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M.S RAMAIAH INSTITUTE of

management

Bangalore

BATCH: 2009-11

PRODUCT AND BRAND MANAGENENT

TOPIC: THE WHOLE COMPETETION ANALYSIS OF

MUTUAL FUND

Submitted by:

M. BHARGAV SHEKHAR


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REG NO: 09113

PGDBM SEC-A


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ContentsContents ................................................................................................................ 3

INTRODUCTION:..................................................................................................... 4

COMPETITIVE SET: ................................................................................................. 5

CUSTOMERS OREINTED: ..................................................................................... 5

COMPANIES OREINTED: ...................................................................................... 5

COMPETITOR ANALYSIS: ........................................................................................ 9

SECONDARY DATA .............................................................................................. 9

INTERNET ........................................................................................................ 9

NEWS PAPER ................................................................................................. 10

GOVERNMENT ............................................................................................... 10

EMPLOYEES ................................................................................................... 12

FINANCIAL ADVISORS .................................................................................... 12

COMPETITOR ANALYSIS SYSTEM .......................................................................... 13

COMPANY ANALYSIS: ........................................................................................... 14

CUSTOMER ANALYSIS: ......................................................................................... 17


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INTRODUCTION:

The origin of mutual fund industry in India is

with the introduction of the concept of mutual fund by UTI inthe 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

dramatic improvements, both quality wise as well as quantity

wise. Before, the monopoly of the market had seen an ending

phase; the Assets under Management (AUM) were Rs. 67bn.

The private sector entry to the fund family raised the AUM toRs. 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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COMPETITIVE SET:

For each and every product

competition exists across many directions, competitors can be

defined using several criteria

CUSTOMERS OREINTED

COMPANIES OREINTED

CUSTOMERS OREINTED:

Competition can exist for customers

in term of their budgets (disposable income: vacation Vs

financial product), when they use a product. For example an

individual whose income say Rs.30,000/- he plans for his

monthly expenses accordingly, at the same time he

accumulates some portion of his monthly income and thinks

weather to go on vacation or to invest in any financial products,

there comes the budget competition. The competition can also

rise by the marketing activities such as advertisements which

influence the customers.

COMPANIES OREINTED:

Alone UTI with just one scheme in

1964 now competes with as many as 800 odd products and 38

players in the market. In spite of the stiff competition andlosing market share, Last six years have been the most

turbulent as well as exiting ones for the industry. New players

have come in, while others have decided to close shop by

either selling off or merging with others. Product innovation is

now pass with the game shifting to performance delivery in

fund management as well as service. Those directly associated

with the fund management industry like distributors, registrars


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and transfer agents, and even the regulators have become

more mature and responsible.


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MARKET SHARE OF SOME OF THE MUTUAL FUND COS

Name of Company market

share (%)

UTI 10.37

SBI 5.82

ICICI 3.75

HDFC 1.75

From the above table by comparing some of the mutual fund

companies share UTI is the first company and holds a larger

share in the market, there are also other mutual fund

companies in the list which competes with the UTI.


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MARKET COMPETITION:

One way to delineate the set of

competitors facing a product is to consider the proximity of

other products, which is represented diagrammatically

Product level competition

MF

Ins

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NP

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PROVID

FUND

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CAPI

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MON

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BAN

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NBF

CS

PAN

BRO

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POS

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LEN

DER


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By taking market share into consideration in the financial

products banking sector holds much larger than remaining

other investments.

NEWS PAPERWhy mutual funds are better than insurance (Ulips) for pension

schemes

Comparison of pension plans available and average charges

associated with these schemes

Particulars NPSUlips MFs

Investment amount per year 1L

1L 1L

Charges per year (initial period) 925

13,200 1250

Charges per year (5-10yrs) 455

6000 1250

Charges per year (11-15yrs) 455

3000 1250

Charges per year (>16yrs) 388

0 1250

Fund management cost (%) 0.0009

1.25 1.25

GOVERNMENT

Government wants to create awareness towards

the investors to invest them in the insurance sector and enjoy

the benefits; such type of statements from the government can


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influence the people and divert their investment plans from

other. This also leads to a competition in the investment of

various financial products.


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PRIMARY DATA

The primary data is one of the most

important sources for the information about the competitors.

Many of these are also sources of secondary information,depending on when the information is colleted.

EMPLOYEES

Employees of the particular sector (like

insurance, banking, MFs) such as agents, distributors can

collect the information against their competitors in the market.

FINANCIAL ADVISORS

The financial advisors are the key

persons to the company and customers. They give the

information about their competitors and advice their customers

to invest in the product which gives more benefit comparatively

to other.


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COMPETITOR ANALYSIS SYSTEM

SECONDARY

DATA

PRIMARY DATA

Key questions:

-The main competitors of mutual fund are insurance,

banking, capital market and other financial products.

-The basic feature of all the products are investment

plans but they vary in the benefits what they provide.

-But in the present scenario banking sector holds more

investors than other sectors.

Competitive advantage:

-The main advantage of Mutual fund is that it creates

wealth to the investors.

-Insurance covers the risk and the product like (Ulips)

creates wealth and cover against risk.

Present strategies:

-Indian government is creating awareness on insurance

sector

-Mutual funds are inviting more number of investors


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COMPANY ANALYSIS:

By taking UTI as one of the leading

mutual fund in MFs sector, the following company analysis of

UTI are discussed in detailVISION

To be most preferred mutual fund.

MISSION

The most trusted brand, admired by all stakeholders

the largest and most efficient money manager with global

presence the best in class customer service provider

the most preferred employer

the most innovative and best wealth creator

A socially responsible organisation known for best corporate

governance

ASSET UNDER MANAGEMENT

UTIMF has consistently reset and upgraded transparencystandards. All the branches, UFCs and registrar offices areconnected on a robust IT network to ensure cost-effective quickand efficient service. All these have evolved UTIMF to positionas a dynamic, responsive, restructured, efficient andtransparent entity, fully compliant with SEBI regulations.

RELIABILITY

UTIMF has consistently reset and upgraded transparency

standards. All the branches, UFCs and registrar offices are

connected on a robust IT network to ensure cost-effective quick

and efficient service. All these have evolved UTIMF to position

as a dynamic, responsive, restructured, efficient and

transparent entity, fully compliant with SEBI regulations.


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SCHEMES PROVIDED BY UTI

1. UTI childrens career plan

2. UTI mastershare

3. UTI dividend yield fund

4. UTI opportunities fund

5. UTI bond fund

INVESTMENT PHILOSOPHY

UTI Mutual Funds investment philosophy is to

deliver consistent and stable returns in the medium to longterm with a fairly lower volatility of fund returns compared tothe broad market. It believes in having a balanced and well-diversified portfolio for all the funds and a rigorous in-houseresearch based approach to all its investments. It is committedto adopt and maintain good fund management practices and aprocess based investment management.

UTI Mutual Fund follows an investment approach of giving as

equal an importance to asset allocation and sectoral allocation,as is given to security selection while managing any fund. Itcombines top-down and bottom-up approaches to enable theportfolios/funds to adapt to different market conditions so as toprevent missing an investment opportunity.


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CUSTOMER ANALYSIS:

Customer analysis deals with many factors in the family like

influencer, insiator, purchaser and advisor. Especially in the

case of financial products like mutual fund it is the head of the

family who decides to invest, how much to invest and where to

invest.

According to the investigation conducted

Percentage of people influenced by

Father : 75%

Children : 5%

Others : 20%


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UTI MUTUAL

FUND

Research on Indian investment behavioural pattern

1. Name :

2. Address :

3. Contact no :

4. E-mail :

5. Occupation

6. Who takes decision in a family to invest in any financial

product?

Father children

others

7. Have you ever invested in any financial instrument?

Yes/no

8. If yes, in which instrument

9. Have you ever invested in mutual fund? yes/no

10.Are you interested to invest in UTI mutual fund?


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Signature of applicant

signature of advisor


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