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CONTENTS:
serial no Topic
1 Executive summary
2 Karvy stock broking limited
3 About Bhopal branch
4 Mutual fund industry
5 Categories of mutual fund
6 Deep in project
7 Marketing of reliance infrastructure fund
8 Marketing through networking
9 Research report
10 Data analysis
11 Finding and result
12 Questionnaire
13 Bibliography
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Executive Summary
The project is based on personal financial advisory through mutual fund, which is related to
the investment type and pattern by an individual or institution. When we talk about
investment there are various types of investment pattern and when we talk about financial
advisors there are number of advisors serving in India and one of them is Karvy. It is a group
with Kravy Consultants Limited as its flagship company and one of its entity is Karvy Stock
Broking Limited which not only deals with the trade in share market ( BSE & NSE, HSE) but
also provides financial advices to the customers, the most common investment patterns are
bank deposits, fixed deposits, shares, bonds etc.
One most important investment type is mutual fund which is also connected to the
share market and our focus will be on a new NFO ³ Reliance Infrastructure Fund´. So
basically the project deals with the launching and marketing of a NFO. Meanwhile we will
learn about customer acquisition and retention, subbrokership , relationship maintenance etc.
The core part of the project is about selling of NFO while beating the competition already
exist in the market by existing funds and similar product launch by another company.
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Karvy Group As An Organization
Company overview:
Karvy was established as karvy and company by f ive char tered accountants dur ing the year 1979-80, and then its work was conf ined to audit and taxation only. Later on it diversif ied
into f inancial and accounting services dur ing the year 1981-82 with a capital of rs.150000. it achieved its f irst milestone af ter its f irst investment in technology. Karvy became a known
name dur ing the year 1985-86 when it forayed into capital market as registrar.
Karvy, is a premier integrated f inancial services provider, and ranked among the top f ive inthe country in all its business segments, services over 16 million individual investors in
var ious capacities, and provides investor services to over 300 corporates, compr ising the who
is who of Corporate India. Karvy covers the entire spectrum of f inancial services such as stock
brok ing, Dipository par ticipants, Distr ibution of f inancial product like mutual funds, bonds,f ixed disposit, merchant bank ing and corporate f inance, insurance brok ing, commodities
brok ing, personal f inancial advisory services, placement of equity, IPOs among others.Karvyhas a professional management team and ranks among the best in technology, operations and
more impor tantly in search of var ious industr ial segments.
Under the umbrella of Karvy group several companies are work ing namely:-
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1. : The f irst secur ities registry to receive ISO 9002 cer tif ication in India.
R egistered with SEBI as Category I R egistrar, is Number 1 R egistrar in the Country. The award of
being µMost Admired¶ R egistrar is one among many of the acknowledgements we received for our
customer fr iendly and competent services.
2. : karvy stock brok ing ltd. Consists of f ive units namely stock brok ing
servics, depository par ticipant, advisory services, distr ibution of f inancial products, advisory
services and pr ivate client goups.
3. : it is registered with SEBI as a category 1 merchant banker. Its
clientele includesinclude leading corporates, State Governments, foreign institutional
investors, public and pr ivate sector companies and banks, in Indian and global markets.
4. : karvy insurance brok ing ltd is also a par t of karvy stock brok ing ltd.
At Karvy Insurance Brok ing Limited both life and non-life insurance products are provided
to retail individuals, high net-wor th clients and corporates.
5. : The company provides investment, advisory and brokerage services
in Indian Commodities Markets. And most impor tantly, it offer a wide reach through our
branch network of over 225 branches located across 180 cities.
6. : Karvy Global is a leading business and knowledge process
outsourcing Services Company offer ingcreative business solutions to clients globally. It
operates in bank ing and f inancial services, inurance, healthcare and pharmaceuticals, media ,telecom and technology. It has its sales and business development off ice in New York, USA
and the offshore global delivery center in Hyderabad, India.
7. : Karvy R ealty (India) Limited is engaged in the business of real
estate and proper ty services offer ing:
y Buying/ selling/ renting of proper ties
y Identifying valuable investments oppor tunities in the real estate sector
y Facilitating f inancial suppor t for real estate and investments in proper ties
y R eal estate por tfolio advisory services
8. : it is a joint venture between Computershare, Australia and Karvy
Consultants Limited, India in the registry management services industry.This entity of Karvygroup is registrar for R eliance .
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Karvy Stock Brok i g Li ited
It is a branch of the Karvy group and a member of National stock exchange (NSE),
Bombay stock exchange (BSE) and Hyderabad stock exchange (HSE).
Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows
freely towards attaining diverse goals of the customer through varied services. Creating aplethora of opportunities for the customer by opening up investment vistas backed by
research-based advisory services. Here, growth knows no limits and success recogni es noboundaries. Helping the customer create waves in his portfolio and empowering the investor
completely is the ultimate goal.
It is an undisputed fact that the stock market is unpredictable and yet enjoys a high
success rate as a wealth management and wealth accumulation option. The difference
between unpredictability and a safety anchor in the market is provided by in-depth
knowledge of market functioning and changing trends, planning with foresight and choosing
the options with care. This is what we provide in our Stock Broking services.
The company offer services that are beyond just a medium for buying and selling
stocks and shares. Instead we provide services which are multi dimensional and multi-
focused in their scope. There are several advantages in utili ing our Stock Broking services,
which are the reasons why it is one of the best in the country.
Vision of karvy:-
To achieve & sustain market leadership, Karvy shall aim for complete customer
satisfaction, by combining its human and technological resources, to provide world class
quality services. In the process Karvy shall strive to meet and exceed customer's satisfaction
and set industry standards.
Mission statement:-
³Our mission is to be a leading and preferred service provider to our customers,
and we aim to achieve this leadership position by building an innovative, enterprising , and
technology driven organi ation which will set the highest standards of service and business
ethics.´
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About Bhopal Branch
KARVYat central region:
Karvy stock Brok ing Ltd was star ted 6 yrs ago i.e.; dur ing the year 26th
june 2003at MP nagar which was later on established as the regional head off ice. Presently Mr. Mahim
Lal is heading the central zone. Talk ing about thezonal off ices, Karvy has branches and
subbrokers network at Jabalpur, Sagar, Katni, Sehore, Baitul, Balaghat, Chindwara and
Lalitpur name a few. Each Branche off ice has got its own Branch heads. Karvy is a member
of three stock exchanges of India: National Stock Exchange (NSE), Bombay Stock Exchange
(BSE) and Hyderabad Stock Exchange (HSE).
Hierarchical Structure in dia ram:
The above diagram shows the hierarchy of Karvy stock brok ing ltd. It can be
easily depicted from the diagram that the regional head (presently Mr. Mahim Lal) is the
supreme in the eastern region, under whom the var ious branch heads operate and under these
subbrokers and agents operate. Between each level of the hierarchy, there exists a
coordinator, who acts as the facilitator between the different heads.
Karvy at Bhopal:
Now if we look at karvy¶s branch off ices and franchisees at Bhopal, then there exist three
branches of karvy at bhopal, which are as follow:
Regional head
branch heads
Subbrokers andagents
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1. MP nagar
2. Kohe-ae-fi a
3. Shahapura.
4. BHEL.
5. Nehru nagar.
6. Bairagarh.
MUTUAL FUND INDUSTRY
A Mutual Fund is a trust registered with the Securities and Exchange Board of India (SEBI),
which pools up the money from individual / corporate investors and invests the same on
behalf of the investors /unit holders, in equity shares, Government securities, Bonds, Call
money markets etc., and distributes the profits.
The value of each unit of the mutual fund, known as the net asset value (NAV), is mostly
calculated on daily basis on the total value of the fund divided by the number of units
currently issued and outstanding. The value of all the securities in the portfolio in calculated
daily. From this, all expenses are deducted and the resultant value divided by the number of
units in the fund is the fund¶s NAV.
NAV = Total val e of the fund________
No. of units currently issued and outstanding
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A B C of Mutual Fund
D E F is here««.
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Karvy computershare private limited is the registrar for Reliance , Therefore the
distribution responsibilities were also been share by Karvy stock broking
limited. The purpose of the project is mainly focused on the marketing of afinancial product . As already mentioned in the introduction that there are
various types of investment , which can broadly divided into three category: -
1. High risk
2. Moderate risk
3. Low risk
Here in this project we will consider mutual fund as investment product. And
for that we should know what a mutual fund is? In a simple language it is poolof money collected by a company from individual or institution and later on
invested in money market in form of shares, bonds and other money market
instruments. A fund manager of the asset management company who used to
collect the money gradually invest the money either in equity market or in debt
market or both. Fund is broadly been divided into two types: -
1. Open ended fund
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2. Close ended fund
Advantages of a MF± Mutual Funds provide the benefit of cheap access to expensive stocks .
± Mutual funds diversify the risk of the investor by investing in a basket of
assets.
± A team of professional fund managers manages them with in-depth research
inputs from investment analysts.
± Being institutions with good bargaining power in markets, mutual funds have
access to crucial corporate information, which individual investors cannot
access.
History of the Indian mutual fund industry:
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and
Reserve Bank. The history of mutual funds in India can be broadly
divided into four distinct phases.
First Phase ± 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the
Reserve Bank of India and functioned under the Regulatory and administrativecontrol 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 UnitScheme 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)1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance corporation of India (LIC) and General InsuranceCorporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
established in June 1987 followed by Canbank Mutual Fund (Dec 87), PunjabNational Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of
India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund
in June1989
while GIC had set up its mutual fund in December 1990
.At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores.
Third Phase ± 1993-2003 (Entry of Private Sector Funds)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) R egulations were substituted by a more
comprehensive and revised Mutual Fund R egulations in 1996. The industry now
functions under the SEBI (Mutual Fund) R egulations 1996. As at the end of January
2003, there were 33 mutual funds with total assets of R s. 1,21,805 crores.
Fourth Phase ± since February 2003In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specif ied Under tak ing of the Unit
Trust of India with assets under management of R s.29,835 crores as at the end of
January 2003, representing broadly, the assets of US 64 scheme, assured return and
cer tain other schemes
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 R egulations. consolidation
and growth. As at the end of September, 2004, there were 29 funds, which manage
assets of R s.153108 crores under 421 schemes.
Cate ories of mutual funds:
Mutual funds can be classif ied as follow:
Based on their structure:
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y Open-ended funds: Investors can buy and sell the units from the fund, at any point of
time.
y Close-ended funds: These funds raise money from investors only once. Therefore,
after the offer period, fresh investments can not be made into the fund. If the fund is
listed on a stocks exchange the units can be traded like stocks (E.g., Morgan Stanley
Growth Fund). Recently, most of the New Fund Offers of close-ended funds provided
liquidity window on a periodic basis such as monthly or weekly. Redemption of units
can be made during specified intervals. Therefore, such funds have relatively low
liquidity.
Based on their investment objective:-Equity funds: These funds invest in equities and equity related instruments. With
fluctuating share prices, such funds show volatile performance, even losses. However,
short term fluctuations in the market, generally smoothens out in the long term,
thereby offering higher returns at relatively lower volatility. At the same time, such
funds can yield great capital appreciation as, historically, equities have outperformed
all asset classes in the long term. Hence, investment in equity funds should beconsidered for a period of at least 3-5 years. It can be further classified as:
i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is
tracked. Their portfolio mirrors the benchmark index both in terms of composition
and individual stock weightages.
ii) Equity diversified funds- 100% of the capital is invested in equities spreading
across different sectors and stocks.
iii|) Dividend yield funds- it is similar to the equity diversified funds except that they
invest in companies offering high dividend yields.
iv) Thematic funds- Invest 100% of the assets in sectors which are related through
some theme.
e.g. -An infrastructure fund invests in power, construction, cements sectors etc.v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector
fund will invest in banking stocks.
vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.
Balanced fund:- Their investment portfolio includes both debt and equity. As a
result, on the risk-return ladder, they fall between equity and debt funds. Balanced
funds are the ideal mutual funds vehicle for investors who prefer spreading their risk
across various instruments. Following are balanced funds classes: i) Debt-oriented funds -Investment below 65% in equities.
ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt.
Debt fund: They invest only in debt instruments, and are a good option for
investors averse to idea of taking risk associated with equities. Therefore, they invest
exclusively in fixed-income instruments like bonds, debentures, Government of India
securities; and money market instruments such as certificates of deposit (CD),
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commercial paper (CP) and call money. Put your money into any of these debt funds
depending on your investment hori on and needs.
i) Liquid funds- These funds invest 100% in money market instruments, a large
portion being invested in call money market.
ii)Gilt funds ST- They invest 100% of their portfolio in government securities of and
T-bills.
iii)Floating rate funds - Invest in short-term debt papers. Floaters invest in debt
instruments which have variable coupon rate.
iv)Arbitrage fund- They generate income through arbitrage opportunities due to mis-
pricing between cash market and derivatives market. Funds are allocated to equities,
derivatives and money markets. Higher proportion (around 75%) is put in money
markets, in the absence of arbitrage opportunities.
v)Gilt funds LT- They invest 100% of their portfolio in long-term government
securities.
vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in
long-term debt papers.
vii) MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an
exposure of 10%-30% to equities.viii)FMPs- fixed monthly plans invest in debt papers whose maturity is in line with
that of the fund.
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Deep In Project
Marketin Of Reliance Infrastructure Fund
HIGHLIGHTS OF THE RELIANCE
INFRASTRUCTURE FUND
When it comes to R eliance infrastructure fund it is an open ended
fund where the percentage of the investment will be based on following pattern:-
Equity market- minimum 65% - maximum 100%
Debt market- minimum 0% - maximum 35%
1. Fund Manager- Mr. Sunil Singhania
2. Fund type- Equity diversif ied infrastructure fund
3. Face Value- 10 R s.
Adve se e Tec q e
ec c edia Print media
Distribution
Re iance it se arvy stoc broking
Launc ing date
25 May 2009
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4. Minimum investment amount- 5000 Rs.
5. Facility of SIP (Only through AXIS or HDFC bank)
6. Open ended equity fund
7. Entry load- 2.25%
8. Exit load- 1% (Till 12 months otherwise nil)
The above written things are crucial part of the NFO, which not only attracts the customer but
also provides a platform for the marketing of the NFO.
Reliance is the AMC where the Karvy computershare private limited is registrar
for Reliance. And because of that the distribution responsibilities were being shared by both
companies and for Karvy group, Karvy stock broking bear the load of distribution of fund.
When it comes to advertisement both kind of media were being considered for it
news channel, news paper (National and Local), brochure etc. Were being used for
advertisement.
Methods & Strategies for marketing of the fund
Portfolio Maintenance
While convincing a customer for the purchase of fund we have to maintain the portfolio of
the customer which consists of :-
1. Earning capacity of the customer.
2. Investing power of the customer.
3. Age of the customer.
4. Risk bearing capacity of the customer.
5. Purpose of purchase.
6. Holding ability etc.
As we know that most common marketing activity is television advertisement and second is
print media but for these kind of marketing only the AMC is liable. And as a management
trainee we (Me and my team consisting of 3 person) have to adopt the grass root marketing
which are :-
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CUSTOMER GAIN AND INITIATION OF CONVINCING
NOW STAR TS
CUSTOMER CONVINCING
The mentioned techniques are being used to gain technique and when we have customer in
front of us then we have to convince him/her to purchase our product and for that we should
have :-
1.In depth knowledge of our product.
2.USPs of our product.
3.Communication sk ills.
4.Patience. Etc.
Cold
calling
Walkin
acquisitionCanopy
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A lot more depends upon the spending nature and power of the customer and
that too depends upon var ious factor like family members, dependency of customer or
on the customer, several other reason may affect the purchasing or investment
decisions but one more cause is the age group and as per market studies done by
several companies generally the following k ind of behaviour shows :-
Age 25-35: 35-40 % debt, 60% in equity
Age 35-45: 45-50 debt, less than 50% in equity
Age 55: mostly in debt
Which means we have to select a par ticular age group for the sale of our product otherwise it
will be a useless exercise. Secondly we have to separate the customer on their nature of job or
the work they are doing, dur ing our project we meet to the persons from var ious f ield of work
nature and the general f inding itself categor ies the customer by their organizations which
are....
6HFWRULDO5XOH
1st Category Government Sector
The central or state government servants arethose investor who need a safe, secured and
def inite return so rather than going for mutual fund or going to the equity market they prefer safe deposits like f ixed deposits, insurance etc.
And if they are interested then they used to purchase that k ind of product which
provides them tax benef it even though if there is any k ind of lock in per iod. The time of
product launching is also crucial as the f inancial year ending time and income tax return
f illing time is 31st March so naturally a major ity of the government servants does invest at
that par ticular time.
GovernmentSector Employees
Look for debt
market
Low risk
Private sectorEmployees
Intrested in
equity but less
informedTime factor
Self Employed
Having money
and time but...in
hurry for return
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2nd Category private sector
Employees of private sector and more interested in this kind of investment because of several
reasons:-
1. Most companies of the private sector provides share of the company to its employees
and because of that exposure of share market the employees took interest in equity
market and similar financial products.
2. Age factor also play a fatal role as you will find younger workforce in private
organi ations.3. Source of income is basically the salary offered by the company and besides that the
incentives paid by the company provides additional income to the employee whichthey can invest in the equity market.
4. Only concern is time, they are willing to purchase but they can¶t put an eye on regular basis on the share market.
5. Risk taking ability is much higher in the employees of this particular sector.
3rd Sector Self Employed
This is most versatile sector, various activity falls under this category, like carpentry, general
store shops etc. and the amount or the quantity of this kind of may-be-customer are high,
during our marketing of reliance infrastructure fund we met to a number of self employed
persons and the general finding is:-
1. Money comes and moves out to that person in a periodic way hence he /she can invest
through SIP but lack of awareness regarding such kind of investment product
( mutual fund, bonds etc.) is the main reason for old fashioned investment by them.
2. Improper information or myth about share market is creating a huge problem because
of which a large portion of liquid money is not coming to equity market.
3. The persons belongs to this category are interested in short term capital gain and for
that mutual fund is the best option, because generally in growth option (which is
available in Reliance Infrastructure Fund) the NAV increases to 15-30% within 2-3
months.
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Marketi g Through N etwork i g
Basic structure of networking is very much clear by the figure and besides it the AMC used
to sell their product via direct marketing.
For Reliance, Karvy is the distributor and used to sell the product
simultaneously karvy have its own subbrokers to whom Karvy relies a lot because generally
these subbrokers are those individual who used to stay at small places and villages and theycan easily grab the potential investor from those places because to sell a financial product like
fund or shares or bonds to the persons of a village one has to adopt a different kind of
marketing strategies and a very different communication skill which is being generally used
to convince a literate person or the person who used to stay at places where he/she can easily
get in touch with the product.
And for that the subbrokers get their commission, now there is a different kind of
subbrokership where a group of person as a separate entity used to sell the product and get
their commission. Third category of agents are similar to subbrokers the only thing which
differentiate subbrokers and agents are the commission they get on selling the product.
During our project we met to several subbrokers and agents and we found that it
is also necessary to convince an agent or a subbroker for selling the fund because the investor
directly interact with that subbroker or agent so the investor found that the subbroker or agent
liable for the profit or loss. Hence the subbroker and agent should be ready for selling and the
important factor here is the name and reputation of the fund manager, because the subbrokers
and agents initially look for the NAV of the fund previously headed by that fund manager and
after that they make their mind on selling a product.
AM DIST IBUTO BROKER
SUBBROKERSA ENTS
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Research report
Objective of research;
The main objective of this project is to sell the reliance infrastructure fund and
simultaneously getting the opinion of people regarding mutual funds and what they
feel about availing the services of financial advisors.
I have tried to explore the general opinion about mutual funds. It also covers why/
why not investors are availing the services of financial advisors.
Along with it a brief introduction to India¶s largest financial intermediary, KARVY
has been given and it is shown that how they operate in mutual fund selling.
Scope of the study:
The research was carried on in the Central Region of India. It is restricted to Bhopal where it
has got 3 branch offices an23 franchisees. I have visited people randomly nearby my locality,
different shopping malls, small retailers, government offices, Doctors etc.
Hopefully the data collected by me and my team will be utili e by the company
in future and the potential investor will avail the service of the Karvy.
Data sources:
Research is totally based on primary data. Secondary data can be used only for the reference.
Research has been done by primary data collection, and primary data has been collected by
interacting with various people. The secondary data has been collected through various
journals and websites and some special publications of KARVY.
Sampling:
Sampling procedure:
The sample is selected in a random way, irrespective of them being investor or not or availing
the services or not. It was collected through mails and personal visits to the known persons,
by formal and informal talks and through cold calling. The data has been analy ed by using
the measures of central tendencies like mean, median, mode. The group has been selected and
the analysis has been done on the basis statistical tools available.
Sample size:
The sample si e of my project is limited to 55 only. Out of which only 13 people made the
investment. Other 40 did not invest in MF only 3 did invest in existing fund.
Sample design:
Data has been presented with the help of bar graph, pie charts, line graphs etc.
Limitation:
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Time limitation.
Research has been done only at Bhopal.
Some of the persons were not so responsive.
Possibility of error in data collection.
Possibility of error in analysis of data due to small sample si e.
Data analysis:
Have you ever invested/ interested to invest in mutual funds?
YES 27
NO 29
.what is the most important reason for not investing in mutual funds?
YES
27%
¡
O
29%
No. of persons= 56
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Lack of knowledge about
mutual funds
9
Enjoys investing in other
options
5
Its benef its are not enough
to drive you for investment
3
No trust over the fund
managers
13
.where do you f ind yourself as a mutual fund investor?
Totally ignorant 13
9
5
3
13
0
2
4
6
8
10
12
14
Category 1
lack of knowledge
ot ¢ er o £ tions
not benefitial
no trust on fund manager
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Partial knowledge of MFs 27
Aware of only scheme in
which invested
10
Good knowledge of MFs 16
.where f rom you purchases mutual funds?
Directly f rom the AMCs 10
Brokers only ( large
intermediaries)
22
Broker/ sub-brokers 14
Other sources 1
13
27
10
16
data
totally ignorant
partial knowledge of MFs
aware of only scheme in which
invested
good knowledge of MFs
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Which feature of the mutual funds allure you most?
Diversif ication 42
Professional management 29
Reduction in risk and
transaction cost
34
Helps in achieving long
term goal
30
10
22
14
1
0
5
10
15
20
25
Category 1
directly from the AMCs
large brokers
small brokers/s ¤ bbrokers
other so¥
rces
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According to you which is the most suitable stage to invest in mutual
funds?
Youn unmarried sta e 28
Youn
Married with
children sta e18
Married with older children
sta e
5
0 5 10 15 20 25
Category 1
10
¦
23
16diversification
prof essional management
reduction in risk and transaction
cost
helps in achieving long term
goal
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Pre retirement sta e 5
Are you availing the services of personal f inancial advisors?
Yes 22
No 34
28
18
55
data
young unmarried stage
young married with little
children
married with older childrenstage
pre-retirement stage
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Which expertise of the personal financial advisor is demanded most?
Portfolio review &
investment recommendation
5
Planning to achieve specif ic
f inancial goals
25
Managing assets in
retirement
6
Access to specialists in areas
such as tax planning
20
39%
61%
number f ers ns
yes
§ ̈
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What is the major reason for not using f inancial advisor?
Have access to all resources
needed
8
Believe advisors are too
expensive
22
Unsure how to find a
trustworthy advisor
14
Want to be in control of own
investments
12
0 5 10 15 20 25
access to specialists in areas such as tax
planning
managing assets in retirement
planning to achieve specific financial goals
portfolio review and investment
recommendation
5
25
6
20
Series 1
Series 1
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FINDING AND R ESULT
Total person contacted- 56
Investment made ± 13
Other investment in exsisting fund- 3
Not interested- 40
0 5 10 15 20 25
want t©
be in c©
ntr©
l©
f ©
wn investments
unsure h w t find a trustw rthy advis r
believe advis©
rs are t© ©
expensive
have access t all res urces needed
8
22
14
12
data
data
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As shown in the graph there were only 23% who did choose Reliance infrastructure fund for
investment while a majority of the persons 72% did not invest and only 5% invested in other
existing fund.
During selling process or starting a conversation with investor we have to
start with some questions and for that ideally we have to prepare a questionnaire and give to
the participants and based on that we should continue our conversation but that will only help
when we have to collect the data for a research purpose but the responsibility given to us was
to sale the fund, secondly time boundation is there for us and the persons as well because
rarely you will find a person who will take interest in filling those questionnaire if he/she
doesn¶t want to invest.
Some questions are :-
Questionnaire:
.have you invested /are you interested to invest in mutual funds?
Yes [ ] No [ ] ( plz. att empt the next question)
.what is the most important reason for not investing in mutual funds?
Lack of knowledge about mutual funds [ ]
Enjoys investing in other options [ ]Its benefits are not enough to drive you for investment [ ]
No trust over the fund managers [ ]
40
13
3
Sales
Not intrested
Invest in Reliance Infrastructre
fund
Invest ent in exsiting fund
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.where do you find yourself as a mutual fund investor?
Totally ignorant [ ]
Partial knowledge of mutual funds [ ]
Aware only of any specific scheme in which you invested[ ]
Fully aware [ ]
.where from you purchase mutual funds?
Directly from the AMCs [ ]
Brokers only [ ]
Brokers/ sub-brokers [ ]
Other sources [ ]
.which feature of the mutual funds allure you most?
Diversification [ ]
Professional management [ ]
Reduction in risk and transaction cost [ ]
Helps in achieving long term goals [ ]
. According to you which is the most suitable stage to invest in mutual funds?
Young unmarried stage [ ]
Young Married with children stage [ ]
Married with older children stage [ ]
Pre-retirement stage [ ]
. are you availing the services of personal financial advisors?
YES [ ] NO[ ]
.which expertise of the personal financial advisor is demanded most?
Portfolio review & investment recommendation [ ]
Planning to achieve specific financial goals [ ]
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Managing assets in retirement [ ]
Access to specialist in areas such as tax planning [ ]
.what is the major reason for using financial advisors?
Want help with asset allocation [ ]
Don¶t have time to make my own investment decision [ ]
To explain various investment options [ ]
Want to make sure I am investing enough to meet my financial goals [ ]
.what is the major reason for not using financial advisor?
Have access to all resources needed to invest on own [ ]
Believe advisors are too expensive [ ]
Unsure how to find a trustworthy advisor [ ]
Want to be in control of own investment [ ]
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Bibliography:
Websites:
www.the-f i
p
lis.c
m
www.amf ii
dia.c
m
www.karvy.c
m
www.mut ualf u
dsi
dia.c
m
www.valueresearchonline.com
www.moneycont rol.com
www.theeconomict imes.com
www.rediff money.com
www.bseindia.com
www.nseindia.com
journals & other references:
Karvy ±the f inapolis
Karvy- business associates manual
The Economic Times
Business Standard
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