Professional Documents
Culture Documents
MUTAUAL
FUNDAMONG FINANCIAL ADVISORS ”
At
By
DEEPIKA RAI
( BATCH 2008-10)
(TRAINEE CODE-T0967)
Khandala
April-June 2009
DECLARATION
CONTENTS
4. Limitations (82-94)
INDUSTRY PROFILE
ABOUT NJ
At NJ we believe in ..
Our vision
Our mission
Philosophy
Service Philosophy:
Investing Philosophy:
We aim to provide Need - based solutions for long -
term wealth creation .
.
* Constant monitoring and proper after-sales service is
critical to
complete the ongoing processes.
Executive Team:
People:
Culture
Further We:
Consolidated Reporting
As a premium client you would have access to one of the best online
investment accounts that offer comprehensive reports, many of which
are unique in nature and give valuable insights on our investments
Consolidated:
Mutual Funds:
Valuation, transaction, Profit & Loss, Performance, Portfolio
reports like - AMC / Sector / Equity / Credit / Debt Exposure,
Weighted Average Maturity, dividend history, etc.
Direct Equity:
Demat accounts, Transaction, Valuation, Profit & Loss.
Life Insurance:
Policy Report, Premium Reminder, Cash Flow.
Debt:
Transaction, Interest Income, Maturity reports for different
Assets.
Dedicated Team
At NJ Wealth Advisors, we work in a team concept to
provide quality, effective and timely service to our clients.
The team is designed keeping you at the beginning or the
end of the flow as the originator and the end receiver of any
request or service.
Recognitions
Year 2000:
For Outstanding Performance presented by Chairman,
Prudential Plc. at London.
Year 2002:
For Outstanding Performance presented by Group Chief
Executive, Prudential Plc. at London.
Year 2003:
For Outstanding Performance presented by Group Chief
Executive, Prudential Plc. at London.
Year 2004:
Among Most Valued Business Associates presented by
HDFC Standard Life at Edinburgh, Scotland.
Year 2004:
Year 2006:
Award for mobilising the Highest Number of SIPs at
National Level by Fidelity Mutual Fund Plc at Mumbai.
Year 2006:
Award – Vietnam
You might have seen in the season of kite-flying, there are many lose
kites passing by and those with alert sight turn out to be gainers with
little effort.
You can have solution for these needs and other useful support from
Gurukul.
Website : http://www.njindiainvest.com,
www.njfundznetwork.com
Reference : shehzad.malik@njindiainvest.com
Overview
Gurukul Emerges:
Vision:
Pursuing to cause change in people’s lives.
Mission:
Presence:
Key Strengths:
•Strong Team
A strong & passionate team headed by a very senior person
with 26+ years of experience in people development.
•‘Board of Trainers’
Over 60 professional Trainers empanelled across India for various
training modules.
•Process Driven
Strong institutionalization of all processes coupled with strong
use of technology. Focus on ensuring delivery uniformity in
quality & content. Training assessment mechanism in place to
assess the performance.
•Technology
Online desks for both trainers & Gurukul members featuring
many reports & utilities.
Future Plans
Sr. No.
Training
Duration in days
For whom- Beneficiaries
Details
1
Sadhna
AMFI training
2
Aspirants to appear for AMFI exam.
Know More
2
Sarthak
Basic Training
2
New entrants in advisory functions and employees of partners.
Know More
3
Saksham
Product training
2
For performers in distributing MF
Know More
4
Samarth
Advisory Skills training
2
For advisors keen to enhance them selves.
Know More
5
Spandan
Motivational training
2
Open to all.
Know More
7
Samanvay
Orientation program
2
For the trainers identified to take more sessions.
Know More
8
Sarathi
Focusing on Customer relationship Management.
2
For all advisors who aim for lasting relationships with customers for
long term goal achievement.
Know More
9
Manthan
Management Development Program for senior Executives and senior
partners.
3
For senior partners with large number of FOS and desire to achieve
personal leadership
Know More
10
Vijay Path
8
For high profile advisors who aim for acquiring business excellence.
Know More
Practice Tests :
AMFI tests :
Not only will the training give you in-depth coverage of exam
objectives but also give you a view of current financial market
and investment horizons and more specifically investment
advising in mutual funds. Clearing AMFI would be your first step in
mutual fund advisory business, with a long way to go.NJ Gurukul
training will make you aware of current industry condition, your
alternatives and the road ahead. AMFI Mock tests are available to
all Gurukul members which helps in preparing for AMFI.
Self Tests:
•MOTIVATIONAL TEST
•PERSONAL EFFECTIVESS TEST
•FIRO-B
With this philosophy, we try to offer all possible products, services and
support which an Advisor would need in his business.
•Research
•Communications
Marketing Support
The Marketing team will help you give the relevant support
needed for effective sales, creating
brand and for the development of your business.
The Marketing / Sales team will help you with the following marketing
support …
You may even get experts from industry like Sales / Marketing
Heads, Fund Managers, and Senior Executives to speak at your
Client Meets. Such activities have helped our Partners to gain rapid
acceptance, trust and goodwill in the markets.
The active support from the sales team from NJ has helped
transform the businesses of many Partners working with us.
communications
Business Planning
This has truly transformed the business of our Partners with respect
to the quality, scope of services and the scale of business.
Printshop
•Advisors get quality marketing materials with their own brand and
much lower costs
•Advisors using Print Shop services get benefits in …
•Client Acquisition
•Client Loyalty
•Communication to Existing Clients
•Business mobilisation
TECHNOLOGY SUPPORT
Technology has been and is our key strength. What we offer on the
technological front is unique and comprehensive. Our focus can be
gauged from the fact that we have a separate sister concern started
for the sole purpose of providing the best support to NJ in terms of
technology. High infrastructural spending is done to improve &
strengthen our deliverables on this technological front. Finlogic
Technologies (India) Pvt. Ltd.does all the development work in-
house on a continuous basis through its team of talented
professionals. All the tools, services, products, etc offered by NJ
has been developed in-house according to what we feel.
Data Management at NJ
Partners Desk
The Partner Desk is the tool to keep you in full control of your
business. The following are the tools available to you at the desk …
NJ Research Support
NJ has its own Research team. The research team analyses and
studies the markets, investment products, and other important
things that are important from advisors point of view. The Research
team also undertakes study and analysis on the mutual fund houses
and schemes. Recommendations from the Research team truly reflect
the unbiased nature of the study it undertakes.
I- GURUKUL
To raise the quality and standard of such Advisors and bring them
on par with the best Advisors in the industry.
To ultimately benefit the investors with quality services, offerings and
recommendations
The Team:
The Team at I-Gurukul combines rich industry experience along with in-
depth knowledge of the financial advisory field and the products /
markets. The team has been carefully selected keeping in mind the
objective of the programme, from among the best in the company
as well as from the industry.
The Modules:
AMFI Module:
For beginners who wish to start their career in the Mutual Fund
Industry.
Basic Module:
Free for NJ Fundz Partners, this module gives the basic knowledge
and understanding of Mutual Funds, Equities, Debt and NJ Services,
etc
Advanced I:
This module aims to further enrich the knowledge of the Advisors. The
topics covered are – Portfolio Construction & Restructuring, Financial
Concepts and Mathematics, Taxation, etc
In case you are a fresher and wish to appear for AMFI Mutual Funds
Certification exam, please visit any of our service centers and apply.
Customer Care
•Telephonic
•Email or
•Online directly through your Advisors (Partners) Desk
Query Management
•Automated On-line Query Management Module is used to
efficiently handle the queries of our Advisors/Associates.
•Query entered is automatically forwarded to concerned person who
can immediately solve the same.
•Status is updated online and turn around time for different types
of queries defined.
•Alerts for unsolved queries is automatically shooted to the
higher management in instill discipline .
•Stringent actions taken against non-compliance .
NJ Advantage
Services NJ
partner - Non-NJ Advisor
OPPORTUNITIES
Ideal For:
A person who is interested in the field of Investment Advisory and
management of wealth for clients.
A person who realises the importance and responsibility of
managing investments of clients
Career Development and Growth scope:
The mutual fund industry has a huge potential in a country like India.
This is just the right time to enter into markets and to create your
market. Raising income levels, lack of other attractive investment
options, growing aggressiveness and acceptability of new products is
transforming the savings habits of the people.
If you feel you can offer quality services and reach out to this large
section of customers, you would do well. Over time you can
increase your man-power, resources, offices, etc and cater to a large
network of clients, who would now range from retail to companies, co-
operative societies, firms, trusts, HNIs, NRIs, etc.
You may even add new products and solutions in your offering over
time.
Life at NJ
Ideal For:
A person who is interested in the field of Financial Advisory and
complete Financial Planning for Clients.
A person who has a vision, passion to build and transform his
business to the next level
A person who appreciates the importance and role of quality
services and support to business and to clients.
Why NJ ?
Even if you are a very good advisor with a large clientele base –
How do you ensure that your customers remain loyal and you
develop and grow your business?
There is only one answer to these and many other questions – You
need to transform your business keeping the future in mind.
NJ Fundz Network
NJ offers a unique, complete business platform to independent
financial advisors. NJ ensures that the weaknesses and threats of
such advisors and eliminated and they come on par with the best
in the industry in terms of services, solutions and
technology. NJ Fundz Network becomes the force behind you and
your business. NJ Fundz Network truly helps you to transform your
business to a new higher level.
With the NJ support you can now freely focus adding and developing
your business and ensure a great future for yourself.
SERVICES
Mutual Fund NEST
This service is would be great for all your mutual fund investors
investing through you. They would truly appreciate this 'Complete
Online Mutual Fund Investment Account' with truly comprehensive,
insightful reports available to them. This service is a basic service
availed by all NJ Fundz Partner
FEATURES
Unique
This product is unique, one of its kind, in the industry especially with
the scope, type and quality of reports that is available.
On-line Automatic
The account is available online - any time anywhere to your clients.
Mutual Fund Nest reflects the 'real value' of your mutual fund
investment with the values updated on a daily basis. Further all mutual
fund transactions of your clients routed through you will only be
automatically displayed, creating a preference for your service
and a barrier for your competitors to break.
Comprehensive
The offering is comprehensive and complete given the contents and
from utility point of view. The account is very comprehensive with the
scope, extent, quality of reports and the insights that they deliver to
your clients.
REPORTS
Portfolio
These are truly unique reports giving valuable insights to your clients
on their investments. Reports include - Sector Exposures, AMC
Exposures, Dividend History, etc
Transaction
This report gives complete records of all the transactions made by
your clients.
Valuation
These reports, available with sub-options, would help your clients to
keep a regular track on the growth of their investments in a better
way.
Performance
This would give the overall performance of all the investments of your
clients. The reports are available with sub-options.
CRM Nest
Life Nest
Life Nest would help you as an advisor to properly plan and monitor
the protection of your clients in a better way. Life nest would also give
you information on the existing insurance plans, their features, etc
available in the markets. You may also track your clients'
investments in ULIPs and provide them updated reports on the same.
The FP Nest would allow you to plan for the various goals and
objectives for your clients, and also take print-outs of the same so as
to present it to your clients. You can also prepare Financial Plans for
your prospective clients from the FP Nest… Needless to say, the FP
Nest would make financial planning process, a very easy, simple to
understand exercise for you to undertake…
FP Nest Features:
•Child Education
•Child Marriage
•Retirement
•Purchase of Home / Car
•Protection to Family
Taking in to consideration
With FP Nest you would now help your clients achieve their goals in
life…
WEB NEST
Web Nest is a great product and a must for any advisor. It basically
is a service wherein you get your own branded website with certain
additional features/contents along with a Client Desk from where your
Clients can login to their on-line accounts.
FEATURES
Your Brand
The Website will highlight your own brand. You can put your name,
logo along with your contact details, introduction, etc. Your clients will
log-in from your website, thus creating a preference/brand for your
service.
On-line Automatic
All the reports and contents available on the website will be
updated on a daily basis, automatically so that all the information
available is the latest. Needless to say your, clients on-line investment
accounts will be updated daily.
Comprehensive
The offering is comprehensive and complete given the contents and
from utility point of view. You do not have to bother about
maintenance, upgradation, updation of data, etc from your end.
CONTENTS
Client Desk
Your clients can directly login from Client Desk on your website to
view their online accounts. A great value-add, this can highlight your
brand and service.
Returns Calculator
Your clients can get historical returns of any scheme/s according to
their sub-types as on any given date.
SIP Calculator
Your clients can even get historical SIP returns for any selected
period and amount.
Application Forms
Offer download facility to your clients for Application Forms of Mutual
Fund Schemes of any AMC
Planners
Your clients can make use of the financial planning tools like Child
Education, Child Marriage and Retirement Calculators on your website.
Guest Book
Visitors to your website can submit their details online along with any
comments/requests for your reference. You can later access this
information and even contact them.
Wealth NEST
This service is ideal for your big clients - HNIs and Corporates alike,
where you can make a head-start with this product and impress them
and make them your loyal clients. Such an integrated product with the
quality, scope of reports is unique in the industry.
FEATURES
Unique
This product is unique, one of its kind, in the industry combining all
different investment assets and products into a single automatic on-
line account. The scope of assets covered, structure and the extent /
quality of reports makes it a winner throughout.
Assets Covered
The Assets covered are: All Mutual Fund Schemes (routed through
you), Direct Equity and Fixed Income Instruments with include - Bank
Deposits, Company Fixed Deposits, Bonds, Debentures, PPF,
Debentures, NSS, Postal Savings, etc
On-line Automatic
The account is available online - any time anywhere to your clients.
Wealth nest reflects the 'real value' of your investments, especially
mutual funds and direct equities, where the values are updated on a
daily basis. Further all mutual fund transactions of your clients routed
through you will only be automatically displayed, creating a
preference for your service and a barrier for your competitors to break.
Comprehensive
The offering is comprehensive and complete given the contents and
from utility point of view. All major investment avenues that a
normal investor has is been covered under Wealth Nest. The
service offers quality, insightful reports to your clients on their
investments.
REPORTS
Consolidated Reports
•Consolidated Asset •Interest Income
Allocation
•Net Asset
•Equity Investment
•Profit & Loss
•Direct Equity
•Transaction •Profit & Loss
•Portfolio Reports
•Transaction Reports
•
Fixed Income Instruments
•Interest Income •Transaction Reports
Reports
•Maturity Reports
OBJECTIVE OF STUDY
Objectives of study
1Understanding Mutual Funds
For example:
? Then his total contribution to the fund is Rs. 50 (i.e. Number of units
held multiplied by the NAV of the scheme)
1. Portfolio Diversification
2. Professional Management
3. Less Risk
Investors acquire a diversified portfolio of securities even with a
small investment in a Mutual Fund. The risk in a diversified portfolio
is lesser than investing in merely 2 or 3 securities.
5. Liquidity
An investor may not be able to sell some of the shares held by him
very easily and quickly, whereas units of a mutual fund are far more
liquid.
6. Choice of Schemes
7. Transparency
8. Flexibility
2. No Customized Portfolios
Open-end Funds
Funds that can sell and purchase units at any point in time are
classified as Open-end Funds. The fund size (corpus) of an open-end
fund is variable (keeps changing) because of continuous selling (to
investors) and repurchases (from the investors) by the fund. An
open-end fund is not required to keep selling new units to the
investors at all times but is required to always repurchase, when an
investor wants to sell his units. The NAV of an open-end fund is
calculated every day.
Closed-end Funds
Funds that can sell a fixed number of units only during the New Fund
Offer (NFO) period are known as Closed-end Funds. The corpus of a
Closed-end Fund remains unchanged at all times. After the closure
of the offer, buying and redemption of units by the investors directly
from the Funds is not allowed. However, to protect the interests of
the investors, SEBI provides investors with two avenues to liquidate
their positions:
Load Funds
No-load Funds
All those funds that do not charge any of the above mentioned loads
are known as No-load Funds.
Tax-exempt Funds | Non-Tax-exempt Funds
Tax-exempt Funds
Funds that invest in securities free from tax are known as Tax-exempt
Funds. All open-end equity oriented funds are exempt from
distribution tax (tax for distributing income to investors). Long
term capital gains and dividend income in the hands of investors are
tax-free.
Non-Tax-exempt Funds
Although debt securities are generally less risky than equities, they are
subject to credit risk (risk of default) by the issuer at the time of
interest or principal payment. To minimize the risk of default, debt
funds usually invest in securities from issuers who are rated by credit
rating agencies and are considered to be of "Investment Grade". Debt
funds that target high returns are more risky. Based on different
investment objectives, there can be following types of debt funds:
Diversified Debt Funds - Debt funds that invest in all securities
issued by entities belonging to all sectors of the market are
known as diversified debt funds. The best feature of diversified debt
funds is that investments are properly diversified into all sectors
which results in risk reduction. Any loss incurred, on account of default
by a debt issuer, is shared by all investors which further reduces
risk for an individual investor.
aFixed Term Plan Series - Fixed Term Plan Series usually are
closed-end schemes having short term maturity period (of less
than one year) that offer a series of plans and issue units to
investors at regular intervals. Unlike closed-end funds, fixed term
plans are not listed on the exchanges. Fixed term plan series
usually invest in debt / income schemes and target short-term
investors. The objective of fixed term plan schemes is to gratify
investors by generating some expected returns in a short period.
bGilt Funds
5. Hybrid Funds
As the name suggests, hybrid funds are those funds whose portfolio
includes a blend of equities, debts and money market securities.
Hybrid funds have an equal proportion of debt and equity in their
portfolio. There are following types of hybrid funds in India:
aBalanced Funds - The portfolio of balanced funds include
assets like debt securities, convertible securities, and
equity and preference shares held in a relatively equal
proportion. The objectives of balanced funds are to reward
investors with a regular income, moderate capital
appreciation and at the same time minimizing the risk of
capital erosion. Balanced funds are appropriate for
conservative investors having a long term investment horizon.
bGrowth-and-Income Funds - Funds that combine features of
growth funds and income funds are known as Growth-and-
Income Funds. These funds invest in companies having
potential for capital appreciation and those known for issuing
high dividends. The level of risks involved in these funds is
lower than growth funds and higher than income funds.
cAsset Allocation Funds - Mutual funds may invest in financial
assets like equity, debt, money market or non-financial (physical)
assets like real estate, commodities etc.. Asset allocation funds
adopt a variable asset allocation strategy that allows fund
managers to switch over from one asset class to another at any
time depending upon their outlook for specific markets. In other
words, fund managers may switch over to equity if they expect
equity market to provide good returns and switch over to debt if
they expect debt market to provide better returns.
It should be noted that switching over from one asset class to another
is a decision taken by the fund manager on the basis of his own
judgment and understanding of specific markets, and therefore, the
success of these funds depends upon the skill of a fund manager
in anticipating market trends.
6. Commodity Funds
Those funds that focus on investing in different commodities (like
metals, food grains, crude oil etc.) or commodity companies or
commodity futures contracts are termed as Commodity Funds. A
commodity fund that invests in a single commodity or a group of
commodities is a specialized commodity fund and a commodity
fund that invests in all available commodities is a diversified
commodity fund and bears less risk than a specialized commodity
fund. "Precious Metals Fund" and Gold Funds (that invest in gold, gold
futures or shares of gold mines) are common examples of commodity
funds.
9. Fund of Funds
Whereas,
There are only 30,000 AMFI certified mutual fund agents all over
India.
There is a genuine need for more than 2 lakh mutual fund advisors
in India …(our estimates)
If you are not selling mutual funds then you must not be aware of
what they truly are and the possibilities that they offer in providing
solutions that meet the diverse needs of different clients.
Your client would ideally like you to do that and will be happy
once to offer him multiple solutions.
Reason 4: Additional source of income
Till now we haven’t really talked about what choices you can offer
to your clients … In fact, you can offer cash-flow management, to
long-term goal oriented planning to your clients.
WHEREAS:
All laws and regulations including but not limited to the Foreign
Exchange Management Act, Reserve Bank of India (RBI) guidelines, to
the extent applicable.
1The Customer shall identify and authorize those persons who are
permitted to access and use the NJ E-Account on the Website on
its behalf, and any Transaction that takes place as a result of the
same under such NJ E-Account shall be deemed to as authorized by
the Customer. The first holder of the Customer’s NJ E-Account shall
execute a Power of Attorney in favour of NJ in the form to be
provided to it by NJ. In the event the Customer’s NJ E-Account has
more than one holder, the second and third holder shall execute a
Power of Attorney in favour of the first holder through which the
first holder is entitled to carry out all Transactions on the NJ E-
Account on the Website.
Confidentiality
The Partner and Customer agree that it will use all Confidential
Information received by it from NJ only in connection with the
purpose of fulfilling its obligations as per the T&C and for no other
purpose whatsoever.
The Partner and Customer agree not to make copies of any such
Confidential Information or any part thereof except for the
performance of the obligations under the T&C.
NJ’ Rights
Indemnification
Partner and Customer expressly agree to indemnify and hold
harmless NJ, and its respective employees, directors etc, from
and against any and all damages, liabilities, actions, causes of
action, suits, claims, demands, losses, costs, and expenses arising
directly or indirectly from or in connection with Partner’s and
Customer’s acts or omissions with respect to these T&C’s.
Dispute Resolution
METHOD OF STUDY-
Data for the study was collected by the survey method with the
accessories questionnaire Keeping in mind the objectives. The primary
data was for attaining the objective while the
Secondary data were relied to write the literature.
Primary data:
Secondary data:
Secondary data means, the data has already collected and analyzed
by some one else.
Various sources of secondary data are as follow……
Books
Magazines
Internet
Newspapers
Reports
Projects etc.
Few people have been exposed to the idea & advantages of mutual
funds and even fewer actually invest in mutual funds, because of lack
of adequate no. of advisors
Measure US India
Rupees invested in Mutual Funds out of 100 > 30 <2
MF Industry size as % size of economy (GDP) 83% 6%
Total size / value of MF industry (Rs. Lac Crores) > 469 > 3.4
INSURENCE ADVISORS
2.Do you know about Mutual Fund SIP 8th wonder of the world as a product
for wealth creation of customers?
a. Yes b. No
c. know slightly
3 Do you know about revenue and commission in Mutual Fund and SIP
business for advisors?
a. Yes b. No
•know slightly
8 If no, would you like to give the exam if adequate reading materials and
training
given?
a. Yes b. No
AnyComments____________________________________________________________________
___________________________________________________________________________________
_______________________________________________
Analysis of questionere in terms of percentages
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
70%
60%
50%
cknow slightly
40%
30%
20%
10%
0%
3 Do you know about revenue and commission in Mutual Fund and SIP
business for advisors?
a. Yes b. No
cknow slightly
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Summary of findings:
Creating awareness of NJ INDIAINVEST PVT.LTD as one of the major leading
advisors, national distribution house of financial product and services in india.
While meeting the people I found that almost all of the respondents except the
rare one or two were quite aware of the company however most of them were not
quite aware of the different products of the company. When told about the whole
concept of mutual fund and how it could be a substitute to the conventional
methods of savings, most were impressed and on being made to realize how it
was a great tax-saving tool, most started considering their insurance needs. Most
of the respondents thought that insurance was a must for every working
individual. However majority of the individuals still felt that Mutual Funds was the
best method of savings and tax-planning which made it even more easier for me
to introduce the wealth generation Plans which were almost similar to ULIP plans
and also doubled as an insurance policy. I found that most of the individuals who
hadn’t been awared was due the lack of knowledge of the benefits of mutual
fund.
Some were not interested as they said they did not have enough time for the
training as made mandatory by AMFI. Out of the 10 people I surveyed I was
successful in converting 3 individuals as MF advisors for NJ FUNDZ NETWORK out
of which one was employee of HDFC Bank and two were insurance agent in well
reputed company, which was an achievement in itself.
Summary of suggestions:
NJ INDIAINVEST PVT.LTD came up with a plan deciding to waive off the training
fees and therefore, they charge only Rs 8000 as of AMFI registration charge and
being a partner of NJ FUNDZ NETWORK to wannabe Financial advisors. Post this
decision, very few people opted to become advisors as they were reluctant to
paying as most of the companies today do not charge any fees. Therefore I
strongly suggest that the training fees should be waived off permanently.
Another important thing that I would like to suggest is that a lot of effort
should be put into creating awareness of the various benefits that an
advisors gets because unfortunately a negative impression has been created of
the term mutual fund advisors in the minds of people which has to be rectified.
Bibliography
♦www.njindiainvest.com
♦www.moneycontrol.com
♦www.amfiindia.com
♦MUTUAL FUND
♦PRODUCT AND SERVICES---- TAXMAN
♦AMFI COURSE BOOK