CHAPTER 1

INTRODUCTION

INTRODUCTION ABOUT COMPANY

1.1) NJ India Invest Pvt. Ltd.

The word NJ

stands, N for

Neeraj Choksi and J for

Jignesh Desai

the founder directors of

NJ

Invest.

growing scope

Seeing

the

India

of the financial service

sector

two dynamic young men,

after

completing

education,

their

started their career with

this

these

sector.

Both of them decided to jump into the same field and came out with the dynamic concept of NJ
Capital stock, which is known as NJ India Invest now.
This business was started in the year 1994; it was the period when private companies were
entering the field of financial services. This was the time when NJ India Invest evolved as a
client focused need based investment advisory firm. NJ has achieved expertise in need based
investment of clients.
At NJ we regard Mutual Fund as one of the best investment avenues available to satisfy
any kind of investment need. NJ has a very well trained men power to meet the need of the
clients and market. With very well qualified work force we have gained expertise in analyzing

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Mutual Fund schemes and we even have achieved expertise in carrying out In-depth study on
various parameters of these different Mutual Fund schemes.
NJ India Invest is a company, which is evolved in this business from past twenty years as a
client focused need based investment advisory firm. It has developed its own IT industry known
as Fin logic India Pvt. Ltd. i.e. Technology to support clients as well as its employees in their
daily routine work. The company has its site named www.NJindiainvest.com which provides a
valuable support to clients.

1.1.1) NJ India Invest focus

At NJ the people are education centric, the relationship managers will help you in identifying
and understanding your needs and help you develop a portfolio across different asset classes
commenSurate to your needs. This practice is only performed at NJ and this is what makes it
superior to other competition in this same field.
There are well-trained experts who give a feel on the various assets classes and explain you
the risk associated with each in a simple and lucid manner to put you at calm. Once the
investment is planned and done we dont leave our client in between but we back them by
periodic valuation report and regular information through newsletters, mailer, e-mail, road shows
etc.
The prime focus of the people at NJ is to help you attain peace of mind on the investment front.

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1.1.2) PRODUCTS & SERVICES

Mutual fund
Asset management
Real estate
Insurance broking
Global wealth advisor
Information technology
The above are the core investment in which we deal and where we have developed our
competency. But mutual funds are where the eyes of NJ are focused the most.

Service Provided To Valuable Clients and Agents: The weekly performance sheet (it covers performance of leading mutual fund schemes)
The monthly fund fact sheet (it covers comprehensive analysis of various mutual fund)
Various subscription services via E-mail
Dedicated portfolio planning and restructuring on demand
Sharing relevant information related to the Indian investment world.
Varied services through NJfundz network for partners.
Over all we also provide net-based services to our clients and agents. Our E-services are
provided by a comprehensive website www.NJindiainvest.com. It covers detailed information
about the Mutual Fund industry; it passes various financial planner to satisfy investment goals
like retirement planning, childs marriage planning etc. it also posses various analytical tools to
measure the performance of the Mutual Funds schemes like Return calculators, SIP return
calculators, and many others. There is a separate desk for the clients to get their portfolio
information on fingertips.

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The partners of NJ get valuable services from The Client Desk @ NJindiainvest.Com. From
which they get following services:
Transaction summary report (Mutual funds, fixed deposits, RBI bonds & other)
Portfolio valuation report
Portfolio Performance report
Profit and loss a/c (FY wise)
Consolidated sector & stock profile for equity investment through mutual funds
Consolidated rating and script profile across debt funds through mutual funds.
Consolidated assets allocation report across various assets
Alert processing facility across different parameters

1.1.3)NJ INDIAINVESTS ACHIEVEMENT:NJ India Invest is a growing company that can be very well proved from the below
achievements.
They have gained a dominant place in the Indian mutual funds distribution business
Certified by the Association of Mutual Funds as AMFI registered Mutual Funds advisors
Won the Pru Chairmans award twice in the year 2000 and 2002 for outstanding performance
in the scheme of Prudential ICICI Mutual Fund. The chairman, prudential, presented the award at
London both the times.
Won many other awards and certificates for outstanding performance in various Mutual Funds
schemes.
It has acquired about 15 to 17% share of total mutual fund business of Gujarat.
Received the award for the year 2003-04 from HDFC mutual fund for highest selling of mutual
funds. NJs director at Scotland received the award.
Assets Under Management (AUM) more than 10 lakh corers.
From that NJ has 16 thousand corers
NJ India Invest has tie up with all 45 AMC

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1.1.4) Thinking at NJ India Invest

To provide reliable information

To honor our service commitments

To maintain all record in privacy

To preserve client capital

To provide appropriate feedback

To guide their future investment

To restructure investment plan on demand

Finally to provide complete solution & peace of mind on the investment front

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1.1.5) Vision and mission statement of NJ India invest

Vision Statement
To be the leader in our field of business through,

Total Customer Satisfaction

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

Mission Statement

Ensure creation of value by providing a differentiating edge to

The activities of our customers, investors and distributors
Through technnovative solutions while fulfilling our obligation
And maintaining high professional and ethical standards along
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With service standards

The company keeps the statement as their basics which they need to achieve and provide to
the customers. The company believes in qualitative work with standardization and to give
maximum satisfaction to their client that what it keep its vision on.
The company keeps the statement as their basics which they need to achieve and provide to
the customers. The company believes in qualitative work with standardization and to give
maximum satisfaction to their client that what it keep its vision on.

1.1.6) Management team

The key members of the management are:
Mr. Neeraj Choksi

Managing Director

Mr. Jignesh Desai

Managing Director

Product team:
Mr. Misbah Baxamusa

National Head for wealth distribution network

Mr. Husaini Kanchwala

Head for investment

Mr. Jigesh Desai

Head for real estate

Functional Team:
Mr. Shirish Patel

Information Technology

Mr. Vinayak Rajput

Operations

Mr. Abhishek Dubey

strategic business development

Mr. Dhaval Desai

Human Resources

Mr. Mohammadali Saiyed

fianance

Col. C M Dixit

Administration function

Mr. Janak Patel

Audit
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Mr. Rakesh Tokarkar

Compliance Function

Mr. Samanvay Maniar

Marketing

1.1.7) AMCS WITH NJ INDIAINVEST:

1. AXIS ASSET MANAGEMENT COMPANY LIMITED
2. BARODA PIONEER ASSET MANAGEMENT CO.LTD
3. BIRLA SUN LIFE MUTUAL FUND
4. BNP PARIBAS ASSET MANAGEMENT(I) PVT LTD
5. BOI AXA INVESMENT MANAGERS PRIVATE LIMITED
6. CANARA ROBECO ASSET MANAGEMENT COMPANY LTD.
7. DEUTSCHE ASSET MANAGEMENT (INDIA) PVT LTD.
8. DSP BLACKROCK INVESTMENT MANAGERS LTD.
9. EDELWEISS ASSET MANAGEMENT LIMITED
10. ESCORTS ASSET MANAGEMENT LIMITED
11. FRANKLIN TEMPLETON ASSET MANAGEMENT (INDIA) PVT. LTD.
12. FRANKLIN TEMPLETON MUTUAL FUND.
13. GOLDMAN SACHS ASSET MANAGEMENT (INDIA) PRIVATE LIMITED
14. HDFC AMC LTD.
15. HSBC ASSET MANAGEMENT (INDIA) PVT. LTD
16. ICICI PRUDENTIAL ASSET MANAGEMENT COMPANY LTD
17. IDBI ASSET MANAGEMENT SERVICES LTD
18. IDFC ASSET MANAGEMENT CO.PVT. LTD.
19. INDIA INFOLINE ASSET MANAGEMENT CO. LTD.
20. INDIABULLS ASSET MANAGEMENET COMPANY LIMITED
21. ING MUTUAL FUND
22. J P MORGAN MUTUAL FUND
23. JM FINANCIAL ASSET MANAGEMENT LIMITED
24. KOTAK MAHINDRA AMC LTD.
25. L&T INVESTMENT MANAGEMENT LIMITED
26. LIC NOMURA MUTUAL FUND ASSET MANAGEMENT CO.LTD
27. MIRAE ASSET GLOBAL INVESTMENTS (INDIA) PVT. LTD.
28. MORGAN STANLEY INVESTMENT MANAGEMENT PVT. LTD.
29. MOTILAL OSWAL ASSET MANAGEMENT COMPANY LIMITED
30. PEERLESS FUND MANAGEMENT COMPANY LTD.
31. PINEBRIDGE INVESTMENT ASSET MANAGEMENT COMPANY PRIVATE LIMTED
32. PPFAS ASSET MANAGEMENT PVT. LTD.
33. PRAMERICA ASSET MANAGER PVT LTD
34. PRINCIPAL PNB AMC PVT. LTD.
35. QUANTUM ASSET MANAGEMENT COMPANY PRIVATE LIMITED
36. RELIANCE CAPITAL ASSET MANAGEMENT LTD.
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37. RELIGARE INVESCO ASSET MANAGEMENT COMPANY PRIVATE LIMITED

38. SAHARA ASSET MANAGEMENT COMPANY PVT. LTD
39. SBI FUNDS MANAGEMENT PVT.LTD
40. SHRIRAM MUTUAL FUND
41. SUNDARAM BNP PARIBAS AMC LTD.
42. TATA ASSET MANAGEMENT LTD.
43. TAURUS ASSET MANAGEMENT CO. LTD
44. UNION KBC ASSET MANAGEMENT CO PVT LTD
45. UTI ASSET MANAGEMENT COMPANY LTD.
1.1.8) RECOGNITIONS
Some of the awards & recognitions that we have received in past.
Year 2000:
For Outstanding Performance presented by Chairman, Prudential Plc. at London
Year 2002:
For Outstanding Performance presented by Group Chief Executive, Prudential Plc. at London
Year 2003:
For Outstanding Performance presented by Group Chief Executive, Prudential Plc. at London
Year 2004:
Among Most Valued Business Associates presented by HDFC Standard Life at Edinburgh,
Scotland
Year 2004:
For Outstanding Performance by Deputy CEO, Prudential Singapore at Malaysia
Year 2006:
Award for mobilizing the Highest Number of SIPs at National Level by Fidelity Mutual Fund Plc
at Mumbai

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Year 2006:
Award Vietnam

Year 2007
Fidelity outstanding SIP
Year 2009
Bse top performer
Year 2011
Kotak u & excellence of award
Year 2012
Bse top 3 performer
Year 2013
SREI outstanding achievement in public issue

1.1.9) SWOT ANALYSIS

STRENGHTHS
NJ India Invest is a dominant player in the Indian Mutual Funds distribution business with over a
decade of experience.
NJ can also provide personal websites to its clients.
NJ IndiaInvest has Assets Under Management (AUM) more than 950 crores.
NJ IndiaInvest has tie up with all 45 AMC
NJ IndiaInvest provides best services in the industry using cutting age of technology.

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WEAKNESES
NJ India Invest is dominant player in Mutual Fund industry but not in entire financial product
range like Insurance etc.
There are some complaints from customers side regarding irregular dispatchment of
commission.
NJ IndiaInvest, in some cases, cant convince their clients about the helpfulness of the services
provided by the company.
OPPORTUNITY
NJ IndiaInvest has great opportunities in front of it as the Mutual fund has not penetrated in the
Indian financial market.
NJ IndiaInvest can utilize the dominant position it has and optimally use the huge network of its
partners.
NJ IndiaInvest can use its network of partners in selling Insurance; even company can jump in to
share trading business
THREATS
NJ IndiaInvest is facing competition from the new entrant like Anagram Security, Karvey
Security and many new and local players. Company also faces competition from IFA who are
doing direct business in the AMC.

INTRODUCTION ABOUT MUTUAL FUND

1.2) MUTUAL FUNDS
A mutual fund is a pool of money that is invested in various securities and professionally
managed by an investment manager. The money thus collected is invested by the fund manager
in different types of securities depending upon the objectives of the scheme. These could range
from equity to debentures to money market instruments. The income earned through these
investments and the capital appreciation realized by the scheme is shared by its unit holder. Thus
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a mutual fund is the most suitable investment for the common man as it offers an opportunity to
invest in a diversified.
Mutual fund is also called unit trust or open ended trust a company that invests the funds of
its clients in diversified securities and in turn represent those holding. They make continuous
offering of new shares at NAV (Net Asset Value) determined daily by the market values of the
securities they hold.
Investor in mutual fund can reap all the benefits of good investing through good schemes
like eNJoying growth in scripts in which he had invested; holding a balanced and diversified
portfolio, better return due to specialization and proper management of funds.

DEFINITION

Mutual Fund is the pooling of Money from the retail investors to the corporate investors
for Sustainable growth of the investments

1.2.1) HISTORY OF MUTUAL FUND INDIA

The mutual fund industry in India started fin 1963 with the formation of Unit Trust Of India from
the initiative of the government of India and Reserve Bank. The history of mutual fund in India
can be broadly classified into four phases.

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First Phase (1964-1987)

UTI commenced its operations from July 1964. It was set up by the reserve Bank and
Functioned under the regulatory and administrative control of the reserve bank of India. UTI
commenced its operation from July 1964 with a view to encouraging saving and investment and
participation in the income, profits and gains accruing to the corporation from the acquisition,
holding, management and disposal of securities. The first scheme launched by the UTI was Unit
Scheme 1964. At the end of 1988 UTI had Rs. 6,700 crores of Assets Under Management.

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

The industry was having only one entity till 1987 when the UTI monopoly was broken
when SBI and Can Bank Mutual Fund entered the arena. This was followed by the entry of
others like BOI, LIC, GIC, etc sponsored by public sectors banks. Starting with an assets base of
Rs. 25 crore in 1964 the industry has grown at a compounded average growth rate of 27% to its
current size of Rs 90000 crore.
The period 1986-1993 can be termed as the period of Public Sector Mutual Funds (PSMF)
from one player in 1985 the number increased to 8 in 1993. The party did not last long. When the
private sector made it debate in 1993-94, the stock market was booming

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

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

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The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual
Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and acquisitions. As
at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores.
The Unit Trust of India with Rs.44, 541 crores of assets under management was way ahead of
other mutual funds

Fourth Phase (Since Sept.2003)

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated
into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets
under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the
assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of
Unit Trust of India, functioning under an administrator and under the rules framed by
Government of India and does not come under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered
with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the
erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of assets under
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector funds, the
mutual fund industry has entered its current phase of consolidation and growth.

Growth of Mutual Funds

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On recent count there are 45 mutual funds org. in India managing 10 lakh corers and constantly
growing at the rapid pace.

1.2.2) FACTS ABOUT MUTUAL FUND

Equity instruments like shares from only a part of securities held by Mutual Funds. Mutual Fund
also invests in debt market, which is relatively much safer.

The biggest advantage of Mutual Funds is their ability to diversify the risk.

Mutual Funds exist in India since 1963. Mutual Fund market is much evolved in India and
theyre for last 60years.
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Pooled their money with

Mutual Fund the best solutions for the people who want to manage their risk and get good
returns.

The size of Mutual Fund market in India is Rs. 10 lakh corer

US-64 is very much a part of the market and is not immune to vagaries. The crisis has arisen due
to mismanagement of funds

Passed back to
Generates

Invest in

1.2.3) MUTUAL FUND STRUCTURE

Investor

Returns

Securities

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1.2.4) STRUCTURE OF ASSET MANAGEMENT COMPANY (AMC)

SEBI

TRUSTEE

OPERATIONS

SPONSOR

AMC

FUND
MANAGER
MKT./ SALES
MUTUAL
MKT./ SALES
SCHEMES

DISTRIBUTER

INVESTORS

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The Structure Consists

The structure of mutual funds in India is governed by the SEBI Regulations, 1996. These
regulations make it mandatory for mutual funds to have a 3-tier structure of Sponsors-TrusteeAMC (Asset Management Company).
The Sponsor is the promoter of mutual fund, and appoints the Trustee. The Trustees are
responsible to the investors in the mutual funds, and appoint the AMC for managing the
investment portfolio. The AMC is the business face of the mutual funds, as it manages all the
affairs of mutual funds. The mutual funds and AMC have to be registered by the SEBI..

Sponsor
Sponsor is the person who acting alone or in combination with another body corporate
establishes a mutual fund. Sponsor must contribute atleast 40% of the net worth of the
Investment Managed and meet the eligibility criteria prescribed under the Securities and
Exchange Board of India (Mutual Funds) Regulations, 1996.The Sponsor is not responsible or
liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial
contribution made by it towards setting up of the Mutual Fund
Trust
The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian
Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act,
1908.

Trustee

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Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals).

The main responsibility of the Trustee is to safeguard the interest of the unit holders and interalias ensure that the AMC functions in the interest of investors and in accordance with the
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the
Trust Deed and the Offer Documents of the respective Schemes. At least 2/3rd directors of the
Trustee are independent directors who are not associated with the Sponsor in any manner.
Asset Management Company (AMC)
The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The
AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as
an asset management company of the Mutual Fund. At least 50% of the directors of the AMC are
independent directors who are not associated with the Sponsor in any manner. The AMC must
have a net worth of at least 10 crores at all times.

Registrar and Transfer Agent

The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to
the Mutual Fund. The Registrar processes the application form; redemption requests and
dispatches account statements to the unit holders.
Custodian
A custodian handles the investment back office of a mutual fund. Its responsibilities include
receipt and delivery of securities, collection of income, distribution of dividends, and segregation
of assets between schemes. The sponsor of a mutual fund cannot act as a custodian to the fund.
For example, Deutsche Bank is a custodian, but it cannot service Deutsche Mutual Fund, its
mutual fund arm.

Depository
Indian capital markets are moving away from having physical certificates for securities, to
ownership of these securities in dematerialized form with a Depository.

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1.2.5) TYPES OF MUTUAL FUNDS

BY DURATION:

Open-end schemes
The units offered by these schemes are available for sale (investment) and repurchase
(redemption) on any business day at NAV based prices. Hence, the unit capital of the schemes
keeps changing each day because the scheme itself buys and sells units from investors. Such
schemes thus offer very high liquidity to investors and are becoming increasingly popular in
India.
Closed end schemes
You can invest during the initial issue period and your money is locked-in for a stipulated
period (ranging from 2 to 15 years). After the initial issue, these schemes can be bought or sold
on the stock exchanges where they are listed. Sometimes, the mutual fund will buy units of
closed end funds at regular intervals.

BY INVESTMENT OBJECTIVE

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Types of Funds - By I nvestment Objective

Equity

Debt

Money Markets

Fixed Income
Funds

Equity Funds
Index Funds
Sector Funds
Balanced
Funds

Money Market
Mutual Funds
Liquid
Funds

Sector schemes
These schemes invest primarily in companies of a particular sector/industry such as
information technology, pharmaceuticals etc. Investments in these schemes are subject to more
risk, as diversification is reduced. Best suited for people willing to take high risk.
Growth schemes
These schemes invest in shares of companies. These schemes have the potential to deliver
better returns over the long term as compared to other mutual fund schemes. However, keep in
mind that greater potential for return comes with higher risk. Best suited for investors with long
term (may be 5 years and above) financial goals.

Index schemes
These schemes invest in only those stocks which are part of a particular index like BSE,
Nifty, and S&P CNX 500 etc. Hence, the returns are as good as or as bad as the underlying
index's performance. Best suited for those investors who are satisfied with the returns of an
index?
Balanced schemes
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These schemes invest in both shares and bonds. By investing a portion of their assets in bonds,
these funds receive income that can moderate the effects of price fluctuations due to stocks. But,
they might not keep pace with stock markets. Best suited for the cautious, risk averse investor
who is looking for safety but would prefer better returns than income products the ideal
investment period is 3 years and above.
ELSS (Equity Linked Savings Scheme)
Invest primarily in stocks. You can invest at any time but your investment is locked in for a
period of 3 years. You get a tax rebate of @20% under section 88 of the Income Tax Act 1961 for
investments up to Rs.10, 000 per year.

1.2.6) The Risk Return Chart

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The risk return trade-off..

Investmenthorizon

Sector funds
Growth Funds
Index,Activediversified

Balanced Funds
RatioofDebt:Equity

Debt Funds
LiquidFund

Risk

Risk
Tolerance/

Focus

Suitable Products

Benefits offered by
MFs
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Return
Expected
Low

Medium

High

Bank/ Company FD, Debt

Liquidity, Better

Partially

based Funds
Balanced Funds, Some

Post-Tax returns
Liquidity, Better

Debt,

Diversified Equity Funds and

Post-Tax returns,

Partially

some debt Funds, Mix of

Better Mgmt,

Equity

shares and Fixed Deposits

Diversification
Diversification,

Capital Market, Equity Funds

Expertise in stock

Debt

Equity

(Diversified as well as Sector) picking, Liquidity,

Tax free dividends

1.2.7) MERITS OF INVESTING IN MUTUAL FUNDS:-

Transparency

Diversification

Flexibility
Variety
Tax Benefits

Return
potential

Professional
Mgmt

Diversification
Mutual Funds invest in a number of companies across a broad cross-section of industries
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and sectors. This diversification reduces the risk because seldom do all stocks decline at the same
time and in the same proportion. You achieve this diversification through a Mutual Fund with far
less money than you can do on your own.
Professional Management
Mutual Funds provide the services of experienced and skilled professionals, backed by a
dedicated investment research team that analyses the performance and prospects of companies
and selects suitable investments to achieve the objectives of the scheme.
Convenient Administration
Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as
bad deliveries, delayed payments and follow up with brokers and companies. Mutual Funds save
your time and make investing easy and convenient.

Return Potential
Over a medium to long-term, Mutual Funds have the potential to provide a higher return as
they invest in a diversified basket of selected securities
Tax Benefits
Depending on the scheme of mutual funds, tax shelter is also available. As per the Union
Budget-99, income earned through dividends from mutual funds is 100% tax-free. Under ELSS
of open-ended equity-oriented funds an exemption is provided up to Rs. 100,000/- under section
80C.

Low Costs
Mutual Funds are a relatively less expensive way to invest compared to directly investing in
the capital markets because the benefits of scale in brokerage, custodial and other fees translate
into lower costs for investors.

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 Transparency
You get regular information on the value of your investment in addition to disclosure on the
specific investments made by your scheme, the proportion invested in each class of assets and
the fund manager's investment strategy and outlook.

Flexibility
Through features such as regular investment plans, regular withdrawal plans and dividend
reinvestment plans, you can systematically invest or withdraw funds according to your needs and
convenience.
Choices of Schemes
Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.
Affordability
Small investors with low investment fund are unable to invest in high-grade or blue chip
stocks. An investor through Mutual Funds can be benefited from a portfolio including of high
priced stock.
Liquidity
In open-ended schemes, investor can get money promptly at net asset value related prices
from the Mutual Fund itself. In close-ended schemes the units can be sold on a stock exchange at
the prevailing market price or avail of the facility of direct repurchases at NAV related prices
which some close-ended and interval schemes offer you periodically.
Well Regulated
All Mutual Funds are registered with SEBI and they function within the provisions of strict
regulations designed to protect the interests of investors. The operations of Mutual Funds are
regularly monitored by SEBI

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1.2.8) DEMERITS OF MUTUAL FUND:

The following are the disadvantages of investing through mutual fund:
No control over cost:
Since investors do not directly monitor the funds operations, they cannot control the costs
effectively. Regulators therefore usually limit the expenses of mutual funds.
No tailor-made portfolio
Mutual fund portfolios are created and marketed by AMCs, into which investors invest.
They cannot made tailor made portfolio.
Managing a portfolio of funds
As the number of funds increase, in order to tailor a portfolio for himself, an investor
may be holding portfolio funds, with the costs of monitoring them and using hem, being incurred
by him.
Delay in Redemption
The redemption of the funds though has liquidity in 24-hours to 3 days takes formal
application as well as needs time for redemption. This becomes cumbersome for the investors.
Non-availability of loans
Mutual funds are not accepted as security against loan. The investor cannot deposit the mutual
funds against taking any kind of bank loans though they may be his assets.
1.2.9) NET ASSETS VALUE (NAV)
The NAV of the fund is the collective market value of the assets fund net of its liabilities. In
simple, if the fund is dissolved or liquidated, by selling off all the assets in the fund, this is the
amount that the shareholders would collectively own. This gives rise to the concept of net asset
value per unit, which is the value, represented by the ownership of one unit in the fund. It is
calculated simply by dividing the net asset value of the fund by the number of units.
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Calculation of NAV
The most important part of the calculation is the valuation of the assets owned by the fund.
Once it is calculated, the NAV is simply the net value of assets divided by the KKBGnumber of
units outstanding. The detailed methodology for the calculation of the asset value is given below.

Asset value is equal to

NAV =

Market value of investment + Receivables + other accrued income + other

assets

Accrued Expenses +Other Payables+ Other Liabilities

No of units outstanding as at the NAV dat

1.3.0) GLOBAL SCENARIO

Some Basic Facts
Out of the top ten mutual funds worldwide, 8 are banks sponsored. Only FIEDILITY and
CAPITAL are non-bank Mutual Funds in this group
In the USA total numbers of schemes are higher than that of the listed companies while in India
we have just above 460 schemes.
In the USA every third household is a Mutual Fund investor.
In USA Mutual Fund assets are almost 1.5 times the bank deposits. In India though, Bank
deposits are about 10.5 times the Mutual Fund assets.

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 In the USA about 12 million Households will manage their assets online by the year 2006 such a
facility isnt yet of avail in India
Online trading is a great idea to reduce management expenses from the current 2% of total assets
to above .75% of the total assets
80% of the core customer bases of Mutual Funds in the top 50-broking firms in the USA are
expected to trade online by 2006.
Internationally, online investing continues its meteoric rise. Many have debated about the success
of E-commerce and its breakthroughs, but it is true that these aspects of technology could and
will change the way financial sectors function. However Mutual Funds cannot be left behind.
They have realized the potential of the Internet and are equipping themselves to perform better.
In fact in advanced countries like the USA Mutual Funds buy and sell transactions have already
begun on the net, while in India the net is used a source of information.
Such changes could facilitate easy access, lower intermediation costs and better services for all.
A research agency that specializes in Internet technology estimate that over the next four years
Mutual Fund assets traded online will grow ten folds from $128 billion to $1227 billion; whereas
equity assets traded online will increase during the period from $246 billion to $1561 billion.
This will increase the share of Mutual Funds from 34% to40% during the period.
Such increase in volumes is expected to bring about large changes in the way Mutual Funds
conducts their business.

Here are some of the basic changes that have taken place since the advent of the net.
29 | P a g e

 Lower Costs:
Distribution of funds will fall in the online trading regime by 2003. Mutual funds could be
down their administrative costs to .75% if trading is done on Internet. As per SEBI regulations,
bond funds can change a maximum of 2.25% and equity fund can change 2.5% as administrative
fees. Therefore if the administrative costs are low, the benefits are passed down and hence
mutual funds are able to attract mire investors and increase their assets base.
Better Advice:
Mutual funds could provide better advice to their investors through the net rather than through
the traditional investment routes where there is an additional channel to deal with the brokers.
Direct dealing with fund could help the investors with their financial planning.
New investors would prefer online: mutual funds can target investors who are young individual
and who are net savvy, since servicing them would be easier on the net.
Indian has around 1.6 million net user who are prime target for these funds and this could just be
the beginning. The Internet users are going to increase dramatically and mutual funds are going
to the best beneficiary. With smaller administrative costs more funds would be mobilized a fund
manager must be ready to tackle the volatility and will have to maintain sufficient amount of
investment, which are high liquidity, and low yielding investments to honor redemption.
Net based advertisements:
There will be more sites involved in ads and promotions of mutual funds. In the U S sites like
AOL offer detailed research and financial about the functioning of different funds and their
performance statistics is witnessing a genesis in this area.

1.3.1) FUTURE SCENARIO

30 | P a g e

 The asset base will continue to grow at an annual rate of about 30-35% over the next few years
as investors shift their assets from banks and other traditional avenues. Some of the older public
and private sector players will either close shop or be taken over.
Out of ten Public sector players five will sell out, close down or merge with stronger players in
three to four years. In the Private sectors this trend already started with two mergers and one
takeover. Here too some of them will down their shutters in the near future to come.
But this does not mean there is no room for there players. The market will witness a flurry of
new players entering the arena. There will be a large no offers from various asset management
companies in the time to come. Some big name like Fidelity, Principal etc. are looking at Indian
market seriously. One important reason for it is that most major players already have presence
here and hence these big names would hardly like to get left behind.
In the U.S. most mutual fund concentrate only on financial funds like equity and debt. Some like
real estate funds and commodity funds also take an exposure to physical assets. The latter type of
funds is preferred by the Corporate who want to hedge their exposure to the commodities they
deal with. For instance, a cable manufacturer who needs 100 tones of Copper in the month of
January could buy an equivalent amount of copper by investing in a copper fund. For Example,
Permanent Portfolio Fund, a conservative U.S. based fund invests in a fixed percentage of its
corpus in gold, silver specific stock on various bourses around the world, short-term and long
term U.S. treasuries etc.
In USA apart from bullion funds there are Copper funds, Precious metal funds and Real Estate
funds.
In developed countries like the USA there are funds to satisfy everybodys requirement, but in
India the tip of iceberg has been explored. In the near future India too will concentrate on
financial as well as physical funds.

Chapter: 2
31 | P a g e

Research methodology

2.1) Research Problem:

The firm will come to know about the money invested in mutual funds, by this it can plan
accordingly. This survey will also measure the awareness of mutual funds; the firm can expand
their Fundz Partners base by that. The firm can increase their turnover by knowing the moneyinvested mutual fund. So I have conducted a research titled as Awareness about Mutual Fund
among the Financial Advisors of Surat.

2.1.1) Research Objective:

Primary Objective:
To study the awareness about Mutual Fund among Financial Advisors i.e. insurance agents in
Surat city
Secondary Objective:
To study the awareness of different type of mutual fund among financial advisor
To study the awareness of revenue/commissions in mutual fund for financial advisor
To study the reasons of advising mutual fund scheme by financial advisor
To find whom do financial advisor prefer to sell mutual fund
To find how many are interested to start mutual fund business

2.1.2) Research Design:

I had used the Descriptive Research Design for the purpose of survey as it hadl enable me to
describe the characteristics of a particular group of financial advisors and their tendency towards
Mutual Funds.

32 | P a g e

2.1.3) Source of data

There are mainly two sources for collection of data is used that is primary as well as secondary
sources.
Primary Source Information

Method of obtaining data: Questionnaire

Secondary Source Information
Internal: Companies internal information or database
External: Books, Magazine, journals.

2.1.4) Sampling Method:

I had used the method of stratified random sampling for data collection purpose.

2.1.5) Sample Size:

It had used 100 Financial Advisors (insurance agent) of Surat city to have better idea and
representative of the population being surveyed.

2.1.6) Research Instrument:

A detailed questionnaire shall be used for purpose of survey

2.1.7) Data analysis tool:

Since it is better to greater validity of the results found it is better to use the statistical software
using computers i.e. SPSS
33 | P a g e

2.1.8) Limitation of the study

Every research has its own limitation and present research work is no exception to this general
rule the inherent limitation of the study are as under.

Personal approach, which was followed in the present research work, is relatively more time
consuming. In addition to this is a very expensive method, specially when spread geographically
sample is taken

We have address of so many people but because of their personal work we cant meet.

It is very time consuming process Few agents refused to give answers.

CHAPTER 3
ORGANIZATION STRUCTURE AND DESCRIPTION

34 | P a g e

3.1) DEPARTMENTAL STRUCTURE

Managing Directors
Jt. Mr. Neeraj Choksi
Jt. Mr. Jignesh Desai

Vice President

Sales
Dept.

Technology
Dept.

Human
resource
Dept.

Senior
Officers

Senior
Officers

Junior
Officers

Junior
Officers

Account
Dept.

Senior
Officers

Junior
Officers

DEPARTMENTAL STUDY:
35 | P a g e

Human research department

Marketing department

Finance department
3.1.1) HUMAN RESEARCH DEPARTMENT

EMPLOYEES REGISTTER:
NJ FUNDZ India invest is using the register system for recording the company and also
the time when he or she leaves the company.
One worker of HR department went to the every department and other employees were
written down their time on which they come on the job and also the leaving time of the company
with their own signature.
This method use to maintain records of the employees Daily schedule in the company by
the HR department.
NJ FUNDZ is using simple method of keeping record of the employees time and this
system is using by the NJ FUNDZ from last many years and there didnt any problem create in
NJ FUNDZ related to employees register system. Employees register system of the NJ FUNDZ
is working softly.
RECRUITMENT PROCESS:
Here, I observed the Recruitment Cycle starts with either of following in
Receipt by HR Dept. of the recruitment Approval clearly defining the job profile (job
description, responsibilities, designation ,proposed grade ,reporting level, location of posting)and
personal profile (age, qualification, experience, etc.) duly approved by the HR Manager of NJ
FUNDZ

General Recruitment:
The process to be followed in the case of general recruitment is systematically represented
below.

36 | P a g e

Based on the information available in recruitment from and after discussions with
department/division head of MARKTING FINECE, IT. HR if necessary, the HR manger will
created a companys notice board, bulletin board and recruitment portals as will as handed over
to selected placement agencies.

After displayed of recruitment profile by the different sources many application received from
different sources would be screened by the HR Mangers assistance that will shortly candidates
whose profile matches with the desired profile. A preliminary interview of the short listed
candidates will be carried out by the Manger to ensure the validity of the details given in the
CV Apart from the necessary qualification and experience, the HR Manager shall look for
stability of candidate in previous job, involvement in industry forum-curricular actives, etc.
The CVs of the candidates short-listed by the HR Managers team shall be sent to the
department/divisional head for vetting. The final list of candidates to call for the interview shall
be decided after the department manager has vetted the applications. HR Manager shall call the
short listed candidates for the interview on a convenient date
Internal Application:
Depending on the grade, the internal application will have to be sent to the regional HR dep. or
The Corporate HR. The internal candidates shall go through the same interview process as given
above. Applicants will the employees of NJ FUNDZ whose past professional record was good in
company. Those employees cvs can take for the internal application for the recruitment HR
department

Campus Recruitment:
NJ FUNDZ Is follows the campus recruitment for completion of vacancies. The process to
follow in the case campus recruitment is schematically represented below. Fresh graduates will
37 | P a g e

be recruited from Campus as Manager Trainees (MT),Graduate Engineer Trainees (GET)or

Diploma Engineer Trainees(DET),CA passed students.
For the campus recruitment, HR manager will some colleges near the company and city. After
completion of criteria to select the college for the campus recruitment will send one team consist
of 3 or 4 members. Team members will be department head, Assistance of HR manager and
other.
The Recruitment season begins in the month of October for Management Schools and
polytechnic institutes. Recruitment of Graduate engineer trainees from engineering colleges
normally continues throughout the academic year. The campus recruitment shall be co-ordinate
by the corporate HR.
Based on the recruitment specified by the Corporate HR will contact selected Management
schools, Engineering colleges, Polytechnic institutes, ICAI(from the attached list) for preplacement talks(PPT). A Standard Corporate Presentation has been designed which should be
used for the pre-placement talks to be held at the campus.
During the PPT, the Corporate HR Manager will indicate the details of the vacancies available,
responsibilities associated with it, remuneration, career path of the candidate, etc. Corporate HR
shall Co-ordinate with the placement section of the Management Schools for CVs of the
interested students.
Corporate HR Shall also Contact the Placement section of the Engineering College and
Polytechnics requesting for Profile of interested students.

SELECTION PROCESS:
NJ FUNDZ is following some specific steps for the final selection process

38 | P a g e

 The HR manager of branch will communicate the name of the short listed candidates to the
college authorities so that they can call for the final selection process.
The applicants will first be put through the group discussion. The idea of the group discussion is
to ascertain the general knowledge, oral communication skills, thinks ability, assertiveness etc.
Each member of the interview panel shall independently rate the candidates during the GD.
For MBA, MCA, CA, Engineering short listed candidates will be put through a interview s and
professional test. All candidates will also give a general aptitude test and a written
communication test. They will also undergo a psychometric test for understanding the
personality profile of the candidates. A Further shortlist shall be prepared based on the results of
the professional test aptitude test and psychometric test
The interview panel will be checking the background of the candidates who are select final
interview. if students may select for the final interview ,interview panel will contact to the
college for the students background checking. If candidates who have already done job at other
company, interview panel will check his or her background by reference which mentioned by the
candidates in its profile.
After passed all the criteria of interview process by the candidates interview panel will provide
that date to the HR manger .Evaluating the all the candidates bases on their qualifications and
performance in interview and work experience ,HR manger will take the decision to hiring the
candidates. They will send the appointment letter to candidates who many accept all the terms
and conditions of company and also the salary packages.
The candidates who will be join the company on the specific which mentioned in appointment
letter. Company will issue confirmation letter to the new employee after the 6 months of its
joining to the company on its performance on job, behavior in organization and other criteria.
PERFORMANCE APPRISAL :
According to the performance appraisal of employees with department wise, NJ FUNDAZ is
following simple method for it At every department head will record the data of employees
39 | P a g e

performance from 1 to 2 years of time of employee in company , performance appraisal will by

conducted by the every department

Department head will be discuss with HR manger of

Branch/ regional/zonal about the

performance of the employee. They will compare the past performance of employee on the
criteria of his/her improvement in working skills behavior, qualifications and other things.
After completion of evolution of the employees performance departmental head will provide
this information to the HR manger Departmental head will also discuss with the employee who
may be poor in his/her field performance and try to find out the reasons for poor performance of
the employees.
Performance appraisal process at NJ FUNDZ is showing positive result in term of impotent in
employees working skills, qualities. Performance appraisal process is also help to HR department
to go promotion work. Data which available after the performance appraisal process through
easily can evaluate the efficient employee for promotion.

TRAINING AND DEVELOPMENT:

NJ FUNDZ Is different because it has its own training and development institute. The name of
that institute is NJ FUNDZ GURUKUL. Education is a source of knowledge and knowledge
40 | P a g e

is the source of power and success in todays world. Indeed, the right education and training is
critical for success in all of life.
So NJ FUNDZ Gurukul emerged as an idea to bridge the gap that existed in meeting the needs
of financial advisors for continued training and education. The objective of NJ FUNDZ Gurukul
was to create a huge force of quality financial advisors who have the right training and education
needed for providing the right advisors services to clients and thus help them in creating are
taught in NJ FUNDZ Gurukal for the employees and financial advisors of NJ FUNDZ .
WELFARE ACTVITIES :
NJ FUNDZ is genuinely concerned with welfare of its employees and partners. NJ FUNDZ
provides some world class facilities for the employees I observed that NJ FUNDZ shows its duty
for the welfareness of employees. NJ FUNDZ considers the Welfare activities of company will
create the image of company in the market pressure on the competitors.
AT NJ FUNDZ corporate office, I observed that some good facilities are providing for the
NJ FUNDZ. Those Facilities are likes.
Auditorium:
Well integrated and decorated auditorium for the meeting and presentations and also for the
functions which may be for employees.
NJ FUNDZ LIBRARY:
NJ FUNDZ library is one of the knowledge center for the employees and financial advisors
who want to acquire more know knowledge and awareness about their of magazines,
newspapers, literature review, articles novels, autobiographies, book of different subjects which
are related to the departments knowledge. NJ FUNDZ has its own magazines likes Fundz
Watch , Sathi, Performance Watch.
Board room
Board room is specially for the board of directors, executives, managers for their special
meetings and planning activities and also to discuss serious issues related to the company.

41 | P a g e

Cybercaf
Internet is one of the god gifted thing for the human beings. In few second you can find out any
thing which need to you. NJ FUNDZ has also known the important of internet NJ FUNDZ has
set special cybercaf for the employees to make them the worlds changed.
Canteen:
Canteen facility also available at the NJ FUNDZ. Incan teen, at the reasonable charges take by
NJ FUNDZ And provide nutritious food and others food Items for the employees.
Healthiness Centre (Gym):
NJ FUNDZ is also conscious with the health of its employees so it has opened the wealthness
center (Gym) for the employees.

3.1.2) MARKETING DEPARTMENT

DEPARTMENTAL STRUCTURE
NAME
Mr. Misbah Baxamusa
Mr. Manish Gadhvi

POSITION
sales head
zonal manager

Mr.Prashant Kakkad

zonal manger

Mr.Sarfaras Patel

zonal manger

Mr.Tushar bhajantri

zonal manager
42 | P a g e

Mr.Vinay baraiya

zonal manager

Sales chart
Managing Directors

National sales head

Zonal manager

Regional manager

Branch manager

Unit manager

NJ FUNDZ PRODUCTS PROFILE:

Mutual Fund
Reality
Insurance
Company Fixed Deposits
Portfolio Management Service (PMS)

43 | P a g e

Mutual FUND:
As you probably know, Mutual Funds in India is gaining ground & have become a extremely
popular investment option. The fund industry has witnessed healthy growth in last five years.
Mutual fund is nothing but a common pool of saving created by a number of investors and is an
ideal investment product for an individual investors.
Different investor with common investment objective investment objective contributes to create
a common pool of money and this money is then invested by manager according to the objective
of the scheme. There are numerous benefits of investing in mutual funds and one of the key
reasons for its phenomenal success in India is the range of benefits they offer, which are
unmatched by most other investment avenue.
Realty:
From India a new India the world as we know is in metamorphosis stage today. The Indian
economy is steadily moving forward on its path to prosperity with economic development being
the focal point of the progress and development in the Real Estate symbolizes this changing face
of India. At NJ FUNDZ India realty, we understand the challenges in shaping realty from your
realty aspiration

INSUARNCE:
NJ FUNDZ deals in two types of insurance

Life Insurance

Health insurance
Company Fixed Deposit:

44 | P a g e

 Company fixed deposit is a fixed deposit scheme offered by company. It works similar to a bank
deposit where you earn interest income. Company FDs offer much higher returns than bank FDs,
since they entail higher the risk the higher is the interest rate offered.
Portfolio Management Service (PMS):
The desire to grow money is a natural instinct. But as simple as the desire is the process to do so
is just as complex. At NJ FUNDZ we believe that growing and protecting your wealth is an art.
Just as art is the culmination of talent and experience in an artist, so also growing money depends
on the natural instinct and experience of a financial manager. At NJ FUNDZ our financial
managers use their combined talents and experience to build up your portfolio of investment with
an endeavor to bring out the best in it.
NJ FUND SERVICES:
NJ FUNDZ Wealth Account:
Managing wealth is not easy, especially with the ever growing needs and products. In this fast
paced world, there is a need for simplicity and consolidation. The need is to ahead, stay informed
and stay in control. NJ FUNDZ Wealth Account offers you a Comprehensive, flexible account
which consolidates all your portfolio information in a single window in a simple lucid manner. It
keeps you informed of your finance and puts you in control to take smart investment decisions.

Key Features of Wealth Account

Online Access
Now you can store all your portfolio, transaction information in multiple products through NJ
FUNDZ Wealth account and get access anytime

Meaningful Portfolio Reports

45 | P a g e

It enables you to accede insightful reports that you need to know about your portfolio and take
informed investment decisions.

Flexible Consolidation Facility

It is a great feature which literally takes consolidation to the next level and allows you to

Consolidate multiple accounts and view your entire family portfolio on a single desk with the
help of consolidated reports

Have a single view of all your transaction through multiple advisor

3.1.3) FINANCE DEPARTMENT
FINANCIAL OBJECTIVE
Financial objectives of NJ INDIA INVEST is to create the wealth of its investors and partners.
Creating the stable position in financial market. Ultimate objectives is to increase maximum
wealth of partners and company.
Finance department is divided in two divisions in NJ INDIA INVEST.
(1) Operation Division
(2) Account Division

(1) Operation Division:

Operation Process:
Operation division is one sub-department of finance department at NJ INDIA INVEST. All the
transaction which are basically in terms of filling of application and submission of applications,
data feeding of applications in software, these all are the activities of the operation division.
Partners who send applications of mutual funds to operation division will undergo through
46 | P a g e

different process. Operation division is working through its special developed software. FUNDZ
TRAX is software which use by the operation division for completion of operation process. This
software has many functions. All the operation process work through this software. Operation
process divided in some steps.
Operation Process Phase:
Application Reconciliation
Data feeding
Scanning
Data Store
Application Reconciliation Phase:
Mutual fund advisor will send the applications of mutual funds to the operation division. First
phase of the operation division would start with application reconciliation work. All documents
with application would check and also the KYC norms. After the reconciliation of applications
the rejected application will put aside and correct applications will ready for the next phase of
operation division. Rejected applications have many reasons like ARN code will not correct,
application will not fill properly. These rejected applications will send to partner. Partners will
make correction in application and return send to the operation division.

Data Feeding Phase:

Raw data will ready through the first phase and that data entered in to the software that work
called data feeding. Fundz Trax software has performing many functions. This one software will
fulfill all requirements of data feeding phase. Fundz Trax software have many functions like:
Purchase Transactions
SIP (Systematic Investment Plan)
Switch
47 | P a g e

Redemption
STP (Systematic Transfer Plan)
SWP (Systematic Withdrawal Plan)
ARN change
NFO-Transaction
Scanning Phase:
After completion of data feeding work, data operator have another work to scanning all
documents and applications. In this phase, all the documents which attached with application
scanned in scan machine. Documents like KYC documents, cheques, application form. Scanning
phase is very important in operation division because it is one proof for operation division. If
investors or partners may be claimed for their proof of documents then company has record of
scanned documents. They can be counter claim against investor or partners and sent them
documents copy. Scanning phase is specially for the company security and also for the record of
the documents.
Data Store Phase:
Data operator who did the work of scanning the documents then that scanning system directly
connected with data ware house of NJ. All that data which scanned and inputed in the software
would directly store in warehouse. All that data which stored in data warehouse will make data
mining. After data mining process the data will divided in category like broker wise, investors
wise, partner wise, AMC wise.

Report Generation:
Data store phase will complete and investors, partners, brokers can get report from operation
division. This is last phase of operation division.
(2) Account Division:
BUDGETING:
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Above diagram shows that NJ Fundzs follow functional budgeting method for plan any budget.
First, departmental head will make the budget according to their requirement for any project.
They will send their budget to the finance department. Budget will analysis by finance manager
and new budget will make by finance department and compare it with that budget which made
by the department.
Budgeting
Functional Level
Expenses Level
Monitoring
Comparison With Actual
Corrective Action
Deduction Penalties
Correction Of Budget
Before final approval of budget, all necessary correction will make by finance department. If
budget proposal may be huge amount then Jt. Managing directors and other members of board
will make analysis. After analysis, budget proposal will be approve. Budgeting is done at each
and every functional level. Marketing, Finance, Human Resource. At NJ Fundz, all budgets are
short term.
WORKING CAPITAL:
NJ Fundzs finance department use very simple concept for managing working this
capital management. Companys main capital is brokerage.

Company receiving brokerage

through AMCs. NJ Fundz works for particular AMCs. AMCs have decided some margin for the
company. Company earning its brokerage through its transactions of mutual funds. Distribution
of brokerage divided in different phase. First, brokerage given

to mutual funds advisors

(partners). Then investors of NJ Fundz will get the brokerage. After distribution of brokerage to
all partners and
Mutual Fund
Brokerage
Distribution of NJ India Invest
Sub-Brokers
49 | P a g e

Investors
Working Capital Margin
investors, remaining amount will be consider real brokerage of the company. All expenses, taxes
will pay through net brokerage. After this cut all expenses, remaining amount will net brokerage
of NJ Fundz.
CASH MANAGEMENT:
The above diagram shows the flow of money taking place at NJ INDIA INVEST. The
money flow through two channels:-Receipts and Payments NJ fundz receives the cash
through margin (brokerage) from AMCs transactions and sales of SIP. Every month, company
received fixed amount of brokerage through AMCs. This is cash inflow for NJ Fundz. Company
distributes cash to the partners as brokerage. Monthly expenses and brokerage of company is like
current liabilities for the
Cash Flow
Receipts
Monthly Brokerage
Payment
Monthly Brokerage
Monthly Expenses
Salary, Rent, Travelling
Exp., Meeting Exp., Office
Exp. Taxes, Others

PROFIT AND LOSS STATEMENT:

Huge expenses and revenue from brokerage are come under the profit and loss
statement of NJ Fundz.
Finance department has set a limit amount of expenses for every department. Head of
departments follows that limit and they tried to control their department expenses. Office exp,
salary exp, administration exp, maintenance exp, electricity exp, other exp of every department is
considered as loss.
50 | P a g e

All departments send one copy of their departments annual expenses to finance department.
Executives of finance department making cross checking of every department expenses. If
expenses may more than set standard then finance department will suggest eliminating the
unnecessary activities to reduce the expense of department.
Brokerages which generate from AMCs are only way of income for the company. After
diminishing the expenses from income, company got net profit. From last many years company
is continuously obtaining profit in business.
BALANCE SHEET:
The balance sheet comprises of a list of assets, liabilities and capital at a given date. It is
static in character because it tells about the financial position of a business as on a certain date.
NJ Fundz considering AMCs as debtors in balance sheet. Mutual fund advisors are as creditors
of the company. company has not any banks long term liabilities.

CHAPTER: 4
DATA ANALYSIS AND INTERPRETATION

51 | P a g e

4.1) Being an insurance agent how many year of experience you are having?
Cumulative
Valid

Frequency

Percent

Valid Percent

Percent

<1 year

25

25.0

25.0

25.0

1 to 3 year

20

20.0

20.0

45.0

3 to 5 year

10

10.0

10.0

55.0

>5 year

45

45.0

45.0

100.0

Total

100

100.0

100.0

Experience
Series 1
45

25

20
10

< 1year

1 to 3 year

3 to 5 year

> 5year

Interpretation:
In the above Chart we can see that 45% of the total respondents are having experience of more
than 5 years, 25% of the total respondents are having experience of less than 1 years, 20% of the
total respondents are having experience of more than 1 to 3 years and 10% are having 3 to 5
year experience.

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4.2) Are you in business of mutual fund?

Cumulative
Valid

Frequency

Percent

Valid Percent

Percent

yes

59

59.0

59.6

59.6

no

40

40.0

40.4

100.0

99
1
100

99.0
1.0
100.0

100.0

Total
Missing
System
Total

Frequency
yes

no

40%
60%

Interpretation:
In the above Pie Chart there is 59(60%) advisors are aware about the Mutual Fund and from
them 58(49%) are in Mutual Fund business and 40(40%) are not selling Mutual Funds

53 | P a g e

4.3) if no would you like to start business in mutual fund?

Valid

Missing
Total

Frequency

Percent

Valid Percent

Cumulative Percent

yes

10

10.0

25.0

25.0

no

30

30.0

75.0

100.0

Total
System

40
60
100

40.0
60.0
100.0

100.0

25%

yes

no

75%

Interpretation:
In the above Pie Chart we can see that from 40 advisors, who are not in the business of the
Mutual Fund from them 10 wants to start selling the Mutual Fund and 30 are not interested in
Mutual Fund Business.

54 | P a g e

4.4) if yes since how long you are selling mf?

Cumulative
Valid

Missing
Total

Frequency

Percent

Valid Percent

Percent

<1 year

11

11.0

19.3

19.3

1 to 3 year

23

23.0

40.4

59.6

3 to 5 year

6.0

10.5

70.2

>5 year

17

17.0

29.8

100.0

Total
System

57
43
100

57.0
43.0
100.0

100.0

40%

30%

19%

11%

<1 year

1 to 3 year

3 to 5 year

>5 year

Intrepretation:
In the above Pie Chart 23(40%) advisors are having experience of 1 to 3 years, 17(30%) are
having experience of more than 5 year years, 11(19%) are having less than 1 year experience
and 6(11%) are having experience of 3 to 5 year.

55 | P a g e

4.5) Do you know the different type of mf?

Valid

Missing

Frequency

Percent

Valid Percent

Cumulative Percent

yes

58

58.0

59.2

59.2

no

40

40.0

40.8

100.0

Total
System
Total

98
2

98.0
2.0

100.0

100

100.0

yes

no

41%
59%

Intrepretation:
From above pie chart we can see that from the responded more people know about different type
of mutual fund that is 59% people know about mutual fund. While 41% people did not know
about different type of mutual fund
4.6) DO you know the revenue/commission in mf for financial advisor?

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Valid

Missing
Total

Frequency

Percent

Valid Percent

Cumulative Percent

yes

57

57.0

58.2

58.2

no

41

41.0

41.8

100.0

Total
System

98
2
100

98.0
2.0
100.0

100.0

yes

no

42%
58%

Interpretation:
From above pie chart we can see that from the responded more people know about
revenue/commission for financial advisor that is 58% people know about mutual fund. While
42% people did not know about revenue/commission for financial advisor

4.7) you sell mf to your existing client

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Case Summary

Cases
Valid
N
$sell

Missing
Percent

57

57.0%

Total

Percent
43

43.0%

Percent
100

100.0%

a. Dichotomy group tabulated at value 1.

Responses

Total

Percent

Percent of Cases

friend

42

29.6%

73.7%

collageous

19

13.4%

33.3%

neighbor

20

14.1%

35.1%

staff

27

19.0%

47.4%

relative

30

21.1%

52.6%

other

4
142

2.8%
100.0%

7.0%
249.1%

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29.60%

21.10%
19.00%

13.40%

14.10%

2.80%

FRIENDS

COLLEAGUES

NEIGHBORS

STAFF

RELATIVE

OTHER

Interpretation:
There were 57 respondents who were already working as a mutual fund advisor according to
them they sell mutual fund schemes to multiple clients. From that mainly they sell to
friends (73.7%) ,relative(52.6%),staff(47.4%),neighbor(35.3%),collegeous(33.1%),other(7.1%)
other mainly include businessman reference.

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4.8) Do you also cross-sell mf to your existing client of

Case Summary

Cases
Valid
$cross_sella

Missing

Total

Percent

Percent

Percent

57

57.0%

43

43.0%

100

100.0%

a. Dichotomy group tabulated at value 1.

Responses

Total

Percent

Percent of Cases

insurance

57

41.9%

100.0%

post

10

7.4%

17.5%

fix deposit

16

11.8%

28.1%

loan

18

13.2%

31.6%

equity

32

23.5%

56.1%

other

3
136

2.2%
100.0%

5.3%
238.6%

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41.90%

23.50%

11.80%

13.20%

7.40%

insurance

2.20%
post

fix deposit

loans

equty

other

Interpretation:
There were 57 respondents who were already working as a mutual fund advisor according to
them cross-sell mutual fund schemes to multiple clients. From that all cross-sell the schemes to
insurance client (100%).other than that they also cross-sell to equity(56.1%),loan(31.6%)
,fixdeposit(28.1%),post(17.5%),other(5.3%)

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4.9) As per your knowledge generally investor invest in which of the following mutual fund
Frequency

Percent

Valid Percent

Cumulative Percent

equity

21

21.0

36.8

36.8

balanced

5.0

8.8

45.6

debt

7.0

12.3

57.9

liquidity

24

24.0

42.1

100.0

Total
System

57
43
100

57.0
43.0
100.0

100.0

Valid

Missing
Total

42%

37%

9%
equity

balanced

12%
debt

liquidty

0%
other

Interpretation:
There were 57 respondents who were already working as a mutual fund advisor according to
them generally investor invests in liquidity(42.1%),equity(36.8%),debt(12.3%),balanced(8.8%).

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4.10) while selling mf do you recommend mf investment your client for tax purpose

Valid

Missing

Frequency

Percent

Valid Percent

Cumulative Percent

yes

56

56.0

98.2

98.2

no

1.0

1.8

100.0

Total
System

57
43
100

57.0
43.0
100.0

100.0

Total

YES

NO

2%

98%

Interpretation:
There were 57 respondents who were already working as a mutual fund advisor according to
them while selling 56 advisor recommend mf investment client for tax purpose. While 1 said no
he did not recommend

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4.11) what are the likely reason for suggesting particular mutual fund scheme to your client
for investment?
Cumulative
Frequency

Percent

Valid Percent

Percent

knowledge about scheme

11

11.0

19.3

19.3

accessibility

3.0

5.3

24.6

brand strength

5.0

8.8

33.3

superior return

38

38.0

66.7

100.0

Total
System
Total

57
43
100

57.0
43.0
100.0

100.0

Valid

Missing

67%

19%
5%

9%

0%

Interpretation:
There were 57 respondents who were already working as a mutual fund advisor according to
them reason for suggesting mutual fund scheme is mainly depend on superior return (66.7%) ,
knowledge about scheme(19.3%),brand strength(8.8%),accessibility(5.3%).

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4.12)Age
Cumulative
Valid

Frequency

Percent

Valid Percent

Percent

21 to 30 year

37

37.0

38.1

38.1

31 to 40 year

38

38.0

39.2

77.3

41 to 50 year

19

19.0

19.6

96.9

>50 year

3.0

3.1

100.0

Total
System
Total

97
3
100

97.0
3.0
100.0

100.0

Missing

37%

38%

19%
3%
21 to 30 year

31 to 40 year

41 to 50 year

>50 year

Interpretation:
In above bar chart from 97 respondent 38 were (31 to 40 year old) 37 were (21 to 30 year old)
19 were (41 to 50 year old) and 3 were (more than 50 year old).

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4.13)Gender

Frequency

Percent

Valid Percent

Cumulative Percent

male

79

79.0

81.4

81.4

female

18

18.0

18.6

100.0

Total
System

97
3
100

97.0
3.0
100.0

100.0

Valid

Missing
Total

male

female

24%

76%

Interpretation:
In above bar chart from 97 respondent 79 were male. And remaining 18 were female

Chapter:-5
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Findings and Recommendations

5.1) Finding
Most of the respondent have more than 5 year of experience as a insurance agent
Majority of the financial advisors are aware about Mutual Funds and out of them are doing
Mutual Fund business. Out of the rest of advisors who are not in the business of Mutual Fund
25% of them wants to start Mutual Fund Business..
The respondent who are already working as mutual fund advisor from them most of them have
experience of 1 to 3 years
The respondents working as a mutual fund advisor know all the different types of mutual fund.
And revenue/commission in mutual fund as a financial advisor
The respondent who do not work as mutual fund advisor did not aware about types of mutual
fund or revenue/commission for financial advisor
Majority of the Mutual Fund advisors are selling Mutual Fund to their Friends and relative
members.
Most of the Mutual Fund advisors Cross sell the Mutual Fund to their Insurance clients.
98% Mutual Fund advisors recommend Mutual Fund Investment for Tax Saving purpose.
According to Financial advisors majority of the clients are preferred liquidity and equity of
Mutual Fund.
Superior Return and Knowledge of Schemes are the reasons for selecting any Mutual Funds
Schemes.

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5.2) RECOMMENDATION
To Company

NJ need to make good marketing plan for increase the awareness of mutual fund among
insurance agents in Surat.
It needs to make a clear picture about earning off mutual Fund advisors like revenue/commission

To Advisors
Mutual Fund is more beneficial than other investment avenues for investors. They need to
realize this to the clients and increase their AUM as well as Investment Basket.

68 | P a g e

CHAPTER 6
CONCLUSION

The Indian mutual fund industry is beginning to blossom and with the recent relaxations it is
evident that the industry will rise to the international standard. India as a country holds great
potential and the rise in income and savings levels signify the tremendous growth opportunity
that lies ahead. The very presence of most significant international player in India demonstrates
that they cannot afford to ignore the Indian market if they want to maintain their positions
internationally. Also, Indian market has provided to be a good investment destination, which has
attracted foreign players to invest in Indian securities. Relaxation in exchange controls and
consultative approach to formation of regulatory framework has given several international
mutual fund players a comfort in the Indian economy, which is driving their desire to set-up
operations in India. Indian mutual fund industry can look forward to exciting times ahead and the
current consolidation phase will result in only the serious players a long term commitment to
India exist.
MF is good investment tool because of several benefits
Schemes Preferred by People are Equity, Balanced, Debt, Liquid, Money Market Mutual Fund
Reasons for MF schemes selection. Superior Return, Knowledge about schemes, Brand Strength,
Accessibility.
The recent reforms and globalization process have offered tremendous opportunities to Indian
mutual funds. In a global capital market environment, Indian Mutual Funds industry can emerge
as one of strongest players by absorbing investment technology and modified managerial
practices in the regional context, while thinking and acting with a global vision.

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Chapter:-7
BIBLIOGRAPHY
7.1) BOOKS

D.C. ANJaria, AMFI Mutual Fund Testing Program for Distributors and Employees of Mutual
Fund in India, Third Edition, May 2006.

Donald R. Cooper and Pamela S. Schindler, Business Research Methods, 8 th Edition, Tata
McGraw-Hill Publishing Co. Ltd.
AMFI Test Work Book
Monthly Magazines like
Performance Watch,
Saathi,
Fundz Watch of NJ
NISM

7.2) Websites:
www.mutualfundindia.com
www.moneycontrol.com
www.amfiindia.com
www.sebi.com

www.NJfundz.com
http://www.NJgroup.in/index.php

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 http://www.cvlindia.com/listofamc01.html

CHAPTER 8
Annexure
Questionnaire
I am Akhil nair, a student of MBA studying at D.B.I.M. Surat. I have prepared this questionnaire
for the project work on Awareness about Mutual Fund among the Financial Advisors of
Surat.It is meant for educational purpose only. I ensure you to maintain highest degree of
confidentiality
1. Being an insurance agent, how many years of experience you are having?
o Less than 1 year
o 1 year to 3 year
o 3 year to 5 years
o More than 5 year
2. Are you in business of mutual fund (MF)? (If yes then go to que - 4)
o Yes
o No
3. If no, would you like to start business in MFs?
o Yes
o No
4.
o
o
o
o

If yes, since how long you are selling MFs?

Less than 1 year
1 year to 3 years
3 years to 5 years
More than 5 years.

5. Do you know the different type of MF?

o Yes
o No
6. Do you know the revenue/commissions in MF for financial advisor?
o Yes
o No
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7.
o
o
o
o
o
o

You sell MFS to your existing clients .(tick mark as applicable)

Friends
Colleagues
Neighbors
Staff
Relatives
Others Specify ________

8.
o
o
o
o
o
o

Do you also cross-sell MF to your existing clients of.(tick mark as applicable)

Insurance
Post
Fix deposit
Loans
equity
Others Specify_________

9.
o
o
o
o
o

As per your knowledge, generally investors invest in which of the following MF products?
Equity
Balanced
Debt
Liquidity
Other Specify _____________

10. While selling MF, do you recommend MF investment your clients for tax purpose?
o Yes
o No
11. What are the likely reasons for suggesting particular Mutual Fund Schemes to your Clients for
investment?
o Knowledge about scheme
o Accessibility
o Brand Strength
o Superior Return
o Other Specify _____________

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Personal details:Name:
o
o
o
o

Contact No: _______________

Age:
21 years to 30 years
31 years to 40 years
41 years to 50 years
more than 50 years

Gender:
o Male
o Female
Thanks for Your Support

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