Download - INJ Report

8/14/2019 INJ Report

1/133

A STUDY ON MUTUAL FUNDS AND AWARNESS OF

MUTAUALFUNDAMONG FINANCIAL ADVISORS

At

NJ INDIA INVEST PVT.LTD. DELHI

A Project report submitted in partial fulfillment for theaward of

Post Graduate Program in Business Management

ByDEEPIKA RAI

( BATCH 2008-10)(TRAINEE CODE-T0967)


2/133

Khandala

April-June 2009

DECLARATION

I ,Deepika Rai a bonafied student of Kohinoor SchoolKhandala,

would like to declare that the project entitledA STUDY ON FUND AND AWARNESS OF MUTAUAL FUND AMONG FINANCIAL AD

submittedin partial fulfillment of post Graduated Program in

Management andis my original work


3/133

ACKNOWLEDGEMENT

I extend my thanks and indebt-ness to my guide Prof. AjeetGaikwad

for Constant encouragement and valuable support throughout the course

of the project.

I wish to acknowledge my sincere thanks to all of the facultymembers

For their valuable advice and suggestions.

I am very grateful and deeply indebted to MrChahat Miyan k

( teamLeader ), Mr. Sunil Singh , Mr. Durbadal Mukharjee , Mr.Amit Gupta

( Relationship Executives ) NJ Indiainvest pvt. Ltd.Company

for their invaluable Co-operation in helping me tocomplete


4/133

the project successfully.

My profound thanks and extreme gratefulness to the orgaof

NJ India Invest pvt. Ltd. that gave me the project and valuablesuggestions

to complete the same.

Last but not the least I wish to acknowledge my deep feltgratitude

to all my respondents for their Co-operation which helped me tthe

base for the project work.

CONTENTS

Chapter No. Chapter Name No.

1. Industry profile

2. Company profile

3. Product profile


5/133

4.Objective of study (61-81)

4. Limitations (82-94)

4. Research Methodology (95-96)

4. Data Analysis and Interpretation (96-101)

4. Summary of findings (102-103)

4. Summary of suggestions (103) (10

INDUSTRY PROFILE

ABOUT NJ

IndiaInvest Pvt. Ltd. is one of the leading advisorsand distributors of financial products and services inIndia. Established in year 1994, NJ has over adecade of rich exposure in financial investments space

and portfolio advisory services. From a humble beginning,NJ over the years has evolved out to be aprofessionally managed, quality conscious and customerfocussed financial / investment advisory & distribution firm.

NJ prides in being a professionally managed,


6/133

quality focused and customer centric organisation. Thestrength of NJ lies in the strong domain knowledge ininvestment consultancy and the delivery of sustainablevalue to clients with support from cutting-edgetechnology platform, developed in-house by NJ.

At NJ we believe in ..

having single window, multiple solutions that areintegrated for simplicity and sapience.

Making innovations, accessions, value-additions, aconstant process

providing customers with solutions for tomorrowwhich will keep them above the curve, today.

NJ had over INR 60 billion* of mutual fund assetsunder advice with a wide presence in over 96 locations*in 18 states* and 500+ Employess in India. The numbersare reflections of the trust, commitment and value that NJ

shares with its clients.At NJ, we continue to innovate, enrich our intellect,and ask critical

questions. We challenge our own processes and systemson constant basis to emerge more convinced. At NJ, wecontinue to expand the scope and depth of our offerings,making apt use of technological support.


7/133

NJ Wealth Advisors, a division of NJ focuses on providingfinancial planning and portfolio services to premium clientsof high net worth. At wealth advisors.

We have dedicated processes that focus onproviding the best in terms of the advice . And theongoing manage your portfolio and financial plans.

At NJ, our experience, knowledge and understandingenables us to provide value , in an enhanced way . As aleading player in the industry, we continue tosuccessfully expectations of our clients ,

through meaningful and comprehensive Solutionsoffered by NJ Advisors.

Our vision

To be the leader in our field of business through,

Total Customer SatisfactionCommitment to ExcellenceDetermination to Succeed with strict adherence to


8/133


9/133

a body, our philosophy would be our spirit which drivesour body.

Service Philosophy:

Our primary measure of success is customer satisfaction

We are committed to provide our customers withcontinuous , long - term improvements and value-additionsto meet the needs in an exceptional way. In our efforts toconsistently deliver the best service possible to ourcustomers , all employees of NJ will make every effort to:

* think of the customer first, take responsibility, and makerompt service to

the customer priority.* deliver upon the commitments & promises made on time.* anticipate, visualize, understand, meet, exceed our

ustomers needs.* bring energy, passion & excellence in everything we do.

* be honest and ethical, in action & attitude, and keep theustomers interest

supreme.* strengthen customer relationships by providing service

n a thoughtful &proactive and meet the expectations ,effectively.

Investing Philosophy:


10/133

We aim to provide Need - based solutions for long -term wealth creation .

We aim to provide all customers of NJ, directly orindirectly, with true, unbiased, need - based solutionsand advice that best meets their stated & un-stated needs.In our efforts to provide quality financial & investmentadvice , 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-erm wealth

creation.* Educating and disclosing all the important facets which

he customerneeds to be aware of is important

* The solutions must be unbiased, feasible, practical,xecutable

,measurable and flexable

.* Constant monitoring and proper after-sales service is

ritical tocomplete the ongoing processes.

At NJ our aim is to earn the trust and respect of themployees

customers, ,partners, regulators, industry members and thecommunity at large by following our service and investingphilosophy with commitment and without exceptions


11/133

Management:

The management at NJ brings together a team of peoplewith wide experience and knowledge in the financial servicesdomain. The management provides direction and guidance tothe whole organisation. The management has strong visions

for NJ as a globally respected company providingcomprehensive services in financial sector.

The Customer First philosophy in deeply ingrained in themanagement at NJ. The aim of the management is to bring thebest to the customers in terms of

Range of products and services offered

Quality Customer Service

All the key members of the organisation put in great focus onthe processes & systems under the diverse functions ofbusiness. The management also focuses on utilizingtechnology as the key enabler for all the activities and toleverage the technology for enhancing overall customerexperience.

The key members of the management are:

Mr. Neeraj Choksi Jt. Managing DirectorMr. Jignesh Desai Jt. Managing Director


12/133

Sales Team:Mr. Misbah Baxamusa National Head

Mr. Prashant kakkad V.P.

Executive Team:

Mr. Vinayak Rajput Finance & OperationsMr. Viral Shah ResearchMr. Dhaval Desai Human Resources, Marketing

Development

People & culture

People:

Enthusiasm, Enterprise, Education and Ethics form the four pillars atNJ. At NJ one can witness the vibrant energy, enthusiasm and theenterprising drive to excel flowing freely throughout theorganisation. At NJ can also experience the creativity, one-to-one responsiveness, collaborative approach and passion fordelivering value.

At NJ people evolve to be more effective, efficient, and resultoriented. Knowledge is inherent due to the education-centricapproach and the experience in handling different clientsgroups across diverse product profiles.

NJ understands that the people are the most important assets of


13/133

the company and it is not the company that grows but the people.NJ hence undertakes rigorous training and educational activitiesfor enhancing the entire team at NJ . NJ also believes in the Learning through Responsibility concept for its employees.

For people at NJ success is not a new word, but is a regularstepping - stone to realising the one vision that everyone shares.

Culture

At NJ we believe in transforming the lives of our customers.We exist to create a difference a change towards a betterlife. The culture at NJ reflects this responsibility, this dreamof transforming lives. And we at NJ are always excitedand enthused in doing so.

We believe in keeping You First, providing you with products andservices that meet your stated and unstated needs. Clientsatisfaction and client service is the Mantra we constantly recite.

This service oriented philosophy runs throughout the organization, from top to bottom.

Employees are given ample freedom in their work. The objectiveis to keep an open, healthy environment with ample scope forenterprise, improvement, innovations and out-of-the box solutions

Our efforts are constantly engaged in improving our existingservices, offering new and innovative solutions that go beyondyour expectations. This focus has made us one of the mostrespected and preferred service providers, especially in themutual fund industry.


14/133

Service Standards

Service is the key to unlocking customer satisfaction , whichagain is key for sustainability Business. At NJ we understandthis very well . NJ has set strict processes in place todelivered service to customers. AT NJ strict quality servicestandards are set and a well defined established and followedreligiously by our quality customer service team.

Performance evaluated on a frequent basis and glitches are ironout.

But quality service also involves quality people inaddition to processes . NJ gives Significant the propertraining and development of the people involved in theservice delivery chain.

Further We:

Have well-defined Privacy Policy to keep clientsinformation confidential

& internal done on the same at regular intervals .

Receive various statistics which are analysed on anongoing basis To improve the standards.

We are committed to improve and enhance our servicesand undertake new Services initiative and other servicesdifferentiate us with other services providers in the industry.


15/133

Our service commitment..

The service commitments are to guide the actions of the

people at NJ. Clearly stated Customers can freely

communicate any such action /events wherein they feel thatany Of the commitments have been breached/ compromised .At NJ we desire to honour Our commitments all points ofthe time and to all our customers without any bias.

To provide customer-focussed need-based valued sevices.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 .To honour our service commitments.

As NJ Wealth Advisors Global Private Client, you getcomprehensive set of services that ensure you stayinformed, insightful, in command, of your investments at alltimes.


16/133

Comprehensive Financial Planning

We all have many responsibilities and goals in our lives. We havedreams an aspirationsfor a better future. But quite often we are not sure as to how wewill fulfill these goals and aspirations. Life changes over time. Wemay never be sure what today holds for us tomorrow. What ifsomething goes wrong? How do we make sure that we get what wewish?

A comprehensive Financial Plan is what you need. At NJ WealthAdvisors we offer you with Comprehensive Financial Planning


17/133


18/133

risk profile.

Consolidated Reporting

Account Quality online Wealth:

As a premium client you would have access to one of the best onlineinvestment accounts that offer comprehensive reports, many of whichare 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

Bank Deposits and Company Deposits

RBI / Infrastructure BondsPostal Savings KVP, MIS, NSC

DebenturesSmall Savings PPF, NSS

You would have access toConsolidated Net Asset Reportswhich would give you a single view of all yourinvestments into different avenues as given above.


19/133

Further, within each of the Asset class we have many morereports 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, Portfolioreports like - AMC / Sector / Equity / Credit / Debt Exposure,Weighted Average Maturity, dividend history, etc.

Direct Equity:Demat accounts, Transaction, Valuation, Profit & Loss.

Life Insurance:Policy Report, Premium Reminder, Cash Flow.

Debt:

Transaction, Interest Income, Maturity reports for differentAssets.

Dedicated Team


20/133

At NJ Wealth Advisors, we work in a team concept toprovide quality, effective and timely service to our clients.The team is designed keeping you at the beginning or theend of the flow as the originator and the end receiver of anyrequest or service.

The team handling you consists of the RelationshipManager and the Account Manager who would be in directtouch with you. This would be supported by theCentralised Research Team, the Chief Portfolio Manager andthe Service Team. All the important investment decisionsand/or plans recommended to you are actually prepared and/or approved by the Chief Portfolio Manager with inputsfrom the Research Team. The structure ensures that all thePlans and recommendations that you receive are unbiased,

based on true research & detailed study, and suited toyour needs.


21/133

Quality Customer Service

NJ realises the true importance of quality customer service. Theservice commitments are to guide the actions taken at NJ.Clearly stated, customers can freely communicate any suchactions/events wherein they feel that the following

commitments have been breached. At NJ we desire to honour ourcommitments at all points of time and to all customers withoutany bias.

Quality Service: Highlights

You will receive regular portfolio reports in hard copiesto serve as record

All records are maintained for the plans andrecommendations and minutes of all the meetings are kept.

Dedicated Account Manager directly oversees theoperational support to you Quality Advisory .

True, unbiased recommendations.

Each plan is unique in nature to suit your needs andprofile.

Defined Process followed in investment consultancy /portfolio management.

All the plans are prepared and/or approved in line withthe set process by Chief Portfolio Manager with inputsfrom the Research Team.

Quality Communications support:

Daily market updateEmail

Daily MF tracker-for sort term debt fund


22/133

Email

Weekly performance reportEmail/ Hard copy

Comprehensive monthly fact sheetHard copy

Research articles and reportsEmail / Hardcopy

Our Service Commitments

To provide client-focussed need-based advisory services.To provide reliable, accurate and timely information.

To identify and recommended only the right products.To maintain all records in privacy .

To optimise returns based on risk .To preserve our clients capital .

To honour our service com .

Recognitions

some of the awards & recognitions that we have received inpast

Year 2000:For Outstanding Performance presented by Chairman,Prudential Plc. at London.


23/133

Year 2002:For Outstanding Performance presented by Group ChiefExecutive, Prudential Plc. at London.

Year 2003:

For Outstanding Performance presented by Group ChiefExecutive, Prudential Plc. at London.

Year 2004:Among Most Valued Business Associates presented byHDFC Standard Life at Edinburgh, Scotland.

Year 2004:

For Outstanding Performance by Deputy CEO, PrudentialSingapore atMalaysia.

Year 2006:Award for mobilising the Highest Number of SIPs atNational Level by Fidelity Mutual Fund Plc at Mumbai.

Year 2006:Award Vietnam

Comments from Industry Stalwarts:

The essence of investment consultancy lies in optimal assetallocation as against security selection or timing the markets forclients. NJ understands this very well and has addedsignificant value to the clients through this approach. I am surewith this new initiative; a much larger number of clients will beable to benefit from this approach. I wish them all the best in thisinitiative.


24/133


25/133

It is a great pleasure for NJ Gurukulto have you visit this site.

If an individual is a vehicle to run on the highway called life then,Continuous Learning is the driver who makes the individual reachthe destination safe & sound in time.

You might have seen in the season of kite-flying, there are many losekites passing by and those with alert sight turn out to be gainers withlittle effort.

It is our belief that we all need inputs to remain updated andalert to be able to grasp opportunities passing by.

NJ Gurukul provides you that incisive vision to set focus to graspopportunities for your own benefit.

Success in Financial advisory services depends upon updateknowledge, an ability to correlate knowledge with perspective ofclient, and art of expressing things in simple manner that can bereceived and understood by people in general who have to be oriented

to the concept of wealth creation.

You can have solution for these needs and other useful support from

Gurukul.

Wish you a very useful association with Gurukul.

Avail the best and be the best.

With best wishes,


26/133

Mr.Neeraj Choksi(Joint MD) Mr.JigneshDesai(Joint MD)

NJ IndiaInvest pvt.Ltd is one of leading advisors anddistributors of financial products and services in India . It isknown as a national distribution house dealing withall AMCS companies. Estat 1994 , has over a decade ofrich exoposure in financial investment space , portfolioadvisory services and distrit products. Prides in being aprofessionally managed ,quality focused and customer centricorganization . The strength strong domain knowledge

in investment consultancy and the delivery ofSustainable value to clients with support technologyplatform , developed in-house by Presently , has over INR65 billion (6500+crores) of mutual fund asset under adviceIt is a reflection of the trust ,values that NJ shares withits clients. In India , is presentIn 85 locations in 18 states,also has a wide network of financial product division ,Which offers a dedicated platform for independent financialadvisors to help them.

Grow & develop their products . Today provides over11000 of such advisors with unique , comprehensive 360advisory platform to grow their best quality solutions.

At NJ we exist to provide quality financial / investmentadvisor , customers of diverse profiles and needs . We aim totake the maturing Indian financial market to the masses andprovide solutions that best serve their interest.


27/133


28/133

written. A gogetter attitude, strong team culture.

Ready for hardcorporation . Entrepreneurial driven.

Industry Type : Banking / Financial service /Broking

Functional Area : Sales, BD

Location : A.P., Bihar, Goa, Gujrat, Jharkhand ,Kerala , Karnataka

Pune, W.B., Orissa,Punjab,New Delhi,Mumbai, U.P., M.P.

TamilNadu,UttraKhand,Rajasthan,Maha

rastra,Chhattiarh

Education : UG Any Graduate Anyspecialization,PG- MBA/

PGDM- Finance , Marketing.

Key word : Basic know how of mutual fund orother financial

product, good power ,& good

communication skillsverbal and non verval.

Contect : Shehzad Malik

NJ IndiaInvest pvt. Ltd.NJ centre ,901,Udhna Udhyog Nagar Sangh

commercial complex,Central Road No.10, UdhnaSurat Gujarat , INDIA 394210

Telephone : 91-0261-3987501, 097243211706

Fax : 301 3957

Website : http://www.njindiainvest.com,www.njfundznetwork.com


29/133

Reference : [email protected]

Overview

Making people benefit from the growing economy is possible byattracting t hem to participate in Equity for long term, to maketheir money work for themselves and create wealth. For this tohappen, a huge force of effective Financial Advisors is needed.

Formation of fraternity of effective financial advisors is possible byspreading awareness and enabling people qualify requisiteexamination and develop skills to function as qualified FinancialAdvisor.

This sporadic growth in terms of need of performers in financialadvisory services has lead to the crunch of available performers.

Though lots of youngsters are getting into financial advisoryservices, but the greatest challenge is of RIGHT SELLING, for whichadequate Training is a prerequisite.

Advisory function demands updated knowledge, backed up byhoned skills to fetch effective business. Building long termrelationship with clients depends upon possessing clear edge over


30/133

others in the field. Hence continuous people development hasan important role in building this fraternity.

Though there is a mushroom growth of bodies offering training, thedeficiency of training centers and effective trainers is very much there.

In addition to the organizations craving for right training facilities, a whole lot of un-taped junior population needs to be orientedtowards basics of investment, significance of financial planning forwealth creation, right at the inception of their careers to be better off.

Gurukul Emerges:

Visualizing this need and with a view to bridge the gap, NJIndiaInvest Pvt. Ltd. has set up NJ Gurkul to offer differenttraining programs to cater to the immense learning needs ofdifferent categories of people.

Gurukul Works to conceive, craft, design, develop and executeeffective training modules to energize people with right inputs.

Powered by NJs experience of over 14 years asleaders in financial advisory services, Gurukul has emergedsuccessful in conducting sizeable number of trainingssince Inception in April 2007 and enjoys lineage ofefforts put in by NJ prior to April 07.

Our Vision and Presence

Vision:


31/133

Pursuing to cause change in peoples lives.

Mission:

Energize people to realize their potential & enable them touse their strengths

Creating fraternity of empowered advisors assisting clients inwealth creation.

Presence:

NJ Gurukul enjoys a strong reach across India and having conductedtrainings at virtually every major city, is setting up its ownlearning facilities at 9 major locations.

Our Approach and Strengths

NJ Gurukul is driven by passion for a genuine idea and powered bystrengths that ensure quality delivery & scale.NJ Gurukul seeks create an enlightened community of qualityfinancial advisors capable of changing millions of lives acrossIndia and even beyond

NJ Gurukul also seeks to help people become better professionals,business personalities & achieve success in their own endeavours.For businesses, as a people partner, Gurukul seeks to groomemployees & management so that they deliver upon theirexpectations & responsibilities, successfully.

Key Strengths:


32/133

Strong TeamA strong & passionate team headed by a very senior personwith 26+ years of experience in people development.

Board of TrainersOver 60 professional Trainers empanelled across India for varioustraining modules.

Process DrivenStrong institutionalization of all processes coupled with stronguse of technology. Focus on ensuring delivery uniformity inquality & content. Training assessment mechanism in place toassess the performance.

Strong Domain KnowledgeTraining modules developed are time-tested & have proved morefunctionalrather than educational .Leveraging NJs domainexperience & deep understanding.

TechnologyOnline desks for both trainers & Gurukul members featuringmany reports & utilities.

Gurukul`s utility for customer

With its wide spectrum of offerings Gurukul is capable to be ofassistance to flowing broad categories:

Mutual Fund Employees:In assessing them on Will-Skill matrix and providing inputs onProduct knowledge and skills to perform the functions witheffectiveness. Employees can also be helped out by gettingtheir needs assessed based on their performance parametersand structured inputs for right area to seek visible


33/133

improvement at their work.

Insurance and Bank Employees (Employees of Banks,Insurance and other financial service providers):By providing inputs for AMFI certification effort. Our coursespecially designed for Bank and other financialorganizations employees makes the grasping, retentionmuch reproduction during test much easier.

Distributors of Mutual Funds (Partners/ Agency Manager/Express) :

Through integrated development program that takes them tothe realm of product knowledge, skills on advisory functions,selfexcellence program to provide a peep into themselves,reassess orientations and motives and also understand

inter personal styles and reconnect self with the businessefforts with right thrust and the tips to excel in the type ofbusiness one is in.

Employees of other organizations :Provide Knowledge, Skill and attitudinal enhancement andimprovement programs tailor made to suit the organizationalculture philosophy and practices for enhancing their capabilitiesand in turn performances.

Students of MBA/ BBA courses: To provide them awareness in variety of options available forseeking entry into and to help them acquire an insight intotheir strengths and weaknesses based on Psychometric testing andguise them towards an right option and also to offer them

awareness and orientation towards financial advisory services.Can also help them in Personality development programs and

career counseling programs.

Educational Institutions (Schools and other educationinstitutions):

To impart small simple awareness programs drawing theirattention towards savings, investments and how to leveragethe power of money working for it self. Also to provide them


34/133

orientation towards MF its utility I savings and wealthcreations. To plant in young students the ability to aspire anddream for big things and by instilling in them the disciplinefor savings and right investment for long terms and becominga sure successful person in what ever walk of life they enter.

House wives and other sections of society:Brief awareness programs signifying the right savingmethodologies and right investment options for creatingfinancial stability and achieving goals.

Superannuated people or those who opted Voluntaryretirement:

To refresh and rejuvenate them to avail advantages ofPlatform offered by us from where they can make productive

and satisfying use of their wisdom and experience andcontribute for them selves and others by picking up thefinancial advisory function to make their more power andenriching as compared to the first when they picked up what cametheir way.

Future Plans

Further mile stones to be achieved:

Impart effective training for regulatory compliances, andother development programs supporting enhancement inKnowledge, Skill and Attitude.

Mass Investor Education Campaigns.Promoting On-line training solutions.Setting up a state of the art Training Centers in 25 major cities in aphased manner.


35/133

What NJ offers

Customised Training Programme

NJ Gurukul offers progressive development trainingprograms that focus on virtually every aspect of a growingpersonality or business. Following is the list of trainings that

we offer:

Sr. No.Training

Duration in daysFor whom- Beneficiaries

Details

1SadhnaAMFI training

2Aspirants to appear for AMFI exam.

Know More

2SarthakBasic Training

2New entrants in advisory functions and employees of partners.

Know More

3


36/133

SakshamProduct training

2For performers in distributing MF

Know More

4SamarthAdvisory Skills training

2For advisors keen to enhance them selves.

Know More

5

SpandanMotivational training

2Open to all.

Know More

6

Soft Skill Training

2Open to all.

Know More

7SamanvayOrientation program

2For the trainers identified to take more sessions.

Know More

8SarathiFocusing on Customer relationship Management.

2For all advisors who aim for lasting relationships with customers for


37/133


38/133

material for candidates opting for a career in Mutual Fundadvisory.

NJ offers specialized training sessions and supplementary examoriented reading material and revision kit to give you an edgeover others. The course concentrates on imparting exam orientedtraining and in-depth coverage of all objectives of AMFIexamination. Training sessions are conducted regularly throughoutIndia at all centers. These training sessions are most preferablyconducted by experts from financial academic background.

Not only will the training give you in-depth coverage of examobjectives but also give you a view of current financial market

and investment horizons and more specifically investmentadvising in mutual funds. Clearing AMFI would be your first step inmutual fund advisory business, with a long way to go.NJ Gurukultraining will make you aware of current industry condition, youralternatives and the road ahead. AMFI Mock tests are available toall Gurukul members which helps in preparing for AMFI.

Self Tests:

With a view to facilitate members of Gurkul, to have apeep into them selves to identify their hidden self, Gurkuloffers a self test facility On-line.

Interested member can attempt the test(s) and the scoringwith brief feedback would be available to him on this desk. Forfurther information he/she can contact Gurkul throughspecified process.

MOTIVATIONAL TEST

PERSONAL EFFECTIVESS TEST


39/133

FIRO-B

360 Advisory Platform

NJ believes in 360 Advisory Platform philosophy

With this philosophy, we try to offer all possible products, services andsupport which an Advisor would need in his business.

The support functions are generally in the following areas


40/133

Business Planning and Strategy

Training and Development Self and of employees

Products and Service Offerings

Business Branding

Marketing

Sales and DevelopmentTechnology

Advisors Resources - Tools, Calculators, etc..

Research

Communications

With this comprehensive supporting platform, the NJ FundzPartners stays ahead of the curve in each respect compared to otherAdvisors/competitors in the market.

Needless to say, the complete NJ Fundz offering is hard to resist

Marketing Support

The Marketing team will help you give the relevant supportneeded for effective sales, creatingbrand and for the development of your business.


41/133

The Marketing / Sales team will help you with the following marketingsupport

Branded Flyers and One-pagers for products, new launches /NFOs, services, etc

Business Organizers, Performance Review Hand-books, etc

Communication support NJ Knowledge Edge and NJ I-Gurukulseries.

Letters, Direct Mail pieces.

Email Communications for products, new launches / NFOs,services, etc

Calculators and Tools for effective communication to clients.

Support in form of NJ websites, web services and product

development.Branded Presentations

Effective marketing support would help you complete youroffering and package it properly. Such support would also addto your effectiveness in sales activities.

NJ IndiaInvest and NJ Fundz Network enjoy a strong brand in the

industry.An NJ Fundz Network Partner leverages upon this brand in themarket to gain credibility and acceptance.

NJ aims to support the NJ Fundz Partners in marketingindirectly by contributing through written articles, advertisementsin various magazines, newspapers, etc.


42/133

Sales & Development Support

Sales and development support form an integral part at NJ. EachNJ Fundz NetworkPartner has a dedicated relationship executiveand /or a relationship Manager.

The relationship executive stays in touch with you on an ongoing,regular basis and provides you with all the support that you need.

Your requirements in terms of sales, marketing materials,application forms, etc would be taken care of.

Normally the team at NJ would help you with

Joint Calls to your clients .Presentations at your Client Meets.

Organising Sales Meets, Fairs and Workshops.

Business sales planning and helping you achieve your personalbusiness targets.

You may even get experts from industry like Sales / MarketingHeads, Fund Managers, and Senior Executives to speak at your

Client Meets. Such activities have helped our Partners to gain rapidacceptance, trust and goodwill in the markets.

The active support from the sales team from NJhas helpedtransform the businesses of many Partners working with us.

communications

Ongoing communications play a very important part in keeping intouch with you clients, having a goodwill and loyalty or simply as partof your service offering. Experience has


43/133

shown that timely, continuous and quality communications to evenunlikely clients has helped in converting them to your loyal clients.

NJ Fundz truly realise the importance of such communications. TheResearch and the Marketing teams at NJ offer many communicationsof use to you.

Under NJ Knowledge Edge seriesObjective :To keep everyone updated and well informed

Daily Market Update A roundup of market, forex, economic news.

Daily Mutual Fund Tracker A daily Debt performance review of MFschemes.Weekly Performance Report A weekly review of all the MF

schemes as per sub-types.Monthly Fund Fact Sheet A monthly publication ,

Updates, etc of important changes, events.

Under NJ I-Gurukul seriesObjective: To make the difference between information &wisdom

Articles on Investments/Economy/Finance, etc

Training to employees and associates and also to investors

Regular market analysis, stories

Business Planning

NJ has over a decade of experience in the financial advisorybusiness. During this phase the people at NJ have gained veryimportant insights and experience in successfully running anddeveloping the business.


44/133

Such a deep understanding and knowledge is also actively tapped, alllevels, in developing the business of the NJ Fundz Partners.

NJ Fundz Partners get active business planning and strategizingsupport from the team at NJ. The plans are customized at eachNJ Fundz Partner level based on his own business environment.

The dedicated relationship Executives and Managers play acrucial role in the process. Each NJ Fundz Partner thus wouldideally have his own business planning and s trategy worked out. Thewhole thing is done keeping You First principle in mind.

Proper planning and strategizing along with effective executive

support is the most potent weapon to help you grow and develop yourbusiness. At NJ, we stay with you throughout the process and beyondon an ongoing basis.

This has truly transformed the business of our Partners with respectto the quality, scope of services and the scale of business.

Printshop

At NJ we understand the mportance of an effective marketingsupport. At NJ we have initiated the Print Shop to a cutting marketingedge to our advisors.


45/133

Print Shop Features:

Pre-defined inventory / marketing materials available on anonline menu card. Advisors only need to place orders afterviewing samples online

Customisation of marketing materials for advisors to reflecttheir brand, contact details, etc

NJ does all the conceptualisation, designing, content and printingwork. Materials are sent to the advisors to the door step.

Print Shop Advantages:

Advisors get quality marketing materials with their own brand andmuch lower costs

Advisors using Print Shop services get benefits in

Client Acquisition

Client Loyalty

Communication to Existing ClientsBusiness mobilisation

Items available presently available in Print Shop:

Leaflets & Flyers


46/133


47/133

significant difference. And this is what NJ has achieved and aims tocontinue doing so.

Your Total Technology Solution

Website creation and Management .

On-line Automatic Investment Accounts to all clients .

Centralised Online Automatic Advisor Account (Partners Desk) forManagement, MIS, Portfolio Access, etc .

Marketing, Sales and other support through application oftechnology .

There exists a strong difference in quality, scope and type of

reports offered by NJ against other distributors. NJ, with very strongdomain knowledge especially in mutual funds, and with investment-management perspective offers reports that are superior to otheradvisors and brokers and are even superior compared to whatmany good banks offer.

Further, the Partners Desk service offered by NJ is a pioneeringeffort in the industry. The kind of tools and reports offered on theDesk is unique, more useful and superior to those offered by otherdistributors.

Data Management at NJ

NJ has made arrangements to receive the following

Details of transaction of any nature in Mutual Funds by anyclient, through our Associates or us, on a Daily basis .

NAV, Dividend, and other details of all the Mutual Fund schemeson a Daily basis

Monthly Portfolio and other important information of all the MutualFund schemes

All relevant details of Direct Equities like Prices, Dividends,Bonus, Market Capitalisations, etc on a Daily basis .


48/133

All relevant market related information in addition toeconomic, event-specific, key economic variables, etc on a Dailybasis .

All the data is effectively stored and managed at NJ and thesame in used in providing you and your clients with up-to-dateinformation and reports.

Partners Desk

The Partners Desk is an unique offering of great use to IndependentFinancial Advisors. The Partners Desk lies at the heart of the NJFundz offering exclusive to NJ Fundz Partners. The Partners Desk isa web-based online account, which is updated on a daily basis.

The Partner Deskis the tool to keep you in full control of yourbusiness. The following are the tools available to you at the desk

Tools to Service Nests subscribed by you Includes Mutual Fund Nest, Web Nest, Wealth Nest, etc

Comprehensive MIS Reports

Client Portfolio Access

1 AUM, Income, Brokerage, Transaction, and many other reports

2 Comprehensive SIP Reports

3 Important Client reports


49/133

The Partners Desk gives you all the reports and insights that willhelp you in keeping records and management of your business.

With Partners Desk

You do not need to maintain back-office records and reports withyourself

You do not need to maintain records of the investments done byyour clients

You can centrally manage your NJ Services, send Queries, checkEmails, etc

You can effectively use reports/tools to improve your services toyour clients and develop your business

You can do all the above anytime, anywhere!

TRAINING & SUPPORT

NJ Research Support

Original, Unbiased Analysis

NJ has its own Research team. The research team analyses andstudies the markets, investment products, and other importantthings that are important from advisors point of view. The Researchteam also undertakes study and analysis on the mutual fund housesand schemes. Recommendations from the Research team truly reflectthe unbiased nature of the study it undertakes.

Objective of the research


50/133

Keep all associates, employees and customers well informed sothat they are able to make their own decisions.

Provide guidance, suggestions, recommendations, etc as perneeds and study undertaken .

To provide tools which would help associates/employees make

better decisions for their clients and render quality services.

The Research team follows a set process and methodology. Thefund houses and their schemes are evaluated on multiple parameterslike

AMC Due Diligence

Service Standards Parentage & Pedigree of management

Soundness of the Trustees

Institutionalised or Personalised?

Information sharing & Compliance

Investment Philosophy Clarity/flavour driven?

Adherence to philosophy & process

Past historical performance and variation in performance .

We believe that ideally good schemes should form a part of aclients portfolio. The research team regularly communicates suchanalysis / results to the employees and associates.

I- GURUKUL

I-Gurukul is a program run by NJ Fundz Network to educate and trainFinancial Advisors. The I-Gurukul program is run throughout the year atall the Branches of NJ.

The I-Gurukul Objectives :To impart all the important knowledge and skills to FinancialAdvisors necessary to be successful both as a professional and a


51/133

business person.

To raise the quality and standard of such Advisors and bring themon par with the best Advisors in the industry.

To ultimately benefit the investors with quality services, offerings andrecommendations

The Team:

The Team at I-Gurukul combines rich industry experience along with in-depth knowledge of the financial advisory field and the products /markets. The team has been carefully selected keeping in mind theobjective of the programme, from among the best in the companyas well as from the industry.

The Modules:

AMFI Module:For beginners who wish to start their career in the Mutual FundIndustry.

Basic Module:Free for NJ Fundz Partners, this module gives the basic knowledgeand understanding of Mutual Funds, Equities, Debt and NJ Services,etc

Intermediary Module (yet to be started): The Intermediary model would focus on your soft skills. Themodule will be taken by experts from the industry specializing in the

respective fields. The objective of this module is to improve themuch-needed soft skills of the advisors in areas of presentation,speech, body language, effective communications, effective sales, self-motivation, etc

Advanced I:This module aims to further enrich the knowledge of the Advisors. The


52/133

topics covered are Portfolio Construction & Restructuring, FinancialConcepts and Mathematics, Taxation, etc

In case you are a fresher and wish to appear for AMFI Mutual FundsCertification exam, please visit any of our service centers and apply.

NJ Fundz Partners can register for the Modules they areinterested in with their Relationship Executives. Similarly they canget in touch with them to know more on the topics covered, dates of

Training, fees, speakers, etc

Financial Tools & Presentations

NJoffers many useful financial tools and calculators to NJ Fundz Partners.Such tools are very useful increating financial plans for clients,preparation of cash flows, etc.

NJ Tools & Calculators

Monthly Dynamic Debt Analysers

Dynamic SIP Calculator

Dynamic STP Calculator

Delay Cost Calculator

Insurance Planning/Comparison Tool

NJ Financial Planning Tool

In addition to Financial Tools and Calculators, each NJ Fundz Partneris also presented with NJ Sales Kit a great compilation of selecteduseful presentations, which would help enrich the knowledge ofthe Advisors. The presentations can also be used whilecommunicating with their clients.

Further the team at NJ also provides customized presentations to


53/133

Partners to be presented to their clients, either for one-to-one basis orfor group presentations.

The Partners also receive presentations of newproducts/launches/NFOs by the mutual fund houses.

Customer Care

NJ Customer Care offers you with a 'Single Service Point' to allthe advisors to help solve their customer queries. Our centralisedteam of Customer Care Executives would solve your queries at theearliest. You can also view the latest status of all your queries online.

As an NJ Advisor you may submit your queries to Customer CaseExecutives by

Telephonic

Email or

Online directly through your Advisors (Partners) Desk

NJ has also introduced a TOLL FREE number for NJ Customer Care.Members of NJ Fundz Network can now call on 1800 233 0155 fromthroughout India and submit their Queries.

Customer Care Objectives:

Solve customer queries within defined turn - around times.Serve Advisors as single contact point for all service related issues.

Provide complete transparency and information to customers onqueries.

Set a quality customer service benchmark in the industry .

Query Management


54/133

Automated On-line Query Management Module is used toefficiently handle the queries of our Advisors/Associates.

Query entered is automatically forwarded to concerned person whocan immediately solve the same.

Status is updated online and turn around time for different types

of queries defined.Alerts for unsolved queries is automatically shooted to the

higher management in instill discipline .Stringent actions taken against non-compliance .

NJ Advantage

An Advisor working as NJ Fundz Network Partner enjoys manyprivileges and advantages over any other normal advisor.Check list that differentiates NJ Fundz Network Partner from the crowd.

Services NJpartner - Non-NJ Advisor

Superior Client Service

On line personal investment Account to Clients YesQuality Comprehensive, insightful Reports to clients YesAutomatic Capturing of MF Transaction YesOn line Query management module for queries YesSuperior and Comprehensive product offeringsComprehensive Email Subscriptions

Effective Marketing and Sales Support

Web Brand presence with your own website YesComplete access to clients accounts YesComprehensive Marketing Support YesComprehensive Sales Support YesRegular Events, Seminars and meets Yes

Administration and Back Office Support


55/133

Your own online Business Accounts on partner desk YesAutomatically Updated Online MIS Report YesInsightful reports on business and clients Yes

Transaction processing/acceptance at NJ service centres. Yes

On going Training and Personal Growth NJ partner- Non-NJ Advisor

Comprehensive training modules under I-Gurukul YesRegular interaction with industry experts YesRegular Personal Meetings and Group Meetings YesSupport and help on an on-going day to day basis Yes

Business Planning and Strategy

Business strategy and planning assistance from expert Yes

On-going planning and management guidance Yes

Mock AMFI Exam

This Mock AMFI Exam is for Prospective NJ Fundz Partners.

This is a 100 marks exam.

Total time for this exam is of 2 hours. The exam shall have different questions for different

candidates.Examination consisting of Multi Choice Questions, only one

option is correct.

You can skip any number of questions as well as De-selectthe selected option.

You can revamp / reconsider your questions within exam time or


56/133

until you submit your exam.There is a negative marking for each wrong answer. Negative

marking is 25% of the correct mark. If question is of 1 markthen 0.25 and if its of 2 marks then 0.5 mark will be deductedfrom your total score.

After the completion of your exam, you will be provided with theresult. Your given answers will be compared with the correctanswers we are having in our database, depending upon that yourscore will be generated. You will have your result according tothe chapters.

OPPORTUNITIES

Mutual Fund Advisor

A Mutual Fund Advisor is essentially a person who provides advisoryand/or distribution services in mutual funds. Normally he is aperson who sells schemes of multiple fund houses. His client profileis generally retail in nature with investments mostly into equity-oriented schemes.

Ideal For:A person who is interested in the field of Investment Advisory andmanagement of wealth for clients.A person who realises the importance and responsibility ofmanaging investments of clients


57/133

Career Development and Growth scope:The mutual fund industry has a huge potential in a country like India.This is just the right time to enter into markets and to create yourmarket. Raising income levels, lack of other attractive investmentoptions, growing aggressiveness and acceptability of new products is

transforming the savings habits of the people.

If you feel you can offer quality services and reach out to this largesection of customers, you would do well. Over time you canincrease your man-power, resources, offices, etc and cater to a largenetwork of clients, who would now range from retail to companies, co-operative societies, firms, trusts, HNIs, NRIs, etc.

You may even add new products and solutions in your offering overtime.

Why should you be a Mutual Fund Advisor?

Love investment/financial advisory roleOffer quality services and create wealth for my clientsGreat opportunity for growth, service and respect

What should you do Now?

The first step in becoming a Mutual Fund Advisor isCertification from AMFI (Association of Mutual Funds of India) anindustry body for mutual funds. You need to appear and pass the AMFIMutual Funds Advisory Module Exam.


58/133

The second step is to get a Code called as ARN AMFIRegistration Number, after passing the exam. After getting the ARN,you can start with your advisory and distribution business.

NJ Fundz Network can help you to become a Mutual FundAdvisor. We provide the requisite training and eductional materialfor successfully appearing for the exams. This training, given by

Professional /experts working in the industry, would also be of usewhen you start your business. We can also help you to register andappear for the exams.

Life at NJ

Enthusiasm, Enterprise, Education and Ethics form the fourpillars at NJ. At NJ, the vibrant energy and enthusiasm of theenterprising drive to excel flows freely throughout the organization.People evolve to be more effective, efficient, and result oriented.Knowledge is inherent due to the education-centric approachand the experience in providing services to different advisorsacross diverse product profiles. For people at NJ success is not anew word, but are regular stepping-stones to realizing the one vision

that everyone shares

People are perhaps the most important assets of any company. It issaid that, it is not the company that grows but the people. NJrecognizes this important fact and undertakes rigorous trainingand development activities for enhancing the entire team atNJ. Responsibility, freedom and resources are given to everyone tolearn and grow. NJ also has a 360 Degree Performance Appraisalsystem in place where a holistic evaluation is done of all the

employees.

NJ is a great place to work. Here,


59/133

The ones with the right spirit first enter NJ, and then they get thewings to fly!

NJ has over a decade of experience in the investment advisory field.The company is one of the leading distribution houses in the mutual

fund industry. The company enjoys very strong goodwill and name inthe industry. We see a very strong future growth for yourself and ourbusinesses.

NJ offers a great environment, opportunity to learn and freedomfor you to grow and develop yourself. Being a part of a growingindustry, within a growing firm with entrepreneurial freedom canwork wonders for you.

NJ Fundz Network Partner

A NJ Fundz NetworkPartner is essentially a Professional, QualityFinancial Advisor who offers comprehensive service and multiplesolutions to his clients. A NJ Fundz Network Partners offering to hisclients is on par and in cases even better than what the biggest

competitors in the industry offer. The key-differentiating factor is thetechnology that a NJ Fundz Partner uses to deliver services & solutionsto clients and indeed to manage, develop his own business.

With active support and services from NJ, a NJ Fundz Partner isan ideal, preferred advisor of any client / investor. The normalMutual Fund and Financial Advisors in the industry can truly transformthemselves and their business just by being on the NJ FundzNetwork.

Ideal For:A person who is interested in the field of Financial Advisory andcomplete Financial Planning for Clients.A person who has a vision, passion to build and transform hisbusiness to the next levelA person who appreciates the importance and role of quality


60/133

services and support to business and to clients.

Why NJ ?

Case of Independent Advisors Threats and Competition:The present scenario of the advisory and distribution business inIndia in skewed towards large, corporate distributors like banks,brokerage houses, etc. The independent financial advisors havelimited resources at their end to offer quality services and solutions totheir clients. They generally bank on their reach and accessibility totheir clients. But even this is under threat with increasingpenetration of the big competitors and increased usage of Internet.

Further, a normal individual advisor/distributor has manyweaknesses that far out-weight his advantages. As big competitorspenetrate the market and offer superior technology-backed services,the niche advantages stands threatened. With all this and more, theLong-term survival and growth of business comes into question.

What would you do with limited resources to counter thethreat by large competitors?

Even if you are a very good advisor with a large clientele base How do you ensure that your customers remain loyal and youdevelop and grow your business?

There is only one answer to these and many other questions Youneed to transform your business keeping the future in mind.


61/133

NJ Fundz NetworkNJ offers a unique, complete business platform to independentfinancial advisors. NJ ensures that the weaknesses and threats ofsuch advisors and eliminated and they come on par with the best

in the industry in terms of services, solutions andtechnology. NJ Fundz Networkbecomes the force behind you andyour business. NJ Fundz Network truly helps you to transform yourbusiness to a new higher level.

With the NJ support you can now freely focus adding and developingyour business and ensure a great future for yourself.

SERVICES

Mutual Fund NEST

The Mutual Fund Nest is an unique platform wherein your clientswould have a separate mutual fund investment account, availableonline, automatically reflecting all mutual fund transactions routedthrough you.

This service is would be great for all your mutual fund investorsinvesting through you. They would truly appreciate this 'CompleteOnline Mutual Fund Investment Account' with truly comprehensive,insightful reports available to them. This service is a basic serviceavailed by all NJ Fundz Partner

FEATURES


62/133

UniqueThis product is unique, one of its kind, in the industry especially withthe scope, type and quality of reports that is available.

On-line AutomaticThe account is available online - any time anywhere to your clients.Mutual Fund Nest reflects the 'real value' of your mutual fundinvestment with the values updated on a daily basis. Further all mutualfund transactions of your clients routed through you will only beautomatically displayed, creating a preference for your serviceand a barrier for your competitors to break.

ComprehensiveThe offering is comprehensive and complete given the contents and

from utility point of view. The account is very comprehensive with thescope, extent, quality of reports and the insights that they deliver toyour clients.

REPORTS

Portfolio

These are truly unique reports giving valuable insights to your clientson their investments. Reports include - Sector Exposures, AMCExposures, Dividend History, etc

TransactionThis report gives complete records of all the transactions made byyour clients.


63/133

ValuationThese reports, available with sub-options, would help your clients tokeep a regular track on the growth of their investments in a betterway.

Profit & Loss Your client would get complete P&L computation reports fortaxation purposes with break-ups of short-term & long-term capitalgains. The reports are available with sub-options

PerformanceThis would give the overall performance of all the investments of yourclients. The reports are available with sub-options.

CRM Nest

Customer Relationship Management forms a crucial part inestablishing a growing and healthy relationship with your clients.Customer loyalty and satisfaction plays a very important role in the

success of any Advisor. Studies have shown that it costs 7 times moreto acquire a client than to retain a client. Hence proper customerrelationship management (CRM) forms an important element in theoverall success of the advisory business.

Realising the importance of CRM, NJ will be soon launching CRMNest. This module would help advisors to effectively manage theirclients and provide quality services to them. The CRM Nest would


64/133

also allow you to know your customers better. This is also verycrucial since different customers have different expectations fromyou. The CRM Nest would also allow you to manage your time moreproductively and would help you streamline your processes in a betterway.

CRM Nest Features:

Client Service Management

Client Business Reports

Time Management

Automated Utilities

Life Nest

The existing hectic lifestyles and increasing complexity anduncertainty in life has made protection a very crucial goal for eachof us. Adequate protection of family in advent for any unforeseenevents or circumstances should be the first task of any individual. As

an advisor, you have the onus of helping your clients get properprotection at all times.

Life Nest would help you as an advisor to properly plan and monitorthe protection of your clients in a better way. Life nest would also giveyou information on the existing insurance plans, their features, etcavailable in the markets. You may also track your clients'investments in ULIPs and provide them updated reports on the same.

By adding Life Nest, you can better project yourself as a completefinancial advisor to your clients taking care of his investment andprotection needs.

Life Nest Features:Planning Protection for your Clients


65/133

Tracking investments in ULIPs (updated on daily basis)Premium Due reports for Clients and much more

Financial Planing Nest

As an advisor, you have the onus to undertake completeFinancial Planning for your clients. Financial Planning is in fact a

must for every individual. A detailed Financial Plan would make itpossible for your clients to achieve their goals and objectives in life. AtNJ we realise the importance of Financial Planning (FP), both fromthe perspective of an Advisor and a Customer.

NJ FP Nest is an online zone where you as an advisor would be in aposition to prepare detailed Financial Plans for your Clients. TheFinancial Plans of the clients would be saved for your future referencesand for ongoing monitoring of the Plans.

The FP Nest would allow you to plan for the various goals andobjectives for your clients, and also take print-outs of the same so asto present it to your clients. You can also prepare Financial Plans foryour prospective clients from the FP Nest Needless to say, the FPNest would make financial planning process, a very easy, simple tounderstand exercise for you to undertake

FP Nest Features:

Goal Planning for:

Child Education

Child Marriage


66/133

Retirement

Purchase of Home / Car

Protection to Family

Taking in to consideration

Risk profile of client

Savings Potential

Existing Investments

Existing Protection

With FP Nest you would now help your clients achieve their goals in

life

WEB NEST

Web Nest is a great product and a must for any advisor. It basicallyis a service wherein you get your own branded website with certainadditional features/contents along with a Client Desk from where yourClients can login to their on-line accounts.

You will have a choice of selecting the domain name as -www.yourname.njfundz.com for your website.

FEATURES

Your BrandThe Website will highlight your own brand. You can put your name,logo along with your contact details, introduction, etc. Your clients willlog-in from your website, thus creating a preference/brand for yourservice.


67/133

On-line AutomaticAll the reports and contents available on the website will beupdated on a daily basis, automatically so that all the informationavailable is the latest. Needless to say your, clients on-line investmentaccounts will be updated daily.

ComprehensiveThe offering is comprehensive and complete given the contents andfrom utility point of view. You do not have to bother aboutmaintenance, upgradation, updation of data, etc from your end.

CONTENTS

Client Desk Your clients can directly login from Client Desk on your website toview their online accounts. A great value-add, this can highlight yourbrand and service.

Returns CalculatorYour clients can get historical returns of any scheme/s according to

their sub-types as on any given date.

SIP Calculator Your clients can even get historical SIP returns for any selectedperiod and amount.

Application Forms


68/133

Offer download facility to your clients for Application Forms of MutualFund Schemes of any AMC

Planners Your clients can make use of the financial planning tools like ChildEducation, Child Marriage and Retirement Calculators on your website.

Guest BookVisitors to your website can submit their details online along with anycomments/requests for your reference. You can later access thisinformation and even contact them.

Wealth NEST

Wealth Nest is an unique, revolutionary product/platform whereinyour client would have complete investment account covering allinvestment assets. You can offer this unique, comprehensiveinvestment account to your selected important clients.

This service is ideal for your big clients - HNIs and Corporates alike,where you can make a head-start with this product and impress themand make them your loyal clients. Such an integrated product with thequality, scope of reports is unique in the industry.


69/133

FEATURES

UniqueThis product is unique, one of its kind, in the industry combining alldifferent investment assets and products into a single automatic on-

line account. The scope of assets covered, structure and the extent /quality of reports makes it a winner throughout.

Assets CoveredThe Assets covered are: All Mutual Fund Schemes (routed throughyou), Direct Equity and Fixed Income Instruments with include - BankDeposits, Company Fixed Deposits, Bonds, Debentures, PPF,Debentures, NSS, Postal Savings, etc

On-line AutomaticThe account is available online - any time anywhere to your clients.Wealth nest reflects the 'real value' of your investments, especiallymutual funds and direct equities, where the values are updated on adaily basis. Further all mutual fund transactions of your clients routedthrough you will only be automatically displayed, creating apreference for your service and a barrier for your competitors to break.

ComprehensiveThe offering is comprehensive and complete given the contents andfrom utility point of view. All major investment avenues that anormal investor has is been covered under Wealth Nest. Theservice offers quality, insightful reports to your clients on theirinvestments.

REPORTS

Consolidated ReportsConsolidated Asset

AllocationNet Asset

Interest Income

Equity Investment


70/133

Profit & LossDirect Equity

Transaction

Valuation

Profit & Loss

Demat AccountMutual Funds

Complete 'MutualFund Nest

Valuation Reports

Transaction Reports

Profit & Loss Reports

Performance Reports

Portfolio Reports

Fixed Income InstrumentsInterest Income

Reports

Maturity Reports

Transaction Reports

INCENTIVE SCHEME ( RUN SCHEME)

500 Runns A.C/Refrigerator/Washing Machine1000 Runns Desktop Computer/Sony Handicam1600 Runns Honda Activa/Dubai Tour for couple 4 Days 3 Nights2000 Runns - Laptop3000 Runns Laptop and (Desktop Computer or Sony Handicam).4000 Runns 44 Samsung TV or Couple tour to Singapore &

Malaysia.6000 Runns Couple tour to Singapore & Malaysia and

Laptop.8000 Runns Couple tour to Switzerland for 9 days 8

nights.10000 Runns Maruti Omni12000 Runns Maruti Alto16000 Runns Tata Indica


71/133

30000 Runns Honda Activa130000 Runns Mercedes Benz

OBJECTIVE OF STUDY

Objectives of study


72/133

1Understanding Mutual Funds

2Understanding Market Potential of Mutual funds.

3Analyzing Awareness of Mutual Funds amonginsurance advisors.

Understanding Mutual Funds

Mutual fund is a trust that pools money from a group of investors(sharing common financial goals) and invest the money thus collectedinto asset classes that match the stated investment objectives of thescheme. Since the stated investment objectives of a mutual fund


73/133

scheme generally forms the basis for an investor's decision tocontribute money to the pool, a mutual fund can not deviate from itsstated objectives at any point of time.

Every Mutual Fund is managed by a fund manager, who using hisinvestment management skills and necessary research worksensures much better return than what an investor can manage onhis own. The capital appreciation and other incomes earnedfrom these investments are passed on to the investors (also known asunit holders) in proportion of the number of units they own.


74/133

When an investor subscribes for the units of a mutual fund, hebecomes part owner of the assets of the fund in the same proportionas his contribution amount put up with the corpus (the total amount of

the fund). Mutual Fund investor is also known as a mutual fundshareholder or a unit holder.Any change in the value of the investments made into capital marketinstruments (such as shares, debentures etc) is reflected in the NetAsset Value (NAV) of the scheme. NAV is defined as the marketvalue of the Mutual Fund scheme's assets net of its liabilities. NAV of ascheme is calculated by dividing the market value of scheme'sassets by the total number of units issued to the investors.

For example:

? If the market value of the assets of a fund is Rs. 100,000? The total number of units issued to the investors is equal to 10,000.? Then the NAV of this scheme = (A)/(B), i.e. 100,000/10,000 or 10.00

59


75/133

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

? Then his total contribution to the fund is Rs. 50 (i.e. Number of unitsheld multiplied by the NAV of the scheme)

Mutual Fund Operation Flow Chart

The flow chart describes broadly the working of a mutual fund:

ADVANTAGES OF MUTUAL FUND

1.Portfolio Diversification

Mutual Funds invest in a well-diversified portfolio of securities whichenables investor to hold a diversified investment portfolio (whetherthe amount of investment is big or small).

2.Professional Management

Fund manager undergoes through various research works andhas better investment management skills which ensure higherreturns to the investor than what he can manage on his own.

3.Less Risk


76/133

Investors acquire a diversified portfolio of securities even with asmall investment in a Mutual Fund. The risk in a diversified portfoliois lesser than investing in merely 2 or 3 securities.

4.Low Transaction Costs

Due to the economies of scale (benefits of larger volumes),mutual funds pay lesser transaction costs. These benefits are passedon to the investors.

5.Liquidity

An investor may not be able to sell some of the shares held by himvery easily and quickly, whereas units of a mutual fund are far moreliquid.

6.Choice of Schemes

Mutual funds provide investors with various schemes with differentinvestment objectives. Investors have the option of investing in ascheme having a correlation between its investment objectives andtheir own financial goals. These schemes further have differentplans/options

7.TransparencyFunds provide investors with updated information pertaining tothe markets and the schemes. All material facts are disclosed toinvestors as required by the regulator.

8.Flexibility

Investors also benefit from the convenience and flexibility offeredby Mutual Funds. Investors can switch their holdings from a debt

scheme to an equity scheme and vice-versa. Option of systematic (atregular intervals) investment and withdrawal is also offered to theinvestors in most open-end schemes.


77/133

9.Safety

Mutual Fund industry is part of a well-regulated investmentenvironment where the interests of the investors are protected by theregulator. All funds are registered with SEBI and completetransparency is forced.

DISADVANTAGES OF MUTUAL FUND

1.Costs Control Not in the Hands of an Investor

Investor has to pay investment management fees and funddistribution costs as a percentage of the value of his investments(as long as he holds the units), irrespective of the performance of thefund.

2.No Customized Portfolios

The portfolio of securities in which a fund invests is a decision takenby the fund manager. Investors have no right to interfere in the

decision making process of a fund manager, which some investorsfind as a constraint in achieving their financial objectives.

3.Difficulty in Selecting a Suitable Fund Scheme

Many investors find it difficult to select one option fromthe plethora of funds / schemes / plans available . For this, theymay have to take advice from financial planners in order to invest inthe right fund to achieve their objectives.


78/133

TYPES OF MUTUAL FUNDS

General Classification of Mutual Funds

Open-end Funds

Funds that can sell and purchase units at any point in time areclassified as Open-end Funds. The fund size (corpus) of an open-endfund is variable (keeps changing) because of continuous selling (toinvestors) and repurchases (from the investors) by the fund. Anopen-end fund is not required to keep selling new units to theinvestors at all times but is required to always repurchase, when aninvestor wants to sell his units. The NAV of an open-end fund iscalculated every day.

Closed-end Funds

Funds that can sell a fixed number of units only during the New FundOffer (NFO) period are known as Closed-end Funds. The corpus of aClosed-end Fund remains unchanged at all times. After the closureof the offer, buying and redemption of units by the investors directlyfrom the Funds is not allowed. However, to protect the interests ofthe investors, SEBI provides investors with two avenues to liquidate

their positions:

1Closed-end Funds are listed on the stock exchanges whereinvestors can buy/sell units from/ to each other. The trading isgenerally done at a discount to the NAV of the scheme. The NAV of aclosed-end fund is computed on a weekly basis (updated every

Thursday).


79/133

1Closed-end Funds may also offer "buy-back of units" to the unitholders. In this case, the corpus of the Fund and its outstandingunits do get changed.

Load Funds

Mutual Funds incur various expenses on marketing, distribution,advertising, portfolio churning, fund manager's salary etc. Many fundsrecover these expenses from the investors in the form of load. Thesefunds are known as Load Funds. A load fund may impose followingtypes of loads on the investors:

Entry Load - Also known as Front-end load, it refers to theload charged to an investor at the time of his entry into ascheme. Entry load is deducted from the investor's contribution

amount to the fund.Exit Load - Also known as Back-end load, these charges are

imposed on an investor when he redeems his units (exits fromthe scheme). Exit load is deducted from the redemptionproceeds to an outgoing investor.

Deferred Load - Deferred load is charged to the scheme overa period of time.

Contingent Deferred Sales Charge (CDSC) - In some schemes,the percentage of exit load reduces as the investor stays longer

with the fund. This type of load is known as Contingent DeferredSales Charge.

No-load Funds

All those funds that do not charge any of the above mentioned loadsare known as No-load Funds.


80/133

Tax-exempt Funds | Non-Tax-exempt Funds

Tax-exempt Funds

Funds that invest in securities free from tax are known as Tax-exempt

Funds. All open-end equity oriented funds are exempt fromdistribution tax (tax for distributing income to investors). Longterm capital gains and dividend income in the hands of investors aretax-free.

Non-Tax-exempt Funds

Funds that invest in taxable securities are known as Non-Tax-exemptFunds. In India, all funds, except open-end equity oriented funds areliable to pay tax on distribution income. Profits arising out of sale ofunits by an investor within 12 months of purchase are categorized

as short-term capital gains, which are taxable. Sale of units of anequity oriented fund is subject to Securities Transaction Tax (STT).STT is deducted from the redemption proceeds to an investor.

BROAD MUTUAL FUND TYPES


81/133

1. Equity Funds

Equity funds are considered to be the more risky funds as

compared to other fund types, but they also provide higher returnsthan other funds. It is advisable that an investor looking to invest inan equity fund should invest for long term i.e. for 3 years or more.

There are different types of equity funds each falling into differentrisk bracket. In the order of decreasing risk level, there are followingtypes of equity funds:

A. Aggressive Growth Funds - In Aggressive Growth Funds, fund


82/133

managers aspire for maximum capital appreciation and invest in lessresearched shares of speculative nature. Because of thesespeculative investments Aggressive Growth Funds become morevolatile and thus, are prone to higher risk than other equity funds.

B. Growth Funds - Growth Funds also invest for capital appreciation(with time horizon of 3 to 5 years) but they are different fromAggressive Growth Funds in the sense that they invest incompanies that are expected to outperform the market in thefuture. Without entirely adopting speculative strategies, GrowthFunds invest in those companies that are expected to post aboveaverage earnings in the future.

C. Speciality Funds - Speciality Funds have stated criteria forinvestments and their portfolio comprises of only thosecompanies that meet their criteria. Criteria for some speciality fundscould be to invest / not to invest in particular regions /companies. Speciality funds are concentrated and thus, arecomparatively riskier than diversified funds.. There are followingtypes of speciality funds:

iSector Funds: Equity funds that invest in a particular

sector/industry of the market are known as Sector Funds.The exposure of these funds is limited to a particular sector(say Information Technology, Auto, Banking, Pharmaceuticalsor Fast Moving Consumer Goods) which is why they are morerisky than equity funds that invest in multiple sectors.

iiForeign Securities Funds: Foreign Securities Equity Fundshave the option to invest in one or more foreign companies.Foreign securities funds achieve international diversificationand hence they are less risky than sector funds. However,

foreign securities funds are exposed to foreign exchange raterisk and country risk.


83/133


84/133

iv

DE. Equity Index Funds - Equity Index Funds have theobjective to match the performance of a specific stock marketindex. The portfolio of these funds comprises of the samecompanies that form the index and is constituted in the sameproportion as the index. Equity index funds that follow broadindices (like S&P CNX Nifty, Sensex) are less risky than equityindex funds that follow narrow sectoral indices (likeBSEBANKEX or CNX Bank Index etc). Narrow indices are lessdiversified and therefore, are more risky.

f. Value Funds - Value Funds invest in those companies that havesound fundamentals and whose share prices are currentlyunder-valued. The portfolio of these funds comprises of sharesthat are trading at a low Price to Earning Ratio (Market Price perShare / Earning per Share) and a low Market to Book Value(Fundamental Value) Ratio. Value Funds may select companiesfrom diversified sectors and are exposed to lower risk level ascompared to growth funds or speciality funds. Value stocks are

generally from cyclical industries (such as cement, steel, sugaretc.) which make them volatile in the short-term. Therefore, it isadvisable to invest in Value funds with a long-term time horizon asrisk in the long term, to a large extent, is reduced.

g. Equity Income or Dividend Yield Funds - The objective ofEquity Income or Dividend Yield Equity Funds is to generatehigh recurring income and steady capital appreciation for investorsby investing in those companies which issue high dividends (suchas Power or Utility companies whose share prices fluctuatecomparatively lesser than other companies' share prices). EquityIncome or Dividend Yield Equity Funds are generally exposed to thelowest risk level as compared to other equity funds.


85/133

2. Debt / Income Funds

Funds that invest in medium to long-term debt instruments issuedby private companies, banks, financial institutions, governmentsand other entities belonging to various sectors (like infrastructurecompanies etc.) are known as Debt / Income Funds. Debt fundsare low risk profile funds that seek to generate fixed currentincome (and not capital appreciation) to investors. In order toensure regular income to investors, debt (or income) fundsdistribute large fraction of their surplus to investors.

Although debt securities are generally less risky than equities, they aresubject to credit risk (risk of default) by the issuer at the time ofinterest or principal payment. To minimize the risk of default, debtfunds usually invest in securities from issuers who are rated by creditrating agencies and are considered to be of "Investment Grade". Debt

funds that target high returns are more risky. Based on differentinvestment objectives, there can be following types of debt funds:Diversified Debt Funds - Debt funds that invest in all securitiesissued by entities belonging to all sectors of the market areknown as diversified debt funds. The best feature of diversified debtfunds is that investments are properly diversified into all sectorswhich results in risk reduction. Any loss incurred, on account of defaultby a debt issuer, is shared by all investors which further reducesrisk for an individual investor.

aFocused Debt Funds* - Unlike diversified debt funds,focused debt funds are narrow focus funds that are confinedto investments in selective debt securities, issued bycompanies of a specific sector or industry or origin. Someexamples of focused debt funds are sector, specialized andoffshore debt funds, funds that invest only in Tax FreeInfrastructure or Municipal Bonds. Because of their narrow


86/133

orientation, focused debt funds are more risky as compared todiversified debt funds. Although not yet available in India, thesefunds are conceivable and may be offered to investors very soon.

bHigh Yield Debt funds - As we now understand that risk ofdefault is present in all debt funds, and therefore, debt funds

generally try to minimize the risk of default by investing insecurities issued by only those borrowers who are considered tobe of "investment grade". But, High Yield Debt Funds adopt adifferent strategy and prefer securities issued by thoseissuers who are considered to be of "below investmentgrade". The motive behind adopting this sort of risky strategy isto earn higher interest returns from these issuers. These fundsare more volatile and bear higher default risk, although they mayearn at times higher returns for investors.

cAssured Return Funds - Although it is not necessary that afund will meet its objectives or provide assured returns toinvestors, but there can be funds that come with a lock-in periodand offer assurance of annual returns to investors during the lock-in period. Any shortfall in returns is suffered by the sponsors orthe Asset Management Companies (AMCs). These funds aregenerally debt funds and provide investors with a low-riskinvestment opportunity. However, the security of investmentsdepends upon the net worth of the guarantor (whose name is

specified in advance on the offer document). To safeguard theinterests of investors, SEBI permits only those funds to offerassured return schemes whose sponsors have adequate net-worth to guarantee returns in the future. In the past, UTI hadoffered assured return schemes (i.e. Monthly Income Plans of UTI)that assured specified returns to investors in the future. UTI was notable to fulfill its promises and faced large shortfalls in returns.Eventually, government had to intervene and took over UTI'spayment obligations on itself. Currently, no AMC in India offersassured return schemes to investors, though possible.

aFixed Term Plan Series - Fixed Term Plan Series usually areclosed-end schemes having short term maturity period (of lessthan one year) that offer a series of plans and issue units to


87/133

investors at regular intervals. Unlike closed-end funds, fixed termplans are not listed on the exchanges. Fixed term plan seriesusually invest in debt / income schemes and target short-terminvestors. The objective of fixed term plan schemes is to gratifyinvestors by generating some expected returns in a short period.

bGilt Funds

Also known as Government Securities in India, Gilt Funds invest ingovernment papers (named dated securities) having medium tolong term maturity period. Issued by the Government of India,these investments have little credit risk (risk of default) andprovide safety of principal to the investors. However, like all debtfunds, gilt funds too are exposed to interest rate risk. Interest ratesand prices of debt securities are inversely related and any changein the interest rates results in a change in the NAV of debt/gilt

funds in an opposite direction.

4. Money Market / Liquid Funds

Money market / liquid funds invest in short-term (maturingwithin one year) interest bearing debt instruments. Thesesecurities are highly liquid and provide safety of investment,thus making money market / liquid funds the safest investmentoption when compared with other mutual fund types. However,even money market / liquid funds are exposed to the interest raterisk. The typical investment options for liquid funds include TreasuryBills (issued by governments), Commercial papers (issued bycompanies) and Certificates of Deposit (issued by banks).

5. Hybrid Funds

As the name suggests, hybrid funds are those funds whose portfolioincludes a blend of equities, debts and money market securities.Hybrid funds have an equal proportion of debt and equity in theirportfolio. There are following types of hybrid funds in India:


88/133

aBalanced Funds - The portfolio of balanced funds

Download - INJ Report

Top Related