The document is a project report on mutual funds as an investment avenue at NJ India Invest. [1] It provides an introduction and executive summary on mutual funds, acknowledging them as a suitable investment for common people that allows investing in a diversified basket of securities professionally managed at low cost. [2] It describes the research methodology used in the project, which involved collecting primary data through a survey of 70 people to examine return, risk, and fund administration methods of selected mutual funds. [3] The analysis and interpretation of the survey aims to understand operations of the mutual fund industry and identify objectives for investing in different schemes to provide optimal returns for investors' risk.

1. A
PROJECT REPORT
ON
“MUTUAL FUND AS AN INVESTMENT AVENUE
AT N. J INDIA INVEST”
A detailed study done i
“FINANCE”
Submitted in partial fulfillment of the requirement for the award of
degree of Bachelor of Business Administration (BBA) under Bharati
Vidyapeeth Deemed University, Pune.
Submitted by
NAME: SULABHA .A. ITHAPE
ROLL NO: 15
BATCH: 2010-2013
Under the guidance of
Prof. SONALI ATHAWALE
Bharati Vidyapeeth‟s
Institute of Management & Entrepreneurship Development
Navi Mumbai
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2. ACKNOWLEDGEMENT
I would sincerely like to give my heartfelt acknowledgement and thanks to my parents.
Any amount of thanks given to them will never be sufficient.
I would sincerely like to thank our Director Dr. D. Y. PATIL. I would also like to thank
my project guide Prof. SONALI ATHAWALE for him valuable support and guidance
whenever needed.
I also feel heartiest sense of obligation my library staff members & seniors who helped in
collection of Data and materials and also in this processing as well as in drafting manuscript.
Last, but not the least, I would like to thank my friends & colleagues for always being
there.
Place: Navi Mumbai.
Date:
Signature of the student:
(SULABHA .A. ITHAPE)
2

3. EXECUTIVE SUMMARY
A Mutual Fund is a trust that pools the savings of a number of investors who share
a common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through these
investments and the capital appreciation realized is shared by its unit holders in proportion to
the number of units owned by them. Thus a Mutual Fund is the most suitable investment for
the common man as it offers an opportunity to invest in a diversified, professionally managed
basket of securities at a relatively low cost.
Portfolio managers evaluate their portfolio performance and identify the sources of
strength and weakness. The evaluation of the portfolio provides a feed back about the
performance to evolve a better management strategy. Even through evaluation of portfolio
performance is considered to be the last stage of investment process, the managed portfolios
are commonly known as mutual funds. Various managed portfolios are prevalent in the
capital market. Their relative merits of return and risk criteria have to be evaluated.
The performance evaluation of mutual fund is a vital matter of concern to the fund
managers, investors, and researchers alike. The core competence of the company is to meet
objectives and the needs of the investors and to provide optimum return for their risk. This
study tries to find out the risk and return allied with the mutual fund.
Mutual Fund is one such option which can invest in all other investment options. Its
principle of diversification allows the investors to taste all the fruits in one plate just by
investing in it; the investor can enjoy the best investment option as per the investment
objective. Every other investment option has more or less some shortcomings. Such as if
some are good at return then they are not safe, if some are safe then either they have low
liquidity or low safety or both likewise, there exists no single option which can fit to the need
of everybody. But mutual funds have definitely sorted out this problem. Now everybody can
choose their fund according to their investment objectives.
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4. As the mutual fund is managed by experts so they are ready to switch to the profitable option
along with the market movement.
This project gave me a great learning experience and at the same time it gave me
enough scope to implement my analytical ability. The analysis and advice presented in this
project report is based on market research on the saving and investment practices of the
investors and preferences of the investors for investment in Mutual Funds.
Mutual funds pool money from different investors and invest in different investment
sources like stocks, shares, bonds etc. A professional fund manager manages these and returns
are paid in form of dividends. Some schemes assured fixed returns that are less in risk and
some offer dividends based on the market fluctuations and prices. Mutual funds have to be
subscribed in units and the purchase or sale is dependent on NAV (Net Asset Value), taking
into consideration the exit and entry load factors into account.
Indian Mutual fund industry has undergone a massive change in the last few years
with the launch of many conglomerates in India. They have introduced professional dexterity
and technology in handling capitals both nationally and internationally. Owing to this
investors have spoilt choice for a diverse range of policies depending on their portfolios.
NJ India Invest Pvt. Ltd. is one of the leading advisors and distributors of financial
products and services in India. Established in year 1994, NJ has over a decade of rich
exposure in financial investments space and portfolio advisory services. From a humble
beginning, NJ over the years has evolved out to be a professionally managed, quality
conscious and customer focused financial / investment advisory & distribution firm. We are
looking for candidates. We have opening for Direct Sales, Alternate Sales, Channel Sales,
Mutual Fund, Demit, IPV, KYC, AMFI, NCFM, NISM, and CFP.
In the project consists of data and its analysis collected through survey done on 70
people. For the collection of Primary data I made a questionnaire and surveyed of 70 people.
This project covers the topic “THE MUTUAL FUND AS AN INVESTMENT AVENUE AT
N. J. INDIA INVEST PVT LTD”. The data collected has been well organized and presented.
Indian Mutual fund industry has undergone a massive change in the last few years with the
launch of many conglomerates in India. They have introduced professional dexterity and
4

5. technology in handling capitals both nationally and internationally. Owing to this investors
have spoilt choice for a diverse range of policies depending on their portfolios.
5

6. TABLE OF CONTENTS
PARTICULARS: PAGE NO:
Chapter 1: Introduction of the Project 1
1.1: Concept & Significance of the Study 1
1.2: Objective of the Study 1
1.3: Scope and Limitations 2
1.4: Literature Review 3
Chapter 2: Introduction to Industry 6
2.1: Characteristics 8
2.2: History of Mutual Funds 8
2.3: Structure of the mutual fund 9
2.4: Types of the Mutual Fund 12
2.5: Mutual Fund Categories 15
2.6: Mutual Fund Schemes by investment objective 18
2.7: Advantages & Disadvantages of the Mutual Fund 21
2.8: Mutual Funds players 24
2.9: Introduction to the Company 29
Chapter 3: Research Methodology 41
3.1: Research Design 42
3.2: Data Collection Techniques and Tools 42
3.3: Sample Design 43
Chapter 4: Survey Analysis and Interpretation 45
Chapter 5: Conclusions and Suggestions 57
Annexure
Bibliography
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7. CHAPTER 1
1. INTRODUCTION TO STUDY OF MUTUAL FUNDS
1.1 CONCEPT & SIGNIFICANCE OF THE STUDY:
Mutual funds are a pool of securities with variety of investment options and risk and
return combination catering the needs and requirement of every investor. A Mutual
Fund is a trust that pools the savings of a numbers of investors who share a common
financial goal. The money thus collected is invested by the fund manager in different
types of securities depending upon the objective of the scheme. These could range
from shares to debentures to money market instruments.
In Short, a Mutual fund is a common pool of money in to which investors with
common investment objective place their contributions that are to be invested in
accordance with the state the investment objective of the scheme. The investment
manager would invest the money collected from the investor in to assets that are
defined permitted by the stated objective of the scheme. For example, a equity fund
would invest equity and equity related instruments and a debt fund would invest in
bonds, debentures, gilts etc. Mutual fund is a suitable investment for the common man
as it offers an port unity to invest in a diversified, professionally managed basket of
securities at a relatively low cost.
1.2 OBJECTIVES:
The main objective is to study the trends in the Mutual Fund Industry right from its
inception in India and to suggest certain investment techniques and strategies keeping
in mind the various regulations. In order to achieve this, it is most important to rectify
the prevailing environment of information about the mutual fund industry and that
individual investors are educated about the unique advantages of mutual fund
investing in a deregulated, high risk competitive market.
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8. The main objective of the study in posed which of the criteria researcher believed to
required research:
1) To examine the return from selected MF.
2) To documents investment on selected assets allocation trends of mutual fund.
3) To minimize risk and remove the unsystematic risk.
4) To identified systematic risk.
5) To scrutinize the fund administration method in the mutual funds industry.
6) The reports help in understanding the operations of the industry right from its
initiation stage to expansion and future initiatives.
7) Identify the Objectives for investment in mutual fund schemes.
8) Identify the survey analysis and interpretation about mutual fund.
1.3 SCOPE & LIMITATION :
SCOPE:
Scope of Mutual Funds has grown enormously over the years. In the first age of
mutual funds, when the investment management companies started to offer mutual
funds, choices were few. Even though people invested their money in mutual funds as
these funds offered them diversified investment option for the first time. By investing
in these funds they were able to diversify their investment in common stocks,
preferred stocks, bonds and other financial securities. At the same time they also
enjoyed the advantage of liquidity. With Mutual Funds, they got the scope of easy
access to their invested funds on requirement.
But, in today world, Scope of Mutual Funds has become so wide, that people
sometimes take long time to decide the mutual fund type, they are going to invest in.
Several Investment Management Companies have emerged over the years who offer
various types of Mutual Funds, each type carrying unique characteristics and different
beneficial.
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9. To understand the broad scope of Mutual Funds we need to discuss the main types of
Mutual Funds that are normally offered by the Mutual Companies.
LIMITATION:
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:·
Interview method, which was followed in the present research work, is relatively
more time consuming.
In addition to this it is very expensive method, especially when spread geographic
sample is taken.
Questionnaire method can be used only when respondents are literate and co-
operative.· Sample size was 70 that are not enough to study the awareness of
Independent individuals.·
As sampling techniques is convenient sampling so it may result in personal bias.
Even respondent give bias answers.
Time is main constraint of the research as we have been given project as well as study
simultaneously.
1.4 LITERATURE REVIEW:
A study was conducted by Grinblatt and Titman (1989) to examine the superior stock
selection abilities of mutual fund managers through which researcher generated
abnormal returns. For this purpose a sample of 274 funds was taken from 1974
to1984. Study applied Jensen Measure and compared the abnormal returns of active
and passive investment strategies both with and without transaction costs, fees, and
expenses. The results showed that the actual returns of these funds do not exhibit
abnormal performance indicating that investors cannot take advantage of the superior
abilities of these portfolio managers by purchasing shares in the mutual funds.
A company that collected money from a group of people with common investment
objectives to buy different securities is called mutual fund. The collected holding of
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10. these securities was known as its portfolio Mark (2007). According to Teri (2007)
mutual fund is a professional investment company which managed collection of
stocks, bonds, or other securities owned by a group of investor. Each mutual fund had
a fund manager who purchased and sold the fund‟s investment according to the fund
goals. Fund managers were responsible to analyze the economic conditions, industry
trends, government regulations and the impact on stocks before selecting the
securities for investment.
Mutual funds provided investment facility to the small investors who cannot afford to
invest the large sums of money Teri (2007). Basically these small investors invested
money into a common fund and handover the investment decision to fund manager.
Many people often regard the beginning of Foreign and Colonial Government Trust as
the beginning of modern day mutual funds. But the beginning of mutual funds dates
back to Seventeenth century when the first "pooling of money" for investments was
done in 1774. Following the financial crisis of 1772-1773 a Dutch merchant Ketwich
invited investors to come together to form an investment trust under the name of
Eendragt Maakt Magt David (2007). The purpose of the trust was to provide
diversification at low cost to the small investors.
In order to spread risk, the fund invested in various countries such as Austria,
Denmark, German States, Spain, Sweden, Russia etc. In 18th century Amsterdam
Stock Exchange had only a small number of listed equities due to which the trust
invested only in bonds. However after war with England many colonial bonds
defaulted due to which there was sharp decline in the investments. As a result, share
redemption was suspended in 1782 and later the interest payments were decreased
too. The fund was no longer attractive for investors and vanished. These early mutual
funds before heading to the United States took root in England and France in the
1890s. On the other hand “Massachusetts Investors' Trust of Boston” was the first
open-end fund Formed in 1924. The growth of pooled investments was hampered by
stock market crash of 1929 and the Great Depression but Securities Act of 1933 and
Company Act of 1940 restored investor‟s confidence and industry witnessed steady
growth after that.
Several measures are used in the literature on mutual fund performance evaluation but
there is (still) a large controversy around them. Some of the important risk-adjusted
techniques include the Sharpe (1966) measure, the Treynor (1965) measure and the
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11. Jensen (1968) measure. These measures were frequently called traditional measures
of performance evaluation and were based on the idea that the combination of any
portfolio with the risk-free asset is located in the expected return or beta space. The
Jensen measure has been the most commonly used performance measure in academic
and non-academic empirical studies. On the other hand Sharpe‟s reward-to-variability
ratio was also very popular and was frequently used by the researchers. Some of the
empirical work on the performance of mutual funds was given below.
Sharpe (1966) introduced the measure to evaluate the mutual funds‟ risk-adjusted
performance. The measure was known as reward-to-variability ratio (Currently
Sharpe Ratio). With the help of this ratio he evaluated the return of 34 open-end
mutual funds in the period 1945-1963. The results showed the capital market was
extremely efficient due to which majority of the sample had lower performance as
compared to the Dow Jones Index. Sharpe (1966) found that from 1954 to 1963 only
11 funds outperformed the Dow-Jones Industrial Average (DJIA) while 23 funds were
outperformed by the DJIA. Study concluded that the mutual funds were inferior
investments during the period.
Previously two- and three-moment analyses were used to analyze the mutual fund
performance relative to market performance. But Joy and Porter (1974) applied first-,
second-, and third-degree stochastic dominance principles to investigate the same
question. Study suggested that the proper test of mutual fund performance relative to
the market (DJIA) is a test employing stochastic dominance principles. Such a test
necessitates a pair wise comparison between each fund and the DJIA. Therefore Joy
and Porter (1974) collected the performance data for the 34 funds analyzed by both
Sharpe (1966) and Arditti (1971) for the ten-year period 1954-1963. Price and
dividend data were also collected for the DJIA over the same period. Study supported
the earlier Sharpe (1966) study and opposed the Arditti (1971) work and concluded
that mutual fund performance was inferior to market performance over the period
1954-1963.
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12. CHAPTER 2
2. INTRODUCTION ON THE MUTUAL FUND INDUSTRY :
The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank the. The history
of mutual funds in India can be broadly divided into four distinct phases.
First Phase: 1964-1987
An Act of Parliament established Unit Trust of India (UTI) on 1963. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrative
control of the RBI. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative
control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At
the end of 1988 UTI had Rs.6, 700 crores of AUM.
Second Phase: 1987-1993 (Entry of Public Sector Funds)
In 1987 marked the entry of non- UTI, public sector mutual funds set up by public
sector banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
established in June1987.
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 first
private sector mutual fund registered in July 1993. The industry now functions under
the SEBI (Mutual Fund) Regulations1996.As at the end of January 2003; there were
33 mutual funds with total assets of Rs.1, 21,805 cores. The Unit Trust of India with
Rs.44, 541 crores of assets under management was way ahead of other mutual funds.
Fourth Phase – Since February 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
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13. 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 second is the UTI Mutual Fund Ltd, sponsored by SBI,
PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund
Regulations.
The graph indicates the growth of assets over the years.
GROWTH IN ASSETS UNDER MANAGEMENT
Note: Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of
the Unit Trust of India effective from February 2003. The Assets under management of the
Specified Undertaking of the Unit Trust of India has therefore been excluded from the total
assets of the industry as a whole from February 2003 onwards.
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14. 2.1 CHARACTERISTICS:
• A mutual fund actually belongs to the investors who have pooled their funds.
• A mutual fund is managed by investment professionals and other service providers, who
earn a fee for their services, from the fund.
• The pool of funds is invested in a portfolio of marketable investments. The value of the
portfolio is updated every day.
• The investor‟s share in the fund is denominated by „units‟. The value of the units changes
with change in the portfolio‟s value, every day. The value of one unit of investment is called
the Net Asset Value or NAV.
2.2 HISTORY OF MUTUAL FUNDS
 Unit Trust of India is the first Mutual Fund set up under a separate act, UTI Act in
1963, and started its operations in 1964 with the issue of units under the scheme US-
64
 In the year 1987 Public Sector banks like State Bank of India, Punjab National
Bank, Indian Bank, Bank of India, and Bank of Baroda have set up mutual funds.
 Apart from these above mentioned banks Life Insurance Corporation [LIC] and
General Insurance Corporation [GIC] too have set up mutual funds
 With the entry of Private Sector Funds a new era has started in Mutual Fund
Industry [ex:- Reliance Mutual Fund, Deutsche Mutual Fund, ICICI Mutual Fund,
HDFC Mutual Fund etc]
Which are the other institutions that have floated Mutual Funds in India?
Currently public sector banks like SBI, Canada Bank, ICICI, HDFC, institutions like
IDBI, LIC Foreign Institutions like Alliance, Morgan Stanley, Templeton and Private
financial companies like Kothari Pioneer, DSP Merrill Lynch, Santarem, Kodak
Mahindra etc. have floated their own mutual funds
How many Mutual Funds are there in India currently? Presently there are 38
Mutual Funds in India and close to 400 mutual fund schemes.
14

15. Why has the concept of mutual funds taken so long to pick up in India? Even in
the US the concept of mutual funds has started picking up only in the last decade.
This whole process of investor education and investor awareness takes a lot of time.
But Indian investors are now beginning to understand the benefits of investing
through the mutual funds route and hence the collections are beginning to pick up.
What is the total size of the mutual fund sector in India? Currently the total funds
under mutual fund management in India are a little over Rs. 2, 65,805 crores as on
June 2006*. Out of this UTI accounts for nearly 70 percent while the private funds
account for around 22 percent. The balance 8 percent is managed by mutual funds
floated by public sector banks and financial institutions.
2.3 STRUCTURE OF THE MUTUAL FUND :
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16. 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- Trustee-AMC (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. 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 at least 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
TURST:
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:
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 inter-alia 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 COMPONY:
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
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17. the directors to 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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18. 2.4 TYPES OF THE MUTUAL FUND
DIAGRAMA MUTUAL FUND
What are open-ended and close-ended mutual funds schemes?
In an open-ended mutual fund there are no limits on the total size of the corpus.
Investors are permitted to enter and exit the open-ended scheme at any point of time
at a price that is linked to the net asset value (NAV). In case of close-ended funds, the
total size of the corpus is limited by the size of the initial offer.
Do both open-ended and close-ended funds come out with an initial offering?
Yes. But the only difference is that in case of open-ended funds, a month after the
initial offer closes the continuous offer period starts when the investor can enter and
exit the fund at a price linked to the NAV
 Unit trust of India is the first mutual fund set up under a separate act, uti act in
1963, and started its operations in 1964 with the issue of units under the scheme us-64
18

19.  In the year 1987 public sector banks like state bank of India, Punjab national bank,
Indian bank, bank of India, and bank of Baroda have set up mutual funds.
 A part from these above mentioned banks life insurance corporation and general
insurance corporation too have set up mutual funds
 With the entry of private sector funds a new era has started in mutual fund industry
[e.g.:- principal mutual fund]
Which are the other institutions that have floated mutual funds in India?
Currently sector banks like SBI, Canada bank, bob, private sector banks like ICICI,
HDFC, foreign institutions like principal, Morgan Stanley, temple ton, fidelity and
private financial companies like Kodak, dsp Merrill lynch, etc. Have floated their own
mutual funds
How many mutual funds are there in India currently?
Presently there are 33 mutual funds in India and close to 700 mutual fund schemes.
Why has the concept of mutual funds taken so long to pick up in India?
Even in the us the concept of mutual funds has started picking up only in the last
decade. This whole process of investor education and investor awareness takes a lot of
time. But Indian investors are now beginning to understand the benefits of investing
through the mutual funds route and hence the collections are beginning to pick up
regulatory body of mutual fund
What is the regulatory body for mutual funds?
Securities exchange board of India (SEBI) is the regulatory body for all the mutual
funds mentioned above. All the mutual funds must get registered with SEBI. The only
exception is the UTI, since it is a corporation formed under a separate act of
parliament risk management
How do mutual funds diversify their risks?
Financial theory states that an investor can reduce his total risk by holding a portfolio
of assets instead of only one asset. This is because by holding all your money in just
one asset, the entire fortune of your portfolio depends on this one asset. By creating a
portfolio of a variety of assets, this risk is substantially reduced.
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20. Can mutual funds be viewed as risk-free investments?
No. Mutual fund investments are not totally risk free. In fact, investing in mutual
funds contains the same risk as investing in the markets, the only difference being that
due to professional management of funds the controllable risks are substantially
reduced.
What are the risks involved in investing in mutual funds?
A very important risk involved in mutual fund investments is the market risk. When
the markets experience a downturn, most funds will reflect this decline in their
NAVs. However, the company specific risks are largely eliminated due to
professional fund management.
How much return can i expect by investing in mutual funds?
Investors need to be clear that mutual funds are essentially medium to long term
investments. Hence, short-term abnormal profits will not be sustainable in the long
run. But in the medium to long run the mutual funds tend to outperform most other
avenues of investments at the same time avoiding the risk of direct investment
accompanied with professional fund management
What is the difference between mutual funds and portfolio management
schemes?
While the concept remains the same of collecting money from investors, pooling them
and investing the funds, the target investors are different. In the case of portfolio
management the target investors are high net worth investors while in case of mutual
funds the target investors are the retail investors.
Association of mutual funds in India (AMFI)
The association of mutual funds in India (AMFI) is dedicated to developing the Indian
mutual fund industry on professional, healthy and ethical lines and to enhance and
maintain standards in all areas with a view to protect and promote the interests of
mutual funds and their unit holders.
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21. 2.5 MUTUAL FUND CATEGORIES:
Mutual funds fall into the following categories: money market funds, bonds funds,
stocks funds, balanced funds, and asset allocation funds.
A) Stock funds
As the name implies, stock mutual funds invest mainly in common stocks. These
stocks may be sold on the New York Stock Exchange, the NASDAQ or other
exchanges.
The objective of a stock fund is long-term capital appreciation versus generating
income (dividends) more common with bond funds. However, stock funds may
generate modest dividends from the stocks in the portfolio and from short-term cash
investments. These stocks tend to be larger capitalized stocks versus smaller growth
stocks.
There are four basic types of stock funds.
Stock Fund Types
Large Cap: Primarily invests in "Blue-chip" companies - large, well-known
industrials, utilities, technology, and financial services companies with large market
capitalization. Large cap stocks are perceived to be less risky than smaller capitalized
companies.
Mid Cap: Primarily invests in companies whose market capitalization is smaller than
large caps but larger than small caps. Mid caps are generally considered more risky
than large cap stocks but have a higher return expectation.
Small Cap: Primarily invests in emerging companies, thought to have potential for
future growth and profit. Small caps are generally considered the riskiest stocks
compared to larger capitalized firms but carry the expectation of higher returns.
Small cap funds are subject to greater volatility than those in other asset categories.
International: Primarily invests in stocks traded on foreign exchanges but purchased
in the United States by U.S. fund companies. International funds are subject to
additional risks such as currency fluctuation, political instability and the potential for
illiquid markets.
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22. Sector: Primarily invests in specific industry sectors such as technology, financials,
health, or energy. Since sector funds focus their investments on companies involved
in a specific industry sector, the funds may involve a greater degree of risk that an
investment in other mutual funds with greater diversification.
Many investors buy stock mutual funds because, historically, stocks have
outperformed other types of investments over the long term. However, the value of
the stocks in the fund's portfolio may go up or down as the market rises or declines.
Remember, past performance is no guarantee of future results
B) Bond funds
Bond funds1 invest in various types of bonds - issued by corporations, municipalities,
and the U.S. government. Bond mutual funds are designed mostly to provide investors
with a steady stream of income2 versus capital gains.
Bond Funds:
Invest in bonds, which are debt securities, or IOUs, issued by corporations or
governments in exchange for money loaned to them. Generally, the issuer agrees to
repay the loan by a specific date and to make regular interest payments to the lender
until then.
Are a basket of bonds with different durations, yields, credit quality, and values?
Because of this, bond funds never mature as would be the case with buying an
individual bond.
Share value and dividends will fluctuate as interest rates fluctuate and new bonds are
purchased or others are sold or mature.
Produce profits that consist primarily of dividend distributions.
May generate modest capital gains.
Fluctuate in value, so it is possible to sell shares at a higher or lower price than you
paid for them.
Bond Fund Types:
Government: Primarily invest in bonds issued by the U.S. Department of Treasury
as well as various federal agencies. Government bonds are generally taxable.
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23. Municipal: Primarily invest in municipal bonds issued by state and local
governments and their agencies to fund projects such as schools, streets, highways,
hospitals, bridges, and airports. Municipal bonds can be insured or non-insured
securities. Income generated from municipal bonds may be tax free at both the
federal and state level (consult the fund‟s prospectus).
Corporate: Primarily invest in bonds issued by corporations to help fund business
activities. Income from corporate bonds is taxable.
1. Bond fund shares are not guaranteed and will fluctuate with market conditions and
interest rates and include a greater risk to principal than Certificates of Deposit.
Shares, when redeemed, may be worth more or less than their original cost.
2. Income may be subject to the Alternative Minimum Tax (AMT) and capital
appreciation from discounted bonds may be subject to state and local taxes.
C) Money market funds
Money market funds invest in short-term securities such as Treasury bills. Most
money market funds offer a higher rate of interest than bank savings accounts, and
some are free of federal or state taxes. But unlike bank savings accounts, money
market funds are not FDIC insured.
Money market mutual funds are designed to be more stable than stock or bond funds.
Money market funds are designed to provide steady dividend income on the
investment amount, although the yield may fluctuate daily.
Taxable: Invest in short-term obligations from corporations.
Tax-free: Invest in short-term obligations from government entities.
D) Balanced Funds:
Invest in stocks, bonds, and cash investments, in varying proportions.
Produce dividend and capital gain distributions and share price appreciation in
proportion to their allocation among the three major asset classes.
23

24. E) Asset Allocation Funds:
In an asset allocation fund, the manager will diversify the assets among each category:
cash, bonds, and stocks and weight them according to the portfolio strategy. The
manager will redistribute the weightings according to market conditions. Portfolio
strategies generally differ according to risk tolerance:
Aggressive Growth Strategy Portfolio
Growth Strategy Portfolio
Growth and Income Strategy Portfolio
Income Strategy Portfolio
Asset allocation funds are usually made up of a combination of other mutual funds
within the same fund family. As market conditions change, the manager has the
discretion to reduce exposure in one fund and increase it in another. Just about all
mutual fund families allow you to switch between funds in the same family and class
(A, B, or C shares) without incurring any cost.
2.6 MUTUAL FUND SCHEMES BY INVESTMENT OBJECTIVES:
EQUITY FUNDS:-
These funds invest a major part of their corpus in equities. The composition of the
fund may vary from scheme to scheme and the fund manager‟s outlook on various
scrip‟s. The Equity Funds are sub-classified depending upon their investment
objective, as follows:
1. Growth Fund: Aim to provide capital appreciations over the medium to long term.
These schemes normally invest a majority of their funds in equities and are willing to
bear short term decline in value for possible future appreciation. These schemes are
not for investors seeking regular income or needing their money back in the short-
term
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25. 2. Diversified Equity Fund: Diversified equity funds are the most popular among
investors. They invest in many stocks across many sectors, and because they have the
freedom to chop and churn their portfolios as they like, diversified equity
are a good proxy to the stock market. If a general exposure to equities is what you
want, they are a good option. They can invest in all listed stocks, and even in unlisted
stocks. They can invest in which ever sector they like, in whatever ratio they like.
3. Equity -Linked Savings Schemes (ELSS): Equity – linked savings schemes
(ELSS) are diversified equity funds that additionally offer income tax benefits to
individuals. ELSS is one of the many section 80c instruments, along with the more
popular debt options like the PPF, NSC and infrastructure bonds. In this Section 80c
grouping. ELSS is unique. Being the only instrument to offer a total equity exposure.
4. Index Fund: An index fund is a diversified equity fund; with a difference- a fund
manager has absolutely no say in stock selection. At all times, the portfolio of an
index fund mirrors an index, both in its choice of stocks and their percentage holding.
As of March 2004, equity index funds tracked either the Sensex or the Nifty. So, an
index fund that mirrors the Sensex will invest only in the 30 Sensex stocks, which too
in the same proportion as their weight age in the index.
5. Sector Fund: Sector funds invest in stocks from only one sector, or a handful of
sectors. The objective is to capitalize on the story in the sectors, and offer investors a
window to profit from such opportunities. It‟s a very narrow focus, because of which
sector funds are considered the riskiest among all equity funds.
6. Mid – Cap Fund: These are diversified funds that target companies on the fast –
growth trajectory. In the long run, share prices are driven by growth in a company‟s
turnover and profits. Market players refer to them as „mid-sized companies‟ and „mid-
cap stocks‟ with size in this context being benchmarked to a company‟s market value.
So, while a typical large cap stock would have a market capitalization of over Rs
1,000 crores, a mid-cap stock would have a market value of Rs 250-2,000 crores.
DEBT FUNDS:-
These Funds invest a major portion of their corpus in debt papers. Government
authorities, private companies, banks and financial institutions are some of the major
25

26. issuers of debt papers. By investing in debt instruments, these funds ensure low risk
and provide stable income to the investors. Debt funds are further classified as:
1. Gilt Funds: Invest their corpus in securities issued by Government, popularly
known as GOI debt papers. These Funds carry zero Default risk but are associated
with Interest Rate risk. These schemes are safer as they invest in papers backed by
Government.
2. Income Funds: Income funds aim to maximize debt returns for the medium to
longer term. Invest a major portion into various debt instruments such as bonds,
corporate debentures and Government securities.
3. MIPs: Invests around 80% of their total corpus in debt instruments while the rest
of the portion is invested in equities. It gets benefit of both equity and debt market.
These scheme ranks slightly high on the risk-return matrix when compared with other
debt schemes.
4. Short Term Plans (STPs): Meant for investors with an investment horizon of 3-6
months. These funds primarily invest in short term papers like Certificate of Deposits
(CDs) and Commercial Papers (CPs). Some portion of the corpus is also invested in
corporate debentures.
5. Liquid Funds: Also known as Money Market Schemes, These funds are meant to
provide easy liquidity and preservation of capital. These schemes invest in short- term
instruments like Treasury Bills, inter-bank call money market etc. These funds are
meant for short-term cash management of corporate houses and are meant for an
investment horizon of 1day to 3 months. These schemes rank low on risk-return
matrix and are considered to be the safest amongst all categories of mutual funds.
6. Floating Rate Funds: These income funds are more insulated from interest rate
than their conventional peers. In other words, interest rate changes, which cause the
NAV of a conventional debt fund to go up or down, have little, or no, impact on
NAVs of floating rate funds.
BALANCED FUNDS:-
These funds, as the name suggests, are a mix of both equity and debt funds. They
invest in both equities and fixed income securities, which are in line with pre-defined
investment objective of the scheme. These schemes aim to provide investors with the
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27. best of both the worlds. Equity part provides growth and the debt part provides
stability in returns. Each category of funds is backed by an investment philosophy,
which is pre-defined in the objectives of the fund. The investor can align his own
investment needs with the funds objective and invest accordingly.
HYBRID FUNDS:-
1. Growth and Income Fund: Strike a balance capital appreciation and income for
the investors. In these funds portfolio is a mix between companies with good dividend
paying record and those with potential capital appreciation. These funds are less risky
than growth funds bit more than income funds.
2. Asset Allocation Fund: These funds follow variable asset allocation policy. These
move in an out of an asset class (equity, debt, money market or even non-financial
assets). Asset allocation funds are those, which follow more stable allocation policies
like balanced funds. Those, which flexible allocation policies, are like aggressive
speculative funds.
2.7 ADVANTAGES & DISADVANTAGES OF THE MUTUAL
FUND:
A) ADVANTAGES
What are the key advantages of mutual fund investing?
Diversification:
Using mutual funds can help an investor diversify their portfolio with a minimum
investment. When investing in a single fund, an investor is actually investing in
numerous securities. Spreading your investment across a range of securities can help
to reduce risk. A stock mutual fund, for example, invests in many stocks - hundreds
or even thousands. This minimizes the risk attributed to a concentrated position. If a
few securities in the mutual fund lose value or become worthless, the loss may be
offset by other securities that appreciate in value. Further diversification can be
achieved by investing in multiple funds which invest in different sectors or
categories. This helps to reduce the risk associated with a specific industry or
27

28. category. Diversification may help to reduce risk but will never completely eliminate
it. It is possible to lose all or part of your investment.
Professional Management:
Mutual funds are managed and supervised by investment professionals. As per the
stated objectives set forth in the prospectus, along with prevailing market conditions
and other factors, the mutual fund manager will decide when to buy or sell securities.
This eliminates the investor of the difficult task of trying to time the market.
Furthermore, mutual funds can eliminate the cost an investor would incur when
proper due diligence is given to researching securities. This cost of managing
numerous securities is dispersed among all the investors according to the amount of
shares they own with a fraction of each dollar invested used to cover the expenses of
the fund. What does this mean? Fund managers have more money to research more
securities more in depth than the average investor.
Convenience:
With most mutual funds, buying and selling shares, changing distribution options, and
obtaining information can be accomplished conveniently by telephone, by mail, or
online.
Although a fund's shareholder is relieved of the day-to-day tasks involved in
researching, buying, and selling securities, an investor will still need to evaluate a
mutual fund based on investment goals and risk tolerance before making a purchase
decision. Investors should always read the prospectus carefully before investing in
any mutual fund.
Liquidity:
Mutual fund shares are liquid and orders to buy or sell are placed during market
hours. However, orders are not executed until the close of business when the NAV
(Net Average Value) of the fund can be determined. Fees or commissions may or
may not be applicable. Fees and commissions are determined by the specific fund
and the institution that executes the order.
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29. Minimum Initial Investment:
Most funds have a minimum initial purchase of $2,500 but some are as low as
$1,000. If you purchase a mutual fund in an IRA, the minimum initial purchase
requirement tends to be lower. You can buy some funds for as little as $50 per month
if you agree to dollar-cost average, or invest a certain dollar amount each month or
quarter.
B) DISADVANTAGES
Risks and Costs:
Changing market conditions can create fluctuations in the value of a mutual fund
investment. There are fees and expenses associated with investing in mutual funds
that do not usually occur when purchasing individual securities directly. As with any
type of investment, there are drawbacks associated with mutual funds.
No Guarantees: The value of your mutual fund investment, unlike a bank deposit,
could fall and be worth less than the principle initially invested. And, while a money
market fund seeks a stable share price, its yield fluctuates, unlike a certificate of
deposit. In addition, mutual funds are not insured or guaranteed by an agency of the
U.S. government. Bond funds, unlike purchasing a bond directly, will not re-pay the
principle at a set point in time.
The Diversification "Penalty.": Diversification can help to reduce your risk of loss
from holding a single security, but it limits your potential for a "home run" if a single
security increases dramatically in value. Remember, too, that diversification does not
protect you from an overall decline in the market.
Costs: In some cases, the efficiencies of fund ownership are offset by a combination
of sales commissions, 12b-1 fees, redemption fees, and operating expenses. If the
fund is purchased in a taxable account, taxes may have to be paid on capital gains.
Keep track of the cost basis of your initial purchase and new shares that are acquired
by reinvesting distributions. It's important to compare the costs of funds you are
considering. Always look at "net" returns when comparing fund performances. Net
return is the bottom line; an investment's true return after all costs is deducted.
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30. 2.8 MUTUAL FUND PLAYERS:
The Indian mutual fund industry is mainly divided into three kinds of categories.
These categories include public sector players, nationalized banks and private sector
and foreign players.
UTI Mutual Fund was one of the leading Mutual Fund companies in India till May
2006with a corpus of more than Rs.31, 000 Crores and it is the public sector mutual
fund. Bank of Baroda, Punjab National Bank, Can Bank and SBI are the major
nationalized banks mutual fund.
At present mutual fund industry is mainly dominated by private and foreign sector
players which include major players like Prudential ICICI Mutual Fund, HDFC
Mutual Fund, Reliance Mutual Fund etc. are private sector mutual funds players while
Franklin Templeton etc. are major foreign mutual fund players. At present there are
more than 33players operating in Indian. The brief introduction of major players is
given as follows.
ABN AMRO Mutual Fund:
ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN AMRO Trustee
(India)Pvt. Ltd. as the Trustee Company. The AMC, ABN AMRO Asset Management
(India)Ltd. was incorporated on November 4, 2003. Deutsche Bank A G is the
custodian of ABNAMRO Mutual Fund.
Birla Sun Life Mutual Fund:
Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life
Financial. Sun Life Financial is a global organization evolved in 1871 and is being
represented in Canada, the US, the Philippines, Japan, Indonesia and Bermuda apart
from India. Birla Sun Life Mutual Fund follows a conservative long-term approach to
investment. Recently it crossed AUM of Rs. 10,000 Crore.
Bank of Baroda Mutual Fund:
Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30, 1992
under the sponsorship of Bank of Baroda. BOB Asset Management Company Limited
is the AMC of BOB Mutual Fund and was incorporated on November 5, 1992.
Deutsche Bank AG is the custodian.
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31. HDFC Mutual Fund:
HDFC Mutual Fund was setup on June 30, 2000 with two sponsors namely Housing
Development Finance Corporation Limited and Standard Life Investments Limited.
HSBC Mutual Fund:
HSBC Mutual Fund was setup on May 27, 2002 with HSBC Securities and Capital
Markets (India) Private Limited as the sponsor. Board of Trustees, HSBC Mutual
Fund acts as the Trustee Company of HSBC Mutual Fund.
ING Vysya Mutual Fund:
ING Vysya Mutual Fund was setup on February 11, 1999 with the same named
Trustee Company. It is a joint venture of Vysya and ING. The AMC, ING Investment
Management (India) Pvt. Ltd. was incorporated on April 6, 1998.
Prudential ICICI Mutual Fund:
The mutual fund of ICICI is a joint venture with Prudential PLC of America; one of
the largest life insurance companies in the US of A. Prudential ICICI Mutual Fund
was setup on 13th of October 1993 with two sponsors, Prudential PLC. and ICICI
Ltd. The Trustee Company formed is Prudential ICICI Trust Ltd. and the AMC is
Prudential ICICI Asset Management Company Limited incorporated on 22nd of June
1993.
Sahara Mutual Fund:
Sahara Mutual Fund was set up on July 18, 1996 with Sahara India Financial
Corporation Ltd. as the sponsor. Sahara Asset Management Company Private Limited
incorporated on August 31, 1995 works as the AMC of Sahara Mutual Fund. The
paid-up capital of the AMC stands at Rs 25.8 crore.
State Bank of India Mutual Fund:
State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to launch
offshore fund, the India Magnum Fund with a corpus of Rs. 225 cr. approximately.
Today it is the largest Bank sponsored Mutual Fund in India. They have already
launched 35Schemes out of which 15 have already yielded handsome returns to
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32. investors. State Bank of India Mutual Fund has more than Rs. 5,500 Crore as AUM.
Now it has an investor base of over 8 Lash spread over 18 schemes.
Tata Mutual Fund:
Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act, 1882. The sponsor for
Tata Mutual Fund is Tata Sons Ltd., and Tata Investment Corporation Ltd. The
investment manager is Tata Asset Management Limited and its Tata Trustee
Company Pvt. Limited. Tata Asset Management Limited is one of the fastest in the
country with more than Rs.7, 703 Crore (as on April 30, 2005) of AUM.
Kotak Mahindra Mutual Fund:
Kotak Mahindra Asset Management Company (KMAMC) is a subsidiary of KMBL.
It is presently having more than 1, 99,818 investors in its various schemes. KMAMC
started its operations in December 1998. Kotak Mahindra Mutual Fund offers
schemes catering to investors with varying risk - return profiles. It was the first
company to launch dedicated gilt scheme investing only in government securities.
Reliance Mutual Fund:
Reliance Mutual Fund (RMF) was established as trust under Indian Trusts Act, 1882.
The sponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co.
Limited is the Trustee. It was registered on June 30, 1995 as Reliance Capital Mutual
Fund, which was changed on March 11, 2004. Reliance Mutual Fund was formed for
launching of various schemes under which units are issued to the Public with a view
to contribute to the capital market and to provide investors the opportunities to make
investments in diversified securities.
Standard Chartered Mutual Fund:
Standard Chartered Mutual Fund was set up on March 13, 2000 sponsored by
Standard Chartered Bank. The Trustee is Standard Chartered Trustee Company Pvt.
Ltd. Standard Chartered Asset Management Company Pvt. Ltd. is the AMC which
was incorporated with SEBI on December 20, 1999.
Franklin Templeton India Mutual Fund:
The group, Franklin Templeton Investments is a California (USA) based company
with a global AUM of US$ 409.2 bn. (as of April 30, 2005). It is one of the largest
32

33. financial services groups in the world. Investors can buy or sell the Mutual Fund
through their financial advisor or through mail or through their website. They have
Open end Diversified Equity schemes, Open end Sector Equity schemes, Open end
Hybrid schemes, Open end Tax Saving schemes, Open end Income and Liquid
schemes, closed end Income schemes and Open end Fund of Funds schemes to offer.
Morgan Stanley Mutual Fund India:
Morgan Stanley is a worldwide financial services company and its leading in the
market in securities, investment management and credit services. Morgan Stanley
Investment Management (MISM) was established in the year 1975. It provides
customized asset management services and products to governments, corporations,
pension funds and non-profit organizations. Its services are also extended to high net
worth individuals and retail investors. In India it is known as Morgan Stanley
Investment Management Private Limited (MSIM India) and its AMC is Morgan
Stanley Mutual Fund (MSMF). This is the first close end diversified equity scheme
serving the needs of Indian retail investors focusing one long-term capital
appreciation.
Escorts Mutual Fund:
Escorts Mutual Fund was setup on April 15, 1996 with Escorts Finance Limited as its
sponsor. The Trustee Company is Escorts Investment Trust Limited. Its AMC was
incorporated on December 1, 1995 with the name Escorts Asset Management
Limited.
Benchmark Mutual Fund:
Benchmark Mutual Fund was setup on June 12, 2001 with Niche Financial Services
Pvt. Ltd. as the sponsor and Benchmark Trustee Company Pvt. Ltd. as the Trustee
Company. Incorporated on October 16, 2000 and headquartered in Mumbai,
Benchmark Asset Management Company Pvt. Ltd. is the AMC.
Can bank Mutual Fund:
Can bank Mutual Fund was setup on December 19, 1987 with Canada Bank acting as
the sponsor. Can bank Investment Management Services Ltd. incorporated on March
2, 1993is the AMC. The Corporate Office of the AMC is in Mumbai.
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34. Cholas Mutual Fund:
Cholas Mutual Fund under the sponsorship of Cholas Mandela Investment & Finance
Company Ltd. was setup on January 3, 1997. Cholas Mandela Trustee Co. Ltd. is the
Trustee Company and AMC is Cholas Mandela AMC Limited.
LIC Mutual Fund:
Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989. It
contributed Rs. 2 Crore towards the corpus of the Fund. LIC Mutual Fund was
constituted as a Trust in accordance with the provisions of the Indian Trust Act, 1882.
. The Company started its business on 29th April 1994. The Trustees of LIC Mutual
Fund have appointed Jevons Bema Sabayon Asset Management Company Ltd as the
Investment Managers for LIC Mutual Fund.
GIC Mutual Fund:
GIC Mutual Fund, sponsored by General Insurance Corporation of India (GIC), a
Government of India undertaking and the four Public Sector General Insurance
Companies, viz. National Insurance Co. Ltd (NIC), The New India Assurance Co.
Ltd. (NIA), The Oriental Insurance Co. Ltd (OIC) and United India Insurance Co.
Ltd. (UII) and is constituted as a Trust in accordance with the provisions of the Indian
Trusts Act,1882.
34

35. 2. 9 INTRODUCTION TO THE COMPANY
Contact Person Mr. Ashwani Pratap Singh
Address NJ Center, 901, Udhna Udhyog Nagar Sangh Commercial Complex,
Central Road No.10, Udhna.
State Gujarat
Country India
Mobile 9312874636
 COMPANY PROFILE:
NJ India Invest Pvt. Ltd. is one of the leading advisors and distributors of financial
products and services in India.
Established in year 1994, NJ has over a decade of rich exposure in financial
investments space and portfolio advisory services. From a humble beginning, NJ over
the years has evolved out to be a professionally managed, quality conscious and
customer focused financial / investment advisory & distribution firm.
We are looking for candidates. We have opening for Direct Sales, Alternate Sales,
Channel Sales, Mutual Fund, Demit, IPV, KYC, AMFI, NCFM, NISM, and CFP.
35

36.  INTRODUCTION:
A evolving, emerging & enterprising group with its' roots in the financial services
sector and today expanding into newer horizons with great passion.
The vision of the group is to be leaders in businesses driven by customer satisfaction,
commitment to excellence and passion for continued value creation for all
stakeholders. This vision has helped us grow and build the trust of our customers and
associates which is at the cornerstone of everything we do. Trust is also at the heart of
our success and the driver for passion for our success.
NJ Group is a leading player in the Indian financial services industry known for its'
strong distribution capabilities. The journey of NJ began in 1994 with the
establishment of NJ India Invest Pvt. Ltd., the flagship company, to cater to investor
needs in the financial services industry. Today, the Wealth Advisory Network, also
known as the NJ Funds Network, started in 2003 is among the largest networks of
wealth advisors in India.
Over the years, NJ Group has diversified into other businesses and today has the
presence in businesses ranging from wealth advisory network, asset management, real
estate, insurance broking, training & development and technology. Our rich
experience in financial services, combined with execution capabilities and strong
process & system orientation, has enabled us to shape a rising growth trajectory in our
businesses.
NJ Group is based out of Surat in Gujarat (India) and has presence in over 100*
locations in India and has over 1,000* employees.
 HISTORY NJ INDIA INVESTS PVT. LTD
This is one of the leading advisors and distributors of financial products and services
in India. Established in year 1994, NJ has over a decade of rich exposure in financial
investments space and portfolio advisory services. From a humble beginning, NJ over
36

37. the years has evolved out to be a professionally managed, quality conscious and
customer focused financial investment advisory & distribution firm.
NJ prides in being a professionally managed, quality focused and customer centric
organization. The strength of NJ lies in the strong domain knowledge in investment
consultancy and the delivery of sustainable value to clients with support from cutting-
edge technology platform, developed in-house by NJ.
At NJ we believe in …
• having single window, multiple solutions that are integrated for simplicity and
sapience
• making innovations, accessions, value-additions, a constant process
• providing customers with solutions for tomorrow which will keep them above the
curve, today
NJ has over INR 30 billion* of mutual fund assets under advice with a wide presence
in over 135 locations* in 21states* in India. The numbers are reflections of the trust,
commitment and value that NJ shares with its clients.
NJ Wealth Advisors, a division of NJ, focuses on providing financial planning and
portfolio advisory services to premium clients of high net-worth. At NJ Wealth
Advisors, we have developed processes that focus on providing the best in terms of
the advice and the ongoing management of your portfolio and financial plans.
At NJ, our experience, knowledge and understanding enables us to provide you with
the expected value, in an enhanced way. As a leading player in the industry, we
continue to successfully meet the expectations of our clients, through meaningful and
comprehensive solutions offered by NJ Wealth Advisors.
 VISION & MISSION OF NJ INDIA INVEST
VISION:
To be the leader in our field of business through,
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38. Total Customer Satisfaction
Commitment to Excellence
Determination to Succeed with strict adherence to compliance
Successful Wealth Creation of our Customers
MISSION:
Ensure creation of the desired value for our customers, employees and associates,
through constant improvement, innovation and commitment to service & quality.
Top povide solutions which meet expectations and maintain high professional &
ethical standards along with the adherence to the service commitments
 PHILOSOPHY
At NJ India invest pvt ltd. Our Service and Investing philosophy inspire and shape the
thoughts, beliefs, attitude, actions and decisions of our employees. If NJ would
resemble a body, our philosophy would be our spirit which drives our body.
SERVICE PHILOSOPHY:
Our primary measure of success is customer satisfaction …
We are committed to provide our customers with continuous, long-term
improvements and value-additions to meet the needs in an exceptional way. In our
efforts to consistently deliver the best service possible to our customers, all employees
of NJ will make every effort to:
Think of the customer first, take responsibility, and make prompt service to the
customer a priority
Deliver upon the commitments & promises made on time • anticipate, visualize,
understand, meet, exceed our customer‟s needsProjectsformba.blogspot.com
Bring energy, passion & excellence in everything we do
Be honest and ethical, in action & attitude, and keep the customer‟s interest supreme
38

39. Strengthen customer relationships by providing service in a thoughtful & proactive
manner and meet the expectations, effectively
INVESTING PHILOSOPHY:
We aim to provide Need-based solutions for long-term wealth creation We aim to
provide all customers of NJ, directly or indirectly, with true, unbiased, need-based
solutions and advice that best meets their stated & un-stated needs. In our efforts to
provide quality financial & investment advice, we believe that
Clients want need-based solutions, which fits them
Long-term wealth creation is simple and straight
Asset-Allocation is the ideal & the best way for long-term wealth creation
Educating and disclosing all the important facets which the customer needs to be
aware of, is important
The solutions must be unbiased, feasible, practical, executable, measurable and
flexible
Constant monitoring and proper after-sales service is critical to complete the on-
going process
At NJ our aim is to earn the trust and respect of the employees, customers partners,
regulators, industry members and the community at large by following our service
and investing philosophy with commitment and without exceptions.
 MANAGEMENT
The management at NJ brings together a team of people with wide experience and
knowledge in the financial services domain. The management provides direction and
guidance to the whole organization. The management has strong visions for NJ as a
globally respected company providing comprehensive services in financial sector.
The „Customer First‟ philosophy in deeply ingrained in the management at NJ. The
aim of the management is to bring the best to the customers in terms of
39

40. Range of products and services offered
Quality Customer Service
All the key members of the organization put in great focus on the processes & system
under the diverse functions of business. The management also focuses on utilizing
technology as the key enabler for all the activities and to leverage the technology for
enhancing overall customer experience.
The key members of the management are:
Mr. Neeraj Choksi Jt. (Managing Director)
Mr. Jignesh Desai Jt. (Managing Director)
Sales Team:
Mr. Misbah Baxamusa (National Head)
Mr. Naveen Rathod
V.P
Executive Team :
Mr. Shirish Patel (Information Technology)
Mr. Vinayak Rajput (Finance & Operations)
Mr. Abhishek Dubey (Marketing & Development)
Mr. Viral Shah (Research)
Mr. Dhaval Desai (Human Resources)
40

41.  SERVICE STANDARDS SERVICE
SERVICE STANDARDS Service in words, service in action Service is the key to
unlocking customer satisfaction, which again is key for sustain ability of any business.
At NJ we understand this very well. NJ has set strict processes in place to deliver
quality services to customers. At NJ strict quality service standards are set and a well-
defined process is established and followed religiously by our quality customer
service teams. Performance is evaluated on a frequent basis and glitches are ironed
out.
But quality service also involves quality people in addition to processes. NJ gives
significant focus to the proper training and development of the people involved in the
service delivery chain. Further we,
. Have well-defined "Privacy Policy" to keep clients‟ information confidential &
internal audits done on the same at regular intervals
Receive various statistics which are analyzed on an ongoing basis to improve the
service standards.
We are committed to improve and enhance our services and undertake new service
initiatives. Such and other services differentiate us with other service providers in the
industry.
Our Service Commitments …
The service commitments are to guide the actions of the people at NJ. Clearly stated,
customers can freely communicate any such actions/events wherein they feel that any
of the following commitments have been breached / compromised. At NJ we desire to
honourour commitments at all points of time and to all our customers without any
bias.
 To provide customer- focused need-based valued services
 To provide reliable, accurate and timely information
 To maintain all records in privacy
 To optimize services/benefits at least justifiable cost
 To develop and grow the customers‟ business
 To provide constructive after sales service
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42.  Life To honor our service commitments
 PRODUCTS
Life Vista:
Vista Life is counted not in years, but in moments. Moments of truth, joy,
achievement and satisfaction. Of peace, tranquility, and freedom. At NJ, we bring
such moments to life.
Connecting Goals:
Life Vista is for individuals who are looking for goal oriented planning. The client
would typically have a family, with multiple goals directed at meeting the
obligations/goals in life. Meeting obligations like education and marriage of children,
meeting basic needs like purchase of property, or business assets, would ideally be on
agenda for such clients.
 PROCESS
Process of Connecting Goals
With Life Vista we take the onus to help you achieve your goals in life. Our team
would undertake a detailed financial planning exercise for you. An ideal personalized,
financial plan would then be recommended after detailed study. The team would then
constantly monitor the progress of your plan. Any changes in the environment that
may happen during the interim period would be incorporated into your plan. At Life
Vista our objective is to connect you with your goals and your dreams with reality.
How we can help you
We will do a detailed study of your goals and objectives in life and would help you by
devising a comprehensive plan to help you achieve them. We would also regularly
monitor your plans to make sure that you are always on track to achieve your goal.
42

43. Asset Vista
Wealth is not an end. Neither is it a beginning. Wealth is a process, a journey.
A journey of power, achievement and responsibility.
At NJ we ensure that this journey continues and grows.
Creating Wealth:
Asset Vista is ideal for individuals or corporate looking for portfolio management
services. Typically, the client would have sizeable investments made into multiple
assets and/or products. The need for Asset Vista may arise due to time constraints, the
size of the investments, or the need for professional advice. The objective may be to
have effective management of portfolio aimed at capital creation with capital
protection at the backdrop.
Process of Wealth Creation:
Asset Vista sees your portfolio as a reflection of your profile aimed to fulfill the
identified objectives. Asset Vista would include a detailed risk assessment and
recommendation of an ideal asset allocation for you. Post asset allocation, a portfolio
would be prepared and dynamically managed on an ongoing basis. Asset Vista would
ensure that your portfolio is logical, strategic, and in tune with the changing
environment and always on track to achieve the defined objectives.
How we can help you
We will seek to manage and monitor your portfolio as per your objectives and your
risk profile. We would manage your portfolio the Asset Allocation way which is the
most effective & ideal way to manage investments. You would also have access to
consolidated portfolio reports that enable you to see all your investments into multiple
avenues at a single place.
 SERVICES PROVIDED TO CLIENT
SERVICES PROVIDED TO CLIENT
43

44. As NJ Wealth Advisor‟s Global Private Client, you get comprehensive set of services
that ensure you stay informed, insightful, in command, of your investments at all
times.
Comprehensive Financial Planning:
We all have many responsibilities and goals in our lives. We have dreams and
aspirations for a better future. But quite often we are not sure as to how we will fulfill
these goals and aspirations. Life changes over time. We may never be sure what today
holds for us tomorrow. What if something goes wrong? How do we make sure that we
get what we wish? A comprehensive Financial Plan is what you need. At NJ Wealth
Advisors we offer you with Comprehensive Financial Planning solutions which would
involve …
A detailed study of your goals
Preparation of a comprehensive Financial Plan
Monitoring of the Financial Plan on an on-going basis
At NJ Wealth Advisors we offer you with comprehensive Financial Planning Services
under the product – LIFE VISTA.
Quality Portfolio Advisory:
Making money is easy. Managing money is difficult. And managing money in
today‟s complex financial markets with multiple products on an ongoing basis
become seven more difficult.
As investors we often may feel the lack of time and energy to undertake monitoring
and managing of our investments in multiple avenues. This requires both dedicated
efforts and skills in portfolio management.
At NJ Wealth Advisors we realized the need for quality, unbiased portfolio advisory
services. At NJ we would aim to manage your portfolio with a superior, time tested
and much effective way of Asset Allocation keeping in mind your risk profile.
At NJ Wealth Advisors we offer you with quality Portfolio Advisory Services under
the product – ASSET VISTA
44

45. Consolidated Reporting:
Quality online Wealth Account:
As a premium client you would have access to one of the best online investment
accounts that offer comprehensive reports, many of which are unique in nature and
give valuable insights on our investments. Our online Wealth Account covers almost
all the investment avenues that you may have:
 Mutual Funds – All AMCs, All Schemes
 Direct Equity
 Life Insurance
 Physical Assets – Gold and Property
 Private Equity – Business
 Debt Products
o Bank Deposits and Company Deposits
o RBI / Infrastructure Bonds
o Postal Savings – KVP, MIS, NSC
o Debentures
o Small Savings – PPF, NSS
You would have access to Consolidated Net Asset Reports which would give you a
single view of all your investments into different avenues as given above.
Further, within each of the Asset class we have many more reports and utilities. Some
of the reports covered are …
Consolidated:
Consolidated Asset Allocation, Consolidated Net Asset, Interest Income, Profit &
Loss
Mutual Funds:
Valuation, Transaction, Profit & Loss, Performance, Portfolio reports like - AMC
/Sector / Equity / Credit / Debt Exposure, Weighted Average Maturity, Dividend
history, etc
Direct Equity:
Demand accounts, Transaction, Valuation, Profit & Loss
45

46. Life Insurance:
Policy Report, Premium Reminder, Cash Flow
Debt:
Transaction, Interest Income, Maturity reports for different.
46

47. CHAPTER 3
3. RESEARCH METHODOLOGY
 RESEARCH PROBLEM:
To know investor‟s behavior regarding mutual fund as an investment avenue.
 RESEARCH OBJECTIVES (PRIMARY) :
To know investor‟s behavior regarding mutual fund as an investment avenue.
 RESEARCH OBJIECTIVES (SECONDARY) :
To identify the objectives of the investors for investing in a mutual fund.· To
identify the investment patterns of investors.· To find out which scheme is better
according to investors.· To study investors‟ perceptions about level of satisfaction
while investing in mutual funds.
 RESEARCH PLAN:
DATA SOURCE
We have used primary data source to collect the data regarding investors‟ behavior for
mutual fund as an investment avenue. The survey was conducted across Jammu.·
RESEARCH APPROACH
Survey approach was under taken to know the behavior of investor regarding mutual
fund as an investment avenue.·
RESEARCH INSTUMENT
Questionnaire was the instrument of collecting data.
 SAMPLING PLAN
Sample unit:
47

48. All the investors who are occasionally or regularly investing in financial assets and
non-financial assets
Sample size:
Survey population comprises of the total reputed businessman, Professionals, and
individual investor was approx 70.
Sampling method:
In this study as suggested by the company a sample of reputed Businessman,
Professionals, and individual investor‟s was selected and it was selected through non-
probability, convenience sampling method. Because all the Businessman,
Professionals, and individual investor‟s could not be interviewed as per our
requirement but according to their availability and accessibility we meet them.
Contact method:
The total sample size for survey was 70 investors by personal interview.
3.1 DATA COLLECTION TECHNIQUES AND TOOLS:
This study is completely based on the secondary data. This is collected from various
sources especially from the journal – Mutual Fund- Insight based o value research
Magazines. And addition to others journals, magazines, articles, books and the
publisher and unpublished documents of the mutual funds have been consider in the
research.
3.2: RESEARCH DESIGN:
The research design is the conceptual framework within which researcher study is
conducted and it construct the blue print for collection of data, measurement of data,
statistical tools for analysis and analysis of variance. Research design included an
online of what the researcher will do from writing the hypothesis and its operational
implication to the final analysis of data.
48

49. Decisions regarding what, when, how much, by what means concerning an inquiry or
a research study constitute a research design. Further more research design means
arrangement of condition for collection and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in procedure. Good
researcher design is often features like flexible, appropriate, efficient and economical.
Here hypothesis testing research is those where the researcher test the hypothesis of
casual relationship between variables.
Fund managers of the assets management company also do the researcher to identify
the market and would find period to buy, to hold and to sell the scrip. Fund managers
having foods researcher team who continuous analysis of economic market,
fundamental analysis, efficient market and technical analysis of the particular index.
Today researcher team should identify the international financial market and how
international financial instruments value could identified. Financial crisis affect
market total risk and total risk and total return, its indicate how to diversified the
portfolio, how to totally remove the unsystematic risk.
Researcher decided proper plan to action and define variable. Variable also identified
dependent and independent. Researcher specified research processing and analyzing
of the data.
3.3 SAMPLING PLAN:
Sample unit:
All the investors who are occasionally or regularly investing in financial assets and
non-financial assets
Sample size:
Survey population comprises of the total reputed businessman, Professionals, and
individual investor was approx 70.
Sampling method:
In this study as suggested by the company a sample of reputed Businessman,
Professionals, and individual investor‟s was selected and it was selected through non-
probability, convenience sampling method. Because all the Businessman,
49

50. Professionals, and individual investor‟s could not be interviewed as per our
requirement but according to their availability and accessibility we meet them.
Contact method:
The total sample size for survey was 70 investors by personal interview.
50

51. CHAPTER 4
4: SURVEY ANALYSIS AND INTERPRETATION
Gender
There are 15 females and 55 males as respondents
Male -55
Female -15
Q1 what is your age?
AGE PEOPLE
20-30 20
30-40 25
40-50 13
50-60 10
60- 2
ABOVE
TOTAL 70
30
25
20
15
PEOPLE
10
5
0
20-30 30-40 40-50 50-60 60- ABOVE
51

52. From the above table we can say that awareness for investment in youngster has been
increased & that‟s why out of 70, 20 are youngster who do investment and they come
in the age group of 20-30, then comes age group of 30-40 from which 25 people do
investment and other age group are 40-50 where they do investment of 13, 10 belongs
to age group of 50-60 they do the investment, and 2 belongs to the careful for their
investment.
Q 2. What is your profession?
PROFESSION N0. OF PEOPLE
BUSINESS 4
JOB IN PRIVATE 14
SECTOR
JOB IN PUBLIC 35
SECTOR
OTHERS 17
TOTAL 70
N0. OF PEOPLE
40
35
30
25
20
15
N0. OF PEOPLE
10
5
0
BUSINES S JOB IN JOB IN PUBLIC OTHERS
PRIVATE SECTOR
SECTOR
Now 70 people doing investment out of which 35 people are from public sector, 14
are from private sector, 4 are having their business and 17 are others which include
retired people, housewives and students. Reason for investment by all people was to
52

53. secure the future and reason given by people doing the job in private was their higher
salary and unsecured job.
Q 3. Do you invest in mutual fund?
ANS: PEOPLE
YES 21
NO 49
TOTAL 70
PEOPLE
YES
NO
From 70 people 21 of them are doing investment in mutual fund and 49 of them are
not investing in mutual fund but they do investment in other sector for which
information is given in the next question.
53

54. Q.4 If you are not investing in mutual fund then where do you invest (in
proportion)?
PARTICULARS PEOPLE
INSURANCE 20
EQUITY MARKET 10
GOVT. SCHEME 30
REAL ESTATE 5
COMMODITIES 5
TOTOAL 70
PEOPLE
35
30
25
20
15
10
5 PEOPLE
0
People who were not investing in mutual fund they do invest in sectors like insurance,
equity market, government schemes (includes banks, bonds & other scheme ), real
estate, commodities even people those who do invest in mutual fund they also invest
in different sectors. Out of 100%, 10% people do invest in equity market, 20% invest
in insurance, 30% in government scheme, 5% do invest in real estate and 5% do
invest in commodities. People do invest in equity market due to higher returns
available in it.
54

55. Q.5 Rank the company according to your preference from top (1) to
bottom (11)?
PARTICULARS PEOPLE
RELIANCE 11
BIRLA 3
TATA 3
LOTUS 0
SBI 31
HDFC 0
ICICI 21
OTHERS 1
TOTAL 70
PEOPLE
RELIANCE
BIRLA
TATA
LOTUS
SBI
HDFC
ICICI
OTHERS
People who were investing in mutual fund had given the rank to different mutual fund
companies on the basis of what they think about that particular company and had
given ranks to different companies. Here in this data 31 people had SBI as 1” rank
and the second highest is ICICI where 21 people has given it as 1” rank and the
reasons behind giving 1” rank were their return, good credit in market and tax saving
benefits.
55

56. Q.6 Do you compare the returns or other benefits of MF schemes before
investing?
ANNUAL REPORT CHECKING
PARTICULARS PEOPLE
YES 28
NO 42
TOTAL 70
PEOPLE
YES
NO
It is necessary to compare the returns and benefits because people do invest in for
higher returns so they compare with other companies also. Here 28 people compare
the returns and other benefits of mutual fund scheme before as well as after investing
to see how their investment is spread over in different segments.
56

57. Q.7 which factors do you consider while investing in MF for safety and liquidity?
SAFETY
PARTICULARS PEOPLE
EXT. IMP 48
IMPORTANT 22
NEUTRAL 0
UNIMPORTANT 0
EXT.UNIMP 0
TOTAL 70
SAFETY PEOPLE
60
50
40
30
20
10 SAFETY PEOPLE
0
Investors consider different factors before investment and for many reasons they
invest in different scheme of mutual fund. Here reason for investment is safety of
their money and safety of their future so 48 people considers it ext important, while
22 people says it‟s important for their investment.
57

58. LIQUIDITY
PARTICULARS PEOPLE
EXT. IMP 6
IMPORTANT 34
NEUTRAL 25
UNIMPORTANT 05
EXT.UNIMP 0
TOTAL 70
LIQUIDITY PEOPLE
40
35
30
25
20
15
10
LIQUIDITY PEOPLE
5
0
Above graph reveals that some of the investors means 6 are giving liquidity more
emphasis because by the way of open ended scheme they can any time liquid their
position, 5 investors had given negative response about it while 34 of the investors are
giving them least importance and 25 are natural to it.
58

59. Q.8 how do you monitor the following?
NAV
PATICULARS PEOPLE
MONTHLY 20
QUARTERLY 26
HALF YEARLY 12
YEARLY 7
NEVER 5
TOTAL 70
NAV PEOPLE
30
25
20
15
10
NAV PEOPLE
5
0
NAV is the net asset value of your investment in units that comes of every week by
this you can come to know how much of your investment has been increased so it
becomes necessary to monitor but period of monitoring depends on investor. Here 20
of investor do monitor monthly, 26 of investor monitors quarterly, 12 monitor half
yearly, 7 monitor yearly, 5 never monitor.
59

60. PROFILE OF FUND MANGAGER
PATICULARS PEOPLE
MONTHLY 1
QUARTERLY 4
HALF YEARLY 15
YEARLY 28
NEVER 22
TOTAL 70
PROFILE OF FUND MANGAGER
PEOPLE
30
25
20
15
10
PROFILE OF FUND
5
MANGAGER PEOPLE
0
Fund manager is the person who manage the fund of investor who had invested their
money in their company it is necessary that the fund manager should be qualified
enough to managers the fund of the investor because if he fails to manage the fund the
investors money is not secure. So 1 investor monitor profile monthly, 4 do quarterly,
28 do yearly and 22 never monitor the profile before investing.
60

61. Q.9 Do you check out the annual reports of your scheme to evaluate the
performance of your scheme ?
PARTICULARS PEOPLE
YES 61
NO 9
TOTAL 70
PEOPLE
YES
NO
In the annual report of the scheme all the information of that particular scheme are
given information about the performance of the scheme, position of the scheme in the
market, portfolio of the scheme that where the investment has been done under this
scheme, profile of the fund manager is also given by this the investors can come to
know the position and qualification of the fund manager. So most of the investors are
monitoring the annualreport.61 investors do monitor the annual report of the scheme,
9 do not monitor the annual report.
61

62. Q10. Objectives for investment in mutual fund schemes (rank them from 1most
preferred to 4 least preferred).
OBJECTIVES FOR INVESTMENT:
PARTICULARS RANK 1 RANK 2 RANK 3 RANK 4 TOTAL
RETURN/ 15 34 21 0 70
DIVIDEND
APPRECIATION 13 26 30 1 70
TAX 42 10 17 1 70
LIQUIDITY 0 0 2 68 70
TOTAL 70 70 70 70
80
70
60
50 RETURN/ DIVIDEND
40 APPRECIATION
30 TAX
LIQUIDITY
20
10
0
RANK 1 RANK 2 RANK 3 RANK 4 TOTAL
Here in this question the investors have ranked the factors on the basis of their
objectives that for what reason they had invested in that particular scheme. 15 of
investors had given return/dividend 1st rank because every investor want benefits for
the risk they had taken by investing in that scheme, 13 of investors had given
appreciation 1st rank because they want something more including their invested
amount.42 of investor has given tax saving as 1strank because while investing in
some particular scheme their amount invested is appreciated as well as they get the
tax benefit,0 has given 1st rank to liquidity….
62

63. CHAPTER 5
5: CONCLUSIONS AND SUGGESTIONS
A) CONCLUSION
Mutual fund has become one of the important sources for investing. With the
convenience of investing in bunch of securities under expert guidance with variety of
risk and return combination.
Gone are the days of investing blindly or solely on the recommendation of your
broker or financial planner. You have all of the information you need, and it is all just
a click away.
Take some time to get to know the tools. Experiment with a few hypothetical trades,
and track your results in one of your portfolios. And most importantly, never stop
learning.
This project gave me a great learning experience and at the same time it gave me
enough scope to implement my analytical ability. The analysis and advice presented
in this project report is based on market research on the saving and investment
practices of the investors and preferences of the investors for investment in Mutual
Funds.
In the project consists of data and its analysis collected through survey done on 70
people. For the collection of Primary data I made a questionnaire and surveyed of 70
people. This project covers the topic “THE MUTUAL FUND AS AN INVESTMENT
AVENUE AT N. J. INDIA INVEST PVT LTD”. The data collected has been well
organized and presented
63

64. B) SUGGESTIONS
Mutual funds outperform every other investment option on three parameters, it
secures high whereas it‟s moderate at one comparing it with the other options, we find
that equities gives us high returns with low safety. Even the convenience involved
with investing in equities is just moderate.
The other option offering high return is real estate but that even comes with high
volatility and moderate safety level, even the liquidity and convenience involved are
too low. Gold have always been a favorite among Indians but when we look at it as an
investment option them it definitely doesn‟t gives a very bright picture. Although it
ensures high safety but the returns generated and liquidity are moderate.
Similarly, the other investment options are not at par with mutual funds and serve the
needs of only a specific customer group. Straightforward, we can say that mutual fund
emerges as a clear winner among all the options available.
• Give more importance to safety and return attributes because Independent Financial
Advisors are more concern about safety and of giving more benefit of the investments
to their clients.
• Independent Financial Advisors who are not suggesting their clients to invest in
mutual funds due to their lack of knowledge of mutual funds. So, NJ India Invest
should arrange mutual fund awareness Program of their and other independent
Financial Advi- sors on regular basis.
• By providing better service NJ India Invest should try to attract the Independent
Financial Advisors to join with them.
• NJ India Invest should arrange special mutual fund awareness program for general
public. So they can directly work with NJ India Invest as direct client.
• Majority of the Government employees take into consideration tax benefits before
making any investment. So NJ India Invest should highlight tax benefits in mutual
funds.
64

65. ANNEXURE
QUESTIONNAIRE ON MUTUAL FUND
1. NAME: ____________________________________________
2. ADDRESS: ____________________________________________
____________________________________________
3. PHONE NO: ____________________________________________
4. E-MAIL ID: ____________________________________________
5. AGE:
( ) 20-30 ( ) 30-40
( ) 40-50 ( ) 50-60
( ) 60-70 ( ) 60 above
6. GENDER:
( )M ( )F
7. What is your profession?
( ) Business
( ) Job in private sector
( ) Job in public sector
( ) other
8. Do you invest in MF?
( ) Yes
( ) No
65

66. 9. If you are not investing in MF then where do you invest (in
Proportion)?
( ) Insurance
( ) Equity market
( ) Gove schema
( ) Real Estate
( ) Commodities
10. Rank the company according to your preference from top (1) to
Bottom (11)?
( ) Reliance ( ) SBI
( ) Birla ( ) HDFC
( ) Tata ( ) ICICI
( ) Lotus ( ) Other
11. Do you compare the returns or other benefits of MF schemes before?
Investing?
( ) Yes ( ) No
12. Which factors do you consider while investing in mutual fund?
Tic any one:
PARTICULARS SAFETY LIQUDITY
EXT. IMP
IMPORTANT
NEUTRAL
UNIMPORTANT
EXT. UNIMP
66

67. 13. How do you monitor the following?
Tic any one
PARTICULARS NAV PROFILE OF FUND MANAGER
MONTHLY
QUARTERLY
HALF YEAR
YEARLY
NEVER
14. Do you check out the annual report of your scheme to evaluate the
Performance of your scheme?
( ) Yes ( ) No
15. Objectives for investment in MF schemes (Rank them from 1 most
Preferred to 4 least preferred.)
Objectives for investment
PARTICULARS RANK 1 RANK 2 RANK 3 RANK 4 TOTAL
RETURN /
DIVIEND
APPRECIATION
TAX
LIQUIDITY
67