1. A STUDY ON THE WORKING OF
‘Distribution Expansion of IFA Channel and Comparative Analysis of BSL
Frontline and Tax Relief 96 Fund’
A Summer Training Report submitted to
ISME, BANGALORE
in partial fulfillment of the requirements
for the award of the
POST GRADUATE DIPLOMA IN MANAGEMENT
Submitted by
Gangadevi Srinivasrao (141117)
Under the guidance of
Prof. Dr. S. Shyam Prasad, ISME
Mr. Biplab Roy, IFA channel Head, BSLAMC Ltd., Bangalore
International School of Management Excellence
Sy.No.88, Chembanahalli, Near Dommasandra
Circle, Sarjapur Road,
Bangalore-562125
July 2015
July 2015
2. i
International School of Management Excellence
Sy. No. 88, Chembanahalli, Near Dommasandra Circle,
Sarjapur Road,
Bangalore-562125
CERTIFICATE
This is to certify that the Summer Training Report entitled “A Study on the Working
of Distribution Expansion of IFA Channel and Comparative Analysis of BSL Frontline
and Tax Relief 96 Fund, in partial fulfillment of the requirements for the award of
the Post Graduate Diploma in Management is a record of original training undergone
by your G.Srinivasa Rao, 141117 during the year 2014-2016 of his study at the
International School of Management Excellence, Bangalore under my supervision
and the report has not formed the basis for the award of any Degree/Fellowship or
other similar title to any candidate of any University.
Place: Bangalore-125 Signature of Guide
Date: xx.07.2015 Prof. Dr. S. Shyam Prasad
International School of Management Excellence
Bangalore
Countersigned
(Principal)
ISME, Bangalore
3. ii
“ON COMPANY’S LETTER HEAD”
COMPANY CERTIFICATE
This is to certify that………………(Full Name of the Student), a student of Post
Graduate Diploma in Management, 2014-2016, International School of Management
Excellence, Bangalore bearing Enrolment No.………………., has undertaken the
Summer Internship Training at ………………………………… (Name of the Company)
during…………… to ………………under my supervision & guidance. He / She has
conducted a study & completed the Project on
……………………………………………………………………………….…………
Seal of Organization Signature of the Guide
Date: Name of the Guide:
Designation:
Address:
4. iii
DECLARATION
I, G.Srinivasa Rao, hereby declare that the Summer Training Report, entitled “A
Study on the Working of Distribution Expansion of IFA Channel and Comparative
Analysis of BSL Frontline and Tax Relief 96 Fund” , submitted to the International
School of Management Excellence, Bangalore in partial fulfillment of the
requirements for the award of the Post Graduate Diploma in Management is a
record of original training undergone by me during the period 23rd
March,2015 to
29Th
May,2015 under the supervision and guidance of Mr. Biplab Roy Channel Head
IFA, BSLAMC Ltd., Bangalore and Prof. Dr. S. Shyam Prasad, International School of
Management Excellence, Bangalore and it has not formed the basis for the award of
any Degree/Fellowship or other similar title to any candidate of any University.
Place: Bangalore-125 Signature of the Student
Date: xx.07.2015
5. iv
ACKNOWLEDGEMENT
I am extremely thankful to the Mr. Biplab Roy Channel Head IFA, BSLAMC Ltd.,
Bangalore and Relationship Managers H.K Karthik, Anand.P, Jithesh Rachndra at Birla
Sun life AMC Ltd., for their invaluable support and guidance in the completion of this
project. I wish to thank Mr. Nitin Garg, Director, ISME Bangalore, for enabling this
endeavor. I wish to express my profound gratitude to our Academic Mentor Dr.
Ramesh G. Tagat and our Principal Dr. Swaroop Reddy for their kind permission to
take up this project work. I express my heartfelt thanks to our Gr.Capt.H.S.Mishra
(Retd), COC-Placement and his team at ISME, Bangalore who provided all facilities
for carrying out this project.
I immensely thank our Project Guide Prof. Dr. S. Shyam Prasad, ISME, for his valuable
suggestions and for guiding me throughout the work.
G.Srinivasa Rao
(Reg.No.141117)
6. v
CONTENTS
CERTIFICATE…………………………………………………………….....i
COMPANY CERTIFICATE…......................................................................ii
DECLARATION…………………………………………………………….iii
ACKNOWLEDGEMNT……………………………….….………..……….iv
LIST OF TABLES, FIGURES & ABBREVIATIONS…............................v
CHAPTER-1………………………………………………………………….1
1.1 Introduction…………………………………………………………….….1
CHAPTER-2……………………………………………………………….....6
2.1 Company Profile………………………………………..………………….6
CHAPTER-3………………………………………………………………….9
3.1 Functioning of Various Deportments………………….…………………..9
CHAPTER-4…………………………….……………………….………….12
4.1 Work Assigned…………………………………………………………...12
4.2 Process Followed…....................................................................................13
CHAPTER-5………………………………......…………………………….22
5.1 Conclusion…..............................................................................................22
5.2 Learning’s………………………………………………………………...22
5.3 Suggestion..................................................................................................22
CHAPTER-6………………………………………………………………...23
6.1 Future Possibilities…………………………….……………………….....23
CHAPTER-7…………………………………….………………………......24
7.1 Bibliography…………………………………….……………………...…24
7. vi
LIST OF TABLES, FIGURES & ABBREVIATIONS
TABLES
Table 2-1 Details about Birla Sun Life AMC
Table 4-1 work assigned in my internship
Table 4-2 P/B Ratios of top 5 IT companies
Table 4-3 under performing stocks
Table 4-4 over performing stocks
FIGURES
Fig 1-1 Indian Mutual Fund Industry 3-tier structure
Fig 4-1 Tax relief 96 pamphlet cover photo
ABBREVAIATIONS
Abbreviated Form Expanded Form
AMC Asset Management Company
MF Mutual fund
F&O Future and options
AMFI Association of Mutual Funds in India
KIM Key information memorandum
AUM Assets Under Management
CAGR Compounded Annual Growth Rate
8. vii
ELSS Equity Linked Savings Schemes
GDP Gross Domestic Product
IFA Independent Financial Advisor
KYC Know Your Customer
NAV Net Asset Value
SEBI Securities and Exchange Board of India
SWP Systematic Withdrawal Plan
PAN Permanent Account Number
SIP Systematic Investment Plan
HUF Hindu Undivided Family
ISC Investor Service Centre
KIM Key Information Memorandum
NBFC Non-Banking Finance Company
NEFT National Electronic Funds Transfer
NFO New Fund Offer
9. 1
CHAPTER-1
1.1 Introduction
In a highly competitive job market, we will need to make our self stand out among
others. Since employers prefer to hire graduating seniors who have career-related
work experience, internships can be crucial to our job search. The experience we gain
might not perfectly match our major or our chosen career path, but it will give us
transferrable skills, a notable work ethic, and a competitive edge. Our internship
experience will also expose us to professionalism and allow us to observe how skills
and ideas are applied in the real world.
The summer internship undergone by me mainly on Distribution Expansion of IFA
Channel and Comparative Analysis of BSL Frontline and Tax Relief 96 Fund in Birla
sun life mutual fund from March 23, 2015 to 29 May, 2015
1.1.1 WHAT IS A MUTUAL FUND?
A mutual fund is a legal vehicle that enables a collective group of individuals to:
i. Pool their surplus funds and collectively invest in instruments / assets for a common
investment objective.
ii. Optimize the knowledge and experience of a fund manager, a capacity that
individually they may not have.
iii. Benefit from the economies of scale which size enables and is not available on an
individual basis. Investing in a mutual fund is like an investment made by
acollective.14Fixed Return Options Variable Return Options
1. Post Office 2.Public Provident Fund 3.Bank Fixed Deposits 4.Government
Securities (or) Gilts 5.RBI Taxable Bonds 6.Insurance 7.Company Debentures
8.Company Fixed Deposits 9.Infrastructure Bonds 10.Mutual Funds 11.Shares and
Stock Markets. 12. Gold & Silver 13. Property 14.Foreign Exchange
1.1.2 MUTUAL FUND INDUSTRY
The mutual fund industry in India is one of the emerging industries in India. Today,
the Indian mutual fund industry has 40 players. The number of public sector players
has reduced from 11 to 5. The public sector has gradually receded into the
background, passing on a large chunk of market share to private sector players. The
Association of Mutual Funds in India (AMFI) is the industry body set up to facilitate
the growth of the Indian mutual fund industry. It plays a pro-active role in identifying
steps that need to be taken to protect investors and promote the mutual fund sector. It
10. 2
is noteworthy that AMFI is not a Self-Regulatory Organization (SRO) and its
recommendations are not binding on the industry participants. By its very nature,
AMFI has an advisor’s or a counselor’s role in the mutual fund industry. Its
recommendations become mandatory if and only if the Securities and Exchange
Board of India (SEBI) incorporates them into the regulatory framework it stipulates
for mutual funds. The Indian mutual fund industry follows a 3-tier structure as shown
below:
Fig 1-1: Indian Mutual Fund Industry 3-tier structure
A. Sponsors
They are the individuals who think of starting a mutual fund. The Sponsor approaches
SEBI, the market regulator and also the regulator for mutual funds. Not everyone can
start a mutual fund. SEBI will grant a permission to start a mutual fund only to a
person of integrity, with significant experience in the financial sector and a certain
minimum net worth. These are just some of the factors that come into play.
B. Trust
Once SEBI is satisfied with the credentials and eligibility of the proposed Sponsors,
the sponsors then establish a Trust under the Indian Trust Act 1882. Trusts have no
legal identity in India and thus cannot enter into contracts. Hence the Trustees are the
individuals authorized to act on behalf of the Trust. Contracts are entered into in the
name of the trustees. Once the Trust is created, it is registered with SEBI, after which
point, this Trust is known as the mutual fund.
C. Asset Management Company (AMC)
The Trustees appoint the AMC, which is established as a legal entity, to manage the
investor’s (unit holder’s) money. In return for this money management on behalf of
the mutual fund, the AMC is paid a fee for the services provided. This fee is to be
borne by the investors and is deducted from the money collected from them. The
11. 3
AMC has to be approved by SEBI and it functions under the supervision of its Board
of Directors, and also under the direction of the Trustees and the regulatory
framework established by SEBI. It is the AMC, which in the name of the Trust, that
floats new schemes and manages these schemes by buying and selling securities.
1.1.3 TYPES OF MUTUALFUND SCHEMES
(A) By Structure
Open-Ended Schemes do not have a fixed maturity. You deal with the Mutual Fund
for your investments & Redemptions. The key feature is liquidity. You can
conveniently buy and sell your units at Net Asset Value (NAV) related prices, at any
point of time. Investors can sell their units to the scheme through a re-purchase
transaction at re-purchase price, which is linked to NAV.
Close-Ended Schemes have a stipulated maturity period are called close ended
schemes. You can invest in the scheme at the time of the initial issue and thereafter
you can buy or sell the units of the scheme on the stock exchanges where they are
listed.
Interval Schemes combine the features of open-ended and close-ended schemes. The
periods when an interval scheme becomes open-ended, are called ‘transaction
periods’; the period between the close of a transaction period, and the opening of the
next transaction period is called ‘interval period’. Minimum duration of transaction
period is 2 days, and minimum duration of interval period is 15 days. No
redemption/repurchase of units is allowed except during the specified transaction
period (during which both subscription and redemption may be made to and from the
scheme). Scheme should be compulsorily listed in Stock Exchange during the interval
period.
(B) By Investment Objective
Growth Schemes - Aim to provide capital appreciation over the medium to long
term. These schemes normally invest a majority of their funds in equities and are
willing to bear short term decline in value for possible future appreciation. These
schemes are not for investors seeking regular income or needing their money back in
the short term. Ideal for Investors in their prime earning years.
Income Schemes - Aim to provide regular and steady income to investors. These
schemes generally invest in fixed income securities such as bonds and corporate
debentures. Capital appreciation in such schemes may be limited. Ideal for: Retired
people and others with a need for capital stability and regular income. Ideal for
Investors who need some income to supplement their earnings.
12. 4
Balanced Schemes - Aim to provide both growth and income by periodically
distributing a part of the income and capital gains they earn. They invest in both
shares and fixed income securities in the proportion indicated in their offer
documents. In a rising stock market, the NAV of these schemes may not normally
keep pace or fall equally when the market falls. Ideal for Investors looking for a
combination of income and moderate growth.
Money Market / Liquid Schemes - Aim to provide easy liquidity, preservation of
capital and moderate income. These schemes generally invest in safer, short term
instruments such as treasury bills, certificates of deposit, commercial paper and
interbank call money. Ideal for: Corporates and individual investors as a means to
park their surplus funds for short periods. liquid funds can invest in securities having
less than 91 days of maturity. However, securities in the portfolio having maturity
more than 60-days need to be marked to market (MTM).
Tax Saving Schemes (Equity Linked Saving Scheme - ELSS) - These schemes
offer tax deduction up to Rs 1,50,000 per year to the investors and promote long term
investments in equities through Mutual Funds. Ideal for: Investors seeking tax
incentives. These schemes come with a lock in period of 3 years.
RGESS - The Rajiv Gandhi Equity Savings Scheme (RGESS) offers a rebate to first
time retail investors (in equity or mutual funds) with annual income up to Rs. 12
lakhs. The RGESS benefit is linked to amount invested (excluding brokerage,
securities transaction tax, service tax, stamp duty and all taxes appearing in the
contract note). Rebate of 50% of the amount invested up to Rs.50, 000, can be
claimed as a deduction from taxable income. The investment limit of Rs. 50,000 is
applicable for a block of three financial years, starting with the year of first
investment. Investments are subject to a fixed lock-in period of 1 year, and flexible
lock-in period of 2 years.
Other Schemes
Sectoral fund schemes are ideal for investors who have decided to invest in a
particular sector. Thematic funds invest in line with an investment theme. The
investment is more broad-based than a sector fund; but narrower than a diversified
equity fund. Index Fund schemes are ideal for investors who are satisfied with a
return approximately equal to that of an index. These schemes attempt to replicate the
performance of a particular index such as the BSE Sensex, the NSE 50 (NIFTY).
Invests in Index Stocks as per the Weight age. Fund Manager has no role in deciding
on investments. These funds are not designed to outperform the Index and have Low
Running Cost. An Index Fund with Low Tracking Error is a Good Fund.
13. 5
Fixed Maturity Plans - Fixed Maturity Plans (FMPs) are investment schemes floated
by mutual funds and are close ended with a fixed tenure, the maturity period ranging
from one month to three/five years. Fixed maturity plans are a kind of debt fund
where the investment portfolio is closely aligned to the maturity of the scheme. The
objective of such a scheme is to generate steady returns over a fixed-maturity period
and protect the investor against Interest rate fluctuations.
Gold Exchange Traded Funds (GETFs) - Gold Exchange Traded Funds offer
investors an innovative, cost-efficient and secure way to access the gold market. Gold
ETFs are intended to offer investors a means of participating in the gold bullion
market by buying and selling units on the Stock Exchanges, without taking physical
delivery of gold. GOLD ETF invests in 99.99% pure GOLD. NAV of GOLD ETF
depends on Real Prices of GOLD Bullion. Gold funds invest in gold and gold-related
securities.
Fund of Funds (FOFs) - Fund of Funds are schemes that invest in other mutual fund
schemes.
Funds Investing Abroad – Off Shore Schemes - Mutual Funds have been permitted
to invest in foreign securities/ American Depository Receipts (ADRs) / Global
Depository Receipts (GDRs). Some of such schemes are dedicated funds for
investment abroad while others invest partly in foreign securities and partly in
domestic securities. While most such schemes invest in securities across the world
there are also schemes which are country specific in their investment approach.
14. 6
CHAPTER-2
2.1 COMPANY PROFILE
Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment
manager of Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla
Group and the Sun Life Financial Inc. of Canada. The joint venture brings together
the Aditya Birla Group's experience in the Indian market and Sun Life's global
experience.
Established in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading
flagships of Mutual fund business managing assets of a large investor base. Our
solutions offer a range of investment options, including diversified and sector specific
equity schemes, hybrid and monthly income funds, a wide range of debt and treasury
products and offshore funds.
Birla Sun Life Asset Management Company has one of the largest team of research
analysts in the industry, dedicated to tracking down the best companies to invest in.
BSLAMC strives to provide transparent, ethical and research-based investments and
wealth management services.
Table 2-1:- Details about Birla Sun Life AMC
Birla Sun Life AMC
Set up date Dec-23-1994
Incorporation date Sep-051994
Sponsor Aditya Birla financial services private
limited
Trustee Birla sun life Trustee company private
limited
Chairman Mr. Donald Stewart
CEO/MD Mr. A. Balasubramanian
Assets managed (as of 31-
marc-2015)
11,92,336.31 cr
Number of Schemes 172
Number of schemes options 720
15. 7
2.1.1 The Senior Management Team of BSLAMC
Chief Executive Officer: Mr. A Balasubramanian
Co-Chief Investment Officer: Mr. Mahesh Patil
Mr. Maneesh Dangi
Chief Operation Officer: Ms Keerti Gupta
Head--Finance & Accounts: Mr. Parag Joglekar
Head--Compliance & Risk Management: Ms Rama Vasantharajan
Head--Legal, Compliance & Secretarial: Mr Rajiv Joshi
Head--Marketing: Ms Molly Kapoor
Head--Business Development: Mr. Bhavdeep Bhatt
Head--Institutional Sales: Mr. Anil Shyam
Co-Head--Retail Sales & Distribution: Mr. Deepak Gupta
Mr. Sidharth Damani
The Investment Team of BSLAMC
2.1.2 EQUITY TEAM
Mr. Mahesh Patil (Co-Chief Investment Officer)
Mr. Anil Shah (Sr. Fund Manager)
Mr. Ajay Garg (Sr. Fund Manager)
Mr. Satyabrata Mohanty (Head - Mixed Assets)
Mr. Naysar Shah (Fund Manager)
Mr. Vineet Maloo (Fund Manager)
Mr. Milind Bafna (Fund Manager)
Mr. Kunal Sangoi (Fund Manager)
2.1.3 DEBT TEAM
Mr. Maneesh Dangi (Co-Chief Investment Officer)
Mr. Prasad Dhonde (Fund Manager)
Ms. Sunaina da Cunha (Fund Manager)
Mr. Kaustubh Gupta (Fund Manager)
16. 8
Vision
To be a leader and role model in a broad based and integrated financial services
business.
Mission
To consistently pursue investor's wealth optimization by:
Achieving superior and consistent investment results.
Creating a conducive environment to hone and retain talent.
Providing customer delight.
Institutionalizing system-approach in all aspects of functioning.
Upholding highest standards of ethical values at all times.
Values:
Integrity
Commitment
Passion
Seamlessness
Speed
Address:
Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Limited,
# 9/3, Ground Floor, Nitesh Broadway MG Road,
560001
17. 9
CHAPTER-3
3.1 FUNCTIONING OF VARIOUS DEPARTMENTS
Birla sells products mainly through two types of sales team one is institutional sales
and other one is retail sales. The retail sales department consists IFA channel, The
Banking Channel and ND channel
Fig 3-1: Various Departments in Birla sun life mutual fund
BIRLA SUN LIFE MUTUAL FUND
RETAIL SALES
• IFA channel
• Banking channel
• National Distributor
channel
Other Departments
• Investor education
• Sales support
• Operations & customer
service
• IT
• Runner boys
INSTITUTIONAL SALES
18. 10
Birla sun life mutual fund gets investment by selling their products through
A. institutional sales
B. Retail sales
3.1.1. Institutional sales:
This institutional sales team gets investment directly from companies. They Deal
directly to the institutions without any broker.
3.1.2. Retail sales:
Under this department there are three channels
1. Individual financial advisor (IFA) channel
2. Banking channel
3. National distributional channel
IFA channel:-
This IFA channel mobilizes Mutual Fund business from their individual investors,
who have already empanelled with Birla sun life mutual fund. These IFA’s can sell
other mutual fund products also.
Banking channel:-
Banks are also intermediaries who distribute fund schemes of different AMCs. At
bank branches, an investor can invest directly into fund schemes that he/she wishes to
invest in. Some of the banks that promote Birla schemes are Standard Chartered, Citi
Bank, HDFC, ICICI etc.This banking channel mobilizes Mutual Fund business from
banks like HDFC, ICICI and etc.
National distributional channel:-
They deal with the distributors who have their presence nationally. A total of about 40
NDs are managed by the Bangalore branch ND channel of BSLAMC Ltd. Few of
them include Aditya Birla Money, Bajaj Capital, ICICI Securities, N.J. India
Investments Pvt. Ltd. etc. The major difference between the ND channel and the other
channels is that the ND channel works on a recommended list of products instead of
all the available products. This is neither IFA nor banking this channel mobilizes
Mutual Fund business from Bajaj capital, icici securities, NJ investments and etc.
19. 11
3.1.3. Other departments:
Investor education:-
This department conducts training sections to give awareness about mutual fund
business. It doesn’t promote any product they just give awareness about mutual fund.
Sales support:-
This department gives support to sales teams. It is also like help desk to customers.
This team works like communication channel between RM’s – customers and RM’s –
pick up boys
These people solve the queries of the distributors that are received through mails and
calls
generate statements and send them to the distributors
prepare various types of MIS reports of Karnataka region
Operations and customer service:-
This department does operations and gives solutions for customer problems
The functions performed by them include:-
receiving the transaction
punching the transaction
verification of the transaction in the system
internal reporting of the transaction
IT:-
Company details have to be secure, this IT guys helps in this one and takes care about
systems and power problems
Runner boys:-
Generally called as a pick up boys they pick the cheques, SIP forms, materials
belongs to Birla from all places in Bangalore
20. 12
CHAPTER-4
4.1 WORK ASSIGNED
Table 4-1: work assigned in my internship
Sl.
No.
Work Assigned
1 Empanelment of new IFAs
2 Contact with non mapped (or) in active IFA’s
3 Report on IT and pharma sectors with analysis of top 5 major players
of each sector
4 Analysis on financial services companies like HDFC, IDFC, Bajaj
finserve
5 Conduct a training section for newly empanelled IFA’s
6 Detail information about P/B ratio
7 Collect detail information about selected companies from industrial
capital goods sector and some mid cap companies
8 Front line equity fund portfolio analysis
9 Invite IFA’s for equity drive program
10 Comparative analysis of the BSL Tax relief 96 and make one page
pamphlet
This above table is showing what all projects I did in my internship. I got opportunity
to do 10 projects in my internship from my channel head and I completed all projects
successfully without any mistake. While doing this projects I fought with so many
problems but the best part is, above 75% work I did because I have learned it in my
finance class.
21. 13
4.2 PROCESS FOLLOWED
4.2.1 Empanelment of new IFAs:
Call those people who got ARN number and not yet empanelled with Birla. Convince
those people to get empanelment with Birla and promote Birla products. In this work I
had to follow up them as per their convince sometimes I have to meet them personally
to get empanelment and sometimes I have to send them soft copy of empanelment
form as well as hardcopy also if they wanted.
4.2.2 Contact with none mapped (or) in active IFA’s
Call those IFA’s who were empanelled but inactive with Birla sun life AMC.
Fix an appointment with those IFA’s
Try to find out problems why they stopped business with Birla
Need to give solutions for those problems and try to convenience them to start
business again with Birla
4.2.3 Report on IT and pharma sectors with analysis of top 5 major players of
each sector
Detail information about each sector and what they do
History of both sectors and key mile stones
How it is performing
What are the reasons if it performs good and vice versa
How it is effecting on Indian economy
In depth study on the top 5 major players in IT and Pharma sectors
IT sector top 5 companies
Infosys
Wipro
Tech Mahindra
TCS
HCL
Pharma sector top 5 companies
Lupin
GlaxoSmithKline
Ranbaxy laboratories
Dr.Reddy laboratories
Sun pharma
22. 14
4.2.4 Analysis on financial services companies like HDFC, IDFC, and Bajaj
finserve
company profile
What all are their products how they sell their products when they established
and what is market capital and EPS and P/E
HDFC (1977) the company provides housing finance to individuals and
corporate for purchase/construction of residential houses. It is one of
largest providers of housing loans in India.
Mortgages
Life insurance
General insurance
Mutual funds
IDFC (1997) India’s leading integrated infrastructure finance players. It is
engaged in providing finance and advisory services for infrastructure
projects, asset management and investment banking
Corporate investment banking
Alternate asset management
Public market asset management
Bajaj Finserv: Bajaj Finserv was formed in April 2007 as a result of its
demerger from Bajaj Auto Limited to further the Group’s interests in
financial services. This demerger enabled Bajaj Finserv to independently
run the core businesses of Lending, Insurance and Wealth Advisory.
Finance
Insurance
Wealth Management
4.2.5 Conduct a training section for newly empanelled IFA’s
Call all the newly empanelled IFA’s and invited them to attend the session. As a
Lerner everyone will face so many problems so we conducted a training program for
them to give explain how to invest, how to pay via SIP
We have sent a welcome mail regarding date and program details. Make a remainder
call to all the newly empanelled IFA’s who confirmed their presence in training
session
4.2.6 Detail information about P/B ratio
Here in this project I have to find what is meaning of P/B ratio and I have to find out
P/B ratios of top IT companies
23. 15
Price to book value (price to equity ratio):-
A ratio used to compare a stocks market value to its book value. P/B =current price of
the stock / latest quarter book value per share. A lower P/B ratio could mean that the
stock is undervalued
It could also mean that something is fundamentally wrong with the company. This
ratio also gives some idea of whether you are paying too much what would be left if
the company went bankrupt immediately
High P/B ratios are usually an indication that investors anticipate that the company
will generate additional profits from its existing level of assets
P/B = stock price/(total assets-intangible assets and liabilities)
The average P/B ratio for banking firms, as of January 2015, is approximately 1.1. i.e.
lower than the overall market average P/B of 2.58. High P/B ratios are usually an
indication that investors anticipate that the company will generate additional profits
from its existing level of assets
Eg: 2.50 is book value. If each share sells on the market at 5 then P/B = 5/2.5 i.e. P/B
is 2
P/B= market capitalization / companies total book value from its balance sheet
Some businesses have very light assets, such as software companies or insurance
agencies. And some companies even have negative equity, so the P/B ratio does not
work well for these types of companies
Table 4-2 P/B Ratios of top 5 IT companies
4.2.7 Detail information about selected companies from industrial capital goods
sector and some mid cap companies
Collect detail information about particular company who are yet unpopular in the
market, information consists of following
Infosys HCL Wipro Tech
Mahindra
Saskenc
&Tec
P/B 5.11 7.02 4.08 6.11 1.52
P/E 18.46 20.2 15.16 18.83 N&M
24. 16
Company profile
Products
Recent news
Stock price
Price movement chart
What all are their competitors
For this information I need to go to their respective website.
Honeywell:-
Honeywell Process Solutions (HPS) is a strong and vibrant business unit serving the
process industries, which include Refining, Oil and Gas, Pulp, Paper & Printing,
Power Generation, Power Transmission & Distribution, Chemicals & Life Sciences,
Petrochemicals, and Metals, Minerals and Mining.
ALSTOM T&D:-
Alstom has been associated with India’s progress for a century and has a long-
standing reputation for providing highly innovative and sustainable solutions for
meeting the country’s energy and transport requirements. The company has full
capabilities in engineering, manufacturing, project management and supply of power
generation, transmission and transport sector requirements. Since its inception in the
year 1911, the company has been at the forefront of leading-edge technology at every
level, serving these three infrastructure markets essential to economic, social and
environmental development of India.
Siemens ltd:-
The Siemens Group in India has emerged as a leading inventor, innovator and
implementer of leading-edge technology enabled solutions operating in the core
business segments of Industry, Energy, Healthcare and Infrastructure and Cities. The
Group’s business is represented by various companies that span across these various
segments.
ABB India ltd:-
ABB is a global leader in power and automation technologies. Our solutions improve
the efficiency, productivity and quality of our customers’ operations while
minimizing environmental impact. Innovation is at the forefront of what we do and
many of the technologies that drive modern society were pioneered by ABB
Schneider electric infrastructure ltd:-
The Company was incorporated on March 12, 2011 in the State of Gujarat as a public
limited company under the Companies Act, 1956, under the name "smart grid
automation distribution and switchgear limited". The name of the Company was
changed to "Schneider Electric Infrastructure Limited" on December 8, 2011
25. 17
Some other mid cap companies
SKS Microfinance Limited:-
SKS Microfinance Limited is among the largest microfinance companies in India
with presence across 16 states covering 1, 00,000 villages.
Karur vysya bank:-
Karur Vysya Bank was started in the year 1916 in Karur, then a small textile town
with a vast agricultural background, by two illustrious sons of the soil – Sri M.A.
Venkatarama Chettiar and Sri Athi Krishna Chettiar..
Cummins India:-
Cummins in India, a power leader, is a group of complementary business units that
design, manufacture, distribute and service engines and related technologies,
including fuel systems, air handling, filtration, emission solutions and electrical power
generation systems.
PTC India Ltd. (PTC):-
The leading provider of power trading solutions in India, was established in the year
1999 as a Government of India initiated Public-Private Partnership, whose primary
focus is to develop a commercially vibrant power market in the country
Ashoka build construction ltd:-
Ashoka Buildcon Ltd. is one of the largest highway developers in the country with an
impressive portfolio of over 28 PPP (Public Private Partnership) projects
Kalpataru Power Transmission Limited:-
KPTL is a Leading Turnkey Player in Power (Transmission - India and Overseas /
Generation / Distribution / Construction), Infrastructure (Oil & Gas Sector / Railways
/ Building & Factories / Roads & Bridges) and Asset Creation (Transmission System /
Roads / Logistics & Warehouse), having footprints across 38 countries.
Motherson Sumi Systems ltd:-
SMG is a global solutions provider offering end-to-end design and manufacturing
solutions to its customers, including product concept and product design, engineering,
prototyping and tool manufacturing product, manufacturing, assembly and the
production of integrated modules.
Aurobindo pharma ltd:-
Founded in 1986 by Mr. P.V. Ramaprasad Reddy, Mr. K. Nityananda Reddy and a
small group of highly committed professionals, Aurobindo Pharma was born off a
vision. The company commenced operations in 1988-89 with a single unit
manufacturing Semi-Synthetic Penicillin (SSP) at Pondicherry.
26. 18
4.2.8 Front line equity fund portfolio analysis
The portfolio of BSL front line equity fund has taken from Birla sun life mutual
fund website
Find out historical stock price from last 3 months, 6 months, and 1 year.
According stock price chart I concluded that which stocks are performing well and
not well.
And then I divided into two types first one is Over performing stocks and second
one is under performing stocks
Portfolio’s of competitive schemes were also taken and matched in order to check
whether they are holding these stocks or not.
In case of they are holding stocks in common than the percentage to net assets was
determined
The duration of stocks holding was also taken into consideration and whether
there has been any change in their allocation
Companies like ITC Ltd , Reliance Industries Ltd , Oil & Natural Gas Corporation
Ltd , Bajaj Auto Ltd , Cairn India Ltd , Bank of India Ltd are not performing well
Table 4-3 under performing stocks
stock name
last 1
year
last 6
months
last 3
months
ITC Ltd -4% -10% -4%
Reliance Industries Ltd -12% -9% 1
Oil & Natural Gas Corporation Ltd -6% -12% 0
Bajaj Auto Ltd -2% -22% -1%
Cairn India Ltd -39% -15% -14%
Hindalco Industries Ltd -8% -21% -15%
Bank of India Ltd -10% -22% -6%
sesa sterlite -2% -5% 3%
And over performing stocks are
Lupin Ltd
Motherson Sumi Systems Ltd
Bosch Ltd
Yes Bank Ltd
Britannia Industries Ltd
Bajaj Finance Ltd
Bayer Crop science Ltd
Shree Cement Ltd
Procter & Gamble Hygiene and Health Care Ltd
Hindustan Petroleum Corporation Ltd
27. 19
Table 4-4 over performing stocks
stock name
1 Year
return
Lupin Ltd 112%
Motherson Sumi Systems Ltd 121%
Bosch Ltd 134%
Yes Bank Ltd 104%
Britannia Industries Ltd 159%
Bajaj Finance Ltd 143%
Bayer Cropscience Ltd 128%
Shree Cement Ltd 114%
Procter & Gamble Hygiene and Health Care Ltd 134%
Hindustan Petroleum Corporation Ltd 111%
And then I did comparative analysis with other AMC companies like
Birla Sun Life Frontline Equity Fund
Franklin India Prima Plus Fund
HDFC Equity Fund
ICICI Prudential Dynamic Fund - Regular Plan
ICICI Prudential Top 200 Fund - Regular Plan
Reliance Top 200 Fund - Retail Plan
SBI Blue chip Fund
4.2.9 Invite IFA’s for equity drive program
Main focus of this equity drive was on MNC Fund and 95 fund. main target was
to activate those IFA’s who were earlier in active but now they are not doing
much business
By offering extra 20 bps brokerage structure to motivate them to give business on
equity drive day
4.3.0 Comparative analysis of the BSL Tax relief 96 and make one page pamphlet
Main objective of this project was to prepare one page pamphlet of Tax relief 96
fund with comparison of other Tax saving schemes
With beautiful growth picture made it
Fig 4-1 Tax relief 96 pamphlet cover photo
10,000
10,42,052
BSL TAX RELIEF 96 HAS GROWN 103^ TIMES IN 18 YEARS
Total dividends paid in last 18 years aggregate to
Rs 236.25 per unit
28. 20
Table 4-5 dividend payout table with comparison of other AMC schemes
Table 4-6 Tax Relief 96 ROI comparison with PPF, NSC, FD, BSE 200 index
Table 4-7 Return comparison with other AMC funds
With all these tables and figures I made one pager pamphlet
29. 21
CHAPTER-5
5. CONCLUSIONS, LEARNINGS & SUGGESTIONS
5.1 Conclusion
Empanelment is the process of registering a person to be like an IFA for an AMC.
To be like an IFA that has to clear NISM V-A certification and also registered
with AMFI
Some IFA’s may not do business with AMC due to some brokerage issue or due
to RM is not in touch with them
Some other IFAs may ask about performance of the particular sector or particular
scheme performance so we need know about all performances
Some IFAs may don’t have much experience in this business so we need to train
them to do business more comfortable so we conducted training secession
It is not easy do portfolio analysis of particular scheme because we have to take
into consideration about all stocks of that portfolio. Portfolio means basket of
stocks even if one stock does not give good performance it will effect on portfolio
BSL front line equity fund is 100 % equity fund. While doing this portfolio
analysis I came across those stocks that performed extremely well and also those
stocks that did not perform well
Companies like ITC Ltd, Reliance Industries Ltd , Oil & Natural Gas Corporation
Ltd , Bajaj Auto Ltd , Cairn India Ltd , Bank of India Ltd are not performing well.
5.2 Learning’s
From this internship I learnt about the distribution and expansion of the IFA
channel of BSLAMC Ltd. We got to know how the IFA channel works so as to
bring in business for the company and achieve the targets.
Starting from the empanelment of a new IFA and then moving ahead to building
of a relationship between the RM and the IFA, it is an ongoing process of
following up with the IFA in order to benefit mutually in the process.
I wrote NISM VA module mutual fund exam from this exam I have gained
theoretical knowledge only, from this internship I got practical experience also.
5.3 Suggestion
They could increase the number of RMs so they could encounter their problem,
actually they are giving more preference to distributors they could give more
preference to individual investors also.
30. 22
CHAPTER-6
6.1 FUTURE POSSIBILITIES
The future of Mutual Funds in India suggests that the industry has got huge scopes
of development in the times to come.
The future of Mutual Funds in India is quite bright. Mutual Funds are one of the
most popular forms of investments as these funds are diversified, professionally
managed, and liquid.
In the year 2004, the mutual fund industry in India was worth Rs 1,50,537 crores.
The mutual fund industry is expected to grow at a rate of 13.4% over the next 10
years.
31. 23
CHAPTER -7
7.1 BIBLIOGRAPHY
References
NISM V-A Mutual fund Distribution Module by SEBI
ABC of Mutual Funds by Investors Education BSLAMC
Value guide report
Value research report
Market outlook 2015
Links
www.birlasunlifemutualfund.com
www.sharekhan.com
www.hdfcsecuritiesinstitutionalresearch.com
www.icraresearchservices.com
www.citiresearch.com
www.microsecreseachreport.com
www.moneycontrol.com
www.valueresearch.com
www.topstockreserach.com
www.hdfcfund.com
www.icicipruamc.com
www.franklintempletonindia.com
www.tatamutualfund.com
www.utimf.com
www.sbimf.com
www.economicstime.com
www.axisbank.com
www.hdfc.com]
www.icici.com
