A

PROJECT REPORT

ON

“MANAGING SALES OF MUTUAL FUND THROUGH INDIVIDUAL

FINANCIAL ADVISORS (IFA)”

FOR

KOTAK MAHINDRA
ASSET MANAGEMENT COMPANY LTD.

SUBMITTED TO THE UNIVERSITY OF PUNE

IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE
MASTER IN BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY
GAURAV R. DESHMUKH.
(BATCH 2009-11)

SHREE KHANDERAI PRATISHTAN’S

DNYANSAGER INSTITUTE OF MANAGEMENT AND RESEARCH, PUNE
 INDEX

Sr. No. Subject Page no.

1 Introduction of Project 5-6

2. Theoretical Background 7–9

3 Company Profile 10 – 22

4 Research Methodology 23 – 28

5 Analysis & Interpretation 29 – 51

6 Suggestions 52 – 53

7 Conclusions 54 – 55

8 Bibliography 56 – 57

9 Annexure 58 - 62

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 DECLARATION

I, Undersigned honestly declare that, this project titled “Managing sales of mutual fund

through individual financial advisors (IFA)” for Kotak Mahindra Asset Management

Company ltd. is a genuine and bonafide project prepared by me and submitted to the

Director, Shri, Khanderai Pratishtan’s Dnyansager Institute of Management of Research,

Pune in partial fulfillment

of MBA.

The project work is original and conclusions drawn herein are based on the data

Collected by myself.

To the best of my knowledge, the matter presented in this project has not been submitted

For Award of any degree, diploma or membership either to this or any other Institute or

University.

Date : Gaurav R. Deshmukh.

Place :

Page 3 of 50
 ACKNOWLEDGEMENT

I take immense pleasure in completing this project and submitting this final project

report. The whole summer internship period with KOTAK MAHINDRA AMC has been

full of learning and sense of contribution towards the organization. I would like to thank

for giving us an opportunity of learning and contributing through this project.

As a student of Dyansagar Institute of Management & Research, Balewadi, I would first

of all like to express my gratitude to Dr. G. B. Patil (Director) of our college, for

rendering me with an opportunity to go beyond the classroom and have a glimpse of the

corporate world.

I am also greatful to Prof. Pushpraj Wagh (Project Guide) for assigning me such,

worthwhile topic MANAGING SALES OF MUTUAL FUND THROUGH

INDIVIDUAL FINANCIAL ADVISORS (IFA).

The project couldn’t have been complete without timely and vital help of other office

staff. Special thank to Mr. Nikhil Shah (Sales Manager) for their invaluable guidance,

keen interest, cooperation, inspiration and of course moral support through out my

project session.

Page 4 of 50
 Gaurav R. Deshmukh

INTRODUCTION
TO
THE PROJECT

Page 5 of 50
 Introduction to the Project

a) Introduction to project :

The project was undertaken as a part of learning process during the summer training at

Kotak Mahindra Asset Management Company Ltd., Pune.

b) Project Title :

Managing sales of mutual funds through Individual Financial Advisors.(IFA)

c) Objectives :

1. Primary Objective :

To study the selling activities of Kotak Mutual Fund in context to various funds.

2. Secondary Objectives :

• To create awareness about the Kotak Mutual Fund’s products.

• To determine the potential for Kotak in context to various funds.

• To understand the services offered by our neareest competitors.

• To understand the customer needs and requirements.

• Activating new IFA’s and getting business from them.

d) Reasons for choosing company & project :

Financial Advisors play very important role in investment advices. Hence for an AMC

IFA’s act as major distributors. Also the reach of this channel is broader than any other

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channel. Also Kotak has good reputation in the mutual fund industry regarding IFA’s

channel.

e) Location :

Pune and its nearby area.

f) Duration of the project :

1st June 2010 to 31st July 2010. (2 months)

g) Carried out this project by:

A study of IFA’s perception in regards of Kotak AMC and it’s funds, has been made.

During the internship, the focus, apart from being on the study of mutual funds, was also

on studying the customer needs, their problems and try to provide them with satisfactory

solution.

1. Defining the research objectives.

2. Preparing a research plan and Questionnaire.

3. Collecting the information through adopted method.

4. Analysis and interpretation of the information to get the required result.

5. Presenting the findings and providing the necessary suggestions.

h) Output :

The key learning from the project was the knowledge of mutual funds & IFA’s

perception about Kotak AMC Funds as well as building up confidence level.

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 THEREOTICAL
BACKGROUND

Page 8 of 50
 Thereotical Background

a) Project Information :

The focus of the project has been on activating, motivating and training the channel

partners to deliver defined products or services to specific customers to create the highest

value for the enterprise. Due to the boom in equity market the perception of people about

equity oriented investment has changed. And mutual fund has become ideal investment

product for people seeking common financial goal.

Different investment avenues are available to investors. Mutual funds also offer good

investment opportunities to the investors. Like all investments, they also carry certain

risks. But the Risk is comparatively low because of diversification of portfolio. The

investors should compare the risks and expected yields after adjustment of tax on various

instruments while taking investment decisions. The investors may seek advice from

experts and consultants including agents and distributors of mutual funds schemes while

making investment decisions.

• 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

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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 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 portfolio at a relatively low

cost. The small savings of all the investors are put together to increase the buying power

and hire a professional manager to invest and monitor the money. Each Mutual Fund

scheme has a defined investment objective and strategy.

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• TYPES OF MUTUAL FUNDS :

Mutual fund schemes may be classified on the basis of its structure and its investment

objective.

A) BY STRUCTURE:

A mutual fund scheme can be classified into open-ended scheme or close-ended scheme

depending on its maturity period.

a) Open-End Funds: An open-ended fund or scheme is one that is available for

subscription and repurchase on a continuous basis. These schemes do not have a fixed

maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV)

related prices, which are declared on a daily basis.The key feature of open-end schemes is

liquidity. Open - end funds also redeem, or buy back, shares from shareholders.New and

existing shareholders may add as much money to the fund as they want and the fund will

simply issue new shares to them.

b) Closed-End Funds: A Close-Ended fund is open for subscription only during a

specified period, generally at the time of Initial Public Offer (IPO). Investors can invest

in the scheme at the time of the IPO and thereafter they can buy or sell the units of the

scheme on the stock exchanges where they are listed. A closed-end fund has a stipulated

maturity period which generally ranging from 3 to 15 years. In order to provide an exit

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route to the investors, some close-ended funds give an option of selling back the units to

the Mutual Fund through periodic repurchase at NAV related prices. These mutual funds

schemes disclose NAV generally on weekly basis.

B) BY INVESTMENT OBJECTIVE :

A scheme can also be classified as growth scheme, income scheme, or balanced scheme

considering its investment objective. Such schemes may be open-ended or close-ended

schemes as described earlier. Such schemes may be classified mainly as follows:

a) Growth / Equity Oriented Scheme: The aim of growth funds is to provide capital

appreciation over the medium to long- term. Such schemes normally invest a major part

of their corpus in equities. Such funds have comparatively high risks. These schemes

provide different options to the investors like dividend option, capital appreciation, etc.

and the investors may choose an option depending on their preferences. Growth schemes

are good for investors having a long-term outlook seeking appreciation over a period of

time.

b) Debt Oriented Scheme: The aim of income funds is to provide regular and steady

income to investors. Such schemes generally invest in fixed income securities such as

bonds, corporate debentures, Government securities. Such funds are less risky compared

to equity schemes. These funds are not affected because of fluctuations in equity markets.

However, opportunities of capital appreciation are also limited in such funds. The NAVs

of such funds are affected because of change in interest rates in the country. If the interest

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rates fall, NAVs of such funds are likely to increase in the short run and vice versa.

Income Funds are ideal for capital stability and regular income.

c) Balanced Fund: The aim of balanced funds is to provide both growth and regular

income as such schemes invest both in equities and fixed income securities in the

proportion indicated in their offer documents. They generally invest 40-60% in equity

and debt instruments. These funds are also affected because of fluctuations in share prices

in the stock markets. NAVs of such funds are likely to be less volatile compared to pure

equity funds. These are appropriate for investors looking for moderate growth. These are

ideal for investors looking for a combination of income and moderate growth.

d) Money Market Or Liquid Fund: These funds are also income funds and their aim is

to provide easy liquidity, preservation of capital and moderate income. These schemes

invest exclusively in safer short-term instruments such as treasury bills, certificates of

deposit, commercial paper and inter-bank call money, government securities, etc. Returns

on these schemes fluctuate much less compared to other funds. These are ideal for

Corporate and individual investors as a means to park their surplus funds for short

periods.

C) BY MARKET CAPITALISATION:

Market capitalization: Stock funds are often grouped by the size of the companies. They

invest in big, small or tiny. By size we mean a company's value on the stock market: the

number of shares it has outstanding multiplied by the share price. This is known as

market capitalization.Big companies tend to be less risky than small companies. But

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smaller companies can often offer more growth potential. The best idea is probably to

have a mix of funds that gives an exposure to large-cap, midsize and small companies.

a) Large Cap Funds: Large cap funds invest their assets primarily in companies, which

have a sizable market capitalization. Different fund houses define `Sizable' differently.

For instance, Kotak defined large caps as companies with a market capitalization in

excess of (Rs 750crores). Companies below this threshold were categorized as mid/small

caps. Investing in large caps is a lower risk-lower return proposition (vis-à-vis mid cap

stocks). These stocks carry “Embedded value” means such companies have diversified

businesses. So even if one company or business unit does not perform, it is negligible

loss for the group. Eg. RIL, SBI etc.

Large-cap funds are less volatile than funds that invest in smaller companies. Usually,

that means we can expect smaller returns but stable returns. E.g.: Kotak 30, HDFC Top

200 Fund, for instance, invest predominantly in large caps.

b) Mid Cap Funds: These funds invest in companies that have a lower market

capitalization than the large caps. Definition of mid cap companies varies from fund

house to fund house. As with large caps, BSE (BSE Mid Cap 200) and S&P CNX (S&P

CNX Mid Cap 200) have designed their own indices for mid cap stocks. Investments in

mid caps are a riskier proposition as compared to investments in large cap funds. In fact,

a mid cap stock could well graduate to a large cap over the years giving the investor a

significant return on his investment.E.g.: Kotak Mid-Cap, Sundaram Select Mid Cap fund

are some examples of mid cap funds.

Page 14 of 50
c) Small Cap Funds: Small cap funds invest in companies with a smaller market

capitalization. Eg. Sundaram SMILE. Investing in small cap funds is fraught with

considerable risk. Again, as with mid caps, information on small caps is not easily

available so these companies are under-researched or maybe not researched at all. So we

are contending with a relatively unknown entity here. However, the risk-return trade-off

is much higher vis-à-vis large caps and mid caps. The volatility of the fund often depends

on the aggressiveness of the manager. Aggressive small-cap managers will buy hot

growth and technology companies, taking high risks in hopes of high rewards.Currently

this is a niche segment as there is no fund investing purely in small cap stocks. Sundaram

SMILE is probably the first small cap fund of its kind.

d) Multi / Flexi-Cap Funds: Just about every second mutual fund IPO these days is a

multi/flexi cap fund. The fund manager has the mandate to shift across market

capitalizations depending on the growth opportunity. This is generally dictated by the

market happenings i.e. which sector is driving growth at a given time or which market

segment (market capitalization) is witnessing the latest rally. This helps in keeping the

portfolio relatively diversified and mitigate risks. In terms of risk-return trade-off, these

funds are positioned between large caps and mid caps. Some multi cap funds include –

Kotak Opportunities, Tata Equity Opportunities.

D) OTHER SCHEMES:

a) Tax Saving Schemes: These schemes offer tax rebates to the investors under specific

provisions of the Indian Income Tax laws as the Government offers tax incentives for

investment in specified avenues. Investments made in Equity Linked Savings Schemes

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(ELSS) and Pension Schemes are allowed as deduction u/s 80c of the Income Tax Act,

1961. Typically returns for such schemes have been found to be between 15-20%.

b) Index Funds: Index Funds replicate the portfolio of a particular index such as the

BSE Sensitive index, S&P NSE 50 index (Nifty), etc. These schemes invest in the

securities in the same weightage comprising of an index. For example, an Index fund

which is trying to mirror the BSE-30 (Sensex) will invest in only those 30 scrips that

constitute this particular index. NAVs of such schemes would rise or fall in accordance

with the rise or fall in the index, though not exactly by the same percentage due to some

factors known as "tracking error" in technical terms.

Necessary disclosures in this regard are made in the offer document of the mutual fund

scheme. Fund managing an index fund is usually called passive management because all

a fund manager has to do is to follow the index. Volatility of such schemes is in sync

with the index.

c) Thematic Funds: Thematic Funds are those, which invest, exclusively in a specified

sector. This could be an industry or a group of industries or various segments such as 'A'

Group shares or initial public offerings. For example, Infrastructure Thematic fund shall

invest in companies like DLF, Ambuja cement etc., and not in Software Company like

Infosys. Thematic Funds tend to have a very high risk-reward ratio and investors should

be careful of putting all their eggs in one basket.Depending on the sector performance,

returns vary on day to day basis. One year returns can go as high as 50%. Eg. Sundaram

Paribas Entertainment Opportunuties,etc.

Page 16 of 50
• REGISTRAR/TRANSFER AGENT :

Transfer Agents are responsible for issuing and redeeming units of the mutual fund and

provide other related services such as preparation of transfer documents and updating

investor records. Eg. CAMS , Karvy, etc.

• MARKET SHARE OF MUTUAL FUND COMPANIES IN INDIA :

MARKET SHARE OF MUTUAL FUND COMPANIES IN INDIA

HDFC
9%
ICICI Pru UTI
11% 9%

Birla
7%

Reliance
17% SBI
5%

Franklin
4%

Tata
4%
Kotak
Other
4%
15% DSP ML
LIC 4%
SUNDARAM HSBC
3%
2% 3%

KOTAK
4%

Page 17 of 50
• TOP TEN MUTUAL FUND COMPANIES :

UTI Birla
SBI
HDFC
Franklin

Tata

ICICI Pru  Kotak

DSP ML

Reliance 

Page 18 of 50
 COMPANY
PROFILE

Page 19 of 50
 COMPANY PROFILE

a) Complete Name of Company :

KOTAK MAHINDRA ASSET MANAGEMENT COMPANY LIMITED (KMAMC)

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 corporates.

Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned

subsidiary of KMBL, is the Asset Manager for Kotak Mahindra Mutual Fund (KMMF).

KMAMC started operations in December 1998 and has over 10 Lac investors in various

schemes. KMMF offers schemes catering to investors with varying risk - return profiles

and was the first fund house in the country to launch a dedicated gilt scheme investing

only in government securities.

b) Key Executives :

S.No Name Designation

1 Shankar Acharya Chairman

2 Uday Kotak Managing Director

3 Bina Chandarana Company Secretary

4 Sudipto Mundle Director

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5 Anand Mahindra Director

6 Cyril Shroff Director

7 Dipak Gupta Executive Director

8 Uday Kotak Executive Vice Chairman

9 Jaimin Bhatt Group Chief Financial Officer

c) Logo,slogan :

d) Corporate Identity :

Page 21 of 50
e) Product Range & Variety :

Different people have different investment needs. The ability to take risks while investing
in financial products varies accordingly. Kotak has wide range of Mutual Fund schemes,
which span across the risk-reward spectrum.

1) Equity Mutual Funds :

Kotak 30 Kotak Kotak

Midcap Opportunities

Kotak Indo World Kotak

Kotak Tax Saver
Infrastructure Fund Lifestyle

2) Debt mutual funds :

Kotak Income Plus

Kotak Liquid

Kotak Flexi Debt

Kotak Credit
Opportunities Fund

3) Balanced funds :

Kotak Balance

Page 22 of 50
Balance

4) Funds-Of-Fund schemes :

Kotak Equity FOF Kotak Blended FOF

5) Exchange traded funds :

Kotak Gold ETF Kotak PSU Bank ETF

f) Mutual Fund Distribution Channels :

CHANNEL MANAGEMENT (IFA’S)

Page 23 of 50
Channel Membership: According to SEBI rules, it is compulsory to pass AMFI exam to

be eligible for membership. To become a channel member Kotak AMC, Individual/ Firm

must get empanelled with AMC. Individual/ Firm needs to submit duly filled

Empanelment form along with photocopy of,

• AMFI Card

• AMFI Certificate

• PAN Card

• Partnership deeds in case of Partnership firm

g) Channel Motivation:

Kotak is doing number of activities to keep its channel partners motivated. It includes

following activities:

1) GURUKUL

This is a series of training sessions organized by Kotak AMC with the motive of helping

its channel partners do their business effectively. It is the unique event with no

promotional activities involved during the session.

2) INCENTIVE SCHEMES

Kotak AMC appreciates the efforts of its channel partners with regular incentive schemes

on different funds.

3) MAILING ACTIVITIES

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If any of the channel partners wants to do mailing activity in order to promote his firm,

Kotak helps them financially as well as designing leaflets.

Channel Commission

Depending on the potential of its channel partner, Kotak has three slabs. In every slab,

commission for different schemes is different. There are two types of commissions to be

paid at different time as,

UPFRONT COMMISSION: It is paid when business is logged in. It is slightly higher

than trail commission.

TRAIL COMMISSION: It is paid after completion of one year from the date of purchase.

It is paid as long as it is not redeemed or sold by investor.

Branches & Offices :

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.

Registered Office Address :

Kotak Mahindra Asset Management Co. Ltd.,

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36-38A, 3rd Floor,

Nariman Bhawan,
Mumbai - 400 021

Pune Branch Address :

Yashwant, Office No.31,3rd floor, Plot No.37/10 B,

Opposite Lane No. 9, Prabhat Road,

Pune - 411004

Historical development of the Company :

1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting.

1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market.

1990 The Auto Finance division is started.

1991 The Investment Banking Division is started, takes over FICOM,

one of India’s largest financial retail marketing networks.

1992 Enters the Funds Syndication sector.

1995 Brokerage and Distribution businesses incorporated into a separate

company – Kotak Securities. Investment Banking division incorporated into a

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 separate company – Kotak Mahindra Capital Company.

1996 The Auto Finance Business is hived off into a separate company –

Kotak Mahindra Prime Limited (formerly known as Kotak Mahindra

Primus Limited).

Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra

Limited, for financing Ford vehicles.

1998 Enters the mutual fund market with the launch of Kotak Asset Management

Company.

2000 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance Buisness.

Kotak Securities launches its on-line broking site (www.kotaksecurities.com).

2003 Kotak Mahindra Finance Ltd. converts to a commercial bank.- the first Indian

company to do so.

2004 Launches India Growth Fund, a private equity fund.

Kotak Mahindra.Launches a real estate fund also.

2006 Brought the 25% stake held by Goldmam Sachs in Kotak Mahindra Capital

Company and Kotak Securities.

Page 27 of 50
Competitors :

Average AUM For The

Sr.no. Mutual Fund Name Month (Rs in Lc)
1 ABN AMRO Mutual Fund 679100.47
2 AIG Global Investment Group Mutual Fund 380887.45
3 Baroda Pioneer Mutual Fund 5953.67
4 Benchmark Mutual Fund 264180.76
5 Birla Sun Life Mutual Fund 4107523.54
6 Canara Robeco Mutual Fund 393275.34
7 DBS Chola Mutual Fund 194078.69
8 Deutsche Mutual Fund 1103737.79
9 DSP Merrill Lynch Mutual Fund 2054041.86
10 Escorts Mutual Fund 16246.73
11 Fidelity Mutual Fund 810434.39
12 Franklin Templeton Mutual Fund 2474206.35
13 HDFC Mutual Fund 5271080.51
14 HSBC Mutual Fund 1735730.82
15 ICICI Prudential Mutual Fund 5947358.64
16 IDFC Mutual Fund 1164128.48
17 ING Mutual Fund 849610.65
18 JM Financial Mutual Fund 1165515.19
19 JPMorgan Mutual Fund 265470.28

Page 28 of 50
20 UTI Mutual Fund 5077056.56
21 LIC Mutual Fund 1863346.86
22 Lotus India Mutual Fund 740606.11
23 Mirae Asset Mutual Fund 243664.98
24 Morgan Stanley Mutual Fund 311083.45
25 Tauras Mutual Fund 29896.08
26 Quantum Mutual Fund 6661.66
27 Reliance Mutual Fund 9081345.11
28 Sahara Mutual Fund 17600.87
29 SBI Mutual Fund 3013240.09
30 Sundaram BNP Paribas Mutual Fund 1284672.32
31 Tata Mutual Fund 2385289.12

Achivements :

1) Kotak Investment Banking was honored with “Best Investment Bank” and “Best

Equity House in India” at Finance Asia Best Bank Awards 2008.

2) Kotak Mutual Fund's Kotak Bond Short-term was awarded ICRA Mutual Fund Gold

Award in the short-term Debt category for 1 year & 3 yeara – 2008.

3) Kotak Investment Bank bagged “Best Investment Bank” in the domestic category

in India by Finance Asia for the second year in a row.

4) Kotak Mutual Fund was given the ‘Best Debt Fund House’ and also was awarded

‘Wealth Creator Award’ at Outlook Money NDTV Profit 2007 awards.

Page 29 of 50
 RESEARCH
Page 30 of 50
 METHODOLOGY

a. what is research?

Market research is the systematic collection, analysis and interpretation of information

relevant to marketing decisions. Companies that use business models and frameworks in

their marketing planning always need market research.

Marketing research plays an important role in deciding on the marketing strategy by

providing information necessary for choosing an appropriate strategy. This could be

termed as marketing at the strategic level of marketing.

Marketing research plays the role of providing information for marketing decision at two

levels-strategic and tactical. The market research process begins with a definition of the

problems- brief. This is prepared by the sponsor of the research and it is converted into a

proposal by the market researchers. The proposal shows the design of study which often

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involves input from desk research and fieldwork made up of qualitative and quantitative

methods.

Research as a process involves defining an redefining problems, hypothesis formulation,

organizing and evaluating data, deriving deduction, inferences and conclusions, after

careful testing. Once the research problems are formulated and research design is

determined, the next task is data collection. Data are facts, figure and other relevant

materials, past and present, serving as basic for study and analysis. The entire scientific

process of measurement, analysis, testing and inferences depends upon availability of

relevant and accurate data.

b. Scope of the project :

1. Area of operations:

PCMC, Kothrud, Kalyani nagar, Balewadi, Aundh.

2. Location:

Pune city

c. Different sources and method of data collection?

There are two kinds of data collection techniques:-

1. Primary Data

2. Secondary Data

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 3. Questionnaire

4. Interview Technique

5. Observation

d. What is primary and secondary data?

Primary Data:

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Data that is collected for specific purpose at hand is called as primary data. In situation

where no secondary data is available, the only way out is to collect primary data. The

researcher has collected the information with the help of questionnaire observation and

through formal and informal discussion with project guide manager of TOI.

Secondary Data:

It may be defined as data that has been collected earlier for some purpose other than the

purpose of present study. Secondary source of data provide a wealth of information to the

researcher. The secondary Data can be useful benchmarks against which the finding of

study can be tested. During this project data collected through annual report, internal

circulars, past records, internet etc.

The data which we had was the primary data which had helped us very much. Basically

we had an industrial dictionary in which it had all the information about the organization,

the name of concern person, the nature of the company, it had the turnover of the

organization, name of the concern person etc.

f. Sample Size-

Out of the entire population 200 Individual Financial Advisors (IFA) were selected for

the research purpose.

g. Sampling technique

Judgement Sampling :

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The choice of samples depends on the judgement of the investigator. He includes those

items which he thinks are typical of the universe.

In solving basic problems and making public policy decisions , judgement sampling is

the only practical method of solving urgent problems. Success of this method depends on

the excellence in the judgement.

h. Reaserch Design

Descriptive Research:

Descriptive research design is well structured. This type of research design is undertaken

in various circumstances. This research design is very useful to know the characteristics

of certain groups such as age, sex, education level, occupation or income.

Cross sectional: This is most commonly used in the marketing research. This is a one-

shot research study at a given point of time and consists of a sample o the population of

interest. It gives a good overall picture of the position at a given time.

j. Limitations

1. Time is the main limitation of this project.(2 months)

2. Vast field area of the project. (pune city)

3. Busy schedule of respondent.

Page 35 of 50
 ANALYSIS
AND
INTERPRETATION

Q.1) Since how many years you are working with Kotak MF ?

Page 36 of 50
 No. of years votes

0 to 1 year 54%

2 to 3 years 27%

4 to 5 years 13%

More than 5 years 6%

0 to 1 yr
2 to 3 yrs
4 to 5 yrs.
more than 5 yrs.

Interpretation :

Out of 200 targeted IFA’s,

54% respondents working with Kotak MF between 0 to 1 yr.

27% respondents working with Kotak MF between 2 to 3 yrs.

13% respondents working with Kotak MF between 3 to 4 yrs.

6% respondents working with Kotak MF more than 5 yrs.

Q.2) What are the important factors you look into a fund?

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 Factors No of votes

Brand name/goodwill of the company 38

Brokerage/ Commission 12

Rating of the fund 33

Portfolio of the fund 62

Past experience with fund/AMC 8

CAGR return of the fund 89

Interpretation:

From the above diagram, we have found that 38 respondent satisfied with the Brand

name of fund, 12 respondent select a fund due to brokerage/commission, 33 respondent

satisfied with the rating of fund, 62 respondent satisfied with the portfolio of fund.

8 respondent using a fund because of past experience, 89 respondent satisfied with

CAGR return of the fund.

Q.3) How are the services of Kotak AMC Ltd.?

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 Category Percentage

1. Excellent 8%

2. Above Average 21%

3. Average 58%

4. Bellow Average 13%

Interpretation:

Out of 200 targeted IFA’s ,

8% respondents said services of Kotak are excellent,

21% respondent said services of Kotak are above average,

58% respondent said services of Kotak are average.

13% respondent said services of Kotak are below average.

Q.4) Which fund of Kotak MF you are recommending at this point in time?
Fund Percentage

Page 39 of 50
 1. ELSS 11%

2. Debt/ Liquid Funds 29%

3. Large Cap 11%

4. MIP 46%

5. Resurgent India Equity 3%

Interpretation :
Out of 200 targeted IFA’s,

11% respondents recommends ELSS fund of Kotak MF.

29% respondents recommends Debt/Liquid fund of Kotak MF.

11% respondents recommends Large cap fund of Kotak MF.

46% respondents recommends MIP fund of Kotak MF.

3% respondents recommends Resurgent India Equity fund of Kotak MF.

Q.5) Which of the Mutual Fund websites you visited most of the time ?

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 Website No of visitors

1. Money control 68

2. Value research 65

3. Bloomberg 11

4. Other 7

5. Don’t visit any website 38

Interpretation :

Out of 200 targeted IFA’s,

68 respondent visited Money control website,

65 respondent visited Value research website,

11 respondent visited Bloomberg website,

7 respondent visited other websites,

38 respondent dont visited any websites.

Q.6) In this volatile market, which fund category you prefer most?

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 Funds Percentage

1. Equity Diversified 12%

2. Large caps 15%
3. Debt/ Liquid 60%
4. Balanced 13%

Interpretation:

Out of 200 targeted IFA’s,

12% respondents preferred Equity diversified fund category,

15% respondents preferred Large caps fund category,

60% respondents preferred Debt/Liquid fund category.

13% respondents preferred Balanced fund category.

Q.7) Other than mutual funds, do you sell any other financial product?

Product No of Distributors

1. Insurance 97

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 2. Post Office schemes 73
3. Online share trading 13
4. CA 7

Interpretation:

Out of 200 targeted IfA’s,other than mutual fund,

97 respondents sell Insurance as a financial product,

73 respondents sell Post Office schemes as a financial product,

13 respondents sell Online share trading as a financial product,

7 respondents provide Charted Accountant services.

FINDINGS:

1. Out of 200 targeted IFA’s,54% respondents working with Kotak MF between 0 to

1 yr.,27% respondents working with Kotak MF between 2 to 3 yrs.,13%

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 respondents working with Kotak MF between 3 to 4 yrs.,6% respondents working

with Kotak MF more than 5 yrs.

2. From the above diagram, we have found that 38 respondent satisfied with the

Brand name of fund, 12 respondent select a fund due to brokerage/commission,

33 respondent satisfied with the rating of fund, 62 respondent satisfied with the

portfolio of fund 8 respondent using a fund because of past experience, 89

respondent satisfied with CAGR return of the fund.

3. Out of 200 targeted IFA’s ,8% respondents said services of Kotak are excellent,

21% respondent said services of Kotak are above average,58% respondent said

services of Kotak are average,13% respondent said services of Kotak are below

average.

4. Out of 200 targeted IFA’s, 11% respondents recommends ELSS fund of Kotak

MF, 29% respondents recommends Debt/Liquid fund of Kotak MF,11%

respondents recommends Large cap fund of Kotak MF,46% respondents

recommends MIP fund of Kotak MF,3% respondents recommends Resurgent

India Equity fund of Kotak MF.

5. Out of 200 targeted IFA’s, 68 respondent visited Money control website, 65

respondent visited Value research website,11 respondent visited Bloomberg

website,7 respondent visited other websites,38 respondent dont visited any

websites.

6. Out of 200 targeted IFA’s,12% respondents preferred Equity diversified fund

category,15% respondents preferred Large caps fund category,60% respondents

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 preferred Debt/Liquid fund category,13% respondents preferred Balanced fund

category.

7. Out of 200 targeted IfA’s,other than mutual fund,97 respondents sell Insurance as

a financial product,73 respondents sell Post Office schemes as a financial product,

13 respondents sell Online share trading as a financial product,7 respondents

provide Charted Accountant services.

Suggestions :

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There are various recommendations according to me, based on the findings of the

research and field work done:

1. Kotak has large no. of newly registered IFA’s, has to maintain the experience

ratio.

2. CAGR return of the fund is the most important factor before investment in MF.so,

company has to focus on this factor.

3. Kotak has to improve their services because satisfied no. of IFA’s is very few.

4. MIP has highest recommendation by IFA’s because of stability; therefore it has to

be maintained.

5. Money control & Value research are the most visited web sites among IFA’s, so

company has to promote this websites in effective manner.

6. Debt/ Liquid fund category is most preferred category, so company has to focus

on this category.

7. Insurance and Post office schemes are the most popular financial products other

than mutual fund, so company has to look after on this products because of

competiton.

CONCLUSION :

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1. Kotak has large no. of newly registered IFA’s.

2. CAGR return of the fund is the most important factor before investment in MF.

3. According to IFA’s, services of the Kotak are average.

4. MIP has highest recommendation by IFA’s because of stability.

5. Money control & Value research are the most visited web sites among IFA’s.

6. Debt/ Liquid fund category is most preferred category.

7. Insurance and Post office schemes are the most popular financial products other than

Mutual fund.

Page 47 of 50
BIBLIOGRAPHY

1. “Marketing Management” - Philip Kotler

2. “Research Methodology” - R. Minakshi.

Published by S. Chand & company

3. www.kotakindia.com

4. www.amfiindia.com

5. www.valueresearchonline.com

6. www.moneycontrol.com

Questionnaire

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Name:-_____________________________________ ARN No: - ________

Age:-________ Exp.____________ Contact No:-___________________

Q1) Since how many years you are working with Kotak MF ?

 0 to 1 year

 2 to 3 years

 4 to 5 years

 More than 5 years

Q.2) What are the important factors you look into a fund?

 Brand name/goodwill of the company

 Brokerage/ Commission

 Rating of the fund

 Portfolio of the fund

 Past experience with fund/AMC

 CAGR return of the fund

Q3) How are the services of Kotak AMC pvt. Ltd.?

 Excellent  Above Average  Average  Below average

Q.4) Which fund of Kotak MF you are recommending at this point in time?

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  ELSS  Large Cap  Resurgent India Equity

 MIP  Debt/Liquid funds

Q.5) Which of the Mutual Fund websites you visit on daily or monthly basis?

 Moneycontrol  Valueresearch  Bloomberg

 Other  Don’t visit any website

Q.6) In this volatile market, which fund category you prefer most?

 Equity Diversified  Large caps  Debt/ Liquid  Balanced

Q.7) Other than mutual funds, do you sell any other financial product?

 Insurance  Post Office schemes  Online share trading

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