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This is to certify that Mr. Kamal Agrawalla Regd. No.: 1406284033 a student of
Master in Business Administration from Astha School of Management has
done his summer training in our organization NJ India Invest Pvt. Ltd. at
Bhubaneswar Branch. The training commenced from 15 th June 2015 and was
completed on 31st July, 2015.
The project work is entitled A study on Mutual Fund as a Wealth
Creation Tool embodies the original work done by during his summer training
period.
BONAFIDE CERTIFICATE
This is to certify that the project report titled A study on Mutual Fund as a Wealth
Creation Tool is a bonafide and original work of Mr. Kamal Agrawalla a student of
MBA, Batch 2014-16, bearing Regd. No. 1406284033. Certified further, that to the
best of my knowledge the work reported herein does not form part of any other
project report or dissertation on the basis of which a degree or award was conferred
on an earlier occasion on this or any other candidate.
Signature of Guide
Candidate Signature
Date:
DECLARATION
I, Kamal Agrawalla hereby declare that the project report titled A study on
Mutual Fund as a Wealth Creation Tool is a genuine research work undertaken
by me and it has not been published anywhere earlier.
Date:
Place:
Kamal Agrawalla
ACKNOWLEDGEMENT
I would like to express my gratitude to all those who gave me the opportunity
to complete this project. I would like to thank my Institute authorities and my
Internal guide Prof. Mr. Sandeep Mishra first for providing me the opportunity to
work with one of the most prestigious organization.
I would like to thank the Company Guide Mr. Krushna Chandra Kar and
other executive of
NJ INDIA INVEST PVT. LTD. who gave and confirmed this
permission and encouraged me to go ahead with my training. I want to thank the
Branch Manager Mr. Manoranjan Sahoo for giving me permission to commence
this summer training project in the first instance.
Kamal Agrawalla
INTRODUCTION
The first introduction of a Mutual Fund in India occurred in 1963, when the Govt. of India launched Unit
Trust of India (UTI). Until 1987, UTI enjoyed a monopoly in the market. Then a host of other
government-controlled Indian financial companies came up with their own funds. These included state
bank of India, Canara Bank, and Punjab National Bank. This market was made upon to private payers in
1993, as a result of the historic constitutional amendments brought forward by the then congress-led
government under the existing regime of Liberalization, Privatization and Globalization (LPG). The first
private sector fund to operate in India was Kothari pioneer, which later merged with Franklin Templeton.
An Investment vehicle that is made up of a pool of funds collected from many investors for the
purpose of Investing in securities such as stock, bonds, money market instrument and similar assets.
Mutual funds are operated by money managers, who invest the funds capital and attempt to produce
capital gains and income for the funds investors. A mutual funds portfolio is structured and maintained to
match the investment objective stated in its prospectus.
A Mutual fund advisor is essentially a person who provides advisory and/or distribution services
in Mutual funds. Normally he is a person who sells schemes of multiple fund houses.
The person or company responsible for making investments on behalf of, and/or providing, advises to
investors.
In the context of mutual fund business, an advisor also known as an investment advisor is an organization
employed by an investment company to manage a particular funds portfolio. A funds advisor assigns a
manager(s) to make the day to day decision in the purchase and sale of a funds securities according to
stated strategies and investment objectives.
Objectives:
To find out the Investment preference in Mutual Fund of the respondent.
To check the percentage of respondent aware about Mutual Fund.
To find out the best fund in different category and there performance.
HEAD OFFICE
BRANCH OFFICE
th
Plot No.1258,
Chandan Villa,
Unit-9, Road No 8,
Surat- 394210
City: Bhubaneswar-751022
Gujarat
State: Odisha
Country: India
Phone: 91-674-3261103
NJ Funds Network
NJ Funds 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 and
continuity of business. It provides the Financial advisors and the institutions that serve them with insights,
strategies and tools to help them significantly growth their businesses. How do we do it? Thats because
we understand how financial and wealth management businesses work and what is needed to manage,
monitor and grow the practice.
Vision and Mission
Vision:
Mission:
They work towards building trusted relationship with our stakeholders, for inclusive growth through
constant process of innovation; time bound implementation and execution of ideas and technological
developments. They stretch our means and go overboard to make sure that our clients aspirations, dreams
and expectation are met with, through high service standards.
BUSINESS MODULE OF NJ
AMC
NJ
PARTNE
R
CLIENT
Values
At NJ their service and investing thinking is inspire and shape the thoughts, attitude, actions and decisions
of their employees. If NJ would beliefs, at NJ our service and investing idea inspire and shape resembles
a body; our philosophy would be our spirit which drives their body.
Service viewpoint:
Their primary measure of success is customer satisfaction. Their committed to provide their customers
with continuous, long-term improvements and value-additions to meet the needs in an exceptional way. In
their efforts to consistently deliver the best service possible to their customers, so that all employees of NJ
will make every effort to:
Think of customer first, take responsibility, and make promote service to the customer a priority.
Deliver upon the commitments and promises made on time.
Anticipate, visualize, understand, meet, exceed their customer needs.
Bring energy, passion and excellence in everything they do.
Be honest and ethical, in action & attitude, and keep the customers
Interest supreme.
Strengthen customer relationships by providing service in a thoughtful and proactive manner and
meet the expectation and effectively.
Investing Viewpoint
They aim to provide need-based solution for long-term wealth creation they aim to provide all customers
of NJ, directly or indirectly, with true, unbiased, need-based solution and advise that best meets their
stated & un-stated needs. In their efforts to provide quality.
At NJ their aim is to earn the trust and respect of the employees, customers, partners, regulators and the
community at large by following their service and investing philosophy with commitment and without
exceptions.
Management:
The Management at NJ brings together a team of people with wide experience and knowledge in
the financial services domain. The management provides direction and guidance to the whole
organization. The Management has strong visions for NJ as a globally respected company providing
comprehensive services in financial sector.
The Customer First philosophy in deeply ingrained in the management at NJ. The aim of the
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.
People & Culture:
People:
Enthusiasm, Enterprise, Education and Ethics form the four pillars at NJ. At NJ one can witness
the vibrant energy, enthusiasm and enterprising drive to excel flowing freely throughout the
organization. At NJ can also experience the creativity, one-to-one responsiveness, collaborative
NJ understands that the people are the most important assets of the company and it is not the
company that grows but the people. NJ hence undertakes rigorous training and educational
Culture:
At NJ they believe in transforming the lives of their customers. They exist to create a difference-a
organization, from top to bottom. Employees are given ample freedom in their work.
The objective is to keep an open, healthy environment with ample scope for enterprise,
improvement, innovations and out-of-the box efforts are constantly engaged in improving our
existing services, offering new and innovative solutions that go beyond your expectations. This
focus has made them one of the most respected and preferred service providers, especially in the
mutual fund industry.
Service Standards
Service in words, service in action
Service is the key to unlocking customer satisfactions, which again is key for sustainability of any
business. At NJ they understand this very well. NJ has set strict processes in place to deliver quality
services to customers. At NJ strict quality service standards are set and a well-defined Performance is
evaluated on a frequent basis and glitches are ironed out. But quality service also involves quality people
in addition to processes. NJ gives significant focus to the proper training and development of the people
involved in the service delivery chain.
The NJ Wealth Advisors Network is among Indias largest and most successful network of
advisor in the financial services industry. The NJ wealth advisory platform is a comprehensive
360o platform offering end-to-end solutions required for a successful wealth advisory practice.
Started in 2003 the network seeks to reach out to the common man and extend the opportunity to
Product basket
Partner services
Asset Management
NJ has ventured in asset management business with NJ Advisory Services Pvt. Ltd., a group
doing so in the best possible manner. Our conviction, matched by our passion and expertise, is all
about ensuring the peace of mind of the investors. The PMS products currently offered are aimed
at meeting investors need for successful long-term wealth creation by following strategies that
Products:
1. Freedom Portfolio:
Objective: To stay invested in equity mutual fund schemes at all times, deliver superior portfolio
returns by selecting better performing schemes and encasing on opportunities offered by market.
2. 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.
Key customer services:
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,
legal due diligence, land acquisition, planning & execution of projects and managing sales and
distribution through NJ Wealth Advisors Network.
As a developer, Investor or land owner, one may be keen to execute realty projects, but may not
be equipped with the right skill-sets, contacts, experiences and know-how far the undertaking.
This is where NJ Realty can associate and help in shaping up the realty programs. NJ realty has
acquired considerable experience in program management and is also currently engaged in
Insurance Broking
NJ Insurance Broking Pvt. Ltd., a licensed insurance broker by IRDA, seeks to provide customers
Product basket:
Information Technology
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
businesses.
NJ Technologies now seeks to leverage these in-house skills and expertise to help other
businesses find solutions for their business challenges. At NJ Technologies, we are keen to adopt
the latest and the best practices from the industry in delivering solutions that really work for
businesses.
The NJ Gurukul is a venture aimed at providing at valuable training and education support to the
young, emerging talent pool in India. Started in year 2007, NJ Gurukul today offers a very wide
NJ Gurukul is an authorized Education Provider (EP) with FPSB India to deliver training for the
prestigious Certified Financial Planner- CFPCM Certification. NJ Gurukul is also amongst the
largest trainers of Mutual Fund Distributors in India.
NJ Client Desk
Managing wealth is not easy, especially with the ever growing needs and products. In this fast paced
world, there is a needed for simplicity and consolidation. The need is to stay ahead, stay in control.
NJ Client Desk offers you a comprehensive, flexible account which consolidates all your portfolio
information in a single window in a simple lucid manner. It keeps you informed of key features of Client
Desk.
1. Online Access
Now you can store all your portfolio, transaction information in multiple products through NJ
Client Desk and get access anytime, anywhere
2. Meaningful Portfolio Reports
It enables you to accede insightful reports that you need to know about your portfolio and take
informed investment decisions.
I.
Partner Zone
NJ Fundz Network, leading financial advisor & wealth advisors network India provides platform for
Investments Advisory Services is delighted to offers a multiple product range for your customers with 360
degree support in Technology, Sales, Marketing, Customer, Training & Research which can take your
advisory to the next level and will give you an edge over your competitors:
1.1 Technology Support
At NJ, through our technological platform we try to increase our deliverables for our business
partners and their investors.
Through our technological platform, you get multiple types of reports like valuation reports,
business MIS reports, revenue reports and other customized businesses reports to keep track of
your growing business.
It also allows you to do online transactions with minimal human interventation.
1.2 Sales Support
As building yours brand in the market is very important in todays competitive world, NJ through
its exclusive sales support helps you to increase your visibility in the market place that can be
useful in your branding exercise.
Every NJ Fundz Network partner is provided with a Relationship Manager who remains in touch
with him on a regular basis to provide all necessary information and support of providing sales
materials, application forms etc. Apart from regular sales support on a daily basis,
1.3 Marketing Support
Marketing your services and products is another important aspect of growing your business. NJ
understands this need and provides market support through NJ print shop. NJ print shop provides multiple
branding materials which you can order through your partner desk. Few of the marketing material
available are:
I.4 NJ Does
Regular sales meet for your clients
Regular partner meet by investing an industry expert to gain market insight.
Doing joint calls for you whenever required
I.5 Customer Support
As it rightly said that Customer is King & solving all your clients investment related queries is
easy & just a phone call away as our customer care executives remain available to answer and
solve your queries in NJ customer care No- 1800-2000-155.
I.6 Training Support
Through NJ Gurukul, we conduct training sessions for our partners and their employees to impart
technical skis and techniques. These training programs can also be tailor made and customized. For
instance, NJ Gurukul provides CPF training, Mutual fund Advisor training to Independent financial
advisors in India & also helps AMFI aspirants to appear for AMFI exam.
NJs research team puts hard work behind deciding recommended set of scheme for partners and
investors.
Characteristics:
A Mutual Fund actually belongs to the Investors who have pooled their funds.
A Mutual Fund is managed by Investment Professionals and other service providers, who earn a
fee for their services, from the fund.
The pool of the fund is invested in a portfolio of Marketable Investments. The value of the
Portfolio is updated every day.
A Mutual Fund is a trust that pools the savings of a number of Investors who share a common financial
goal. The money thus collected is then invested in capital market instruments such as shares, debentures
and other securities. The income earned through this investments and the capital appreciation realized are
shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the
most suitable investment for the common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost. The flow chat below describes
broadly the working of a Mutual Fund:
portfolio is minimal. As a result, an index fund generally has lower management costs than other
types of funds.
2. Growth Fund
A Growth fund invests in the stock of companies that are growing rapidly. Growth companies tend to
invest all or most of their profits for research and development rather than pay dividends. Growth
Fund is focused on generating capital gains rather than income.
3. Value Fund
This is a fund that invests in value stocks. Companies rated as value stocks usually are older,
established businesses that pay dividends.
4. Sector Fund
A fund that invests in one area of industry is called a sector fund. Most sector funds have a minimum
of 25% of their assets invested in its specialty. These funds offer high appreciation potential, but may
also pose higher risk to the investor. Examples include Gold Funds (Gold minimum stock),
Technology Funds and Utility Funds.
5. Income Funds
An equity income fund stresses current income over growth. The funds objective may be
accomplished by investing in the stocks of companies with long histories of dividend payments such
as utility stocks, blue-chip stocks, and preferred stocks.
Option income funds invests in securities on which options may be written and earned premium
income from writing options they may also earn capital gains from trading options at a profit. These
funds seek to increase total return by adding income generated by the options to appreciation on the
securities held in the portfolio.
6. Balanced Fund
Balanced funds invest in stocks for appreciation and bonds for income. The goal is to
provide a regular income payment to the fund holder, while increasing its principal
7. Asset Allocation Fund
These funds split investments between growth stocks, income stocks/bonds, and money market
instruments or cash for stability. Fund advisers switch the percentage of holding in each asset
category according to the performance of that group.
Example: A fund may have 60% invested in stocks, 20% in bonds, and 20% in cash or money
market. If the stock market is expected to do well, that could switch to 80% stocks and 10% each
in both bond and cash investments. Conversely, if the stock market is expected to perform poorly,
the fund would decrease its stock holdings.
8. Fund Of Funds
Fund of funds implies that the assets of a fund are other funds. The other funds may be stock
funds, in which case the original fund can be called fund of stock funds. See fund of funds.
9. Hedge Funds
Hedge Fund is a legal structure. Hedge funds often trade stocks, but may trade or invest in
anything else depending on the fund. This is done to reduce the risk of investments in stocks.
The mutual fund has a structure which is regulated by SEBI and the association of Mutual Funds of India
(AMFI) plays an advisory role for the mutual funds. There are lot of entities involved in between Unit
Holders and SEBI which includes Sponsors, Trustees, Asset Management Company(AMC), Mutual Fund,
Transfer Agent and Custodian.
Basically there are only two types of mutual fund in the industry:
Open Ended
Close Ended
Open ended funds are those where investors sell and repurchases units at all times, commonly known as
Unit Trusts in UK and mutual fund in USA.
Close ended funds are generally fixed as it makes a one-time sell of fixed no. of units, known as
Investment Trusts in UK and Investment Company in USA.
There on Mutual Funds have been divided into more subcategories Load and No-load funds, Tax-exempt
and Non-tax-exempt, money market/liquid funds, Gilt funds, diversified debt funds, focused debt funds,
High yield debt funds, Assured return funds, Fixed term plan series, Equity funds and so on.
The diversification has been broadened with the revolution and Mutual Fund has become a major
Investment destination by yielding more returns. I would like to conclude the article with a note that
Mutual Fund as an Investment destination is gaining momentum and in future Mutual Fund must emerged
as a strong capital appreciation tool for the purpose of Financial Planning.
Sponsor:
The sponsor is akin to a promoter of a company as he gets the Mutual Funds registered with SEBI. The
Sponsor is defined under SEBI regulation as a person who, acting alone or on combination with another
body corporate, establishes a Mutual Fund. The sponsor forms a trust, appoints the board of trustees, and
has the right to appoint the Asset Management Company (AMC) or Fund Manager.
Trustees:
The Mutual Fund can be managed by a board of trustees or a trustee company. The board of trustees is
governed by the Indian Trust Act whereas a trust company is governed by the Companies Act, 1956. The
trustees act as a protector of unit holders interests. They do not directly manage the portfolio of securities
and appoint an AMC (with approval of SEBI) for fund management. If an AMC wishes to float additional
or different schemes, it will need to be approved by the trustees.
Trustees play a critical role in ensuring full compliance with SEBIs requirements.
The AMC is appointed by trustees for managing fund schemes and corpus. An AMC functions under the
supervision of it own board of directors and also under the direction of trustees and SEBI. The market
regulator has mandated the limit of independent directors to ensure independence in AMC workings.
The major obligations of AMC include: Ensuring investments in accordance with the trust deed,
providing information to the unit holders on matters that substantially affect their interest, adhering to risk
management guidelines as given by the Associations of Mutual Funds in India and SEBI, timely
disclosures to unit holders on sell and repurchase, NAV, portfolio details, etc.
ABN AMRO Mutual Fund:ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN AMRO
Trustee (India) Pvt. Ltd. As the Trustee company. The AMC, ABN AMRO Asset
management (India) Ltd. was incorporated on November 4, 2003. Deutsche
bank A G is the custodian of ABN AMRO Mutual fund.
Birla sun life Mutual fund:Birla Sun Life Mutual Fund is a joint venture between the Aditya Birla
Group and the Sun Life Financial Services Inc. of Canada. The joint venture
brings together the Aditya Birla Group's experience in the Indian market and
Sun Life's global experience.
Established in 1994, Birla Sun Life Mutual fund has emerged as one of India's
leading flagships of Mutual Funds business managing assets of a large
investor base. Our solutions offer a range of investment options, including
diversified and sector specific equity schemes, fund of fund schemes, hybrid
and monthly income funds, a wide range of debt and treasury products and
offshore funds.
BARODA PIONEER MUTUAL FUND:A partnership of two heritage companies, Pioneer and Bank of
Baroda.
Fund and the AMC is called Baroda Pioneer Mutual Fund and Baroda Pioneer
Asset Management Company Limited respectively.
HDFC Mutual funds:HDFC Asset Management Company Ltd (AMC) was incorporated
under the Companies Act, 1956, on December 10, 1999, and was approved
to act as an Asset Management Company for the HDFC Mutual Fund by SEBI
vide its letter dated July 3, 2000.
ING VYSYA Mutual fund:ING VYSYA Mutual Fund was setup on February 11, 1999 with the
same name trustee company. It is a joint venture of VYSYA and ING. The
AMC, ING Investment management (India) Pvt. Ltd. was incorporated on April
6, 1998.
ICICI PRUDENTIAL mutual fund:ICICI Prudential Asset Management Company Ltd. (IPAMC/ the
Company) is the joint venture between ICICI Bank, a well-known and trusted
name in financial services in India and Prudential Plc, one of UKs largest
players in the financial services sectors. IPAMC was incorporated in the year
1993. The Company in a span of over 18 years since inception and just over
13 years of the Joint Venture has forged a position of preeminence in the
Indian Mutual Fund industry as the third largest asset management company
in the country, contributing significantly to the growth of the Indian mutual
fund industry.
SAHARA Mutual fund:Sahara India Financial Corporation Limited, (SIFCL) is the flagship
company of Sahara India Group. Incorporated in 1987, SIFCL is the First
Residuary Non-Banking Company (RNBC) in India that has been granted
certificate of registration by RBI and is considered to be a leading public
deposit mobilization company in the Private sector. The Sahara India Group
has over the years emerged as a multi-service and multi-product business
conglomerate with diverse interests in fields such as Life Insurance, Para
banking, Housing, Infrastructure & Tourism, Consumer Products, Media &
Entertainment.
Finance,
Infrastructure
and
Housing,
Media
and
entertainment, Consumer Products, Manufacturing, Services and Trading
Tata Mutual Fund:Kotak Mahindra is one of India's leading financial institutions, offering
complete financial solutions that encompass every sphere of life. From
commercial banking, to stock broking, to mutual funds, to life insurance, to
investment banking, the group caters to the financial needs of individuals
and corporate. The group has a net worth of Rs.7,911 crore and employs
around 20,000 employees across its various businesses, servicing around 7
million customer accounts through a distribution network of 1,716 branches,
franchisees and satellite offices across more than 470 cities and towns in
India and offices in New York, California, San Francisco, London, Dubai,
Mauritius and Singapore.
Unit Trust of India Mutual Fund: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.
Reliance Mutual Funds:Reliance Mutual Fund ('RMF'/ 'Mutual Fund') is one of Indias leading
Mutual Funds, with Average Assets Under Management (AAUM) of Rs. 90,636
Crores and an investor count of over 58.42 and 64.53 Lakh folios. (AAUM and
investor count as of Oct to Dec '12). It was registered on June 30, 1995 as
Reliance Capital Mutual fund which was changed on March 11, 2004.
Standard Chartered Mutual Fund:Standard Chartered Mutual fund was set up on March13, 200
sponsored by Standard Chartered bank.
Morgan Stanley Mutual Fund:Starting as a small firm of 20 in 1935 in New York, and growing to an
international workforce of over 54,000 people around the world, Morgan
Stanley is a leader in providing the finest in financial thinking, products and
execution for companies, governments and institutional investors from
around the globe. Our people, thought leadership and product offerings
across Investment Management, Investment Banking, Sales and Trading,
Prime Brokerage and Research serve the diverse needs of our clients and are
consistently ranked best in class across the industry.
With more than 1200 offices in 36 countries, Morgan Stanley connects
people, ideas, and capital to help clients achieve their financial aspirations.
One of the largest global asset management organizations with assets under
management or supervision of $341 billion (March 31, 2013) .
Escorts Mutual Fund:Escorts Mutual Fund is the premier Asset Management Company
offering Investment products across a broad cross-section of Financial Assets
covering both Debt and Equity. It was registered with Securities and
Exchange Board of India (SEBI) in 1996.The Company is the one of the
earliest entrants into the Indian Mutual Funds Industry.
It is associated with Escorts Group - with Escorts Limited as its Flagship
Company, which is amongst India's leading corporations, operating in diverse
fields of Agri-Machinery, Construction and Railway Ancillaries and Financial
Services.
Alliance Capital Mutual Fund:Alliance Capital Mutual Fund (ACMF) has been constituted as a trust in
accordance with the provisions of the Indian Trust Act, 1882. The Mutual
Fund was registered with SEBI on December 30, 1994.
LIC Mutual Fund:LIC Mutual Fund was set up by the Life Insurance Corporation of India on
20th April 1989 to engage in the business of Mutual Fund and in order to
achieve this objective to engage in any other activity or business permitted
or authorized. The Fund continues to work towards realizing this objective.
The Fund was governed by a Board of Trustees earlier and is governed with
effect from 8th April 2003 by LIC Mutual Fund Trustee Company Pvt. Ltd.
(Trustee Company) on its incorporation under The Companies Act, 1956.
This Mutual Fund association of India maintains high professional and ethical
any means connected or involved in the field of capital markets and financial
Diversification.
Low Cost.
You own just one security rather than many, yet enjoy the benefits of a
diversified portfolio and a wide range of services. Fund managers decide
what securities to trade, clip the bond coupons, collect the interest payments
and see that your dividends on portfolio securities are received and your
rights exercised. It's easy to purchase and redeem mutual fund shares, either
directly online or with a phone call.
Ease of Investing
You can easily redeem your shares anytime you need cash by letter,
telephone, bank wire or check, depending on the fund. Your proceeds are
usually available within a day or two.
With no-load mutual funds, you can link your investment plans to future
individual and family needs -- and make changes as your life cycles change.
You can invest in growth funds for future college tuition needs, then move to
income mutual funds for retirement, and adjust your investments as your
needs change throughout your life. With no-load mutual funds, there are no
commissions to pay when you change your investments.
Investor Information
Periodic Withdrawals
If you want steady monthly income, many funds allow you to arrange for
monthly fixed checks to be sent to you, first by distributing some or all of the
income and then, if necessary, by dipping into your principal.
Dividend Options
You can receive all dividend payments in cash. Or you can have them
reinvested in the fund free of charge, in which case the dividends are
automatically compounded. This can make a significant contribution to your
long-term investment results. With some funds you can elect to have your
dividends from income paid in cash and your capital gains distributions
reinvested.
Recordkeeping Service
With your own portfolio of stocks and bonds, you would have to do your
own recordkeeping of purchases, sales, dividends, interest, short-term and
long-term gains and losses. Mutual funds provide confirmation of your
transactions and necessary tax forms to help you keep track of your
investments and tax reporting.
Safekeeping
When you own shares in a mutual fund, you own securities in many
companies without having to worry about keeping stock certificates in safe
deposit boxes or sending them by registered mail. You don't even have to
worry about handling the mutual fund stock certificates; the fund maintains
your account on its books and sends you periodic statements keeping track
of all your transactions.
Mutual funds are well suited to Individual Retirement Accounts and most
funds offer IRA-approved prototype and master plans for individual
retirement accounts (IRAs) and Keogh, 403(b), SEP-IRA and 401(k) retirement
plans. Funds also make it easy to invest -- for college, children or other longterm goals. Many offer special investment products or programs tailored
specifically for investments for children and college.
Online Services
These master accounts, available from many of the larger fund groups,
enable you to manage all your financial service needs under a single
umbrella from unlimited check writing and automatic bill paying to discount
brokerage and credit card accounts.
Margin
Some mutual fund shares are marginable. You may buy them on margin or
use them as collateral to borrow money from your bank or broker. Call your
fund company for details.
Country Risk.
The possibility that political events (a war, national elections),
financial problems (rising inflation, government default), or natural
disasters (an earthquake, a poor harvest) will weaken a country's
economy and cause investments in that country to decline.
Credit Risk.
The possibility that a bond issuer will fail to repay interest and
principal in a timely manner . Also called default risk.
Currency Risk.
The possibility that returns could be reduced for Americans
investing in foreign securities because of a rise in the value of the U.S.
dollar against foreign currencies. Also called exchange-rate risk.
Income Risk.
The possibility that a fixed-income fund's dividends will decline
as a result of falling overall interest rates .
Industry Risk.
The possibility that a group of stocks in a single industry will
decline in price due to developments in that industry.
Inflation Risk.
The possibility that increases in the cost of living will reduce or
eliminate a fund's real inflation-adjusted returns.
Manager Risk.
The possibility that an actively managed mutual fund's
investment adviser will fail to execute the fund's investment strategy
effectively resulting in the failure of stated objectives.
Market Risk.
The possibility that stock fund or bond fund prices overall will
decline over short or even extended periods. Stock and bond markets
tend to move in cycles, with periods when prices rise and other periods
when prices fall.
Principal Risk.
The possibility that an investment will go down in value, or "lose
money," from the original or invested amount.
What is NAV?
NAV is nothing but the total market value of all the assets held in the mutual fund
portfolio less the liabilities, divided by all the outstanding units. That amounts to
nothing but the book value.
The NAV measures how much each share of a mutual fund is worth. So essentially,
the NAV of a mutual fund is the cost of one share of the fund.
How is it calculated?
The total assets of a Mutual Fund usually fall into two categories cash and
securities. Securities include stocks and bonds. So the total asset will include the
market value of all its cash, stocks and bonds. Liquid assets, dividends to be
received, interest accrued also need to be included in the total assets.
At the same time, the Mutual Fund will have some money that it will owe to some
creditors. That is its liabilities. There will be some expenses that have accrued over
time and yet to be paid, this also needs to be included.
Let us see that in a formula:Net Asset Value (NAV) = (Assets-Debts) / (Number of Outstanding units)
Where
Assets = Market value of the funds investments + Receivables + Accrued Income.
Debts = Liabilities + Accrued Expenses + Payables.
JOBDESCRIPTION
The Basic job of a trainee has involved following step:
First step Collection of primary data from different LIC offices located in Bhubaneswar.
Second step After collection of primary data update these data from the database.
These primary data includes.
Name, Sex, contact detail & Qualification of the LIC adviser.
Third step Followed by calling that adviser and approach for attend our BOP (Business
Opportunity Programme). Where the Unit manager Show them the benefit of working in mutual
fund industry as a wealth adviser.
If that adviser is unable to attend BOP so try to fix a personal appointment with him where our
unit manager personally meet him and told him about benefits of working with NJ Group.
Last step if that adviser convince and ready to work with company as wealth adviser so he have
to give a AMFI exam to get the license.
OBJECTIVEOFTHEWORK.
Provide him brief detail about mutual fund industry and their benefits.
PERFORMAOFJOBDESCRIPTION
Research methodology
1.
Research design:-
Units of analysis:-
Characteristics of interest:o
o
o
o
It is collected
questionnaire.
through
sampling
method
and
by
survey
B. Secondary source:-
Sample planning:-
I have used Survey method to collect data. I have collected data using
questionnaire.
6.
Questionnaire plan
ANALYSIS
A project is incomplete without data and analysis. It is worthless also. By analysis I
know about the various factors essential for Mutual Fund advisors of NJ India Invest.
I have taken a sample of 300 respondents as a sample for data analysis. I have
surveyed Bhubaneswar city only.
Table: 1
Age group of respondents:
Age Group
18-25
No. of Response
15
Percentage
05
26-35
36-45
90
120
30
40
46-55
60
20
56 & above
Total
15
300
05
100
Here we found that the age between 36-45 were most aware of Mutual Fund and
showed maximum interest to find Mutual Fund advisors.
140
120
100
80
No. of Response
Percentage
60
40
20
0
18-25
26-35
36-45
46-55
56 & above
Table: 2
Gender of Respondents
Gender
Respondents
Percentage
Male
255
85
Female
45
15
Total
300
100
From the above table it was found that maximum 255 respondents are male out of
300 respondents and rest 45 are female.
Gender of Respondent
Male
Female
15%
85%
Table : 3
Educational Qualification of Respondents:
Education
No. of Respond
Percentage
Matriculation
15
05
Intermediate
30
10
Graduate
150
50
Professional degree
60
20
Others
45
15
Total
300
100
From this we found that from 300 respondents 150 are graduate, followed by 60
responds are professional degree, 45 are others, 30 are intermediate and 15
respondents are matriculation.
160
140
120
100
80
No. of Respond
60
Percentage
40
20
0
Table: 4
Experience in Business:
Experience in Business
Below 2
3-5
6-10
10 years and above
Total
No. of Respondent
30
90
150
30
300
Percentage
10
30
50
10
100
From the above it was found that the more financial advisors are 5-10 years
experience in business.
Experience in Business
Table: 5
Different Product:
Product
No. of Respondent
Percentage
Life Insurance
Mutual Fund
180
36
60
12
Postal Scheme
45
15
Others
Total
39
300
13
100
From the above it was found that maximum no. of insurance advisors is having
insurance as main source of income.
180
160
140
120
100
No. of Respondent
Percentage
80
60
40
20
0
Life Insurance Mutual Fund Postal Scheme
Others
Table: 6
ARN Holders
ARN Holders
YES
Respondents
180
Percentage
60
NO
Total
120
300
40
100
From this we found that from 300 respondents, 60% are ARN holders.
ARN Holders
YES
NO
40%
60%
Table: 7
Knowledge of Revenue in Mutual Fund
Knowledge of Revenue
No. of Respondent
Percentage
Highly Experience
60
20
Little Experience
180
60
No Experience
60
20
Total
300
100
From the above table it is found that 60% of the insurance advisors have little
knowledge about the revenue in Mutual Fund.
180
160
140
120
100
No. of Respondent
Percentage
80
60
40
20
0
Highly Experience Little Experience
No Experience
Table: 8
Interested Respondent for Business Opportunity
Program
Interested
No. of Respond
Percentage
Yes
105
35
No
150
50
Later
45
15
Total
300
100
From this we know that 35% Financial Advisors were interested to attend the
Business Opportunity Program.
160
140
120
100
No. of Respond
80
Percentage
60
40
20
0
Yes
No
Later
Time Period
At the End of 10
Years
At the End of 15
Years
At the End of 20
Years
Investment Amount
6,00,000/-
12,00,000/-
18,00,000/-
24,00,000/-
Corpus of Return @
12%
8,11,036/-
22,40,359/-
47,59,314/-
91,98,574/-
Corpus of Return @
15%
8,73,421/-
26,30,182/-
61,63,656/-
1,32,70,734/-
Corpus of Return @
17%
9,17,379/-
29,28,684/-
73,38,366/-
1,70,06,365/-
Corpus of Return @
20%
9,87,040/-
34,43,110/-
95,54,599/-
2,47,61,940/-
Chart Title
30,000,000.00
25,000,000.00
20,000,000.00
Axis Title
15,000,000.00
10,000,000.00
5,000,000.00
-
1,50,810.36/1,36,853.40/-
1,27,247.50/1,08,209.19/87,390.13/72,761.32/64,597.44/-
140,000
120,000
100,000
ICICI
80,000
Reliance
Birla
60,000
UTI
SBI
40,000
Franklin
20,000
0
150,810
CHAPTER: 5
Suggestion
Limitation
conclusion
Bibliography
annexure
SUGGESTIONS
Mutual fund advisors should be well trained. They must take extensive
so proper steps should be taken to make the people aware about it.
In Bhubaneswar investors have inadequate knowledge about mutual
LIMITATIONS
CONCLUSION
Mutual fund have given a new direction to the flow of personal savings
and enable small and medium investors in remote rural and semi urban
areas to reap the benefits of the stock market investment. Indian Mutual
funds are thus playing a very important development role in allocation of
scares resources in the emerging economy.
NJ India Invest is not able to provide sufficient services to the investors
of Bhubaneswar due to unawareness among advisors regarding services.
The awareness level of investors is low in advisors; as a result they are
not interested in dealing in mutual fund.
BIBLOGRAPHY
1. Kotler, Phillip; Marketing manegment;11 th edition; published by Pearson
Prentice Hall
2. Kothari, C.R i; Research Methodology; 2nd edition.
3. Anjaria , D.C.;AMFI Mutual fund testing programmed Wordbook
4.
WEBSITES: www.amfiindia.com
www.economics.com
www.mutualfundindia.com
www.wikipedia.com
www.securitiesindia.com
www.njfufunds.com
www.google.com
www.njgroup.com
ANNEXURE
Dear Sir/Madam
I Keerti Ananda Dash MBA student of Rajdhani College of Engineering And
Management, Bhubaneswar is doing a summer project on A CRITICAL
STUDY ON CUSTOMER AWARENESS OF MUTUAL FUND AT NJ
INDIAINVEST PVT. LTD. IN BHUBANESWAR CITY, ODISHA.
Kindly
provide me the following information for my summer project report as a
partial fulfillment of our course.
The objective of the survey is to access the awareness of Mutual Fund
among the financial Advisors in Bhubaneswar city.
1. Name:2. Age: - 18-25
55+
25-35
3. Gender:-Male
Female
4. Education:-Matriculation
Prof. Degree
35-45
45-55
Intermediate
Graduate
<2
2-5
No
Poor
5-10
little
Agents
Definitely not
Probability
Probably not
12. Any other suggestion you want to give to NJ India Pvt. Ltd.?
( please specify )