PENETRATION OF SIP IN SUB BROKING CHANNEL

A SUMMER INTERNSHIP REPORT

Submitted by
ARUNIM MEHROTRA

Registration No.:
11707621
in partial fulfillment of Summer Internship for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION

Mittal School of Business

LOVELY PROFESSIONAL UNIVERSITY
Phagwara, Punjab
July, 2019
 TABLE OF CONTENTS

Certificate…………………………………………………………………………………………..I
Acknowledgement………………………………………………………………………………….II
List of Figures………………………………………………………………………………………III
List of Tables……………………………………………………………………………………….IV
List of Abbreviations……………………………………………………………………………….V
Executive Summary………………………………………………………………………………...VI
Chapter 1: Introduction to Company……………………………………………………………….1-7
1.1 About the Company…………………………………………………………………………….1-2
1.2 Organizational structure of the Reliance Mutual Funds………………………………………..2-4
1.3 Investor cell of Reliance Mutual Funds…………………………………………………………4
1.4 Investment policy of the Reliance Mutual Funds……………………………………………….4-6
1.5 Major Deals……………………………………………………………………………………..6
1.6 Objectives of Reliance Mutual Fund……………………………………………………………6
1.7 Different Features of Reliance Mutual Fund……………………………………………………6
1.8 SWOT Analysis…………………………………………………………………………………7
Chapter 2: Mutual Funds……………………………………………………………………………8-16
2.1 What is mutual funds……………………………………………………………………………8
2.2 The Basics of a Mutual Fund……………………………………………………………………8

2.3 KEY TAKEAWAYS……………………………………………………………………………8-9

2.4 How Mutual Funds Work……………………………………………………………………….9
2.5 Types of Mutual Funds……………………………………………………………..…………...9-12
2.6 Mutual Fund Fees……………………………………………………………………………….12
2.7 Classes of Mutual Fund Shares…………………………………………………………………12-13
2.8 Advantages of Mutual Funds……………………………………………………………………13-14
2.9 Disadvantages of Mutual Funds…………………………………………………………………14-15
2.10 Pros and Cons…………………………………………………………………………………..16
Chapter 3: Amount of Work Done…………………………………………………………………..17-18
3.1 Theoretical Concepts…………………………………………………………………………….17
3.2 Selling Process…………………………………………………………………………………...17
3.3 Functional Process Followed…………………………………………………………………….17
3.4 Route Plan………………………………………………………………………………………..17-18
Chapter 4: Quality of Work Done……………………………………………………………………19-20

4.1 Data Presentation…………………………………………………………………………………19-20

Chapter 5 Recommendations…………………………………………………………………………21

Refrences……………………………………………………………………………………………..VII
s
 ACKNOWLEDGEMENT

With regard to my Summer Internship with Reliance Nippon Life Asset Management Ltd. I would like to
thank each and every one who has offered help, guidance and support whenever required.

First and foremost I would like to express my gratitude to Ms. Vandana Tiwari(SRM),
Mr. Piyush Kalra (RM), Mr. Rishabh Pahwa (RM) and other employees of Reliance Nippon Life Asset
Management ltd for their support and guidance in the Project Work.

I extend my sincere thanks to the following persons of Bluechip Corporate Investment Centre Limited and
Motilal Oswal where I have done my research work.

I am extremely grateful to my internship mentor Dr. Preeti Mehra for her valuable guidance and timely
suggestions. I would like to thank all faculty members of Lovely Professional University, Jalandhar for the
valuable guidance.
 LIST OF FIGURES

Figure 1: Figure 1.1 Anil Dhirubhai Ambani Chairman of Reliance Mutual Fund………….. 2
Figure 2: Figure 1.2 Structure of Reliance Mutual Fund…………………………………….. 3
Figure 3: Figure 4.1 Showing the total number of customers handling by

Bluechip Corporate Investment Centre Limited, penetration of Mutual Funds

in Customer Base and penetration of SIP in the customer base………………………………21

 LIST OF TABLES

Table 1: Table 1.1 Key Information of Reliance Mutual Fund……………………………………2

Table 2: Table 1.2 Financial performance of the sponsor (past three years)………………………3
Table 3: Table 3.1 Functional Process Followed…………………………………………………..17

Table 4: Table 3.2 Showing all the branches which I have covered of

Bluechip Corporate Investment Centre Limited……………………………………………………18

 LIST OF ABBREVIATIONS

1. SIP: Systematic Investment Plan

2. SRM: Senior Regional Manager
3. RM: Relationship Manager
4. AMC: Asset Management Company
5. MSCI: Morgan Stanley Capital International
6. NIFTY: National Stock Exchange Fifty
7. RMF: Reliance Mutual Fund
8. AAUM: Average Assets Under Management
9. QAAUM: Quarterly Average Assets Under Management
10. RCL: Reliance Corporate Limited
11. RCTC: Reliance Capital Trustee Co. Limited
12. SEBI: Securities and Exchange Board of India
13. MF: Mutual Funds
14. IMD: India Meteorological Department
15. PSP: Program Segment Prefix
16. MAM: Modern Accountancy Marketing
17. EPFO: Employees' Provident Fund Organisation
18. PFRDA: Pension Fund Regulatory and Development Authority
19. CMPFO: Coal Mines Provident Fund Organisation
20. NLI: Nippon Life Insurance Company of America
21. NBFC: Non Banking Financial Company
22. AG: “Aktiengesellschaft”, which is a German term for a public limited company
23. HDFC: Housing Development Finance Corporation
24. IPIN: Internet Personal Identification Number
25. PAN: Permanent Account Number
26. NFO: New Fund Offered
27. CIR: Commited Information Rate
28. SID: Security Identifier
29. DISC: Domestic International Sales Corporation
30. SAI: Statement of Additional Information
31. CD: Certificate of Deposit
32. NAV: Net Asset Value
33. NAVPS: Net Asset Value Per Share
34. AAPL: Apple Inc. American Association of Professional Landmen
35. CEO: Chief Executive Officer
36. US: United States
37. P/E: Price Earning
38. P/B: Price to Book
39. TM: Trademark
40. S&P: Standard and Poor
41. DJIA: Dow Jones Industrial Average
42. ETF: Exchange Traded Fund
43. MFS: Monitary and Financial Statistics
44. IPO: Inintial Public Offering
45. FDIC: Federal Deposit Insurance Corporation
46. SEC: Securities and Exchange Comission
47. IRA: Individual Retirement Account
48. IIFL: India Infoline Finance Limited
49. NCR: National Capital Region
50. ICICI: Industrial Credit and Investment Corporation od India
51. SBI: State Bank of India
52. AUM: Assets Under Management
 EXECUTIVE SUMMARY

The summer internship at Reliance Mutual Fund made me undertaken the investment scenarios and behavior
of investors in India. The project that I was involved in with while working at Reliance Mutual Fund
includes Penetration of SIP in sub broking channel i.e. to know about how much SIP our distributors are
doing on their total customer base and which product of SIP they are selling the most and of which AMC.

Analyzing the investors behaviour towards the mutual funds includes the understanding of what people think
about the mutual fund industry and whether they are invested or not invested in mutual funds.

I have read about mutual funds in books and internet but after doing internship with the Mutual Fund
Indistry I got the practical knowledge about the mutual funds and how much valuable investment option is
mutual fund in our life if we are planning for our future goals. So for our long term plans mutual funds is
best.

While Doing my internship I have come across different types of distributors and understand there working
patter. It Gives me an practical exposure to deal differently witch different distributor. My internship
includes placing our approved products to our channel partners and generating business from them.

My role in the organization also includes collecting business from our partners , scrutinize applications and
make it punched with Karvy ( Registrar and transfer agent for Reliance Mutual Fund.

CHAPTER 1: INTRODUCTION TO COMPANY.

1.1 ABOUT THE COMPANY

Reliance Capital Limited is an Indian diversified financial services holding company promoted by
Reliance Anil Dhirubhai Ambani Group. Reliance Capital, a constituent of Nifty Midcap 50 and MSCI
Global Small Cap Index, is a part of the Reliance Group. It is amongst India's leading and most valuable
financial services companies in the private sector. As on March 31, 2017, the net worth of the company
stood at Rs 16,548 crore, while its total assets as on the date stood at Rs 82,209 crore. In Fortune India
500 list of 2018, Reliance Capital was ranked as the 77th largest corporation in India with 5th rank in 'Non-
Banking Finance' category.
Reliance Capital has businesses in asset management, mutual funds, life insurance and general
insurance, commercial finance, home finance, stock broking, wealth management services, distribution of
financial products, private equity, asset reconstruction, proprietary investments and other activities in
financial services. The company operates across India and has over 20 million customers and workforce of
approximately 15, 595 as of May 1, 2017.
Anil Ambani, promoter of Reliance Group is the Chairman of Reliance Capital, while Amitabh
Jhunjhunwala is the Vice-Chairman and Anmol Ambani as the Executive Director.

Reliance Mutual Fund (RMF) is one of India's leading mutual funds, with Average Assets Under
Management (AAUM) of Rs 2,33,628.56 Crores (January 2019 - March 2019 QAAUM) and 90.67 lakhs
folios (as on March 31, 2019).
RMF which is one of the fastest growing mutual funds in India, offers investors a well-rounded portfolio of
products to meet varying investor requirements and has presence in 300 cities (as on March 31, 2019) across
the country. RMF constantly endeavours to launch innovative products and customer service initiatives to
increase value to investors.

Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882 with
Reliance Capital Limited (RCL), as the Settler/Sponsor and Reliance Capital Trustee Co. Limited (RCTC),
as the Trustee.
Reliance Mutual Fund has been registered with the Securities & Exchange Board of India (SEBI) vide
registration number MF/022/95/1 dated June 30, 1995. The name of Reliance Capital Mutual Fund was
changed to Reliance Mutual Fund effective March 11,2004 vide SEBI's letter no. IMD/PSP/4958/2004 dated
March 11,2004. RMF was formed to launch various schemes under which units are issued to the public with
a view to contribute to the capital market and to provide investors the opportunities to make investments in
diversified securities.

1.1.1 Reliance Nippon Life Asset Management

Reliance Nippon Life Asset Management (RNAM; formerly Reliance Capital Asset Management Limited)
is one of the largest asset manager in India and manages and advises Rs. 3,58,059 crore as per March 2017,
across mutual funds, pension funds, managed accounts, alternative investments and offshore funds. RNAM
is the only AMC to have the mandate for fund management by EPFO, PFRDA and CMPFO.
RNAM is the asset manager of Reliance Mutual Fund (RMF) Schemes. Sundeep Sikka is the Executive
Director and Chief Executive Officer of RNAM.
As per March 2017, RMF manages the highest assets from the ‘beyond Top 15 cities’ category across all
AMCs in the industry.
RNAM acts as the advisor for India focused Equity and Fixed Income funds in Japan (launched by Nissay
Asset Management) and Korea (Samsung Asset Management). RNAM also manages offshore funds through
its subsidiaries in Singapore and Mauritius thereby catering to investors across Asia, the Middle East, the
UK, the US, and Europe.

Fig. 1.1 Anil Dhirubhai

Ambani Chairman of
Reliance Mutual Fund

Mutual Fund Reliance Mutual Fund

Setup Date Jun-30-1995

Incorporation Date Feb-24-1995

Sponsor Nippon Life Insurance Company / Reliance Capital Limited

Trustee Reliance Capital Trustee Co. Ltd.

Chairman Anil Dhirubhai Ambani

CEO / MD Mr. Sundeep Sikka

CIO Mr. Amit Tripathi (D) / Mr. Manish Gunwani (E)

Compliance Officer Mr. Muneesh Sud

Investor Service Officer Mr. Bhalchandra Joshi

Assets Managed Rs. 233616.82 crore (Mar-31-2019)

Table 1.1 Key Information of Reliance Mutual Fund

1.2 Organizational structure of the Reliance Mutual Funds

Reliance Capital Limited (RCL) & Nippon Life Insurance Company (“NLI”) are Sponsor & Co-Sponsor
of Reliance Mutual Fund. Reliance Capital Trustee Co. Limited (RCTC) is an unlisted Public Limited
Company incorporated under the Companies Act, 1956 on March 01, 1995 is The Trustee. Reliance
Nippon Life Asset Management Limited (RNLAM) (formerly Reliance Capital Asset Management
Limited) is an unlisted Public Limited is The Asset Management Company. Deutsche Bank A.G. is
Custodian and Karvy Computershare (Private) Limited is Registrar & Transfer Agent. Establishment of
Mutual Fund Reliance Mutual Fund (RMF) as a Trust in agreement with the requirements of the Indian
Trust Act, 1882 by RCL acting as its Settler /Sponsor. The Trust came into existence vide 2 Trust Deed
dated April 25, 1995 (the “Original Trust Deed”), which was properly registered under the Indian
Registration Act, 1908. The Original Trust Deed has also been accordingly reformed from time to time.
In order to consolidate all reforms to the Original Trust Deed, an Amended and Restated Trust Deed was
executed on March 15, 2011 (the “Amended and Restated Trust Deed”), which was then accordingly
registered under the Indian Registration Act, 1908 and also submitted with the Securities & Exchange
Board of India (SEBI). The Mutual Fund was registered with SEBI on June 30, 1995 under Registration
Code MF/ 022/95/1. B. Sponsor & Co-Sponsor Reliance Mutual Fund (“RMF”) has been established as
a Trust by Reliance Capital Limited (RCL). RCL has also been the benefactor of RMF following its
beginning. Since, March, 2016, Nippon Life Insurance Company (“NLI”) has emerged as the co-sponsor
of RMF. RCL is a RBI registered Non Banking Finance Company (NBFC) having business interests in
Asset Management, Life Insurance, General Insurance, Private Equity, Proprietary Investments, Stock
Broking, & other activities in the Financial Services Sector. Nippon Life Insurance Company (“NLI”) is
a Japan‟s greatest private life insurer and presents a wide variety of financial products, including
individual and group life and annuity policies through different distribution channels, primarily
employing face-to-face sales channels for its conventional insurance products. It primarily operates in
Japan, North America, Europe and Asia, and its headquarter is located in Osaka, Japan. NLI carries out
asset management operations in Asia, through its subsidiary Nissay Asset Management Corporation
(“Nissay”), which regulates assets internationally.

Fig. 1.2 Structure of Reliance Mutual Fund

 Table 1.2 Financial performance of the sponsor (past three years)

The Asset Management Company Reliance Nippon Life Asset Management Limited (RNLAM) (formerly
Reliance Capital Asset Management Limited) is an unlisted Public Limited Company incorporated under the
Companies Act, 1956 on February 24, 1995, having its registered office is located at „H‟ Block, 1st Floor,
Dhirubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai 400710 and its Corporate Office situated
at “Reliance Centre, 7th Floor South Wing, Off Western Express Highway, Santacruz (East), Mumbai - 400
055. RNLAM is a subsidiary of RCL. RNLAM has been selected as an Asset Manager of Reliance Mutual
Fund by the Trustee i.e. RCTC, vide Investment Management Agreement (IMA) dated May 12, 1995. The
IMA has been administrated between RCTC and RNLAM and has since been reformed on August 12, 1997,
on January 20, 2004 and then 5 on February 17, 2011. RNLAM is a branch of RCL. Currently, RCL holds
51% and NLI holds 44.57% of its total issued and paid-up equity share capital.The balance of its issued and
paid up equity share capital is possessed by other shareholders. The net worth of the AMC based on
unaudited financial statements as on March 31, 2016 is Rs. 1822.80 (market value in Crs.)

1.3 Investor cell of Reliance Mutual Funds

For assisting investors Reliance Mutual Fund has established investors cell for aiding and gathering any
information or document investors need. Facilities of these services are categorized into following :-
1. Transaction related services e-payouts for redemption/ dividends a. Instant SIP Registration For
improving the complete SIP investor‟s experience, Reliance Mutual Fund has started Instant SIP
Registration for HDFC bank account holders. This is the first online plate form allowing absolutely
paperless SIP Registration and that too in less than 5 Minutes. b. Registration of IPIN This facility is
accessible by individual customers with Mode of Holding Single/Joint/Any One or Survivor. Only
existent customers with PAN & Bank Account Number updated in the folio can receive the IPIN created
instantly
2. Account statement related facilities
3. Creative products
1.4 Investment policy of the Reliance Mutual Funds

Investment policy of Reliance mutual fund is pro investors where they can opt to invest in different
ways.
a. Open Ended Schemes: Here investors have an option to either subscribe during NFO or during
continuous offer.

b. Close Ended Schemes: Subscriptions by the investors can only be made during NFO period. However,
SEBI Circular SEBI/IMD/CIR No. 12/147132/08 dated December 11, 2008, the units of all close ended
schemes (except Equity Linked Savings Schemes) initiated after December 12, 2008 should be listed on
recognized stock exchange compulsarily.

c. For Interval schemes, customer can subscribe for the units of the Scheme either during the NFO
period of the Scheme or during the Specified Transaction Period as may be specified in the respective
SID and authorized by Regulation read with further reforms issued 16 from time to time. The units held
in dematerialized form can be traded on the Stock Exchange.

d. The Application forms for Schemes shall be obtained at all the DISC of the AMC, R and T Agent and
/or also at the collection centers, branches of the authorized banks, during the business hours as declared
in the respective application forms/updated SAI and SID. It is also available on
www.reliancemutual.com

e. In terms of SEBI Circular SEBI/IMD/CIR No.11/183204/ 2009 dated November 13, 2009 units of the
selective Schemes of RMF can be transacted by investors through all the registered stock brokers of the
National Stock Exchange of India Limited and / or Bombay Stock Exchange Limited registered with
AMFI and empanelled as traders with RNLAM.

f. According to SEBI Circular CIR/IMD/DF/17/2010 dated November 9, 2010, that units of mutual
funds schemes may be allowed for transaction through clearing members of the registered Stock
Exchanges and Depository participants of registered Depositories and only redemption request of the
units held in demat form can be processed.

g. Payment of redemption proceeds to the trading/ clearing members by RMF/ RNLAM/ its Registrar
shall discharge RMF/ RNLAM of its 17 responsibility of payment of redemption proceeds to individual
customer. Correspondingly while purchasing units, crediting units into trading/ clearing member pool
account shall discharge RMF/ RNLAM of its responsibility to allot units to individual customer.

h. Investors shall get a redemption amount (if units are redeemed) and units (if units are purchased)
through broker/clearing member‟s pool account. RMF / RNLAM will pay proceeds to the
broker/clearing member (in case of redemption) and broker/clearing member in turn to the respective
investor and accordingly units shall be credited by RMF / RNLAM into broker/clearing member‟s pool
account (in case of purchase) and broker/clearing member in turn to the respective customer.

i. Stock Exchange, Clearing members and Depository participants will be eligible for consideration as
official points of acceptance.

j. Mutual fund Distributor (MF distributor) registered with Association of Mutual Funds in India (AMFI)
and authorized by the concerned recognized stock exchanges shall be eligible and can employ
recognized stock exchanges‟ infrastructure to purchase and redeem mutual fund units on account of
investors, directly from RMF/ RNLAM.
 k. The MF distributors shall not manage payout and pay in of funds as well as units on account of
customer. Pay in will be directly received 18 by accredited clearing corporation and payout will be
directly made to investor account. Similarly, units shall be credited and debited directly from the demat
account of investors.

l. Non-demat transactions are also authorized through stock exchange platform.

m. Transaction through Reliance Mutual Fund application is a facility, through which customers can
Purchase / Switch / Redeem units, view account details and ask for their account statement using their
Personal Computer, Tablet, Mobile Phone or any other suitable electronic device, enabled with internet
subject to particular conditions.

n. Investor can also do transactions by calling at Call Centre. Transactions through Call Centre is a
facility through which a customer can purchase units of various open ended Schemes of RMF by
contacting call centre at Toll Free Call Centre number 1800 300 11111.

o. All cheques and bank drafts must be made in favour of “the respective Scheme name” and crossed
“Account. Payee only” including the application number on the back side of each cheque/ draft along
with the application form shall not be subjected to any such rejection. 19

p. Acceptance of “Cash‟‟ as a means of subscription has been started for many schemes with
Subscription Limit only up to Rs. 50,000/- per investor, per financial year.

q. Application shall be declined if subscription Limit is finished and application does not contain
complete details.

r. Payment of Proceeds: Payment in the form of refunds, redemptions, dividend, etc. regarding cash
investments shall be paid only through banking channel i.e. in the registered bank account given in the
folio.

s. The means of holding can be either be Single, Joint or Anyone or Survivor, If an Account has more
than one holder, the first-named holder (as determined by the records of the Registrar) only will be sent
all notices and correspondence regarding the Account, along with the proceeds of any redemption
request or dividend or other distributions.

1.5 Major Deals

In 2011, Reliance Capital sold 26% stake in its life insurance business, Reliance Life Insurance, to Nippon
Life Insurance (Nissay), amongst the world's largest life insurers, with an AUM of over 600 billion. The
transaction was completed at Rs. 3,082 crore for a 26 per cent stake, valuing Reliance Life Insurance at $2.6
billion.
In 2012, Nippon Life Insurance bought 26% stake in Reliance Capital Asset Management for Rs. 1,450
crore.
Reports indicate that Reliance Capital is also planning to sell a 26% stake in its general insurance business,
Reliance General Insurance, at an appropriate time.] India's leading financial daily Economic Times wrote,
"Since Reliance General Insurance is one of the leading players with 8.4 per cent market share, the proposed
stake sale is expected to generate handsome capital gains for Reliance Capital... Besides de-leveraging the
balance sheet, the ongoing restructuring should also help Reliance Capital conserve capital and generate
better return ratios.
Reliance Capital in July 2014 announced the merger of its global film and media services business with
Prime Focus to create an entity with a combined turnover of over Rs 1,800 crore.
In July 2017, it sold its 1% share in Paytm to China's Alibaba Group for Rs 275 crore, making a profit of
2,600%.

1.6 Objectives of Reliance Mutual Fund

1. To carry on the activity of a mutual fund as may be permitted at law, and formulate and devise
various collective schemes of savings and investments for people in India and abroad, and also
ensure liquidity of investments for the unit holders.
2. To deploy funds thus raised so as to help the unit holders earn reasonable returns on their savings.
3. To take such steps as may be necessary from time to time realise the effects without limitation.

1.7 Different features of Reliance Mutual Fund

1. It has a rich contribution network all over the country.

2. It is a pioneer in the Mutual Fund Industry.
3. RMF is a Mutual Fund expert having more than 20 years of experience.
4. It provides excellent customer service.
5. It offers tax benefits on a wide range of investment instruments.

1.8 SWOT Analysis of Reliance Mutual Fund

1.8.1 STRENGTHS
 Brandname.Individual
 Known to be ethical.
 Presence in all over India.
 Experienced people in the company.
 Unbiasness.

1.8.2 WEAKNESS
 Lack of manpower.
 Changing consumer behaviour.

1.8.3 OPPORTUNITIES
 Zero base.
 Lack of proper service available in the market.
 Huge potential of of Mutual Fund market.
 Growth of Mutual Fund Market.
 Increase in income level of people.
 Absence of leader in the market in distribution of mutual funds.

1.8.4 THREATS
 Individual brokers.
 Its competitor’s promotional activities.
 Its competitor’s new business plans.
 Lack of manpower.
 CHAPTER 2: MUTUAL FUNDS

2.1 What is mutual funds?

A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to
invest in securities such as stocks, bonds, money market instruments, and other assets. Mutual funds are
operated by professional money managers, who allocate the fund's assets and attempt to produce capital
gains or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the
investment objectives stated in its prospectus.

Mutual funds give small or individual investors access to professionally managed portfolios of equities,
bonds and other securities. Each shareholder, therefore, participates proportionally in the gains or losses of
the fund. Mutual funds invest in a vast number of securities, and performance is usually tracked as the
change in the total market cap of the fund—derived by the aggregating performance of the underlying
investments.

2.2 The Basics of a Mutual Fund

Mutual funds pool money from the investing public and use that money to buy other securities, usually
stocks and bonds. The value of the mutual fund company depends on the performance of the securities it
decides to buy. So, when you buy a unit or share of a mutual fund, you are buying the performance of its
portfolio or more precisely, a part of the portfolio's value. Investing in a share of a mutual fund is different
from investing in shares of stock. Unlike stock, mutual fund shares do not give its holders any voting rights.
A share of a mutual fund represents investments in many different stocks (or other securities) instead of just
one holding.

That's why the price of a mutual fund share is referred to as the net asset value (NAV) per share, sometimes
expressed as NAVPS. A fund's NAV is derived by dividing the total value of the securities in the portfolio
by the total amount of shares outstanding. Outstanding shares are those held by all shareholders, institutional
investors, and company officers or insiders. Mutual fund shares can typically be purchased or redeemed as
needed at the fund's current NAV, which—unlike a stock price—doesn't fluctuate during market hours, but
is settled at the end of each trading day.

The average mutual fund holds hundreds of different securities, which means mutual fund shareholders gain
important diversification at a low price. Consider an investor who buys only Google stock before the
company has a bad quarter. He stands to lose a great deal of value because all of his dollars are tied to one
company. On the other hand, a different investor may buy shares of a mutual fund that happens to own some
Google stock. When Google has a bad quarter, she only loses a fraction as much because Google is just a
small part of the fund's portfolio.
 2.3 KEY TAKEAWAYS

 A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds or other
securities.
 Mutual funds give small or individual investors access to diversified, professionally managed
portfolios at a low price.
 Mutual funds are divided into several kinds of categories, representing the kinds of securities they
invest in, their investment objectives, and the type of returns they seek.
 Mutual funds charge annual fees (called expense ratios) and, in some cases, commissions, which can
affect their overall returns.
 The overwhelming majority of money in employer-sponsored retirement plans goes into mutual
funds.

2.4 How Mutual Funds Work

A mutual fund is both an investment and an actual company. This dual nature may seem strange, but it
is no different from how a share of AAPL is a representation of Apple, Inc. When an investor buys Apple
stock, he is buying part ownership of the company and its assets. Similarly, a mutual fund investor is buying
part ownership of the mutual fund company and its assets. The difference is that Apple is in the business of
making smartphones and tablets, while a mutual fund company is in the business of making investments.

Investors typically earn a return from a mutual fund in three ways:

1. Income is earned from dividends on stocks and interest on bonds held in the fund’s portfolio. A fund
pays out nearly all of the income it receives over the year to fund owners in the form of
a distribution. Funds often give investors a choice either to receive a check for distributions or to
reinvest the earnings and get more shares
2. If the fund sells securities that have increased in price, the fund has a capital gain. Most funds also
pass on these gains to investors in a distribution.
3. If fund holdings increase in price but are not sold by the fund manager, the fund's shares increase in
price. You can then sell your mutual fund shares for a profit in the market.

If a mutual fund is construed as a virtual company, its CEO is the fund manager, sometimes called
its investment adviser. The fund manager is hired by a board of directors and is legally obligated to work in
the best interest of mutual fund shareholders. Most fund managers are also owners of the fund. There are
very few other employees in a mutual fund company. The investment adviser or fund manager may employ
some analysts to help pick investments or perform market research. A fund accountant is kept on staff to
calculate the fund's NAV, the daily value of the portfolio that determines if share prices go up or down.
Mutual funds need to have a compliance officer or two, and probably an attorney, to keep up with
government regulations.

Most mutual funds are part of a much larger investment company; the biggest have hundreds of separate
mutual funds. Some of these fund companies are names familiar to the general public, such as Fidelity
Investments, the Vanguard Group, T. Rowe Price, and Oppenheimer Funds.
.
2.5 Types of Mutual Funds
Mutual funds are divided into several kinds of categories, representing the kinds of securities they have
targeted for their portfolios and the type of returns they seek. There is a fund for nearly every type of
investor or investment approach. Other common types of mutual funds include money market funds, sector
funds, alternative funds, smart-beta funds, target-date funds, and even funds-of-funds, or mutual funds that
buy shares of other mutual funds.

2.5.1 Equity Funds

The largest category is that of equity or stock funds. As the name implies, this sort of fund invests
principally in stocks. Within this group is various sub-categories. Some equity funds are named for the size
of the companies they invest in small-, mid- or large-cap. Others are named by their investment approach:
aggressive growth, income-oriented, value, and others. Equity funds are also categorized by whether they
invest in domestic (U.S.) stocks or foreign equities. There are so many different types of equity funds
because there are many different types of equities. A great way to understand the universe of equity funds is
to use a style box, an example of which is below.

The idea here is to classify funds based on both the size of the companies invested in (their market caps) and
the growth prospects of the invested stocks. The term value fund refers to a style of investing that looks for
high quality, low growth companies that are out of favor with the market. These companies are characterized
by low price-to-earnings (P/E), low price-to-book (P/B) ratios, and high dividend yields. On the other side of
the style, spectrum are growth funds, which look to companies that have had (and are expected to have)
strong growth in earnings, sales, and cash flows. These companies typically have high P/E ratios and do not
pay dividends. A compromise between strict value and growth investment is a “blend,” which simply refers
to companies that are neither value nor growth stocks and are classified as being somewhere in the middle.

Learn how to use the Morningstar Style Box (TM). Morningstar

The other dimension of the style box has to do with the size of the companies that a mutual fund invests
in. Large-cap companies have high market capitalizations, with values over $5 billion. Market cap is derived
by multiplying the share price by the number of shares outstanding. Large-cap stocks are typically blue chip
firmsthat are often recognizable by name. Small-cap stocks refer to those stocks with a market cap ranging
from $200 million to $2 billion. These smaller companies tend to be newer, riskier investments. Mid-cap
stocks fill in the gap between small- and large-cap.

A mutual fund may blend its strategy between investment style and company size. For example, a large-cap
value fund would look to large-cap companies that are in strong financial shape but have recently seen their
share prices fall and would be placed in the upper left quadrant of the style box (large and value). The
opposite of this would be a fund that invests in startup technology companies with excellent growth
prospects: small-cap growth. Such a mutual fund would reside in the bottom right quadrant (small and
growth).

2.5.2 Fixed-Income Funds

Another big group is the fixed income category. A fixed income mutual fund focuses on investments that
pay a set rate of return, such as government bonds, corporate bonds, or other debt instruments. The idea is
that the fund portfolio generates interest income, which then passes on to shareholders.

Sometimes referred to as bond funds, these funds are often actively managed and seek to buy relatively
undervalued bonds in order to sell them at a profit. These mutual funds are likely to pay higher returns than
certificates of deposit and money market investments, but bond funds aren't without risk. Because there are
many different types of bonds, bond funds can vary dramatically depending on where they invest. For
example, a fund specializing in high-yield junk bonds is much riskier than a fund that invests in government
securities. Furthermore, nearly all bond funds are subject to interest rate risk, which means that if rates go up
the value of the fund goes down.
2.5.3 Index Funds
Another group, which has become extremely popular in the last few years, falls under the moniker "index
funds." Their investment strategy is based on the belief that it is very hard, and often expensive, to try to
beat the market consistently. So, the index fund manager buys stocks that correspond with a major market
index such as the S&P 500 or the Dow Jones Industrial Average (DJIA). This strategy requires less research
from analysts and advisors, so there are fewer expenses to eat up returns before they are passed on to
shareholders. These funds are often designed with cost-sensitive investors in mind.

2.5.4 Balanced Funds

Balanced funds invest in both stocks and bonds to reduce the risk of exposure to one asset class or another.
Another name for this type of mutual fund is "asset allocation fund." An investor may expect to find the
allocation of these funds among asset classes relatively unchanging, though it will differ among funds. This
fund's goal is asset appreciation with lower risk. However, these funds carry the same risk and can be as
subject to fluctuation as other classifications of funds.

A similar type of fund is known as an asset allocation fund. Objectives are similar to those of a balanced
fund, but these kinds of funds typically do not have to hold a specified percentage of any asset class. The
portfolio manager is therefore given freedom to switch the ratio of asset classes as the economy moves
through the business cycle.

2.5.5 Money Market Funds

The money market consists of safe (risk-free) short-term debt instruments, mostly government Treasury
bills. This is a safe place to park your money. You won't get substantial returns, but you won't have to worry
about losing your principal. A typical return is a little more than the amount you would earn in a regular
checking or savings account and a little less than the average certificate of deposit (CD). While money
market funds invest in ultra-safe assets, during the 2008 financial crisis, some money market funds did
experience losses after the share price of these funds, typically pegged at $1, fell below that level and broke
the buck.

2.5.6 Income Funds

Income funds are named for their purpose: to provide current income on a steady basis. These funds invest
primarily in government and high-quality corporate debt, holding these bonds until maturity in order to
provide interest streams. While fund holdings may appreciate in value, the primary objective of these funds
is to provide steady cash flow to investors. As such, the audience for these funds consists of conservative
investors and retirees. Because they produce regular income, tax-conscious investors may want to avoid
these funds.

2.5.7 Global/International Funds

An international fund (or foreign fund) invests only in assets located outside your home country. Global
funds, meanwhile, can invest anywhere around the world, including within your home country. It's tough to
classify these funds as either riskier or safer than domestic investments, but they have tended to be more
volatile and have a unique country and political risks. On the flip side, they can, as part of a well-balanced
portfolio, actually reduce risk by increasing diversificationsince the returns in foreign countries may be
uncorrelated with returns at home. Although the world's economies are becoming more interrelated, it is still
likely that another economy somewhere is outperforming the economy of your home country.
2.5.8 Specialty Funds
This classification of mutual funds is more of an all-encompassing category that consists of funds that have
proved to be popular but don't necessarily belong to the more rigid categories we've described so far. These
types of mutual funds forgo broad diversification to concentrate on a certain segment of the economy or a
targeted strategy. Sector funds are targeted strategy funds aimed at specific sectors of the economy such as
financial, technology, health, and so on. Sector funds can, therefore, be extremely volatile since the stocks in
a given sector tend to be highly correlated with each other. There is a greater possibility for large gains, but
also a sector may collapse (for example the financial sector in 2008 and 2009).

Regional funds make it easier to focus on a specific geographic area of the world. This can mean focusing
on a broader region (say Latin America) or an individual country (for example, only Brazil). An advantage
of these funds is that they make it easier to buy stock in foreign countries, which can otherwise be difficult
and expensive. Just like for sector funds, you have to accept the high risk of loss, which occurs if the region
goes into a bad recession.

Socially-responsible funds (or ethical funds) invest only in companies that meet the criteria of certain
guidelines or beliefs. For example, some socially responsible funds do not invest in “sin” industries such as
tobacco, alcoholic beverages, weapons or nuclear power. The idea is to get competitive performance while
still maintaining a healthy conscience. Other such funds invest primarily in green technology such as solar
and wind power or recycling.

2.5.9 Exchange Traded Funds (ETFs)

A twist on the mutual fund is the exchange traded fund (ETF). These ever more popular investment vehicles
pool investments and employ strategies consistent with mutual funds, but they are structured as investment
trusts that are traded on stock exchanges and have the added benefits of the features of stocks. For example,
ETFs can be bought and sold at any point throughout the trading day. ETFs can also be sold short or
purchased on margin. ETFs also typically carry lower fees than the equivalent mutual fund. Many ETFs also
benefit from active optionsmarkets where investors can hedge or leverage their positions. ETFs also enjoy
tax advantages from mutual funds. The popularity of ETFs speaks to their versatility and convenience.

2.6 Mutual Fund Fees

A mutual fund will classify expenses into either annual operating fees or shareholder fees. Annual fund
operating fees are an annual percentage of the funds under management, usually ranging from 1-3%. Annual
operating fees are collectively known as the expense ratio. A fund's expense ratio is the summation of the
advisory or management fee and its administrative costs.

Shareholder fees, which come in the form of sales charges, commissions and redemption fees, are paid
directly by investors when purchasing or selling the funds. Sales charges or commissions are known as "the
load" of a mutual fund. When a mutual fund has a front-end load, fees are assessed when shares are
purchased. For a back-end load, mutual fund fees are assessed when an investor sells his shares.

Sometimes, however, an investment company offers a no-load mutual fund, which doesn't carry any
commission or sales charge. These funds are distributed directly by an investment company rather than
through a secondary party.
Some funds also charge fees and penalties for early withdrawals or selling the holding before a specific time
has elapsed. Also, the rise of exchange-traded funds, which have much lower fees thanks to their passive
management structure, have been giving mutual funds considerable competition for investors' dollars.
Articles in the financial media about how fund expense ratios and loads can eat into rates of return have also
stirred negative feelings about mutual funds.

2.7 Classes of Mutual Fund Shares

Mutual fund shares come in several classes. Their differences reflect the number and size of fees associated
with them.

Currently, most individual investors purchase mutual funds with A shares through a broker. This purchase
includes a front-end load of up to 5% or more, plus management fees and ongoing fees for distributions, also
known as 12b-1 fees. To top it off, loads on A shares vary quite a bit, which can create a conflict of interest.
Financial advisors selling these products may encourage clients to buy higher-load offerings to bring in
bigger commissions for themselves. With front-end funds, the investor pays these expenses as they buy into
the fund.

To remedy these problems and meet fiduciary-rule standards investment companies have started designating
new share classes, including "level load” C shares, which generally don’t have a front-end load but carry a
1% 12b-1 annual distribution fee.

Funds that charge management and other fees when an investor sell their holdings are classified as Class B
shares.

2.7.1 A New Class of Fund Shares

The newest share class, developed in 2016, consists of clean shares. Clean shares do not have front-end sales
loads or annual 12b-1 fees for fund services. American Funds, Janus and MFS, are all fund companies
currently offering clean shares.

By standardizing fees and loads, the new classes enhance transparency for mutual fund investors and, of
course, save them money. For example, an investor who rolls $10,000 into an individual retirement account
(IRA) with a clean-share fund could earn nearly $1,800 more over a 30-year period as compared to an
average A-share fund, according to an April 2017 Morningstar report, co-written by Aron Szapiro,
Morningstar director of policy research, and Paul Ellenbogen, head of global regulatory solutions.
2.8 Advantages of Mutual Funds
There are a variety of reasons that mutual funds have been the retail investor's vehicle of choice for decades.
The overwhelming majority of money in employer-sponsored retirement plans goes into mutual funds.

2.8.1 Diversification
Diversification, or the mixing of investments and assets within a portfolio to reduce risk, is one of the
advantages of investing in mutual funds. Experts advocate diversification as a way of enhancing portfolio
return while reducing its risk. Buying individual company stocks and offsetting them with industrial sector
stocks, for example, offers some diversification. However, a truly diversified portfolio has securities with
different capitalizations and industries and bonds with varying maturities and issuers. Buying a mutual fund
can achieve diversification cheaper and faster than by buying individual securities. Large mutual funds
typically own hundreds of different stocks in many different industries. It wouldn't be practical for an
investor to build this kind of a portfolio with a small amount of money.

2.8.2 Easy Access

Trading on the major stock exchanges, mutual funds can be bought and sold with relative ease, making them
highly liquid investments. Also, when it comes to certain types of assets, like foreign equities or exotic
commodities, mutual funds are often the most feasible way—in fact, sometimes the only way—for
individual investors to participate.

2.8.3 Economies of Scale

Mutual funds also provide economies of scale. Buying one spares the investor of the numerous commission
charges needed to create a diversified portfolio. Buying only one security at a time leads to large transaction
fees, which will eat up a good chunk of the investment. Also, the $100 to $200 an individual investor might
be able to afford is usually not enough to buy a round lot of the stock, but it will purchase many mutual fund
shares. The smaller denominations of mutual funds allow investors to take advantage of dollar cost
averaging.

2.8.4 Professional Management

A primary advantage of mutual funds is not having to pick stocks and manage investments. Instead, a
professional investment manager takes care of all of this using careful research and skillful trading. Investors
purchase funds because they often do not have the time or the expertise to manage their own portfolios, or
they don’t have access to the same kind of information that a professional fund has. A mutual fund is a
relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments.
Most private, non-institutional money managers deal only with high-net-worth individuals—people with at
least six figures to invest. However, mutual funds, as noted above, require much lower investment
minimums. So, these funds provide a low-cost way for individual investors to experience and hopefully
benefit from professional money management.

2.8.5 Economies of Scale

Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower
than what an individual would pay for securities transactions. Moreover, a mutual fund, since it pools money
from many smaller investors can invest in certain assets or take larger positions than a smaller investor
could. For example, the fund may have access to IPO placements or certain structured products only
available to institutional investors.
2.8.6 Variety and Freedom of Choice
Investors have the freedom to research and select from managers with a variety of styles and management
goals. For instance, a fund manager may focus on value investing, growth investing, developed markets,
emerging markets, income or macroeconomic investing, among many other styles. One manager may also
oversee funds that employ several different styles. This variety allows investors to gain exposure to not only
stocks and bonds but also commodities, foreign assets, and real estate through specialized mutual funds.
Some mutual funds are even structured to profit from a falling market (known as bear funds). Mutual funds
provide opportunities for foreign and domestic investment that may not otherwise be directly accessible to
ordinary investors.

2.8.7 Transparency
Mutual funds are subject to industry regulation that ensures accountability and fairness to investors.

2.9 Disadvantages of Mutual Funds

Liquidity, diversification, and professional management, all these factors make mutual funds attractive
options for a younger, novice, and other individual investors who don't want to actively manage their
money. However, no asset is perfect, and mutual funds have drawbacks too.

2.9.1 Fluctuating Returns

Like many other investments without a guaranteed return, there is always the possibility that the value of
your mutual fund will depreciate. Equity mutual funds experience price fluctuations, along with the stocks
that make up the fund. The Federal Deposit Insurance Corporation (FDIC) does not back up mutual fund
investments, and there is no guarantee of performance with any fund. Of course, almost every investment
carries risk. It is especially important for investors in money market funds to know that, unlike their bank
.counterparts, these will not be insured by the FDIC.

2.9.2 Cash Drag

Mutual funds pool money from thousands of investors, so every day people are putting money into the fund
as well as withdrawing it. To maintain the capacity to accommodate withdrawals funds typically have to
keep a large portion of their portfolios in cash. Having ample cash is excellent for liquidity, but money is
sitting around as cash and not working for you and thus is not very advantageous. Mutual funds require a
significant amount of their portfolios to be held in cash in order to satisfy share redemptions each day. To
maintain liquidity and the capacity to accommodate withdrawals, funds typically have to keep a larger
portion of their portfolio as cash than a typical investor might. Because cash earns no return, it is often
referred to as a “cash drag.”
2.9.3 High Costs
Mutual funds provide investors with professional management, but it comes at a cost—those expense ratios
mentioned earlier. These fees reduce the fund's overall payout, and they're assessed to mutual fund investors
regardless of the performance of the fund. As you can imagine, in years when the fund doesn't make money,
these fees only magnify losses. Creating, distributing, and running a mutual fund is an expensive
undertaking. Everything from the portfolio manager's salary to the investors' quarterly statements cost
money. Those expenses are passed on to the investors. Since fees vary widely from fund to fund, failing to
pay attention to the fees can have negative long-term consequences. Actively managed funds incur
transaction costs that accumulate over each year. Remember, every dollar spent on fees is a dollar that is not
invested to grow over time.

2.9.4 'Diworsification' and Dilution

'Diworsification'—a play on words—is an investment or portfolio strategy that implies too much complexity
can lead to worse results. Many mutual fund investors tend to overcomplicate matters. That is, they acquire
too many funds that are highly related and, as a result, don't get the risk-reducing benefits of diversification.
These investors may have made their portfolio more exposed; a syndrome called diworsification. At the
other extreme, just because you own mutual funds doesn't mean you are automatically diversified. For
example, a fund that invests only in a particular industry sector or region is still relatively risky.

In other words, it's possible to have poor returns due to too much diversification. Because mutual funds can
have small holdings in many different companies, high returns from a few investments often don't make
much difference on the overall return. Dilution is also the result of a successful fund growing too big. When
new money pours into funds that have had strong track records, the manager often has trouble finding
suitable investments for all the new capital to be put to good use.

One thing that can lead to diworsification is the fact that a fund's purpose or makeup isn't always clear. Fund
advertisements can guide investors down the wrong path. The Securities and Exchange Commission (SEC)
requires that funds have at least 80% of assets in the particular type of investment implied in their names.
How the remaining assets are invested is up to the fund manager. However, the different categories that
qualify for the required 80% of the assets may be vague and wide-ranging. A fund can, therefore, manipulate
prospective investors via its title. A fund that focuses narrowly on Congolese stocks, for example, could be
sold with a far-ranging title "International High-Tech Fund."

2.9.5 Active Fund Management

Many investors debate whether or not the professionals are any better than you or I at picking stocks.
Management is by no means infallible, and, even if the fund loses money, the manager still gets paid.
Actively managed funds incur higher fees, but increasingly passive index funds have gained popularity.
These funds track an index such as the S&P 500 and are much less costly to hold. Actively managed funds
over several time periods have failed to outperform their benchmark indices, especially after accounting for
taxes and fees.

2.9.6 Lack of Liquidity

A mutual fund allows you to request that your shares be converted into cash at any time, however, unlike
stock that trades throughout the day, many mutual fund redemptions take place only at the end of each
trading day.

2.9.7 Taxes
When a fund manager sells a security, a capital-gains tax is triggered. Investors who are concerned about the
impact of taxes need to keep those concerns in mind when investing in mutual funds. Taxes can be mitigated
by investing in tax-sensitive funds or by holding non-tax sensitive mutual fund in a tax-deferredaccount,
such as a 401(k) or IRA.
2.9.8 Evaluating Funds
Researching and comparing funds can be difficult. Unlike stocks, mutual funds do not offer investors the
opportunity to juxtapose the price to earnings (P/E) ratio, sales growth, earnings per share (EPS), or other
important data. A mutual fund's net asset value can offer some basis for comparison, but given the diversity
of portfolios, comparing the proverbial apples to apples can be difficult, even among funds with similar
names or stated objectives. Only index funds tracking the same markets tend to be genuinely comparable.

2.10 Pros and Cons

2.10.1 Pros

 Liquidity
 Diversification
 Minimal investment requirements
 Professional management
 Variety of offerings

2.10.2 Cons

 High fees, commissions, other expenses

 Large cash presence in portfolios
 No FDIC coverage
 Difficulty in comparing funds
 Lack of transparency in holdings
 CHAPTER 3: AMOUNT OF WORK DONE

3.1 Theoretical Concepts

In the process of understanding Mutual Funds diligently I went through a number of books related to
it. I gave a thorough reading to the books like Guide to Indian Mutual Funds, Constitution of
Investing and Mutual Funds:The Money Multiplier and I meticulously read the factsheets. Earlier I
had the basic idea how mutual funds work but by this study I gained cognizance about mutual funds.
I learned the doubt solving skill of common people who are layman in this field. From my studies I
just had the theoretical knowledge of mutual funds but through the internship in an esteemed
company like Reliance Mutual Fund, I became a savvy in this field. I got opportunities to understand
the actual process, meet clients, made them understood about the complete thing and most
importantly excelled in this field and got to learn many new things.

3.2 Selling Process

I worked as a sales trainee(National Distributor) in Reliance Mutual Fund for a month and a half I
had the task to connect with different people either by directly meeting them or over phone calls.
After meeting employees at Bluechip Corporate Investment Centre Limited I explained them about
the features of our funds and convenced them about our superior Reliance Multi Cap Fund. I got
positive response from many of them, successfully making them sell our mutual fund to their
customers.

3.3 Functional Process Followed

Zone North
Region Delhi
Segment National Distributor (ND)
Table 3.1 Functional Process Followed
3.4 Route Plan

I worked as a intern in Reliance Mutual Fund in a head branch located in Delhi. I visited to numerous
corporate offices like Bajaj Capital,IIFL and Sharekhan in the first week of my internship which
were mostly located in NCR region. In the second week my Reporting Manager handed me a counter
named as Bluechip Corporate Investment Centre Limited and I covered around eighteen branches
which was located in Delhi.

The branches is listed below:-

SHOP NO.-3 GROUND FLOOR, BUILDING NO. B-110, DILSHAD COLONY, NEAR
ICICI BANK, DELHI 110095
SHOP NO. T21, HL SQUARE, PLOT NO. 6, SECTOR 5, M L U, DWARKA DELHI 110075
SHOP NO. 44, B-BLOCK, COMMUNITY CENTRE, NEXT TO MAHATTA TOWER
JANAKPURI, DELHI 110058
SHOP NO. 4 E-156, NEAR GIANI’S, GROUND FLOOR, KALKAJI MAIN MARKET OPP.
SAGAR RATNA, DELHI 110019
PROPERTY NO. 7255/48, GROUND FLOOR, AJENDRA MARKET, PREM NAGAR,
SHAKTI NAGAR, KAMLA NAGAR, DELHI 110007
SHOP NO.- 14, GROUND FLOOR, RISHAB CORPORATE TOWER, PLOT NO. 1
COMMUNITY CENTER, KARKARDOOMA DELHI 110092
OFFICE NO. 2C, 2ND FLOOR 18/14, W.E.A. PUSA LANE, KAROL BAGH, DELHI,
110005
SHOP NO. 101, FIRST FLOOR, 23 VEER SAVARKAR BLOCK, VIKAS MARG,
SHAKARPUR, LAXMI NAGAR DELHI 110092
SHOP NO. 101-A PATPARGANJ, MAYUR VIHAR, DELHI 110091
SHOP NO. E-66 LAXMI MARKET, OPP. CANARA BANK, MUNIRKA, DELHI 110067
G-19, BHANNOT TRADE CENTRE, COMMERCIAL COMPLEX, OPP. JWALA HOUSE
PASCHIM VIHAR, DELHI 110063
OFFICE NO. -14, COTTAGE NO- 36 WEST PATEL NAGAR, NEW DELHI DELHI
110008
G-21, GROUND FLOOR, PLOT NO. H-6, AGGARWAL TOWER, NETAJI SUBHASH
PLACE, PITAMPURA DELHI 110034
SHOP NO. 26/2, GROUND FLOOR, NEAR PUNJABI BAGH DESU OFFICE, PUNJABI
BAGH (EAST) DELHI 110026
SHOP NO.-LG-3, PLOT NO.-27, GROUND FLOOR, SAGAR PLAZA, PITAMPURA,
RANI BAGH ROAD, COMMUNITY CENTRE, DELHI 110034
G- 40, PLOT NO. CSC, GROUND FLOOR, AGGARWAL E MALL, BLOCK, -E-1,
SECTOR-7, ROHINI, DELHI 110085
SHOP NO. 130, PLOT NO.1, VARDHMAN SUNRIZE PLAZA, VASUNDHARA
ENCLAVE, NR. ABHYANT APT, DELHI 110096
GF-27 GROUND FLOOR, ANSAL MAJESTIC POWER, NEAR CANARA BANK,
VIKASPURI DELHI 110018
Table 3.2 Showing all the branches which I have covered of Bluechip Corporate Investment Centre
Limited.
 CHAPTER 4: QUALITY OF WORK DONE

4.1 Data Presentation

As a part of my internship I performed a survey via questionnaire and I got to know several
figures like account of most selling product and the response from the employees of Bluechip Corporate
Investment Centre Limited helped me to calculate the total number of their customer base, penetration of
mutual funds in the customer base and penetration of SIP in the customer base.

Questionnaire on Penetration of SIP in Sub Broking Channel

Respected Madam / Sir
Greetings for the day! I am pursuing my BBA from Lovely Professional University,Jalandhar. As a part of
my dissertation, I am conducting a research on Penetration of SIP in Sub Broking Channel.
Kindly spare 5 minutes for filling this questionnaire. All the information provided by you will be used for
research purposes only and kept confidential. Your opinion would be very valuable for my project.
Name _________________________________________________________
Location _________________________________________________________
E-mail _________________________________________________________

1. What do you sell the most?

a) Mutual Funds b) Fixed Deposit c) Insurance d) Anything Else

If anything else then what____________________________

2. In Mutual fund what is your main focus?

a) Equity b) Debt

3. What is your cliental?

a) Corporates b) Retail c) HNI d) Mixture

4. How much virtual platform do you use for investments?

a) Everytime b) Sometimes
5.In equity products which product you focus the most ?
a) SIP b) Lump sum

6.For any investment what are the criterias you consider while pitching an AMC to the customer?
a) AMC brand b) Fund Returns c) Brokerage d) Relationship e) Portfolio

7.How important is the brand value to your customer?

a) Very important b) Not at all important (only c) Somewhat important
returns)

8. Which AMC you prefer the most?

a) ICICI Prudential Mutual Fund
b) HDFC Mutual Fund
c) Aditya Birla Sun Life Mutual Fund
d) Reliance Mutual Fund
e) SBI Mutual Fund
f) DSP Mutual Fund
g) Kotak Mahindra Mutual Fund
h) Franklin Templeton Mutual Fund
i) Any Other

If any other than which company_____________________________________

9.While pitching an SIP which category you prefer the most?

a) Large Cap Fund
b) Small Cap Fund
c) Multi Cap Fund
d)Mid cap Fund
e)Balance Advantage Fund
f) Any other fund

If any other fund than which

fund________________________________

10.Do you consider dividend while selling a fund?

a) Yes b) No c) Sometimes
11. What is the total number of customer base?

____________________________________________________________________

12. What is the penetration of mutual fund in the customer base?

____________________________________________________________________

13. What is the penetration of SIP in customer base?

Thank you for your valuable time!

Total Number of Customers

25000

20000

15000

10000

5000

0
Total Number of Penetration of Mutual Penetration of SIP in the
Customer Base Funds in the Customer Customer Base
Base

Total Number of Customers

Figure 4.1 Showing the total number of customers handling by Bluechip Corporate Investment
Centre Limited, penetration of Mutual Funds in Customer Base and penetration of SIP in the
customer base.
 CHAPTER 5: RECOMMENDATIONS

 Reliance Money have to add some extra features in it with aggressive marketing
promotional strategy.
 Advertisement on television is the main source of attraction so the company must advertise
its products heavily.
 Product must be improved .
 There should be provision of complain suggestion boxes at each branch.
 REFRENCES

Reliance Mutual Fund, History and all the other information about the company.
https://www.google.co.in/search?newwindow=1&ei=UEgaXbqUAsasgQbo24_ABw
&q=RELIANce+mutual+fund&oq=RELIANce+mutual+fund&gs_l=psy-
ab.3..35i39l2j0l8.0.0..3527...0.0..1.4150.11503.9-4......0......gws-wiz.Q5WlqeO5CiU
[ viewed 28/06/2019]

What are mutual funds, Taken all the information about the mutual funds
https://www.moneycontrol.com/mutual-funds/amc-details/RC
[ viewed 28/06/2019]

Reliance Mutual Funds, Read about the Reliance Mutual Funds

https://www.reliancemutual.com/about-us/company-profile/reliance-mutual-fund
[ viewed 28/06/2019]

Took a look on his project report to take a brief idea about the mutual funds
https://issuu.com/sanjaykumarguptaa/docs/name2c29e4
[ viewed 30/06/2019]

Lalitha Thamaraipandy, (2017), Mutual Funds: The Money Multiplier, 1st Ed., New
Delhi, Notion Press, Inc, pp. 1-348

Ankit Gala and Jitendra Gala, (2007), Guide to Indian Mutual Funds, 2nd Ed., New
Delhi, Buzzingstock Publishing House, pp. 1-200