Performance Evaluation for Managerial

Personnel at JM Financial, Jaipur

By: Mr. Rahul Purswani

MBA Part-I (2008-2010)

Project report
Submitted
To
Jagannath University
in partial fulfillment of
MBA program
 Rampura, Tehsil Chaksu, Jaipur.
Website:
www.jagannathuniversity.org

Student’s undertaking

I have been undertaking that this is my original

work and have never been submitted elsewhere.

Project Guides:

• Faculty- Dr. Kapil Khatter

 (By Rahul Purswani)

Acknowledgement
The success behind the completion of any good job is the
support and the joint team effort of a number of people. There are
many persons, whose help & cooperation, made this project
successful.

Sometimes words fall short to show gratitude, the same

happened with me during this project. The immense help and
support received from JM Financial Asset Management
Private Ltd. overwhelmed me during the project.

First and foremost I would like to express gratitude to Mr. Vikas

Agarwal (senior relationship manager) and other staffs for
their support and guidance in the Project work. I am extremely
grateful to my guide, Mr. Ashutosh Shahi (Distribution Head)
His continuous interaction and support made it possible for the
successful completion of the project. He always had the answers
to my queries, be it regarding any concept related to mutual
funds. His warmth support, practical guidance and easy
explanations not only regarding the project matters but others too
add to the success of my project.

I would like to thank all members of JM Financial Asset

Management Pvt. Ltd. for the valuable guidance & support.

I would like to thanks to my director Dr. R. K. Agarwal, MBA

coordinator Ms. Tulsi Goswami and to Dr. kapil Khatter. my
faculty guide, for his valuable assistance, keen interest and
constant motivation at each step of the project. It would not have
been possible for me to reach this stage without his support &
guidance.

I would also like to thank my parents and my friends for all

their time-to-time assistance. Last but not the least I would like to
thank God because without his divine grace nothing would have
been possible.

Rahul Purswani
Abstract
If size is the measure of dominance, then the Indian mutual
fund industry can now boast on that. With the total Asset Under
Management (AUM) increasing from Rs.25 Crores in march
1965 to Rs.4,17,300 Crores by march 2009, according to the
Association of Mutual Funds in India (AMFI), the industry’s growth
has been nothing but exceptional. It has indeed come a long way
from being a single player, single scheme (US-64) industry to
having 34 players and more than 480 schemes.

What has driven the growth? Numbers of factors have contributed

to the surge in the industry’s growth. First and foremost, a
buoyant domestic economy coupled with a booming stock market
has been one of the major drivers of the growth in recent times
particularly in the last five-year. Another significant factor
facilitating this growth has been a conducive regulatory regime,
thanks to increased effort by SEBI to improve market surveillance
and protect investor’s interests. Further, incentives, such as
making dividend tax free in the hands of investors have also
provided strong impetus to the growth.

This research covers various aspect of mutual funds industry in

India. Starting with basic concept of mutual fund and its
advantages it would give detail about the growth of mutual fund
industry in India, its present scenario.

It also throws some light on major mutual fund companies in

India, the different types of mutual funds on the basis of
structure, investment, load and schemes and also it covers the
different phases of growth of mutual fund industry. Then it covers
the calculation of NAV, the various investment plans, factor’s that
help in calculating the mutual fund performance.

In the end mutual fund analysis have been done on the basis of
Standard Deviation, Beta, Alpha and R Squared on various
schemes like Equity based Funds, Debt based Funds, Income
Plans, Gilt Funds & Tax Shield Schemes.

Executive Summary

In few years Mutual Fund has emerged as a tool for ensuring

one’s financial well being. Mutual Funds have not only contributed
to the India growth story but have also helped families tap into
the success of Indian Industry. As information and awareness is
rising more and more people are enjoying the benefits of
investing in mutual funds. The main reason the number of retail
mutual fund investors remains small is that nine in ten people
with incomes in India do not know that mutual funds exist. But
once people are aware of mutual fund investment opportunities,
the number who decide to invest in mutual funds increases to as
many as one in five people. The trick for converting a person with
no knowledge of mutual funds to a new Mutual Fund customer is
to understand which of the potential investors are more likely to
buy mutual funds and to use the right arguments in the sales
process that customers will accept as important and relevant to
their decision.

This Project gave me a great learning experience and at the same

time it gave me enough scope to implement my analytical ability.
The analysis and advice presented in this Project Report is based
on market research on the saving and investment practices of the
investors and preferences of the investors for investment in
Mutual Funds.

This Report will help to know about the investors’ Preferences in

Mutual Fund means Are they prefer any particular Asset
Management Company (AMC), Which type of Product they prefer,
Which Option (Growth or Dividend) they prefer or Which
Investment Strategy they follow (Systematic Investment Plan or
One time Plan). This Project as a whole can be divided into two
parts.

The first part gives an insight about Mutual Fund and its various
aspects, the Company Profile, Objectives of the study, Research
Methodology. One can have a brief knowledge about Mutual Fund
and its basics through the Project.

The second part of the Project consists of data and its analysis
collected through survey done on 200 people. For the collection of
Primary data I made a questionnaire and surveyed of 200 people.
I also took interview of many People. I visited other AMCs in Jaipur
to get some knowledge related to my topic. I studied about the
products and strategies of other AMCs in Jaipur to know why
people prefer to invest in those AMCs. This Project covers the
topic “Comparative analysis of different mutual funds”.
The data collected has been well organized and presented. I hope
the research findings and conclusion will be of use.

Table of Content
Student’s undertaking
Acknowledgement
Abstract
Executive Summary
1. Objectives
1
2. Research Methodology
2
3. Chapter – 1 Introduction
4
a. Concept 5
b. History of Indian mutual funds
10
c. Major mutual fund Companies of India
13
d. Mutual Fund Operation
20
e. Organization of a mutual fund
21
f. Types of a mutual fund schemes
22
g. Advertisement of mutual fund
27
h. Distribution channel 30
i. Offer Document
34
j. Regulation regarding cut-off Timings
37
k. NAV (Net Asset Value)
38
 l. Investment plans
39
m. Asset allocation principle
45
n. Comparison of investment product
47
o. Recent trends in mutual fund industry
54
p. Impact on the mutual fund industry of the Union Budget
57
q. Decision of SEBI for mutual fund industry
58

4. Chapter – 2 Company Profile

59
a. Vision
60
b. Profile 60
c. Corporate profile
61
d. Awards 62
e. CSR (Corporate Social Responsibility)
65
f. Market Share 66

g. SWOT analysis 67
5. Chapter – 3 Main chapter (Comparative
Analysis) 68
a. Funds which have been compared
69
 b. Risk 72
c. Measurement of mutual fund performance
73
d. Comparison of the schemes on the basis of Risk &
Return 77
6. Chapter – 4 Analysis & Findings
89
7. Chapter – 5 Conclusion & Recommendations
108
8. Appendices 111
a. Questionnaire 112
b. List of Tables 116
c. Glossary 117
d. Bibliography
118