Study about investors perception and investment pettern in mutual fund at idf...
vishal and bhavesh
1. A
Summer Project Report On
“Awareness about Mutual Fund among the Financial Advisors”
Undertaken At
BHAVNAGAR
S.K.PATEL INSTITUTE OF MANAGEMENT & COMPUTER SYUDIES
(MBA)
KADI SERVA VISHVAVIDHIYALAYA, GANDHINAGAR
YEAR 2015-2016
SUBMITTED TO: PREPARED BY:
1. Prof.Debaditya Mohanti 1. BhaveshKhambhadiya(39)
2. Prof.Parnika Jha 2. Vishal Mangukiya(46)
IN THE PARTIAL FULFILLMENT OF
MASTER OF BUSINESS ADMINISTRATION
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CERTIFICATE
This is to certify that Bhavesh Khambhadiya and Vishal Mangukiya Students of S.K Patel
Institute Of Management And Computer Study has worked on a summer project titled
“AWARENESS ABOUT MUTUAL FUND AMONG THE FINANCIAL ADVISORS OF
BHAVNAGAR.” at NJ India Invest Pvt. Ltd, Bhavnagar after Semester-II in partial
fulfillment of the requirement for the Two year full-time Post Graduate (2014-16). This is his
original work to the best of our knowledge.
Dr.Bhavin Pandya Prof.Debaditya Mohanti Prof.Parnika Jha
Director Faculty Guide Faculty Guide
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DECLARATION
We declare that the Summer Internship Project titled, “AWARENESS ABOUT MUTUAL
FUND AMONG THE FINANCIAL ADVISORS OF BHAVNAGAR.” is original to the best
of our knowledge and has not been published elsewhere. This is for the purpose of partial
fulfillment of Kadi Sarva VishwaVidhyalaya University requirements for the award of the title of
Master of Business Administration, only.
Student Name Signature
Bhavesh Khambhadiya
Vishal Mangukiya
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ACKNOWLEDGEMENT
The project work titled “AWARENESS ABOUT MUTUAL FUND AMONG THE
FINANCIAL ADVISORS OF BHAVNAGAR.” was successfully completed with the help and
guidance received from various quarters. We express our sincere thanks to all those concerned.
We are obliged to be a part of this college and thankful to the institute, S. K. PATEL
INSTITUTE OF MANAGEMENT & COMPUTER STUDIES for giving us this opportunity
to perform our summer internship project in NJ India Invest Private Limited and we take
immense pleasure in thanking for their kindness and showing faith on us.
We wish and express our heartily sense of gratitude to our faculty guide Prof.Debaditya
Mohanti & Prof.Parnika Jha who has guided and directed us for our research.
We are very much thankful to our industry guide Mr. Kaushal Trevedi, Branch Manager, NJ
India Invest Private Ltd. who guided us in completion of the project.
Last but not least, we express our heartfelt thanks and would like to acknowledge all the
respondents who provided us with their valuable time to fill up our questionnaire, co-operate
with us and help us complete valuable data for our project.
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EXECUTIVE SUMMARY
Mutual Fund works as a trust in India and company in other countries. Some people think
mutual fund is based on market and it’s risky to invest. It is true that mutual fund is based
on market but it is less risky in compare to market because mutual fund is not just a
single company but it is group of 45 different companies so the fund which we invest is
divided with 45 different companies so it is less risky in compare to a single company.
Here in India and specially in Gujarat people are less aware about the advantages and
benefits of Mutual Fund and its different schemes so it is difficult to start a Mutual Fund
advisory business in Bhavnagar our study are related with the benefits of mutual fund and
fund advisory business but there are one benefit to start mutual fund advisory business
because there are only 1 wealth advisor in compare to 40 insurance advisor so there is
less competition in the market.
The test of Indian people are changing day by day they consuming more to reach their
goal and that’s why Indian GDP is increase and mutual fund is the thing that gives return
on increasing GDP and increasing inflation level so it is beneficial to the investor.
In the side of wealth advisor here wealth advisor can sell the multiple products on a
single platform so the advisors not need to do more for a earning.
In the side of commission here an advisor can earn two types of commission 1. Upfront
commission 2.Trail commission. The meaning of both is as follows 1. Upfront
Commission: This is one time commission at the time of costumer invest advisor can
earn up to 1.5% of commission for the 1st year 2. Trail Commission: This is every time
earning commission the advisor can earn commission up to 0.7% of commission till the
customer invests. So earning opportunities is very high in mutual fund.
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Table of contents
Chapter Content Page No.
CERTIFICATE 2
DECLARATION 3
ACKNOWLEDGEMENT 4
EXECUTIVE SUMMARY 5
1 INTRODUCTION TO THE STUDY 8
2 RESEARCH METHODOLOGY
2.1) Research Problem
2.2) Research Objective
2.3) Research Design
2.4) Source of data
2.5) Sampling Method
2.6) Sample Size
2.7) Research Instrument
2.8) Data analysis tool
2.9) Limitation of the study
9
3 INDUSTRYPROFILE
3.1) Introduction
3.2) Introduction of Mutual Fund
3.3) History of Mutual Fund
3.4) Structure of Indian Mutual Fund
3.5) Plans That Mutual Fund Offers
3.6) Advantages of Mutual Funds
3.7) Disadvantages of Mutual Fund
12
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4 COMPANYPROFILE
4.1) About Company
4.2) NJ India Invest Focus
4.3) Products & Services
4.4) Mission And Vision
4.5) AMC with NJ India Invest
4.6) Competitors of NJ India Invest
4.7) Different Departments In The NJ India
4.8) Organization Structure of NJ India Invest
24
5 THEORITICAASPECTS OF THE STUDY
5.1) SWOT ANALYSIS
36
6 RESEARC FINDINGS& CONCLUSION
6.1) Data Analysis And Interpretation
6.2) Findings
6.3) Conclusion
38
7 SUGGESTIS /RECOMMENDATIONS 52
8 CONTRIBUTION& LEARNING FROM SIP 54
ANNEXURE 56
BIBLIOGRAPHY 59
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1. INTRODUCTION TO THE STUDY:
In today’s scenario there has been a major change in economic prosperity all over.
Higher income levels and booming stock markets have led to more and more numbers of high
net worth investors. This means the availability of huge investible surplus. The investors with
higher risk appetite want to experiment try new and exotic products in the name of
diversification. This has resulted in emergence of new options within the same or fresh asset
classes. There are more products available within each asset class be it Equity, Mutual Fund,
Gold, Real Estate.
An investor has many options for making his investments. However, all of them do not give
optimum returns at little or no risk. An investment in mutual fund is an investment that gives
results comparable to trading in shares, and the risk are reduced quit a lot. Almost all mutual
fund houses have started Systematic Investment plans (SIP) over a last couple of years. They
harp upon the minds of investors to invest in the SIPs to minimize the market risks.
During the training period and interaction with people it was found that awareness of Mutual
Fund among (Individual Financial Advisors) IFA‟s was there to a limited extent but there was
lot of misconceptions among them about mutual fund as we had meet few who had lost their
money in UTI scam and others though where aware of mutual fund where not suggesting this to
their clients as they thought it as to be too risky for their clients and those who were aware where
really aggressive to take the opportunity offered by mutual fund to earn a high return. On the
whole if we have to conclude our survey we would like to say that if we have to create awareness
about diversified portfolio, professional management and SEBI Regulations and benefits it offers
to IFA‟s and their clients and also we have to clear few perception which IFA‟s have, to tap the
huge potential which mutual fund market has to offer.
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Research methodology
2.1) Research Problem
Awareness about Mutual Fund among the IFA (Individual Financial Advisors) of Bhavnagar
2.2) Research Objective:
Primary Objective:
To study the awareness about Mutual Fund among IFA (Individual Financial Advisors)
of Bhavnagar city
Secondary Objective:
To study the awareness of revenue/commissions in mutual fund
To know whether Financial Advisors are interested in Mutual Fund or not.
To know whether Financial Advisors are aware about Mutual Fund Business.
To know Mutual Fund business can beat Life Insurance Business
To find how many are ready to convert as mutual fund advisor
2.3) Research Design:
Descriptive research design is a scientific method which involves observing and describing the
behavior of a subject without influencing it in any way.
Descriptive Research Design had used for the purpose of survey as it had enabled us to describe
the characteristics of a particular group of insurance agent and their tendency towards Mutual
Funds.
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2.4) Source of data
There are mainly two sources for collection of data is used that is primary as well as secondary
sources.
Primary Source Information
Obtaining data by Financial Advisors
Secondary Source Information
Internal: Companies internal information & Database
External: Books, Magazine, journals.
2.5) Sampling Method:
For this research Convenience sampling had used for data collection purpose.
2.6) Sample Size:
For this survey 100 Financial Advisors of Bhavnagar city to have better idea and representative
of the population being surveyed.
2.7) Research Instrument:
A detailed questionnaire had used for purpose of survey
2.8) Data analysis tool:
Microsoft Excel for the data analysis.
Tables and Charts for Graphical Representation.
2.9) Limitation of the study
Every research has its own limitation and present research work is no exception to this general
rule the inherent limitation of the study are as under.
Personal approach, which was followed in the present research work, is relatively more
time consuming. In addition to this is a very expensive method, especially when spread
geographically sample is taken
We have address of so many people but because of their personal work we can’t meet.
It is very time consuming process few agents refused to give answers
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3.1 INTRODUCTION:
Investment is referred to a concept of rendered consumption, which could be in the form of an
asset, rendering a loan, keeping the saved funds in a bank account such that it might generate
lucrative returns in the future etc. The options of investments are huge, all of them having
different risk-reward trade off.
This concludes that the investment industry in India is really broad and that is why
understanding the core concepts of investment and accordingly analyzing them is essential. Only
after thorough understanding of the investment industry, can an investor create and manage his
own investment portfolio such that returns are maximized with the minimum level of risk.
The Investment Options
In India the investor has wide variety of investment options available to him. Economic well being in
the long run depends significantly on how wisely he invests. Every investment options have two main
aspects i.e. risk and return. The investor has the choice of investment in capital markets of the country
and also in financial institution of the country like Banks and Insurance companies. The various tools
of investment available to investor are as follows -:
Equity Shares
Bank Deposits
Investment in Debt Market
Post Office Savings
Government Securities
Life Insurance
Real Estate
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3.2 INTRODUCTION OF MUTUAL FUND
A mutual fund is a pool of money that is invested in various securities and professionally
managed by an investment manager. The money thus collected is invested by the fund manager
in different types of securities depending upon the objectives of the scheme. These could range
from equity to debentures to money market instruments. The income earned through these
investments and the capital appreciation realized by the scheme is shared by its unit holder. Thus
a mutual fund is the most suitable investment for the common man as it offers an opportunity to
invest in a diversified.
Mutual fund is also called unit trust or open ended trust a company that invests the funds of its
clients in diversified securities and in turn represent those holding. They make continuous
offering of new shares at NAV (Net Asset Value) determined daily by the market values of the
securities they hold.
The flow chart below describes broadly the working of a Mutual Fund.
Source: www.indiamart.com
Mutual Fund is the pooling of Money from the retail investors to the corporate investor’s
for Sustainable growth of the investments ……
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The securities & exchange Board of India (mutual fund) Regulation, 1993 defines a mutual fund
as “a fund established in the form of a trust by a sponsor to raise money by the trustees through
the sale of units to the public, under one or more schemes, for investing in securities in
accordance with these regulations”.
3.3 HISTORY OF MUTUAL FUND – INDIA
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India from
the initiative of the government of India and Reserve Bank. The history of mutual fund in India
can be broadly classified into four phases
Phase 1: July 1964 – November 1987
The Unit Trust of India was the sole player in the industry. It was created by an Act of
Parliament in 1963; UTI launched its first product, the Unit Scheme 1964, which even today is
the single largest mutual fund scheme. UTI created a number of products such as monthly
income plan, children’s plan, equity oriented schemes and offshore funds during this period. UTI
managed assets of 6710 Cr RS.
Phase 2: 1987-1993 (Entry of Public Sector Funds)
In 1987 public sector banks and financial institutions entered the mutual fund industry. SBI
mutual fund was the first non – UTI fund to be set up in 1987. Significant shift of investors from
deposits to mutual fund industry happened during this period. Most funds were growth – oriented
closed- ended funds. By the end of this period, assets under UTI’s management grew to RS.
38,247 Cr and public sector funds managed Rs. 8750 Cr.
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Phase 3 - 1993-1996: Emergence of Private Funds
In 1993, mutual fund industry was open to private sector players, both Indian and foreign.
SEBIs first set of regulations for the industry were formulated in 1993, and substantially
revised in 1996. Significant innovations in servicing, product design and information
disclosure happened in this phase, mostly initiated by private sector players.
Phase 4 - 1996-99: Growth and SEBI Regulation
The implementations of the new SEBI regulations and the restructuring of the mutual fund
industry led to rapid assed growth. Bank mutual funds were re-cast according to the SEBI
recommendation structure, and UTI came under voluntary SEBI supervision.
Phase 5 - 1999 - 2004: Emergence of a large and uniform industry
This phase was marked by very rapid growth in industry, and significant increase in market
shares of private sector players. Assets crossed RS. 1,00,000 Cr. The tax break offered to
mutual funds in 1999 created arbitrage opportunities for a number of institutional players.
Bond funds and liquid funds registered the highest growth in this period, accounting for
nearly 60% of the assets. UTI’s share of the industry dropped 50%.
Phase 6 - from 2004 onwards: Consolidation and Growth
The industry has lately witnessed a spate of mergers and acquisitions, most recent ones being the
acquisition of schemes of Alliance Mutual Fund by Birla Sun Life, Sun F&C Mutual Fund by
Principal and PNB Mutual Fund by Principal. At the same time, more international players
continue to enter India, including Fidelity, one of the largest funds in the world. The stage is set
now for growth through consolidation and entry of new international and private sector players.
As at the end of March 2006, there were 29 funds
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3.4 STRUCTURE OF INDIAN MUTUALFUND
SEBI
SPONSORTRUSTEE
OPERATIONS
AMC
FUND
MANAGER
MKT. / SALES
MUTUAL FUND
MKT. / SALES
SCHEMES DISTRIBUTER
INVESTORS
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The Structure Consists:
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).
The Sponsor is the promoter of mutual fund, and appoints the Trustee. The Trustees are
responsible to the investors in the mutual funds, and appoint the AMC for managing the
investment portfolio. The AMC is the business face of the mutual funds, as it manages all the
affairs of mutual funds. The mutual funds and AMC have to be registered by the SEBI.
Sponsor:
Sponsor is the person who acting alone or in combination with another body corporate
establishes a mutual fund. Sponsor must contribute at least 40% of the net worth of the
Investment Managed and meet the eligibility criteria prescribed under the Securities and
Exchange Board of India (Mutual Funds) Regulations, 1996.The Sponsor is not responsible or
liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial
contribution made by it towards setting up of the Mutual Fund
Trust:
The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts
Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908.
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-alias
ensure that the AMC functions in the interest of investors and in accordance with the Securities
and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the Trust
Deed and the Offer Documents of the respective Schemes. At least 2/3rd directors of the Trustee
are independent directors who are not associated with the Sponsor in any manner.
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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 the Securities and Exchange Board of India (SEBI) to act as
an asset management company 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 10 Cr. at all times.
Registrar and Transfer Agent:
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.
Depository:
Indian capital markets are moving away from having physical certificates for securities, to
ownership of these securities in ‘dematerialized’ form with a Depository.
Unit Holders:
Unit Holders are those investing in Mutual Fund.
Custodian:
Custodian is the agency, which will have the legal possession of all the securities Purchased by
the Mutual Fund. Mutual funds run by the subsidiaries of the nationalized banks had their
respective sponsor banks as custodians like Canada bank, SBI, PNB, etc. Foreign banks with
higher degree of automation in handling the securities have assumed the role of custodians for
mutual funds. With the establishment of stock Holding Corporation of India the work of
custodian for mutual funds is now being handled by it for various mutual funds.
SEBI:
The Stock Exchange Board of India (SEBI) is regulatory authority of the Mutual Funds
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3.5 PLANS THAT MUTUAL FUND OFFERS:
Mutual funds in order to cater to a range of investors have various investment plans. Some of the
important investment plans include the following:
Growth Plan
Under the Growth Plan, the investor realizes only the capital appreciation on the investment (by
an increase in NAV) and does not get any income in the form of dividend.
Income Plan
Under the Income Plan, the investor realizes income in the form of dividend. However his NAV
will fall to the dividend.
Dividend Re-investment Plan
Here the dividend accrued on mutual funds is automatically re-invested in purchasing additional
units in open-ended funds. In most cases mutual funds offer the investor the investor an option of
collecting dividends or re-investing the same.
Systematic Investment Plan (SIP)
SIP is similar to a Recurring Deposit. Every month an amount the investor chooses, is invested in
a mutual fund scheme of his/her choice. Under this plan Investors invest a specific amount for a
continuous period, at regular intervals. By doing this the investor get the advantages of rupee
cost averaging. Which means that by investing the same amount at regular intervals, the average
cost per unit remains lower than average market price, irrespective of how the market is- arising,
falling or fluctuating with every fluctuation in the market the units are purchased systematically,
thus resulting in averaging the purchase price? This is the reason why a sip investor gets
phenomenal rate of return compared to a one time investor.
Systematic withdrawal plan
As opposed to the Systematic Investment Plan, the Systematic Withdrawal Plan allows the
investor the facility to withdraw pre-determined amount/units from his fund at pre-determined
interval. The investors units will be redeemed at the existing NAV as on that day.
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Retirement Pension plan
Some schemes are linked with retirement pension. Individuals participate in these plans for
themselves, and corporate for their employees.
Insurance Plan
Some schemes launched by UTI and LIC offer insurance cover to investors.
3.6 Advantages of Mutual Funds:
Mutual fund is emerging as favorite investment vehicle because of it has many advantages over
other forms and avenues of investing, particularly for the investor who has limited resources
available in terms of capital and ability to carry out detailed research and market monitoring. The
following are the major advantages offered by mutual fund to all investors.
1. Portfolio diversification:
Mutual funds normally invest in a well-diversified portfolio of securities. Each investor in a fund
is a part owner of all of the fund’s assets. This enables him to hold a diversified investment
portfolio even with a small amount of investment.
2. Professional management:
Even if an investor has a big amount of capital available to him, he benefits from the professional
management skill brought in by the fund in the management of the investor’s portfolio. The
investment management skills, along with the needed research into available investment options,
ensure a much better return than what an investor can manage on his own. Few investors have
the skills and resources of their own to succeed in today’s fast moving, global and sophisticated
markets.
3. Reduction of transaction cost:
What is true of risk is also true of transaction cost. A direct investor bears all the cost of
investing such as brokerage or custody of securities. When going through a fund he has the
benefit of economies of scale; the funds pay lesser costs because of larger volumes, a benefit
passed on to his investors.
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4. Reduction / Diversification of risk :
An investor in a mutual fund acquires a diversified portfolio; no matter how small is his
investment. Diversification reduces the risk of loss, as compared to investing directly in one or
two shares or debentures or other instruments. When an investor invests directly, all the risk of
potential loss is his own. While investing in the pool of funds with other investors, any loss on
one or two securities is also shared with other investors. This risk reduction is one of the most
important benefits of a collective investment vehicle like the mutual fund.
5. Liquidity :
Often investors hold shares or bonds they cannot directly, easily and quickly sell. Investment in a
mutual fund, on the other hand, is more liquid. An investor can liquidate the investment by
selling the units to the fund if it is open end fund, or by selling the units in the stock market if the
fund is a close end fund, since closed ends funds have to be listed on a stock exchange. In any
case, the investor in a closed end fund receives the sale proceeds at the end of a period specified
by the mutual fund or stock exchange.
6. Convenience and flexibility :
Mutual fund management companies offer many investor services that a direct market investor
cannot get. Within the same fund family, investors can easily transfer/ switch their holding from
one scheme to another. They can also invest or withdraw their money at regular in most open end
schemes. Mutual fund investment process has been made further more convenient with the
facility offered by funds for investors to buy or sell their units through the internet or email or
using other communication means. The investors also get updated market information from the
funds. The information about the schemes is also shared by the fund’s managers in a transparent
manner, with all material facts required by regulators to be disclosed to the investors.
7. Safety :
Mutual fund industry is well-regulated; all funds are registered with SEBI which lays down rules
to protect the investors. Thus, investors also benefit from the safety of regulated investment
environment.
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3.7 Disadvantages of Mutual Fund:
1. Management risk
When you invest in a mutual fund, you depend on the fund's manager to make the right
decisions regarding the fund's portfolio. Fluctuating Returns Unlike fixed-income product as
bonds and Treasury bills, mutual funds experience price fluctuations along with the stocks that
make up the fund.
2. No Guarantees
No investment is risk free. If the entire stock market declines in value, the value of
mutual fund shares will go down as well, no matter how balanced the portfolio. Fluctuating
Returns Unlike fixed-income products, such as bonds and Treasury bills, mutual funds
experience price fluctuations along with the stocks that make up the fund.
3. Fees and commissions
All funds charge administrative fees to cover their day-to-day expenses. Some funds also
charge sales commissions or “loads” to compensate brokers, financial consultants, or financial
planners. Even if you don't use a broker or other financial adviser, you will pay a sales
commission if you buy shares in a Load Fund.
4. Taxes
During a typical year, most actively managed mutual fund sell anywhere from 20 to 70 percent
of the securities in their portfolios. If your fund makes a profit on its sales, you will pay taxes on
the income you receive, even if you reinvest the money you made
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INTRODUCTION
4.1ABOUT COMPANY
NJ India Invest Pvt. Ltd.
The word “NJ” stands, N for Neeraj Choksi and J for Jignesh Desai the founder directors of NJ
India Invest. Seeing the growing scope of the financial service sector these two dynamic young
men, after completing their education, started their career with this sector. Both of them decided
to jump into the same field and came out with the dynamic concept of NJ Capital stock, which
is known as NJ India Invest now.
This business was started in the year 1994; it was the period when private companies were
entering the field of financial services. This was the time when NJ India Invest evolved as a
client focused need based investment advisory firm. NJ India Invest has achieved expertise in
need based investment of clients.
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At NJ India Invest we regard Mutual Fund as one of the best investment avenues available to
satisfy any kind of investment need. NJ India Invest has a very well trained men power to meet
the need of the clients and market. With very well qualified work force we have gained expertise
in analyzing Mutual Fund schemes and we even have achieved expertise in carrying out In-depth
study on various parameters of these different Mutual Fund schemes.
NJ India Invest is a company, which is evolved in this business from past twenty years as a client
focused need based investment advisory firm. It has developed its own IT industry known as
Fin logic India Pvt. Ltd. i.e. Technology to support clients as well as its employees in their daily
routine work. The company has its site named “www.NJIndia Invest.com” which provides a
valuable support to clients.
4.2 NJ INDIA INVEST FOCUS
At NJ the people are education centric, the relationship managers will help you in identifying and
understanding your needs and help you develop a portfolio across different asset classes
commensurate to your needs. This practice is only performed at NJ and this is what makes it
superior to other competition in this same field.
There are well-trained experts who give a feel on the various assets classes and explain you the
risk associated with each in a simple and lucid manner to put you at calm. Once the investment is
planned and done we don’t leave our client in between but we back them by periodic valuation
report and regular information through newsletters, mailer, e-mail, road shows etc.
The prime focus of the people at NJ is to help you attain peace of mind on the investment front.
4.3 PRODUCTS & SERVICES
Mutual fund
Asset management
Real estate
Insurance broking
Global wealth advisor
Information technology
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The above are the core investment in which we deal and where we have developed our
competency. But mutual funds are where the eyes of NJ are focused the most.
Service Provided To Valuable Clients and Agents:-
The weekly performance sheet (it covers performance of leading mutual fund schemes)
The monthly fund fact sheet (it covers comprehensive analysis of various mutual fund)
Various subscription services via E-mail
Sharing relevant information related to the Indian investment world.
Varied services through NJ funds network for partners.
Over all we also provide net-based services to our clients and agents. Our E-services are
provided by a comprehensive website “www.NJIndia Invest.com”. It covers detailed information
about the Mutual Fund industry; it passes various financial planner to satisfy investment goals
like retirement planning, child’s marriage planning etc. it also posses various analytical tools to
measure the performance of the Mutual Funds schemes like Return calculators, SIP return
calculators, and many others. There is a separate desk for the clients to get their portfolio
information on fingertips.
4.4 MISSION AND VISION:
Mission:
Ensure creation of value by providing a Differentiating edge to the activities of our customers,
investors and distributors Through Techno innovative solutions while fulfilling our social
obligations and maintaining High Professional and ethical Standards.”
Vision:
To be the leader in our sector of business through total Customer Satisfaction, Commitment
to Excellence, Determination to Succeed & Finally to provide peace of mind on investment
front to society.
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MANAGEMENT TEAMS:
Name Designation
Mr. Neeraj Choksi & Mr. Jignesh Desai Promoters of the NJ Group
Mr. Misbah Baxamusa National Sales Head
Mr. Jignesh Desai Product Head for Real Estate
Mr. Abhishek Dubey Head of Strategic Business Development
Unit
Col. C M Dixit Head of Administration Function
Mr. Dhaval Desai Head of Human Resources Function
Mr. Janak Patel Head of Audit Function
Mr. Janesh Bhatt IT projects and services
Mr. Mohammadali Saiyed Finance Function
Mr. RakeshTokarkar Head of Compliance Function
Mr. Samanvay Maniar Head of Marketing Function
Mr. Shirish Patel Head of Technology
Mr. Vinayak Rajput Head of Operations Function
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4.5 AMC’S WITH NJ INDIA INVEST:
1) Axis Asset Management Company Limited
2) Baroda Pioneer Asset Management Co. Ltd
3) Birla Sun Life Mutual Fund
4) BNP Paribas Asset Management(I) Pvt. Ltd
5) Boi Axa Investment Managers Private Limited
6) Canada Robeco Asset Management Company Ltd.
7) Deutsche Asset Management (India) Pvt. Ltd.
8) DSP Blackrock Investment Managers Ltd.
9) Edelweiss Asset Management Limited
10) Escorts Asset Management Limited
11) Franklin Templeton Asset Management (India) Pvt. Ltd.
12) Franklin Templeton Mutual Fund.
13) Goldman Sachs Asset Management (India) Private Limited
14) HDFC AMC Ltd.
15) HSBC Asset Management (India) Pvt. Ltd
16) ICICI Prudential Asset Management Company Ltd
17) IDBI Asset Management Services Ltd
18) IDFC Asset Management Co. Pvt. Ltd.
19) India Info line Asset Management Co. Ltd.
20) India bulls Asset Management Company Limited
21) ING Mutual Fund
22) J P Morgan Mutual Fund
23) JM Financial Asset Management Limited
24) Kotak Mahindra AMC Ltd.
25) L&T Investment Management Limited
26) LIC Nomura Mutual Fund Asset Management Co. Ltd
27) Mirae Asset Global Investments (India) Pvt. Ltd.
28) Morgan Stanley Investment Management Pvt. Ltd.
29) Motilal Oswal Asset Management Company Limited
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30) Peerless Fund Management Company Ltd.
31) Pine bridge Investment Asset Management Company Private Limited
32) Ppfas Asset Management Pvt. Ltd.
33) Pramerica Asset Manager Pvt. Ltd
34) Principal PNB AMC Pvt. Ltd.
35) Quantum Asset Management Company Private Limited
36) Reliance Capital Asset Management Ltd.
37) Religare Invest co Asset Management Company Private Limited
38) Sahara Asset Management Company Pvt. Ltd
39) SBI Funds Management Pvt. Ltd
40) Shriram Mutual Fund
41) Sundaram BNP Paribas AMC Ltd.
42) Tata Asset Management Ltd.
43) Taurus Asset Management Co. Ltd
44) Union KBC Asset Management Co Pvt. Ltd
45) UTI Asset Management Company Ltd.
4.6 COMPETITORSOF NJ INDIA INVEST:
Prudent
Karvy
Bajaj
ICICI Prudential
Birla Sun life
Anand Rathi
India Info line
Bonaza
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4.7 DIFFERENT DEPARTMENTS IN THE NJ INDIA:
1. Sales Department:
It is a Primary department in a NJ India Investment Pvt. Ltd. There is a different Product
available in the Company’s Product basket which is given below:
a. Mutual Fund
b. Real Estate
c. Insurance
d. TADA (Trading and Demat Account)
Each department has a Separate Product Head and under which different Managers are working.
All the employee of organization has sell the different products of NJ India through generating
Leads and Setting Appointment.
2. OperationDepartment:
It is a department which Support the activities of Sales Department to maintain the flow of
activities. There is a different type of activities performing in this department which is given
below:
a. Transaction
b. Registration
c. Customer Care
In this department also Manager or Head of the department is available to take strategic level
decisions. The entire employee in the Operation department works on Procedures of different
application, Cancellation of different forms, Value Pack Procedure, etc.
3. IT Department:
It is a department which provides technological support to the NJ India Investment Pvt. Ltd. The
company named Fin logic Pvt. Ltd. is Provide different technological Platform to the NJ India
Investment Pvt. Ltd. There are 500 employees working in the head office.
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Activities carried out by IT department:
Partner Desk
Client Desk
TADA
Development & Maintenance of all IT Software and Program
Customer Web Pages
4. Human Resource Department:
It is a department that is crucial for any department for managing manpower. NJ has a very
fluent department that continuously works on managing manpower and provides necessary
facilities to the employees.
Activities carried out by HR department:
Recruitment
Post-Recruitment
Legal/Compliance
NJ Gurukul (Training & Education related to AMFI)
5. Audit Department:
There is a separate department for Audit at Head office of NJ. The main work for audit
department is checking the performance of account department. Audit department is
continuously worked on analysis of different statements of a Company.
6. Brokerage Department:
There is an also brokerage department available at Head Office which represents all
entries related to Upfront and Trail brokerage.
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7. Account Department:
There is also separate department for Accounts and Finance at Head office of NJ. The
statements prepared by company are Profit & Loss Account, Balance Sheet, Cash Flow
Statement and Fund Flow Statement.
Company also maintains day to day expenses like:
Stationary
Conveyance of employee
Tea and Coffee for Employee
Sundry Expenses
Light Bills
BOP Expenses
8. Marketing Department:
This is a department which every company has to establish for market them and creating brand in
a market. NJ has also separate department called Marketing.
Activities performed by Marketing Department are given below:
Holding
Flyer
SMS
Canopy
Mobile Communication Services
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9. Research Department:
It is a department which is fulfills an analytical and research part of a Department. Activities
performed by department are following:
Data Analysis
Performance Watch
Daily Reports
Declare Fund Stack every month related to stock market
10. Administration Department:
It is a department which supports basic and primary necessities of employees. The different
activities performed by department are following:
Security
Fire Safety
Camp
Fulfill Requirements of AC, Inverters, Printers.
Store Room
11. Compliance Department:
It is a department that handled principles and rules of different Government bodies. The
different activities performed by department are following:
Legal Documentation
Power of authority for NJ in PMS
Power of authority for NJ in MARS
Regulations of different department
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12. Customer Care Department:
It is a department that provides better solutions to the problem and query of clients.
13. NJ Gurukul:
It is a separate department which provides Training & Education related to AMFI, CFP,
IRDA related training.
4.8 ORGANIZATION STRUCTURE OF NJ INDIA INVEST
Managing Director
(Mr.Neeraj Choksi , Mr.Jignesh
Desai)
NationalHead
(Mr. Misbah Baxamusa)
Zonal Manager
(Mr.Sarfaraz Patel)
RegionalManager
(Mr. Apurva Shah)
Branch Manager
(Mr.Kaushal Trivedi )
Unit Manager
(Mr.Darshit Joshi )
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CH-5
THEORITICAL
ASPECTS OF THE
STUDY
37. 37 | P a g e
SWOT ANALYSIS
STRENGHTHS
NJ India Invest is a dominant player in the Indian Mutual Funds distribution business
with over a decade of experience.
NJ can also provide personal websites to its clients.
NJ India Invest has Assets under Management (AUM) more than 25000 Cr.
NJ India Invest has tie up with all 45 AMC
NJ India Invest provides best services in the industry using cutting age of technology.
WEAKNESES
NJ India Invest is dominant player in Mutual Fund industry but not in entire financial
product range like Insurance etc.
There are some complaints from customer’s side regarding irregular dispatchment of
commission.
NJ India Invest, in some cases, can’t convince their clients about the helpfulness of the
services provided by the company.
OPPORTUNITY
NJ India Invest has great opportunities in front of it as the Mutual fund has not penetrated
in the Indian financial market.
NJ India Invest can utilize the dominant position it has and optimally use the huge
network of its partners.
NJ India Invest can use its network of partners in selling Insurance; even company can
jump in to share trading business
THREATS
NJ India Invest is facing competition from the new entrant like Anagram Security,
Karvey Security and many new and local players. Company also faces competition from IFA
(independent financial advisor) who are doing direct business in the AMC.
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CH-6
RESEARCH
FINDINGS
&
CONCLUSION
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6.1 DATA ANALYSIS AND INTERPRETATION
1. How many years of experience do you have in Financial Advisory business?
Interpretation:
In the above Chart we can see that 77 of the respondents are having experience of more than 5
years, 23 of the total respondents are having experience of less than 5 year, 12 of the total
respondents are having experience of more than 15 to 20 years and 3 are having 25 to 30 year
experience as an financial advisor from total 100 respondent
Years of Experience No of Financial Advisor
1 – 5 23
6 – 10 39
10 – 15 26
15 – 20 8
20 – 25 1
25 – 30 2
30 – 35 1
Total 100
23%
39%
26%
8%
1%2%1%
No of Financial Advisor
0-5
5.-10
10.-15
15 - 20
20 - 25
25 - 30
30 - 35
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2. Which investment product do you sell?
Product No of Financial Advisor
Life insurance 97
General insurance 14
Health insurance 19
Stock Broking 8
Postal Saving 9
Mutual Funds 4
Interpretation:
From above column chart we can say that 4 respondent are doing business of mutual fund while
remaining 96 are not doing mutual fund business from total of 100 respondent.Financial advisors
are more number in life insurance.
97
14
19
8 9
4
Life
insurance
General
insurance
Health
insurance
Stock
Broking
Postal
Saving
Mutual
Funds
0
20
40
60
80
100
120
No of Financial Advisor
41. 41 | P a g e
3. How many clients do you cater to?
No of Client No of Financial Advisor
00-1000 81
1000-2000 10
2000-3000 4
3000-4000 2
4000-5000 3
TOTAL 100
Interpretation:
From the Above chart 81 Financial advisor have below 1000 client base and 10% advisor have
between 1000 and 2000 client base out of 100 respondent More than 3000 client base only 5
financial advisor.
81%
10%
4%
2% 3%
Client Base
00-1000
1000-2000
2000-3000
3000-4000
4000-5000
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4. Are you aware about Mutual Fund product?
Interpretation:
From the total 100 respondent 28% are Aware about mutual fund product and remaining 72%
are don’t know about mutual fund.
28%
72%
Aware about Mutual Fund
YES
NO
YES 28
NO 72
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5. Do you know debt Mutual Fund can give better fixed returns on saving account
money or Bank fixed deposit?
Interpretation:
From the total 100 respondent 15 % are know that debt mutual fund give better return rather
than bank FD or saving account money and remaining.
15%
85%
Better fixed return
YES
NO
YES 15
NO 85
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6. Do you know how much annualized compounded return equity Mutual Fund
schemes have given on an average in last 15 years?
YES 8
NO 92
Interpretation:
From the total 100 respondent 8% are aware about annualized compounded return equity Mutual
Fund scheme give last 15 year and remaining 92% don’t know.
8%
92%
Rate Of Return
YES
NO
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7. Do you know if anybody who had invested Rs.1 Lakh before 15 years in equity
Mutual Fund what would be his current value?
YES 8
NO 92
Interpretation:
Out of total 100 respondent 8 are know the current value of investment Rs.1 Lakh before 15
years in equity Mutual and remaining 92% don’t know.
8%
92%
Rate Of Return
YES
NO
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8. Are you aware about commission structure of Mutual Fund Schemes?
YES 12
NO 88
Interpretation:
From the total 100 respondent in 12 aware about commission structure of Mutual Fund Schemes
remaining 88 doesn’t know.
12%
88%
Revenue Structure
YES NO
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9. Would you like to attend business opportunity seminar of NJ to know more about
Mutual Fund business?
YES 49
NO 51
Interpretation:
From the total 100 respondent in 49 respondent like to attend business opportunity seminar of NJ
and 51 respondents are saying no.
49%51%
BOP seminar
YES
NO
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10. If, No then why you do not wish to sell Mutual fund to your existing clients?
Interpretation: Form of the above chart in we can see the 14% respondent said that the value
pack is costly,20% respondent having doubt in clearing exam,13% respondent have no time,3%
respondent not having knowledge about mutual fund.
Reason No of Financial Advisor
It is risky. 34
Value pack is costly. 14
Doubt in clearing exam. 20
Do not find much time. 13
Revenue is not lucrative. 2
Not having enough knowledge about Mutual Funds. 3
Other reason pls. Specify. 5
34
14
20
13
2 3 5
0
5
10
15
20
25
30
35
40
No of Financial Advisor
No of Financial Advisor
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11. Are you aware about NJ Fundz Network?
Interpretation:
From the total 100 respondent in 15% respondent aware about NJ Fundz and 85% respondent
don’t know what NJ network is.
15%
85%
Aware of NJ Fundz
YES NO
YES 15
NO 85
50. 50 | P a g e
6.2 FINDINGS
Most of the respondent have more than 5 year of experience as an financial advisors.
Majority of the financial advisors are selling insurance to their Friends and relative
members.
Male financial advisors are more interested in Mutual Fund Business rather than Female
financial advisors.
Most of financial advisors have 0 to 1000 client base.
37 % financial advisors are believe that mutual fund is risky product
Only 8 % financial advisors are aware about return of mutual fund.
Only 12 % financial advisors are aware about commission of mutual fund.
Many financial advisors are connected with insurance sector
There is lack of interest in Young financial advisors to become an mutual fund advisors
51. 51 | P a g e
6.3 CONCLUSION
The Company has good reputation in the market; however, it requires some efforts to increase
the level of awareness in the market. If company gives the continuous advertisement about the
benefits and advantages of mutual fund in local TV channel and newspapers then it can be a
popular tool for the customer and if the customer are aware about the mutual fund and they
demand for it the general advisor have no choice other than that.
Due to lack of awareness about Mutual Funds they are not investing in it. Hence, it is necessary
to educate them by arranging some educational seminar to show them how to invest in Mutual
Funds? What is the liquidity? What is the risk covered in Mutual Funds?
Many of the people don’t know the different schemes available at market for investing their
money into the different Mutual Funds.
Approximately all types of funds give desired return if investment is done with a long term
commitment.
People have suffered a lot from past bitter experience, so NJ tries to remove these from the mind
of people and advisors.
Overall We can say that there is a large potential market for Company. Only what the
Company is required to do is to build trust & confidence of customer.
Lastly, we can say that NJ INDIA INVEST has bright future for the coming years and we hope
this project report will help them to knowing various perceptions regarding various customers
and fulfill their demand.
52. 52 | P a g e
CH-7
SUGGESTIONS /
RECOMMENDATIONS
53. 53 | P a g e
Recommendations
In Bhavnagar branch some of the partners are not satisfied with the service provided by
the NJ India Invest. So it should provide their best service to the NJ partner for growth of
the business.
MFs cannot simply attract savings by mere small investors who have become very
discerning in selecting mutual funds.
NJ India Invest. Should give safety attributes because insurance agents are more
concerned about safety of the investment of their client.
Find new Young financial advisors in this segment because they easy to accept new
technology and change.
55. 55 | P a g e
Learning From SIP
Working on the project at NJ INDIA INVEST PVT LTD, Bhavnagar has benefited us as
follows
APPLICATION OF THEORY ASPECTS:-
After completing our second semester of M.B.A. having gain basic knowledge in the field of
research, this is a great opportunity for us to apply the learning of the two semesters. Up to till
now whatever we have learnt at the institute has come really versatile. Further came to learn new
dimensions in these fields while working on the project with our guide.
EXPERIENCE OF PRACTICAL WORKINGS:-
There is a wide gap between the theoretical world and practical life and after 45 days of working
at the project, We have really come to understand the difference Further we have really
sharpened our skill to think practically & judge what can be the practical problem faced by
various institution of finance. Also came to know that how various types of daily works are
conducted. So we got such a great experience which we never felt earlier.
CORPORATE EXPERIENCE:-
During this time period of 45 days, we have got sample work exposure to co-operate work
environment. Moreover this has enhanced our confidence to handle situation in co-operative
work environment. Also came to know that how various decision are taken out & how various
activities are conducted for marketing point of views.
IMPROVING OUR COMMUNICATION SKILLS:-
We meet customers and spend around 5-10 minutes with them & it is a great experience to talk
& interact with them because of their knowledge sharing on the subject. While some are willing
to give the required information. This process has really given a chance to improve our oral
communication skills.
56. 56 | P a g e
Annexure
Questionnaire
We have prepared this questionnaire for the project work on “Awareness about Mutual Fund
among the Financial Advisors of Bhavnagar.”It is meant for educational purpose only. our
ensure you to maintain highest degree of confidentiality
1. How many years of experience do you have in Financial Advisory business?
_____________
2. Which investment product do you sell?
o Life insurance __________________________ (PI. Specify company)
o General insurance ____________________________ (PI. Specify company)
o Health insurance (Mediclaim) ____________________ (PI. Specify company)
o Stock Broking
o Postal Saving
o Mutual Funds
3. How many clients do you cater to? ___________
4. Are you aware about Mutual Fund product?
[ ] Yes [ ] No
5. Do you know debt Mutual Fund can give better fixed returns on saving account
money or Bank fixed deposit?
[ ] Yes [ ] No
57. 57 | P a g e
6. Do you know how much annualized compounded return equity Mutual Fund schemes
have given on an average in last 15 years? If yes pl. share.
[ ] Yes _____________%
[ ] No
7. Do you know if anybody who had invested Rs. 1lakh before 15 years in equity
Mutual Fund what would be his current value? If yes pl. share.
[ ] Yes Rs. _____________
[ ] No
8. Are you aware about commission structure of Mutual Fund Schemes?
[ ] Yes [ ] No
9. Would you like to attend business opportunity seminar of NJ to know more about
Mutual Fund business?
[ ] Yes [ ] No
10. If No then why you do not wish to sell Mutual fund to your existing clients?
o It is risky
o Value pack is costly
o Doubt in clearing exam
o Do not find much time
o Revenue is not lucrative
o Not having enough knowledge about Mutual Funds
o (Other reason pls.
Specify)_________________________________________________
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11. Are you aware about NJ Fundz Network?
[ ] Yes [ ] No
PERSONAL DETAILS
Name: _________________________________________________Cell No: _______________
Email ID: ______________________________________________
Address: _____________________________________________________________________
_____________________________________________________________________
REFERENCES
Name Cell No. Business
Thank you
59. 59 | P a g e
BIBLIOGRAPHY
BOOKS
D.C.Anjaria, AMFI Mutual Fund Testing Program for Distributors and employees of
Mutual Fund in India, Third Edition, May 2006.
Donald R. Cooper and Pamela S. Schindler, Business Research Methods, 8th Edition, Tata
McGraw-Hill Publishing Co. Ltd.
AMFI Test Work Book
Monthly Magazines like
Performance Watch, (May 2015)
Fundz Watch of NJ(May 2015)
Websites:
www.mutualfundindia.com
www.amfiindia.com
www.sebi.com
www.NJfundz.com
http://www.NJgroup.in/index.php
