SVKMS NMIMS

School of Business Management

Project Proposal

Name of Student: Deepanshu Gupta

Title of Project: Channel Management and Relationship Management of Birla Sunlife Mutual Fund

Introduction:

Established in 1994, Birla Sun Life Asset Management Company Limited (BSLAMC), investment manager for
Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and Sun Life Financial Inc, a leading
international financial services organisation from Canada.
Birla Sun Life Mutual Fund is the fourth largest Fund house in India based on domestic average assets under
management as published by AMFI for the quarter ended March 31, 2014. An impressive mix of reach, a wide range
of product offerings across equity, debt, balanced as well as structured asset classes and strong investment
performance has helped the company garner close to 2 million investor scheme accounts (as of March 31, 2014).
BSLAMC offers investors a range of comprehensive investment options, which includes diversified and sector
specific equity schemes, hybrid funds and a wide range of debt and treasury products. Its offerings also include
Portfolio Advisory Services for High Net worth Individuals as well as offshore funds for Non-Resident Indians.

The project involves the understanding of the Mutual Fund. It also involves financial sales & marketing by
contacting the Branch Manager, Relationship Manager, CSOs and PBs of Bank and make them understand our
business and the opportunities which are there for their clients and convince them to invest in one of the investment
schemes of Birla which includes 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. Relationship management is
the core of our project.

Literature review:

Mutual Funds: A Mutual fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is invested by the fund manager in different types of securities depending
upon the objective of the scheme. These could range from shares 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
holders in proportion to the number of units owned by the (pro rata). 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
portfolio at a relatively low cost. Anybody with an invest able surplus of as a few thousand rupees can invest in
Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy.
.

A Mutual Fund is a trust registered with the Securities and Exchange Board of India (SEBI), which pools up the
money from individual / corporate investors and invests the same on behalf of the investors /unit holders, in equity
shares, Government securities, Bonds, Call money markets etc., and distributes the profits.
The value of each unit of the mutual fund, known as the net asset value (NAV), is mostly calculated daily based on
the total value of the fund divided by the number of shares currently issued and outstanding. The value of all the
securities in the portfolio in calculated daily. From this, all expenses are deducted and the resultant value divided by
the number of units in the fund is the funds NAV.

NAV = Total value of the fund

Number of shares currently issued and outstanding
In literature various researchers have used profitability and growth as measurement of performance. Profitability has
been used as measure of performance by Gort (1962), Rumelt (1974), McDougal and Round (1984), Paul (1985-86),
Sambharya (19950, Tallman and Li (1996), Faejoun (1998).
One of the financial indicators that give the utmost satisfaction to the investors is return that is generated by their
investment but at the same time they are worried about the risk that is associated with their investment. Hence, it
turns out to be very significant and vital for the financial managers to analyse and identified the risk and return
associated with the investment.

Purpose:

Purpose: The purpose is to get an insight about the mutual funds and its various aspects. It also involves
understanding of retail sales management at Birla. Some of the most interesting questions regarding mutual funds
such as how investors do chose between funds and a brief understanding on SIP as a powerful tool for investment
will also be studied.

Objectives:

The objective of the project is as follows:-

Gain in depth knowledge about various investment schemes.

Achieve the allocated equity and debt sales target through profiling of the BANKs and targeting them
accordingly.

To communicate and educate the distributors about SIP advantages and potential as a tool for wealth
creation.

Along with it a brief introduction to Indias largest financial intermediary, BIRLA has been given.