CHAPTER 1 PROFILE OF THE COMPANY

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1.1 Introduction Name of the company Address : Prudent Corporate Advisory Services Ltd. : 322, Indraprakash Building, Connaught Place, New Delhi-110001. Telephone No. Email address : : 011-30421191
delhicp@prudentcorporate.com,

info@prudentcorporate.com Website Type of Company Head Office : : : http://www.prudentcorporate.com/ National 701, Sears Tower, Gulbai Tekara, Off C.G. Road, Ahmadabad - 380 006 Telefax : +91-79-26463627, 26402436

Geographical areas of operation :

38 branches in 7 states
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GUJRAT: - Ahmedabad, Surat, Rajkot, Baroda, Anand, Mehsana MUMBAI: - Andheri, Fort, Ghatkopar, Kalyan, Vashi, Thane, Borivali PUNJAB: - Chandigarh, Jalandhar, Bharuch, Nadiad, Palanpur, Patan, Bhavnagar, Junagadh MAHARASHTRA: - Pune, Pimpri, Nagpur, Nasik, Aurangabad RAJASTHAN: - Udaipur, Jaipur, Jamnagar, Navsari, Himmatnagar, Valsad, Vapi DELHI: - Cannaught Place, Janak puri TAMILNADU: - Chennai MADHYA PRADESH: - Indore

1.2 Nature of the Organization Prudent CAS (Corporate Advisory Services) Ltd, originally established as Prudent Fund
Manager in 2000, is a registered investment company. 3

They offer specialized services in the areas of Personal and Corporate Investment Planning through Mutual Funds, Equities, Derivatives, Third Party Products, Fixed Income Products and Life/General Insurance. It focus on each client, build investment strategies tailored to specific client needs, and regularly review those strategies to increase the likelihood of success. It would like to know the client’s goals and aspirations. So that it can determine an investing strategy that helps you achieve your full potential. Prudent CAS (Corporate Advisory Services) ltd. gives advices to its clients regarding Financial Planning. The research team provides the desk to the necessary information regarding the different mutual fund schemes and other investments options like Insurance etc. The company sells its financial products through both direct and indirect force. Prudent Channel since its inception has a strong hold in the market through its Direct Force. It also has strong hold on the corporate channel also now wants to have a greater reach to its clients which it has already developed through its 150 certified brokers just the beginning of the force that will grow in leaps and bounds. The company also has a strong and efficient research team that is currently working from Gujarat which publishes the data that helps the clients in assessing their funds performance.

Prudent believes in understanding the customer needs and offering the product that can match his requirement (marketing) as against just selling what product is already available. Owing to the inherent professional expertise we first study and understand the investment requirements and circumstances. Our experts assess the investors' need and their risk
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real estate. wealth management. Prudent is a service based distribution company mainly operates in functional areas of finance.3 Company’s vision and mission Vision : Providing Professional services in area of Personal and Corporate Investment keeping in view the requirements of the client. insurance. 1. stock broking. Company is in the business of distribution of and marketing research of financial products like mutual funds. The best possible option provides the proper asset allocation to various asset classes and also the estimated risk involved. Mission : To help Investor in their Wealth Creation by advising them to invest in the best products. marketing & sales for financial products. Once the entire comparative analysis is done then the best possible option is advised to the investors. This approach lets us set our focus on the quality work rather than the just the quantity.profile. This helps us to provide our clients an optional basket of funds rather than selling the typical available funds. 5 .

3) Equity and Derivatives broking. you are buying 6 . 2) Investment Consultancy. Prudent CAS Ltd serves with array of financial planning. When you invest in a mutual fund. The mutual fund will have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds).4 Product Range of the Company Prudent CAS Ltd plans the financial needs in customized way. 6) Fixed Deposits (fixed income products) 7) Real Estate 8) Third party products Mutual funds A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. 4) RBI Relief funds and Infrastructure Bonds.1. Spectrum of Products in which Prudent has an expertise: 1) Mutual Funds. It analyses market trend and investment buckets in turn to have maximum returns. 5) Life and general Insurance.

all present road blocks for most people seeking to manage their finances in a profitable way. thus by pooling money together in a mutual fund. Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in. But the biggest advantage to mutual funds is diversification.1: how mutual funds work Investment consultancy Managing your money and planning your financial security are no easy tasks. tax laws that are constantly changing and a confusing assortment of investment options .performance 7 . by minimizing risk & maximizing returns. investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. Time constraints. As an experienced private investment advisor. Fig 1. we are able to offer high .units or portions of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund.

Company is in the process of creating its national presence by opening offices in various parts of the country. Equity and derivative broking Incorporated in 2004. Ltd is a Stock Broking and Depository Participant service provider. possession. your status in life and your current net worth and then advise an optimal solution. bonds. he or she is an agent of both parties. The broker is an intermediary or negotiator in the contracting of any type of bargain. When a broker arranges a sale. or concern. real or Personal Property. Infrastructure bonds 8 . A broker's function is to arrange contracts for property in which he or she has no personal interest. Prudent Broking Services Pvt. Company is a member with Bombay Stock Exchange (BSE) and it applied for membership of National Stock exchange (NSE) & Central depository services (India) Limited (CDSL). A distinguishing feature between an agent and a broker is that a broker acts as a middleperson. commodities. Rules applicable to agency are generally relevant to most transactions involving brokers. An agent's powers generally extend beyond those of a broker. or services. acting as an agent for parties who wish to buy or sell stocks. Our experts analyze your basic financial goals . The client is considered the principal and the broker acts as the client's agent.financial products that help you take right financial decisions.elements such as needs and desires.

Most of the bonds provide flexibility. Bonds can be issued in secured or unsecured form. General insurance or non-life insurance policies. half yearly. The subject matter of insurance is life of human being. electricity generation and transmission or distribution of water supply. annually and on maturity. Bonds provide good liquidity.) frequency of return/tenure/tax benefits etc. Life insurance provides risk coverage to the life of a person. In case of life insurance. the payment for life insurance policy is certain. Normally bonds issued in the form of debentures are secured. quarterly. avail loans from banks by pledging bonds/securities. listing on major stock exchanges. So life insurance is known as ‘Life Assurance’. Interest under the scheme is paid monthly. provide payments depending on the loss from a particular financial event.e. including automobile and homeowners policies. On death of the person insurance offers protection against loss of income and compensate the titleholders of the policy. Life insurance and general insurance Life insurance is a contract under which the insurer (Insurance Company) in consideration of a premium paid undertakes to pay a fixed sum of money on the death of the insured or on the expiry of a specified period of time whichever is earlier. 9 . Bond issued by Financial Institutions offer attractive returns.Bonds issued to help fund infrastructure projects such as those for land or air transport. The event insured against is sure to happen only the time of its happening is not known. liquidity and safety. The bonds carry tax advantages which enable funding at lower interest rates. option to withdraw on pre-specified dates. The flexibility can be seen from the range of options provided (i.

Till recently. It is higher in case of longer maturity period. are governed by the RBI's rules and regulations. 10 . irrespective of whether they are nationalized. Minimum deposit amount is Rs 1000/. Fixed Deposits Bank Fixed Deposits are also known as Term Deposits. Fixed deposits with the banks are nearly 100% safe as all the banks operating in the country. Ltd. There is great flexibility in maturity period and it ranges from 15days to 5 years. and give due weight age to the interest of the investor. Looking at the immense growth potential of the insurance sector in India. In a Fixed Deposit Account. or foreign. Prudent Insurance Services Pvt. Premature withdrawal is permissible but it involves loss of interest. a certain sum of money is deposited in the bank for a specified time period with a fixed rate of interest. half-yearly or annually and varies from bank to bank. Nonetheless. private. which has now been made optional.General insurance typically comprises any insurance that is not determined to be life insurance. all bank deposits were insured under the Deposit Insurance & Credit Guarantee Scheme of India. The rate of interest for Bank Fixed Deposits depends on the maturity period.and there is no upper limit. The interest can be compounded quarterly. Loan / overdraft facility is available against bank fixed deposits. was incorporated in 2008.

11 . Almost five per cent of the country's GDP is contributed to by the housing sector. emergence of large national players and entry of organized finance have worked together to make real estate an avenue retail investors can think as an asset class. this contribution to the GDP is expected to rise to 6 per cent.90% of the deposit amount from banks against fixed deposit receipts. In the next five years.bank deposits are among the safest modes of investment. Real estate offers valuable diversification to an investment portfolio. The Indian real estate sector plays a significant role in the country's economy. the price risk associated with real estate tends to be lower than that for equity. Also if chosen carefully. greater transaction cost. The real estate sector is second only to agriculture in terms of employment generation and contributes heavily towards the gross domestic product (GDP). Greater transparency. Real estate Real estate has emerged as an important asset class in recent years in India. Hence it offers income as well as growth as an asset. lower liquidity and greater information asymmetry. The downside to a real estate investment is larger investment size. Though the interest charged will be slightly more than the interest earned by the deposit. One can get loans up to 75. In most cases it is a dividend paying asset with good appreciation potential.

hotels and hospitals.4 million dwelling units. 80 to 90 million housing dwelling units will have to be constructed with a majority of them catering to middle.6 Organization structure of the company 12 .Prudent presently has a manpower pool of 400 employees. shopping malls. Turnover : .000 crores of AUM (Asset Under Management). there is a shortage of 22.5 Size in terms of manpower & turnover of organization Manpower : . 1.Almost 80 per cent of real estate developed in India is residential space. over the next 10 to 15 years.and lower-income groups. the rest comprising of offices. Thus. 1.Prudent has a sales turnover of Rs 600-700 crores out of which profit turnover is around 50 crores and the company is having over Rs 3. According to the Tenth Five-Year-Plan.

8 Present leadership The team of Prudent CAS Ltd at Head Office.2: Organizational structure of the company 1.It captures 6% of the market share just after Bajaj capital which is leading the race. Ahmadabad consists of:1.The total market share of the industry is 5 lac crores and Prudent CAS ltd. Sanjay Shah (Managing Director and CEO) 13 . 1. is now capturing 3000 crores as its AUM (asset under management).Fig1.7 Market share and position of the company in the industry Market share:.) Mr. Market position:.

) Mr. Yogi Kanani (IT Manager) 6.) Mr Shirish Patel (Director) 3.com 14 .2. Divya Singh (Customer Relationship Operation Head) Email Id: . Munjal Mehta (Broking Officer) The team of Prudent CAS Ltd at Delhi.sanjaykumar@prudentCorporate.) Mr.) Mr. Manpreet Singh (Deputy Manager) Email Id: . Subhash Chand (Relationship Manager) Email Id: . Chirag Kothari (Accounts Head) 7.com 3. Sanjay Kumar (Deputy Manager) Email Id: .manpreet@prudentCorporate. branch consists of:1.) Mr.) Mr Chirag Shah (Director) 4.) Mr.com 4. Deven Shah (Business Head) 5.com 2. C.) Mr.Delhicp@prudentCorporate.) Mr. Jignesh Shah (Research Analyst) 8.Shubhashchander@prudentCorporate.) Mr.) Mrs.P.

Fig1.3: Leadership structure of the company 1. Analysis of Questionnaires. 15 . • • Visits to different AMCs (asset management companies). Relationship Manager. the data is collected by self efforts using methods such as interviews and questionnaires • Social interactions during the training with employees of the company with different designations like deputy manager.9.1 Primary sources: In primary data collection.9 Sources of data collection 1. Customer Relationship Operation Head.

wikipedia.9.moneycontrol.2 • • • Secondary sources http://www.com/ CHAPTER – 2 SWOT ANALYSIS OF THE COMPANY 16 .1.com/ http://www.prudentcorporate.com/ http://www.

2.1 Strengths and weaknesses of the company 2. Company possesses a secured user-friendly website that contains excellent research and portfolio management tools to help client to access their portfolios round the clock. The entire focus is on security of information.1. is a national distributor. • For IT-savvy investors. designers. and accuracy of real-time reports.1 Strengths of the Company • • Prudent CAS ltd. Company has harnessed the potential of information technology for excellent research and portfolio management through specialized software which works on realtime market information and generates error-free reports. • The research team and the website are backed by a team of veteran IT professionals. 17 . programmers and high-end Servers. integrity of data. developers.

Regular Meeting with Partners on business and market Updates. Training at Regular Interval. • Company has created in-house capabilities of analyzing funds on various parameters before suggesting them to clients. Company deals in various kinds of financial products which helps the client in • • • planning their financial management better. 18 .• Company constantly endeavors to achieve optimum client & partner satisfaction and confidence building by providing various tailor-made reports according to client needs. Company deals in limited products. Company possess dedicated qualified team that research and analyze the various financial products available in the marketplace. Company is having 6% share in the market with having Rs. Company provides an Online 24X7 query module to its clients and associate. • • • 4000 plus distributors are associated with the company. Fulltime Dedicated of Team RM & CRO for client support & Assistance. 3000 crore plus assets. 2.1.2 Weaknesses of the company • • Company is having fewer branches in north India. • • Wide Branch Network.

1 Opportunities of the Company • Company can grow and expand their services & support through sales and marketing. 19 . technology. Equities. the company also has the potential to manage its geographically-spread business operations through a unique platform for independent financial advisors (IFA).office support.2 Opportunities and Threats of the Company 2. • Prudent Group expanded its horizon by offering specialized services in the areas of Personal and Corporate Investment Planning through Mutual Funds. back. Fixed Income Products. Third Party Products. training & consultation. Derivatives. Life/General Insurance and Real Estate which can help the company become a global player. • Besides having a large pool of their own clients. operations.2.2.

3 Best practices and Unique Selling Proposition (USP) of the Company 20 . Due to few branches of the company in the north India it could affect the company in the competition geographically • Company deals in limited products in turn competitor can lead the competition by dealing in those products in which company does not deal.2 Threats of the Company • • Company faces competition from various companies in the market.it now wants to have a greater reach to its clients which it has already developed through its 2000+ certified brokers just the beginning of the force that will grow in leaps and bounds. • Company is a member with Bombay Stock Exchange (BSE) and it applied for membership of National Stock exchange (NSE) & Central depository services (India) Limited (CDSL). • It also has strong hold on the corporate channel .2. 2.• Company is in the process of creating its national presence by opening offices in various parts of the country. 2.

. has only one strategy i. ‘Distribution’. 2. • • Online Valuation report for all Mutual Fund investments. On achieving a certain turnover or numbers the person recommending the company is paid certain incentives and rewards. Instead of spending money on normal marketing channels like advertisements etc.e.• Company provides the online platform to its clients. it can be direct or indirect. 21 . they focus is on getting the Consumer to use the products and services of the Company and then asking them to recommend the Company’s services to his friends. Unbiased advice across the product basket. relatives and peers. Company’s 90% dealing is web based and it provides an online 24 X 7 portfolio and query module that helps a customer to see their money growing.4 The Variations / Deviations in practices followed by the company • Prudent CAS ltd.

not in advertising their services. though this concept has been taught to us in the classroom. believes in sales through investing in different AMCs. • The diversity among the work force is not as creative as required as the major difference between workforces is the age factor.• Prudent CAS ltd. • Effective strategies are not developed to achieve the company’s goal in concern with its policies.. Advertising concept is not the part of Prudent CAS ltd. • • • Synergy in team work is seen but there was resistance in different departments. Moreover strategies taught in class to handle lower level people were different Recruitment process also made a major difference as stages taught in room 22 .

Planning and execution of sales promotion.CHAPTER – 3 ANALYSIS OF FUNCTIONAL OPERATIONS UNDERTAKEN AT THE COMPANY 3. by achieving the sales targets. Tracking and reporting at regular interval. 23 • • • • .1 Contents of the job • • Client acquisition and client relationship. Suggesting marketing strategies for creating easy sales. Generate revenues for Prudent CAS ltd. Spread the awareness about the company and company’s product.

• • • 3. Daily client meeting reporting. • • Working in the company as a Financial Advisor. 24 . It is just like a recurring deposit with the post office or bank where you put in a small amount every month. Providing right product to the right investor.3. A Systematic Investment Plan (SIP) is a vehicle offered by mutual funds to help you save regularly. and its products &services through calling and networking. Introducing Prudent CAS ltd.1 Mutual funds through SIP SIP stands for systematic investment plan.3 Products and services covered by the student 3. The difference here is that the amount is invested in a mutual fund.2 Role played by the student in the job • Dealing with asset management companies (AMCs) and previous clients on behalf of Prudent CAS ltd.3. Convince the customer to buy the product through the concept.

This fee is a percentage of the amount you are investing. weekly. Also the Bid and Offer of the Mutual Fund is around 7% and this is the front load or expense you pay for buying the units each month. however. you do not have to pay an exit load (same as an entry load. Every month you are forced to keep aside a fixed amount. the cost averages out over time. Also sometimes the Mutual fund will have annual fee charges.(daily. a number of mutual funds do not charge an entry load if you opt for an SIP. The best way to enter a mutual fund is via an SIP. except this is charged when you sell your units). Since you get more units when the NAV drops and fewer when it rises. And if you do not exit (sell your units) within a year of buying the units. So it pays to stay invested for the long-run. What most SIP Mutual funds don't tell you is that they recover their fees as monthly charges by selling your units. It helps you make money over the long term.The minimum amount to be invested can be as small as Rs 100 and the frequency of investment is usually monthly or quarterly. you would be charged an exit load. Of course you would lose money if your units lost value over time. more of your units are also being sold to fund the monthly charges of the Mutual fund. But to get the benefit of an SIP. you do sell your units within a year. 25 . fortnightly also available) It makes you disciplined in your savings. If. This could either be debited directly from your account or you could give the mutual fund post-dated cheque. Also. so while you are buying more units when the market is down. So you tide over all the ups and downs of the market without any drastic losses. think of at least a three-year time frame when you won't touch your money.

you could choose the five-in-one Fidelity Equity Fund. The fund invests across cap 26 .3. select a growth or a value fund. Only make sure that you can switch your funds from stock market to money market at short notice when the markets are really in a correction phase to safeguard the profits which you have made when the market was in a booming phase. 3. mid cap or small cap fund. Or.2 Fidelity equity fund An open ended equity growth scheme You could invest in a large cap.In spite of the above drawbacks the retail investors' benefit in the long term horizon of 5-8 years is enormous.

in-depth research carried out by our unrivalled global team of investment professionals. minimum 6 cheques) NIL Within 1 year from the date of allotment or Purchase applying First in First Out basis . It's a repeat performance! The Fidelity Tax Advantage Fund is the ICRA 7-Star Gold Award winner or Best Fund in the ELSS category for it's 3 year performance till December 31. True to Fidelity's tradition.1: Fidelity equity fund 3.sizes and in value and growth stocks as well.00% Fund Manager Benchmark index SIP availability Options Minimum Investment Entry Load Exit Load Table 3.1. basing our selection on first-hand. The Dividend option offers payout or reinvestment facilities For opening a folio: Rs. we pick stocks 'bottom-up'. 500. 2009.3 Fidelity Tax Advantage Fund An open ended equity linked saving scheme.3.000 (minimum single investment Rs. The fund has also been ranked 27 . 5. Fund objective NFO opened NFO closed Scheme opened re- To generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities 21 March 2005 19 April 2005 18 May 2005 Sandeep Kothari and Subramanian Balakrishnan BSE-200 Yes Growth and Dividend options available.000 For SIP: Rs. 5.

CPR-1 by CRISIL for the seventh consecutive quarter ending December 2009.in Period SIP availability Options Minimum Application Amount Entry Load Exit load To generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities 5 January 2006 31 January 2006 1 March 2006 Sandeep kothari:. 500 and in multiples of Rs. BSE-200 3 years Yes Growth and Dividend options available. minimum 6 installments). Special situations are unusual circumstances that a company or its stock can face. The list of special situations can go on but the real challenge is identifying them. Wouldn't you say choosing the Fidelity Tax Advantage Fund as your tax saver is choosing the best? Fund objective NFO opened NFO closed Scheme re-opened Fund Manager Benchmark index Lock .4 Fidelity Special situations Fund An open ended equity growth scheme. 500 thereafter For SIP: Rs.000 (minimum single investment of Rs. 500 and in multiples of Rs. The Dividend option offers payout or re . managing this fund since july 2006. mergers or acquisitions. 500 thereafter.3. new products or new business streams being launched or simply stocks that are out of favour. These could be turnaround stories.investment facilities For lump sum: Rs.2: Fidelity Tax Advantage Fund 3.Total working experience of 13 years. 28 . 3. NIL NIL Table 3.

which are fundamentally very strong Table 3.Fidelity's global heritage in managing special situations' funds and our 'bottom-up' stock picking approach underpinned by 360-degree research means we are ideally placed to unearth and seize these hidden treasures on your behalf. 28 March 2006 26 April 2006 25 May 2006 Nitin Bajaj and Subramanian Balakrishnan BSE-200 Yes 29 . Of the many kinds of Special Situations. A touch of the special. It's what you can add it to your portfolio next.3: Special situations Fund objective NFO opens NFO closes Scheme re-opens Fund Manager Benchmark index SIP availability To generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities including equity derivatives. some common types are: Recovery situations Unrecognized growth Asset plays Companies that are turning around from a bad performance history Companies whose growth characteristics have not yet been recognized Companies which sell at a significant discount to their underlying assets New product or new Companies launching a unique product or using existing business stream resources to generate a new business stream Corporate actions Out-of-favour stocks Companies that are potential candidates for mergers and acquisitions or restructuring Unfashionable companies.

investment facilities For opening a folio: Rs.3. 5.4: Fidelity Special situations Fund 3.000 (minimum single investment Rs. 500. The Dividend option offers payout or re .00% Table 3. minimum 6 cheques) NIL Within 1 year from the date of allotment or Purchase applying First in First Out basis: 1.5 Fidelity international opportunities fund An open ended equity growth scheme.Options Minimum Application Amount Entry Load Exit Load Growth and Dividend options available. 5. The Fidelity International Opportunities Fund invests in Indian and international markets with a focus on Asia and a mandate to 'go 30 .000 For SIP: Rs.

like securities investments. 'bottom-up' stock-picking approach and draw on the strength of our over 1000-strong research network that covers 95% of world market capitalization. are subject to market risks and there is no guarantee against loss in the Scheme or that the Scheme's objectives will be achieved. the nature of the securities market of the country. As with any investment in securities. its future prospects or returns. The Fidelity International Opportunities Fund aims to spread your risk as well as enhance your potential for rewards by putting a whole new world of opportunities within your reach. To generate long term capital appreciation from a diversified portfolio of predominantly equity and equity related securities including equity derivatives in the Indian and international markets Fund objective 31 . the Scheme may invest in overseas markets which carry risks related to fluctuations in the foreign exchange rates. Subject to necessary approvals and within the investment objectives of the Scheme.anywhere' in pursuit of investment opportunities. RISK FACTORS Mutual funds. and this does not in any manner indicate the quality of the Scheme. Past performance of the Sponsor/the AMC/the Mutual Fund does not indicate the future performance of the Scheme. repatriation of capital due to exchange controls and political circumstances. the NAV of the Units issued under the Scheme can go up or down depending on various factors and forces affecting capital markets. The fund managers use our time-tested. Fidelity International Opportunities Fund is the name of the Scheme. Please read the Scheme Information Document of the scheme carefully before investing.

NFO open date NFO close date 9 April 2007 30 April 2007 Scheme re29 May 2007 opening date Fund Managers Benchmark index SIP availability Options Minimum Application Amount Entry Load Exit load Sandeep Kothari and Subramanian Balakrishnan A custom benchmark created using the BSE-200 to the extent of 65% of performance comparison portfolio and MSCI AC Asia Pacific ex Japan for balance 35% Yes Growth and Dividend options available.5: Fidelity international opportunities fund 3.000 per application NIL Within 1 year from the date of allotment or Purchase applying First in First Out basis: 1. The Dividend option offers payout or reinvestment facilities Initial application amount: Rs.00% Table 3. 5.3.000 per application Minimum Additional application amount: Rs.6 Fidelity global real Assets funds 32 . 1.

ship building etc. Natural Gas. 2010 NFO date NFO date opening closing 33 .Global Real Asset Securities Fund. Water) Fund objective To aim to achieve long-term capital growth from a portfolio which will be primarily invested in Fidelity Funds .) • • Real Estate Utilities (Electricity. roads.An open ended fund of funds scheme. etc.) Materials (Gold. construction. Copper etc. Solar.) Industrials (Infrastructure . an offshore fund launched by Fidelity Funds (an open ended investment company incorporated in Luxembourg) and similar to an Indian mutual fund scheme. It is a fund of funds scheme and its underlying fund invests in stocks underpinned by tangible or real assets and its investment canvas encompasses a wide universe: • • • Energy (Oil. Agriculture. ports. 2010 January 29. January 11. cement. Uranium. Power. Steel.aerospace. Coal. The Fidelity Global Real Assets Fund is a first of its kind. Chemicals. Aluminium. rail. Platinum.

00% A switch-out or a withdrawal under SWP or a transfer under STP may also attract an Exit Load /CDSC like any Redemption. The dividend option offers dividend payout and dividend reinvestment facilities. NIL For redemption within 1 year from the date of allotment or purchase applying First in First Out basis . Money Market Instruments and/or liquid/cash schemes of mutual funds registered with SEBI: 0%-20. The weights assigned to each individual index while calculating the custom benchmark is 20%. 500 with a minimum 6 installments amounting to Rs.6: Fidelity global real Assets funds 3.000. 5. 34 .6 Methods used on the job Concept selling :. 10%. Lump sum: Rs.Explaining the concept to the customer so that he knows why is the product profitable to him. Yes Fund Manager Benchmark Index Scheme reopens on Options Minimum Investment Entry load Exit Load SIPavailability 3. February 26. 5000.1. 20% and 30% respectively. 2010 Growth and dividend. MSCI ACWI Utilities. and (ii) Units issued by way of bonus. until he knows about the product it would not be effective for the customer. MSCI ACWI Real Estate. No Exit Load will be chargeable in case of redemption of. if any. MSCI Materials and MSCI Energy. (i) Units allotted on account of dividend re-investments. 20%. SIP: Minimum installment of Rs. The Scheme shall invest at least 65% of its net assets in shares /units of the Underlying Scheme Subramanian Balakrishnan with a working experience of over 10 years A custom benchmark which is a blend of the following indices MSCI ACWI Industrials. The customer has the right to know every detail about the product. Auto-debit facility available from NFO onwards.Normal Asset Allocation Shares/units of the: Underlying Scheme*/Foreign Securities : 80%100%.

3.1 Impediments of the company 35 .We provide such services in which we personally manage and explain everything to the customer. Personal selling :.Emotional selling :.Every person has set up minds about what and how his family will survive after him. Anything can happen to anyone.7 Highlights and impediments faced by the student 3. we offer such products of different AMCs through which we help the customers for a safe and secure future. follows it to maintain good level with the customer. Thus.7. The customer does not have to do much effort for knowing everything. The company believes in service before sales and thus.

every single thing is handled and explained in detail.2 Highlights of the company • The company has a positive point that it provides with total transparency. • Best after sale services are provided to the customer. • • Some agents misguide clients for their commission. Some agents are not very qualified for the advice.• As Prudent CAS ltd. 36 . they prefers to invest directly in the AMCs instead to invest through distributors. and can be said as an Agent company. any detail can be taken at any point of time. people do not seem interested in doing investments through Agents as they confuse about the investment advice given. • Since today’s investors become more aware.7. 3. • Since company mostly works on web portal. an investor can check their portfolio any time with the help of a user name and password given by the company. is a distributor company. Even minute details are provided to the customer.

CHAPTER-4 ANALYSIS OF QUESTIONNAIRE ON INVESTMENTS 37 .

38 .e. of people (in %) 47 40 13 Table 4. belongs to the age group of 18 – 30 years are interested in investments the most.1: Age group INTERPRETATION This analysis shows that the young generation i. People belonging to the age group of 30 – 45 are also interested to invest their money because of their earning age.1: Age groups AG E 45 . this analysis has been done. 4.55 yrs 18 .This analysis is done on the basis of the data collected from the questionnaire filled.1 Which age group do you belong? Age Groups (in years) 18 – 30 30 – 45 45 – 55 55 & above No.45 yrs Fig 4. This questionnaire had been filled by 30 persons and on the basis of information given by them.30 yrs 30 . People of age group 45 – 55 are least interested in investments as they are mainly interested in savings.

2 What is your Occupation? Occupation Private Government Business Others No.2: Occupations Fig 4. 39 . The Pie chart is showing this information graphically.4. of people 13 7 6 4 Table 4. The number of people in business is 6 and lowest number of people is in others services or job 4.2: Occupation INTERPRETATION This analysis shows that the maximum numbers of people 13 out of 30 are engaged in private services which are followed by Government services in which 7 persons are engaged.

3: Yearly income INTERPRETATION This analysis shows that the 4 of the 30 persons earns below 1 lakh and hence are less potential to invest their money.3: Yearly income Fig 4. And the maximum. of people 4 9 13 4 Table 4.e. 9 persons earns between 1 and 3 lacs and it is a middle income group which have potential to invest found risks in it.4.3 How much is your yearly income? Yearly income(in lakhs) Below 1 1-3 3-5 5 & above No. Only 4 persons out of 30 earns above 5 lakhs. i. 40 . 13 persons earns annual income between 3 and 5 lacs and have the most potential to invest.

e. 41 .20 20 .4 How much percent (%) of your income you invest? Percent of the income 0 .4.4: Invested income (in %) Fig 4. i.4: Invested income (in %) INTERPRETATION This analysis shows that the maximum numbers of persons.35 35 . of people 20 8 1 1 Table 4.50 50 & above No. 20 like to invest up to 20% of their monthly income in different avenues and rest of the part is used to spend. The people like to invest more than 20% and less than 35% of their incomes are 8 and the lowest who are maximum risk takers who like to invest 35% to 50% and above 50% (both have 1 person each) of their income and this shows the want to increase their wealth rapidly.

42 . LIC. 25 of 30 people prefer to invest in mutual funds than in other avenues like fixed deposits.4. Equity. Only 5 persons prefer to invest in other avenues of the investment than mutual funds. LIC.5 In which avenue do you generally prefer to invest in? Investment Avenues Mutual Fund Others ( FD. of People 25 5 Table 4. etc. PPF. Insurance. This shows that most of the people prefer investing in mutual funds.5 Avenues preference INTERPRETATION This analysis shows that how many people give preference to the mutual funds than other avenues of investments. etc ) No.5: Avenues preference Fig 4. This is because of their less capability of bearing risks. Equity.

23% invest to save tax this is generally for the people whose most of the part goes in tax. they want to convert their funds in to cash in short term. This means that this means they want their money to grow. of People (in Percent) 31 33 23 7 16 Table 4.e.6: Purpose behind investment Fig 4.4. 16% invest because of liquidity reason i. 7% invest on a basis to earn Brand name Equity.6: Purpose behind investment INTERPRETATION This analysis shows that what the actual reason for the investment is. This means they generally prefer those Mutual Funds whose returns are maximum. Most people 33% invest to create their wealth. 31% invest to get returns. 43 .6 What is your purpose behind Investment? Reasons for Investment Returns Wealth Creation Tax Saving Brand Name Equity Liquidity No.

4.7: Duration for investment Fig 4. people want to invest in the different avenues of investing. of people 11 19 Table 4.7: Duration for investment INTERPRETATION This analysis shows that for how much duration.7 For how much period do you prefer to invest? Duration for Investment Short Term (0-5 years) Long Term (5 & above) No. 19 out of 30 people like to invest for the longer duration and 11 persons like to invest for the shorter duration which means that they invest just to have profit and people investing for longer duration have wealth creation as their main motive 44 .

etc) Table 4. 13 Franklinn. of people (in Percent) 30 23 15 Others (Reliance. 45 .8 Which brand of mutual funds do you prefer to invest in? Types of Mutual Funds Kotak Fidelity Religare No.. 23% like to invest in Fidelity brand and 15% people like to invest in Religare brand and minimum number of people i.4.8: Mutual funds preferred INTERPRETATION This analysis shows that how many people like to invest in which Mutual Funds.e.8: Mutual funds preferred Fig 4. 13% likes to invest in other mutual funds than mentioned like reliance and franklinn. Maximum 30% people like to invest in Kotak brand which shows that Kotak is most popular among the investors.

CHAPTER-5 LESSONS LEARNT 46 .

2 Practical knowledge gained during the summer training in various functional areas. • Parties eligible as Investors. The practical knowledge gained during summer training in terms of various concepts. At Prudent Corporate Advisory Service (CAS) ltd. • Advantages and Disadvantages of Insurance. Gained Knowledge in terms of Finance:• Concepts of Mutual Fund. We have gained knowledge about the various Financial Products like Mutual fund and Insurance products. • Advantages and Disadvantages of Mutual Fund.5. • Working of Mutual Fund. • Category of Mutual Fund. it was an excellent experience. Company and Fidelity ltd Company and for insurance in Kotak life Insurance which gave us knowledge about mutual fund and insurance products. We visited at various Asset Management Company (AMC) and insurance company like Kotak Mahindra Old Mutual Life Insurance Ltd Company and Religare Enterprises ltd. • Insurance. 5. 47 .1 Experience about the working environment obtaining in the Company. • Different Types of Insurance. I have been guided with a pool of knowledge in investments and insurance. As a part of summer training.

Human Resource department does not exist in the branch. 48 .3 Difficulties in the Summer Training • • Class room principles are very difficult to apply in business world. • It also helps the students to relate their theoretical knowledge with the practical environment this helps the students in building their logic and they can have a real experience.5. So cannot gain much knowledge about HR department. Suggestion: • Students should be sent for the summer training because it gives them the practical knowledge and also they have the opportunity to interact with different client and experienced employees.

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