SUMMER TRAINING REPORT

ON

SALES AND MARKETING OF UTI MUTUAL FUND

AT JAMSHEDPUR UFC

SUBMITTED TO: MR. DEEPAK KUMAR (CHIEF MANAGER)

SUBMITTED BY:

AVINASH KAUR REEN

PGDM (FINANCE AND CONTROL)
INSTITUTE OF MANAGEMENT AND INFORMATION SCIENCES
 ACKNOWLEDGEMENT

It was my great privilege that I had an opportunity to undergo my SUMMER TRAINING in

UTI MUTUAL FUND, the first mutual fund company in India at Jamshedpur UFC. As
training forms a vital part for an MBA’s career, I have taken this training at my sincerest
level and tried to learnt every bit of it. During the course of my training I would like to give
my sincerest thanks to Mr. Deepak Kumar, Chief Manager of Jamshedpur UFC, who had
rendered his full support in my learning. I would also like to give my sincere thanks to Mr.
Subhash Bose, Relationship Manager at Jamshedpur UFC and my internal guide, who has
helped me to analyze the practical scenario of mutual fund industry and also the other
staffs of Jamshedpur UFC for their continuous support given to me as and when required.

I also thank the placement department of my institute – INSTITUTE OF MANAGEMENT

AND INFORMATION SCIENCES (IMIS), for giving me this lifetime opportunity to undergo
my training at UTI MUTUAL FUND. This has been a real value addition for my career ahead.
 CONTENTS

TOPICS PAGE NUMBER

HISTORY OF MUTUAL FUNDS
4-5

CONCEPT OF MUTUAL FUNDS

6

ORGANISATION OF MUTUAL FUNDS

7-8

TYPES OF MUTUAL FUNDS

9-13

MARKETING OF PRODUCTS IN DRIVES

14-15

OBSERVATIONAL REPORT
16-18

DISCLOSURE OF SALES DEAL

19-22

SURVEY REPORT WITH

INTERPRETATIONS 23-30

MY FINDINGS
31-32

RECOMMENDATIONS
33

CONCLUSIONS
34
 HISTORY OF MUTUAL FUNDS
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at
the initiative of the Government of India and Reserve Bank of India. The history of mutual
funds in India can be broadly divided into four distinct phases

First Phase (1964-87)

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrative control of
the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in place
of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had
Rs.6,700 crores of assets under management.

Second Phase (1987-1993 Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed
by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank
Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC
established its mutual fund in June 1989 while GIC had set up its mutual fund in December
1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47,004
crores.

Third Phase (1993-2003 Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in
which the first Mutual Fund Regulations came into being, under which all mutual funds, except
UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with
Franklin Templeton) was the first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual
Fund) Regulations 1996. The number of mutual fund houses went on increasing, with many
foreign mutual funds setting up funds in India and also the industry has witnessed several
mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with
total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets
under management was way ahead of other mutual funds.

Fourth Phase (since February 2003)

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated
into two separate entities - Specified Undertaking of the Unit Trust of India with assets under
management of Rs.29,835 crores as at the end of January 2003, representing broadly, the
assets of US 64 scheme, assured return and certain other schemes & as - UTI Mutual Fund,
sponsored by SBI, PNB, BOB and LIC registered with SEBI and functions under the Mutual
Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more
than Rs.76,000 crores of assets under management.
 CONCEPT OF MUTUAL FUNDS

A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such as
shares, debentures and other securities. The income earned through these investments and
the capital appreciation realised are shared by its unit holders in proportion to the number of
units owned by them. Thus a Mutual Fund is the most suitable investment for the common man
as it offers an opportunity to invest in a diversified, professionally managed basket of
securities at a relatively low cost.
 ORGANISATION OF MUTUAL FUNDS

Sponsor
Sponsor is the person who acting alone or in combination with another body corporate
establishes a mutual fund. Sponsor must contribute at least 40% of the net worth of the
Investment Managed and meet the eligibility criteria prescribed under the Securities and
Exchange Board of India (Mutual Funds) Regulations, 1996.The Sponsor is not responsible or
liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial
contribution made by it towards setting up of the Mutual Fund.

Trust
The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian
Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration
Act, 1908.

Trustee
Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals). The
main responsibility of the Trustee is to safeguard the interest of the unit holders and inter
alias ensure that the AMC functions in the interest of investors and in accordance with the
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the
Trust Deed and the Offer Documents of the respective Schemes. At least 2/3rd directors of
the Trustee are independent directors who are not associated with the Sponsor in any manner.

Asset Management Company (AMC)

The Trustee as the Investment Manager of the Mutual Fund appoints the AMC. The AMC is
required to be approved by the Securities and Exchange Board of India (SEBI) to act as an
asset management company of the Mutual Fund. Atlas 50% of the directors of the AMC is an
independent director who is not associated with the Sponsor in any manner. The AMC must have
a net worth of at least 10 crore at all times.

Registrar and Transfer Agent

The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the
Mutual Fund. The Registrar processes the application form; redemption requests and
dispatches account statements to the unit holders. The Registrar and Transfer agent also
handles communications with investors and updates investor records.
 TYPES OF MUTUAL FUNDS
Schemes according to Maturity Period:
A mutual fund scheme can be classified into open-ended scheme or close-ended scheme
depending on its maturity period.

Open-ended Fund/ Scheme

An open-ended fund or scheme is one that is available for subscription and repurchase on a
continuous basis. These schemes do not have a fixed maturity period. Investors can
conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a
daily basis. The key feature of open-end schemes is liquidity.

Close-ended Fund/ Scheme

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open
for subscription only during a specified period at the time of launch of the scheme. Investors
can invest in the scheme at the time of the initial public issue and thereafter they can buy or
sell the units of the scheme on the stock exchanges where the units are listed. In order to
provide an exit route to the investors, some close-ended funds give an option of selling back the
units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations
stipulate that at least one of the two exit routes is provided to the investor i.e. either
repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose
NAV generally on weekly basis.

Schemes according to Investment Objective:

A scheme can also be classified as growth scheme, income scheme, or balanced scheme
considering its investment objective. Such schemes may be open-ended or close-ended schemes
as described earlier. Such schemes may be classified mainly as follows:

Growth / Equity Oriented Scheme

The aim of growth funds is to provide capital appreciation over the medium to long- term. Such
schemes normally invest a major part of their corpus in equities. Such funds have comparatively
high risks. These schemes provide different options to the investors like dividend option,
capital appreciation, etc. and the investors may choose an option depending on their
preferences. The investors must indicate the option in the application form. The mutual funds
also allow the investors to change the options at a later date. Growth schemes are good for
investors having a long-term outlook seeking appreciation over a period of time.

Income / Debt Oriented Scheme

The aim of income funds is to provide regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures, Government
securities and money market instruments. Such funds are less risky compared to equity
schemes. These funds are not affected because of fluctuations in equity markets. However,
opportunities of capital appreciation are also limited in such funds. The NAV of such funds are
affected because of change in interest rates in the country. If the interest rates fall, NAV of
such funds are likely to increase in the short run and vice versa. However, long term investors
may not bother about these fluctuations.

Balanced Fund
The aim of balanced funds is to provide both growth and regular income as such schemes invest
both in equities and fixed income securities in the proportion indicated in their offer
documents. These are appropriate for investors looking for moderate growth. They generally
invest 40-60% in equity and debt instruments. These funds are also affected because of
fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be
less volatile compared to pure equity funds.

Money Market or Liquid Fund

These funds are also income funds and their aim is to provide easy liquidity, preservation of
capital and moderate income. These schemes invest exclusively in safer short-term instruments
such as treasury bills, certificates of deposit, commercial paper and inter-bank call money,
government securities, etc. Returns on these schemes fluctuate much less compared to other
funds. These funds are appropriate for corporate and individual investors as a means to park
their surplus funds for short periods.

Gilt Fund
These funds invest exclusively in government securities. Government securities have no default
risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic
factors as is the case with income or debt oriented schemes.

Index Funds
Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P
NSE 50 index (Nifty) etc. These schemes invest in the securities in the same weightage
comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or
fall in the index, though not exactly by the same percentage due to some factors known as
"tracking error" in technical terms. Necessary disclosures in this regard are made in the offer
document of the mutual fund scheme.

There are also exchange traded index funds launched by the mutual funds which are traded on
the stock exchanges.

Sector Specific Funds

These are the funds/schemes which invest in the securities of only those sectors or industries
as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer
Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the
performance of the respective sectors/industries. While these funds may give higher returns,
they are more risky compared to diversified funds.
Investors need to keep a watch on the performance of those sectors/industries and must exit
at an appropriate time. They may also seek advice of an expert.

Gold Exchange-Traded Schemes

Exchange-traded funds (ETF) are mutual fund schemes that are listed and traded on exchanges
like stocks. ETF trading value is based on the net asset value (NAV) of the assets it represents.
Generally, ETF invest in a basket of stocks and try to replicate a stock market index such as
the S&P CNX Nifty or BSE Sensex, a market sector such as energy or technology, or a
commodity such as gold or petroleum.

Recently, the Securities and Exchange Board of India (SEBI) amended its regulations and
allowed mutual funds launch gold exchange-traded funds (GETF) in India. Two mutual funds,
UTI mutual fund and Benchmark Mutual Fund have been launched. These funds got listed on the
National Stock Exchange (NSE).

A gold-exchange traded fund unit is like a mutual fund unit backed by gold as the underlying
asset and would be held mostly in DEMAT form. An investor would get a securities certificate
issued by the mutual fund running the Gold-ETF defining the ownership of a particular amount
of gold. GETF are designed to offer investors a means of participating in the gold bullion
market without the necessity of taking physical delivery of gold, and to buy and sell through
trading of a security on a stock exchange. With gold being one of the important asset classes,
GETF will provide a better, simpler and affordable method of investing as compared to other
investment methods like bullion, gold coins, gold futures, or jewelry.

Unit-Linked Plan
Unit-linked life insurance offers the interesting option of combining protection and tax
advantages of life insurance with the attractive prospects of investing in equities. A unit-linked
plan works on a minimum premium basis and not on a sum assured one. You decide the amount
you can contribute at regular intervals. ULIP offers you insurance cover till your insurance
needs are fulfilled, beyond that it becomes an investment avenue.

Fixed Maturity Plans (FMP)

Safe, predictable and better post-tax returns than bank Fixed Deposits. Rising interest rates
not only mean rising EMI but also offer an opportunity to earn higher returns. Debt schemes
are now offering attractive returns with short-term rates in the region of 8-10%. Call money
rates have been moving higher to about 7.5-8% due to tight liquidity conditions. With the RBI
deciding to raise the cash reserve ratio (CRR), liquidity conditions have worsened. Tightness in
the money markets is expected to continue till the end of the current financial year and
investors can consider investing in short term options like FMP or floating rate schemes. Fixed
maturity plans, or FMP as they are popularly called, are close-ended funds with a fixed tenure
and invest in a portfolio of debt products whose maturity coincides with the maturity of the
product.

The primary objective of a FMP is to generate income while protecting the capital by investing
in a portfolio of debt and money market securities. The tenure can be of different maturities,
ranging from one month to five years. FMP can be compared to fixed deposits of a bank. While
a fixed deposit offers a 'guaranteed' return, returns in FMP are only 'indicative'. Typically, the
fund house fixes a 'target amount' for a scheme, which it ties up informally with borrowers
before the scheme opens. That way it knows the interest rate it will earn on its investments,
providing the 'indicative return' to investors.

Monthly Income Plans

Monthly income plans, or MIP, as they are more popularly known, are a category of mutual funds
that invest mainly in debt instruments. Only about 10-20-% of the assets are allocated to
equity stocks. But the very name – monthly income plan – is a misnomer, as these funds do not
guarantee a monthly income. Like any other fund, the returns are market-driven. Though many
fund houses strive to declare a monthly dividend, they have no such obligation. MIP are
launched with the objective of giving a monthly income to investors, but the periodicity depends
upon the option chosen by the investor. These are generally monthly, quarterly, half-yearly and
annual options. A growth option is also available, where the investors do not receive regular
dividends, but gains in the form of capital appreciation.

DATA OF UTI MUTUAL FUND, 2010

SCHEME NAME MAY, 2010
Income/Debt oriented 2158875
Growth/Equity
6786270
oriented
Balanced Scheme 1003879
Exchange Traded
35057
Funds
Funds of Funds -
Grand Total 9984081

Total A.U.M. of Mutual Fund Industry is Rs 8,03,55,906.69/- and UTI Mutual

Fund’s A.U.M is Rs 78,61,715.13/- that is UTI constitutes to about 9.78% of the
total mutual fund industry in the month of May.

Total A.U.M. of Mutual Fund Industry is Rs 67278351.82/- and UTI Mutual Fund’s
A.U.M is Rs 6444564.61/- that is UTI constitutes to about 9.57% of the total
mutual fund industry in the month of May.
 MARKETING OF THE FUNDS IN SPECIAL
DRIVES
From 1st of May, 2010 there was a special drive in the market regarding UTI MASTER
VALUE FUND; UTI MID CAP FUND; UTI BANKING SECTOR FUND which existed till 31st
of May, 2010. This notice has been given by the corporate office and all this information had
to be given to the IFAs. For this our strategy was to make a call planning to the various
IFAs of UTI, and ask them to visit to the office for further details of their brokerage
structure. We were carrying on this campaign for one month and apart from this I had also
visited my internal guide, various NGOs and organizations for mutual fund products of UTI.
The details of the visits have been given in OBSERVATIONAL REPORT. Presentations were
given to the IFAs regarding the funds so that they are able to generate large sales.

From 1st June onwards a new drive came which was regarding UTI ULIP; UTI RETIREMENT
BENEFIT PLAN; UTI CHILDREN’S CAREER PLAN - (BALANCED & ADVANTAGE PLAN).
This drive was till 3 July, 2010. For this various presentations were being done by us where
1st

I was an active member in these presentations. The presentations in various forms like for
IFAs, so that they know about the features of the product thoroughly – four such meetings
and presentations were done, presentations were given to the staffs of UNITED
INSURANCE CO. and to the staffs of the INCOME TAX DEPARTMENT. The presentation
was great because these presentations were being attended by large number of people. The
Additional Commisioner (IT) Mr. Ashok Kumar Jha had attended this presentation with
I.T.O Mr. Arjun Singh & Mr. Avinash Kumar. I had visited the department with my internal
guide and Chief Manager. At first the Chief Manager addressed the speech and briefed
them about financial planning and then I continued with briefing of the products like UTI
ULIP, UTI - MASTER VALUE FUND, UTI - BANKING SECTOR FUND & UTI – DIVIDEND
YEILD FUND. After the presentations there were also some purposeful interactions
between us and the staffs of the INCOME TAX DEPARTMENT.

Apart from these drives, from our part we were also promoting UTI – DIVIDEND YEILD
FUND, UTI – MAHILA UNIT SCHEME, UTI – MIS & MIS ADVANTAGE PLAN. The reason
for our promoting these schemes was that it was being observed by our team members that
 UTI – DIVIDEND YEILD SCHEME & UTI – MAHILA UNIT SCHEME were consistently
giving very good returns and by & large people were satisfied by these schemes, so they
were willing to reinvest in it again. As far as UTI – MIS PLAN is concerned; it is very popular
among the retired class & among the senior citizens. In these funds I was able to crack
sales deal with footfall customers.

It has also been observed that large number of business is being generated by the IFAs and
they move all over to increase their sales, but in these two months because of abolition in
entry load, the IFAs have to face a great challenge in order to generate business.
Therefore, in order to generate huge sales, continuous motivation is required to the
advisors. At the Jamshedpur UFC level we keep trying to motivate our IFAs in various ways,
by giving them insurance benefits of Mediclaim and Personal Accident Cover.

ELIGIBILITY CRITERIA FOR DISTRIBUTING MUTUAL FUND

PRODUCTS
 For being eligible as an independent financial advisor, an individual has to give SEBI
registered AMFI scheduled exams in order to test their knowledge regarding mutual funds.
 With effect from 1st June, 2010 AMFI Mutual Fund Certification programme is
discontinued.
 Test for AMFI Mutual Fund (Basic) module and AMFI Mutual Fund (Advisors) module
will be conducted by NISM from 1st June, 2010.
 The individuals have to clear these exams in order to sell mutual fund products.
 After clearing the exams, they have to pay 5000/- for getting their ARN number.
 Thereafter they can sell the mutual fund products stating their respective fund
houses.
OBSERVATIONAL REPORT
DATE VISITS MADE TO THE OBSERVATIONS
S PLACES
MR. SANJEEV PANDEY (ARN- 16275)
MONEY FUTURE (ARN- 49619)
MR. TAPAS BASAK (ARN- 24844)
12/05/2010 MR. SUBROTO CHATTERJEE (ARN-36714)
KARVY STOCK BROKING LTD (ARN- 0018)
DISTRIBUTOR – HDFC BANK
XLRI – SEEDS FOUNDATION
TATA STEEL RURAL & DEVELOPMENT
SOCIETY
13/05/2010
MR. ANJAN MITRA (ARN- 25103)
MR. SATYADIP MUKHERJEE (ARN- 34350)
ALL INDIA’S WOMEN CONFERRENCE
LION’S CLUB – SUDIPTO MUKHERJEE
14/05/2010 DBMS ENGLISH SCHOOL
MR. ARUN RAISURANA (ARN- 12524)
PRESIDENT OF SCHOOL – MRS. SUBHRA
MUKHERJEE ( PREM JYOTI PRANGAN)
15/05/2010
TATA STEEL ADVENTURE’S CLUB
ST. JOSEPH’S WELFARE SOCIETY
18/05/2010 JAMSHEDPUR URBAN & COOPERATI
VE BANK.
MR. NAVNEET KUMAR (ARN- 0883)
ST. JOSEPH’S WELFARE HOUSE – BISHOP’S
19/05/2010 HOUSE
MISSIONARIES OF CHARITIES
TATA STEEL ADVENTURE’S CLUB
TATA STEEL SPORTS FOUNDATION
20/05/2010 PRES. OF BISTUPUR GURUDWARA
MR. SANJEEV PANDEY (ARN- 16275)
25/05/2010
THE MILANEE CLUB
VCK STOCK BROKING FIRM (ARN-
26/05/2010 PRIMARY ADVISOR PVT LTD ( ARN- 70688)
28/05/2010 MR. SUBHANKAR BHOWMIK (ARN- 12758)
NGO - SAMIKET JAN VIKAS KENDRA
31/05/2010
TATA MOTORS
HILL VIEW RESORT
2/06/2010
INCOME TAX OFFICE
TATA STEEL ADVENTURE’S CLUB
3/06/2010 JAMSHEDPUR URBAN - COOPERATIVE
BANK.
Believe in need based selling in order
to achieve their targets. Try to
maintain healthy relationship between
IFA & relationship managers, a very
supportive team of IFAs. The
distributors are willing to work for the
AMC
Had a talk to the head of SEEDS
foundation but the deal cannot be
made. The deal seemed to be
successful and discussions of the
products were made in TSRDS.
Discussed the contest with the IFAs.
The deals were not successful in any
case but references can be attained.
Discussion made with the IFA was
beneficial in knowing the market
scenario at present.
Discussion made with her regarding &
its financial crisis & therefore a
suggestion given in schemes like
CRTS.
Successful discussion in the three
visits and there are possibilities of
sales being generated. Also received
references from them.
Possibilities of sales being generated
as a good discussion took place &
further the matter would be look into.
Had a talk with the accounts section in
TSAC in order to proceed with the
sales part. Funds came from Bistupur
Gurudwara & no response from Sports
Foundation.
Funds generated and sale was
executed in both the visits.
Discussion with the distributors
regarding the funds & encouraged
them to go for SIP.
Discussion with the distributor
regarding the funds & encouraged
them to go for SIP.
Discussion made with them and
possibility of sales being generated.
Discussion made with the finance head
and possibility of investment is in
third quarter. A presentation was given
to the staffs of the resort.
Had a talk to Additional Comm. of
Income Tax for presentation among
staffs, further processing of sales in
TSAC, & talk to the Branch Manager
 SOME HNI CLIENTS I VISITED
• MR. B.D. BODHANWALA- MD OF TARAPORE & COMPANY, DIRECTOR OF
TRF LTD, PRESIDENT OF SINGHBHUM CHAMBER OF COMMERCE,AN
EMINENT SOCIAL WORKER.
• MR. SUDIPTO MUKHERJEE- PAST DISTRICT GOVERNOR, LION’S CLUBS
INTERNATIONAL, DIST- 322A
• MRS. SHUBHRA MUKHERJEE- WIFE OF DR.T. MUKHERJEE, DEPUTY MD
TATA STEEL, CHAIRMAN OF PREM JYOTI PRANGAN SCHOOL
• MR. A.P.R. NAIR- CHAIRMAN OF KERALA SAMAJAM MODEL SCHOOL
AND ALL KERALA PUBLIC SCHOOLS.
• MR. RONALD D’COSTA – TRUSTEE OF CARMEL JUNIOR COLLEGE

DISCLOSURE OF SALES DEAL

 MR. SATYENDRA SAH – INVESTED RS. 60000/- IN MAHILA UNIT
SCHEME
On 11th June in the 2010, I was able to crack my first sales in UTI MAHILA UNIT SCHEME
with a footfall customer Mr. Satyendra Sah who is an employee in TATA STEEL LTD . He came
to our office in order to invest in some good schemes. As he was a risk averse person , so I
suggested him to go for this scheme because it had a balanced portfolio. The key points that I
focused on, regarding this scheme are:-

 Conservative mix of debt and equity which means that this fund has balanced risk
exposure
 This fund is our 9 years old fund and giving a consistent return of 15%
 For a 5 year investment the return generated is about 17%
 It is a 5 star rated fund as rated by value research
 The portfolio has a perfect mix of debt and equity and the debt papers have ( AAA+ &
SOV) ratings

After being convinced by my explanations, he decided to invest in this fund as his wife being
the first holder and he being the second holder. The documents required were PAN CARD of
both holders and a cheque. Therefore I was able to generate a sales of Rs 60000/-.

 MRS. ANJU RANI MINZ – INVESTED RS. 1000/- AS SIP IN UTI

MAHILA UNIT SCHEME
On 19th June, 2010 I got an SIP of Rs 1000/- in UTI MAHILA UNIT SCHEME by Mrs. Anju
Rani Minz, a school teacher. As she had a limited pay scale and not too exposed to risky funds,
she asked me to suggest a fund tailor made for her. So I suggested her the same fund but with
a different mode of payment. I told her to go for SYSTEMATIC INVESTMENT PLAN (SIP)
where on a monthly basis a minimum amount as per her convenience would be debited from her
account on a fixed date. This would be of great help to her because the amount would be
minimal and its payment also would not be irksome for her. The benefit of this SIP mode of
payment is that when the market is booming then it is obvious that your funds will grow up to
13% annually (approx) and even if the market level is down, then also with that 1000/- she would
be able to purchase more units of the fund, thereby in both cases SIP provides benefit to the
investors.

The reasons for suggesting this scheme was:-

 Fund basically designed for women who are not too exposed to risk
 Conservative mix of debt and equity which means that this fund has balanced risk
exposure
 This fund is our 9 years old fund and giving a consistent return of 15%
 For a 5 year investment the return generated is about 17%
 It is a 5 star rated fund as rated by value research
 The portfolio has a perfect mix of debt and equity and the debt papers have ( AAA+ &
SOV) ratings

Therefore with these suggestions she started with SIP of Rs 1000/- in this scheme. The
documents required were PAN CARD of Mrs Anju Rani Minz and for first payment a cheque and
thereafter her account would be automatically debited.

 MR. AVIJIT ROY – INVESTED RS 15000/- IN DIVIDEND YEILD

FUND AND RS 1000/- AS SIP IN UTI MASTER VALUE FUND.
On 12th June, 2010 Mr Avijit Roy invested Rs 15000/- in UTI DIVIDEND YIELD FUND and Rs
1000/- as SIP in UTI MASTER VALUE FUND. This sale was achieved after a visit made by the
customer thrice to the office. At first he came to inquire about the funds which were
performing well in UTI. So we had discussion about the funds for half an hour. Since he was not
aware of the mutual funds at all, so our discussion started with the basics of mutual fund. I
explained him the following topics :-

 Open ended and Close ended funds

 Management style of investing in different scripts
 Why investment style is – aggressive, moderate and conservative
 About the fund’s returns and ratings
 Time horizon of investments

So the discussion took place for a near about of 30 – 45 minutes. He also took a fact sheet of
the funds for further analysis. He was interested to invest in equity diversified funds specially
in UTI DIVIDEND YIELD FUND & UTI MASTER VALUE FUND. So regarding UTI DIVIDEND
YIELD FUND, I briefed him about :-

 Conservatively managed equity fund with 69 large cap companies and 22 mid cap
companies
 Since 3rd May, 2005 it is giving consistent dividends with a return of 22% since
inception and for a 5 year investment the return is 17%
 Twice or thrice dividends have been declared in a year with a 5 star rating by value
research
 For a long term investment perspective, it is a good fund.

Regarding UTI MASTER VALUE FUND, I briefed him the following points:-

 Moderately managed equity fund with 23 large cap companies and 28 mid cap companies
 Since 1st July, 1998 it is giving consistent dividends with a return of 22% since inception
and for a 5 year investment the return is 18%
 A 7 star rated fund by ICRA
 For a long term investment perspective, it is a good fund.
 Declared a dividend on 16th June, 2010

I also suggested him that apart from SIP or one time investment, he should also try to top up
his funds whenever he has with any amount as per his convenience. Then he made a second visit
to the office for taking the forms and signing them by second holders. As his bank account was
not open so immediate investment was not made.

Therefore in his third visit, he deposited the amount by cheque and other documents and thus
my third sale was disclosed.

 MS. PRIYANKA KUMARI – INVESTED RS 2000/- AS SIP IN UTI

MASTERVALUE FUND, RS 1000/- IN DIVIDEND YIELD FUND, AND RS
1000/- IN BALANCED FUND.
On 21st June, 2010 Ms Priyanka Kumari made investments in SIP mode in UTI MASTER VALUE
FUND, UTI DIVIDEND YIELD FUND & UTI BALANCED FUND. As she was a new entrant in
her job so wanted to go for investments through SIP mode. I briefed her about UTI
DIVIDEND FUND the following points :-

 Conservatively managed equity fund with 69 large cap companies and 22 mid cap companies
 Since 3rd May, 2005 it is giving consistent dividends with a return of 22% since inception
and for a 5 year investment the return is 17%
 Twice or thrice dividends have been declared in a year with a 5 star rating by value research
 For a long term investment perspective, it is a good fund.

And about UTI MASTER VALUE FUND, I briefed her the following points :-
  Moderately managed equity fund with 23 large cap companies and 28 mid cap companies
 Since 1st July, 1998 it is giving consistent dividends with a return of 22% since inception
and for a 5 year investment the return is 18%
 A 7 star rated fund by ICRA
 For a long term investment perspective, it is a good fund.
 Declared a dividend on 16th June, 2010

About UTI BALANCED FUND, I briefed her the following points :-

 Ideal mix of debt and equity funds with a return of 17% since inception as the date of
inception is 2nd January, 1995
 The fund has a asset allocation as 59 large cap companies, 35 mid cap companies and 8
small cap companies.
 The debt papers used for allocation were of ( SOV & AAA+ ) ratings
 An annualized dividend has also been declared in 2007 @ 21%, 2008 @ 22.5% and in 2009
@ 8.5%

The very next day she filled up the forms and started her SIP in these funds.
 ANAlYSIS OF THE SURVEY ON INVESTOR’S
PERCEPTION TOWARDS INVESTMENT IN MUTUAL
FUNDS.
This survey has been conducted on individual / retail investors, in order to know their point of
view regarding their need of investment, their risk apetite, investor’s awareness towards
investment and towards mutual funds and also towards UTI MUTUAL FUND. This survey has
been conducted for one month with a sample size of 75 customers. I also tried to put sufficient
efforts, interacting with customers and knowing their views towards various perspectives of
investments. All my observations have been mentioned in my survey report in the form of
graphs and charts.

1. PRIORITY IN FINANCIAL GOALS OF INVESTORS FOR INVESTMENT

% OF FINANCIAL GOAL

35
33.33
30 30.66
25
FREQUENCY %

20

15 16
12
10 9.33
5

0
RETIREMENT EDUCATION MARRIAGE LIFE COVER OTHERS

ATTRIBUTES

INTERPRETATION:- From a sample size of 75 investors, about 30.66% of the investors invest
for their children’s education and about 30.66% go for their retirement planning. Thus it can
be said that more focus should be made on those schemes which will investors plan for their
retirement and child’s education in a more effective manner. Thus schemes should be tailor
made keeping in view the future requirements of the investors.

2. IMPORTANT FOR AN INVESTOR

BELIEVE OF INVESTORS

60
50 49.33
40
FREQUENCY %

30
26.66
20
13.33 10.66
10
0 1.33
SAVINGS INVESTMENT SHORT ADD ON PARKING OF
INCOME BENEFITS FUNDS
ATTRIBUTES

INTERPRETATION:- From the above chart it is evident that investors believe in savings
only, they do not understand investment which counts on a long term horizon. The investors
need to be aware of the slightest difference between savings and investment because it is
ultimately the investment which accumulates wealth and helps in magnifying funds. Here
savings is 49.33% and investments 26.66% ,therefore this gap of 22.27% needs to be
narrowed.
3. RISK APETITE OF THE INVESTORS

RISK APETITE

60 52
50
40
FREQUENCY %

30 22.66
17.33
20
9.33
10
0
0
RISK AVERSE RISK TAKERS BALANCED RISK CHALLENGING OTHERS

ATTRIBUTES

INTERPRETATION:- From the sample surveyed we can make out that 52% of the investors
like to take a balanced risk like investments in mutual funds, 22.66% investors are risk
averse which means that they believe in bank fixed rate of interest and 17.33% only can
take some risk. So here we can perceive that people can afford to take a balanced risk
where they can earn taking logical risks. Keeping this point of view in mind, products should
be designed in such a way which can attract the attention of the investors at an instance.
 4. TAX PLANNING REQUIREMENT FOR INVESTORS

TAX PLANNING
STRONGLY DISAGREE 0
DISAGREE1.33
ATTRIBUTES

NOT NECESSARY 18.66

AGREE 48

STRONGLY AGREE 32

0 10 20 30 40 50

FREQUENCY %

INTERPRETATION:- About 48% of the investors have agreed that they do financial planning in
order to save tax and they are always in quest for such funds which would be covered in sec 80C
or in sec 10 of Income Tax Act. Therefore such schemes should be made available to the
investors which would be of much help in order to save taxes.

.
5. FEES BASED INCOME TO FINANCIAL ADVISORS

FEE BASED INCOME

9% 1% 14%
STRONGLY AGREE
21% AGREE
NOT NECESSARY
DISAGREE
STRONGLY DISAGREE

55%

INTERPRETATION:- To make this mutual fund industry a booming industry, huge

contribution has been given by the advisors who are the business developers of mutual
funds. Therefore, as the entry load has been waived from 1 st August,2009 advisors are not
earning much. From investor’s point of view, we came to know that 54.66% of the investors
feel that advisors should be given advisory fees for their services being provided as service
or advice is never free of cost.
6. SATISFACTORY LEVEL AFTER INVESTING IN UTI MUTUAL FUND

SATISFACTORY LEVEL
60 53.33

50

40

29.33 29.33
FREQUENCY%
30

20

10
2.66
1.33

0
V.SATISFIED SATISFIED NOT INVESTED DISSATISFIED V.DISSATISFIED

ATTRIBUTES

INTERPRETATION:- From the chart above we can see that 53.33% of the sample size are
absolutely satisfied with performance of the funds in UTI. The reason that we came to know
was that the funds had given them good returns in a span 3 - 5 years. Not only this, they
were extremely pleased with the service provided by UTI at Jamshedpur UFC.
7. REQUIREMENT OF ADVISORS AND PROMPT SERVICES GIVEN BY THE
ADVISORS – ACCORDING TO THE INVESTORS

COMBINED VIEW
40 36
35 32
29.33
30
25.33
22.66
FREQUENCY %

25 21.33
REQUIREMENT OF ADVISORS
20
14.66 PROMPT SERVICES GIVEN
15
9.33 8
10

5 2.66
0
ALWAYS SOMETIMES NOT MUCH NO NEVER

ATTRIBUTES

INTERPRETATION:- Regarding the requirement of advisors, we came to know that 32% of

investors do not require advisors because they feel that they are more aware than the
advisors and it has also been found that 36% of the advisors do not advice their clients at
the time of market crash / crisis, when required by the investors. Therefore, in this case we
have to make advisors more skilled and techno savvy so that they are able to keep a track of
the market as well as their clients, in order to deliver after sales services as and when
required. If these things can be taken care of then there would be a requirement of
advisors and investors would realize their importance.
8. PREFERENCE FOR MUTUAL FUNDS AND PREFERENCE FOR UTI ULIP

COMPARATIVE VIEW

40
34.66
35 36
30.66
30
FREQUENCY %

25 24 21.33
PREFERENCE FOR MF
20 20 20
PREFERENCE FOR UTI ULIP
15 13.33

10

5 1.33
1.33
0
ALWAYS SOMETIMES MAY BE NO NEVER

ATTRIBUTES

INTERPRETATION:- This comparative chart shows the preference of investors between bank
fixed deposits and mutual funds & also a preference between UTI ULIP and other Insurance
ULIPs. About 34.66% of investors would sometimes prefer mutual funds as compared to bank
fixed deposits. The reason for this was the return which is more than bank fixed deposits.

For UTI ULIP, about 36% of the investors would always prefer UTI ULIP as compared to other
ULIPs because there are no hidden costs involved in UTI ULIP except a 2% of annualized
charges. Therefore other ULIP products are more costly than UTI ULIP. Moreover UTI ULIP
has always given double the sum of amount invested in span of 10 years. Thus till now there is a
craze of UTI ULIP in the market giving it an edge over other ULIPs.

MY FINDINGS
 A. INSTITUTIONAL SELLING OF PRODUCTS
 We had visited many institutions like NGOs, Organizations, Schools, Hospitals etc
during these two months of training. An important observation in these visits was that the
institutions are very hesitant in investing in mutual funds because investments in mutual funds
are related to markets and they are “subject to market risk”.
 Thus, these funds are parked in bank fixed deposits or just kept ideal in bank
accounts where no useful utilization of funds is done. Moreover, the institutions do not want to
take risk with these funds because it is public money and the funds generated by them are tax
exempted.
 Therefore their demand is for such kinds of funds which are with minimum risk,
can give assured returns more than bank fixed deposits, and also give them some tax benefits.
Their demand is more for liquid segment funds which will not block the funds for any period of
time.
 Seeing their demand, we have suggested those funds, like UTI – CRTS, UTI -
TREASURY ADVANTAGE, UTI - MIS ADVANTAGE and UTI – LIQUID CASH PLAN. From our
point of view we have suggested them for UTI – CRTS, specially designed for societies and
NGOs.
 Some organizations are thinking of investing in these funds but still we need to
continuously chase them if we want to get some huge investments from these organizations.

B. ABOUT INDEPENDENT FINANCIAL ADVISORS

 As per my observation I have known that our advisors are well aware of the
products and some are good enough to update themselves with the market knowledge.
 But there are some who further need developments in knowing the market and
they need to be techno savvy i.e they need to be aware of the use of internet, EXCEL sheet for
calculations required in funds like UTI – ULIP, UTI – CCP, UTI – RBP where SIP mode of
payment is maximum and calculations are required to determine the returns in these funds.
 As far as the brokerage structure is concerned, it has been comparatively reduced
because the entry load has been abolished. This has become very challenging for the advisors as
their source of motivation is missing. Because of lack of motivation, its effect can be seen in
the business in the month of June.
 C. INVESTOR AWARENESS
 Apart from institutions if we focus on retail investors, I found that investors are
still not aware of the kind of investments they should make in mutual funds. They lack
sufficient knowledge in financial planning.
 They lack basic fundamentals of financial planning and somehow, do not understand
the current market conditions. They also have confusions regarding some basic terms used in
this mutual fund industry and the purpose of it.
 Because of this ill awareness they land up making wrong decisions in investments or
fall for miss selling of the products.
 This affects our customer base of retail investors thus affecting our business.

RECOMMENDATIONS

 Independent advisors should be given training at regular interval of time which should
constitute both theoretical and practical aspect of financial planning. These trainings can be
done on regional basis.
 Advisors should be more updated in use of internets and MS OFFICE so that they can
clear the queries of their investors as and when required.

 For those investors who absolutely lack market knowledge, a talented team of advisors
are required who are able to share their knowledge and experience with their investors and
thereby they can easily generate sales.

 One important factor in this marketing line is the “after sale services” given to the
investors at regular interval of time or as per the requirement of the investors. This will help in
strengthening the customer base of the advisors and thus repute them as good service
providers.

 Advisors should always keep a track record of their customers so that their chain of
customers is not affected.

 The advisory fees should be taken care of so that their zeal of generating more business
does not get stagnated.

 Fruitful investor’s education programme should be conducted frequently where investors

can be made aware of the financial planning and investments in mutual funds.

 A check and control should be made on those advisors who practice misselling of products
in the market.

CONCLUSION

At the end of my report, I would like to conclude that this mutual fund industry is a knowledge
based industry and it was great learning with UTI MUTUAL FUND. They have helped me in
understanding both theoretical and practical aspects in a mutual fund industry.
Nevertheless, UTI MUTUAL FUND at Jamshedpur UFC was very supportive and full of learning
and I have got a good guidance from them. It has also broaden my horizon of learning & knowing
the requirements of the investors and also their perception towards UTI MUTUAL FUND. From
this I came to know the demands of the investors and which product is tailor made for them.

I also came to know how to start a business and how to close a deal and how to convince any
investor who wants to go for an investment.

Thus all in all it had made me familiar with theoretical and practical aspect of mutual funds and
how well I can blend with them.