A STUDY OF INVESTORS AWARENESS ON DIGITAIZATION OF MUTUAL FUNDS

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A STUDY OF INVESTORS AWARENESS ON DIGITALIZATION OF MUTUAL FUNDS
CORPORATE INTERNSHIP PROGRAM PROJECT REPORT
SUBMITTED IN PARTIAL FULFILMENT OF PGDM PROGRAM 2015-17
SUBMITTED BY
Name: Shweta Rani
Roll No: 108
Company Mentor Faculty Mentor
Chetnya Sharma Dr. Amiya Kumar Mohapatra
Branch Manager Associate Professor
NJ India Invest Pvt Ltd
Delhi

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Certificate from Company
This is to certify that Shweta Rani-, a student of PGDM Program, (2015-
17) Batch of Fortune Institute of International Business,Delhi has
undertaken the Corporate Internship Training at NJ India Invest Pvt ltd
during 24 april 2017 to 24 june 2017under my supervision & guidance. He
/ She has conducted a study & completed the Project on A STUDY OF
INESTORS AWARENESS ON DIGITALIZATION OF MUTUAL FUNDS
During Training his/her work was TADA Back-end support
Date: Mr. Chetnya Sharma
Branch manager

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Certificate from Faculty Mentor
This is to certify that the Project Report titled A STUDY OF INESTORS AWARENESS ON
DIGITALIZATION OF MUTUAL FUNDS is a bonafide work carried out by Shweta Rani
of PGDM (2015-17) Batch of Fortune Institute of International Business, Delhi as a fulfillment
of PGDM Program.
She has worked under my guidance and satisfactorily completed her project work.
Date:
Dr. Amiya Kumar Mohapatra
Associate Professor

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Declaration by the Student
I, hereby, declare that the work presented in this report, entitled “A STUDY OF INVESTORS
AWARENESS ON DIGITALIZATION OF MUTUAL FUNDS” in fulfillment of the
requirements for PGDM Programme, submitted to Fortune Institute of International Business,
Delhi is an authentic record of my own work and is free from any type of plagiarism, carried out
under the supervision of Mr. Chetnya Sharma and Prof. Amiya Kumar Mohapatra.
I also declare that the work embodied in the present report
(i) is my original work and has not been copied from any source, and
(ii) Has not been submitted for any other Degree or Diploma of any university/Institution.
Shweta Rani
Roll No. 108

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Acknowledgement
I wish to express my sincere gratitude to my company guide, Mr. Chetnya Sharma, for providing
me an opportunity to do my internship in NJ India Investments Pvt. Ltd on the Project “A Study
of Investors Awareness on Digitalization of Mutual Funds”. In spite of being occupied with his
duties, he took out time to hear, guide and keep me on the correct path. Further, I wish to express
my gratitude to my faculty guide Prof. Amiya Kumar Mohapatra for his careful and precious
guidance which were extremely valuable for my study.
I thank them for providing the necessary guidance and encouragement for carrying out this
project work.
Shweta Rani

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Executive Summary
The project titled “A STUDY OF INVESTORS AWARENESS ON DIGITALIZATION OF MUTUAL
FUNDS” being carried out for NJ INDIA INVESTS PVT. LTD. Today an investor is interested in
tracking the valueofhisinvestments,whetherheinvestsdirectlyinthemarketorindirectlythroughMutual Funds.
This dynamic change has taken place because of a number of reasons. With globalizationandthegrowing
competitionintheinvestmentsopportunity availablehewouldhavetomakeguidedandrationaldecisionsonwhether
he gets an acceptable return on his investments in the funds selected byhim, or if he needs to switchto another fund.
Digital revolution is largely due to technology enabling people to deliver service faster, efficiently
and possibly at lower costs( by eliminating layer by layer costs).Digitalization of E-Wealth(TADA)
from physical form to e-form to provide services electronically by improving online infrastructure
and by increasing internet connectivity. One good example of digitalization is the email. It is much
speedier than traditional mail and can be delivered over a large distance instantly. Other noteworthy
examples are android phones and digital cameras. However digitalization of documents is perhaps
the best example. Digitalization helps to consume less space and is easy to manage Financial planning
here refers to the planning of an individual’s finance to help him/her meet his / her future goals or
objectives. It would also give us an insight and understanding of the role of financial planner and
other advisors in creating wealth for investors. This project deals with various aspects of Financial
Planning.
It tries to find out how financial planning has helped investors realize their goals, how many investors
have actually gone in for financial planning, what investment options do they prefer, what is the
general risk appetite for investors and what reasons causing investors to avoid financial planning.
The report begins with an overview about the Financial Planning process in practice. It also details
the role of a Financial Planner in creating wealth for investors. Finally, conclusions were made from
the data analyzed and recommendations were made as to how awareness of Financial Planning can
be increased among investors and what steps can be taken in order to inform investors about the
benefits and the need for financial planning in creating wealth for their secure future.

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Table of Contents
S.No Chapter No. Contents Page No.
From - To
1. …………………… Title Page 1
2. …………………… Company Certificate 2
3. …………………… Faculty Mentor Certificate 3
4. …………………… Declaration 4
5. …………………… Acknowledgement 5
6. …………………… Executive Summary 6
7. …………………… Table of Contents / List of
Illustrations
7
8. Chapter-1 Introduction to the Sector/
Company
8 – 26
9. Chapter-2 Review of Literature 27 – 29
10 Chapter-3 Project Objectives 30 - 42
11 Chapter-4 Project Methodology Adopted 43 -44
12 Chapter-5 Data Analysis & Interpretation /
Description of the Work Performed
45 -51
13 Chapter-6 Findings 52 - 53
14 Chapter-7 Recommendations 54 -55
15 …………………… References 56 -57
16 ………………….. Annexures 58 -62
List of Illustrations
Figures
S.No Title of the Figure/Photograph Page No
Tables
S.No Title of the Table Page No

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Chapter-1
Introduction to the Sector/ Company

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Chapter 1
Introduction to the Sector/ Company
The financial sector is a category of stocks containing firms that provide financial services to
commercial and retail customers; this sector includes banks, investment funds, insurance
companies and real estate. Financial services perform best in low interest rate environments. A large
portion of this sector generates revenue from mortgages and loans, which gain value as interest rates
drop.
When the business cycle is in an upswing, the financial sector benefits from additional investments.
Improved economic conditions usually lead to more capital projects and increased personal investing.
New projects require financing, which usually leads to a larger number of loans.
The financial sector is one of the largest portions of the S&P 500. The largest companies within the
financial sector are some of the most recognizable banking institutions in the world such as JPMorgan
Chase & Co., Wells Fargo & Company, Bank of America Corporation and Citigroup Inc. Along with
banks, the financial sector also consists of insurance, REITs, capital markets, consumer finance,
financial services and mortgage finance. The second largest industry within the sector is insurance
companies such as American International Group and Chubb Limited.
Financial stocks are very popular investments to own within a portfolio. Most companies within the
sector issue dividends and are judged on the overall strength of their financial health. In the financial
crisis of 2008, the financial sector was one of the hardest hit with companies such as Lehman Brothers
filing for bankruptcy. After an influx of government regulation and restructuring, the financial sector
is considerably stronger in 2016. Economists often tie the overall health of the economy with the
health of the financial sector. If financial companies are weak, this is a detriment to the average
consumer. Financial companies provide loans for businesses, mortgages to homeowners and
insurance to consumers. If these activities are restricted, it stunts growth in both small business and
real estate.
Over the last 10 years, the sector has produced a negative 1.00% overall return for investors for the
period ending May 31, 2016. This was caused by the financial crisis that produced catastrophic
returns in 2007, down 18.63%, and 2008, down 55.32%. However, over the last five years, the sector
has rebounded, giving investors an annual average return of 10.55%. This slightly underperforms the
total S&P 500, which has a total return of 11.06% for the same time period. Investors looking for a
sector bouncing back from a crisis and successful in a low interest rate environment should consider
the financial sector.
Investors use sectors to place stocks and other investments into categories such as technology,
healthcare, energy, utilities and telecommunications. Each sector has unique characteristics and a
different risk profile that attracts a specific type of investor. It is, therefore, common for analysts and
other investment professionals to specialize in certain sectors. For example, at a large research firm,
an analyst may cover only pharmaceutical companies. Additionally, investment funds often
specialize in a particular economic sector, a practice known as sector investing. The oil and gas sector
is an example of a portion of an economy that attracts specialized investment funds.

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Mutual funds
A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such as shares,
debentures and other securities. The income earned through these investments and the capital
appreciations realized are shared by its unit holders in proportion to the number of units owned by
them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally managed basket of securities at a relatively low
cost The flow chart below describes broadly the working of a Mutual Fund.
A Mutual Fund is a body corporate registered with the Securities and Exchange Board of India (SEBI)
that pools up the money from individual/corporate investors and invests the same on behalf of the
investors/unit holders, in Equity shares, Government securities, Bonds, Call Money Markets etc., and
distributes the profits. In the other words, a Mutual Fund allows investors to indirectly take a position
in a basket of assets. 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. Investments in securities are spread among a wide cross-section of industries and sectors
thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same
direction in the same proportion at same time. Investors of mutual funds are known as unit holders.
The investors in proportion to their investments share the profits or losses. 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 Exchange Board of India
(SEBI) which regulates securities markets before it can collect funds from the public.
HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the
initiative of the Government of India and Reserve Bank. Though the growth was slow, but it
accelerated from the year 1987 when non-UTI players entered the Industry. In the past decade, Indian
mutual fund industry had seen a dramatic improvement, both qualities wise as well as quantity wise.
Before, the monopoly of the market had seen an ending phase; the Assets under Management (AUM)
was Rs67 billion. The private sector entry to the fund family raised the AUM to Rs. 470 billion in
March 1993 and till April 2004; it reached the height if Rs. 1540 billion. The Mutual Fund Industry
is obviously growing at a tremendous space with the mutual fund industry can be broadly put into
four phases according to the development of the sector. Each phase is briefly described as under.

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The history of mutual funds in India can be broadly divided into four distinct phases.
First Phase: 1964-1987
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve
Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of
India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme
launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700 Crores of assets
under management.
Second Phase: 1987-1993 (Entry of Public Sector Funds
In 1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and
Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI
Mutual Fund was the first non- UTI Mutual Fund established in June1987followed by Canara bank
Mutual Fund (Dec87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank
Mutual Fund (Nov89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC
established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At
the end of 1993, the mutual fund industry had assets under management of Rs.47, 004 cores.
Third Phase: 1993-2003 (Entry of Private Sector Funds
With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry,
giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first
Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be
registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was
the first private sector mutual fund registered in July 1993. The industry now functions under the
SEBI (Mutual Fund) Regulations1996.As at the end of January 2003; there were 33 mutual funds
with total assets of Rs. 1, 21,805 Crores. The Unit Trust of India with Rs.44541 Crores of assets
under management was way ahead of other mutual funds.
Fourth Phase – Since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into
two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under
management of Rs.29, 835 Crores as at the end of January 2003, representing broadly, the assets of
US 64 scheme, assured return and certain other schemes. The second is the UTI Mutual Fund Ltd,
sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual
Fund Regulations.
The Association of Mutual Funds in India (AMFI), incorporated on 22 August 1995, is an industry standards
organisation in India in the mutual funds sector. It was formed in 1995. Most mutual funds firms in India are
its members. The organisation aims to develop the mutual funds market in India, by improving ethical and
professional standards.

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The Average AUM in Mutual Funds in India as of March 2017 is INR 1.82 million crores Below is an
indicative list of AMC’s with maximum AUM:
 ICICI Prudential Mutual Fund
 HDFC Mutual Fund
 Reliance Mutual Fund
 Birla Sun Life Mutual Fund
 SBI Mutual Fund
About Mutual Funds
Mutual Funds is a vehicle to mobilize money from investors, to invest in different markets and
securities, in line with the investment objectives agreed upon, between the mutual funds and the
investors. In other words, through
investment in mutual fund, a small investor
can avail of professional fund management
services offered by an Asset Management
Company (AMC).
A Mutual Fund consists of different
schemes and pre-announced objectives.
When investors invest in a mutual fund
scheme, they are effectively buying into its
investment objective. The objective can be
to invest in Equity, Debt, Gold or it can be to invest in all of them together through various hybrid
schemes.
Against the investment, Mutual Fund allots ‘Units’ to the investors. Returns in mutual funds can be
earned through:
 Interest;
 Dividends on the investment it holds; and
 Capital Gains/ Capital Losses when investments are sold
The true worth of a unit of the scheme is called ‘Net Asset Value (NAV) of the scheme’.
Advantages of investing in Mutual Funds:
 Portfolio Diversification
 Reduction in Risk
 Professional Management
 Economies of Scale
 Liquidity

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 Tax Deferral – Payment of tax at the time of sale only
 Tax Benefits - ELSS
 Regulatory comfort
 Systematic Approach to Investment – SIP, SWP, STP
Certain Disadvantages:
 Lack of Customisation
 Issue relating to management of portfolio of mutual funds
 No control over costs. However, SEBI has imposed certain limits on the expenses that can be
charged to any scheme
The Structure of Mutual Funds in India is governed by the SEBI Regulations, 1996. These
regulations make it mandatory for mutual funds to have a 3-tier structure of Sponsors-Trustee-
AMC (Asset Management Company).
Sponsor: The application to SEBI for registration of a mutual fund is made by the sponsor. It
should be carrying on business in financial services for 5 years. The sponsor needs to have a
minimum 40% shareholding in the capital of the AMC.
Trustee: Trustee is usually a company (corporate body) or a Board of Trustees (body of
individuals). The main responsibility of the Trustee is to safeguard the interest of the unit holders
and inter-alia ensure that the AMC functions in the interest of investors and in accordance with
the SEBI Regulations, 1996, the provisions of the Trust Deed and the Offer Documents of the
respective Schemes. The agreement between Sponsor and Trustees is called ‘Trust Deed’. At least
2/3rd directors of the Trustee are independent directors who are not associated with the Sponsor
in any manner.
Asset Management Company (AMC): The AMC is appointed by the Trustee as the Investment
Manager of the Mutual Fund. The AMC is required to be approved by SEBI to act as an AMC of
the Mutual Fund. At least 50% of the directors of the AMC are independent directors who are not
associated with the Sponsor in any manner. The AMC must have a net worth of at least 10cr at all
times.
Registrar and Transfer Agents: The AMC if so authorized by the Trust Deed appoints the
Registrar and Transfer Agent to the Mutual Fund. The Registrar processes the application form,
redemption requests and dispatches account statements to the unit holders.
Custodian: The custodian is appointed by the mutual fund (Trustees). The custodian settles all
the transactions on behalf of the mutual fund schemes. More than 50% of the custodian or directors
of the custodians should be independent from the sponsors. Therefore, the custodian and the
sponsor cannot be the same entity.
Distribution Channels
a. Individual Agents (Individual Financial Advisors – IFAs) - Most important drawback with
them is that they don’t have huge branch network.
b. Institutional Channels-
 Private Distribution Companies (Brokerage Firms, National Distributors)
 Banks (Private and Foreign) and NBFCs
 Post Offices

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c. New Distribution Channels – Technology has opened the doors to newer ways.
Internet:
 Direct Interactions
 Reduction in Cost
 Convenience – Less paper work
 High Standards in Servicing the client
Stock Exchanges:
 High Penetration
 High volume of transactions
 Cost effectiveness
d. A new cadre of distributors such as –
 Postal agents;
 Retired government officials; and
 Retired teachers and retired bank officers with a service of atleast 10 years;
are allowed to sell units of simple and performing mutual fund schemes through simplified form
of NISM Certification and AMFI Registration.
Commission Structure
Initial or Upfront Commission – It is paid on the amount mobilized by the distributor.
Trail Commission – It is calculated as a percentage of the net assets attributable to the Units sold
by the distributor. The trail commission is normally paid by the AMC on a quarterly basis. The
distributor is paid a commission for as long as the investors’ money is held in the fund.
TRADING AND DEMAT ACCOUNT:
NJ INDIA INVESTS PVT.LTD offers benefits of trading and depository services under one roof.
NJ is registered as a member with Bombay Stock Exchange (BSE) & National Stock Exchange
(NSE). NJ is also registered as a Depository Participant of CDSL. Dematerialization and trading in
the demat mode is the safer and quicker alternative to holding physical securities. Under the
depository services the securities are held in electronic form for the investor directly by depository.
At NJ, we are committed to provide complete depository services which are convenient, safe and
secure. Customers can approach the DP helpdesk for any queries & grievances that they may have.

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SERVICES PROVIDED TO CLIENT
360° – ADVISORY PLATFORM
With this philosophy, NJ tries to offer all possible products, services and support which an Advisor
would need in his business.
 Training and Self Development Support: For every advisor to be a part of NJ it is necessary
to clear the AMFI Examination for the starting of a business of Mutual Fund.
 Two-day training is provided before the exam and even a three-day product training is
provided so that the partners have enough skill and knowledge so as to start their business or
extend it to a different level.
 Marketing Support: All the kinds of various pamphlets etc. are provided for advertisement
purposes.
3600 Wealth
Advisory Support
Technology
Support
Sales
Support
Customer
Support
Training
Support
Marketing
Support
Research
Desk

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 Sales Support: Even the partners have a benefit of joint call services so as to convience the
clients in a better way. All kinds of ongoing training is provided for the development of the
partners.
 Research Support: The partners are made aware on the various schemes in the market,
analysis on debt and equity and on the market trends.
 Technology Support: Two unique features are provided to the partners as well as the clients
known as Partner Desk and Client Desk respectively. Partner Desk gives the partner an edge
over the competition, as comprehensive reports related to the business are available at his
fingertips. Client Desk provides the client to access all the details related to his investment by
a particular login.
 Customer Support: Solving all the clients related queries by the help of a phone call or the
way of submitting the queries at the partner desk platform and one can keep track of the status
of the query.
NJ Wealth - Financial Products Distributor Network is one of India's leading and most successful
networks of distributors in the financial services industry. Started in 2003, the NJ Wealth seeks to
reach out to the common man and extend the opportunity to create wealth through an empowered
network of financial product distributors – the NJ Wealth Partners. The NJ Wealth family has grown
steadily and today it has over 16,000 NJ Wealth Partners, spread across 98 branches in 19 states in
India with over 12 lac investors and over INR 12,000 crores of mutual fund assets under advice.
Irrespective of the numbers though, it is trust in us which fuels the passion for creating solutions with
excellence that touch many lives, day after day.
The key offerings of the NJ Wealth Distributor platform are briefly mentioned here.
Technology Support
A Complete Online Business Management Desk with extensive MIS reports and administrative tools
to enable you effectively Manage, Monitor & Control your business through Partner Desk.
 You do not need to maintain back-office records and reports with yourself
 You do not need to maintain records of the investments done by your clients
 You can centrally manage your NJ Services, Send Queries etc
 You can effectively use reports / tools to improve your services to your clients & develop
your business.
 You can smartly manage & monitor your business and concentrate on business growth backed
by disciplined business decisions.

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Sales Support
Every NJ Funds network partner is provided with a Relationship Manager who remains in touch with
him on a regular basis to provide all necessary information and support. Your requirement in terms
of sales material, application forms etc would be taken care of by our sales team.
Apart from regular sales support on a daily basis NJ does:
 Regular sales meet of your client
 Regular partner meet by inviting an industry expert to gain market insight.
 Doing joint calls for you whenever required
 Doing sales planning and setting up sales process for your sales staff
Marketing Support
Marketing your services and products is another important aspect of growing your business. Building
your brand in the market is very important in today’s competitive world. NJ understands this need
and provides marketing support through NJ print shop. NJ print shop provides multiple
Branding materials which you can order through your partner desk. A dedicated Marketing platform
to add an edge to your Advisory Business. NJ Print Shop offers wide range of marketing material for
your business with excellent features.
 Co – branded – Project your Brand / Company
 Professionally designed
 Quality / excellent content from NJ Marketing
 Ready Printed – Door step Delivered
 Distinguishing factor - Get Ahead
 Available in many regional languages
Training Support
Developing soft skills in financial advisory industry is not optional but necessity as client relationship
is at the core of business. At NJ we truly believe in this fact and them to provide all necessary training
support.

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Continuous enhancement and up gradation of one’s skills & knowledge are the needs of the hour. NJ
Gurukul emerged as an idea to bridge the gap that existed in meeting the needs of Financial Advisors
for continued training and education.
Research Support
Our competent research team adds significant value to our advisory by providing regular product,
schemes and market updates. Our research team, on a regular basis does detailed analysis and study
of different mutual funds schemes available in the market and come out with list of recommended
schemes. This ‘ready reckoner’ of schemes helps our partners to pick and choose a particular scheme
for their investors.
Customer Support
Solving all your client’s investment related queries is just a phone call away as our customer care
executives remain available to answer and solve your queries. NJ platform also provides you facility
to submit your queries online at your Partner desk platform and you can keep track of status of your
query. Single Contact Point for All Queries
MUTUAL FUND INVESTING STRATEGIES
1. Systematic Investment Plans (SIPs)
These are best suited for young people who have started their careers and need to build their wealth.
SIPs entail an investor to invest a fixed sum of money at regular intervals in the Mutual fund scheme
the investor has chosen, an investor opting for SIP in xyz Mutual Fund scheme will need to invest a
certain sum on money every month/quarter/half-year in the scheme.
2. Systematic Withdrawal Plans (SWPs)
These plans are best suited for people nearing retirement. In these plans, an investor invests in a
mutual fund scheme and is allowed to withdraw a fixed sum of money at regular intervals to take
care of his expenses

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3. Systematic Transfer Plans (STPs)
They allow the investor to transfer on a periodic basis a specified amount from one scheme to another
within the same fund family – meaning two schemes belonging to the same mutual fund. A transfer
will be treated as redemption of units from the scheme from which the transfer is made. Such
redemption or investment will be at the applicable NAV. This service allows the investor to manage
his investments actively to achieve his objectives. Many funds do not even charge any transaction
fees for his service – an added advantage for the active investor.
MAJOR MUTUAL FUND COMPANIES IN INDIA
Birla Sun Life Mutual Fund
Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life Financial. Sun
Life Financial is a global organization evolved in 1871 and is being represented in Canada, the US,
the Philippines, Japan, Indonesia and Bermuda apart from India. Birla Sun Life Mutual Fund follows
a conservative long-term approach to investment. Recently it crossed AUM of Rs. 10,000 Crores.
Bank of Baroda Mutual Fund (BOB Mutual Fund)
Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30, 1992 under the
sponsorship of Bank of Baroda. BOB Asset Management Company Limited is the AMC of BOB
Mutual Fund and was incorporated on November 5, 1992. Deutsche Bank AG is the custodian.
HDFC Mutual Fund
HDFC Mutual Fund was setup on June 30, 2000 with two sponsors namely Housing Development
Finance Corporation Limited and Standard Life Investments Limited.
Prudential ICICI Mutual Fund
The mutual fund of ICICI is a joint venture with Prudential Plc. of America, one of the largest life
insurance companies in the US of A. Prudential ICICI Mutual Fund was setup on 13th of October,
1993 with two sponsors, Prudential Plc. and ICICI Ltd. The Trustee Company formed is Prudential
ICICI Trust Ltd. and the AMC is Prudential ICICI Asset Management Company Limited
incorporated on 22nd of June, 1993.

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State Bank of India Mutual Fund
State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to launch offshore fund,
the India Magnum Fund with a corpus of Rs. 225 cr. approximately. Today it is the largest Bank
sponsored Mutual Fund in India. They have already launched 35 Schemes out of which 15 have
already yielded handsome returns to investors. State Bank of India Mutual Fund has more than Rs.
5,500 Crores as AUM. Now it has an investor base of over 8 Lakh spread over 18 schemes.
Tata Mutual Fund
Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act, 1882. The sponsors for Tata Mutual
Fund are Tata Sons Ltd., and Tata Investment Corporation Ltd. The investment manager is Tata Asset
Management Limited and its Tata Trustee Company Pvt. Limited. Tata Asset Management Limited's
is one of the fastest in the country with more than Rs. 7,703 Crores (as on April 30, 2005) of AUM.
Kotak Mahindra Mutual Fund
Kotak Mahindra Asset Management Company (KMAMC) is a subsidiary of KMBL. It is presently
having more than 1, 99,818 investors in its various schemes. KMAMC started its operations in
December 1998. Kotak Mahindra Mutual Fund offers schemes catering to investors with varying risk
- return profiles. It was the first company to launch dedicated gilt scheme investing only in
government securities.
Unit Trust of India Mutual Fund
UTI Asset Management Company Private Limited, established in Jan 14, 2003, manages the UTI
Mutual Fund with the support of UTI Trustee Company Private Limited. UTI Asset Management
Company presently manages a corpus of over Rs.20000 Crores. The sponsors of UTI Mutual Fund
are Bank of Baroda (BOB), Punjab National Bank (PNB), State Bank of India (SBI), and Life
Insurance Corporation of India (LIC). The schemes of UTI Mutual Fund are Liquid Funds, Income
Funds, Asset Management Funds, Index Funds, Equity Funds and Balance Funds.
Reliance Mutual Fund
Reliance Mutual Fund (RMF) was established as trust under Indian Trusts Act, 1882. The sponsor of
RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is the Trustee. It was
registered on June 30, 1995 as Reliance Capital Mutual Fund which was changed on March 11, 2004.
Reliance Mutual Fund was formed for launching of various schemes under which units are issued to
the Public with a view to contribute to the capital market and to provide Investors the opportunities
to make investments in diversified securities On December 20, 1999.

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NJ INDIA INVEST PVT LTD
Here N J stands for Mr. Neeraj Choksi and Jignesh Desai the chairman of the company. NJ India
Invest Pvt. Ltd. is one of the leading advisors and distributors of financial products and services in
India. Established in year 1994, NJ has over a decade of rich exposure in financial investments space
and portfolio advisory services. From a humble beginning, NJ over the years has evolved out to be a
professionally managed, quality conscious and customer focused financial / investment advisory &
distribution firm.
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
by NJ. It has over a decade of rich exposure in financial investments and portfolio advisory services.
It is basically a Surat based company with its headquarters in Surat. NJ over the years has evolved
out to be a professionally managed, quality conscious and customer focused financial / investment
advisory & distribution firm.
NJ India Invest Pvt. Ltd operates a division called NJ Wealth Advisors Network, previously known
as NJ Funds’ Network, to provide a wide range of products and consultancy to individuals and entities
seeking to build the wealth advisory practice. It offers its clients with quality, unbiased, need based
advisory services, investment products. The Wealth Advisors are known as NJ. Partners and as the
name suggests, all advisors are partners as it is firmly believed that the success of the wealth advisor
is the success of the company. NJ has over 15,000 NJ Funds Network Partners and over INR 10,000
Corers of Mutual Fund assets under advice with a wide presence in over 120 locations in 21 states in
India. The large number shows the trust and commitment that NJ shares with its clients. It offers its
advisors all the financial products and services that enables them to add considerable value to their
existing business and take it to a different level. The services offered are increasingly recognized as
the best and most comprehensive in nature. The scope, depth, and quality of the services and support
is unmatched in the industry. NJ Funds Network is proud to be the pioneers in India in providing the
360° Advisory platform to independent advisors.
“Success is a journey, not a destination. ―If we look for examples to prove this quote then we can
find many but there is none like that of NJ India Invest Pvt. Ltd. Back in the year 1994, two people
created history by establishing NJ India Invest Pvt. Ltd. leading advisors and distributors of financial
products and services in India. NJ has over a decade of rich exposure in financial investments space
and portfolio advisory services. From a humble beginning, NJ over the years has evolved out to be a
professionally managed, quality conscious and customer focused financial / investment advisory &
distribution firm. 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 by NJ.

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At NJ we believe in …
 having single window, multiple solutions that are integrated for simplicity and sapience
 making innovations, accessions, value-additions, a constant process
 Providing customers with solutions for tomorrow which will keep them above the curve, today NJ
has over INR 60 billion of mutual fund assets under advice with a wide presence in over 120 locations
in 21 states and 12000+ employees in India. The numbers are reflections of the trust, commitment
and value that NJ shares with its clients
NJ Wealth Advisors, a division of NJ, focuses on providing financial planning and portfolio advisory
services to premium clients of high net-worth. At NJ Wealth Advisors, we have developed processes
that focus on providing the best in terms of the advice and the ongoing management of your portfolio
and financial plans at NJ, our experience, knowledge and understanding enables us to provide you
with the expected value, in an enhanced way. As a leading player in the industry, we continue to
successfully meet the expectations of our clients, through meaningful and comprehensive solutions
offered by NJ Wealth Advisors. Doing the ‘right’ thing is a virtue most desirable. The difference
between success and failure is often, not dictated by knowledge or expertise, but by its actual
application and perseverance. When it comes to successful wealth creation for customer, it is
something that we believe in and practice. For us it is more than a mission it is what that defines our
lives and our actions at NJ India Invest.
With this passion, we continue to evolve and make the right product accessions and service
innovations in our offerings. To the advisors, we offer a 360° comprehensive business platform with
unmatched IT solutions, empowering them to set the best practice standards and deliver real value to
their customer. Over the year, our passion has seen us grow from strength to strength and expand
rapidly, setting new benchmarks in the process. But to us, what really matters the most is the number
of lives we have managed to transform and we still have a long way to go...
Today NJ India Invest Pvt. Ltd is one of the leading advisor and distributors of financial products
and services in India. Established in year 1994. NJ has over a decade of rich exposure in financial
investment space and portfolio advisory services. From a humble beginning, NJ over the year has
evolved out to be a professionally managed, quality conscious and customer focused financial /
investment advisory and distribution firm.
NJ has headquartered in Surat, India, and has more than INR 10,000 corer plus of mutual fund assets
under advice, with a wide presence at over 104 locations in 21 states in India. The numbers are
reflections of the trust, commitment and value that NJ shares with 11 Lac plus customer base with
over 14000 plus Advisors.

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HISTORY
N.J. India Invest is a Mutual Fund Distribution house. It was established in the year 1994 by Mr.
Neeraj Chowksi and Mr. Jignesh Desai at Surat. N.J. has 21 years of experience in the field of
Financial Products and Services. They are the leading advisors and distributors of financial services
in India. They have over 135 branches in 21 states this year they are also planning to go abroad and
open their branch in Dubai.
N.J. India Invest has a network of over 15000 advisors who provide financial planning services to
various clients. These advisors receive support services from N.J. India Invest and provide their
clients variety of financial services and investment advice. N.J. India Invest is the largest Mutual
Fund Distribution house with total Assets under Management (AUM) of over Rs.10500 crore. N.J
India Invest distributes the products of 42 AMCs or Asset Management Companies in India. All the
existing and new schemes of the various AMCs are made available to the various partners of N.J.
India Invest so that they can offer these mutual funds to their respective clients.
N.J. India Invest has also started a new subsidiary N.J. Realty which enables the partners of N.J. to
give their clients service in the real estate sector also. The clients can specify their preferences and
through a centralized system the partners can access the details about the projects of the various
developers across India. N.J. India Invest provides a number of services to its partners and clients.
They have a unique 360˚ Platform which gives all the services necessary for the client to grow and
prosper in the business of mutual funds. `
MISSION OF NJ INDIA INVEST
Ensure creation of the desired value for our customers, employees and associates, through constant
improvement, innovation and commitment to service & quality. To provide solutions which meet
expectations and maintain high professional & ethical standards along with the adherence to the
service commitments.

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VISION AND VALUES
Vision
To be the leader in our field of business through,
 Total Customer Satisfaction.
 Commitment to Excellence.
 Determination to Succeed with strict adherence to compliance.
 Successful Wealth Creation of our Customers.
Core Values
 Customer Centricity
 Ethics
 Transparency
 Teamwork
 Ownership
MANAGEMENT
The management at NJ brings together a team of people with wide experience and knowledge in
the financial services domain. The management provides direction and guidance to the whole
organization. It has strong visions for NJ as a globally respected company providing comprehensive
services in financial sector.
The ‘Customer First’ philosophy is deeply ingrained in the management at NJ. The aim of the
management is to bring the best to the customers in terms of
 Range of products and services offered
 Quality Customer Service
All the key members of the organization put in great focus on the processes & systems under
diverse functions of business. The management also focuses on utilizing technology as the key
enabler for all the activities and to leverage technology for enhancing overall customer experience.

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ORGANISATIONAL STRUCTURE:
Name Designation
Mr. Neeraj Choksi JT. Managing Director
Mr. Jignesh Desai JT. Managing Director
Sales Team:
Mr. Misbah Baxamusa National Head
Mr. Kulbhushan Nandwani A.V.P.
Mr. Prashant Kakkad A.V.P.
Executive Team:
Mr. Shirish Patel Information Technology
Mr. Vinayak Rajput Finance & Operations
Mr. Abhishek Dubey Marketing & Development
Mr. Viral Shah Research
Mr. Dhaval Desai Human Resources

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PRODUCTS AND SERVICES
PRODUCTS: NJ offers advisory and distribution services on the following products.
INVESTMENT PRODUCTS:
 Mutual funds-covering all AMCs &all schemes
 Fixed deposits of companies
 PMS products
 Government/RBI bonds
 Infrastructure bonds
 Approved securities for charitable trusts
REAL ESTATE:
 Residential properties
 Commercial properties
TRAINING AND EDUCATION:
 Certification training courses
 AMFI
 CFP
 Training products

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Chapter-2
Review of Literature

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Chapter 2
Review of Literature
Any research builds on the research carried out previously on the given subject. The purpose of
the literature review is to review what has previously been done on the subject and analyses it in
the present context so that an effective understanding can be established. Before conducting this
project I have consulted some work which has been done previously on the subject of the
awareness about and preference of the investment opportunities among the investors. This has
helped me greatly in building up a framework for my own project. A review of the work is
presented below.
1:- “Mutual Funds: The New Era”
Srinivasan (1999) in his study titled “Mutual Funds: The New Era” stated that the future of mutual
funds makes the country bright, mainly because it meets investors needs so perfectly. The open
ended fund 28 revolutionized the way Indians invest and lead to the growth of strong institutional
frame work that can support the capital market in the long term.
2:-“Factors Influencing Mutual Fund Investment Decision Making”
Muthappan (2006) in his study entitled “Factors Influencing Mutual Fund Investment Decision
Making”, revealed that tax exemption given to the investments made in mutual funds was the most
influencing factor in mutual fund investment decision making. Investors preferred to invest in
private sector mutual funds than others and they preferred to invest in income schemes of open-
ended nature. The track record of the mutual fund was the most influential factor in the selection
of mutual funds. More than half of the respondents expressed that their objective was reasonably
fulfilled through investment in mutual funds. An important factor which discouraged investment
in mutual funds was fear of fraud ie., security perception in the minds of the investors.
3:- “Investors Preference of Investment in Mutual Funds”
Singh and Chander (2006) in their study “Investors Preference of Investment in Mutual Funds:
An Empirical Evidence” the simple techniques like weighted average score, chi-Square, mean,
median have been applied for the purpose of analysis of data and found that the investors consider
gold to be the most preferred form of investment, followed by NSC and Post Office schemes.
Hence, the basic psyche of an Indian investor, who still prefers to keep his savings in the form of
yellow metal, was indicated. Investors belonging to the salaried category and in the age group of
20-35 years showed inclination towards close-ended growth (equity-oriented) schemes over the
other schemes types. A majority of the investors based 40 their investment decision on the advice
of brokers, professionals and financial advisors.

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4:- “An Analysis of Behavior of Investors In India”
Srivastava (2007) in his study entitled “An Analysis of Behavior of Investors In India” investigated
and found that the Indian investors had not been absolutely logical and rational in their investment
behavior and their investment decisions were always affected by definite behavioral factors. In
this research 80% of the sample investors agreed at least somewhat that the stock market was the
best investment for long-term holders. The responses in the research suggested that the investors
feel they can make 43 money in the stock market and feel confident that the stock market was
neither over valued nor highly priced. He concluded that the Indian, investors don’t believe in the
stock market’s “efficiency”. Additionally he explored about the investing traditions in India. The
responses examined that investors have acquaintances with respect to the past performance of the
stocks over the other universal investing instruments. Results advocated a public belief in the
Indian Stock market that underlies stock valuation
5:- “Mutual Funds Investors‟ Confidence”
Rethinapandy and Selvakumar (2008) in their study entitled “Mutual Funds Investors‟
Confidence” found that mutual funds provide better opportunities to investors to get more return.
At present, the Indian mutual fund industry is dominated by private mutual fund companies.
Developing countries like India have good opportunities for mutual funds. FIIs investments show
an evidence for the confidence of foreigners in the Indian mutual fund industry. The Indian mutual
fund industry provided constant and consistent return to investors. As the Indian Corporate Sector
needs huge funds for its expansion and development programmes, better growth was expected in
the Indian Mutual funds industry

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Chapter-3
Project Objectives

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Chapter 3
Project Objectives
1) To identify that which factors are considered by the people before they invest the money in
any instrument.
2) To analyze the investor awareness level about the digitalization of mutual fund from physical
form to e-form.
3) To maintain a multilevel structure of control over the partner and clients.
4) Understanding the mindset of the investors towards Financial Planning.

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DIGITALIZATION CONCEPT
Digital revolution is largely due to technology enabling people to deliver service faster, efficiently
and possibly at lower costs( by eliminating layer by layer costs).Digitalization of E-
Wealth(TADA) from physical form to e-form to provide services electronically by improving
online infrastructure and by increasing internet connectivity.
One good example of digitalization is the email. It is much speedier than traditional mail and can
be delivered over a large distance instantly. Other noteworthy examples are android phones and
digital cameras. However digitalization of documents is perhaps the best example. Digitalization
helps to consume less space and is easy to manage.
ADVANTAGES OF DIGITALIZATION
1. Save space and cost
2. No physical limit for storage
3. 24/7 availability of success
4. Preservation of old texts/manuscripts
5. Easy retrieval of information using keywords
6. Integrated online resource sharing
7. Linking and networking possibilities
8. Reduction of errors possibilities
9. Increases productivity
10. Enhances transparency, durability and flexibility
NJ INDIA INVESTS PVT.LTD has come out with the concept of digitalization of E-Wealth
(TADA) from physical form to e-form recently. Earlier the process of opening trading and demat
account is based only on physical forms but now the company has introduced e- form .It is
introduced to reduce the possibilities of errors, to reduce the transportation and other expected
costs ,for reducing documentation. Today every individual is connected through internet; NJ has
decided to convert their work into digitalization, so that digitalization provides ease to their
partners in opening their clients TADA accounts. NJ has a B2B business model where it is
connected to its partners rather than directly to clients.

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FINANCIAL PLANNING
While one cannot predict the future, one can certainly be better prepared for it. All of us have
something to plan for. In fact, our financial situation influences almost every aspect of our lives….
Financial planning is a systematic approach whereby the financial planner helps the customer to
maximize his existing financial resources by utilizing financial tools to achieve his financial goals.
A Distributor/Agent is expected to give unbiased and appropriate investment advice to a potential
investor. Appropriate investment decisions, however, require proper planning of the financial
situation of the investor. . A financial planner is needed to help the investor do adequate financial
planning, before he decides on where to invest his funds. Financial Planning forms, therefore, the
basis of genuine investment advice. Each one of us needs “finance” at various stages of our life,
and needs to ensure that we have the money available at the right time, when needed.
What Financial Advisors Do?
Most financial advisors want to look at your whole financial picture – all your income and
liabilities. They want a complete picture of where you are financially so they can draw a map from
where you are to where you want to go. Here are some of the benefits of using a financial advisor:
A) The Big Picture – A financial advisor will develop a comprehensive profile of your financial
status. This profile will identify areas of strengths and weakness.
B) An Unemotional Assessment – The financial advisor will give you an unemotional assessment
of what needs to be done. Money is an emotional topic for many people, which often leads to bad
decisions.
C) Allocate Resources – It is likely you have competing priorities, such as sending the kids to
college while building a retirement fund. A financial advisor can help you allocate resources so
both goals receive the appropriate share of dollars.

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D) Minimize Taxes – Most investment decisions carry some type of short or long-term tax
implication. Your adviser can help you shape your investments in a manner that keeps taxes to a
minimum and more of your Rupees invested.
The Benefits of Financial Planning
It may be necessary for a person to save for many years to create adequate income in the
retirement phase. Certain financial products and techniques can help reduce the amount of tax one
has to pay. It is important that financial plans are tax efficient. The simplest financial plans may
mean little more than contributing into a suitable financial product. The most complex plans will
involve detailed knowledge of law, taxation, and investment principles. Amidst this complex
environment for an investor, financial planning provides direction and meaning to financial
decisions. It allows one to understand how each financial decision one makes affects other areas
of one’s finances. For example, buying a particular investment product might help one save
adequately to finance his/her child’s higher education or it may provide enough for a comfortable
retirement. By viewing each financial decision as part of a whole, one can consider its short and
long-term effects on one’s life goals. One can also adapt more easily to changes in life and feel
more secure that one’s goals are on track. A Financial Planner also has many benefits:
 Ability to establish long-term relationships: A financial planner is not just selling
products, but is instead taking responsibility for the financial wellbeing of his clients. With
such an approach, it is easy to build lasting relationships, unlike in a transaction-oriented,
product selling approach where a customer has to be found anew for every fresh
investment. In addition, the financial planner ideally links his own rewards and fees to the
client’s financial success and the achievement of their financial goals. On the other hand,
a seller of products makes the commission regardless of how well or not the client fares,
so the client may find it difficult to consider such a product sales-person as his guide.

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 Ability to build a profitable business: By offering value-added services, the financial
planner takes the emphasis away from price and is able to retain enough to build a profitable
business. Clearly, clients are less likely to ask for a rebate if they perceive good
Advice and value being offered to them. If one does not offer such advice, then it is merely
a commodity service where there is intense competition, difficulty in retention and narrow
margins.
Overall, being a financial planner can be satisfying in many ways. By helping clients lead more
rewarding and happier lives and by pointing the right direction for them, one not only earns their
trust and friendship, but also a deep sense of fulfillment of having made a positive impact on their
lives. After all, financial health is linked to and is the foundation for emotional, physical and
spiritual health and gives a sense of security and accomplishment to the client.
The Financial Planning Process
Financial Planning involves advising clients on how to manage their finances and investments to
achieve their financial goals. A financial planner assimilates the aspirations of the clients and
draws a road map to make them a reality.
Process
The Certified Financial Planner- Board of Standards (USA) first formalized the financial planning
process. The process consists of the following six broad steps:
1. Establishing and Defining the Client-Planner Relationship.
2. Gathering Client Data, Defining Client Goals.
3. Analyzing and Evaluating a Client’s Financial Status.
4. Developing and Presenting Financial Planning Recommendations and/or Options.
5. Implementing the Financial Planning Recommendations.
6. Monitoring the financial planning recommendations.

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Financial Planning Process in Practice
The process has been generally described in the above six steps. Let us see in some more depth
how an Indian financial planner ought to use the process.
Step 1: Establish and define the Relationship with the Client:
The financial planner should clearly explain or document the services to be provided to a client
and define both his and the client’s responsibilities. This will cover the information required from
the client, how decisions will be made, and frequency of portfolio review. The planner should
explain fully how he will be paid and by whom. The client and the planner should agree on how
long the professional relationship should last and on how decisions will be made.
Step 2: Define the Client’s Goals:
Get the client to talk about their goals in life and what’s important about money to them. For each
financial need, such as retirement or children’s education or purchasing a home, it is best to clearly
write down what amount(s) will be required and when they will be required. This is also the phase
where trust and confidence starts to develop, as the clients begin to realize that the advisor is not
looking to just sell products but cares deeply about their financial well-being.
Step 3: Gather and Analyze Data, Assess the Current Resources and Future Income
Potential of the Client
The financial planner should ask for information about the client’s financial situation. The client
and the planner should mutually define the client’s personal and financial goals, understand the
time frame for results and discuss, if relevant, how a client feels about risk. The financial planner
should gather all the necessary documents before giving the client the advice the client seeks.
From the data, try to construct a current balance sheet of all the client’s assets (what he/she owns
in terms of fixed and financial assets), and his/her liabilities (what he/she owns in the form of loans
and debts). As the next step, generate an income statement with projections of (i) cash inflows
from salary, professional fees, and receipts from investments and other sources, and (ii) outflows
or expenses including regular monthly as well as non-recurring expenses.

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Step 4: Determine and shape the Risk Tolerance level of the Client.
Ask questions about how much of a loss the client can withstand, and for how long he can accept
his investment being below the principal value. Point out to them that higher the investor’s risk
tolerance, the greater is the potential for him/her to earn higher returns. In other
words, if the client is willing to deal with the downside and can wait a few years for the returns to
materialize, then he/she can expect a higher return from their investment portfolio over time.
While advising clients on how to deal with the risks relating to investments, the financial planner
should sometimes shape or alter the client’s attitudes to risk. This is especially relevant n those
cases where:
 The client’s degree of risk-taking keeps changing with market conditions: Frequently, a
client’s attitude towards risk keeps changing at different phases of the market cycle and it
usually works against his interest. The pattern is that clients become risk-taking after
stock/bond markets have risen, and they become risk-averse after stock/bond markets have
fallen, whereas it should actually be the other way round. The classic mistake investors
make is that “in bull markets, they become blind to the risk and in bear markets, they
become blind to the opportunities”.
 The client’s attitude towards risk is not consistent with their resource availability and
financial goals: Often, clients want to opt only for very conservative investments with low
rates of return, but their current resources and future money requirements are such that
such low yielding investments can never earn enough to bridge the gap.
Step 5: Ascertain the Client’s Tax Situation
Ultimately, what matters to a client is post-tax returns. Given that clients are in different tax
brackets and situations and given that some investments have tax advantages associated with them,

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a detailed analysis of a client’s taxpaying pattern is required to ensure that correct investments are
being recommended.
Step 6: Recommend the Appropriate Asset Allocation, and Specific Investments
The financial planner can now offer financial planning recommendations that address the client’s
goals, based on the information the client has provided. The planner should go over the
recommendations with the client to help him/her understand them, so that he/she can make
informed decisions. The planner should also listen to the client’s concerns and revise the
recommendations as appropriate.
Asset allocation is the critical decision, and the essence of what all financial planning comes down
to. The purpose of ascertaining the client’s goals, his resources, his risk tolerance and tax situation
is simply to recommend the most appropriate asset allocation and investment strategy for the client.
The financial planner must evaluate all the client’s existing assets (both fixed and financial) and
liabilities, and recommend in what asset classes and in what proportion the clients should distribute
their investments. After the asset allocation has been decided upon (for instance, 60% diversified
equity, 30 % income, 10% liquid), the financial planner should recommend the appropriate
investment options which conform to this asset allocation and whose risk-return profiles are
appropriate for the client.
Step 7: Executing the Plan and Making the Client Invest
After the asset allocation and specific investments have been decided upon, the client must then
execute the plan. Before executing the plan, the client and the planner should agree on how the
recommendations will be carried out. The planner must carry out the recommendations or serve as
the client’s “coach,” coordinating the whole process with the client and other professionals such
as lawyers or stockbrokers. If the plan alls for the client to liquidate some of his existing
investments, and if the financial advisor should help the client, the planner will help with the
process of liquidation.
If the plan requires a systematic investment program to be implemented, the client and the planner
should agree on who will monitor the client’s progress towards the client’s goals. If the planner in

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charge of the process, he should report to the client periodically to review the situation and adjust
the commendations as needed, as the client’s life changes.
Step 8: Reviewing Progress and Portfolio Rebalancing.
Once every 3 to 6 months, the financial planner should meet with the client to review the progress
and perform an active, ongoing evaluation of results. During these meetings, the planner should
evaluate whether the investment strategy needs to be refined, which could happen if:
 The client’s future needs or current resources have changed
 The investment climate and financial markets have experienced a climatic change
 The client’s personal situation has changed in a significant way, on account of a personal
or financial event.
Snapshot of Financial Planning Calculator devised by NJ India
NJ India Invest Pvt. Ltd., as part of its business strategy, has devised a unique Financial Planning
Calculator for its partners/advisors, which can help them make their customers realize the benefit
of Financial Planning. This calculator has proved its worth to the partners from time to time and
has got them business by selling Systematic Investment Plan (SIP’s) easily.
This Calculator has 4 Sheets which include the following:
 Advisor’s Detail
 Client’s Detail
 Financial Plan
 Financial Letter
ADVANTAGES OF USING FINANCIAL PLANNING CALCULATOR
 This tool helps to prepare financial plan very fast.
 This can make an investor loyal and thus beneficial to the investor as well as the financial
advisor in the long term.

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 The SIP amount can be increased and more of revenue for the advisor.
USES OF THE FINANCIAL PLANNING CALCULATOR
 The Indian investors have these prime goals in life:
 Child education
 Child marriage
 Retirement of the investor
 This tool is helpful to make the financial plan for the above goals. It also helps to find out
the investment amount needed for each goal as well as total amount for the fulfillment of
all goals.
 After adding all the necessary information, financial plan will be ready without manual
calculation. Letter is also generated.
This calculator also has a few limitations:
 It is devised keeping in mind only Mutual Funds as a liable Investment option, therefore
it only gives the Financial Plan in terms of the money which is required to be invested
(periodical or lump sum) in order to fulfill the long-term goals of an individual.
 It assumes the future rate of return the investment option is expected to provide.
 It assumes the Inflation rate of the time when the money is needed.
 It only considers Financial Planning for child’s higher education, marriage and self-
retirement.
 It also assumes the life expectancy of the individual for precise calculation.
NJ PORTFOLIO MANAGEMENT SERVICE
NJ has ventured in asset management business with NJ Advisory Services Pvt. Ltd., a group
company, launching its discretionary PMS products.
At the Heart of NJ Advisory Services is the idea to provide customers with solutions that give
them the freedom from active management of investment while having an assurance that we would
be doing so in the best possible manner. Our conviction, matched by our passion and expertise, is
all about ensuring the peace of mind of the investors. The PMS products currently offered are
aimed at meeting investor’s need for successful long term wealth creation by following strategies
that control risk and optimize returns in a mutual fund portfolio.

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NJ Advisory Services leverages upon with its rich experience in portfolio management with in-
depth knowledge & expertise in mutual funds. The decisions on mutual fund portfolio also
Combine results of time tested proprietary research models, extensive due- diligence of fund
houses, interactions with fund managers & internal risk controls. The defined Processes and
smart use of technology further ensures that the investors are offered with quality portfolio
management and administrative services, ensuring a complete peace of mind.
NJ INSURANCE BROKERS
NJ Insurance Brokers Pvt. Ltd., a licensed insurance broker by IRDA, seeks to provide customers
with comprehensive solutions catering to their insurance needs. At the heart of NJ Insurance is the
strong vision for continued financial well-being for customers - individuals and families,
regardless of any circumstances. The key is to offer 'right' advice which is unbiased and customer
centric and encompasses the right risk to insure, the right coverage, the right product and at the
right time. The idea to offer clients with comprehensive solutions extends further to cover quality
claim settlement and other services.
NJ GLOBAL WEALTH ADVISORY
NJ Global Invest (Ltd.) is a new venture wherein NJ seeks to offer a Global Wealth Advisory
platform to advisors for offshore funds across the globe.
NJ TECHNOLOGIES
NJ Technologies, is a latest venture by NJ wherein we aim to provide quality technology solutions
to businesses in a wide range of domains.
NJ started its journey in technology with the start of Fin logic Technologies (India) Pvt. Ltd., a
group company, in year 2000. The idea then was to develop software applications to support the
growing (financial services) distribution business and manage the IT infrastructure.
NJ GURUKUL
The NJ Gurukul is a venture aimed at providing valuable training & education support to the
young, emerging talent pool in India. Started in year 2007, NJ Gurukul today offers a very wide
range of training programs across India in all major cities.

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Competitors of NJ India Invest Pvt. Ltd.
The major competitors of NJ India Invest are:
 Banks
The major competitors of NJ India Invest are all the Banks be it public or private bank as they are
dealing in 42 different products from Mutual Funds to Fixed Deposits to Real Estate to Debentures
to Insurance.
 India Info line
The India Info line group, comprising the holding company, India Info line Limited and its
wholly-owned subsidiaries, straddle the entire financial services space with
offerings r a n g i n g f r o m E q u i t y r e s e a r c h , E q u i t i e s a n d d e r i v a t i v e s
t r a d i n g , C o m m o d i t i e s t r a d i n g Portfolio management services, Mutual
Funds, Life Insurance, Fixed deposits, Gov. Bonds and other small savings
instruments to loan products and investment banking. The company has a network
of 758 business locations (branches and sub-brokers) spread across 346 cities and
towns. It has more than 80,000 customers.
Other competitors are:
 Karvy
 Prudent
 SMC
 Bajaj Capital
 RR Broker

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Chapter-4
Project Methodology Adopted

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Chapter 4
Project Methodology Adopted
The methodology for the Project comprised of:
 Understanding the role of Financial Planning in creating wealth for Investors
 Understanding the mindset of the investors towards Financial Planning
 Design of Questionnaire to gather the relevant data from the investors to get a proper
understanding of the investors mindset
 Meetings with the Advisors and Financial Planners associated with NJ India Invest
 Analysis of the information gathered mainly by personally attaining the feedback from
investors
 Conclusions and Recommendations
The data has been collected from E WEALTH FORM FILLING SOFTWARE with UNIT
MANAGER Mr. Chetnya Sharma and other staff members; they provided me mainly the
PARTNERS AUM, EXCEPTION REPORT RELATED DATA FOR EVERY PARTNER, DATA
FOR CLIENT ANALYSIS
The other data about the company has been collected from the following websites-
NJINDIAINVESTPRIVATELTD.com,
NJ FUNDZ.COM,
NJWEALTH.COM

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Chapter-5
Data Analysis & Interpretation / Description of
The Work Performed

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Chapter 5
Data Analysis & Interpretation / Description of the Work Performed
This Analysis is done on the basis of the responses that I got from the investors –the willingness
to get Financial Planning done. It also throws light on what the investor’s usually demand from
the Advisor, and what all points they request the advisor’s to keep in mind before having a
Financial Plan prepared.
1. Interpretation :- Majority(83.7%) of respondents are male whereas only 16.3% of
respondents are females.

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2.
Interpretation – The most important factors that investor consider are return (67.5%)
Then risk (45%), tax saving (30%),past performance of company (25%) so the majorly investors
want a good return .
3.

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Interpretation :- From this responses I can conclude that youngsters are taking more
interest in mutual funds reason behind the lean interest of mutual funds by above 40
year people due to lack of awareness of mutual funds
4.
Interpretation:- Investors think that in share market financial planning requires the most as 36.6% in
share market , 24.4% in commodities ,14.6% in real estate etc.
5.

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Interpretation: As from the questionnaire responses there is a 41.5% people want to invest their
0-10% of their income , 34.1% people wanted to invest their money 10- 15% , 12.2% people want
to invest their income 20-25%.
6.
Interpretation: As 51.2% of the sample unit go for an investment option like shares, in the urge
to make excellent profits and rest 48.8% of the sample unit go for an investment option, like fixed
deposit, to earn a fixed return in the long run.
7.

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Interpretation: 35.7% investors think advisors or consultants are the best option for financial planning
rest 26.2% respondents thinks internet and other options are best option for financial planning
8.
Interpretation: 65% respondents think investment in mutual funds will be able to fulfil
their long term goals.
9.
Interpretation:- majorly the investor made their investment in banks then in mutual funds, after that in
insurance , and so on .

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10.
Interpretation :- From the finding we can conclude that investors think less awareness about financial
planners are the major cause to avoid financial planning on the other hand investors think that they do not
realize the importance of financial planning .

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Chapter-6
Findings

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Chapter 6
Findings
On the Basis of above research we can say that mutual fund industry is growing with a great speed
and investment in mutual fund provides a good return in long run i.e. beyond 5 years.
Today each and every person is fully aware of every kind of investment proposal. Everybody wants
to invest money, which entitled of low risk, high returns and easy redemption.
Though a mutual fund provides a good return but it also has risk involved in it.
Investor should have a good knowledge about working of mutual fund and market before
investment. In my opinion before investing in mutual funds, one should be fully aware of each and
everything. The study conducted shows that most of the investors are aware of various schemes of
mutual funds. Diversification of portfolio and tax benefit are the main factors of mutual fund that
allure the investors.
Mutual fund industry in India is still in its adolescent`s stage. It has wide opportunities to advance.
With the entry of private player & foreign player, the sector seems poised for growth. With the
interest rates falling & people now becoming unwilling to save in bank, mutual fund can be a better
option. But people do not invest their hard earned money into mutual funds. This is because of
unawareness about mutual funds & their benefits. This is the root cause of slow growth of mutual
funds industry.
The three reasons for the restricted growth of mutual funds industry in India are:
1. The mutual fund industry is working confined to the metros and larger cities of the country,
baring the large investment potential present in even small cities of the country.
2. The mutual fund products are seen to be reasonable complex to be understood by the common
middle class person.
3. Mutual funds are to be providing only the equity stocks. The investors are unaware of the fact
that they can also enrich the investor`s portfolio with debt scheme.

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Chapter-7
Recommendations

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Chapter 7
Recommendations
Financial planning will help people realize what balance to create between their expenditure and
saving. They will know how much to save in order to create wealth for themselves required in the
long-run. This will lead to a stable economy as huge investments will be made, which would
improve the liquidity in the economy and would therefore result in reduction in economic
imbalances as the one currently prevailing.
Certified Financial Planners (CFP’s) are very few in India, but they can play a very major role in
promoting the awareness of Financial Planning. Hence, if people start looking at it as a viable
career option, then it will help create better awareness among the Indian public.
Financial Planning is also helpful in saving people from facing unforeseen situations. If an investor
has not been able to create sufficient wealth for himself post-retirement, then even his spouse will
have to bear the consequences. In order to avoid such situations, it’s always better to get your
financial planning done before-hand.

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References

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References
Websites:
www.google.com
www.njfundz.com
WWW.NJINDIAINVESTPRIVATELTD.com,
NJWEALTH.COM
www.mutualfundsindia.com
www.moneycontrol.com

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Annexures

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ANNEXURE
‘’Awareness about Digitalization of E- Wealth Account ‘’
Q U E S T I O N N A I R E
Name:………………………................ Age:…………..
Gender:………….. Occupation:……………………
Q1. Have you ever made an investment?
o Yes
o No
Q2.which category of investors do you belong to?
o Young but unmarried
o Newly Married
o Married, with young children
o Married, with older children
o Post-retirement
Q3. In which financial option have you made an investment? (Give approximation in percentage)
o Share Market……………….
o Debentures………………….
o Bonds………………………..
o Mutual Funds……………….
o Banks………………............
o Post Office………………….
o Real Estate…………………
o Commodity…………………
o Insurance…………………..

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Q4. Have you ever taken any assistance in Financial Planning for yourself before making an
investment?
○ Yes
○ No
Q5. Which factors do you consider most important while getting their Financial Planning done?
o Tax-saving…………..
o Liquidity………………
o Risk…………………
o Return……………….
o Past performance of the option……………
o Brand Name……………..
o Advice of friend/family/advisor…………….
Q6. Which option would you like to go for?
o An investment option, like shares, in the urge to make excellent profits
o An investment option, like fixed deposit, to earn a fixed return in the long-run
Q7. Which investment option do you feel requires financial planning the most?
o Share Market
o Insurance
o Real Estate
o Mutual Funds
o Banks
o Debentures
o Bonds
o Commodities
o Post Office
Q8. . What percentage of your income does u normally invest?
o 0-10%
o 10-15%
o 15-20%

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o 20-25%
o >25%
Q9. Do you think your investment will be able to fulfill your long term goals?
o Yes
o No
Q10. Which is the best option for financial planning in your view?
o Advisor/Consultants
o News Paper
o Internet
o Reference
o Any Other
Q11. Do you think investors who have done Financial Planning have been able to create wealth
for themselves?
o Yes
o No
Q12. How much are you willing to shell out for the fees required for getting financial planning
done?
o 1000
o 2000
o 3000
o 5000
o 10,000
o >10,000
Q13. What return do you expect from your investments?
………………………………………………………………………………………..
Q14. What reason according to you causes investors to avoid financial planning?
o Less awareness about financial planners
o They do not realize the importance of financial planning
o They do not want to pay the fees to the financial planners for the money invested
o Any other…………………………………………………….

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Thanks for devoting your precious time.