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Sales Promotion

&
Distribution
of
Birla Sun Life Mutual Fund
Prepared by-
Saurabh Jain
What is a Mutual Fund ?

•It is a pool of money, collected from investors, and is


invested according to certain investment objectives

•The ownership of the fund is thus joint or mutual, the


fund belongs to all investors.
Pass
back Pool
to money

Generate Invest
Working of Mutual Fund
How does a Mutual Fund

AMC
Saving
s
Trus Investmen
t ts
Unit
Unit s Return
holders s

Registrar

Trust
SEBI
Custodian AMC
History of Mutual Fund

First phase Second phase Third phase


(1964-87) (1987-93) (1993-2003)
UTI by RBI Entry of public Entry of private
sector funds. sector funds.

Fourth phase
(since 2003)
UTI & UTI
mutual fund.
Types of Mutual Fund
Investment in Mutual Fund

Advantage Disadvantage
• Professional • No guarantees.
Management. • Fees and
• Diversification. commissions.
• Return potential. • Management Risk.
• Low costs.
• Liquidity.
• Choice of schemes.
• Transparency.
About Company
Building strong brands
Structure of BSLAMC
Distribution network
v IFA (Individual Fund Advisor): Acquisition
of individual fund advisor with the company
to sale the product of Birla Sun Life.

v N. D. (National Distributors): Company


make the contract with big distributors to
sale the product of company.

v S.M.E. (Small & Micro enterprises):


Small enterprises have to empanelled with
company to sale the product of Birla Sun Life.
v P.S.U. (Public sector units): Company
distribute their product with various public
sector units like: Axis Bank.

v Direct marketing( Tele – marketing):


Company do the call to their existing big
customers to purchase the product of
company.
SWOT Analysis
Position of the
company today
Mutual Fund
Classifications
Types of Funds - By

Equity Debt Money Market

Equity Funds Fixed Income Money Market


Index Funds Funds Mutual Funds
Sector Funds GILT Funds

Balanced Funds Liquid Funds


ELSS ( Equity linked saving
• 3 year lock in period
• Minimum investment of 90% in equity markets at
all times
• So ELSS investment automatically leads to
investment in equity shares.
• Open or closed ended.
• Eligible under Section 80 C upto Rs.1 lakh allowed
• Dividends are tax free.
• Benefit of Long term Capital gain taxation.
How are funds different in terms of
their risk profile?

Investors have to face the risk- return


Sales Promotion
What is the role of Brokers in a mutual
fund?
• Enable investment managers to buy sell
securities

• Brokers are registered members of the stock


exchange

• They charge a commission for their services.

• In some cases provide investment managers with


research reports

• Act as an important source of market information.


Distribution Channels
• Individual Agents- A person has to sign an
agreement with a fund on non judicial stamp
paper. He has to be AMFI certified also to sell
Mutual Fund products.

• Distribution Companies

• Banks and NBFCs

• Post Offices

• Direct Marketing
Challenges involved in

distribution
Market condition
channels
• Convincing the investors
• Lack of schemes’ knowledge
• Giving ideal advice
• Not having a proper office
• Extensive availability of the central govt.
assured return
• Delay (in Liquidity)
• Tardy inter-city payment system
• Transaction cost of establishing contact
What are the expenses
incurred by a mutual fund?

Investment management fees to the AMC


• Custodian’s fees
• Trustee fees
• Registrar and transfer agent fees
• Marketing and distribution expenses
• Operating expenses
• Audit fees
• Legal expenses
• Cost of mandatory advertisements & communications to
investors
Wealth cycle for investors
MY WORK
Methodology
ACQUIRNG IFA’S
•Collect the data through survey

•Also refer to database provided by the company-

•Persuade client through telephonic conversation by explaining the product

•Personally meet client and carry out the procedure for empanelling him with
the company

•Follow client activities afterwards


AMFI TRAINING

• AMFI certification is mandatory for brokers to deal
in mutual funds

• The training is kept on weekends.

• Free of cost

• Our main motto


REAL ESTATE AGENTS
AND WHOLESALERS

Our tasks
•To make them invest in our liquid fund

•Make them brokers


OUR LIQ UID FUND

• In banks, one gets only 3-4 % interest

• Our liquid fund gives 7-8% return


INVEST IN LIQUID FUND
Q . An investor invested in an approved Liquid Fund on
Jan. 1, 2009 for Rs. 10,00,000/-. He wants his money
back on Jan 10, 2009. Calculate the interest money he
will receive. ( Ignore indexation).
Answer :
• Assuming 8% return-
Interest- 10,00,000 × 8/100 × 10/ 365 =
Rs. 2191.78
MA KE THEM

NUMERICAL
Q . If
a broker finds an investor who invests in an
approved Liquid Fund on Jan. 1, 2009 for Rs.
10,00,000/-. He got his money back on Jan 10,
2009. Calculate the brokerage money broker will
receive.

Brokerage-10,00,000 × 8/100 × 10/ 365 × 0.30 = Rs.


657.53
Occupation

OCCUPATION
AWARENESS ABOUT
INTEREST IN BECOMING
 
AWARENESS ABOUT
BRAND IMAGE OF BIRLA
INDEPENDENT VARIABLES-
• Reputation of company (RC)
• Schemes (S)
• Relationship with distributors (RD)
• Advertisement(AD)

DEPENDENT VARIABLE-

•Overall reputation
OR is a function of RC, S, RD & AD.

i.e. OR = f (RC, S, RD, AD)

OR= -0.317+0.137* RC+0.1069*S+0.3209*


RD+0.612 AD
• R2 has found to be 0.654.

• It means that there is a strength of 65 % between


dependent & independent variables.

• 65 % characteristics of dependent variable can be


explained with the help of all independent variables.
SCATTER DIAGRAMS
DURATION OF BUSINESS
AWARENESS ABOUT
INVESTMENT IN
 
AWARENESS ABOUT
BRAND IMAGE OF
KEY OBSERVATIONS &
FINDINGS
2) BSLAMC has successfully able to penetrate the Indian
mutual fund industry with the help of independent financial
advisors.

2) Total assets has maximized by a net Rs 6398 cr. from


January to February 2009.

3) BSLAMC has evolved as the best performer even in the


worst scenario when market was going down.

4) There is a very cut throat competition in mutual fund


industry & if BSLAMC able to continue its past 1 year
performance, it will come at the second spot just after
Reliance MF in the upcoming years.
5) Direct interaction with IFAs brings many issues. These were
positive as well as negative. All these issues were of equal
importance & BSLAMC has able to tackle these issues very
wisely.

6) There are many challenges involved in distribution channels


which have been mentioned in the project.

7) Regression analysis shows that Relationship with


distributors & advertisement are the two most important
factors affecting the overall performance of BSLAMC.
8) Majority of the distributors believe that BSLAMC has done
really a great job even in the low market. BSLAMC leads this
tally followed by Reliance MF.
9)Generally it is believe that if a person is associated
with a company for a good number of years (>
6years), the more he can generate business for that
company. To invite customers, it doesn’t demand only
experience, but a good convincing power & a good
knowledge of this field.
Thank
You