to find out whether lic agent believe in financial planning or not

7/31/2019 To find out whether LIC agent believe in Financial Planning or not.

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INDUSTRY BACKGROUND

CURRENT SCENARIO OF FINANCIAL MARKET

India's economy is on the fulcrum of an ever-increasing growth

curve. With positive indicators such as a stable 8 percent annual growth,

rising foreign exchange reserves of close to US$ 140 billion, a booming

capital market with the popular "Sensex" index topping the majestic

10,000 mark, flowing foreign direct investment (FDI) close to US$ 8

billion, and a more than 20 per cent surge in exports, it is easy to grasp

why India is a leading destination for foreign investment.

The GDP grew by 7.4 per cent in the first quarter and 6.6 per cent in

the second quarter of the current year, compared with 5.3 per cent and8.6 per cent in the corresponding quarters of the previous year. The

Economic Survey 2005-06 estimates that the GDP will grow at 8.1 per

cent. Growth of Gross Domestic Product (GDP) at constant prices in

excess of 8.0 per cent has been achieved by the economy in only five

years of recorded history, and two out of these five are in the last three

years


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CHANGING SCENARIO

Since 1991, there has been a radical change in the Indian economic

environment. In the early 90s the country was confronted with a severe

crisis due to a sharp plunge in the foreign exchange reserves, a

downgrading of the credit rating, suspension of foreign private capital

flows and a decline in the industrial output. India was on the verge of

defaulting on its foreign debt obligations. The only way was to initiate

reforms and a structural adjustment program. The country would have to

lift restrictions on foreign investments, on the flow of private capital and

on private initiatives in many area of economic development. The

structural reforms focused on liberalizing industry, trade, taxation and

foreign investment, and on reforming the financial sector.

FINANCIAL MARKETS

A financial market is a market for creation and exchange of financial

assets. If we buy or sell financial assets, we will participate in financial

markets in some way or the other. This includes the various instruments

for investment contains four attributes essential for an investor for taking

investment decision: Yield of the Instrument, Liquidity, Risk Perception,

and Initial Investment.


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Functions of Financial Markets:-

Financial markets facilitate price discovery. The continuous interaction

among numerous buyers and sellers who through financial markets

helps in establishing the prices of financial assets.

Financial markets provide liquidity to financial assets. Investors can

readily sell their financial assets through the mechanism of financial

markets.

Financial markets considerably reduce the cost of transaction. Two

major costs

associated with transaction are search costs and information costs.

WHAT IS AN INVESTMENT?

An Investment is the use of capital to create more money through

the acquisition of a security that promises the safety of the principal and

generates a reasonable return. In Pipeline of Mutual Fund. A company

that invests in securities of other companies; using funds acquired by

selling shares to investors. A mutual fund is one type of InvestmentCompany. Any purchase that fails to meet the safety and returns criteria

is not an investment. It could either be speculation or gambling.

For instance, betting or buying lottery tickets could make you lose all your

money or give huge unreasonable returns. This is gambling and not an


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investment. There is a very thin line differentiating the two and one has to

be careful not to cross that line.

FUNDAMENTALS OF INVESTMENT:-

There are three fundamentals of investment, namely:

SAFETY

LIQUIDITY

RETURN

TAXATION

The order is quite clear: Safety- always first, then the Liquidity- next

and Return- third. A lot of people fall prey to the lure of high returns, and

usually, this has resulted in a LOSS.

INVESTMENT OPTIONS AVAILABLE IN INDIA

There are basically two kinds of investment options available for theinvestor on the basis of their Risk, Return and time horizon. As per the

Return is concern one can earn a fixed rate of interest and other where

the rates fluctuate depending on certain factors prevailing in the market

at that point of time. Given below are the options available in each

category.

INVESTMENT AVENUES IN THE LAST DECADES

The Indian investors in the last decades were very risky so the

saving was focused in high fixed earning investment. Also there were not

many investment options and investments with sovereign guarantee were

preferred. This was partly due to high interest rates in India


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INVESTMENT AVENUES

* Source: www.indiainvest.com

InvestmentsInvestments

Mutual fundMutual fund DebtDebt InsuranceInsurance EquityEquity

Small SavingsSmall Savings RBI BondsRBI Bonds Primary MarketPrimary Market Secondary MarketSecondary Market

PPFPPF

Post OfficePost Office

Fixed Return Options:

1. Post Office (KVP, NSC, M.I.S.)

2. Public Provident Fund

3. Bank Fixed Deposits

4. Government Securities or Gilts

5. RBI Taxable Bonds

6. Insurance

7. Company Debentures

8. Company Fixed Deposit

9. Infrastructure Bonds

Variable Return Options:

1. Mutual Fund

2. Shares and Stock Market

o Primary Market (IPO)

o Secondary Market

3. Bullion Market (Gold & Silver)

4. Property

5. Foreign Exchange Assets


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HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The Mutual Fund Industry in India started in 1963 with the formation

of Unit Trust of India, at the initiative of the Government of India and

Reserve Bank the. The history of mutual funds in India can be broadly

divided into four distinct phases:

First Phase 1964-87:

Unit Trust of India (UTI) was established on 1963 by an Act of

Parliament. It was set up by the Reserve Bank of India and functioned

under the Regulatory and administrative control of the Reserve Bank of

India. In 1978 UTI was de-linked from the RBI and the Industrial

Development Bank of India (IDBI) took over the regulatory and

administrative control in place of RBI. The first scheme launched by UTI

was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of

assets under management.

Second Phase 1987-1993 (Entry of Public Sector Funds):

1987 marked the entry of non- UTI, public sector mutual funds set

up by public sector banks and Life Insurance Corporation of India (LIC)

and General Insurance Corporation of India (GIC). SBI Mutual Fund was

the first non- UTI Mutual Fund established in June 1987 followed by Can

bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),

Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda

Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while


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GIC had set up its mutual fund in December 1990. At the end of 1993, the

mutual fund industry had assets under management of Rs.47, 004 crores.

Third Phase 1993-2003 (Entry of Private Sector Funds):

With the entry of private sector funds in 1993, a new era started in

the Indian mutual fund industry, giving the Indian investors a wider choice

of fund families. Also, 1993 was the year in which the first Mutual Fund

Regulations came into being, under which all mutual funds, except UTI

were to be registered and governed. The erstwhile Kothari Pioneer (now

merged with Franklin Templeton) was the first private sector mutual fund

registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a

more comprehensive and revised Mutual Fund Regulations in 1996. The

industry now functions under the SEBI (Mutual Fund) Regulations 1996

The number of mutual fund houses went on increasing, with many

foreign mutual funds setting up funds in India and also the industry has

witnessed several mergers and acquisitions. As at the end of January

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

The Unit Trust of India with Rs.44,541 crores of assets under management

was way ahead of other mutual funds

Fourth Phase since February 2003:

In February 2003, following the repeal of the Unit Trust of India Act

1963 UTI was bifurcated into two separate entities. One is the Specified

Undertaking of the Unit Trust of India with assets under management of

Rs.29, 835 crores as at the end of January 2003, representing broadly, the

assets of US 64 scheme, assured return and certain other schemes. The


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Specified Undertaking of Unit Trust of India, functioning under an

administrator and under the rules framed by Government of India and

does not come under the purview of the Mutual Fund Regulations

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB

and LIC. It is registered with SEBI and functions under the Mutual Fund

Regulations. With the bifurcation of the erstwhile UTI which had in March

2000 more than Rs.76,000 crores of assets under management and with

the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund

Regulations, and with recent mergers taking place among differentprivate sector funds, the mutual fund industry has entered its current

phase of consolidation and growth. As at the end of September, 2004,

there were 29 funds, which manage assets of Rs.153108 crores under 421

schemes.


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The graph indicates the growth of Investment in Mutual

Fund over the years:

GROWTH IN ASSETS UNDER MANAGEMENT (AUM)


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INTRODUCTION OF MUTUAL FUND

CONCEPT:

A Mutual Fund is a trust that pools the savings of a number of

investors who share a common financial goal. The money thus collected is

then invested in capital market instruments such as shares, debentures

and other securities. The income earned through these investments and

the capital appreciation realized is shared by its unit holders in proportion

to the number of units owned by them. Thus a Mutual Fund is the most

suitable investment for the common man as it offers an opportunity to

invest in a diversified, professionally managed basket of securities at a

relatively low cost. The flow chart below describes broadly the working of

a mutual fund:

Mutual Fund Operation Flow Chart


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What is a mutual fund?

Pooled Vehicle:

A mutual fund (MF) is a vehicle to pool money from investors, with a

promise that professional managers would invest the money in a

particular manner. Professional Managers are expected to honor the

promise. Mutual funds in India are governed by the regulations of

Securities and Exchange Board of India (SEBI).

Professional Management:

The idea behind a MF is that investors lack the time and/or the skills

to manage their own investments. Professional managers, acting on

behalf of the MF, manage the investments for the benefit of investors, in

return for a management fee.

The organization that manages the investment is the Asset

Management Company (AMC). Employees of the AMC who perform this

role of managing investments are the Fund Managers.

Schemes:

Investors have their individual preferences on how they would like

their money invested and how much risk they are willing to take. For ease

of management and reporting, each a group of investors is identified with

a mutual fund scheme. In commercial terminology, the investors have

invested in a scheme and the professional managers manage the

scheme. A MF has several schemes to cater to different investor

preferences.


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Money in Trust:

The MF manages investments of the scheme for the benefit of its

investors. Every scheme has an:

Investment portfolio (Portfolio Statement);

Account of income and expenditure (Revenue

Account);

And

Account of assets and liabilities (Balance Sheet).

In order to ensure fameless to investors, the expenditure that can

be charged to the scheme, whether as management fees or as other

expenses, is regulated by SEBI.

The gains of any scheme would belong to its investors. Similarly

losses, if any, would need to be borne by its investors up to the amount

invested. Thus, the MF manages the moneys in trust for the benefit ofinvestors.


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ORGANISATION OF A MUTUAL FUND:

There are many entities involved and the diagram below illustrates the

organizational set up of a mutual fund:

Unit Holders:

Unit holders are Investors. Any Individual or Non- individuals who

have invest their money in Mutual Fund; they will get some Units against

their Investment according to the NAV of that fund.

Sponsor:

Sponsor is the promoter of the mutual fund. He himself of with

other body corporate establishes the mutual fund. However to became a

sponsor one has to have following qualifications?


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Sponsor should have sound track record and general reputation of

fairness and integrity in all business transactions. He must have carrying

business in financial services for a period of not less than five years. And

continuously derives the profit after providing for depreciation, interest

and tax. Having positive net worth as well. Sponsor has to contribute at

least 40 per cent to the net worth of the AMC.

Trustee:

There are some straight disqualifications provided by the SEBI for a

trustee. However the appointment for a trustee must be take prior

approval of SEBI. Trustee is a person having ability, integrity and has not

been found guilty of moral turpitude and also has not been convicted for

any economic offence.

Trustee has to play very critical role in the mutual fund

organization. He has work in a way to continuously protect the interest ofthe investors are properly taken care of. Any mutual fund has a minimum

of four trustees. Two thirds of the trustees must be an independent

person and shall not be associated with sponsor. No officer of employee of

an AMC can became a trustee.

Investors:

MF is a solution for investors who lack the time, and/or the skills to

actively manage their investment risk in individual securities. They can

delegate this role to the MF, while retaining the right and the obligation to

monitor their investments in the scheme having some specific objects.


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Asset Management Company (AMC):

AMC can be appointed by the sponsor or by the trustees if

authorized by the trust deed. But it is obligatory for all the mutual fund to

have a AMC to manage and operate its schemes. Appointment of AMC can

be terminated by majority of trustee of 75 per cent of unit holders

(investors).

AMC manages the investment portfolio of schemes. An AMCs

income comes from the management fees it charges to the schemes. Themanagement fee is calculated as a percentage of net assets managed.

Some countries provide for performance based management fees as well.

In order to earn the management fee, any AMC has to employ

people and bear all the establishment costs that are related to its activity,

such as for premises, furniture, computers and other assets, software

development, communication costs etc. These are to be met out of the

management fee earned.

Expenses such as on trustee fees, marketing etc. can be directly

borne by the mutual fund scheme. However, in some cases, competition

in the marketplace could force an AMC to bear some of these costs, which

would otherwise have been borne by investors in the schemes.

Distributors:

Distributors earn a commission for bringing investors into the

schemes of a MF. This commission is an expense for the scheme,

although there are occasions when an AMC chooses to bear the cost,

wholly or partly. Distributors are the key persons of the mutual funds.


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They are the only link between the mutual fund house and the investors.

The main role of the distributors is to analysis the risk appetite of

investors. They have to play their role such a way to keep interest of the

investors in the mutual fund. However they are not directly responsible of

any loss sustained by the investors.

To became a distributor one has to pass the exam conducted by

AMFI association of mutual funds in India.

Registrars:

Holdings of units by unit holders in schemes are tracked by the

schemes Registrar and Transfer agent (R&T). Some AMC prefer to handle

this role in house. The registrar/AMC maintains an account of the

investors investments in and disinvestments (redemptions) from the

scheme. Requests to invest more money into a scheme, or to switch in

another scheme run by the same mutual fund or to recover moneysagainst existing investments in the scheme are processed by the R&T.

Custodian / depository:

The custodian maintains custody of the securities in which the

scheme invests. This ensures an ongoing independent record of the

investments of the scheme. The custodian also follows up on various

corporate actions, such as rights, bonus and dividends declared by

investors companies


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FREQUENTLY USED TERMS:

Net Asset Value (NAV):

Net Asset Value is the market value of the assets of the scheme

minus its liabilities. The per unit NAV is the net asset value of the scheme

divided by the number of units outstanding on the Valuation Date.

How NAV is determined

In order to calculate the NAV of a scheme, each asset and

liability of the scheme needs to be valued.

NAV = Value of all assets (-) minus value of liabilities other than to unit-

holders

It can also be calculated as: Unit capital plus reserves.

Example of NAV

Suppose a scheme with 1,000 units has the following items in its

balance sheet:

Unit Capital Rs 10,000; investments at market value Rs 25,000; other Rs

3,500; other liabilities Rs 2,000; issue expenses not written off Rs 500;

reserve Rs 17,000.


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What would be its NAV?

By putting the above values is tabular form of normal balance sheet.

Liabilities

(Rs)

Assets (Rs)

Unit

Capital

10,00

0

Investment

(market

value)

25,000

Reserves

17,00

0

Other

assets

3,500

Other

Liabilities

2,000

Issue exp

not w/o

500

Total

Liabilities

29,00

0

Total

assets

29,000

NAV = Total assets Minus Liabilities other than to unit-holders, I-e Rs

29,000 minus Rs 2,000

= Rs 27,000

Alternatively, NAV = Unit capital plus Reserves

= Rs 10,000 plus Rs 17,000

= Rs 27,000


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Annual Return:

` Defines returns in uniform periods of a year. It standardizes returns

generated in a period lesser or greater than a year to a per year basis

thereby facilitating easy measurement and comparison of performance.

Balanced Fund / Mixed Funds:

A type of fund that holds securities of two or more asset classes to

meet its objective. The most common types of Balanced Funds / Mixed

Funds hold different combinations of fixed income and equity securities

Benchmark:

A measure used as a yardstick against which the return generated

by a mutual fund is evaluated.

Capital Gain:

It is the difference between the sale price and the cost price of the

security which could be either short term or long term. The long-term

capital gains are taxed at a confessional rate.

Close-Ended Funds:

These are funds that have a specified life span and do not offer

fresh units for sale after the initial offer is closed. While some funds do

offer limited repurchase after a specified time, liquidity is available to the


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investor only in case of close-ended schemes where units are listed on the

stock exchange

Discount to NAV:

It is the difference between the market price of the unit and the Net

Asset Value of the fund where the market price is ruling at less than the

NAV of the scheme. The phenomenon is observed in close-ended schemes

whose units are listed on the bourses.

Equity Fund or Growth Fund:

A mutual fund whose portfolio consists primarily of stock (equity)

with the aim of providing the benefit of capital appreciation to the unit

holders. Normally, such schemes focus on capital appreciation rather than

regular income

Ex-Dividend Date:

A publicly announced date on or after which the investor is not

entitled to the dividend declared. In such a case, the NAV of the scheme

falls by the same amount as the dividend on the ex- dividend date.

Income Fund:

A mutual fund set up with the specific objective of providing the

investors the benefit of interest and dividends. They primarily invest in

fixed income securities.


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Index:

The benchmark against which the performance of the fund is

evaluated to see whether the fund is under-performing or outperforming

the benchmark.

Index Fund

A type of mutual fund whose aim is to replicate a market index.

These funds are passively managed and the weightage of each security in

the portfolio of the fund is the same as that found in the index.

Sector Fund:

A fund that restricts its investments to a defined sector or some

defined sectors thereby limiting the scope of its investment universe.

Short Term Capital Gain:

The capital gain booked on an asset which has been held for less

than 3 years or 1 year in certain cases.

Top Down Approach:

The investment philosophy which involves the EIS analysis. Here the

fund manager first looks at the economy and the industry and then filters

down to the companies that are likely to benefit from those favourable

economic and industrial trends.


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Yield:

It is the effective return to the investor taking into account only the

dividend income and is usually expressed as a percentage of net asset

value or market price.


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FUND

MANAGERINVESTORS

SECURITIES & STOCK

MARKET

R

E

T

U

R

N

S

POOL THEIR

MONEY TO

INVEST

IN

GENRATE

PASS

ON

TO

MUTUAL FUND OPERATION


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Risk Associated With Mutual Fund:-

Interest Rate Risk

Bond price move inversely to changes in interest rate. If

interest rate go up bond price come down and vice-versa

changes in bond price will affect the NAV of income funds since

NAV is compiled on a daily basis, the effect of interest rate

fluctuation will get reflected in the NAV.

Liquidity Risk

This prefer to at which security can be sold at or near its true

value. The primary assessment of liquidity risk is the spread

between the bid price and the offer price quoted by dealer.

Credit Risk

Credit risk or default risk refers to the risk that on investors of a

fixed income security may default. Because of the risk, debentures

are sold at a fixed spread above these offered a treasury security,

which are considered as risk free. Normally, fixed income security

will fluctuate depending upon the actual changes in the provided

level of credit risk and actual event of default.


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Market Risk

The prices of shares are subject to wide price fluctuations

depending upon market conditions over which nobody has a

control. Moreover, every economy has to pass through a cycle-

Boom, Recession, Slump and Recovery. The phase of the business

cycle affects the market conditions to a larger extent.

ADVANTAGES OF MUTUAL FUND

Source : www.amfiindia.com

Mutual Funds offer several benefits to an investor that are

unmatched by the other investment options. Last six years have been the

Affordability Diversification

RegulationsVariety

Tax BenefitsProfessional

Mgmt


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most turbulent as well as exiting ones for the industry. New players have

come in, while others have decided to close shop by either selling off or

merging with others. Product innovation is now pass with the game

shifting to performance delivery in fund management as well as service.

Those directly associated with the fund management industry like

distributors, registrars and transfer agents, and even the regulators have

become more mature and responsible.

Affordability :

Small investors with low investment fund are unable to invest

in high-grade or blue chip stocks. An investor through Mutual

Funds can be benefited from a portfolio including of high priced

stock.

Diversification :

Investors investment is spread across different securities

(stocks, bonds, money market, real estate, fixed deposits etc.)

and different sectors (auto, textile, IT etc.). This kind of a

diversification add to the stability of returns, reduces the risk

for example during one period of time equities might under

perform but bonds and money market instruments might do

well do well and may protect principal investment as well as

help to meet return objectives.

Variety :

Mutual funds offer a tremendous variety of schemes.


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This variety is beneficial in two ways: first, it offers different

types of schemes to investors with different needs and risk

appetites; secondly, it offers an opportunity to an investor to

invest sums across a variety of schemes, both debt and equity

Professional Management :

Mutual Funds employ the services of experienced and skilled

professionals and dedicated investment research team. The whole

team analyses the performance and balance sheet of companies

and selects them to achieve the objectives of the scheme.

Tax Benefits :

Depending on the scheme of mutual funds, tax shelter is also

available. As per the Union Budget-99, income earned through

dividends from mutual funds is 100% tax free. Under ELSS of open-ended equity-oriented funds an exemption is provided up to Rs.

100,000/- under section 80C.

Regulation :

All Mutual Funds are registered with SEBI and they function

within the provisions of strict regulations designed to protect the

interests of investors. The operations of Mutual Funds are regularly

monitored by SEBI.


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Other Benefits

Potential Return :

Over a medium to long-term, Mutual Funds have the potential to

provide a higher return as they invest in a diversified basket of selected

securities.

Low Costs :

Mutual Funds are a relatively less expensive way to invest

compared to directly investing in the capital markets because the benefits

of scale in brokerage, custodial and other fees translate into lower costs

for investors.

Liquidity :

In open-ended schemes, investor can get money promptly at net

asset value related prices from the Mutual Fund itself. In close-ended

schemes the units can be sold on a stock exchange at the prevailing

market price or avail of the facility of direct repurchases at NAV related

prices which some close-ended and interval schemes offer you

periodically.


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Transparency :

Mutual Funds have to disclose their holdings, investment pattern

and the necessary information before all investors under a regulation

framework.

Flexibility :

Investment in Mutual Funds offers a lot of flexibility with features of

schemes such as regular investment plans, regular withdrawal plans and

dividend reinvestment plans; you can systematically invest or withdraw

funds according to your needs and convenience.

Convenient Administration :

Investing in a Mutual Fund reduces paperwork and helps you avoid

many problems such as bad deliveries, delayed payments and follow up

with brokers and companies. Mutual Funds save your time and make

investing easy and convenient.


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DISADVANTAGES OF MUTUAL FUND:

The following are the disadvantages of investing through mutual fund:

No control over cost :

Since investors do not directly monitor the funds operations, they

cannot control the costs effectively. Regulators therefore usually limit the

expenses of mutual funds.

No tailor-made portfolio :

Mutual fund portfolios are created and marketed by AMCs, into

which investors invest. They can not made tailor made portfolio.

Managing a portfolio of funds :

As the number of funds increase, in order to tailor a portfolio for

himself, an investor may be holding portfolio funds, with the costs of

monitoring them and using hem, being incurred by him.

Delay in Redemption :


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The redemption of the funds though have liquidity in 24-hours to 3

days takes formal application as well as needs time for redemption. This

becomes cumbersome for the investors.

Non-availability of loans :

Mutual funds are not accepted as security against loan. The investor

cannot deposit the mutual funds against taking any kind of bank loans

though they may be his assets.

Facts about Mutual Fund

Equity instruments like shares from only a part of securities held byMutual Funds. Mutual Fund also invests in debt market, which is relatively

much safer.

The biggest advantage of Mutual Funds is their ability to diversify

the risk.

Mutual Funds exist in India since 1963. Mutual Fund market is much

evolved in India and theyre for last 60years.

Mutual Fund the best solutions for the people who want to managetheir risk and get good returns.

The size of Mutual Fund market in India is Rs. 107728 crores.


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According to the SEBI-NCAER survey of Indian Investor about 15

million of 8.7% of households have invested in Mutual Funds and about 23

millions are unit holders in India.

US-64 is very much a part of the market and is not immune to

vagaries. The crisis has arisen due to mismanagement of funds.

RISK RETURN GRAPH

Risk

Potential

fo

rreturn

Investment horizon

Liquid Fund

Debt Funds

Balanced FundsRatio of Debt : Equity

Growth FundsIndex, Active diversified

Sector funds

* Source: www.hdfcmutualfundindia.com

High Low


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AN OVERVIEW OF THE MARKET PIONEER

NJ INDIA INVEST

NJ India Invest is combination of two words N and J, where N

stands for NEERAJ CHOKSI and J stands for JIGNESH DESAI. They are

two friends form SURAT.

NJ INDIA INVEST- Past and Present:

The seeds of NJ INDIA INVEST were sown in the year 1994 and its

revolutionary journey of 13 years began from a business of MutualFund Advisors to Most successful National Distributor in the Mutual

fund industry.

Presently NJ playing important role as National Distributor in Mutual

fund industry. NJ has its own large distribution channel across India

and more than 7500 AMFI Certified Mutual Fund Advisors are working

with NJ India Invest. Today, NJ India Invest become stronger with 65Branch offices in 15 states with corporate office located at SURAT-

GUJARAT.

NJ FUNDZ NETWORK, a business division of NJ India Invest Pvt.ltd.

has been started in the year 2003 to grow and deals with the 7500


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AMFI Certified Mutual Fund Advisors spread across India. NJ Fund

Network is First in Indian Mutual Fund industry to offer a complete

business platform to Financial Advisors.

NJ INDIA INVESTs corporate philosophy:

At NJ Service and Investing philosophy inspire and shape the

thoughts, beliefs, attitude, actions and decisions of their employees.

Service Philosophy:

NJs primary measure of success is customer satisfaction

think of the customer first, take responsibility, and make prompt

service to the customer a priority

deliver upon the commitments & promises made on time

anticipate, visualize, understand, meet, exceed our customers

needs bring energy, passion & excellence in everything we do

be honest and ethical, in action & attitude, and keep the customers

interest supreme

strengthen customer relationships by providing service in a

thoughtful & proactive manner and meet the expectations,

effectively

Investing Philosophy:

NJ aim to provide Need-based solutions for long-term wealth

creation and with true, unbiased, need-based solutions and advice


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that best meets their stated & un-stated needs. NJs efforts to provide

quality financial & investment advice, NJ believes that

Clients want need-based solutions, which fits them

Long-term wealth creation is simple and straight

Asset-Allocation is the ideal & the best way for long-term wealth

creation

Educating and disclosing all the important facets which the

customer needs to be aware of, is important

The solutions must be unbiased, feasible, practical, executable,measurable and flexible

Constant monitoring and proper after-sales service is critical to

complete the on-going process.

NJ INDIA INVESTs Vision:

To be the leader in our field of business through,

Total Customer Satisfaction

Commitment to Excellence

Determination to Succeed with strict adherence to

compliance

Successful Wealth Creation of our Customers

NJ INDIA INVESTs Mission:

Ensure creation of the desired value for our customers, employees

and associates, through constant improvement, innovation and

commitment to service & quality. To provide solutions which meet

expectations and maintain high professional & ethical standards along

with the adherence to the service commitments


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NJ INDIA INVESTs Business Division:

NJ Fundz Network

NJ Print Shop

NJ Gurukul

NJ Web Nest

NJ Wealth Nest

NJ INDIA INVESTs Services:

NJ Advisors desk:

A comprehensive online Advisor Desk with complete reports, tools to

manage, monitor and control Advisors business.

- Business MIS reports(income,AUM,transaction,bills & rewards)

- Client servicing ( Admin,Protfolio,printing,Customer care)

- Administration ( employees,Branches,Website)

NJ Customer Care:

- Single contact point for all queries available to all Advisor in

India.

- Trained Executives for time bound solving of queries

- All India toll free number- 1800 233 0155

NJ INDIA Online:

Facility to your client to make Transaction online under Advisors, like

Purchase Redemption Switch.


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NJ HR Consultancy:

- Solutions for recruitment of Employees

- Online Management / Tracking of Employee or branch business

- Consulting services for Recruitment, Retention, Appraisals and

payment management.

NJ Research:

- Regular publications like monthly magazine FUNDZ WATCH

weekly reports etc. and communication like daily market update,

daily MF track and much more to keep you update.

- Research

- Reports, recommendation, market insight, analyses etc.

NJ Quality Service:

- Automatic capturing of all transaction done through Advisors

- Daily updating on Advisors client Portfolios

- Timely payments of all Brokerages/dues

- Timely/easy available of all application and other forms

NJ believes in 360 Advisory Platform:


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With this Platform, NJ try to offer all possible products, services and

support which an Advisor would need in his business.

The support functions are generally in the following areas

Business Planning and Strategy

Training and Development Self and of employees

Products and Service Offerings

Business Branding

Marketing

Sales and Development

Technology

Advisors Resources - Tools, Calculators, etc..

Research

Communications


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Marketing Support:

The Marketing Team will help Advisors to give the relevant support

needed for effective sales, creating brand and for the development of

their business.

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-Gurukul

series

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

Technology:

Technology is the biggest differentiator.

NJ pots a lot of efforts and resources are put in to build a

technological edge to give the best possible services to Advisors and

their clients.

Technology has been and is NJs key strength. What NJ offer on the

technological front is unique and comprehensive. NJs focus can be

gauged from the fact that NJ have a separate sister concern started for


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the sole purpose of providing the best support to NJ in terms of

technology. High infrastructure spending is done to improve &

strengthen NJs deliverables on this technological front. Fin logic

Technologies (India) Pvt. Ltd. does all the development work in-

house on a continuous basis through its team of talented professionals.

All the tools, services, products, etc offered by NJ has been developed

in-house according to what NJ feel.

In todays world much is dictated by two important words

Information and Technology. NJ realizes this more than anyoneelse. And thats way NJ make constant efforts to keep Advisors ahead

of the curve and ensure that Advisors and their client receive quality,

accurate and timely information

NJ has made arrangements to receive the following through

Technology

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

NAV, Dividend, and other details of all the Mutual Fund schemes on

a Daily basis

Monthly Portfolio and other important information of all the Mutual

Fund schemes

All relevant details of Direct Equities like Prices, Dividends, Bonus,

Market Capitalizations, etc on a Daily basis

All relevant market related information in addition to economic,

event-specific, key economic variables, etc on a Daily basis

Training and Development:


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I-Gurukul is a program run by NJ Fundz Network to educate and train

Financial Advisors. The I-Gurukul program is run throughout the year at

all the Branches of NJ.

Objectives:

To impart all the important knowledge and skills to Financial Advisors

necessary to be successful both as a professional and a business

person

To raise the quality and standard of such Advisors and bring them on

par with the best Advisors in the industry

To ultimately benefit the investors with quality services, offerings and

recommendations

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 the objective of the program, from among the best in the

company as well as from the industry.

Customer Care:

NJ Customer Care offers with a 'Single Service Point' to all the

advisors to help solve their customer queries. Centralized team of

Customer Care Executives would solve the queries at the earliest.

Advisors can also view the latest status of all your queries online.

As an NJ Advisor they can submit their queries to Customer Case

Executives by:-


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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 from

throughout 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:

Automated On-line Query Management Module is used to efficiently

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 turns around time for different types of

queries defined.


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Alerts for unsolved queries is automatically shouted to the higher

management in instill discipline

Stringent actions taken against non-compliance

MANAGEMENT:

The management at NJ brings together a team of people with wide

experience and knowledge in the financial services domain. The

management provides direction and guidance to the whole

organization. The management has strong visions for NJ as a globally

respected company providing comprehensive services in financial

sector.

The Customer First philosophy in deeply ingrained in the

management at NJ. The aim of the management is to bring the best to

the customers in terms of

Range of products and services offered

Quality Customer Service

All the key members of the organization put in great focus on the

processes & systems under the diverse functions of business. The

management also focuses on utilizing technology as the key enabler

for all the activities and to leverage the technology for enhancing

overall customer experience.


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Departmental Study Of NJ Indiainvest

THE NJ FUNCTION:

Sales Dept.

OperationsDept.

AccountsDept.

ResearchDepart.

LegalCompliances

HR Dept.


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The support functions are generally in the following areas

Business Planning and Strategy

Training and Development Self and of employees

Products and Service Offerings

Business Branding

Marketing

Sales and Development

Technology

Advisors Resources - Tools, Calculators, etc.. Research

Communications

NJ deal in following Investment:

Mutual Funds

Fixed Deposits

Infrastructure Bonds

Approved Securities for Charitable Trust The above are the core

Investment in which we deal and where we have developed our

competency.

SERVICES


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As NJ Wealth Advisors Global Private Client, you get comprehensive

set of services that ensure you stay informed, insightful, in command,

of your investments at all times.

www.njfunz.com

Services provided to valuable Clients & Agents:

Dedicated portfolio planning & restructuring on demand

The Weekly Performance Sheet (it covers performance of leading

mutual fund schemes)

The Monthly Fund Fact Sheet (it covers comprehensive analysis of

various mutual fund.

Various Subscription services via e-mail

Sharing relevant information related to the Indian Investment

world.


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Over and all we also provide net-based services to our clients and

agents. Our e-services are powered by a comprehensive website

http:/www.njindiainvest.com. It covers detailed information about the

Mutual industry, it passes various financial planners to satisfy

investment goals like retirement planning, childs marriage planning

etc, it also posses various analytical tools to measure the performance

of Mutual Fund schemes viz. Returns Calculators, SIP Returns

Calculator, and many others. There is a separate desk for the clients to

get their portfolio information on fingertip

At NJ their Service and Investing philosophy inspire and shape the

thoughts, beliefs, attitude, actions and decisions of our employees. If

NJ would resemble a body, our philosophy would be our spirit which

drives our body.

Service Standards

Service in words, service in action

Service is the key to unlocking customer satisfaction, which again is

key for sustainability of any business. At NJ we understand this very

well. NJ has set strict processes in place to deliver quality services to

customers. At NJ strict quality service standards are set and a well-

defined process is established and followed religiously by our quality

customer service teams. Performance is evaluated on a frequent basis

and glitches are ironed out.

But quality service also involves quality people in addition to

processes. NJ gives significant focus to the proper training and

development of the people involved in the service delivery chain.


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Further they,

Have well-defined "Privacy Policy" to keep clients information

confidential & internal audits done on the same at regular intervals

Receive various statistics which are analyzed on an ongoing basis to

improve the service standards

They are committed to improve and enhance our services and

undertake new service initiatives. Such and other services differentiate

us with other service providers in the industry.

NJs Service Commitments

The service commitments are to guide the actions of the people at

NJ. Clearly stated, customers can freely communicate any such

actions/events wherein they feel that any of the following

commitments have been breached / compromised. At NJ we desire to

honor our commitments at all points of time and to all our customerswithout any bias.

To provide customer-focused need-based valued services

To provide reliable, accurate and timely information

To maintain all records in privacy

To optimize services/benefits at least justifiable cost

To develop and grow the customers business

To provide constructive after sales service

To honor our service commitments

Services offered


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www.njfundz.com

A good product/service offering, targeted at meeting the needs of

the clients, lies at the center of any business. With customers today

expecting single window solutions and services, successful and easy

integration of products is the need of the hour.

Any Advisor should wake up to this and other crucial changes taking

place and try to adapt himself to this change to avoid being out-dated

and out-serviced.

At NJ they try to foresee such changes and develop solutions that

are new, needed and well appreciated in the industry. The services

offered on the NJ Fundz Network are unique in the industry.

The services are designed to equip the independent advisors with all

the support and tools needed for a successful business. NJ providesservices and support where an advisor may feel ill equipped and make

them their strengths. The Partner on the NJ Fundz Network instantly

beats competition by being on the Network itself. Its a new paradig
http://www.njfundz.com/http://www.njfundz.com/


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NJ IndiaInvests Achievements:-

NJ IndiaInvest is a growing company that can be very well proved

from the below achievements.

Have gained a dominant place in the Indian Mutual fund

Distribution Business

Certified by the association of Mutual Funds as AMFI registered mutual

fund advisor

Won the Pru. chairmans Award twice in the year 2000 & 2002 for

outstanding performance in the schemes of prudential ICICI Mutual

fund. The Chairman, Prudential, presented the awards at London both

the times.

Won many other awards & certificates for outstanding performance in

various mutual fund schemes.

It has acquired about 15 to 17% share of total mutual fund business of

Gujarat.

Received the Award for year 2003-04 from HDFC Mutual fund for

highest selling of Mutual Fund. The award was received by director at

Scotland.

Asset Under Management more than 850 crores.

Recognitions

Year 2000:

For Outstanding Performance presented by Chairman, Prudential Plc.

at London


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Year 2002:

For Outstanding Performance presented by Group Chief Executive,

Prudential Plc. at London

Year 2003:

For Outstanding Performance presented by Group Chief Executive,

Prudential Plc. at London

Year 2004:

Among Most Valued Business Associates presented by HDFC Standard

Life at Edinburgh, Scotland

Year 2006:

Award for mobilizing the Highest Number of SIPs at National Level by

Fidelity Mutual Fund Plc at Mumbai

AMCs with NJ IndiaInvest:

Alliance Capital Mutual Fund

Birla Mutual Fund

Cholamandalam Cazenove Mutual Fund

DSP Merrill Lynch Mutual Fund

Dundee Mutual Fund

Escorts Mutual Fund

First India Mutual Fund

Franklin Templeton Mutual Fund

Pioneer ITI

HDFC Mutual Fund

HSBC Mutual Fund
http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=D0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=D0003http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=E0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=F0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=T0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=K0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=H0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=H0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=D0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=D0003http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=E0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=F0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=T0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=K0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=H0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=H0002


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IL & FS Mutual Fund

ING Savings TrustJM Mutual Fund

LIC Mutual Fund

Prudential ICICI Mutual Fund

Reliance Capital

SBI Mutual

Standard Chartered Mutual Fund

Sun F&C Mutual Fund

Sundaram Mutual Fund

Tata Mutual

Unit Trust Of India

Important responsibilities of investors in the financial planning

exercise?

Should set measurable financial goals.

Should understand the impact of financial decisions on their cash flows

and their income. Should be willing to revise and re-balance their portfolios with

changing market conditions, performance and their changing needs.

Investors benefit immensely by starting early and being systematic

and disciplined in their approach.
http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0003http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=J0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=L0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=P0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=R0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=S0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=A0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=S0004http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=S0003http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=T0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=U0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=I0003http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=J0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=L0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=P0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=R0001http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=S0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=A0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=S0004http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=S0003http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=T0002http://www.njindiainvest.com/mf/aboutfund/amcscheme.asp?ccode=U0001


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Very important points on financial planning

The planner can look at all the clients need including budgeting,

saving, taxes, investments, insurance and retirement planning.

A financial planner can link his own rewards and fees to the clients

financial success and the achievement of their financial goals

Mutual Fund is the most important tool for financial planning.( Core

Product)

Financial is not only investing. It comes before investing.

It is relevant for all categories of clients.

It is not as same as retirement planning.

It is not only Tax Planning.

Financial planning is important at younger stage of life.

Important points on Financial Planning

The basis of genuine investment advice should be financial planning to

suit the investors situation. It should not be current market condition.

Financial Planning allows a person to achieve financial goals through

proper management of finances.

Financial planners and their clients should focus on allocating funds to

different asset classes.

Financial planning is relevant not only to HNIs


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Financial planning works better for younger/ middle aged client.

Financial planning is not merely tax planning.

Wealth cycle for investors

Comparison by Nature of Investment

Preference for low riskproducts

Wealth preservation.Medium to long termSudden

wealthsurge

Ability to take risk andinvest for the longterm

transfer

Low liquidity needs.Long term

investment of

inheritance

InterGenerati

onal

Preference for incomeand debt products

Liquid and medium terminvestments.

Higher liquidityrequirements

ReapingStage

Lower risk appetitepre-specified needs

draw closer

Liquid and medium term

investments.

Near term needs for

funds as

Transition

Stage

Products. High-riskappetite

Financial goals

Growth options and longterm

Investing for longterm identifed

Accumulationstage

Investment preferencesFinancial needsStage

R e t u r nS a f e t y

C o n v e n i c eV o l a t i l i t y L i q u i d i t

E q u i t y H i g h M o d e r a t e L o w H i g h H i g h o r L

F I B o n d s M o d e r a t e H i g h H i g h M o d e r a t e M o d e r a t e

C o r p o r a t e D e b e n t u r e sM o d e ra t e L o wM o d e r a t e M o d e ra t e L o w

C o m p a n y F ix

D e o s i t e s

M o d e ra t

M o d e ra tL o w L o w L o w

B a n k D e p o s i t e s L o w H i g h H i g h L o w H i g h

P P F M o d e r a t e H i g h H i g h L o w M o d e r a t e

L i fe I n s u r a n c e L o w M o d e r a t e H i g h L o w L o w

G o l d M o d e r a t e L o w H i g h M o d e r a t e M o d e r a t e

R e a l E s t a t e H i g h L o w M o d e r a t e H i g h L o w

M u t u a l F u n d s H i g h H i g h H i g h M o d e r a t e H i g h


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What are the financial planning strategies that can be

recommended to investors?

Rupee cost averaging.

A fixed amount is invested at regular intervals


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More units are bought when prices are low and fewer units are bought

when prices are high. Over a period of time, the average purchase

price of investor is lower than average NAV.

Its disadvantage: Does not indicate when to sell or switch.

Value averaging.

A fixed amount is targeted as the desired value of the portfolio at

regular intervals

If markets have moved up, the units are sold to restore target value

and vice versa.

It is superior to RCA as it enables the investor to book profits and

rebalance the portfolio.


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Research Methodology

Primary Objectives

To find out whether LIC agent believe in Financial Planning or not.

What are their beliefs about the financial planning? What do they think

about financial planning?

Secondary objective

To find out whether LIC agent manage the cash flow of clients by using

various cash management technique.

To find out whether LIC agent solves the investment & planning issues or

not of clients.

To find out whether LIC agent does Retirement planning or not.To find out whether LIC agent does tax planning or not.

To find out whether LIC agent does Estate Planning or not.


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Research Design:

I have used the Descriptive Research Design for the purpose of

survey, as it will enable me to describe the characteristics of a particular

individual or a group of LIC agents and their role towards financial

planning in financial advisory business.

Sampling Method:

I have used the non probability sampling method of Quota

sampling in different areas of Ahmedabad city, as it would give better

idea about the different categories of LIC agents what are their beliefs

about financial planning.

Sample Size:

It would be better to have a sample of 150 people to have better

idea and representativeness of the population being surveyed.

Research Instrument:

I have used primary data collection method. A detailed

questionnaire, BOP (Business Opportunity Presentation) is be used for

purpose survey and it is attached with this proposal.

Data analysis tool:

Since it is better to greater validity of the results found it is better to

use the statistical software using computers i.e. SPSS

(Statistical Package for Social Science)


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In SPSS I used T-test, Mean, Median, Mode, Frequency Table, Cross

Tabulation.

Data analysis and Interpretation

Q.1 Do you believe that financial planning should cover all areas

of financial needs of clients?

One Sample t-Test:

Null Hypothesis (HO): There is no significant difference between

calculated mean and hypothesized mean (4). In other words, wehypothesize that the LIC agents are agree that financial planning shouldcover all areas of financial needs of clients

i.e. Ho : x = = 4

Alternative Hypothesis (H1): There is significant difference betweencalculated mean and hypothesized mean. In other words the LIC agentsare not agree with the statement that financial planning should cover allareas of financial needs of clients?

i.e. H1: x , i.e. H1: x 4

Significance level: 0.05

One-Sample Statistics

N

Mea

n

Std.

Deviation

Std. Error

Mean

Covert financial

needs150 4.10 .81 6.60E-02

One-Sample Test

Test Value = 4t df Sig. (2-

tailed)

Mean

Differenc

e

95% Confidence

Interval of the

Difference

Lower Upper

Cover

financial

needs

1.514 149 .132 1.00E-01 -3.05E-02 .23


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Inference:

Here the test is performed at 95% significance level and the p-value

comes out as 0.132 which is grater than 0.05, it means that the null

hypothesis H0 is accepted and it can be said that there is significant

difference between calculated mean and hypothesized mean.

Q.2 (A) Do you believe that each and every financial decision

affected other areas of finance?


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Affect Financial Areas

Frequenc

yPercent

Valid

Percent

Cumulative

Percent

ValidYes 136 90.7 90.7 90.7No 14 9.3 9.3 100.0

Total 150 100.0 100.0

Affect Financial Areas

No

Yes

INFERENCE:

Out of 150 LIC agents


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136(91%) LIC agents are believe that each and every financial

decision affected other areas of finance like risk management,

tax plan, estate plan, investment plan etcand

14(9%) LIC agents are believe that each and every financial

decision is not affected other areas of finance,

So we can say that majority LIC agents are believe that each and

every financial decision affected other areas of finance like.

Q.2 (B) If yes which financial areas are affected of financial

decision?

One Sample t-Test:


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calculated mean and hypothesized mean (3). In other words, wehypothesize that the LIC agents are agree that each and every financialdecision affected other areas of finance

i.e. Ho : x = = 4

Alternative Hypothesis (H1): There is significant difference betweencalculated mean and hypothesized mean. In other words the LIC agentsare not agree with the statement that each and every financial decisionaffected other areas of finance.

i.e. H1: x , i.e. H1: x 4



NMea

n

Std.

Deviation

Std. Error

Mean

Risk Mgmt. 150 3.97 1.16 9.46E-02

Retirement

Plan150 3.77 1.14 9.34E-02

Tax Plan 150 3.91 1.85 .15

Estate Plan 150 3.46 1.22 9.95E-02

One-Sample Test

Test Value = 3


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t dfSig. (2-

tailed)

Mean

Difference

95% Confidence

Interval of the

Difference

Lower Upper

Risk Mgmt. 10.292 149 .000 .97 .79 1.16

Retirement

Plan8.211 149 .000 .77 .58 .95

Tax Plan 6.047 149 .000 .91 .61 1.21

Estate Plan 4.623 149 .000 .46 .26 .66

Inference:


comes out as 0.000 which is less than 0.05, it means that the null

hypothesis H0 is rejected and it can be said that there is significant

difference between calculated mean and hypothesized mean. As our

mean is more than 3(3.46) and less than 4(3.97), which is between, agree

and strongly agree. So, we can say that LIC agent are agreed but not

strongly agree with the statement.

Q.3 Do you believe that my clients should adopt more easily to

life changes (financial) in order to feel more secure?


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One Sample t-Test:

Null Hypothesis (HO): There is no significant difference betweencalculated mean and hypothesized mean (4). In other words, wehypothesize that the LIC agents are agree that clients should adopt moreeasily to life changes (financial) in order to feel more secure.

i.e. Ho : x = = 4

Alternative Hypothesis (H1): There is significant difference betweencalculated mean and hypothesized mean. In other words the LIC agents

are not agree with the statement that clients should adopt more easily tolife changes (financial) in order to feel more secure.

i.e. H1: x , i.e. H1: x 4



NMea

n

Std.

Deviation

Std. Error

Mean

Feel More

Secure150 4.23 1.06 8.64E-02

One-Sample Test

Test Value = 4


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t dfSig. (2-

tailed)

Mean

Difference

95% Confidence

Interval of the

Difference

Lower Upper

Feel More

Secure2.701 149 .008 .23 6.26E-02 .40

Inference:





mean is 4.23 and which is between agree and strongly agree. So, we can

say that LIC agent are agreed but not strongly agree with the statement.

Q.4 How do you manage cash flow of your clients?

Cash flow mgmt

Frequency Percent

Valid

Percent

Cumulative

PercentValid Sound Risk

Managemen

t

104 69.3 69.3 69.3


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Insurance

Techniques 46 30.7 30.7 100

Total 150 100 100

Frequency

Sound Risk

Management,

104, 69%

Insurance

Techniques, 46,31%

Sound Risk

Management

Insurance Techniques

INFERENCE:


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46(31%) LIC agents are use insurance techniques like insurance,

government securities, bank deposit etc for manage the cash

flow of his clients and

104(69%) LIC agents are use sound risk management like equity,

mutual funds, ULIP schemes ETC for manage the cash flow of his

clients,

So we can say that majority LIC agents are use sound risk

management technique for manage the cash flow of his clients


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Q.5 (A) Do you believe in creating and managing accumulation of

wealth, to generate future capital cash flow for your clients?

Generate Future Capital

Frequency Percent Valid Percent

Cumulative

PercentValid Yes 142 94.7 94.7 94.7

No8 5.3 5.3 100.0

Total 150 100.0 100.0

Generate Future Capital

No

Yes

INFERENCE:



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142(95%) LIC agents are believe in creating and managing

accumulation of wealth, to generate future capital cash flow for his

clients and

8 (5%) LIC agents are not believe in creating and managing

accumulation of wealth, to generate future capital cash flow for his

clients

So we can say that majority LIC agents are believe in creating and

managing accumulation of wealth, to generate future capital cash flow for

his clients

Q.5 (B) If yes where do you invest?


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INFERENCE:

Suggestion For Investme

83

64

3641

13

135

0

20

40

60

80

100

120

140

160

Mutual

Fund

Equity Post Bank Debt Insurance

Investment Produc

No.ofRespondents

Series1


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135 LIC agents suggest insurance is the best investment product for

investment,

83 LIC agents suggest mutual funds are the best investment

product for investment,

64 LIC agents suggest equity is the best investment product for

investment,

36 LIC agents suggest deposit in post is the best for investment,

41 LIC agents suggest deposit in bank is the best for investment,

13 LIC agents suggest debt like debenture, government securities

etc is the best investment product for investment,

So we can say that according to preferences of LIC agents insurance,

mutual funds, equity is best investment product for investment.

Q.6 Do you believe in planning to ensure financial independent

at retirement?


73/123

One Sample t-Test:

Null Hypothesis (HO): There is no significant difference betweencalculated mean and hypothesized mean (4). In other words, wehypothesize that the LIC agents are agree that planning to ensurefinancial independent at retirement.

i.e. Ho : x = = 4

Alternative Hypothesis (H1): There is significant difference between

calculated mean and hypothesized mean. In other words the LIC agentsare not agree with the statement that planning to ensure financialindependent at retirement.

i.e. H1: x , i.e. H1: x 4



NMea

n

Std.

Deviation

Std. Error

Mean

Independence At

Retirement150 4.61 .63 5.17E-02

One-Sample Test

Test Value = 4


74/123

t dfSig. (2-

tailed)

Mean

Difference

95% Confidence

Interval of the

Difference

Lower Upper

Independence

At Retirement11.729 149 .000 .61 .50 .71

Inference:







Q.7 Do you believe that financial planning fulfills the goal of my

clients?

One Sample t-Test:


75/123


calculated mean and hypothesized mean (4). In other words, we

hypothesize that the LIC agents are agree that financial planning fulfills

the goal of my clients.

i.e. Ho : x = = 4

Alternative Hypothesis (H1): There is significant difference between

calculated mean and hypothesized mean. In other words the LIC agents

are not agree with the statement that financial planning fulfills the goal of

my clients.

i.e. H1: x , i.e. H1: x 4



NMea

n

Std.

Deviation

Std. Error

Mean

Fulfills The

Goals150 4.41 .84 6.89E-02

One-Sample Test

Test Value = 4


76/123

t dfSig. (2-

tailed)

Mean

Difference

95% Confidence

Interval of the

Difference

Lower Upper

Fulfills

The Goals5.900 149 .000 .41 .27 .54

Inference:







Q.8 (A) Do you believe that planning is necessary for

conservation and distribution of assets?


77/123

Conservation & Distribution of Assets

Frequency Percent Valid PercentCumulative

Percent

Valid

Yes 140 93.3 93.3 93.3

No 10 6.7 6.7 100.0

Total 150 100.0 100.0

Conservation & Destribution Of Assets

No

Yes

INFERENCE:



78/123

140(93.3%) LIC agents are believe that planning is necessary for

conservation and distribution of assets and

10 (6.7%) LIC agents are not believe that planning is necessary for

conservation and distribution of assets,

So we can say that majority LIC agents are believe that planning is

necessary for conservation and distribution of assets.

Q.8 (B) If yes which kind of financial product would you suggest

for conservation and distribution of assets of your clients?


79/123

Suggestion Of Conservation And Distribution Of

Assets

82

64

3640

12

133

0

20

40

60

80

100

120

140

Mutual

fund

Equity Post Bank Debt Insurance

Investment Product

No.O

F

Respo

ndance

Series1

INFERENCE:Out of 150 LIC agents


80/123

133 LIC agents suggest insurance is the best financial product for conservation anddistribution of assets.

83 LIC agents suggest mutual funds are the best financial product for conservation

and distribution of assets.

64 LIC agents suggest equity is the best financial product for conservation and

distribution of assets.,

36 LIC agents suggest deposit in post is the best financial product for conservation


41 LIC agents suggest deposit in bank is the best financial product for conservation


13 LIC agents suggest debt like debenture, government securities etc is the best

financial product for conservation and distribution of assets.

So we can say that according to preferences of LIC agents insurance, mutual funds,equity is the best financial product for conservation and distribution of assets.

.

Q.9 (A) Do you have plan for tax saving of your clients?

Plan for Tax Saving


81/123

Frequenc

yPercent

Valid

Percent

Cumulative

Percent

Valid Yes 150 100.0 100.0 100.0

Plan For Tax Saving

Yes

INFERENCE:

150(100%) LIC agents has tax saving plan for solving the tax issues

of his clients,


82/123

So we can say that all LIC agents has different types of tax saving

plan for solving many tax issues of his clients.

Q.9 (B) if yes which kind of tax saving financial product would you

suggest for your clients?


83/123

INFERENCE:


Sugg e stion for Tax Sa

47

150

28

103

42

5 4

0

20

40

60

80

100

120

140

160

MutualF

und

Insurance

NSE

ULIP

PPF

ELSS

Othe

r

Investm e nt Prod

N

o.o

fRespondents

Series


84/123

150 LIC agents suggest insurance is the best investment product for

tax saving,

103 LIC agents suggest ULIP schemes are the best investment

product for tax saving,

47 LIC agents suggest mutual funds are the best investment

product for in tax saving,

42 LIC agents suggest deposit in post is the best for investment tool

for tax saving,

28 LIC agents suggest NSE is the best investment tool for tax

saving,

5 LIC agents suggest ELSS schemes is the best investment product

for tax saving,

So we can say that according to preferences of LIC agents

insurance, ULIP schemes is best investment product for tax saving.

Q.10 Which of the below mentioned details of your clients is

necessary?


85/123

One Sample t-Test:


calculated mean and hypothesized mean (4). In other words, wehypothesize that the LIC agents are mentioned all details of the clients.i.e. Ho : x = = 4

Alternative Hypothesis (H1): There is significant difference betweencalculated mean and hypothesized mean. In other words the LIC agentsare not mentioned all details of the clients.i.e. H1: x , i.e. H1: x 4



NMea

n

Std.

Deviation

Std. Error

Mean

C Age 150 4.72 .49 4.03E-02

C Gender 150 4.65 .71 5.83E-02

C Occupation 150 4.73 .49 3.98E-02

C Marital Status 150 4.63 .66 5.39E-02

C No. Of Children 150 4.60 .70 5.68E-02

Gender Of Children 150 4.48 .90 7.37E-02

C No. Of

Dependence150 4.46 .93 7.60E-02

C Other income 150 4.49 .93 7.55E-02

One-Sample Test

Test Value = 4

t df Sig. (2-

tailed)

Mean

Difference

95% Confidence

Interval of the

Difference


86/123

Lower Upper

C Age 17.880 149 .000 .72 .64 .80

C Gender 11.206 149 .000 .65 .54 .77

C Occupation 18.444 149 .000 .73 .65 .81

C Marital

Status11.759 149 .000 .63 .53 .74

C No. Of

Children10.571 149 .000 .60 .49 .71

Gender Of

Children6.512 149 .000 .48 .33 .63

C No. Of

Dependence6.049 149 .000 .46 .31 .61

C Other

income6.532 149 .000 .49 .34 .64

Inference:





mean is more than 4(4.46) and less than 4(4.73), which is between, agree

and strongly agree. So, we can say that LIC agent are agreed but not

strongly agree with the statement.


87/123

Q.11 Do you ask for the expected return of the clients?

Expected Return

Frequency Percent Valid PercentCumulative

Percent

Valid

Yes 148 98.7 98.7 98.7

No 2 1.3 1.3 100.0

Total 150 100.0 100.0


88/123

INFERENCE:

Out of 150(98.7%) LIC agents

142 LIC agents ask expected return of his clients


89/123

Only 8(1.3%) LIC agents not believe in asking about the expected

return of his clients

Q.12 It is indispensable to know the risk appetite of the client

One Sample T-Test:


90/123


calculated mean and hypothesized mean (4). In other words, wehypothesize that the LIC agents are agree with the statement It isindispensable to know the risk appetite of the clienti.e. Ho : x = = 4

Alternative Hypothesis (H1): There is significant difference betweencalculated mean and hypothesized mean. In other words the LIC agentsare not agree with the statement It is indispensable to know the riskappetite of the client

i.e. H1: x , i.e. H1: x 4



NMea

n

Std.

Deviation

Std. Error

Mean

C Know The

Risk150 4.43 .81 6.65E-02

One-Sample Test

Test Value = 4


91/123

t dfSig. (2-

tailed)

Mean

Difference

95%

Confidence

Interval of the

Difference

Lower

Up

pe

r

C Know

The Risk6.516 149 .000 .43 .30 .56

Inference:


comes out as 0.00 which is less th

to find out whether lic agent believe in financial planning or not

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