A study on Need of Financial Advisor for Mutual Fund

Investors
at

Prudent Corporate Advisory Services Ltd

Summer Internship Project Report

Submitted

In The Partial Fulfilment of The Degree Of

Master of Business Administration

Semester-III

Shah Suketu Yashavantbhai

Under the Guidance of

Dr C P Thakor

Assistant Professor

S.K.SCHOOL OF BUSINESS MANAGEMENT

PATAN, HNGU

Submitted To

(JULY – 2024)
CONFIRMATION LATTER OF COMPANY

II
 CERTIFICATE BY THE GUIDE

This is to certify that the contents of this report entitled “A study on need of financial advisor
for mutual fund investors” SHAH SUKETU YASHAVANTBHAI Submitted to
S.K.SCHOOL OF BUSINESS MANAGEMENT for the Award of her Master of Business
Administration (MBASemester-III) is Original Research work Carried Out by Her under my
Supervision.

This Report has not been Submitted either partly or fully to any other university or Institute for
award of any degree or diploma.

DR. C.P.THAKOR

ASSISTANT PROFEESOR

S.K.SCHOOL OF BUSINESS MANAGEMENT

PATAN,HNGU

Date:

Place: S.k.school of business management

III
 CANDIDATE’S SATEMENT

I hereby declare that the work incorporated in this report entitled “a study on need of
financial advisor for mutual fund investors” in partial fulfillment of therequirements
fortheawardofMasterof Businessadministration(Semester- III) istheoutcomeof original
study undertaken by me and it has not been submitted earlier to any other University or
Institution for the award of any Degree or Diploma.

Shah suketu yashavantbhai

Date:
Place:

IV
 PREFACE

This project report has been prepared in the partial fulfilment of the requirement for mutual
funds. for preparing the report, I have reviewed different papers on subject of “a study on need
of financial advisor for mutual fund investors” And had collected primary and secondary
data to avail necessary information. the blend of learning and knowledge acquired our practical
studies in the field or research is presented in this project report.

The main focus and study on the topic of a study on need of financial advisor for mutual fund
investors is investment is awareness, attitude, future action plan and reason, I have put up my
best efforts and enumerated every possible information after conducting the Research to make
this report a satisfactory report.

It was great opportunity and memorable experience to learn new facets and practical knowledge
about research through carrying it out research. Collecting information about above mentioned
subject and interacting with people for data collection.

Lastly, I have tried my level best to prepare the best informative report.

V
 ACKNOWLEDGEMENT

The internship opportunity I had with prudent corporate advisory services Ltd. was a great
chance for learning and professional development. Therefore, I consider myself as a very lucky
individual as I was provided with an opportunity to be a part of it. I am also grateful for having
a chance to meet so many wonderful people and professionals who led me though this
internship period. It was an opportunity to undertake a survey and prepare project report

“a study on need of financial advisor for mutual fund investors” We learnt many
interesting things during the survey while preparing the project report. I would hereby take this
opportunity to show our gratitude towards all the respondents who provided information during
the survey. A good response, feedback and co-operation given by them helped us in gaining
knowledge and solving my queries. I convey our sincere thanks to all them. The prudent
corporate advisory services Ltd of [ Mr. ketanbhai limbachiya Branch Manager],
[Mr.darshanbhai modi] Relationship Manager] for their careful and precious guidance which
were extremely valuable for my study both theoretically and practically. I express my deepest
thanks to my Mentor [Dr C P Thakor], for taking part in useful decision & giving necessary
advices and guidance and arranged all facilities to make life easier. I choose this moment to
acknowledge his contribution gratefully.

I perceive as this opportunity as a big milestone in my career development. I will strive to use
gained skills and knowledge in the best possible way, and I will continue to work on their
improvement, in order to attain desired career objectives. Hope to continue cooperation with
all of you in the future, sincerely,

Shah suketu yashavantbhai

VI
 EXECUTIVE SUMMARY

Chapter I

This chapter consists of information about the Mutual fund Industry and its global and Indian

Scenario, SWOT and PESTEL analysis of the industry, and future outlook of the industry, etc.

Chapter II

This chapter includes information about Prudent corporate advisory services Ltd

Company Limited And its history, SWOT and PESTEL analysis, and other information related
to the company.

Chapter III

This chapter discussed the Review of Literature of the study which helps to measuring the
impact mutual fund Investors.

Chapter IV

This chapter describes the research methodology of the project; this includes the research

Objective, problem statements, data collection, research framework, and research design Etc.

Chapter V

In this chapter, the analysis of the collected data and appropriate interpretation of the analysed

Data is described.

Chapter VI

This chapter includes a conclusion related to this project and the analysis of the data and the

Findings of the study

VI
I
 INDEX
Table of contents
Confirmation Latter Of Company ................................................................................................... I
Guide Certificate ................................................................................................................................ II
Candidate’s Statement… .................................................................................................................. III
Preface ................................................................................................................................................ IV
Acknowledgements… ......................................................................................................................... V
Executive Summary… ........................................................................................................................VI
List of figures… ................................................................................................................................ VII

Chapter-1 Introduction to the Industry

1.1 - overview of Industry: mutual fund… ........................................................................................... 1
1.2 - overview of Industry: Global scenario… ..................................................................................... 3
1.3 - overview of Industry: Indian scenario… .......................................................................................4
1.4 - History of Mutual Fund in India… ............................................................................................... 6
1.5 - Growth of The Industry… ........................................................................................................... 7
1.6 - Critical Success Factors… ........................................................................................................... 10
1.7 - Future Outlook… ........................................................................................................................ 13
1.8 – Players… .................................................................................................................................... 13
1.9 - Competitive Landscape .............................................................................................................. 14
1.10- SWOT Analysis.......................................................................................................................... 14
1.11 – PEST Analysis ......................................................................................................................... 16
1.12-Industry Attractiveness (Porter’s Five Forces analysis) ................................................................ 17
Chapter-2 Introduction to the Company
2.1 - Overview of the company: prudent ............................................................................................. 22
2.2 - History of the company .............................................................................................................. 23
2.3 - Key Takeaways .......................................................................................................................... 24
2.4 - Business Segments ..................................................................................................................... 25
2.5 - Company Provides a Platform .................................................................................................... 25
2.6 - Financial Services ...................................................................................................................... 28
2.7 - Six Pillars of Prudent ................................................................................................................... 29

VI
II
2.8 - vision of Prudent ......................................................................................................................... 30
2.9 - Mission of Prudent ...................................................................................................................... 30
2.10 - Risk Factors............................................................................................................................... 31
2.11- SWOT Analysis.......................................................................................................................... 34
2.12 - Organization Structure ............................................................................................................... 35
Chapter-3 Review of Literature
3.1- Research Gap ............................................................................................................................... 37
3.2 -Study Variables ............................................................................................................................ 40
Chapter-4 Introduction of Research topic ........................................................................................ 42
Chapter-5 Research Methodology
5.1- Research Objective ........................................................................................................................46
5.2- Hypothesis of study… .................................................................................................................. 46
5.3 - Scope of the study ....................................................................................................................... 46
5.4 - Research Instrument .................................................................................................................... 47
5.4.1 - structured questionnaire ............................................................................................................. 47
5.4.2 - Measures of study...................................................................................................................... 47
5.5 - Research Methods ........................................................................................................................ 48
5.6 - Research design ........................................................................................................................... 48
5.7 - Unit of Analysis ........................................................................................................................... 48
5.8 - Characteristics of interest ............................................................................................................. 48
5.9 - Data Collection.............................................................................................................................48
5.9.1 - Primary Data ............................................................................................................................. 48
5.9.2 - Secondary Data ......................................................................................................................... 49
5.10 - Sample Size ............................................................................................................................... 49
5.11 - Data collection method ............................................................................................................... 49
5.12 - Type of Information .................................................................................................................. 49
5.13 - Type of questions ...................................................................................................................... 49
5.14 – Summary .................................................................................................................................. 49
Chapter-6 Data Analysis and Interpretation
6.1 - Frequencies of demographic Factors ............................................................................................ 51
Chapter-7 Findings, Suggestion, Recommendations & Limitations
7.1- Findings ....................................................................................................................................... 61
7.2 - Recommendations and Suggestion ............................................................................................... 62

IX
7.3 -Limitations .................................................................................................................................. 63
Chapter-8 Conclusion....................................................................................................................... 64
Reference .......................................................................................................................................... 66
Questionnaire ................................................................................................................................... 68

X
 List of tables

Particular
Frequency of Demographic Factors:
Chapter-6:
6.1 -Gender ................................................................................................................................. 51
6.1 – Age .................................................................................................................................... 52
6.1 - Education........................................................................................................................... 53
6.1 – Location ............................................................................................................................ 54
6.1 – Awareness ......................................................................................................................... 55
6.1 – Attitude ............................................................................................................................. 56
6.1 - Future Action Plan .............................................................................................................. 57
6.1 – Reason ............................................................................................................................... 58

List of figures

Particular
1.12 - Porter Five Force Model .................................................................................................... 18
2.12 - Organization Structure ....................................................................................................... 35

XI
 Chapter-I
Introduction
Mutual fund industry
1. Introduction:

1.1 Overview of industry:

• The Indian financial system based on four basic components like Financial Market,
Financial Institutions, Financial Service, Financial Instruments. All play important role
for smooth activities for the transfer of the funds and allocation of the funds.
• The main aim of the Indian financial system is that providing the efficiently services to
the capital market.
• The Indian capital market has been increasing tremendously during the second-
generation reforms. The first-generation reforms started in 1991 the concept of LPG.
(Liberalization, privatization, Globalization).
• The spared of the banking system has been a major factor in promoting financial
intermediation in the economy and in the growth of financial savings with progressive
liberalization of economic policies, there has been a rapid growth of capital market,
money market and financial services industry including merchant banking, leasing and
venture capital, leasing, hire purchasing.
• Consistent with the growth of financial sector and second generation reforms its need
to fruition of the financial sector. It also needs to providing the efficient service to the
investor mostly if the investors are supply small amount, in that point of view the
mutual fund play vital for better service to the small investors.

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• The main vision for the analysis for this study is to scrutinize the performance of five
star rated mutual funds, given the weight of risk, return, and assets under management,
net assets value, book value and price earnings ratio.
• A mutual fund is a professionally managed investment fund that pools money from
many investors to purchase securities. These investors may be retail or institutional in
nature.
• Mutual funds have advantages and disadvantages compared to direct investing in
individual securities.
• The primary advantages of mutual funds are that they provide economies of scale, a
higher level of diversification, they provide liquidity, and they are managed by
professional investors. On the negative side, investors in a mutual fund must pay
various fees and expenses.
• Primary structures of mutual funds include open-end funds, unit investment trust,
and closed end funds. Exchange traded funds (ETFs) are open-end funds or unit
investment trusts that trade on an exchange. Some close- ended funds also resemble
exchange traded funds as they are traded on stock exchanges to improve their liquidity.
• Mutual funds are also classified by their principal investments as money market funds,
bond or fixed income funds, stock or equity funds, hybrid funds or other.
• Funds may also be categorized as index funds, which are passively managed funds that
match the performance of an index, or actively managed funds.

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1.2 Global scenario:

• A mutual fund is operated by an investment firm that raises money from shareholders
and then invests in a group of assets (equities or fixed income). The mutual fund
portfolio manager invests in accordance with a stated set of objectives (guidelines). The
mutual fund company raises money by selling shares of the fund to the public (usually
there are very few stipulations on who can invest in the fund). Mutual fund managers
then take the money they receive from the sale of the shares (along with any money
made from previous investments) and use it to purchase various investment vehicles,
such as stocks, bonds, and money market
• instruments. Shareholders are free to sell their shares at any time. They can also
exchange their ownership interest for shares in another fund sponsored by the same
fund distributor. Mutual funds try to match or exceed an investment benchmark—the
Standard & Poor’s 500 or Dow Jones Industrial Average, for example.
• Mutual funds have grown increasingly popular in the last 30 or so years because funds
are diversified (which reduces risk), affordable (investors can participate in funds with
as little as $2,000 and invest as little as $50 a month), and liquid (they can be redeemed
any day the financial markets are open), among other benefits. Approximately 53.6
million U.S. households owned mutual funds in 2015, up from 28.4 million households
in 1995 and 12.8 million households in 1985.
• The first mutual fund was started in 1774 in Holland by a Dutch merchant and broker
named Adriaan van Ketwich, according to K. Geert Rouwenhorst in the Originsof
Mutual Funds. A type of mutual fund was introduced in the United States in the late
1800s, but mutual funds did not become popular until the 1920s, when the first mutual,
or “open ended” fund was launched. Mutual funds grew increasingly popular in the
early 1950s, and the total number of funds surpassed 100. By 1990, mutual funds had
become very popular investment options, with shareholder assets topping $1 trillion.
The number of mutual funds worldwide grew from 6,778 in 1997 to 9,520 in 2015. The
Investment Company Institute (ICI) reports that, in 2015, mutual fund companies
managed $18.1 trillion in assets (including those of exchange- traded funds) for more
than 93.1 million U.S. investors. The United States has the world’s largest mutual fund
market, with 48 percent of total net world assets. Worldwide regulated open-end mutual
fund assets were$37.2 trillion at the end of 2015, according to the ICI. The 10 largest
firms managed 56 percent of mutual fund and exchange-traded fund assets in 2015.

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 • There are many rewarding career paths for those interested in the mutual fund industry.
Job opportunities range from financial analysts and research associates, to portfolio
managers and fund accountants, to lawyers and risk managers. Entry-level positions
require at least a bachelor’s degree in finance, accounting, business management, or a
related field. Some firms prefer those with MBAs or graduate degrees in finance,
financial engineering, accounting, or law.
• Mutual fund companies are located throughout the United States, but in 2015, 24
percent of fund industry workers were employed in Massachusetts and New York. Fund
companies in California, Pennsylvania, and Texas employed 25 percent of fund
industry workers.
• Diversity remains a problem in the industry. In 2015, only 9.4 percent of fund managers
were women, according to Morningstar, Inc., which provides stock market and final
industry analysis and data. These female fund managers exclusively managed about 2
percent of the industry’s assets and open-ended funds
• The ICI reports that 174,000 people worked for U.S. investment companies (mutual
funds, closed-end funds, exchange-traded funds, and unit investment trusts) in 2015.
Fund industry employment grew 53 percent from 1997 to 2015. Job opportunities for
those who work in the mutual fund industry are expected to be good during the next
decade. Employment for financial analysts (including portfolio managers and fund
managers) who work for securities, commodities, and other financial investment and
related firms is expected to grow much faster than the average for all careers from 2014
to 2024, according to the U.S. Department of Labour.

1.3 Indian scenario:

• 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 of India. 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 in 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

4
 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 crores of assets under
management.

Second Phase - 1987-1993 (Entry of Public Sector Funds)

• 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 June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab National
Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), 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 crores.

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 1993 SEBI (Mutual Fund) Regulations were substituted by
a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996.
• The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and the industry has witnessed several mergers and
acquisitions. 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.

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 Uni Trust

5
 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 Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and does not come
under the purview of the Mutual Fund Regulations.

1.4 History of Mutual Funds In India:

• A robust financial market with funds flowing from retail investors is essential
for a developed economy. First mutual fund was set up in 1963, by Unit Trust
of India (UTI), at the initiative of the Government of India and RBI with a view
to boost savings and investments.
• Participation in the income, profits and gains earned by UTI from the
acquisition, holding, management and disposal of securities was made available
to retail investors

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1.5 Growth of the Industry:

Demand determinants:

• Apart from market gains and management skills of the fund manager being the obvious
factors affecting the performance of a mutual fund, there are several other factors which
determine the same.
• A mutual fund is an investment portfolio which is professionally managed by a fund
manager or fund house. Mutual funds are best known for portfolio diversification as
they consist of a mixture of bonds, stocks, and other securities. Such diversification
also spreads the risk across the investment making it almost negligible in the long run.
There are various other factors affecting the performance of mutual funds, here are a
few of them;

Investment performance and risk:

• The share price and market performance are directly proportional to each other. The
change in the value of funds happens as and when any kind of change happens in the
market. Because of diversification, the portfolio risk is spread across a number of
securities making it lesser volatile as compared to the other direct investments like stock
making it less risky. Although the returns from mutual funds are not as high as from
the stock investments, the risks are not as high as investing in stocks directly.

Sector Performance:

• Sector performance is another important factor determining the performance of any

mutual fund. If the sector is performing well, so will the stocks of your funds. For
instance, since there is a lot of construction happening infrastructurally across the
nation, the price of raw material like cement, iron etc. are bound to go up due to
increased demand. Hence the share price of them will also shoot up. So for the people
who have invested in cement companies will enjoy greater returns. Similar is the case
for all other raw material providing companies.

Expense ratio and management fees:

• Management fees and expense ratio are two costs which directly affect your returns or
gains. The gain you earn on any particular fund is total gain minus management
expenses and fees (profit earned= total gain- expenses- management fees). According

7
 to a study conducted by the New York Times, the fund houses charge 1.44 percent on
an average per year.

Cash flows:

• More investors mean more money, in such scenario when there are plenty of investors
investing in a particular stock, it gives the fund manager an opportunity to further
diversify the portfolio and invest in larger quantities of funds which provide better
returns. The cash flows from investors hence determine the performance of the fund as
well as a fund manager. In tough times when the fund is performing badly, most of the
investors pull back their investment; the manager is bound to sell off the holdings
decreasing the overall cash flow.

Fund size:

• The next factor influencing the performance of a fund is its size. The larger the fund
size, the more skills it requires. Just like any other responsibility, increasing the fund
size would mean increasing the responsibility and onus on the fund against its investors.
The size of a fund has a finite limit beyond which it will become difficult to be handled.
A poorly managed large fund is not a good choice to make with your hard-earned
money. Once this limit of the fund is reached and the fund house has reached its
saturation, it may call it a ‘Soft closure’ which means no more investments would be
taken against that particular fund. Now it becomes the responsibility of the investor to
read the details carefully regarding the funds they wish to invest in. A poorly managed
large fund is not a good choice to make.

savings’ oriented culture

• India is a country of savers. Our household savings rate stands at around 20% of the
GDP, which translates to about Rs.30 lakh crore.
• The latest trends show that investors are moving away from physical assets such as gold
and real estate to financial assets. A few years ago, 60% of the investments were in
physical assets and only 40% in financial assets, this has changed to 50-50 now.
• While the shift of 10% looks small, it translates to Rs.3 lakh crore moving into financial
sector.

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Composition of the savings pie

• Banks still constitute major portion of household savings with 45% share. However,
this share has reduced substantially by 14% over the last few years. Many people are
increasingly investing their money in financial assets such as mutual funds and
insurance.
• To put this change in perspective, a few years ago, mutual fund investments equalled
7% of the bank deposits. Now, they stand at 19% of the bank deposits.

Increasing allocation to equity

• In FY 2013-14, the mutual fund industry was largely a debt industry with debt AUM
of Rs.4 lakh crore of the total industry AUM of Rs.6 lakh crore. This has undergone a
sea of change in the last four years. For instance, the industry’s debt AUM was Rs.8
lakh crore while the equity AUM grew to Rs.9.20 lakh crore in the FY 2017-18. I
believe that this will increase profitability for the industry.

Growing retail participation

• The last few years saw increasing participation of retail investors through SIP route.
While the industry received Rs.3,100 crore through SIP two years ago on a monthly
basis, we are now receiving close to Rs.7,500 crore a month through SIPs, largely into
equity funds from retail investors. In addition, the longevity of SIP accounts has
increased over the years. Currently, over 55% of SIPs are active for five years.

Broad based growth

• In October 2012, SEBI introduced B15 cities to encourage mutual fund penetration.
This has led to geographical diversification of industry’s assets. Currently, B15 assets
are growing faster than T15.
• Globally, mutual funds account for 62% of GDP. However, in India, the number is just
11%. In addition, the mutual fund industry constitutes just 5% of the total market
capitalisation. This shows tremendous growth potential for the industry.

9
 • the mutual funds industry growth in India of the growth in financial year of 1965 in
assets of 0.3 and financial year of 1987 in assets of 46 then financial year of 1993 in
assets of 470 , 2003 in assets in 1218, financial year 2008 in assets of 5052 , Medal
financial year of 2009 -2010-2011-2012-2013- in assets of 4173 , 6140 ,5923, 5877
,7025 in mutual funds management of India and financial year is sources of 2014 of
assets under management of 8252 and 2015 of assets 10828 ,2016 assets of 12326 and
2017 assets of 17546 ,2018 financial year of sources of management of mutual funds
of 21360 and final last financial year 2019 -2020and 2021 of sources in management
of assets in 23795 assets 22262 assets and previous year of assets in 31427 of mutual
funds industry (AUM) assets under management growth in India

1.6 Critical success factors of the mutual fund:

• We expect to witness the coming together of multiple factors in the near future, whose
combined power has the potential to catapult the Indian industry to greater heights.
These game changers span multiple domains, and the key ones are listed below:
• Demographic dividend –India is a young nation with 605 million people below the age
of 25. International Labour Organization has predicted that by 2020, India will have
116 Mn workers in the age group of 20-24;
• Increase in the number of HNI and ultra HNI – A recent study by Kotak Wealth
Management has predicted the increase in the number of ultra HNI from current levels

10
 of 137,000 to 348,00 in 2020, along with a corresponding rise in net worth from Rs 128
trillion to Rs 415 trillion;
• Any positive outcome of the evaluation underway of the proposal of using e-commerce
platforms to sell mutual funds when seen in the context of 1bn mobile subscribers and
400 Mn Internet users;
• The opening of 190 million Jan Dhan bank accounts in 15 months through e-KYC and
mobilization of Rs 27,000 crore (about 37% accounts are zero balance accounts) makes
it imperative to evaluate the usage of this route to sell mutual funds;
• Any positive outcome on the decision to use Aadhar as E-KYC for mutual funds and
other financial assets would have a huge impact in increasing the catchment area;
• Granting of approval to 11 payment banks that will be allowed to sell third-party mutual
funds should help increase the market size;
• Usage of big data and analytics and using data-driven models for improving offerings
and customer engagement. These seven factors are powerful when seen in isolation,
and if they were to act in tandem, they have the potential to transform the industry.
• The Indian mutual fund industry is said to have entered a high-growth phase and is
projected to double in size in the next 5 years. This growth, according to KFin
Technology's draft IPO prospectus, will be driven by five major factors ranging from
India's economic growth to tax benefits associated with mutual fund investments.
• Here are the key factors and how they will impact mutual funds positively:

Economic growth

• The report said that mutual fund industry will benefit from the projected 11% growth
in nominal GDP between FY 2021 and FY 2025. "Economic growth, coupled with rise
in middle-income population and increase in financial savings is expected to boost
mutual fund industry in India," it said.

Financial inclusion and investor education

• Regulatory and government initiatives aimed at raising financial awareness among the
masses will lead to higher penetration of mutual funds, the report said. "CRISIL
Research believes that investor education, coupled with better risk management and
transparency within the mutual fund industry will boost investor confidence and lead
to increased investments and growth in the industry."

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Retirement planning and tax benefits

• Retirement planning is an untapped market in India and if channelled through mutual

funds, has the potential to significantly improve penetration among households, said
the report, adding that substantial proportion of young population offers huge potential
for mutual funds in retirement planning.
• Similarly, the tax benefits of ELSS is likely to boost the growth of mutual funds as
more and more people join the formal sector.

Risks and challenges

• Mutual funds may have a lot of growth drivers but they face equal number of challenges
that range from taxation to competition from other financial products.

Stamp duty

• Starting July 1, 2020, a stamp duty of 0.005% is charged on all mutual fund purchases.
The duty has emerged a roadblock in the growth of mutual funds as it makes
transactions costly. "This move has impacted large corporates, which mostly put their
money in liquid funds for shorter periods," the report said.

Downturn or volatility in mutual funds and other market-linked products

• Retail participation and inflows into mutual funds and other market-linked products are
heavily influenced by market performance and sentiment. Any downturn or volatility
could make investors shy away from market-linked products and push them towards
less risky assets, the report said.

Competition from other financial instruments

• ULIPs pose strong competition to mutual funds. "Insurance products such as unit-linked
investment products (‘ULIPs’), which provide dual benefits of protection and long-term
savings, are competing for market share".

High cost of retail expansion

• Expanding into the B30 markets would require substantial investments in marketing
and distribution, which could exert pressure on profit margins of fund houses.

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Political instability or shift away from the pro-growth policy

• Political instability in India or regions across the globe, any harsh protectionist
measures by larger economies, or faster-than-required tightening of monetary policy
could impact growth and global trade, CRISIL said in the report.

1.7 Future Outlook:

• COVID-19 and its economic and social disruptions have given new urgency to the
challenges facing mutual funds. Last year, in our publication mutual fund outlook the
time-to-time act is now. we highlighted trends we expect to see from 2019 to 2025,
such as slower growth and shrinking fees. These trends have all accelerated, and mutual
fund managers need to move even faster to maintain and improve their positions.
• With the pandemic in mind, you may now be rethinking your forecasts and expectations
for the near- and mid-term future. But this isn’t just about playing defence: There are
steps you can take now to help you prosper over the next five years.
• Organic growth in the US mutual fund industry has continued to slow, despite upside
surprises in the overall market. The long-term outlook is under stress, too, from
downward pressure on fees, reduced profit margins and changing investor preferences.
• Adding a pandemic to the list deepens the challenge for asset managers trying to remain
competitive.

1.8 Players

Top Asset management Companies in the industry are

• 1. ICICI Prudential Mutual Fund
• 2. HDFC Mutual Fund
• 3. Aditya Birla Sun Life Mutual Fund
• 4. NIPPOL INDIA Mutual Fund
• 5. SBI Mutual Fund
• 6. L&T Mutual Fund
• 7. Kotak Mahindra Mutual Fund
• 8. Franklin Templeton Mutual Fund

13
1.9 Competitive landscape:

The mutual funds industry competitive landscape of the following company to present
in.

• Nj India invests

• ICICI securities

• Anand Rathi wealth

• Prudent corporate

1.10 SWOT Analysis:

Strengths

• The most critical strength for a mutual fund is its performance. If a fund is
outperforming the market, and particularly if it is at the top of its benchmark, that is
a big selling point.
• If the fund is part of a well-established company with a track record of success and a
family of high-performing products, that brand name and historical record may also
be a strength.
• A best-in-class research department or methodology that has a track record of picking
winners is a huge asset as well. Different financial metrics may be key depending on
your investment style and the fund involved: dividend yield may be the key for one
investor, total return over a 10-year period for another.

14
Weakness

• One weakness to look at are your fund’s fees. A high expense ratio is a weakness even
if it pays for an active management currently beating the market with its returns.
• Even in good times, expenses are a drag on investor return, and they will be more
difficult to accept if the performance declines. Size can be a weakness as well, since
bigger isn’t always better.
• As a small-cap fund gets bigger, for example, it will have a hard time finding growth
opportunities for all of its assets and may have to close or expand outside of its stated
objective. Risk may be a weakness for some investors looking for a smaller beta or
standard deviation.

Opportunity

• It’s not enough to look at the current numbers when evaluating prospective mutual
funds. You also need to look at the overall market and consider whether the fund is
best positioned to take advantage of trends.
• A lagging fund may offer the best opportunity for growth if the combination of a
management change and economic trends prove beneficial. A change in the
government regulatory environment not only affects different industries, but the funds
that concentrate in those sectors as well.

Threats

• To some extent, many funds move along with general economic news. Some types of
funds do better in a recession while others track well in boom times – those funds are
particularly threatened by a sudden change in the unemployment rate that undermines
consumer confidence or a stimulus plan that gets people spending again.
• In addition, if a fund is dependent on a superstar manager, make sure you have a plan
in place if that manager suddenly decides to leave.

15
1.11 PEST Analysis:

Political factor:

• In India, SEBI (Mutual Fund) Regulations, 1996 regulates the structure of mutual
funds. Mutual funds in India are constituted in the form of a Public Trust created
under The Indian Trusts Act, 1882.
• The stability of the government and people faith into it acts as an important return
factor. The impact of foreign investment. Forced renegotiation of contracts A
requirement that a minimum percentage of supervisory positions be held by locals.

Economic analysis;

• India's population is young, with 54% under the age of 25 and 80% under 45 and the
percentage of working population is rising rapidly. If we see the position of BSE
Senex as compared to other major indexes in the world then we find that BSE has
been the best performer. India – Potential 'Services Capital' of the World-With
services becoming increasingly tradable, India is well placed in terms of costs and
skill sets and over the past 13 years.
• Inflation affects the Return-Inflation has always lowered the actual return from bank
savings except the year 2002 of Various Changes-With the increase in global trade and
finance, there is a need for level playing field as the WTO has laid down common rules to
facilitate smooth trade among member countries irrespective of their size.

16
Socio-cultural analysis:

• The most important factor shaping in today's global economy is the process of
globalization.
• The increasing share of India and other emerging market economies in world trade. To
fund future needs, To meet contingencies, To maintain same standard of living after
retirement.
• Standard of living of population tends to improve.

Technological analysis:

• Indian companies are moving in search of low- cost markets, technology is driving
growth in production and competition is becoming more intense.
• The outburst in communication technology has led to greater integration of Indian
financial markets across the world. The outburst of technology has made it possible for
the foreign companies to look for
• Indian market and returns associated with it. All the legal framework and associated work
• has become easy to handle

1.12 Industry Attractiveness:

Porter Five Forces Model for Indian Mutual Fund Industry

• This model was developed by Michael. E. Porter of Harvard business school in 1979.
It has provided a framework for business strategy and industry analysis.
• This model concern with the pure competition in the market, where it implies that risk
adjusted rates of return should be steady across industry or firm, hear the Michael porter
provide five different variables which is concern with industry’s specific factors
• . Most of the industries depend on the five basic forces as threats of the new entrants,
threat of the substitutes, bargaining power of the suppliers, bargaining power of the
investors and rivalry among the existing players.
• These five force variables are graphically shown in the fig (1.00). The combined efforts
of these forces find out the crucial profit potential of an industry. Information about the
various forces will help to frame the policy and strategy with respect to the competitors

17
 and other factors; it also helps to identify the crucial strengths and weaknesses of the
firm or business.
• Strategy maker occasionally use this five forces framework for formulating the strategy
related to the business. For any business profit is an initial objective, to satisfy this
objective most of the companies are generally identify various forces among these five
variables.
• From the five-force model a strategy maker can easily justify that which factor is the
most influencing factor and it might be considered as opportunities or threats. The
major forces for Indian mutual fund industry are briefly discussed as under

(Figure 1.1: Porter Five force Model)

Bargaining g power of
the supplier

Threats of the New Rivalry among the Bargaining g power

Entrants of the Investors
existing players

Threat of the
Substitute

Threats of the new Entrants:

• SEBI (Securities board of India) and AMFI (Association of Mutual funds in India)
considerable laid out rules & regulations for new entrants in mutual fund industry. Now
a day’s mutual fund industry is in its growth stage. All current players are playing very
well in the industry. For new entrants the significant amount of investment &
complicated process for taking the permission from the SEBI &MFL, it’s a very long
procedure. In the present scenario most of the financial institutions have been tie up

18
 with banks and other financial corporations to establish a new AMC (Assets
management Companies). It is a bright hope for potential new entrants.

Threats of the substitutes:

• Substitute products & services are those which are different but satisfy the same needs
of the investors. Among the major existing market player’s lots of substitute’s
investment vehicles are available, that means in the financial market various kind of
financial products are easily available from the present players. On the other side
various similar kinds of products are also available in the financial market. The major
alternative of mutual funds products are insurance schemes, derivative contracts,
option contracts, future contracts, forward contracts, gold mini contracts and many
more. Every day at least one new product launch with a different type of characteristics.
Now a day mutual funds are not limited to traditional open ended & close ended
schemes, there are lots of choices are available in the financial basket for the purpose
of investment. Most of the investors are largely depends on the advice of market
makers &stockbrokers, that means many of the substitute products & services are
affected by the market makers &stock brokers. In the mutual fund industry availability
of substitutes are very high.

Bargaining Power of the Suppliers:

• In India mutual fund industry governed by SEBI (Securities exchange board of India)
& AMFI (Association of Mutual funds in India), these two prime governing bodies are
having an authority to provide guidelines for mutual funds. Suppliers of the mutual
funds industry are financial institutions, major collaborative banks and asset
management companies. The common objectives of the suppliers are to downsizing
risk and at least generates moderate or higher amount of return. The general ideas
related to the market players are to provide a batter products & services to the investors.
At the inception time of mutual fund industry in 16 India very limited numbers of
players are available, but from the fourth growth phase onwards various private players
are also jump in this industry. So the quality of the services has increased year by year.
In Indian mutual fund industry bargaining power of the suppliers are low.

19
Bargaining Power of the investors:

• The bargaining powers of the investors are very high. The wide ranges of financial
products are available. The marketers have segmented the market into different
categories and it’s also depending on the investor requirements. It has been observed
that those assets management companies are not having sound marketing strategies
have facing a various kind of problems. Cost of switching from one scheme to other
scheme is very low, so investors can easily shift from one to another. Fund manager
have not performed very well then existing investors withdrawal their money and invest
elsewhere.

Rivalry among the existing players:

• Rivalries among the existing players are very high, because most of the asset
management companies are provided homogeneous kind of products & services. Hear
the main reason is high market growth. India is one of the largest marketplaces and
overall potential economic growth of country is high as compared to other developing
countries. Another main reason for strong competition is undifferentiated services
which can be provided by all the assets management companies. Most of the mutual
fund investors are not loyal towards their mutual fund schemes, because the same kind
of investment avenues are provided higher amount of return, that means clients
acquisition is the major competitive factor among the existing players.

20
 Chapter -2

Introduction of company

21
2. Overview of the company:

2.1 Overview:
• Prudent Corporate Advisory Limited (PCAS) is one of India's leading and successful
Platform providers for distributors in the financial services industry. born as A prudent
fund manager in 2000, PCAS entered adolescence in 2006 The platform is entering
adulthood with the introduction and launch of services In Prudential Invest On (an
online facility to buy and sell various financial products). 2013. Prudent CAS provides
its channel partners with a comprehensive platform which Channel partners receive
financial and non- financial products.
• Established in 2002, Prudent Corporate Advisory Services Limited is an independent
Retail Wealth Management Services Group in India. The business of the company
mainly Includes distribution of mutual funds with Assets Under Management (AUM)
of ₹ 48,411 crore as on 31st December 2021.
• It also distributes other financial products like insurance, portfolio management
• Schemes (PMS), Alternative Investment Funds (AIF), Corporate Fixed Deposits (FDs),
Bonds, Unlisted Equity, Stock Broking Solutions, Loans Against Securities, National
Pension Scheme (NPS), Structured Products, etc.
• Company receives commission from third parties for distribution of their products.
Prudent started in 2000, today Prudent is one of the fastest growing groups in India.
Financial services with diverse verticals.
• Catering to distribution of various financial products like Mutual Funds, PMS, AIF, etc

22
 • Equity, Bonds, Insurance, Property and Loans. Our headquarters are in Ahmedabad,
• Operates through 110 branches in Gujarat and 20 states of India.
• In 2018, US-based private equity investor TA Associates bought a minority stake
• Share in Prudential Group. This will add a lot of synergy to the investment growth The
Prudential Group is in the vast and growing Indian financial services space.
• We offer personal, corporate, HNIs and UHNIs are matched with their investment
aspirations and risk appetite by us A team of 1050+ highly skilled professionals and a
vast network of channel partners.
• Over time, our market dominance has not only earned us trust and confidence
• Confidence but lots of praise.

2.2 Company History:

History of Insightful Corporate Advisory Services in

2000
• Started as Prudential Fund Manager.
2006-07
• Launched MF distribution channel
2008-09
• Gained membership of Bombay Stock Exchange (BSE).
2013-14
• Won CNBC TV 18 Best Financial Advisor Award for Western Region – 5th time
in a row
2014-15
• Achieved the milestone of 5000 crore AUM in mutual funds. Acquired insurance
Broking License Prudent Broking Announced as Runner Up for ZEE Market Analyst
Award.
2015-16
• Launched fund market
2016-17
• Achieved the milestone of 10000 crore AUM in mutual funds.
2017-18
• Started policy world. Achieved milestone of 15000 crore AUM in Mutual

23
 funds.
2018-19
• Launched FundzBot. Achieved milestone of 20000 crore AUM in Mutual
funds
2019-20
• Launched Vice Basket. Achieved milestone of 25000 crore AUM in Mutual
funds.
2020-21
• Credit Basket, Fund Market Broking and LakshMe achieved
30000 crore AUM milestone in mutual funds.

2.3 Key Takeaways:

• Prudent Corporate was the second largest national distributor by FY2 1.4% market
share on AAUM basis and 4.2% market share on commission basis. This improved
from 0.7% market share and 1.6% market share on an AAUM basis Based on the
commission of FY16. The company has grown rapidly nationally Distributors in terms
of commission (among top 10 mutual fund distributors) and AAUM with a CAGR of
34.4% and 32.5% respectively for the five-year period Ended FY21.
• The transaction is treated as asset acquisition and is added under "Intangible Assets".
Based on various factors, management has concluded that the cost of acquiring a
customer folio over a 10-year period is a Straight-line support. Merger of Mutual Fund
Folio/AUM was completed 28th November 2021.
• After the acquisition of AUM, the company has acquired 0.86 million folios which
include 0.48 million unique investors with an AUM of ₹8,092 crore.
• This is what has contributed to the huge jump in MF AUM for the company
• 9M FY22. Also, this led to a negative cash flow of 9M during FY22.
• The company took an unsecured loan of ₹ 77 crore from Sanjay Shah (promoter). at the
rate of 8% per annum to meet the funding requirement for acquisition of M Folios kept
by the wise. The company has already paid an amount of ₹44 crore
• Total loan amount.

24
 2.4 Business segments:

2.5 Company Provides a Platform to Mutual fund Distributors:

• Partner desk with a range of reports. Invest in customer convenience for online
shopping and sales. A dedicated relationship manager. Marketing and sales support.
Training a Education support through various methods like monthly meet, conferences,
events etc. Dedicated customer care / query management support. Client desk for
customers of the partner. own branded reports, marketing images, videos, email
campaigns, website
• (MFDs) to facilitate their operations and interactions with customers. In addition, that
too As part of its platform offering MFD offers various data analysis tools and reports,
• Based on certain identified parameters.
• The company offers Digital Wealth Management (DWM) solutions through platforms,
Like, Fund Bazaar, Prudent Connect, Policy World, Wise Basket and Credit Basket.
Technology helps reduce transaction and physical costs (paperwork, labour, etc.). By
allowing distributors to focus on value addition for their customers, bring Increase time
efficiency and volume.
• Each platform is designed to cater to MFDs and retail investors A comprehensive set
of financial service solutions based on their investment needs. This The company
believes that the simplicity and user-friendly nature of its platform enables it To attract
more MFDs to the platform.

25
• At Prudent Private Wealth we aim to proactively address complex needs Ultra and high
net-worth individuals as well as retail clients and their assets Management clear, simple
and easy by providing bespoke investment services.

• We strive to ensure that our partnerships have a positive impact on our channel's
business partners. Over 23,200 channel partners enjoy the trust

• A fast, hassle free, secure and online investment platform that helps investors Making
informed investment decisions by providing research, analysis, investment Tools,
applications and other features. and trust with the Prudent brand.

• FundzBot is a multi-channel conversational interface deployed on the fund market

Website, WhatsApp and Facebook Messenger that allow our customers to invest and
redeem no time.

26
• The company serves its customers through 8 branches and 1530 channel partners. That
Also provides powerful and secure technology products on mobile, web and across
Desktop PruBazar is a mobile trading app for customers who are always on the go

• A Wise Basket is a pre-researched portfolio of stocks with a weight assigned to each

Stocks in the portfolio. A basket can be based on an idea, theme or strategy.

• Policy World has partnered with industry leading insurance companies to provide
insurance Life, health, personal accident, critical illness, travel, car and related solutions
Two-wheeler.

• A lending platform that offers finance through a wide range of retail loans and
credits Card Products. has partnered with leading financial institutions where customers
can Select, compare and take instant credit decisions at their convenience.

27
 • Prudent Properties is a RERA (Real Estate Regulatory Authority) Registered Real
Estate agent with presence in Gujarat and Maharashtra states. Sensible Properties
provides real estate solutions in a way that apart from creating Asset class, it also helps
clients to buy/sell their properties, be it Residential, Commercial, Plot, Land or Project.

2.6 Financial services:

• Prudent Corporate Advisory Services Limited is the parent company and a Primary
branch of Prudential Group. It provides specialized services in the area of Personal and
corporate financial services through distribution of mutual funds, Fixed income
products and third-party products.

stock broking

• Prudent Broking Services Pvt. Ltd. is a Stock Broker and Depository Participant. This
The company is a member of Bombay Stock Exchange (BSE), the National Stock
Exchange (NSE), Metropolitan Stock Exchange (MSEI) and Central Depository
Services (India). Ltd. (CDSL)

Insurance

• Gennext Insurance Brokers Pvt. Ltd. is an IRDA registered insurance broker. This The
company provides life and general insurance solutions offline as well as online By state-
of-the-art portal policy world.

28
Property

• Prudent Properties is a RERA (Real Estate Regulatory Authority) Registered R Estate

agents in Maharashtra and Gujarat states, providing real estate Solutions in Mumbai
and Ahmedabad.

2.7 Six Pillars of Prudent:

Product Basket

• A wide spectrum of product offerings that sets us apart from the rest. We offer mutual
Funds, Equities, Fixed Income Products, PMS, AIF, Structured Products, Unlisted
Equity, Insurance, Loan and Real Estate Investment Solutions.
People

• A team of 1050+ employees consisting of certified professionals, industry experts,

Relationship Managers, Research Specialists, IT Specialists and Back- Office support.
Partners

• Our dedicated online platform and mobile apps support our 23,200+ channel partners
Grow and expand their business easily. We are constantly engaging with our partners
Provides product training, research reports, business tools, articles and marketing
material
Process

• We use a research-based, quality-driven process to produce the best possible long-

lasting product. Term results for our clients. Our research team manufactures, markets
and provides Investment reports through in-house research and third-party data
analysis.
Presence

• We operate our business through 110 branches across 20 states in India. Excellent
Infrastructure graces our offices to provide to our staff, clients and partners an
atmosphere of comfort, warmth and prosperity. Our branches are self-sustaining and
fully equipped to serve our partners and customers.

29
Prutech

• Prutech, a dedicated IT wing of the group with 60+ programmers, developers,

Designers and Innovators. The team provides round-the-clock access to real-time
markets Data and various investment reports through web portals, mobile apps and
chatbots.

Principle
• As a company providing investment solutions based on in-depth research, we place
financial well-being of our customers before our financial benefits. in delicate In the
business of handling other people's money, we always maintain high ethical standards
In everything we do. Integrity and honesty are at the heart of our business. In this, our
belief is our existence.
Ethics
• Our professional expertise puts us in a position where investors benefit from us
Mentoring investor wealth creation is not just our business; That is our ethos. Done
Understanding the client's investment needs and circumstances, we provide the best
possible solution; Instead, the focus is always on the best basket of products Selling all
available products. So, the focus is on quality and not quantity.

2.8 Vision:

• To be the most preferred group in providing financial services to the public. Its vision
is fund bazaar service which provides you the most ideal solution in assets Managing
your overall financial well-being. reaches the largest number of Customers in their
vision.

2.9 Mission:

• The focus of our organization is to provide the best solution to our customers Creation
and asset management. The organization provides customers with simple, fair and
Professional advice that adds value to the quality of life and gets practical Solve To
build a strong organization based on our core values by focusing on the client first

30
 approach, fairness and respect for every stakeholder, teamwork, integrity, and Integrity
Wise All financial services are provided to invest on mutual funds.
Policy

• To achieve and maintain leadership, Prudent aims to improve customer satisfaction by

combining its human resources and technical resources to provide high quality financial
services. In the process, assets will exceed customer expectations.

2.10 Risk Factors:

• Company has high dependency on Asset Management Companies (AMCs). Mutual

fund distribution business is an important part of the company income.
• 9M for FY22 and FY21, total commission and fee income of the company Distribution
of mutual fund products contributed 84.49% and 80.73% of the total Income from
operations. Any change which adversely affects the business of AMC, It will also
indirectly affect the performance of the company.
• Regulatory changes that require AMCs to reduce their expense ratios, may also occur
Adversely affects the business of the company.
• If AMCs reduce the total expense ratio due to regulatory changes, they can Reducing
distribution commissions, which will adversely affect the company income.
• Under-performance of mutual funds as an investment class or other financial products
Loss of investors distributed by the company may lead to failure to attract new one
Investors, decline in AUM, which in turn may adversely affect its results performance.
• Existing as well as potential customers do not see merit in choosing to make them
Mutual fund investments through distributors, and may choose to invest in such funds
directly.
• In the event that such existing or prospective customers choose to invest in such funds
Directly, the company's AUM or growth in AUM may decrease, which will have one
Adverse effect on its business.
• The Company's ability to maintain its business operations is sound and dependable
Efficient operation and functioning of various IT.
• Systems. An IT malfunction can disrupt a company's business or lead to its disclosure
Sensitive Company Information.

31
 • A company may lose market share if it is unable to fend off increasing competition.
The company faces competition from various sources Companies in the financial
services industry including other MFDs and assets Management companies, which
fulfil the requirement MFDs. The company also faces competition from several wealth
management arms Market participants, including established Indian and foreign banks
and private banks.

• Global Perspective AUM to GDP Ratio 2019 This data for all countries, only open-
ended funds including equity, debt and others, GDP are considered. Based on current
price estimates in IMF World Economic Outlook 2019 On this data.
• India's AUM and GDP is much lower than US, India's GDP is 12% and US GDP This
is 120% of the global perspective.
• In India Mutual Funds the current position of all counters is very low and they are so
bad condition of India screen of investment of mutual people funds.

Promoter background and shareholding

• The promoter and the promoter group together hold 56.78% of the total shareholding
the company. Major shareholders are as follows: Apart from Wagner Ltd., a member
of TA Associates (Global Investment Fund), holds 40% stake in it. The company TA
Associates is a private equity firm based in the United States.
• The firm invests in profitable, growing companies across five core sectors – business
• Services, consumer, financial services, healthcare and technology industries. Sanjay
Shah is also the Chairman and Managing Director of the company.

32
• He has over two decades of experience in the financial services industry. Shirish Patel
is the CEO of the company. He has more than 15 years of experience. The point is an
outright offer for sale (OFS) and 20.6% of the total shares are being offered By OFS.
• As per AMFI data, total commission paid to distributors increased to ₹6,618 crore in
FY21 as compared to ₹6,148 crore in FY20. However, the commission had Decreased
to ₹ 6,148 crore in FY20 as compared to ₹ 7,948 crore in FY19.
• Can be attributed to the decline in overall commissions for top MF distributors
Regulatory changes related to expense ratios (fees and expense limits by AMCs) and
volatile market conditions towards the end of the year due to Covid-19 A nationwide
epidemic.
• An analysis of commissions by mutual fund distributors suggests two important
• Streams – NDs and IFAs have a growing share in the distribution pie Consolidation of
market share among major players. Witness a share of NDs an increase of 458 bps in
FY21 compared to FY18.
• The share of IFAs increased from 5% in FY15 to ~10% in FY21. On the other hand,
Shares of banks have fallen sharply (by about 1000 bps) in the last 6 years.
• Increase in share of NDs and IFAs in mutual fund distribution income is A reflection
of the growing disruption in the investor base with a large number of retail sales
Increasing presence of investors and investors coming from small towns J They need
guidance and support in making their investment choices.

33
 • The team is uniquely positioned to be a part of the Prudential client's inner trust-circle
and consult them to reach independent investment decisions. The team also helps the
Manage their emotions during market volatility.

2.11 SWOT Analysis:

• SWOT analysis is a tool for auditing an organization and its environment. It is the first
Planning phase and helps. SWOT stands for Strength Weakness Opportunity and
threats Strength and weakness are internal factors. Opportunities and threats are
external factors.
Strength

• Brand name
• Known as moral
• All India presence
• Experienced people in the company Bias

Weakness

• The company has just under 105 branches in India

• Lack of manpower
• Lack of necessary infrastructure
• Low margins

34
Opportunities

• Zero base
• Lack of suitable services available in the market
• Absence of market leader, mutual fund in distribution
• Huge potential of mutual fund market
• Increase in market income levels

Threats

• Individual brokers
• Promotional activities of its competitors
• New business plans of its competitor
• Attrition
• Lack of manpower
• Lack of necessary infrastructure
Prudent Corporate Advisory Services Limited is an independent retail wealth management
Service Group in India. The company's business primarily consists of mutual distribution
funds.
There are low barriers to entry in this industry. Moreover, the company will face difficulties
To face competition from big players in the industry such as established Indian and Foreign
Banks and Private Banks.
There may be a risk to the availability of direct, non-intermediate fund investment options
Mutual fund distribution business
2.12 Organization Structure:

(Figure 2.1: Organization structure)

Branch manager

Relationship manager

Customer relation officer

35
 Chapter -3

Literature review

36
3. Literature review:

• The research, also considered the research literature, is the aera that has explored. as
per the literature review.

Narasimhan and Vijayalakshmi (2001):

• Empirically evaluated diversification and timing Performance of Mutual Funds in

India. The results of their study failed to show Any best performing mutual fund over
the study period. They have shown that mutual fund managers have failed to invest in
the top Stocks performing over the period.

King (2002):

• “Mutual Fund Investment of Choice for Individual Investors? It has highlighted the
emergence of products like exchange traded funds, hedges Funds, Managed Accounts
etc. Which gives competition to mutual funds. This The paper further discusses that the
introduction of these products will see the main Structural changes in the financial
system will occur because of consolidation of positions Reduction in cost rations by
various players, lower costs and Greater tax efficiency for the investor.

Singh (2003):

• In a paper titled “Performance Evaluation of Mutual Funds” Equity Fund”, Meanwhile

the performance of some equity open ended schemes has been evaluated December
1996 to December 2002 by applying the Sharpe and Treynor ratio, funds Calculated
sensitivity and risk to BSE Sensex benchmark index Adjusted return of schemes. The
study found that there was a mix of plans Risky and less risky investments. It has also
been found that the plans performance was influenced to a greater extent by the external
environment rather than the internal Environment Thus, the focus of the study is on
performance evaluation and Portfolio construction.

37
Lynch and Musto (2003):

• Empirically in a paper titled “How Investors Interpret Past Fund Returns”. Tested the
assumptions that, 1. Past returns do not reflect future performance and 2. Poor
performers change their strategy and perform at a much better rate their current
performance level. The authors developed a model to test Assumptions and empirically
proved that the relationship between the past and Future performance is also convex
and a bad money management strategy Actors are more successful than good actors in
terms of Institutional investors.

Gupta and Gupta (2004):

• In the paper “Performance Evaluation of Selected Indian Mutual Fund Schemes

Empirical study, using performance studies of 57 growth plans Net asset values for the
period April 1999 to March 2003. Paper used Performance evaluation measures of
Sharpe, Jensen, Traynor and Pharm Some funds have been found to have outperformed
the market because Only a few managers had stock selection skills and consequently
funds Large diversified risk exposure.

Indro (2004):

• In a study titled "Do Mutual Fund Flows Reflect Investor Sentiment", is Investigated
the relationship between total equity flow and investor Sentiment using weekly data
including sentiment indices of American Association of Individual Investors and
Investors Intelligence. This The study was conducted using regressed data and
robustness was established the relationship between aggregate equity flows and
investor sentiment. This Research evidence suggests that apart from economic
fundamentals, Investor sentiment affects the behavior of equity fund investors.

38
Bodla and Garg (2007):

• Research work i.e. “Performance of Mutual Funds in India and An Empirical Study of
Growth Plans” analyzed twenty-four growths Schemes based on simple random
sampling technique. Context Study period from January 1997 to December 2004.
Monthly Net Worth
• Values have been considered for the study and evaluated Using the Jensen, Treynor and
Sharp measure. The findings of the study are reported That most of the schemes
outperformed the market and the risk involved Schemes are more than market risk.
• Banas Kantha is a major opportunity due to divergent, rapid development and Potential
for financial services.
• Mutual funds are generally based on the capital market and returns are based on the
market Conditions Due to several fraud cases like Fine India Investment and Citi -
people do People do not trust private sector financial products and that too for a reason
Don’t believe in mutual funds.
• I worked as a trainee in Prudent Mutual Funds: It is financial insurance Advisor A
reputable financial paltefome overall financial situation in India Institute in India. I have
encountered many people with such mentality investment in the present. It is very
difficult to move people to invest And I tried my best to invest them in mutual funds.
• I used to deal with Wise Mutual Funds: It is a service of Bama Seva Limited people
Those who were engaged in service and business were covered under income tax;
People like it Insurance Service Savings Fund. And my surroundings and community.
I have Many approaches them to reach out to friends, neighbours and others Invest in
prudent mutual funds that will give positive returns in the future. And many They
responded well to it and also invested in mutual funds.
• Mutual fund (MF) investments are subject to market risks.” Well, that's true. But if You
make informed investments, you can easily say "money through wisdom" and Mutual
Fund "Sahi The" (Mutual Fund is the right choice). As people understand more
• About this investment instrument and its effectiveness in the medium-to-long term,
total Assets under management (AUM) of mutual fund houses are expanding rapidly.
And benefit of all mutual fund investments at present.

39
3.2 Study VariableinIndianContext:

Awareness:
• Investor awareness is a term used in investor relations, by public companies and To
describe how well similar institutions, their investors and the investment market are
doing In general, know their business. Its significance is that investors expect support.
Their investment decisions on awareness and knowledge and lack of this can result Its
peers in the market (i.e., mutual fund businesses and investment opportunities),
harming business.

Attitude:
• A crisis in investor confidence means people who support corporates The system
becomes obsessed with the system. Depends on the corporate form of the business to
fund a company with capital through the purchase of its stock by investors. Attitude
Risk appetite", "risk appetite" or "risk reward profile" are terms used to describe
investors. The level of risk they are willing to take while choosing investments to reach
their savings goal

Future Action Plan:

The new investor:
• If you are just starting out, don't be afraid that the market will crash. No good Or a bad
time to start investing. opt for SIP and have a long-term horizon. If when the market
falls, take it as an opportunity to average your investment costs. You One can start
investing in aggressive hybrid funds instead of pure equity funds. This The fund invests
20-35 percent in debt and therefore underperforms the market. Icing on Cake: They
also offer automatic rebalancing.
The experienced investor:
• You have seen the magic of SIP. Although this may seem an unusual time, you’re the
response should be the usual: keep investing. However, you might be tempted to think
Innovative ways to lock in your returns and avoid pain, remember that most of all the
most effective thing you can do is continue to invest.

40
 Equity in retirement:
• If you are a retiree who wants to invest a part of his corpus in equity to fight Inflation,
make sure you do this only with your long-term money and after yourself Secured your
income needs for the next five years. Invest only through SIP.

Nearing the goal:

• If you're close to a long-term goal, start making systematic exits. Don't be tempted by
the bull runs. If the market changes course, your goal may be compromised. you can
Move your corpus to good short term debt funds to avail higher returns as Compared to
a simple bank account if you are a few years away from your goal.

Reason:

• There are some specific reasons to turn to investor Mutual funds rather than managing
their own portfolios directly. Primary reasons Why one can choose to buy mutual funds
instead of individual stocks Diversification, Convenience and Low Cost.
• SIP Report Interrogators first step to collect report information and All variables are
choices related to the subject of the report and the variable has a key role A variable
that collects the data of spss result and external and Internal and dependent and
independent of the need of mutual fund investor Financial Advisor. & Discretionary
Adviser Corporate Services Ltd.'s Company Collect the Discreet information proved
ppt and information all guidelines Report for most help.
• The report relates to all processes related to the basis of the report on mutuality Funding
and methodology are related to the All-Sip work process and manager's guidelines Help
us with all methods and variables for questioners and report projects.
• Wise Corporate Advisory Services Ltd. It is a mutual fund company investment of
General public, agent and distributor of financial work.
• All mutual fund reports and collective industry information of all the mutual fund
industry in its and Google's information gathering data A Google Scholar application
rich in research information on mutual funds.

41
 Chapter-4

Research topic
Introduction

42
4. Topic introduction

4.1 Introduction:
• Indian economy is more developing and growth is due to ID Growth in the financial
system. This provides financial system background Different investors about different
investment options. Thus, development the company depends on how these investors
invest for long-term well-being.
• As financial markets become more sophisticated and complex, investors have to a A
financial intermediary who provides the necessary knowledge and expertise
• Expertise on successful investing. Mutual funds are perhaps the most representative A
perfect investment opportunity for investors. No wonder the mutual concept the fund
was initially developed in the Indian market. But the entry of the concept into The
Indian financial market was in the year 1965 with the formation of AUM. On the
initiative of RBI and Government of India.
• Money is a fragile thing for most people and when it comes to investing, it is Be careful
simply because there are many investment options, each promising Second. An
important question facing many investors is whether to invest in banks etc. National
Savings Post Office Non-Banking Financial Companies, Fixed Deposits, shares etc., or
investing exclusively in mutual funds.
• Mutual funds are considered to have a huge potential market in this era. thus,
Exploratory research shows that due to high industrialization and development in Disa
and by the DISA region we can infer that the mutual fund market has a hug potential in
the area. Thus, the purpose of this research was to find out why people do not actively
invest Professional management in mutual funds, diversification,
• To explore convenience liquidity, flexibility, tax benefits etc. as well as feasibility
• Business of Prudent Corporate Advisory Services Ltd. in distribution of mutual funds
in Disa and Palanpur city.
• After conducting research derailed by interviewing various persons Those who work as
interview consultants like insurance consultants and office consultants etc with the help
of a questionnaire, some facts regarding the view of mutuality were revealed Funds in
the minds of investors. It has been observed that almost most percent of people do not
invest in mutual funds but most of them are interested to know about mutual fund and
if have right information and given the knowledge, they will invest in mutual funds in
future.

43
• Service class people prefer security of regular income in addition to income
Professionals and businessmen on the other hand focus on tax benefits Return with
some risk. For growth and development of mutual fund industry. This Mutual fund
should be removed and there should be awareness for it This makes
• An investor who does not have the time and expertise to analyze and invest Among
stocks and bonds, mutual funds offer a viable investor option. Because Mutual funds
offer the benefit of cheap access to expensive stocks. Mutual fund Diversify an
investor's risk by investing in a basket of assets. A team of Professional fund managers
with them to achieve your financial goals through investment, you need professional
guidance Keep you on track to achieve your goals by helping you choose the best
Investment strategy. For this, a professional mutual fund advisor is your best bet.
• Investing in mutual funds can seem overwhelming, especially if you are a first timer
• An investor considers many factors to determine the success of a mutual fund, such as
past performance, risk, market conditions etc. These factors should be fully understood
A lot of research and experience is required. It's easy if you have a little help.
• A fund advisor is a qualified professional who analyses your current financial affairs,
• Understands your investment goals and guides you to invest in the best mutual funds
Create a portfolio that suits your needs and financial goals. They have Excellent
understanding of different types of mutual funds and is fine with-it Current market
conditions help you choose the right investment fiduciary duty to disclose all aspects
ethically and morally investment for their customers.

44
 Chapter - 8
Research Methodology

45
5. Research Methodology:

5.1 Research Objective:

• Many a times people get confused between a MUTUAL FUND ADVISOR and FUND
MANAGER. It’s essential to note that there is a huge difference between a fund advisor
and a fund manager. A fund manager, also recognized as a portfolio manager, is
accountable for managing an investment account. He also creates a portfolio, saving
the client’s long-term financial goals in mind. Mutual fund advisors are accountable for
advising the right investment plan according to the client’s financial goals. Successful
advisors possess superior logical abilities, subject matter expertise, and customer
service experiences. This helps clients plan out their financial objectives

5.2 Hypotheses of the study:

H1. Awareness has independent variable there is different between female and male.

H2. Attitude has independent variable there is different between female and male.

H3. Future action plan has independent variable there is different between female and male.

H4. Reason has independent variable there is different between female and male.

5.3 Scope of the Study:

• In this research, I have taken samples from variable areas for the palnpur and deesa city
for the purpose of data collection and taken five variables to dependent and independent
variable. for better result and for more generalised result, following are scope of the
study.
• -variable
• -geographical scope
• -Sample size

46
5.4 Research Instrument:

5.4.1 Structured questionnaire:

Variables:

• the variable is dependent of the mutual fund investors and financial advisor and the
dependent variable is analysis of the financial advisor for mutual fund investor and
independent variable is the analysis of the awareness, attitude, future action plan and
reason. The research model development is the survey basis for this research and it will
help in analysing result.

Layout of questionnaire:

• the questionnaire consists of the main part of the basic information or respondents and
investor responses which include the different response given by the respondents.
• The first part of the questionnaire include basic information of responds such as gender
and age and contact no, age, education, of the prudent advisory service Ltd and which
were helpful in mutual fund investment the demography and personal information of
the respondents. For the Ans of these question different options were provided to the
respondents from which they have to select any multiple option.
• Second part included investment response. In second part different questions regarding
independent and dependent variable were included. and the variable was awareness and
attitude and future action plan, and reason include in the questionnaire to mutual fund
investor responses.
• I have used Likert scale in question of agree and disagree and the most of people not
interested of the mutual fund so disagree and half all most people of invest in mutual
fund invest on the agree the questionnaire respondents need to give their responses for
given question from the Likert scale.

5.4.2 Measures of study:

Basic information:

• Age
• Gender
• Education

47
Investor based:

• awareness of investor
• attitude of investor
• future plan investor
• reason investor

5.5 Research Methods:

• I had used methods to consult people through meeting, calling, of agent and
distributer. I understand meeting of about 80 people and consulted about 150 people
during my training.

5.6 Research Design:

• A research design is a pattern or an outline of a research projects working. It is a
statement of only the essential element of study. Those that provide the basic guidelines
for the details of the project. It comprises a series of prior decision that taken together
provide master plans for executing a research project.

A research design serves as a bridge between what has been established. The research in
conduct of the study to different those variables. If there were no research design, the research
would have only financial investment as about what is to be done.

5.7 Unit of Analysis:

• Mutual funds agent and distributor, clients

5.8 Characteristics of Interest:

• Knowledge about mutual fund
• Knowledge about prudent advisory corporate service
• Interest in getting knowledge of mutual funds
• Mutal funds saving instrument of investment

5.9 Data Collection:

5.9.1. Primary data

• The primary data is collective using sampling method and by survey using
questionnaire.

48
5.9.2. secondary data
• Secondary data includes information regarding present market scenario, information
regarding mutual funds and other are collecting in research paper and office meeting
of mutual fund investment.

5.10 Sample size:

• Sample size: 150
• Sample extent: Palnpur and Deesa City.

5.11 Data collection method:

• I have used “survey method “to collect data. I” have collected data using questionnaire.

5.12 Type of information:

• I have collected fact – awareness, attitude, future action plan and reason using question

5.13 Type of Questions:

• “Multiple choice and liner scale” type is asked in the questionnaire for data collection.

5.14 Summary:

• This chapter is about the introduction to research methodology. It includes the data like
sample size, sample unit, research design, sampling method, research objective etc. all
the above mention things are being discussed in detail in the given above chapter. The
next part of the project comes to the analysis of the data. And various statistical test is
been performed with the help of SPSS and analysis is been discussed in the next
chapter.

49
 Chapter - 6
Data Analysis & Interpretation

50
6. Data analysis

6.1 Frequency of Demographic Factors

Gender:

Category Frequency Percentage

female 18 11.4%
male 132 88.6%
Table-1: Gender.

Gender

Cumulative
Frequency Percent Valid Percent Percent

Valid Female 17 11.3 11.4 11.4

Male 132 88.0 88.6 100.0

Total 149 99.3 100.0

Missing System 1 .7

Total 150 100.0

Gender
Female
11%

Male
89%
Female Male

• there were 132 males in the sample taken for the research report. And there were 18
females in the sample taken for the research report. The sample contains 11.4%
females and 88.6% males.

51
Age:

Category Frequency Percentage

18-25 9 6%
26-35 79 53%
36-45 43 28.9%
More than 45 years 18 12.1%
Table-2 age.

Age

Cumulative
Frequency Percent Valid Percent Percent

Valid 18-25 year 9 6.0 6.0 6.0

26-35 year 79 52.7 53.0 59.1

36-45 year 43 28.7 28.9 87.9

More than 45 years 18 12.0 12.1 100.0

Total 149 99.3 100.0

Missing System 1 .7

Total 150 100.0

Age

12% 6%

29%
53%

18-25 26-35 36-45 More than 45 years

• There were people of different Age in the samples. As shown in the table highest
number of respondents in any age group is respondents of the age group 18-25 years. 6

52
 %respondents of the age group 26-35. The 53% respondents of the age group 36-45 and
last more than 45 year in respondents 28.9 % and 12.1 %.

Education:

Category Frequency Percentage

SSC 13 8.7%
HSC 33 22.1
Graduate 74 49.7%

Other 29 19.5%
Table-3 Education.

Education

Cumulative
Frequency Percent Valid Percent Percent

Valid SSC 13 8.7 8.7 8.7

HSC 33 22.0 22.1 30.9

Graduate 74 49.3 49.7 80.5

Other 29 19.3 19.5 100.0

Total 149 99.3 100.0

Missing System 1 .7

Total 150 100.0

Education

9%
19%

22%

50%

SSC HSC Graduate Other

53
 • There were people of the different education in the sample. As shown in the chart of
the respondents in different education details of the SSC in the 13People and very few
people is there. The HSC education of the people number of the respondent is 33 the
third education of graduate the people is 74respondent and the last respondent people
of education in other is 29 is there.

Location:

Place Frequency Percentage

Deesa 52 34.9%
Tharad 25 16.8%
Palanpur 67 45%
Other 5 3.4%
Table-4 Location.

Location

Cumulative
Frequency Percent Valid Percent Percent

Valid Deesa 52 34.7 34.9 34.9

Tharad 25 16.7 16.8 51.7

Palanpur 67 44.7 45.0 96.6

Other 5 3.3 3.4 100.0

Total 149 99.3 100.0

Missing System 1 .7

Total 150 100.0

Location

3%
35%
45%

17%

Deesa Tharad Palanpur Other

54
 • The chart shows location about the different place. These locations are shows in the
different location. The first place is the deesa in the 52 people and the second tharad
place in only 25 people in the location. The total respondents is 149 and the third place
is the palanpur this location is the highest people in the respondent is 67 and the last
location of the Tharad this is the same as the deesa and other place of people in 5 the
total location place is the 4 in the survey.

Awareness

Statement Strongly Disagree Nature Agree Strongly

Disagree Agree
Have you buy mutual 0 1 30 82 36
fund.
the mutual fund Are 0 2 52 77 18
subject to market risk.
As a mutual fund 1 7 32 75 34
investor, do you agree
advisor is important.
Table-5 Awareness.

• Table shows frequency about the variable “awareness” from three different factors.
These factors are shown in the three different items. The first factor is “have you buy
mutual fund” there are strongly disagree not responds and disagree 1 responds and

55
 nature in 30 responds and agree in82 responds and strongly agree in 36 responds the all
responds are very usefully to survey of the people satisfaction level and not satisfaction
level.
• The second factor is” the mutual fund are subject to market risk” there are disagree
respondent in one 2 and the nature factor in 52 respondent and agree in 77 people
respondent the last factor strongly agree in 18 respondent.
• The third factor is” as a mutual fund investor, do you agree advisor is important” in the
there is the strongly disagree is 1respondent and the disagree respondent in 7 and the
nature in 32and the agree in 75 respondent and the last strongly agree in 34 respondents
of the variable in the people satisfaction level in this.

Attitude

Statement Strongly Disagree Nature Agree Strongly

Disagree Agree
As a investor you 0 8 25 68 48
prefer share market
Investment.
As a investor you 0 9 50 71 19
prefer mutual fund
Investment.
As a investor you 0 13 40 60 36
prefer Insurance
Investment.
Table-6 Attitude.

56
 • Table shows frequency about the variable “attitude” from three different factors. There
factors are shown in three different items. The factor is “as a investor you prefer share
market investment” in there strongly disagree and disagree and nature and agree and
strongly agree in this table. The frequency of the three different factors and all People
dependent of the satisfaction level in this survey and this is very important.
• The second factor is “As a investor you prefer mutual fund Investment” and the third
factors is “As a investor you prefer Insurance Investment” this factor dependent of the
people satisfaction level.

Future action plan:

Statement Strongly Disagree Nature Agree Strongly

Disagree Agree
Are you Interested to 0 3 25 81 40
Invest In mutual fund.
Do you have any 1 4 58 67 19
investment plan.
Is it a good time to 0 8 34 73 34
invest in mutual fund.
Are you availing the 0 13 54 53 19
service of personal
financial advisors.
Table-7 Future action plan.

57
 • Table shows frequency about the variable “Future action plan” from four different
factors. There factors are shown in three different items. The factor is “Are you
Interested to Invest In mutual fund” and the second factors is “Do you have any
investment plan” and the third factor is “it a good time to invest in mutual fund” and
the four factors is “Are you availing the service of personal financial advisors” this is
the factor of the variable in the people satisfaction level and there in the strongly
disagree, disagree, nature, agree and strongly agree in this table.

Reason

Statement Strongly Disagree Nature Agree Strongly

Disagree Agree
As a investor you 0 2 36 72 39
want to got better
return expected.
As a investor are you 0 5 63 63 18
planning to achieve
specific goal.
Aa a investor don’t 0 12 54 48 35
have time to make
my own investment
decisions.

58
 As a investor are you 8 29 40 56 24
want asset
Allocation.
Table-8 Reason.

• Table shows frequency about the variable “reason” from four different factors. There
factors are shown in three different items. The factor is “As an investor you want to get
better return expected” and the second factors is “As a investor are you planning to
achieve specific goal” and the third factor is “Aa a investor don’t have time to make
my own investment decisions” and the four factors is “As an investor are you want asset
Allocation” this is the factor of the variable in the people satisfaction level and there in
the strongly disagree, disagree, nature, agree and strongly agree in this table.

59
 Chapter -7
Findings, suggestion
Recommendations
&
Limitations

60
7.1 Findings

• the purpose of this chapter is to present the conclusions in light of the research
objectives presented above in research methodology. The chapter begins with the
summary of the study followed by conclusion. Detailed discussions on major findings
are the thrust of this chapter. The significance of the research is also simultaneously
presented.

Findings

• I Require Advisor for proper Asset Allocation.

• In the survey we find that as compare to female there are more male investors who is
investing in the mutual fund.
• We find that the majority of Investors are from 26-35 and 36-45.
• We conclude that graduate people are investing more in mutual fund as compare to
SSC, HSC And other.
• From the survey conclude that in palanpur 45% investors are there in deesa 34.9%
investors are investing their money in mutual fund.
• Investors are more trust on mutual fund that’s why they invest more in mutual fund.
• Investment in more people mutual fund because of market share value is high.
• In mutual fund also investors are more investors to invest in mutual fund.
• In mutual fund investors are more investing their money because there are better return
expected.
• The variable wise result .it may be concluded that all the basic information like, age,
education, gender, location
• Investors are investment information sources about mutual funds of Brokers are
financial advisors
• investors are buying mutual funds through financial advisors.
• People invest in Mutual Fund Primarily for capital appreciation.
• 82% investors are buying mutual funds through financial advisors.

61
7.2 Recommendations and Suggestion

• the market of the mutual fund investors in palanpur city, but this market needs to be
explored as investors are still hesitated to invest their money in mutual funds.
• The highest problem spotted is of ignorance. Investors should be made aware of the
benefits. Nobody will invest until and unless he is fully convinced investors should be
made to realize that ignorance is no longer bliss and what they are losing by not
investing.
• In palanpur and deesa city most of the people lack knowledge about prudent. So prudent
have explore his brand name through various advertisement and promotions.
• Proper training and up to date knowledge of every financial product should be given to
every employee od prudent so that then can give their best performance to the clients.
• In palanpur and deesa city investors have inadequate knowledge about mutual fund.so
proper marketing of various schemes id required, prudent should arranges more and
more seminars on mutual fund.
• Awareness of mutual fund services provided by prudent is company need very few
marketing of their all services by advertising, distribution of pamphlet, arranging
seminars etc.
• Most of marketing executive are not interested in dealing of mutual fund because they
do not want to expand their services due to lack of time. So prudent should provide
them knowledge about Difference services by which investor can get all financial
services from one place.
• Company should provide knowledge about the growth rate and the expected growth
rate of mutual fund industry In India. Most of people aware of life insurance, and sip
and tax services so company should market various tax saving schemes of mutual fund
and their benefits.
• The interface among the investors and the mutual fund companies is the agents, so the
agents should have proper knowledge about mutual fund as well as market so that they
can help investor in their investment decision. The quality of agent’s performance and
investor trust on them can be improved only if they are permanent in nature.
• Mutual fund offers a lot of benefits, which no other single option could offer. But most
of the people are not even aware of what actually a mutual fund is? they only see it as

62
 just another investment options. so the advisors should try to change their mindsets.
The advisors should target foe more and more young investors. Young investors as well
as persons at the height of their career would like to go for advisors due to lack of
expertise and time.
• The most of problem spotted is ignorance and investors should be made aware of
benefits. Nobody will invest until and unless he is fully convinced. investors should be
made to realized that what they are losing by no investing.

7.3 Limitations

 This study is limited due to limitation of time and cost constrains a sample size of only
150 respondents are chosen.
 Data analysis and interpretation done may be strong due to sample and conveyance skill
in me
 The sample extent for research is only palanpur and deesa city.
 Some of the respondents may be biased in giving responses.
 My experience in research area have affected results.
 This study is limited to only mutual fund.
 Possibility of data collection because may have not given actual information.
 The sample size of my project is limited to 150 people only. Out of which only most of
people had invested in mutual fund other few people did not investment in mutual fund.
 Time and resource limitation
 Some of the persons were not so responsive
 Research has done only at deesa and palanpur city
 Possibility of error in data collection

63
Chapter -8
Conclusion

64
 Conclusion

As per research report, there are independent variables for and dependent variable as
following: -
• Awareness
• Attitude
• Future action plan
• Reason
• According to this research findings, many investors are not aware about mutual fund
and if they are aware then they are not knowing about all mutual fund plan. So they are
not able to take various benefits of mutual funds.
• Many investors have trust on investment advisor to get the knowledge and they are
attracted toward mutual fund with consider risk, professional management and high
return factors.
• Investors prefer to invest in their money for medium to long time period. Even though
there are many investment options are available, according to investors mutual funds
are the best investment instrument avenue.
• Mutual fund has given a new direction to the flow of personal saving and enable small
and medium investors in deesa palanpur areas to the benefits of the investment.
• Mutual fund is playing a very important developmental role in allocation of investment.
• The awareness level of investor is low in advisors are interested in mutual fund.
• Very few people know about services provided by prudent.

65
 Reference

https://scholar.google.com/

https://www.proquest.com/

http://www.prudentcorporate.com/aboutmutualfund.aspx

www.moneycontrol.com

www.onlineresearchonline.com

• Barberis, Nicholas, and Richard Thaler. “A Review of Behavioural Finance.” In George

M. Constantinides, Milton Harris, and Rene M. Stulz, eds. Handbook of the Economics
of Finance, Vol. 1, Pt. 1, Ed.1. Amsterdam: Elsevier, 2003, pp. 743–802.
• Bergstresser, Daniel, John M.R. Chalmers, and Peter Tufano. “Assessing the Costs and
Benefits of Brokers in the Mutual Fund Industry.” Working Paper, SSRN, January 16,
2006.
• Cuthbertson, Keith, Dirk Nitzsche, and Niall O’Sullivan. “Mutual Fund Performance.”
Working Paper, SSRN, December 12, 2006.
• Elton, Edwin J., Martin J. Gruber, and Jeffrey A. Busse. “Are Investors Rational?
Choices Among Index Funds.” Journal of Finance, Vol. 59, No. 1 (February 2004), pp.
261–288.
• Houge, Todd, and Jay Wellman. “The Use and Abuse of Mutual Funds Expenses.”
Journal of Business Ethics, Vol. 70, No. 1 (January 2007), pp. 23–32.
• Investment Company Institute. “Why Do Mutual Fund Investors Use Professional
Financial Advisors?” Research Fundamentals, Vol. 16, No. 1 (2007), pp. 1–8.
• Sagan, Carl. “The Fine Art of Baloney Detection.” Parade, February 1, 1987.
• Swedroe, Larry E. The Only Guide to a Winning Investment Strategy You’ll Ever
Need. New York: St. Martin’s Press, 2005.
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• King, J.S., (2002) “Mutual Funds: Investment of Choice for Individual Investors?
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Indian Journal of Commerce, Vol. 56 (4), pg. 47-55.4.
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67
 Questionnaire

A study on need of financial advisor for

mutual fund investors

Dear respondent,

I am the student of v.m. Patel institute of management, kherva pursuing MBA. As a part of
our curriculum, we are requiring to undergo summer internship project. As a part of this study,
I am doing research on "a study on need of financial advisor for mutual fund investors”. That
I ensure you that data provided by you will be kept strictly confidential and exclusively used
for academic purpose only. Thesis my humble request to fairly reply to the below mentioned
questions.

Thank you

Basic information

 Name:

 Contact No:

 Gender:

o Male
o Female

 Age:

o 18-25year

68
 o 26-35 year
o 36-45 year
o More than 45 years

 Education:

o S.S.C
o H.S.C
o Graduate
o Other

Questions
Awareness

Strongly Disagree Neutral Agree Strongly

disagree agree

Are you Insure

about the mutual
fund policy?
the policy of
mutual fund Are
subject to market
risk?
As a mutual fund
investor purchase
mutual fund
reference of
broker?

69
Attitude

Strongly Disagree Neutral Agree Strongly

disagree agree

As a investor I
prefer share market
Investment.
As a investor I
prefer mutual fund
Investment.
As a investor I
prefer Insurance
Investment.

Future action plan

Strongly Disagree Neutral Agree Strongly

disagree agree

Are you Interested

to Invest In mutual
fund?
Are you availing
the service of
personal financial
advisors?
Do you have any
investment plan?
Is it a good time to
invest in mutual
fund?

70
Reason

Strongly Disagree Neutral Agree Strongly

disagree agree
As an investor, I
want better return
on my investment.
As an investor, I
want to achieve
specific financial
goal with my age.
Aa an investor
don’t have time to
make my own
investment
decisions.
As a investor are
you want asset
Allocation?

71
MUTUAL FUND DISTRIBUTION DATA COLLECTION

INTERESTED
SR.NO NAME E-MAIL ID OCCUPATION CONTACT NO. (YES/NO)
1 Prajapati darshan.m. darshan.prajapati0@gmail.com job 9510594116 yes
2 Thakor ishvarji.s. ishvarthakor19@gmail.com LIC agent 8160698724 yes
3 Dave dhavalbhai dhaval.dave444@gmail.com Lic agent 9904449449 yes
post office
4 Raval chirag.v. yogichirag3576@gmail.com agent 7202986026 yes
5 Makhija vivek.m. vivek.m.makhija@gmail.com IT return 7016867656 yes
6 Karodiya yash.a. karodiyayash26@gmail.com student 9726959058 yes
7 Thakor Lalsangji lalsangthakur@gmail.com LIC agent 8320834808 few day
8 Prajapati vraj prajapativraj722@gmail.com IT return yes
9 Thakkar sachin .s. business 8347923707 yes
10 Patel bharatbhai LIC agent 9898670986 few day
11 patel harshbhai LIC agent 7069285444 yes
12 prajapati sonalben LIC agent yes
13 Patel milanbhai milanbill086@gmail.com business 7698405541 yes
14 Oza amitbhai teacher 9825234393 yes
15 upadhaya chetanbhai LIC agent 9824588937 yes
16 Desai bharatbhai laxmi.ac1981@gmail.com IT return 9723965015 no
17 Nai bababhai LIC agent 9825239719 yes
18 Desai rajubhai LIC agent 9638368088 yes
19 rajbhai shreeram LIC agent 9978111343 yes
20 abidbhai LIC agent 9825871530 yes
21 Thakkar ashokbhai LIC agent 9925820787 yes
22 Thakkar ashwinbhai business 9426486294 yes
23 Thakor balavantbhai LIC agent 9826486294 yes
24 Trivedi bhargavbhai bhargavtrivedi987@gmail.com LIC agent 9879025327 yes
25 Patel bharatbhai LIC agent 9998223753 yes
26 Prajapati bharatbhai LIC agent 9974382639 yes
27 patel alkeshbhai LIC agent 9898365064 no
28 Solanki amrutlal ansolanki22@gmail.com LIC agent 9825736571 no
29 Bhavsar anilnhai LIC agent 9427060106 no
30 Patel avinashbhai LIC agent 9924155972 yes
31 Parmar babubhai LIC agent 9601713356 no
32 bhatia bharatbhai LIC agent 9428753988 yes
33 Thakor bharatbhai business 9825923025 yes
34 Thakor balavantbhai LIC agent 9824914885 yes
35 Patel babulal LIC agent 9825646046 yes
36 Bhagavanbhai LIC agent 9429738648 yes
37 Nadoda mayurbhai LIC agent 9428259194 yes
38 patel bhikhabhai LIC agent 9428665281 yes
39 Bileeya chelabhai LIC agent 9979663808 yes
40 Patel devchandbhai LIC agent 9426330431 yes
41 Prajapati kirtibhai LIC agent 9978170803 yes
42 Thakkar jagadishbhai LIC agent 7202896241 no
43 Raval vishalbhai LIC agent 8128828372 yes
44 Patel birjubhai business 9574682750 yes
45 Raval dalpatbhai LIC agent 9913065752 no
46 Patani dineshbhai LIC agent 9904537746 yes
47 Patel dahyabhai LIC agent 9723390180 no
48 Darbar rajeshbhai rajeshdarbar41@gmail.com LIC agent 7600446160 yes
49 Dhirubha aghar LIC agent 9879235470 yes
50 Joshi dineshbhai dineshkumarjoshi1@gmail.com business 9898361970 yes
51 patel dineshbhai business 9824499103 yes
52 Solanki dineshbhai LIC agent 9913082240 no
53 Makavana gopalbhai LIC agent 9913294671 no
54 Gujjar govindbhai LIC agent 7487941276 no
55 Patani hardikbhai LIC agent 9409242742 yes
56 parmar hareshbhai LIC agent 9586944482 yes
57 Solanki harshadbhai LIC agent 9879077650 yes
58 patel harshadbhai LIC agent 9106526516 yes
59 Lodha mohanbhai LIC agent 9638909104 yes
60 Thakor jagadishbhai LIC agent 9978373382 yes
61 Prajapati maheshbhai LIC agent 9638686125 yes
62 Rana manishbhai LIC agent 9773434475 yes
63 Barot mehulbhai LIC agent 7016566595 yes
64 Chaudhary mulaji LIC agent 8238144092 yes
65 Desai pasabhai LIC agent 9979664202 yes
66 Thakkar rajubhai LIC agent 9979664202 yes
67 Mandovara rakeshbhai rakeshmandovara123@gmail.com business 9664611158 no
68 Prajapati rameshbhai LIC agent 9825017559 yes
69 somabhai LIC agent 9712067945 yes
70 Prajapati ankitbhai share market 9227049162 yes
Thank You