INTRODUCTION

A) INTRODUCTION TO FINANCIAL MANAGEMENT

Financial Management is about preparing, directing and managing the money activities of
a company such as buying, selling and using money to its best results to maximise wealth
or produce best value for money. It is basically applying general management concepts to
the cash of the company. Financial Management can also be defined as – The
management of the finances of a business organisation in order to achieve financial
objectives

“Financial management is concerned with raising financial resources and their effective
utilisation towards achieving the organisational goals” Dr. S. N. Maheshwari.

“Financial management is the process of putting the available funds to the best advantage
from the long term point of view of business objectives” Richard A. Brealey
It is crucial for both public and private sector organisations.
Taking a commercial business as the most common organisational structure, the key
objectives of financial management would be to:
 Create wealth for the business
 Generate cash
 Provide an adequate return on investment bearing in mind the risk that the business is
taking and the resources invested.

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B) INTRODUCTION TO MUTUAL FUNDS

A Mutual Fund is a type of financial vehicle made up of a pool of money collected from
investors to invest in securities.

A Mutual Funds offers investors the opportunity to pool their money with other investors in an
investment that’s managed by professional investment managers. Mutual Funds invest in stocks,
bonds or other securities according to each fund’s objective.

Mutual funds are operated by professional money managers, who allocate the fund’s assets and
attempt to produce capital gains or income for the fund’s investors.

A mutual fund’s portfolio is structured and maintained to match the investment objectives stated
in its prospectus.

It is a trust that collects money from a number of investors who share a common investment
objective. Then, it invests the money in equities, bonds, money market instruments and/or other
securities. Each investor owns units, which represent a portion of the holdings of the fund. The
income/gains generated from this collective investment is distributed proportionately amongst
the investors after deducting certain expenses, by calculating a scheme’s “Net Asset Value or
NAV.

FINANCIAL INTERMEDIARIES

Financial Intermediary is an institution or individual that serves as a middleman among diverse

parties in order to facilitate financial transactions. It includes commercial banks, stockbrokers,
pooled investment funds, and stock exchanges. Financial intermediaries reallocate otherwise
uninvested capital to productive enterprises through a variety of debt, equity, or hybrid stake
holding structures. A bank or other financial institution that serves as a facilitator between two
parties to a financial arrangement. Execution of loans, property sales, business contracts, or other
agreements often require a financial intermediary to guarantee payment to one party, or to
provide access to funding for completion of the agreement.

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 COMPANY PROFILE

NJ Group is a leading player in Indian financial services industry known for its strong
distribution capabilities. NJ Group has diversified into other businesses and today has the
presence in businesses ranging from financial products distributor network, asset management,
real estate, insurance broking, training & development and technology. Mr. Neeraj Choksi & Mr.
Jignesh Desai are the two first generation entrepreneurs & promoters who began the journey of
NJ in 1994.

NJ Group has diversified into other businesses and today has the presence in businesses ranging
from financial products distributor network, asset management, real estate, insurance broking,
training & development and technology.

NJ E-Wealth Account
E-Wealth Account is a comprehensive online platform which empowers you to have access to
your entire wealth portfolio across Mutual Funds, Direct Equity, ETFs, IPOs, Bonds along with
their current valuation, at a single place.

Products & Services

 Mutual Funds
 Secondary Bonds
 Equity Shares
 Exchange Traded Funds
 Debt IPO
 OFS

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 OBJECTIVES OF STUDY

1. To study the role of insurance advisor at NJ India.

2. To get insight knowledge about mutual funds.
3. To analyse awareness of mutual funds amongst insurance advisors.

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Why Investment in Mutual Funds
Mutual funds make saving and investing simple, accessible, and affordable. The advantages of
mutual funds includes the following:-

a) Accessibility

Mutual Funds units are easy to buy.

b) Liquidity

Mutual fund unit holders can convert their units into cash on any working day. They will
promptly receive the current value of their investment. Investors do not have to find a buyer; the
fund buys back (redeems) the units.

One of the main advantages of mutual funds is that they give small investors access to
professionally managed, diversified portfolios of equities, debt instruments i.e. TFCs and Govt.
Securities and other securities, which otherwise would be quite difficult (if not impossible) to
create with a small amount of capital. The income earned through these investments and the
capital appreciations realized are shared with its unit holders in proportion to the number of units
owned by them.

Mutual funds have both advantages disadvantages compared to direct investing in individual
securities. Today they play an important role in household finances, most notably in retirement
planning.

Why Mutual Funds are the best way to start Investing?

For old investors and those who are starting out, mutual funds are a wonderful and convenient
way to invest your money. Simply put, a mutual fund is a collection of stocks (equities) and /or
bonds (debt). When we buy shares (units) of a fund, we buy a very small proportion of that
collection of stock and bonds. Instead of deciding which stock and bonds to buy, you just give
your money over to a Mutual Fund manager who takes it and decides on which stocks or bond to
invest in for you. Here are 7 reasons (in no particular order) that you should consider buying
mutual funds:

 Diversification:-
Mutual Fund allows an investor to diversify into many different stocks in a
simpler and more cost-effective way.
 Low minimum Investment:-
Mutual funds are the best way to start investing with minimum investment
amount.

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  Professional Management:-
The managers of the mutual fund decide how the pooled funds will be invested.
 Systematic Investment Plans:-
A plan for investing on regular intervals to establish a better financial portfolio.
 Transparency:-
It shows investors how much risk they will be exposed to with a security helping
them to make more educated investment decision.
 Liquidity:-
Liquidity reflects the ease with which an investor may turn an asset into cash
without incurring any fall in its value.

A mutual fund can offer a simple and efficient way to invest for life goals – whether retirement,
education, buying a home, or just generally making sure money grows.

Why Insurance Agents should sell mutual fund?

1. Easy to make clients
2. Low competition of mutual fund advisors
3. More satisfaction to your clients
4. Additional source of income
5. Leveraging existing client base
6. Strong industry growth
7. Retention and loyalty of clients
8. Greater choice of products
9. Be a complete financial advisor
10. Helps in selling ULIPs

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 RESEARCH METHODOLOGY

The research involves only a general study related to the investment awareness of mutual fund
amongst insurance advisors. The research would reveal results regarding the investment
awareness of various investors about mutual funds and thus in turn, helps to analyse the market
potential of mutual funds and awareness of mutual funds amongst insurance advisors.

Methodology
The objective of the present study can be accomplished by conducting a systematic analysis of
the clients of the company. Analysis means detail collection, observation, reporting of data,
findings that are relevant for the company. Descriptive research & survey method is used to carry
out the research.

Data Collection
 Primary Data
 Secondary Data

Primary Data
Primary Data was collected by direct interview method, from reliable Asset management
companies, partners of the company and insurance advisor.

Secondary Data
Secondary data was obtained through the money control and companies official website. Data
was also collected from articles, reports, websites, published books and blogs of financial
advisors.

Data Sources
The study is based on primary data only. For this, a questionnaire was prepared consisting of
both open and close ended questions. Answers were collected through personal interview with
the insurance advisors of different insurance company in both formal and informal ways.

Sample Size
The Sample size is limited to 100 people only.

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 BIBLIOGRAPHY

 Financial News – Moneycontrol. Retrieved from

https://www.moneycontrol.com
 Company Information from company ‘s official website -
https://www.njgroup.in/
 https://efinancemanagement.com/sources-of-finance/financial-intermediaries.
 https://www.investopedia.com/terms/m/mutualfund.asp
 https://www.managementstudyguide.com/financial-management.htm

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 Annexure

AWARENESS OF MUTUAL FUNDS AMONGST INSURANCE ADVISORS

Name:-…………………… Age:-………… Add:-………………………………………….

Contact:-……………………… E-mail ID:-…………………………………………..

Experience in business:-………………………….

1. What are the products in your existing business?

a) Life insurance
b) General insurance
c) Postal schemes

2. Do you know about Mutual Fund?

a) Yes
b) No
3. Are you aware of the fact that Mutual Fund Companies (AMC’s) will invest the money in
share market?
a) Yes
b) No

4. Do you know about revenue and commission in Mutual Fund business amongst advisors?
a) Yes
b) No
5. Do you know the advantages of adding up Mutual Fund as a product for your existing
business?
a) Yes
b) No

6. Would you like to attend business opportunity program organized by NJ India Invest?
a) Yes
b) No

7. Can we send representative from NJ India Invest for more information about Mutual
Fund?
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 a) Yes
b) No
c) Yes but with an appointment

8. Have you cleared your AMFI exam?

a) Yes
b) No

9. If NO, would you like to give the exam if adequate reading materials and training given?
a) Yes
b) No

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