A STUDY ON THE WORKING OF

‘Distribution Expansion of IFA Channel and Comparative Analysis of BSL

Frontline and Tax Relief 96 Fund’

A Summer Training Report submitted to

ISME, BANGALORE

in partial fulfillment of the requirements

for the award of the

POST GRADUATE DIPLOMA IN MANAGEMENT

Submitted by

Gangadevi Srinivasrao (141117)

Under the guidance of

Prof. Dr. S. Shyam Prasad, ISME

Mr. Biplab Roy, IFA channel Head, BSLAMC Ltd., Bangalore

International School of Management Excellence

Sy.No.88, Chembanahalli, Near Dommasandra

Circle, Sarjapur Road,

Bangalore-562125

July 2015

July 2015

i

International School of Management Excellence Sy. No. 88, Chembanahalli, Near Dommasandra Circle,

Sarjapur Road,

Bangalore-562125

CERTIFICATE

This is to certify that the Summer Training Report entitled “A Study on the Working

of Distribution Expansion of IFA Channel and Comparative Analysis of BSL Frontline

and Tax Relief 96 Fund, in partial fulfillment of the requirements for the award of

the Post Graduate Diploma in Management is a record of original training undergone

by your G.Srinivasa Rao, 141117 during the year 2014-2016 of his study at the

International School of Management Excellence, Bangalore under my supervision

and the report has not formed the basis for the award of any Degree/Fellowship or

other similar title to any candidate of any University.

Place: Bangalore-125 Signature of Guide Date: xx.07.2015 Prof. Dr. S. Shyam Prasad

International School of Management Excellence

Bangalore

Countersigned (Principal) ISME, Bangalore

ii

“ON COMPANY’S LETTER HEAD”

COMPANY CERTIFICATE

This is to certify that………………(Full Name of the Student), a student of Post

Graduate Diploma in Management, 2014-2016, International School of Management

Excellence, Bangalore bearing Enrolment No.………………., has undertaken the

Summer Internship Training at ………………………………… (Name of the Company)

during…………… to ………………under my supervision & guidance. He / She has

conducted a study & completed the Project on

……………………………………………………………………………….…………

Seal of Organization Signature of the Guide Date: Name of the Guide: Designation: Address:

iii

DECLARATION

I, G.Srinivasa Rao, hereby declare that the Summer Training Report, entitled “A

Study on the Working of Distribution Expansion of IFA Channel and Comparative

Analysis of BSL Frontline and Tax Relief 96 Fund” , submitted to the International

School of Management Excellence, Bangalore in partial fulfillment of the

requirements for the award of the Post Graduate Diploma in Management is a

record of original training undergone by me during the period 23rd March,2015 to

29Th May,2015 under the supervision and guidance of Mr. Biplab Roy Channel Head

IFA, BSLAMC Ltd., Bangalore and Prof. Dr. S. Shyam Prasad, International School of

Management Excellence, Bangalore and it has not formed the basis for the award of

any Degree/Fellowship or other similar title to any candidate of any University.

Place: Bangalore-125 Signature of the Student

Date: xx.07.2015

iv

ACKNOWLEDGEMENT

I am extremely thankful to the Mr. Biplab Roy Channel Head IFA, BSLAMC Ltd.,

Bangalore and Relationship Managers H.K Karthik, Anand.P, Jithesh Rachndra at Birla

Sun life AMC Ltd., for their invaluable support and guidance in the completion of this

project. I wish to thank Mr. Nitin Garg, Director, ISME Bangalore, for enabling this

endeavor. I wish to express my profound gratitude to our Academic Mentor Dr.

Ramesh G. Tagat and our Principal Dr. Swaroop Reddy for their kind permission to

take up this project work. I express my heartfelt thanks to our Gr.Capt.H.S.Mishra

(Retd), COC-Placement and his team at ISME, Bangalore who provided all facilities

for carrying out this project.

I immensely thank our Project Guide Prof. Dr. S. Shyam Prasad, ISME, for his valuable

suggestions and for guiding me throughout the work.

G.Srinivasa Rao

(Reg.No.141117)

v

CONTENTS

CERTIFICATE…………………………………………………………….....i

COMPANY CERTIFICATE…......................................................................ii

DECLARATION…………………………………………………………….iii

ACKNOWLEDGEMNT……………………………….….………..……….iv

LIST OF TABLES, FIGURES & ABBREVIATIONS…............................v

CHAPTER-1………………………………………………………………….1

1.1 Introduction…………………………………………………………….….1

CHAPTER-2……………………………………………………………….....6

2.1 Company Profile………………………………………..………………….6

CHAPTER-3………………………………………………………………….9

3.1 Functioning of Various Deportments………………….…………………..9

CHAPTER-4…………………………….……………………….………….12

4.1 Work Assigned…………………………………………………………...12

4.2 Process Followed…....................................................................................13

CHAPTER-5………………………………......…………………………….22

5.1 Conclusion…..............................................................................................22

5.2 Learning’s………………………………………………………………...22

5.3 Suggestion..................................................................................................22

CHAPTER-6………………………………………………………………...23

6.1 Future Possibilities…………………………….……………………….....23

CHAPTER-7…………………………………….………………………......24

7.1 Bibliography…………………………………….……………………...…24

vi

LIST OF TABLES, FIGURES & ABBREVIATIONS

TABLES

Table 2-1 Details about Birla Sun Life AMC

Table 4-1 work assigned in my internship

Table 4-2 P/B Ratios of top 5 IT companies

Table 4-3 under performing stocks

Table 4-4 over performing stocks

FIGURES

Fig 1-1 Indian Mutual Fund Industry 3-tier structure

Fig 4-1 Tax relief 96 pamphlet cover photo

ABBREVAIATIONS

Abbreviated Form Expanded Form

AMC Asset Management Company

MF Mutual fund

F&O Future and options

AMFI Association of Mutual Funds in India

KIM Key information memorandum

AUM Assets Under Management

CAGR Compounded Annual Growth Rate

vii

ELSS Equity Linked Savings Schemes

GDP Gross Domestic Product

IFA Independent Financial Advisor

KYC Know Your Customer

NAV Net Asset Value

SEBI Securities and Exchange Board of India

SWP Systematic Withdrawal Plan

PAN Permanent Account Number

SIP Systematic Investment Plan

HUF Hindu Undivided Family

ISC Investor Service Centre

KIM Key Information Memorandum

NBFC Non-Banking Finance Company

NEFT National Electronic Funds Transfer

NFO New Fund Offer

1

CHAPTER-1

1.1 Introduction

In a highly competitive job market, we will need to make our self stand out among

others. Since employers prefer to hire graduating seniors who have career-related

work experience, internships can be crucial to our job search. The experience we gain

might not perfectly match our major or our chosen career path, but it will give us

transferrable skills, a notable work ethic, and a competitive edge. Our internship

experience will also expose us to professionalism and allow us to observe how skills

and ideas are applied in the real world.

The summer internship undergone by me mainly on Distribution Expansion of IFA

Channel and Comparative Analysis of BSL Frontline and Tax Relief 96 Fund in Birla

sun life mutual fund from March 23, 2015 to 29 May, 2015

1.1.1 WHAT IS A MUTUAL FUND?

A mutual fund is a legal vehicle that enables a collective group of individuals to:

i. Pool their surplus funds and collectively invest in instruments / assets for a common

investment objective.

ii. Optimize the knowledge and experience of a fund manager, a capacity that

individually they may not have.

iii. Benefit from the economies of scale which size enables and is not available on an

individual basis. Investing in a mutual fund is like an investment made by

acollective.14Fixed Return Options Variable Return Options

1. Post Office 2.Public Provident Fund 3.Bank Fixed Deposits 4.Government

Securities (or) Gilts 5.RBI Taxable Bonds 6.Insurance 7.Company Debentures

8.Company Fixed Deposits 9.Infrastructure Bonds 10.Mutual Funds 11.Shares and

Stock Markets. 12. Gold & Silver 13. Property 14.Foreign Exchange

1.1.2 MUTUAL FUND INDUSTRY

The mutual fund industry in India is one of the emerging industries in India. Today,

the Indian mutual fund industry has 40 players. The number of public sector players

has reduced from 11 to 5. The public sector has gradually receded into the

background, passing on a large chunk of market share to private sector players. The

Association of Mutual Funds in India (AMFI) is the industry body set up to facilitate

the growth of the Indian mutual fund industry. It plays a pro-active role in identifying

steps that need to be taken to protect investors and promote the mutual fund sector. It

2

is noteworthy that AMFI is not a Self-Regulatory Organization (SRO) and its

recommendations are not binding on the industry participants. By its very nature,

AMFI has an advisor’s or a counselor’s role in the mutual fund industry. Its

recommendations become mandatory if and only if the Securities and Exchange

Board of India (SEBI) incorporates them into the regulatory framework it stipulates

for mutual funds. The Indian mutual fund industry follows a 3-tier structure as shown

below:

Fig 1-1: Indian Mutual Fund Industry 3-tier structure

A. Sponsors

They are the individuals who think of starting a mutual fund. The Sponsor approaches

SEBI, the market regulator and also the regulator for mutual funds. Not everyone can

start a mutual fund. SEBI will grant a permission to start a mutual fund only to a

person of integrity, with significant experience in the financial sector and a certain

minimum net worth. These are just some of the factors that come into play.

B. Trust

Once SEBI is satisfied with the credentials and eligibility of the proposed Sponsors,

the sponsors then establish a Trust under the Indian Trust Act 1882. Trusts have no

legal identity in India and thus cannot enter into contracts. Hence the Trustees are the

individuals authorized to act on behalf of the Trust. Contracts are entered into in the

name of the trustees. Once the Trust is created, it is registered with SEBI, after which

point, this Trust is known as the mutual fund.

C. Asset Management Company (AMC)

The Trustees appoint the AMC, which is established as a legal entity, to manage the

investor’s (unit holder’s) money. In return for this money management on behalf of

the mutual fund, the AMC is paid a fee for the services provided. This fee is to be

borne by the investors and is deducted from the money collected from them. The

3

AMC has to be approved by SEBI and it functions under the supervision of its Board

of Directors, and also under the direction of the Trustees and the regulatory

framework established by SEBI. It is the AMC, which in the name of the Trust, that

floats new schemes and manages these schemes by buying and selling securities.

1.1.3 TYPES OF MUTUALFUND SCHEMES

(A) By Structure

Open-Ended Schemes do not have a fixed maturity. You deal with the Mutual Fund

for your investments & Redemptions. The key feature is liquidity. You can

conveniently buy and sell your units at Net Asset Value (NAV) related prices, at any

point of time. Investors can sell their units to the scheme through a re-purchase

transaction at re-purchase price, which is linked to NAV.

Close-Ended Schemes have a stipulated maturity period are called close ended

schemes. You can invest in the scheme at the time of the initial issue and thereafter

you can buy or sell the units of the scheme on the stock exchanges where they are

listed.

Interval Schemes combine the features of open-ended and close-ended schemes. The

periods when an interval scheme becomes open-ended, are called ‘transaction

periods’; the period between the close of a transaction period, and the opening of the

next transaction period is called ‘interval period’. Minimum duration of transaction

period is 2 days, and minimum duration of interval period is 15 days. No

redemption/repurchase of units is allowed except during the specified transaction

period (during which both subscription and redemption may be made to and from the

scheme). Scheme should be compulsorily listed in Stock Exchange during the interval

period.

(B) By Investment Objective

Growth Schemes - Aim to provide capital appreciation over the medium to long

term. These schemes normally invest a majority of their funds in equities and are

willing to bear short term decline in value for possible future appreciation. These

schemes are not for investors seeking regular income or needing their money back in

the short term. Ideal for Investors in their prime earning years.

Income Schemes - Aim to provide regular and steady income to investors. These

schemes generally invest in fixed income securities such as bonds and corporate

debentures. Capital appreciation in such schemes may be limited. Ideal for: Retired

people and others with a need for capital stability and regular income. Ideal for

Investors who need some income to supplement their earnings.

4

Balanced Schemes - Aim to provide both growth and income by periodically

distributing a part of the income and capital gains they earn. They invest in both

shares 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. Ideal for Investors looking for a

combination of income and moderate growth.

Money Market / Liquid Schemes - Aim 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

interbank call money. Ideal for: Corporates and individual investors as a means to

park their surplus funds for short periods. liquid funds can invest in securities having

less than 91 days of maturity. However, securities in the portfolio having maturity

more than 60-days need to be marked to market (MTM).

Tax Saving Schemes (Equity Linked Saving Scheme - ELSS) - These schemes

offer tax deduction up to Rs 1,50,000 per year to the investors and promote long term

investments in equities through Mutual Funds. Ideal for: Investors seeking tax

incentives. These schemes come with a lock in period of 3 years.

RGESS - The Rajiv Gandhi Equity Savings Scheme (RGESS) offers a rebate to first

time retail investors (in equity or mutual funds) with annual income up to Rs. 12

lakhs. The RGESS benefit is linked to amount invested (excluding brokerage,

securities transaction tax, service tax, stamp duty and all taxes appearing in the

contract note). Rebate of 50% of the amount invested up to Rs.50, 000, can be

claimed as a deduction from taxable income. The investment limit of Rs. 50,000 is

applicable for a block of three financial years, starting with the year of first

investment. Investments are subject to a fixed lock-in period of 1 year, and flexible

lock-in period of 2 years.

Other Schemes

Sectoral fund schemes are ideal for investors who have decided to invest in a

particular sector. Thematic funds invest in line with an investment theme. The

investment is more broad-based than a sector fund; but narrower than a diversified

equity fund. Index Fund schemes are ideal for investors who are satisfied with a

return approximately equal to that of an index. These schemes attempt to replicate the

performance of a particular index such as the BSE Sensex, the NSE 50 (NIFTY).

Invests in Index Stocks as per the Weight age. Fund Manager has no role in deciding

on investments. These funds are not designed to outperform the Index and have Low

Running Cost. An Index Fund with Low Tracking Error is a Good Fund.

5

Fixed Maturity Plans - Fixed Maturity Plans (FMPs) are investment schemes floated

by mutual funds and are close ended with a fixed tenure, the maturity period ranging

from one month to three/five years. Fixed maturity plans are a kind of debt fund

where the investment portfolio is closely aligned to the maturity of the scheme. The

objective of such a scheme is to generate steady returns over a fixed-maturity period

and protect the investor against Interest rate fluctuations.

Gold Exchange Traded Funds (GETFs) - Gold Exchange Traded Funds offer

investors an innovative, cost-efficient and secure way to access the gold market. Gold

ETFs are intended to offer investors a means of participating in the gold bullion

market by buying and selling units on the Stock Exchanges, without taking physical

delivery of gold. GOLD ETF invests in 99.99% pure GOLD. NAV of GOLD ETF

depends on Real Prices of GOLD Bullion. Gold funds invest in gold and gold-related

securities.

Fund of Funds (FOFs) - Fund of Funds are schemes that invest in other mutual fund

schemes.

Funds Investing Abroad – Off Shore Schemes - Mutual Funds have been permitted

to invest in foreign securities/ American Depository Receipts (ADRs) / Global

Depository Receipts (GDRs). Some of such schemes are dedicated funds for

investment abroad while others invest partly in foreign securities and partly in

domestic securities. While most such schemes invest in securities across the world

there are also schemes which are country specific in their investment approach.

6

CHAPTER-2

2.1 COMPANY PROFILE

Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment

manager of Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla

Group and the Sun Life Financial Inc. of Canada. The joint venture brings together

the Aditya Birla Group's experience in the Indian market and Sun Life's global

experience.

Established in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading

flagships of Mutual fund business managing assets of a large investor base. Our

solutions offer a range of investment options, including diversified and sector specific

equity schemes, hybrid and monthly income funds, a wide range of debt and treasury

products and offshore funds.

Birla Sun Life Asset Management Company has one of the largest team of research

analysts in the industry, dedicated to tracking down the best companies to invest in.

BSLAMC strives to provide transparent, ethical and research-based investments and

wealth management services.

Table 2-1:- Details about Birla Sun Life AMC

Birla Sun Life AMC

Set up date Dec-23-1994

Incorporation date Sep-051994

Sponsor Aditya Birla financial services private

limited

Trustee Birla sun life Trustee company private

limited

Chairman Mr. Donald Stewart

CEO/MD Mr. A. Balasubramanian

Assets managed (as of 31-

marc-2015)

11,92,336.31 cr

Number of Schemes 172

Number of schemes options 720

7

2.1.1 The Senior Management Team of BSLAMC

Chief Executive Officer: Mr. A Balasubramanian

Co-Chief Investment Officer: Mr. Mahesh Patil

Mr. Maneesh Dangi

Chief Operation Officer: Ms Keerti Gupta

Head--Finance & Accounts: Mr. Parag Joglekar

Head--Compliance & Risk Management: Ms Rama Vasantharajan

Head--Legal, Compliance & Secretarial: Mr Rajiv Joshi

Head--Marketing: Ms Molly Kapoor

Head--Business Development: Mr. Bhavdeep Bhatt

Head--Institutional Sales: Mr. Anil Shyam

Co-Head--Retail Sales & Distribution: Mr. Deepak Gupta

Mr. Sidharth Damani

The Investment Team of BSLAMC

2.1.2 EQUITY TEAM

Mr. Mahesh Patil (Co-Chief Investment Officer)

Mr. Anil Shah (Sr. Fund Manager)

Mr. Ajay Garg (Sr. Fund Manager)

Mr. Satyabrata Mohanty (Head - Mixed Assets)

Mr. Naysar Shah (Fund Manager)

Mr. Vineet Maloo (Fund Manager)

Mr. Milind Bafna (Fund Manager)

Mr. Kunal Sangoi (Fund Manager)

2.1.3 DEBT TEAM

Mr. Maneesh Dangi (Co-Chief Investment Officer)

Mr. Prasad Dhonde (Fund Manager)

Ms. Sunaina da Cunha (Fund Manager)

Mr. Kaustubh Gupta (Fund Manager)

8

Vision

To be a leader and role model in a broad based and integrated financial services

business.

Mission

To consistently pursue investor's wealth optimization by:

Achieving superior and consistent investment results.

Creating a conducive environment to hone and retain talent.

Providing customer delight.

Institutionalizing system-approach in all aspects of functioning.

Upholding highest standards of ethical values at all times.

Values:

Integrity

Commitment

Passion

Seamlessness

Speed

Address:

Birla Sun Life Asset Management Company Ltd.

Birla Sun Life Asset Management Company Limited,

# 9/3, Ground Floor, Nitesh Broadway MG Road,

560001

9

CHAPTER-3

3.1 FUNCTIONING OF VARIOUS DEPARTMENTS

Birla sells products mainly through two types of sales team one is institutional sales

and other one is retail sales. The retail sales department consists IFA channel, The

Banking Channel and ND channel

Fig 3-1: Various Departments in Birla sun life mutual fund

BIRLA SUN LIFE MUTUAL FUND

RETAIL SALES

• IFA channel

• Banking channel

• National Distributor channel

Other Departments

• Investor education

• Sales support

• Operations & customer service

• IT

• Runner boys

INSTITUTIONAL SALES

10

Birla sun life mutual fund gets investment by selling their products through

A. institutional sales

B. Retail sales

3.1.1. Institutional sales:

This institutional sales team gets investment directly from companies. They Deal

directly to the institutions without any broker.

3.1.2. Retail sales:

Under this department there are three channels

1. Individual financial advisor (IFA) channel

2. Banking channel

3. National distributional channel

IFA channel:-

This IFA channel mobilizes Mutual Fund business from their individual investors,

who have already empanelled with Birla sun life mutual fund. These IFA’s can sell

other mutual fund products also.

Banking channel:-

Banks are also intermediaries who distribute fund schemes of different AMCs. At

bank branches, an investor can invest directly into fund schemes that he/she wishes to

invest in. Some of the banks that promote Birla schemes are Standard Chartered, Citi

Bank, HDFC, ICICI etc.This banking channel mobilizes Mutual Fund business from

banks like HDFC, ICICI and etc.

National distributional channel:-

They deal with the distributors who have their presence nationally. A total of about 40

NDs are managed by the Bangalore branch ND channel of BSLAMC Ltd. Few of

them include Aditya Birla Money, Bajaj Capital, ICICI Securities, N.J. India

Investments Pvt. Ltd. etc. The major difference between the ND channel and the other

channels is that the ND channel works on a recommended list of products instead of

all the available products. This is neither IFA nor banking this channel mobilizes

Mutual Fund business from Bajaj capital, icici securities, NJ investments and etc.

11

3.1.3. Other departments:

Investor education:-

This department conducts training sections to give awareness about mutual fund

business. It doesn’t promote any product they just give awareness about mutual fund.

Sales support:-

This department gives support to sales teams. It is also like help desk to customers.

This team works like communication channel between RM’s – customers and RM’s –

pick up boys

These people solve the queries of the distributors that are received through mails and

calls

generate statements and send them to the distributors

prepare various types of MIS reports of Karnataka region

Operations and customer service:-

This department does operations and gives solutions for customer problems

The functions performed by them include:-

receiving the transaction

punching the transaction

verification of the transaction in the system

internal reporting of the transaction

IT:-

Company details have to be secure, this IT guys helps in this one and takes care about

systems and power problems

Runner boys:-

Generally called as a pick up boys they pick the cheques, SIP forms, materials

belongs to Birla from all places in Bangalore

12

CHAPTER-4

4.1 WORK ASSIGNED

Table 4-1: work assigned in my internship

Sl.

No.

Work Assigned

1

Empanelment of new IFAs

2

Contact with non mapped (or) in active IFA’s

3

Report on IT and pharma sectors with analysis of top 5 major players

of each sector

4

Analysis on financial services companies like HDFC, IDFC, Bajaj

finserve

5

Conduct a training section for newly empanelled IFA’s

6

Detail information about P/B ratio

7

Collect detail information about selected companies from industrial

capital goods sector and some mid cap companies

8

Front line equity fund portfolio analysis

9

Invite IFA’s for equity drive program

10

Comparative analysis of the BSL Tax relief 96 and make one page

pamphlet

This above table is showing what all projects I did in my internship. I got opportunity

to do 10 projects in my internship from my channel head and I completed all projects

successfully without any mistake. While doing this projects I fought with so many

problems but the best part is, above 75% work I did because I have learned it in my

finance class.

13

4.2 PROCESS FOLLOWED

4.2.1 Empanelment of new IFAs:

Call those people who got ARN number and not yet empanelled with Birla. Convince

those people to get empanelment with Birla and promote Birla products. In this work I

had to follow up them as per their convince sometimes I have to meet them personally

to get empanelment and sometimes I have to send them soft copy of empanelment

form as well as hardcopy also if they wanted.

4.2.2 Contact with none mapped (or) in active IFA’s

Call those IFA’s who were empanelled but inactive with Birla sun life AMC.

Fix an appointment with those IFA’s

Try to find out problems why they stopped business with Birla

Need to give solutions for those problems and try to convenience them to start

business again with Birla

4.2.3 Report on IT and pharma sectors with analysis of top 5 major players of

each sector

Detail information about each sector and what they do

History of both sectors and key mile stones

How it is performing

What are the reasons if it performs good and vice versa

How it is effecting on Indian economy

In depth study on the top 5 major players in IT and Pharma sectors

IT sector top 5 companies

Infosys

Wipro

Tech Mahindra

TCS

HCL

Pharma sector top 5 companies

Lupin

GlaxoSmithKline

Ranbaxy laboratories

Dr.Reddy laboratories

Sun pharma

14

4.2.4 Analysis on financial services companies like HDFC, IDFC, and Bajaj

finserve

company profile

What all are their products how they sell their products when they established

and what is market capital and EPS and P/E

HDFC (1977) the company provides housing finance to individuals and

corporate for purchase/construction of residential houses. It is one of

largest providers of housing loans in India.

Mortgages

Life insurance

General insurance

Mutual funds

IDFC (1997) India’s leading integrated infrastructure finance players. It is

engaged in providing finance and advisory services for infrastructure

projects, asset management and investment banking

Corporate investment banking

Alternate asset management

Public market asset management

Bajaj Finserv: Bajaj Finserv was formed in April 2007 as a result of its

demerger from Bajaj Auto Limited to further the Group’s interests in

financial services. This demerger enabled Bajaj Finserv to independently

run the core businesses of Lending, Insurance and Wealth Advisory.

Finance

Insurance

Wealth Management

4.2.5 Conduct a training section for newly empanelled IFA’s

Call all the newly empanelled IFA’s and invited them to attend the session. As a

Lerner everyone will face so many problems so we conducted a training program for

them to give explain how to invest, how to pay via SIP

We have sent a welcome mail regarding date and program details. Make a remainder

call to all the newly empanelled IFA’s who confirmed their presence in training

session

4.2.6 Detail information about P/B ratio

Here in this project I have to find what is meaning of P/B ratio and I have to find out

P/B ratios of top IT companies

15

Price to book value (price to equity ratio):-

A ratio used to compare a stocks market value to its book value. P/B =current price of

the stock / latest quarter book value per share. A lower P/B ratio could mean that the

stock is undervalued

It could also mean that something is fundamentally wrong with the company. This

ratio also gives some idea of whether you are paying too much what would be left if

the company went bankrupt immediately

High P/B ratios are usually an indication that investors anticipate that the company

will generate additional profits from its existing level of assets

P/B = stock price/(total assets-intangible assets and liabilities)

The average P/B ratio for banking firms, as of January 2015, is approximately 1.1. i.e.

lower than the overall market average P/B of 2.58. High P/B ratios are usually an

indication that investors anticipate that the company will generate additional profits

from its existing level of assets

Eg: 2.50 is book value. If each share sells on the market at 5 then P/B = 5/2.5 i.e. P/B

is 2

P/B= market capitalization / companies total book value from its balance sheet

Some businesses have very light assets, such as software companies or insurance

agencies. And some companies even have negative equity, so the P/B ratio does not

work well for these types of companies

Table 4-2 P/B Ratios of top 5 IT companies

4.2.7 Detail information about selected companies from industrial capital goods

sector and some mid cap companies

Collect detail information about particular company who are yet unpopular in the

market, information consists of following

Infosys HCL Wipro Tech

Mahindra

Saskenc

&Tec

P/B 5.11 7.02 4.08 6.11 1.52

P/E 18.46 20.2 15.16 18.83 N&M

16

Company profile

Products

Recent news

Stock price

Price movement chart

What all are their competitors

For this information I need to go to their respective website.

Honeywell:-

Honeywell Process Solutions (HPS) is a strong and vibrant business unit serving the

process industries, which include Refining, Oil and Gas, Pulp, Paper & Printing,

Power Generation, Power Transmission & Distribution, Chemicals & Life Sciences,

Petrochemicals, and Metals, Minerals and Mining.

ALSTOM T&D:-

Alstom has been associated with India’s progress for a century and has a long-

standing reputation for providing highly innovative and sustainable solutions for

meeting the country’s energy and transport requirements. The company has full

capabilities in engineering, manufacturing, project management and supply of power

generation, transmission and transport sector requirements. Since its inception in the

year 1911, the company has been at the forefront of leading-edge technology at every

level, serving these three infrastructure markets essential to economic, social and

environmental development of India.

Siemens ltd:-

The Siemens Group in India has emerged as a leading inventor, innovator and

implementer of leading-edge technology enabled solutions operating in the core

business segments of Industry, Energy, Healthcare and Infrastructure and Cities. The

Group’s business is represented by various companies that span across these various

segments.

ABB India ltd:-

ABB is a global leader in power and automation technologies. Our solutions improve

the efficiency, productivity and quality of our customers’ operations while

minimizing environmental impact. Innovation is at the forefront of what we do and

many of the technologies that drive modern society were pioneered by ABB

Schneider electric infrastructure ltd:-

The Company was incorporated on March 12, 2011 in the State of Gujarat as a public

limited company under the Companies Act, 1956, under the name "smart grid

automation distribution and switchgear limited". The name of the Company was

changed to "Schneider Electric Infrastructure Limited" on December 8, 2011

17

Some other mid cap companies

SKS Microfinance Limited:-

SKS Microfinance Limited is among the largest microfinance companies in India

with presence across 16 states covering 1, 00,000 villages.

Karur vysya bank:-

Karur Vysya Bank was started in the year 1916 in Karur, then a small textile town

with a vast agricultural background, by two illustrious sons of the soil – Sri M.A.

Venkatarama Chettiar and Sri Athi Krishna Chettiar..

Cummins India:-

Cummins in India, a power leader, is a group of complementary business units that

design, manufacture, distribute and service engines and related technologies,

including fuel systems, air handling, filtration, emission solutions and electrical power

generation systems.

PTC India Ltd. (PTC):-

The leading provider of power trading solutions in India, was established in the year

1999 as a Government of India initiated Public-Private Partnership, whose primary

focus is to develop a commercially vibrant power market in the country

Ashoka build construction ltd:-

Ashoka Buildcon Ltd. is one of the largest highway developers in the country with an

impressive portfolio of over 28 PPP (Public Private Partnership) projects

Kalpataru Power Transmission Limited:-

KPTL is a Leading Turnkey Player in Power (Transmission - India and Overseas /

Generation / Distribution / Construction), Infrastructure (Oil & Gas Sector / Railways

/ Building & Factories / Roads & Bridges) and Asset Creation (Transmission System /

Roads / Logistics & Warehouse), having footprints across 38 countries.

Motherson Sumi Systems ltd:-

SMG is a global solutions provider offering end-to-end design and manufacturing

solutions to its customers, including product concept and product design, engineering,

prototyping and tool manufacturing product, manufacturing, assembly and the

production of integrated modules.

Aurobindo pharma ltd:-

Founded in 1986 by Mr. P.V. Ramaprasad Reddy, Mr. K. Nityananda Reddy and a

small group of highly committed professionals, Aurobindo Pharma was born off a

vision. The company commenced operations in 1988-89 with a single unit

manufacturing Semi-Synthetic Penicillin (SSP) at Pondicherry.

18

4.2.8 Front line equity fund portfolio analysis

The portfolio of BSL front line equity fund has taken from Birla sun life mutual

fund website

Find out historical stock price from last 3 months, 6 months, and 1 year.

According stock price chart I concluded that which stocks are performing well and

not well.

And then I divided into two types first one is Over performing stocks and second

one is under performing stocks

Portfolio’s of competitive schemes were also taken and matched in order to check

whether they are holding these stocks or not.

In case of they are holding stocks in common than the percentage to net assets was

determined

The duration of stocks holding was also taken into consideration and whether

there has been any change in their allocation

Companies like ITC Ltd , Reliance Industries Ltd , Oil & Natural Gas Corporation

Ltd , Bajaj Auto Ltd , Cairn India Ltd , Bank of India Ltd are not performing well

Table 4-3 under performing stocks

stock name last 1 year

last 6 months

last 3 months

ITC Ltd -4% -10% -4%

Reliance Industries Ltd -12% -9% 1

Oil & Natural Gas Corporation Ltd -6% -12% 0

Bajaj Auto Ltd -2% -22% -1%

Cairn India Ltd -39% -15% -14%

Hindalco Industries Ltd -8% -21% -15%

Bank of India Ltd -10% -22% -6%

sesa sterlite -2% -5% 3%

And over performing stocks are

Lupin Ltd

Motherson Sumi Systems Ltd

Bosch Ltd

Yes Bank Ltd

Britannia Industries Ltd

Bajaj Finance Ltd

Bayer Crop science Ltd

Shree Cement Ltd

Procter & Gamble Hygiene and Health Care Ltd

Hindustan Petroleum Corporation Ltd

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Table 4-4 over performing stocks

stock name 1 Year return

Lupin Ltd 112%

Motherson Sumi Systems Ltd 121%

Bosch Ltd 134%

Yes Bank Ltd 104%

Britannia Industries Ltd 159%

Bajaj Finance Ltd 143%

Bayer Cropscience Ltd 128%

Shree Cement Ltd 114%

Procter & Gamble Hygiene and Health Care Ltd 134%

Hindustan Petroleum Corporation Ltd 111%

And then I did comparative analysis with other AMC companies like

Birla Sun Life Frontline Equity Fund

Franklin India Prima Plus Fund

HDFC Equity Fund

ICICI Prudential Dynamic Fund - Regular Plan

ICICI Prudential Top 200 Fund - Regular Plan

Reliance Top 200 Fund - Retail Plan

SBI Blue chip Fund

4.2.9 Invite IFA’s for equity drive program

Main focus of this equity drive was on MNC Fund and 95 fund. main target was

to activate those IFA’s who were earlier in active but now they are not doing

much business

By offering extra 20 bps brokerage structure to motivate them to give business on

equity drive day

4.3.0 Comparative analysis of the BSL Tax relief 96 and make one page pamphlet

Main objective of this project was to prepare one page pamphlet of Tax relief 96

fund with comparison of other Tax saving schemes

With beautiful growth picture made it

Fig 4-1 Tax relief 96 pamphlet cover photo

10,000

10,42,052

BSL TAX RELIEF 96 HAS GROWN 103^ TIMES IN 18 YEARS

Total dividends paid in last 18 years aggregate to Rs 236.25 per unit

20

Table 4-5 dividend payout table with comparison of other AMC schemes

Table 4-6 Tax Relief 96 ROI comparison with PPF, NSC, FD, BSE 200 index

Table 4-7 Return comparison with other AMC funds

With all these tables and figures I made one pager pamphlet

21

CHAPTER-5

5. CONCLUSIONS, LEARNINGS & SUGGESTIONS

5.1 Conclusion

Empanelment is the process of registering a person to be like an IFA for an AMC.

To be like an IFA that has to clear NISM V-A certification and also registered

with AMFI

Some IFA’s may not do business with AMC due to some brokerage issue or due

to RM is not in touch with them

Some other IFAs may ask about performance of the particular sector or particular

scheme performance so we need know about all performances

Some IFAs may don’t have much experience in this business so we need to train

them to do business more comfortable so we conducted training secession

It is not easy do portfolio analysis of particular scheme because we have to take

into consideration about all stocks of that portfolio. Portfolio means basket of

stocks even if one stock does not give good performance it will effect on portfolio

BSL front line equity fund is 100 % equity fund. While doing this portfolio

analysis I came across those stocks that performed extremely well and also those

stocks that did not perform well

Companies like ITC Ltd, Reliance Industries Ltd , Oil & Natural Gas Corporation

Ltd , Bajaj Auto Ltd , Cairn India Ltd , Bank of India Ltd are not performing well.

5.2 Learning’s

From this internship I learnt about the distribution and expansion of the IFA

channel of BSLAMC Ltd. We got to know how the IFA channel works so as to

bring in business for the company and achieve the targets.

Starting from the empanelment of a new IFA and then moving ahead to building

of a relationship between the RM and the IFA, it is an ongoing process of

following up with the IFA in order to benefit mutually in the process.

I wrote NISM VA module mutual fund exam from this exam I have gained

theoretical knowledge only, from this internship I got practical experience also.

5.3 Suggestion

They could increase the number of RMs so they could encounter their problem,

actually they are giving more preference to distributors they could give more

preference to individual investors also.

22

CHAPTER-6

6.1 FUTURE POSSIBILITIES

The future of Mutual Funds in India suggests that the industry has got huge scopes

of development in the times to come.

The future of Mutual Funds in India is quite bright. Mutual Funds are one of the

most popular forms of investments as these funds are diversified, professionally

managed, and liquid.

In the year 2004, the mutual fund industry in India was worth Rs 1,50,537 crores.

The mutual fund industry is expected to grow at a rate of 13.4% over the next 10

years.

23

CHAPTER -7

7.1 BIBLIOGRAPHY

References

NISM V-A Mutual fund Distribution Module by SEBI

ABC of Mutual Funds by Investors Education BSLAMC

Value guide report

Value research report

Market outlook 2015

Links

www.birlasunlifemutualfund.com

www.sharekhan.com

www.hdfcsecuritiesinstitutionalresearch.com

www.icraresearchservices.com

www.citiresearch.com

www.microsecreseachreport.com

www.moneycontrol.com

www.valueresearch.com

www.topstockreserach.com

www.hdfcfund.com

www.icicipruamc.com

www.franklintempletonindia.com

www.tatamutualfund.com

www.utimf.com

www.sbimf.com

www.economicstime.com

www.axisbank.com

www.hdfc.com]

www.icici.com

24

www.sbi.com

www.itc.com

www.relianceindustries.com

www.ongc.com

www.bajajauto.com

www.carin.com

www.hindalco.com

www.bankofindia.com

www.hdfc.com

www.idfc.com

www.bajajfinserve.com

www.mothersonsumisystemsltd.com

www.aurobindopharmaltd.com

www.cumminsindia.com

www.ptcindia.com

www.ashokabuildcon.com

www.kptltd.com

www.nism.com