SUMMER TRAINING PROJECT REPORT

ON
DETERMINING THE SATISFACTION LEVEL OF EXISTING
CHANNEL PATNERS


CARRIED AT
Birla Sun Life Asset Management Company

SUBMITTED IN PARTIAL FULFILMENT OF BACHELORS OF BUSINES
MANAGEMENT
TO
THE IIS UNIVERSITY, JAIPUR

SUPERVISED BY SUBMITTED BY
Mrs. Vandana Sachdeva Shradha Jaipuria
Assistant professor BBM SEM VI SECA
Department of management studies ICG/2011/12337
ROLL NO: 111080

TABLE OF CONTENTS

ACKNOWLEDGEMENT
PREFACE
INTRODUCTION
COMPANY PROFILE
INTRODUCTION TO THE COMPANY
HISTORY
AWARDS AND RECOGNITION
PRODUCTS AND SERVICES
MARKET ANALYSIS OF COMPANY
SWOT ANALYSIS
REVIEW OF LITERATURE
RESEARCH METHODLOGY
HYPOTHESIS
SCOPE
OBJECTIEVE
SAMPLING TECHNIQUE
RESEARCH DESIGN AND INSTRUMENT
DATA COLLECTION
ANALYSIS INTERPRETATION
FINDINGS
SUGGESTIONS
RECOMMENDATION
CONCLUSION
LIMITATIONS
APPENDIX/ANNEXURE
BIBLIOGRAPHY

ACKNOWLEDGEMENT

Behind every achievement lies an unfathomable sea of gratitude to those who have
extended their support and without it would never have come into existence. Words
often fail to express ones inner feelings of gratitude and indebtedness to ones
benefactors, but then it is the only readily available medium through which the
undersigned can express her sincere thanks to all those who are associated with the
work in one way or the other.
A project can never exist and thrive in solitude. Project work is never the work of an
individual. It is more a combination of use, suggestions, contributions and work
involving many individuals. This project also bears the impact of many people. Thus
one of the most pleasant parts of writing this project is the opportunity to thank all
those who have contributed towards it.
At this juncture I feel deeply honored in expressing my sincere thanks to Mr. Sachin
Tskali (Chief Manager, Birla Sun Life Mutual Fund, Rajasthan) for giving me an
opportunity to work with Birla Sun Life Mutual Fund and carry out a market
research project. I would also like to acknowledge and extend my heartfelt gratitude
to my project guide and mentor, Mr. Sushant Akar (Relation manager, Birla Sun
Life Mutual Fund, Jaipur) without whose guidance and supervision this project could
not have been completed. Not only he served as my supervisor but also encouraged
and challenged me throughout my training, never accepting less than my best efforts.
My special thanks goes to each and every person at Birla Sun Life Mutual Fund,
Jaipur for helping me whenever required and showing wonderful cooperation. I would
also like to thank all respondents who took time out of their busy schedules to give me
valuable input for my study.
I would also like to thank MRS. VANDANA MAAM who supported me and help
me to understand the practical working of the mutual fund industry.

PREFACE

I Shradha Jaipuria of International College for Girls, Jaipur Rajasthan, did my
Summer Internship project with BSL Asset Management Company Ltd from 22
nd

May to 6
th
July 2013.
The project involves a study of mutual fund industry, evaluating and suggesting
measures to improve the services provided by the representatives of Birla Sun Life
Mutual Fund to the retail distributors and also to identify the strong as well as the
weak points so that an appropriate sales pitch could be developed. The sales pitch
highlighted features like Birla Sun Life having a huge distributor base, returns being
independent of the market ups and downs, etc. The project also involves determining
the effect of SEBI circular regarding the waiver of entry load on direct applications in
mutual fund.
Calls were made to all the different channel distributors (Retail) across all tiers from
companys database and appointments were sought. Thereafter a brief questionnaire is
filled up by them about the study.
The major part of the questionnaire is focused on determining effects of SEBI circular
on Waiver of Entry Load on Direct Application in Mutual Funds, what were the
different parameters on which the behavior of the investor is depending after this
circular and determining the satisfaction level of the channel partners.
A lot of interaction has been done with the distributors about the products and
services of Birla Sun Life. A comparative analysis is also done of Birla Sun Life
Mutual Fund with other AMCs in order to find the market position of the company
with respect to services provided by it. It is found that there are many issues on which
the company needs to improve, which are elaborated in further parts of the reports.
Reporting I reported to Mr.Shushant Akkar, Relationship Manager Sales who
kept guiding me during the project as and when required.
Learning during training-
a) Learning about the Mutual Fund Industry and their importance in the current
scenario.
b) I learned the difference of investing in mutual fund and other investment
(bank/post office) products.
c) The scope of the project is also to find out that what factors forces the
customers to buy a particular mutual fund. I learned what things investor
should keep in mind before investing into any fund apart from that I have also
seen what Indian investors think about mutual fund and how much they are
aware about mutual funds.
d) Opportunity to learn about the ups and downs in the market and its impact on
the performance of various schemes.
e) The presentations of BSL mutual fund that I gave to our alternate distribution
channels employees helped me to get exposed to various problems that the
distributors face during selling of mutual fund schemes and how to tackle with
such problems.
f) I have learned that mutual funds now present perhaps the most appropriate
investment opportunity for most investors. As financial markets become more
sophisticated and complex, investors need a financial intermediary who
provides the required knowledge and professional expertise on successful
investing.
g) Learning about several business operations of the company.
h) Corporate Exposure during training made me more confident and outgoing.
Interaction with Relationship Managers and branch heads at various banks
boosted my confidence and infused enthusiasm in me.




INTRODUCTION
Objective of the study
As the title of the project suggests, the objective of the project is to find out the
satisfaction level of Distributors with respect to the services & overall product quality
provided by the AMC.
The following are the sub objectives of the project:
Understanding the attitude and behavior of the distributors towards Birla
Sun Life Mutual Fund.
Find out their preference parameters for selling a particular fund.
Understanding the competition for the service provided by different mutual
fund companies.
Finding out ways and means to improve on the services by Birla Sun Life
Mutual Fund.
Rationale of the study
Mutual fund industry has grown by leaps and bounds, particularly during the last two
decades of the 20
th
century. Moreover the entry of private sector mutual funds (since
1993) has injected a sense of competition and the industry has been witnessing a
structural change from a public sector monopoly to monopolistic industry. A proper
evaluation measure will remove confusion and help investors to decide about levels of
investments in various mutual fund schemes, so as to maximize their returns. Further,
the growing competition in the market forces the fund managers to work hard to
satisfy investors and the management.
Furthermore, the study includes a survey of dealers to find out the satisfaction level
among the various Individual financial advisors of Birla Sun Life Mutual Fund,
Jaipur. And to estimate the effect of SEBI circular issued on 31
st
December, 2007
regarding waiver of entry load on direct application in mutual funds, which is
implemented from 4
th
January 2008.
Since the issue of this circular there has been a buzz in the mutual fund industry and
the distributors of mutual fund, that this will affect their business heavily.
COMPANY PROFILE
Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment
managers of Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla
Group and the Sun Life Financial Services Inc. of Canada. The joint venture brings
together the Aditya Birla Group's experience in the Indian market and Sun Life's
global experience.
Since its inception in 1994, Birla Sun Life Mutual fund has emerged as one of India's
leading Mutual Funds managing assets of a large investor base. The fund offers a
range of investment options, which include diversified and sector specific equity
schemes, fund of fund schemes, hybrid and monthly income funds, a wide range of
debt and treasury products and offshore funds.
BSLAMC follows a long-term, fundamental research based approach to investment.
The approach is to identify companies, which have excellent growth prospects and
strong fundamentals. The fundamentals include the quality of the companys
management, sustainability of its business model and its competitive position,
amongst other factors. Birla Sun Life Asset Management Company has one of the
largest team of research analysts in the industry, dedicated to tracking down the best
companies to invest in.
Birla Sun Life AMC strives to provide transparent, ethical and research-based
investments and wealth management services.
Vision
To be the most trusted name in investment and wealth management, to be the
preferred employer in the industry and to be a catalyst for growth and excellence of
the asset management business in India.
Mission
To consistently pursue investor's wealth optimization by achieving superior and
consistent investment results Creating a conductive environment to hone and retain
talent. Providing customer delight. Institutionalizing system-approach in all aspects of
functioning. Upholding highest standards of ethical values at all times.
Client focus
We listen carefully to our clients.
We put our clients first and at the heart of all we do.
We listen and deeply understand our clients businesses, risk and issues.
We help our clients better meet their investment goals.
We anticipate trends and help clients plot the future course.
Consistently exceed our clients expectations. Make decisions close to our clients
SHAREHOLDERS IN BIRLA SUN LIFE ASSET MANAGEMENT
COMPANY
Aditya Birla Group
Sun Life Financial Inc.
The Aditya Birla Group is India's first truly multinational corporation. Global in
vision, rooted in Indian values, the Group is driven by a performance ethic pegged on
value creation for its multiple stakeholders.
The Aditya Birla Groups products and services offer distinctive customer solutions
worldwide. The Group has operations in 20 countries - India, Thailand, Laos,
Indonesia, Philippines, Egypt, China, Canada, Australia, USA, UK, Germany,
Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Malaysia and Korea.
A US $28 billion corporation with a market cap. of US $31.5 billion and in the
League of Fortune 500, the Aditya Birla Group is anchored by an extraordinary force
of 100,000 employees, belonging to 25 different nationalities. Over 50 per cent of its
revenues flow from its operations across the world.
Its 66 state-of-the-art manufacturing units and sectoral services span India, Thailand,
Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China.
The Aditya Birla Group is a dominant player in all of the sectors in which it operates.
These sectors include viscose staple fiber, non-ferrous metals, cement and viscose
filament yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron,
insulators and financial services.
The Group has also made successful forays into the IT and BPO sectors.
In India, the Group has been adjudged The Best Employer in India and among the
top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007.
Sun Life Financial I nc. is a leading financial services organization headquartered in
Toronto, Canada, operating in key markets around the world.
The Sun Life Financial group of companies and their joint ventures offer individuals
and corporate customers a diverse range of financial products and services that fall
into two principal business areas: wealth management and protection. Throughout its
international operations, Sun Life Financial has an employee base of approximately
13,800 people plus an extensive global distribution network of career sales forces,
independent agents, investment dealers and financial planners.
Tracing its roots back to 1865, Sun Life Financial Inc. and its partners today have
operations in key markets worldwide, including Canada, the United States, the United
Kingdom, Hong Kong, the Philippines, Indonesia, India and China. As on 30th June
2007, Sun Life Financial Inc. manages assets worth CDN $435 billion.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under ticker symbol "SLF".
Why Birla Sun Life Mutual Funds?
HERITAGE
Birla Sun Life Mutual Fund is a joint venture between the Aditya Birla Group and
Sun Life Financial Inc. of Canada. Birla Sun Life Mutual Fund offers a wide range of
top quality financial services solutions for resident and non-resident Indians.
The Aditya Birla Group is one of India's largest business houses. Global in vision,
rooted in Indian values, the Group is driven by a performance ethic pegged on value
creation for its multiple stakeholders.
The Group's operations span 66 state of the art, straddling India, Thailand, Malaysia,
Indonesia, Egypt, Philippines, Canada, Australia and China.
A US $28 billion corporation with a market cap. of US $31.5 billion and in the
League of Fortune 500, the Aditya Birla Group is anchored by an extraordinary force
of 100,000 employees, belonging to 25 different nationalities. Over 50 per cent of its
revenues flow from its operations across the world.
The Aditya Birla Group is a dominant player in all its areas of operations viz;
Aluminum, Copper, Cement, Viscose Staple Fibre, Carbon Black, Viscose Filament
Yarn, Fertilizers, Insulators, Sponge Iron, Chemicals, Branded Apparels, Insurance,
Mutual Funds, S strategic joint ventures with global majors such as Sun Life
(Canada), AT&T (USA), the Tata Group and NGK Insulators (Japan), and has
ventured into the BPO sector with the acquisition of TransWorks, a leading
ITES/BPO company.
Sun Life Financial is a leading international financial services organization providing
a diverse range of wealth accumulation and protection products and services to
individuals and corporate customers. Chartered in 1865, Sun Life Financial and its
partners today have operations in key markets worldwide, including Canada, the
United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia,
India, China and Bermuda.
As of 30 June 2007, the Sun Life Financial group of companies had total assets under
management of CDN $ 435 billion.
TRACK RECORD
With a proven track record of 12 years, Birla Sun Life Mutual Fund has been a
catalyst towards the growth of the private sector asset management business.
INNOVATIONS
Birla Sun Life Mutual Fund is the first to launch
Birla Cash Plus, a liquid fund.
Birla Dividend Yield Plus which is a dividend yield fund.
Birla Bond Index Fund (a debt index fund) which replicates the Crisil Composite
Bond Fund Index has been assigned AAAF rating by Crisil.
INVESTMENT PHILOSOPHY
Birla Sun Life Mutual Fund follows a long-term, fundamental research based
approach to investment. The approach is to identify companies, which have excellent
credit-worthiness and strong fundamentals. The fundamentals include the quality of
the company's management, sustainability of its business model and its competitive
position, amongst other factors. Birla Sun Life Asset Management Company
(BSLAMC) has one of the largest team of research analysts in the industry, dedicated
to tracking down the best companies to invest in BSLAMC will always strive to
provide transparent, ethical and research-based investments and wealth management
services.
GEOGRAPHICAL REACH
Today, BSLAMC is present in 111 locations, including 74 branches.
PRODUCT OFFERINGS
Birla Sun Life Mutual Fund offers a range of investment options, which include
diversified and sector specific equity schemes, fund-of-fund schemes, hybrid and
monthly income funds, a wide range of debt and treasury products and offshore funds.
BSLAMC also provides Private Wealth Management services.
DIFFERENT FUNDS MANAGED BY BIRLA SUN LIFE ASSET
MANAGEMENT COMPANY:
Birla Sun Life Government Securities Fund: An Open-ended Gilt scheme with the
objective to provide investors current income consistent with a portfolio invested
100% in securities issued by the Government of India or the State Governments, and
the secondary objective is capital appreciation.
Birla Floating Rate Fund: An Open-ended income scheme with the objective to
generate regular income through investment in a portfolio comprising substantially of
floating rate debt / money market instruments.
Birla Sun Life Cash Manager: An Open-ended liquid scheme with the objective to
provide current income which is consistent with a portfolio that offers investors
superior liquidity by investing 100% in a diversified portfolio of debt (Fixed Income)
and money market securities.
Birla Sun Life Income Fund: An Open-ended income scheme with the objective to
generate consistent income through superior yields on its investments at moderate
levels of risk through a diversified investment approach.
Birla Sun Life Short Term Fund: An Open-ended short term income scheme with
the objective to generate income and capital appreciation by investing 100% of the
corpus in a diversified portfolio of debt and money market securities with relatively
low levels of interest rate risk.
Birla Sun Life Liquid Plus: An Open-ended short term income scheme with the
objective to generate regular returns through investments in debt and money market
securities.
Birla MIP II - Wealth 25 Plan: An Open-ended income scheme with the objective
to generate regular income so as to make monthly payment or distribution to unit
holders with the secondary objective being growth of capital. Monthly Income is not
assured and is subject to availability of distributable surplus.
Birla Sun Life Monthly Income: An open-end income scheme with the primary
objective to generate regular income so as to make monthly and quarterly
distributions to unit holders and the secondary objective as growth of capital. Monthly
income is not assured and is subject to availability of distributable surplus.
Birla Dynamic Bond Fund: An Open-ended income scheme with the objective to
generate optimal returns with high liquidity through active management of the
portfolio by investing in high quality debt and money market instruments.
Birla Sun Life Government Securities Fund: An Open-ended Gilt scheme with the
objective to provide investors current income consistent with a portfolio invested
100% in securities issued by the Government of India or the State Governments, and
the secondary objective is capital appreciation.
Birla Asset Allocation Fund: An Open-ended Fund of Funds scheme with the
objective to provide income and capital appreciation along with diversification by
investing in a basket of debt and equity Mutual Fund schemes in line with the risk
profile of the investors.
Birla Sun Life International Equity Fund - Plan B: An open-ended diversified
equity scheme with an objective to generate long-term growth of capital, by investing
predominantly in a diversified portfolio of equity and equity related securities in the
domestic and international markets.
Birla Income Plus: An Open-ended income scheme with the objective to generate
consistent income through superior yields on its investments at moderate levels of risk
through a diversified investment approach
Birla India Opportunities Fund: An Open-ended growth scheme with the objective
to achieve superior long-term growth of capital by investing in shares of companies
that do one or more of the following: Leverage India's intellectual capital for
providing services, research and creative inputs; Seek to use current and impending
changes in patent laws / import tariffs / quotas to supply goods and services; Leverage
India's lower labour costs for providing services and manufactured goods; Leverage
India's large population of English speaking people for providing services.
Birla Gilt Plus: An Open-ended government securities scheme with the objective to
generate income and capital appreciation through investments exclusively in
Government Securities.
Birla Cash Plus: An Open-ended liquid scheme with the objective to provide
reasonable returns at a high level of safety and liquidity through judicious investments
in high quality debt and money market instruments.
Birla MNC Fund: An Open-ended growth scheme with the objective to achieve
long-term growth of capital at relatively moderate levels of risk by making
investments in securities of multi-national companies through a research based
investment approach
Birla MIP: An Open-ended income scheme with the objective to generate regular
income so as to make monthly distribution to unit holders with the secondary
objective being growth of capital. Monthly Income is not assured and is subject to
availability of distributable surplus.
Birla Sun Life Buy India Fund: A multi-sector open-end growth scheme with the
objective of long term growth of capital, through a portfolio with a target allocation of
100% equity, focusing on investing in businesses that are driven by India's large
population and inherent consumption patterns. The focus of the scheme will be in the
consumer and healthcare sectors.
Birla Sun Life New Millennium Fund: A multi-sector open-end growth scheme
with the objective of long term growth of capital, through a portfolio with a target
allocation of 100% equity, focusing on investing in technology and technology
dependent companies, hardware, peripherals and components, software, telecom,
media, internet and e-commerce and other technology enabled companies.
Birla Top 100 Fund: An open-ended growth scheme with the objective to provide
medium to long term capital appreciation, by investing predominantly in a diversified
portfolio of equity and equity related securities of top 100 companies as measured by
market capitalization.
Birla Index Fund: An Open-ended index-linked growth scheme with the objective
of generates returns commensurate with the performance of Nifty subject to tracking
errors.
Birla Equity Plan: An Open-ended Equity Linked Savings Scheme (ELSS) with the
objective to achieve long-term growth of capital along with income tax relief for
investment.
Birla Advantage Fund: An Open-ended growth scheme with the objective to
achieve long-term growth of capital at relatively moderate levels of risk through a
diversified research based investment approach.
Birla India GenNext Fund: An Open-ended growth scheme with the objective to
target growth of capital by investing in equity/equity related instruments of companies
that are expected to benefit from the rising consumption patterns in India, which in
turn is getting fuelled by high disposable incomes of the young generation
(Generation Next).
Birla Sun Life International Equity Fund - Plan A: An open-ended diversified
equity scheme with an objective to generate long-term growth of capital, by investing
predominantly in a diversified portfolio of equity and equity related securities in the
international markets.
Birla Sun Life Basic Industries Fund: A multi-sector open-end growth scheme with
the objective of long term growth capital, through a portfolio with a target allocation
of 100% equity, focusing on investing in companies sensitive to economic cycles and
commodity pricing cycles. The investments will be in companies which are often
referred to as cyclical companies.
Birla Sun Life Equity Fund: An open-ended growth scheme with the objective of
long term growth of capital, through a portfolio with a target allocation of 90% equity
and 10% debt and money market securities.
Birla Midcap Fund: An Open-ended growth scheme with the objective to achieve
long-term growth of capital at controlled level of risk by primarily investing in
midcap stocks.
Birla Sun Life Frontline Equity Fund: An open-end growth scheme with the
objective of long term growth of capital, through a portfolio with a target allocation of
100% equity by aiming at being as diversified across various industries and or sectors
as its chosen benchmark index, BSE 200.
Birla Sun Life Tax Relief '96: An open-end equity linked savings scheme (ELSS)
with the objective of long term growth of capital through a portfolio with a target
allocation of 80% equity, 20% debt and money market securities.
Birla Infrastructure Fund: An open-end growth scheme with the objective to
providing for medium to long-term capital appreciation by investing predominantly in
a diversified portfolio of equity and equity related securities of companies that are
participating in the growth and development of Infrastructure in India.

AWARDS WON BY BSLAMC
CNBC TV18 - CRISIL Mutual Fund of the Year Awards for 2007
Mutual Fund of the Year
Birla Sun Life Mutual Fund
Total Fund Houses = 26
1 yr performance ended 31, Dec 2007
Emerging Equity Fund of the Year
Birla Infrastructure Fund Growth
1 yr performance ended 31 Dec, 07
Total Schemes in Category = 14
Birla Sun Life Frontline Equity Fund
Category: Large Cap oriented Equity Fund
1 yr performance ended 31 Dec, 07
Total Schemes in Category = 22
Birla Sun Life Income Fund
Category: Income Funds
1 yr performance ended 31 Dec, 07
Total Schemes in Category = 17
Birla Sun Life Monthly Income
Category: Monthly Income Plans Conservative
1 yr performance ended 31 Dec, 07
Total Schemes in Category = 9
Birla Sun Life Short Term Fund
Category: Income Short Term Funds
1 yr performance ended 31 Dec, 07
Total Schemes in Category = 12
Birla Sun Life Income Fund-Growth
Best Fund - Bond INR General
3 yrs & 10 yrs performance ended 31 Dec, 07
Total Schemes in Category = 100 and 10 respectively
Birla Gilt Plus-Regular Plan-Growth
Best Fund - Bond INR Government
5 yrs performance ended 31 Dec, 07
Total Schemes in Category = 35
Birla Sun Life '95 Fund-Growth
Best Fund - Mixed Asset INR Aggressive
10 yrs performance ended 31 Dec, 07
Total Schemes in Category = 6
ICRA Mutual Fund Awards 2008
Birla I ncome Plus
7-Star Gold Award Debt: Long Term
1 yr ended 31 Dec, 07
Total Schemes in Category = 18
Birla Sun Life Short Term Fund
7-Star Gold Award Liquid Plus
1 yr ended 31 Dec, 07
Total Schemes in Category = 26
Schemes of BSL mutual fund
1. Birla Sun Life Cash Manager- A fund that aims to provide the convenience
of a saving account with the opportunity to earn higher post tax return.
2. Birla Sun Life Saving Fund A fund that provide the convenience of a
saving account with the opportunity to earn higher post tax return.
3. Birla Sun Life Dynamic Bond Fund A dynamic income solution that
aims to generate return with active management in bonds of quality companies to
capture positive price movements and minimize the impact of adverse price
movement.
4. Birla Sun Life Frontline Equity Fund A diversified equity fund that
invests across sectors in line with BSE200 index , with a bias for large caps but
not exclusively focused on them.
5. Birla Sun Life MNC Fund - The fund that invest in securities of
multinational companies in order to achieve long - term growth of capital with
relatively moderate levels of risk.
6. Birla Sun Life Small & Mid Cap Fund - An Equity fund that aims to
generate growth and capital appreciation by investing predominantly in equity
related securities of companies considered to be small and mid cap.


















Mutual Fund Types

All mutual funds would be either closed-end or open-end, and either load or no-load.
Once we have reviewed the fund classes, we are ready to discuss more specific fund
types. Funds are generally distinguished from each other by their investment
objectives and types of securities they invest in.
Money Market Funds : They invest in securities of a short-term nature, which
generally means securities of less than one-year maturity. The typical, short-term,
interest-bearing instruments these funds invest in include Treasury Bills issued by
Governments, Certificates of Deposit issued by banks and Commercial Paper issued
by companies.
Gilt Funds: Gilts are government securities with medium to long-term maturities,
typically of over one year. Since the issuer is the Government/s of India/States, these
funds have little risk of default and hence offer better protection of principal.
Debt or Income Funds: Debt Funds invest in debt instruments issued not only by
governments, but also by private companies, banks and financial institutions and other
entities such as infrastructure companies/utilities. By investing in debt, these funds
target low risk and stable income for the investor as their key objectives.
Equity Funds: Equity Funds invest a major portion of their corpus in equity shares
issued by companies, acquired directly in initial public offerings or through the
secondary market. They are generally considered at the higher end of the risk
spectrum among all funds available in the market.
Hybrid Funds: There are funds that seek to hold a relatively balanced holding of debt
and equity securities in their portfolios. Such funds are termed Hybrid Funds as
they have a dual equity/bond focus.
Commodity Funds: Commodity Funds specialize in investing in different
commodities directly or through shares of commodity companies or through
commodity future contracts.
Growth Funds: The aim of growth funds is to provide capital appreciation over the
medium to long- term. Such schemes normally invest a majority of their corpus in
equities. They are ideal for: investors in their prime earning years and also for
investors seeking growth over the long term.
Balanced Funds: The aim of balanced funds is to provide both growth and regular
income. Such schemes periodically distribute a part of their earning and invest both in
equities and fixed income securities in the proportion indicated in their offer
documents. In a rising stock market, the NAV of these schemes may not normally
keep pace, or fall equally when the market falls. They are ideal for investors looking
for a combination of income and moderate growth.
Index Funds: An Index Fund is a mutual fund that tries to mirror a market index, like
Nifty or BSE Sensex, as closely as possible by investing in all the stocks that
comprise that index in proportions equal to the weight age of those stocks in the
index. These are passively managed funds wherein the fund manager invests the funds
in the stocks comprising the index in similar weight. Index funds, while reducing the
risk associated with the market, offer many benefits to the investors. These are
considered appropriate for: Conservative long-term investors looking at moderate
risk, moderate return arising out of well diversified portfolio.
Sectoral Funds: Sectoral Funds are those, which invest exclusively in a specified
industry or a group of industries or various segments such as 'A' Group shares or
initial public offerings.
Advantages of Mutual Fund

If mutual funds are emerging as the favourite investment vehicle, it is because of the
many advantages they have over other forms and avenues of investing. The following
are the major advantages offered by mutual funds to all investors:
Professional Management: Mutual Fund is managed by skilled investment
professionals known as the Fund Managers. They are backed by a well equipped
investment research team and have a thorough knowledge of the capital market. The
manager uses the money that is invested by the investors to buy and sell stocks. Thus,
mutual funds enjoy the benefit of efficiently managed organization.
Diversification of Risk: Mutual funds are invested in a number of companies across
a broad cross-section of industries and sectors. Since mutual fund is a trust that pools
the savings of a number of investors sharing a common financial goal, the associated
risk is greatly reduced. This encourages the small earning groups to invest their
savings. Therefore loss in one sphere will not greatly affect the overall investment
status.
Reduction in Transaction costs: If we compare mutual funds to direct investments
in the capital market we will find mutual fund to have less cost. This is due to the
savings in brokerage costs, demat costs, depository costs, etc.
Liquidity: Investments in mutual funds is liquid and can be redeemed at the NAV on
any working day. In mutual funds (especially the open-ended schemes) an investor
can get his money back in 1-5 days.
Transparency: Whatever amount is invested in any scheme is made known to us and
we are periodically informed about all the updates and changes that take place.
Operational Flexibility: Mutual funds offer flexibility by providing various options
and schemes to match individual needs. Funds that are specially open-ended provide
high operational flexibility like:
Systematic Investment Plan (SIP)
Systematic Withdrawal Plan (SWP)
Systematic Transfer Plan (STP)
Tax Planning
Retirement Plan

High Return and Capital Appreciation: Mutual funds have the potential to provide
a higher return than that from the bank deposits because funds are invested in a
diversified basket of selected securities.
Disadvantages of Mutual Funds

While the benefits of investing through mutual fund far outweigh the disadvantages,
an investor and his advisor will do well to be aware of a few shortcomings of using
the mutual funds as investment vehicles.
Managing a Portfolio of Funds: Availability of a large number of funds can
actually mean too much choice for the investor. He may again need advice on how to
select a fund to achieve his objectives, quite similar to the situation when he has to
select individual shares or bonds to invest in.
No Control over Costs: An investor in a mutual fund does not have any control over
the overall cost of investing. He pays investment management fees as long as he
remains with the fund. He also pays fund distribution costs, which he would not incur
in direct investing.
No Tailor-made Portfolios: Investors who invest on their own can build their own
portfolios of shares, bonds and other securities. Investing through funds means he
delegates this decision to the fund managers. The very high-net-worth individuals or
large corporate investors may find this to be a constraint in achieving their objectives.
Taxes: When making decisions about your money, fund managers don't consider your
personal tax situation. For example, when a fund manager sells a security, a capital-
gain tax is triggered, which affects how profitable the individual is from the sale. It
might have been more advantageous for the individual to defer the capital gains
liability.


Mutual Fund in India

A survey done by Rachna Monga published in live mint side on 15 March 2008 finds
that Mutual fund investors constitute a mere 3% of population. After 15 years of
privatization of mutual fund companies - which are 32 in number - may take pride in
managing assets of more than Rs. 6 trillion, but how many investors do they have?
The Invest India Incomes and Savings Survey 2008, released by IIMS Data works,
Shows that out of 321 million individual wage earners aged between 18 and 59, only
9.63 million invest in mutual funds in India. So, fund investors constitute a mere 3%
of the population considered for the survey. The survey also reveals that 90% of the
savers have no clue about what a Mutual Fund is?
The industry is now struggling to comply with the new Securities and Exchange
Board of India norms that require every mutual fund investor to quote a Permanent
Account Number (PAN). While the industry may be actively creating awareness
about mutual funds as an asset class, 40% of the population still think that they cant
afford to play in this asset class because it is beyond their financial capacity. An
additional 28% think it is a risky asset class. Complicated application forms, too many
products, and a lack of awareness about where to buy from are some of the reasons
that have held potential investors back. Nilesh Shah, chief investment officer and
deputy managing director of ICICI Prudential Asset Management Co. Ltd. argues that
unlike banks or insurance companies, mutual funds have always got a step-motherly
treatment in terms of regulation or taxation. If I am accepting investments only
through cheques, then why should I ask investors to get a PAN? he asks.
According to an article published on 2
nd
June 2008 by Mr Nirmal Menon the effect
has not been much significant, It says that Call it the staying power of the middle
man. When the market regulator Securities and Exchange Board of India (SEBI) had
decided to waive off the entry load of 2.25 per cent for people wanting to invest
directly in mutual funds in January this year, it almost sounded like the death knell for
distributors.
Five months later, things stand where they were. Asset Management Companies
(AMCs) and mutual fund distributors say that, except for some visible movements of
direct investments from corporations and a few high-net individuals, SEBIs decision
hasnt really evoked an encouraging response from retail investors.
Most AMCs state that the percentage of retail investors that approached them before
and after this decision remained the same. Leading AMCs such as Reliance Mutual
Fund and JP Morgan Asset Management India peg this percentage at around 3 per
cent.
There has been no significant shift in investor preference towards approaching us
directly since the time the announcement is made, Vikrant Gugnani, President and
CEO of Reliance Mutual Fund, said.He added that distributors were still an integral
part of the system, as they have the wherewithal and the expertise to offer advisory
services to investors besides handling the documentation and paper work.

Reliance Mutual Fund, which has over 95 per cent of its business coming from
distributors, would soon be increasing its presence in Tier III and Tier IV cities, where
these middle men are the only conduit between the AMCs and aspiring investors.
Reliance Mutual Fund has over 26,000 distributors empanelled with them.

Industry players also point out that the dearth of retail investors directly approaching
AMCs could be attributed to the cloud of pessimism around the recent market slump
as well as falling trading volumes in mutual funds.
Very few investors are making direct investment deals, and this is by and large
guided by distributors, Krishnamurthy Vijayan, JP Morgan Asset Management
Indias Managing Director and CEO, said. But distributors are honest about one thing.
According to them, the impact of the entry load waiver hasnt trickled down to retail
investors because a large section still believe that they do not have the expertise to
hand-pick a fund that suits their appetite, and very few people have the time to apply
and process their own documents. Retail side is not showing up primarily because of
the lack of information and time, Partha Gupta, partner, Investment Idea Financial
Services, said.
Though the waiver effect may not have translated into bad news for distributors on the
retail side, the results are beginning to show among wholesalers or large clients.
In case of equity funds, where the waiver applies, wholesalers have begun directly
approaching AMCs, Shirish Patel, director of Mumbai-based Prudent Corporate
Advisory, said. His company has seen 5-7 per cent of his corporate clients
approaching the AMCs directly.
The Indian MF industry has Rs 5.67 lakh crore of assets under
management. As per data released by Association of Mutual Funds in India,
the asset base of all mutual fund combined has risen by 7.32% in April, the
first month of the current fiscal. As of now, there are 33 fund houses in
the country including 16 joint ventures and 3 whollyowned foreign asset
managers. According to a recent McKinsey report, the total AUM of the Indian
mutual
fund industry could grow to $350-440 billion by 2012, expanding 33%
annually. While the revenue and profit (PAT) pools of Indian AMCs are pegged
at $542 million and $220 million respectively, it is at par with fund houses
in developed economies. Operating profits for AMCs in India, as a percentage
of average assets under management, were at 32 basis points in 2006-07,
while the number is 12 bps in UK, 17 bps in Germany and 18 bps in the US,
in the same time frame.








REGULATORY MEASURES BY SEBI
Like Banking & Insurance up to the nineties of the last century, Mutual Fund industry
in India is set up and functioned exclusively in the state monopoly represented by the
Unit Trust of India. This monopoly is diluted in the eighties by allowing nationalized
banks and insurance companies (LIC & GIC) to set up their institutions under the
Indian Trusts Act to transact mutual fund business, allowing the Indian investor the
option to choose between different service providers. Unit Trust is a statutory
corporation governed by its own incorporating act. There is no separate regulatory
authority up to the time SEBI is made a statutory authority in 1992. but it is only in
the year 1993, when a government took a policy decision to deregulate Indian
Economy from government control and to transform it market oriented, that the
industry is opened to competition from private and foreign players. By the year 2000
there came to be established in the market 34 mutual funds offerings a variety of
about 550 schemes.
SECURI TI ES AND EXCHANGE BOARD OF I NDI A (MUTUAL
FUNDS) REGULATI ONS, 1996
The fast growing industry is regulated by Securities and Exchange Board of India
(SEBI) since inception of SEBI as a statutory body. SEBI initially formulated
SECURITIES AND EXCHANGE BOARD OF INDIA (MUTUAL FUNDS)
REGULATIONS, 1993 providing detailed procedure for establishment, registration,
constitution, management of trustees, asset management company, about
schemes/products to be designed, about investment of funds collected, general
obligation of MFs, about inspection, audit etc. based on experience gained and
feedback received from the market SEBI revised the guidelines of 1993 and issued
fresh guidelines in 1996 titled SECURITIES AND EXCHANGE BOARD OF
INDIA (MUTUAL FUNDS) REGULATIONS, 1996. The said regulations as
amended from time to time are in force even today.
The SEBI mutual fund regulations contain ten chapters and twelve schedules.
Chapters containing material subjects relating to regulation and conduct of business
by Mutual Funds.
ENTRY LOAD
This addendum sets out changes to be made in all the Offer documents and Key
Informatio Memorandums of BSL Mutual Fund Schemes. Pursuant to SEBI
circular number SEBI/IMD/CIR No. 10/112153/07 dated December 31, 2007, in
respect of all the schemes of BSL Mutual Fund, no entry load shall be charged for
direct applications (Purchase and Switch-in) accepted by the Asset Management
Company (AMC i.e. applications accepted through internet (AMC website or
Registrars Website), accepted at AMC or collection Centres / Investor Service
Centres or accepted through any other mode of direct purchase as prescribed by
AMC from time to time that are not routed through any distributor/agent/broker. It
shall also be applicable to additional purchases done directly by the investor
under the same folio and switch-in to a scheme from other schemes if such a
transaction is done directly by the investor. However, for additional purchase under
existing folio, the investor has to mention the word Direct specifically in the
application form in order to avail the benefit of entry load waiver otherwise such
application will be treated as routed through distributor/agent/broker, if any,
through whom initial purchase is made. The above load structure shall be applicable
with effect from 4th January, 2008 for all applications accepted on and from 4th
January, 2008
No entry load on mutual funds: Who wins, who loses -

The recent ruling by the Securities and Exchange Board of India SEBI, on the
removal of entry load on mutual fund investments has brought appreciation as well as
criticism from different corners. Last year SEBI had done away with entry load in
cases where the investors directly invested in mutual funds without going through
an agent or a distributor.
With the new ruling in place, investors will be free to negotiate the commission with
their distributor and if they are smart negotiators they may even pay nil commission
on their investments. Good news for some, not so good news for others. Well let us
have a look as to who stands to benefit and who stands to lose out and the
implications of SEBI's decision for investors, distributors and mutual fund
companies.
Who will benefit?
What a silly question to ask? Of course, you, dear investor!
How? Because now that there will be no entry load on the money that you will
invest in any mutual fund scheme all the money that you invest will be used to buy
mutual fund units unlike earlier when 2.25 per cent would be lopped off and the rest
invested. The table below illustrates this better.
As seen in the illustration above because of no entry load on your investments you
will make Rs 9,102 more than what you would have made otherwise. According to
the new ruling, investors will decide with the distributor, an upfront commission or
fees to be paid for their advice and services.
The benefits for investors are:
No entry load
Distributors will get a fee for their advice and hence distributors will have
to give the right advice rather than promoting schemes, which offer them
superior brokerage
No more churning of the portfolio of the investors which many distributors
used to indulge in especially when a New Fund Offer (NFO) would be
announced to earn hefty commissions without any care for your money
Some distributors would make the investors exit their old funds and make them invest
in new fund where the commission would be high. It is not that NFOs are not good
investments but this practice which some of the distributors used to follow is wrong
and unethical
However, the flip side is now there also will be no cash back to the investor. Earlier,
the practice is that the distributor would pay back the investor a small amount out of
the commission he earned from mutual fund companies making the investor feel
good about it.
The recent SEBI move brings in a greater degree of transparency in investments in
mutual funds and investors will be benefited as they would now get real advice in
the true sense.
Who loses?
The retail distributors, the fund houses to some extent, and the relationship managers
of banks who made a neat commission out of their advice to investors on which funds
to buy and sell.
How?
They will now have to negotiate with the clients and decide on a fee (smart investors
can negotiate this to their own benefit) whereas initially they used to get a fixed
brokerage from the fund house. The taxation angle, though, is also not very clear.
Initially service tax is deducted from the brokerage and the balance is paid to the
distributor. Now it is still not clear how the service tax will be paid.
Whether the distributor will collect that amount from the investor and then pay the tax
or is there any other methodology still stands to be clarified. If distributors have to
pay a service tax, then they will have to take a service tax number. This in turn can
lead to distributors asking fees in the form of cash in order to avoid the service tax.
The retail distributors may reduce or may entirely stop selling mutual funds as it may
no longer be lucrative to them. This will hamper the business of fund houses.
SEBI has also passed a ruling for the distributors to disclose their commissions and
other benefits. This ruling obviously did not go down well with the industry.
There are no changes in the exit load as of now.
SEBI's ruling will be applicable to:
All investments in the mutual fund schemes -- including additional
purchases or switch from one scheme to the other -- with effect from
August 1, 2009
New schemes launched from or after August 1, 2009
Systematic investment plan (SIP) registered on or after August 1, 2009
There are still lots of ifs and buts as SEBI is still to issue complete guidelines. But
this preliminary guideline too is a revolutionary step in itself as investors will now
be paying for the right kind of advice. The system of pass back wherein distributors
used to pass on their incentives to the investors for inducing the investors to invest in
a particular fund to meet their personal targets will also be done away with. Now
investors can gain access to well-informed and proper advisors, financial planners to
get proper advice for their investments in accordance with the fee that they pay.




Distribution: The prime driver of growth

According a report by Indian Financial Institutions Practices titled Indian Asset
Management: Achieving Broad Based Growth, revenue pools are skewed in favour
of distributors, who corner almost 60 per cent of revenue, with manufacturers
accounting for the rest. Customers choose an AMC primarily on the recommendation
of a salesperson, followed by fund performance and brand strength. Given that
distribution in India has already leapfrogged to an open architecture, with banks,
independent financial advisors (IFAs) and national distributors (NDs) playing an
almost equally important role, it is imperative for AMCs to manage distribution
partners with care. Banks are the dominant channels in the top 8 cities. Even here,
however, the cross-sell rates for banks, at an average of 2 per cent in urban India, are
much lower than global benchmarks (e.g., 12 per cent in the UK and 15 per cent in
Belgium). Only foreign banks in India are closer to global benchmarks, with a cross-
sell rate of about 8 per cent. National distributors today offer better services than
banks and IFAs, especially in investor query resolution, and are primarily focused on
HNI customers. Independent financial advisors come across as the most preferred
primary channel for distribution beyond the top 8 cities.




Branding: The key to influencing the perception of performance
According a report by Indian Financial Institutions Practices titled Indian Asset
Management: Achieving Broad Based Growth, fund performance is a necessary but
not sufficient condition for driving AUM growth. Funds in the top docile (with
respect to historic growth) have witnessed maximum growth across asset classes,
from pure equity to pure debt products, and across time. However, among different
funds, growth varies significantly for top-performing schemes. The research shows
that a positive perception of the brand induces a positive view of performance.
Strong brands are able to influence perception of fund performance and hence spur
growth, making brand management one of the critical success factors in the industry.
It expect players to differentiate themselves on the dimensions of strategy and focus
and that winners will be those making an explicit choice among the three strategies
at-scale players, asset class-focused players, and multi-boutique players.















SWOT ANALYSIS

STRENGTH

Has network of 600 branches and advisor spread over 1500 towns in India having
over 130000 advisors.
Backed by Aditya Birla brand and sun life financial services.
Emphasis on customer satisfaction through transparent functioning.
Strong capital base.


WEAKNESS

Lower presence in rural market.
Lesser advertising as compared to competitors.


OPPORTUNITIES

Growing potential in rural market.
Alignment with government schemes.
Better awareness amongst people for getting insurance.


THREATS

Economic crisis and economic instability.
Entry of new NBFCs in the sector.





REVIEW OF LITERATURE

ARUNAJATESAN S., VISHISNATHAN T.R., Macmillan Publishers India
ltd.,2009 edition
Insurance in the modern form came into practice mainly to cover the risk at sea and
their disastrous consequences. The very word policy indicating the insurance contract
comes from the Italian polizza. The aim of the insurance is to make provisions against
dangers which best human life and dealings. Those who seek it Endeavour to avert
disaster by shifting possible losses on to the shoulders of others, who are willing for
pecuniary considerations, to take risks thereof and in case of life insurance.

AGARWAL O.P., Himalaya Publishing House, 2010 edition
The insurance can be defined in both financial and legal terms. The finance definition
focuses on arrangement that redistributes the cost of unexpected losses, the collection
of small premium payment to those suffering loss. The insurer seeks to know the
material facts from the proposer through a proposal. It is in a questionnaire format
prepared by the insurer to elicit all information necessary for a proper evaluation of
the risk. The proposal form usually concludes with the declarations by the proposer to
the effect that the statements made by the proposer.

GULATI C. NEELAM, Anurag Jain for Excel books, 2007
In India most of the products are endowment types where the saving component is
predominant. Every policy will remain claim either by maturity or by death. Policy
expires on a specific date. Insurance is understood as a risk transfer mechanism where
persons facing similar insurable risk are brought together to protect themselves by
pooling the risk and sharing the losses. Insurance companies make this possible
through insurance contracts. They are governed by loss enacted by government and
regulation issued by the authority which is empowered exclusively to do so by
legislation.

VERMA M.M, Educational Publishers, 2009
The life policy issued by the LIC is a printed document which is in evidence of the
contract of insurance. It contains the various terms, conditions and privileges upon
which the contract is based. Life insurance covers mainly the risk of death. It does not
cover the effect of inflation and fall in currency value of the sum assured which is
promised at the outset of the contract.



















RESEARCH METHODOLOGY
RESEARCH
Research is a process of steps used to collect and analyze information to increase our
understanding of a topic or issues. The primary purposes of basic research are
documentation, discovery, interpretation of the research and development of the
methods and systems for the advancement of human knowledge. It includes gathering
of information, data and facts for the advancement of knowledge.
HYPOTHESIS
A hypothesis is a preliminary or tentative explanation or postulate by the researcher of
what the researcher considers the outcome of an investigation will be. It is an
informed/educated guess. It indicates the expectations of the researcher regarding
certain variables. It is the most specific way in which an answer to a problem can be
stated.

Research hypotheses are the specific testable predictions made about the independent
and dependent variables in the study. Hypotheses are couched in terms of the
particular independent and dependent variables that are going to be used in the study
A hypothesis may be defined as a proposition or a set of proposition set forth as an
explanation for the occurrence of some specified group of phenomenon either
asserted as a provisional conjecture to guide some investigation or accepted as
highly probable in the light of established facts.
The types of hypothesis:
Null hypothesis
Alternative hypothesis
1) NULL HYPOTHESIS [H0] - The null hypothesis assumes that there is no
significant difference in the sample & population in a specific matter under
consideration.
2) ALTERNATIVE HYPOTHESIS [H1] - When we reject the null hypothesis, the
conclusion we accept is called alternative hypothesis. It specifies that the difference
between sample statistic and population parameter is significantly not arising
accidentally but because of other reasons.

The NULL hypothesis: There is a no significant difference between Satisfaction levels of
Channel partners of birla sun life mutual fund and services provided by birla sun life mutual
fund.
The ALTENATIVE hypothesis: There is a significant difference between Satisfaction
levels of
Channel partners of birla sun life mutual fund and services provided by birla sun life mutual
fund.
Scope of the Study
Product Scope: The research is conducted to know about the prospects of various
new investment instruments coming up in India like Gold ETFs, Real estate mutual
funds, fund of funds. The research is also conducted to analyze the future of water
funds that is still in its infancy state globally.
Area Covered: Individual Financial Advisors of Birla Sun Life Mutual Fund, Jaipur
branch.
Objective of the study
As the title of the project suggests, the objective of the project is to find out the
satisfaction level of Distributors with respect to the services & overall product quality
provided by the AMC.
The following are the sub objectives of the project:-
Understanding the attitude and behavior of the distributors towards Birla
Sun Life Mutual Fund.
Find out their preference parameters for selling a particular fund.
Understanding the competition for the service provided by different
mutual fund companies.
Finding out ways and means to improve on the services by Birla Sun Life
Mutual Fund.

SAMPLING TECHNIQUE

This research has used convenience sampling technique. Convenience sampling is
used in exploratory research where the researchers interested in getting an
inexpensive approximation of the truth. As the name implies, the sample is selected
because they are convenient.
Since the probability of inclusive of any unit (of population) in a sample is unknown
taking in view the size of the population it is better to go for non-probability
convenience sampling method. This is also called accidental sampling as the
respondents in the samples are included merely because of their presence on the spot.
Several important considerations for me while my research using convenience
samples include:
1) Is there good reason to believe that a particular convenience sample would or
should not respond or behave differently than a random sample from the same
population?
2) Is the question being asked by research one that can adequately be answered. Every
project work is based on certain methodology, which is a way to systematically solve
the problems or attain its objective.
It is very important guidelines an lead to completion of any project work through
observation, data collection and analysis and sampling technique.
RANDOM SAMPLING: Based on theory of population it is called random
sampling. It provides non zero chance of selection for each population element.
Alternative method of random sampling is selected for the study which is known as
systematic random selection .when population is divided into homogeneous group or
strata is known as stratified random sampling. When equal chances of selection are
provided then it is known as simple random sampling.




Data Collection Method

Primary Data: - Primary data is collected during the course of research
period with the help of the questionnaire that is designed for the consumers
to collect the information that is required to carry out the research. Personal
interview were conducted with the retailers to ascertain major competitor in
fairness cream market.

QUESTIONNAIRE:-A questionnaire is a research instrument consisting of
a series of questions and other prompts for the purpose of gathering
information from respondents. Although they are often designed for
statistical analysis of the responses, this is not always the case

INTERVIEW: - An interview is a conversation between two or more people
where questions are asked by the interviewer to elicit facts or statements
from Interviews are standard parts of journalism and media reporting but are
also employed in many other situations, including qualitative research

Secondary Data: - Secondary data is collected from books, articles, Internet
and previous research papers that had been conducted by the company
representatives and officials.










RESEARCH DESIGN

First an exploratory research is conducted to get some insights about the topic.
Secondary data is also collected. Further descriptive research is conducted to
determine the satisfaction level of existing channel partners and to analyze the effect
of waiver of entry load on direct applications in mutual funds.

TYPES:-

DESCRIPTIVE RESEARCH DESIGN: - It is used to describe
characteristics of a population or phenomenon being studied. It addresses the
what question.

EXPLORATORY RESEARCH DESIGN: - Exploratory research of
research conducted for a problem that has not been clearly defined. It helps
in determining the best research design.

SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample for a given population. It
refers to a techniques or procedure adopted in selecting items for the sample.
The following is the sample design that has been adopted for the study.
1. Population:- Finite(Jaipur)
2. Sampling Unit:- Areas of Jaipur
3. Sample size: - sample size is 78.



DATA ANALYSIS

Q1.
YEARS RESPONSES %
0-2 27%
2-5 40%
5-10 23%
MORE THAN 10 10%




Inference: 67% of the channel partners are with an experience of less than 5 years in
the Mutual fund industry. 33% of the channel partners are with an experience of more
than 5 years





27%
40%
23%
10%
0-2 Years
2-5 Years
5-10 Years
>10 Years

Q2
PARAMETERS MEAN RANK
Better Services 4.12 5
Good Brand 3.89 4
Returns 2.77 1
Better Incentive Structure 3.03 2
Timely Brokerage 3.47 3



Inference: From the above table it can be inferred that 2.77 Individual financial
advisors give preference to returns of the funds above all the factors which is related
to the benefit of the investors. Next to it 10.62 consider their own benefits such as
incentive structure, services, timely brokerage etc.




4.12
3.89
2.77
3.03
3.47
Better Services
Good Brand
Returns
Better Incentive Structure
Timely Brokerage
Q3.

Reliance ICICI Birla UTI LIC
Services 2.231956 2.50775 2.263113 1.85192 1.99872
Brand 4.37683 3.77896 3.4200741 4.76948 4.71249
TimelyBrokerage 3.326837 3.44806 3.398655 2.81341 2.10651
Returns 3.851395 3.79927 3.387171 3.55814 3.81302
IncentiveStructure 2.245288 2.4084 2.185967 2.26585 2.43233
TOTAL 16.032306 15.9424 14.6549801 15.2588 15.0631
3.2064612 3.18849 2.93099602 3.05176 3.01261

The above table shows the scores of satisfaction of the various channel partners
surveyed.

0
2
4
6
8
10
12
14
16
18
Services Brand TimelyBrokerage Returns IncentiveStructure TOTAL
Channel Partner Satisfaction Scores
Reliance
ICICI
Birla
UTI
LIC
Inference:
The graph above shows the channel partners satisfaction scores on each of the
factors and total satisfaction score for each of the AMCs, where a score of 5
represents the most satisfied partner and a score of 1 represents the least satisfied
partners.


Q4.
PARAMETERS AVERAGE
Frequency of Relationship Manager Visit 3.451
Clarity of forms and other material 4.053
Services of Registrar CAMS 3.127
Cost 2.724
Quality of Services 3.581
Brokerage Structure 3.017
Fund Performance 3.745
Frequency of new funds 3.819



3.451
4.053
3.127
2.724
3.581
3.017
3.745
3.819
Frequency of Relationship
Manager Visit
Clarity of forms and other
material
Services of Registrar
CAMS
Cost
Quality of Services
Brokerage Structure
Inference:
Birla Sun Life Mutual Fund scored 4.053 on the clarity of forms and other material. It
scored 2.724 on the cost that is incurred by the IFAs.


Q5.
PARTICULARS RESPONSES%
SATISFIED 69%
NON-SATISFIED 31%




Inference:
From the upper graph we can say that about 69% of the channel partners are satisfied
by the services of Birla Sun Life Mutual Fund.



69%
31%
Satisfied
Not Satisfied
Q6.
PARTICULARS RESPONSES%
LESS THAN 25% 39%
25-50% 37%
MORE THAN 50% 24%


Inference:
In the graph above we can see that
Around 39% of the channel partners think that about very few of their
investors know about the SEBI circular.
Around 37% say that according to their estimates more than 25% and less than
50% of their investors know about the SEBI circular.
Only 24% of the channel partners think that more than 50% of their total
investor base has knowledge about the SEBI circular regarding waiver of
Entry Load on Direct applications.




39%
37%
24%
LESS THAN 25%
25-50%
MORE THAN 50%
Q7.
We can measure by using two different options at two different ends like

a. Male / Female
PARTICULARS RESPONSES
MALE 63%
FEMALE 37%





b. Service Man / Business Man

PARTICULARS RESPONSES%
SERVICE MAN 68%
BUSINESS MAN 32%


63%
37%
Male
Female


c. Computer Savvy / Non Computer Savvy

PARTICULARS RESPONSES%
COMPUTER SAVVY 72%
NON COMPUTER SAVVY 28%




Inference: From above three graphs we can infer that
The direct applications in the mutual funds are given by the 63% male
investors and 37% female investors.
68%
32%
Service Man
Business Man
72%
28%
Computer Savvy
Non Computer Savvy
People who are in computer savvy are 72% and non computer savvy
are 28%.
Investors who are into service are 68% and into business are 32%.


Q8.
PARTICULARS RESPONSES%
YES 33%
NO 67%




Inference: From the response given by the channel partners to this question, this can
be inferred that 67% of the total channel partners survyed didnt had any significant
decrease on their average assets under managementthat they hold with different
AMCs.


33%
67%
Yes
No
Q9.
EFFECT OF SEBION ENTRY LOAD RESPONSES%
HAS STARTED 37%
WILL START WITH A TIME GAP 63%




Inference: With the above response graph it can inferred that the channel partners
holds a view that the effect of SEBI circular regarding waiver of entry load on direct
applications in mutual funds will start with a time gap of 63%.


Q10.
PARTICULARS RESPONSES
A.Reduce the load partially and let the
AMC bear the charges.
33.33
B.Remove the charges completely and let
the AMC and the broker share the
charges
35.90
37%
63%
Has Started
Will Start with a Time
Gap
C.Let it be as it is, the effect will fade in some
time
30.77




Inference: From above graph we can say that they had different views over this
question with every option being chosen about 30%.

33.33
35.90
30.77
28.00
29.00
30.00
31.00
32.00
33.00
34.00
35.00
36.00
37.00
a b c
Series1
MAJOR FINDING

67% of the channel partners are with an experience of less than 5 years in the
Mutual fund industry. 33% of the channel partners are with an experience of
more than 5 years.
It is inferred that 2.77 mean Individual financial advisors give preference to
returns of the funds above all the factors which is related to the benefit of the
investors. Next to it 10.62 consider their own benefits such as incentive
structure, services, timely brokerage etc.
We can infer from this survey that the channel partners satisfaction scores on
each of the factors and total satisfaction score for each of the AMCs,
where a score of 5 represents the most satisfied partner and a score of 1
represents the least satisfied partners.
Birla Sun Life Mutual Fund scored 4.053 on the clarity of forms and other
material. It scored 2.724 on the cost that is incurred by the IFAs.
It is found out by this survey that about 69% of the channel partners are
satisfied by the services of Birla Sun Life Mutual Fund.
From the response given by the channel partners this can be inferred that 67%
of the total channel partners survyed didnt had any significant decrease on
their average assets under management that they hold with different AMCs
since the issue of this circular.
Around 39% of the channel partners think that about very few of their
investors know about the SEBI circular.
Around 37% say that according to their estimates more than 25% and less than
50% of their investors know about the SEBI circular.
Only 24% of the channel partners think that more than 50% of their total
investor base has knowledge about the SEBI circular regarding waiver of
Entry Load on Direct applications.
The direct applications in the mutual funds are given by the 63% male
investors and 37% female investors.
People who are in computer savvy are 72% and non computer savvy are 28%.
Investors who are into service are 68% and into business are 32%.
The channel partners holds a view that the effect of SEBI circular regarding
waiver of entry load on direct applications in mutual funds will start with a
time gap of 63%

They had different views over this question with every option being chosen
about 30%. Still we can see that there is more inclination towards removing
the loads completely let the AMC and channel partner bear the losses.



.
















SUGGESTIONS


More number of Individual financial advisors could be included in this survey
so that more data is gathered and accuracy of study increases.
The study could be conducted sometime later so that the effect of the SEBI
circular could be determined in significant terms.
The study could be conducted in more number of cities with different
investment patterns so that better scenario can feature.
Birla Sun Life must focus on building a brand value where it has scored very
less.














RECOMMENDATIONS

The services provided by Birla Sun Life Mutual Fund, Jaipur must be
improved because the satisfaction level among the channel partners is not so
high. It can be improved by reducing the defaults in case of wrong entries of
applications and brokerage defaults like untimely cheque and incorrect
amount.
The factsheet CONNECT and other promotion material which is send monthly
and other promotional material stationary must reach timely to the branch
offices.
The frequency of visits by the Relationship Manager must be increased. The
channel partners felt that the frequency of visits is not adequate. They were
also unsatisfied by their relationship manager changing very frequently.
The effect of the SEBI circular regarding waiver of entry load on direct
application in mutual fund is not significant and will start increasing with a
time gap. Offers such as waiver of loads on some funds can be circulated
regularly so that the effect is reduced.
More and more meeting such as high tea can be conducted so that an adequate
number of touch points are reached. The Individual financial advisors are
keener to listen to the fund managers as compared to the sales managers so
fund managers can also be involved in the meetings.







CONCLUSION

Here ALTERNATIVE HYPOTHESIS that is there is a significant difference between
Satisfaction levels of Channel partners of birla sun life mutual fund and services
provided by birla sun life mutual fund. Most of the channel partners are with an
experience of less than 5 years in the Mutual fund industry. The channel partners are young
into this business which represents a more energetic and enthusiastic working population.
Individual financial advisors give preference to returns of the funds above all the factors
which is related to the benefit of the investors. Next to it they consider their own benefits
such as incentive structure, services, timely brokerage etc. Not many investors have
knowledge about the SEBI circular regarding waiver of Entry Load on Direct applications.
So the effect on the business of the channel partners is not much significant. Most of the
direct applications in the mutual funds are given by the male investors because they have
better knowledge about the SEBI circular on waiver of entry load on direct application.
People who are computer savvy prefer giving direct application through internet as
compared to the non computer savvy investors since most of the asset management
companies provide option of direct application through their websites. Computer savvy
investors consider it secure and easier to apply through internet. Investors who are into
service or are retired personnel prefer giving direct application as compared to the investors
who are into business. The channel partners holds a view that the effect of SEBI circular
regarding waiver of entry load on direct applications in mutual funds will start with a time
gap as the awareness regarding such circular will rise.










LIMITATIONS

Sampling Error The sample size is small only 78. We filled 85
questionnaires but 7 out of those were rejected.
Response Error: It of two type
1. Inability error: Many a times it so happened that the respondents were
empanelled recently so they didnt had much experience about the
services of Birla Sun Life Mutual Fund.
2. Unwillingness Error: Respondents were deterrent to provide
information because of lack of time.
Other limitations: Area of study is limited to Jaipur branch only; hence
recommendation cannot be generalized for all branches of Birla Sun Life
Mutual Fund throughout India.












QUESTIONNAIRE

Dear Sir/Madam
This is a Marketing Research initiative taken up by a mutual fund asset
management company to analyze the effect of waiver of entry load on direct
applications in mutual funds. Hereby, we request you to kindly provide us with the
following information which will be kept confidential and will not be used for any
other purpose without your prior permission.


1. How long have you been into Mutual Fund industry?
a. 0-2 Years
b. 2-5 Years
c. 5-10 Years
d. >10 Years

2. Please rank the parameters given below according to your preference
in choosing any AMC?
a. Better services d. Better incentive structure
b. Good Brand e. Timely brokerage
c. Returns f. Any other__________

3. Please rate the following AMCs on the basis of these parameters
Birla ICICI Reliance UTI LIC
a. Services
b. Good Brand
c. Timely Brokerage
d. Returns
e. Incentive Structure
4. Rate the following parameters for Birla Sun Life AMC on a scale of 1
to 5

a. Frequency of Relationship Manager Visit
b. Clarity of forms and other material
c. Services of Registrar CAMS
d. Cost
e. Quality of Services
f. Brokerage Structure
g. Fund Performance
h. Frequency of new funds

5. Are you satisfied with the services of Birla Sun Life Mutual Fund?
a. Yes
b. No

6. What percentage of your investors/clients do you think are aware of
the SEBI circular regarding waiver of Entry Load on Direct
application?
a. < 25 %
b. Between 25-50 %
c. > 50 %

7. Which type of investors do you think prefer giving direct application?

a. Male Female
b. Computer Savvy Non Computer Savvy
c. Service Man Business Man

8. Do you see a decrease in the average AUM that you hold with the
AMCs, since the issue of SEBI circular on waiver of Entry Load?
a. Yes
b. No
9. Do you think that the effect of SEBI circular on Entry Load has started
or will start with a time gap?
a. Yes
b. No
10. What do you think the AMC should do with regards to the Entry Load?
a. Reduce the load partially and let the AMC bear the charges.
b. Remove the charges completely and let the AMC and the
broker share the charges.
c. Let it be as it is, the effect will fade in some time.

____________________________________________________________________


THANK YOU FOR YOUR PARTICIPATION










BIBLIOGRAPHY

Books:
ARUNAJATESAN S., VISHISNATHAN T.R., Macmillan Publishers India
ltd.,2009
AGARWAL O.P., Himalaya Publishing House, 2010 edition
GULATI C. NEELAM, Anurag Jain for Excel books, 2007
VERMA M.M, Educational Publishers, 2009

WEBSITES:
http://en.wikipedia.org
http://mutualfund .birlasunlife.com
www.mutualfundsindia.com
http://investopedia.com/articles/mutualfunds
http://www.moneycontrol.com/financials/bsl/balance-sheet/BSL
http://www.sebi.gov.in/boardmeetings/124/mfdistributors.
North American Retail Financial Services by Bruce D. Temkin with Bill
Doyle, Catherine Graeber, Mary Pilecki, and Brad Strothkamp
European Retail Financial Services by Benjamin Ensor with Cliff Condon,
Jost Hoppermann, Tim van Tongeren, and Ashara Giordanelli on April 27,
2007.
www.consumerfed.org/pdfs/mutual_fund_survey_report.pdf.
http://www.raddon.com/press/article98.asp
http://www.amazines.com/article_detail.cfm/392303?articleid=392303
http://birlasunlife.com/BirlaSunLife/Mutual_Fund/BSLAMC_MP/AMCMPin
dex.aspx