A CASE STUDY

A STUDY ON MUTUAL FUNDS AND THEIR IMPACT

ON INVESTORS DECISIONS

Submitted in Partial Fulfillment of the Requirements for the

Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
of
BANGALORE UNIVERSITY

By
SHANKAR
Reg. No. 15SKCMD166

Under the guidance of

Prof. R. Jyothirmayee

AIMS INSTITUTE OF HIGHER EDUCATION

20152016

1.3 EXECUTIVE SUMMARY

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The NJ India Investment company is the leading advisor and distributor of financial products. It
is established in the year 1994. It mainly deals with the mutual funds.
This case study title A Study on Mutual Funds and their Impact on Investors Decisions.
Offer ideal an investment opportunities to the investors financial Advisors. Like any other all
investments, they also carry certain risks of the financial treading goals. The money thus
collected from the interested people and it will be invested in capital markets as instruments
the like shares, debentures, equity SIP and other financial long term of securities & Govt
bonds. Mutual fund are mostly used by common peoples for investing their money as it gives
an opportunity to investor in a diversified, professionally managed by traditionally of
securities at a relatively lower cost.

OBJECTIVES:
To determine the understand about the concept and functions of Mutual Funds.
This study helps in knowing the different schemes of Mutual Funds.
This study is focuses on decision making to the investors.
To know the functions and performance about the asset management companys.

KEY WORDS:

Investors equity
Mutual fund
Decision
Risk and Investment schemes.

INDEX
S.NO Contents Page No.

1.1 Title
1

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 1.2 Permission from Company

1.3 Executive Summary

2

1.4 Introduction 4-5

1.5 Background 6-14

1.6 Case Context 15-16

1.7 Case Study 17-28

1.8 Theoretical Concept 29

1.9 Discussion 30

1.10 Reflection 31

1.11 References 32

1.12 Appendices 33

1.4 INTRODUCTION

The case study is on A Study on Mutual Funds and their Impact on Investors Decisions.
This study lets us know A Study on Mutual Funds and their Impact on Investors Decisions
Explaining How mutual funds helps them to generate revenue and how to make them aware of
mutual funds.

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The enactment of calculation of Mutual funds is a Vital Matters to distress to The fund
Manager, Investors and decision alike. The middle Competence of the company is to meet the
Objectives and needs of the Investors and to provide optimum return for their risk regular
information that cash or fund is rare and that Investors attempt to augment their profits. Be that
as it may, when the arrival is higher, the danger is likewise higher,

This Section also talks about the theory of portfolio analysis and the different measures of Risk
and Return used for the comparison.
The second section detailed on the need, objectives, and limitations of the study. It also
discussed about the sources and the period for data collection. It also deals with the data
explanation and analysis part wherein all the key measures related to risk and return are done
with the Interpretation of the results.
In the third section, an effort made to analyses and compare to performance of the equity
Mutual Funds. For this reason beta -value, standard deviation, and risk measures have been
used.
The portfolio analysis of the selected Fund has been done by the measures return for the
holding period.
At the end, it illustrates the suggestions and findings based on the study done in the previous
sections and finally it deal with the conclusion part.

Meaning of Mutual Fund:

A Mutual Fund is a trust that lakes the ventures of various speculators who share an open money
related objective. The cash thus gathered is then put resources into capital marketplace apparatuses,
for example, shares, debentures and different securities. The compensation earned through these
hypotheses and the capital thankfulness recognized is shared by its unit holders in degree to the
amount of units guaranteed by them. Thusly a Mutual Fund is the most sensible hypothesis for the
typical man as it offers an opportunity to place assets into a widened, professionally directed wicker
container of securities at a by and large simplicity. Shared asset is a component for pooling the
assets by issuing units to the financial specialists and putting stores in securities as per targets as
uncovered in offer report. Interest in securities are spread crosswise over wide cross area of
enterprises and segments and along these lines the danger is diminished .enhancement lessens the

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 danger since all stocks may not move in the same bearing in the same extent in the meantime.
Common asset issues units to the financial specialists as per amount of cash contributed by them.
Financial specialists of common assets are known as unit holders.

Redemption means withdrawing investment money from mutual fund. Redemption might be
done on full contributed sum or the amount one the investor needs cash yet it ought to be not as
much as aggregate investment sum. Mutual fund yields maximum returns with minimum risk.
Mutual funds are very much overseen supports despite the fact that investors are lingering
behind to hold their assets for long stretch. This case bargains about, what makes the investors
to redeem their investment, method of redemption, figuring of redemption rate, SEBI rules,
impacts of redemption on organization and recommendations.

1.5 BACKGROUND

1.5.1 ABOUT COMPANY

Mutual funds are professionally overseen stores which pools cash from numerous investor
and put them in different securities. Mutual funds yield high rate of return with less hazards.
They have portfolio diversification. MF is tool for wealth creation for investor. As opposed to
setting resources into individual securities its ideal to place resources into Mutual Fund which
gives higher return than individual securities. MF is a long haul investment with minimum 5
years and minimum amount to invest is Rs. 500.
Every investor wishes to have maximum return with minimum risk. For this the investors
money should be allocated properly. This will be done by MF by its portfolio diversification
which is managed by professional fund manager.

1.5.2 History of Mutual Fund

The primary mutual fund has been introduced when the UTI has been constituted in 1963.

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 The public sector banks were begun to dispatch mutual fund amid 1987. The first one was
launched by SBI.
Because of liberalization, Privatization, and Globalization, private sector started MF in 1993.
The primary private segment asset to work in India was Kothari Pioneer. Presently it is
converged with Franklin Templeton.
In 1996 SEBI presented new direction for MF, which made quick development in MF industry.

1.5.3 Types of Mutual Funds

Open Ended Mutual Fund
It is a plan in which entry and exist of units are not restricted. That investor can purchase
and offer their units at whatever point at a quality associated with the assets net resource
esteem. There is no development period. These funds are not recorded.
Close Ended Mutual Fund
It is a plan where units are bought on the season of new reserve offer. The
units are sold on securities exchange which is recorded on secondary market
simply after maturity period is over. There is a development period for close
ended fund (usually 5 to 15 years) or it can be up to retirement yet at any rate time
of 5 years.
Classification of the Mutual Funds

Money Market Funds: These schemes investment period is short- term. The profits in this
plan are less fluctuating when contrasted with the others. These funds give simple liquidity,
protection of capital and moderate income.
Fixed Income Funds: In this plan an investor gets fixed and regular income. Such plans for
the most part put resources into altered salary securities, for example bonds, government
securities. These funds less dangerous when contrasted with the value reserve.
Equity Funds: This asset is additionally called development reserve. This asset speculation
period is from medium to long haul. Value securities speak to possession capital. Such finances
are similarly dangerous. These plans give distinctive alternatives to the speculators like profit
choice; capital thankfulness and so on and financial specialists may choose a choice relying
upon their decision

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 Index Funds: These plans put resources into the securities in the same weight age involving a
record. These are likewise trade exchanged list reserves propelled by common assets, which are
exchanged the stock trade.
Balanced Funds: The primary point of adjusted asset is to give both development and general
pay thusly plots put both in values and settled wage securities in the extent demonstrated in
their offer reports.
1.5.4 Advantages of Mutual Funds
Diversification: Enhancement diminishes hazard as the funds are not invested not only in one
particular fund.
Professionally Managed Investment: In the mutual funds the funds are allocated by the
professionals. As the professionals are ex pert in the allocation, the investors money will not be
much risky.
High Return: When contrasted with all the investment types likes fixed deposit, Postal
savings etc. these will yield less return than mutual fund. So it is the one of the upside of
common fund
Less Risk: Mutual fund in perform less risk as the funds are diversified by the professionals.
When contrasted with others savings, mutual fund risk is lower.
Tax Benefit: There are sure plans under common asset which are duty advantage under the
income tax act.
To Fight with Inflation: As the common asset return is high this is higher than inflation rate,
so the mutual fund has the preference to battle with inflation.

1.5.5 Disadvantages of Mutual Funds

Management Risk: Mutual fund is professionally overseen funds, investors fund are overseen
by fund manager. So, the investor depends upon fund manager to make decision. If the fund
manager not performed well in making decision, the investors fund will be allocated wrongly.
Fluctuation in Rate of Return: No investments are risk free, and also no investments returns
are fixed. If the value of stock market comes down even the fund value will also come down.
Whatever the fund is managed.

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 Choice Overloaded: There are more than 10000 mutual funds in operation and that they will
differ with procedure, division and area. This will inconvenience in an investor to choose the
fund.
No Control over Cost: However, SEBI has forced certain breaking points on the expenses that
can be charged to any scheme.

1.5.6 Company profile

ABOUT NJ INDIA INVEST
NJ remains for Mr. Neeraj Choksi and Jignesh Desai who began the Organization. NJ
Group is a main player in the Indian financial services industry. Today NJ India invest Pvt. Ltd.
is no.1 counselors and merchants of financial items and services in India. It was built up in the
year 1994 in Surat, India. Their business spread more than 100 locations at 21 states in India.
Throughout the years, NJ Group has ventured into different organization and today has the
nearness in organization of financial products distribution (Mutual Funds), asset management,
real estate, insurance broking, training, technology and offshore distribution.

VISION AND MISSION

Vision
Total customers Satisfaction
Making Wealth Transforming Lives
Building the trust of customers and partner Commitment to Excellence.
Mission
Ensure formation of the wanted worth for client, representatives and partners through
consistent change, developments and duty to administration and quality. To give arrangements
which meet desires and keep up high expert and moral guidelines alongside the adherence to
administration duties.

360 Advisory Platform of NJ Funds

360 is not an angle but rather 360 counsel stages it suggests by what number of ways NJ
help their counselor to develop their Business.
NJ offers you with a one of a kind, far reaching business stage to help you grow and
develop your advisory practice in a intense, powerful manner. The stage conveys a great deal
more to you, keeping you above bend both on business front and on customer administrations.

Consumer Grievances
The current may approach NJ client administer to any questions illuminations or issues that
they confront in NJ. Additionally you may email us for any questions or grievances.
Help-desk: 1800 200 0155(toll free)

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 NJ Businesses
Distributors Network
Asset management
Real estate
Insurance broking
Global wealth advisory
Information technology
Training and development

Group of people in NJ India Pvt. Ltd Table

100+ Offices in 21 states

1300+ Employees
23000+ NJ Partners
Rs.25000cr. + of Mutual Fund
AUA
1500000+ Customers
*as on 2015

1.5.7 SWOT ANALYSIS

Strength
Highly trained investment advisory team.
The number one mutual fund distributor in India.
Enjoying monopoly in the market.
Tie up with all mutual fund and capital investment companies.

Weaknesses
Shortcomings Initially low comes back from the shared assets of 2-3% when contrasted with
15-35% for the guides

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 Very tough task to choose the ideal product for investment from wide varieties of mutual fund
product.
Opportunities
Greater solution to meet diverse needs of the clients.
Regular and long term income stream from SIPs.
Huge demand for advisors as they are few in numbers.
Add a wide variety of products, solutions available for clients.

Threats
Current economic scenario slowdown of mutual fund industry.
Many domestic and global companies are interested to enter due to vast untapped market.

1.5.8 PRODUCTS & SERVICES

Mutual fund
Asset management
Real estate
Insurance broking
Global wealth advisor
Information technology
The above are the core investment in which NJ deal and where they have their competency. But
the eyes of NJ lie in mutual funds and were they focusing the most.

The weekly performance sheet

The monthly fund fact sheet Various subscription services via E-mail
Sharing relevant information related to the Indian investment world.
Varied services through NJ funds network for partners.

Overall. They also provide the net-based services to their clients and agents. Their E-services
are provided by website www.NJIndiaInvest.com It is covered with the detailed information
about the Mutual Fund industry; it passes through various financial planners to satisfy
investment goals. In order to measure the performance of the Mutual Fund schemes it has an

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 analytical tool which will measure the schemes such as Return calculators, SIP return
calculators, and many others. There is an availability of separate desk for the clients to get their
portfolio information on fingertips.
1.5.9 COMPETITORS OF NJ INDIA INVEST:
Prudent
Karvy
Bajaj
ICICI Prudential
Birla Sun life
An and Ratio
India Info line
Bonanza

1.5.10 NJ INDIA INVEST FOCUS

At NJ the people are education centric, the relationship managers will help you in identifying
and understanding your needs and help you develop a portfolio across different asset classes
commensurate to your needs. This practice is only performed at NJ and this made NJ superior
to nearby competitors in similar field.
There are experts who are gives a feel on the various assets classes and also explains you about
risk associated with each in a simple manner to put you at calm. Once the investment is planned
and done we dont leave our client in between but we back them by periodic valuation report
and regular information through newsletters, mailer, e-mail, etc

1.5.11 PRODUCTS & SERVICES

Mutual fund
Asset management
Real estate
Insurance broking

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 Global wealth advisor
Information technology

The above are the core investment in which NJ deal and where they have their competency. But
the eyes of NJ lies in mutual funds and were they focus the most.

Service Provided To Valuable Clients and Agents:-

The weekly performance sheet

The monthly fund fact sheet Various subscription services via E-mail
Sharing relevant information related to the Indian investment world.
Varied services through NJ funds network for partners.

Overall they also provide the net-based services to their clients and agents. Their E-services are
provided by website www.NJIndiaInvest.com It is covered with the detailed information
about the Mutual Fund industry; it passes through various financial planners to satisfy
investment goals. In order to measure the performance of the Mutual Fund schemes it has an
analytical tool which will measure the schemes such as Return calculators, SIP return
calculators, and many others. There is an availability of separate desk for the clients to get their
portfolio information on fingertips.

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 1.6 CASE CONTEXT

1.6.1 Net Asset Value (NAV)

The most critical part of the figuring is the valuation of the asset owned by the fund. When
it is figured, the NAV is just the net value of assets separated by the quantity of units
outstanding. Total value of fund securities at the end of valuation date minus outstanding fund
liabilities and dividing by No. of outstanding shares in the fund.

There is good potential market for Mutual Fund Investors in Bangalore, but with the doubt of
investors the market is low for mutual funds in Bangalore and also in India. And it is the duty of
advisory companies to remove the doubts from investors as well as necessity to share and
knowledge about mutual funds to make them as investing.

Here the Main problem find out during the case study, here the investors going back because of
they dont know the clarity and satisfy information regarding mutual funds, even they are not
ready to take the risk but they are concentrating on returns only ,so they lose the money, lack of
awareness about mutual funds and Risk return analysis . Here advisors should be need to made
the aware of mutual funds and need to analyze the risk and return and benefits.
In Bangalore the most of financial advisors dont have the proper knowledge regarding mutual
funds, here the quick performance is required to achieve something in this modern era, mutual
consent between the advisors and investors is more important.
Hens the investors need to decide how much risk he is willing to take In order to know this the
investor need to aware diverse sorts of risk involved with the investor investment decisions.
And even when we compared to other nations India is way behind in Mutual Fund industry
Mother

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The insurance companies which I visited in search of leads, they are:

Life Insurance Corporation of India in Chamrajpet, Koramangala, and JP Nagar.

Star Life Insurance in JP Nagar.
Birla Sun life Insurance in Jayanagar 3rd Block.
SBI life insurance in Jayanagar.
ICICI Prudential insurance near South end circle.
The different schemes of mutual funds are:
Axis Banking Debt Fund-Dir-bonus

Birla sun life cash manager-Dir-Dly-Devidend

Tax Saving Schemes

Beta value of a scheme

HDFC annual interval fund-Dir-Dly-Devidend

LIC mutual fund-Dir-Dividend and many more scheme.

1.7 CASE STUDY AND ANALYSIS

The companys main issue is to find the investors decision who can enroll their clients to invest
in Mutual Funds. This helps clients to gain high returns with low risk. It helps clients to fulfill
their financial objectives with mutual funds.
It not only helps clients to gain higher returns over there investment but it helps formation of
capital for company and industry. Flow of cash in the economy is good sign of economic
growth in a country.

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 As trainee in NJ India I should search for leads (investor decision). In search of leads I should
visit various insurance companies around our office which helps to find Insurance agents. If
there are interested in visiting our office for seminar the agent will be converted into lead.
The insurance companies which I visited in search of leads, they are
Life Insurance Corporation of India in Chamrajpet, Koramangala, and JP Nagar.
Star Life Insurance in JP Nagar.
Birla Sun life Insurance in Jayanagar 3rd Block.
SBI life insurance in Jayanagar.
ICICI Prudential insurance near South end circle.
Kotak Mahindra of Mutual funds in Jayanagar.
HDFC of mutual funds of Koramangala of Bangalore
Our company located in Jayanagar 9th Block. I was instructed to visit insurance companies
around the location of the office. After getting leads, I need to make entry in NJ India website.
After a week, the leads which were collected. My organization guide (Unit Manager) and me
were e making calls to leads. To inform them date and time of seminar conducted in our office.
In seminar, our branch manager would do presentation on Mutual funds.
The compared by 6 Month from 1/March/2016 to 31/August/2016.

1.7.1 Performance calculation of ICICI prudential from the date of 1/03/2016

to 31August 2016
Assumption:
Assume that I would invest Rs.50000 in ICICI prudential mutual funds on the date of 1st March
2016 up to 6 month and to calculated returns shown the below table
The first scheme is Prudential Dir-Dividend Amount, Investment from the date of 1st
March 2016 the amount of Rs. 50000 and return Generated amount of Rs. 51100 with the
return of 1100 and the percentage obtained by 2.2%, it will be positive return to Investors under
scheme of ICICI prudential .
Scheme Name (ICICI) Amount Value of the Investment Return Parentage of
Prudential Investment As on 20th August 2016) generated(In return
(1st March 2016) Rs) Obtained

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1. Prudential Dir- 50000 51100 1100 2.2%
Dividend

2. Prudential Dir- 50000 51750 1750 3.5%

Growth

2. Prudential Focused 50000 52000 2000 4%

blue-chip equity
4.Nifty index Fund-Dir- 50000 51350 1350 2.7%
Growth

5.Technology fund 50000 51550 1550 3.1%

Growth

6. Prudential long terms 50000 51850 1850 3.7%

dividend

7.Infrastuature fund- 50000 52250 2250 4.5%

Dividend
As compared to the above analysis the rate of return to the company through scheme 7 is more.
The return from the investment is 4.5% within six months. The higher the rate of interest the
higher the investment. The risk of the investment is also less. So there is more rate of return.
1.7.2: Performance calculation of Birla sun life cash manager-Dir-Dly-
Devidend from the date of 1/March/2016 to 31August 2016
Assume that I would invest Rs.50000 in Birla sun life cash manager-Dir-Dly-Devidend mutual
funds on the date of 1st March 2016 up to 6 month and to calculated returns shown the below
table
The first scheme is Prudential Dir-Dividend Amount, Investment from the date of 1st
March 2016 the amount of Rs. 50000 and return Generated amount of Rs. 51100 with the
return of 1100 and the percentage obtained by 2.2%, it will be positive return to Investors under
scheme of Birla sun life cash manager-Dir-Dly-Devidend mutual funds Birla sun life under this
many more scheme are there like that equity fund transfer is amount of Rs 5000 and after
investment on date of 1/March/2016 to 31/August2016 value of Investments 51110 And
Return of amount is 1110 and also parentage of return obtained is 2.2%.
Scheme Name (Birla Amount Value of the Investment Return Parentage of
sun life) Investment As on 31th August 2016) generated(In return
(1st March 2016) Rs) Obtained
1. Equity fund transfer 50000 51110 1110 2.2%
Dir-Dividend

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2. transfer Dir-Growth 50000 51550 1550 3.1%

2. Focused blue-chip 50000 51850 1850 3.7%

equity
4.Nifty index Fund-Dir- 50000 52250 2250 4.5%
Growth

5.Technology fund 50000 51950 1950 3.9%

Growth

6.long terms dividend 50000 52400 2400 4.8%

7.Infrastuature fund- 50000 52500 2500 5%

Dividend

As compared to the above analysis the rate of return to the company through scheme 6 is more.
The return from the investment is 4.8% within six months. The higher the rate of interest the
higher the investment. The risk of the investment is also less. So there is more rate of return.
And Equity fund transfer is less of Parentage of return
obtained of 2.2% return amount is 1110. 50000+1110=51110 is less amount The investor
decision is like more return obtained he in invested
1.7.3. Performance calculation of HDFC annual interval fund-Dir-Dly-
Devidend from the date of 1/March/2016 to 31August 2016
Assume that I would invest Rs.50000 in HDFC mutual funds on the date of 1st March 2016 up
to 6 month and to calculated returns shown the below table
The first scheme is HDFC Dir-Dividend Amount, Investment from the date of 1st March
2016 the amount of Rs. 50000 and return Generated amount of Rs. 51100 with the return of
1100 and the percentage obtained by 2.2%, it will be positive return to Investors under scheme
of HDFC of mutual fund .
Scheme Name (HDFC) Amount Value of the Investment Return Parentage of
Investment As on 31th August 2016) generated(In return
(1st March 2016) Rs) Obtained
1. Us blucher equity 50000 51250 1250 2.5%
Dir-Dividend

2. predictive Dir- 50000 51750 1750 3.5%

Growth

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2. Focused blue-chip 50000 51050 1050 2.1%
equity
4.Nifty index Fund-Dir- 50000 51900 1900 3.8%
Growth

5.Technology fund 50000 52550 2550 5.1%

Growth

6 long terms equity 50000 51050 1050 2.1%

dividend

7.Infrastuature fund- 50000 51400 1400 2.8%

Dividend

From the above table we can see the performance of various funds by using. Standard of HDFC
under scheme of fifth scheme is the rate of return is amount 3330 and is return of percentage is
5.1%
The sixth scheme is long term equity dividend is rate of return is less 2.1%. And is amount is
1580 very less an investor is not like that in this scheme
1.7.4 Performance calculation of LIC mutual fund-Dir-Dividend
From the date of 1/March/2016 to 31August 2016.
Assume that I would invest Rs.50000 in LIC mutual funds on the date of 1st March 2016 up to
6 month and to calculated returns shown the below table. The first scheme is LIC Dir-
Dividend Amount, Investment from the date of 1st /March 2016 the amount of Rs. 50000 and
return Generated amount of Rs. 51100 with the return of 1100 and the percentage obtained by
1.0%, it will be positive return to Investors under scheme of LIC of mutual funds .
Scheme Name (LIC) Amount Value of the Investment Return Percentage of
Investment As on 31th August 2016) generated(In return
(1st March 2016) Rs) Obtained
1. 50000 50500 500 1.0%
LIC mutual fund-Dir-
Dividend
2. LIC Dilly Dir-Growth 50000 51250 1250 2.5%

2. Prudential Focused 50000 51250 1250 2.5%

blue-chip equity
4.Nifty index Fund-Dir- 50000 50950 950 1.9%
Growth

5.Technology fund 50000 56864 6864 8.58%

Growth

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6. LIC long terms 50000 52100 2100 4.2%
dividend

7.Infrastructure fund- 50000 51900 1900 3.8%

Dividend

The life insurance Corporation of India of mutual funds scheme under explanation. From the
above table we can see the performance of various funds by using. Standard of LIC under
scheme of fifth scheme is the rate of return is amount 56864 and is return of percentage is
8.58%
The sixth scheme is long term equity dividend is rate of return is less 1.9%. And is amount is
1550 very less an investor is not like that in this scheme
1.7.5 Performance calculation of Kotak corporate bond fund
From the date of 1/March/2016 to 31August 2016.
Assume that I would invest Rs.50000 in Kotak mutual funds on the date of 1st March 2016 up
to 6 month and to calculated returns shown the below table. The first scheme is Kotak Dir-
Dividend Amount, Investment from the date of 1st /March 2016 the amount of Rs. 50000 and
return Generated amount of Rs. 51100 with the return of 1100 and the percentage obtained by
1.0%, it will be positive return to Investors under scheme of Kotak of mutual funds.

Scheme Name (Kotak) Amount Value of the Investment Return Percentage of

Investment As on 31th August 2016) generated(In return
(1st March 2016) Rs) Obtained
1. Kotak select focus 50000 51100 1100 2.2%
fund Dir-Dividend

2. Kotak transfer Dir- 50000 51750 1750 3.5%

Growth

2. Focused blue-chip 50000 52750 2750 5.5%

equity
4.Nifty index Fund-Dir- 50000 51950 1950 3.9%
Growth

5.Technology fund 50000 51250 1250 2.5%

Growth

6. Kotak long terms 50000 50600 600 1.2%

dividend

7.Infrastructure fund- 50000 51250 1250 2.5%

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Dividend

Kotak corporate i under scheme are many more there fourth scheme is focused chip equity I
rate of return is 5.5% of percentage amount is 50000and the total amount is 55500 is best
scheme of Kotak mutual fund scheme. From the above table we can see the performance of
various funds by using. Standard of Kotak under scheme of fifth scheme is the rate of return is
amount 55000 and is return of percentage is 5.5%.The sixth scheme is long term equity
dividend is rate of return is less 1.9%. And is amount is 1550 very less an investor is not like
that in this scheme And Kotak long term dividend is less percent of 2.1% investor bot like that
in this scheme.
1.7.6 Reliance corporate bond fund on mutual fund
Assume that I would invest Rs.50000 in Reliance mutual funds on the date of 1st March 2016
up to 6 month and to calculated returns shown the below table. The first scheme is Reliance
Dir-Dividend Amount, Investment from the date of 1st /March 2016 the amount of Rs.
50000 and return Generated amount of Rs. 51100 with the return of 600 and the percentage
obtained by 1.2%, it will be positive return to Investors under scheme of Reliance mutual
funds.
Scheme Name Amount Value of the Investment Return Percentage of
(Reliance) Investment As on 31th August 2016) generated(In return
(1st March 2016) Rs) Obtained
1. Reliance select focus 50000 50600 600 1.2%
fund Dir-Dividend

2. Reliance transfer 50000 51750 1750 3.5%

Dir-Growth

2. Focused blue-chip 50000 52500 2500 4.5%

equity
4.Nifty index Fund-Dir- 50000 51950 1950 3.9%
Growth

5.Technology fund 50000 51250 1250 2.5%

Growth

6. Reliance long terms 50000 51600 1600 3.2%

dividend

7.Infrastructure fund- 50000 51250 1250 2.5%

Dividend

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 The initial investment is Rs. and the profit of Rs. 52500 (4.5%) the total returns of the amount
is Rs.51664, from the date 1/March/2016 to 31/August/2016. This total amount will be
calculated on the basis of fixed rates as monthly, quarterly, semi -annually and annual basis.
The rate of the Reliance bond fund is.
The sixth scheme is long term equity dividend is rate of return is less 1.9%. And is amount is
1550 very less an investor is not like that in this scheme
1.7.7 SBI mutual fund
Assume that I would invest Rs.50000 in Reliance mutual funds on the date of 1st March 2016
up to 6 month and to calculated returns shown the below table. The first scheme is SBI Dir-
Dividend Amount, Investment from the date of 1st /March 2016 the amount of Rs. 50000 and
return Generated amount of Rs. 51100 with the return of 600 and the percentage obtained by
1.2%, it will be positive return to Investors under scheme of SBI mutual funds.
Scheme Name ( SBI) Amount Value of the Investment Return Percentage of
Investment As on 31th August 2016) generated(In return
(1st March 2016) Rs) Obtained
1. SBI select focus fund 50000 51250 1250 2.2%
Dir-Dividend

2. SBI transfer Dir- 50000 51600 1600 3.2%

Growth

2. Focused blue-chip 50000 52650 2650 5.3%

equity
4.Nifty index Fund-Dir- 50000 51950 1950 3.9%
Growth

5.Technology fund 50000 51250 1250 2.5%

Growth

6. SBI long terms 50000 51900 1900 3.8%

dividend

7.Infrastructure fund- 50000 51250 1250 2.5%

Dividend

The initial investment is Rs.50000 and the profit of Rs. 2650 (5.3%) the total returns of the
amount is Rs.52650, from the date 1/March/2016 to 31/august/2016. This total amount will be

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calculated on the basis of fixed rates as monthly, quarterly, semi -annually and annual basis.
The rate of the Reliance bond fund is:
First week-0.25
First month-1.09%Third month-3.06%
Sixth month-7.04%
1.7.8 JPMorgan mutual fund:
Assume that I would invest Rs.50000 in JPMorgan mutual funds on the date of 1st March 2016
up to 6 month and to calculated returns shown the below table. The first scheme is JPMorgan
Dir-Dividend Amount, Investment from the date of 1st /March 2016 the amount of Rs.
50000 and return Generated amount of Rs. 51100 with the return of 600 and the percentage
obtained by 1.2%, it will be positive return to Investors under scheme of JPMorgan mutual
funds.
The initial investment is Rs.50000 and the profit of Rs. 1534 (7.67%) the total returns of the
amount is Rs.51534, from the date 31st march/2016 to 31st August/2016. This total amount will
be calculated on the basis of fixed rates as monthly, quarterly, semi -annually and annual basis.
The rate of the Reliance bond fund is:
First week-0.32%
First month-1.16%
Third month-4.15%
Sixth month-6.28%

The initial investment is Rs. and the profit of Rs. 52500 (4.5%) the total returns of the amount
is Rs.21664, from the date 1/March/2016 to 31/August/2016. This total amount will be
calculated on the basis of fixed rates as monthly, quarterly, semi annually.
The sixth scheme is long term equity dividend is rate of return is less 1.9%. And is amount is
1550 very less an investor is not like that in this scheme
1.7.9 IDBI mutual fund schemes
Assume that I would invest Rs.50000 in Reliance mutual funds on the date of 1st March 2016
up to 6 month and to calculated returns shown the below table. The first scheme is SBI Dir-

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 Dividend Amount, Investment from the date of 1st /March 2016 the amount of Rs. 50000 and
return Generated amount of Rs. 51100 with the return of 600 and the percentage obtained by
1.2%, it will be positive return to Investors under scheme of SBI mutual funds.
Scheme Name ( IDBI) Amount Value of the Investment Return Percentage of
Investment As on 31th August 2016) generated(In return
(1st March 2016) Rs) Obtained
1. IDBI select focus 50000 51250 1250 2.2%
fund Dir-Dividend

2. IDBI transfer Dir- 50000 5600 600 1.2%

Growth

2. Focused blue-chip 50000 51650 1650 3.3%

equity
4.Nifty index Fund-Dir- 50000 51950 1950 3.9%
Growth

5.Technology fund 50000 51250 1250 2.5%

Growth

6. IDBI long terms 50000 51400 1400 2.8%

dividend

7.Infrastructure fund- 50000 50750 750 1.5%

Dividend

The Nifty index Fund-Dir-Growth and the profit of Rs. 51950 (3.9%) the total returns of the amount
is Rs.51664, from the date 1/March/2016 to 31/August/2016. This total amount will be
calculated on the basis of fixed rates as monthly, quarterly, semi -annually and annual basis.
The rate of the IDBI mutual funds.
The initial investment is Rs.50000 and the profit of Rs. 2650 (5.3%) the total returns of the
amount is Rs.52650, from the date 1/March/2016 to 31/august/2016
From the above table we can see the performance of various funds by using. Standard of IDBI
under scheme of fifth scheme is the rate of return is amount 55000 and is return of percentage is
5.5%
The sixth scheme is long term equity dividend is rate of return is less 1.9%. And is amount is
1550 very less an investor is not like that in this scheme And IDBI long term dividend is less
percent of 2.1% investor bot like that in this scheme. Amount, Investment from the date of 1 st
/March 2016 the amount of Rs. 50000 and return Generated amount of Rs. 51100 with the

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return of 600 and the percentage obtained by 1.2%, it will be positive return to Investors under
scheme of Reliance mutual funds. The sixth scheme is long term equity dividend is rate of
return is less 1.5%. And is amount is 750 very less an investor is not like that in this scheme

1.7.10 PROFIT COMPARISONS

Analysis of profit comparisons:

From the above diagram Axis mutual fund gives the profit of 4% when the initial investment of
Rs.5000, Birla sun life gives the profit of 4.22% of the initial investment of Rs.50000, HDFC
mutual fund gives the profit of 2.51% the initial investment is same as Axis and Birla sun life
and LIC gives the profit of 8.58% as initial investment of Rs.50000

Interpretation:

The above chart shows the profit return and the LIC gives the return of 5.5% which is shows
the greater return comparing to the other rest of the company and HDFC have the lower returns.

1.8 THEORITICAL CONCEPTS

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The Indian common asset industry was begun in 1963 with the development of Unit Trust of India,
which was started by Government of India furthermore by Reserve Bank of India. Its history in
India is extensively ordered into four stages.

First Phase - 1964-1987

UTI was encircled in 1963 by Parliament Act. It was set up by the RBI and it was works
under the Regulatory and administrative control of the Reserve Bank of India. The
UTI was confined in 1978 from RBI and IDBI and expected control over the
managerial and definitive control.

Second Phase - 1987-1993

There was a new passage of Indian Public segment shared assets which was set up by open
division banks, Life Insurance Corporation and General Insurance Corporation. SBI Mutual
Fund was the first and fore-most non-UTI Mutual Fund built up in 1987. LIC made its shared
assets in 1989 and GIC was set up in1990.
Third Phase - 1993-2003
The passageway of new private division reserves in 1993 began another time in the Indian
shared asset industry, they given Indian financial specialists a wide assortment decision of
assets. In the year 1993 the Mutual Fund Regulations appeared under which every single shared
asset were to be enlisted and represented aside from UTI.
The common asset houses continued growing, with numerous outside shared asset
organizations setting up their assets in India furthermore the business has seen a few mergers
and acquisitions.

Fourth Phase - since February 2003

In the year 2003 there was an abrogation of the Unit Trust of India Act 1963 due to this UTI
was isolated into two elements. The Specified Undertaking of UTI, working under a manager
and under the standards encircled by Government of India and does not go under the span of the
Mutual Fund Regulations.

1.9 DISCUSSION:
1.9.1 How Mutual Fund benefits Investors:

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Common asset is developing as most loved venture since it has numerous focal points over
different types of contributing, especially for those financial specialists who have restricted
assets as far as capital and capacity to complete definite research and market observing. The
accompanying are the major critical focal points of shared assets to all financial specialists.
Pro's:
Portfolio Diversification:
Normally mutual funds invest in a well-diversified portfolio of securities. Every investor in a
fund is a part owner and has a right on all the funds assets. This makes him to hold a
diversified investment portfolio even with a lesser amount of investment.
Professional management:
Despite the fact that the speculator has a lot of capital accessible to him, he profits by the expert
administration ability acquired by the asset in the administration of the financial specialist's
portfolio. The venture administration abilities, alongside the required examination into
accessible
Reduction of transaction cost:
What is valid for danger is likewise valid for exchange cost. An immediate financial specialist
bears all the expense of contributing, for example, financier or care of securities. He has the
advantage while experiencing an asset, for example, economies of scale, the assets pay lesser
costs due to bigger volumes, an advantage went on to his financial specialists.
Liquidity :
Speculators regularly hold shares or bonds which they can't straightforwardly and rapidly offer.
In the open end reserve financial specialist can exchange the venture by offering units to the
asset, and in the nearby end store he can offer units in money markets, since shut finishes
reserves must be recorded on a stock trade. Regardless, the financial specialist in a shut end
store gets the deal continues toward the end of a period determined by the shared reserve or
stock trade.
1.10 REFLECTION:

Learning:
Working on the project at NJ INDIA INVEST PVT LTD, Bangalore has benefited us as
follows

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 Application of theory aspects:-
Amid the time of temporary job and in the wake of connecting with budgetary counselor also
some retail speculators, specialist increased fundamental learning in the field of purchaser
conduct and research. This is an extraordinary open door for the scientist to apply the learning
of the two semesters. Further came to learn new measurements in these fields while chipping
away at the task with our aide.
Experience of practical workings:-
There is more crevice between hypothetical world and functional life. In the wake of taking a
shot at venture, specialist has truly comprehended the distinction. Further, scientist have truly
honed his abilities to think for all intents and purposes and judge what can be the functional
issue confronted by different foundation of money, furthermore came to realize that how
different sorts of day by day works are directed. So analyst got such an extraordinary affair
which we never experienced before.
Corporate experience:-
During case study period, researcher got sample work exposure to co-operate work
environment. Moreover this has enhanced the confidence to handle situation in co-operative
work environment. Also came to know that how various decision are taken out and how
various activities are conducted for marketing views of point.
Improving our communication skills:-
Analyst met clients and spent around 5-10 minutes with them and it is an extraordinary affair to
talk and cooperate with them as a result of their insight sharing on the subject. While some will
give the required data. This procedure has truly allowed enhancing their oral relational abilities.

1.11 BIBLIOGRAPHY
AMFI Work Book

Monthly Magazines like

Performance Watch
Funds Watch of NJ

Websites:
www.mutualfundindia.com
WWW.NJFundz.com

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 http://www.NJgroup.in/index.php
www.amfiindia.com

1.12 APPENDICES
Are you a financial Advisor?
a) Yes b) No

How long have you been an adviser?

a) 12 year b) 3- 4 year c)5-7 year d)more than 7 year

Have you hered about Mutual Funds?

a) Yes b)No

Are you interested in Mutual Funds business?

a) Yes b) No

How do you rate Mutual Fund over Other Investment Plan?

a) Excellent b) Good c) Average d) Poor

What is the most important factor which convinces you to choose the particular plan?
a) Sale support b) Less Risk c) schemes d) Others

Do you recommend Mutual Fund to your customer

a) Yes b) No

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 Are you aware of NJ India Invest Pvt. Ltd.?
a) Yes b) No

The above questions are used to know the current situation of mutual funds awareness among
financial advisors. And also to get their preferences towards N Invest.
I got less result of advisors who know about mutual funds than who doesnt know mutual
funds.

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