3c report 7nbmgo52

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A REPORT ON 3Cs OF

JM FINANCIAL ASSET MANAGEMENT PRIVATE

LIMITED

BY

Latha.R

(E.NO:7NBMG052)

MANGALORE

2007 2009

JM FINANCE ASSET MANAGEMENT PRIVATE LIMITEDUNDER THE GUIDANCE OF

Ms. CHITRANJILI

[FACULTY GUIDE]

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CORPORATE PROFILE

JM Financial Mutual Fund is one of Indias first private sector mutual funds-an integral part of

the first wave that commenced operations in 1993-94. They are a part of JM Financial Group,

which has a rich heritage, built over three decade. They are one of the many successfulcompanies that have emerged out of JM Group's strong foundation in financial services.

JM Group's origins can be traced back to the 1950s when the Kampani family began to get

involved in India's then nascent capital markets. J.M. Financial & Investment Consultancy

Services was founded on September 15, 1973. Under the leadership ofChairman Nimesh N.

Kampani, the JM Financial Group has played a stellar and multi-faceted role in the development

of India's capital markets. Apart from helping companies raise finance, the Group has also been

instrumental in educating a burgeoning and prospering middle class about the advantages of

investing in blue chip companies.

INDUSTRIAL PROFILE

Mutual fund

Mutual Fund is where many investors contribute to form a common pool of money.

This pool of money is invested in accordance with the objectives as stated in the

Offer document. The ownership of the fund is thus joint or mutual; the fund

belongs to all investors. A single investors ownership of the fund is in the same

proportion as the amount of the contribution made by him bears to the total amount

of the Fund. Investors of Mutual Funds are called unit holders.

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To reduce the risk, the investments in securities are spread across a cross section of

industries and sectors. As all stocks may not move in the same direction at the

same time, diversification ensures reduced risk. Besides, Mutual Funds provide

professional management, reduced transaction costs, liquidity, convenience and

flexibility. The profits or losses are shared by the unit holders in proportion to their

investments. All Mutual Funds are required to be registered with Securities and

Exchange Board of India (SEBI) which is the regulator for the securities market.

Any change in the value of the investments made into capital market instruments

(such as shares, debentures etc) is reflected in the Net Asset Value (NAV) of the

scheme. NAV is defined as the market value of the Mutual Fund scheme's assets

net of its liabilities. NAV of a scheme is calculated by dividing the market value of

scheme's assets by the total number of units issued to the investors.

For example:

A. If the market value of the assets of a fund is Rs. 100,000B. The total number of units issued to the investors is equal to 10,000.

C. Then the NAV of this scheme = (A)/(B), i.e. 100,000/10,000 or 10.00

D. Now if an investor 'X' owns 5 units of this scheme

E. Then his total contribution to the fund is Rs. 50 (i.e. Number of units held multiplied by

the NAV of the scheme)

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CONCEPT OF MUTUAL FUND

Types of mutual fund

General classification of mutual funds

Open-end funds

Funds that can sell and purchase units at any point in time are classified as open

end funds

Close end funds

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Funds that can sell a fixed number of units only during the new fund offer (nfo)

period are known as closed-end funds. The corpus of a closed-end fund remains

unchanged at all times

BROAD MUTUAL FUND TYPES

J M Financial Asset Management

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JM Financial Asset Management Private Limited, the Asset Management Company of JM

Financial Mutual Fund is sponsored by J.M. Financial and Investment Consultancy Services Pvt.

Ltd., and co-sponsored by JM Financial Ltd. JM Financial Asset Management Private Limited

started operations in December 1994 with a simultaneous launch of three funds-JM Liquid Fund

(now JM Income Fund), JM Equity Fund and JM balanced Fund. Today, JM Financial Mutual

Fund offers a bouquet of funds that caters to the diverse needs of both its institutional and

individual investors

Missionis to manage risk effectively while generating top quartile returns across all product

categories. We believe that to cultivate investor loyalty, we must provide a safe haven for their

investments.

Vision is to help their investors to realize their investment goals through prudent

advice, judicious fund management, impeccable research, and strong systems of

managing risk scientifically

OBJECTIVE

We are focusedon helping our investors realize their investment goals through prudent advice,

judicious fund management, impeccable research, and strong systems of managing risk

scientifically.

We strive to give our family of investors many reasons to celebrate.

JM Financial mutual fund has its head office at Mumbai .it has got 95 branches all over India.

The business in JM Financial is divided into four zones North zone ,south zone, East zone and

west zone each zone is allocated to four vice presidents and under the able guidance of vice

presidents branch heads are placed.

Following states are allocated each zone

South zone: Bangalore, Tamil Nadu Karnataka and Kerala.

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West zone: Mumbai, Gujarat, Himachal Pradesh, Rajasthan.

North zone: Delhi, Chandigad, Uttar Pradesh, Chatisgad.

East zone: Kolkata, Andhra Pradesh

In Mangalore JM Financial mutual fund has only one branch .it is allocated at

Manasa towers near P.V.S. Mr.Manjunath sheth is the branch head .he is an M.B.A

with 5 yrs of experience in this field. He has three districts under his control. That

is Mangalore, Hassan and chikmangalore.Mr .Manjunath is assisted by an assistant

executive and office boy in his office. In Mangalore JM Financial mutual fund had

started its operations since 2006.

Functional areas

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There are four functional areas in JM Financial Asset Management

Investment department

Investment department of J M Financial manages the fund of the investors by

investing into different avenues of investment and generating profits.

Marketing department

Marketing departments helps in promoting the different products of the

Organization

Operations department

Operation is the core department in JM financial .it sees to the working of the

Whole organization like human resources management and maintaining the

books accounts

Compliance

Compliance department looks after law and order of the organization it lays

rules and regulation .it checks that the whole organization abide by the rules

and regulation laid by SEBI

Organizational Chart Of JM Finance Mutual Fund

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Like any other organization marketing plays an important role marketing

department conducts various activities in order to boost sales .it has got variety of

Product portfolio

These are the different products offered by jm financial mutual fund

J.M contra fund

The scheme is to provide capital appreciation by following contrarian style of

investment that refers buying into fundamentally stocks .fund manager is sandip

sabharwal

J.M equity fund

To provide capital growth and appreciation by investing into equity market

J.Mbasic fundThe scheme will provide capital appreciation by deployment of funds into basic

industries such as oil generation power generation etc

J.M emerging leaders fund

The portfolio includes those companies operating in emerging sector of economy

or become leader of tomorrow

J.Msmall and mid-cap fundInvesting in small cap and mid cap companies

JM Hi Fi fund

Investment of equity and equity related securities of companies which could

benefit from the structural changes by continuous liberalization

Distribution network

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The distribution networks of JM financial mutual fund are

Distributors

Banks

Individual agent

Sales force

J.M divides its business into four regions north zone, south zone, east zone, south

zone and each zone has 16 salesmen each.

Promotion and pricing policy

In order to promote its products it uses various medias like television

advertisement, newspaper advertisement and also bill boards .pricing policy of the

mutual funds is on the market demand and the fixation of price is done by mutual

fund trustees.

Market share

J.M financial mutual fund covers about 6%of the total market.

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Human resource management in J M Financial

J.M Financial like any other organization are employee concern they consider their

human resources as most valuable asset.

These are the following functions of human resource department in JM Financial

Recruiting the employees

JM Financial mutual fund follows right person at right job recruitment policy.

Training

It conducts training program to new employees and also updates the old employees

Performance appraisal

In JM Financial mutual fund promotion is based on the performance of the

employees .performance appraisal program are conducted frequently.

Preparation of payroll

It prepares payroll to each and every employee in the organization.

Customers

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The customers of the company can be divided into three different channels they are

Distributors, Banks and individual agents.

Distributors

Distributors are the intermediaries through which a Mutual Fund sells its products

to its customers. Distributors are important guides in sound financial planning.

Way 2 wealth securities pvt ltd

Bajaj capital limited

Karvy stock broking ltd

IL&FS investment ltd

UAE exchange &financial services ltd

Stock holding corporation of India ltd

Sharekhan limited

UAE exchange & financial services ltd

Moti oswal securities limited

UTI securities pvt limited

Money care

India infoline ltd

Sundaran finance ltd

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Bonanza

Weizmann forex ltd

G R financial advisors

Banks

Banks also act as the intermediaries to JM Financial Asset Management Company

and mutual fund.

The following are the banks which purchases the mutual fund of the j m financial mutual

fund

ABN AMRO BANK N.V.

AXIS BANK LTD.,

IDBI BANK LTD.,

ICICI BANK LIMITED

CENTURIAN BANK OF PUNJAB LIMITED

HDFC BANK LTD.,

Individual agents

The Association of Mutual Funds of India (AMFI) has introduced the process of

certification and registration for all Mutual Fund intermediaries. SEBI has made

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this registration mandatory. An AMFI Registration Number (ARN) is issued to

those who have passed the certification exam and have applied for registration

Individuals who are AMFI certified can act as agents to J M Financial Mutual fund

and generate business on behalf of the company.

C0MPETITORS

Following are the main competitors of JM Financial

Reliance mutual fund

Even though reliance mutual fund is the new player it is the major

competitor

For J.M financial mutual fund because of its promotional channel and brand

Equity.

ICICI prudential mutual fund

ICICI is also competitor for J.M financial mutual fund because of its

publicity

and advertisement channels and wide customer database

The other competitors are

Standard chartered mutual fund

DBS Chola mutual fund

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UTI mutual fund

Deutsche mutual fund

S.B.I mutual fund

Tata mutual fund

Kotak Mahindra mutual fund

AWARDS AND ACHIEVEMENT

ICRA Mutual Funds Awards 2007 GOLD AWARD for

JM Healthcare Sector Fund

Mutual Fund Award 2006

BNP Paribas presents CNBC TV18 - CRISIL

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CIRISL Best Fund Awards 2002

Presented by Birla Sun life Distribution Company

JM Income fund

(Best performing Open-end Debt Scheme)

CRISIL BEST FUND AWARDS 200

JM Income fund

Best performing Open-end General Debt Scheme

WHO IS WHO

Nimesh Kampani Group chairman

Mr.Nityanath.P.Ghanekar Chief executive officer

Mr.Harish.C.Kukreja Head ,Client Service

Mr.Swapnil .Bhoir H.R.Manager

Mr.Bhanu.Kat Chief Marketing Officer

Mr.Vipul.Jhaveri Chief operating officer

Mr,Sandip.Sabharwal Executive officer-equity

Mr.Manjunath .Sheth Mangalore, Branch head

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SWOT ANALYSES

SWOT Analysis plays an important role in the modern world. Its a tool that is

often used by business students to analyze a company.

STRENGTHS

Rich Experience in Financial Field

JM Financial has good brand name in the financial market

JM Financial 2 equity funds qualifies in the top 10 best performance fund

under diversified equity category as per value research

JM Financial AMC has Indias best fund managers like Mr. Sandip

Sabrawal, Mr. Asit Bhandarkar, Mr. Sadeep Neema and Mr. Mohit Verma

As per recent Lipper Report JM Financials 3 equity funds qualifies under

Indian top 10 funds rank in the world

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WEAKNESS

Traditional way of operation with the Management.

Lack of investments awareness in public with JM as AMC

Branches are not yet Geographically spread in India

Lacking in advertisement and promotional activities

Fluctuation in stock market.

Increase in competition.

OPPORTUNITIES Only 8% of the mutual fund market is tapped .the untapped market is an

opportunity to the company

With the strong FundManagement team there is strong

Opportunity to grow in the market share.

Performance of the existing funds itself creating market For JM

JM is now standing with in 15th top AMC in India.

THREATS Manpower turnover

There is threat from Government monetary policies, RBI,SEBI

Guidelines etc /global market effect/ FII in

Limited domestic investor/

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Lack of mutual fund investment awareness in India

Limited government bonds.

companies Should Come Under Listed Companies

Strict Rules and Regulations from RBI and SEBI

Target and goal

Summer Internship Program target is to sell Rs 6.00,000 worth Mutual Fund which

can be divided as follows Rs 2, 00,000 per month, Rs 50,000 per week.

Selling Techniques

Mutual fund is financial product; therefore following techniques are used by me

Personal selling

Tele calling

Reference and leads

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