Interim Report

Summer Internship Program

PROJECT TITLE
“In-depth Comparative Analysis of Futurist (Loyalty Program) of
DSP BlackRock Mutual Funds with other Asset Management
companies”

Submitted to: Submitted by:

• Dr. Dhananjay Singh
(Faculty Guide) Debarpan Nag
• Mr. Aditya Sakhamuri 16A2HP422
(Asst. VP, Sales) IMT, Hyderabad
• Mr. Vasu Bandaru
(Company Guide)
Undertaking

The contents of the proposal report are a part of the internship project
undertaken by Mr. Debarpan Nag at DSP BlackRock Mutual Funds Pvt.
Ltd., as a part of the PGDM (Marketing) course in the Institute of
Management Technology, Hyderabad. This report is meant only for
academic purposes. The data pertaining to the Marketing not be used for
any commercial purposes.

Signed By:

Debarpan Nag
PGDM – Finance
Institute of Management Technology, Hyderabad

Approved By:

Mr. Aditya Sakhamuri Mr. Vasu Bandaru

Assistant Vise President – Sales Officer – Sales
DSP BlackRock Mutual Fund DSP BlackRock Mutual Fund

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CONTENTS

Undertaking………………………………………………………i
1. Birla Sun Life Mutual Fund……………………………1
2. ICICI Prudential Mutual Fund..........................5
3. UTI Mutual Funds............................................8
4. DSP BlackRock Mutual Fund…………………………12
5. Comparative Analysis in Tabular Form............16
References…………………………………........................19
Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment manager of Birla
Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life
Financial 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.
Birla Sun Life Asset Management Company has one of the largest team of research analysts
in the industry, dedicated to tracking down the best companies to invest in. BSLAMC strives
to provide transparent, ethical and research-based investments and wealth management
services.

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There are around 47 funds managed by Birla Sun Life Mutual Fund and these are few funds
as picked up from MoneyControl.com

ABFS Privilege Club - A loyalty program that lifts your ambitions higher
The objective of the ABFS Privilege Club is to track the progress of retail IFAs, at each and
every stage of growth and accordingly support on various parameters ranging from both
personal security as well as long term professional security

CLUB QUALIFICATION CRITERIA

• NISM certified Individual Financial Advisor who is registered with AMFI
• Empaneled with Birla Sun Life Mutual Fund
• Membership by invitation only
ELIGIBILITY CRITERIA
• Need to maintain a Quarterly Average AUM market share greater than or equal to
10% with Birla Sun Life Asset Management Company to avail any Privilege Club benefits.
BASE POINT CALCULATION

ASSET QTRLY. AVG. AUM (in BASE

ELIGIBLE FUNDS
CLASS Rs) POINTS
EQUITY 20,000 1 Equity, Balanced Funds & PMS Equity
HYBRID 25,000 1 MIPs, Cap Protection & PMS Hybrid Funds
DEBT 30,000 1 Income, DBF, GSEC & Accrual Funds
LIQUID 1,00,000 1 Cash Manager

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 GROSS SALES MARKET SHARE MULTIPLIER (GSMS)
• GSMS gets extra weightage in the form of multiplier to the base point.
• If GSMS % is greater than or equal to 10% then multiplier points are added to the
base points
• No multiplier points are added the base points if in case GSMS is less than 10%
CLUB POINTS CALCULATION
• Only Equity Gross Sales will be considered for GS multiplier
• Quarterly GSMS will add points multiplier to the base
• Multiplier will be based on the GSMS %.
• (for Example: if quarterly GSMS % for Apr-Jun’ 17 quarter is 25% and club points for
the quarter is 1000; the total points for deciding Club Status will be 1000*125%=1250)
CLUB CLASSIFICATION
In the ABFS Privilege Club, all the IFAs would be classified on the basis of their club points
accumulated in a financial quarter.
15000 Diamond

7500
Platinum
6000
Gold +
4000
Gold
1500
Silver
400
Bronze

Blue
The beginning point for all
freshly empaneled IFAs
CLUB POINTS REVIEW
Every quarter all the IFAs in all the Club categories can be upgraded to a higher club
category subject to the fulfilment of the upgradation criteria.

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 SNAPSHOT OF THE PRIVILAGES

No. Benefit Matrix DIAMOND PLATINUM GOLD+ GOLD SILVER BRONZE

1. a Annual Award Function Annual award function at a premium Annual Award Annual Awards
Annual Award function at premium location - -
location with spouse Function Function
or or or - - -
1. b Management Development Annual award function at a premium MDP / Select
MDP / Select Professional Course at
Program (MDP)/ Select location only for self and an MDP / Select professional - - -
renowned Institute in India
Professional Courses Professional Course at A renowned Course at a

2 Golden Age Plan (G.A.P) - AMC yes yes yes yes yes -
contribution of 5% of monthly Net
3 Life Insurance cover in (lacs) 80 60 40 20 10 5
4 Medical Insurance Cover in (lacs) 5 4 3 2.5 2 1
5 Child Scholarship amount in Rupees 30,000 25,000 20,000 15,000 10,000 -
6 Financial Magazine Subscription yes yes yes - - -
7 Community Engagement Initiatives yes yes yes yes yes yes
8 Stationery DIAMOND PLATINUM GOLD+ GOLD SILVER BRONZE

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ICICI Prudential Asset Management Company Ltd. is a leading management company (AMC)
in the country focused on bridging the gap between savings & investments and creating
long term wealth for investors through a range of simple and relevant investment solutions.
The AMC is a joint venture between ICICI Bank, a well-known and trusted name in financial
services in India and Prudential Plc, one of UK’s largest players in the financial services
sectors. Throughout these years of the joint venture, the company has forged a position of
pre-eminence in the Indian Mutual Fund industry.
The AMC manages significant Assets under Management (AUM) in the mutual fund
segment. The AMC also caters to Portfolio Management Services for investors, spread
across the country, along with International Advisory Mandates for clients across
international markets in asset classes like Debt, Equity and Real Estate.
The AMC has witnessed substantial growth in scale; from 2 locations and 6 employees at
the inception of the joint venture in 1998, to a current strength of more than 1100
employees with a reach across over 200 locations reaching out to an investor base of more
than 3 million investors. The company’s growth momentum has been exponential and it has
always focused on increasing accessibility for its investors

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ELIGIBILITY
• Club Qualifiers have 15% or Higher Equity AUM Market Share as on 31st March
2017.
• NISM certified Individual Financial Advisor who is registered with AMFI
• Net Sales to Gross Sales Ratio > = 25% in Cat 1 & Cat 2 Schemes
• Equity AUM Market Share > = 10% at the end of the Program Period

CHAIRMAN'S CIRCLE CLUB POINTS

INCREMENTAL
SCHEME CATEGORY AMOUNT (Rs.) GROSS SALES NET SALES
DAILY AVG. AUM

CAT 1 20,000 1 2 -
CAT 2 50,000 1 2 -
CAT 3 50,000 - - 1
PROGRAM MULTIPLIERS
• On Equity Gross Sales Market Share
• On AUM Market Share
• On Digital Transactions
• Earn more points on PMS Business
• “SIP Champion Club”- Multiplier Points On SIP
• New Clients (PAN) to AMC

CLUB QUALIFICATION CRITERIA

CLUB POINTS REQUIRED
CLUB A B C D
SOLITAIRE 20000 16,000 13,500 8,000
PLATINUM 10000 8,000 7,000 4,000
GOLD 5000 4,000 3,500 2,000

GROSS SALES MULTIPLIER(ON GROSS SALES POINT)

GROSS SALES MARKET SHARE MULTIPLIER %
20-30% 5%
25-30% 10%
30% & above 15%

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SCHEME CATEGORY

Select large cap fund, Top 100, Dynamic Plan, Banking

Financial services fund, infrastructure fund, balanced
CATEGORY advantage fund, balanced fund, midcap fund, global stable
fund, dividend yield fund, focused blue-chip equity fund, value
1 discovery fund, US blue-chip fund, technology fund and all
PMS products & equity NFOs sold in the F.Y. 16-17

Equity income fund, Indo-Asia fund, regular income fund,

CATEGORY Regular savings fund, corporate plan, MIP, MIP 25, corporate

2 bond, fund & child care study plan, capital protection oriented
fund NFOs and Multiple Yield Fund NFOs.

Long term plan, short term plan, dynamic bond fund, savings
CATEGORY fund, equity-arbitrage fund, long term gilt fund, gilt investment
PF option, Short term Gilt fund, ultra-short term plan, income
3 opportunities, constant maturity gilt fund and banking & PSU
Debt fund.

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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. Ltd. for
managing the schemes of UTI Mutual Fund and the schemes transferred/migrated from the
erstwhile Unit Trust of India.
UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs
of every class of citizens. It has a nationwide network consisting 150 UTI Financial Centres
(UFCs) and UTI International offices in London, Dubai and Singapore.
UTIAMC has a well-qualified, professional fund management team, which has been fully
empowered to manage funds with greater efficiency and accountability in the sole interest
of the unit holders. The fund managers are ably supported by a strong in-house securities
research department. To ensure investors' interests, a risk management department is also
in operation.

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NOTHING GOES
UNREWARDED
benefits for all the products you
Every single point you earn
qualifies for rewards subject
to you achieving a minimum
of 250 points and thereafter
in multiples of 250 points.
UNIVERSAL COVERAGE
The program lets you earn
sell: equity, balanced, debt or
liquid category funds
PERFORMANCE PAYS
It awards equal points to
all IFAs based on their
current financial year
performance

LET YOU FAMILY

SHARE YOUR
GLORY NO RESTRICTION

Additional points
UTI Summit: Being a points base
entitle you to let entitlement, there is
your family A Unique no restriction on the
number of IFAs
member – spouse Partnership qualifying for
and children –
accompany you to various clubs
the Chairman’s
Club Convention

SKY IS THE LIMIT FOR

REWARDS
There is no limit to the
points you can earn
WATCH YOUR POINTS GROW
You can track your points on
the website or on UTI Buddy,
and thus continue to improve
your performance
CONTINUATION IS
REWARDING
The program rewards
incremental business
during the year and also
continuation of liquid and
debt AUM from quarter to
quarter.

UTI SUMMIT A UNIQUE PARTNERSHIP WITH SPECIAL UNIQUE POINTS

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CLUB CALSSIFICATION

EARNED POINTS = POINTS OF SALES + BONUS POINTS + SUMMIT CLASS BONUS

7500 Points UTI

Chairman's Club

3000 Points UTI Star Club

1500 Points UTI Regional

Club

250 Points quality for

rewards

INTERESTING POINTS
• There are 12 parameters on which IFAs earn points.
• Sales across all products
• New accounts
• New SIPs and STP.
• Exclusive account to redeem the earned points
• Points earned are calculated on the daily basis and updated in the account at
regular intervals.
• Facility to track points. IFAs (General
For every 10- Cadre) for
For every 10- new STP achieving 10 lakh
new investor Accounts AUM

10 10 100
POINTS POINTS POINTS

For every 10
For every
new SIP
Bonus for B- 10-new
Accounts
15 location investor
10
25 % POINTS
20 %

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 EXCLUSIVE CLUB BENEFITS

UTI REGIONAL CLUB UTI STAR CLUB UTI CHAIRMAN'S CLUB

EARNED POINTS = POINTS OF SALES + BONUS POINTS + SUMMIT CLASS BONUS
CLUB CONVENTIONS - Overseas
Destination, life insurance, Health
4 CLUB CONVENTIONS FOR 4 ZONES Insurance for family, Health Chek-Up,
15 CLUB CONVENTIONS - for regions (domestic destinations) health Scholarship for Children, Product
health insurance for self ptoduct insurance for self and spouse, Training and Industry Updates,
training & industry updates , visiting product training & industry updates, Invitation to FAA Award Ceremony,
cards and letter heads. branding visibility support, visiting Nomination For Mutual Fund
cards and letter heads. Conventions, Membership of
Platforms, Branding Visibility
Support, Visiting Cards & letterheads

Classes and Benefits

Each Class has its own benefits. The First two classes – Maestro and Ace –
receive special summit class bonus if their weighted AUM on March 31 2017
is higher than or equal to the weighted AUM on March 31 2016. These
bonus points will be credited into the account at the end of the program.

Weighted *AUM Maestro

>=Rs. 25 Cr < Rs. 50 Cr *****
Winner
Weighted
Weighted *AUM **
*AUM
>=Rs. 1 Cr <Rs.10 Cr Champion
*** >= Rs. 50 Cr
Winner
** Weighted *AUM
Dynamo >=Rs. 10 Cr < Rs. 25 Cr
*

Weighted *AUM
< Rs. 1 Cr

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DSP BlackRock is a joint venture between the 150-year-old Indian financial firm, DSP Group
and the world’s largest investment management firm, BlackRock. We are one of the premier
asset management companies in India, with over 19 years of track record of investment
excellence.
The DSP Group, headed by Mr. Hemendra Kothari, is one of the oldest and most respected
financial services firms in India. The firm commenced its stock broking business in the 1860s
and the family behind the group has been very influential in the growth and
professionalization of capital markets and money management business in India.
BlackRock is the world’s largest investment management firm and is trusted to manage
more money than any other investment firm in the world. Millions of retail investors from
around the world, governments, large foundations and companies including 94 of the
Fortune 100 and 20 of the top 25 insurers globally trust BlackRock with their money.

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 PROGRAM STRUCTURE

IFAs will be classified into tiers based on their sales performance.

Weighted Sales = % of Average AUM (retention of assets) + Net Sales
(incremental sales)

CLASSIFICATION OF TIERS

WEIGHTED SALES (IN CRORES)

TIER A B C D
CORONIUM 15 12 10 8
PLATINUM 11 9 7 5
GOLD 6 5 4 3
SILVER 3 2 1.5 1
BRONZE 0.1 0.1 0.1 0.1

A – Mumbai and Delhi

B – Kolkata, Pune, Bangalore, Ahmedabad and Chennai
C – Chandigarh, Vadodara, Lucknow, Jaipur, Surat, Goa, Rajkot, Kochi,
Indore, Nasik, Ludhiana, Hyderabad, Coimbatore, Kanpur, Patna,
Bhubaneshwar and Nagpur
D – All other DSP BlackRock branches and resident representative location

AVG. AUM
AVG. AUM AMOUNT AVG. AUM AMOUNT
TIER AMOUNT LEVEL 3 POINTS
LEVEL 1 ASSETS LEVEL 2 ASSETS
ASSETS
CORONIUM 1,00,000 2,00,000 5,00,000 2
PLATINUM 1,00,000 2,00,000 5,00,000 1.8
GOLD 1,00,000 2,00,000 5,00,000 1.5
SILVER 1,00,000 2,00,000 5,00,000 1.3

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1. c

NET SALES POINTS

Net sales points are earned on every net sales done with DSP-BR. There are
higher earnings for higher tier.
AVG. AUM
AVG. AUM AMOUNT AVG. AUM AMOUNT
TIER AMOUNT LEVEL 3
LEVEL 1 ASSETS LEVEL 2 ASSETS
ASSETS
CORONIUM 1,00,000 2,00,000 5,00,000
PLATINUM 1,00,000 2,00,000 5,00,000
GOLD 1,00,000 2,00,000 5,00,000
SILVER 1,00,000 2,00,000 5,00,000

AUM POINTS
AUM points are points which will be given at the end of each year based on
the average AUM of the member.

AVG. AUM
AVG. AUM AMOUNT AVG. AUM AMOUNT
TIER AMOUNT LEVEL 3 POINTS
LEVEL 1 ASSETS LEVEL 2 ASSETS
ASSETS

CORONIUM 1,00,000 2,00,000 5,00,000 2

PLATINUM 1,00,000 2,00,000 5,00,000 1.8
GOLD 1,00,000 2,00,000 5,00,000 1.5
SILVER 1,00,000 2,00,000 5,00,000 1.3

BONUS POINTS
These points can be earned on promotional offers that will be announced
from time to time

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A. IFAXpress Bonus

SALES POINTS
Net sales on IFAXpress (level 1 and level 2) 10% of net sales points
Net sales on IFAXpress (level 3) 2 points per 5 lakh

B. Market Share Bonus

NS MARKET SHARE POINTS

< = 7% NIL
>7%< = 10% 20% OF NET SALES
>10%< = 15% 40% OF NET SALES
>15% 60% OF NET SALES

TIER BENEFITS

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 COMPARATIVE ANALYSIS IN TABULAR FORM

➢ TOP PERFORMING IFA BENEFITS COMPARATIVE ANALYSIS

DSP BIRLA
UTI ICICI
BLACKROC SUN LIFE
No. SCHEMES FOR TOP PERFORMING IFAs MUTUAL MUTUAL
K MUTUAL MUTUAL
FUND FUND
FUND FUND
1 ANNUAL AWARD FUNCTION
a) INTERNATIONAL ✓ ✓ ✓ ✓
b) NATIONAL × × × ×
2 TRAINING PROGRAMS ✓ ✓ ✓ ✓
MANAGEMENT DEVELOPMENT
3
PROGRAM ✓ ✓ ✓ ✓
4 HEALTH CHECK UP ✓ ✓ ✓ ✓
5 PERSONAL ACCIDENT INSURANCE ✓ ✓ ✓ ✓
6 GIFT HAMPER ✓ ✓ ✓ ✓
7 EXCLUSIVE GIFT ✓ × × ×
8 VALUE ADDED TOOLS ✓ ✓ × ×
9 CHILD SCHOLARSHIP ✓ ✓ ✓ ✓
10 FAMILY INSURANCE ✓ ✓ ✓ ✓
11 GOLDEN AGE PLAN × × ✓ ×
12 PERSONAL MEDICLAIM ✓ ✓ ✓ ✓
13 FAMILY MEDICLAIM ✓ ✓ ✓ ✓

• There is not much of difference in the top layers of IFA loyalty benefits by all
these top 4 AMC.
• DSP BlackRock pioneering in Exclusive Gifts.
• DSP BlackRock and UTI MF providing value added tools to the IFAs.
• BIRLA SUN LIFE MF pioneering in GOLDEN AGE PLAN which takes care of the IFA’s
retirement so that the standard of living of the IFAs aren’t disrupted.

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 COMPARATIVE ANALYSIS IN TABULAR FORM

➢ MID LEVEL IFA’s BENEFITS COMPARATIVE ANALYIS

DSP BIRLA
UTI ICICI
SCHEMES FOR MID LEVEL BLACKROC SUN LIFE
No. MUTUAL MUTUAL
PERFORMING IFAs K MUTUAL MUTUAL
FUND FUND
FUND FUND
1 ANNUAL AWARD FUNCTION
a) INTERNATIONAL × × × ×
b) NATIONAL ✓ ✓ ✓ ✓
2 TRAINING PROGRAMS ✓ ✓ ✓ ✓
MANAGEMENT DEVELOPMENT
3
PROGRAM ✓ ✓ ✓ ✓
4 HEALTH CHECK UP ✓ ✓ ✓ ✓
5 PERSONAL ACCIDENT INSURANCE ✓ ✓ ✓ ✓
6 GIFT HAMPER × × × ×
7 EXCLUSIVE GIFT × × × ×
8 VALUE ADDED TOOLS ✓ ✓ × ×
9 CHILD SCHOLARSHIP ✓ ✓ ✓ ✓
10 FAMILY INSURANCE ✓ × ✓ ×
11 GOLDEN AGE PLAN × × ✓ ×
12 PERSONAL MEDICLAIM ✓ ✓ ✓ ✓
13 FAMILY MEDICLAIM ✓ × ✓ ×

• There is some difference in the mid-level IFA benefit.

• Exclusive gift, gift hamper, family insurance, family Medi-claim and international
conventions moving out of the picture.

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 COMPARATIVE ANALYSIS IN TABULAR FORM

➢ BEGINNER LEVEL IFA’s BENEFIT COMPARATIVE ANALYSIS

DSP BIRLA
UTI ICICI
BLACKROC SUN LIFE
No. SCHEMES FOR BEGINNER LEVEL IFAs MUTUAL MUTUAL
K MUTUAL MUTUAL
FUND FUND
FUND FUND
1 ANNUAL AWARD FUNCTION
a) INTERNATIONAL × × × ×
b) NATIONAL × × × ×
2 TRAINING PROGRAMS ✓ ✓ ✓ ✓
MANAGEMENT DEVELOPMENT
3
PROGRAM ✓ ✓ ✓ ✓
4 HEALTH CHECK UP × ✓ × ×
5 PERSONAL ACCIDENT INSURANCE × × × ×
6 GIFT HAMPER × × × ×
7 EXCLUSIVE GIFT × × × ×
8 VALUE ADDED TOOLS ✓ ✓ × ×
9 CHILD SCHOLARSHIP × × × ×
10 FAMILY INSURANCE × × × ×
11 GOLDEN AGE PLAN × × ✓ ×
12 PERSONAL MEDICLAIM ✓ ✓ ✓ ✓
13 FAMILY MEDICLAIM × × × ×

• Here we get to observe that very basic benefits are provided encouraging the IFAs
to perform and get upgraded to higher strata of clubs.
• Yet the AMCs are trying to build a sense of inclusivity in providing benefits in the
mind of IFA Beginners.

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 REFRENCES

• Chairman circle program FY 2016-17, Handouts.

• UTI Summit Recognition and Rewards for Performance, Handouts.
• Aditya Birla Financial Service Privilege Club, Handout.
• DSP BlackRock Mutual Fund Futurist Brochure.
• http://www.dspblackrock.com/about-us/about-us-home

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