Mahindra & Mahindra Financial Services ltd                                            A    COMPARATIVE ANALYSIS OF MUTUAL ...
Mahindra & Mahindra Financial Services ltd  A COMPARATIVE ANALYSIS OF MUTUAL           FUND SCHEMES                       ...
Mahindra & Mahindra Financial Services ltd                                         CERTIFICATE                            ...
Mahindra & Mahindra Financial Services ltd                                 DECLARATION             I, Sajith G.S. do hereb...
Mahindra & Mahindra Financial Services ltd                     ACKNOWLEDGEMENTI would like to take this opportunity to ext...
Mahindra & Mahindra Financial Services ltd            CONTENTS                         PAGE NUMBER     Abstract           ...
Mahindra & Mahindra Financial Services ltd           Asset Under Management                                               ...
Mahindra & Mahindra Financial Services ltd    spiraled to more than 3500. The last decade has been a period of rapid growt...
Mahindra & Mahindra Financial Services ltd          I also have to see analysis of mutual fund of various fund houses ava...
Mahindra & Mahindra Financial Services ltd6) Some people are not ready to invest in mutual fund because of the lack of kno...
Mahindra & Mahindra Financial Services ltdtax is of no use so for every client there is a different investment option so w...
Mahindra & Mahindra Financial Services ltd                                            SCHEDULEACTIVITY                    ...
Mahindra & Mahindra Financial Services ltd     Submission of project proposal report                                      ...
Mahindra & Mahindra Financial Services ltdequity will allow you to create Wealth. Hence only through proper allocation of ...
Mahindra & Mahindra Financial Services ltdBSE determines the free float factor for each company based on detailed informat...
Mahindra & Mahindra Financial Services ltd                                     Mutual Fund Operation Flow ChartA mutual fu...
Mahindra & Mahindra Financial Services ltdThus a mutual fund is the most suitable investment for the common man as its off...
Mahindra & Mahindra Financial Services ltdMutual fund scheme is prepared by fund manager of that company where offer docum...
Mahindra & Mahindra Financial Services ltd1987 marked the entry of public sector mutual funds. With the opening up of the ...
Mahindra & Mahindra Financial Services ltdPhase 5-1999-2004: Emergence of a large and uniform industry    The other major ...
Mahindra & Mahindra Financial Services ltdDuring the year we had two major political developments that affected the mutual...
Mahindra & Mahindra Financial Services ltdbusiness and carries with it the added advantage of phase wise escalation starti...
Mahindra & Mahindra Financial Services ltdThe graph of total asset under management is given aboveAMFI and its roleOne of ...
Mahindra & Mahindra Financial Services ltdtheir own regulatory framework. The association was created originally as a body...
Mahindra & Mahindra Financial Services ltd     MUTUAL FUND TYPES            All mutual funds would be either close-end or ...
Mahindra & Mahindra Financial Services ltdb)        Broad fund types by investment objective     Investors and hence the m...
Mahindra & Mahindra Financial Services ltd    An open-end fund is one that sells and repurchases units at all times. When ...
Mahindra & Mahindra Financial Services ltd          Marketing of a new mutual fund scheme involves initial expenses. These...
Mahindra & Mahindra Financial Services ltdVARIOUS PLAN OF MUTUAL FUND:Growth Plan:Dividend is not paid-out under a Growth ...
Mahindra & Mahindra Financial Services ltd1)        Growth Funds               The aim of growth fund is to provide capita...
Mahindra & Mahindra Financial Services ltd         Gilt funds are government securities with medium to long term maturitie...
Mahindra & Mahindra Financial Services ltd                   RISK HIERARCHY OF MUTUAL FUNDSRISK  Money                    ...
Mahindra & Mahindra Financial Services ltdMoney Market                     Diversified   Balanced Funds   Index Fund      ...
Mahindra & Mahindra Financial Services ltd                  STRUCTURE OF MUTUAL FUND:                            SEBI     ...
Mahindra & Mahindra Financial Services ltd                                              SCHEMES                           ...
Mahindra & Mahindra Financial Services ltdTrustee is usually a company (corporate body) or a board of Trustees (body of in...
Mahindra & Mahindra Financial Services ltd     Expense Ratio               AMCs charge an annual fee, or expense ratio tha...
Mahindra & Mahindra Financial Services ltdAre investments in mutual fund units risk-free or safe?This depends on the under...
Mahindra & Mahindra Financial Services ltdHow to select a mutual fund scheme?Whats strategy got to do with selecting a mut...
Mahindra & Mahindra Financial Services ltd     Fund managers are responsible for implementing a consistent investment stra...
Mahindra & Mahindra Financial Services ltd       Reduction/Diversification of Risk: An investor in a mutual fund acquired...
Mahindra & Mahindra Financial Services ltd    DISAGVANTAGE OF MUTUAL FUND:    While the benefits of investing through mutu...
Mahindra & Mahindra Financial Services ltd    However, most mutual funds help investors overcome this constraint by offeri...
Mahindra & Mahindra Financial Services ltdCompany’s structure Structure of the company consists of following entities:-  ...
Mahindra & Mahindra Financial Services ltdGap analysisCustomers expect different levels of services from different organiz...
Mahindra & Mahindra Financial Services ltdexpectations and deliver the service in a way that matches these expectations. S...
Mahindra & Mahindra Financial Services ltd    Problem statement:- As described above in structure the main four entities t...
Mahindra & Mahindra Financial Services ltdrespective AMCs receive that application form, from the CAMs and then AMCs will ...
Mahindra & Mahindra Financial Services ltd                      SWOT analysis of the company and its competitorSTRENGTH   ...
Mahindra & Mahindra Financial Services ltd            A COMPARATIVE ANALYSIS OF MUTUAL FUND SCHEMES                       ...
Mahindra & Mahindra Financial Services ltdSBI Magnum Sector Umbrella-Contra      34.73       09.11       16.74       22.78...
Mahindra & Mahindra Financial Services ltdScheme Name                      NAV       1 Year        3 Year       5 Year    ...
Mahindra & Mahindra Financial Services ltd                                                 Annualized      Annualized     ...
Mahindra & Mahindra Financial Services ltdReliance Income Fund - Retail -   30.89   07.81        09.78   11.28   10.93Grow...
Mahindra & Mahindra Financial Services ltdDSPML T.I.G.E.R. Fund                Equity: Diversified       45.45Tata Infrast...
Mahindra & Mahindra Financial Services ltdAssets Under Management (AUM) as at the end of July-2008 (Rs in Lakhs)          ...
Mahindra & Mahindra Financial Services ltd3. Benchmark Mutual Fund                     331997.24. Bharti AXA Mutual Fund  ...
Mahindra & Mahindra Financial Services ltd   29. SBI Mutual Fund                                                2917896.1 ...
Mahindra & Mahindra Financial Services ltd1) Reliance mutual fund2) ICICI prudential mutual fund3) UTI mutual fund4) BIRLA...
Mahindra & Mahindra Financial Services ltdwell because every person has different needs because some wants to save money f...
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  1. 1. Mahindra & Mahindra Financial Services ltd A COMPARATIVE ANALYSIS OF MUTUAL FUND SCHEMES WITH REFERENCE TO Mahindra & Mahindra Financial services Ltd, BANGALORE A project report submitted to College name in partial fulfillment for the award of POST GRADUATIUON DIPLOMA IN BUSINESS MANAGEMENT In MARKETING Submitted by: NAME REG. NO UNDER THE ESTEEMED GUIDANCE OF Faculty Name Management Faculty College logo College Name AddressSajith GS Page 1
  2. 2. Mahindra & Mahindra Financial Services ltd A COMPARATIVE ANALYSIS OF MUTUAL FUND SCHEMES WITH REFERENCE TO Mahindra & Mahindra Financial services Ltd, BANGALORE A project report submitted to College Name in partial fulfillment for the award of POST GRADUATIUON DIPLOMA IN BUSINESS MANAGEMENT In MARKETING Submitted by: Name Reg No. UNDER THE ESTEEMED GUIDANCE OF NAME Head- HR & Corporate Relations COLLEGE LOGO Place YEARSajith GS Page 2
  3. 3. Mahindra & Mahindra Financial Services ltd CERTIFICATE This is to certify that the project work titled‘A COMPARATIVE ANALYSIS OF MUTUAL FUND SCHEMES’, submitted by name is hisoriginal and bonafide work submitted in partial fulfillment of the requirement for theaward of Post graduation Diploma in Business Management of COLLEGE NAME The said student has submitted a ‘project report’ that has been verified and found satisfactory. FACULTY NAME Head- HR & Corporate Relations Sajith GS Page 3
  4. 4. Mahindra & Mahindra Financial Services ltd DECLARATION I, Sajith G.S. do hereby declare that the report titled “A COMPARATIVE ANALYSIS OF MUTUAL FUND SCHEMES” has beendone by me under the guidance of Mr.NAME, HR and Corporate Relation,COLLEGE NAME. This report is submitted in partial fulfillment for awarding of degree ofPost graduation Diploma in Business Management in COLLEGE NAME. Ialso declare that all facts included in this report are original and no part of thiswork has been replicated or been submitted by me for the award of any otherdegree or diploma elsewhere. Place: Date: 31-08-08 NAMESajith GS Page 4
  5. 5. Mahindra & Mahindra Financial Services ltd ACKNOWLEDGEMENTI would like to take this opportunity to extend my sincere gratitude toMr. Manager Name, state head distribution channel Mahindra and Mahindrafinancial services ltd (finsmart) for providing me the opportunity to conduct aproject study in his esteemed organization.I would like to express my most sincere gratitude to my Faculty Guideand my Company Guide Mr. Name, cluster head investment products, Mahindrafinancial services ltd for the constant guidance, encouragement and motivationthey extended for the project study.I also regard my sincere thanks to my Parents, Friends, Well-wishers and all thosewho are directly and indirectly have helped me in completion of this project.Any task will not be completed successfully without sincere effort and effort ofvarious people who have sensibly, logically, systematically blended their thoughtsand efforts in achieving goals. I have been able to make this research in a veryshort period of time that was at my disposal. Hence it gives me great pleasure tomy thanks and gratitude to those who have been instrumental directly as well asindirectly in completion of the study SAJITH GS TABLE OF CONTENTSSajith GS Page 5
  6. 6. Mahindra & Mahindra Financial Services ltd CONTENTS PAGE NUMBER Abstract 02 Introduction 03 Objective 03 Methodology 05 Schedule 06 Company Profile 07 What is Mutual Funds 09 Evolution of Mutual Funds 12 Mutual Fund Types 17 Mutual Fund Classification 19 Various Plan of Mutual Funds 21 Risk Hierarchy of Mutual Funds 24 Structure of Mutual Funds 25 NAV and other terms 27 Advantage of Mutual Funds 31 Disadvantage of Mutual Funds 33 Structure of Organization 34 Gap Analysis 35 Problem Statement 36 SWOT Analysis 38 Mutual Fund scheme analysis 39 Chronicle Order of Companies 42Sajith GS Page 6
  7. 7. Mahindra & Mahindra Financial Services ltd Asset Under Management 43 Marketing Experience 45 Finding and Observation 47 Conclusion 48 Suggestion 49 Bibliography 51 ABSTRACT Being such a hot and much talked about financial product in the recent times, I take it as a greatopportunity to study and analyze the Indian mutual fund Industry and give my observation on it. It will not onlyhelp building my career but it will also help Mahindra finance in certain aspect. The Indian Mutual Funds Industry has witnessed a sea change since UTI was first established in 1963.From a single player the number of players has increased to more than 30 and the number of schemes has Sajith GS Page 7
  8. 8. Mahindra & Mahindra Financial Services ltd spiraled to more than 3500. The last decade has been a period of rapid growth for the MF industry. The industry is in nascent stage at present. It has come a long way and still has lots of potential for growth. My project in Mahindra finance mainly deals with selling through several financial channels available in the market. And my main aim is to attain profit for the company and give them good business. For selling I have done various surveys to get the database and then I have done proper market segment based on their income etc. Because no two clients are same so we have to deal everyone according to their needs. And after that we do telephonic calls and try to get appointment with the person so to give them knowledge about the product and then try to sale the product to them. And in these project my main aim to see which schemes are giving better returns and at a reasonable risk. But risk itself is a very subjective terms that depend on person to person. And also how asset management companies are performing and how their ranking in investment terms is. And during the course of the project I have not only learnt about mutual fund industry but also try to understand customer behavior and also who can be the potential client for the company. INTRODUCTION The definition of a mutual fund is a form of collective investment that pools money from many investors and invests their money in stocks, bonds, short-term money market instruments, and/or other securities. In a mutual fund, the fund manager trades the funds underlying securities, realizing capital gains or losses, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. The value of a share of the mutual fund, known as the net asset value per share (NAV), is calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding. PURPOSE The purpose of the study at the Mahindra finance is to get the insight knowledge into mutual fund industry and also try to gain some knowledge in equity market Sajith GS Page 8
  9. 9. Mahindra & Mahindra Financial Services ltd I also have to see analysis of mutual fund of various fund houses available in the market Try to understand consumer behavior and then do their market segment and then try to sell their product PROJECT OBJECTIVE 1) To gain knowledge about the various investment 2) To understand the selling techniques of mutual fund 3) It will help me to improve my communication skills and as well manners as to how to remain in front of client. 4) It will help me to understand stock market better. 5) To have the feel of real life work experience. 6) It will help me to learn commitment as well as discipline. 7) It will make me more confident and interactive. 8) To generate revenue for the company. 9) To understand behavior of the client. 10) To gain insight knowledge of mutual fund and how it benefit the investors. LIMITATION1) Sometime stock market are not performing well so people are not interested to invest 2) Sometime because of negative sentiments in the market people are not ready to invest for e.g. the subprime crisis in US affected the stock market in India. 3) Many people have good knowledge of the equity market by themselves so they don’t want to invest in mutual fund 4) Many are looking for the short term benefits for which sometime mutual fund is not the best option 5) Many people who want to have high risk high return are not suitable for mutual fund Sajith GS Page 9
  10. 10. Mahindra & Mahindra Financial Services ltd6) Some people are not ready to invest in mutual fund because of the lack of knowledge about the product7) Most of the time people are busy in their schedule and so they don’t want to listen to anything on thetelephone calls.8) In small towns people are not willing to purchase mutual fund because of lack of knowledge they rather preferto invest in real state9) It is also difficult to measure economic factor associated with time constrain10) Time constrain IMPLEMENTATION OF THEORY IN THE PROJECT- Whatever I have learnt in the 1 st and 2nd semester theory most of all the concept are put into practice firstly Ican say market segmenting in this whole process of investing I have segmented various customer based on theirincome , occupation etc . And also try to understand consumer behavior either meeting them directly or at fieldwork. I have also done lot of telephone calls that help me to know their responses and to know that how muchpeople know investing in the mutual fund or either they are having no knowledge for that. When I meet customerI have to tell them about net asset value and annualized return for that I have to use all the concept of myfinancial management. And since I am taking specialization as marketing this project would help me in shapingand building my career and also this work experience would help me a lot.METHODOLOGY - Firstly I did survey and based on that I collect the database and then did the telephonic call and get thecustomer information and then try to fix appointment with them so to give them knowledge about our productand how to invest. After calling to customer and at the time of meeting I did market segmentation based onincome etc because no two client are same so for every client we have to deal him differently for e.g. A lowearning person who don’t have to give tax for him scheme such as equity linked saving scheme which is related to Sajith GS Page 10
  11. 11. Mahindra & Mahindra Financial Services ltdtax is of no use so for every client there is a different investment option so we have to recognize that and basedon the need we have to offer different schemes of different mutual fund as well as different asset managementcompany product to him by this way we help them to get into good schemes according to their needs. Andsometimes i also tried to contact HR manager of small firms and try to convince about our product and if he feelssatisfied then we take permission to give corporate presentation to his employees and then try to convince andthen sell the product. We also provide them after sale service by sending them statement every month and alsothe factsheet of the various AMC so they can know there return exactly and also know properly that where theirmoney is invested. And then I also have prepared questionnaire for the person whom I meet to recognize thefactors which they take into account while investing in mutual fund and then also I see various factors like age ,occupation , income group , locality and then see how this factor affect while investing in various schemes. SCOPE: This project provides me with learning insight about mutual fund and also little bit about equity market. TheMutual fund industry in India comprises of a large number of fund houses and schemes, however the project islimited to study of a few fund houses and schemes which are performing well in the current market scenario. Theanalysis will mainly be carried on mainly by the data collected from client and from the internet Sajith GS Page 11
  12. 12. Mahindra & Mahindra Financial Services ltd SCHEDULEACTIVITY TIME PERIODTraining on mutual fund- learns about the concept of mutualfund and the different schemes related to different mutualfund. And also Something about taxation and Financial 04-07-08 to 10-07-08planningThen class on asset management and also done survey by asking 11-07-08 to 20-08-08People to fill questionnaireMarketing of mutual fund by telephonic 11-07-08 to 27-08-08Call and try to fix appointment with them and then give themproduct knowledge and then try to close the dealFor marketing of mutual fund I have visited to Tech- Mahindra 15-08-08 to 22-08-08for 7 days to give them the product knowledge and also try tosale the product.Sajith GS Page 12
  13. 13. Mahindra & Mahindra Financial Services ltd Submission of project proposal report 17-08-08 to 19-08-08 Submit of project interim report 21-08-08 to 26-08-08 Submission of project final report 29-08-08 to 31-08-08 Total project period 04-07-08 to 31-08-08COMPANY PROFILE- Mahindra & Mahindra Financial Services Limited, a subsidiary of Mahindra & Mahindra Limited, wasestablished in the year 1991 with a vision to become the number one semi urban and rural Finance Company. Ina short span of 12 years, it has become one of the India’s leading non-banking finance company providing financefor acquisition of utility vehicles, tractors and cars. It has more than 350 branches covering the entire India andservices over 6, 00,000 customer contracts. The Mahindra group is a US$4.5 billion conglomerate and a leading manufacturer of multi –utilityvehicles .The Group celebrated its 60 th anniversary in 2005-06.It has a leading presence in key sectors of the Indianeconomy, including trade and financial services. (Mahindra intertra de, Mahindra & Mahindra Financial ServicesLtd.) , automotive components, information technology & telecom (Tech Mahindra), and infrastructuredevelopment. Mahindra group is among top ten industrial houses in India. Mahindra and Mahindra financial services ltd operates in various location of the country to have a fasterresponse to the needs of all customer for finance and in particular the dealer and customer for M&M products. Recently it has received the necessary permission from Reserve Bank of India (RBI) to start thedistribution of Mutual Fund products through its network. Hitherto the company was only participating in theliability requirements of its customers and with mutual fund distribution business, it can also participate intheir asset allocation. When it comes to investing everyone has unique needs based on their own objective andrisk profile. Even though many investment avenues such as fixed deposit, bonds etc exists, equities typicallyoutperform these investments, over a longer period of time. We are of the opinion that, systematic investment in Sajith GS Page 13
  14. 14. Mahindra & Mahindra Financial Services ltdequity will allow you to create Wealth. Hence only through proper allocation of your portfolio, you can get themaximum return with moderate risk. Investing in equity is not as straight forward as investing in bonds or bankdeposits. It requires expertise and time. Our Investment Advisory services will help you to invest your money inequity through different Mutual Fund Schemes. For instance there are some products of Mutual Fund, whichallows you to manage your cash flow by providing liquidity (liquid Funds) as well give you tax free return.SHARE MARKETA Share market is the place where buying and selling of shares takes place. Nowadays due to internet andadvanced technology buying and selling of shares takes place anywhere in India and also from foreign country;there is no need to be physical present in exchanges like NSE and BSE. These share market has a great impact onthe mutual fund because of the schemes of mutual fund most of the investment of mutual fund goes into equitymarket either scheme can be in the form of index fund, or equity diversified or either money can be invested insmall cap, large cap, mid cap so we can say that sensex movement had a great correlation with the increase ordecrease of net asset value of mutual fund so we can easily say that mutual funds are heavily depended on sharemarket. Financial markets like NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) are countrieseconomic barometer (a guide to economic growth). Stock markets like NSE and BSE enable trading of a companysstock.BSE Sensex (sensitive index) is the prime and old indicator of stock market trend in India. It consist of 30 stocksrepresenting wide spread industries. It is also calculated using well attested method called free float marketcapitalization method (market capitalization of all shares in free float). Free float shares are those that areavailable for trading in open market. The rest may me promoters holding, FDI holdings, locked in shares, ESOPSetc. market Capitalization takes into consideration only those shares issued by the company that are readilyavailable for the trading in the market. Market capitalization = Price of its stock * No. of stocks issued by the company Free float market capitalization rate = market capitalization * free float factor Sajith GS Page 14
  15. 15. Mahindra & Mahindra Financial Services ltdBSE determines the free float factor for each company based on detailed information submitted by the companiesin the prescribed format. Free-float factor is the multiple with which the total market capitalization of a companyis adjusted to arrive at the Free-Float market capitalization. Once the free float of a company is determined, it isrounded of to the higher multiple of 5. A Free-Float factor of say 0.55 means that only 55 % of marketcapitalization of the company will be considered for index calculation. SENSEX = Free Float market capitalization of 30 companies Index DivisorMAIN TEXT:WHAT IS MUTUAL FUND? A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. Themoney thus collected is then invested in capital market instruments such as shares, debentures and othersecurities. The income earned through these investments and the capital appreciations realized are shared by itsunit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitableinvestment for the common man as it offers an opportunity to invest in a diversified, professionally managedbasket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund: Sajith GS Page 15
  16. 16. Mahindra & Mahindra Financial Services ltd Mutual Fund Operation Flow ChartA mutual fund is the ideal investment vehicle for today’s complex and modern financial scenario. Marketsfor equity shares, bonds and other fixed income instruments, real estate, derivatives and other assets havebecome mature and information driven. Price changes in these assets are driven by global eventsoccurring in faraway places. A typical individual is unlikely to have the knowledge, skills, inclination andtime to keep track of events, understand their implications and act speedily. An individual also finds itdifficult 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 experiencedstaff that manages each of these functions on a full time basis. The large pool of money collected in thefund allows it to hire such staff at a very low cost to each investor. In effect, the mutual fund vehicleexploits economies of scale in all three areas - research, investments and transaction processing. While theconcept of individuals coming together to invest money collectively is not new, the mutual fund in itspresent form is a 20th century phenomenon. In fact, mutual funds gained popularity only after the SecondWorld War. Globally, there are thousands of firms offering tens of thousands of mutual funds withdifferent investment objectives. Today, mutual funds collectively manage almost as much as or moremoney as compared to banks. Sajith GS Page 16
  17. 17. Mahindra & Mahindra Financial Services ltdThus a mutual fund is the most suitable investment for the common man as its offers an opportunity to invest in adiversified, professionally managed portfolio at a relatively low cost. Thus the mutual fund is packed productwhich consists of following attributes:-  Professionally manage portfolio  Diversification  Convenience  Tax benefits u/s 80c  Liquidity  Lesser risk Sajith GS Page 17
  18. 18. Mahindra & Mahindra Financial Services ltdMutual fund scheme is prepared by fund manager of that company where offer document contains  Load structure (exit load /exit load)  Type of fund  Investment objective  Asset allocation  Plans and options  Minimum application  Bench mark indexEVOLUTION OF MUTUAL FUNDS IN INDIAThe mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of theGovernment of India and Reserve Bank. The objective then was to attract the small investors and introduce themto market investment. The history of mutual funds in India can be broadly divided into four distinct phasesPhase 1- 1964-87: Growth of Unit Trust of India In 1963, UTI was established by an act of Parliament. The first scheme launched by UTI was Unit Scheme 1964.Later in 1970’s and 80’s, UTI started innovating and offering different schemes to suit the different classes ofinvestors. Unit Link Insurance Plan (ULIP) was launched in 1971. Six new schemes were introduced between 1981and 1987. The asset under management of UTI was increased from Rs. 600 crores in 1984 to Rs. 6700 cr. by theend of 1987.Phase 2- 1987-1993: Entry of public sector funds Sajith GS Page 18
  19. 19. Mahindra & Mahindra Financial Services ltd1987 marked the entry of public sector mutual funds. With the opening up of the economy, many public sectorbanks and financial institutions were allowed to establish mutual funds. State Bank of India established the firstnon UTI mutual fund- SBI Mutual Fund in November 1987. This was followed by Canbank Mutual Fund, LIC MutualFund, Indian Bank Mutual Fund, Bank of India Mutual Fund, GIC Mutual Fund and PNB Mutual Fund. From 1987-88 to 1992-93, the asset under management increased from Rs.6700 cr. to Rs.47004 cr.Phase 3-1993-1996: Emergence of Private Funds A new era of mutual fund industry began in 1993 with the permission granted for the entry of private sectorfunds. This gave the Indian investors a broader choice of ‘fund families’ and increasing competition to the existingprivate sector funds. Foreign fund management companies entered joint ventures with Indian companies to startthe mutual fund business in India. These private funds have bought in with them the latest product innovation,investment management techniques and investor-servicing technology that make the Indian mutual fund industrytoday a vibrant and growing financial intermediary. During the year 1993-94, five private sector mutual fundslaunched their schemes followed by six others in 1994-95. Due to the SEBI regulatory in Indian mutual fundindustry, the fund industry began to witness much greater investor confidence in due course. The erstwhileKothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July1993.Phase 4-1996-1999: Growth and SEBI regulation Since 1996, the mutual fund industry in India saw tighter regulation and higher growth. It scaled new heightsin terms of mobilization of funds and number of funds. Deregulation and liberalization of the Indian economy hadintroduced competition and provided impetus to the growth of industry. Measures were taken both by SEBI toprotect the investor and by the Government to enhance investors’ returns through tax benefits.A comprehensive set of regulations for all mutual funds operating in India was introduced with SEBI (mutual fund)Regulations, 1996. These regulations set uniforms standards for all funds. The budget of Union Government in1999 took a big step in exempting all mutual fund dividends from income tax in hands of investors. During thisphase, both SEBI and AMFI launched investor awareness programmes aimed at educating all investors aboutinvesting through mutual funds. Sajith GS Page 19
  20. 20. Mahindra & Mahindra Financial Services ltdPhase 5-1999-2004: Emergence of a large and uniform industry The other major development in the fund industry has been the creation of a level playing field for all mutualfunds operating in India. This happened in February 2003, when the UTI Act was repealed. Unit Trust of India nolonger has a special legal status as a trust established by an Act of Parliament. Instead, it has also adopted thesame structure as any other fund in India- a Trust and an Asset Management Company. UTI Mutual Fund is thepresent name of the erstwhile Unit Trust of India. UTI Mutual Fund is now under the SEBI’s (Mutual Fund)Regulations, 1996 like all other Mutual Fund in India. UTI Mutual Fund is still the largest player in the Indian Fundindustry.The emergence of a uniform industry with the same structure, operations and regulations made it easier fordistributers and investors to deal with any fund house in India. 1999 marked the beginning of a new phase in thehistory of the mutual fund industry in India, a phase of significant terms of both amounts mobilized from investorsand asset under management. Between 1999 and 2005, the size of the industry has doubled in terms of assetunder management which has gone up from Rs. 68000 cr. to Rs. 1, 50,000cr. Within the growing industry, therelative share of different players in terms of amount mobilized and asset under management have alsoundergone changes.2003-2004: A retrospect:This year was extremely eventful for mutual funds. The aggressive competition in the business took its toll andtwo more mutual funds bit the dust. Alliance decided to remain in the ring after a highly public bidding war didnot yield an acceptable price, while Zurich has been sold to HDFC Mutual. The growth of the industry continued tobe corporate focused barring a few initiatives by mutual funds to expand the retail base. Large money broughtwith it the problems of low retention and consequently low profitability, which is one of the problems plaguingthe business. But at the same time, the industry did see spectacular growth in assets, particularly among theprivate sector players, on the back of the continuing debt bull run. Equity did not find favor with investors sincethe market was lack-luster and performances of funds, barring a few, were quite disappointing for investors. Theother aspect of this issue is that institutional investors do not usually favor equity. It is largely a retail segmentproduct and without retail depth, most mutual funds have been unable to tap this market.Impact of local and international developments Sajith GS Page 20
  21. 21. Mahindra & Mahindra Financial Services ltdDuring the year we had two major political developments that affected the mutual fund industry. The standoffbetween India and Pakistan at the beginning of the financial year saw the debt market being extremely volatile.Investors pulled out of funds and this also put pressure on fund managers to hold returns and at the same timemeet redemption commitments. The equity markets were equally subdued but the industry did not react greatlyto this since equity funds were in any case not a significant part of the mobilization in the last few years. With thestand down on the Indian side, the debt markets recovered and with that the inflow of funds into our industrysoared once again. But at the end of the year the industry was hit by another war – the impending US attack onIraq and consequent oil price pressures once again made the debt market volatile. It is a mark of the maturing ofthe Indian investor that redemptions were only need based and the industry did not see as much outflows as onefeared.Product innovationsWith the bond yields plateauing and with the mutual fund industry trying to attract people to the equity market,the year also saw some remarkable products flavors for Indian investors. Birla Sunlife Mutual Fund led the packwith an equity fund focused on dividend yield stock, a bond index fund and a bond-for-units swap product. Someof the other innovative products were the series of exchange-traded funds from Benchmark, including a liquidindex traded fund. Prudential-ICICI also launched an exchange-traded fund, the SPICE, in association with BSE.The industry focused also on making existing products more attractive by adding on a number of service featuresand cost control measures. Same day redemption in liquid funds, “institutional” plans which would reduce theoverall cost of investment and bonus units in lieu of dividend were some of these features.A new Emphasis on Risk ManagementThe year also saw a tremendous emphasis on risk management. A number of mutual funds were already takingsteps to mitigate risks not only in operations as in the past, but also in the area of management of funds. Acommittee constituted by AMFI carried the initiative taken under the FIRE (Financial Institutions Reform andExpansion) Project forward and developed a risk management framework for the industry. The subsequentcircular by SEBI is perhaps one of the most comprehensive attempts to address the issue of risk in the mutual fund Sajith GS Page 21
  22. 22. Mahindra & Mahindra Financial Services ltdbusiness and carries with it the added advantage of phase wise escalation starting with mandatory items andmoving towards best practices. GROWTH IN ASSETS UNDER MANAGEMENT Sajith GS Page 22
  23. 23. Mahindra & Mahindra Financial Services ltdThe graph of total asset under management is given aboveAMFI and its roleOne of the most effective industry bodies today is probably the Association of Mutual Funds in India (“AMFI”). Ithas been a forum where mutual funds have been able to present their views, debate and participate in creating Sajith GS Page 23
  24. 24. Mahindra & Mahindra Financial Services ltdtheir own regulatory framework. The association was created originally as a body that would lobby with theregulator to ensure that the fund viewpoint was heard. Today, it is usually the body that is consulted on matterslong before regulations are framed, and it often initiates many regulatory changes that prevent malpractices thatemerge from time to time. This year some of the major initiatives were the framing of the risk managementstructure, a code of conduct and registration structure for mutual fund intermediaries, which were subsequentlymandated by SEBI. In addition, this year AMFI was involved in a number of developments and enhancements tothe regulatory framework. AMFI works through a number of committees, some of which are standing committeesto address areas where there is a need for constant vigil and improvements and other which are ad hoccommittees constituted to address specific issues. These committees consist of industry professionals fromamong the member mutual funds. There is now some thought that AMFI should become a self-regulatoryorganization since it has worked so effectively as an industry Phase 6: From 2004 0nwards: Consolidation and Growth The industry has lately witnessed a spate of mergers and acquisitions, most recent onesbeing the acquisition of schemes of Alliance Mutual Fund by Birla Sun Life, Sun F&C Mutual Fund by Principal, andPNB Mutual Fund by Principal. At the same time, more international players continue to enter India, includingFidelity, one of the largest funds in the World. The stage is now set for growth through consolidation and theentry of new international and private sector players. As at the end of August 2008, there were 32 funds.Number of schemes Sajith GS Page 24
  25. 25. Mahindra & Mahindra Financial Services ltd MUTUAL FUND TYPES All mutual funds would be either close-end or open-end, and either load or no-load. These classifications are general. For example all open-end funds operate the same way; or in case of a load fund a deduction is made from investors’ subscription or redemption and only the net amount used to determine his number of shares purchased or sold. Once we have reviewed the fund classes, we already to discuss more specific fund types. Funds are generally distinguished from each other by their investment objectives and types of securities they invest in. we now look at major types of fund available under the general classifications as discussed above. It may be noted some of the following fund types are not yet available popular in India at present.a) Broad fund types by nature of investments Mutual funds may invest in equities, bonds or fixed income securities, or short-term money market securities. Some have equity, bond or money market or liquid funds. All these invest in financial assets. But there are funds that invest in physical assets. For example, there is Gold or other precious metal funds and there are real estate funds. Sajith GS Page 25
  26. 26. Mahindra & Mahindra Financial Services ltdb) Broad fund types by investment objective Investors and hence the mutual funds pursue different objectives while investing. Thus, growth funds invest for medium to long term capital appreciation. Income funds invest to generate regular income and less for capital appreciation. Value funds invest in equities that are considered undervalued today, whose value will be unlocked in future.c) Broad fund types by risk profile The nature of a fund’s portfolio and its investment objective imply different levels of risk under taken. Funds are therefore, often grouped in order of risk. Thus, equity funds have a greater risk of capital loss than a debt fund that seeks to protect the capital while looking for income. Liquid funds are exposed to less risk than bond funds. Since they invest in short-term fixed income securities, as compared to longer-term portfolios of bond funds. Fund managers often try to alter the risk profile of funds by suitably changing the investment objective. For example, a fund house may structure an “Equity Income Fund” investing in shares that don’t fluctuate much in value and offer steady dividends-say power sector companies, or a real estate income fund that invests only in income-producing assets. A balanced fund seeks to produce a lower risk portfolio by mixing equity investments with debt investments. Investors and their advisors need to understand both the investment objective and the level of risk of the different types of funds. MUTUAL FUND CLASSIFICATION Open-end Vs Closed-end Funds Sajith GS Page 26
  27. 27. Mahindra & Mahindra Financial Services ltd An open-end fund is one that sells and repurchases units at all times. When the fund sells units, the investorbuys them from the fund. When the investor redeems the units, the fund repurchases the units from the investor.An investor can buy units or redeem units from the fund itself at a price on the net asset value (NAV) per unit.NAVper units is obtaining by dividing the amount of market value of the fund’s asset (plus accrued income minus thefund liabilities) by the number of units outstanding. The number of units outstanding goes up or down every timethe fund sells new units or repurchases existing units. In other words, the ‘unit capital’ of an open- end mutualfund is not fixed but variable. When sale of unit exceed repurchase, the fund increases in size. When therepurchase exceeds sale, the fund shrinks. A closed-end fund is a one-time sale of fixed number of units and it is fixed. After the offer closes, closed-endfunds don’t allow investors to buy or redeem units directly from the funds. However, to provide the much-neededliquidity to investors, closed-end funds list on a stock exchange. Trading through stock exchange enables investorsto buy or sell units of a closed-end mutual fund from each other, through a stockbroker, in the same fashion asbuying or selling shares of a company. The fund’s units may be traded at a discount or premium to NAV based oninvestor’s perceptions about the fund’s future performance and other market factors affecting the demand for orsupply of the fund’s units. The number of outstanding units of a closed-end fund does not vary on account oftrading in the fund’s units at the stock exchange. Sometimes, closed-end funds do offer “buy-back of fundshares/units”, thus offering another avenue for liquidity to closed-end fund investors. In this case, the mutualfund actually reduces the number of outstanding units. In India, SEBI regulations ensure that the closed endscheme investors are given at least one of the two exit avenues.Load and No-load Funds: Sajith GS Page 27
  28. 28. Mahindra & Mahindra Financial Services ltd Marketing of a new mutual fund scheme involves initial expenses. These expenses may be recovered from the investors in different ways at different times. Three usual ways in which a fund’s marketing expenses may recover from the investors are: At the time of investor’s entry into the fund/scheme, by deducting a specific amount from his contribution By charging the fund/scheme with a fixed amount each year, during a specified number of years. At the time of investor’s exit from the fund/scheme, by deducting a specified amount from the redemption proceeds payable to the investor. These charge imposed on the investors to cover distribution/sales/marketing expenses are often called “loads”. The load charged to the investor at the time of entry into a scheme is called a “front-end load or entry load”. This is the first case. The load amount charged to the scheme over a period of time is called a “deferred load”. This is the second case above. The load that the investor pays at the time of his exit is called a “back-end load or exit load”. This is the third case above. Some fund may also charge different amount of loads to the investors, depending upon how many years the investor has stayed with the fund; the longer the investors stay with the fund, less the amount of ‘exit load’ he is charged. This is called “contingent deferred sales charge”. Fund that charge front-end, back-end or deferred loads are called load funds. Funds that make no such charges or loads for sales expenses are called no-load funds. Tax-exempt Vs Non Tax-exempt Funds When a fund invests in tax-exempt securities, it is called a tax-exempt fund. In India, any income received by mutual funds is tax-free. After the 1999 Union Government Budget, all of the dividend income received from any of the mutual fund is tax free in the hands of the investor. However, funds other than open-end equity oriented funds have to pay a distribution tax, before distributing income to investors. In other words, open-end equity oriented mutual fund schemes are tax exempt, while other funds are taxable for distributable income. Sajith GS Page 28
  29. 29. Mahindra & Mahindra Financial Services ltdVARIOUS PLAN OF MUTUAL FUND:Growth Plan:Dividend is not paid-out under a Growth Plan and the investor realizes only the capital appreciation on theinvestment (by an increase in NAV).Income Plan:Dividends are paid-out to investors under an Income Plan to the investors. However, the NAV of themutual fund scheme under an Income Plan falls to the extent of the dividend payout.Dividend Re-investment Plan:Here the dividend accrued on mutual funds is automatically re-invested in purchasing additional units inopen-ended funds. In most cases mutual funds offer the investor an option of collecting dividends or re-investing the same.Retirement Pension Plan:Some schemes are linked with retirement pension. Individuals participate in these plans for themselves,and corporate participate for their employees.Insurance Plan:UTI and LIC Mutual Funds have some schemes that offer insurance cover to investors.Systematic Investment Plan (SIP):Here the investor is given the option of preparing a pre-determined number of post-dated cheques in favorof the fund. The investor is allotted units on the date of the respective cheques at the applicable NAV.Systematic Withdrawal Plan:As opposed to the Systematic Investment Plan, the Systematic Withdrawal Plan allows the investor thefacility to withdraw a pre-determined amount / units from his fund at a pre-determined interval. Theinvestors units will be redeemed at the applicable NAV as on that day.BY INVESTMENT OBJECTIVE Sajith GS Page 29
  30. 30. Mahindra & Mahindra Financial Services ltd1) Growth Funds The aim of growth fund is to provide capital appreciation over the medium to long term. Such schemes normally invest a majority of their corpus in equities. It has proved that return from stock, have outperformed most other kinds of investment held over the long term. Growth schemes are ideal for investors having a long term outlook seeking growth over a period of time. Growth funds invest in companies whose earnings are expected to rise at an above average rate. These companies may be operating in sectors like technology considered having a growth potential. Growth funds are therefore, less volatile than funds that target aggressive growth.2) Income Funds (Debt Funds) The aim of income fund 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. These funds do not target capital appreciation but look for current income, and therefore distribute a substantial part of their surplus to investors. Income funds targets high return and can face more risk.3) Balanced fund The aim of balanced fund 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 document. By investing in a mix of nature, balanced funds seek to attain the objectives of income, moderate capital appreciation and preservation of capital and are ideal for investors with a conservative and long-term orientation. 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) Money market funds (Liquid Funds) The aim of money market fund is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short term instrument such as treasury bills, certificate of deposit, commercial papers and inter-bank call money. Return 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 fund for short periods.5) Gilt Funds Sajith GS Page 30
  31. 31. Mahindra & Mahindra Financial Services ltd Gilt funds are government securities with medium to long term maturities, typically of over one year. In India, we have Government securities or Gilt Funds that invest in government paper called dated securities. Since the issuer is the Government of India or States, these funds have little risk of default and hence offer better protection of principal. However, Gilt Securities, like all debt securities, face interest rate risk. Debt Securities price fall when interest rate level increase (and vice versa). Investors have to understand the potential change in NAV s of gilt funds on account of changes in interest rates in the economy.6) Equity Linked Tax Saving schemes These scheme offer tax rebates to the investors under specific provision of the Indian income tax laws as the government offers tax incentive for investment in specified avenues. Investment made in the equity linked saving schemes (ELSS) and pension schemes are allowed as deduction u/s 88 of the income tax act, 1961. The act also provides opportunity to investors to save capital gains u/s 54EA and 54EB by investing in mutual funds. Sajith GS Page 31
  32. 32. Mahindra & Mahindra Financial Services ltd RISK HIERARCHY OF MUTUAL FUNDSRISK Money Debt Fund Equity Fund Market Fund Hybrid Fund Gilt Fund Growth and Aggressive High Yield Income Funds Growth Fund Debt Funds Growth Funds Focused Flexible Asset Debt Funds Allocation Fund Value Funds Diversified Equity Fund Equity Income FundsSajith GS Page 32
  33. 33. Mahindra & Mahindra Financial Services ltdMoney Market Diversified Balanced Funds Index Fund Gilt FundsFunds Debt Fund TYPE OF FUNDSajith GS Page 33
  34. 34. Mahindra & Mahindra Financial Services ltd STRUCTURE OF MUTUAL FUND: SEBI Trustee Sponsor AMC FUND MANAGER MKT/SALES MUTUAL FUND DISTRIBUTORSajith GS Page 34
  35. 35. Mahindra & Mahindra Financial Services ltd SCHEMES INVESTORTHE STRUCTURE CONSISTS OF:The Fund StructureSponsor is defined as any person who, acting alone or in combination with another body corporate, establishes amutual fund. The sponsor of a fund is akin to the promoter of a company as he gets the fund registered with SEBI.The sponsor will form a Trust and appoint a Board of Trustees. The sponsor will also generally appoint an AssetManagement Company as fund managers. The sponsor, either directly or acting through the Trustees, will alsoappoint a Custodian to hold the fund assets. As per the SEBI regulation, for a person to qualify as a sponsor, hemust contribute at least 40% of the net worth of AMC and possess a sound financial track record over five yearsprior to registration.TRUSTThe mutual fund in India is constituted in the form of a Public Trust created under the Indian Trust Act, 1882. Thefund sponsor acts as the settler of the Trust, contributing to its initial capital, and appoints a Trustee to hold theassets of the Trust for the benefit of unit holder, who are the beneficiaries of the Trust. The fund then invitesinvestors to contribute their money in common pool, by subscribing to “units” issued by various schemesestablished by the trust. Under the Indian Trusts Act, the Trust or the Fund has no independent legal capacityitself, rather it is the Trustee or Trustees who have the legal capacity and therefore all acts in relation to the trustare taken on its behalf by the Trustees. The Trustee hold the unit-holders money in a fiduciary capacity, i.e., themoney belongs to the unit-holders and is entrusted to the fund for the purpose of investment.TRUSTEE Sajith GS Page 35
  36. 36. Mahindra & Mahindra Financial Services ltdTrustee is usually a company (corporate body) or a board of Trustees (body of individuals) .The main responsibilityof the Trustee is to safeguard the interest of the Unit holders and inter alias ensure that the AMC functions in theinterest of investors and in accordance with the Securities and Exchange board of India (MUTUAL FUNDS)Regulations. Most of the funds in India are managed by Board of Trustees. The Trustees do not directly managethe portfolio of securities. The Trustee being the primary guardian of the unit-holders’ funds and assets, a Trusteehas to be a person of high repute and integrity.ASSET MANAGEMENT COMPANY (AMC)The AMC is appointed by the trustee as the investment manager of the mutual fund. The AMC is required to beapproved by the Securities and Exchange Board of India (SEBI) to act as Asset Management Company of themutual fund. The AMC would, in the name of the Trust, float and then manage the different investment“schemes” as per SEBI regulations and as per the investment management agreement it signs with the Trustees.The Asset Management Company of a mutual fund must have a net worth of at least Rs. 10 crores at all times.Directors of the AMC, both independent and non-independent, should have adequate professional experience infinancial services and should be individuals of high moral standing. At least 50% of the directors of the AMC areindependent directors who are not associated with the Sponsor in any manner.NAV-: Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is thenet asset value of the scheme divided by the number of units outstanding on the Valuation Date.How is NAV calculated? The value of all the securities in the portfolio in calculated daily. From this, all expenses are deducted andthe resultant value divided by the number of units in the fund is the fund’s NAV. Sajith GS Page 36
  37. 37. Mahindra & Mahindra Financial Services ltd Expense Ratio AMCs charge an annual fee, or expense ratio that covers administrative expenses, salaries, advertising expenses, brokerage fee, etc. A 1.5% expense ratio means the AMC charges Rs1.50 for every Rs100 in assets under management. A funds expense ratio is typically to the size of the funds under management and not to the returns earned. Normally, the costs of running a fund grow slower than the growth in the fund size - so, the more assets in the fund, the lower should be its expense. Entry load and an exit load Some Asset Management Companies (AMCs) have sales charges, or loads, on their funds (entry loadand/or exit load) to compensate for distribution costs. Funds that can be purchased without a sales charge are calledno-load funds. Entry load is charged at the time an investor purchases the units of a scheme. The entry loadpercentage is added to the prevailing NAV at the time of allotment of units. Exit load is charged at the time ofredeeming (or transferring an investment between schemes). The exit load percentage is deducted from the NAV atthe time of redemption (or transfer between schemes). This amount goes to the Asset Management Company and notinto the pool of funds of the scheme. How does "entry load" affect the investment returns? A 2.25% entry load sounds small. But it still bites a chunk off the returns over a long period of time. For instance, Rs 1 lakh invested directly in the no-load option of an equity fund that grows at a rate of 15% over a period of 20 years yields around Rs 16.36 lakh against Rs 15.99 lakh that a load fund would return—a difference of Rs 36,820. This is because even a small sum of 2.25% gets compounded over the years. The pinch remains the same even in a systematic investment plan (SIP). As SIPs entail investments on a regular basis, say every month, you end up paying entry loads on all your investment installments. Assume you had invested Rs 5,000 in Reliance Vision Fund (RVF) on January 1, 2003 through a monthly SIP. If you had withdrawn your entire investment after five years, on December 31, 2007, you would have got back Rs 11.52 lakh in the no-load option and Rs 11.25 lakh in a load option, a difference of a cool Rs 25,914. Sajith GS Page 37
  38. 38. Mahindra & Mahindra Financial Services ltdAre investments in mutual fund units risk-free or safe?This depends on the underlying instrument that a mutual fund invests in, based on its investmentobjectives. Mutual funds that invest in stock market-related instruments cannot be termed “risk-free orsafe” as investment in shares are inherently risky by nature, whereas funds that invest in fixed-incomeinstruments are relatively safe and those that invest only in government securities are the safest.Why Mutual Funds are an investment option?Firstly, we are not all investment professionals. We go to a doctor when we need medical advice or alawyer for legal guidance, similarly mutual funds are investment vehicles managed by professional fundmanagers. And unless you rate highly on the Investment IQ Quiz, we recommend you use this option forinvesting. Mutual funds are like professional money managers, however a key factor in their favor is thatthey are more regulated and hence offer investors the ability to analyze and evaluate their track record.Secondly, investing is becoming more complex. There was a time when things were quite simple - themarket went up with the arrival of the first monsoon showers and every year around Diwali. Since Indiastarted integrating with the world (with the start of the liberalization process), complex factors such as anincrease in short-term US interest rates, the collapse of the Brazilian currency or default on its debt by theRussian government, have started having an impact on the Indian stock market. Although it is possible foran individual investor to understand Indian companies (and investing) in such an environment, the processcan become fairly time consuming. Mutual funds (whose fund managers are paid to understand theseissues and whose asset management company invests in research) provide an option of investing withoutgetting lost in the complexities.Lastly, and most importantly, mutual funds provide risk diversification: Diversification of a portfolio isamongst the primary tenets of portfolio structuring (see The Need to Diversify). And a necessary one toreduce the level of risk assumed by the portfolio holder. Most of us are not necessarily well qualified toapply the theories of portfolio structuring to our holdings and hence would be better off leaving that to aprofessional. Mutual funds represent one such option. Sajith GS Page 38
  39. 39. Mahindra & Mahindra Financial Services ltdHow to select a mutual fund scheme?Whats strategy got to do with selecting a mutual fund? Shouldnt you just go and invest in the bestperforming fund? The answer is no. Mutual fund investing requires as much strategic input as any otherinvestment option. But the advantage is that the strategy here is a natural extension of your assetallocation plan (use our Asset Allocator to understand what your optimum asset allocation plan should be,based on your personal risk profile). The following processes are important to select a mutual fundscheme. Identify funds whose investment objectives match your asset allocation needs Just as you would buy a computer that fits your needs and budget, you should choose a mutual fund that meets your risk tolerance (need) and your risk capacity (budget) levels (i.e. has similar investment objectives as your own). Typical investment objectives of mutual funds include fixed income or equity, general equity or sector-focused, high risk or low risk, blue-chips or turnarounds, long-term or short- term liquidity focus. The investment objectives match yours are Evaluate past performance, look for consistency. Although past performance is no guarantee of future performance, it is a useful way of assessing how well or badly a fund has performed in comparison to its stated objectives and peer group. A good way to do this would be to identify the five best performing funds (within your selected investment objectives) over various periods, say 3 months, 6 months, one year, two years and three years. Shortlist funds that appear in the top 5 in each of these time horizons as they would have thus demonstrated their ability to be not only good but also, consistent performers. .Are investments in mutual fund units risk-free or safe?This depends on the instrument mutual fund invests in, based on its investment objectives. Mutual fundsthat invest in stock market-related instruments cannot be termed “risk-free or safe” as investment in sharesare inherently risky by nature, whereas funds that invest in fixed-income instruments are relatively safeand those that invest only in government securities are the safest.Role of a Fund Manager: Sajith GS Page 39
  40. 40. Mahindra & Mahindra Financial Services ltd Fund managers are responsible for implementing a consistent investment strategy that reflects the goals and objectives of the fund. Normally, fund managers monitor market and economic trends and analyze securities in order to make informed investment decisions. How are mutual funds regulated? All Asset Management Companies (AMCs) are regulated by SEBI and or the RBI (in case the AMC is promoted by a bank). In addition, every mutual fund has a board of directors that represents the unit holders’ interests in the mutual fund. ADVANTAGE OF MUTUAL FUND: Mutual funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyze the performance and prospect of companies and select suitable investments to achieve the objective of the scheme. If mutual fund is emerging as the favorite investment vehicles, it is because of the many advantages it has over other forms and avenues of investing, particularly for the investor who has limited resources available in terms of capital ability to carry out detailed research and marketing monitoring. The following are the major advantages offered by mutual funds to all investors: Portfolio Diversification: Mutual Fund normally invests in a well-diversified portfolio of securities. Each investor in a fund is an owner of the fund’s assets. This enables him to tell a diversified investment portfolio even with a small amount of investment, which would otherwise require big capital. Professional Management: Even if an investor has a big amount of capital available to him, he benefits from the professional management skills bought in by the fund in the management of the investor’s portfolio. The investment management skills, along with the needed research into available investment options, ensure a much better return that what an investor can manage own his own. Few investors have the skills and resources of their own to succeed in today’s fast-moving, global and sophisticated markets. Sajith GS Page 40
  41. 41. Mahindra & Mahindra Financial Services ltd Reduction/Diversification of Risk: An investor in a mutual fund acquired a diversified portfolio; no matter how small is his investment. Diversification reduces the risk of loss, as compared to investing directly in one or two shares of debentures or other investments. When an investor invests directly, all the risk of potential loss is his own. While investing in the pool of funds with other investors, any loss on one or two securities is also shared with other investors. This risk reduction is one of the most important benefits of a collective investment vehicle like mutual funds. Liquidity: Often, investors hold shares or bonds they cannot directly, easily or quickly sell. Investment in a mutual fund, on the other hand, is more liquid. An investor can liquidate the investment by selling the units to the fund if it is an open end fund, or by selling the units in the stock market if the fund is a closed-end fund, since closed end funds have to be listed on a stock exchange, in any case, the investor in a closed end fund receives the sale proceeds at the end of a period specified by the mutual fund or the stock exchange. Convenience and Flexibility: Mutual fund management companies offer many investor services that a direct market cannot get. Within the same fund family, investor can easily transfer or switch their holdings from one scheme to another. They can also invest or withdraw their money at regular investors in most open end schemes. Mutual fund investment process has been made further more convenient with the facility offered by funds for investors to buy or sell their units through the internet or email using other communication means. The investors also get updated market information fro the funds. The information about the share is also shared by the fund managers in a transparent manner, with all material facts required by regulators to be disclosed to the investors. Safety: Mutual fund industry is well regulated. All funds are registered with SEBI which lays down rules to protect the investors. Thus, investors also benefit from the safety of a regulated investment environment. Sajith GS Page 41
  42. 42. Mahindra & Mahindra Financial Services ltd DISAGVANTAGE OF MUTUAL FUND: While the benefits of investing through mutual fund far outweigh the disadvantages, an investor and his advisor will do well to be aware of a few shortcomings of using the mutual fund as an investment vehicle. No control over cost: An investor in a mutual fund has any control over the overall cost of investing. He pays the investment management fees as long as he remains with the fund, albeit in return for the professional management and research. Fees are usually payable as a percentage of the value of his investment, whether the fund value is raising or declining. A mutual fund investor also pays fund distribution cost, which he would not incur in direct investing. However, this shortcoming only means that there is a cost to obtain the benefits of mutual fund services, and this cost is often less than the cost of direct investing by the investors. Besides the regulators have prescribed a ceiling on the maximum expenses that the fund managers can charge to the schemes, thus limiting the investors’ expenses of investing through mutual funds. No Tailor-made Portfolio: Investors who invest on their own portfolios of shares, bonds and other securities. Investing through funds means he delegates this decision to the fund managers. High-net-worth individuals or large corporate investors may find this to be a constraint in achieving their objectives. Sajith GS Page 42
  43. 43. Mahindra & Mahindra Financial Services ltd However, most mutual funds help investors overcome this constraint by offering families of schemes-a large number of different schemes- within the same fund. In each schemes there are various plans and options. An investor can choose from different investment plans and options. An investor can choose from different investment schemes/plans/options and construct an investment portfolio that meets his investment objectives. Managing a Portfolio of Funds: Availability of a large number of options from mutual funds cam actually mean too much choice for the investor. He may again need advice on how to select a fund to achieve his objectives, quite similar to the situation when he has to select individual shares or bonds to invest in. Fortunately, India now has a large number of AMFI registered and tested fund distributers and financial planners who are capable of guiding the investors. Structure of the organization Sajith GS Page 43
  44. 44. Mahindra & Mahindra Financial Services ltdCompany’s structure Structure of the company consists of following entities:-  Country head  State head distribution channel  Cluster heads of investments  Individual brokers  Back office operation  Sales team State head looks after all the operation in Karnataka region like Bellary, Mysore and other cities of Karnataka and coordinates with asset management companies i.e. AMCs and reports to country head, and cluster heads of investments are responsible for sales team and report to state head distribution channel and sales people who directly interact with investors for the investments report to cluster head investment. Sales team is supported by back office operations, like role of back office operation Sajith GS Page 44
  45. 45. Mahindra & Mahindra Financial Services ltdGap analysisCustomers expect different levels of services from different organizations for example the level of customerservices from different organizations. For example, the level of customer services expected from a fast food outletdiffers from that of a restaurant at a star hotel. Therefore, an organization should understand customer Sajith GS Page 45
  46. 46. Mahindra & Mahindra Financial Services ltdexpectations and deliver the service in a way that matches these expectations. Some of the gaps that MAHINDRAFINANCE (finsmart) should minimize to improve the quality of services delivered to their customer are:- Gap 1. Consumer Expectation----------------------Management Perception Gap This gap arises as service marketers may not always understand what consumers expect in a service. This type of gap has an impact on the consumer’s evaluation of service quality Gap 2.Management Perception ------------ Service Quality Specification Gap This gap arises from the fact that many services provider fail to set appropriate service standards required to deliver the service expected by the customer Gap 3.Service Quality Specification ----- Actual Service Delivery Gap This gap results from the employee’s inability to deliver the service according to the standards set. This may be due to unclear standards or due lack of empowerment Gap 4.Service Delivery--------------- External Communications Gap This gap arises due to poor external communications that affect consumer expectations about a service and his perception of the delivered service Sajith GS Page 46
  47. 47. Mahindra & Mahindra Financial Services ltd Problem statement:- As described above in structure the main four entities that are responsible for providing good/bad services are as follows  Sales team  Back office  Cams  AMCs Sales team generates new clients with the help database given by the company, then sales teaminteracts them as per the appointments, now investor decides about the investments then sales executiveprovides them the application form of respective schemes then after filling the application form, applicationform comes to back office where application gets processed then application reaches to CAMs and ,later Sajith GS Page 47
  48. 48. Mahindra & Mahindra Financial Services ltdrespective AMCs receive that application form, from the CAMs and then AMCs will send the account statementalong with a folio number of that mutual fund schemes through which investor comes to know about unitspurchased by him and NAV of his mutual fund scheme Here the entire process takes around 3-4 days, so because of the share market performance theNAV of that fund fluctuates because mutual funds are dependent on share market so once customer agrees onparticular NAV, any change at the time of purchase effects the profitability of investorBecause allotment of NAV is subject to realization of the cheque so as number of units this generally does notmatches with the investor’s expectation not only this investors do not get their account statements on prescribeddate so investor has to enquire about the account statement time and again Sajith GS Page 48
  49. 49. Mahindra & Mahindra Financial Services ltd SWOT analysis of the company and its competitorSTRENGTH WEAKNESS  BRANDNAME  KNOWN TO BE ETHICAL  COMPANY IS JUST 1YR OLD  SUPPORT FROM OTHER DIVISIONS OF  LACK OF MANPOWER MAHINDRA  NOT HAVING NECESSARY  PRESENCE IN ALL OVER INDIA INFRASTRUCTURE  EXPERIENCED PEOPLE IN THE COMPANY  STRONG ASSOCIATION WITH ITS  UNBIASNESS AUTOMOBILE SECTOR ( MAHINDRA SCORPIO )OPPORTUNITY THREATS  ZERO BASE  INDIVIDUAL BROKERS  LACK OF PROPER SERVICES AVAILABLE IN  ITS COMPETITOR’S THE MARKET PROMOTIOAL ACTIVITIES  ABSENCE OF LEADER IN THE MARKET, IN DISTRIBUTION ( MUTUAL FUNDS)  ITS COMPETITOR’NEW BUSINESS PLANS  HUGE POTENTIAL OF MUTUAL FUND  ATTRITION MARKET  LACK OF MANPOWER  GROWTH OF MUTUAL FUND MARKET  NOT HAVING NECESSARY  INCREASE IN INCOME LEVEL OF PEOPLE INFRASTRUCTURESajith GS Page 49
  50. 50. Mahindra & Mahindra Financial Services ltd A COMPARATIVE ANALYSIS OF MUTUAL FUND SCHEMES Equity Diversified SchemeScheme NAV 1 year 3 year 5 year Since annualized annualized annualized InceptionBirla Sun Life Frontline Equity Fund 58.39 -0.53 26.659 34.53 36.58DBS Chola Opportunities Fund- 34.98 09.83 25.7 33.17 12.39CumulativeDSP Merrill Lynch Equity Fund-Growth 10.96 05.36 N.A N.A 8.56DSP Merrill Lynch India T.I.G.E.R Fund – 37.63 -04.33 29.13 N.A 38.34GrowthDSP Merrill Lynch Top 100 Equity 69.38 06.92 30.923 37.71 44.36Growth FundDWS Alpha Equity Growth Fund 62.76 08.23 29.07 38.283 39.77DWS Investment Opportunity Fund 31.20 11.23 30.27 N.A 29.07Fidelity Equity Fund –Growth 23.15 -04.41 23.47 N.A 29.49HDFC Growth Fund-Growth 60.53 08.61 28.24 34.63 31.77HSBC Equity Fund- Growth 85.34 08.91 25.19 41.81 46.15ICICI Prudential Dynamic Plan-Growth 72.81 01.98 27.67 31.78 29.76ICICI Prudential Infrastructure Fund- 25.17 17.82 N.A N.A 34.26GrowthIDFC Imperial Equity fund-Growth 16.27 06.82 N.A N.A 17.48Kodak 30-Growth 81.09 05.78 26.67 39.29 45.02Kodak Opportunities-Growth 35.71 08.57 26.61 39.28 41.39Reliance growth fund-growth 331.5 06.97 26.72 47.17 31.91Reliance Regular Saving Fund-Equity- 20.86 18.41 26.56 N.A 22.62GrowthSajith GS Page 50
  51. 51. Mahindra & Mahindra Financial Services ltdSBI Magnum Sector Umbrella-Contra 34.73 09.11 16.74 22.78 17.64Fund-GrowthSundaram BNP Paribas CAPEX 19.18 -06.67 N.A N.A 20.18opportunities Fund-GrowthSundaram BNP Paribas Select Focus- 71.01 13.47 30.40 36.91 40.29GrowthTata Equity PE Fund-Growth 31.91 02,87 22.71 N.A 32.81Tata Infrastructure Fund-Growth 29.56 04.78 32.06 N.A 36.26Templeton India Growth Fund-Growth 82.19 10.51 24.84 N.A 32.63UTI Dividend Yield Fund-Growth 19.68 06.28 21.49 N.A 22.68UTI Contra Fund-(G) 10.64 02.12 16.49 N.A 18.82ELSSScheme Name NAV 1 Year 3 Year 5 Year Since Annualized Annualized Annualized InceptionDWS Tax Saving Fund 12.34 1.59 N.A N.A 8.52Fidelity Tax Advantage Fund 14.23 -1.43 N.A N.A 14.48Franklin India Taxshield-Growth 112.2 08.39 14.23 27.32 26.56HDFC Long Term Tax Adv. Fund 68.49 05.29 12.38 18.45 24.32HSBC Tax Saver Equity Fund 12.56 1.62 16.86 N.A 17.86Kodak Tax Saver Scheme 14.43 -10.13 22.49 N.A 15.64Principal Personal Tax Saver 82.40 -5.85 24.51 33.74 26.49Reliance Tax Saver-Growth 17.64 3.06 12.73 N.A 13.45Sundaram BNP Paribas Tax Saver 32.61 7.63 22.50 40.94 29.56Tata Tax Advantage Scheme 19.41 3.57 13.57 17.83 17.78BalanceSajith GS Page 51
  52. 52. Mahindra & Mahindra Financial Services ltdScheme Name NAV 1 Year 3 Year 5 Year Since Annualized Annualized Annualized InceptionBirla Sun Life Balanced Fund 29.34 -2.82 14.42 21.39 13.21DSP Merrill Lynch Balanced 46.82 7.19 22.72 22.72 18.38Fund-GrowthFT India Balanced Fund-Growth 36.62 0.36 18.52 25.78 18.62HDFC Balanced Fund-Growth 34.27 5.61 14.72 21.62 17.82Kodak Balance Fund 20.53 2.75 17.78 28.43 17.77Tata Balanced Fund-Growth 56.82 0.08 18.79 26.78 19.72UTI Children’s Career Balanced 12.45 1.24 09.57 16.84 15.22MIPScheme Name NAV 1 Year 3 Year 5 Year Since Annualized Annualized Annualized InceptionBaroda Pioneer MIP Fund 14.96 5.67 12.78 N.A 12.93Birla Sun Life Savings MIP 2 14.54 13.54 22.37 N.A 18.59Savings-GrowthDBS Chola MIP Regular-Growth 15.55 5.54 10.74 14.43 10.89FT India Monthly Income Plan 22.46 3.84 7.72 9.22 09.73HSBC MIP Savings-Growth 1.4 3.56 8.78 N.A 10.99LICMF MIP-Growth 27.67 7.65 10.67 09.78 09.49Principal MIP-MIP Growth 15.36 9.67 11.64 N.A 08.96Reliance MIP 15.68 8.11 10.76 19.89 16.56Tata Monthly Income Fund (G) 21.45 5.61 13.41 17.41 17.72Gilt FundScheme Name NAV 1 Year 3 Year 5 Year SinceSajith GS Page 52
  53. 53. Mahindra & Mahindra Financial Services ltd Annualized Annualized Annualized InceptionBirla Sun Life Gilt Plus Regular 31.40 07.33 10.68 14.78 12.93Plan – GrowthDSP Blackrock G Sec Plan A Long 31.98 06.91 11.28 13.65 12.06Duration – GrowthDWS Gilt Fund - Regular – Growth 10.99 08.11 16.67 26.41 21.02Fidelity Flexi Gilt Fund – Growth 11.87 08.98 15.99 29.10 26.09ICICI Prudential Gilt Fund 31.65 05.82 11.67 18.54 12.91Investment Plan - GrowthMirae Asset Gilt Fund - 10.36 9.61 18.51 24.61 19.71Investment Plan - Provident FundReliance Gilt Securities Fund 11.92 10.17 19.71 32.76 29.62-Retail – GrowthTempleton India Govt. Securities 32.66 08.45 13.41 18.34 14.72Fund - Composite Plan –GrowthDebt (Income) FundScheme Name NAV 1 Year 3 Year 5 Year Since Annualized Annualized Annualized InceptionBirla Sun Life Income Fund - 33.11 06.47 09.89 10.78 10.18GrowthBirla Sun Life Income Plus - 41.41 05.68 09.18 11.68 11.28GrowthCanara Robeco Income Scheme 18.99 09.73 09.87 10.78 10.20- GrowthICICI Prudential Income Fund – 29.42 06.44 09.74 08.99 09.18GrowthIDFC Dynamic Bond Fund - Plan 18.71 07.61 07.99 09.98 09.64A - GrowthKotak Bond Regular Plan – 25.64 08.61 10.61 11.45 10.23GrowthSajith GS Page 53
  54. 54. Mahindra & Mahindra Financial Services ltdReliance Income Fund - Retail - 30.89 07.81 09.78 11.28 10.93Growth Plan – Growth CHRONICLE ORDER OF COMPANIES GIVING MOST RETURN.Fund Category 5 Yr ReturnSajith GS Page 54
  55. 55. Mahindra & Mahindra Financial Services ltdDSPML T.I.G.E.R. Fund Equity: Diversified 45.45Tata Infrastructure Equity: Diversified 44.92Magnum Contra Equity: Diversified 44.81Kodak Opportunities Equity: Diversified 44.57UTI Infrastructure Equity: Diversified 43.14Reliance Growth Equity: Diversified 42.88Magnum Multiplier Plus Equity: Diversified 42.76Sundaram BNP Paribas Select Midcap Equity: Diversified 40.64HDFC Top 200 Equity: Diversified 39.29BoB Growth Equity: Diversified 38.57Principal Child Benefit Hybrid: Equity-oriented 36.79Magnum Balanced Hybrid: Equity-oriented 31.24HDFC Prudence Hybrid: Equity-oriented 29.68Birla Sun Life Income Debt: Medium-term 8.29ABN AMRO Flexi Debt Plan Debt: Medium-term 7.78ICICI Prudential Long-term Debt: Medium-term 7.55Birla Dynamic Bond Retail Debt: Medium-term 7.51Kotak Flexi Debt Debt: Medium-term 7.47Sundaram BNP Paribas S... Equity: Diversified 43.35ICICI Prudential Dynamic Equity: Diversified 43.26DWS Investment Opportunity Equity: Diversified 43.07DSPML Equity Fund Equity: Diversified 42.89DSPML Top 100 Equity Reg Equity: Diversified 41.96Kotak 30 Equity: Diversified 41.33Sajith GS Page 55
  56. 56. Mahindra & Mahindra Financial Services ltdAssets Under Management (AUM) as at the end of July-2008 (Rs in Lakhs) Average AUM for the month Mutual Fund Name Excluding Fund Of Funds1. ABN AMRO Mutual Fund 640038.552. AIG Global Investment Group MF 313127.37Sajith GS Page 56
  57. 57. Mahindra & Mahindra Financial Services ltd3. Benchmark Mutual Fund 331997.24. Bharti AXA Mutual Fund N/A5. Birla Sun Life Mutual Fund 3590604.46. BOB Mutual Fund 7239.327. Canara Robeco Mutual Fund 288506.518. DBS Chola Mutual Fund 237199.859. Deutsche Mutual Fund 1291156.710. DSP Merrill Lynch Mutual Fund 1667547.711. Escorts Mutual Fund 14333.3412. Fidelity Mutual Fund 835886.2113. Franklin Templeton Mutual Fund 2684222.214. HDFC Mutual Fund 4477316.815. HSBC Mutual Fund 1488820.116. ICICI Prudential Mutual Fund 5432187.117. ING Mutual Fund 860829.6118. JM Financial Mutual Fund 1294474.319. JPMorgan Mutual Fund 217099.2520. Kodak Mahindra Mutual Fund 1807062.821. LIC Mutual Fund 1405616.222. Lotus India Mutual Fund 792523.5523. Mirae Asset Mutual Fund 110713.8424. Morgan Stanley Mutual Fund 320501.4225. Principal Mutual Fund 1320730.226. Quantum Mutual Fund 6353.8427. Reliance Mutual Fund 909379428. Sahara Mutual Fund 17870.15Sajith GS Page 57
  58. 58. Mahindra & Mahindra Financial Services ltd 29. SBI Mutual Fund 2917896.1 30. Standard Chartered Mutual Fund 1273348.5 31. Sundaram BNP Paribas MF 1256370.5 32. Tata Mutual Fund 1967893.3 33. Taurus Mutual Fund 32016.93 34. UTI Mutual Fund 4898281.3 Grand Total 52893559Assets under Management (AUM) is a term used by financial services companies in the mutual fund andmoney management, investment management, wealth management, and private banking businesses togauge how much money they are managing. Many financial services companies use this as a measure ofsuccess and comparison against their competitors; in lieu of revenue or total revenue they use total assetsunder management.By this table I want to show which company has how much money to handle. Asset under managementmeans the total amount of money that asset management company has to manage in different schemesthat they are having for which they appoint fund manager who has to invest money according to theobjective of the scheme and try to keep portfolio which can give maximum returns to the investors. Bylooking at this table we can see total asset under management is 52893559 lakhs. So after looking at thishuge amount we can say lot of people is now started investing in mutual fund.RANKING OF THE COMPANYBy looking at this table we can rank various asset management companies on the basis of asset undermanagement. They are as follows: Sajith GS Page 58
  59. 59. Mahindra & Mahindra Financial Services ltd1) Reliance mutual fund2) ICICI prudential mutual fund3) UTI mutual fund4) BIRLA sun life mutual fund5) SBI mutual fund By looking at this rank we can say that in India people prefer to invest in reliancescheme and they are having great faith on Reliance Company.MARKETING EXPERIENCE:The project has been a great learning experience. It has provided me with practical learning opportunities inselling and marketing. And these training would be a great help for me to give shape to my career.The first phase in this project was to learn about the product it means to have good knowledge about the mutualfund for that we were given proper training in the company by the big people from ABN AMRO bank, Kodak LifeInsurance etc.The second phase was to do lot of telephonic calls and try to take appointment from the people. Once he is readyto give appointment then try to meet him at any suitable place after meeting him try to give him full knowledgeabout the product because lot of people have don’t have any idea of the investment in mutual fund then we try torecognize his needs and also income level because that help us to give him right product and design his portfolio Sajith GS Page 59
  60. 60. Mahindra & Mahindra Financial Services ltdwell because every person has different needs because some wants to save money for immediate future. Somewants to save for their children’s education or marriage and some for tax benefits so we have to plan according tothe need of investors. And then I try to give them that product which are useful for them and try to close the deal.Another approach that I tried is to meet the HR manager of small companies and try to give them knowledgeabout the product by meeting them directly because as a marketing guy you have to think that anybody can becustomer for you so you have to be confident and try to talk to them properly and try to explain them merit of theproducts and give them proper facts that would help you to close the dealAnother approached that I tried is that I began to use my personal network of friends and asked them to speak totheir acquaintances – personal and official and check if they might be interested in investments. Even here I gotgreat response from my friends and was able to fix many appointments to take things further.And then I also have visited TECH MAHINDRA for two weeks and try to give them knowledge about the productand help them to invest especially to save their tax.And then I also try to increase my database in the way that I used to call the same person who has invested withme previously and ask them whether if any of your friends or relatives is ready to invest and then try to take theirnumbers and call them.But overall it is a wonderful experience because what I learnt in theory during my 1 st and 2nd semester I amapplying them in the real life situation. And I also want to thank my company guide Mr. T Raghunath sirbecause he was able to solve all our problems and also give us proper suggestion whenever needed and guide usthrough any situation.And one most important thing is that I have learnt from this training is that what I was expecting since I am doingmy MBA I would be given an executive job but it is not like that because everybody has to learn basic and startfrom scratch. But all this things taught me a lot especially how to remain humble and honest.Team playing capability Here in Mahindra finance I have learned working in team with a common objective with my othercolleagues where I have learn coordination , time management , and work life balance and also I have developedmy convincing , interpersonal and selling skills also I have experienced what is the work pressure and how tohandle that with your consistent performanceConfidence to interact with company executives and others:- Sajith GS Page 60

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