A PRESENTATION ON

JOB TRAINING REGARDING FUND

MUTUAL

23/04/2012

SUBMITTED BY:
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PRATIK CLASS: O.M.S.P. SEM VI ROLL: 1078 SESSION: 2008-11 ST. XAVIERS COLLEGE, RANCHI

MY JOB TRAINING PROFILE OBJECTIVES

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Understanding AMC Business Mechanism Interacting with investor. Making general public to understand about SIP and Mutual Fund. Assisting Branch Manager To know about the different schemes of Birla Sun Life Mutual fund and its CRM.

RESEARCH METHODOLOGY
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For completion of this project I collected data from different sources. Which can be classified as: Primary data- It has been collected from interviewing Mr.Santosh Kumar, the Relationship Manager- Retail sales of Birla Sun Life Mutual Fund, Ranchi and Mr. P.K. Jain the owner of PMPK office. A Questionnaire survey conducted with 50 people about their awareness on Mutual Fund. Secondary data- It has been collected through its Factsheet, news papers and Internet. Some help is also be taken from books and articles.
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WHY INVEST ?
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Personal desires never ends. It increases with our social needs. We can invest for Childrens education / marriage In case of Medical Emergency To enjoy Retirement self depending. Future goals House, Holiday Packages. Other Obligations

HERE INVESTMENT CAN BE DONE

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Post offices Banks Gold Real Estate Bonds Mutual Funds Shares Others

WHAT IS MUTUAL FUND?

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A mutual fund is a professionally-managed firm of collective investments that pools money from many investors and invest it in stocks, bonds etc. Mutual fund have a fund manager who invests the money on behalf of the investors by buying/selling stocks, bonds etc. This is the role of asset management company (AMC), to manage investors money. AMCs in return charges a fee for the services provided & this fee is borne by the investor as it is deducted from the money.

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Stock Market
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TYPES OF MUTUAL FUND

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By Structure

Open-Ended anytime enter/exit Close-Ended Schemes listed on exchange, redemption after period of scheme is over.

By Investment Objective
Equity (Growth) only in Stocks Long Term (3 years or more) Debt (Income) only in Fixed Income Securities (3-10 months) Gilt Short-term Money Market (Govt.) Balanced/Hybrid Stocks + Fixed Income Securities (1-3 years)

Other Schemes

Tax Saving Schemes Special Schemes

TIME-RISK-RETURN RELATION IN MUTUAL

FUNDS
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25 20 15 10 5 0 RISK RETURN TIME TIME RETURN RISK

RIGHT TIME TO BUY MUTUAL FUND

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The right time to buy mutual funds is when the prices of the funds are low or falling. However, the holding period should be determined by the market conditions and they should not be sold before the market turns around. In fact, a greater holding period offers greater chance to benefit. It also offers greater surety in returns.

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Equity: Fraught with apprehension, guided by emotions

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No Fixed assumption can be made...

Greed: Buy

21000 19500 18000 16500 15000 13500 12000 10500 9000 7500 6000 4500 3000 1500 0
Jan-00

Greed: Buy

Fear: Sell

Fear: Sell Greed: Buy

Fear: Sell l

Apr-00

Apr-01

Apr-02

Apr-03

Apr-04

Apr-05

Apr-06

Apr-07

Jul-00

Jul-01

Jul-02

Jul-03

Jul-04

Jul-05

Jul-06

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jul-07

Jan-08

Oct-00

Oct-01

Oct-03

Oct-04

Oct-05

Oct-07

Oct-02

Oct-06

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Due to Greed of making more money we tend to buy at high market levels and because of Fear of losing it we sell at lowest levels. In fact the opposite needs to be done.

ADVANTAGES OF MUTUAL FUND

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Managed by professionals Low Risk Factor Convenient Administration Return Potential Low Costs Liquidity Flexible transactions Choice of schemes Tax benefits Well regulated procedure At last more than expected Income

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TYPES OF INVESTMENT
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Nature Of Investment

BSL Schemes

SIP (Systematic investment) One time investment (A definite amount can be invested at a single time.)

Growth basis (All equity fund except Tax Relief 96) Dividend basis (MIP II Savings % plan) Tax Saving (BSL Tax Relief 96, BSL Tax plan )

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WHAT IS SIP?
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SIP is an investment program that allows you to contribute a fixed amount (as low as Rs.1000 )in mutual funds at regular intervals. Payment is made through post dated cheque or direct debit facilities. The investor gets fewer units when the NAV is high and more units when the NAV is low. Under this a fixed sum is invested each month on a fixed date of a month. This is called as the benefit of Rupee Cost Averaging (RCA).

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HOW TO UTILIZE THE SIP PROPERLY

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Set your financial goals Identify the scheme Decide the SIP amount Look for a long term commitment Aim for the big picture Start investing.

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WHERE DO THEY STAND

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1.

2.
3. 4. 5. 6. 7.

HDFC Mutual Funds Reliance Mutual Funds ICICI PRUDENTIAL Mutual Funds BIRLA SUN LIFE Mutual Funds UTI Mutual Funds Kotak Mahindra Mutual Funds DSP Blackrock

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DIFFERENT FUNDS OF BSL

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Equity fund-(For long term Goals) 1. Frontline equity fund 2. BSL 95 fund 3. Dividend yield plus 4. Tax relief 96 5. Mid cap fund 6. Equity fund 7. Top 100 fund 8. Index fund 9. International equity fund 10. Infrastructure fund

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 1. 2. 3. 4.

Debt Fund (For regular incomes) MIP II Savings five plan Cash Manager Dynamic bond Fund Saving Fund

1. 2.

ETF Fund (Includes both, regular Income and long term goals) Gold ETF Nifty ETF Apart from these, there are more than 20 Other Schemes where investment can be done.

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ABOUT CRM
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CRM is the platform which help an organization to understand the public better. BSL office at P.P. compound has its own strategy to satisfy customer. It care all customer on visit and CRM executives help them according to their wants. Mr. Santosh the CRM manager there is fully satisfied with his CRM strategy. Thus, PMPK also follow CRM. It has front desk to align the task and any query occurred by any customer. Mr. Pradeep himself sometimes clear the doubts of customer if he/she is not satisfied with Mrs.Vineeta. Other employees also entertain the customer if needed.

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CONCLUSION
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Finally the training is over. During this period we learnt many new things. We were given field job which helped us to build up our confidence. Daily reporting at office hour made us more punctual. We were told how to manage time by dividing them on the basis of Priority. This enhanced our potential. I thank to Mr. P.K. Jain for providing fruitful training, Mr. Kaushik Dutta, my project guide and to our respected HOD Prof. Gautam Rudra, for his support and clearing my doubts in between this training period. Thank you!

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