Project File of Dissertation

8/7/2019 Project File of Dissertation

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CONTENTS:

serial no Topic

1 Executive summary

2 Karvy stock broking limited

3 About Bhopal branch

4 Mutual fund industry

5 Categories of mutual fund

6 Deep in project

7 Marketing of reliance infrastructure fund

8 Marketing through networking

9 Research report

10 Data analysis

11 Finding and result

12 Questionnaire

13 Bibliography



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Executive Summary

The project is based on personal financial advisory through mutual fund, which is related to

the investment type and pattern by an individual or institution. When we talk about

investment there are various types of investment pattern and when we talk about financial

advisors there are number of advisors serving in India and one of them is Karvy. It is a group

with Kravy Consultants Limited as its flagship company and one of its entity is Karvy Stock

Broking Limited which not only deals with the trade in share market ( BSE & NSE, HSE) but

also provides financial advices to the customers, the most common investment patterns are

bank deposits, fixed deposits, shares, bonds etc.

One most important investment type is mutual fund which is also connected to the

share market and our focus will be on a new NFO ³ Reliance Infrastructure Fund´. So

basically the project deals with the launching and marketing of a NFO. Meanwhile we will

learn about customer acquisition and retention, subbrokership , relationship maintenance etc.

The core part of the project is about selling of NFO while beating the competition already

exist in the market by existing funds and similar product launch by another company.



Karvy Group As An Organization

Company overview:

Karvy was established as karvy and company by f ive char tered accountants dur ing the year 1979-80, and then its work was conf ined to audit and taxation only. Later on it diversif ied

into f inancial and accounting services dur ing the year 1981-82 with a capital of rs.150000. it achieved its f irst milestone af ter its f irst investment in technology. Karvy became a known

name dur ing the year 1985-86 when it forayed into capital market as registrar.

Karvy, is a premier integrated f inancial services provider, and ranked among the top f ive inthe country in all its business segments, services over 16 million individual investors in

var ious capacities, and provides investor services to over 300 corporates, compr ising the who

is who of Corporate India. Karvy covers the entire spectrum of f inancial services such as stock

brok ing, Dipository par ticipants, Distr ibution of f inancial product like mutual funds, bonds,f ixed disposit, merchant bank ing and corporate f inance, insurance brok ing, commodities

brok ing, personal f inancial advisory services, placement of equity, IPOs among others.Karvyhas a professional management team and ranks among the best in technology, operations and

more impor tantly in search of var ious industr ial segments.

Under the umbrella of Karvy group several companies are work ing namely:-



1. : The f irst secur ities registry to receive ISO 9002 cer tif ication in India.

R egistered with SEBI as Category I R egistrar, is Number 1 R egistrar in the Country. The award of

being µMost Admired¶ R egistrar is one among many of the acknowledgements we received for our

customer fr iendly and competent services.

2. : karvy stock brok ing ltd. Consists of f ive units namely stock brok ing

servics, depository par ticipant, advisory services, distr ibution of f inancial products, advisory

services and pr ivate client goups.

3. : it is registered with SEBI as a category 1 merchant banker. Its

clientele includesinclude leading corporates, State Governments, foreign institutional

investors, public and pr ivate sector companies and banks, in Indian and global markets.

4. : karvy insurance brok ing ltd is also a par t of karvy stock brok ing ltd.

At Karvy Insurance Brok ing Limited both life and non-life insurance products are provided

to retail individuals, high net-wor th clients and corporates.

5. : The company provides investment, advisory and brokerage services

in Indian Commodities Markets. And most impor tantly, it offer a wide reach through our

branch network of over 225 branches located across 180 cities.

6. : Karvy Global is a leading business and knowledge process

outsourcing Services Company offer ingcreative business solutions to clients globally. It

operates in bank ing and f inancial services, inurance, healthcare and pharmaceuticals, media ,telecom and technology. It has its sales and business development off ice in New York, USA

and the offshore global delivery center in Hyderabad, India.

7. : Karvy R ealty (India) Limited is engaged in the business of real

estate and proper ty services offer ing:

y Buying/ selling/ renting of proper ties

y Identifying valuable investments oppor tunities in the real estate sector

y Facilitating f inancial suppor t for real estate and investments in proper ties

y R eal estate por tfolio advisory services

8. : it is a joint venture between Computershare, Australia and Karvy

Consultants Limited, India in the registry management services industry.This entity of Karvygroup is registrar for R eliance .



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Karvy Stock Brok i g Li ited

It is a branch of the Karvy group and a member of National stock exchange (NSE),

Bombay stock exchange (BSE) and Hyderabad stock exchange (HSE).

Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows

freely towards attaining diverse goals of the customer through varied services. Creating aplethora of opportunities for the customer by opening up investment vistas backed by

research-based advisory services. Here, growth knows no limits and success recogni es noboundaries. Helping the customer create waves in his portfolio and empowering the investor

completely is the ultimate goal.

It is an undisputed fact that the stock market is unpredictable and yet enjoys a high

success rate as a wealth management and wealth accumulation option. The difference

between unpredictability and a safety anchor in the market is provided by in-depth

knowledge of market functioning and changing trends, planning with foresight and choosing

the options with care. This is what we provide in our Stock Broking services.

The company offer services that are beyond just a medium for buying and selling

stocks and shares. Instead we provide services which are multi dimensional and multi-

focused in their scope. There are several advantages in utili ing our Stock Broking services,

which are the reasons why it is one of the best in the country.

Vision of karvy:-

To achieve & sustain market leadership, Karvy shall aim for complete customer

satisfaction, by combining its human and technological resources, to provide world class

quality services. In the process Karvy shall strive to meet and exceed customer's satisfaction

and set industry standards.

Mission statement:-

³Our mission is to be a leading and preferred service provider to our customers,

and we aim to achieve this leadership position by building an innovative, enterprising , and

technology driven organi ation which will set the highest standards of service and business

ethics.´



About Bhopal Branch

KARVYat central region:

Karvy stock Brok ing Ltd was star ted 6 yrs ago i.e.; dur ing the year 26th

june 2003at MP nagar which was later on established as the regional head off ice. Presently Mr. Mahim

Lal is heading the central zone. Talk ing about thezonal off ices, Karvy has branches and

subbrokers network at Jabalpur, Sagar, Katni, Sehore, Baitul, Balaghat, Chindwara and

Lalitpur name a few. Each Branche off ice has got its own Branch heads. Karvy is a member

of three stock exchanges of India: National Stock Exchange (NSE), Bombay Stock Exchange

(BSE) and Hyderabad Stock Exchange (HSE).

Hierarchical Structure in dia ram:

The above diagram shows the hierarchy of Karvy stock brok ing ltd. It can be

easily depicted from the diagram that the regional head (presently Mr. Mahim Lal) is the

supreme in the eastern region, under whom the var ious branch heads operate and under these

subbrokers and agents operate. Between each level of the hierarchy, there exists a

coordinator, who acts as the facilitator between the different heads.

Karvy at Bhopal:

Now if we look at karvy¶s branch off ices and franchisees at Bhopal, then there exist three

branches of karvy at bhopal, which are as follow:

Regional head

branch heads

Subbrokers andagents



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1. MP nagar

2. Kohe-ae-fi a

3. Shahapura.

4. BHEL.

5. Nehru nagar.

6. Bairagarh.

MUTUAL FUND INDUSTRY

A Mutual Fund is a trust registered with the Securities and Exchange Board of India (SEBI),

which pools up the money from individual / corporate investors and invests the same on

behalf of the investors /unit holders, in equity shares, Government securities, Bonds, Call

money markets etc., and distributes the profits.

The value of each unit of the mutual fund, known as the net asset value (NAV), is mostly

calculated on daily basis on the total value of the fund divided by the number of units

currently issued and outstanding. The value of all the securities in the portfolio in calculated

daily. From this, all expenses are deducted and the resultant value divided by the number of

units in the fund is the fund¶s NAV.

NAV = Total val e of the fund________

No. of units currently issued and outstanding



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A B C of Mutual Fund

D E F is here««.



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Karvy computershare private limited is the registrar for Reliance , Therefore the

distribution responsibilities were also been share by Karvy stock broking

limited. The purpose of the project is mainly focused on the marketing of afinancial product . As already mentioned in the introduction that there are

various types of investment , which can broadly divided into three category: -

1. High risk

2. Moderate risk

3. Low risk

Here in this project we will consider mutual fund as investment product. And

for that we should know what a mutual fund is? In a simple language it is poolof money collected by a company from individual or institution and later on

invested in money market in form of shares, bonds and other money market

instruments. A fund manager of the asset management company who used to

collect the money gradually invest the money either in equity market or in debt

market or both. Fund is broadly been divided into two types: -

1. Open ended fund



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2. Close ended fund

Advantages of a MF± Mutual Funds provide the benefit of cheap access to expensive stocks .

± Mutual funds diversify the risk of the investor by investing in a basket of

assets.

± A team of professional fund managers manages them with in-depth research

inputs from investment analysts.

± Being institutions with good bargaining power in markets, mutual funds have

access to crucial corporate information, which individual investors cannot

access.

History of the Indian 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 history of mutual funds in India can be broadly

divided into four distinct phases.

First Phase ± 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the

Reserve Bank of India and functioned under the Regulatory and administrativecontrol of the Reserve Bank of India. 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 UnitScheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management.

Second Phase ± 1987-1993 (Entry of Public Sector Funds)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 InsuranceCorporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund

established in June 1987 followed by Canbank Mutual Fund (Dec 87), PunjabNational Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of

India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund

in June1989

while GIC had set up its mutual fund in December 1990

.At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores.

Third Phase ± 1993-2003 (Entry of Private Sector Funds)1993 was the year in which the first Mutual Fund Regulations came into being, under

which all mutual funds, except UTI were to be registered and governed. The erstwhile

Kothari Pioneer (now merged with Franklin Templeton) was the first private sector

mutual fund registered in July 1993.



The 1993 SEBI (Mutual Fund) R egulations were substituted by a more

comprehensive and revised Mutual Fund R egulations in 1996. The industry now

functions under the SEBI (Mutual Fund) R egulations 1996. As at the end of January

2003, there were 33 mutual funds with total assets of R s. 1,21,805 crores.

Fourth Phase ± since February 2003In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was

bifurcated into two separate entities. One is the Specif ied Under tak ing of the Unit

Trust of India with assets under management of R s.29,835 crores as at the end of

January 2003, representing broadly, the assets of US 64 scheme, assured return and

cer tain 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 R egulations. consolidation

and growth. As at the end of September, 2004, there were 29 funds, which manage

assets of R s.153108 crores under 421 schemes.

Cate ories of mutual funds:

Mutual funds can be classif ied as follow:

Based on their structure:



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y Open-ended funds: Investors can buy and sell the units from the fund, at any point of

time.

y Close-ended funds: These funds raise money from investors only once. Therefore,

after the offer period, fresh investments can not be made into the fund. If the fund is

listed on a stocks exchange the units can be traded like stocks (E.g., Morgan Stanley

Growth Fund). Recently, most of the New Fund Offers of close-ended funds provided

liquidity window on a periodic basis such as monthly or weekly. Redemption of units

can be made during specified intervals. Therefore, such funds have relatively low

liquidity.

Based on their investment objective:-Equity funds: These funds invest in equities and equity related instruments. With

fluctuating share prices, such funds show volatile performance, even losses. However,

short term fluctuations in the market, generally smoothens out in the long term,

thereby offering higher returns at relatively lower volatility. At the same time, such

funds can yield great capital appreciation as, historically, equities have outperformed

all asset classes in the long term. Hence, investment in equity funds should beconsidered for a period of at least 3-5 years. It can be further classified as:

i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is

tracked. Their portfolio mirrors the benchmark index both in terms of composition

and individual stock weightages.

ii) Equity diversified funds- 100% of the capital is invested in equities spreading

across different sectors and stocks.

iii|) Dividend yield funds- it is similar to the equity diversified funds except that they

invest in companies offering high dividend yields.

iv) Thematic funds- Invest 100% of the assets in sectors which are related through

some theme.

e.g. -An infrastructure fund invests in power, construction, cements sectors etc.v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector

fund will invest in banking stocks.

vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.

Balanced fund:- Their investment portfolio includes both debt and equity. As a

result, on the risk-return ladder, they fall between equity and debt funds. Balanced

funds are the ideal mutual funds vehicle for investors who prefer spreading their risk

across various instruments. Following are balanced funds classes: i) Debt-oriented funds -Investment below 65% in equities.

ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt.

Debt fund: They invest only in debt instruments, and are a good option for

investors averse to idea of taking risk associated with equities. Therefore, they invest

exclusively in fixed-income instruments like bonds, debentures, Government of India

securities; and money market instruments such as certificates of deposit (CD),



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commercial paper (CP) and call money. Put your money into any of these debt funds

depending on your investment hori on and needs.

i) Liquid funds- These funds invest 100% in money market instruments, a large

portion being invested in call money market.

ii)Gilt funds ST- They invest 100% of their portfolio in government securities of and

T-bills.

iii)Floating rate funds - Invest in short-term debt papers. Floaters invest in debt

instruments which have variable coupon rate.

iv)Arbitrage fund- They generate income through arbitrage opportunities due to mis-

pricing between cash market and derivatives market. Funds are allocated to equities,

derivatives and money markets. Higher proportion (around 75%) is put in money

markets, in the absence of arbitrage opportunities.

v)Gilt funds LT- They invest 100% of their portfolio in long-term government

securities.

vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in

long-term debt papers.

vii) MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an

exposure of 10%-30% to equities.viii)FMPs- fixed monthly plans invest in debt papers whose maturity is in line with

that of the fund.



Deep In Project

Marketin Of Reliance Infrastructure Fund

HIGHLIGHTS OF THE RELIANCE

INFRASTRUCTURE FUND

When it comes to R eliance infrastructure fund it is an open ended

fund where the percentage of the investment will be based on following pattern:-

Equity market- minimum 65% - maximum 100%

Debt market- minimum 0% - maximum 35%

1. Fund Manager- Mr. Sunil Singhania

2. Fund type- Equity diversif ied infrastructure fund

3. Face Value- 10 R s.

Adve se e Tec q e

ec c edia Print media

Distribution

Re iance it se arvy stoc broking

Launc ing date

25 May 2009



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4. Minimum investment amount- 5000 Rs.

5. Facility of SIP (Only through AXIS or HDFC bank)

6. Open ended equity fund

7. Entry load- 2.25%

8. Exit load- 1% (Till 12 months otherwise nil)

The above written things are crucial part of the NFO, which not only attracts the customer but

also provides a platform for the marketing of the NFO.

Reliance is the AMC where the Karvy computershare private limited is registrar

for Reliance. And because of that the distribution responsibilities were being shared by both

companies and for Karvy group, Karvy stock broking bear the load of distribution of fund.

When it comes to advertisement both kind of media were being considered for it

news channel, news paper (National and Local), brochure etc. Were being used for

advertisement.

Methods & Strategies for marketing of the fund

Portfolio Maintenance

While convincing a customer for the purchase of fund we have to maintain the portfolio of

the customer which consists of :-

1. Earning capacity of the customer.

2. Investing power of the customer.

3. Age of the customer.

4. Risk bearing capacity of the customer.

5. Purpose of purchase.

6. Holding ability etc.

As we know that most common marketing activity is television advertisement and second is

print media but for these kind of marketing only the AMC is liable. And as a management

trainee we (Me and my team consisting of 3 person) have to adopt the grass root marketing

which are :-



CUSTOMER GAIN AND INITIATION OF CONVINCING

NOW STAR TS

CUSTOMER CONVINCING

The mentioned techniques are being used to gain technique and when we have customer in

front of us then we have to convince him/her to purchase our product and for that we should

have :-

1.In depth knowledge of our product.

2.USPs of our product.

3.Communication sk ills.

4.Patience. Etc.

Cold

calling

Walkin

acquisitionCanopy



A lot more depends upon the spending nature and power of the customer and

that too depends upon var ious factor like family members, dependency of customer or

on the customer, several other reason may affect the purchasing or investment

decisions but one more cause is the age group and as per market studies done by

several companies generally the following k ind of behaviour shows :-

Age 25-35: 35-40 % debt, 60% in equity

Age 35-45: 45-50 debt, less than 50% in equity

Age 55: mostly in debt

Which means we have to select a par ticular age group for the sale of our product otherwise it

will be a useless exercise. Secondly we have to separate the customer on their nature of job or

the work they are doing, dur ing our project we meet to the persons from var ious f ield of work

nature and the general f inding itself categor ies the customer by their organizations which

are....

6HFWRULDO5XOH

1st Category Government Sector

The central or state government servants arethose investor who need a safe, secured and

def inite return so rather than going for mutual fund or going to the equity market they prefer safe deposits like f ixed deposits, insurance etc.

And if they are interested then they used to purchase that k ind of product which

provides them tax benef it even though if there is any k ind of lock in per iod. The time of

product launching is also crucial as the f inancial year ending time and income tax return

f illing time is 31st March so naturally a major ity of the government servants does invest at

that par ticular time.

GovernmentSector Employees

Look for debt

market

Low risk

Private sectorEmployees

Intrested in

equity but less

informedTime factor

Self Employed

Having money

and time but...in

hurry for return



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2nd Category private sector

Employees of private sector and more interested in this kind of investment because of several

reasons:-

1. Most companies of the private sector provides share of the company to its employees

and because of that exposure of share market the employees took interest in equity

market and similar financial products.

2. Age factor also play a fatal role as you will find younger workforce in private

organi ations.3. Source of income is basically the salary offered by the company and besides that the

incentives paid by the company provides additional income to the employee whichthey can invest in the equity market.

4. Only concern is time, they are willing to purchase but they can¶t put an eye on regular basis on the share market.

5. Risk taking ability is much higher in the employees of this particular sector.

3rd Sector Self Employed

This is most versatile sector, various activity falls under this category, like carpentry, general

store shops etc. and the amount or the quantity of this kind of may-be-customer are high,

during our marketing of reliance infrastructure fund we met to a number of self employed

persons and the general finding is:-

1. Money comes and moves out to that person in a periodic way hence he /she can invest

through SIP but lack of awareness regarding such kind of investment product

( mutual fund, bonds etc.) is the main reason for old fashioned investment by them.

2. Improper information or myth about share market is creating a huge problem because

of which a large portion of liquid money is not coming to equity market.

3. The persons belongs to this category are interested in short term capital gain and for

that mutual fund is the best option, because generally in growth option (which is

available in Reliance Infrastructure Fund) the NAV increases to 15-30% within 2-3

months.



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Marketi g Through N etwork i g

Basic structure of networking is very much clear by the figure and besides it the AMC used

to sell their product via direct marketing.

For Reliance, Karvy is the distributor and used to sell the product

simultaneously karvy have its own subbrokers to whom Karvy relies a lot because generally

these subbrokers are those individual who used to stay at small places and villages and theycan easily grab the potential investor from those places because to sell a financial product like

fund or shares or bonds to the persons of a village one has to adopt a different kind of

marketing strategies and a very different communication skill which is being generally used

to convince a literate person or the person who used to stay at places where he/she can easily

get in touch with the product.

And for that the subbrokers get their commission, now there is a different kind of

subbrokership where a group of person as a separate entity used to sell the product and get

their commission. Third category of agents are similar to subbrokers the only thing which

differentiate subbrokers and agents are the commission they get on selling the product.

During our project we met to several subbrokers and agents and we found that it

is also necessary to convince an agent or a subbroker for selling the fund because the investor

directly interact with that subbroker or agent so the investor found that the subbroker or agent

liable for the profit or loss. Hence the subbroker and agent should be ready for selling and the

important factor here is the name and reputation of the fund manager, because the subbrokers

and agents initially look for the NAV of the fund previously headed by that fund manager and

after that they make their mind on selling a product.

AM DIST IBUTO BROKER

SUBBROKERSA ENTS



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Research report

Objective of research;

The main objective of this project is to sell the reliance infrastructure fund and

simultaneously getting the opinion of people regarding mutual funds and what they

feel about availing the services of financial advisors.

I have tried to explore the general opinion about mutual funds. It also covers why/

why not investors are availing the services of financial advisors.

Along with it a brief introduction to India¶s largest financial intermediary, KARVY

has been given and it is shown that how they operate in mutual fund selling.

Scope of the study:

The research was carried on in the Central Region of India. It is restricted to Bhopal where it

has got 3 branch offices an23 franchisees. I have visited people randomly nearby my locality,

different shopping malls, small retailers, government offices, Doctors etc.

Hopefully the data collected by me and my team will be utili e by the company

in future and the potential investor will avail the service of the Karvy.

Data sources:

Research is totally based on primary data. Secondary data can be used only for the reference.

Research has been done by primary data collection, and primary data has been collected by

interacting with various people. The secondary data has been collected through various

journals and websites and some special publications of KARVY.

Sampling:

Sampling procedure:

The sample is selected in a random way, irrespective of them being investor or not or availing

the services or not. It was collected through mails and personal visits to the known persons,

by formal and informal talks and through cold calling. The data has been analy ed by using

the measures of central tendencies like mean, median, mode. The group has been selected and

the analysis has been done on the basis statistical tools available.

Sample size:

The sample si e of my project is limited to 55 only. Out of which only 13 people made the

investment. Other 40 did not invest in MF only 3 did invest in existing fund.

Sample design:

Data has been presented with the help of bar graph, pie charts, line graphs etc.

Limitation:



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Time limitation.

Research has been done only at Bhopal.

Some of the persons were not so responsive.

Possibility of error in data collection.

Possibility of error in analysis of data due to small sample si e.

Data analysis:

Have you ever invested/ interested to invest in mutual funds?

YES 27

NO 29

.what is the most important reason for not investing in mutual funds?

YES

27%

¡

O

29%

No. of persons= 56



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Lack of knowledge about

mutual funds

9

Enjoys investing in other

options

5

Its benef its are not enough

to drive you for investment

3

No trust over the fund

managers

13

.where do you f ind yourself as a mutual fund investor?

Totally ignorant 13

9

5

3

13

0

2

4

6

8

10

12

14

Category 1

lack of knowledge

ot ¢ er o £ tions

not benefitial

no trust on fund manager



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Partial knowledge of MFs 27

Aware of only scheme in

which invested

10

Good knowledge of MFs 16

.where f rom you purchases mutual funds?

Directly f rom the AMCs 10

Brokers only ( large

intermediaries)

22

Broker/ sub-brokers 14

Other sources 1

13

27

10

16

data

totally ignorant

partial knowledge of MFs

aware of only scheme in which

invested

good knowledge of MFs



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Which feature of the mutual funds allure you most?

Diversif ication 42

Professional management 29

Reduction in risk and

transaction cost

34

Helps in achieving long

term goal

30

10

22

14

1

0

5

10

15

20

25

Category 1

directly from the AMCs

large brokers

small brokers/s ¤ bbrokers

other so¥

rces



According to you which is the most suitable stage to invest in mutual

funds?

Youn unmarried sta e 28

Youn

Married with

children sta e18

Married with older children

sta e

5

0 5 10 15 20 25

Category 1

10

¦

23

16diversification

prof essional management

reduction in risk and transaction

cost

helps in achieving long term

goal



Pre retirement sta e 5

Are you availing the services of personal f inancial advisors?

Yes 22

No 34

28

18

55

data

young unmarried stage

young married with little

children

married with older childrenstage

pre-retirement stage



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Which expertise of the personal financial advisor is demanded most?

Portfolio review &

investment recommendation

5

Planning to achieve specif ic

f inancial goals

25

Managing assets in

retirement

6

Access to specialists in areas

such as tax planning

20

39%

61%

number f ers ns

yes

§ ̈



What is the major reason for not using f inancial advisor?

Have access to all resources

needed

8

Believe advisors are too

expensive

22

Unsure how to find a

trustworthy advisor

14

Want to be in control of own

investments

12

0 5 10 15 20 25

access to specialists in areas such as tax

planning

managing assets in retirement

planning to achieve specific financial goals

portfolio review and investment

recommendation

5

25

6

20

Series 1

Series 1



FINDING AND R ESULT

Total person contacted- 56

Investment made ± 13

Other investment in exsisting fund- 3

Not interested- 40

0 5 10 15 20 25

want t©

be in c©

ntr©

l©

f ©

wn investments

unsure h w t find a trustw rthy advis r

believe advis©

rs are t© ©

expensive

have access t all res urces needed

8

22

14

12

data

data



- 30 -

As shown in the graph there were only 23% who did choose Reliance infrastructure fund for

investment while a majority of the persons 72% did not invest and only 5% invested in other

existing fund.

During selling process or starting a conversation with investor we have to

start with some questions and for that ideally we have to prepare a questionnaire and give to

the participants and based on that we should continue our conversation but that will only help

when we have to collect the data for a research purpose but the responsibility given to us was

to sale the fund, secondly time boundation is there for us and the persons as well because

rarely you will find a person who will take interest in filling those questionnaire if he/she

doesn¶t want to invest.

Some questions are :-

Questionnaire:

.have you invested /are you interested to invest in mutual funds?

Yes [ ] No [ ] ( plz. att empt the next question)

.what is the most important reason for not investing in mutual funds?

Lack of knowledge about mutual funds [ ]

Enjoys investing in other options [ ]Its benefits are not enough to drive you for investment [ ]

No trust over the fund managers [ ]

40

13

3

Sales

Not intrested

Invest in Reliance Infrastructre

fund

Invest ent in exsiting fund



- 31 -

.where do you find yourself as a mutual fund investor?

Totally ignorant [ ]

Partial knowledge of mutual funds [ ]

Aware only of any specific scheme in which you invested[ ]

Fully aware [ ]

.where from you purchase mutual funds?

Directly from the AMCs [ ]

Brokers only [ ]

Brokers/ sub-brokers [ ]

Other sources [ ]

.which feature of the mutual funds allure you most?

Diversification [ ]

Professional management [ ]

Reduction in risk and transaction cost [ ]

Helps in achieving long term goals [ ]

. According to you which is the most suitable stage to invest in mutual funds?

Young unmarried stage [ ]

Young Married with children stage [ ]

Married with older children stage [ ]

Pre-retirement stage [ ]

. are you availing the services of personal financial advisors?

YES [ ] NO[ ]

.which expertise of the personal financial advisor is demanded most?

Portfolio review & investment recommendation [ ]

Planning to achieve specific financial goals [ ]



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Managing assets in retirement [ ]

Access to specialist in areas such as tax planning [ ]

.what is the major reason for using financial advisors?

Want help with asset allocation [ ]

Don¶t have time to make my own investment decision [ ]

To explain various investment options [ ]

Want to make sure I am investing enough to meet my financial goals [ ]

.what is the major reason for not using financial advisor?

Have access to all resources needed to invest on own [ ]

Believe advisors are too expensive [ ]

Unsure how to find a trustworthy advisor [ ]

Want to be in control of own investment [ ]



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Bibliography:

Websites:

www.the-f i

p

lis.c

m

www.amf ii

dia.c

m

www.karvy.c

m

www.mut ualf u

dsi

dia.c

m

www.valueresearchonline.com

www.moneycont rol.com

www.theeconomict imes.com

www.rediff money.com

www.bseindia.com

www.nseindia.com

journals & other references:

Karvy ±the f inapolis

Karvy- business associates manual

The Economic Times

Business Standard

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