Milestone

Financial consultants

A better way to invest.

A Project Report
1

On

Mutual funds
At

By

Tanusha Torres Esilva

Roll no: R-09-35 Class: (SYBBA)

Under the guidance of Mrs. Pia Costa

Submitted to Rosary College of commerce and arts In partial fulfillment of the requirement for the second year Bachelor of Business Administration (BBA)

ACKNOWLEDGEMENT

Silent gratitude isn't much use to anyone. ~G.B. Stern Unselfish and noble actions are the most radiant pages in the biography of souls. ~David Thomas I can no other answer make, but, thanks, and thanks. ~William Shakespeare With regards to my Project with Milestone, I would like to thank each and every one who offered help, guidelines and support whenever required.

I sincerely express my thankfulness to all the people at Milestone for their valuable suggestions and help during the project. I am extremely grateful to my college guide, Mrs. Pia costa, Mrs. Sandra Dmello, Mrs. Vanessa Carassco (BBA Department) and all the faculty members of my college for their valuable suggestions and able guidance.

I express my deep sense of gratitude to my company mentors, Mr. Arjune Rebelo (Partner at milestone) without whose support and cooperation this project could not have been completed successfully.

Last, but not the least, my heartfelt love for my parents and my friends, whose constant support and blessings kept me enthusiastic throughout this project.

DECLARATION
I hereby declare that this Summer Internship Project Report titled Mutual fund in Milestone, Margao- Goa submitted in fulfillment of requirement of Bachelors in Business Administration (BBA) submitted to Rosary College of commerce and Arts is based on primary and secondary data found by me in various department, books, magazines and websites.

This is an original piece of work and has not been submitted to any other institution or university for any purpose.

Place: Margao Date: 17th June. 2011 Tanusha Torres Esilva

Executive Summary
This project, being a part of the first year BBA curriculum was to undertake a project in the chosen department of the organization wherein the objective was to concentrate on an area of study and to identify a problem. The training period was from 27th April 2011 to 15th June 2011 completing a period of 7 weeks during which I was expected to work in the organization. I got an opportunity to complete my Summer Training at Milestones Financial Consultant Margao Goa which was an eye opening experience of learning about Mutual Funds. It has truly been a wonderful experience, which will help me in my future endeavors.

INDEX ii -i11 17 1 2 CONTENT Executive summary Introduction Profile of the Organization Organization chart Survey Objective of the survey methodology 4 Data Analysis & Interpretation Pg. Nos 5 6 -9 10 - 16 17 18-19

20-31

5 -

Conclusion & Recommendations Bibliography Annexure

32-35 36 37

Mutual funds
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Definition of a Mutual Fund Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. It is a professionally managed investment option that pools money and invests in stocks, bonds, short term money market instruments and other securities. A fund manager invests the funds on behalf of the investors and manages it in future. Advantages of Mutual Funds 1. Professional Management: There is professional, experienced research team which analyzes the performance and prospects of the companies and selects a suitable portfolio for investment to achieve the objective of the scheme. So the money invested is in professional hands. 2. Diversification: According to the Finance Theory, its better when the investments are diversified. So Mutual Funds invest in so many stocks that the investment is already diversified. An individual investor might not be able to diversify his portfolio. With just an investment of Rs.5000 he can buy shares of some top companies which otherwise might not be possible. 3. Convenient Administration: Mutual Funds save investors time and money and make investing easier as it reduces paperwork, delayed payment and unnecessary follow up with brokers and companies. 4. Return Potential: Though Mutual Funds are subject to market risk, over a medium to long term it has the potential to provide higher returns as they invest in diversified basket of selected securities. 5. Low costs: Mutual Funds are relatively less expensive way to invest, because the investor doesnt have to pay any brokerage costs since the entry loads are abolished by the regulator. The investor might only have to pay for advisory fees if approached a financial advisor. 6. Liquidity: An investor can liquidate his holdings as and when he wants, except for close ended schemes the lock-in-period is 3 years. 7. Transparency: Regular information is given to the investor about the investment made by the scheme, value of the investment, proportion invested in each asset class and the fund managers investment strategy.
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8. Flexibility: There are different features offered by Mutual Funds like SIP, dividend reinvestment plans so an investor can choose any plan according to his needs and convenience. 9. Choice of schemes: With so many Mutual Funds and in each Mutual Fund hundreds of schemes and investor is offered various schemes to suit his needs. 10. Well regulated: The operations of Mutual Funds are monitored by SEBI. All Mutual Funds have to strictly abide by the regulations laid down by SEBI in order to protect the interest of the investors. 11. Simplicity: Investing in Mutual Fund is comparatively easier than other instruments in the market. 12. Affordability The minimum investment in Mutual Fund is mostly Rs. 5000. An investor might not be able to buy shares of the companies same as the scheme is investing in for such low price. And now there is an option called SIP where an investor can even invest Rs. 500 per month. So almost everyone can invest in Mutual Funds. Disadvantages of Mutual Funds 1. Cost - If an investor is knowledgeable about the markets then he might be better off choosing his own portfolio of stocks at a lower cost. 2. Too many schemes and therefore lot of confusion

Mutual Funds Online

Go back 10 years and you would find investors hesitating about investing their money in mutual funds but everything has changed in last few years. Mutual funds have become convenient option to invest money because of several advantages like security, professional management, diversification it provides. There are a number of Banks, Agents and Brokers, Certified Financial Planners providing expert guidance on Mutual Funds. With introduction of online facilities for investing, it is even easier for investors to invest in mutual funds. You can buy funds sitting at home while having a cup of tea. These websites will only need investors to fill application form by sourcing information like personal details, demat account number, and bank account number in order to complete the transactions. Schemes offered by mutual funds are also added advantage of online mutual fund. However, wrong selection may lead to money loss. And yes, mutual funds also have some gray areas from which where investors should play safely. Nowadays, its not hard to find best mutual funds to invest in because you can analyze everything about fund online. Starting from research to investment value, everything you can know online. NAV of online mutual fund: Net Asset Value (NAV) of mutual fund is price of single share of mutual fund. Other names like NAV/share, NAV/unit, and bid price are often associated with NAV of single share. NAV is only based on one share for mutual trade of single share of mutual fund. Unlike stocks and bonds, price of mutual funds are only gettable once business day of major stock exchanges of country are over. NAV of online mutual fund matters a lot for right investment decision when it comes to investing in online mutual fund.

Formula of Mutual Fund NAV NAV=[X+Y-Z]/M where,

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X= market value of the stock or security in the fund Y=market value of all other existing assets Z=liabilities M=number of units or shares NAV is important factor while buying and selling of mutual funds because funds are usually tracked, quoted, and rated based on their NAV. Hence, it becomes mandatory for investors to have in depth knowledge about Net Asset Value. It is possible to keep eyes on price movement of mutual fund through NAV of fund. NAV of mutual funds changes on daily basis. It also means that sometimes it may mess with things like capital gains distributions and dividends How to Buy Mutual Funds Online?

Its was never easy to buy/sell mutual funds like now online mutual funds have made it so easy for investors that investors can transact at any time or any place. More and more people are taking interest in buying Mutual Funds online because it offers several obvious advantages. First, I will describe here how you can buy mutual funds online. There are several ways to do it as described below. You can buy mutual funds online using AMC websites, independent websites, or using stock exchange

1) Using AMC Websites for Online Mutual Funds: Each mutual fund company (AMC) has its own website for online mutual funds transaction and you will have to create separate login for each such site to transact on them. If you are
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already an investor into a mutual fund, you can apply for a HPIN which can be used to login and transact online. There is actually no way to apply fully on-line, directly to the AMC, for the first time investor (who does not have a folio).The issue with this method is first time you have to do it off-line, secondly you have to fill form and maintain PINs for different AMCs separately (like each one for HDFC, Birla, SBI etc.). But once you have gone through all this once, life becomes super easy. Whenever you want to apply, just login and apply online using your bank account. Getting money back also becomes easy. Redemption becomes faster as amount is directly credited back to bank account through NEFT. No tension of cheques and paper work etc. 2) Using Independent Websites to Buy Online Mutual Funds:

Apart from official websites of mutual funds, there are some independent websites that offer service of Online Mutual Funds transactions for free. You can also use these websites to buy mutual funds online. In this case, demat account is not required. 3) Using Stock Exchange: You can also buy mutual funds using major stock exchange like BSE & NSE in India. However, you will need help of broker to use this way of online investment in mutual funds. You need to provide broker with your demat account details so that he can proceed with registration process.

Advantages of buying or selling Mutual Funds online: Investment value can be tracked anytime. Online Mutual Funds transactions also save time.
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No use of excessive stationary. Chances of errors are less and online transaction doesnt required issue of cheques. No brokerage, service charge, You can do-it-yourself. You can manage your investment yourself.

Company Profile

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Financial services Partners Address

: Milestone Financial consultant : Mr.Suraj Betkikar and Mr.Arjun Rebelo

Milestone Financial Consultants S-23, 2nd Floor Regency Plaza Comba, Margao Goa (India) 403 601 Phone: +91 832 2700560 / +91 832 2700561 Email: milestone@moneyfactor.net

Year of establishment Products Deposit

: 2005 : Mutual Funds, Real Estate, Post Office Schemes, &Bonds, Housing Loans, Insurance

Financial Auditors

: Ganesh Daivajna & Co

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Vision
Milestone Financial Consultants vision is to be recognized as the best Investment advisory & financial services firm in Goa.

Our Mission
Our mission is our commitment to provide our clients with investment products and services that present long-term, above-average return potential. We are committed to placing our clients' interests first and we are focused on building long lasting relationships based upon trust and expertise. Through our wide range of customized financial solutions we are able to meet the needs of both institutions and individuals.

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Company Background
Milestone Financial Consultants The firm was started by Mr.Suraj Betkikar and Mr.Arjun Rebelo, both are alumni of the Goa Institute of Management and have a diverse experience in the investment advisory and brokerage business. Todays fast paced world calls for every participant in the race to be independent and motivated towards his goal. Keeping this in mind two young men ,Arjun Rebelo a commerce graduate from Verna and Suraj Betkikar a mechanical engineer from Ponda, both alumni from the Goa Institute of Management, came together in partnership to form a fully fledged Investment and Financial services firm called Milestone Financial Consultants in Margao. When Arjun Rebelo and Suraj Bekikar were in their final year in GIM in 2003, they had the dream to start their own business as they were not too keen on working for a corporate. The economy was down at that time, as such they were not many players, but was picking up and they were interested in starting a business that would provide in depth financial services to an individual. The two believed that the first movers always have the advantage; they just needed to get their timing right. Also, salaries started to increase rapidly in the industry and they did not want to get into a comfort zone where lucrative job offers weighed significantly on their decision to move into business. Besides the ability to take the risk and have a workable business plan, they considered family support as a key of importance. Without family support nothing can happen, not just financially, but emotionally too. -The fact that somebody is there at home to support you and no matter how late you reach, warm company and hot food will be there for youthat feeling can get you through the toughest times!Trust and having the advantage of knowing each others strengths and weaknesses is what helped them in starting the business. With respect to competition they believe that players will keep on coming yet they will progress by continuously developing systems to beat competition. One cannot control or stop others. Instead, we need to grow, even in competition. Most people follow a policy of cutting margins to attract clients. However, in a low margin game, volumes

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become key, and when volumes disappear, so do businesses! At some point you have to target a segment of customers and define your focus areas In the future they wish to expand and grow their clientele and then to diversify into different business and would like to build "Milestone" into a brand, not just another financial services company. The appreciation from clients and the trust they have in them when they advise them on their finances is very precious to them. Milestone wants to be a pioneer in web technology since it will be the first brokerage firm to go on-line in India.

Services: 1. Investment Advisory 2. Wealth Management 3. Tax Planning 4. Retirement Planning 5. Share Trading 6. Mutual Funds 7. Real Estate 8. Insurance 9. Fixed Deposits 10. Bonds 11. Post Office Schemes 12. Public Provident Funds

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Organization Structure
Franchise IIFC

Broker

Mutual Funds

Back office ADVISORY Ms. Riddhi Mr.Suraj Betkikar & Mr.Arjun Rebelo && Bonds, Post office

Others

Account

Administration

Marketing

Business development

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Project 1 Objectives of the survey

Main Objective: To figure out the mind set of potential investors for using facilities based on web-technology for investing Sub Objectives: 1. To find out the whether people are aware about the various types of Mutual Funds & schemes and the most preferred investment options. 2. To know why people have invested in Mutual Funds and the channel of investment 3. To know what services they prefer from their advisors 4. To know whether they transact on-line and whether they are comfortable getting their advice on-line 5. To know whether they are willing to pay fees for advisory and other services.

This study will help, Milestone to gauge the awareness of investors of the various types of schemes offered, investment options preferred, the reason for investing in mutual funds , the channel preferred, services they would like from their advisors, whether they transact on-line, whether they prefer getting their advice on-line and whether they prefer paying the broker fees. This will also help milestone to figure out the mindset of the people and accordingly plan whether its a right move to go on-line or not.

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Research Methodology
Data sources: This study is totally based on primary data. This was done by conducting a survey and the instrument used was a questionnaire and by interacting with people. Questionnaire: (Annexure1), it contained two types of questions. Multiple and completely unrestricted questions. Sampling: The target was to sample randomly working men, women, retired citizens, housewives and students above 18 years of age. It is a Stratified Random sample, as some age groups were excluded (below 18 and very old people). The sample included residents and working people irrespective of whether they have invested, or not, in Mutual Funds. The survey was conducted by standing at locations which are most visited in the city. It was conducted in and around the city in places like Margao city, Borda, Aquem, Navelim and fartorda. Sample size: The sample size of my project, surveying the public, was limited to 100. Duration of the survey: This survey was conducted for two weeks starting from 6rd May 2011 to 22th May 2011. Limitations: 1. A lot of respondents were not cooperative 2. Some respondents might have given biased or dishonest answers while filling up the questionnaire, so there is a possibility of error in data collection. 3. The sample size being limited to 100 respondents, might not really give a view of the whole market. 4. Time: A lot of respondents were in a hurry while answering the questionnaire, this may have affected the quality of responses in terms of the thought they put in before answering particular questions. 5. A lot of investors were reluctant to give certain information especially their family yearly income cause of tax concern.

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DATA ANALYSIS AND INTERPRETATION

1) Age:

Age Profile of Investors

Less than24 25-40 40-55 6% 21% 37% 36% 55 and above

In the age group 37% falls in the age group of 25-40, 36% are in the age group of40-45, 21%are in the age group of55and above and a minority of 6% falls in the less than 24 category.

2) Occupation:

Occupation:
govt.service 20% 5% 16% 17% 28% 14% pvt.service business professional retired house wife

According to the data collected 28% of the people were working for private organizations, 20% were housewives, 17% had their own business, 16% were professional, 14% were government employees and the minority 5% was retired citizens

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3) What kind of Investments have you made so far?

Investment so far
100 80 60 40 20 0 89 52 67 45 15 22 28 8 16 Series1

Fixed income and life insurance are the dominant options where most of the people have parked their money. Out of 100 people 89% have invested in fixed income, 67% in Life insurance, 52% in recurring scheme, 45% in Gold, 28% in MF-Equity scheme, 22% in Equity-stock, 16% in Real estate, 15% in bonds/debentures and 8% in MF-Debt scheme. 4) Are you aware of the various types of Mutual Funds?

Liquid/money market as an alternative to savings A/c

NO 38% YES 62%

From the above chart it shows us that 62% of the people said that they are aware, whereas 38% said that they are unaware.

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Equity as an alternative to directly investing in share

No 52%

Yes 48%

From the above chart it shows us that 52% of the surveyed people said that they are unaware, whereas 48% said that they are aware

Gold Funds / ETF as an alternative to gold bars/biscuits

No 49%

yes 51%

From the above chart it shows us that 51% of the surveyed people said that they are aware, whereas 49% said that they are unaware.

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Fixed Maturity Plans as an alternative to Fixed Deposits

No 49%

Yes 51%

From the above chart it shows us that 51% of the surveyed people said that they are aware, whereas 49% said that they are unaware.

Monthly Income Plans, Debt Funds as an alternative to PO, B D

No 49%

yes 51%

From the above chart it shows us that 51% of the surveyed people said that they are aware, whereas 49% said that they are unaware.

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4) Are you aware of the various types of Mutual Funds? 1)dividends are tax free
No 32% Yes 68%

From the above chart it shows us that 68% of the respondents were aware that Dividends are Tax free and 32% were unaware. 2) Equity Linked Savings schemes under section 80 C to save tax
No 43% Yes 57%

From the above chart it shows us that 57% of the respondents were aware that Equity Linked Savings schemes under section 80 C are to save tax and 43% were unaware

3) Long Term Capital Gains tax is nil for Equity Oriented Schemes
No 44% Yes 56%

From the above chart it shows us that 56% of the respondents were aware that Long Term Capital Gains tax is nil for Equity Oriented Schemes and 44% were unaware

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5) If yes, how did you know about Mutual Funds?

18 16 14 12 10 8 6 4 2 0

14 10 3

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C.A/F.A and banks have created a lot of awareness among the 100 people surveyed, the percentage being 16% and 14% respectively. 10% people are aware through advertisement. 3% through their peer group and among the others category are the students who have known about MF from their professors. 6) If not invested in Mutual Fund Why?
25 20 15 10 5 0 8 6 Series1 16 23

It is interpreted according to the data shown 23% do not have any specific reason for not investing 16% have not invested in MF because there are completely unaware about it. 8% said that MFs have higher risk and 6% had some other reason such as doesnt have much funds to invest in it.

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7) If invested, in which Mutual Fund you have invested?

30 25 20 15 10 5 0 24 19 12 19 13 13 6 6

SBI-MF

HDFC-MF ICICI-MF Reliance - Birla sun MF Life-MF

UTI-MF DSP black Rock MF

Others specify

Most of the investors have invested in HDFC followed by SBI, Reliance MF, Birla Sun Life, UTI, ICICI and DSP black Rock. There were 6 respondents who had invested in other MFs like Religare MF, Axis MF and ING Vyasa MF. 8) What is the purpose behind your investment?
30 25 20 15 10 5 0 retirement funds wealth creation tax savings meeting PE 13 10 24 21

Most of the investors said that tax savings was their main purpose, 21 of them said because of wealth creation, 13 had invested for retirement funds and 10 were of the view of meeting planned expenditure i.e. children education, marriage etc.

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9) If invested in Mutual Fund through which channel have you invested?

Channels of investment
25 20 15 10 5 0 20 15 9 bank financial adviosr directly through AMC 1 ON-Line Series1

Out of the 45 respondents who have invested in MFs 20 of them have invested through banks, 15 through I.F.As,9 through AMC and 1 have invested on-line. This shows that people mostly prefer the bank and financial advisor to invest in MFs. 10) Who do you take investment advice from?

Investment Advice
35 30 25 20 15 10 5 0 30 20 6 20 20 16

Most of the investors take their investment advice from financial advisor followed by Newspapers, Magazines, Relatives/friends, Charted accountant,16 people take it them self and 6 take their from the broker.

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11) What services do you want from your advisors?

60 50 50 40 30 20 10 0 regular updates awareness on FP Updates on Regular c/r IP 13 36 30

Most of the investor prefers regular updates, 36 people prefer awareness on financial products.30 people prefer updates on investment performance and 13 people prefer regular contact and review. 12) What is your expected rate of return on your investments in a year?

Expected rate of return

50 45 40 35 30 25 20 15 10 5 0 45

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15 10 High risk high Medium risk Low risk low No risk(<8%) return(15%) midium return(10%return(10%) 8%)

Out of the 100 surveyed 45 people prefer taking medium risk medium return.30 people dont like taking any risk.15 people are among the high risk takers whereas 10 people believe in low risk low return.

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13) What is your preferred mode of communication?

50 40 30 20 10 0 phone call E-mail SMS Personal meeting postal updates 29 12 45 44

10

Out of the 100 surveyed people most prefer phone call and e-mail as their most preferred mode of communication .29 prefer SMS, 12 through personal meeting and 10 through postal updates. 14) Do you do your transaction on-line?

Transact online
Yes 39% No 61%

From the above chart it shows us that 61% of the respondents do not do any transaction online whereas 39% they transact on-line.

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15) If yes, in what?

30 25 20 15 10 5 0 internet banking stock broking other service 14 10 25

From the above chart it shows us that out of the 39% who transact on-line, 25 people do other service like booking their ticket on-line .whereas 14 do internet banking and 10 stock broking. 16) If no, why?

22 19 12 4 4

no kwlg On-line tax security no access no time concern to internet

Out of the 61% who do not do any transaction on-line .22 people has security as their main fear, 19 people have no easy access to internet facility.12 people have no knowledge and 4 dont want to pay for any tax.

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17) How would you prefer to get your financial advice?

advice face to face 62%

advice online 38%

Out of the100 surveyed people 62% prefer face to face and 38% prefer on-line to get their financial advice. 18) Family yearly income

Family yearly income

50 40 30 20 10 0 less than 1lakh 1lkh-5lkh 5lkh-10lkh 10lkh and above 22 26 7 45

Most of the sample surveyed was earning an annual income between 1 lakh to 5 lakh. 26% were earning 5 lakh-10lakh of annual income. 22% fell in the less than 1lakh category and 7 % were very high net worth individuals.

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19) Any member of the family working abroad (NRI)?

NRI
Yes 40% No 60%

From the above chart it shows us that 40% of the respondents members of the family are working abroad and 60% were not. 20) Are you willing to pay the broker for?
45 40 35 30 25 20 15 10 5 0 Service Transaction Advice None 16 25 35 40

Out of 100 surveyed 40 people are not interested to pay the broker for none i.e. (The service, transaction and advice). 35 are willing to pay only for the service provided. Whereas 25 for the advice provided it benefits them and 16 people were ready to pay for the transaction.

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Conclusion:
Mutual fund industry in Goa especially in Margao is still in its infancy stage. Through this survey I have noticed that a lot of people are aware about MF but they do not want to invest because of the high risk involved or because they do not have sufficient funds to invest in it. There were a lot of respondents who had accounts with a particular bank e.g. (HDFC, SBI, and ICICI) and therefore used the investment services offered by the banks. It shows that some investors want to be associated with the same brand. You can say that the market is very conservative because when asked the question about what is your expected rate of return on your investments they said they prefer medium risk and some said they do not like taking any risk. So on this you get to know that people are happy with their traditional saving options. People are willing to pay the broker only for the service and advice provided it benefits them. When asked the question of any member of family working abroad (NRI) 40 of them said yes. Due to a large proportion of NRIs, there is a greater possibility of remittances. These NRIs will have surpluses to invest. Financial advisors and banks play an important role as these were the channels which were most preferred by the investors. Also while investing in mutual funds investors rely more on the advice given by the financial advisors, because people dont know much about the markets and also about mutual funds. In my survey I got to know that most people prefer regular updates on opportunities of investment this shows that people are interested in knowing about the various opportunities. Due to no time because of busy work schedule people prefer phone and e-mail as their preferred mode of communication only the house wives, some above the age of 50, and retired citizen prefer face to face. As compared to the previous years where people is to find it difficult to transact on-line ,through this survey you get to know that there are many people who transact for various purpose such booking their ticket on-line ,internet banking and stock broking. And among the people who do not transact on-line it is because of security concern and because no easy access to internet facility

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Recommendation and Suggestions:

1) It is recommended that milestone needs to create awareness about investing online through web based technology. A focused effort will be needed to provide its clients and potential clients with information about the web-technology. Implementation of the solutions: The firm should consider conducting a seminar to highlight the benefits of web-technology for investing and the usage of the same. This will give the investors easy and convenient, time saving access to various investment options. The investors will also be educated on the security measures taken to keep the transaction done on-line secure since many people had concern related to the security of transaction on-line. Procedure: 1. Through the survey conducted certain interested candidate were noted ,these people were sent e-mail thanking them for their co-operation during the survey and also asking them whether they were interested in attending a workshop on investing , where the web service for investing would be introduced to them. 2. The response is still awaited and accordingly the similar date will be decided

2) Milestone has to have a specific target market, and the target market should be in the age group of 25 50. In this age group people start working, get married, have children, and aged parents to look after, so this age group has a lot of responsibility and has to plan accordingly for a better future of their family. Implementation of the solutions Pamphlets can be distributed outside school when parents come to drop their children. The pamphlets should have the advantages of starting to invest at an early age for the benefit of their children and their family. It should also contain the benefit of the introduction of webtechnology of milestone which will be a great boon to the investor.

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3) As for corporate strategy milestone should try and advertize on social networking communities as this medium is gaining importance and most importantly the target market is available on this medium. Implementation of the solutions The name of the website can be advertised on face book which is the popular social networking site. Face book has a pay per click facility for website advertising. 4) Milestone must focus on fast customer service for web-technology Implementation of the solutions 1. Should solve (reply to mail) on-line queries immediately after the mail has been sent by the investor. 2. Milestone should have toll free customer service number for on-line customers who face problems while transacting. This will ensure that customers queries will be solved instantly, since the whole idea of investing online is to save time and hassles of going physically to an office. 3. They can provide customers with a live chat service where customers can talk to the advisor face to face. 5) After starting with the website Milestone can take recommendations from investors who already use online service, ask questions in relevant forums and request them to give their testimonials. These testimonials can be shown on the website making the people believe that it is safe to invest on-line since most people have security as their fear. 6) Since investors prefer knowing the advisor/ broker with whom they are investing, as a trust building strategy a video of the advisor can be uploaded explaining about the different services available to the investors.

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BIBLIOGRAPHY:

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(ANEXURE NO.1)

Questionnaire
1) Age: O Less than 24 O 25-40 O 40-55 O 55 and above

2) Occupation: O Govt .service O Pvt Service O Business O Professional O Retired O House wife

3) What kind of Investments have you made so far? i) FIXED INCOME: O Fixed Deposit in Bank O Company fixed deposit O Post Office ii) RECURRING SCHEME O Pigmy Deposit O Post office Recurring O Mutual Fund (SIP) iii) GOLD: O Jewelry O Gold coin/Biscuit/Bars O Gold ETF/Mutual fund

O BONDS & DEBENTURE O EQUITY STOCKS O MUTUAL FUNDS EQUITY SCHEMES O MUTUAL FUNDS DEBT SCHEMES O REAL ESTATE O LIFE INSURNACE 4) Are you aware of the various types of Mutual Funds? Liquid/money market as an alternative to savings A/c O Yes O No Equity as an alternative to directly investing in share O Yes O No Gold Funds / ETF as an alternative to gold bars/biscuits O yes O No Fixed Maturity Plans as an alternative to Fixed Deposits O Yes O No Monthly Income Plans, Debt Funds as an alternative to Post Office, Bank Deposits O Yes O No Are you aware that Mutual Fund has tax benefits? 1. Dividends are tax free O Yes O No O Yes O No O No

2. Equity Linked Savings schemes under section 80 C to save tax

3. Long Term Capital Gains tax is NIL for Equity Oriented Schemes O Yes

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5) If yes, how did you know about Mutual Funds? O Advertisements O Peer group O Banks O C.A/ Financial advisors

O Others (Specify) _____________ 6) If not invested in Mutual Fund Why? O Not aware O Higher risk O No specific reason

O Any Other (Specify) ______________ 7) If invested, in which Mutual Fund you have invested? Why? __________________ _______________________ SBI - MF HDFC - MF ICICI - MF Reliance - MF Birla Sun Life - MF UTI - MF DSP Black Rock MF Others. specify

8) what is the purpose behind your investment? O Retirement Funds O wealth creation O tax saving

O Meeting planned expenditure (E.g. children education, marriage etc) 9) If invested in Mutual Fund through which channel have you invested? O Bank O On-line websites 10) Who do you take investment advice from? O Financial advisors O Relatives/friends O Brokers O Newspapers, Magazines, Self help books O Financial advisors/broker O Directly through the AMC

O Charted accountant O Self

11) What services do you want from your advisors? O Regular updates on opportunities of investment Seminars, workshops) O Awareness on financial products (through O Regular contacts/reviews

O updates on investment performance

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12) What is your expected rate of return on your investments in a year? (Percentage terms) O High risk High return (15%) O Medium risk Medium returns (10%) O Low returns Low risk (10%-8%) O I dont like any risk (8%) 13) What is your preferred mode of communication? O Phone call O E-mail O SMS O Personal meeting/interaction O Postal updates

14) Do you do your transaction on-line? O Yes 15) If yes a) Internet banking b) Stock Broking c) Other services (ticketing) 16) If no, a) No knowledge b)) On-line tax c) Security concern d) No easy excess to internet facility 17) How would you prefer to get your financial advice? O Are you comfortable getting your advice on-line O Is it necessary to meet your broker face to face 18) Family yearly income O Less than 1, 00,000 O 1, 00, 0000 - 5, 00,000 19) Any member of the family working abroad (NRI)? O Yes O No Marital status: married/single O 5, 00001 - 10, 00,000 O 10, 00,000-above O No O O O O O O

20) Name .. Gender: Male/Female Number of dependants Address

E-mail. Contacts No..

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(ANEXURE NO.2)

Mr.Arjun Rebelo and Mr.Suraj Betkikar (partners of milestone)

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