A

Project Report

On

Mutual Fund

Submitted To: Submitted By:

m/s. Bhumika Juneja Prakash Rathor
Pgp Dual(Marketing)

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 DECLARATION

This is to certify that Summer Training Report entitled

“………………………”which is submitted by me in partial

fulfillment of the requirement for the award of degree

PGP Dual/ Retail, at Indore Indira Institute of Career

Studies, Indore, comprises only my original work and

due acknowledgement has been made in the text to all

other material used.

Date:

Name of Student: Prakash Rathor

Signature:

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 ACKNOWAGEMENT

• Summer Internship in NJ INDIA INVESTMENT was a very fruit

full experience for me. Here, I came to know about the practical
working of the real corporate world.
• First of all I would like to express my gratitude towards Mr
.Jeetendra Bajpai (Regional Head M.P. region) for giving me an
opportunity to work in the organization for the summer
internship.
• I would also like to thank Mr. Aslesh Vachhani(B.M) and Mr.
Ashish Kumar Jain (Customer Relationship Manager) for giving
me an opportunity to explore the market where I was able to learn
many things. He further helped me in solving various problems
which I faced during my work and about the Trading accounts
process.
• I would also like to thank Ashish Sir, Ashok Sir and Amandeep
sir for helping me to learn about the Mutual Fund. They helped
me in learning the various terminologies of the Mutual
Fund,Insurance,F.D.
• Lastly, I would like to thank all my co employees for their
support and guidance during the training.
I would like to express my gratitude towards Mr. Aslesh Vachhani for
giving me an opportunity to Internship project.

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 EXECUTIVE SUMMARY

Mutual Fund is a trust that pools the savings of a number of investors

who share a common financial goal. All investments whether in
shares, debentures or deposits involve risk. Share value may go down
depending upon the performance of the company, the industry, state of
capital markets and the economy. Generally however, longer the term,
lesser the risk.

Companies may default in payment of interest and principal on their

debentures/bonds/deposits. While risk cannot be eliminated, skillful
management can minimize risk. Mutual Funds help to reduce risk
through diversification and professional management.
The experience and expertise of Mutual Fund managers in selecting
fundamentally sound securities and timing their purchases and sales
help them to build a diversified portfolio that minimizes risk and
maximizes returns.
The research was conducted in Meerut based on the research problem
“Analysis of different mutual funds schemes in Indian
market” .The objectives of the study are:
Awareness of mutual funds in Indian market. To compare the

different companies’ equity schemes

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 Index

 Introduction of mutual fund

 Structure of Mutual Funds:
 Role of Mutual Funds
 Advantages of Mutual Funds for Investors
 Portfolio Diversification
 Liquidity
 Diversification of Risk
 Tax benefits
 Systematic Investment Plan (SIP)
 Advantages of SIP investment
 Systematic Withdrawal Plan
 Systematic Transfer Plan
 SCHEME OF MUTUAL FUND
 Equity Mutual Funds:
 Income Fund
 Liquid Funds
 Equity Linked Saving Schemes (ELSS)
 Open End and Close End Funds:
 Net Asset Value
 Entry and exit loads
 Portfolio Management services (PMS)
 Types of Hybrid Funds
 Introduction of NJ
 NJ Fundz Network
 NJ Realty Services
 NJ Gurukul
 Vision and Mission
 FOUNDER OF THE COMPANY
 Sales team in indore

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 Mutual Funds Industry in India
 Research Methodology
 Limitation of the study
 Questionnaire
 Bibliography
 Reference:
 Conclusion

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 Introduction of mutual fund

‘Do not Put All Eggs in One Basket’.

Mutual funds are a vehicle to mobilize moneys from investors, to

invest in different markets and securities, in line with the investment
objectives agreed upon, between the mutual fund and the investors.

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 these
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.

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 Structure of Mutual Funds:

In India mutual funds function as trust created under the Indian Trust
Act, 1882. There are three layers of mutual fund in India. (i) Sponsors
(ii) Trustee and (iii) Asset Management Company. Sponsors work as
Promoters of the company. They take responsibility of starting mutual
fund business. Sponsors contribute initial capital (40% of net worth of
AMC) and appoint Trustees and Board of Trustees. Board of Trustees
act as guardians of investors and ensure that money invested by
investors is used according to the objective of the scheme. Asset
Management Company is the public face of fund management
business. Sponsors and Trustees together form AMC and appoint Fund
Manager. Fund manager with help of fund management team makes all
investment decisions.

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 Role of Mutual Funds

Mutual funds perform different roles for different constituencies: Their

primary role is to assist investors in earning an income or building their
wealth, by participating in the opportunities available in various
securities and markets.
It is possible for mutual funds to structure a scheme for any kind of
investment objective. Thus, the mutual fund structure, through its
various schemes, makes it possible to tap a large corpus of money from
diverse investors.
(Therefore, the mutual fund offers schemes. In the industry, the words
‘fund’ and ‘scheme’ are used inter-changeably. Various categories of
schemes are called “funds”. In order to ensure consistency with what is
experienced in the market, this Workbook goes by the industry
practice. However, wherever a difference is
required to be drawn, the scheme offering entity is referred to as
“mutual fund” or “the fund”)

Advantages of Mutual Funds

for Investors

Mutual funds offer investors the opportunity to earn an income or build

their wealth through professional management of their investable
funds. There are several aspects to such professional management viz.
investing in line with the investment objective, investing based on
adequate research, and ensuring that prudent investment processes are
followed.

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 Portfolio Diversification

Do not Put All Eggs in One Basket’. Mutual Fund is the best vehicle to
apply this proverb in practical life as a diversified equity scheme invests
across multiple sectors and stocks. A typical diversified equity scheme
holds around 30 to 50 stocks in portfolio so even if few stocks or sectors
do not perform well investor’s money can get protected

Liquidity
At times, investors in financial markets are stuck with a security for
which they can’t find a buyer – worse, at times they can’t find the
company they invested in! Such investments become illiquid
investments, which can end in a complete loss for investors.

Diversification of Risk
Whatever is your investment amount, that amount gets diversified
across multiple stocks held by fund manager.

Tax benefits
Specific schemes of mutual funds give investors the benefit of
deduction of the amount invested, from their income that is liable to
tax. This reduces their taxable income, and therefore the tax liability.
Further, the dividend that the investor receives from the scheme, is tax-
free in his hands.

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 Systematic Investment Plan (SIP)
A Systematic Investment Plan allows an investor to buy units of a
mutual fund scheme on a regular basis by means of periodic
investments into that scheme in a manner similar to installments paid
on purchase of normal goods. The investor is allotted units on a
predetermined date specified in the application form of the scheme
based on that day’s NAV. Here the Plan allows the investor to take
advantage of the Rupee Cost Averaging methodology.

Advantages of SIP investment

Systematic Investment Plan offers following two major advantages:

• Rupee cost averaging. This means as you are investing a

particular amount every month at prevailing NAV you
accumulate more number of units when NAV is low and more
number of units when NAV is high. So this automatically brings
down your unit cost by way of rupee cost averaging.
• SIP is the best tool to accumulate long term wealth by taking
advantage of rupee compounding in long term.

Disciplined Investment

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Through an SIP, an investor pledges to invest a fixed amount of money
on a monthly basis in a mutual fund scheme for a predetermined time
period. Also SIP provides the investor with the flexibility to increase
the amount of his monthly installment at any time.

Affordable
Investments do not necessarily mean that one has to collect a
substantial chunk of money to invest. One can start investing with a
very small amount through an SIP.

Easy to Invest
When we think monthly installments, we generally think of one more
date to remember apart from the bill payment dates. That is not the
case with an SIP. You have the convenience of direct debit of your SIP
installments through Electronic Clearing Service (ECS) facility. Your
SIP amount automatically gets debited from your bank account on
the predetermined date

Helps in Compounding Your Wealth

Getting rich is simpler than you think, here's a simple formula to get
rich:
Start Early + Invest Regularly = Create Wealth

Every investor dreams of purchasing stocks at a low price and selling it

at a higher price. But, how does one know whether any given time is
the right time to buy or sell? Many retail investors try to judge the
market movements and end up losing their monies in the long term. A
more successful strategy is 'Rupee Cost Averaging' wherein you invest
a fixed amount regularly. Thus you purchase more when the prices are
low and purchase less when the prices are high. SIP investments take
advantage of this strategy:

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Equity - The best asset class

Equity gives best inflation adjusted return among all asset classes over
a long period of time.

are on CAGR basis. Blue bar reflects inflation adjusted return.

As the graph shows, equity is the only asset class which has given
positive inflation adjusted return of 9.77% against other asset classes. It
is evident from the graph that in the long term, equity investments have

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helped outperform various other investment avenues and has also
helped beat inflation by a huge margin.
Portfolio Management System

Systematic Withdrawal Plan

A Systematic Withdrawal Plan permits the investor to receive a pre-
determined amount / units from his investment in a mutual fund
scheme on a periodic basis. Retirees in need of a regular income often
opt for this.

Systematic Transfer Plan

An STP allows the investor to transfer a pre-determined amount from

his investment in a mutual fund scheme to another mutual fund scheme
(of the same company) on a periodic basis. This Plan is generally used
to transfer sums from a Money Market / Liquid / Cash scheme to
another scheme.

SCHEME OF MUTUAL FUND

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 Equity Mutual Funds:

These types of funds invest investorï's money in equity shares. This

funds work on basic concept of ï'High Risk ï' High Returnï'. Among all
categories of products this type of funds have potential to generate
highest return but investors have to face highest risk. As money gets
invested in equity market, the performance of these type of funds
largely depend on equity markets but fund managers due to their
expertise and research tend to outperform benchmark indices over a
long investment horizon.
Among equity funds, fund managers adopt different investment
strategies and accordingly schemes can be divided. There can be
different schemes like value funds, growth funds, sector funds, contra
fund etc depending on the style of investment.
Equity mutual funds are most suited for investment horizon of three
years and above as in short term equity markets remain highly volatile.
Within equity mutual fund basket there are number of options available
to investors to choose from according to his risk taking capability.
Equity funds can be broadly classified into Large Cap Funds, Mid Cap
Funds and Blend Funds. Large Cap funds invest in bluechip companies
which offer stable return with low volatility.

Income Funds:

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These are the debt category of funds. They invest in fixed income
generating instruments and that is why they are broadly called income
funds. They invest in large universe of debt instruments like money
market instruments, T bill, corporate bonds, government securities etc.
The main objective of Income funds is to generate steady return at
lower level of risk. Based on underlying assets and duration these
funds can be classified in different categories like gilt funds and
income funds. As name suggests gilt funds invest only in government
securities where as income funds invest in corporate bonds and
debentures along with G secs. As gilt funds invest only in G sec there
is no default risk involved. Both Income funds and Gilt funds are
mainly affected by changes in interest rates in the economy.

Liquid Funds:

These funds are normally used to park very short-term funds on a

temporary basis. Investment horizon should ideally be from one day to
three months. Investment is done in very short term debt instruments
like inter bank call money market, T bills, Certificate of Deposits
issued by government. As investment maturities are short, they are not
vulnerable to interest rate risk.
As name suggests, liquidity level is very high as investor gets money
credited in his/her account within 24 hours of redemption.

Equity Linked Saving Schemes (ELSS):

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These schemes are similar to equity schemes with only difference
being it comes with 3 year lock in period and provide Section 80 C
benefit under income tax. By investing Rs.1 lakh in any of the ELSS
scheme available, an investor can save tax by claiming deduction under
Section 80 C. Like equity funds, ELSS also invests in equity shares and
subject to risks associated with stock market.

Open End and Close End Funds:

This is another type of classification of schemes. An open end fund is

the one that sells and repurchase units at all times. An investor can buy
or sell units from fund itself at prevailing NAV.
In close end fund, only one time sale of fixed number of units are made
and investor can purchase units during that specific period. Closed end
funds do not allow investors to buy or sell units directly from the fund.
However to provide liquidity, close ended funds do get listed on the
stock exchange and trade at premium or discount to NAV based on
investorï's perception about fund performance and other factors. The
number of outstanding units of a close-ended fund does not vary on
account of trading in the fundï's units on the exchange

Net Asset Value

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Net Asset Value is the price of one single unit of the scheme. It is
derived at my deducting fund’s liabilities from market value of assets
and dividing by number of units outstanding. i.e. (Market Value of
investments ï' Liabilities) / Number of units outstanding.

Entry and exit loads

This is a fee charged when you buy or sell the units of the scheme.
Entry load is charged when you enter (purchase) units and exit load is
charged when you exit (sell) units of the scheme.
When you buy units, you pay a certain percentage of NAV as fee
which is known as entry load. When you sell units, similarly you get
money after exit load getting deducting from your sell price. e.g. If you
invest Rs. 10000 in a scheme with NAV of Rs.10 and entry load of
2.25% you will get 977.995 units (Rs. 10000/Rs.10.225) similarly
when you sell the same number of units at Rs. 20 with exit load of 2%
you will get Rs.19168.702 ( units 977.995 * Rs. 19.6 per unit) after
excluding exit load of 2%.

Portfolio Management services (PMS)

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Financial markets today offer enormous growth potential. But
managing your own investments can be an extremely challenging task.
Anticipating market trends, assessing the impact of socio-economic
changes on your investments, keeping abreast of latest corporate
developments and financial analysis all adds up. Managing one’s
investments can become nearly a full-time affair that requires
considerable time and expertise.

During your journey of life, you need to make numerous plans and take
important decisions. Some of these decisions have strong financial
implications and can alter the course of your life and when it comes to
investing your hard earned money, you need to partner with someone
you trust, one who will make your money work hard.

The idea of Portfolio management is to overcome the pace of change in

business landscape and provide investment avenues to stay ahead of
the risk return curve and generate positive returns consistently over a
period of time.

During times of intense market volatility, it can be difficult to know

what, if anything, you should do. Staying calm, keeping your sense of
perspective, taking a rational look at your investments, and seeking the
advice of a professional are all smart strategies you can follow.

PMS benefits investor in following ways

1. Professional Management – PMS is provided by qualified

and professional investment managers with the objective to
deliver consistent long term performance while controlling risk.

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2. Continuous Monitoring – It is important to recognize that
portfolios need to be constantly monitored and periodic changes
should be made to optimize the results.
3. Risk Control – The investment manager employs a qualified
research team to establish the investor's investment strategy and
providing the information to the investment manager. This also
helps in reducing the investment related risks up to significant
extent.
4. Hassle Free Operation – The investment manager gives the
investor a customised service. He takes care of all the
administrative aspects of the investor's portfolio with a periodic
reporting on the overall status of the portfolio and performance.
The investment manager provides various types of reports to his
investors on a regular basis. These reports are related to the
transactions made on their behalf, current holdings of the
investment portfolio and realized Profits and Losses to name a
few.
5. Flexibility – The Portfolio Manager has fair amount of
flexibility in terms of investing patterns and procedures. He can
create a reasonable concentration in the investor portfolios by
investing disproportionate amounts in favour of compelling
opportunities
6. Transparency – PMS provides comprehensive
communications and performance reporting. Investors will get
regular statements and updates from the investment manager.

Interval funds combine features of both open-ended and

Closeended
schemes. They are largely close-ended, but become openended
at pre-specified intervals. For instance, an interval scheme
might become open-ended between January 1 to 15, and July 1 to
15, each year. The benefit for investors is that, unlike in a purely
close-ended scheme, they are not completely dependent on the
stock exchange to be able to buy or sell units of the interval fund.

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 Actively managed funds are funds where the fund manager has
the flexibility to choose the investment portfolio, within the broad
parameters of the investment objective of the scheme. Since this
increases the role of the fund manager, the expenses for running
the fund turn out to be higher. Investors expect actively managed
funds to perform better than the market.

Passive funds invest on the basis of a specified index, whose

performance it seeks to track. Thus, a passive fund tracking the
BSE Sensex would buy only the shares that are part of the
composition of the BSE Sensex. The proportion of each share in
the scheme’s portfolio would also be the same as the weightage
assigned to the share in the computation of the BSE Sensex.
Thus, the performance of these funds tends to mirror the
concerned index. They are not designed to perform better than the
market. Such schemes are also called index schemes. Since the
portfolio is determined by the index itself, the fund manager has no
role in deciding on investments. Therefore, these schemes have
low running costs.

Gilt funds invest in only treasury bills and government securities,

which do not have a credit risk (i.e. the risk that the issuer of the
security defaults).

Diversified debt funds on the other hand, invest in a mix of

government and non-government debt securities.

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 Junk bond schemes or high yield bond schemes invest in
companies that are of poor credit quality. Such schemes operate
on the premise that the attractive returns offered by the investee
companies makes up for the losses arising out of a few companies
defaulting.

Fixed maturity plans are a kind of debt fund where the

investment portfolio is closely aligned to the maturity of the
scheme. AMCs tend to structure the scheme around pre-identified
investments. Further, like close-ended schemes, they do not
accept moneys post-NFO. Thanks to these characteristics, the
fund manager has little ongoing role in deciding on the investment
options.

Types of Hybrid Funds

Monthly Income Plan seeks to declare a dividend every month. It

therefore invests largely in debt securities. However, a small
percentage is invested in equity shares to improve the scheme’s
yield.

As will be discussed in Unit 8, the term ‘Monthly Income’ is a bit of

a misnomer, and investor needs to study the scheme properly,
Before presuming that an income will be received every month.

Capital Protected Schemes are close-ended schemes, which are

structured to ensure that investors get their principal back,
irrespective of what happens to the market. This is ideally done by
investing in Zero Coupon Government Securities whose maturity is
aligned to the scheme’s maturity. (Zero coupon securities are
securities that do not pay a regular interest, but accumulate the
interest, and pay it along with the principal when the security
matures).
As detailed in the following example, the investment is structured,

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 such that the principal amount invested in the zero-coupon
security, together with the interest that accumulates during the
period of the scheme would grow to the amount that the investor
invested at the start.
Suppose an investor invested Rs 10,000 in a capital protected
scheme of 5 years. If 5-year government securities yield 7% at
that time, then an amount of Rs 7,129.86 invested in 5-year zerocoupon
government securities would mature to Rs 10,000 in 5

Mutual Funds Industry in India

The origin of mutual fund industry in India is with the introduction of
the concept of mutual fund by UTI in the year 1963. Though the
growth was slow, but it accelerated from the year 1987 when non-UTI
players entered the industry.

In the past decade, Indian mutual fund industry had seen a dramatic
imporvements, both qualitywise as well as quantitywise. Before, the
monopoly of the market had seen an ending phase, the Assets Under
Management (AUM) was Rs. 67bn. The private sector entry to the fund
family rose the AUM to Rs. 470 bn in March 1993 and till April 2004,
it reached the height of 1,540 bn.

Putting the AUM of the Indian Mutual Funds Industry into

comparison, the total of it is less than the deposits of SBI alone,
constitute less than 11% of the total deposits held by the Indian
banking industry.

The main reason of its poor growth is that the mutual fund industry in
India is new in the country. Large sections of Indian investors are yet
to be intellectuated with the concept. Hence, it is the prime
responsibility of all mutual fund companies, to market the product
correctly abreast of selling.

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The mutual fund industry can be broadly put into four phases according
to the development of the sector. Each phase is briefly described as
under.

First Phase - 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of

Parliament. It was set up by the Reserve Bank of India and functioned
under the Regulatory and administrative control of the Reserve Bank of
India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and
administrative control in place of RBI. The first scheme launched by
UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700
crores of assets under management.

Second Phase - 1987-1993 (Entry of Public Sector Funds)

Entry of non-UTI mutual funds. SBI Mutual Fund was the first
followed by Canbank Mutual Fund (Dec 87), Punjab National Bank
Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of
India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC in 1989 and
GIC in 1990. The end of 1993 marked Rs.47,004 as assets under
management.

Third Phase - 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the
Indian mutual fund industry, giving the Indian investors a wider choice
of fund families. Also, 1993 was the year in which the first Mutual
Fund Regulations came into being, under which all mutual funds,
except UTI were to be registered and governed. The erstwhile Kothari
Pioneer (now merged with Franklin Templeton) was the first private
sector mutual fund registered in July 1993.

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The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996. The
industry now functions under the SEBI (Mutual Fund) Regulations
1996.

The number of mutual fund houses went on increasing, with many

foreign mutual funds setting up funds in India and also the industry has
witnessed several mergers and acquisitions. As at the end of January
2003, there were 33 mutual funds with total assets of Rs. 1,21,805
crores. The Unit Trust of India with Rs.44,541 crores of assets under
management was way ahead of other mutual funds.

Fourth Phase - since February 2003

This phase had bitter experience for UTI. It was bifurcated into two
separate entities. One is the Specified Undertaking of the Unit Trust of
India with AUM of Rs.29,835 crores (as on January 2003). The
Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and
does not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB
and LIC. It is registered with SEBI and functions under the Mutual
Fund Regulations. With the bifurcation of the erstwhile UTI which had
in March 2000 more than Rs.76,000 crores of AUM and with the
setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund
Regulations, and with recent mergers taking place among different
private sector funds, the mutual fund industry has entered its current
phase of consolidation and growth. As at the end of September, 2004,
there were 29 funds, which manage assets of Rs.153108 crores under
421 schemes.

25
GROWTH IN ASSETS UNDER MANAGEMENT

26
 Introduction of NJ

Creating Wealth Transforming Lives

Doing the 'right' thing is a virtue most desirable. The difference

between success and failure is often, not dictated by knowledge or
expertise, but by its actual application and perseverance. When it
comes to successful wealth creation for customers, it is something that
we believe in & practice. For us it is more than a mission; it is what
defines our lives and our actions at NJ India Invest.

With this passion, we continue to evolve and make the right product
accessions and service innovations in our offerings. To the advisors,
we offer a 360° comprehensive business platform with unmatched IT
solutions, empowering them to set the best practice standards and
deliver real value to their customers. Over the years, our passion has
seen us grow from strength to strength and expand rapidly, setting new
benchmarks in the process. But to us, what really matters the most is
the number of lives we have managed to transform and we still have a
long way to go...

Today NJ India invest Pvt. Ltd. is one of the leading advisors and
distributors of financial products and services in India. Established in
year 1994, NJ has over a decade of rich exposure in financial
investments space and portfolio advisory services. From a humble
beginning, NJ, over the years has evolved out to be a professionally
managed, quality conscious and customer focused financial /
investment advisory & distribution firm.

27
We are headquartered in Surat, India, and have more than INR 10,000*
Crores of mutual fund assets under advice, with a wide presence at
over 100+ locations in 21 states in India. The numbers are reflections
of the trust, commitment and value that NJ shares with 11 Lac plus
customer base with over 14000+ Advisors.

NJ prides in being a professionally managed, quality focused and

customer centric organization. The strength of NJ lies in the strong
domain knowledge in investment consultancy and the delivery of
sustainable value to clients with support from cutting-edge technology
platform, developed in-house by NJ.

NJ, believe in..

• Having single window, multiple solutions that are integrated for

simplicity and sapience
• Making innovations, accessions, value-additions, a constant
process
• Providing customers with solutions for tomorrow which will keep
them above the curve, today

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 NJ Fundz Network

NJ Fundz 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 & continuity of business. It provides the financial advisors and
the institutions that serve them with insights, strategies and tools to
help them significantly grow their businesses. How do we do it? That’s
because we understand how financial & wealth management
businesses work and what is needed to manage, monitor and grow the
practice

First in the Indian Mutual Fund Industry to offer a Complete

Business Platform to Advisors

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 NJ Realty Services
This is an integrated service model offering solutions for meeting the
diverse real-estate needs of corporates & retail customers in transacting
properties.

Finding the right property at the right value and the best buyer for a
property is the crux of any realty solution. At NJ India Realty we value
this critical element of retailing and aim to provide the customer with
an integrated service model that not only focuses on him meeting his
desired needs but also on enhancing the overall experience of the
transaction.

The scope of properties embraces both commercial & residential

projects / properties. The integrated value-added services ensure that
the solutions are feasible, authentic, secure & profitable.

Leveraging upon the strengths of the parent company NJ, NJ India

Realty aims to offer attractive options and operational guidance to
satisfactorily realize the customers realty dreams.

Today NJ Realty Services has tied up with over 40 developers with

over 150 projects across India.

30
 NJ Gurukul

Making people benefit from the growing economy is possible by

attracting them to participate in Equity for long term, to make their
money work for itself and create wealth. For this to happen, a huge
force of effective Financial Advisors is needed. Visualizing this need
and with a view to bridge the gap, NJ India Invest Pvt. Ltd. has set up
NJ Gurukul to offer different training programs at moderate costs.

NJ Gurukul works to conceive, craft, design, develop and execute

effective training modules to energize people with right inputs through
different training programmes at modest cost. Powered by NJ's
experience of over 14 years as leaders in financial advisory services,
NJ Gurukul has emerged successful in conducting sizeable number of
trainings since inception in April 2007 and enjoys lineage of efforts put
in by NJ prior to April 07. NJ Gurukul seeks to create an enlightened
community of ‘quality’ financial advisors capable of changing millions
of lives across India and even beyond…

NJ Gurukul also seeks to help people become better professionals /

business personalities & achieve success in their own endeavors.

For businesses, as a people partner, NJ Gurukul seeks to groom

employees & management so that they deliver upon their expectations
& responsibilities, successfully. NJ Gurukul is authorised to give
training for Certified Financial Planner (CFP) by FBSB India. Today
NJ Gurukul has offered over 1200 training programmes with over
20000 candidates.

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 Vision and Mission

Vision:
Creating Wealth Transforming Lives

• Total Customer Satisfaction

• Commitment to Excellence
• Determination to Succeed with strict adherence to compliance
• Successful Wealth Creation of our Customers

Mission:
We work towards building trusted relationship with our stakeholders,
for inclusive growth through constant process of innovation, time
bound implementation & execution of ideas and technological
developments. We stretch our means and go overboard to make sure
that our clients' aspirations, dreams and expectations are met with,
through high service standards.

FOUNDER OF THE COMPANY

Neeraj choksi - joint manager

Jignesh Desai - joint manager

32
 Sales team in surat

Misbah baxamusa - National Head

Kulbhushan nandwani - A.V.P
Prashant Kakkad - A.V.P
Anil Taliaya - Zonal Manager
Manish Gadhvi- Zonal Manager
Sarfaraj Patel - Zonal Manager
Tushar Bhajantri - Zonal Manager

Sales team in indore

Jeetendra Bajpai - Regional Manager

Aslesh Vacchani - Branch Manager

Ashish Kumar Jain - Relationship Manager

Ashok Daftari - Relationship Manager

Amanjeet singh - Relationship Manager

33
 Quality online Wealth Account:

As a premium client you would have access to one of the best online
investment accounts that offer comprehensive reports, many of which
are unique in nature and give valuable insights on our investments

Our online Wealth Account covers almost all the investment

avenues that you may have:

• Mutual Funds – All AMCs, All Schemes

• Direct Equity
• Life Insurance
• Physical Assets – Gold and Property
• Private Equity – Business
• Debt Products

Bank Deposits and Company Deposits

o RBI / Infrastructure Bonds

o Postal Savings – KVP, MIS, NSC
o Debentures
o Small Savings – PPF, NSS

You would have access to Consolidated Net Asset Reports which

would give you a single view of all your investments into different
avenues as given above.

Further, within each of the Asset class we have many more reports and
utilities. Some of the reports covered are …

34
Consolidated:
Consolidated Asset Allocation, Consolidated Net Asset, Interest
Income, Profit & Loss

Mutual Funds:
Valuation, Transaction, Profit & Loss, Performance, Portfolio reports
like - AMC / Sector / Equity / Credit / Debt Exposure, Weighted
Average Maturity, Dividend history, etc

Direct Equity:
Demat accounts, Transaction, Valuation, Profit & Loss

Life Insurance:
Policy Report, Premium Reminder, Cash Flow

Debt:
Transaction, Interest Income, Maturity reports for different Assets

BUSINESS MODULE OF NJ

35
\

AMC

NJ

PARTNER

CLIENT

RESEARCH METHODOLOGY

36
Research Problem

Evaluation of different mutual funds schemes in Indian market

Research Objective
The objectives of the study are as following:

Awareness of mutual funds in Indian market.

To compare the different companies’ equity schemes.

To compare the different companies’ debt schemes.

To identify the best assets allocations pattern schemes.

To identify the best sectorial allocation fund.

To identify the best performing schemes.

To identify the consumer behavior while selecting a fund.

To identify the consumer perception about mutual funds.

Research is divided in two parts:

Research Design

Type of Research

Research methods

Collection of data

37
 Sample Design

Type of Research:

Descriptive and Analytical type of study was adopted while conducting

the project.

Sampling Design was taken by the researcher as the Research design.

The major purpose of the study is to describe the state of affairs as it

exists at present. Include survey & fact-finding enquiries of different

kinds.

The study was based on the facts or information already available, &

analysis of this available information make a critical evaluation of the

material.

Research method:

Research methods are understood as all those methods and techniques

that are used for conduction of research. Research methods or

techniques refer to methods the researchers use in performing research

operation. In other words, all those methods which are used by the

38
researchers during the course of studying his research problems are

termed as research methods. Since the object of research, particularly

the applied research, is to arrive at a solution for a given problem, the

available data and the unknown aspects of the problem have to be

related to each other to make a solution possible. Keeping this in view

the researcher took the following two methods:

• Analysis of documents

• Interview

Collection of data:

Primary data:- Survey methods:

This method was adopted because it helps to procuring data and detail

information from the respondents. Here the researcher collected data

by filling questionnaires, directly talking to the respondents.

Secondary data:

39
The researcher has also used the secondary data which include various

written documents and other related information about the mutual fund

industry in India.

SAMPLE DESIGN
Area of Sample:
• The areas covered up in this survey was Meerut

Selection of units under study

Sampling Units BEGUM PUL, ABU LANE and P.L.SHARMA

ROAD>

Source list (Sampling Frame)

Business class: 25

Professional class: 20

(Like Doctor, Advocate, Consultant, C.A., C.S., so. on)

Service class: 35

(Government, Semi-Government &Private Sectors)

Students: 20

Household Ladies: 10

Others : 10

40
Sample size: 120

Sampling procedure: Probability Sampling (Simple Random

Sampling)

LIMITATION OF THE STUDY

 Time:-Acutely one and half month is very less time to judge these

whole types of funds.

 Experience: - without post experience it is very hard task to

collect this information from different sorceries and analyze

them.

 Attitudes and nature: - Researches and invertors attitudes and

natures are not some way.

 Lack of Information: - Companies not provides whole data.

41
 ANALYSIS OF THE COMPANIES

 Analysis on the basis of past performance. Analysis of debt

based fund on the basis of past performance are following :-

Period Kotak Mahindra Reliance

Kotak bond Kotak Income Mont-

floater short Fund hly

income
plan
Last 6 month ---- ---- ---- ----

Last 1 year 4.61 4.40 4.20 17.64

Last 3 year ---- ---- 4.86 ----

Last 5 year ---- ---- 8.25 ----

Since 6.23 5.07 9.99 18.82

inception

Above table shows performance of the each debt based funds. In

these funds the reliance monthly income plan batter then the other
comparative funds. Because its first year return is 17.64% and since

42
inception is 18.82% Its return also good. Since inception and in first
year. The reasons behind this good return are good management of
fund and better allocation of funds.

 Analysis on the basis of sector allocation

analysis of the debt based fund on the sectorial allocation of fund

are following :-

Sector Kotak Mahindra Reliance

Kotak bond Kotak Income Mont-

floater short Fund hly

income
plan
Debenture & 76.6% 67.5% 15.23 80.61

Bonds
Commercial 16.8% 23.8% 45.89 10.86

Paper &
certifies of
deposit
Liabilities 6.6% 1.8% ---- ----

43
Collateral ---- 6.9% 7.91 41.09
borrowing &
lending
obligation &
term deposit
PSO/PFI ---- ---- 15.53 2.41

Private
corporate ---- ---- 9.26 11.85
securities
Cash & call ---- ---- 6.18 6.27

Current assets ---- ---- ---- ----

Equity ---- ---- ---- 18.43

The above table show sectorial allocation of debt funds Kotak

funds more emphasis in debenture & bonds but reliance funds more
investment in term deposits. Thus these funds are low return and highly
secure funds. In these funds reliance monthly income plan are good
manage plan and its returns are high comparatively other debt funds.
Hence reliance monthly income plan are good fund.

The above table shows different companies different debt

schemes. On the basis of critical analysis of debt fund scheme we come

44
to know that these are very secure schemes. The investors who want to
take very minimum risk debt funds are good schemes for those
investors.

No doubt return in debt fund schemes would be less comparative

to equity based schemes but amount of risk is very less in debt fund
schemes.

Debt fund schemes would provide return higher than bank

deposit funds. This shows that although return is less in debt fund
schemes but yet this return would be higher then banks return with the
plus point of secure funds.

So we can say that debt funds schemes are good schemes for
investment if you have some spare or use less money.

You are very much secure by investing these schemes with a

good return in future.

Description work assigned during training

During my training I did different department work like as marketing

department, finance department, operation department, firstly when I
strated training so I did a work in marketing department . under ashish
jain sir he learnt me how did we work in market how we sale a product
in the market. He learnt a basic things which is necessary for a market.

45
Then I did a training in finance department where I do a calculation .
and in last I do a work in operation department where I lernt how is we
do a entry of a form in daily record and which type of document
necessary .

SUGGESTIONS AND RECOMMENDATIONS

After study and comparison of different companies different

schemes. According to me following improvement should be in

schemes.

 The assets allocation should be in different types of instruments.

 The management of schemes should be good quality.

 The sectorial allocation of schemes should be different sectors.

 The debt based schemes sector allocation not only debt market but

also some part in equity market.

46
 Questionnaire

1). Name of Person:

2).Contact Number:

3). E-mail Id

4) Are you aware of Share Market?

Yes No

5) .Do you have invested your money in stock market?

Yes No

6) Do you know about any stock brooking company?

Yes No

7) How Do You Aware about the share market?

Print media TV Channel

Friends Others

47
8) Do you have a Demat Account?
Yes No

9) Presently in which security are you trading?

10).How did you know about Indiabulls?

Advertisement_______

Tele – calling_______

Friends & Relatives________

Other Sources________

11) Are you interested in indiabulls?

Yes No

12) What is the age group of investor?

20 – 30 30 – 40

40-50 50- Above

13) What is the monthly income of investor?

0 – 10000 10000 – 25000

25000 – 50000\ 50000 – Above

48
14) On what basis you choose your Broker?

Experience Low commission

Easy availability other

15).Yours’ suggestion for improvement in Indiabulls securities,

product & services?

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 BIBLIOGRAPHY
Books:

• Chandra, Prasanna : Investment analysis and Portfolio

Management

• Donald E. Fischer : Security analysis and portfolio Management

Ronald J. Jordan
• Kothari, C.R.; Research Methodology

News papers:

• Times of India

• Economic Times

• Financial Times

References

• Outlook ‘Money’- the layman’s guide to mutual funds

• Brand reporter- Mutual Fund

Websites:

50
• www.njindia.com

• www.kotakmutual.com
• www.reliancemutaual.com
• www.amphiindia.com
• www.religare.in
• www.amfi.com

• www.utimf.com

• www.licmutual

51
 CONCLUSION:

From the survey it is very clear that people are investing more in
Mutual Fund schemes in the market. Their main aim is to earn profit.
There are a lot of people who have an experience of even more than
five years of mutual fund industry in the market and they have a good
experience of it as well. Hence it can be concluded from the above
survey that the people have a long term interest in the mutual fund
industries and even have a good experience of it.

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