A Study

On
“Different types of investment avenues and role of financial planning in wealth
creation”

A project report submitted to in the partial fulfillment of the requirement of

the award of
MASTER OF BUSINESS ADMINISTRATION

Submitted by
Padmanabhan Pratik Madhu.
MBA-2nd Semester
Roll no – 005

Under the guidance of

Prof. Megha Hemdev
AMITY GLOBAL BUSINESS SCHOOL (MBA)
MALAD WEST, MUMBAI
MAHARASHTRA

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 ACKNOWLEDGEMENT

The only place where success comes before work is in the dictionary.
It is great exposure for me using my theoretical knowledge which I have learnt till 2nd
semester of Master of Business Administration (M.B.A) in my project work which I have
done at Birla Sun Life Mutual Fund Pvt. Ltd. It is great pleasure to use knowledge in
practical way in our tenure of training.

I like to first heartily thanks to AMITY GLOBAL BUSINESS SCHOOL for including
project in our M.B.A. syllabus. It is helpful to learn real situation of industry and helpful
for increasing in our practical knowledge.

I thankful to Dr. Pankaj Shukla, Principal of Amity Global Business School for giving me
chance to do my project work. I am very thankful to Mr. Nehal Desai, Branch Manager of
Birla Sun Life Mutual Fund Pvt. Ltd. As without his help and guidance this project is not
possible, he shares his good knowledge and guide in my project work. I am also thankful
to all staff member of Birla Sun Life Mutual Fund Pvt. Ltd.

I am thankful to my project guide Mr. Burzin Todiwala for guiding during my project
tenure. As he helps me whenever I need and spare his valuable time. Without this project
is not possible. I am thankful to my parents and my friends as they always motivate me
and help me directly or indirectly in my project work.

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 DECLARATION

I hereby declare that the project report entitled“NEED OF FINANCIAL ADVISOR

FOR MUTUAL FUND INVESTORS”under the guidance of Prof.SUBHENDU
BHATTACHARYASubmitted in partial fulfillment of the requirements for the award of
the degree of Master of Business Administration to AMITY GLOBAL BUSINESS
SCHOOL,is my original work – research study and not submitted for the award of any
other degree/diploma/fellowship or other similar titles or prizes to any other
institution/organization or university by any other person.

Roll no – 052

Date: -

Name: - Shiv Rughnathwala

Sign: -

Place: - AGBS, MUMBAI

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 TABLE OF CONTENTS

Sr. No. Subject Page No.

1 05

2 Literature Review 06-07

3 What is an investment? 08-16

4 Types of investment

5 Different investment avenues

a)Shares
b)Bonds
c)Mutual funds
i)SIP vs Lump sum
d)Fixed deposit
c)Real estate
i)Reits funds in india
f)U-lips
i)Mutual funds vs Ulips

6 Tax on different investments 44-45

7 The role of financial planning in wealth 46-59

creation
8 Who should seek for financial planning 63

9 What financial planning gives you 64-65

10 Six steps of financial planning 66-67

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 EXECUTIVE SUMMARY

This project has been a great learning experience for me; at the same time, it gave me enough
scope to implement my analytical ability. This project as a whole can be divided into two parts:

The first part gives an insight about the mutual funds and its various aspects. It is purely based
on whatever I learned at Birla Sun Life Mutual Fund. One can have a brief knowledge about
mutual funds and all its basics through the project. Other than that the real servings come when
one moves ahead. Some of the most interesting questions regarding mutual funds have been
covered. Some of them are: Why has it become one of the largest financial intermediaries? How
investors do chose between funds? Most popular stocks among fund managers, most lucrative
sectors for fund managers, a special report on Systematic Investment Plan, does fund
performance persists and the topping of all the servings in the form of portfolio analysis tool and
its application.

All the topics have been covered in a very systematic way. The language has been kept simple so
that even a layman could understand. All the data have been well analyzed with the help of
charts and graphs.

The second part consists of data and their analysis, collected through a survey done on 60 people.
It covers the topic´ need of financial advisors for mutual fund investors´. The data collected has
been well organized and presented. Hope the research findings and conclusions will be of use. It
has also covered why people don’t want to go for financial advisors? The advisors can take
further steps to approach more and more people and indulge them for taking their advices.

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BONUS SHARES
At times, companies decide to issue bonus shares to its shareholders. It is also a type of dividend.
Bonus shares are free shares given to existing shareholders and many times they are given in lieu of
dividends.

LIQUIDITY
The shares of the company which is listed on stock exchanges have the benefit of any time liquidity.
The shares can very easily transfer ownership

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