A

PROJECT REPORT

ON

“MUTUAL FUND DISTRIBUTIONSHIP”

For

“NJ INDIA INVEST”

Submitted to C K SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Under

Gujarat Technological University

UNDER THE GUIDANCE OF

Faculty Guide Company Guide

(Dr. Ankit Shah, Placement Officer) (Mr. Rahul Thakur, Unit Manager)

Submitted by

(Jagpal Rohra)

Enrolment No.: 167050592023

M.B.A – SEMESTER III

C K Shah Vijapurwala Institute of Management

M.B.A PROGRAMME Affiliated to

Gujarat Technological University

Ahmedabad

July, 2017

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Certificate

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Certificate

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 PREFACE
“Life is a series of experience, each one of which makes us bigger”.
- Henry Ford

The practical training has enriched my student life as a M.B.A student.

A MBA study is a bridge between the world of business education and management
and the world of practice. This helps the student to move over to the professional life
with facilities. “Learning is born out of experience and observation”. Learning is most
effective when put into practice. The management students can perform better in an
organization because of their familiarity with various techniques of management,
compared to those who merely obtain theoretical knowledge.
During the academic year 2017, I have undergone financial training at NJ Wealth
Vadodara; this training has helped me to accomplish my dream of working with a huge
business unit.
It is a matter of pride for me to explain this project work wherein I have put my sincerest
efforts.

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 ACKNOWLEDGEMENT
“Everybody lives and act partly according to his own, partly according to other people
idea” - Leo Tolstoy
The satisfaction and happiness that accompany the successful completion of any task
would be incomplete without mentioning the people who made it possible, whose
consistent guidance and encouragement crowned the efforts with success. It gives us
great contentment in submitting our Grand Project report on the subject matter
“Perception of investors for Mutual Fund.”, which is carried out as a partial fulfilment
for the degree of Masters of Business Administration in Marketing at C. K. Shah
Vijaypurwala Institute of Management, affiliated to Gujarat Technological University.
We owe a great many thanks to a great many people who helped and supported us in
completing this project. We deeply thanks to Asst. Prof. Rahul Thakur the Guide of the
project for guiding and correcting various documents of us with attention and care. He
has taken pain to go through the project and make necessary correction as and when
needed. We express our thanks to the Director Dr. Rajesh Khajuria of, C. K. Shah
Vijaypurwala Institute of Management, Vadodara, for extending his support. We gave
a deep sense of gratitude to Mr. Mehul Trivedi (Branch Manager), at NJ Wealth
Vadodara support and allowing us for doing survey in the company. Thanks and
appreciation to the helpful people at NJ Wealth, for their support. We would also thanks
to our Institution and our other faculty members without whom this project would have
been a distant reality. Lastly, I would like to acknowledge my family members and
friends, as without their blessing and co-operation this project work would have been
a dream.

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 DECLARATION

I, Jagpal Rohra, hereby declare that the report for “Summer Internship Project” entitled
“Mutual Fund Distribution” is a result of my own work and my indebtedness to other
work publications, references, if any, have been duly acknowledged.

Place: Vadodara (Signature)

Date: Jagpal Rohra

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 EXECUTIVE SUMMARY

I did my summer internship at “NJ India Invest Pvt. Ltd. During my summer internship
I got the project on “Mutual Fund Distribution”. There are so many investment avenues.
So that investors does not know which avenues provides best return. As per the
financial rule of “Do not put all the eggs in one basket” investor’s portfolio are most
diversified. So that risk should be minimized. If the person do not have knowledge of
how to get maximum return with minimum risk or vice-versa then they should investing
different investment avenues.

There are so many avenues and schemes for investments are available in current
mutual fund market. Investors know that how much risk they can take and based on
that they have to choose schemes. The primary object of the present project is to know
about investors behaviour mutual fund market .other objective is to know about the
spread of their investment like invested in debt, balanced, gold, equity etc.

For the purpose of this study, 1 questionnaire was prepaid by me with the help of Dr.
Ankit Shah Assistant Professor. Questionnaire contains 11 questions are close ended.
The methodology adopted me is personnel. I meet around 70 investors of Vadodara
city and gathered information and then we analyse their responses and give my finding
and suggestion through research report.

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 Table of Content
Preface 4
Acknowledgement 5
Declaration 6
Executive Summary 7
Sr. No. Particulars Page No.
PART–I GENERALINFORMATION
1 1.1 About the Industry & History 12-13
1.2 World Market 14-16
1.3 Indian Market 17-18
1.4 Growth of Industries 19-20
2 2.1 About major Companies in the Industry 21-23
3 3.1 Product Profile 24-32
PART–II PRIMARYSTUDY
4 2.1 Research Methodology 34
2.1.1 Research Objectives 35
2.1.2 Method of collection 36
2.1.3 Sources of data 36-37
5 2.2 Data Analysis and Interpretation 37-53
6 2.3 Results and Findings 54
7 2.4 Limitation 55
8 2.5 Conclusion 56

Annexure 57-59
Bibliography 60

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 List of Tables
Sr. No. Particular Page No.
1 In how many products you have invested in 36
2 Aware about Mutual Fund 38
3 Source you come to know about Mutual Fund 39
4 Mutual Fund are a destination for a high return investment 40
5 Kind of Investment you preferred 41
6.1 Liquidity 42
6.2 Professional Management 43
6.3 Price 44
6.4 High Return 45
6.5 Risk 46
6.6 Brand Image 47
6.7 Diversification 48
Are you satisfied with the service provided by your investment company
7 regarding Mutual Fund 49
8 Like to start Business of Mutual Fund 50
9 Enrol with NJ INDIA INVEST 51

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 List of Graph

Sr. No. Particular Page No.

1.1.1 Mutual Fund Growth in India 17
1.1.2 Scope of Mutual Fund Business 18
2.1 In how many products you have invested in 36-37
2.2 Aware about Mutual Fund 38
2.3 Source you come to know about Mutual Fund 39
2.4 Mutual Fund are a destination for a high return investment 40
2.5 Kind of Investment you preferred 41
2.6.1 Liquidity 42
2.6.2 Professional Management 43
2.6.3 Price 44
2.6.4 High Return 45
2.6.5 Risk 46
2.6.6 Brand Image 47
2.6.7 Diversification 48
Are you satisfied with the service provided by your investment
2.7 company regarding Mutual Fund 49
2.8 Like to start Business of Mutual Fund 50
2.9 Enrol with NJ INDIA INVEST 51

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 PART – I

GENERAL

INFORMATION

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 1.1 MUTUAL FUND INDUSTRY

A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned
through these investments and the capital appreciations realized are shared by its unit
holders in proportion to the number of units owned by them. Thus a Mutual Fund is the
most suitable investment for the common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at a relatively low cost. The
flow chart below describes broadly the working of a Mutual Fund.

A Mutual Fund is a body corporate registered with the Securities and Exchange Board
of India (SEBI) that pools up the money from individual/corporate investors and invests
the same on behalf of the investors/unit holders, in Equity shares, Government
securities, Bonds, Call Money Markets etc, and distributes the profits. In the other
words, a Mutual Fund allows investors to indirectly take a position in a basket of assets.
Mutual Fund is a mechanism for pooling the resources by issuing units to the investors
and investing funds in securities in accordance with objectives as disclosed in offer
document. Investments in securities are spread among a wide cross-section of
industries and sectors thus the risk is reduced .Diversification reduces the risk because
all stocks may not move in the same direction in the same proportion at same time.
Investors of mutual funds are known as unit holders. The investors in proportion to
their investments share the profits or losses.

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 The mutual funds normally come out with a number of schemes with different
investment objectives which are launched from time to time. A Mutual Fund is required
to be registered with Securities Exchange Board of India (SEBI) which regulates
securities markets before it can collect funds from the public.

Characteristics:-

 A mutual fund is managed by investment professionals and other service providers,

who earn a fee for their services, from the fund.

 The pool of funds is invested in a portfolio of marketable investments. The value of the
portfolio is updated every day.

 A mutual fund is managed by investment professionals and other service providers,

who earn a fee for their services, from the fund.

 The investor's share in the fund is denominated by 'units'. The value of the units
changes with change in the portfolio's value, every day. The value of one unit of
investment is called the Net Asset Value or NAV.

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 1.2 WORLD MARKET

A mutual fund is a type of professionally-managed collective investment scheme that

pools money from many investors to purchase securities. While there is no legal
definition of mutual fund, the term is most commonly applied only to those collective
investment schemes that are regulated, available to the general public and open-
ended in nature.

The term mutual fund is less widely used outside of the United States. For collective
investment schemes outside of the United States, see articles on specific types of
funds including open-ended investment companies, unitized insurance funds, unit
trusts and Undertakings for Collective Investment in Transferable Securities. In the
United States, mutual funds must be registered with the Securities and Exchange
Commission, overseen by a board of directors or board of trustees and managed by a
registered investment advisor. They are not taxed on their income if they comply with
certain requirements. Mutual funds have both advantages and disadvantages
compared to direct investing in individual securities. They have a long history in the
United States. Today they play an important role in household finances. There are 3
types of U.S. mutual funds: open-end, unit investment trust, and closed-end. The most
common type, the open-end mutual fund, must be willing to buy back its shares from
its investors at the end of every business day. Exchange-traded funds are open-end
funds or unit investment trusts that trade on an exchange. Open-end funds are most
common, but exchange-traded funds have been gaining in popularity.

Mutual funds are classified by their principal investments. The four largest categories
of funds are money market funds, bond or fixed income funds, stock or equity funds
and hybrid funds. Funds may also be categorized as index or actively-managed.
Investors in a mutual fund pay the fund’s expenses. There is controversy about the
level of these expenses. A single mutual fund may give investors a choice of different
combinations of expenses by offering several different types of share classes.

In the United States, a mutual fund is registered with the Securities and Exchange
Commission (SEC) and is overseen by a board of directors (if organized as a
corporation) or board of trustees (if organized as a trust).

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 The board is charged with ensuring that the fund is managed in the best interests of
the fund's investors and with hiring the fund manager and other service providers to
the fund.

The fund manager, also known as the fund sponsor or fund management company,
trades (buys and sells) the fund's investments in accordance with the fund's investment
objective. A fund manager must be a registered investment advisor. Funds that are
managed by the same fund manager and that have the same brand name are known
as a "fund family" or "fund complex". Mutual funds are not taxed on their income as
long as they comply with requirements established in the Internal Revenue Code.

Specifically, they must diversify their investments, limit ownership of voting securities,
distribute most of their income to their investors annually, and earn most of the income
by investing in securities and currencies. Mutual funds pass taxable income on to their
investors annually. The type of income they earn is unchanged as it passes through to
the shareholders.

For example, mutual fund distributions of dividend income are reported as dividend
income by the investor. There is an exception: net losses incurred by a mutual fund
are not distributed or passed through to fund investors.

Mutual funds may invest in many kinds of securities. The types of securities that a
particular fund may invest in are set forth in the fund's prospectus, which describes the
fund's investment objective, investment approach and permitted investments.

Advantages and Disadvantages:

Mutual funds have advantages compared to direct investing in individual securities.

These include:

 Increased diversification

 Daily liquidity

 Professional investment management

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 Ability to participate in investments that may be available only to larger investors

 Service and convenience

 Government oversight

 Ease of comparison

Mutual funds have disadvantages as well, which include

 Fees

 Less control over timing of recognition of gains

 Less predictable income

 No opportunity to customize

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 1.3 INDIAN MARKET

The first introduction of a mutual fund in India occurred in 1963, when the Government
of India launched Unit Trust of India (UTI). Until 1987, UTI enjoyed a monopoly in the
Indian mutual fund market. Then a host of other government-controlled Indian financial
companies came up with their own funds. These included State Bank of India, Canara
Bank, and Punjab National Bank. This market was made open to private players in
1993, as a result of the historic constitutional amendments brought forward by the then
Congress-led government under the existing regime of Liberalization, Privatization and
Globalization (LPG). The first private sector fund to operate in India was Kothari
Pioneer, which later merged with Franklin Templeton.

Despite being available in the market for over two decades now with assets under
management equaling Rs 7,81,71,152 Laths (as of 28 February 2010) (Source:
Association of Mutual Funds, India), less than 10% of Indian households have invested
in mutual funds. A recent report on Mutual Fund Investments in India published by
research and analytics firm, Boston Analytics, suggests investors are holding back
from putting their money into mutual funds due to their perceived high risk and a lack
of information on how mutual funds work. This report is based on a survey of
approximately 10,000 respondents in 15 Indian cities and towns as of March 2016.
There are 43 Mutual Funds recently.

The primary reason for not investing appears to be correlated with city size. Among
respondents with a high savings rate, close to 40% of those who live in metros and
Tier I cities considered such investments to be very risky, whereas 33% of those in
Tier II cities said they did not how or where to invest in such assets. On the other hand,
among those who invested, close to nine out of ten respondents did so because they
felt these assets were more professionally managed than other asset classes. Exhibit
2 lists some of the influencing factors for investing in mutual funds.

Unit Trust of India is a financial organization in India, which was created by the UTI Act
passed by the Parliament in 1963. For more than two decades it remained the sole
vehicle for investment in the capital market by the Indian citizens. In mid- 1980s public
sector banks were allowed to open mutual funds. The real vibrancy and competition in
the MF industry came with the setting up of the Regulator SEBI and its laying down the
MF Regulations in 1993.UTI maintained its pre-eminent place till 2001, when a
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massive decline in the market indices and negative investor sentiments after Kean
Parekh scam created doubts about the capacity of UTI to meet its obligations to the
investors. This was further compounded by two factors; namely, its flagship and largest
scheme US 64 was sold and re-purchased not at intrinsic NAV but at artificial price and
its Assured Return Schemes had promised returns as high as 18% over a period going
up to two decades.

As of 2010, UTI has 10 million investors. Fearing a run on the institution and possible
impact on the whole market Government came out with a rescue package and change
of management in 2001.Subsequently, the UTI Act was repealed and the institution
was bifurcated into two parts .UTI Mutual Fund was created as a SEBI registered fund
like any other mutual fund. The assets and liabilities of schemes where Government
had to come out with a bail-out package were taken over directly by the Government
in a new entity called Specified Undertaking of UTI, SUUTI. SUUTI holds over 27%
stake Axis Bank. In order to distance Government from running a mutual fund the
ownership was transferred to four institutions; namely SBI, LIC, BOB and PNB, each
owning 25%. Certain reforms like improving the salary from PSU levels and affecting
a VRS were carried out UTI lost its market dominance rapidly and by end of 2005,
when the new share-holders actually paid the consideration money to Government its
market share had come down to close to 10%! A new board was constituted and a new
management inducted. Systematic study of its problems role and functions was carried
out with the help of a reputed international consultant.

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 1.4 GROWTH OF THE INDUSTRY

Graph No. 1.1.1 Mutual Fund Growth in India

Source: www.njgroup.in
Interpretation:
The above graph shows that since last 5 years Mutual Fund Industry in India is growing
upwards constantly. From 2016 to 2017 Mutual Fund Industry had grown rapidly.
Hence nowadays people are getting more awarded of Mutual Fund, hence we can
predict that Mutual Fund in India will grow continuously.

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 Graph No. 1.1.2 Scope of Mutual Fund Business

Source: www.njgroup.in
Interpretation:
From the above graph we can conclude that India is lowest GDP ratio from all the
countries which creates a Golden Opportunity for India. Due to large population of India
all other countries are trying to invest in India which give a gentle push to India in
Mutual Fund Sector in upcoming years.

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 2.1 MAJOR COMPANIES

Nearly there are about 42 Asset Management Companies in the whole mutual fund
industry. Below is the list of major companies of mutual Fund:-

 HDFC Mutual Fund

 Reliance Mutual Fund

 ICICI Prudential Mutual Fund

 Birla Sun Life Mutual Fund

 UTI Mutual Fund

 SBI Mutual Fund

 Franklin Templeton Mutual Fund

 DSP Black Rock Mutual Fund

 Kotak Mahindra Mutual Fund

 IDFC Mutual Fund

 Tata Mutual Fund

 Sundaram Mutual Fund

 Deutsche Mutual Fund

 Religare Invesco Mutual Fund

 Axis Mutual Fund

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 Canara Robeco Mutual Fund

 JPMorgan Mutual Fund

 JM Financial Mutual Fund

 LIC NOMURA Mutual Fund

 IDBI Mutual Fund

 HSBC Mutual Fund

 BNP Paribas Mutual Fund

 Goldman Sachs Mutual Fund

 Baroda Pioneer Mutual Fund

 PRINCIPAL Mutual Fund

 L&T Mutual Fund

 Peerless Mutual Fund/Taurus Mutual Fund

 Morgan Stanley Mutual Fund

 Indiabulls Mutual Fund

 Pramerica Mutual Fund

 Union KBC Mutual Fund

 ING Mutual Fund

 Sahara Mutual Fund

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 PineBridge Mutual Fund

 Mirae Asset Mutual Fund

 Edelweiss Mutual Fund

 Motilal Oswal Mutual Fund

 Escorts Mutual Fund

 Quantum Mutual Fund

 BOI AXA Mutual Fund

 IIFL Mutual Fund

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 3.1 COMPANY PROFILE

A evolving, emerging & enterprising group with its' roots in the financial services sector
and today expanding into newer horizons with great passion. The vision of the group
is to be leaders in businesses driven by customer satisfaction, commitment to
excellence and passion for continued value creation for all stakeholders. This vision
has helped us grow and build the trust of our customers and associates which is at the
cornerstone of everything we do. Trust is also at the heart of our success and the driver
for passion for our success.

NJ Group is a leading player in the Indian financial services industry known for its'
strong distribution capabilities. The journey of NJ began in 1994 with the establishment
of NJ India Invest Pvt. Ltd., the flagship company, to cater to investor needs in the
financial services industry. Today, the NJ Wealth Distributor Network, earlier known as
the NJ Fundz Network, started in 2003 is among the largest networks of financial
products distributor in India.

Over the years, NJ Group has diversified into other businesses and today has the
presence in businesses ranging from financial products distributor network, asset
management, real estate, insurance broking, training & development and technology.
Our rich experience in financial services, combined with executional capabilities and
strong process & system orientation, has enabled us to shape a rising growth trajectory
in our businesses.

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 NJ Group is based out of Surat in Gujarat (India) and has presence in 124* locations
in India and has over 1,600+* employees.

Doing the 'right' thing is a virtue most desirable. The difference between success and
failure is often not dictated by knowledge or expertise but by its actual application and
perseverance. When it comes to successful wealth creation for customers, it is
something that we believe & practice. For us it is more than a mission; it is what defines
our lives and our actions at NJ India Invest. With this passion, we continue to evolve
and make the right product accessions and service innovations in our offerings. To the
advisors, we offer a 360 comprehensive business platform with unmatched IT
solutions, empowering them to set the best practice standards and deliver real value
to their customers. Over the years, our passion has seen us grow from strength to
strength and expand rapidly, setting new benchmarks in the process. But to us, what
really matters most is the number of lives we have managed to transform and we still
have a long way to go...

NJ IndiaInvest 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.

NJ prides in being a professionally managed, quality focused and customer centric

organisation. The strength of NJ lies in the strong domain knowledge in investment
consultancy and the delivery of sustainable value to clients with support from cutting-
edge technology platform, developed in-house by NJ.

At NJ we believe in:

 having single window, multiple solutions that are integrated for simplicity and sapience

 making innovations, accessions, value-additions, a constant process

 providing customers with solutions for tomorrow which will keep them above the curve,
today NJ had over INR 43,000* Crores of mutual fund assets under advice with a wide

25
 presence in over 100+ locations in 21 states in India. The numbers are reflections of
the trust, commitment and value that NJ shares with its clients.

At NJ, we continue to innovate, enrich our intellect, and ask critical questions. We
challenge our own processes and systems on constant basis to emerge more
convinced. At NJ, we continue to expand the scope and depth of our offerings, making
apt use of technological support.

VISION & MISSION OF NJ India invest:-

Vision

 To be the leader in our field of business through,

 Total Customer Satisfaction

 Commitment to Excellence

 Determination to Succeed with strict adherence to compliance

 Successful Wealth Creation of our Customers

Mission

Ensure creation of the desired value for our customers, employees and associates,
through constant improvement, innovation and commitment to service & quality. To
provide solutions which meet expectations and maintain high professional & ethical
standards along with the adherence to the service commitments.

PHILOSOPHY: -

At NJ our service and Investing philosophy inspire and shape the thoughts, beliefs,
attitude, actions and decisions of our employees. If NJ would resemble a body, our
philosophy would Service philosophy: Our primary measure of success is customer
satisfaction....

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 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 will
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 our cutomer need

 Bring energy, passion & excellence in everything we do Investing philosophy

 We aim to provide Need –based solutions for long-term wealth creation

 Clients want Need –based solutions, which fits them

 Long term wealth creation is simple and straight

 Asset-Allocation is the ideal & the best way for the Long term wealth creation

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 Educating and disclosing all the important facets which the customer need to be aware
of, is important

 The solution must be unbiased ,measurable and flexible

MANAGEMENT:-

The management at NJ brings together a team of people with wide experience and
knowledge in the financial services domain. The management provides direction and
guidance to the whole organization.

The customer first philosophy in deeply ingrained in the management at NJ. The aim
of the management is to bring the best to the customer in terms of-

 Range of products and services offered

 Quality customer Service

All the key members of the organization put in great focus on the processes & systems
under the diverse functions of business.

 The key member of the management are :-

Mr. Neeraj Chokasi - Jt.Managing Director

Mr. Jignesh Desai - Jt.Managing Director

 Key Sales Team:-

Mr. Misbah Baxamusa - National Head

Mr. Naveen Rathod - V.P ( Sales )

Mr. Kulbhushan Nandwani - A.V.P ( Marketing )

Mr. Prashant Kakkad - A.V.P ( Sales )

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 Key executive Team :-

Mr. Shrish Patel - Information Technology

Mr. Abhishek Dubey - Business Process

Mr. Vinayak Rajput - Operations

Mr. Dhaval Desai - Human Resources

Mr. Col. Dixit - Administration

Mr. Tejas Soni - Finance

Mr.Viral Shah - Reserarch

Mr. Rakesh Tokarkar - Compliance

Product Basket:-

The following is broadly the product basket available to NJ Wealth Partner on

eligibility/registration basis. The NJ Wealth Distributors can engage in active
distribution of the following products to their clientele through NJ:

1. Mutual Funds

NJ has tie-ups with all Asset Management Companies (AMCs) and all mutual funds
schemes are part of the product basket. Eligible Partners can offer any mutual fund
scheme to their client from day one of their association with NJ. The customers have
a single window access to any mutual fund product/scheme they would like to access.

2. Capital Market – Direct Equity & ETFs

NJ is a SEBI registered member for NSE & BSE and capital markets. Clients of NJ
Demat & Trading Account service have access to capital market products of direct

29
equity stocks and Exchange Traded Funds (ETFs). One can undertake transaction
online or through Call & Transact facility.

3. Fixed Income

NJ has also entered into tie-ups with leading companies / institutions for distribution of
fixed income products, namely Non-Convertible Debentures, Infrastructure / RBI
Bonds, Company Deposits, etc. The availability of fixed income products in addition to
mutual funds, makes the product basket even more attractive.

4. Portfolio Management Services (PMS)

NJ has its own PMS offerings with NJ Advisory Services Pvt. Ltd., a group company,
being a PMS provider. The existing strategies have mutual funds as the underlying,
one of very few in the industry. In addition to this, PMS products by other leading PMS
providers also regularly form a part of the product basket with Partners. Clients can
subscribe to the PMS products of NJ / other providers through their Partners. Access
to NJ PMS products are exclusively available for NJ Partners only.

5. Real Estate

In addition to the investment products, NJ Partners and clients also have access to the
real estate properties across India. NJ regularly enters into tie-ups with leading
developers in India for distribution of their products. In addition to this, exclusive
projects handled by NJ Realty are available to clients only through eligible NJ Partners.
The exclusive projects are those where NJ Realty is actively engaged in project
management, execution and/or distribution.

Client Services:-

Welcome to experience the joy and comfort of being a part of a comprehensive wealth
management platform. Being associated with an NJ Wealth Partner can help
customers to access products and solutions that are unmatched and customised to
match your wealth management needs. With rich experience, expertise and years of
continued focus on development of processes & systems, NJ Wealth has managed to
build operational, delivery and service quality standards that are unmatched in the

30
 industry. NJ Customer Care, a service used by NJ Wealth Partners helps resolve
customer queries and complaints with great efficiency. The customers indirectly benefit
greatly with this excellence in services.

In addition, the tangible services on offer to all the customers of NJ Wealth Partners
are:

 NJ Client Desk:

NJ Client Desk offers customers of NJ Wealth Partners a comprehensive online desk,

which consolidates entire wealth/portfolio information for an entire family/group. It
keeps the customers informed of their portfolio, anytime anywhere, and empowers
them to take smart investment decisions.

The customers get access to virtually all financial and non-financial products to
manage their portfolio. Transactions through NJ are automatically updated and there
is a wide of choice of consolidated and product wise reports available. NJ Partners can
also create multiple customised groups for specific portfolio management need of their
customers.

Note: Financial products includes mutual funds, equities, PMS, insurance (life, non-
life), fixed income products (company/ bank FD, bonds, debentures, small saving
schemes (PPF, NSS, postal schemes). Non-financial products includes physical
assets (real estate, bullion) and private assets (equity, debt).

 NJ Trading Account & Demat Account:

The customers of NJ Wealth Partners can benefit immensely from the NJ Trading
Account & Demat Account (TADA) service, which helps avoid the hassles & worries of
doing physical transactions. NJ TADA offers convenience in making transactions in the
most simple, accurate, time and cost effective manner in multiple modes. The service
removes operational dependency on the Partner to access products execute
transactions in mutual funds and Exchange Traded Funds (ETFs).

A customer holding an NJ trading account and NJ demat account avails the following
modes of transaction

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 Online desk transact (transact from NJ Trading Account)

 Call & Transact (transact on phone)

 Offline /Physical instruction

NJ Advantages The following are the reasons, which we believe enable NJ Wealth
offer added advantage to associated NJ Partners and their customers.

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DATA ANALYSIS
&
INTERPETATION

33
 RESEARCH METHODOLOGY
Research methodology give students the necessary training in gathering materials and arranging
them, participation in the field work when required and techniques for the collection of data
appropriate to a particular problem in the use of statistics questionnaire and controlled
experimentation and in recording evidence, sorting it out and interpreting it thereafter.
SCOPE OF THE STUDY
The study is to find out the preference of the investors who have been invested in mutual funds. The
information considered for analysis and interpretation are confined to demographic factors,
awareness about mutual funds, factors prevent you to invest in mutual fund and so on.
The primary data is collected from the investors. The collected data gives the individual Investor‟s
perception will give a valuable insight regarding their expectation about an ideal satisfaction. This
study has been done with the database provided by the company, only with reference to their
importance. This study tries to get the preferences, inference of the respondents.
It has been perceived that there are so many investors of mutual fund in NJ Wealth and NJ Wealth
is financial product distributor network. The strategy is to know the perception of investors for mutual
fund. And also to know investment options suggested by the NJ Wealth to their clients based on
secured and risk taking investments.

This is analytical research. A perception of investor for mutual fund is to be found out after
doing the behavioural study of respondent. And what are the various investment options they
are considered from investment avenues which are available in the market.

34
 Research Objectives:

Primary Objective:
Primary objective to analyse perception of investors for mutual fund of NJ Wealth.

Secondary Objective:
To study the level of awareness of mutual funds.

To analyse the perception of investors towards mutual funds of NJ Wealth.

To find out the sources to know about mutual fund.

To find out the different ways of investing.

To study the factors considered by the investors and those which ultimately influence him while
investing.

To determine the type of mutual fund investor prefers the most.

To find the factors Influence to invest in mutual funds.

To find out the satisfaction level of investors.

35
 Methods of data collection

Research Design:
A research design is simply the framework or plan for a study, used as a guide in collecting and
analyzing data. It is the blue print that is followed in completing the study. Research design is the
conceptual structure within which the research would be conducted. In the context of this project
report I have utilize descriptive research design This cover research design that is intended to
produce accurate description of variable relevant to the decision face without demonstrating
relationship exists between variables.

Sampling Design:

Sampling Method
In the context of this project the survey, which are the investors of mutual fund, done by convenient
sampling method.

Sample size
Our total sample size is 70.

Sample Area
The survey is done in the central city of Vadodara.

Sources of data:

Primary Data

36
In the context of this project report the resource of data used by me is primary data. I have collected
the data by contacting personally the respondent and by interviewing them.

Secondary Data
To know the information about current market scenario making use of internet, magazines,
newspaper, periodicals and fact sheets of different AMCs and NJ Wealth.

37
Table No. 1 In how many products you have invested in?

Product have invested in

Valid Cumulative
Frequency Percent Percent Percent
Valid Insurance 39 55.7 55.7 55.7
Real 8 11.4 11.4 67.1
Estate
Shares 5 7.1 7.1 74.3
Bond 2 2.9 2.9 77.1
Mutual 15 21.4 21.4 98.6
Fund
Fixed 1 1.4 1.4 100.0
Deposit
Total 70 100.0 100.0

Graph No. 2.1 Products you have invested in

38
Interpretation:

From above graph we concluded that more than half of persons consider insurance as best

medium of investment around 55.4% invested in insurance and 21.4% people consider mutual

fund as safe investment. Investment in Real Estate sector and Shares & Bonds is almost

same around 11.4% and 10% respectively. Today still 1.4% people consider fixed deposit as safe

investment although its return are less compared to all other medium of instruction.

39
 Table No. 2 Are you Aware about Mutual Fund?

Aware about Mutual Fund

Frequency Percent Valid Percent Cumulative
Percent
Yes 66 94.3 94.3 94.3
Valid No 4 5.7 5.7 100.0
Total 70 100.0 100.0

Purpose of asking question; is to know the awareness level of investors among different age
groups.

Graph No. 2.2 Aware about Mutual Fund

Mutual Fund Awareness among different

Age Groups

29
26
30
20 3 11 1
0
Aware about Mutual Fund No
10
Aware about Mutual Fund Yes
0
24 to 34 35 to 44 45 to 59
Age

Aware about Mutual Fund Yes Aware about Mutual Fund No

Interpretation:
As the purpose of the question awareness level of investors among different age groups are given
below.
Above graph shows that out of 70 sample size, 4 sample are not aware about Mutual Fund. Rest 66
samples are aware about mutual fund and there classification as per their age are given below:-
Age Number of people Aware
24 to 34 26
35 to 44 29
45 to 59 11

40
 Table No. 3 From which sources you came to know about Mutual Fund?

Source to came to know about Mutual Fund

Frequency Percent Valid Percent Cumulative
Percent
Broker 29 41.4 41.4 41.4
Friends/Relative 29 41.4 41.4 82.9
Valid
Television/Newspaper 12 17.1 17.1 100.0
Total 70 100.0 100.0

Graph No. 2.3 Source you come to know about Mutual Fund

Interpretation:
Above graph interprets that 42% of sample is came to know about mutual fund from the BROKER,
while 41% of sample is came to know about mutual fund from their FRIENDS/RELATIVE and
remaining 17% of sample is came to know from TELEVISION/NEWSPAPER about mutual fund.

41
 Table No. 4 Is Mutual Fund are a destination for a high return investments?

Mutual Fund are a destination for high return investments

Frequency Percent Valid Percent Cumulative
Percent
Yes 58 82.9 82.9 82.9
Valid No 12 17.1 17.1 100.0
Total 70 100.0 100.0

Graph No. 2.4 Mutual Fund are a destination for a high return investment

Interpretation:
The following diagram represents the opinion of respondents towards Mutual Fund as a tool for
yielding higher return. It represent that 26 sample from 24 to 34 age group thinks that mutual fund
is right destination for high return while 22 & 9 sample are from 35 to 44 & 45 to 59 age group
respectively thinks that mutual fund is right destination for high return.

Thinking of Respondent as per different

Age Groups for High Return Investment

45 to 59
Age

35 to 44

24 to 34

0 5 10 15 20 25 30

Mutual Fund are a destination for high return investments No

Mutual Fund are a destination for high return investments Yes

42
 Table No. 5 Which kind of investment you preferred?

Kind of investing you like the most

Frequency Percent Valid Percent Cumulative
Percent
Lumpsum 32 45.7 45.7 45.7
SIP (Systematic Investing
Valid 38 54.3 54.3 100.0
Planning)
Total 70 100.0 100.0

Purpose of asking question; is to know that which kind of investment is more preferable to the
respondents.

Graph No. 2.5 Kind of Investment you preferred

Interpretation:

According my study 54.3% consider SIP (Systematic Investing Planning) as a most preferable for
investing and Lumpsum is considered as a preferable way of investing in Mutual Fund by 45.7% of
sample size.

43
 6 Factors based on the importance for you, while buying Mutual Fund as per different age
group?
Table No. 6.1 Liquidity

Factors based on the importance for you, investments while buying a

Mutual Fund- Liquidity
Frequency Percent Valid Percent Cumulative
Percent
Not Important 1 1.4 1.4 1.4
Neutral 28 40.0 40.0 41.4
Valid Important 38 54.3 54.3 95.7
Most Important 3 4.3 4.3 100.0
Total 70 100.0 100.0

Purpose of asking question; is to know the factors that are important for an individual for investing
in Mutual Fund among different age groups.

Graph No. 2.6.1 Liquidity

19

15
13

6
4

1 1
0
Not Important Neutral Important Most Important

Age 24 to 34 Age 35 to 44 Age 45 to 59

Interpretation:
The above graph represent the importance of “LIQUIDITY” factor while investing in Mutual Fund. I
had under gone a survey where I found that out of 70 sample size of different age group, for “38”
Liquidity is one of the important factor for investing in Mutual Fund.
While for “29” Liquidity is not that much important for investing in Mutual Fund.

44
 Table No. 6.2 Professional Management

Factors based on the importance for you, investments while buying

Mutual Fund- Professional Management
Frequency Percent Valid Percent Cumulative
Percent
Not Important 1 1.4 1.4 1.4
Neutral 26 37.1 37.1 38.6
Valid Important 36 51.4 51.4 90.0
Most Important 7 10.0 10.0 100.0
Total 70 100.0 100.0

Graph No. 2.6.2 Professional Management

PROFESSIONAL MANAGEMENT

Most Important

Important

Neutral

Not Important

0 5 10 15 20 25 30 35 40

Age 24 to 34 Age 35 to 44 Age 45 to 59

Interpretation:
Professional Management is the planning as well as managing the people, hence it became an
important element while investing in Mutual Fund.
Thus above graph represent the importance of “PROFESSIONAL MANAGEMENT” among different
age groups. More than 50% of sample from sample size, considered Professional Management as
an important factor for investing in Mutual Fund & vica-versa.

45
 Table No. 6.3 Price

Factors based on the importance for you, investments while buying Mutual
Fund- Price
Frequency Percent Valid Percent Cumulative
Percent
Least Important 2 2.9 2.9 2.9
Neutral 20 28.6 28.6 31.4
Valid Important 32 45.7 45.7 77.1
Most Important 16 22.9 22.9 100.0
Total 70 100.0 100.0

Graph No. 2.6.3 Price

PRICE

12

10

0
Least Important Neutral Important Most Important

Age 24 to 34 Age 35 to 44 Age 45 to 59

Interpretation:
From the above graph we can conclude that people takes Mutual Funds as important investment
option. Here, we can conclude that people are likely to invest in Mutual Funds at the age of 45 to 44
years, which is the growth part of a there life.

46
 Table No. 6.4 High Return

Factors based on the importance for you, investments while buying a

Mutual Fund- High Return
Frequency Percent Valid Percent Cumulative
Percent
Neutral 27 38.6 38.6 38.6
Important 10 14.3 14.3 52.9
Valid
Most Important 33 47.1 47.1 100.0
Total 70 100.0 100.0

Graph No. 2.6.4 High Return

Neutral
24%
Most Neutal 42%
Neutral Important Important 16%
Important
17% 52% 38%
Most-
Most Important Important 42%
Important
59% 10%

24 to 34 35 to 44 45 to 59

Interpretation:

From above graph we can conclude that High Return is one of the most important aspect when one
young blood invest. Here majority of the investors between the age group of 24-34 thinks High
Return of the mutual funds are important.

47
 Table No. 6.5 Risk

Factors based on the importance for you, investments while buying Mutual
Fund- Risk
Frequency Percent Valid Percent Cumulative
Percent
Least Important 1 1.4 1.4 1.4
Not Important 1 1.4 1.4 2.9
Neutral 13 18.6 18.6 21.4
Valid
Important 43 61.4 61.4 82.9
Most Important 12 17.1 17.1 100.0
Total 70 100.0 100.0

Graph No. 2.6.5 Risk

RISK

30 3 6
25
20
21 16
15
3
10
6
5 5 6
0 01 0 1 2
0
24 to 34 35 to 44 45 to 59
Age

Least Important Not Important Neutral Important Most Important

Interpretation:
The above graph represent the consideration of “RISK” factor by the respondents while investing
Mutual Fund according to different age group. As per the study Risk is considered as one of an
important factor for investing in Mutual Fund. While for 12 out of 70 sample consider Risk factor is
most important for investing in Mutual Fund.

48
 Table No. 6.6 Brand Image

Factors based on the importance for you, investments while buying

Mutual Fund- Brand Image
Frequency Percent Valid Percent Cumulative
Percent
Neutral 17 24.3 24.3 24.3
Important 27 38.6 38.6 62.9
Valid
Most Important 26 37.1 37.1 100.0
Total 70 100.0 100.0

Graph No. 2.6.6 Brand Image

Neutral
Interpretation:
17%

24 to 34
Important
34%
The above graph represents the consideration of brand
image factor where for 31% sample from age group of 24 to
Most Important 34, consider brand image factor is most important for buying
49%

mutual fund brand image.

Neutral
35 to 44 42%

The above graph represents the consideration of brand image factor Important
33%
where for 42% sample from age group of 35 to 44, consider brand
image factor is neutral for buying mutual fund brand image. Most Important
25%

Neutral
24% 45 to 59
The above graph represents the consideration of brand
Important
45%
image factor where for 45% sample from age group of 45 to
59, consider brand image factor is important for buying
Most Important
31% mutual fund brand image.

49
 Table No. 2.6.7 Diversification

Factors based on the importance for you, investments while buying

Mutual Fund- Diversification
Frequency Percent Valid Percent Cumulative
Percent
Neutral 15 21.4 21.4 21.4
Important 39 55.7 55.7 77.1
Valid
Most Important 16 22.9 22.9 100.0
Total 70 100.0 100.0

Graph No. 6.7 Diversification

DIVERSIFICATION
20
18
16
14
12
10
8
6
4
2
0
Neutral Important Most Important

Age 24 to 34 Age 35 to 44 Age 45 to 59

Interpretation:
The above graph shows the importance of the factor diversification among different age group.
Diversification is most important factor for the age group from 45 to 59 as per the study. Whereas,
age group from 35 to 44 gives neutral importance to diversification.

50
 Table No. 2.7 Are you satisfied with the service provided by your investment company

regarding Mutual Fund?

Satisfied with the service provided by your investment company regarding Mutual
Fund
Frequency Percent Valid Percent Cumulative
Percent
Dissatisfied 4 5.7 5.7 5.7
Neutral 32 45.7 45.7 51.4
Valid Satisfied 31 44.3 44.3 95.7
Extremely Satisfied 3 4.3 4.3 100.0
Total 70 100.0 100.0

Graph No. 7 Are you satisfied with the service provided by your investment company

regarding Mutual Fund

3%
Extremely
Satisfied
46% 4%
Dissatisfied
Neutral
47%
Satisfied %
Interpretation:
%
From graph we conclude that Satisfaction Level of Service Provide by your investment Company for
Mutual fund.

47% are Satisfied with Service provide by the investment Company for Mutual fund.

46% are Neutral with service provide by the investment Company for Mutual fund.

4% are Dissatisfied with service provide by the investment Company for Mutual fund.

3% are Extremely Satisfied with service provide by the investment Company for Mutual fund.
51
 Table No. 8 Do like to start business of Mutual Fund?

Like to start Mutual Fund Business

Frequency Percent Valid Percent Cumulative
Percent
Yes 59 84.3 84.3 84.3
Valid No 11 15.7 15.7 100.0
Total 70 100.0 100.0

Purpose of asking question; for knowing that the interest of respondent to start the business of
Mutual Fund.

Graph No. 2.8 Like to start business of Mutual Fund

91.5% 8.5%
INTERPRETATION:

From the above graph, I considered that as per the interest of respondent almost all are the male
who wishes to start the business of Mutual Funds as compared to women.

52
 Table No. 9 Do you enrol with NJ INDIA INVEST?

Enrol with NJ India Invest

Frequency Percent Valid Percent Cumulative
Percent
Yes 45 64.3 64.3 64.3
Valid No 25 35.7 35.7 100.0
Total 70 100.0 100.0

Purpose of asking question; is to know that

Graph No. 2.9 Do you enrol with NJ INDIA INVEST

Interpretation:

From the above diagram we can come to know that from the 70 respondents: 64.3% of them

would like to enrol themselves with NJ INDIA INVEST. And rest 35.7% would not wish to enrol

themselves with NJ INDIA INVEST.

53
 Results and Findings

Before undergoing my summer training at NJ INDIA INVEST. We were not so familier with
Mutual Funds and its concept. During the first week we were given the detailed knowledge
about mutual fund. We had training under by Mr. Rahul Thakur (Unit Manager) and Mr. Mehul
Trivedi (Branch Manager) at Vadodara office. We were told to go in the field with sales
executives of the company and closely observed the conversation between the client and a
sales executive. This was a part of our training to learn how to deal with customers and how
to recommend them Mutual Fund as a Business as per their requirements. From this practical
training even we came to know about, what were the questions arising in the minds of clients.
This training provided us the confidence required to deal with clients. We were providing
mutual fund advisory to various clients during my summer training.

After this we were allowed to deal independently with the clients on behalf of the company.
We met various clients such as chartered accountants, professionals and insurance agents.

 From analysis I come to know that majority male investors are like to start business of mutual
funds.
 52.54% investors who like to start Mutual Fund Business are from Insurance Sector.
 People under the age group of 35-44 are more interested in starting Mutual Funds Business
and also people under the age group of 24-34 give importance to starts Mutual Funds.
 Some of the respondent who were ready to start Mutual Fund were having queries related to
GST due to lack of knowledge.
 Many of respondent was not aware about what NJ INDIA INVSET is.
 Some of the chartered accountants were not at all willing to invest or even advise their clients
to invest in mutual funds because of their bitter experience.
 Age group from 24 to 34 are prevent to invest due to lack of knowledge.
 Some from sample of age group from 24 to 34 who were aware about Mutual Fund showing
lack of confidence in service being provided.
 When market is ups and down nature it is better to invest their money through SIP (Systematic
Investing Planning).
 SIP (Systematic Investing Planning) is monthly investment so when there are salaried person
who have limited saving that is why SIP is good for them.

54
 Limitation

There are few limitations which are related to this study & made it difficult to take up research.

Reasons are as follows:

 The lack of information source for the analysis part.

 I found that financial advisors were somewhere finding difficulty while filling up
questionnaire.
 Due to time constraint i was not able to visit other financial advisors and get feedback from
them.
 There were some financial advisors who were for the sake of filling used to fill the
questionnaire.
 There was a time constraint and did not get few exact response that was required.

55
 CONCLUSION

I feel very pleased to conclude my project report. It was a nice experience from both the part that is
knowledge as well as practical aspect. The mutual fund industry is in growth phase in India.

Still the many Investors are not aware about the mutual fund that is a poor indicator for this
industry. So the main task to change this attitude by creating awareness programs like Client
meetings by NJ Wealth and sending representatives to meet them personally so as to clarify this
doubt’s and confusion’s.

But there is a hope for this industry as Independent Financial Advisors are changing their attitude
and suggesting their investors to invest in this industry and also people themselves are coming
forward to invest in mutual fund as they are getting better return and also it offers a wide variety of
schemes to invest into according to their need. AMC’s and their distributors are helping them.

NJ INDIA INVEST has a long path to walk at present it enjoys a lead over other distributors in
Asia. It has developed a long-term relationship and a profitable business with is team of
Independent Financial Advisors by providing excellent service and guidance.

56
 ANNEXURE

I, Jagpal Rohra, student of C. K. Shah Vijaypurwala Institute of Management, is undertaking a rese

arch project on to understand investor’s preference for various investments options with
special reference to Mutual Fund. I assure you that this information will be kept confidential.

_____________________________________________________________________________

Personal Details:-

Name: ______________________________

Contact Number: ______________________________

Occupation: ______________________________

Gender: Male Female

Age:

24 to 34 35 to 44

45 to 59 60 & more

1) From the following, in how many products you have invested in?

Insurance Mutual Fund

Real Estate Fixed Deposit

Shares Gold

Bond Others

2) Are you aware about Mutual Fund?

Yes No

3) Do you think Mutual Fund are a destination for high return investments?

Yes No

4) From which source you came to know about Mutual Fund?

Broker

Friends/Relative

Television/Newspaper

Other (please specify) __________________

57
 5) Are you aware about the different ways of investing into the Mutual Fund?

Yes No

6) Which kind of investing you like the most?

LumpSum SIP (Systematic Investment Planning)

7) Rate the following factors based on the importance for you, investments while buying a Mutual
Fund?

Factors Least Not Neutral Important Most

Important Important Important
Liquidity
High Return
Professional
Management

Risk
Price
Brand Image
Diversification

8) Which factors prevent you to invest in Mutual Fund? (Rank from 1 to 5, rank 1 to your preferred
choice and rank 5 to least preferred)

Bitter Past Experience

Lack of Knowledge

Lack of confidence in service being provided

Difficulty in selection of schemes

Inefficient investment advisors

9) How much are you satisfied with the service provided by your investment company regarding M
utual Fund?

Extremely Dissatisfied

Dissatisfied

58
 Neutral

Satisfied

Extremely Satisfied

10) Would you like to start Mutual Fund Business?

Yes No

11) Do you want to Enroll with NJ India Invest?

Yes No

59
 BIBLIOGRAPHY

Websites
Stock/Share Market Investing - Live BSE/NSE, India Stock Market Recommendations and Tips,
Live Stock Markets, Sensex/Nifty, Commodity Market, Investment Portfolio, Financial News, Mutual
Funds. (n.d.). Retrieved August 06, 2017, from http://www.moneycontrol.com/

Stock/Share Market Investing - Live BSE/NSE, India Stock Market Recommendations and Tips, Live
Stock Markets, Sensex/Nifty, Commodity Market, Investment Portfolio, Financial News, Mutual Funds.
(n.d.). Retrieved August 06, 2017, from http://www.moneycontrol.com/

Mutual Funds India | Investment Plans | Tax Saving | Mutual Funds Nav. (n.d.). Retrieved August 06,
2017, from http://www.amfiindia.com/

Securities and Exchange Board of India. (n.d.). Retrieved August 06, 2017, from http://www.sebi.com/
Financial Products Distributor Network.

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