pragnesh 03

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Project Guide:- Prepared By:-

Prof. Prakash Chawla Anaghan Pragnesh L

Roll no. :2

MBA: 2010-12

S.K.Patel Institute of Management and

Computer Studies, Gandhinagar


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Research methodology

Introduction About company

About summer work

About title

Graphical data presentation

Statistical Tools

Research findings Recommendations

Conclusion

ReferencesIn this life, always, everywhere, it is the rich who power bear, Wealth is at the root, its clear, even of thekings dominion - The Hitopadesa

The world does not even respect gods without wealth - Chanakya


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Research Objectives:

Primary Objective:

To know the role of financial advisors in creating wealth for

investors for Gandhinagar District.

Secondary Objectives:

To study the perception of financial advisors about different

investment options available in the market.

To know priority level between different criteria of investment

like safety level, retunes, liquidity, tax benefit, maturity ofinvestment.

To study about different type of services provided by financial

advisors to their clients.


First, wealth is difficult to obtain, then guarding it is then a strain, Losing it is a bit like death, itsbetter not to think of it - The Hitopadesa


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Scope of the study:1) This report is conducted for Gandhinagar district only.

2)This report is on basis of financial advisors not investors.Sampling Design:

Sampling Method: convenient sampling method. Sample size: 150

Sampling Frame: Gandhinagar, Kadi, Kalol, Dahegam, and

Manasa

Time period: 2 months (from 15th

may, 2011 to 15th

July, 2011)Data collection:

Primary Data:- Questionnaire

Secondary Data:- Internet, Magazines, Newspaper, Periodicals

and Fact sheets of different AMCs and NJ India Invest.


Money is troublesome to earn And more troublesome to guard. Getting it or spending it, bringsunhappiness. Money is a curse - Panchatantra


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Limitations of Study:

As sampling technique is convenient sampling so it may result

in personal bias and even respondents may give bias answer.

This research reflects the role of financial advisors in creatingwealth for investors in Gandhinagar district only. It cannot be

generalized for other cities/districts.

This project has mostly catered to the advisor of LIC and not

of other insurance companies. Insufficient knowledge of every kind of investment sometimes

sticks a respondent at particular answer, which inversely affect

towards the objective of study.


After creating wealth , turn your attention to charity and integrity. Wealth is like us. Transitoryperishable in a moment - Chanakya


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NJ FUNDZ NETWORK

A division of NJ IndiaInvest Pvt. Ltd., one of the leading advisors &

distributors of financial products & services in India.

NJ, established in 1994, has rich experience in the concerned domain

Current StrengthHead Office : - Surat

No. of Branches :- 110

No. of Certified Advisors :- 15000+

No. of Client Through Partners :- 12+ Lac

Assets Under Advice :- Rs.10,000cr.No Of Employees :- 850+

Largest Mutual Fund Distributor across India in terms of Retail

Mutual Fund Business.

In this life, always, everywhere, it is the rich who power bear, Wealth is at the root, its clear, even of thekings dominion - The Hitopadesa



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My project work is to meet Financial Advisor such as

Insurance Agents, Mutual Fund Advisor, Broker, Tax Planner,

and Charted Accountant and convince them towards to sell

Mutual Fund under NJ Fundz.

In simple my target is to search Financial Advisor and convert

them in to NJ Partner. To convert Financial Advisors in to NJ

Partner we held 3 BOP (Business Opportunity Programme on

Mutual Fund) at our Gandhinagar Branch. These programmes

were conducted by Mr. Raviraj Khatri, Senior sales-executive,NJ India Invest.


Wealth is unmatched beauty, wealth is auspicious, wealth is bursting youth, wealth is life itself- Chanakya

There is nothing in this world that wealth cannot accomplish, So let the sole aim of men be,making money -Panchtantra


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INDIAA Growth Story for Long Term

Indian GDP expected to Grow at 6% + rate for coming years due to

following reasons :

Favorable DemographicsHalf the Indian Population is below 25

years of age.

Massive Infrastructure Spending- Development of Roads, Ports,

Telecom

( About $50 Billion to be spended during 2007-12)

ReformsFDI, Tax Reforms.

Expected to be Second Largest Economy in the world by 2050


Seek wealth with indifference to it and for good causes. It is better to stay away from mud than toclean its stains - The Hitopadesa


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PENETRATION OF FINANCIAL PRODUCTS

Investor Base Across Various Financial Products

* Source: AMFI, CBDT, RBI, SEBI, NSDL, CDSL Dataworks Survey 2010


Wealth gives in life a mighty stature, with it one is both strong and wise- The Hitopadesa


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Investors Looking for Products with following Features

Excellent Returns that can beat Inflation

Liquidity of the money

Tax Efficient Returns

Tax Deduction benefits under Section 80 C

Professionally Managed

Transparent

Easily UnderstoodLooking for products which help in Wealth Creation in

long term

Low Cost


Prosperity will leave those who are satisfied with the wealth they have - Chanakya


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Broker

21%Wealth

Adviso

rs

12%

Tax

Planne

r

5%

Charte

d

Accou

ntant

4%

Insurance

Adviso

r

52%

Mutua

l FundAdviso

r

6%

PROFILE OF

RESPONDENTS

Lessthan

200

15% 200 to

400

13%

400 to

600

18%

600 to

80021%

800

and

above

33%

CLIENTS

RELATIONSHIP



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1 year

to 3

years13% 3 yearsto 5

years

10%

5 years

to 7years

30%

More

than 7

years

47%

EXPERIENCE

25 2033

72

Rs.

10000 to

Rs.

20000

Rs.

20000 to

Rs.

30000

Rs.

30000 to

Rs.

40000

More

than Rs.

40000

MONTHLY INCOME


Wealth on her own accord seeks as home a man of mettle, brave, prompt and expedient, firm infriendships and unfazed by misfortune - Panchtantra


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Capital

Appreciation,

56

Reason

able

Return

with

Safety,

86

Retirem

ent

Benefit,

51

Tax

Saving

Benefit,

37

High

Return,

31

SecureFuture

of

Depend

ents, 39

Others,

41

INVESTMENT OBJECTIVES BY

CLIENTS

68

59

22

93

2613

72

52

18 21

SavingsA/c

Post-officeNSC

Share/Debent

FixDepos

it

Public

Statutor

y

Insurance

Gold/Silver

MutualFun

d

RealEstates

PRODUCTS PREFERED

BY CLIENTS


Nothing in this world there is that wealth cannot accomplish, So let the sole aim of men be,making money - Panchtantra


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3

77

12

23

7

33

01020

30405060708090

PRODUCTS

SUGGESTED BY FIA

TO CLIENTS

72

0 0 0 0

22

56

0102030405060

7080

Life

Pension

Statutor

Public

NSC

ULIPs

ELSS

U/S 80 C AVENUES USE

BY FIA TO CREATE

WEALTH


Wealth accumulated through illegal or unethical means lasts for ten years. In the eleventh year it iscompletely lost - Chanakya


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53 5673

42

11

42

0

1020304050607080

FACTORS

CONSIDERED BY

FINANCIAL ADVISORS 70

47 51

41

46

FACTORS CONSIDERED

BY CLIENTS


Virtues and pleasures are depend on wealth. Wealth enriches and enhances life- Chanakya


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ANOVA for Monthly Income and Years of Experience:

Ho:variation in mean Monthly Income of Financial Advisors is not due to years of

experience in financial advisory business

H1: variation in mean Monthly Income of Financial Advisors is due to years of experience

in financial advisory business

Table value of F for V1 = 3 & V2 = 9 at 5% significant level is 3.86

As F calculated(2.01) is < the F table value, Ho is accepted.

There are some other factors also influence Monthly Income of financial advisors.

Number of clients

Invested investment volume

Consulting charge / Commission / Brokerage / Premium

Location i.e. Gandhinagar FIA have more income as compare to Mansa or Dahegam.


The prey of animals lives on land and of birds in the sky, Fish fall prey in water, the rich are preyed oneverywhere - The Hitopadesa


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Rank Correlation between Risk and Return for various financial products:

R is 0.943 so it indicates highly positive correlation

between Risk and Return for various financial products.Two way correlation between monthly income and years of experience in

financial advisory business

There is a perfect or highly positive correlation between

monthly income of financial advisors and years of experience in industry

Correlation and ANOVA between monthly income and years of experience

in financial advisory business give opposite resultsANOVA gives more reliable result because experience is

not only one factor which affects monthly income.


Where does it come? Where does it go? It is impossible to figure our wealth s path- Chanakya


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Chi-square test for various financial products

PRODUCTS X2 Calculated X2 Table value AcceptReal Estates 30.937 9.488 H1

Mutual Funds 47.12 3.84 H1PMS 25.48 3.84 H1

Fix Deposits 59.03 3.84 H1There is significant difference between Risk and Return for all four

products

Risk and Return for all produsts are dependent


If you are satisfied with whatever wealth you have and consider it as large as a treasure trove, Then youalready have all you deserve and will get no more - Hitopdesa


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SWOT Analysis of NJ Fundz NetworkStrength:

Large Networks

Strong brand name NJ India Invest

All product under one roof

Many years experience in mutual fundmarket.

Dedicated and responsive workforce/staff.

Strong Research Support

Opportunities:

Scope for opening of new branches in

country

Increasing income of people will leads to

increase in investmentTo tap the untapped market.

To spared awareness of its brand name.

To increase markets share

Weakness:

Less awareness about mutual fund in

market

Low advertising

Focus only on urban segments

Sales promotion is not effective

Threats:

Market uncertainty

Consumers do not invest easily

Consumer perception about NJ Funds is

purely private company.

Competitor develops a superior portal



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Wealth requires pain to acquire and in troubled times, anxiety, In affluence, it causes some strangedelusion, can it really be a cause for comfort? - The Hitopadesa

More than half of respondents suggest insurance to their

clients

Portfolio Management Service is best option because it has

relatively less risk and high return.

Safety-low risk is considered by clients at time of

investments

There are at some extent positive correlation between years of

experience and monthly income of financial advisors.

Most of respondents mean half consider Income as important

factor to give advice to client


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For Insurance Agents recommendation is to become Mutual Fund Advisor becausethey have great earning opportunity without much more efforts,

They have already good clients base

They had secured life of their clients to through insurance, now give Mutual Fund to

increase their wealth.

Now-a-days people are seeking to take calculated risk and earn more withsystematically.

For short term investment bonds, debts, etc. and for long term investment stock, SIP

(Mutual Funds), Gold, Real Estates etc.

Prefer Companys Fix deposits for investment as compare to Bank Fix Deposits and

Post-Saving.In financial advisory business at initial stage you have to sustain only because,

At this stage you have less clients

Public are not aware of you

You have less contacts with your respective suppliers

So, monthly income will be definitely low up to 5 years.



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Smart work is appreciated and not the hard work

Maintaining relation with customer

Good and satisfactory service to the investors

Practical aspect of learning

Team work and cooperation with subordinate

To succeed, men need wealth. Elephants are needed to capture more wild elephants- Chanakya


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The people are basically of conservative nature and hence are veryprecautious about their hard earned money. Hence they would like

to play it safe when it comes to spending of their money.

Security and returns are the two main reasons that are taken into

consideration before making an investment. Bank fixed deposits and post office savings seem to be most

preferred one among the investors because it is considered to be the

most secured one.

Shares and mutual funds were considered to be very risky and

hence that seemed to be the last choice of the general mass.

Amongst mutual fund and shares people preferred shares because

the possessed complete knowledge about the shares but had very

little knowledge about the mutual fund industry.


Where does it come? Where does it go? It is impossible to figure our wealth s path- Chanak a


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Book References

Bhalia V.K., 2004, Investment Manafement Eleventh Edition ,New Delhi, Sultan chand & company ltd.

Prasanna Chandra, 2009, Investment Analysis and Portfolio Management, Third Edition, New Delhi, Tata McGraw -Hill Publishing company ltd.

H.R.Ramanath, Research Methodology and Operation Research, Bombay/New Delhi/Ahmedabad, Himalaya Publishing House

Websites References

http://www.pwc.com/gx/en/financial-services/pdf/pwc_ma_india.pdf

www.nseindia.com

www.moneycontrol.com

www.njfundz.com

http://www.itrust.in/

http://www.itrust.in/content/tax-planning/How-Can-I-Save-Taxes-This-Year-India

http://www.itrust.in/content/mutual-funds/mutual-funds-process-of-investing

http://www.itrust.in/content/mutual-funds/mutual-funds-and-taxes-in-india

http://www.itrust.in/content/mutual-funds/mutual-funds-fivetips

http://www.itrust.in/fixed-deposit.action

http://www.wealthcareindia.com/fixed_deposit.htm

http://faculty.ed.umuc.edu/.../A%20Chi%20Square%20Test%20for%20Goodness%20of%20Fit

www.dpo.uab.edu/~guswatte/py214/lectures/ch14_factorialANOVA

www.swlearning.com/finance/ehrhardt/focused/sg03

www.posterous.com/getfile/files.posterous.com/.../SWOT_Analysis

www.altadynamics.com/.../Porter%205%20forces%20analysis



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