SCOPE FOR MUTUAL FUND ADVISORY BUSINESS IN JAMNAGAR

1. 1
A PROJECT REPORT
ON
“SCOPE FOR MUTUAL FUND ADVISERY BUSINESS IN
JUNAGADH‟‟.
FOR
Submitted to
Marwadi Education Foundation’s Group of Institutions
In partial fulfillment of the requirement of the award for the degree of
Master of Business Administration
Under
Gujarat Technological University
Under the guidance of
Faculty Guide: Company Guide:
Megha Mody
(assistance prof.)
Mr.GopalKapupara
(Sr.Executivesale)
Submitted by
CHOTALIYA NIRAJ
Enrolment No.: 138270592088
MBA Semester III
Marwadi Education Foundation‟s Group of Institutions
MBA Program
Affiliated to Gujarat Technological University
Ahmadabad
July 2014

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COPMANY CERTIFICATE

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Student Declaration
I CHOTALIYA NIRAJ hereby declare that the report for Summer Training
Project‟ entitled “SCOPE FOR MUTUAL FUND ADVISERY BUSINESS
INJUNAGDH”Is a result of my own work and my indebtedness to other work
publications, references, if any, have been duly acknowledged?
Place: Student Signature
Date: CHOTALIYANIRAJ

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PREFACE
As a part of my course curriculum of MBA in summer internship program, we are
assigning some practical studies as well as the theoretical knowledge in the related areas
for completing the management research project. I am preparing comprehensive report on
MF industry and “SCOPE OF MUTUAL FUND ADVISERY BUSINESS IN JUNAGADH‟‟.
The basic idea of assignment of this project is to augment the knowledge of
students about the industry in its totality and appreciate the use of an integrated loom. It is
concerned about the environment issues and tribulation. This makes students more
conscious about industry and it makes student capable analyzing industry's position in the
competitive market. This may also enhance student's logical ability.
So far as the selection of the industry is concerned, I have chosen the MF industry.
In my project, I am making use of secondary data.
This projects really my knowledge about MF and the industry as whole. I have
gained lot of knowledge from this project and I believe this will help me in near future.

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ACKNOWLEDGEMENT
I would like to begin in the name of “GOD THE ALMIGHTY” without whose grace
and blessing, the present work would not have taken this shape.
In today's era of cut & throat competition, Master of Business Administration is sure
to have edge over their counterparts.
MBA education brings its students in direct contact with the real corporate world
through training. The MBA program provides its student with an in-depth study of various
managerial activities that are performed in an organization. I have undergone my SIP at
“N.J.INDIA INVEST”-Junagadh. I have selected this industry to enrich my knowledge about
the practical aspect of the mutual fund and to enhance my financial skills in the portfolio
management and the equity analysis.
I would like to express my deep gratitude and sincere regard for all those people
who have helped in the completion of this report. First of all I would like to thank my
company guide Mr.Gopal Kapupara (Sr. Executive-sales), Rajesh Jani (CRO) and Nikhil
Bhatt for his valuable guidance and support.
I would like to make a special mention for Prof.Megha Mody (Guide) for giving me
his valuable time, support, and inputs that helped me at every step in this project. This
project is a step in the corporate i.e., SIP, during which I got the opportunity to learn a lot.
So, I would thank all those people who helped me in this project. In the end I take the
opportunity to thank my friend for supporting me at every step and bearing with me.

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INDEX
SR
NO
PARTICULAR PAGE
NO
Part I General Information
1
Industry Overview
1.1 EXECUTIVE SUMMARY 9
1.2 INDUSRTY ANAIYSIS 10
1.3 ADVANTAGES OF MUTUAL FUND 12
1.4 DISADVANTAGES OF MUTUAL FUND 13
2 Company Overview
2.1 INFORMATION OF THE COMPANY
14
2.2 VISION & MISSION OF THE COMPANY
19
2.3 PRODUCT OF THE COMPANY
20
2.4 DEPARTMENT OVERVIEW
21
2.5 SWOT ANALYSIS
31
Part II Research Work
INTRODUCTION OF STUDY
3.1 BACKGROUND OF THE STUDY
34
3.2 REVIEW OF LETRETURE
45
3.3 STATEMENT OF THE PROBLEM
46
3.4 OBLECTIVE OF STUDY
47

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4 Research Methodology
48
4.1 SOURCES OF DATA
49
4.2 SAMPLING SIZE
50
5 Analysis and interpretation of data
51
6 Findings
65
7 conclusion
66
8 suggestions
68
8 Limitations of the study
69
9 Bibliography [APA Format compulsory]
Annexure
70/71

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EXECUTIVE SUMMARY
All investment carry risk in some form or the other. Risk, liquidity and return are the
so called factor, which are considered before making an investment. But there is a tradeoff
between risk and return. Higher the risk, higher the return, lower the risk lower the return.
The decision of which mode of investment to choose largely depends upon the investors
and the factors which according to him is the most vital one.
People with more security concern choose fixed investment in govt. securities and
various post office saving. The main reason for choosing such an investment mode is that
the amount invested in the above stated securities seems to be secure and hence they
seemed to be more preferred one where security is the prime concern.
People whom returns are most important are ready to take risk to earn fairer risk.
The preferred mode of investment over here is shares and mutual fund. The risk factor is
these modes of investment is basically performance based. If the company performs well
the investors can accept fairer returns but if the company fails to perform them there can
be a threat to the invested amount. Hence the returns are very with changes in the market
condition.
Hence it is to the investor to decide that which is the best kind of investment that
would cater his need. The hypothesis of the study was “Investors still prefer the traditional
funds for investment instead the modern method like mutual fund.

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INDUSRTY ANAIYSIS
What is a mutual fund?
Mutual fund is a mechanism for pooling the resources by issuing units to the
investors and investing funds in securities in accordance with objectives as disclosed in
offer document.
A mutual fund is a professionally-managed form of collection investment that
pools money from many investors and invest it in stock, bonds, short-term money market
instruments, and/or other securities.
Investments in securities are spread across a wide cross-section of industries
and sectors and thus the risk is reduced. Diversification reduces the risk because all
stocks may not move in the same direction in the same proportion at the same time.
Mutual fund issues units to the investors in accordance with quantum of money invested
by them. Investors of mutual funds are known as unit holders.
The profits or losses are shared by the investors in proportion to their
investments. The mutual funds normally come out with a number of schemes with different
investment objectives which are launched from time to time. A mutual fund is required to
be registered with Securities and Exchange Board of India (SEBI) which regulates
securities markets before it can collect funds from the public.

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MUTUAL FUND IN INDIA
 Unit Trust of India was the first mutual fund set up in India in the year 1963. In early
1990s, Government allowed public sector banks and institutions to set up mutual
funds.
 In the year 1992, Securities and exchange Board of India (SEBI) Act was passed.
The objectives of SEBI are - to protect the interest of investors in securities and to
promote the development of and to regulate the securities market.
 As far as mutual funds are concerned, SEBI formulates policies and regulates the
mutual funds to protect the interest of the investors. SEBI notified regulations for the
mutual funds in 1993.
 Mutual funds sponsored by private sector entities were allowed to enter the capital
market. The regulations were fully revised in 1996 and have been amended
thereafter from time to time. SEBI has also issued guidelines to the mutual funds
from time to time to protect the interests of investors.
 All mutual funds whether promoted by public sector or private sector entities
including those promoted by foreign entities are governed by the same set of
Regulations. There is no distinction in regulatory requirements for these mutual
funds and all are subject to monitoring and inspections by SEBI. The risks
associated with the schemes launched by the mutual funds sponsored by these
entities are of similar type.

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ADVANTAGES OF MUTUAL FUND
Advanced Portfolio Management
You pay a management fee as part of your expense ratio, which is used to hire a
professional portfolio manager who buys and sells stocks, bonds, etc. This is a relatively
small price to pay for help in the management of an investment portfolio.
Dividend Reinvestment
As dividends and other interest income is declared for the fund, it can be used to
purchase additional shares in the mutual fund, thus helping your investment grow.
Risk Reduction (Safety)
A reduced portfolio risk is achieved through the use of diversification, as most
mutual funds will invest in anywhere from 50 to 200 different securities - depending on
their focus. Several index stock mutual funds own 1,000 or more individual stock positions.
Convenience and Fair Pricing
Mutual funds are common and easy to buy. They typically have low minimum
investments and they are traded only once per day at the closing net asset value (NAV).
This eliminates price fluctuation throughout the day and various arbitrage opportunities
that day traders practice.

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Diversification
Using mutual funds can help an investor diversify their portfolio with a minimum
investment. When investing in a single fund, an investor is actually investing in numerous
securities. Spreading your investment across a range of securities can help to reduce risk.
A stock mutual fund, for example, invests in many stocks - hundreds or even thousands.
DISADVANTAGES OF MUTUAL FUND
High Expense Ratios and Sales Charges
if you're not paying attention to mutual fund expense ratios and sales charges; they can
get out of hand. Be very cautious when investing in funds with expense ratios higher than
1.20%, as they will be considered on the higher cost end. There are several good fund
companies out there that have no sales charges. Fees reduce overall investment returns.
Management Abuses
Churning, turnover and window dressing may happen if your manager is abusing his or her
authority. This includes unnecessary trading, excessive replacement and selling the losers
prior to quarter-end to fix the books.
Tax Inefficiency
Like it or not, investors do not have a choice when it comes to capital gain payouts in
mutual funds. Due to the turnover, redemptions, gains and losses in security holdings
throughout the year, investors typically receive distributions from the fund that are an
uncontrollable tax event.
Poor Trade Execution
If you place your mutual fund trade anytime before the cut-off time for same-day NAV,
you'll receive the same closing price NAV for your buy or sell on the mutual fund. For
investors looking for faster execution times, maybe because of short investment horizons,
day trading, or timing the market, mutual funds provide a weak execution strategy.

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INTRODUCTION
OF
CAMPANY

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INTRODUCTION OF CAMPANY
GENARAL INFORMATION
Two dynamic young men after completing their education were about to start
their career when they sow the growing scope of the financial service sector. Both of them
decided to jump into the same field and came out with the dynamic concept of NJ Capital
stock now, which is known as NJ India Invest. The word NJ stands for the first letter of
Neeraj Choksi and Jignesh Desai the founder directors of NJ India Invest.
NJ India Invest Pvt. Ltd is one of the leading advisors and distributors of financial products
and services in India. Established in the year 1994, NJ has over a decade of rich exposure
in financial investment space, portfolio advisory services and distribution of financial
products.
NJ prides in being a professionally managed, quality focused and customer centric
organization. The strength of NJ lies in the strong domain knowledge in investment
consultancy and the delivery of sustainable value to clients with support from cutting-edge
technology platform, developed in-house.

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Presently, has over INR 10,000+ Corers of mutual fund assets under advice. It is a
reflection of the trust, commitment and values that NJ shares with its clients. In India, is
present in 130 locations in 22 states. Also has a wide network of financial advisors, under
the division, which offers a dedicated platform for independent financial advisors to help
them grow &develop their advisory practice.
Today provides over 15000 of such advisors with a unique, comprehensive ‟360 Advisory
Platform‟ to grow their business and offer quality solutions to their clients. NJ is tie up with
44 Asset Management company. It is national levelled distribution channel of mutual fund.
At NJ we believe in, having single window, multiple solutions that are integrated for
simplicity and sapience. NJ provides the large product basket. He is offering mutual fund,
fixed deposite, portfolio management, Insurance, financial planning real estate.
The vision of the group is to be leaders in businesses driven by customer
satisfaction, commitment to excellence and passion for continued value creation for all
stakeholders. This vision has helped us grow and build the trust of our customers and
associates which is at the cornerstone of everything we do. Trust is also at the heart of our
success and the driver for passion for our success.
NJ Group is a leading player in the Indian financial services industry known for
its' strong distribution capabilities. The journey of NJ began in 1994 with the establishment
of NJ India Invest Pvt. Ltd., the flagship company, to cater to investor needs in the financial
services industry. Today, the NJ Wealth Distributor Network, earlier known as the NJ
Funds Network, started in 2003 is among the largest networks of financial products
distributor in India.
Over the years, NJ Group has diversified into other businesses and today has
the presence in businesses ranging from financial products distributor network, asset
management, real estate, insurance broking, training & development and technology. Our
rich experience in financial services, combined with executional capabilities and strong
process & system orientation, has enabled us to shape a rising growth trajectory in our
businesses.

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NJ Group is based out of Surat in Gujarat (India) and has presence in 130 locations
in India and has over 1,100* employees, 15000advisors, 12000000 customers.
At NJ they believe in...
Having single window, multiple solutions that are integrated for simplicity and sapience.
Making innovations, accessions, value-additions, and a constant process.
Providing customers with solutions for tomorrow which will keep them above the curve.
.

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COPMANY VISION AND MISSION
VISION

 Total Customer Satisfaction
 Commitment to Excellence
 Determination to Succeed with strict adherence to compliance
 Successful Wealth Creation of our Customers
Mission
We work towards building trusted relationship with our stakeholders, for inclusive growth
through constant process of innovation; time bound implementation & execution of ideas
and technological developments. We stretch our means and go overboard to make sure
that our clients' aspirations, dreams and expectations are met with, through high service
standards.

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PRODUCT OF THE COMPNAY
NJ offers advisory and distribution services on the following products.
Investment Products:
 Mutual funds (MF) – covering all AMCs & all schemes,
 Fixed Deposits of companies,
 PMS products (Third party & NJ)
 Government/RBI bonds,
 Infrastructure Bonds,
 Approved securities for charitable trusts, etc
Real Estate:
 Residential properties
 Commercial properties
Training & Education:
 Certification training courses
 AMFI
 CFP
 Training products.

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DEPARTMENTAL OVERVIEW
SR NO. PARTICULAR PAGE NO.
1 FINANCE DEPARTMENT
1.1 FINANCIAL AUDIT 22
1.2 MONEY FLOW 23
2 MARKETING DEPARTMENT
2.1 MARKETING ENVIRONMENT 26
2.2 NJ PRINTSHOP 26
2.3 NJPUBLICATION 26
2.4 CUSTMER CARE 27
3 OPERATING DEPARTMENT
3.1 NJ WEALTH ADVISOR 28
3.2 NJ INDIA REALY 28
3.3 NJ FUND NETWORK 29
3.4 NJ GURUKUL 29
3.5 OPERATING PROCESS 30

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FINANCE DEPARTMENT
FINANCIAL AUDIT:-
Financial audit means auditing the company internal data, which indirectly help the
company in finding out the deviation to corrective action. In NJ financial audit is done by
the two ways:-
1. Internal audit:-
This type of the audit is not genially accepted by the company in N J. it is
accepted in order to have track of its financial transactions. Here internal audit is done
on the monthly basis. Report of the audit is available from each auditor from each
book of the account maintained.
2. Statutory audit:-
Company on a curtly basis generally does this type of audit. There the
company audits its financial statement on a monthly basis by discussing it with financial
auditor. Again this audit is done at the end of each year for preparing financial
balance sheet, profit & loss account and other financial statement. This type of
statement has to be issued at the end of each financial year to the public but being a
private company NJ prepare this document for the submission of the government and IT
sector.

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MONEY FLOW:-
The above diagram shows the flow of the money taking place at the N J India invest the
money flow through two channel receipt and payment .The above diagram shows the flow
of the money taking place at the N J India Invest the money flow through two channels
receipts and the payment.
NJ INDIA INVEST has receipt in form of brokerage
The N J work as a distributer of mutual fund, they have a receipt in the form of brokerage.
The company has their receipt as brokerage.
NJ INDIA INVEST has payment on the form of salary.
In the NJ the payment part is divided in to 3 parts...
i. Brokerage
ii. Monthly expense
iii. Other
Money Flow
Receipt
Monthly
Brokerage
Payment
Monthly
Brokerage Other
Salary, rent,

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 Acquisition of the fund:-
As N J India invests is private company so the initial fund was acquired from their
own fund from two managing director of the company who are niraj Choksi and Jignesh
desai. Now fund id acquired from their profit only.
 Capital structure
In NJ INDIA INVEST, the manager of the company has developed an appropriate
capital structure, which advantages the company so N J has a capital structure of their
own funds. They are not borrowing their fund from anywhere else.
 Turnover of the Company:-
Turnover of the company in last 10 year is 1000 crores. So we can say that on an
average annual turnover of the company are 100 crores but at the time of depression, the
turnover was less than 100 crores and at the time of boom, the As N J India invests is
private company so the initial fund was acquired from their own fund from two managing
director of the company who are niraj Choksi and Jignesh desai. Now fund id acquired
from their profit only.
In NJ INDIA INVEST, the manager of the company has developed an appropriate capital
structure, which advantages the company so N J has a capital structure of their own funds.
They are not borrowing their fund from anywhere else.
Turnover may exceed than 100 crores.

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 Profitability and dividend:-
N J India Invest is providing brokerage to their partner from their profit and the
brokerage structure is as follow:
Equity and Balance fund - 0.50 to 0.75 paisa
Debt fund - 0.70 to 1 rupees
Short term fund - 0.40 to 0.50 paisa
ELSS - 2.50 to 3%

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MARKETING DEPARTMENT
 Marketing environment
The marketing team will help us give the relevant support needed for effective sales,
creating brand and for the development of our business. N J India invest is the corporate
distributer of mutual fund. But now days there are many competitors in the market so this
work is dangerous for marketing department.
 NJ PRINTSHOP
Marketing plays a very important role in business as it contributes greatly to
the success. It is the process of introducing and promoting the business into marketing to
encourage sales.
NJ PRINTSHOP is online shopping portal dedicated for only NJ partner. Itoffers you
ready to use effective and attractive marketing products to market and enhance your
business. Product like banner, booklet, personalized product.
 NJ PUBLICATION
It is very essential to keep oneself updated with the latest trend, offering and happening in
the market, to sustain successfully in business, in today‟s competition.
NJ believes in making its partner updated with the latest happening in the market. They do
not need to go anywhere to search for detail.
NJ offer all this through its various publication, some of which come with the whole list the
latest schemes with complete details.

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 CUSTOMER ARE
N J customer care offers investment with a “single service point” to the entire advisor to
help solve their customer quires. The centralized team of customer care executive would
solve investor‟s quarries at the earliest. Advisors and Investors can also take view the
latest status of all their quarries online.
As N J advisor may submit their quarries to customer care executive by
- Telephone
- Email
- Online directly through your advisors (partner) desk.

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OPERATION DEPARTMENT
Established as a distinct entity, NJ Wealth Advisors Pvt. Ltd. seeks to offer comprehensive
financial planning and portfolio advisory services to premium clients. With NJ Wealth
Advisors, NJ seeks to leverage the strong financial advisory and portfolio management
skills gained in over a decade of experience in the industry. NJ Wealth Advisors offers its
clients with quality, unbiased, need-based advisory services & investment solutions.
NJ INDIA REALY
At NJ India Realty we understand the challenges in shaping reality from your realty
aspirations. The strong processes and systems in place ensure the effective & timely
execution of the projects. High-quality assurance forms the under-current in the entire
value-chain of service delivery. NJ India Realty brings with it professional management,
total quality consciousness, confidence and keenness to offer customers with high-quality
development at attractive value propositions. At NJ India Realty we commit ourselves to
the continuous improvements, accessions in the value-chain and the best practices
adopted by the industry.

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NJ Funds Network, started in 2003, is a dedicated channel for providing independent
financial advisors or IFA‟s with a complete business platform for the strengthening and
development of their advisory practice. NJ offers advisors under its network will all the
products; support and services that enables them add considerable value to their
business, emerge as a „new age professional financial advisor‟ and compete confidently in
the industry.
NJ Funds Network is a unique, first time in India concept that offers such comprehensive
business platform to independent financial advisors.
This sporadic growth in terms of need of performers in financial advisory services has lead
to the crunch of available performers. Though lots of youngsters are getting into financial
advisory services, but the greatest challenge is of RIGHT SELLING, for which adequate
Training is a prerequisite. Advisory function demands updated knowledge, backed up by
honed skills to fetch effective business. Building long term relationship with clients
depends upon possessing clear edge over others in the field. Hence continuous people
development has an important role in building this fraternity.

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OPERATION PROCESS
This department plays an important role in N J business. We can say heart of the N J
because without this N J department does not make the business. Working of theses
department divided into the two parts.
 Processing
 Registration
Processing is the main work of the operation department and the registration is secondary
part of the work but it is as much important as the processing.

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SWOT ANALYSIS

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SWOT ANALYSIS
STRENGHEN
- NJ is tie up with 44 assets Management Company so scop of mutual fund is enhances.
- NJ invest is 130 located, 22 states. Client can get the services at ant130 location.
- NJ invest has best information technology software like partner desk, client desk.
- N J India Invest has given the very good research support to his advisor.
- The company has own print shop that will provide service to the advisor as well as their
employees.
- NJ has strong 360 degree support which makes it different from its competitors.
- N J Funds has over INR 10,000+ Crores of mutual fund assets under advice.
WEAKNESS
- There is less people know about NJ invest company. Company should do more
advertisement of it.
OPPORTUNITY
- It has wide scope in mutual fund to increase the business.
- Company should also emphasize on insurance & fixed deposit.
THREATS
- Rigid investor of insurance, fixed deposit.

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INTRODUCTION OF TOPICS
SR NO. PARTICULAR PAGE NO.
1 BACKGROUND OF THE STUDY 34
2 SCOPE OF WEALTH ADVISORS 43
3 REVIEW OF LETRETURE 45
4 STATEMENT OF THE PROBLEM 46
5 OBLECTIVE OF STUDY 47

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INTRODUCTION
The NJ Wealth Advisors Network is among India's largest and most successful network of
advisors in the financial services industry. The NJ Wealth Advisory Platform is a
comprehensive, 360° platform offering end-to-end solutions, required for a successful
wealth advisory practice.
Started in 2003, the network seeks to reach out to the common man and extend the
opportunity to create wealth through sound investment principles and strategies. The NJ
Wealth Advisors Network today has over 15,000 Advisors, called as NJ Partners, spread
across India catering to over 12 laths investors and having an AUM close to Rs.10, 000
Cores.
The platform offers Partners with a basket of wealth products in addition to comprehensive
solutions in all important areas of business, backed by cutting edge IT services. The
Wealth Advisory Platform has managed to successfully transform the lives of many wealth
advisors by providing them with one answer to all advisory practice related concerns. NJ
Wealth Advisors Network has its presence in over 130 locations in India.

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The NJ Wealth Distributors Platform
1. Choice of Products
2. Cutting-edge Technology Solutions
3. Efficient Operations and Customer Care Service
4. Comprehensive Marketing Support
5. In-depth Training & Research Support
6. Scientific Business Guidance with RM

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1. Choice of Products & Services
To be a successful financial products distributor, a rich product basket is the first starting
point. NJ is a registered member of NSE and BSE, and a Depository Participant with
CDSL, offering a wide range of financial products and services. The customers of NJ
Wealth Partners enjoy a wide choice of investment opportunities in diverse products and
asset classes. The cross-distribution of products enables the Partners to build deeper and
mutually beneficial relationships with their customers.
The product basket at NJ comprises of:
 Product basket
 Domestic mutual funds (all AMCs)
 Fixed Deposits of companies
 Portfolio management Services products (Third party & NJ)
 Government/ RBI/ Infrastructure bonds
 Real Estate
 Partner Services
 Dedicated Relationship Manager
 Marketing & Sales support
 Research support
 Training & Education support
 Dedicated Customer Care / Query management support
 Technological support, including on line business / 'Partners Desk' with CRM,
Financial Planning & Employee Management modules
1. NJ Trading and Demit account service NJ Wealth Partners get benefitted
immensely as there are multiple modes through which the customer can directly
invest, once the subscription to NJ Trading & Demit Account (TADA) is made. This
reduces the time and

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2. Effort of placing a transaction, helping the Partner to enhance his servicing
(customer handling) capacity.
Multiple modes of transactions available to customers of NJ Partners -
 On line (Demit Mode only)
 Call & Transact (Demit Mode only)
 Off line (Demit /Non Demit)
2. Cutting-edge Technology Solutions
One of the key differentiators for NJ Wealth is the power of technology, arguably
unmatched in industry today. The customized solutions, developed in-house by IT team,
cater to the many specific needs of the financial products distribution practice, both for the
investors and distributors.
On line desk solutions with mobile platforms.
 NJ Client Desk: comprehensive, family wealth management solution for
clients/investors of NJ Wealth Partners.
 NJ Wealth Partners Desk: complete business management platform for
distribution practice for NJ Wealth Partners.
 NJ Trading Desk: online transaction desks in mutual funds for subscribers of
NJ's Trading and Demit account service.
3. Efficient Operations and Customer Care Service:
Quality delivery standards and timely resolution of queries is very crucial for winning the
trust and comfort of customers. With its rich experience, expertise and years of continued
focus on development of processes & systems, NJ Wealth has managed to build
operational, delivery and service quality standards that are unmatched in the industry.
NJ also has a dedicated NJ Customer Care for identification and quick resolution of
queries within defined TAT for NJ Wealth Partners. NJ's Customer Care capabilities are
among the most mature in the industry with features of auto-query posting, auto-resolution,
integration with third parties and predictive capabilities.

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4. Comprehensive Marketing Support:
NJ has a unique online service of BizTalk – a virtual shop, which offers end-to-end
marketing solutions for promoting sales, creating brand and developing distribution
business. The support services on offer include branding support, regular publications
support, e-communications support and event management support. NJ BizTalk offers
online payment tracking system with door-step delivery of high quality branding and
marketing resources.
5. In-depth Training & Research Support:
Training is an essential part of the distribution practice, and NJ keeps it well under focus
through regular training on business practices and products. NJ Gurukul, an NJ Group
entity, offers training programmers‟ and certification courses including the prestigious
CFPCM for NJ Partners. NJ Partners also have access to the research based publications
which, combined with online Knowledge Desk and other tools.
6. Scientific Business Guidance with Relationship Manager:
NJ Wealth has an institutionalised and an automated, logical approach to sales
management. Every NJ Wealth Partner is evaluated scientifically on multiple business
parameters including business, services standards, awareness, etc on a monthly
frequency. A system driven process then directs the dedicated Relationship Manager to
concentrate and work upon areas of improvement without any scope for subjectivity and
biasness. The Relationship Manager also engages with Partners on a day-to-day basis for
business support and guidance.

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OPPORTUNITY NJ WEALTH ADVISOR
NJ INDIA INVEST Pvt Ltd operates a division called NJ WEALTH ADVIORS NETWORK to
offer a wide range of product and consultancy to individuals and entities seeking to build
the wealth advisory practice.
NJ seeks to leverage the strong financial advisory and portfolio management skills gained
in Over A decade of experience in the industry.NJ wealth advisor offer its client with quality,
unbiased, need based advisory services, investment solution and investment product.
Traditional Advisors NJ Wealth Advisors
Product are being offered based on product
features rather than the need of customer
Need of the customer is analyzed and
appropriate product are suggested.
Represents manufacture or product provides
interest.
Represent client‟s interest.
Advisory is premium.
Normally they sell limited product. Advisory is offered on a wide range of product
and .vi, tax planning, estate planning, cash flow
management.

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Wealth Advisory product
Investment Real Estate Insurance
Mutual Fund Residential Property Life Insurance
Portfolio Management
Services
Commercial Property General Insurance
Bond
Fixed deposits
Debenture

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EARNING OPPORTUNITY IN MUTUAL FUNDS
Upfront Brokerage:
This is paid at the time o investment from client. It is calculated on nominal value.
Trail Brokerage:
Paid till the fund I invested and that too on the valuation of the investment.
Exam:
Mutual fund advisor gets 50000 from investor and invest in mutual fund reliance
equity saving scheme. He is received brokerage on nominal value. After 1 month price of
mutual fund is increased 50000. Now is increased. Advisor is given the Trail brokerage on
150000.
It is good part of NJ. Advisors are encouraged to increase their client .advisor
always advised the product which give him high brokerage and high return to client.

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FEATURES OF WEALTH ADVISORY MODEL
1. True wealth managers evaluate the entire financial picture: This includes assets,
liabilities, goals, appetite for risk, need for current income and future financial issues such
as retirement. It‟s impossible to plan for the future without knowing where you are today or
by over-focusing on one particular area of finances such as investments.
2. True wealth managers consider funding goals rather than mere asset
allocation: The obsession with asset allocation – how investments are broken into assets
such as stocks, bonds, cash, commodities and real estate – has led too many financial
advisors to ignore the bigger picture question. That question is whether a specific
individual – you – is sufficiently funding a retirement plan, a college savings plan, an
emergency fund or whatever goal it is to meet that goal, or not. The way to measure
whether that goal is being met or can be met in the future is by whether there will be
enough to withdraw over a period of time to fund that objective. Once that question is
answered, the asset allocation question can be tackled and the answers will be more
evident.
3. True wealth managers don’t try to outperform the market: Any investment
managers that outperform the market eventually find out that they can‟t continue to do so
on a long-term basis. Rather than fight the market, true wealth managers use efficient
indexing vehicles to gain market returns for their clients and use probability analysis to
"stress test" future investment returns in their projections and financial plans. If markets
plunge and reduce the earning potential of a portfolio, the true wealth manager can adjust
the asset allocation, advise the client to contribute more or reduce withdrawal options on
the other end.

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SCOP OF WEALTH ADVISORY BUSINES MODEL
These solutions offer the service of 360 degrees to your financial needs and will
take a lot of other financial decisions for years, how wealth management can be important
to you, the point below that attempt to explain.
Investment Planning
When you think about winning return of current assets is an important part played
by the investment planning. The wealth manager will help you decide the right places to
invest their capital.
Planning for Retirement
Most of us do not think of a retirement plan in the first days of admission and when
the thought does it is too late. This leads to a strong investment in a money-back policy or
any other investment that requires quiet a lot of money. Considering the wealth
management services, this problem can be avoided as the wealth manager will give you
wide range of options in the time it does not burn a hole in your pocket. The earlier you
start planning about their finances after retirement, the better.
TAX PLANNING
If you have a good financial situation, then obviously your tax would be the same.
There are many investment options, if chosen wisely can reduce the amount of your tax
return on a high grade. There is a systematic planning behind this; you will not have to
worry about. The calculations are carried out taking into account your other financial goals
and to not end up making a big investment to save taxes and remain without any other
thought about investing.

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TOTAL WARRANTY
The wealth management services are complete packages that somehow help build
a portfolio that is highly secure and therefore the guarantee of peace of mind for the
coming years.
COMPLETE PACKAGE
This is the basket full of all the products available in the financial markets.
Due to wealth advisory model total AUM of company is increased and it has large
product basket & it represent the client‟s interest also.

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REVIEW OF LETRETURE
A study was conducted by Grinblatt and Titman (1989) to examine the superior stock
selection abilities of mutual fund managers through which researcher generated abnormal
returns. For this purpose a sample of 274 funds was taken from 1974 to1984.
A company that collected money from a group of people with common investment
objectives to buy different securities is called mutual fund. The collected holding of these
securities was known as its portfolio Mark (2007). According to Teri (2007) mutual fund is a
professional investment company which managed collection of stocks, bonds, or other
securities owned by a group of investor.
Sharpe (1966) introduced the measure to evaluate the mutual funds‟ risk-adjusted
performance. The measure was known as reward-to-variability ratio (Currently Sharpe
Ratio). With the help of this ratio he evaluated the return of 34 open-end mutual funds in
the period 1945-1963.
Previously two- and three-moment analyses were used to analyze the mutual fund
performance relative to market performance. But Joy and Porter (1974) applied first-,
second-, and third-degree stochastic dominance principles to investigate the same
question. Study suggested that the proper test of mutual fund performance relative to the
market (DJIA) is a test employing stochastic dominance principles.

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STATEMENT OF THE PROBLEM
The strategy is to know awareness and interest and perception about mutual fund as an
investment avenue among all investors.
Basic purpose of conducting the research in this subject is to get the know-how of finical
market in general and by conducting the research report in this subject we can able to
understand overall preferences of investors in mutual fund. Though investing partner of the
individual investors varies with number of factor like occupation, income, risk taking ability
and external environment and the many other factors but by conducting the research study
on the investing preference of the individual in the mutual fund we can get overall
understanding of the modus operand of the investors attitude.

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OBJECTIVE OF THE STUDY
To understand how NJ‟s services differ from its competitors
To get experience of selling and interacting with advisors.
To learn the ways through which they recruit advisors and how they approach them.
To know about field and get real experience of field. Get knowledge about market
To increase the marketing skill of selling intangible product.
To know about all investment terminology. Enhance knowledge about investment product.
To know the acceptance of the advisors for wealth advisor business model.
The methods of data collection I have implemented for our project report
Are primary data. Data collection is by way of survey method.
The primary data was collected in form of questionnaire from various Financial Advisors.
The most of the Agents were from insurance agent, post agent mf agent, tax advisor.

48. 48
RESEARCH
&METHODOLOGY

49. 49
SOURCES OF THE DATA
There are two kinds of data that can be collected for research purpose. Based on the
requirement in the research appropriate data is collected. Both the kinds of data are
shown below.
 Primary Data
 Secondary Data
 PRIMARY DATA
Primary data are collected and gathered for the first time. Primary data are
sought for their proximately to the truth and control over error. Primary data are
collected by you &agents known to you especially to answer your research question. In
the primary data are 3 ways to collect it.
1. Observation
2. Survey
3. Focus
 SECONDARY DATA
Secondary data are collected by someone else. There are two ways to collect
the data.
1. Published data
2. Unpublished data
By analyzing the requirement of data here in this project report the secondary data is
used for the purpose of research work. Researcher has collected annually return on
the different schemes of the nj india invet for the calculating chart & Small Sample Test.
I have also used the materials provided by the mutual fund company.

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SAMPLING SIZE
• The population defined for the study is any investor preference about mutual fund.
Though large sample gives more reliable results than small samples but increases
the cost, time and non-sampling error. The populations defined would give
inferences. So the population is divided here in different classes.
• This research work was conducted in junagadh district of Gujarat state.
For this study, I have constructed questionnaire. I prepared a list of 140 advisors; out of
them I selected randomly 100 for our research work

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ANALYSIS &INTERPRETATION

52. 52
Qualification
ANALYSIS:
In this analysis we can say that most advisor are graduate as they are 35% that post
graduate 10% and then professional are 15% and under graduate are 40%.

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1) Being a Financial Advisor, How many years of experience you are having?
ANALYSIS
Most of advisor has experience of 3to5 years. It is 48 %.
Least advisor is experienced between 1-3years. It is 25 %.
There is 24 % advisor which has experience of 3-5 year. It is 35%
25% advisor has experience of 5-10 year.
And above 10 year peoples is 15%.

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2) In which financial segment you are working?
ANALYSIS
We can see most of the investor is working with LIC 50%.
5% investor is mf advisor.
15% are tax advisor.
10% are equity adviser.
20% are other segment.

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3) How will you recommend the financial products to investors?
ANALYSIS
Most of the agent doing work with based on financial planning
15% Knowledge based selling.
40% Based on financial planning.
30% Need based selling.
15% Revenue based.

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4) Do you have in-depth knowledge about Mutual Fund?
ANALYSIS
Some of the insurance agent and tax advisor know about the mutual fund.
Just 40% peoples know about the mutual fund but 60%peoples have no knowledge about
the mutual fund.
Yes 40%
No 60%

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5) According to you, Investors are investing in MF for which of the following reason?
High Return 30%
Wealth creation 10%
Professional Mgt 10%
Goal achievement 5%
Tax Saving 15%
Liquidity 3%
Safety 7%
Other, Specify 20%
ANALYSIS
Most of the time advisors want to more money and more money came to high return so
30% peoples doing investment for the high return.

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6) Will you recommend investment in MF to investors
ANALYSIS
Mutual fund is interacted with share and liquidity and this both are risky that
way just 30% people says yes we want to invest in mutual fund 70% says no.
Yes 30%
No 70%

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7) Do you know that earnings in MF advisory business are higher than in any other
investment instruments in long term?
ANALYSIS
I am doing the survey most of the peoples say mutual fund business is good for long time
it is give high opportunity.
Yes 60%
No 40%

60. 60
8) Have you passed-out AMFI exam?
ANALYSIS
If anybody want to be became a mutual fund advisor so AMFI exam is require
but no anyone passed this exam of my survey.
Yes 2%
No 98%

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9) Have you heard about NJ India Invest which is leading MF distributor in India
ANALYSIS
Nj india copmany is no 1 compnay in india but atlist 25% peples know the nj india is no 1
compnay and 75% pepole cant know
Yes 25%
No 75%

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10) Do you think that investors will be more satisfied by having all the financial
products at the same place with same expertise?
ANALYSIS
After the my survey just 10% peoples satisfied by invetmet expertise but 90% no satisfied
with invetmet expertise.
Yes 10%
No 90%

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11)Do you know which of the following products are offered by NJ Funds to investors?
ANALYSIS:
Most of the peoples working with insurance company.
Mutual Fund 10%
Insurance 40%
PMs 7%
FD/ Bonds 3%
Real estate 10%
Training & education 15%
Financial planning software 15%

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12)Would you like to be a channel-partner with NJ India Invest?
ANALYSIS
For the my opinion for this question mutual fund business is good but here 25% want do
mutual fund business and 75% cant want do this business.
Reason is this business is risky compare with any other business that why no anyone go
to the mutual fund business.

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FINDINGS
Most Insurance agent does not have knowledge about Mutual Fund and they all have
wrongly perceived Mutual Fund as Share market.
Most people like the fix rate giving product rather than risky one, as only 11% said that
mutual fund gives more return as compare to FD and PPF.
Some LIC agent were not ready to sell Mutual Fund because they think return have
guarantee in LIC.
Insurance agents don‟t want to join insurance business because they are getting
handsome commission of 35%, 20%, and 10% in LIC.
They don‟t have time, resistance to change, and fear of market is the main reason for
them to not to join mutual fund business.
We have seen that education level is not so high, so they are not able to pass AMFI
certification exam.
71% had said that Mutual fund is equal to share market while only 5% said that it is
depend on share market. So these way agents have wrongly perceived mutual fund.
Awareness of company name (NJ) amongst insurance agent is very low.
LIC is biggest competitor as it gives highest commission to their agents.
There is no relation between awareness and years of experience because youngsters are
educated and experienced are aware because of their experience.

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CONCLUSION

67. 67
CONCLUSION
Main purpose of investor is to increase the income with safe investment. People are highly
concerned about their investment.
Concept of wealth management becomes very much popular in now a day‟s. Every people
want that they get service very fast with less fess and from same person this is what the
wealth advisor does.
the risk is low return is high as it include mutual fund in that SIP than for long term
investment equity ,real estate, and for short term debt ,bond fixed deposits.
To manage the portfolio of person. So at last we can say this model includes mostly all
financial products which are available in financial market.
It represents the client interest. Client will be satisfied with wealth advisory model. It is
good from point of view of advisor and also client.
Wealth advisor model has large product basket. Running a successful Wealth Advisory
Business requires complete understanding of the peculiarities of the Indian Stock Market,
Real estate, Insurance and also the psyche of the small investors.

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SUGGESTIONS AND RECOMMENDATIONS
 I was been in market for two months, and come across to some fact and figures.
From that I can suggest to company for following things.
 Awareness in insurance agent is high but knowledge is not so much. So company
can arrange some seminar or program so that wrong perception of mutual fund can
be cure.
 Another benefit of this thing will be increase in brand name or awareness of
company name in Insurance agents.
 Company needs one or more sales person in junagadh area. Because there is no
one to go in market and explain to insurance agent about mutual fund.
 Fear of market amongst insurance agent is very high, so company needs to convey
the real situation to agents as well as benefit of market and its return.
 Company can increase the level of pressure on employee of this branch.
 Give more stress on safety attributes because Independent Insurance agent is more
concern about safety of the investments of their clients.
 Mutual Fund Company needs to give the training of the Individual insurance agent
about the Fund/Scheme and its objective, because they are the main source to
influence the investors.
 Try to expand market over other region like veraval, una ,kodinar, these all are
blank city in terms of mutual fund business is concern.

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LIMITATION OF STUDY
Very less people know about NJ INDIA INVEST. Some people don‟t even hear the
name so we have an opportunity to give him information about it.
 As it is random sampling method of data collection sometimes the answer from
advisor is not satisfied.

70. 70
BIBOILOGRAPHY
To complete the report on scop of wealth advisory business model I have need following
WEBSITE
 www.njindiainvest.com
 www.amfi.com
 www.mutualfundsindia.com/schemewatch
BOOKS
Research methodology
By: cooper & schindler
MAGAZINES
Mutual Fund Hand Book
Fact Sheet & Statement

71. 71
APPENDICES

72. 72
“SCOPE FOR MUTUAL FUND ADVISORY BUSINESS IN RAJKOT”
 Name :- _________________ ______________________ _________________
 Address:- ________________________________________________________
________________________________________________________
 Contact No. :- __________________
 E-Mail Id :- _______________________________________________________
 Qualification :-
Under Graduate Graduation
Post-Graduation Professional
13) Being a Financial Advisor, How many years of experience you are having?
1 to 3 years 3 to 5 years
5 to 10 years More than 10 years
14) In which financial segment you are working?
Mutual Fund Tax Advisor
Equity Post Agent
Insurance Other, Specify _________________
15) How will you recommend the financial products to investors?
Knowledge based selling Based on financial planning
Need based selling Revenue based
16) Do you have in-depth knowledge about Mutual Fund?
Yes No
17) According to you, Investors are investing in MF for which of the following
reason?
High Return Tax Saving
Wealth creation Liquidity
Professional Mgt. Safety
Goal achievement Other, Specify _________________

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18) Will you recommend investment in MF to investors?
Yes No
If no, specific reason,______________________
19) Do you know that earnings in MF advisory business are higher than in any
other investment instruments in long term?
Yes No
20) Have you passed-out AMFI exam?
Yes No
a. If No, would you like to appear for AMFI exam?
Yes No
21) Have you heard about NJ India Invest which is leading MF distributor in
India?
Yes No
22)Do you think that investors will be more satisfied by having all the financial
products at the same place with same expertise?
Yes No
23) Do you know which of the following products are offered by NJ Fundz to
investors?
Mutual Fund Real estate
Insurance Training & education
PMs Financial planning software
FD/ Bonds
24) Would you like to be a channel-partner with NJ India Invest?
Yes No
a. If No, Specific reason ______________________________________
THANKS FOR YOUR CO-OPERATION AND SUPPORT TO CORPORATE RESPONSIBILITY

74. 74