INSTITUTIONAL TRAINING

AT

PRIYADHARSHINI & ASSOCIATES

Submitted by
INDRAJIT.B.S

Reg. No: 19BCP019

In Partial fulfillment for the award of the degree of

BACHELOR OF COMMERCE WITH PROFESSIONAL ACCOUNTING

GRD SCHOOL OF COMMERCE AND INTERNATIONAL BUSINESS

Dr. G.R. DAMODARAN COLLEGE OF SCIENCE

(Autonomous, Affiliated to the Bharathiar University and recognized by UGC)

Re-accredited at ‘A’ Grade Level rating by the NAAC and ISO 9001:2008 certified

Coimbatore-641014

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CERTIFICATE
 GRD SCHOOL OF COMMERCE AND INTERNATIONAL BUSINESS

DR. G.R. DAMODARAN COLLEGE OF SCIENCE

(Autonomous, affiliated to the Bharathiar University and recognized by UGC)

Re-accredited at ‘A’ Grade Level rang by the NAAC and ISO 9001:2008 cerfied Coimbatore
641014

This is to certify that this Institutional Training is done at PRIYADHARSHINI &

ASSOCIATES submitted by INDRAJIT.B.S, (Reg. No: 19BCP019) submitted in partial

fulfilment of the requirements for the award of the certification of Bachelor of Commerce with

Professional Accounting, in October 2021.

TUTOR CO-ORDINATOR

HEAD OF THE DEPARTMENT / DIRECTOR

Submitted for viva voice examination held on

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Internal Examiner External Examiner
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DECLARATION
GRD SCHOOL OF COMMERCE AND INTERNATIONAL BUSINESS
Dr. G.R DAMODARAN COLLEGE OF SCIENCE
 (Autonomous, affiliated to the Bharathiar University and recognized by UGC)

Re-accredited at ‘A’ Grade Level rating by the NAAC and ISO 9001:2008 certified
Coimbatore-641014

~~~~~~~~

I, INDRAJIT.B.S, hereby declare that the Institutional training report at

PRIYADHARSHINI & ASSOCIATES submitted to GRD School of Commerce and

International Business, Dr. G. R. Damodaran College of science, Coimbatore in partial of

the requirements for the award of the degree of Bachelor of Commerce with

Professional Accounting, is a record of original work done by me and it has not formed

the basis for the award of any Degree/Diploma/Associate ship/ fellowship or other similar

title to any candidate in any university.

Place: Coimbatore

Date:

INDRAJIT.B.S
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ACKNOWLEDGEMENT

I wish to express my sincere gratude to the management of Dr. G.R.

Damodaran College of Science for giving this wonderful opportunity to gain

management knowledge in their esteemed organizaon.

 My special thanks to the principal of our college Mrs. Dr. T.Santha M.Sc.,

PGDCA, M.Phil. (CS), Ph.D. (Computer Science), for her support in allowing me to

complete my project successfully.

I also wish to express my deep sense of gratude to our respected Director, Dr. K.

K. Ramachandran, M.com., PGDFT., M.Phil., MFT., MBA., Ph.D.(Commerce), MIMA

(India), Ph.D.(Management) for his unfaltering faith in his students and providing us with

new ways to excel in the field of commerce.

I express my deepest thanks to the Head of the Department, Dr. S. Dhanraj

M.com., M.Phil., Ph.D., School of commerce and internaonal business for his support and

guidance.

I would like to extend my sincere gratude to our Co-ordinator and all the faculty

members of Bachelor of Commerce with Professional Accounng for taking part in useful

decisions and giving necessary advice and guidance which were extremely valuable.

I sincerely express my thanks to the management of PRIYADHARSHINI ASSOCIATES for

allowing me to do an internship project in their esteem organizaon. I also extend a huge thanks to

my parents, friends and the almighty for having supported me in doing this project
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SL.NO CHAPTERS PAGE.NO

1 INTRODUCTION 7

2 EARNINGS FROM MUTUAL FUND 9

3 TYPES OF MUTUAL FUNDS 9

4 MUTUAL FUND FEES 11

5 DEPOSITARY PARTICIPANT 12

6 SERVICE STANDARDS 13

7 ACCOUNT OPENING 14

8 DEMAT PROCESS 15

9 TRADING AND SETTLEMENT 15

 10 GENERAL SERVICES 15

11 ADITYA BIRLA MONEY LIMITED 16

12 LEARNING EXPERIENCE 17

13 CONCLUSION 18

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INTRODUCTION

A mutual fund is a type of financial vehicle made up of a pool of money collected from many
investors to invest in securities like stocks, money market instruments, bonds and other assets. A
mutual funds portfolio is structured and maintained to match the investment objectives stated in its
prospectus .Mutual funds are operated by professional money managers, who allocate the
assets of the fund and endeavor to produce capital gains or income for those who invested in the
fund.

Mutual funds give small or individual investors access to diversified, professionally managed
portfolios at a low price.

Mutual funds are divided into several kinds of categories, representing the kind of securities they
invest in, their investment objectives, and the type of returns they seek.

Mutual funds change annual fees (called expense ratio) and, in some case, commissions, which
can affect their overall returns.
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Normally, stocks (also known as equities) give voting powers to its holders. But, mutual fund
shares do not give its holders any voting powers because when one buys a share or a unit of
mutual fund, he is buying the performance of its portfolio or more precisely a part of the
portfolio’s value.

A share of a mutual fund represents investments in many different stocks(or other securities)
instead of just one holding. That is why the price of a mutual fund share is referred to as the Net
Asset Value (NAV) per share.

A fund’s NAV is derived by dividing the total value of the securities in the portfolio by the total
amount of shares. Outstanding shares are those held by all shareholders, institutional investors,
and company officers or insiders.

Mutual fund shares can typically be purchased or redeemed as needed at the funds current NAV,
which unlike a stock price does not fluctuate during market hours, but it is settled at the end of
each trading way.
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EARNINGS FROM MUTUAL FUND:

Investors typically earn a return from a mutual fund in three ways

1. Income is earned from dividends on stocks and interest on bonds held in the fund’s

portfolio. 2. If the fund sells securities that have increased in price, the fund has a capital gain.

Most funds also pass on these gains to investors in a distribution.

3. If fund holdings increase in price but are not sold by the fund manager, the fund’s shares
increase in price. The investor can then sell his mutual fund share for a profit in the market.

TYPES OF MUTUAL FUND:

Mutual funds are divided into several categories, representing the kinds of securities they have
targeted for their portfolios and the type of returns they seek. The following are the common
types of mutual funds:

1. Equity Funds:

This sort of fund invests principally in stocks. The largest category of Mutual fund is that of
equity or stock funds.

2. Fixed Income Funds:

This type of fund focuses on investments that pay a set rate of return, such as government bonds,
corporate bonds or other debt instruments. These funds are sometimes referred to as bond funds.

3. Index Funds:

The investment strategy is based on the belief that it is very hard, and often expensive, to try to
beat the market consistently. So, under Index funds, stocks that correspond with a major market
index are bought.

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4. Balanced Funds:

Also known as Asset Allocation Funds, the objective is to reduce the risk of exposure across asset
classes and hence investment is made in a hybrid of asset classes, whether stocks, bonds, money
market instruments, or alternative investments.

5. Money Market Funds:

The money market consists of safe (risk free), short-term debt instruments, mostly government
treasury bills.

6. Income funds:

Income funds are named for their purpose: to provide current income on a steady basis.
Investment is done primarily in government high-quality corporate debt, holding these bonds until
maturity in order to provide income streams.
7. International/Global funds:

An International Fund (or foreign fund) invests only in assets located outside one’s home country.
Global funds, meanwhile, can invest anywhere around the world, including within one’s home
country.

8. Specialty Funds:

These funds concentrate on a certain segment of the economy or a targeted strategy. These
include sector funds, which are aimed at specific sectors of the economy such as financial, health,
technology and so on. Another category is regional funds which focus on a specific geographic
area of the world.

9. Exchange Traded Funds (ETF):

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These funds are structured as investment trusts that are traded on stock exchanges and have the
added benefits of the futures of stocks.
MUTUAL FUND FEES:

Mutual fund fees are either annual operating fees or shareholder fees. Annual fund operating fees
are an annual percentage of the funds under management, usually ranging from 1% to 3%

Shareholders fees come in the form of sales charges, commissions and redemption charges.
These are paid directly by the investors when purchasing or selling the funds

PROS AND CONS OF MUTUAL FUND:

The pros and cons of mutual funds can be summed up as below:

Pros:

*Liquidity

*Diversification

*Minimal investment requirements

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*Professional management

*Variety of offerings
Cons:

*High fees, commissions and other expenses

*Large cash presence in portfolios

*Difficulty in comparing funds

*Lack of transparency in holdings.

DEPOSITORY PARTICIPANT (DP):

Depository Participant is a business partner of National Securities Depository Ltd (NSDL)

and the relationship between the DP and NSDL is governed by an agreement made between the
two under the Depositories Act. Under the Depositories Act 1996, a DP is described as an agent
of the depositary. A DP is an entity registered with SEBI (Securities and Exchange Board of
India) under the provisions of the SEBI (Depositories and Participants) Regulations, 1996. As per
the provisions of these regulations, an entity can offer depositary-related services only after
obtaining a certificate of registration of SEBI as a depository participant.

Some of the important aspects of functioning of DP are:

*The DP must enter into an agreement with a client before acting as a participant on his behalf.

*While conducting any business with a client, a DP acts as an agent of NSDL and is liable to the
clients for all the acts and deeds performed by it.

*The DP should open a separate account in the name of a client i.e. a beneficial owner

*Securities should be transferred to or from a beneficial owner's account only on receipt of

instructions from the beneficial owner.

*The DP should provide a Transaction Statement to the beneficial owner as laid down in the
agreement with the beneficial owner.

*The DP should reconcile its regards with NSDL on a daily basis.

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*The DP should take appropriate insurance cover to ensure losses arising from any possible
business risk and system failure

*The DP should maintain and preserve the records and documents for a minimum period of five
years.

*The DP should ensure the integrity of the data processing systems.

SERVICE STANDARDS:

This branch follows the service standards required as per The Depositories

Act. *The front office ambiance is pleasant

*Office timings is displayed

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*List of services offered from the branch is displayed

*Modern communications technology is available.

ACCOUNT OPENING:
We all know that in any service industry the first point of contact is the most important point in
customer relationship management. For investors in the mutual fund industry the process of
account opening is the first interaction with a DP. This is the stage at which the client interacts
with the DP. This is the stage at which the client interacts with the DP and one that will make a
permanent impression about the servicing capabilities of the depository participant. Also, this is
the stage at which the client may have several questions that need to be answered and proper
guidance provided. The client is given personal attention and helped in completing the account
opening formalities without difficulty. The branch ensures that the client is made aware of the
structure of fees for the services and other conditions are explained in detail.

The following are the points to which the branch gives special attention:

*Explain the information to be given in the application form

*Clarification to be given on the items like introduction, nomination, standing instructions, PAN
number, importance of correct and complete bank account and address details.

*In the case of joint accounts, NRI (Non Resident Indians), HUF (Hindu Undivided Family)
accounts care is taken to clarify all details

*The facility of standing instruction is provided in the account opening form for ease of operation
and elimination of redundancies. This facility enables clients to give standing instructions to DP,
at the time of opening the account itself for receiving securities to the credit of their accounts
without any further instruction from them.

*the branch assures the client the time by which the account will be opened and the
account number communicated to the client

*The “Delivery Instructions book” with pre-printed serial number of the slips stamped with
Client-ID is handed over. The client is made aware of the need and reasons to take care in
preserving and using the book. Nowadays, thanks to technology development online trading is
being enabled through laptop/mobile phones.

*Various other procedures for trading through online or at the branch and other forms used in the
depository system are explained to the client.

*A copy of the agreement including schedule of charges is given to the client.

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DEMAT PROCESS:

The demat process requires defacing of securities which will make the security certificate
undeliverable unless the demat formalities are completed. Therefore, the client is assisted in
ascertaining whether the securities in question are available for dematerialisation. Clients are
helped in filling up the demat request properly.
TRADING AND SETTLEMENT:

This is an area where the branch takes immense care while accepting and processing request for
transfer of securities from the account of the client to another account. The following aspects are
generally kept in mind:

*Signature of the client matches with the records of the DP.

*In case of joint accounts, signatures of all holders are obtained.

Since most of the clients opt for trading through their laptop / mobiles, procedures and
precautions to be taken are clearly explained to the clients. Most importantly, secrecy of
password, not allowing unauthorised persons to misuse the laptop /mobiles are highlighted to
ensure safety and privacy of transactions.

GENERAL SERVICES:

The following factors in general services are given importance.

*Timely issue of transaction statements. This aspect is nowadays taken care of by computer
systems.

*30 days notice to clients regarding changes in the structure of fees is

given. *Providing an updated list of companies available for demat.

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*Giving an acknowledgement for any document that a client submits.

*Giving the client feedback on the status of his instructions, especially failed transactions
providing a list of companies with poor performance in confirming demat requests.

*Providing complete and timely information to the client about the new services / facilities
introduced by the depositary and / or DP.

It is ensured that all the operations of the DP are conducted with transparency and consistent
service attitude to faster continuity in the business relationship, as this is absolutely essential in a
competitive environment.
ADITYA BIRLA MONEY LTD:
This is a part of Aditya Birla capital who are engaged in insurance, mutual funds, stocks and
securities, wealth management, pension funds, real estate investments, financing, and advising on
money planning etc., This branch situated in Kotagiri mainly deals with Mutual fund. This branch
was opened in 2003 and undertakes activities in mutual fund. The branch has a branch manager
and two other employees. The ambience of the office is good and equipped with the needed
technology.

The staff have adequate knowledge about mutual fund operations and in computer operations.
The following are the major points observed:

*The fund schemes seek to provide tax efficient return on clients capital through equity
investments over a longer term. Could be ideal for investors who are planning for future
expenses, like children’s higher education, marriage, retirement etc.,

Available in the range of aggressive to conservative options to suit the needs of the investor.

*A hybrid fund invests in a mix of growth oriented equity, capital preserving debt and other
assets related instruments, which can vary proportionally over time or remain fixed.

*Other schemes include Aggressive Hybrid, Conservative Hybrid, Equity, Dividend yield, Multi
care, Focused, Index, Large and midcap, Largecap, Multicap, Sectoral, Small cap, Thematic,
Value, ETF, FOF(Overseas / Domestic), Banking and PSU debt, Corporate bond, Dynamic bond,
Guilt, Liquid, Money market etc.,

The Q2 FY22 results of Aditya Birla Capital results are as under:

Revenue Rs.5961 crores compared to Q2 FY21 of Rs.4885 crores an increase of

22%. PAT at Rs.377 crores compared to Rs.264 crores in Q2 FY21, an increase of

43%.

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LEARNING EXPERIENCE:

My experience as a learner in the PRIYADHARSHINI & ASSOCIATES branch has been very
exciting. In the beginning of Internship, I was introduced to the concept of Mutual fund by the
Branch Manager. He explained how the Mutual fund system operates and the different types of
Mutual fund. Then, the fees structure of the company was explained in detail. Thereafter in the
later days of internship I was given the opportunity to sit alongside the operating staff when the
investors account was opened.
It was interesting to be present when the staff interacted with new investors. The documents
called for opening the demat account were shown to me for better understanding. The important
documents called for include aadhar, PAN card etc., I was also given an opportunity to discuss
with the new investor for filling up the Application Form of Demat account.

The Branch staff explained about the NSDL Application Software being used by them. In short
the server used by them is intel PIII with CPU speed of 800 MHz as far as Hardware is concerned.
The Software is MS Windows 2000 server. The NSDL application software is upgraded from time
to time. During the days of Internship I could learn how the demat accounts are opened, Trading
accounts opened and how settlement is done.

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CONCLUSION:

I thank Mr. G. Kamaraj, Office head/ Authorised person, Retail Broking and Distribution of
PRIYADHARSHINI & ASSOCIATES,COIMBATORE office for having given me an opportunity
to sit with the office staff to learn the day to day operations in Mutual funds. I thank the other staff
members and the Authorised person for the care taken to ensure that I understand the operations
and the way they’ve taught me. They have been so polite and caring during the period of
Internship .I could get hands-on training through them. The Internship helped me to understand
the Mutual fund concept in a better way and the practical aspects involved in dealing with the
investors, other clients and the operations. During the period of Covid-19, all the staff members,
the visitors and myself have observed the precautions prescribed by the Government such as
wearing a mask, keeping social distance, and frequently sanitizing. Thanking you .
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