NJ india summer training report
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About This Presentation
detailed update
Slide Content
1
Table of Content
S.
No.
Topic Page No.
I Certificate from institute
II Certificate from company
III Acknowledgement 3
IV Preface 4
V Declaration 5
VI Executive Summary 6
1 Objective of the study 8
2 Industry Overview 10
3 Company Overview 42
4 About the topic 74
5 Research Methodology 79
6 Data Analysis & Interpretation 84
7 Findings 99
8 Conclusions 102
9 Recommendations 106
10 Limitations of the project 109
11 Bibliography 111
12 Appendix/Annexure 113
Table of Content
S.
No.
Topic Page No.
I Certificate from institute
II Certificate from company
III Acknowledgement 3
IV Preface 4
V Declaration 5
VI Executive Summary 6
1 Objective of the study 8
2 Industry Overview 10
3 Company Overview 42
4 About the topic 74
5 Research Methodology 79
6 Data Analysis & Interpretation 84
7 Findings 99
8 Conclusions 102
9 Recommendations 106
10 Limitations of the project 109
11 Bibliography 111
12 Appendix/Annexure 113
2
Chapter 1 : Objectives of the study
Chapter 2 : Industry Overview
Chapter 3 : Company Overview
(History, founder, vision, mission, competitors, organization structure,
product, milestones, achievements etc)
Chapter 4 : About the topic
Chapter 5 : Research Methodology
i. Research Objectives
ii. Research Design
iii. Data type
iv. Data collection tools
v. Sampling Plan:
a. Target population
b. Sampling frame
c. Sample unit
d. Sampling technique
e. Sample Size
vi. Data analysis techniques to be used
vii. Sampling area
viii. Time frame
Chapter 6 : Data Analysis & Interpretation
Chapter 7 : Findings
Chapter 8 : Conclusion
Chapter 9 : Recommendations / Suggestions
Chapter 10 : Limitations
Chapter 11 : Bibliography
Chapter 12 : Annexure / Appendix
Chapter 1 : Objectives of the study
Chapter 2 : Industry Overview
Chapter 3 : Company Overview
(History, founder, vision, mission, competitors, organization structure,
product, milestones, achievements etc)
Chapter 4 : About the topic
Chapter 5 : Research Methodology
i. Research Objectives
ii. Research Design
iii. Data type
iv. Data collection tools
v. Sampling Plan:
a. Target population
b. Sampling frame
c. Sample unit
d. Sampling technique
e. Sample Size
vi. Data analysis techniques to be used
vii. Sampling area
viii. Time frame
Chapter 6 : Data Analysis & Interpretation
Chapter 7 : Findings
Chapter 8 : Conclusion
Chapter 9 : Recommendations / Suggestions
Chapter 10 : Limitations
Chapter 11 : Bibliography
Chapter 12 : Annexure / Appendix
3
ACKNOWLEDGEMENT
I am really happy and excited in representing this summer training project
report before you. I must express my gratitude towards N. J. India Invest
Pvt. Ltd. for giving mean opportunity to work on this report.
I am highly indebted to MR. Mohit Yadav, N. J. India Invest Pvt. Ltd.
Kanpur, my company project guide, who has provide me with the necessary
information and his valuable suggestion and comments on bringing out this
report in the best possible way.
I am grateful to Mr. Tribhuwan Nath Dubey ( Branch Manager, N. J.
Fund Network, Knapur) and Mr. Mohit Yadav( Unit Manager, N. J. Fund
Network, Kanpur) and all of the members of Mall Road branch, who have
helped me in a successful competition of this project, special mention of Mr.
Prakash Kundnani and other faculty member of UIM Mr. Vikash
Mehrotra (HOD), they have also provided me a valuable suggestions and
excellence guidance about this training, which proved very helpful to me a
utilize my theoretical knowledge in practical field. I have to words to
express my gratitude towards.
PRAVEEN KUMAR SINGH
Roll No. 1501170091
ACKNOWLEDGEMENT
I am really happy and excited in representing this summer training project
report before you. I must express my gratitude towards N. J. India Invest
Pvt. Ltd. for giving mean opportunity to work on this report.
I am highly indebted to MR. Mohit Yadav, N. J. India Invest Pvt. Ltd.
Kanpur, my company project guide, who has provide me with the necessary
information and his valuable suggestion and comments on bringing out this
report in the best possible way.
I am grateful to Mr. Tribhuwan Nath Dubey ( Branch Manager, N. J.
Fund Network, Knapur) and Mr. Mohit Yadav( Unit Manager, N. J. Fund
Network, Kanpur) and all of the members of Mall Road branch, who have
helped me in a successful competition of this project, special mention of Mr.
Prakash Kundnani and other faculty member of UIM Mr. Vikash
Mehrotra (HOD), they have also provided me a valuable suggestions and
excellence guidance about this training, which proved very helpful to me a
utilize my theoretical knowledge in practical field. I have to words to
express my gratitude towards.
PRAVEEN KUMAR SINGH
Roll No. 1501170091
4
PREFACE
The summer training of a management studies play an important role in
development his as well groomed professional. It allows a student to give
theoretical concepts a practical in the field of application. If gives the
candidate an idea of dynamic & versatile professional words as well as
exposure to intricacies & complexities of corporate world. Doing the
summer training at N. J. INDIA INVEST was great experience. An opening
experience to the concept of market department helped me in understanding
the concepts that are applied by the organization since it is inception has
progressed a lot & its walking guidance of success. As the organization is
marching with the speeds towards the horizon. This division is holding with
a greater speed to keep the pace with the major players in the market.
During the MBA course we are taught dozen of subjects which if not applied
properly are a simple waste of time. Implementing & in learning of concept
of marketing in the market provider an opportunity to practically. I got a
chance to apply our theory & acceptance myself with the functioning of
marketing in a period of 8 weeks exposure to the corporate environment. I
got a learning of basics of marketing. Real learning places its worth only
when it gives sweet fruits in future. Summer training is one way to learning
at work. I enjoyed the interesting experience & every part of it.
PREFACE
The summer training of a management studies play an important role in
development his as well groomed professional. It allows a student to give
theoretical concepts a practical in the field of application. If gives the
candidate an idea of dynamic & versatile professional words as well as
exposure to intricacies & complexities of corporate world. Doing the
summer training at N. J. INDIA INVEST was great experience. An opening
experience to the concept of market department helped me in understanding
the concepts that are applied by the organization since it is inception has
progressed a lot & its walking guidance of success. As the organization is
marching with the speeds towards the horizon. This division is holding with
a greater speed to keep the pace with the major players in the market.
During the MBA course we are taught dozen of subjects which if not applied
properly are a simple waste of time. Implementing & in learning of concept
of marketing in the market provider an opportunity to practically. I got a
chance to apply our theory & acceptance myself with the functioning of
marketing in a period of 8 weeks exposure to the corporate environment. I
got a learning of basics of marketing. Real learning places its worth only
when it gives sweet fruits in future. Summer training is one way to learning
at work. I enjoyed the interesting experience & every part of it.
5
DECLARATION
I Praveen Kumar Singh, student of United institute of Management
Naini, Allahabad MBA-III semester, studying in, here by declare the Project
report on a study of Mutual Fund and Awareness of Mutual Fund Among
Financial Advisors submitted in fulfillment of degree of Master of Business
Administrative is the original work conducted by me. The information and
data given in the report is authentic to the best of my knowledge.
This project report is not being submitted to any other University for award
of any other degree, diploma and fellowship.
Praveen Kumar Singh
Roll No. 1501170091
DECLARATION
I Praveen Kumar Singh, student of United institute of Management
Naini, Allahabad MBA-III semester, studying in, here by declare the Project
report on a study of Mutual Fund and Awareness of Mutual Fund Among
Financial Advisors submitted in fulfillment of degree of Master of Business
Administrative is the original work conducted by me. The information and
data given in the report is authentic to the best of my knowledge.
This project report is not being submitted to any other University for award
of any other degree, diploma and fellowship.
Praveen Kumar Singh
Roll No. 1501170091
6
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 Kanpur 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.
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 Kanpur 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.
7
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 0.5% of commission till the customer invests. So
earning opportunities is very high in mutual fund.
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 0.5% of commission till the customer invests. So
earning opportunities is very high in mutual fund.
8
CHAPTER-1
Objectives of the study
CHAPTER-1
Objectives of the study
9
RESEARCH OBJECTIVE
Any activity done without an objective in a mind cannot run fruitful. An
objective provides a specific direction to an activity. Objectives may range
from very general to very specific, but they should be clear enough to point
out with reasonable accuracy what researcher wants to achieve through the
study and how it will be helpful to the decision maker in solving the
problem.
Primary Objective:
• To study the awareness about Mutual Fund among IFA (Individual
Financial Advisors) of Kanpur 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
RESEARCH OBJECTIVE
Any activity done without an objective in a mind cannot run fruitful. An
objective provides a specific direction to an activity. Objectives may range
from very general to very specific, but they should be clear enough to point
out with reasonable accuracy what researcher wants to achieve through the
study and how it will be helpful to the decision maker in solving the
problem.
Primary Objective:
• To study the awareness about Mutual Fund among IFA (Individual
Financial Advisors) of Kanpur 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
10
CHAPTER-2
Industry Overview
CHAPTER-2
Industry Overview
11
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 -:
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 -:
12
• Equity Shares
• Bank Deposits
• Investment in Debt Market
• Post Office Savings
• Government Securities
• Life Insurance
• Real Estate
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.
• Equity Shares
• Bank Deposits
• Investment in Debt Market
• Post Office Savings
• Government Securities
• Life Insurance
• Real Estate
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.
13
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 ……
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”.
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 ……
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”.
14
Concept of Mutual fund:-
• Many investors with common financial objectives pool their money
• Investors, on a proportionate basis, get mutual fund units for the sum
contributed to the pool
• The money collected from investors is invested into shares, debentures
and other securities by the fund manager
• The fund manager realizes gains or losses, and collects dividend or interest
income
• Any capital gains or losses from such investments are passed on the
investors in proportion of the number of units held by them
When an investor subscribes for the units of a mutual fund, he becomes part
owners of the assets of the fund in the same proportion as his contribution
amount put up with the corpus (the total amount of the fund). Mutual fund
investor is also known as mutual fund shareholder of units holders.
For Example:
1- If the market value of the assets of a fund is Rs. 100,000. The total
number of units issued to the investors is equal to 10,000.
Concept of Mutual fund:-
• Many investors with common financial objectives pool their money
• Investors, on a proportionate basis, get mutual fund units for the sum
contributed to the pool
• The money collected from investors is invested into shares, debentures
and other securities by the fund manager
• The fund manager realizes gains or losses, and collects dividend or interest
income
• Any capital gains or losses from such investments are passed on the
investors in proportion of the number of units held by them
When an investor subscribes for the units of a mutual fund, he becomes part
owners of the assets of the fund in the same proportion as his contribution
amount put up with the corpus (the total amount of the fund). Mutual fund
investor is also known as mutual fund shareholder of units holders.
For Example:
1- If the market value of the assets of a fund is Rs. 100,000. The total
number of units issued to the investors is equal to 10,000.
15
Ans- Then the NAV of this scheme= (A)/(B),i.e. 100,000/10,000 or 10.00
Now if An Investors 'X' owns 5 units of this schemes. Then his total
Contribution to the fund is Rs.50 (i, e, Numbers of the units held
multiplied by the NAV of the Scheme)
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.
Ans- Then the NAV of this scheme= (A)/(B),i.e. 100,000/10,000 or 10.00
Now if An Investors 'X' owns 5 units of this schemes. Then his total
Contribution to the fund is Rs.50 (i, e, Numbers of the units held
multiplied by the NAV of the Scheme)
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.
16
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.
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 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.
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.
17
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
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
18
STRUCTURE OF INDIAN MUTUAL FUND
Mutual Fund Structure:
Unit Holders
Sponsors
The Mutual
Fund
Transfer
Agent
Custodian
SEBI
Trustees AMC
STRUCTURE OF INDIAN MUTUAL FUND
Mutual Fund Structure:
Unit Holders
Sponsors
The Mutual
Fund
Transfer
Agent
Custodian
SEBI
Trustees AMC
19
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.
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.
20
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.
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.
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.
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.
21
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
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
22
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,
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,
23
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.
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.
Significance Of Various Types Of Funds
In this section, we have developed an understanding of various mutual fund
classifications and types. It must be appreciated that no specific class or type
is universally accepted as the best option. Each type of funds comes with its
pros and cons and a unique risk-return relationship. It is up to the investor to
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.
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.
Significance Of Various Types Of Funds
In this section, we have developed an understanding of various mutual fund
classifications and types. It must be appreciated that no specific class or type
is universally accepted as the best option. Each type of funds comes with its
pros and cons and a unique risk-return relationship. It is up to the investor to
24
decide the type that best suits his requirements and matches his objectives
Advantages of Mutual Funds:
Affordability Diversification
Regulations
Variety
Tax Benefits
Professional
Management
decide the type that best suits his requirements and matches his objectives
Advantages of Mutual Funds:
Affordability Diversification
Regulations
Variety
Tax Benefits
Professional
Management
25
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.
• 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.
• 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.
• 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
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.
• 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.
• 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.
• 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
26
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.
• 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.
• 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.
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.
• 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.
• 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.
27
• 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.
• 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.
Transparency:-
Funds provide investors with updates information pertaining to the markets
and the schemes. All material facts aree disclosed to investors as requires by
the regulator.
• 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.
• 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.
Transparency:-
Funds provide investors with updates information pertaining to the markets
and the schemes. All material facts aree disclosed to investors as requires by
the regulator.
28
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.
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.
29
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 mad.
5. Delay in redemption-
The redemption of the funds though has liquidity in 24-hours to 3
days takes formal application as well as needs time for redemption. this
becomes cumbersome for the investors.
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 mad.
5. Delay in redemption-
The redemption of the funds though has liquidity in 24-hours to 3
days takes formal application as well as needs time for redemption. this
becomes cumbersome for the investors.
30
Types of mutual funds
Diagram-
Mutual
Fund
Open-
ended Fund
Close-ended
Fund
Based on
Their
Structure
Balanced
Fund
Debt Fund
Based on
Investment
Objective
Equity Fund
Index Fund
Equity diversified
Thematic funds
Debt-oriented
ELSS
Gilt funds
FMPs
Dividend yield
Arbitrage funds
Sector Funds
Income funds
Liquid funds
MIPs
Equity-oriented
Floating rate funds
Types of mutual funds
Diagram-
Mutual
Fund
Open-
ended Fund
Close-ended
Fund
Based on
Their
Structure
Balanced
Fund
Debt Fund
Based on
Investment
Objective
Equity Fund
Index Fund
Equity diversified
Thematic funds
Debt-oriented
ELSS
Gilt funds
FMPs
Dividend yield
Arbitrage funds
Sector Funds
Income funds
Liquid funds
MIPs
Equity-oriented
Floating rate funds
31
General classification of mutual funds:--
(open ended, close ended & Interval funds)
• Open-end funds-
Funds that can sell and purchase units at any point in time are classified as
open-ebd funds. the fund size (corpus) of an open-end fund is variable
(keeps changing) because of continuous selling ( to investors) and
repurchases( from the investors) by the fund.
• Closed-end funds-
funds that can sell a fixed number of units only during the new fund offer
(NFO) period are known as closed-end funds. The corpus of a closed-end
fund remains unchanged at all times. After the closure of the offer, buying
and redemption of the units by the investors directly from the funds is not
allowed. However, to protect the interests of the investors, SEBI provides
investors with two avenues to liquidate their positions.
1- closed-end funds are listed on the stock exchanges where investors can
buy/sell units from/ to each other. The trading is generally done at a discount
to the NAV of the scheme. The NAV of a closed-end fund is computed on a
weekly bais (updated every Thursday).
2-Closed-end funds may also offer "but-back of units" to the unit holders. In
this case, the corpus of the fund and its outstanding units do get changed.
General classification of mutual funds:--
(open ended, close ended & Interval funds)
• Open-end funds-
Funds that can sell and purchase units at any point in time are classified as
open-ebd funds. the fund size (corpus) of an open-end fund is variable
(keeps changing) because of continuous selling ( to investors) and
repurchases( from the investors) by the fund.
• Closed-end funds-
funds that can sell a fixed number of units only during the new fund offer
(NFO) period are known as closed-end funds. The corpus of a closed-end
fund remains unchanged at all times. After the closure of the offer, buying
and redemption of the units by the investors directly from the funds is not
allowed. However, to protect the interests of the investors, SEBI provides
investors with two avenues to liquidate their positions.
1- closed-end funds are listed on the stock exchanges where investors can
buy/sell units from/ to each other. The trading is generally done at a discount
to the NAV of the scheme. The NAV of a closed-end fund is computed on a
weekly bais (updated every Thursday).
2-Closed-end funds may also offer "but-back of units" to the unit holders. In
this case, the corpus of the fund and its outstanding units do get changed.
32
• Interval funds-
It combines features of both open-ended & close-ended schemes.
They are largely close-ended, but become open-ended at pre-specified
intervals. The benefits of investors are that, unlikely in a purely close-ended
scheme, they are not completely dependent on the stock exchange to be able
to buy or sell units of the interval funds.
• Actively managed funds & passive:-
Active managed funds-
Are those funds where the fund manager has flexibility to choose the
investment portfolio, within the broad parameters of the investment
objectives of the scheme
Passive funds-
Invest on the basis of the specified index, whose performance it seeks
to track. the performance of these funds tend to mirror the concerned index.
They are not designed to perform better than market. Such schemes are
called index schemes.
Risk associated with mutual funds
Investing in mutual funds as with any security does not come without risk.
one of the most basic economic principles is that risk and reward are
directly correlated. In other words "the greater the potential risk, the
greater the potential return".
• Interval funds-
It combines features of both open-ended & close-ended schemes.
They are largely close-ended, but become open-ended at pre-specified
intervals. The benefits of investors are that, unlikely in a purely close-ended
scheme, they are not completely dependent on the stock exchange to be able
to buy or sell units of the interval funds.
• Actively managed funds & passive:-
Active managed funds-
Are those funds where the fund manager has flexibility to choose the
investment portfolio, within the broad parameters of the investment
objectives of the scheme
Passive funds-
Invest on the basis of the specified index, whose performance it seeks
to track. the performance of these funds tend to mirror the concerned index.
They are not designed to perform better than market. Such schemes are
called index schemes.
Risk associated with mutual funds
Investing in mutual funds as with any security does not come without risk.
one of the most basic economic principles is that risk and reward are
directly correlated. In other words "the greater the potential risk, the
greater the potential return".
33
The types of risk commonly associated with Mutual funds are:-
1-Market Risk-
Market risk relates to market value of a security in the future. market
prices fluctuated and are susceptible to economic and financial trends,
supply, demand and many other factors that cannot be precisely predicted or
controlled. Because of the type of securities commonly found in the mutual
funds: common stock, preferred stock, corporate bonds, government
bonds, and so on is subjected to market risk.
2- Political Risk-
The political landscape has a tendency to change frequently, affecting
the value and/or performance of investments. There is no greatest single
factor related to political risk. Manipulation of minimum wage levels,
government regulation, changes in tax code, and philosophical differences
regarding foreign trade are all just a few of the many factors that combine to
create the political risk. Collectively, as citizens we have indirect control
through the power of our vote. Individually, investors have virtually no
control.
3-Inflation risk-
Inflation or purchasing power risk reflects to the uncertainty of the
future purchasing power of invested dollars. The risk is the increase in the
cost of goods and services as measured by consumer price index that will
erode the purchasing power of fixed investments.
4-Currency Risk-
The risk is that fluctuations in the exchange rate between the US dollars
& foreign currency may decrease the value of security, that is either invested
or whose value is derived upon that currency. Global & international
investments are more subject to this type of risk.
The types of risk commonly associated with Mutual funds are:-
1-Market Risk-
Market risk relates to market value of a security in the future. market
prices fluctuated and are susceptible to economic and financial trends,
supply, demand and many other factors that cannot be precisely predicted or
controlled. Because of the type of securities commonly found in the mutual
funds: common stock, preferred stock, corporate bonds, government
bonds, and so on is subjected to market risk.
2- Political Risk-
The political landscape has a tendency to change frequently, affecting
the value and/or performance of investments. There is no greatest single
factor related to political risk. Manipulation of minimum wage levels,
government regulation, changes in tax code, and philosophical differences
regarding foreign trade are all just a few of the many factors that combine to
create the political risk. Collectively, as citizens we have indirect control
through the power of our vote. Individually, investors have virtually no
control.
3-Inflation risk-
Inflation or purchasing power risk reflects to the uncertainty of the
future purchasing power of invested dollars. The risk is the increase in the
cost of goods and services as measured by consumer price index that will
erode the purchasing power of fixed investments.
4-Currency Risk-
The risk is that fluctuations in the exchange rate between the US dollars
& foreign currency may decrease the value of security, that is either invested
or whose value is derived upon that currency. Global & international
investments are more subject to this type of risk.
34
The risk that Mutual fund underlying securities cannot be sold at a
fair price within a reasonable period of time. Share in largely Blue-chip
stocks are considered liquid because these are large no. of outstanding
shares that are actively traded. As result their stock prices are not
dramatically affected by day-to-day buying and selling. Conversely since a
few big orders currently influence the share price.
Factors Affecting Mutual Fund:-
Governmental Influences:-
Mutual Fund business is a highly regulated business throughout the
world as it ensure that quality and fairly prices schemes are available.
Governmental Inventions thus is Mutual Fund market usually is most needed
to ensure that insures are reliable. And in the developing countries the
additional goal may be promotion of domestic Mutual Fund industry and
ensuring the national Mutual Fund industry contributes the over all
economic development. In a non-technical sense Mutual Fund industry is to
ensure that this principle of Mutual Fund is never defeated. The ideology of
government plays an important role in Mutual Fund industry also. For
example in the past during 1991, the P. V. Liberalized the Mutual fund
sector which help to allow private players in the industry from 1993 and
enhancing joint ventures with foreign companies. The present government
with more focuses on foreign direct investments has declared to favor the
rise FDI in Mutual Fund to 49% which further enhances competition in the
industry.
Taxation Policy:-
Social equity being one of the motives behind Tax collections,
government gives certain exemptions form such levying. One such
exemption is deduction incurred by taxpayers towards investment in Mutual
The risk that Mutual fund underlying securities cannot be sold at a
fair price within a reasonable period of time. Share in largely Blue-chip
stocks are considered liquid because these are large no. of outstanding
shares that are actively traded. As result their stock prices are not
dramatically affected by day-to-day buying and selling. Conversely since a
few big orders currently influence the share price.
Factors Affecting Mutual Fund:-
Governmental Influences:-
Mutual Fund business is a highly regulated business throughout the
world as it ensure that quality and fairly prices schemes are available.
Governmental Inventions thus is Mutual Fund market usually is most needed
to ensure that insures are reliable. And in the developing countries the
additional goal may be promotion of domestic Mutual Fund industry and
ensuring the national Mutual Fund industry contributes the over all
economic development. In a non-technical sense Mutual Fund industry is to
ensure that this principle of Mutual Fund is never defeated. The ideology of
government plays an important role in Mutual Fund industry also. For
example in the past during 1991, the P. V. Liberalized the Mutual fund
sector which help to allow private players in the industry from 1993 and
enhancing joint ventures with foreign companies. The present government
with more focuses on foreign direct investments has declared to favor the
rise FDI in Mutual Fund to 49% which further enhances competition in the
industry.
Taxation Policy:-
Social equity being one of the motives behind Tax collections,
government gives certain exemptions form such levying. One such
exemption is deduction incurred by taxpayers towards investment in Mutual
35
Fund coverage. Similarly, capital invested in infrastructure bonds etc. is
offered with certain concession under Tax laws. The central idea behind
such exemptions is that the capital so allocated by individual reduces the
ultimate burden on the public infrastructure facilities. The Income TAX rule
related to the Mutual Fund transaction can be classified as under;
Exemption available to companies or business
Exemption available to ensure individuals
Exemption available to companies;
1. Expenses deductible from commission earned by the distributer, banker,
national distributer.
2. Tax concession under risk management practices of an enterprise
3. In growth option equity scheme there no long term capital gain by company.
4. In dividend option equity schemes there no tax.
5. Return received by charitable trust ins total exempted from tax.
6. Else schemes give to advantage of tax saving, growth potential and return.
Fund coverage. Similarly, capital invested in infrastructure bonds etc. is
offered with certain concession under Tax laws. The central idea behind
such exemptions is that the capital so allocated by individual reduces the
ultimate burden on the public infrastructure facilities. The Income TAX rule
related to the Mutual Fund transaction can be classified as under;
Exemption available to companies or business
Exemption available to ensure individuals
Exemption available to companies;
1. Expenses deductible from commission earned by the distributer, banker,
national distributer.
2. Tax concession under risk management practices of an enterprise
3. In growth option equity scheme there no long term capital gain by company.
4. In dividend option equity schemes there no tax.
5. Return received by charitable trust ins total exempted from tax.
6. Else schemes give to advantage of tax saving, growth potential and return.
36
Tax rules governing investment by individuals-
Deduction in respect of ELSS schemes (sec80c);
Investment in this fund would enable you to avail the benefits under
clause(XIII) of the section 80c of the Income Tax Act investment made in
the schemes up to 1 Lac by the eligible investor for deduction under this
section of the Act. Section it will be an income deduction an investment of
Rs. 1 Lac in this fund can save of Rs. 33600 from your tax payable liability
(assuming you are in the highest tax bracket) investor will receive tax free
dividend in above case. Investor will also receive tax free dividend by
investing equity schemes in dividend option investor also receive tax free
return by investing equity scheme in growth option for long term capital
gain.
Tax Planning
An Individual can think of health ELSS schemes purchase as a tool of
tax planning exercise. For example people who are marginally affected by
tax liability can be as well purchase a ELSS fund get benefits of Rs. 33600
from tax. In this way tax burden to individual/companies by way of
exemptions/deductions of expenditure incurred towards purchase of Mutual
Fund various scheme coverage from total income.
Foreign Trade Regulations:
With the vast potential for Mutual Fund in India due its large
population in the country many foreign companies are ready to enter into the
Indian Market. But companies can be permitted in India through joint
ventures with an Indian partner as well as come separately and the foreign
equity shall be restricted to only 25%. Another statement also tells that
Indian subsidiaries of foreign companies shall not be allowed to participate
in the banking sector unless they entered in to joint ventures with the Indian
Tax rules governing investment by individuals-
Deduction in respect of ELSS schemes (sec80c);
Investment in this fund would enable you to avail the benefits under
clause(XIII) of the section 80c of the Income Tax Act investment made in
the schemes up to 1 Lac by the eligible investor for deduction under this
section of the Act. Section it will be an income deduction an investment of
Rs. 1 Lac in this fund can save of Rs. 33600 from your tax payable liability
(assuming you are in the highest tax bracket) investor will receive tax free
dividend in above case. Investor will also receive tax free dividend by
investing equity schemes in dividend option investor also receive tax free
return by investing equity scheme in growth option for long term capital
gain.
Tax Planning
An Individual can think of health ELSS schemes purchase as a tool of
tax planning exercise. For example people who are marginally affected by
tax liability can be as well purchase a ELSS fund get benefits of Rs. 33600
from tax. In this way tax burden to individual/companies by way of
exemptions/deductions of expenditure incurred towards purchase of Mutual
Fund various scheme coverage from total income.
Foreign Trade Regulations:
With the vast potential for Mutual Fund in India due its large
population in the country many foreign companies are ready to enter into the
Indian Market. But companies can be permitted in India through joint
ventures with an Indian partner as well as come separately and the foreign
equity shall be restricted to only 25%. Another statement also tells that
Indian subsidiaries of foreign companies shall not be allowed to participate
in the banking sector unless they entered in to joint ventures with the Indian
37
Partners. But at present the Mutual Fund regulator is in favor of hike in FDI
Capital from 25% to 49%, and is finalizing a report that will be submitted to
the government for a comprehensive legislation for the industry. The
Security and Exchange Board of India (SEBI) and Association of Mutual
Fund India (AMFI) have been advocating a hike in FDI limit for Mutual
Fund companies so that the foreign partners can infuse additional funds in
these companies to sustain their growth. The government will need to amend
the separate Mutual Fund Act for FDI capital as well as domestic company
as this is the statutory provision unlike sectors like civil aviation and
telecom, which have come through notification.
National Income:
The relative importance of Mutual Fund Market within a country will
also be dependent upon economic development. With greater rate of
economic growth, consumption of investment should increase as a result of
increased income, and an increased stock of assets requiring Mutual Fund.
Further more, the development of Mutual Fund is likely to facilitate greater
economic growth, implying that economic growth may be endogenous.
Consistent with these arguments, studie3d find that the level of financial
development and economic development are positively related to the level of
Mutual Fund acro0ss emerging markets.
Employment:
The effect of employment on mutual fund is as direst as that on economic
development of ant country. With the raising level of employment the effect
on mutual fund industry is positive because employment acds to the insured
properties and assets from every prospective be it due to organized or
unorganized.
Partners. But at present the Mutual Fund regulator is in favor of hike in FDI
Capital from 25% to 49%, and is finalizing a report that will be submitted to
the government for a comprehensive legislation for the industry. The
Security and Exchange Board of India (SEBI) and Association of Mutual
Fund India (AMFI) have been advocating a hike in FDI limit for Mutual
Fund companies so that the foreign partners can infuse additional funds in
these companies to sustain their growth. The government will need to amend
the separate Mutual Fund Act for FDI capital as well as domestic company
as this is the statutory provision unlike sectors like civil aviation and
telecom, which have come through notification.
National Income:
The relative importance of Mutual Fund Market within a country will
also be dependent upon economic development. With greater rate of
economic growth, consumption of investment should increase as a result of
increased income, and an increased stock of assets requiring Mutual Fund.
Further more, the development of Mutual Fund is likely to facilitate greater
economic growth, implying that economic growth may be endogenous.
Consistent with these arguments, studie3d find that the level of financial
development and economic development are positively related to the level of
Mutual Fund acro0ss emerging markets.
Employment:
The effect of employment on mutual fund is as direst as that on economic
development of ant country. With the raising level of employment the effect
on mutual fund industry is positive because employment acds to the insured
properties and assets from every prospective be it due to organized or
unorganized.
38
Inflation:
The midterm policy review the strong macroeconomic indicators and
RBI has revised its GDP growth estimates to the upper limit of the earlier
protection range 8% inflation (WPI) has been steadily moving up in recent
times and RBI has highlighted that primary articles prices have been one of
the key contributors. How one need to keep in mind that recent increase in
global oil prices.
Money Supply:
The central banks has indicated that credit growth and money supply
number are likely to be above its prosecution for the current fiscal year, the
statement “to consider promptly ball possible measures as appropriate to the
evolving global and domestic situation” is indicative and phased increase in
FII limits for gilt investment could help in developing the securities market
and is part of the road map toward fuller convertibility.
Interest:
Interest is the major factor of investment when a person find less return
from investment tool then people move towards the higher returns tool of
investment.
Risk Factor:
All investment in Mutual Fund and securities are subject to market risks
and the NAV of the fund may go up or down depending on the factors and
forces affecting the securities market. There can be no assurance of the
future results. The name of t6he schemes does not in any manner indicate
their quality, their future prospects or returns. Their specific risk would be
credit, market, illiquidity, judgment error, interest rate, swaps and forward
rates.
Inflation:
The midterm policy review the strong macroeconomic indicators and
RBI has revised its GDP growth estimates to the upper limit of the earlier
protection range 8% inflation (WPI) has been steadily moving up in recent
times and RBI has highlighted that primary articles prices have been one of
the key contributors. How one need to keep in mind that recent increase in
global oil prices.
Money Supply:
The central banks has indicated that credit growth and money supply
number are likely to be above its prosecution for the current fiscal year, the
statement “to consider promptly ball possible measures as appropriate to the
evolving global and domestic situation” is indicative and phased increase in
FII limits for gilt investment could help in developing the securities market
and is part of the road map toward fuller convertibility.
Interest:
Interest is the major factor of investment when a person find less return
from investment tool then people move towards the higher returns tool of
investment.
Risk Factor:
All investment in Mutual Fund and securities are subject to market risks
and the NAV of the fund may go up or down depending on the factors and
forces affecting the securities market. There can be no assurance of the
future results. The name of t6he schemes does not in any manner indicate
their quality, their future prospects or returns. Their specific risk would be
credit, market, illiquidity, judgment error, interest rate, swaps and forward
rates.
39
Demographic Environment;
The demographic environments significantly affect the demand
for the mutual fund industry. Factors like the average age of the population,
level of education, household structures income distribution, life style and
the extent of industrialization as well as urbanization terribly influences the
demand of the mutual fund schemes. In India the average age of population
is at an increasing trend following the improved medical technology and
better awareness of healthy care requirement.
Why Insurance agents should sell Mutual funds?
Ans:-
Reason 1: Easy to make more clients
1-The penetration of mutual funds is very low.
2-The penetration of Insurance is very high.
3- Opportunity for you to acquire more clients.
4-Now no call of yours should get waste.
Reason 2: Less Competition in the market
1-Nationally these are 20 lacks Insurance agents huge competition even in
small villages/towns
2- There are only 1 lack AMFI certified mutual fund agents all over India
(25 thousand are partner of NJ)
3-A huge DEMAND of quality Mutual fund Agents
Demographic Environment;
The demographic environments significantly affect the demand
for the mutual fund industry. Factors like the average age of the population,
level of education, household structures income distribution, life style and
the extent of industrialization as well as urbanization terribly influences the
demand of the mutual fund schemes. In India the average age of population
is at an increasing trend following the improved medical technology and
better awareness of healthy care requirement.
Why Insurance agents should sell Mutual funds?
Ans:-
Reason 1: Easy to make more clients
1-The penetration of mutual funds is very low.
2-The penetration of Insurance is very high.
3- Opportunity for you to acquire more clients.
4-Now no call of yours should get waste.
Reason 2: Less Competition in the market
1-Nationally these are 20 lacks Insurance agents huge competition even in
small villages/towns
2- There are only 1 lack AMFI certified mutual fund agents all over India
(25 thousand are partner of NJ)
3-A huge DEMAND of quality Mutual fund Agents
40
Reason 3: More satisfaction to your clients
1 -If you are not selling mutual funds then you must not be aware of what
they truly are and the possibilities that they offer in providing solutions that
meet the diverse needs of different clients.
2-With mutual funds in your offering, you are in a much better position to
fully meet the client's financial and investment and investors needs.
3-Yours clients would ideally like you to do that and will be happy once him
multiple solutions.
Reason 4: Additional sourceof income
1.Mutual fund is one product today that potentially has no limits to the
volumes that you can generate.
2- The important differentiation here with insurance is that your income is
not based on premium you collect but on the entire AUM (assets under
management) that you have mobilized to counter the low rates.
3- An agent's AUM running into cror in quite common in the industry. the
income from mutual funds can complement your earnings from insurance
and may even substitute them, in future.
Reason 5: Leveraging existing clientele base
1- How to get more out of what you already have?
2-Well, mutual fund is just the perfect answer to that question.
3-The truth is that there is a lot of potential to generate further income from
your existing clientele base.
4-Much of the investment needs of clients are unexplored and unfulfilled
that you can satisfy.
Reason 3: More satisfaction to your clients
1 -If you are not selling mutual funds then you must not be aware of what
they truly are and the possibilities that they offer in providing solutions that
meet the diverse needs of different clients.
2-With mutual funds in your offering, you are in a much better position to
fully meet the client's financial and investment and investors needs.
3-Yours clients would ideally like you to do that and will be happy once him
multiple solutions.
Reason 4: Additional sourceof income
1.Mutual fund is one product today that potentially has no limits to the
volumes that you can generate.
2- The important differentiation here with insurance is that your income is
not based on premium you collect but on the entire AUM (assets under
management) that you have mobilized to counter the low rates.
3- An agent's AUM running into cror in quite common in the industry. the
income from mutual funds can complement your earnings from insurance
and may even substitute them, in future.
Reason 5: Leveraging existing clientele base
1- How to get more out of what you already have?
2-Well, mutual fund is just the perfect answer to that question.
3-The truth is that there is a lot of potential to generate further income from
your existing clientele base.
4-Much of the investment needs of clients are unexplored and unfulfilled
that you can satisfy.
41
Reason 6: Retention and loyalty of clients
1- The underlying logic can be found in the growth of multiplexes, shopping
malls, after all the human nature is basically the same.
2-People today look for easy, fast, and simple service point that provides
them with solutions that meets their multiple needs.
3- Yours clients would probably invest in mutual funds some day or later
4-Why not you do the same before anyone else gets to your clients?
Reason 6: Retention and loyalty of clients
1- The underlying logic can be found in the growth of multiplexes, shopping
malls, after all the human nature is basically the same.
2-People today look for easy, fast, and simple service point that provides
them with solutions that meets their multiple needs.
3- Yours clients would probably invest in mutual funds some day or later
4-Why not you do the same before anyone else gets to your clients?
42
CHAPTER-3
Company Overview
CHAPTER-3
Company Overview
43
INTRODUCTION
• ABOUT 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.
INTRODUCTION
• ABOUT 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.
44
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.
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.
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.
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.
45
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.
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.
46
PLAYERS IN THE SECTOR
NJ INDIA INVEST is the leading company dealing in the Mutual
Funds. Following are the competitors of NJ:-
Karvy:
The Karvy Group was formed in 1983 in Hyderabad, India. Karvy
ranks among the top players in almost all the fields it operates. Karvy
Computershare limited is India’s largest registrar and transfer agents with a
client base of nearly 500 blue chips corporate, managing over 2cr
accounts.Karvy Stock Brokers Limited, member of National Stock
Exchange of India and Bombay Stock Exchange ranks among the top 5
stock brokers of India.
Anand Rathi:
AnandRathi is a leading full service securities firm providing the
entire gamut of financial services. The firm, founded in 1994 by Mr.
AnandRathi, today has a pan India presence as well as an international
presence through offices in Dubai and Bangkok.AnandRathi provides a
breadth of financial and advisory services including wealth management,
investment banking, corporate advisory, brokerage & distribution of
equities, commodities, mutual funds and insurance
PLAYERS IN THE SECTOR
NJ INDIA INVEST is the leading company dealing in the Mutual
Funds. Following are the competitors of NJ:-
Karvy:
The Karvy Group was formed in 1983 in Hyderabad, India. Karvy
ranks among the top players in almost all the fields it operates. Karvy
Computershare limited is India’s largest registrar and transfer agents with a
client base of nearly 500 blue chips corporate, managing over 2cr
accounts.Karvy Stock Brokers Limited, member of National Stock
Exchange of India and Bombay Stock Exchange ranks among the top 5
stock brokers of India.
Anand Rathi:
AnandRathi is a leading full service securities firm providing the
entire gamut of financial services. The firm, founded in 1994 by Mr.
AnandRathi, today has a pan India presence as well as an international
presence through offices in Dubai and Bangkok.AnandRathi provides a
breadth of financial and advisory services including wealth management,
investment banking, corporate advisory, brokerage & distribution of
equities, commodities, mutual funds and insurance
47
India Infoline:
India Infoline (IIL) is engaged in business of equities broking, wealth
advisory services and portfolio management services. The company was
incorporated in October 1995 as Probity Research & Services and later in
April 2000 the name was changed to India Infoline.com. Then in March
2001 the company again changed its name to India Infoline. The company is
part of India Infoline Group. It has pan- India presence through its
distribution network of 607 branches, 151 franchisees located in 346 cities.
The company also has presence in Dubai, New York and Singapore.
Edelweiss:
Edelweissis one of India's leading Financial Services Groups, with
operations that span more than forty different lines of business and
subsidiaries. Our operations straddle the entire spectrum of financial services
in the wholesale and retail market segments including Asset Management,
Capital Markets, Credit, Housing Finance and Insurance services. With a net
worth of over INR 28bn, Edelweiss is adequately capitalized to exploit the
opportunities emerging from this robust economic growth. Edelweiss
employs over 2900 professionals across 297 offices and branches spread
across 144 cities of India.
Trust line:
Trustline made a humble beginning in 1989 as a proprietary stock
broking company and recently got converted into a public limited company
in the name of Trustline securities limited. With the advent of newer
exchanges coming into play in the financial market of India, Trustline
India Infoline:
India Infoline (IIL) is engaged in business of equities broking, wealth
advisory services and portfolio management services. The company was
incorporated in October 1995 as Probity Research & Services and later in
April 2000 the name was changed to India Infoline.com. Then in March
2001 the company again changed its name to India Infoline. The company is
part of India Infoline Group. It has pan- India presence through its
distribution network of 607 branches, 151 franchisees located in 346 cities.
The company also has presence in Dubai, New York and Singapore.
Edelweiss:
Edelweissis one of India's leading Financial Services Groups, with
operations that span more than forty different lines of business and
subsidiaries. Our operations straddle the entire spectrum of financial services
in the wholesale and retail market segments including Asset Management,
Capital Markets, Credit, Housing Finance and Insurance services. With a net
worth of over INR 28bn, Edelweiss is adequately capitalized to exploit the
opportunities emerging from this robust economic growth. Edelweiss
employs over 2900 professionals across 297 offices and branches spread
across 144 cities of India.
Trust line:
Trustline made a humble beginning in 1989 as a proprietary stock
broking company and recently got converted into a public limited company
in the name of Trustline securities limited. With the advent of newer
exchanges coming into play in the financial market of India, Trustline
48
groups’ foray into the commodity, currency, and depository was but natural.
Today Trustline group is into all major areas of financial services.
India Bulls:
In middle of 1999, when e-commerce was just about starting in India,
Sameer Gehlaut and his close IIT Delhi friend Rajiv Rattan got together and
bought a defunct securities company with a NSE membership and started
offering brokerage services. A Few months later, their friend Saurabh Mittal
also joined them. By December 1999, the company embarked on its journey
to build one of the first online platforms in India for offering internet
brokerage services. In January 2000, the 3 founders incorporated India bulls
Financial Services and made it as the flagship company.
UTI Mutual Funds:
January 14, 2003 is when UTI Mutual Fund started to pave its path
following the vision of UTI Asset Management Co. Ltd. (UTIAMC), which
was appointed by UTI Trustee Co, Pvt. Ltd. for managing the schemes of
UTI Mutual Fund and the schemes transferred/migrated from the erstwhile
Unit Trust of India.
DWS Investment:
DWS Investments is the mutual fund arm of Deutsche Asset
Management, with more than EUR 139 bn.1 the largest mutual fund
company in its home country, Germany; with EUR 193 bn.
groups’ foray into the commodity, currency, and depository was but natural.
Today Trustline group is into all major areas of financial services.
India Bulls:
In middle of 1999, when e-commerce was just about starting in India,
Sameer Gehlaut and his close IIT Delhi friend Rajiv Rattan got together and
bought a defunct securities company with a NSE membership and started
offering brokerage services. A Few months later, their friend Saurabh Mittal
also joined them. By December 1999, the company embarked on its journey
to build one of the first online platforms in India for offering internet
brokerage services. In January 2000, the 3 founders incorporated India bulls
Financial Services and made it as the flagship company.
UTI Mutual Funds:
January 14, 2003 is when UTI Mutual Fund started to pave its path
following the vision of UTI Asset Management Co. Ltd. (UTIAMC), which
was appointed by UTI Trustee Co, Pvt. Ltd. for managing the schemes of
UTI Mutual Fund and the schemes transferred/migrated from the erstwhile
Unit Trust of India.
DWS Investment:
DWS Investments is the mutual fund arm of Deutsche Asset
Management, with more than EUR 139 bn.1 the largest mutual fund
company in its home country, Germany; with EUR 193 bn.
49
Aum number four of the leading retail mutual fund companies across
Europe2 and with EUR 270 bn. within the top 10 globally3.
Founded in 1956, DWS’s activities span beyond Europe.
PRUDENT:
The Prudent Insurance Brokers team is the key driving force of the
company. We are driven by intense professional pride to excel and deliver.
Our team comprises of over 160 professionals from diverse backgrounds,
bringing with them rich experience to understand better our clients’
businesses and risks.
Bajaj capital:
The Bajaj Capital Group is one of India’s leading Investment Advisory
and Financial Planning companies. Bajaj Capital is also SEBI-approved
Category I Merchant Bankers. Bajaj Capital offers personalized investment
Advisory and Financial Planning services to individual investors, corporate
houses, institutional investors, Non-Residents Indians (NRIs) and High Net
worth Clients, among others.
BONANZA-
Bonanza is a leading Financial Services & Brokerage House. It also
distributes mutual funds of various AMCs.
Aum number four of the leading retail mutual fund companies across
Europe2 and with EUR 270 bn. within the top 10 globally3.
Founded in 1956, DWS’s activities span beyond Europe.
PRUDENT:
The Prudent Insurance Brokers team is the key driving force of the
company. We are driven by intense professional pride to excel and deliver.
Our team comprises of over 160 professionals from diverse backgrounds,
bringing with them rich experience to understand better our clients’
businesses and risks.
Bajaj capital:
The Bajaj Capital Group is one of India’s leading Investment Advisory
and Financial Planning companies. Bajaj Capital is also SEBI-approved
Category I Merchant Bankers. Bajaj Capital offers personalized investment
Advisory and Financial Planning services to individual investors, corporate
houses, institutional investors, Non-Residents Indians (NRIs) and High Net
worth Clients, among others.
BONANZA-
Bonanza is a leading Financial Services & Brokerage House. It also
distributes mutual funds of various AMCs.
50
Organization structure
The management at NJ brings together a team of people with wide
experience and knowledge in the financial service domain. The management
provides direction and guidance to the whole organization. The management
has strong visions for NJ as a globally respected company providing
comprehensive services in financial sector.
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 the diverse functions of business. The management also
focuses on utilizing technology as the key enabler for all the activities and to
leverage the technology for enhancing overall customer experience.
• 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
Organization structure
The management at NJ brings together a team of people with wide
experience and knowledge in the financial service domain. The management
provides direction and guidance to the whole organization. The management
has strong visions for NJ as a globally respected company providing
comprehensive services in financial sector.
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 the diverse functions of business. The management also
focuses on utilizing technology as the key enabler for all the activities and to
leverage the technology for enhancing overall customer experience.
• 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
51
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.
PRODUCTS & SERVICES :-
• Mutual fund
• Asset management
Real estate
• Insurance broking
• Global wealth advisor
• Information technology
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.
PRODUCTS & SERVICES :-
• Mutual fund
• Asset management
Real estate
• Insurance broking
• Global wealth advisor
• Information technology
52
NJ Wealth – Financial Products Distributors Network
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.
Product basket-
Domestic mutual funds (all AMCs)
Capital Markets - direct equity and ETFs
NJ Wealth – Financial Products Distributors Network
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.
Product basket-
Domestic mutual funds (all AMCs)
Capital Markets - direct equity and ETFs
53
Fixed Deposits of companies
PMS products (Third party & NJ)
Government/ RBI/ Infrastructure bonds
Residential & commercial properties
Partner Services-
Dedicated Relationship Manager
Marketing & Sales support
Research support
Training & Education support
Dedicated Customer Care / Query management support
Technological support, including online business / 'Partners Desk' with CRM
& Employee Management modules
1) Asset Management
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
Fixed Deposits of companies
PMS products (Third party & NJ)
Government/ RBI/ Infrastructure bonds
Residential & commercial properties
Partner Services-
Dedicated Relationship Manager
Marketing & Sales support
Research support
Training & Education support
Dedicated Customer Care / Query management support
Technological support, including online business / 'Partners Desk' with CRM
& Employee Management modules
1) Asset Management
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
54
customers with solutions that give them the freedom from active
management of investments while having an assurance that we would be
doing so in the best possible manner. 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. NJ Advisory Services leverages upon with its rich
experience in portfolio management with in-depth knowledge & expertise in
mutual funds. The decisions on the 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.
Products:
Freedom Portfolio:
Objective: To stay invested in equity mutual fund schemes at all times,
deliver superior portfolio returns by selecting better performing schemes and
encashing on opportunities offered by markets.
Dynamic Asset Allocation Portfolio:
Objective: To give better risk adjusted returns by deciding right proportion
of Equity and Debt asset classes from time to time, and selecting
consistently better performing mutual fund schemes.
customers with solutions that give them the freedom from active
management of investments while having an assurance that we would be
doing so in the best possible manner. 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. NJ Advisory Services leverages upon with its rich
experience in portfolio management with in-depth knowledge & expertise in
mutual funds. The decisions on the 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.
Products:
Freedom Portfolio:
Objective: To stay invested in equity mutual fund schemes at all times,
deliver superior portfolio returns by selecting better performing schemes and
encashing on opportunities offered by markets.
Dynamic Asset Allocation Portfolio:
Objective: To give better risk adjusted returns by deciding right proportion
of Equity and Debt asset classes from time to time, and selecting
consistently better performing mutual fund schemes.
55
Key customer services:
Online Client PMS Desk with daily update reports
Reporting on monthly, quarterly & annual basis through email and hard
copies
2) Real Estate
The NJ Realty venture offers an integrated service model offering end-to-
end services to various stake-holders in realty program management &
execution. The idea is to associate with stakeholders and engage actively in
various stages of program management, viz. market survey, and legal due
diligence, land acquisition, planning & execution of projects and managing
sales & distribution through NJ Wealth Advisors Network.
3) Insurance Broking
NJ Insurance Brokers Pvt. Ltd., a licensed insurance broker by IRDA, seeks
to provide customers with comprehensive solutions catering to their
Key customer services:
Online Client PMS Desk with daily update reports
Reporting on monthly, quarterly & annual basis through email and hard
copies
2) Real Estate
The NJ Realty venture offers an integrated service model offering end-to-
end services to various stake-holders in realty program management &
execution. The idea is to associate with stakeholders and engage actively in
various stages of program management, viz. market survey, and legal due
diligence, land acquisition, planning & execution of projects and managing
sales & distribution through NJ Wealth Advisors Network.
3) Insurance Broking
NJ Insurance Brokers Pvt. Ltd., a licensed insurance broker by IRDA, seeks
to provide customers with comprehensive solutions catering to their
56
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. NJ Insurance
leverages from the rich experience of NJ group in financial planning and
investment management for customers. NJ Insurance Brokers has appointed
Certified Insurance Advisors (CIAs) who work with customers in
identifying, fulfilling & managing their insurance needs. NJ offers a
comprehensive basket of products both in life & non-life insurance space
and makes exhaustive use of technology to deliver great value to customers.
Product basket:
Life insurance products from leading life insurers
General insurance products, especially Health, Motor & Personal
Accident, from leading general insurers
4) 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.
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. NJ Insurance
leverages from the rich experience of NJ group in financial planning and
investment management for customers. NJ Insurance Brokers has appointed
Certified Insurance Advisors (CIAs) who work with customers in
identifying, fulfilling & managing their insurance needs. NJ offers a
comprehensive basket of products both in life & non-life insurance space
and makes exhaustive use of technology to deliver great value to customers.
Product basket:
Life insurance products from leading life insurers
General insurance products, especially Health, Motor & Personal
Accident, from leading general insurers
4) 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.
57
The vision at Global Wealth Advisory platform is to offer a single window
for investment opportunities across the globe to customers. The idea is to
bring to customers a wide range of offshore fund schemes (domiciled in
Mauritius, Luxembourg, Dublin and other jurisdictions), through advisors on
the Global Wealth Advisory platform. NJ Global Invest seeks to provide an
offshore fund distribution platform & offshore Portfolio Advisory services
under a B2B distribution model.
5) Information Technology
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. Over the years, the captive IT team, gained
strong domain expertise and skills in diverse areas and technology domains.
Today, Finlogic team boasts of over 250 employees with skills & rich
experience in product development, software testing, infrastructure
management, R&D, project management & information security.
The vision at Global Wealth Advisory platform is to offer a single window
for investment opportunities across the globe to customers. The idea is to
bring to customers a wide range of offshore fund schemes (domiciled in
Mauritius, Luxembourg, Dublin and other jurisdictions), through advisors on
the Global Wealth Advisory platform. NJ Global Invest seeks to provide an
offshore fund distribution platform & offshore Portfolio Advisory services
under a B2B distribution model.
5) Information Technology
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. Over the years, the captive IT team, gained
strong domain expertise and skills in diverse areas and technology domains.
Today, Finlogic team boasts of over 250 employees with skills & rich
experience in product development, software testing, infrastructure
management, R&D, project management & information security.
58
6) Training & Development
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. NJ Gurukul is about a vision that aspires to nurture
the young talent in India and to transform them into individuals with
knowledge & skills for employment and enterprise. With special focus on
the financial advisors community. NJ Gurukul has an institutionalised,
process driven approach to training with focus on delivering uniformity in
quality & content. The NJ Gurukul has a Board of Trainers with over 35
well qualified, professional trainers empanelled across India for delivering
training programs. Within a short time, NJ Gurukul has trained over 30,000
participants in over 50 locations across India. NJ Gurukul is an authorised
Education Provider (EP) with FPSB India to deliver training for the
prestigious Certified Financial Planner - CFP
CM
Certification. NJ Gurukul is
also amongst the largest trainers of Mutual Fund Distributors in India.
Key Training Programs:
Mutual Fund Distributors Certification by NISM for prospective NJ Wealth
Advisors
6) Training & Development
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. NJ Gurukul is about a vision that aspires to nurture
the young talent in India and to transform them into individuals with
knowledge & skills for employment and enterprise. With special focus on
the financial advisors community. NJ Gurukul has an institutionalised,
process driven approach to training with focus on delivering uniformity in
quality & content. The NJ Gurukul has a Board of Trainers with over 35
well qualified, professional trainers empanelled across India for delivering
training programs. Within a short time, NJ Gurukul has trained over 30,000
participants in over 50 locations across India. NJ Gurukul is an authorised
Education Provider (EP) with FPSB India to deliver training for the
prestigious Certified Financial Planner - CFP
CM
Certification. NJ Gurukul is
also amongst the largest trainers of Mutual Fund Distributors in India.
Key Training Programs:
Mutual Fund Distributors Certification by NISM for prospective NJ Wealth
Advisors
59
Certified Financial Planner (CFP
CM
) Certification by FPSB India
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.
Our Divisions
A. NJ Fundz Network:-
Certified Financial Planner (CFP
CM
) Certification by FPSB India
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.
Our Divisions
A. NJ Fundz Network:-
60
NJ Fundz Network has been playing a pioneering role in India in
providing independent advisors/advisory firms with integrated,
comprehensive and practical business solutions for ensuring continuous
growth & continuity of business. It provides the financial advisors and the
institutions that serve them with insights, strategies and tools to help them
significantly grow their businesses. How do we do it? That’s because we
understand how financial & wealth management businesses work and what
is needed to manage, monitor and grow the practice...
With the 360° Advisory platform, NJ has managed to successfully transform
the business of many advisory / distribution houses, bringing them on equal
footing or even better than the toughest competitors in the industry in the
concerned domain. With a vast experience & strong delivery mechanism, we
at NJ Fundz Network, help & ensure transformation and the exploitation of
the opportunities available.
NJ Fundz Network has been playing a pioneering role in India in
providing independent advisors/advisory firms with integrated,
comprehensive and practical business solutions for ensuring continuous
growth & continuity of business. It provides the financial advisors and the
institutions that serve them with insights, strategies and tools to help them
significantly grow their businesses. How do we do it? That’s because we
understand how financial & wealth management businesses work and what
is needed to manage, monitor and grow the practice...
With the 360° Advisory platform, NJ has managed to successfully transform
the business of many advisory / distribution houses, bringing them on equal
footing or even better than the toughest competitors in the industry in the
concerned domain. With a vast experience & strong delivery mechanism, we
at NJ Fundz Network, help & ensure transformation and the exploitation of
the opportunities available.
61
First in the Indian Mutual Fund Industry to offer a Complete Business
Platform to Advisors
With this philosophy, we try to offer all possible products, services and
support which an Advisor would need in his business.
The support functions are generally in the following areas:
Business Planning and Strategy
Training and Development – Self and of employees
Products and Service Offerings
Business Branding
Marketing
Sales and Development
Technology
Advisors Resources - Tools, Calculators, etc.
Research
Communications
With this comprehensive supporting platform, the NJ Funds Partners stays
ahead of the curve in each respect compared to other Advisors/competitors
in the market.
First in the Indian Mutual Fund Industry to offer a Complete Business
Platform to Advisors
With this philosophy, we try to offer all possible products, services and
support which an Advisor would need in his business.
The support functions are generally in the following areas:
Business Planning and Strategy
Training and Development – Self and of employees
Products and Service Offerings
Business Branding
Marketing
Sales and Development
Technology
Advisors Resources - Tools, Calculators, etc.
Research
Communications
With this comprehensive supporting platform, the NJ Funds Partners stays
ahead of the curve in each respect compared to other Advisors/competitors
in the market.
62
B. NJ Realty Services:-
This is an integrated service model offering solutions for meeting the
diverse real-estate needs of Corporate & retail customers in transacting
properties.
Finding the right property at the right value and the best buyer for a property
is the crux of any realty solution. The scope of properties embraces both
commercial & residential projects / properties. The integrated value-added
services ensure that the solutions are feasible, authentic, secure & profitable.
Today NJ Realty Services has tied up with over 40 developers with over 150
projects across India.
Philosophy
At NJ our Service and Investing philosophy inspire and shape the thoughts,
beliefs, attitude, actions and decisions of our employees. If NJ would
resemble a body, our philosophy would be our spirit which drives our body.
A. Service Philosophy:
Our primary measure of success is customer satisfaction.
We are committed to provide our customers with continuous, long-term
improvements and value-additions to meet the needs in an exceptional way.
In our efforts to consistently deliver the best service possible to our
customers, all employees of NJ will make every effort to:
B. NJ Realty Services:-
This is an integrated service model offering solutions for meeting the
diverse real-estate needs of Corporate & retail customers in transacting
properties.
Finding the right property at the right value and the best buyer for a property
is the crux of any realty solution. The scope of properties embraces both
commercial & residential projects / properties. The integrated value-added
services ensure that the solutions are feasible, authentic, secure & profitable.
Today NJ Realty Services has tied up with over 40 developers with over 150
projects across India.
Philosophy
At NJ our Service and Investing philosophy inspire and shape the thoughts,
beliefs, attitude, actions and decisions of our employees. If NJ would
resemble a body, our philosophy would be our spirit which drives our body.
A. Service Philosophy:
Our primary measure of success is customer satisfaction.
We are committed to provide our customers with continuous, long-term
improvements and value-additions to meet the needs in an exceptional way.
In our efforts to consistently deliver the best service possible to our
customers, all employees of NJ will make every effort to:
63
Think of the customer first, take responsibility, and make prompt service to
the customer a priority
Deliver upon the commitments & promises made on time
Anticipate, visualize, understand, meet, exceed our customer’s needs
Bring energy, passion & excellence in everything we do
Be honest and ethical, in action & attitude, and keep the customer’s interest
supreme
strengthen customer relationships by providing service in a thoughtful &
proactive manner and meet the expectations, effectively
B. Investing Philosophy:
We aim to provide Need-based solutions for long-term wealth
creation . We aim to provide all customers of NJ, directly or indirectly, with
true, unbiased, need-based solutions and advices that best meets their stated
& un-stated needs. In our efforts to provide quality financial & investment
advice, we believe that
Clients want need-based solutions, which fits them
Long-term wealth creation is simple and straight
Asset-Allocation is the ideal & the best way for long-term wealth creation
Educating and disclosing all the important facets which the customer needs
to be aware of, is important
The solutions must be unbiased, feasible, practical, executable, measurable
and flexible
Think of the customer first, take responsibility, and make prompt service to
the customer a priority
Deliver upon the commitments & promises made on time
Anticipate, visualize, understand, meet, exceed our customer’s needs
Bring energy, passion & excellence in everything we do
Be honest and ethical, in action & attitude, and keep the customer’s interest
supreme
strengthen customer relationships by providing service in a thoughtful &
proactive manner and meet the expectations, effectively
B. Investing Philosophy:
We aim to provide Need-based solutions for long-term wealth
creation . We aim to provide all customers of NJ, directly or indirectly, with
true, unbiased, need-based solutions and advices that best meets their stated
& un-stated needs. In our efforts to provide quality financial & investment
advice, we believe that
Clients want need-based solutions, which fits them
Long-term wealth creation is simple and straight
Asset-Allocation is the ideal & the best way for long-term wealth creation
Educating and disclosing all the important facets which the customer needs
to be aware of, is important
The solutions must be unbiased, feasible, practical, executable, measurable
and flexible
64
Constant monitoring and proper after-sales service is critical to complete the
on-going process.
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. Rakesh Tokarkar Head of Compliance Function
Constant monitoring and proper after-sales service is critical to complete the
on-going process.
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. Rakesh Tokarkar Head of Compliance Function
65
Mr. Samanvay Maniar Head of Marketing Function
Mr. Shirish Patel Head of Technology
Mr. Vinayak Rajput Head of Operations Function
AMC’S WITH NJ INDIA INVEST:
• Axis Asset Management Company Limited
• Baroda Pioneer Asset Management Co. Ltd
• Birla Sun Life Mutual Fund
• BNP Paribas Asset Management(I) Pvt. Ltd
• Boi Axa Investment Managers Private Limited
• Canada Robeco Asset Management Company Ltd.
• Deutsche Asset Management (India) Pvt. Ltd.
• DSP Blackrock Investment Managers Ltd.
• Edelweiss Asset Management Limited
• Escorts Asset Management Limited
• Franklin Templeton Asset Management (India) Pvt. Ltd.
• Franklin Templeton Mutual Fund.
• Goldman Sachs Asset Management (India) Private Limited
• HDFC AMC Ltd.
• HSBC Asset Management (India) Pvt. Ltd
• ICICI Prudential Asset Management Company Ltd
Mr. Samanvay Maniar Head of Marketing Function
Mr. Shirish Patel Head of Technology
Mr. Vinayak Rajput Head of Operations Function
AMC’S WITH NJ INDIA INVEST:
• Axis Asset Management Company Limited
• Baroda Pioneer Asset Management Co. Ltd
• Birla Sun Life Mutual Fund
• BNP Paribas Asset Management(I) Pvt. Ltd
• Boi Axa Investment Managers Private Limited
• Canada Robeco Asset Management Company Ltd.
• Deutsche Asset Management (India) Pvt. Ltd.
• DSP Blackrock Investment Managers Ltd.
• Edelweiss Asset Management Limited
• Escorts Asset Management Limited
• Franklin Templeton Asset Management (India) Pvt. Ltd.
• Franklin Templeton Mutual Fund.
• Goldman Sachs Asset Management (India) Private Limited
• HDFC AMC Ltd.
• HSBC Asset Management (India) Pvt. Ltd
• ICICI Prudential Asset Management Company Ltd
66
• IDBI Asset Management Services Ltd
• IDFC Asset Management Co. Pvt. Ltd.
• India Info line Asset Management Co. Ltd.
• India bulls Asset Management Company Limited
• ING Mutual Fund
• J P Morgan Mutual Fund
• JM Financial Asset Management Limited
• Kotak Mahindra AMC Ltd.
• L&T Investment Management Limited
• LIC Nomura Mutual Fund Asset Management Co. Ltd
• Mirae Asset Global Investments (India) Pvt. Ltd.
• Morgan Stanley Investment Management Pvt. Ltd.
• Motilal Oswal Asset Management Company Limited
• Peerless Fund Management Company Ltd.
• Pine bridge Investment Asset Management Company Private
Limited
• Ppfas Asset Management Pvt. Ltd.
• Pramerica Asset Manager Pvt. Ltd
• Principal PNB AMC Pvt. Ltd.
• Quantum Asset Management Company Private Limited
• Reliance Capital Asset Management Ltd.
• Religare Invest co Asset Management Company Private Limited
• Sahara Asset Management Company Pvt. Ltd
• SBI Funds Management Pvt. Ltd
• IDBI Asset Management Services Ltd
• IDFC Asset Management Co. Pvt. Ltd.
• India Info line Asset Management Co. Ltd.
• India bulls Asset Management Company Limited
• ING Mutual Fund
• J P Morgan Mutual Fund
• JM Financial Asset Management Limited
• Kotak Mahindra AMC Ltd.
• L&T Investment Management Limited
• LIC Nomura Mutual Fund Asset Management Co. Ltd
• Mirae Asset Global Investments (India) Pvt. Ltd.
• Morgan Stanley Investment Management Pvt. Ltd.
• Motilal Oswal Asset Management Company Limited
• Peerless Fund Management Company Ltd.
• Pine bridge Investment Asset Management Company Private
Limited
• Ppfas Asset Management Pvt. Ltd.
• Pramerica Asset Manager Pvt. Ltd
• Principal PNB AMC Pvt. Ltd.
• Quantum Asset Management Company Private Limited
• Reliance Capital Asset Management Ltd.
• Religare Invest co Asset Management Company Private Limited
• Sahara Asset Management Company Pvt. Ltd
• SBI Funds Management Pvt. Ltd
67
• Shriram Mutual Fund
• Sundaram BNP Paribas AMC Ltd.
• Tata Asset Management Ltd.
• Taurus Asset Management Co. Ltd
• Union KBC Asset Management Co Pvt. Ltd
• UTI Asset Management Company Ltd.
AWARDS AND RECOGNITIONS:
Year 2000;-
For outstanding performance presented by Chairman, Prudential Plc. At
London
Year 2002;-
For outstanding performance presented by Group Chief Executive,
Prudential Plc. At London
Year 2003;-
For outstanding performance presented by Group Chief Executive,
Prudential Plc. At London
• Shriram Mutual Fund
• Sundaram BNP Paribas AMC Ltd.
• Tata Asset Management Ltd.
• Taurus Asset Management Co. Ltd
• Union KBC Asset Management Co Pvt. Ltd
• UTI Asset Management Company Ltd.
AWARDS AND RECOGNITIONS:
Year 2000;-
For outstanding performance presented by Chairman, Prudential Plc. At
London
Year 2002;-
For outstanding performance presented by Group Chief Executive,
Prudential Plc. At London
Year 2003;-
For outstanding performance presented by Group Chief Executive,
Prudential Plc. At London
68
Year 2004;-
Among Most Valued Business Associates presented by HDFC Standard
Life at Edinburgh, Scotland
Year 2005:-
Award for Mobilizing the Highest Number of Sips at National Level by
Fidelity Mutual Fund at Mumbai
Year 2006;-
Award-Vietnam------------
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:
• Mutual Fund
• Real Estate
• Insurance
• TADA (Trading and Demat Account)
Year 2004;-
Among Most Valued Business Associates presented by HDFC Standard
Life at Edinburgh, Scotland
Year 2005:-
Award for Mobilizing the Highest Number of Sips at National Level by
Fidelity Mutual Fund at Mumbai
Year 2006;-
Award-Vietnam------------
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:
• Mutual Fund
• Real Estate
• Insurance
• TADA (Trading and Demat Account)
69
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. Operation Department:-
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:
• Transaction
• Registration
• 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 offices
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. Operation Department:-
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:
• Transaction
• Registration
• 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 offices
70
Activities carried out by IT department:
• Partner Desk
• Client Desk
• E-Wealth
• 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.
Activities carried out by IT department:
• Partner Desk
• Client Desk
• E-Wealth
• 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.
71
6. Brokerage Department:-
There is an also brokerage department available at Head Office which
represents all entries related to Upfront and Trail brokerage.
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
NJ BizMall.
Activities performed by Marketing Department are given below:
• Holding
• Flyer
6. Brokerage Department:-
There is an also brokerage department available at Head Office which
represents all entries related to Upfront and Trail brokerage.
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
NJ BizMall.
Activities performed by Marketing Department are given below:
• Holding
• Flyer
72
• Visting card
• Canopy
• Mobile Communication Services
• Website
his department provide all type product which help in branding of the
partner.
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
• Visting card
• Canopy
• Mobile Communication Services
• Website
his department provide all type product which help in branding of the
partner.
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
73
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
12. Customer Care Department:-
It is a department that provides better solutions to the problem and query of
clients.
It is a separate department which provides Training & Education
related to AMFI, CFP, IRDA related training.
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
12. Customer Care Department:-
It is a department that provides better solutions to the problem and query of
clients.
It is a separate department which provides Training & Education
related to AMFI, CFP, IRDA related training.
74
CHAPTER-4
About the topic
CHAPTER-4
About the topic
75
About the topic
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 Kanpur 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.
About the topic
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 Kanpur 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.
76
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 0.5% of commission till the customer invests. So
earning opportunities is very high in mutual fund.
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 0.5% of commission till the customer invests. So
earning opportunities is very high in mutual fund.
77
SWOT ANALYSIS
STRENGTHS-
• 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
30000 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.
WEAKNESS-
• 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.
SWOT ANALYSIS
STRENGTHS-
• 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
30000 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.
WEAKNESS-
• 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.
78
• 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
• 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
79
CHAPTER-5
Research Methodology
CHAPTER-5
Research Methodology
80
Research methodology
1. Research Objective:-
Primary Objective:
• To study the awareness about Mutual Fund among IFA (Individual
Financial Advisors) of Kanpur 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 no
Business.
• To know Mutual Fund business can beat Life Insurance Business
• To find how many are ready to convert as mutual fund advisor
2. 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.
Research methodology
1. Research Objective:-
Primary Objective:
• To study the awareness about Mutual Fund among IFA (Individual
Financial Advisors) of Kanpur 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 no
Business.
• To know Mutual Fund business can beat Life Insurance Business
• To find how many are ready to convert as mutual fund advisor
2. 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.
81
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.
3. Data Type:
There are mainly two sources for collection of data is used that is primary as
well as secondary data.
4. Data collection tools:
Primary Source Information
• Obtaining data by Financial Advisors
Secondary Source Information
• Internal: Companies internal information & Database
• External: Books, Magazine, journals.
5. Sampling Plan:-
Sampling technique:
For this research Convenience sampling had used for data collection
purpose.
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.
3. Data Type:
There are mainly two sources for collection of data is used that is primary as
well as secondary data.
4. Data collection tools:
Primary Source Information
• Obtaining data by Financial Advisors
Secondary Source Information
• Internal: Companies internal information & Database
• External: Books, Magazine, journals.
5. Sampling Plan:-
Sampling technique:
For this research Convenience sampling had used for data collection
purpose.
82
Sample Size:
For this survey 100 Financial Advisors of Kanpur city to have better idea
and representative of the population being surveyed.
Research Instrument:
A detailed questionnaire had used for purpose of survey
6. Data analysis tool:
• Microsoft Excel for the data analysis.
• Tables and Charts for Graphical Representation.
7. Sampling Area:
Kanpur City
8. Time Frame:
6 weeks
Sample Size:
For this survey 100 Financial Advisors of Kanpur city to have better idea
and representative of the population being surveyed.
Research Instrument:
A detailed questionnaire had used for purpose of survey
6. Data analysis tool:
• Microsoft Excel for the data analysis.
• Tables and Charts for Graphical Representation.
7. Sampling Area:
Kanpur City
8. Time Frame:
6 weeks
83
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
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
84
CHAPTER 6
Data Analysis & Interpretation
CHAPTER 6
Data Analysis & Interpretation
85
Q1. Your age group is?
AGE
PARTICULARS NO. of advisors
20-30 46
30-40 16
40-50 13
50-60 14
60-ABOVE 11
TOTAL 100
Q1. Your age group is?
AGE
PARTICULARS NO. of advisors
20-30 46
30-40 16
40-50 13
50-60 14
60-ABOVE 11
TOTAL 100
86
From the above table we can say that awareness for investment in
youngster has been increased & that’s why out of 100, 46% are youngster
who do investment and they come in the age group of 20-30, then comes age
group of 30-40 from which 16% people do investment and other age group
are 40-50 where they do investment of 13%, 14%belongs to age group of
50-60 they do the investment, and 11%belongs to the age group of60-above
they do their investment. We can say that youngsters are more careful for
their investment.
46%
16%
13%
14%
11%
Age group
20-3031-4041-5051-6060 above
From the above table we can say that awareness for investment in
youngster has been increased & that’s why out of 100, 46% are youngster
who do investment and they come in the age group of 20-30, then comes age
group of 30-40 from which 16% people do investment and other age group
are 40-50 where they do investment of 13%, 14%belongs to age group of
50-60 they do the investment, and 11%belongs to the age group of60-above
they do their investment. We can say that youngsters are more careful for
their investment.
46%
16%
13%
14%
11%
Age group
20-3031-4041-5051-6060 above
87
Q2. what is your occupation?
Occupation No. of advisors
Business 28
Service 16
Profession 56
TOTAL 100
28%
16%
56%
occupation
Businessserviceprofession
Q2. what is your occupation?
Occupation No. of advisors
Business 28
Service 16
Profession 56
TOTAL 100
28%
16%
56%
occupation
Businessserviceprofession
88
From the above table we can say that the persons who were in financial
services some one of them have side occupations also. 56% advisors whose
occupation and profession is same in advisory and 28% advisers having
some business and 16% having some services.
Q3 what is your monthly income?
Bellow 20000 34
20000-30000 46
30000-40000 10
40000-50000 6
Above 50000 4
TOTAL 100
From the above table we can say that the persons who were in financial
services some one of them have side occupations also. 56% advisors whose
occupation and profession is same in advisory and 28% advisers having
some business and 16% having some services.
Q3 what is your monthly income?
Bellow 20000 34
20000-30000 46
30000-40000 10
40000-50000 6
Above 50000 4
TOTAL 100
89
From 100 people 34% have monthly income bellow 20000, 46% have
between 20000-30000, 10% have between 30000-40000 and 6% have
between 40000-50000, 4% have above to 50000 income monthly.
34%
46%
10%
6%
4%
Income
bellow 200002000-30000 30000-40000 40000-50000 above 50000
From 100 people 34% have monthly income bellow 20000, 46% have
between 20000-30000, 10% have between 30000-40000 and 6% have
between 40000-50000, 4% have above to 50000 income monthly.
34%
46%
10%
6%
4%
Income
bellow 200002000-30000 30000-40000 40000-50000 above 50000
90
Q4. Are you aware about mutual fund?
62%
38%
yesno
PARTICULARS No. of advisors
YES 38
NO 62
Q4. Are you aware about mutual fund?
62%
38%
yesno
PARTICULARS No. of advisors
YES 38
NO 62
91
From 100 people 62% of them are aware about mutual fund and
42% of them are not aware about mutual fund but they do investment in
other sectors for which information is given in the next Question.
Q5. your other preference for Investment?
INVESTMENT PROPORTION EXCEPT MF?
PARTICULARS NO
INSURANCE 33
EQUIYTY MARKET 43
GOVT. SCHEME 16
REAL ESTATE 6
COMMODITIES 2
TOTAL 100.00
From 100 people 62% of them are aware about mutual fund and
42% of them are not aware about mutual fund but they do investment in
other sectors for which information is given in the next Question.
Q5. your other preference for Investment?
INVESTMENT PROPORTION EXCEPT MF?
PARTICULARS NO
INSURANCE 33
EQUIYTY MARKET 43
GOVT. SCHEME 16
REAL ESTATE 6
COMMODITIES 2
TOTAL 100.00
92
People who were not investing in mutual fund they do invest in sectors like
insurance, equity market, government schemes (includes banks, bonds
&other scheme ), real estate, commodities even people those who do invest
in mutual fund they also invest in different sectors. Out of 100%, 43%
people do invest in equity market, 33% invest in insurance, 16% in
government scheme, 6% do invest in real estate and 2% do invest in
commodities. People do invest in equity market due to higher returns
available in it.
33%
43%
16%
6%
2%
Investor's Investment Prefrences
INSURANCE EQUIYTY MARKET GOVT. SCHEME REAL ESTATECOMMODITIES
People who were not investing in mutual fund they do invest in sectors like
insurance, equity market, government schemes (includes banks, bonds
&other scheme ), real estate, commodities even people those who do invest
in mutual fund they also invest in different sectors. Out of 100%, 43%
people do invest in equity market, 33% invest in insurance, 16% in
government scheme, 6% do invest in real estate and 2% do invest in
commodities. People do invest in equity market due to higher returns
available in it.
33%
43%
16%
6%
2%
Investor's Investment Prefrences
INSURANCE EQUIYTY MARKET GOVT. SCHEME REAL ESTATECOMMODITIES
93
Q6. would you like to know about Mutual Fund?
Yes 30 30
No 70
Total 100
13%
87%
yesno
Q6. would you like to know about Mutual Fund?
Yes 30 30
No 70
Total 100
13%
87%
yesno
94
From 100 people there are 30% would like to know about Mutual Fund
and 70% would not like to know about Mutual Fund. There are some people
who investing in Mutual Fund but interested to know more about Mutual
Fund. On the other hand some people are not aware about Mutual Fund and
still no interested to know.
Q7. Are you aware about ‘NJ Wealth Advisors Network in Kanpur’ ?
Awareness about NJ India Invest
Yes 13
No 87
Total 100
16%
84%
yesno
From 100 people there are 30% would like to know about Mutual Fund
and 70% would not like to know about Mutual Fund. There are some people
who investing in Mutual Fund but interested to know more about Mutual
Fund. On the other hand some people are not aware about Mutual Fund and
still no interested to know.
Q7. Are you aware about ‘NJ Wealth Advisors Network in Kanpur’ ?
Awareness about NJ India Invest
Yes 13
No 87
Total 100
16%
84%
yesno
95
Only 13% people are aware about ‘NJ Wealth Advisors Network ’ and 87%
are not aware about ‘NJ Wealth Advisors Network’.
Q8. Are you aware about commission structure of Mutual
Fund Schemes?
YES 22
NO 78
TOTAL 100
22%
78%
yesno
Only 13% people are aware about ‘NJ Wealth Advisors Network ’ and 87%
are not aware about ‘NJ Wealth Advisors Network’.
Q8. Are you aware about commission structure of Mutual
Fund Schemes?
YES 22
NO 78
TOTAL 100
22%
78%
yesno
96
Interpretation:
From the total 100 respondent in 22% aware about commission
structure of Mutual Fund Schemes remaining 78% doesn’t know.
Q9. Would you like to attend business opportunity seminar of
NJ to know more about Mutual Fund business?
YES 49
NO 51
49%
51%
yesno
Interpretation:
From the total 100 respondent in 22% aware about commission
structure of Mutual Fund Schemes remaining 78% doesn’t know.
Q9. Would you like to attend business opportunity seminar of
NJ to know more about Mutual Fund business?
YES 49
NO 51
49%
51%
yesno
97
Interpretation:
From the total 100 respondent in 49 respondent like to attend business
opportunity seminar of NJ and 51 respondents are saying no.
Q10. If, No then why you do not wish to sell Mutual fund to
your existing clients?
Reason No. of Financial Advisor
It is risky. 34
Value pack is costly. 14
Doubt in clearing exam. 20
Do not find much time. 12
Revenue is not lucrative. 2
Not having enough knowledge about
Mutual Funds.
13
Other reason pls. Specify. 5
Interpretation:
From the total 100 respondent in 49 respondent like to attend business
opportunity seminar of NJ and 51 respondents are saying no.
Q10. If, No then why you do not wish to sell Mutual fund to
your existing clients?
Reason No. of Financial Advisor
It is risky. 34
Value pack is costly. 14
Doubt in clearing exam. 20
Do not find much time. 12
Revenue is not lucrative. 2
Not having enough knowledge about
Mutual Funds.
13
Other reason pls. Specify. 5
98
Interpretation:
Form of the above chart in we can see that 34% respondent said that it is
risky, the 14% respondent said that the value pack is costly,20% respondent
having doubt in clearing exam,12% respondent have no time,13%
respondent not having knowledge about mutual fund.
34%
14%
20%
12%
2%
13%
5%
it is risky
value pack is costly
doubt in clearing exam
do not find much time
revenue is not incrative
not having enough
knowledge about MF
other reason please specify
Interpretation:
Form of the above chart in we can see that 34% respondent said that it is
risky, the 14% respondent said that the value pack is costly,20% respondent
having doubt in clearing exam,12% respondent have no time,13%
respondent not having knowledge about mutual fund.
34%
14%
20%
12%
2%
13%
5%
it is risky
value pack is costly
doubt in clearing exam
do not find much time
revenue is not incrative
not having enough
knowledge about MF
other reason please specify
99
CHAPTER 7 :
Findings
CHAPTER 7 :
Findings
100
Findings
1. Most of the respondent have more than 5 year of experience as an financial
advisors
2. Majority of the financial advisors are selling insurance to their Friends and
relative members.
3. Male financial advisors are more interested in Mutual Fund Business rather
than Female financial advisors.
4. Most of financial advisors have 0 to 1000 client base.
5. 34 % financial advisors are believe that mutual fund is risky product
6. Only 38 % financial advisors are aware about return of mutual fund.
7. Only 22% financial advisors are aware about commission of mutual fund.
8. Many financial advisors are connected with insurance sector
9. Financial advisors give more importance e to safety and return attributes
Findings
1. Most of the respondent have more than 5 year of experience as an financial
advisors
2. Majority of the financial advisors are selling insurance to their Friends and
relative members.
3. Male financial advisors are more interested in Mutual Fund Business rather
than Female financial advisors.
4. Most of financial advisors have 0 to 1000 client base.
5. 34 % financial advisors are believe that mutual fund is risky product
6. Only 38 % financial advisors are aware about return of mutual fund.
7. Only 22% financial advisors are aware about commission of mutual fund.
8. Many financial advisors are connected with insurance sector
9. Financial advisors give more importance e to safety and return attributes
101
10. Financial Advisors who were not suggesting their clients to invest in mutual
fund due to lack of knowledge of Mutual Fund.
11. Brokerage is very low in Mutual Fund in comparison to insurance
12. Advisors don’t want to AMFI certified because they have to study and they
think to fee is more as compare to LIC.
10. Financial Advisors who were not suggesting their clients to invest in mutual
fund due to lack of knowledge of Mutual Fund.
11. Brokerage is very low in Mutual Fund in comparison to insurance
12. Advisors don’t want to AMFI certified because they have to study and they
think to fee is more as compare to LIC.
102
CHAPTER 8 :
Conclusion
CHAPTER 8 :
Conclusion
103
Conclusion
A mutual fund is a type of professionally managed collective
investment vehicle that pools money from many investors to purchase
securities. The mutual fund industry in India started in 1963 with the
formation of Unit Trust of India. At the end of JULY 2016, there were 56
fund players. 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).
Mutual funds are usually classified in accordance with their structure –
as closed-end or open-end. Schemes can also be grouped in terms of whether
the fund collect from investors any charges at the time of entry or exit or
both. Schemes are also be classified as being tax-exempt or non-tax-exempt.
NJ India invest, karvy, Anand rathi, Trustline etc are the leading
distributor of mutual fund in India. NJ INDIAINVEST Pvt. Ltd. is one of the
leading advisors and distributors of financial products and services in India.
Established in year 1994 NJ Product basket is Domestic mutual funds (all
AMCs), Capital Markets - direct equity and ETFs, Fixed Deposits of
companies, PMS products (Third party & NJ) Government/ RBI/
Infrastructure bonds, Residential & commercial properties.
There are some advantages in investing mutual fund like affordability,
diversification, tax benefits, variety, professional management etc. There are
Conclusion
A mutual fund is a type of professionally managed collective
investment vehicle that pools money from many investors to purchase
securities. The mutual fund industry in India started in 1963 with the
formation of Unit Trust of India. At the end of JULY 2016, there were 56
fund players. 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).
Mutual funds are usually classified in accordance with their structure –
as closed-end or open-end. Schemes can also be grouped in terms of whether
the fund collect from investors any charges at the time of entry or exit or
both. Schemes are also be classified as being tax-exempt or non-tax-exempt.
NJ India invest, karvy, Anand rathi, Trustline etc are the leading
distributor of mutual fund in India. NJ INDIAINVEST Pvt. Ltd. is one of the
leading advisors and distributors of financial products and services in India.
Established in year 1994 NJ Product basket is Domestic mutual funds (all
AMCs), Capital Markets - direct equity and ETFs, Fixed Deposits of
companies, PMS products (Third party & NJ) Government/ RBI/
Infrastructure bonds, Residential & commercial properties.
There are some advantages in investing mutual fund like affordability,
diversification, tax benefits, variety, professional management etc. There are
104
also some disadvantages of investing in mutual fund like no control over
cost, no tailor made portfolio, delay in redemptions, non availability of
funds. Before investing in mutual fund we have to understand some risks
involved in mutual fund. Higher the risk, higher will be the chance of profit.
Some risk consider before investing are Market risk, Credit risk, Inflation
risk, interest risk etc.
Financial planning is needed before investing in mutual fund. Financial
Planning is a way not only knowing those things; it is a road map to achieve
them. Financial planning simply arranging finances keeping in mind the
financial goals. Financial planning is helpful for achieving objectives like
outflow inflow of cash, how to raise money etc.
From the above finding and result it is concluded that still lot of peoples
are not aware about the MF. The most people prefer to invest other securities
like P.O deposits, Bank deposits etc. So to make more aware about MF
companies should use the better marketing and promotional strategies.
Around 50% of the investors invest to maximize their returns and they are
ready to take moderate risks in their investment portfolio. Most of the
investors give importance to the fact that their investment should grow in
value over a period of time.
People are not aware with the benefits of MF. There is need to aware
the people about the benefit like Investor can buy in to a portfolio of
also some disadvantages of investing in mutual fund like no control over
cost, no tailor made portfolio, delay in redemptions, non availability of
funds. Before investing in mutual fund we have to understand some risks
involved in mutual fund. Higher the risk, higher will be the chance of profit.
Some risk consider before investing are Market risk, Credit risk, Inflation
risk, interest risk etc.
Financial planning is needed before investing in mutual fund. Financial
Planning is a way not only knowing those things; it is a road map to achieve
them. Financial planning simply arranging finances keeping in mind the
financial goals. Financial planning is helpful for achieving objectives like
outflow inflow of cash, how to raise money etc.
From the above finding and result it is concluded that still lot of peoples
are not aware about the MF. The most people prefer to invest other securities
like P.O deposits, Bank deposits etc. So to make more aware about MF
companies should use the better marketing and promotional strategies.
Around 50% of the investors invest to maximize their returns and they are
ready to take moderate risks in their investment portfolio. Most of the
investors give importance to the fact that their investment should grow in
value over a period of time.
People are not aware with the benefits of MF. There is need to aware
the people about the benefit like Investor can buy in to a portfolio of
105
equities, which would otherwise be extremely expensive. Investors must
spread your investment across different securities (stocks, bonds, money
market instruments, real estate, fixed deposits etc.) and different sectors
(auto, textile, information technology etc.), they can also get tax benefits.
Everybody wants to invest money, which entitled of low risk, high returns
and easy redemption.
In my opinion before investing in mutual funds, one should be fully aware
of each and everything.
equities, which would otherwise be extremely expensive. Investors must
spread your investment across different securities (stocks, bonds, money
market instruments, real estate, fixed deposits etc.) and different sectors
(auto, textile, information technology etc.), they can also get tax benefits.
Everybody wants to invest money, which entitled of low risk, high returns
and easy redemption.
In my opinion before investing in mutual funds, one should be fully aware
of each and everything.
106
CHAPTER 9 :
Recommendations / Suggestions
CHAPTER 9 :
Recommendations / Suggestions
107
Recommendation & Suggestion
1. 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.
2. MFs cannot simply attract savings by mere small investors who have
become very discerning in selecting mutual funds.
3. NJ India Invest. Should give safety attributes because insurance agents are
more concerned about safety of the investment of their client.
4. Find new Young financial advisors in this segment because they easy to
accept new technology and change.
5. They should do the activity of brand awareness as they are working in the
industry from last 21 years.
6. NJ is only dominant in Mutual Funds. They should also focus on other
financial instruments.
Recommendation & Suggestion
1. 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.
2. MFs cannot simply attract savings by mere small investors who have
become very discerning in selecting mutual funds.
3. NJ India Invest. Should give safety attributes because insurance agents are
more concerned about safety of the investment of their client.
4. Find new Young financial advisors in this segment because they easy to
accept new technology and change.
5. They should do the activity of brand awareness as they are working in the
industry from last 21 years.
6. NJ is only dominant in Mutual Funds. They should also focus on other
financial instruments.
108
7. In service sector what matters is all about providing services. Company
should try regularly to enhance their services so that it can strengthen its
market share.
8. Company should provide benefits to the loyal advisors to motivate to sell
or to loyal for long time.
9. They should create good reputation and good word of mouth to increase
the awareness about company.
10. 60% of people are willing to create long term wealth according to my
study on public. So NJ should target this 60%.
11. They can directly target general public for SIP’s. As 58% is not aware of
this.
12. Company should focus on inactive partners with proper guidance and
training.
7. In service sector what matters is all about providing services. Company
should try regularly to enhance their services so that it can strengthen its
market share.
8. Company should provide benefits to the loyal advisors to motivate to sell
or to loyal for long time.
9. They should create good reputation and good word of mouth to increase
the awareness about company.
10. 60% of people are willing to create long term wealth according to my
study on public. So NJ should target this 60%.
11. They can directly target general public for SIP’s. As 58% is not aware of
this.
12. Company should focus on inactive partners with proper guidance and
training.
109
CHAPTER
10
Limitations
CHAPTER
10
Limitations
110
Limitation
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
Limitation
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
111
CHAPTER
11 :
Bibliography
CHAPTER
11 :
Bibliography
112
Bibliography
BOOKS:
• AMFI Test Work Book
• Monthly Magazines like
• Performance Watch, (May 2016)
• Fundz Watch of NJ (May 2016)
WEBSITES:
• www. value research .com
• www.amfiindia.com
• www.sebi.com
• www.NJfundz.com
• http://www.NJgroup.in/index.php
Bibliography
BOOKS:
• AMFI Test Work Book
• Monthly Magazines like
• Performance Watch, (May 2016)
• Fundz Watch of NJ (May 2016)
WEBSITES:
• www. value research .com
• www.amfiindia.com
• www.sebi.com
• www.NJfundz.com
• http://www.NJgroup.in/index.php
113
CHAPTER
12 :
Annexure / Appendix
CHAPTER
12 :
Annexure / Appendix
114
ANNEXURE
Q1. Your age group is?
50-60 ( )
40-50 ( )
30-40 ( )
20-30 ( )
60-Above ( )
Q2. what is your occupation?
Profession ( )
Service ( )
Business ( )
Q3 what is your monthly income?
Bellow 20000 ( )
20000-30000 ( )
30000-40000 ( )
40000-50000 ( )
Above 50000 ( )
ANNEXURE
Q1. Your age group is?
50-60 ( )
40-50 ( )
30-40 ( )
20-30 ( )
60-Above ( )
Q2. what is your occupation?
Profession ( )
Service ( )
Business ( )
Q3 what is your monthly income?
Bellow 20000 ( )
20000-30000 ( )
30000-40000 ( )
40000-50000 ( )
Above 50000 ( )
115
Q4. Are you aware about mutual fund?
YES ( )
NO ( )
Q5. your other preference for Investment?
INSURANCE ( )
EQUIYTY MARKET ( )
COMMODITIES ( )
REAL EST ( )
GOVT. SC ( )
Q6. would you like to know about Mutual Fund?
Yes ( )
No ( )
Q7. Are you aware about ‘NJ Wealth Advisors Network in Kanpur’ ?
Yes ( )
No ( )
Q8. Are you aware about commission structure of Mutual
Fund Schemes?
Q4. Are you aware about mutual fund?
YES ( )
NO ( )
Q5. your other preference for Investment?
INSURANCE ( )
EQUIYTY MARKET ( )
COMMODITIES ( )
REAL EST ( )
GOVT. SC ( )
Q6. would you like to know about Mutual Fund?
Yes ( )
No ( )
Q7. Are you aware about ‘NJ Wealth Advisors Network in Kanpur’ ?
Yes ( )
No ( )
Q8. Are you aware about commission structure of Mutual
Fund Schemes?
116
YES ( )
NO ( )
Q9. Would you like to attend business opportunity seminar of
NJ to know more about Mutual Fund business?
YES ( )
NO ( )
Q10. If, No then why you do not wish to sell Mutual fund to
your existing clients?
It is risky. ( )
Value pack is costly. ( )
Doubt in clearing exam. ( )
Do not find much time. ( )
Revenue is not lucrative. ( )
Not having enough knowledge about Mutual Funds. ( )
Other reason pls. Specify. ( )
YES ( )
NO ( )
Q9. Would you like to attend business opportunity seminar of
NJ to know more about Mutual Fund business?
YES ( )
NO ( )
Q10. If, No then why you do not wish to sell Mutual fund to
your existing clients?
It is risky. ( )
Value pack is costly. ( )
Doubt in clearing exam. ( )
Do not find much time. ( )
Revenue is not lucrative. ( )
Not having enough knowledge about Mutual Funds. ( )
Other reason pls. Specify. ( )
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