CHAPTER 1

PROFILE OF THE COMPANY

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1.1 Introduction

Name of the company : Prudent Corporate Advisory Services Ltd.

Address : 322, Indraprakash Building,

Connaught Place,

New Delhi-110001.

Telephone No. : 011-30421191

Email address : delhicp@prudentcorporate.com,

info@prudentcorporate.com

Website : http://www.prudentcorporate.com/

Type of Company : National

Head Office : 701, Sears Tower,

Gulbai Tekara, Off C.G. Road,

Ahmadabad - 380 006

Telefax : +91-79-26463627, 26402436

Geographical areas of operation : 38 branches in 7 states

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GUJRAT: - Ahmedabad, Surat, Rajkot, Baroda,

Anand, Mehsana

MUMBAI: - Andheri, Fort, Ghatkopar, Kalyan,

Vashi, Thane, Borivali

PUNJAB: - Chandigarh, Jalandhar, Bharuch,

Nadiad, Palanpur, Patan, Bhavnagar, Junagadh

MAHARASHTRA: - Pune, Pimpri, Nagpur, Nasik,

Aurangabad

RAJASTHAN: - Udaipur, Jaipur, Jamnagar,

Navsari, Himmatnagar, Valsad, Vapi DELHI: -

Cannaught Place, Janak puri TAMILNADU: -

Chennai

MADHYA PRADESH: - Indore

1.2 Nature of the Organization

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Prudent CAS (Corporate Advisory Services) Ltd, originally established as Prudent Fund

Manager in 2000, is a registered investment company.

They offer specialized services in the areas of Personal and Corporate Investment

Planning through Mutual Funds, Equities, Derivatives, Third Party Products, Fixed

Income Products and Life/General Insurance.

It focus on each client, build investment strategies tailored to specific client needs, and

regularly review those strategies to increase the likelihood of success. It would like to

know the client’s goals and aspirations. So that it can determine an investing strategy that

helps you achieve your full potential.

Prudent CAS (Corporate Advisory Services) ltd. gives advices to its clients regarding

Financial Planning. The research team provides the desk to the necessary information

regarding the different mutual fund schemes and other investments options like Insurance

etc.

The company sells its financial products through both direct and indirect force. Prudent

Channel since its inception has a strong hold in the market through its Direct Force. It

also has strong hold on the corporate channel also now wants to have a greater reach to

its clients which it has already developed through its 150 certified brokers just the

beginning of the force that will grow in leaps and bounds. The company also has a strong

and efficient research team that is currently working from Gujarat which publishes the

data that helps the clients in assessing their funds performance.

Prudent believes in understanding the customer needs and offering the product that can

match his requirement (marketing) as against just selling what product is already

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available. Owing to the inherent professional expertise we first study and understand the

investment requirements and circumstances. Our experts assess the investors' need and

their risk profile. Once the entire comparative analysis is done then the best possible

option is advised to the investors. The best possible option provides the proper asset

allocation to various asset classes and also the estimated risk involved. This helps us to

provide our clients an optional basket of funds rather than selling the typical available

funds. This approach lets us set our focus on the quality work rather than the just the

quantity.

Prudent is a service based distribution company mainly operates in functional areas of

finance, marketing & sales for financial products. Company is in the business of

distribution of and marketing research of financial products like mutual funds, insurance,

wealth management, stock broking, real estate.

1.3 Company’s vision and mission

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Vision : Providing Professional services in area of Personal and Corporate Investment

keeping in view the requirements of the client.

Mission : To help Investor in their Wealth Creation by advising them to invest in the best

products.

1.4 Product Range of the Company

Prudent CAS Ltd plans the financial needs in customized way. It analyses market trend

and investment buckets in turn to have maximum returns. Prudent CAS Ltd serves with

array of financial planning.

Spectrum of Products in which Prudent has an expertise:

1) Mutual Funds.

2) Investment Consultancy.

3) Equity and Derivatives broking.

4) RBI Relief funds and Infrastructure Bonds.

5) Life and general Insurance.

6) Fixed Deposits (fixed income products)

7) Real Estate

8) Third party products

Mutual funds

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A mutual fund is just the connecting bridge or a financial intermediary that allows a

group of investors to pool their money together with a predetermined investment

objective. The mutual fund will have a fund manager who is responsible for investing the

gathered money into specific securities (stocks or bonds). When you invest in a mutual

fund, you are buying units or portions of the mutual fund and thus on investing becomes

a shareholder or unit holder of the fund.

Mutual funds are considered as one of the best available investments as compare to others

they are very cost efficient and also easy to invest in, thus by pooling money together in a

mutual fund, investors can purchase stocks or bonds with much lower trading costs than

if they tried to do it on their own. But the biggest advantage to mutual funds is

diversification, by minimizing risk & maximizing returns.

Fig 1.1: how mutual funds work

Investment consultancy

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Managing your money and planning your financial security are no easy tasks. Time

constraints, tax laws that are constantly changing and a confusing assortment of

investment options - all present road blocks for most people seeking to manage their

finances in a profitable way.

As an experienced private investment advisor, we are able to offer high - performance

financial products that help you take right financial decisions.

Our experts analyze your basic financial goals - elements such as needs and desires, your

status in life and your current net worth and then advise an optimal solution.

Equity and derivative broking

Incorporated in 2004, Prudent Broking Services Pvt. Ltd is a Stock Broking and

Depository Participant service provider. Company is a member with Bombay Stock

Exchange (BSE) and it applied for membership of National Stock exchange (NSE) &

Central depository services (India) Limited (CDSL). Company is in the process of

creating its national presence by opening offices in various parts of the country.

A broker's function is to arrange contracts for property in which he or she has no personal

interest, possession, or concern. The broker is an intermediary or negotiator in the

contracting of any type of bargain, acting as an agent for parties who wish to buy or sell

stocks, bonds, real or Personal Property, commodities, or services. Rules applicable to

agency are generally relevant to most transactions involving brokers. The client is

considered the principal and the broker acts as the client's agent.

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An agent's powers generally extend beyond those of a broker. A distinguishing feature

between an agent and a broker is that a broker acts as a middleperson. When a broker

arranges a sale, he or she is an agent of both parties.

Infrastructure bonds

Bonds issued to help fund infrastructure projects such as those for land or air transport,

electricity generation and transmission or distribution of water supply. The bonds carry

tax advantages which enable funding at lower interest rates.

Bonds can be issued in secured or unsecured form. Normally bonds issued in the form of

debentures are secured. Bond issued by Financial Institutions offer attractive returns.

Interest under the scheme is paid monthly, quarterly, half yearly, annually and on

maturity. Most of the bonds provide flexibility, liquidity and safety. The flexibility can be

seen from the range of options provided (i.e.) frequency of return/tenure/tax benefits etc.

Bonds provide good liquidity, option to withdraw on pre-specified dates, listing on major

stock exchanges, avail loans from banks by pledging bonds/securities.

Life insurance and general insurance

Life insurance is a contract under which the insurer (Insurance Company) in

consideration of a premium paid undertakes to pay a fixed sum of money on the death

of the insured or on the expiry of a specified period of time whichever is earlier.

 In case of life insurance, the payment for life insurance policy is certain. The event

insured against is sure to happen only the time of its happening is not known.

So life insurance is known as ‘Life Assurance’. The subject matter of insurance is life

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of human being. Life insurance provides risk coverage to the life of a person. On

death of the person insurance offers protection against loss of income and compensate

the titleholders of the policy.

General insurance or non-life insurance policies, including automobile and

homeowners policies, provide payments depending on the loss from a particular

financial event. General insurance typically comprises any insurance that is not

determined to be life insurance.

Looking at the immense growth potential of the insurance sector in India, Prudent

Insurance Services Pvt. Ltd. was incorporated in 2008.

Fixed Deposits

Bank Fixed Deposits are also known as Term Deposits. In a Fixed Deposit Account, a

certain sum of money is deposited in the bank for a specified time period with a fixed

rate of interest. The rate of interest for Bank Fixed Deposits depends on the maturity

period. It is higher in case of longer maturity period. There is great flexibility in

maturity period and it ranges from 15days to 5 years. The interest can be compounded

quarterly, half-yearly or annually and varies from bank to bank. Minimum deposit

amount is Rs 1000/- and there is no upper limit. Loan / overdraft facility is available

against bank fixed deposits. Premature withdrawal is permissible but it involves loss

of interest.

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Fixed deposits with the banks are nearly 100% safe as all the banks operating in the

country, irrespective of whether they are nationalized, private, or foreign, are

governed by the RBI's rules and regulations, and give due weight age to the interest

of the investor. Till recently, all bank deposits were insured under the Deposit

Insurance & Credit Guarantee Scheme of India, which has now been made optional.

Nonetheless, bank deposits are among the safest modes of investment.

One can get loans up to 75- 90% of the deposit amount from banks against fixed

deposit receipts. Though the interest charged will be slightly more than the interest

earned by the deposit.

Real estate

Real estate has emerged as an important asset class in recent years in India. Greater

transparency, emergence of large national players and entry of organized finance

have worked together to make real estate an avenue retail investors can think as an

asset class. Real estate offers valuable diversification to an investment portfolio. In

most cases it is a dividend paying asset with good appreciation potential. Hence it

offers income as well as growth as an asset. Also if chosen carefully, the price risk

associated with real estate tends to be lower than that for equity. The downside to a

real estate investment is larger investment size, greater transaction cost, lower

liquidity and greater information asymmetry.

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The Indian real estate sector plays a significant role in the country's economy. The

real estate sector is second only to agriculture in terms of employment generation

and contributes heavily towards the gross domestic product (GDP). Almost five per

cent of the country's GDP is contributed to by the housing sector. In the next five

years, this contribution to the GDP is expected to rise to 6 per cent.

 

Almost 80 per cent of real estate developed in India is residential space, the rest

comprising of offices, shopping malls, hotels and hospitals. According to the Tenth

Five-Year-Plan, there is a shortage of 22.4 million dwelling units. Thus, over the

next 10 to 15 years, 80 to 90 million housing dwelling units will have to be

constructed with a majority of them catering to middle- and lower-income groups.

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1.5 Size in terms of manpower & turnover of organization

Manpower : - Prudent presently has a manpower pool of 400 employees.

Turnover : - Prudent has a sales turnover of Rs 600-700 crores out of which profit

turnover is around 50 crores and the company is having over Rs 3,000

crores of AUM (Asset Under Management).

1.6 Organization structure of the company

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Fig1.2: Organizational structure of the company

1.7 Market share and position of the company in the industry

Market share:- The total market share of the industry is 5 lac crores and Prudent CAS ltd.

is now capturing 3000 crores as its AUM (asset under management).

Market position:- It captures 6% of the market share just after Bajaj capital which is

leading the race.

1.8 Present leadership

The team of Prudent CAS Ltd at Head Office, Ahmadabad consists of:-

1.) Mr. Sanjay Shah (Managing Director and CEO)

2.) Mr Shirish Patel (Director)

3.) Mr Chirag Shah (Director)

4.) Mr. Deven Shah (Business Head)

5.) Mr. Yogi Kanani (IT Manager)

6.) Mr. Chirag Kothari (Accounts Head)

7.) Mr. Jignesh Shah (Research Analyst)

8.) Mr. Munjal Mehta (Broking Officer)

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The team of Prudent CAS Ltd at Delhi, C.P. branch consists of:-

1.) Mr. Manpreet Singh (Deputy Manager)

Email Id: - manpreet@prudentCorporate.com

2.) Mr. Sanjay Kumar (Deputy Manager)

Email Id: - sanjaykumar@prudentCorporate.com

3.) Mrs. Divya Singh (Customer Relationship Operation Head)

Email Id: - Delhicp@prudentCorporate.com

4.) Mr. Subhash Chand (Relationship Manager)

Email Id: - Shubhashchander@prudentCorporate.com

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Fig1.3: Leadership structure of the company

1.9 Sources of data collection

1.9.1 Primary sources: In primary data collection, the data is collected by self efforts

using methods such as interviews and questionnaires

Social interactions during the training with employees of the company with

different designations like deputy manager, Customer Relationship Operation

Head, Relationship Manager.

Visits to different AMCs (asset management companies).

Analysis of Questionnaires.

1.9.2 Secondary sources

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http://www.prudentcorporate.com/

http://www.moneycontrol.com/

http://www.wikipedia.com/

CHAPTER – 2

SWOT ANALYSIS OF THE COMPANY

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2.1 Strengths and weaknesses of the company

2.1.1 Strengths of the Company

Prudent CAS ltd. is a national distributor.

Company has harnessed the potential of information technology for excellent research

and portfolio management through specialized software which works on real-time

market information and generates error-free reports.

For IT-savvy investors, Company possesses a secured user-friendly website that

contains excellent research and portfolio management tools to help client to access

their portfolios round the clock.

The research team and the website are backed by a team of veteran IT professionals,

developers, designers, programmers and high-end Servers. The entire focus is on

security of information, integrity of data, and accuracy of real-time reports.

Company constantly endeavors to achieve optimum client & partner satisfaction and

confidence building by providing various tailor-made reports according to client

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needs. Company possess dedicated qualified team that research and analyze the

various financial products available in the marketplace.

Company has created in-house capabilities of analyzing funds on various parameters

before suggesting them to clients.

4000 plus distributors are associated with the company.

Company is having 6% share in the market with having Rs. 3000 crore plus assets.

Fulltime Dedicated of Team RM & CRO for client support & Assistance.

Regular Meeting with Partners on business and market Updates.

Company provides an Online 24X7 query module to its clients and associate.

Company deals in various kinds of financial products which helps the client in

planning their financial management better.

Wide Branch Network.

Training at Regular Interval.

2.1.2 Weaknesses of the company

Company is having fewer branches in north India.

Company deals in limited products.

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2.2 Opportunities and Threats of the Company

2.2.1 Opportunities of the Company

Company can grow and expand their services & support through sales and marketing,

technology, operations, back- office support, training & consultation.

Prudent Group expanded its horizon by offering specialized services in the areas of

Personal and Corporate Investment Planning through Mutual Funds, Equities,

Derivatives, Third Party Products, Fixed Income Products, Life/General Insurance

and Real Estate which can help the company become a global player.

Besides having a large pool of their own clients, the company also has the potential to

manage its geographically-spread business operations through a unique platform for

independent financial advisors (IFA).

Company is in the process of creating its national presence by opening offices in

various parts of the country.

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Company is a member with Bombay Stock Exchange (BSE) and it applied for

membership of National Stock exchange (NSE) & Central depository services (India)

Limited (CDSL).

It also has strong hold on the corporate channel - it now wants to have a greater reach

to its clients which it has already developed through its 2000+ certified brokers just

the beginning of the force that will grow in leaps and bounds.

2.2.2 Threats of the Company

Company faces competition from various companies in the market.

Due to few branches of the company in the north India it could affect the company in

the competition geographically

Company deals in limited products in turn competitor can lead the competition by

dealing in those products in which company does not deal.

2.3 Best practices and Unique Selling Proposition (USP) of the Company

Company provides the online platform to its clients. Company’s 90% dealing is web

based and it provides an online 24 X 7 portfolio and query module that helps a

customer to see their money growing.

Online Valuation report for all Mutual Fund investments.

Unbiased advice across the product basket.

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2.4 The Variations / Deviations in practices followed by the company

Prudent CAS ltd. has only one strategy i.e. ‘Distribution’; it can be direct or indirect.

Instead of spending money on normal marketing channels like advertisements etc.,

they focus is on getting the Consumer to use the products and services of the

Company and then asking them to recommend the Company’s services to his friends,

relatives and peers. On achieving a certain turnover or numbers the person

recommending the company is paid certain incentives and rewards.

Prudent CAS ltd. believes in sales through investing in different AMCs, not in

advertising their services. Advertising concept is not the part of Prudent CAS ltd.,

though this concept has been taught to us in the classroom.

The diversity among the work force is not as creative as required as the major

difference between workforces is the age factor.

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Effective strategies are not developed to achieve the company’s goal in concern with

its policies.

Synergy in team work is seen but there was resistance in different departments.

Moreover strategies taught in class to handle lower level people were different

Recruitment process also made a major difference as stages taught in room

CHAPTER – 3

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ANALYSIS OF FUNCTIONAL OPERATIONS UNDERTAKEN AT THE COMPANY

3.1 Contents of the job

Client acquisition and client relationship.

Generate revenues for Prudent CAS ltd. by achieving the sales targets.

Suggesting marketing strategies for creating easy sales.

Planning and execution of sales promotion.

Spread the awareness about the company and company’s product.

Tracking and reporting at regular interval.

3.2 Role played by the student in the job

Dealing with asset management companies (AMCs) and previous clients on

behalf of Prudent CAS ltd.

Working in the company as a Financial Advisor.

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Convince the customer to buy the product through the concept.

Providing right product to the right investor.

Daily client meeting reporting.

Introducing Prudent CAS ltd. and its products &services through calling and

networking.

3.3 Products and services covered by the student

3.3.1 Mutual funds through SIP

SIP stands for systematic investment plan. A Systematic Investment Plan (SIP) is a

vehicle offered by mutual funds to help you save regularly. It is just like a recurring

deposit with the post office or bank where you put in a small amount every month. The

difference here is that the amount is invested in a mutual fund.

The minimum amount to be invested can be as small as Rs 100 and the frequency of

investment is usually monthly or quarterly.(daily, weekly, fortnightly also available)

It makes you disciplined in your savings. Every month you are forced to keep aside a

fixed amount. This could either be debited directly from your account or you could give

the mutual fund post-dated cheque. It helps you make money over the long term. Since

you get more units when the NAV drops and fewer when it rises, the cost averages out

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over time. So you tide over all the ups and downs of the market without any drastic

losses.

Also, a number of mutual funds do not charge an entry load if you opt for an SIP. This

fee is a percentage of the amount you are investing. And if you do not exit (sell your

units) within a year of buying the units, you do not have to pay an exit load (same as an

entry load, except this is charged when you sell your units).

If, however, you do sell your units within a year, you would be charged an exit load. So it

pays to stay invested for the long-run.

The best way to enter a mutual fund is via an SIP. But to get the benefit of an SIP, think

of at least a three-year time frame when you won't touch your money.

Of course you would lose money if your units lost value over time.

What most SIP Mutual funds don't tell you is that they recover their fees as monthly

charges by selling your units, so while you are buying more units when the market is

down, more of your units are also being sold to fund the monthly charges of the Mutual

fund. Also the Bid and Offer of the Mutual Fund is around 7% and this is the front load

or expense you pay for buying the units each month. Also sometimes the Mutual fund

will have annual fee charges.

In spite of the above drawbacks the retail investors' benefit in the long term horizon of 5-

8 years is enormous. Only make sure that you can switch your funds from stock market to

money market at short notice when the markets are really in a correction phase to

safeguard the profits which you have made when the market was in a booming phase.

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3.3.2 Fidelity equity fund

An open ended equity growth scheme

You could invest in a large cap, mid cap or small cap fund; select a growth or a value

fund. Or, you could choose the five-in-one Fidelity Equity Fund. The fund invests across

cap sizes and in value and growth stocks as well. True to Fidelity's tradition, we pick

stocks 'bottom-up', basing our selection on first-hand, in-depth research carried out by our

unrivalled global team of investment professionals.

Fund objective To generate long-term capital growth from a diversified portfolio

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of predominantly equity and equity-related securities

NFO opened 21 March 2005

NFO closed 19 April 2005

Scheme re-opened

18 May 2005

Fund Manager Sandeep Kothari and Subramanian Balakrishnan

Benchmark index

BSE-200

SIP availability Yes

OptionsGrowth and Dividend options available. The Dividend option offers payout or reinvestment facilities

Minimum Investment

For opening a folio: Rs. 5,000 For SIP: Rs. 5,000 (minimum single investment Rs. 500, minimum 6 cheques)

Entry Load NIL

Exit LoadWithin 1 year from the date of allotment or Purchase applying First in First Out basis - 1.00%

Table 3.1: Fidelity equity fund3.3.3 Fidelity Tax Advantage Fund

An open ended equity linked saving scheme. It's a repeat performance! The Fidelity Tax

Advantage Fund is the ICRA 7-Star Gold Award winner or Best Fund in the ELSS

category for it's 3 year performance till December 31, 2009. The fund has also been

ranked CPR-1 by CRISIL for the seventh consecutive quarter ending December 2009.

Wouldn't you say choosing the Fidelity Tax Advantage Fund as your tax saver is

choosing the best?

Fund objectiveTo generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities

NFO opened 5 January 2006

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NFO closed 31 January 2006

Scheme re-opened 1 March 2006

Fund ManagerSandeep kothari:- Total working experience of 13 years, managing this fund since july 2006.

Benchmark index BSE-200

Lock - in Period 3 years

SIP availability Yes

OptionsGrowth and Dividend options available. The Dividend option offers payout or re - investment facilities

Minimum Application Amount

For lump sum: Rs. 500 and in multiples of Rs. 500 thereafterFor SIP: Rs. 3,000 (minimum single investment of Rs. 500 and in multiples of Rs. 500 thereafter, minimum 6 installments).

Entry Load NIL

Exit load NIL

Table 3.2: Fidelity Tax Advantage Fund

3.3.4 Fidelity Special situations Fund

An open ended equity growth scheme. Special situations are unusual circumstances that a

company or its stock can face. These could be turnaround stories, mergers or acquisitions,

new products or new business streams being launched or simply stocks that are out of

favour. The list of special situations can go on but the real challenge is identifying them.

Fidelity's global heritage in managing special situations' funds and our 'bottom-up' stock

picking approach underpinned by 360-degree research means we are ideally placed to

unearth and seize these hidden treasures on your behalf. A touch of the special. It's what

you can add it to your portfolio next.

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Of the many kinds of Special Situations, some common types are:

Recovery situations Companies that are turning around from a bad performance history

Unrecognized growth Companies whose growth characteristics have not yet been recognized

Asset plays Companies which sell at a significant discount to their underlying assets

New product or new business stream

Companies launching a unique product or using existing resources to generate a new business stream

Corporate actions Companies that are potential candidates for mergers and acquisitions or restructuring

Out-of-favour stocks Unfashionable companies, which are fundamentally very strong

Table 3.3: Special situations

Fund objectiveTo generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities including equity derivatives.

NFO opens 28 March 2006

NFO closes 26 April 2006

Scheme re-opens 25 May 2006

Fund Manager Nitin Bajaj and Subramanian Balakrishnan

Benchmark index BSE-200

SIP availability Yes

OptionsGrowth and Dividend options available. The Dividend option offers payout or re - investment facilities

Minimum Application Amount

For opening a folio: Rs. 5,000 For SIP: Rs. 5,000 (minimum single investment Rs. 500, minimum 6 cheques)

Entry Load NIL

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Exit LoadWithin 1 year from the date of allotment or Purchase applying First in First Out basis: 1.00%

 Table 3.4: Fidelity Special situations Fund

3.3.5 Fidelity international opportunities fund

An open ended equity growth scheme. The Fidelity International Opportunities Fund

invests in Indian and international markets with a focus on Asia and a mandate to 'go

anywhere' in pursuit of investment opportunities. The fund managers use our time-tested,

'bottom-up' stock-picking approach and draw on the strength of our over 1000-strong

research network that covers 95% of world market capitalization. The Fidelity

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International Opportunities Fund aims to spread your risk as well as enhance your

potential for rewards by putting a whole new world of opportunities within your reach.

RISK FACTORS

Mutual funds, like securities investments, are subject to market risks and there is no

guarantee against loss in the Scheme or that the Scheme's objectives will be achieved. As

with any investment in securities, the NAV of the Units issued under the Scheme can go

up or down depending on various factors and forces affecting capital markets.

Past performance of the Sponsor/the AMC/the Mutual Fund does not indicate the future

performance of the Scheme. Fidelity International Opportunities Fund is the name of the

Scheme, and this does not in any manner indicate the quality of the Scheme, its future

prospects or returns.

Subject to necessary approvals and within the investment objectives of the Scheme, the

Scheme may invest in overseas markets which carry risks related to fluctuations in the

foreign exchange rates, the nature of the securities market of the country, repatriation of

capital due to exchange controls and political circumstances.

Please read the Scheme Information Document of the scheme carefully before investing.

Fund objectiveTo generate long term capital appreciation from a diversified portfolio of predominantly equity and equity related securities including equity derivatives in the Indian and international markets

NFO open date 9 April 2007

NFO close date 30 April 2007

Scheme re-opening date

29 May 2007

Fund Managers Sandeep Kothari and Subramanian Balakrishnan

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Benchmark index

A custom benchmark created using the BSE-200 to the extent of 65% of performance comparison portfolio and MSCI AC Asia Pacific ex Japan for balance 35%

SIP availability Yes

OptionsGrowth and Dividend options available. The Dividend option offers payout or reinvestment facilities

Minimum Application Amount

Initial application amount: Rs. 5,000 per applicationMinimum Additional application amount: Rs. 1,000 per application

Entry Load NIL

Exit loadWithin 1 year from the date of allotment or Purchase applying First in First Out basis: 1.00%

Table 3.5: Fidelity international opportunities fund

3.3.6 Fidelity global real Assets funds

An open ended fund of funds scheme. The Fidelity Global Real Assets Fund is a first of

its kind. It is a fund of funds scheme and its underlying fund invests in stocks

underpinned by tangible or real assets and its investment canvas encompasses a wide

universe:

Energy (Oil, Natural Gas, Uranium, Coal, Solar, etc.)

Materials (Gold, Platinum, Steel, Chemicals, Agriculture, Aluminium, Copper etc.)

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Industrials (Infrastructure - aerospace, construction, rail, cement, roads, ports, ship

building etc.)

Real Estate

Utilities (Electricity, Power, Water)

Fund objective

To aim to achieve long-term capital growth from a portfolio which will be primarily invested in Fidelity Funds - Global Real Asset Securities Fund, an offshore fund launched by Fidelity Funds (an open ended investment company incorporated in Luxembourg) and similar to an Indian mutual fund scheme.

NFO opening date

January 11, 2010

NFO closing date

January 29, 2010

Normal Asset Allocation

Shares/units of the: Underlying Scheme*/Foreign Securities : 80%-100%; Money Market Instruments and/or liquid/cash schemes of mutual funds registered with SEBI: 0%-20; The Scheme shall invest at least 65% of its net assets in shares /units of the Underlying Scheme

Fund ManagerSubramanian Balakrishnan with a working experience of over 10 years

Benchmark Index

A custom benchmark which is a blend of the following indices - MSCI ACWI Industrials, MSCI ACWI Real Estate, MSCI ACWI

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Utilities, MSCI Materials and MSCI Energy. The weights assigned to each individual index while calculating the custom benchmark is 20%, 20%, 10%, 20% and 30% respectively.

Scheme reopens on

February 26, 2010

OptionsGrowth and dividend. The dividend option offers dividend payout and dividend reinvestment facilities.

Minimum Investment

Lump sum: Rs. 5,000; SIP: Minimum installment of Rs. 500 with a minimum 6 installments amounting to Rs. 5000. Auto-debit facility available from NFO onwards.

Entry load NIL

Exit Load

For redemption within 1 year from the date of allotment or purchase applying First in First Out basis - 1.00% A switch-out or a withdrawal under SWP or a transfer under STP may also attract an Exit Load /CDSC like any Redemption. No Exit Load will be chargeable in case of redemption of; (i) Units allotted on account of dividend re-investments; and (ii) Units issued by way of bonus, if any.

SIPavailability Yes

3.6: Fidelity global real Assets funds3.6 Methods used on the job

Concept selling :- Explaining the concept to the customer so that he knows why is the

product profitable to him. The customer has the right to know every detail about the

product, until he knows about the product it would not be effective for the customer.

Emotional selling :- Every person has set up minds about what and how his family will

survive after him. Anything can happen to anyone. Thus, we offer such products of

different AMCs through which we help the customers for a safe and secure future.

Personal selling :- We provide such services in which we personally manage and explain

everything to the customer. The customer does not have to do much effort for knowing

everything. The company believes in service before sales and thus, follows it to maintain

good level with the customer.

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3.7 Highlights and impediments faced by the student

3.7.1 Impediments of the company

As Prudent CAS ltd. is a distributor company, and can be said as an Agent company,

people do not seem interested in doing investments through Agents as they confuse

about the investment advice given.

Since today’s investors become more aware, they prefers to invest directly in the

AMCs instead to invest through distributors.

Some agents misguide clients for their commission.

Some agents are not very qualified for the advice.

3.7.2 Highlights of the company

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The company has a positive point that it provides with total transparency, any detail

can be taken at any point of time. Even minute details are provided to the customer.

Best after sale services are provided to the customer; every single thing is handled

and explained in detail.

Since company mostly works on web portal, an investor can check their portfolio any

time with the help of a user name and password given by the company.

CHAPTER-4

ANALYSIS OF QUESTIONNAIRE ON INVESTMENTS

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This analysis is done on the basis of the data collected from the questionnaire filled. This

questionnaire had been filled by 30 persons and on the basis of information given by

them, this analysis has been done.

4.1 Which age group do you belong?

Age Groups (in years) No. of people (in %)

18 – 30 47

30 – 45 40

45 – 55 13

55 & above -

Table 4.1: Age groups

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Fig 4.1: Age group

INTERPRETATION

This analysis shows that the young generation i.e. belongs to the age group of 18 – 30

years are interested in investments the most. People belonging to the age group of 30 – 45

are also interested to invest their money because of their earning age. People of age group

45 – 55 are least interested in investments as they are mainly interested in savings.

4.2 What is your Occupation?

Occupation No. of people

Private 13

Government 7

Business 6

Others 4

Table 4.2: Occupations

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Fig 4.2: Occupation

INTERPRETATION

This analysis shows that the maximum numbers of people 13 out of 30 are engaged in

private services which are followed by Government services in which 7 persons are

engaged. The number of people in business is 6 and lowest number of people is in others

services or job 4. The Pie chart is showing this information graphically.

4.3 How much is your yearly income?

Yearly income(in lakhs) No. of people

Below 1 4

1-3 9

3-5 13

5 & above 4

Table 4.3: Yearly income

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Fig 4.3: Yearly income

INTERPRETATION

This analysis shows that the 4 of the 30 persons earns below 1 lakh and hence are less

potential to invest their money, 9 persons earns between 1 and 3 lacs and it is a middle

income group which have potential to invest found risks in it. And the maximum, i.e. 13

persons earns annual income between 3 and 5 lacs and have the most potential to invest.

Only 4 persons out of 30 earns above 5 lakhs.

4.4 How much percent (%) of your income you invest?

Percent of the income No. of people

0 - 20 20

20 - 35 8

35 - 50 1

50 & above 1

Table 4.4: Invested income (in %)

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Fig 4.4: Invested income (in %)

INTERPRETATION

This analysis shows that the maximum numbers of persons, i.e. 20 like to invest up to

20% of their monthly income in different avenues and rest of the part is used to spend.

The people like to invest more than 20% and less than 35% of their incomes are 8 and the

lowest who are maximum risk takers who like to invest 35% to 50% and above 50%

(both have 1 person each) of their income and this shows the want to increase their

wealth rapidly.

4.5 In which avenue do you generally prefer to invest in?

Investment Avenues No. of People

Mutual Fund 25

Others ( FD, PPF, Equity, Insurance, LIC, etc )

5

Table 4.5: Avenues preference

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Fig 4.5 Avenues preference

INTERPRETATION

This analysis shows that how many people give preference to the mutual funds than other

avenues of investments. 25 of 30 people prefer to invest in mutual funds than in other

avenues like fixed deposits, LIC, Equity, etc.

Only 5 persons prefer to invest in other avenues of the investment than mutual funds.

This is because of their less capability of bearing risks. This shows that most of the

people prefer investing in mutual funds.

4.6 What is your purpose behind Investment?

Reasons for Investment No. of People (in Percent)

Returns 31

Wealth Creation 33

Tax Saving 23

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Brand Name Equity 7

Liquidity 16

Table 4.6: Purpose behind investment

Fig 4.6: Purpose behind investment

INTERPRETATION

This analysis shows that what the actual reason for the investment is. Most people 33%

invest to create their wealth. This means that this means they want their money to grow,

31% invest to get returns. This means they generally prefer those Mutual Funds whose

returns are maximum. 23% invest to save tax this is generally for the people whose most

of the part goes in tax. 16% invest because of liquidity reason i.e. they want to convert

their funds in to cash in short term. 7% invest on a basis to earn Brand name Equity.

4.7 For how much period do you prefer to invest?

Duration for Investment No. of people

Short Term (0-5 years) 11

Long Term (5 & above) 19

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Table 4.7: Duration for investment

Fig 4.7: Duration for investment

INTERPRETATION

This analysis shows that for how much duration, people want to invest in the different

avenues of investing. 19 out of 30 people like to invest for the longer duration and 11

persons like to invest for the shorter duration which means that they invest just to have

profit and people investing for longer duration have wealth creation as their main motive

4.8 Which brand of mutual funds do you prefer to invest in?

Types of Mutual Funds No. of people (in Percent)

Kotak 30

Fidelity 23

45

Religare 15

Others (Reliance, Franklinn, etc)

13

Table 4.8: Mutual funds preferred

Fig 4.8: Mutual funds preferred

INTERPRETATION

This analysis shows that how many people like to invest in which Mutual Funds.

Maximum 30% people like to invest in Kotak brand which shows that Kotak is most

popular among the investors, 23% like to invest in Fidelity brand and 15% people like to

invest in Religare brand and minimum number of people i.e., 13% likes to invest in other

mutual funds than mentioned like reliance and franklinn.

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CHAPTER-5

LESSONS LEARNT

5.1 Experience about the working environment obtaining in the Company.

At Prudent Corporate Advisory Service (CAS) ltd. it was an excellent experience. As a

part of summer training, I have been guided with a pool of knowledge in investments and

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insurance. We visited at various Asset Management Company (AMC) and insurance

company like Kotak Mahindra Old Mutual Life Insurance Ltd Company and Religare

Enterprises ltd. Company and Fidelity ltd Company and for insurance in Kotak life

Insurance which gave us knowledge about mutual fund and insurance products.

5.2 Practical knowledge gained during the summer training in various functional

areas.

The practical knowledge gained during summer training in terms of various concepts. We

have gained knowledge about the various Financial Products like Mutual fund and

Insurance products.

Gained Knowledge in terms of Finance:-

Concepts of Mutual Fund.

Working of Mutual Fund.

Category of Mutual Fund.

Parties eligible as Investors.

Advantages and Disadvantages of Mutual Fund.

Insurance.

Different Types of Insurance.

Advantages and Disadvantages of Insurance.

5.3 Difficulties in the Summer Training

Class room principles are very difficult to apply in business world.

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Human Resource department does not exist in the branch. So cannot gain much

knowledge about HR department.

Suggestion: -

Students should be sent for the summer training because it gives them the practical

knowledge and also they have the opportunity to interact with different client and

experienced employees.

It also helps the students to relate their theoretical knowledge with the practical

environment this helps the students in building their logic and they can have a real

experience.

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