIENTS AND

AGENTS

The weekly performance sheet (it covers performance of leading mutualfund schemes)

The monthly fund fact sheet (it covers comprehensive analysis ofvarious mutual fund)

Various subscription services via E-mail Dedicated portfolio planning and restructuring on demand Sharing relevant information related to the Indian investment world. Varied services through NJ funds network for partners.

Over all we also provide net-based services to our clients and agents. Our

E-services are provided by a comprehensive website www.njindiainvest.com.

It covers detailed information about the Mutual Fund industry; it passes various

financial planner to satisfy investment goals like retirement planning, childs

marriage planning etc. it also posses various analytical tools to measure theperformance of the Mutual Funds schemes like Return calculators, SIP return

calculators, and many others. There is a separate desk for the clients to get their

portfolio information on fingertips.

The partners ofNJ get valuable services from The Client Desk @ NJ India

invest. Com. From which they get following services:-

Transaction summary report (Mutual funds, fixed deposits, RBI bonds& other)

Portfolio valuation report Portfolio Performance report Profit and loss a/c (FY wise) Consolidated sector & stock profile for equity investment through

mutual funds
http://www.njindiainvest.com/http://www.njindiainvest.com/http://www.njindiainvest.com/


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Consolidated rating and script profile across debt fundsthrough mutual funds.

Consolidated assets allocation report across various assets Alert processing facility across different parameters

DIVISIONS OF NJ INDIA INVEST:

NJ INDIA INVEST

NJ Fundz Network, started in 2003, is a dedicated channel for providing

independent financial advisors or IFA's with a complete business platform for

the strengthening and development of their advisory practice. NJ offers

advisors under its network will all the products; support and services that

enables them add considerable value to their business, emerge as a 'new age

professional financial advisor' and compete confidently in the industry.


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Established as a distinct entity, NJ Wealth Advisors Pvt. Ltd. seeks to offer

comprehensive financial planning and portfolio advisory services to premium

clients. NJ Wealth Advisors offers its clients with quality, unbiased, need-

based advisory services & investment solutions.

NJ Wealth Advisors is a provider of comprehensive investment advisory and

product distribution services. With a strong lineage, NJ Wealth Advisors

possesses rich experience and strong domain understanding in delivering

quality investment advisory services to its clients.

This division provides the training to their employee regarding the how to

selling the products and services in the market and also give the current

scenario about the position about the mutual fund. This sporadic growth in

terms of need of performers in financial advisory services has lead to the

crunch of available performers. Though lots of youngsters are getting into

financial advisory services, but the greatest challenge is of RIGHT SELLING,

for which adequate Training is a prerequisite. Advisory function demands

updated knowledge, backed up by honed skills to fetch effective business.

Today, NJ Gurukul has emerged as the leading provider of training solutions

with a considerable contribution to the financial advisory industry. It is a silent

worker, now being noticed not only by NJ Network Partners but even by

students looking forward for steering to be successful, by corporate to bring

shine to their employees, by industries to become more functional and by all to

learn correct English through NJ Gurukul's classroom as well as the Distance

Learning Programs, English for all.


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Finlogic Technologies India Pvt Ltd (previously Finlogic India) was started in

2000 with a view to develop software applications to support the growing

(financial services) distribution business. The company possesses strong

domain knowledge in the investment distribution space, as the company was

promoted by NJ India Invest Pvt Ltd, a leading investment distribution

company.

Technology has traditionally been NJ's key strength. Our offering on the

technological front is unmatched, vibrant, and comprehensive in nature. Our

focus & commitment on technology can be gauged from the fact that we have

set-up distinct entity with a very strong, talented work-force for the sole

purpose of providing the best to NJ in terms of technology and support.

Finlogic Technologies (India) Pvt. Ltd. does all the development & support

work in-house on a continuous basis. It has successfully developed &

implemented a powerful support system for the mutual fund distribution

business at NJ with a provision for integrating the same with other investment

products as well as the financial accounting system.

At NJ India Realty, company understands the challenges in shaping reality

from your realty aspirations. With companys fully integrated end-to-end

service model it offers solutions that would enable you to meet the challenges

of development, fortify your own transformation and exploit the opportunities

available in the Indian realty sector. At NJ India Realty they have made

backward & forward integration of value-added services to the core-realty

services which lie at the heart of the business. The services at NJ India Realty

enable continual partnership right from idea to its reality, encompassing all

functional & operational undertakings.


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NJ INDIAINVESTS ACHIEVEMENT:-

NJIndia Invest is a growing company that can be very well proved from the

below achievements.

They have gained a dominant place in the Indian mutual fundsdistribution business

Certified by the Association of Mutual Funds as AMFI registeredMutual Funds advisors

Won the Pru Chairmans award twice in the year 2000 and 2002 foroutstanding performance in the scheme of Prudential ICICI Mutual

Fund. The chairman, prudential, presented the award at London both the

times.

Won many other awards and certificates for outstanding performance invarious Mutual Funds schemes.

It has acquired about 15 to 17% share of total mutual fund business ofGujarat.

Received the award for the year 2003-04 from HDFC mutual fund forhighest selling of mutual funds. NJs director at Scotland received the

award.

Assets under Management (AUM) more than 950 cores. NJ India Invest has tie up with almost 25 AMC out of 37 operating in

the Mutual Fund industry.


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Thinking at NJ India Invest

To provide reliable information

To honor our service commitments

To maintain all record in privacy

To preserve client capital

To provide appropriate feedback

To guide their future investment

To restructure investment plan on demand

Finally to provide complete solution & peace of mind on the investment front


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VISION AND MISSION STATEMENT OF NJ INDIA

INVEST

VISION STATEMENT

To be the leader in our sector of business through: Total

Customer Satisfaction, Commitment to Excellence,

Determination to succeed and finally to Provide Peace of Mind

On investment front to society.

MISSION STATEMENT

Ensure creation of value by providing a differentiating edge to

The activities of our customers, investors and distributors

Through technnovative solutions while fulfilling our obligation

And maintaining high professional and ethical standards along

With service standards


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AMCS WITH NJ INDIAINVEST:

Alliance Capital Mutual Fund

Birla Mutual Fund

Cholamandalam Cazenove Mutual Fund

DSP Merrill Lynch Mutual Fund

Dundee Mutual Fund

Escorts Mutual Fund

First India Mutual Fund

Franklin Templeton Mutual Fund

Pioneer ITI

HDFC Mutual Fund

HSBC Mutual Fund

IDBI Principal

IL & FS Mutual Fund

ING Savings Trust

JM Mutual Fund

LIC Mutual Fund
http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=D0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=D0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=D0003http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=D0003http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=E0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=E0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=F0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=F0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=T0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=T0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=K0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=H0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=H0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0004http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0004http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0003http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0003http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=J0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=J0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=L0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=L0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=L0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=J0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0003http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0004http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=H0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=K0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=T0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=F0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=E0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=D0003http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=D0002


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Prudential ICICI Mutual Fund

Reliance Capital

SBI Mutual

Standard Chartered Mutual Fund

Sun F&C Mutual Fund

Sundaram Mutual Fund

Tata Mutual

Unit Trust Of India

Zurich India Mutual Fund
http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=P0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=P0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=R0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=R0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=S0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=S0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=A0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=A0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=S0004http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=S0004http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=S0003http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=S0003http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=T0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=T0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=U0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=U0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=U0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=T0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=S0003http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=S0004http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=A0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=S0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=R0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=P0001


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SWOT ANALYSIS

STRENGHTHS

NJ India Invest is a dominant player in the Indian Mutual Fundsdistribution business with over a decade of experience.

NJ can also provide personal websites to its clients. NJ India Invest has about 16% to 18.5% share of total Mutual Fund

business of Gujarat.

NJ India Invest has Assets Under Management (AUM) more than 950cores.

NJ India Invest has tie up with almost 25 AMC out of 37 operating inthe Mutual Fund industry.

NJ India Invest provides best services in the industry using cutting ageof technology.

WEAKNESES

There are some complaints from advisors side regarding irregulardispatchment of commission.

NJ India Invest, in some cases, cant convince their clients about thehelpfulness of the services provided by the company.


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OPPORTUNITY

NJ India Invest has great opportunities in front of it as the Mutual fundhas not penetrated in the Indian financial market.

NJ India Invest can utilize the dominant position it has and optimallyuse the huge network of its partners.

NJ India Invest can use its network of partners in selling Insurance;even company can jump in to share trading business.

THREATS

NJ India Invest is facing competition from the new entrant likeAnagram Security, Karvey Security and many new and local players.

Company also faces competition from IFA who are doing direct

business in the AMC.


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3.1) INTRODUCTION OF MUTUAL FUNDS3.2) HISTORY OF MUTUAL FUNDS IN

INDIA

3.3) PHASES OF MUTUAL FUNDS ININDIA

3.4) RISK ASSOCIATED WITH MUTUALFUND

3.5) WHAT IS MUTUAL FUND?3.6) STRUCTURE OF MUTUAL FUNDS3.7) TYPES OF MUTUAL FUNDS3.8) ADVANTAGES OF MUTUAL FUNDS


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INTRODUCTION OF MUTUAL FUND

A Mutual Fund is a trust that pools the savings of a number of investors who

share a common financial goal. The money thus collected is invested by the

fund manager in different types of securities depending upon the objective of

the scheme. These could range from shares to debentures to money market

instruments. The income earned through these investments and the capital

appreciation realized by the scheme is shared by its unit holders in proportion

to the number of units owned by them (pro rata). Thus a Mutual Fund is the

most suitable investment for the common man as it offers an opportunity to

invest in a diversified, professionally managed portfolio at a relatively low

cost. Anybody with an investible surplus of as little as a few thousand rupees

can invest in Mutual Funds. Each Mutual Fund scheme has a defined

investment objective and strategy.

A mutual fund is the ideal investment vehicle for todays complex and

modern financial scenario. Markets for equity shares, bonds and other fixed

income instruments, real estate, derivatives and other assets have become

mature and information driven. Price changes in these assets are driven by

global events occurring in faraway places. A typical individual is unlikely to

have the knowledge, skills, inclination and time to keep track of events,

understand their implications and act speedily. An individual also finds it

difficult to keep track of ownership of his assets, investments, brokerage dues

and bank transactions etc.

A mutual fund is the answer to all these situations. It appoints professionally

qualified and experienced staff that manages each of these functions on a full

time basis. The large pool of money collected in the fund allows it to hire such

staff at a very low cost to each investor. In effect, the mutual fund vehicle

exploits economies of scale in all three areas - research, investments and

transaction processing. While the concept of individuals coming together to

invest money collectively is not new, the mutual fund in its present form is a


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20th century phenomenon. In fact, mutual funds gained popularity only after

the Second World War. Globally, there are thousands of firms offering tens of

thousands of mutual funds with different investment objectives. Today, mutual

funds collectively manage almost as much as or more money as compared to

banks.

A draft offer document is to be prepared at the time of launching the fund.

Typically, it pre specifies the investment objectives of the fund, the risk

associated, the costs involved in the process and the broad rules for entry into

and exit from the fund and other areas of operation. In India, as in most

countries, these sponsors need approval from a regulator, SEBI (Securities

exchange Board of India) in our case. SEBI looks at track records of the

sponsor and its financial strength in granting approval to the fund for

commencing operations.

A sponsor then hires an asset management company to invest the funds

according to the investment objective. It also hires another entity to be the

custodian of the assets of the fund and perhaps a third one to handle registry

work for the unit holders (subscribers) of the fund.

In the Indian context, the sponsors promote the Asset Management

Company also, in which it holds a majority stake. In many cases a sponsor can

hold a 100% stake in the Asset Management Company (AMC). E.g. Birla

Global Finance is the sponsor of the Birla Sun Life Asset Management

Company Ltd., which has floated different mutual funds schemes and also acts

as an asset manager for the funds collected under the scheme.


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DEFINITION OF MUTUAL FUND?

Mutual funds are investment companies whose job is to handle their

investors money by reinvesting it into stocks, bonds, government

securities or a combination of two things

A Mutual Fund is a trust that pools the savings of a number of investors who

share a common financial goal. The money thus collected is then invested in

capital market instruments such as shares, debentures and other securities. The

income earned through these investments and the capital appreciation realized

is shared by its unit holders in proportion to the number of units owned by

them. Thus a Mutual Fund is the most 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. The flow chart below describes

broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart


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HISTORY OF MUTUAL FUNDS IN INDIA:

The end of millennium marks 36 years of existence of mutual funds in this

country. The ride through these 36 years is not been smooth. Investor opinion

is still divided. While some are for mutual funds others are against it.

UTI commenced its operations from July 1964. The impetus for establishing

a formal institution came from the desire to increase the propensity of the

middle and lower groups to save and to invest. UTI came into existence during

a period marked by great political and economic uncertainty in India. With war

on the borders and economic turmoil that depressed the financial market,

entrepreneurs were hesitant to enter the capital market.

The already existing companies found it difficult to raise fresh capital, as

investors did not respond adequately to new issues. Earnest efforts were

required to canalize savings of the community into productive uses in order tospeed up the process of industrial growth.

The Finance Minister, T.T. Krishnamachari set up the idea of a unit trust

that would be "open to any person or institution to purchase the units offered

by the trust. However, this institution as we see it, is intended to cater to the

needs of individual investors, and even among them as far as possible, to those

whose means are small"

His ideas took the form of the Unit Trust of India, an intermediary that

would help fulfill the twin objectives of mobilizing retail savings and investing

those savings in the capital market and passing on the benefits so accrued to the

small investors.

UTI commenced its operations from July 1964 "with a view to encouraging

savings and investment and participation in the income, profits and gains

accruing to the Corporation from the acquisition, holding, management and

disposal of securities." Different provisions of the UTI Act laid down the

structure of management, scope of business, powers and functions of the Trust

as well as accounting, disclosures and regulatory requirements for the Trust.

One thing is certain - the fund industry is here to stay. The industry was

one-entity show till 1986 when the UTI monopoly was broken when SBI and

Can bank mutual fund entered the area. This was followed by the entry of

others like BOI, LIC, GIC, etc. sponsored by public sector banks. Starting with

an asset base of Rs 0.25 in 1964 the industry has grown at a compounded

average growth rate of 26.34% to its current size of Rs 1130. The period 1986-

1993 can be termed as the period of public sector mutual funds (PMFs).


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PHASES OF MUTUAL FUND IN INDIA (1964-2000)

The mutual fund industry can be broadly put into four phases according to

the development of the sector. Each phase is briefly described as under.

FIRST PHASE - 1964-87Unit Trust of India (UTI) was established on1963 by an Act of Parliament. It was set up by the Reserve Bank of

India and functioned under the Regulatory and administrative control of

the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and

the Industrial Development Bank of India (IDBI) took over the

regulatory and administrative control in place of RBI. The first scheme

launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had

Rs.6,700 cores of assets under management.

SECOND PHASE - 1987-1993 (ENTRY OF PUBLIC SECTORFUNDS)Entry of non-UTI mutual funds. SBI Mutual Fund was the first

followed by Canbank Mutual Fund (Dec 87), Punjab National Bank

Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of

India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC in 1989 and

GIC in 1990. The end of 1993 marked Rs.47,004 as assets under

management.

THIRD PHASE - 1993-2003 (ENTRY OF PRIVATE SECTORFUNDS) with the entry of private sector funds in 1993, a new era

started in the Indian mutual fund industry, giving the Indian investors a

wider choice of fund families. Also, 1993 was the year in which the first

Mutual Fund Regulations came into being, under which all mutual

funds, except UTI were to be registered and governed. The erstwhile

Kothari Pioneer (now merged with Franklin Templeton) was the first

private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The

industry now functions under the SEBI (Mutual Fund) Regulations

1996.The number of mutual fund houses went on increasing, with many

foreign mutual funds setting up funds in India and also the industry has

witnessed several mergers and acquisitions.


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FOURTH PHASE - SINCE FEBRUARY 2003This phase had bitterexperience for UTI. It was bifurcated into two separate entities. One is

the Specified Undertaking of the Unit Trust of India with AUM ofRs.29, 835 cores (as on January 2003). The Specified Undertaking of

Unit Trust of India, functioning under an administrator and under the

rules framed by Government of India and does not come under the

purview of the Mutual Fund Regulations. The second is the UTI Mutual

Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with

SEBI and functions under the Mutual Fund Regulations. With the

bifurcation of the erstwhile UTI which had in March 2000 more than

Rs.76, 000 cores of AUM and with the setting up of a UTI Mutual Fund,

conforming to the SEBI Mutual Fund Regulations, and with recentmergers taking place among different private sector funds, the mutual

fund industry has entered its current phase of consolidation and growth.

As at the end of September, 2004, there were 29 funds, which manage

assets of Rs.153108 cores under 421 schemes.


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FIFTH PHASE V. GROWTH AND CONSOLIDATION - 2004ONWARDS The industry has also witnessed several mergers and

acquisitions recently, examples of which are acquisition of schemes of

Alliance Mutual Fund by Birla Sun Life, Sun F&C Mutual Fund and

PNB Mutual Fund by Principal Mutual Fund. Simultaneously, more

international mutual fund players have entered India like Fidelity,

Franklin Templeton Mutual Fund etc. There were 29 funds as at the end

of March 2006. This is a continuing phase of growth of the industry

through consolidation and entry of new international and private sector

players.


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RISKS ASSOCIATED WITH MUTUAL FUND:

THERISK-RETURN TRADE-OFF

The most important relationship to understand is the risk-return trade-off.

Higher the risk greater the returns/loss and lower the risk lesser the returns/loss.

Hence it is up to you, the investor to decide how much risk you are willing to

take. In order to do this you must first be aware of the different types of risks

involved with your investment decision.

MARKET RISK:

Sometimes prices and yields of all securities rise and fall. Broad outside

influences affecting the market in general lead to this. This is true, may it be

big corporations or smaller mid-sized companies. This is known as Market

Risk. A Systematic Investment Plan (SIP) that works on the concept of

Rupee Cost Averaging (RCA) might help mitigate this risk
http://www.hdfcfund.com/fundschool/financial1Show.jsphttp://www.hdfcfund.com/fundschool/financial1Show.jsp


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CREDIT RISK:

The debt servicing ability (may it be interest payments or repayment of

principal) of a company through its cash flows determines the Credit Risk

faced by you. This credit risk is measured by independent rating agencies like

CRISIL who rate companies and their paper. An AAA rating is considered

the safest whereas a D rating is considered poor credit quality. A well-

diversified portfolio might help mitigate this risk.

INFLATION RISK:

Things you hear people talk about: Rs. 100 today is worth more than Rs. 100

tomorrow. Remember the time when a bus ride costed 50 paisa? The root

cause, Inflation. Inflation is the loss of purchasing power over time. A lot of

times people make conservative investment decisions to protect their capital

but end up with a sum of money that can buy less than what the principal could

at the time of the investment. This happens when inflation grows faster than the

return on your investment. A well-diversified portfolio with some investment

in equities might help mitigate this risk.

INTEREST RATE RISK:

In a free market economy interest rates are difficult if not impossible to predict.

Changes in interest rates affect the prices of bonds as well as equities. If

interest rates raise the prices of bonds fall and vice versa. Equity might be

negatively affected as well in a rising interest rate environment. A well-

diversified portfolio might help mitigate this risk.


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POLITICAL/GOVERNMENT POLICY RISK:

Changes in government policy and political decision can change the investment

environment. They can create a favorable environment for investment or vice

versa.

LIQUIDITY RISK:

Liquidity risk arises when it becomes difficult to sell the securities that one has

purchased. Liquidity Risk can be partly mitigated by diversification, staggering

of maturities as well as internal risk controls that lean towards purchase of

liquid securities.


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WHAT IS MUTUAL FUND?

A Mutual Fund is a common pool of money in to which investors with

common investment objective place their contributions that are to be invested

in accordance with the stated investment objective of the scheme. The

investment manager would invest the money collected from the investor in to

assets that are defined/ permitted by the stated objective of the scheme. For

example, an equity fund would invest equity and equity related instruments and

a debt fund would invest in bonds, debentures, gilts etc.

Investors

Mutual Fund Co.

(Pool of money)

Market(Fluctuates)

Profit/Loss from

individual of

Investing a number of

stocks/bonds

Invest/pool their money Profit/Loss from

portfolio of investments


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STRUCTURE OF MUTUAL FUND

1) Sponsor:Sponsor is the person who acting alone or in combination with another body

corporate establishes a mutual fund. Sponsor must contribute at least 40% of

the net worth of the Investment Managed and meet the eligibility criteria

prescribed under the Securities and Exchange Board of India (Mutual Funds)

Regulations, 1996.The Sponsor is not responsible or liable for any loss or

shortfall resulting from the operation of the Schemes beyond the initial

contribution made by it towards setting up of the Mutual Fund.

SEBI

AMC

Fund Manager

Mutual Fund

Schemes

Investor

SponsorTrustee

Operations

Market/Sales Market/Sales

Distributor


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2) Trust:The Sponsor constitutes the Mutual Fund as a trust in accordance with the

provisions of the Indian Trusts Act, 1882. The trust deed is registered under the

Indian Registration Act, 1908.

3) Trustee:Trustee is usually a company (corporate body) or a Board of Trustees (body

of individuals). The main responsibility of the Trustee is to safeguard the

interest of the unit holders and inter alia ensure that the AMC functions in the

interest of investors and in accordance with the Securities and Exchange Board

of India (Mutual Funds) Regulations, 1996, the provisions of the Trust Deed

and the Offer Documents of the respective Schemes. At least 2/3rd directors of

the Trustee are independent directors who are not associated with the Sponsor

in any manner.

4) Asset Management Company (AMC):The Trustee as the Investment Manager of the Mutual Fund appoints the

AMC. The AMC is required to be approved by the Securities and Exchange

Board of India (SEBI) to act as an asset management company of the Mutual

Fund. At least 50% of the directors of the AMC are independent directors who

are not associated with the Sponsor in any manner. The AMC must have a net

worth of at least 10 core at all times.

5) Registrar and Transfer Agent:The AMC if so authorized by the Trust Deed appoints the Registrar and

Transfer Agent to the Mutual Fund. The Registrar processes the application

form, redemption requests and dispatches account statements to the unit

holders. The Registrar and Transfer agent also handles communications with

investors and updates investor records.


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TYPES OF MUTUAL FUNDS

In the investment market, one can find a variety of investors with different

needs, objectives and risk talking capacities.

On the basis of

Execution and

Operation

On the basis of yield

and investment pattern

Mutual Fund

Close -

Ended

Open -

Ended

Income Fund

Growth Fund

Balance Fund

Specialized Fund

Money Market

Taxation Fund


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A.On the basis of Execution and Operation1) Close-ended Funds:

The unit capital of a close-ended product is fixed as it makes a one-time sale

of fixed number of units. These schemes are launched with an initial public

offer (IPO) with a stated maturity period after which the units are fully

redeemed at NAV linked prices. In the interim, investors can buy or sell units

on the stock exchanges where they are listed. Unlike open-ended schemes, the

unit capital in closed-ended schemes usually remains unchanged. After an

initial closed period, the scheme may offer direct repurchase facility to the

investors. Closed-ended schemes are usually more illiquid as compared to

open-ended schemes and hence trade at a discount to the NAV. This discount

tends towards the NAV closer to the maturity date of the scheme.

Features:

The period and/or the target amount of the fund are definite and fixedbeforehand. Once the period is over and/or the target is reached, the door is closedfor the investors. They cannot purchase any more units.

These units are publicly traded through stock exchange and generally,there is no repurchase facility by the fund.

The main objective of this fund is capital appreciation. The whole fund is available for the entire duration of the scheme andthere will not be any redemption demands before its maturity.

At the time of redemption, the entire investment pertaining to a closed-end scheme is liquidated and the proceeds are distributed among the unit

holders.


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2) Open-ended Funds:An open-end fund is one that is available for subscription all through the

year. These do not have a fixed maturity. Investors can conveniently buy and

sell units at Net Asset Value ("NAV") related prices. The key feature of open-

end schemes is liquidity.

Features:

There is complete flexibility with regard to one's investment ordisinvestment.

These units are not publicly traded but the Fund is ready to repurchasethem and resell them at any time.

The investor is offered install liquidity in the sense that the unit can besold on any working day to the Fund.

The main objective of this fund is income generation. The inventors getdividend, right or bonuses as rewards for their investment.

Generally, the listed prices are close to their Net Asset Value. The Fundfixes a different price for their purchases and sales.


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B.On the basis of yield and investment pattern

1) Income Funds: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 and Government securities. Income Funds are

ideal for capital stability and regular income.

Features:

The investor is assured of regular income at periodic intervals, saysHalf- yearly or years and so on.

The main objective of this type fund is to declare regular dividends andnot capital appreciation.

The pattern of investment is oriented towards high and fixed incomeyielding securities like debentures, bonds etc.

This is best suited to the old and retired people who may not have anyregular income.

It concerns itself with short run gains only.


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2) Growth Funds:The aim of growth funds is to provide capital appreciation over the medium

to long- term. Such schemes normally invest a majority of their corpus in

equities. It has been proven that returns from stocks, have outperformed most

other kind of investments held over the long term. Growth schemes are ideal

for investors having a long-term outlook seeking growth over a period of time.

Features:

The Growth oriented fund aims at meeting the investors' need for capitalappreciation.

The Investment strategy therefore, conforms to the Fund objective byinvesting the fund predominantly on equities with high growth potential.

The Fund tries to get capital appreciation by taking much risk andinvesting on risk bearing equities and high growth equity shares.

The Fund may declare dividend, but its principal objective is onlycapital appreciation.

This is best suited to salaried and business people who have high riskbearing capacity and ability to defer liquidity. They can accumulate

wealth for future needs.

3) Balance 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. In a rising stock market, the NAV of these schemes may not

normally keep pace, or fall equally when the market falls. These are ideal for

investors looking for a combination of income and moderate growth.

4)Specialized Funds:


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Index schemes:The primary purpose of an Index is to serve as a measure of the

performance of the market as a whole, or a specific sector of the market. An

Index also serves as a relevant benchmark to evaluate the performance of

mutual funds. Some investors are interested in investing in the market in

general rather than investing in any specific fund. Such investors are happy to

receive the returns posted by the markets. As it is not practical to invest in each

and every stock in the market in proportion to its size, these investors are

comfortable investing in a fund that they believe is a good representative of the

entire market. Index Funds are launched and managed for such investors. An

example to such a fund is the HDFC Index Fund.

5) Tax Saving schemes:Investors (individuals and Hindu Undivided Families HUFs) are being

encouraged to invest in equity markets through Equity Linked Savings Scheme

(ELSS) by offering them a tax rebate. Units purchased cannot be assigned /transferred/ pledged / redeemed / switched out until completion of 3 years

from the date of allotment of the respective Units.

6) 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.


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Advantages of Mutual Fund:-

Mutual funds serve as a link between the saving public and the capital

markets. They mobilize savings from the investors and bring them to borrowers

in the capital markets. Today mutual funds are fast emerging as the favoriteinvestment vehicle because of the many advantages they have over other forms

and avenues of investing. The major advantages offered by mutual funds to all

investors are:

1. Professional Management:-Mutual Funds provide the services of experienced and skilled

professionals, backed by a dedicated investment research team that

analyses the performance and prospects of companies and selects suitable

investments to achieve the objectives of the scheme.

2. Diversification:-Mutual Funds invest in a number of companies across a broad cross-

section of industries and sectors. This diversification reduces the risk

because seldom do all stocks decline at the same time and in the same

proportion. You achieve this diversification through a Mutual Fund with

far less money than you can do on your own.

3. Convenient Administration:-Investing in a Mutual Fund reduces paperwork and helps you avoid

many problems such as bad deliveries, delayed payments and follow up

with brokers and companies. Mutual Funds save your time and make

investing easy and convenient.

4. Return Potential:-Over a medium to long-term, Mutual Funds have the potential to

provide a higher return as they invest in a diversified basket of selectedsecurities.

5. Low Cost:-Mutual Funds are a relatively less expensive way to invest compared to

directly investing in the capital markets because the benefits of scale in

brokerage, custodial and other fees translate into lower costs for investors.

6. Liquidity:-


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In open-end schemes, the investor gets the money back promptly at net

asset value related prices from the Mutual Fund. In closed-end schemes,

the units can be sold on a stock exchange at the prevailing market price or

the investor can avail of the facility of direct repurchase at NAV related

prices by the Mutual Fund.

7. Transparency:-You get regular information on the value of your investment in addition

to disclosure on the specific investments made by your scheme, the

proportion invested in each class of assets and the fund manager's

investment strategy and outlook.

8. Flexibility:-Through features such as regular investment plans, regular withdrawal

plans and dividend reinvestment plans, you can systematically invest or

withdraw funds according to your needs and convenience.

9. Affordability:-Investors individually may lack sufficient funds to invest in high-grade

stock. A mutual fund because of its large corpus allows even a small

investor to take the benefit of its investment strategy.

10.Choice of schemes:-Mutual Funds offer a family of schemes to suit your varying needs over

a lifetime.

11.Well Regulated:-All Mutual Funds are registered with SEBI and they function within the

provision of strict regulations designed to protect the interests of investors.

The operations of Mutual Funds are regularly monitored by SEBI.


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3.1) RESEARCH PROBLEM3.2) RESEARCH DESIGN3.3) SORUCES OF DATA

COLLECTION

3.4) SAMPLING3.5) SAMPLE STUDY3.6) LIMITATION OF STUDY


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RESEARCH METHODOLOGY:

Research methodology gives students the necessary training in gathering

materials and arranging them, participation in the field work when required and

techniques for the collection of data appropriate to a particular problem in the

use of statistics questionnaire and controlled experimentation and in recording

evidence, sorting it out and interpreting it thereafter.

RESEARCH PROBLEM:

Role Of Mutual Fund Advisor In NJ India Invest

RESEARCH DESIGN:

Research design constitutes the blueprint for the collection, measurement and

analysis of data. Research design aids the research in the allocation of the limit

research by posing crucial choices in methodology. Research design is the plan

and structure of investigation so conceived as to obtain answer to research

questions. The plant is overall scheme or program of the research. It includes

an outline of what investigator will do from return hypothesis and their

operational implication to the final analysis of data. In research design, there

are three types of studies:-

Exploratory Study

Descriptive Study

Causal Study

Descriptive Study:

In this research, I have used descriptive study. Descriptive study describe about

Who, What, When, Where, How are the questions for researcher to find their

answers during the study. A descriptive study may be simple or complex. I

have needed to find that all answers of these questions which come in

descriptive study.


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SOURCES OF DATA COLLECTION:

Primary Source:-

In this research study, survey is primary source of data collection. To measure

the awareness among insurance agents about mutual funds need conduct survey

on insurance agents.

Secondary Source:-

Secondary data sources are like book, magazines, company booklets,bibliographies, newspaper, dictionaries, textbooks, handbooks. Second sub

topic is study on mutual fund of my research study. I select the AMFI text

book, financial newspaper; NJ Mutual funds information booklets, NJs

magazines for the collection of secondary data. Also the INTERPRETATION

of the primary data which collected from the survey.

SAMPLING:

The basic idea of sampling is that by selecting some of the elements in a

population, we may draw conclusions about the entire population. A

population element is the Mutual Fund advisor connected with NJ INDIA

Invest Pvt. Ltd.


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SAMPLE STUDY:

Sample Size:-

Sample size is selected portion of all the population. My study was conducted

in Surat. There is more than500 Mutual Fund advisor connected with NJ, at

surat (Majura gate). From all of them, I have selected sample size of 50 MF

Advisor of NJ.

Sample unit:-

Sample unit in this study only Mutual Fund Advisors of NJ, because my

research study was conducted only on Mutual Fund Advisors.


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LIMITATION OF STUDY:

As the data available to me has been taken from the primary sources

(like questionnaire survey).

Because of the time limitation, it may be possible that some important

data are left out.

The data which are very useful for the analysis are lacking in this

Project or contract that are still in negotiation or any kind of deal which

is in-process. Here that is ignored.

As the time available was very less, so analysis has been done only of

50 sample size survey. This may led to misinterpretation of the study.


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INTERPRETATION OF QUESTIONNAIRE

1. For how long have you been associated as a mutual fund advisor?

Year Advisor

< 1 13

1-3 20

3-5 10

>5 7

INTERPRETATION

In the above Bar Chart we can see that 26% of the total respondents are

having experience of below year, 40% of the total respondents are having

experience of1 to 3 years, 20% of the total respondents are having experience

of3 to 5 and 14% of the total respondents are having experience more than 5

years

0

5

10

15

20

25

< 1 1 to 3 3 to 5 >5

F

r

e

q

u

e

n

c

y

Year

Advisor

Advisor


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2. What is the current Asset Under management (AUM) under your

advice in mutual fund?

Rs (Lacs.) Frequency

800 lacks 5

INTERPRETATIONOn the basis of survey researcher has found;

From the above chart we can say that, there is no MF advisor has below 10lacks AUM, on an average MF Advisor has an AUM between 2.5 to 8 Corers.

01

2

6

3

15

18

5

0

2

4

6

8

10

12

14

16

18

20

800 lacks

F

r

e

q

u

e

n

c

y

AUM (Rs.)

AUM under MF


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3. What are the reasons according to you for investors to investing inmutual fund?

Purpose for investment Frequency

Professional Management 4

Portfolio Diversification 18

Risk Reduction 16

Capital Gain 8

Scheme selection 4

INTERPRETATIONOn the basis of survey researcher has found;

We can say that, there is 36 % investor who has preferred Portfolio

diversification and 32% investors preferred Risk Reduction of their investment.

0

5

10

15

20

Professional

Management

Portfolio

Diversification

Risk Reduction Capital Gain Scheme

selection

F

r

e

q

u

n

c

y

Purposeof investment

Reason for Investment


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4. Which type of investment is more advisable to investor for long termgrowth?

Type of investment Frequency

Lump sum 15

SIP (Systematic Investment Plan) 35

INTERPRETATION

In the above pie chart we found that 70% of the total respondents give

advice for investing into systematic investment plan for better earnings 30% of

the total respondents give advice for investing into lump sum for better

earnings.

Lump sum

30%

SIP (Systematic

Investment

Plan)

70%

Types of Investment


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5. Which are the top 5 mutual fund houses do you prefer for yourinvestors?

Scheme Rank

1 2 3 4 5

HDFC 35 10 5 0 0

RELIANCE 20 10 10 5 5

ICICI Prudential 21 8 8 7 6

BIRLA Sun Life 15 17 10 0 0

UTI 10 8 7 6 0

INTERPRETATION

So, we analyze that HDFC on 1st

place because this AMC has given

consistent return to its investor, so MF advisor give first preference to

invest in this AMC.

Reliance AMC performance is considerably reduced by time to time, so

it goes to 2nd

place.

And ICICI has improved the performance over past year so it is come at

3 from 4th

position.

0

5

10

15

20

25

30

35

40

1 2 3 4 5

F

r

e

q

u

n

c

y

Rank

Investors Prefere MF

HDFC

RELIANCE

ICICI Prudential

BIRLA Sun Life

UTI


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6. Which mutual fund scheme is most offered by you to investors ofmutual fund?

RANK 1 2 3 4 5

Large Cap Funds 22 8 8 6 6

Mid Cap Funds 17 12 8 7 6

Balanced funds 12 10 8 11 9

Blend Funds 2 6 10 15 17

INTERPRETATION

Hence, from the analysis we can find that large cap fund is on 1st

preference

and mid cap fund at 2nd

prefer for advisor to invest in MF.

From the above data we can find that large cap fun is more advisable

because in a market scenario when its recession this companies stocks are

correct but speedily gone up in boom period.

And second preference is to mid cap fund because of this company give

better performance than previous year this companies stocks raise better

than large cap company. A small proportion change in net profit does not

lead to increase the stock price of large cap company.

0

5

10

15

20

25

1 2 3 4 5

Fr

e

q

u

n

c

y

Rank

MF Scheme offered by Advisor

Large Cap Funds

Mid Cap Funds

Balanced funds

Blend Funds


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7. Which Alternate option will you suggest to your client if he refuses toinvest in MF?

Other investment option Frequency

POST 4

BANK FD 12

REAL ESTATE 15

GOLD 19

INTERPRETATION

In the basis of survey we can find that the NJ mutual Fund advisor give

most preferred suggestion to investor invest in Gold if his client refuse to

invest in mutual fund and also give suggestion to investor invest in Real

estate.

0

2

4

6

8

10

12

14

16

18

20

POST BANK FD REAL ESTATE GOLD

F

r

e

q

u

e

n

c

y

Other Investment Option

Option suggest by advisor for Investment


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8. Which are the unique services provided from the NJ India invest inmutual fund industry and motivate you to do more business

Services Frequency

Customer Care 9

Technology 7

Online Desk both ( Advisor and client) 14

Training 11

Monthly Meet 9

INTERPRETATION:

From the above diagram researcher interpreted that online

desk service motivates 28% advisor to work with NJ. Training session of

NJ motivate the 22% of advisor. Customer care and monthly meet has same

service provide by Advisor while Technology has least preferred.

0

2

4

6

8

10

12

14

16

Customer Care Technology Online Desk

both ( Advosor

and client)

Training Monthly Meet

F

r

e

q

u

e

n

c

y

Services Provide

Unique Service Provide by NJ


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9. DO you satisfy with the Services provided by NJ India invest Pvt. ltd?Response Frequency

Yes 38

No 12

INTERPRETATION

On the basis of survey research found that 76% of mutual Fund

advisor satisfied with the service provided by NJ and 24% of mutual fund

advisor are not.

Yes

76%

No

24%

Satisfaction Level


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6.1) FINDING6.2) SUGGESTION6.3) CONCLUSION

FINDING & SUGGESTION


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Finding:

There are 22 mutual fund advisors are positive to become a partner ofNJ INDIA INVEST PVT. LTD

To start any type of business you require huge investment but to startbusiness with NJ, if you have only Rs.6500 you start your business.

After joining with NJ mutual fund advisors get their own business code.On that business code they can know about their business and their

clients investment.

Mutual fund advisors takes help of NJ for joint calls and satisfies thecustomer needs.

NJ has multiple mutual fund products so mutual fund advisors canchoose better products and serve to clients.

If mutual fund advisors AUM is above 2 corers, then he can join inrealty without any paying any fees.

Mutual fund advisors give better products to customers for getting betterreturns to customers.

NJ arranges every month meeting for Mutual Fund advisors to providesomething extra ordinary information which helps advisor to increase

their business in MF.

Mutual Fund advisors are helping to clients for financial planningaccording to investors objective.


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SUGGESTION:

Mutual Fund advisors have to analyzed the customers need andaccording to that serve different product.

Most of the advisor says release Trail commission on monthly basis.

Provide more Schemes to advisors for generative more business.

Now onward NJ also provides suggestion to its MF advisor for specificscheme.


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CONCLUSION

This study has made an attempt to understand the financial behavior of

Mutual Fund investors in connection with the preferences of Brand (AMC),

Products, and Channels etc. I observed that many of people have fear of Mutual

Fund. (Because their lack of knowledge about MF and they had not yet set their

life goals.) They need the knowledge of Mutual Fund and its related terms. All

most people do not have invested in mutual fund due to lack of awareness

although they have money to invest. As the awareness increase and income is

growing the number of mutual fund investors are also growing.

Distribution channels are also important for the investment in mutual

fund. Mutual Fund Advisors are the most preferred channel for the investment

in mutual fund. They can change investors mind from one investment option

to others. Many of investors directly invest their money through AMC because

they do not have to pay entry load. Only those people invest directly who know

well about mutual fund and its operations and those have time.


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BIBLIOGRAPHY

WEBSITES:

www.njindiainvest.com www.amfi.com www.mutualfundindia.com www.moneycontrol.com www.mutualfunds.about.com
http://www.njindiainvest.com/http://www.njindiainvest.com/http://www.amfi.com/http://www.amfi.com/http://www.mutualfundindia.com/http://www.mutualfundindia.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.mutualfundindia.com/http://www.amfi.com/http://www.njindiainvest.com/


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ANNEXURE

Questionnaire

Research Problems:-

Role ofMutual Fund Advisor in NJ India Invest

Objective:-

Myself, SACHIN SUGANCHAND BAHETI student of MBA,

studying at D.K.T.E. TEXTILE AND ENGINEERING INSTITUTE.

This survey is conducted for pure study purpose & research.I would be

grateful to you if you provide your honest and valuable opinion. I assure

to you that the information and personal detail which provide by you

should be confidential.

1) For how long have you been associated as a mutual fund advisor withNJ?

0-1year 1-3year

3-5year >5year

2) What is your current Asset Under management (AUM) in mutual fundin NJ India Invest?

800 lacks


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3) What are the reasons according to you for investors to investing inmutual fund?

Professional management Portfolio Diversification

Risk Reduction Capital gain

Scheme selection

4) Which type of investment is more advisable to investor for long termgrowth?

Lump sum SIP (Systematic Investment Plan)

5) Which are the top 5 mutual fund houses do you prefer for yourinvestors?

SchemeRank

1 2 3 4 5

HDFC

RELIANCEICICI Prudential

BIRLA Sun Life

UTI

6) Which mutual fund scheme is most offered by you to investors ofmutual fund?

RANK 1 2 3 4 5

Large Cap FundsMid Cap Funds

Balanced funds

Blend Funds

7) Which Alternate option will you suggest to your client if he refuses toinvest in MF?

POST BANK FD


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REAL ESTATE GOLD

8) Which are the unique services provided from the NJ India invest inmutual fund industry and motivate you to do more business

9) DO you satisfy with the Services provided by NJ INDIA INVEST PVTLTD?

Yes No

If No, Provide your valuable feedback to improve our service:

_________________________________________________________

_________________________________________________________

________________________

Personal Detail of Respondent:-

Name:

E-mail ID..Gender: . Age: ..Occupation: Income (monthly): Phone No: ....

Thank you for giving your valuable time and creatinginterest to fill up questionnaire.

Final Project of Perseption

Documents

Transcript of Final Project of Perseption