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Role of technology in financial advisory business

SUMMER TRAINING REPORT


On
ROLE OF TECHNOLOGY IN FINANCIAL ADVISORY
BUSINESS
NAME OF SIP COMPANY:NJ INDIA INVEST PVT LTD
SIP LOCATION:JANAKPURI,DELHI
Submitted in partial fulfillment of the requirements of Post Graduate
Diploma in Management
by
Name of the Student-Rajbir Singh Bhatia
Batch-2014-16
Roll No.1799

Dr. Gaur Hari Singhania Institute of Management Research Kamla


Nagar, Kanpur-208005

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Role of technology in financial advisory business

Chapter 1- Prefatory Part

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CERTIFICATE
This is to certify that Rajbir Singh Bhatia assigned the research project on Role of technology
in financial advisory business study on various topics in Role of technology in financial
advisory business. He has submitted this project report in accordance with the guide lines. To
the best of my knowledge this is his original work and not submitted elsewhere for reward of any
other degree or any diploma.

DATE

PROJECT GUIDE
Anurag Tripathi

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ACKNOWLEDGEMENT
An individual cannot do project of this scale. I take this opportunity to express my
acknowledgement and deep sense of gratitude to the individuals for rendering valuable assistance
and gratitude to me. Their inputs have played a vital role in success of this project.
I express my sincere thanks to my project guide Anurag Tripathi her generous support, constant
direction and mentoring at all stages of training. I take this opportunity to thank all dealers,
customers who spared their precious time to provide me with valuable inputs for project without
which it would have not been possible.
I firmly believe that there is always a scope of improvement. I welcome any suggestions for
further enriching the quality of this report.

Rajbir Singh Bhatia


1799

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Executive Summary
The main purpose to selecting NJ India for summer training is that being in MARKETING field.
It is difficult to sell a physical product and NJ India Investment which sells a non-physical
product or we can say financial product like; Mutual funds & Insurance is even more difficult to
sell. So we want to know the overall working of NJ India Investment PVT.LTD and to accept the
challenges in the field. The main task of at NJ India Invest Pvt. Ltd is recruitment and
development of the Advisor which brings a client. The main competitor of NJ INDIA INVEST is
Prudent Company which is incorporated after NJ India Investment. NJ AUM is 15000+ Crores.
There are also some small players which sales mutual funds. Talking about this types industry we
can say that it is in growth stage in India. From this study we found some finding which
includes:
1) Very less wealth advisor as compare to insurance advisor
2) There is much untapped market which is due to fewer advisors.
3) People are not aware about mutual funds
4) People think that it is only a SHARE MARKET which is dealing in equity only which is totally
wrong. Our task was to convince them for the one to one meet with our unit manager Mr. Mayur
Trambadia and make them aware about wealth advisor business model. We also come to know
about systematic investment plan (SIP) the benefit of this is removers the confusion of which is
right time to invest in a share market which will yield a higher returns because the returns is
being average out whenever the market is at high and low. Other benefits are also that this SIP
starts with minimum amounts of Rs 500 which an ordinary people can afford. Overall experience
of this summer training at NJ INDIA INVEST PVT.LTD, Janakpuri Branch was very good. In
future also we are expecting their co-operation
Role of technology in financial advisory business is the process of assessing financial goals of
individual, taking an inventory of the money and other assets which the person have, determine
life goals and then take necessary steps to achieve goals in the stipulated period. It is a method of
quantifying a persons requirement in terms of money.
It was a great opportunity to work with ADA Group, Indias leading business group. Reliance
Money a subsidiary of Reliance Capital is among top financial companies. We will get to know
the organizational structure and various business models of the company.
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The major things to be considered in Role of technology in financial advisory business are time
horizon to achieve life goals, identify risk tolerance of client, their liquidity need, the inflation
which would eat up living and decrease standard of living and the need for growth or income.
Keeping all this in mind Role of technology in financial advisory business is done with six step
processes. This are self assessment of client, identify personal goals and financial goals and
objective, identify financial problems and opportunities, determining recommendations and
alternative solutions, implementation of appropriate strategy to achieve goals and review and
update plan periodically.
A good financial plan includes Contingency planning, Risk Planning (insurance), Tax Planning,
Retirement Planning and Investment and saving option.

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Table of Contents

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Chapter 2- Industry Study

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Industry Study
1. INTRODUCTION:Success is a journey, not a destination. If we look for examples to prove this quote then we
can find many but there is none like that of NJ India Invest Pvt. Ltd. Back in the year 1994, two
people created history by establishing NJ India Invest Pvt. Ltd. leading advisors and distributors
of financial products and services in India.
NJ prides in being a professionally managed, quality focused and customer centric organization.
The strength of NJ lies in the strong domain knowledge in investment consultancy and the
delivery of sustainable value to clients with support from cutting-edge technology platform,
developed in-house by NJ.
NJ has over 8,600* NJ Funds Network Partners and over 15000* normal advisors
associated with Nj. NJ presently has over Rs. 10000* Crores of assets under advice. NJ has over
130* PSCs (Partner Service Centers) in 22* states spread across India. The numbers are
reflections of the trust, commitment and value that NJ shares with its clients.
NJ prides in being a professionally managed, quality focused and customer centric organisation.
The strength of NJ lies in the strong domain knowledge in investment consultancy and the
delivery of sustainable value to clients with support from cutting-edge technology platform,
developed in-house by NJ.

At NJ they believe in
having single window, multiple solutions that are integrated for simplicity and sapience
making innovations, accessions, value-additions, a constant process
providing customers with solutions for tomorrow which will keep them above the curve,
today

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NJ India
Invest Pvt.ltd

NJ Fundz
Network

NJ Wealth
Advisors

NJ India
Realty

NJ Gurukul

2. VISION & MISSION OF NJ India invest: 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

Mission
Ensure creation of the desired value for their 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.
NJ believes in 360 Advisory Platform philosophy

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BUSINESS OBJECTIVES:

To recruit partners to the company in the form of mutual fund advisors.

To provide training and platform to the prospects to clear AMFI certification to get them
certified as mutual fund advisors.

To provide independent advisors and firms with integrated, comprehensive and practical
business solutions.

To provide the advisors and firms with complete insights, strategies and tools to bring
significant growth in business.

To provide a 360 advisory platform to its partners to ensure transformation and to


exploit the opportunities available.

Organization Structure
Company history
ABOUT FUNDS, PRODUCTS AND ITS CORE VALUES PRODUCTS

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NJ offers advisory and distribution services on the following products
1. Mutual funds covering all AMCs & all schemes,
2. Life insurance Prudential ICICI
3. Fixed deposits of companies,
4. Government/RBI bonds,
5. Infrastructure Bonds,
6. Approved securities for charitable trusts, etc
NJs main focus is though on mutual funds advisory and distribution. At NJ, we believe
that mutual funds, as an asset class, can be looked at for almost all of the financial needs.

People & culture:People:


Enthusiasm, Enterprise, Education and Ethics form the four pillars at NJ. At NJ one can witness
the vibrant energy, enthusiasm and the enterprising drive to excel flowing freely throughout the
organization. At NJ

can

also experience

the

creativity, one-to-one responsiveness,

collaborative approach and passion for delivering value.


At NJ people evolve to be more effective, efficient, and result oriented. Knowledge is inherent
due to the education-centric approach and the experience in handling different clients
groups across diverse product profiles.
NJ understands that the people are the most important assets of the company and it is not
the company that grows but the people. NJ

hence undertakes rigorous training and

educational activities for 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 regular stepping - stone to

realising the one vision that everyone shares.


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Culture
At NJ we believe in transforming the lives of our customers. We exist to create a difference
a

change

dream of

towards

transforming

better life. The culture at


lives. And we at

NJ

are

NJ reflects this responsibility, this


always excited and enthused in

doing so.
We believe in keeping You First, providing you with products and services that meet your
stated and unstated needs. Client satisfaction 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 objective is to keep an open, healthy
environment with ample

scope for enterprise, improvement, innovations and out-of-the box

solutions
Our efforts are constantly engaged in improving our existing services, offering new and
innovative solutions that go beyond your expectations. This focus has made us one of the
most respected and preferred service providers, especially in the mutual fund industry.

NJ India Invest - Investment portfolio

DSP Merrill Lynch Mutual Fund

Birla Mutual Fund

Alliance Capital Mutual Fund

ING Vysya Mutual Fund

Cholamandalam Mutual Fund

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Deutsche Mutual Fund

ABN - AMRO Mutual Fund

HDFC Mutual Fund

Franklin Templeton Mutual Fund

Reliance Mutual Fund

HSBC Mutual Fund

Unit Trust Of India

Prudential ICICI Mutual Fund

Kotak Mutual Fund

Standard Chartered Mutual Fund

SBI Mutual

Principal Mutual Fund

Tata Mutual

JM Financial Mutual Fund

LIC Mutual Fund

Sahara Mutual Fund

Sundaram Mutual Fund

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SWOT ANALYSIS:
S: STRENGTH:

Strong base with presence in 22 states in India with 130 locations.

Highly trained investment advisory team.

The number one mutual fund distributor in India

Tie up with all leading mutual fund and capital investment companies

Enjoying monopoly in the market

W: WEAKNESSES:

Low initial returns from mutual funds of 2-3% compared to 15 to 35% for the advisors.

Wide varieties of more than 900 mutual fund products very tough to find the ideal
product for investment.

O: OPPORTUNITIES:

Very few mutual fund advisors and huge demand for them

Regular and long term income stream from SIPs

Add a wide variety of products, solutions available for clients

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Greater solution to meet diverse needs of the clients

T: THREATS:

Current economic slowdown of mutual fund industry

Many domestic and global companies are interested to enter due to vast untapped market.

SERVICE STANDARDS:Service in words, service in action


Service

is

the

Business. At

key

NJ they

to unlocking
understand

customer
this

very

satisfaction, which
well. NJ

has set

again is key for sustainability


strict processes

in

place to

delivered service to customers. AT NJ strict quality service standards are set and a well defined
established and followed religiously by their quality customer service team.

Performance evaluated on a frequent basis and glitches are iron out.


But

quality

service

also involves quality

Significant the proper training

people in

addition

to processes. NJ gives

and development of the people involved in the service

delivery chain.

Further Wealth:
Have well-defined Privacy Policy to keep clients information confidential & internal
done on the same at regular intervals.
Receive various statistics which are analyzed on an ongoing basis to improve the
standards.
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they are committed to improve and enhance their services and undertake new Services
initiative and other services differentiate them with other services providers

in the

industry.

NJ 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 that any Of
the commitments have been breached/ compromised . At NJ they desire to honors their
commitments all points of the time and to all their customers without any bias.
To provide customer-focused need-based valued services.
To provide reliable, accurate and timely information.
To maintain all records in privacy.
To optimize services/benefits at least justifiable cost.
To develop and grow the customers business.
To provide constructive after sales service.

To honors our service commitments.


As NJ Wealth Advisors Global Private Client ,they get comprehensive set of

services that

ensure they stay informed, insightful, in command, of their investments at all times.

Products & Services


The following is broadly the product basket available to NJ Wealth Partner on eligibility /
registration basis. The NJ Wealth Distributors can engage in active distribution of the following
products to their clientele through NJ...
1. Mutual Funds

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NJ has tie-ups with all Asset Management Companies (AMCs) and all mutual funds
schemes are part of the product basket. Eligible Partners can offer any mutual fund
scheme to their client from day one of their association with NJ. The customers have a
single window access to any mutual fund product / scheme they would like to access.
2. Capital Market Direct Equity & ETFs
NJ is a SEBI registered member for NSE & BSE and capital markets. Clients of NJ
Demat & TRADING ACCOUNT service have access to capital market products of direct
equity stocks and Exchange Traded Funds (ETFs). One can undertake transaction online
or through Call & Transact facility.
3. Fixed Income
NJ has also entered into tie-ups with leading companies / institutions for distribution of
fixed income products, namely Non-Convertible Debentures, Infrastructure / RBI Bonds,
Company Deposits, etc. The availability of fixed income products in addition to mutual
funds, makes the product basket even more attractive.
4. Portfolio Management Services (PMS)
NJ has its own PMS offerings with NJ Advisory Services Pvt. Ltd., a group company,
being a PMS Service provider. The existing strategies have mutual funds as the
underlying, one of very few in the industry. In addition to this, PMS products by other
leading PMS Service providers also regularly form a part of the product basket with
Partners. Clients can subscribe to the PMS products of NJ / other providers through their
Partners. Access to NJ PMS products is exclusively available for NJ Partners only.

5.Real Estate
In addition to the INVESTMENT products, NJ Partners and clients also have access to
the real estate properties across India. NJ regularly enters into tie-ups with leading
developers in India for distribution of their products.

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Services provided by NJ

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Chapter 3- Part A-Week-wise Learnings & Project


Work

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Chapter 3-Part B - Project Work

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Project Title
Role of technology in financial advisory business

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Declaration by the Student


This is to declare that I have carried out this project work myself in part fulfillment of the
..Program of SCDL.
The work is original, has not been copied from anywhere else and has not been submitted to any
other University/Institute for an award of any degree / diploma.
Date: 3rd july,2015

Signature:

Place: Delhi

Name: Rajbir Singh Bhatia

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Declaration by the Faculty Mentor


I, Anurag Tripathi hereby declare that project titled Role of technology in financial advisory
business was done by Rajbir Singh Bhatia under guidance of Devendra Jaiswal, (PGP ChairMBA Program), of GHSIMR.
I also declare that this project is not submitted by Student Name for award of any degree,
diploma, literature or recognition earlier.
Anurag Tripathi
7th July, 2015

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Introduction
.

Technology in NJ

Technology has been and is our key strength. What they offer on the technological front is
unique and comprehensive. Their focus can be gauged from the fact that they have a seperate
sister concern started for the sole purpose of providing the best support to NJ in terms of
technology. High infrastructural spending is done to improve & strengthen their deliverables on
this technological front. Finlogic 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 have been developed in-house according to what they feel.
In todays world much is dictated by two important words Information and
Technology. NJ realizes this more than anyone else. And thats why they make constant efforts
to keep themselves ahead of the curve and ensure that their client receive quality, accurate and
timely information.
But technology by itself cannot make a difference. Only when technology is combined
with strong domain knowledge and understanding of customer needs, can it truly help in
making a significant difference. And this is what NJ has achieved and aims to continue doing so.
NJ Total Technology Solution

Website creation and Management

On-line Automatic Investment Accounts to all clients

Centralized Online Automatic Advisor Account (Partners Desk) for Management, MIS,
Portfolio Access, etc

Marketing, Sales and other support through application of technology


There exists a strong difference in quality, scope and type of reports offered by NJ

against other distributors. NJ, with very strong domain knowledge especially in mutual funds,
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and with investment-management perspective offers reports that are superior to other advisors
and brokers and are even superior compared to what many good banks offer.
Further, the Partners Desk service offered by NJ is a pioneering effort in the industry.
The kinds of tools and reports offered on the Desk are unique, more useful and superior to those
offered by other distributors.
Data Management at NJ
NJ has made arrangements to receive the following

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

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

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Objective of the Project


Objective of the study was to understand the role of technology in financial advisory
business. In todays world much is dictated by two important words Information and
Technology. NJ realizes this more than anyone else. And thats why they make constant efforts
to keep themselves ahead of the curve and ensure that their client receive quality, accurate and
timely information.
But I found out that technology by itself cannot make a difference. Only when
technology is combined with strong domain knowledge and understanding of customer
needs, can it truly help in making a significant difference. And this is what NJ has achieved and
aims to continue doing same.

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Methodology
Research Design
The study is about to find various avenues available for an individual to invest and ways to
achieve long term and short term financial goals through financial planning. It intend to study the
pattern in which individual allocates his savings in various asset class. It describes the awareness
of investor about various alternatives available to them. It also aims at creating awareness of
financial planning.
The data required for the study would be acquired through personal interview and questioner and
it was collected by means of cold calling (Cold calling is the process of approaching prospective
customers or clients, who were not expecting such an interaction),and the research period was
spread out in twenty days. For this purpose researcher choose New Delhi area, where researcher
could find enough educated office going people, which will help us getting better understanding
of how financial planning is done.

Data collection techniques and tools


For the purpose of data collection researcher took help of both primary data and secondary data
collection method.
Primary data are those, which are collected afresh and for the first time, and thus happen to be
original in character. This method was used by means of Personal Interview, wherein researcher
had face-to-face contact with the persons. The reason behind choosing this method was to have
detailed information on the subject. It also provided opportunity for selecting the sample for
interview. The interview conducted were a mixture of structured and unstructured interviews.
Scope was kept open for detailed discussion at the discretion of the interviewee. Where there was
a time crunch a structured procedure was followed wherein predetermined questions were put
forward.
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The other method was adopted in primary data collection was Questionnaires. This was used to
assist a more structured form of information. The information thus obtained was standard and in
a more unbiased form. It assisted to collect data from a large sample size.
The pattern adopted was a general form of questionnaire. Questions are in dichotomous (yes or
no answers), multiple choice and open ended question. Open ended questions are restricted due
to the difficulty faced in analyzing. The questioner was kept short and to the point.

Secondary data means data that are already available i.e., the data which is already collected
and analyzed by other. To get a better understanding and to have a larger exposure on the subject
this method was used. Methods use was data available on World Wide Web, articles in
newspapers, financial industry reports, Financial Planning board of India reports and article,
reports published by Government of India, etc. Support was also provided by the project guide
by giving inputs from his years of experience.

Sample Design
Sample design was based on principles of sample survey. Sample was decided on socio
demographic factors such as income and age group. The number of respondent was restricted to
50 due to lack of time. Sampling unit was geographical unit where the research was carried in
NEW DELHI. Source list for respondents was not predetermined it was on random basis. The
various parameters on which the research was to be conducted are:
Awareness of financial Planning
Alignment of life goals and financial goals
Investment distribution in various asset classes
Decision influencing investment
Choosing qualitative or quantitative research methodologies
Your research will dictate the kinds of research methodologies you use to underpin your work
and methods you use in order to collect data. If you wish to collect quantitative data you are
probably measuring variables and verifying existing theories or hypotheses or questioning them.
Data is often used to generate new hypotheses based on the results of data collected about
different variables. Ones colleagues are often much happier about the ability to verify
quantitative data as many people feel safe only with numbers and statistics.
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However, often collections of statistics and number crunching are not the answer to
understanding meanings, beliefs and experience, which are better understood through qualitative
data. And quantitative data, it must be remembered, are also collected in accordance with certain
research vehicles and underlying research questions. Even the production of numbers is guided
by the kinds of questions asked of the subjects, so is essentially subjective, although it appears
less so than qualitative research data.
Qualitative research
This is carried out when we wish to understand meanings, look at, describe and understand
experience, ideas, beliefs and values, intangibles such as these. Example: an area of study that
would benefit from qualitative research would be that of students learning styles and approaches
to study, which are described and understood subjectively by students.
Using quantitative and qualitative research methods together
This is a common approach and helps you to 'triangulate' i.e. to back up one set of findings from
one method of data collection underpinned by one methodology, with another very different
method underpinned by another methodology - for example, you might give out a questionnaire
(normally quantitative) to gather statistical data about responses, and then back this up and
research in more depth by interviewing (normally qualitative) selected members of your
questionnaire sample.
Research methods in brief
Look at the very brief outlines of different methods below. Consider which you intend using and
whether you could also find it more useful to combine the quantitative with the qualitative. You
will be familiar with many of these methods from your work and from MA, MSc or BA study
already.
Qualitative research methods

Interviews

Interviews enable face to face discussion with human subjects. If you are going to use interviews
you will have to decide whether you will take notes (distracting), tape the interview (accurate but
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time consuming) rely on your memory (foolish) or write in their answers (can lead to closed
questioning for times sake). If you decide to interview you will need to draw up an interview
schedule of questions which can be either closed or open questions, or a mixture of these. Closed
questions tend to be used for asking for and receiving answers about fixed facts such as name,
numbers, and so on. They do not require speculation and they tend to produce short answers.
With closed questions you could even give your interviewees a small selection of possible
answers from which to choose. If you do this you will be able to manage the data and quantify
the responses quite easily. The Household Survey and Census ask closed questions, and often
market researchers who stop you in the street do too. You might ask them to indicate how true for
them a certain statement was felt to be, and this too can provide both a closed response, and one
which can be quantified (30% of those asked said they never ate rice, while 45% said they did so
regularly at least once a week... and so on).
The problem with closed questions is that they limit the response the interviewee can give and do
not enable them to think deeply or test their real feelings or values.
If you ask open questions such as what do you think about the increase in traffic? you could
elicit an almost endless number of responses. This would give you a very good idea of the
variety of ideas and feelings people have, it would enable them to think and talk for longer and
so show their feelings and views more fully. But it is very difficult to quantify these results. You
will find that you will need to read all the comments through and to categories them after you
have received them, or merely report them in their diversity and make general statements, or pick
out particular comments if they seem to fit your purpose. If you decide to use interviews:

Identify your sample.

Draw up a set of questions that seem appropriate to what you need to find out.

Do start with some basic closed questions (name etc.).

Don't ask leading questions.

Try them out with a colleague.


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Pilot them, and then refine the questions so that they are genuinely engaged with your
research object.

Contact your interviewees and ask permission, explain the interview and its use.

Carry out interviews and keep notes/tape.

Transcribe.

Thematically analyze results and relate these findings to others from your other research
methods.

Quantitative research methods

Questionnaires

Questionnaires often seem a logical and easy option as a way of collecting information from
people. They are actually rather difficult to design and because of the frequency of their use in all
contexts in the modern world, the response rate is nearly always going to be a problem (low)
unless you have ways of making people complete them and hand them in on the spot (and this of
course limits your sample, how long the questionnaire can be and the kinds of questions asked).
As with interviews, you can decide to use closed or open questions, and can also offer
respondents multiple choice questions from which to choose the statement which most nearly
describes their response to a statement or item. Their layout is an art form in itself because in
poorly laid out questionnaires respondents tend, for example, to repeat their ticking of boxes in
the same pattern. If given a choice of response on a scale 1-5, they will usually opt for the middle
point, and often tend to miss out subsections to questions. You need to take expert advice in
setting up a questionnaire, ensure that all the information about the respondents which you need
is included and filled in, and ensure that you actually get them returned. Expecting people to pay
to return postal questionnaires is sheer folly, and drawing up a really lengthy questionnaire will
also inhibit response rates. You will need to ensure that questions are clear, and that you have
reliable ways of collecting and managing the data. Setting up a questionnaire that can be read by

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an optical mark reader is an excellent idea if you wish to collect large numbers of responses and
analyze them statistically rather than reading each questionnaire and entering data manually.
You would find it useful to consult the range of full and excellent research books available.
These will deal in much greater depth with the reasons for, processes of holding, and processes
of analyzing data from the variety of research methods available to you.
Developing and using a questionnaire - some tips:

Identify your research questions

Identify your sample

Draw up a list of appropriate questions and try them out with a colleague

Pilot them

Ensure questions are well laid out and it is clear how to 'score them' (tick, circle, delete)

Ensure questions are not leading and confusing

Code up the questionnaire so you can analyze it afterwards

Gain permission to use questionnaires from your sample

Ensure they put their names or numbers on so you can identify them but keep real names
confidential

Hand them out/post them with reply paid envelopes

Ensure you collect in as many as possible

Follow up if you get a small return

Analyze statistically if possible and/or thematically


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Data Analysis and Interpretation

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1) Age distribution of the respondent

Almost 70% of respondent was from age group 21yrs to 45yrs this is considered to be most
active age group. During this age, life of an individual changes very drastically. The career is in
growing stage in starting few years and there are hardly any responsibilities, at this time there is
a lot of funds available for disposal. It is this age where maximum risk can be taken and a greater
period can be given to grow the amount invested. As a person enter into their 30s they have
increased family responsibility and gradually the risk taking ability reduces with the age. With a
greater portion of such population included in data collection a greater degree of understanding
can be gained how financial planning is done by young India.

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2) Income distribution of respondent

Financial planning is about assessing our present cash flows; estimating the required cash flow
after a certain period of time and to determine the steps required to achieve this over a period.
The amount of disposable income at hand determines various investment decisions. It also helps
in making tax plans so that maxim benefit can be gained through various tax exemptions. So it is
necessary to know the income inflow of an individual. The above graph shows that a major
portion of respondent are in income slab of up to Rs.2,00,000 p.a.; this indicates that the persons
may be in the beginning stage of career. With increasing income slab the no of respondent are
reduced.
3) Person willingness to take risk according to age
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The investment decisions are more based on the willingness to take the risk rather than the ability
to take risk. The above graph describes the willingness to take risk at various life stages. At the
younger age people are more willing to take risk which reduces over the years as responsibility
increase. Although different individual may have different preferences which could contradict
their age. Many a time investment is a function of willingness rather than ability which is clearly
described by above graph.

4) Investment made by the respondent in various avenues


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Role of technology in financial advisory business

A fair idea of asset allocation of individuals in various asset classes can be observed through this.
It was observed that the all respondent had a life cover policy. This shows that the basics of
financial planning were achieved. The next major portion was Provided Fund due to it being
more secure investment and also tax exemption offered. Major investments were also made in
Bank Fixed Deposits and Post Office Deposits. Equity was not a preferred investment among
many due to its volatile nature but many used it as a long term investment by investing in large
companies. Investment in gold was more in form of jewelry which is not a good option as
investment. Very few invested in gold coins/bars and Gold ETFs.

5) Satisfaction of investors on their previous investment


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Role of technology in financial advisory business

A major portion of respondent was unsatisfied with the returns they got on their investment. This
reflects that investment decision was not taken properly. Few common reasons cited were:
o
o
o
o

Inadequate knowledge about the instrument in which investment was made


Misguided by the agent of financial company
Charges applicable were not disclosed initially
Unplanned investment

Also a major portion of investment was in assets which has a low risk low returns category.
This also was a major reason of respondent unsatisfied with current returns.
6)

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Role of technology in financial advisory business

Findings
1. Strong lineage and commitment to the business
Since its birth in 1994, NJ Group has grown into a diversified business group in the last
21 years. The business of financial products distribution is the flagship business of the
group and it remains at the heart of NJ Group. The management and team at NJ share a
very strong vision for the business and are committed to further strengthen and expand.
NJ Wealth also gets complemented and benefited with the growing presence of NJ Group
in other businesses.
2. Customer Centric Approach
The work culture of NJ Wealth is geared towards helping customers win with solutions
covering all critical areas of success. Be it NJ Wealth Partners or their customers, NJ's
continuous focus has been to design, deliver and enrich our value-proposition in areas of
product & service offerings, operational excellence, service quality, technology,
governance and more. The business and wealth management ideas and strategies
propagated at NJ are also centered around sound, proven principles that serve the best
interests of the customers. With the continued trust of our customers, we are confident to
steadfastly maintain the course of building strong customer relationships and experience.
3. Effective use of technology
At NJ we have constantly tried to see technology as an enabler to meaningfully deliver
the most critical and relevant needs first. With our rich experience, understanding and an
in-house team we have custom built our entire platform to match customer needs. Our
integrated technology setup covers a gamut of business areas including customer
offerings like online desks to the critical operations processes and all important areas of
business management. NJ also has adapted global standards and best practices in
information security, customer privacy and network, infrastructure management. The
effective use of technology has helped us to manage the business growth and deliver
solutions in a reliable, effective and secured fashion.

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Role of technology in financial advisory business


4. Controls through well defined processes
NJ Wealth takes governance, compliance and risk management as equally important
business areas in addition to customer solutions and operational excellence. The culture at
NJ has evolved over the years to be strong policy, process and systems oriented. We have
put strong internal controls and monitoring mechanisms in place on one hand, while
removed people dependency and automated processes on the other. We continue to
evolve our controls and processes to mitigate business risks, offer standard services,
enhance productivity and improve customer experience and satisfaction.
5. Access to multiple products, single window solutions
NJ provides easy access to a wide range of financial and non-financial products in diverse
asset classes. The products are available to the customers of NJ Partners. The product
basket available includes all mutual funds schemes; direct equity, ETFs, PMS and fixed
income products like banks, NCDs, Company Deposits, and real estate properties. In
addition to products, NJ also offers the services of Demat and TRADING with online and
Call & Transact facility and also mobile trading service in mutual funds. The product &
service basket is enough to meet the needs and build the entire portfolio for any retail,
HNI or corporate client.
6. Wide reach across India
Access to NJ branch is never very far with presence at 94 branches in 21 states. Further,
internal systems at NJ provide the freedom for any Partner and/or Client to transact from
across all the branches of NJ. Clients can also approach NJ for any assistance/transaction
in absence of their Partners at any of our branches.

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Role of technology in financial advisory business

Conclusions
The Saving behavior has been changed considerably over the last couple of years. The savings
rate in India is comparatively higher than various other countries. Earlier the trend of saving was
in terms of physical assets but it has started to shift now to financial instruments. This trend
partially reflects the relentless expansion of the various branch networks of the financial
institutions into the county's rural areas and partially holds the increasing trend of the easy
accessibility of the alternative investment opportunities. This is just because of technology as
nowadays technology is playing important role for financial advisory business. This was proved
during cold calling and personal interviews done with respondents. After explaining them
technical advantages of NJ with other companies. Respondents stated NJ is far more better than
other companies in technological support.

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