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A Project report on
Awareness of Mutual Funds Among
LIFE INSURANCE Agents

A report submitted to
Asian Business School, Noida
as a partial fulfillment of Full time
Submitted by
NITISH MEHRA
UNDER THE GUIDANCE OF
Mr. CHAHAT MIYAN KHAN
BRANCH MANAGER
NJ INDIA INVEST


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ACKNOWLEDGEMENT
It gives me immense pleasure to acknowledge the names, which had helped me in successful completion
of this project. First of all I would take the opportunity to thank the Almighty God for granting me all the
strength I needed.
I am also thankful to Mr. CHAHAT MIYAN KHAN (Branch Manager), Mr. Chandra bhan (Unit
Manager) NJ INDIA INVEST Pvt. Ltd for their valuable suggestions, which benefited me a lot while
developing the project on AWARENESS OF MUTUAL FUND AMONG LIFE INSURANCE
AGENTS.
This research would not have been completed without friendly efforts of the all the concerned authorities.
Also this project enables me to have the know-how of the effectiveness & working of the team spirit. Its
web like structure helps me to have added potential in myself to adjust easily to the tense & result
oriented environment of the organization.

NITISH MEHRA
M.B.A (2012-2014)
ASIAN BUSINESS SCHOOL













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STUDENT DECLARATION
I, NITISH MEHRA student of M.B.A 2
ND
Semester ASIAN BUSINESS SCHOOL, NOIDA, hereby
declares that the project report titled A STUDY ON AWARENESS OF MUTUAL FUNDS AMONG
LIFE INSURANCE AGENTS
is completed and submitted under the valuable guidance of my Company Guide Mr. CHAHAT MIYAN
KHAN , is my own work, to the best of my knowledge and belief. It contains no material previously
published or written by another person nor material which to a substantial extent has been accepted for
the award of any other degree or diploma of any other institute, except where due acknowledge has been
made in the text.

Place : New Delhi Nitish Mehra
Date : M.B.A(2012-2014)




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TABLE OF CONTENTS
1. Executive Summary
2. Mutual Fund Industry analysis
3. About the company
4. Mutual fund
5. History of Mutual fund
6. Market potential for Mutual Fund
7. Research design and methods
8. Data analysis and presentation
9. SWOT analysis of MF
10. Conclusion and recommendation
11. Bibliography
12. Questionnaire











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EXECUTIVE SUMMARY
In few years Mutual Fund has emerged as a tool for ensuring ones financial well being. Mutual
Funds have not only contributed to the India growth story but have also helped families tap into the
success of Indian Industry. As information and awareness is not rising so much of mutual fund so
people more are not able to get the benefits of investing in mutual funds. The main reason the
number of retail mutual fund investors remains small is that nine in ten people with incomes in
India do not know that mutual funds exist. But one's people are aware of mutual fund investment
opportunities, the number who decide to invest in mutual funds increases to as many as one in five
people. The trick for converting a person with no knowledge of mutual funds to a new Mutual Fund
customer is to understand which of the potential investors are more likely to buy mutual funds and
to use the right arguments in the sales process that customers will accept as important and relevant
to their decision. And for this I studied that how much the life insurance agents know about the
mutual fund so that they can convert public into mutual fund investors.
This Project gave me a great learning experience and at the same time it gave me enough scope to
implement my analytical ability. The analysis and advice presented in this Project Report is based
on market research that how much life insurance agents are aware of Mutual Funds. This report
will help to know about the knowledge and awareness of Mutual Fund in investors & various
agents.
This project as a whole is divided into two parts. The first part gives an insight about Mutual Fund
and its various aspects, the Company Profile, Objectives of the study, Research Methodology. One
can have a brief knowledge about Mutual Fund and its basics through the Project
. The second part of the Project consists of data and its analysis collected through calling & field
work done on 350 agents & 50 agents respectively. For the collection of Primary data I made a
questionnaire and surveyed of 50 agents in various LIC Offices & for secondary data I called 350
agents to know the awareness of mutual funds. This Project covers the topic AWARENESS OF
MUTUAL FUNDS AMONG LIFE INSURANCE AGENTS. The data collected has been well
organized and presented.

OBJECTIVE OF STUDY
The objective of the research is to study the awareness of mutual funds among life insurance
agents
To get knowledge about Mutual Funds
To know the mutual funds performance level in the present market






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MUTUAL FUND INDUSTRY ANALYSIS
Investment is a commitment of funds in real assets or financial assets. Investment involves risk and
gain.In the present dynamic global environment, exploring investment avenues are of great relevance. The
success of an investment activity depends on the knowledge and ability of investors to invest, the right
amount, in the right type of investment, at the right time .
The knowledge of financial investment and the art of its management are the basic requirements for a
successful investor. The pre-requisite for a successful investment also lies in its liquidity, apart from risk
and return on investment . Liquidity through easy marketability of investments demands the existence of a
well-organised Government regulated financial system. Financial services sector is the nucleus of the
growth model designed for the economic development of a country. Over the years, the financial services
in India have undergone revolutionary changes and had become more sophisticated, in response to the
varied needs of the economy.
The process of financial sector reforms , economic liberalization and globalization of Indian Capital
Market had generated and augmented the interest of the investors in equity. But, due to inadequate
knowledge of the capital market and lack of professional expertise, the common investors are still hesitant
to invest their hard earned money in the corporate securities. The advent of mutual funds has helped in
garnering the investible funds of this category of investors in a significant way. As professional experts
manage mutual funds, investment in them relieves investors from the emotional stress involved in buying
and selling of securities.
The Indian capital market having a long history spanning over a century had passed through the most
radical phase. The Indian Capital Market witnessed unprecedented developments and innovations during
the eighties and nineties. One such development was the increased role the mutual fund industry played
in financial intermediation. Mutual fund, as an institutional device, pools investors funds for investment
in the capital market under the direction of an investment manager. Mutual funds bridge the gap between
the supply and demand for funds in the financial market.
In India, the need for the establishment of mutual funds was felt in 1931 and the concept of mutual fund
was coined in 1964, by the far-sighted vision of Sri T.T.Krishnamachari, the then finance minister.
Taking into consideration the recommendations of the Central Banking Enquiry Committee and Shroff
Committee, the Central Government established Unit Trust of India in 1964 through an Act of Parliament,
to operate as a financial institution as well as an investment trust by way of launching UTI Unit Scheme
64.
In India, mutual funds as vehicles of mobilization and channels of funds towards the securities market,
had shown improvement in total net assets from Rs.25 crores, by the end of 1964-65 to Rs.47,734 crores
as on March 31, 1993, and touched Rs.2,31,862 crores as on March 31, 2006 The industry is holding
total net assets worth Rs.3,26,338 crores as on March 31, 2007 through 687 schemes. Mutual funds are
set to bag a huge chunk of nearly Rs.3,05,000 crores of cash reserves from Governments new pension
fund and public sector companies. The mutual fund industry in India had grown several folds in terms of
number of schemes, funds raised and investor base over the years.
India has become the worlds fourth largest economy besides U.S.A., China, and Japan. Although the
Indian capital market witnessed some significant changes during the eighties, both the primary and the
secondary segments continued to suffer from some serious deficiencies. Many unhealthy practices
prevailed in the primary market to attract retail investors. High pricing of new issues, difficulties in
analyzing the prospects of a company, under pricing of shares in the market after listing have discouraged
and aroused hesitation among many investors to enter into the stock market. The secondary market had
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become highly volatile and technical for small investors. The domestic mutual fund industry has grown
by 50 percent particularly through Systematic Investment Plan (SIP) from retail participants. But, there
is still a long way to go as only five percent of the households are investing in mutual fund schemes. It is
estimated that, the Gross Domestic Savings for 2007-08 to 2011-12 will range from 33.4 percent to 34.7
percent, under the growth scenarios of seven to nine percent respectively, against 27.1 percent in 2004-05.
Household sectors financial savings for 2007-08 to 2011-12 is expected to be in the range of 24.1 percent
to 24.4 percent, with household financial and physical savings projected in the range of 11.3 percent to
11.4 percent and 12.9 percent to 13 percent respectively.
The household savings rate is increasing and is expected to accelerate with the reinforcement of being
demographic dynamics, financial sector liberalization and increasing human development index. As the
household sectors share in financial assets is expected to go much higher in the countrys savings, it is of
utmost importance to show a right path to individual investors. With an emphasis on increase in domestic
savings and improvement in deployment of investible funds into the market, the need and scope for
mutual fund operations have increased and is expected to increase tremendously in future. Mutual funds
seek to serve those individuals, who have the inclination to invest but lack the background, expertise and
sufficient resources to diversify their investment among various sectors.
Mutual fund entered the arena of this service sector in an admirable manner. The IMFI is one among the
top 15 nations in terms of assets under management, which has crossed USD 100 billion. As a globally
significant player the IMFI is attracting a bigger chunk of household investments and is expected to
witness five to six times growth in the next seven to eight years. It is expected that the industrys AUM
may grow to USD 500-600 billion by 2015 as more global players are planning and ready to set up asset
management businesses in India
Among the mutual funds, it is expected that debt oriented schemes will continue to dominate the mutual
fund industry satisfying the needs of yield, security and liquidity fairly well besides being attractive from
the tax point of view. While equity oriented schemes will gain more significance in future, their
popularity will depend on the conditions of the stock market and the kind of tax relief accorded to them.
Hence, it is of utmost importance to study the performance of growth schemes of mutual fund industry,
which is a near substitute for direct investment in shares.
It was not a particularly easy year for the mutual fund industry. Regulatory changes at a frequency that
was hard to keep pace with, fund manager churns, big ticket takeover and the constant uncertainty on the
interest rate front that kept debt managers guessing, all caused plenty of anxious moments for the investor
community as well. Yet, focus on performance helped funds garner market-beating returns, thanks to the
bounce back in the equity market and the price rally in some debt instruments in 2012.
With an average return of 28 per cent in the equity category and a good 9.6 per cent in debt, year to date
in 2012 (up to December 25), mutual funds delivered well. The Sensex returned 24.5 per cent over this
period while the CRISIL Composite Bond index rallied 9 per cent. While the equity performance was a
complete turnaround from 2011, when funds fell an average 23 per cent, the debt category saw a marginal
improvement over last year (average return of 8.9 per cent in 2011), thanks to a stronger rally in gilt this
year.




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ABOUT THE COMPANY
NJ India Invest Pvt. Ltd. is one of the leading advisors and distributors of financial products and services
in India. Established in year 1994, NJ has over a decade of rich exposure in financial investments space
and portfolio advisory services. From a humble beginning, NJ, over the years has evolved out to be a
professionally managed, quality conscious and customer focussed financial / investment advisory &
distribution firm.

They have headquarter in Surat, India, and have more than INR 10,000 Crores plus of mutual fund assets
under advice, with a wide presence at over 104 locations in 21 states in India. The numbers are reflections
of the trust, commitment and value that NJ shares with 11 Lac plus customer base with over 14000+
Advisors.
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.
NJ, believes 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
Technology has traditionally been NJ's key strength. Our offering on the technological front is
unmatched, vibrant, and comprehensive in nature. Our focus & commitment on technology can be gauged
from the fact that we have set-up distinct entity with a very strong, talented work-force for the sole
purpose of providing the best to NJ in terms of technology and support. Finlogic Technologies (India)
Pvt. Ltd. does all the development & support work in-house on a continuous basis. It has successfully
developed & implemented a powerful support system for the mutual fund distribution business at NJ with
a provision for integrating the same with other investment products as well as the financial accounting
system. Today Finlogic Technologies has more than 100 employees for its IT development
Vision:
Creating Wealth Transforming Lives
Total Customer Satisfaction
Commitment to Excellence
Determination to Succeed with strict adherence to compliance
Successful Wealth Creation of our Customers
Mission:
We work towards building trusted relationship with our stakeholders, for inclusive growth through
constant process of innovation, time bound implementation & execution of ideas and technological
developments. We stretch our means and go overboard to make sure that our clients' aspirations, dreams
and expectations are met with, through high service standards.

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Our Values
While we constantly look for new ideas and changes that cause positive difference to our clients, we
remain true to the values upon which NJ India Invest was found.

People & Culture:
For any service oriented organisation like NJ, its employees are perhaps the best asset. People at NJ serve
clients with vibrant energy and enthusiasm. 'Serving with Smile' is the motto adopted by people at NJ.
People here are well inclined towards their roles & responsibilities and are given complete freedom to do
justice with their roles. We believe in continuous enhancement and growth of our human capital through
on going process of training & development. At NJ, we encourage innovative ideas and suggestions from
employees and value their contributions. Team NJ works towards common goal of 'Client Esteem' and in
process of deriving this goal people at NJ keep learning, evolving and developing every day.


Promoters
Mr. Neeraj Choksi & Mr. Jignesh Desai (R) are two first generation entrepreneurs who began the
journey of 'NJ' in 1994. The promoters of the NJ Group were friends since their college years and the
bond between Mr. Neeraj & Mr. Jignesh has been instrumental in the success of NJ. Discussing upon
important things before taking any decision, is a habit that they have followed ever since they shared their
hostel room in Vidhyanagar, where Mr. Neeraj was studying his management courses and Mr. Jignesh
was into engineering. They both have a complementary style of functioning that augurs perfectly well for
the business.
Driven by their passion for financial well-being of customers & the mission for transforming lives, the
promoters have successfully put NJ on the forefront of innovation & growth. With a humble beginning
from home, the promoters have successfully shaped the group's forays into many diversified businesses.


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Both believe that 'Trust' has played a very important role in NJ's journey, and in every step that they have
taken. The words of the promoters aptly describes this journey of NJ 'Built on Trust'.

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 organisation. It
has strong visions for NJ as a globally respected company providing comprehensive services in financial
sector.
The Customer First philosophy is 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 organisation put in great focus on the processes & systems under diverse
functions of business. The management also focuses on utilizing technology as the key enabler for all the
activities and to leverage technology for enhancing overall customer experience.
High-level of expertise:
Being a growing organisation, we strive to constantly evolve by providing the highest level of expertise to
our client, continuously,
Integrity & Transparency:
We believe in doing business with a high standard of honesty & integrity. Creating long term 'trustworthy'
relationships with our clients is at the core of our business model. We strive to maintain the highest level
of transparency and are open to discussions when serving our advisors and investors.
Performance:
Our drive for performance is distinguished by consistent and meaningful measurement. At NJ, we are
passionate about our customer's wealth creation. The entire NJ team exudes confidence and spreads
positive vibes around. Team NJ is well inclined towards its roles & responsibilities and is eager to learn to
serve the customer better. We believe in continuous enhancement and growth of our human capital and
people at NJ start each day afresh with an eagerness to learn and a passion to win.

Strong relationships
Strong relationships grounded in trust and mutual respect over the long-term allow us to successfully
serve clients through the various phases of their lives.

Comprehensive, accurate communications using leading-edge technologies
We employ new technologies to set industry standards in reporting and client communications.



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Professional ethics
Our top priority is meeting the needs of our clients, and we unequivocally take full responsibility for the
work we do. At NJ, we follow a strong process oriented approach in everything we do. We are firm
believers of Follow the process, Results will Come mantra. We have detailed processes related to sales,
administration and client servicing, which help us evaluate our performance better and improve upon the
shortcomings identified in the system.

Striving Excellence in Servicing:
There is no substitute to quality service and advice. We accept this fact at NJ through our commitment to
quality client servicing. We work on the latest technologies, solutions and products for our clients to
ensure they stay ahead of the competetion and make their business run in quick, efficient and the best
way.
Philosophy
At NJ, our Service and Investing philosophy inspire and shape the thoughts, beliefs, attitude, actions and
decisions of our employees. Our philosophy is the spirit which drives our body called NJ.
Service Philosophy:
Our primary measure of success is customer satisfaction . We are committed to provide our customers
with continuous, long-term improvements and value-additions, to meet the needs in an exceptional way.
In our efforts to consistently deliver the best service possible to our customers, all employees of NJ make
every effort to:
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 and exceed our customer's 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:
We aim to provide need-based solutions for long-term wealth creation We aim to provide all the
customers of NJ, directly or indirectly, with true, unbiased, need-based solutions and advice that best
meet their stated & un-stated needs. In our efforts to provide quality financial & investment advice, we
believe that .
Clients want need-based solutions, which fits them.
Long-term wealth creation is simple and straight.

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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.


At NJ, our aim is to earn the trust and respect of the employees, customers, partners, regulators, industry
members and the community at large, by following our service and investing philosophy with
commitment.


Corporate Governance
NJ realises the importance of corporate governance and seeks to implement the best practices for the
same. We strongly believe that we have an obligation or duty as corporate entities to all our stakeholders;
from employees, customers and vendors to business partners, authorities, and society at large. We aim to
strike the right balance between minimising business risks while attempting to maximise business growth.
Corporate Governance at NJ is based on the following main principles:
Timely and strict compliance to all established rules, regulations and guidelines
Building sound system of risk management and internal control.
Timely and balanced disclosure and communication of all material information to all
stakeholders.
Transparency and accountability in all practices
Fair and equitable treatment of all its stakeholders including employees, associates, customers &
community


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Consumer Grievances:
The existing customers may approach NJ Customer Care Help Desk for any queries / clarifications or
issues that they may face in NJ. Also you may email us for any queries or grievances.

Achievements
Some of the awards & recognitions that we have received in the past

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

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 2004:
For Outstanding Performance by Deputy CEO, Prudential Singapore at Malaysia

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

Year 2006:
Award Vietnam

Product basket
Investment Products: Domestic mutual funds (all AMCs), Fixed Deposits of companies, PMS products
(Third party & NJ), Government/ RBI/ Infrastructure bonds
Residential & commercial properties
Partner Services
Dedicated Relationship Manager
Marketing & Sales support
Research support
Training & Education support
Dedicated Customer Care / Query management support

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Technological support, including online business / 'Partners Desk' with CRM, Financial Planning
& Employee Management modules

Customer Services:

Online family "Wealth / Client Desk" enabling single portfolio view of 'entire' wealth portfolio
Trading & Demat Account with online transacting & call-&-trade service in mutual funds

NJ Fundz Network
NJ Fundz Network has been playing a pioneering role in India in providing independent advisors /
advisory firms with integrated, comprehensive and practical business solutions for ensuring continuous
growth & continuity of business. It provides the financial advisors and the institutions that serve them
with insights, strategies and tools to help them significantly grow their businesses.
How do they do it?
Thats because they understand how financial & wealth management businesses work and what is needed
to manage, monitor and grow the practice.

With the 360 Advisory platform, NJ has managed to successfully transform the business of many
advisory / distribution houses, bringing them on equal footing or even better than the toughest
competitors in the industry in the concerned domain. With a vast experience & strong delivery
mechanism, they at NJ Fundz Network, help & ensure transformation and the exploitation of the
opportunities available.


First in the Indian Mutual Fund Industry to offer a Complete Business Platform to Advisors
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Managing wealth is not easy, especially with the ever growing needs and products. In this fast paced
world, there is a need for simplicity and consolidation. The need is to stay ahead, stay informed and stay
in control.

NJ Client Desk offers a comprehensive, flexible account which consolidates all portfolio information of a
client in a single window in a simple lucid manner. It keeps client informed of their finances and puts
them in control to take smart investment decisions.

Comprehensive Financial Planning
We all have many responsibilities and goals in our lives. We have dreams an aspirations for a better
future. But quite often we are not sure as to how we will fulfill these goals and aspirations. Life
changes over time. We may never be sure what today holds for us tomorrow. What if something goes
wrong? How do we make sure that we get what we wish?
A comprehensive Financial Plan is what you need. At NJ Wealth Advisors we offer you with
Comprehensive Financial Planning solutions which would involve



A detailed study of your goals.
Preparation of a comprehensive Financial Plan.
Monitoring of the Financial Plan on an on-going basis.


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MUTUAL FUND
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 invested by the fund manager in different
types of securities depending upon the objective of the scheme.







These could range from shares to debentures to money market instruments. The income earned through
these investments and the capital appreciation realized by the scheme are shared by its unit holders in
proportion to the number of units owned by them (pro rata).
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 portfolio at a relatively low cost. Anybody with an
investible surplus of as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund
scheme has a defined investment objective and strategy.
Mutual fund is the ideal investment vehicle for todays complex and modern financial scenario. Markets
for equity shares, bonds and other fixed income instruments, real estate, derivatives and other assets have
become mature and information driven. Price changes in these assets are driven by global events
occurring in faraway places.
A typical individual is unlikely to have the knowledge, skills, inclination and time to keep track of events,
understand their implications and act speedily. An individual also finds it difficult to keep track of
ownership of his assets, investments, brokerage dues and bank transactions etc. Draft offer document is to
be prepared at the time of launching the fund. Typically, it pre specifies the investment objectives of the
fund, the risk associated, the costs involved in the process and the broad rules for entry into and exit from
the fund and other areas of operation. In India, as in most countries, these sponsors need approval from a
regulator, SEBI (Securities exchange Board of India) in our case.



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SEBI looks at track records of the sponsor and its financial strength in granting approval to the fund
for commencing operations.
A sponsor then hires an asset management company to invest the funds according to the investment
objective. It also hires another entity to be the custodian of the assets of the fund and perhaps a third one
to handle registry work for the unit holders (subscribers) of the fund.
In the Indian context, the sponsors promote the Asset Management Company
also, in which it holds a majority stake. In many cases a sponsor can hold a 100% stake in the Asset
Management Company (AMC). E.g. Birla Global Finance is the sponsor of the Birla Sun Life Asset
Management Company Ltd., which has floated different mutual funds schemes and also acts as an asset
manager for the funds collected under the schemes.




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ORGANIZATION OF A MUTUAL FUND
A Mutual Fund is set up in the form of trust, which has sponsor, trustees,
asset management company (AMC), and custodian. The trust is established by
sponsor or more than one sponsor who is like a promoter of company. The trustee of mutual fund holds
its property for the benefit of unit holders. Asset Management Company (AMC) approved by SEBI
manages the funds by making investments in various types of securities. Custodian, who registered with
SEBI, holds the securities of the fund in its custody. The trustees are vested with the general power of
superintendence and direction over AMC. They monitor the performance and compliance of SEBI
regulations by mutual fund.
SEBI regulations required that at least two thirds of the directors of trustee
company or board of trustees must be independent i.e. they should not be
associated with sponsors. Also, 50% of the directors of the AMC must be
independent. All mutual funds are required to be registered with SEBI before they launch their schemes.
MUTUAL FUND STRUCTURE
The structure of mutual funds in India is governed by the SEBI Regulations, 1996. These
regulations make it mandatory for mutual funds to have a 3-tier structure of Sponsors- Trustee-AMC
(Asset Management Company). The Sponsor is the promoter of mutual fund, and appoints
the Trustee. The Trustees are responsible to the investors in the mutual funds, and appoint the AMC for
managing the investment portfolio. The AMC is the business face of the mutual funds, as it manages all
the affairs of mutual funds. The mutual funds and AMC have to be registered by the SEBI.
Sponsor
A sponsor is a body corporate who establishes a mutual fund. It may be one person acting alone or
together with another body corporate. Sponsor must contribute at least 40% of the net worth of the
Investment Managed and meet the eligibility criteria prescribed under the Securities and Exchange Board
of India (Mutual Funds) Regulations, 1996.The Sponsor is not responsible or liable for any loss or
shortfall resulting from the operation of the Schemes beyond the initial contribution made by it towards
setting up of the Mutual Fund
Board of Trustee:
Mutual fund requires to have an independent board of Trustee, where two third of the trustees should be
independent person who are not associated with the sponsor in any manner. The board of trustees of the
trustee company holds the property of the mutual fund in trust for the benefit of the unit holders. The
board of trustees is responsible for protecting the unit holders interest.
Asset Management Company (AMC)
The role of asset Management Company is highly significant in the mutual fund operation. The AMC is
appointed by the Trustee. They are the fund managers i.e. they invest the investors money in various
securities ( equity, debt and money market instruments) after proper research of market conditions and
the financial performance of individual companies and specific securities in the efforts to
meet or beat average market return and analysis. The AMC is required to be approved by the
Securities and Exchange Board of India (SEBI) to act as an asset management company of the Mutual
Fund. At least 50% of the directors of the AMC are independent directors who are not associated with the

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Sponsor in any manner. The AMC must have a net worth of at least 10 crores at all times. They also look
after the administrative functions of a mutual fund for which they charge management fee.
Registrar and Transfer Agent
The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual
Fund. The Registrar processes the application form, redemption requests and dispatches account
statements to the unit holders.
Custodian
Mutual fund is required by law to protect their portfolio securities by splacing them with a custodian.
Nearly all mutual funds use qualified bank custodians. Only a registered custodian under the SEBI
regulation can act as a custodian to a mutual fund.A custodian handles the investment back office of a
mutual fund.
Fee structure:-
Custodian charges range between 0.15% to 0.20% on the net value of the customers holding for
custodian services space is one important factor which has fixed cost element.
RESPONSIBILITY OF CUSTODIANS: -
Receipt and delivery of securities
Holding of securities.
Collecting income
Holding and processing cost
Corporate actions etc
RATE OF RETURN ON MUTUAL FUNDS:-
An investor in mutual fund earns return from two sources:
Income from dividend paid by the mutual fund.
Capital gains arising out of selling the units at a price higher than the acquisition price
Formation and regulations:
Mutual funds are to be established in the form of trusts under the Indian trusts act and are to be
operated by separate asset management companies (AMC s)
AMCs shall have a minimum Net worth of Rs. 5 crores;
AMCs and Trustees of Mutual Funds are to be two separate legal entities and that an AMC or its
affiliate cannot act as a manager in any other fund;
Mutual funds dealing exclusively with money market instruments are to be regulated by the
Reserve Bank Of India.
Mutual fund dealing primarily in the capital market and also partly money market
instruments are to be regulated by the Securities Exchange Board Of India (SEBI)
All schemes floated by Mutual funds are to be registered with SEBI



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CHARACTERISTICS:
Professional management
Diversification
Convenient Administration
Return potential
Low cost
Liquidity
Transparency
Flexibility
Choice in scheme selection
Well regulated
Tax benefits





















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HISTORY OF MUTUAL FUND
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. Though the growth was slow, but it accelerated
from the year 1987 when non-UTI players entered the Industry .In the past decade, Indian mutual fund
industry had seen a dramatic improvement, both qualities wise as well as quantity wise. Before, the
monopoly of the market had seen an ending phase; the Assets Under Management (AUM) was Rs67
billion. The private sector entry to the fund family raised the Aum to Rs. 470 billion in March 1993 and
till April 2004; it reached the height if Rs. 1540 billion.
The Mutual Fund Industry is obviously growing at a tremendous space with the mutual fund industry can
be broadly put into four phases according to the development of the sector. Each phase is briefly
described as under.
The history of mutual funds in India can be broadly divided into four distinct phases :
First Phase: 1964-1987
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 cores of assets under
management.
Second Phase: 1987-1993 (Entry of Public Sector Funds)
In 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 June1987followed by Canara bank Mutual Fund
(Dec87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov89), Bank of India
(Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while 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 cores.
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 industry now functions under the SEBI
(Mutual Fund) Regulations1996.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.




22

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 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.
The graph indicates the growth of assets over the years.

ADVANTAGES OF MUTUAL FUND
Portfolio Diversification
Mutual Funds invest in a well-diversified portfolio of securities which enables investor to hold a
diversified investment portfolio (whether the amount of investment is big or small).
Professional Management
Fund manager undergoes through various research works and has better investment
management skills which ensure higher returns to the investor than what he can manage on his
own.
Less Risk
Investors acquire a diversified portfolio of securities even with a small investment in a Mutual Fund.
The risk in a diversified portfolio is lesser than investing in merely 2 or 3 securities.
Low Transaction Costs
Due to the economies of scale (benefits of larger volumes), mutual funds pay lesser transaction
costs. These benefits are passed on to the investors.
Liquidity
An investor may not be able to sell some of the shares held by him very easily and quickly, whereas
units of a mutual fund are far more liquid.
Choice of Schemes
Mutual fund provide investors with various schemes with different investment objectives. Investors
have the option of investing in a scheme having a correlation between its investment
objectives and their own financial goals. These schemes further have different plans/options
Transparency
Funds provide investors with updated information pertaining to the markets and the schemes.
All material facts are disclosed to investors as required by the regulator.
Flexibility
Investor also benefit from the convenience and flexibility offered by Mutual Funds. Investors
can switch their holdings from a debt scheme to an equity scheme and vice-versa. Option of
systematic (at regular intervals) investment and withdrawal is also offered to the investors in most
open-end scheme
Safety
Mutual Fund industry is part of a well-regulated investment environment where the interests of
the investors are protected by the regulator. All funds are registered with SEBI and complete
transparency is forced.







23

DISADVANTAGES OF MUTUAL FUND

Costs Control Not in the Hands of an Investor
Investor has to pay investment management fees and fund distribution costs as a percentage
of the value of his investments (as long as he holds the units), irrespective of the performance of
the fund.
No Customized Portfolios
The portfolio of securities in which a fund invests is a decision taken by the fund manager. Investors
have no right to interfere in the decision making process of a fund manager, which some investors
find as a constraint in achieving their financial objectives.
Difficulty in Selecting a Suitable Fund Scheme
Many investors find it difficult to select one option from the plethora of funds /
schemes / plans available. For this, they may have to take advice from financial planners in order to
invest in the right fund to achieve their objectives.

TYPES OF MUTUAL FUNDS
Schemes according to maturity period :
A mutual fund scheme can be classified into open-ended scheme or close ended scheme
depending on its maturity period.

Open ended fund/scheme:
An open-ended fund or scheme is one that is available for subscription and repurchase on a
continuous basis. These schemes not have a fixed maturity period. Investors can conveniently buy
and sell units at Net Asset Value (NAV) related prices which are on a daily basis. The key feature
of open-end schemes is liquidity.

Close ended Fund/scheme:
A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open
for subscription only during a specified period at the time of launch of the scheme. Investors can
invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the
units of the scheme on the stock exchanges where the units are listed. In order to provide an exit
route to the investors some close ended funds give an option of selling back the units to the
mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that
at least one of the two exit routes is provided to the investors i.e. either repurchase facility or
through listing on stock exchanges. These mutual funds schemes disclose NAV generally a
weekly basis.

24




Schemes according to investment objective :
A scheme can also be classified as growth scheme, income scheme, or balance scheme
considering its investment objective. Such schemes may be open-ended or close-ended scheme as
described earlier. Such schemes may be classified mainly as follows:

Equity funds:These funds invest in equities and equity related instruments. With fluctuating share
prices, such funds show volatile performance, even losses. However, short term fluctuations in
the market, generally smoothens out in the long term, thereby offering higher returns at relatively lower
volatility. At the same time, such funds can yield great capital appreciation as, historically, equities have
outperformed all asset classes in the long term. Hence, investment in equity funds should be considered
for a period of at least 3-5 years. It can be further classified as:

Growth Fund: Aim to provide capital appreciations over the medium to long term. These
schemes normally invest a majority of their funds in equities and are willing to bear short term
decline in value for possible future appreciation. These schemes are not for investors seeking
regular income or needing their money back in the short term.



25

Diversified Equity Fund: Diversified equity funds are the most popular among
investors. They invest in many stocks across many sectors, and because they have the freedom to
chop and churn their portfolios as they like, diversified equity funds are a good proxy to the stock
market. If a general exposure to equities is what you want, they are a good option. They can
invest in all listed stocks, and even in unlisted stocks. They can invest in which ever sector they
like, in what ever ratio they like.

Equity Linked Savings Schemes (ELSS): Equity linked savings schemes (ELSS) are
diversified equity funds that additionally offer income tax benefits to individuals. ELSS is one of
the many section 80c instruments, along with the more popular debt options like the PPF, NSC
and infrastructure bonds. In this Section 80c grouping. ELSS is unique. Being the only instrument
to offer a total equity exposure.

Index Fund: An index fund is a diversified equity fund; with a difference- a fund manager has
absolutely no say in stock selection. At all times, the portfolio of an index fund mirrors an index,
both in its choice of stocks and their percentage holding. As of March 2004, equity index funds
tracked either the Sensex or the Nifty. So, an index fund that mirrors the Sensex will invest only
in the 30 Sensex stocks, which too in the same proportion as their weight age in the index.

Sector Fund: Sector funds invest in stocks from only one sector, or a handful of sectors. The
objective is to capitalize on the story in the sectors, and offer investors a window to profit from
such opportunities. Its a very narrow focus, because of which sector funds are considered the
riskiest among all equity funds.

Mid Cap Fund: These are diversified funds that target companies on the fast growth
trajectory. In the long run, share prices are driven by growth in a companys turnover and profits.
Market players refer to them as mid-sized companies and mid-cap stocks with size in this
context being benchmarked to a companys market value. So, while a typical large cap stock
would have a market capitalization of over Rs 1,000 crores, a mid-cap stock would have a
market value of Rs 250-2,000 crores.

DEBT FUNDS:-These Funds invest a major portion of their corpus in debt papers.
Government authorities, private companies, banks and financial institutions are some of the major
issuers of debt papers. By investing in debt instruments, these funds ensure low risk and provide stable
income to the investors.

Debt funds are further classified as:

Gilt Funds: Invest their corpus in securities issued by Government, popularly known
as GOI debt papers. These Funds carry zero Default risk but are associated with Interest Rate
risk. These schemes are safer as they invest in papers backed by Government.

Income Funds: Income funds aim to maximize debt returns for the medium to longer term.
Invest a major portion into various debt instruments such as bonds, corporate
debentures and Government securities.




26

MIPs: Invests around 80% of their total corpus in debt instruments while the rest of the portion is
invested in equities. It gets benefit of both equity and debt market. These scheme ranks slightly
high on the risk-return matrix when compared with other debt schemes.

Short Term Plans (STPs): Meant for investors with an investment horizon of 3-6 months. These
funds primarily invest in short term papers like Certificate of Deposits (CDs) and
Commercial Papers (CPs). Some portion of the corpus is also invested in corporate
debentures.

Liquid Funds: Also known as Money Market Schemes, These funds are meant to provide easy
liquidity and preservation of capital. These schemes invest in shortterm instruments like
Treasury Bills, inter-bank call money market etc. These funds are meant for short-
term cash management of corporate houses and are meant for an investment horizon
of 1day to 3 months. These schemes rank low on risk-return matrix and are considered to be the
safest amongst all categories of mutual funds.

Floating Rate Funds: These income funds are more insulated from interest rate than their
conventional peers. In other words, interest rate changes, which cause the NAV of a conventional
debt fund to go up or down, have little, or no, impact on NAVs of floating rate funds.

HYBRID FUNDS:-
BALANCED FUNDS:-These funds, as the name suggests, are a mix of both equity
and debt funds. The aim of balanced funds is to provide both growth and regular income as
such schemes invest both in equities and fixed income securities in the proportion
indicated in their offer documents. These are appropriate for investors looking for
moderate growth. They generally invest 40-60% in equity and debt instruments. These
funds are also affected because of fluctuations in shares prices in the stock markets. However,
NAVs of such funds are likely to be less volatile compared to pure equity funds. Following are
balanced funds classes:-
a. Debt-oriented funds -Investment below 65% in equities.
b. Equity-oriented funds -Invest at least 65% in equities, remaining in debt.

Growth and Income Fund: Funds that combine features of growth funds and income
funds are known as Growth-and-Income Funds. These funds invest in companies having
potential for capital appreciation and those known for issuing high dividends. The level
of risks involved in these funds is lower than growth funds and higher than income funds.

Commodity Funds
Those funds that focus on investing in different commodities (like metals, food grains, crude
oil etc.) or commodity companies or commodity futures contracts are termed as Commodity
Funds. A commodity fund that invests in a single commodity or a group of commodities is a
specialized commodity fund and a commodity fund that invests in all available commodities
is a diversified commodity fund and bears less risk than a specialized commodity fund.
"Precious Metals Fund" and Gold Funds (that invest in gold, gold futures or shares of gold mines)
are common examples of commodity funds.



27

Real Estate Funds
Funds that invest directly in real estate or lend to real estate developers or invest in
shares/securitized assets of housing finance companies, are known as Specialized Real Estate
Funds. The objective of these funds may be to generate regular income for investors or capital
appreciation.
Exchange Traded Funds (ETF)
Exchange Traded Funds provide investors with combined benefits of a closed-end and an open-
end mutual fund. Exchange Traded Funds follow stock market indices and are traded on stock
exchanges like a single stock at index linked prices. The biggest advantage offered by these
funds is that they offer diversification, flexibility of holding a single share (tradable at index
linked prices) at the same time. Recently introduced in India, these funds are quite popular
abroad.
Fund of Funds
Mutual funds that do not invest in financial or physical assets, but do invest in other mutual fund
schemes offered by different AMCs, are known as Fund of Funds. Fund of Funds maintain a
portfolio comprising of units of other mutual fund schemes, just like conventional
mutual funds maintain a portfolio comprising of equity/debt/money market instruments or non
financial assets. Fund of Funds provide investors with an added advantage of diversifying
into different mutual fund schemes with even a small amount of investment, which further helps
in diversification of risks. However, the expenses of Fund of Funds are quite high on account of
compounding expenses of investments into different mutual fund schemes.














28

Market potential of mutual funds.
Low Penetration of Mutual Funds in INDIA
Few people have been exposed to the idea & advantages of mutual funds and even fewer actually invest
in mutual funds, because of lack of adequate no. of advisors

Measure US India
Rupees invested in Mutual Funds out of 100 > 30 < 2
MF Industry size as % size of economy (GDP) 83% 6%
Total size / value of MF industry (Rs. Lac Crores) > 469 > 3.4

Opportunity to offer such products to clients
Every person can be a customer !!
low Competition of Mutual Fund Advisors
Lack of competition represents a very big opportunity to grow your business anywhere in India.
> 15 Lacs Insurance Advisors
V/s
< 50,000 Mutual Fund Advisors (Very Few Financial Advisors)
30 Insurance Advisors V/s 1 Mutual Fund Advisor

WHY INSURANCE AGENTS SHOULD SELL MUTUAL FUND?
Ans:- Following reasons will suffice the purpose of this question
Reason 1: Easy to make more clients
The Penetration of Mutual Funds is very low
whereas relatively,
The Penetration of Insurance is very high .
Opportunity for you to acquire more clients
Now no call of yours should get waste



29

Reason 2: Less Competition in the market
Nationally there are 15 lakh insurance agents huge competition even in small villages/towns
Whereas,
There are only 30,000 AMFI certified mutual fund agents all over India.
A huge DEMAND of Quality Mutual Fund Agents
There is a genuine need for more than 2 lakh mutual fund advisors in India (our estimates)

Reason 3: More satisfaction to your clients
If you are not selling mutual funds then you must not be aware of what they truly are and the
possibilities that they offer in providing solutions that meet the diverse needs of different clients.
With mutual funds in your offering, you are in a much better position to fully meet the clients
financial and investment needs.
Your client would ideally like you to do that and will be happy once to offer him multiple
solutions.

Reason 4: Additional source of income
Mutual fund is one product today that potentially has no limits to the volumes that you can
generate.
The important differentiation here with insurance is that you income is not based on the
premium you collect but on the entire AUM (assets under management) that you have
mobilized to counter the low rates.
An agents AUM running into crores in quite common in the industry. The income from
mutual funds can complement your earnings from insurance and may even substitute them in
future

Reason 5: Leveraging existing clientele base
How to get more out of what you already have?
Well, mutual fund is just the perfect answer to that question.
The truth is that there is a lot of potential to generate further income from your existing
clientele base.
Much of the investment needs of clients are unexplored and unfulfilled that you can satisfy.

Reason 6: Strong industry growth ahead

There is a very strong growth of mutual funds ahead
The reasons are many good product, low penetration, huge market, growing income,
changing mindset, lack of other attractive investment products, etc.
In US, almost every third household invests in mutual funds.

The US MF industry size is about 67% of the US GDP and are 1.5 times of the bank deposits in
US.
The situation is though almost opposite in India with the MF industry size here equal to 6% of
GDP and bank deposits are 10.50 times of the total industry size.
.

Reason 7: Retention and loyalty of clients
30

The underlying logic can be found in the growth of multiplexes, shopping malls, after all the
human nature is basically the same
People today look for easy, fast, and single service point that provides them with solutions that
meets their multiple needs.
your client would probably invest in mutual funds some day or later
Why not You do the same before anyone else gets to your client?

Reason 8: Greater choice of products
Till now we havent really talked about what choices you can offer to your clients In fact, you
can offer cash-flow management, to long-term goal oriented planning to your clients.
Your basket would include pure equity funds (Diversified / Sectoral / Index Funds) to pure
debt funds (Gilt / Income / Short Term Plans / Floating / Liquid Funds) to hybrid funds (MIPs /
Balance / Arbitrage Funds) to the tax saving ELSS.
With a vast range of Fund houses and many more schemes the choices are virtually
endless, and one is sure to find what one needs.

Reason 9: Be a Complete Financial Advisor
What next to Insurance?
There is an opportunity for you to transcend to the next level and offer real solutions that will
truly add value to your clients.
You should develop yourself and grow more as a Financial advisor rather than just
Insurance agent.
The learnings can extend beyond products to markets, to equities, debt, economy, etc to
understanding real financial planning, funds management, etc

Reason 10: Helps in selling ULIPs
If your focus is also selling ULIPS then, dealing in mutual funds should also help you in
better understanding and helping communicate the same to your clients.
It is a general observation in western countries that as an economy progresses, term plans and
ULIPs have increasing % of fresh investments from clients as far as insurance is considered.

You presence in mutual funds would be an advantage to you going forward.







31

Research design and methods

Research Design
A research design is the arrangement of conditions for collection and analysis ofdata in a manner that
aims to combine relevance to the research purpose with economy in procedure. (CR Kothari, 2009)

Different type of Research designs

Exploratory research
Exploratory research is the type of research in which the research is conducted for the problem
that has not been clearly defined. This type of study is conducted for formulating a problem for
more precise investigation. As the hypotheses is clearly defined, this method is not applicable.
Descriptive research
Descriptive research includes surveys and fact finding enquiries of different kinds. The major
purpose of descriptive research is description of the state of affairs as it exists at present. The
main characteristic of this method is that the researcher has no control over the variables, he can
only report what has happened or what is happening. (C R Kothari, 2009) As the researchers are
convinced that Alto and Swift are the most selling car models of Maruti and intend to prove
through market survey, this method is applicable.

Data Collection methods
Collection of data is the most prominent part of any survey. As soon as the research question is created
the data collection begins. There are two methods of collecting data i.e. Primary data and secondary data.

Primary data
The primary data are those which are collected afresh and for the first time, and thus happen to be
original in character. (C. R. Kothari, 2009)

The following are the methods of collecting primary data
Questionnaire Method
A questionnaire consists of a number of questions printed or typed in a definite order on a form or
set of forms.(C.R.Kothari,2009).
Interview Method
The interview method of collecting data involves presentation of oral-verbal stimuli and reply in
terms of oral-verbal responses. (C.R.Kothari,2009)

The researchers in this project have surveyed through questionnaire method.

Secondary data
The secondary data, on the other hand, are those which have already been collected by someone
else and which have already been passed through the statistical process.(C.R.Kothari,2009).
Review literature uses secondary data in this study






32

Sample design
A sample design is a definite plan for obtaining a sample from a given population. It refers to the
technique or the procedure the researcher would adopt in selecting items for the sample. (C.R.Kothari,
2009)

Types of Sample design

Non-probability sampling
Non-probability sampling is that sampling procedure which does not afford any basis for estimating the
probability that each item in the population has of being included in the sample. (C.R.Kothari, 2009)

Types of Non Probability Sampling
Purposive Sampling or Judgemental sampling
Snowball Sampling
Quota Sampling
Dimensional Sampling
Convenient sampling

Accidental, Haphazard or Convenience Sampling
In this type of sampling the sampling units that are convenient to the researchers are contacted. The
researchers have used this type of sampling method.
.















33

Data analysis and presentation

Data Analysis
Data Analysis is about summarising the data collected via questionnaires into a simple format so that the
research question can be answered.
An analysis is given below by the researchers on the data obtained during the questionnaire survey. Each
question from the questionnaire is taken and its responses are carefully tabulated, based on which a graph
a prepared, supported by explanation and analysis for the same.

Data analysis on survey :
Question 1: What products are you dealing in your existing business ?
Table 1:
Life insurance 400
General insurance 350
Postal schemes 20
Others 100



Interpretation:
From the above graph there are 350 life insurance agents who are dealing in both life insurance and
general insurance and there are 20 agents who deals in postal schemes and the remaining 100 agents are
also dealing in mediclaim policy also.

400
350
20
100
0
50
100
150
200
250
300
350
400
450
Life insurance General
insurance
Postal schemes Others
Series1
34


Question 2: Do you know about the Mutual Fund as a product for wealth creation of customers?
Table 2:
Yes 250
No 100
Know Slightly 50



Interpretation:
As from the above graph it is clear that out of 400 life insurance agents there are only 250 life insurance
agents who know about mutual fund as a product for wealth creation of customers where 100 agents dont

know about mutual funds but there are only 50 agents who have only basic knowledge about mutual
funds .







250
100
50
0
50
100
150
200
250
300
yes no know slightly
Series1
35

Question 3: Do you know the revenues in mutual fund business for advisors ?
Table 3:
Yes 100
No 200
Partial knowledge 100


Interpretation:
As from the above graph there are only 100 life insurance agents who know the revenue in mutual fund
where the other 100 agents have partial knowledge of revenues in mutual fund n the 50% agents dont
know the revenues in mutual fund .











100
200
100
0
50
100
150
200
250
Yes No Partial knowledge
Series1
36

Question 4: Do you know the advantages of adding up mutual fund as a product along with your
existing business ?
Table 4:
Yes 60
No 275
Partial knowledge 65



Interpretation:
Among 400 agents 275 are not interested in taking mutual funds agency, 60 are interested in mutual funds
agency & 65 will think of taking mutual fund agency.















60
275
65
Yes
No
Partial knowledge
37

Question 5: Would you like to attend Business Opportunity Program organized by NJ India ?

Table 5:

Yes 100
No 20
Yes but not now 280




Interpretation:
According to graph only 70 agents are aware of schemes offered by mutual funds and 50 agents have few
knowledge of schemes offered by mutual funds and remaining 280 agents are not aware .











0
50
100
150
200
250
300
Yes No Yes but not now
Series1
38

Question 6: Can we send a representative from NJ India Invest for more information about MF
Investments and Business Opportunity in MF ?
Table 6:
Yes 50
No 250
Yes but with an appointment 50





Interpretation:
There are only 50 agents who want to know about mutual fund investments and business opportunity in
MF and other 50 agents who want to know about MF but with an appointment and the remaining 250
agents do not want to know about MF because due to lack of time and because of Diwali festival season.








50
250
50
0
50
100
150
200
250
300
Yes No Yes but with an
appointment
Series1
39

Question 7: Have you cleared your AMFI exam ?
Table 7:
Yes 50
No 350



Interpretation:
Among 400 agents, 100 are interested in giving AMFI exam & remaining are not interested in giving the
exam.







50
350
0
50
100
150
200
250
300
350
400
Yes No
Series1
40

Question 8: If no, would you like to give the exam ?
Table 8:
Yes 50
No 350


Interpretation:
From the above graph there are only 50 life insurance agents who want to give the exam and the
remaining agents do not want to give the exam.







50
350
0
50
100
150
200
250
300
350
400
Yes No
Series1
41

SWOT ANALYSIS OF MF

Strength
Large number of potential customers are base.
Government support by way of tax concession for MF investors volatility of bank interest rate.
Better scope for accessing market information offer scope for accessing market information offer
liquidity to the investors at any time.
Offers variety of products to the investors.
The size of the market is large.

Weakness
Poor participation of retail investors
Lack of focus
Under performance
Poor service condition
Distribution network is confines only to metro cities

Opportunity
Huge untapped market in semi-urban and rural areas.
High level of savings habit among the people
Liberalized business environment
Using on-line node of trading systems
Investment opportunities abound in the international market
Failures of non bank financial company operations.

Threats
Increasing competition among the players
High level of volatility in the stock market
Possibility of more stringent regulation by SEBI , RBI , AMFI,etc ., in future








42

CONCLUSION
While meeting life insurance agents I found that most of the people are not aware of mutual fund as a
product. They just heard the name of mutual fund but they dont know the advantages or
revenue/commissions of mutual fund. SIP plan is like their ULIP plans. I asked them, were they interested
in having additional source of income they replied Yes. They were very few agents who want to know
about mutual fund. People show their curiosity to know about mutual fund through Business opportunity
programme which has been conducted at NJ India Invest pvt. Ltd. But later I found that only few
attended the BOP and when I called those who didnt attended the BOP they replied that they dont have
time some said they just want to attached with LIC product or insurance product because mutual fund is
not safe.

Recommendations
There should be add campaign so that we can create the awareness among insurance advisors. Due to lack
of awareness people have misconception about mutual fund. Many Advisors were totally unaware about
the company because lack of promotional activities being organized by NJ India Invest Pvt. Ltd.













43

QUESTIONNAIRE
Q1. What products are you dealing in your existing business?
1. Life insurance ( ) 2. General insurance ( ) 3. Postal Schemes ( ) 4. Others-----------------
Q2. Do you know about Mutual Fund as a product for wealth creation of customers?
1. Yes ( ) 2. No ( ) 3. Know slightly ( )
Q3. Do you know the revenue in mutual fund business for advisors?
1. Yes ( ) 2. No ( ) 3. Would like to know ( )
Q4. Do you know the advantages of adding up Mutual Fund as a product along with your existing
Business ?
1. Yes ( ) 2. No ( ) 3. Would like to know ( )
Q5. Would you like to attend Business Opportunity Program organized by NJ India ?
1. Yes ( ) 2. No ( ) 3. Yes but not now ( )
Q6. Can we send a representative from NJ India Invest for more information about MF investments and
Business Opportunity in MF?
1. Yes ( ) 2. No ( ) 3. Yes but with an appointment ( )
Q7. Have you cleared your AMFI exam?
1. Yes ( ) 2. No ( )
Q8. If no, would you like to give the exam?
1. Yes ( ) 2. No ( )




44

Bibliography
www.njindiainvest.com
www.moneycontrol.com
www.njfundz.com
www.amfiindia.com
http://www.managementparadise.com
Amfi Course Book
NSIM Mutual Fund Book























45