P a g e |1

Summer Internship project

on

A STUDY OF FACTORS CONSIDERED BY FINANCIAL ADVISORY IN SELECTION

OF FINANCIAL COMPANY
AT
NJ INDIA INVESTMENT PVT. LTD.

Submitted By
Nakum Harish
MBA Sem-III

Guided by
Prof. Krunal K Bhuva

Batch Year
2011-2013

Submitted To
JAYSUKHLAL VADHAR INSTITUTE OF MANAGEMENT STUDIES
(JVIMS)
BIPIN T. VADHAR COLLEGE OF MANAGEMENT
JAMNAGAR

Affiliated To
GUJARAT TECHNOLOGICAL UNIVERSITY
AHMEDABAD
 P a g e |2

Summer Internship project

on

A STUDY OF FACTORS CONSIDERED BY FINANCIAL ADVISORY IN SELECTION

OF FINANCIAL COMPANY
AT
NJ INDIA INVESTMENT PVT. LTD.

Submitted By
Nakum Harish
MBA Sem-III

Guided by
Prof. Krunal K Bhuva

Batch Year
2011-2013

Submitted To
JAYSUKHLAL VADHAR INSTITUTE OF MANAGEMENT STUDIES
(JVIMS)
BIPIN T. VADHAR COLLEGE OF MANAGEMENT
JAMNAGAR

Affiliated To
GUJARAT TECHNOLOGICAL UNIVERSITY
AHMEDABAD
 P a g e |3

DECLARATION

I undersigned Nakum Harish a student of MBA 3rd semester, declare that I have prepared this
dissertation on “Factor considering selection of financial company by financial advisory” guided
by Prof. Krunal Bhuva of JVIMS.

I also declare that this dissertation is my own preparation and not copied from anywhere else.

(Signature)

___________
Student's Name Nakum Harish
Enrollment No.:117700592115
 P a g e |4

ACKNOWLEDGEMENT
The presentation of this report gives us the feeling of fulfillment, as this Project is the final
frontier which is the final step in achieving a Master Degree. The activity of going through
project I feel that this leads to one of the practical real-life project-work. Project has prepared us
to apply our self to be a good MBA Professional. Naturally, it requires lot of support and
strength to complete this project.

I thank our department as they have provided academic advertisement to make the one real-life
project. I thank Prof. Krunal K. Bhuva (project guide), Dr. K. J. Thankachan, and Dy.
Director Dr. Ajay Shah and I am also thankful to all other faculty members of Jaysukhlal
Vadhar Institute of Management Studies (JVIMS) Jamnagar who have directly or indirectly
helped me in my project development.

Now, in the end my sincere thanks to our class-mates, who have provided great support in
building my strength and provided great support without which this project would have been
much tougher.
 P a g e |5

PREFACE

The summer training of a management studies play an important role in developing his as well
groomed professional. It allows a student to give theoretical concepts a practical in the field of
application. If gives the candidate an idea of dynamic & versatile professional world as well as
exposure to intricacies & complexities of corporate world.

Doing the summer training at NJ INDIA INVEST was great experience. An opening experience
to the concepts of marketing department helped me in understanding the concepts that are
applied by the organization since it`s inception has progressed a lot & is walking guideline of
success, As the organization is marching with the speeds towards the horizon. This division is
holding with a greater speed to keep the pace with the major players in the market.

During the MBA course we are taught dozen of subjects which if not applied properly are a
simple waste of time. Implementing & in learning of concept of marketing in the market provider
an opportunity to practically. I got a chance to apply our theory & acceptance myself with the
functioning of marketing in a period of 8 weeks exposure to the corporate environment. I got a
learning of basics of marketing etc.

Real learning places it`s worth only when it gives sweet fruits in future. Summer training is one
way to learning at work. I enjoyed the interesting experience & every part of it.
 P a g e |6

INDIX
Sir No. Name. Page No,
1. Acknowledgement 4
2. Preface 5
3. Executive summary 8
4. Company Profile
Introduction 10
NJ believe in 12
Philosophy 13
Management 14
Quality portfolio advisory 16
Distribution Network 19
Benefit in Mutual Funds 20
360° Advisory Platform 21
Nj Funds network 23
Nj realty services 24
Nj Gurukul 25
Vision & Mission 26
Quality online wealth account 27
Investment Strategy 28
Risk V/s Return 29
5. Financial Advisor
How to choose financial advisor 31
Finding the right advisor 31
Types of advisors 32
Regulatory compliance 33
Background and experience 33
Services 33
How Financial planner are compensated 34
What to expect from a advisor 35
6. Review of Literature 37
7. Research Methodology
Introduction 43
Meaning of Research 44
Statement of the problem 45
Significance of Research 45
Objective of Research 46
 P a g e |7

Need for research design 46

Scope of the study 46
Types of Research 47
Data collection 48
8. Data Analysis and Interpretation 50
Table and Chart 51-70
9. Finding And Suggestion
Finding 72
Suggestions 73
Own Experience 74
Conclusion 75
Bibliography 76
10. Appendix
List of the Table 77
List of the Graph 78
Questionnaire 79
 P a g e |8

EXECUTIVE SUMMARY

The project titled ―A study of mutual fund and awareness among insurance advisors‖
being carried out for NJ INDIA INVESTS PVT. LTD. Today an investor is interested in tracking
the value of his investments, whether he invests directly in the market or indirectly through
Mutual Funds. This dynamic change has taken place because of a number of reasons. With
globalization and the growing competition in the investments opportunity available he would
have to make guided and rational decisions on whether he gets an acceptable return on his
investments in the funds selected by him, or if he needs to switch to another fund.

In order to achieve such an end the investor has to understand the basis of appropriate
preference measurement for the fund, and acquire the basic knowledge of the different measures
of evaluating the performance of the fund. Only then would he be in a position to judge correctly
whether his fund is performing well or not, and make the right decision.
This project is undertaken to help the investors in tracking the performance of their
investments in Mutual Funds and has been carried out with the objective of giving performance
analysis of Mutual Fund.

The methodology for carrying out the project was very simple that is through secondary
data obtained through various mediums like fact sheet of the funds, the Internet, Business
magazines, Newspaper, etc. the analysis of Mutual Funds has been done with respect to its
various parameters. I hope NJ INDIA INVEST PVT. LTD., Udaipur will recognize this as well
as take more references from this project report.
 P a g e |9

Company Profile
 P a g e | 10

1. INTRODUCTION

Creating Wealth Transforming Lives

“Success is a journey, not a destination.” If we look for examples to prove this quote then
we can find many but there is none like that of NJ India Invest Pvt. Ltd. Back in the year 1994,
two people created history by establishing NJ India Invest Pvt. Ltd. leading advisors and
distributors of financial products and services in India.
 P a g e | 11

Doing the 'right' thing is a virtue most desirable. The difference between success and
failure is often, not dictated by knowledge or expertise, but by its actual application and
perseverance. When it comes to successful wealth creation for customers, it is something that we
believe in & practice. For us it is more than a mission; it is what defines our lives and our actions

Today NJ India invest Pvt. Ltd. is one of the leading advisors and distributors of financial
products and services in India. Established in year 1994, NJ has over a decade of rich exposure
in financial investments space and portfolio advisory services. From a humble beginning, NJ,
over the years has evolved out to be a professionally managed, quality conscious and customer
focused financial / investment advisory & distribution firm.

We are headquartered in Surat, India, and have more than INR 10,000* Crores of mutual
fund assets under advice, with a wide presence at over 100+ locations in 21 states in India. The
numbers are reflections of the trust, commitment and value that NJ shares with 11 Lac plus
customer base with over 14000+ Advisors.

NJ prides in being a professionally managed, quality focused and customer centric

organization. The strength of NJ lies in the strong domain knowledge in investment consultancy
and the delivery of sustainable value to clients with support from cutting-edge technology
platform, developed in-house by NJ.
 P a g e | 12

NJ, believe in...

 Having single window, multiple solutions that are integrated for simplicity and
sapience
 Making innovations, accessions, value-additions, a constant process
 Providing customers with solutions for tomorrow which will keep them above the
curve, today

NJ has over INR 60 billion* of mutual fund assets under advice with a wide presence in
over 120 locations* in 21 states* and 750+ employees in India. The numbers are reflections of
the trust, commitment and value that NJ shares with its clients 45

NJ Wealth Advisors, a division of NJ, focuses on providing financial planning and

portfolio advisory services to premium clients of high net-worth. At NJ Wealth Advisors, we
have developed processes that focus on providing the best in terms of the advice and the ongoing
management of your portfolio and financial plans.

At NJ, our experience, knowledge and understanding enables us to provide you with the
expected value, in an enhanced way. As a leading player in the industry, we continue to
successfully meet the expectations of our clients, through meaningful and comprehensive
solutions offered by NJ Wealth Advisors
 P a g e | 13

2. PHILOSOPHY:-

At NJ our Service and Investing philosophy inspire and shape the thoughts, beliefs,
attitude, actions and decisions of our employees. If NJ would resemble a body, our philosophy
would be our spirit which drives our body.

Service Philosophy:

Our primary measure of success is customer satisfaction …

We are committed to provide our customers with continuous, long-term improvements
and value-additions to meet the needs in an exceptional way. In our efforts to consistently deliver
the best service possible to our customers, all employees of NJ will make every effort to: think of
the customer first, take responsibility, and make prompt service to the customer a priority
 deliver upon the commitments & promises made on time
 anticipate, visualize, understand, meet, exceed our customer‘s needs
 Bring energy, passion & excellence in everything we do.
 be honest and ethical, in action & attitude, and keep the customer‘s interest
supreme
 Strengthen customer relationships by providing service in a thoughtful &
proactive manner and meet the expectations, effectively.

We aim to provide Need-based solutions for long-term wealth creation

We aim to provide all customers of NJ, directly or indirectly, with true, unbiased, need-based
solutions and advice that best meets their stated & un-stated needs. In our efforts to provide
quality financial & investment advice, we believe that
 P a g e | 14

 Clients want need-based solutions, which fits them

 Long-term wealth creation is simple and straight
 Asset-Allocation is the ideal & the best way for long-term wealth creation
 Educating and disclosing all the important facets which the customer needs to be aware
of, is important
 The solutions must be unbiased, feasible, practical, executable, measurable and flexible
constant monitoring and proper after-sales service is critical to complete the ongoing
process.

3. MANAGEMENT:-

The management at NJ brings together a team of people with wide experience and
knowledge in the financial services domain. The management provides direction and guidance to
the whole organization. The management has strong visions for NJ as a globally respected
company providing comprehensive services in financial sector The Customer First philosophy in
deeply ingrained in the management at NJ. The aim of the management is to bring the best to the
customers in terms of -

 Range of products and services offered

 Quality Customer Service

All the key members of the organization put in great focus on the processes & systems
under the diverse functions of business. The management also focuses on utilizing technology as
the key enabler for all the activities and to leverage the technology for enhancing overall
customer experience.
 P a g e | 15

Founder of the Company

Mr. Neeraj Choksi Jt. Managing Director

Mr. Jignesh Desai Jt. Managing Director

Sales Team In Surat

Mr. Misbah Baxamusa National Head

Mr. Naveen Rathod V.P. (Sales)
Mr. Kulbhushan Nandwani A.V.P. (Marketing)
Mr. Prashant Kakkad A.V.P. (Sales)

Key Executive Team :

Mr. Shirish Patel Information Technology

Mr. Abhishek Dubey Business Process
Mr. Vinayak Rajput Operations
Mr. Dhaval Desai Human Resources
Mr. Col. Dixit Administration
Mr. Tejas Soni Finance
Mr Viral Shah Research
Mr Rakesh Tokarkar compliance
Mr.Ashok Daftari Relationship Manager
Mr.Amanjeet singh Relationship Manager
 P a g e | 16

4. Quality Portfolio Advisory:-

Making money is easy. Managing money is difficult. And managing money in today‘s
complex financial markets with multiple products on an ongoing basis becomes even more
difficult.

As investors we often may feel the lack of time and energy to undertake monitoring and
managing of our investments in multiple avenues. This requires both dedicated efforts and skills
in portfolio management.

At NJ Wealth Advisors we realize the need for quality, unbiased portfolio advisory
services. At NJ we would aim to manage your portfolio with a superior, time tested and much
effective way of Asset Allocation keeping in mind your risk profile.

Our online Wealth Account covers almost all the investment avenues that you may have:
 Mutual Funds – All AMCs, All Schemes

 Direct Equity

 Life Insurance

 Physical Assets – Gold and Property

 Private Equity – Business

 Debt Products
 Bank Deposits and Company Deposits
 RBI / Infrastructure Bonds
 Postal Savings – KVP, MIS, NSC
 Debentures
 Small Savings – PPF, NSS
 P a g e | 17

 Mutual Funds:
Valuation, Transaction, Profit & Loss, Performance, Portfolio reports like - AMC / Sector
/ Equity / Credit / Debt Exposure, Weighted Average Maturity, Dividend history, etc.
 Direct Equity:
Demat accounts, Transaction, Valuation, Profit & Loss
 Life Insurance:
Policy Report, Premium Reminder, Cash Flow
 Debt:
Transaction, Interest Income, Maturity reports for different Assets

5. Dedicated team:-

At NJ Wealth Advisors, we work in a team concept to provide quality, effective and

timely service to our clients. The team is designed keeping you at the beginning or the end of the
flow as the originator and the end receiver of any request or service.

The team handling you consists of the Relationship Manager and the Account Manager
who would be in direct touch with you. This would be supported by the Centralized Research
Team, the Chief Portfolio Manager and the Service Team. All the important investment
decisions and/or plans recommended to you are actually prepared and /or approved by the Chief
Portfolio Manager with inputs from the Research Team. The structure ensures that all the Plans
and recommendations that you receive are unbiased, based on true research & detailed study, and
suited to your needs.
 P a g e | 18

Quality Customer Service

NJ realizes the true importance of quality customer service. The service commitments are
to guide the actions taken at NJ. Clearly stated, customers can freely communicate any such
actions/events wherein they feel that the following commitments have been breached. At NJ we
desire to honor our commitments at all points of time and to all customers without any bias.

Quality service:-

Highlights-
 You will receive regular portfolio reports in hard copies to serve as record

 All records are maintained for the plans and recommendations and minutes of all the
meetings are kept.

 Dedicated Account Manager directly oversees the operational support to you Quality
Advisory.

 True, unbiased recommendations.

 Each plan is unique in nature to suit your needs and profile.

 Defined Process followed in investment consultancy / portfolio management.

 All the plans are prepared and/or approved in line with the set process by Chief Portfolio
Manager with inputs from the Research Team.
 P a g e | 19

Distribution Network

Proven and accredited leaders in the Financial Services business, NJ India provides you the
unique opportunity to trade offline and online while cutting across all geographic barriers.

 Strategic Tie-ups that provide latest technology for access and processing
 135 office in21 states
 13000 advisors
 850000 customer
 One of the largest distributors of leading Mutual Funds in India

In this market various competition that are faced by the different investment company are as
under.

o Different software offered of latest version

o Systematic and synchronized services
o High customer services
o Better attractive policies
 P a g e | 20

Benefit in Mutual fund

N.J FUNDZ NETWORK Pvt. Ltd. are having a very powerful research team and skillful
personnel. The company is well equipped with the updated knowledge of the NFOs coming in to
the market. In case of downward trend in market, due to the availability of high profile software,
company can predict and maintain status of NAV (Net Asset value) in the interest of esteemed
investors.
 Benefits
 Profit
 updated information of NFOs
 What is the current NAV of Mutual Funds?
 Better return on investments
 SIP Benefit (Systematic investment plans)
 Unique & Powerful concept of Trail earning which are calculated on the total value of
investment and paid as long as the investment study. This very attractive and
sustainable medium to long term earning prospects
 Mutual fund is a regular investment product & and not a one time sale
 Great advantage over insurance, postal etc. where commission is generally paid on
the premiums received.
NJ offers many useful financial tools and calculators to NJ Fundz Partners. Such tools are very
useful in creating financial plans for clients, preparation of cash flows, etc.
NJ Tools & Calculators
 Monthly Dynamic Debt Analyzer
 Dynamic SIP Calculator
 Dynamic STP Calculator
 Delay Cost Calculator
 Insurance Planning/Comparison Tool
 NJ Financial Planning Tool
In addition to Financial Tools and Calculators, each NJ Fundz Partner is also presented with NJ
Sales Kit – a great compilation of selected useful presentations, which would help enrich the
knowledge of the Advisors. The presentations can also be used while communicating with their
clients.
 P a g e | 21

6. . 360° – ADVISORY PLATFORM:-

With this philosophy, we try to offer all possible products, services and support which an
Advisor would need in his business.
 P a g e | 22

The support functions are generally in the following areas …

 Business Planning and Strategy
 Training and Development – Self and of employees
 Products and Service Offerings
 Business Branding
 Marketing
 Sales and Development
 Technology
 Advisors Resources - Tools, Calculators, etc..
 Research
 Communications

With this comprehensive supporting platform, the NJ Fundz Partners stays ahead of the
curve in each respect compared to other Advisors/competitors in the market.

Recognition
Some of the awards & recognitions that we have received in past

Year2000:-:For Outstanding Performance presented by Chairman, Prudentially. at London.

Year2002:-:For Outstanding Performance presented by Group Chief Executive, Prudential Plc. at
London.
Year2003:-:For Outstanding Performance presented by Group Chief Executive, Prudential Place .at
London.
Year2004:Among Most Valued Business Associates presented by HDFC Standard Life at
Edinburgh, Scotland.
Year 2004:-For Outstanding Performance by Deputy CEO, Prudential Singapore at Malaysia.
Year2006:-Award for mobilizing the Highest Number of SIPs at National Level byFidelity
Mutual Fund Mumbai.
Year2006:Award –Vietnam\
 P a g e | 23

NJ Fundz Network

NJ Fundz Network has been playing a pioneering role in India in providing independent
advisors / advisory firms with integrated, comprehensive and practical business solutions for
nsuring continuous growth & continuity of business. It provides the financial advisors and the
institutions that serve them with insights, strategies and tools to help them significantly grow
their businesses. How do we do it? That’s because we understand how financial & wealth
management businesses work and what is needed to manage, monitor and grow the practice

First in the Indian Mutual Fund Industry to offer a Complete Business Platform to
Advisors
 P a g e | 24

NJ Realty Services
This is an integrated service model offering solutions for meeting the diverse real-estate
needs of corporate & retail customers in transacting properties.

Finding the right property at the right value and the best buyer for a property is the crux
of any realty solution. At NJ India Realty we value this critical element of retailing and aim to
provide the customer with an integrated service model that not only focuses on him meeting his
desired needs but also on enhancing the overall experience of the transaction.

The scope of properties embraces both commercial & residential projects / properties.
The integrated value-added services ensure that the solutions are feasible, authentic, secure &
profitable.

Leveraging upon the strengths of the parent company NJ, NJ India Realty aims to offer
attractive options and operational guidance to satisfactorily realize the customers realty dreams.

Today NJ Realty Services has tied up with over 40 developers with over 150 projects
across India.
 P a g e | 25

NJ Gurukul

Making people benefit from the growing economy is possible by attracting them to
participate in Equity for long term, to make their money work for itself and create wealth. For
this to happen, a huge force of effective Financial Advisors is needed. Visualizing this need and
with a view to bridge the gap, NJ India Invest Pvt. Ltd. has set up NJ Gurukul to offer different
training programs at moderate costs.

NJ Gurukul works to conceive, craft, design, develop and execute effective training
modules to energize people with right inputs through different training programmers at modest
cost. Powered by NJ's experience of over 14 years as leaders in financial advisory services, NJ
Gurukul has emerged successful in conducting sizeable number of trainings since inception in
April 2007 and enjoys lineage of efforts put in by NJ prior to April 07. NJ Gurukul seeks to
create an enlightened community of ‘quality’ financial advisors capable of changing millions of
lives across India and even beyond…

NJ Gurukul also seeks to help people become better professionals / business personalities
& achieve success in their own endeavors.

For businesses, as a people partner, NJ Gurukul seeks to groom employees &

management so that they deliver upon their expectations & responsibilities, successfully. NJ
Gurukul is authorized to give training for Certified Financial Planner (CFP) by FBSB India.
Today NJ Gurukul has offered over 1200 training programmers with over 20000 candidates
 P a g e | 26

 Vision and Mission

 Vision:

Creating Wealth Transforming Lives

 Total Customer Satisfaction

 Commitment to Excellence
 Determination to Succeed with strict adherence to compliance
 Successful Wealth Creation of our Customers

 Mission:

We work towards building trusted relationship with our stakeholders, for inclusive
growth through constant process of innovation, time bound implementation & execution of ideas
and technological developments. We stretch our means and go overboard to make sure that our
clients' aspirations, dreams and expectations are met with, through high service standards.
 P a g e | 27

Quality online Wealth Account

As a premium client you would have access to one of the best online investment accounts
that offer comprehensive reports, many of which are unique in nature and give valuable insights
on our investments

Our online Wealth Account covers almost all the investment avenues that you may have:

 Mutual Funds – All AMCs, All Schemes

 Direct Equity
 Life Insurance
 Physical Assets – Gold and Property
 Private Equity – Business
 Debt Products

Bank Deposits and Company Deposits

o RBI / Infrastructure Bonds

o Postal Savings – KVP, MIS, NSC
o Debentures
o Small Savings – PPF, NSS

You would have access to Consolidated Net Asset Reports which would give you a
single view of all your investments into different avenues as given above.

Further, within each of the Asset class we have many more reports and utilities. Some of
the reports covered are …

Consolidated:

Consolidated Asset Allocation, Consolidated Net Asset, Interest Income, Profit & Loss
 P a g e | 28

INVESTMENT STRATEGIES

1. Systematic Investment Plan

Under this a fixed sum is invested each month on a fixed date of a month. Payment
is made through post dated cheques or direct debit facilities. The investor gets fewer units
when the NAV is high and more units when the NAV is low. This is called as the benefit
of Rupee Cost Averaging (RCA)

2. Systematic Transfer Plan:

Under this an investor invest in debt oriented fund and give instructions to transfer
a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund.

3. Systematic Withdrawal Plan

If someone wishes to withdraw from a mutual fund then he can withdraw a fixed
amount each month.
 P a g e | 29

RISK V/S. RETURN:

 P a g e | 30

Financial
Advisor
 P a g e | 31

HOW TO CHOOSE A FINANCIAL ADVISOR

Choosing a financial Advisor can be one of the most important financial decisions you make, but
finding the right person may be difficult. Our financial lives have become very complicated.
Years ago when you walked into your local savings bank to get a mortgage, you were given two
choices: do you want a 20-year or a 30-year mortgage? Today banks offer an overwhelming
selection of mortgages and rates to choose from plus a mindboggling array of financial products.
As a result, more individuals are using a financial planner. You may need a trusted advisor to
help you through the financial maze—but how do you find one?

FINDING THE RIGHT ADVISOER

Begin by asking your friends, work associates and relatives if they use a financial planner. Speak
with your other professional advisors such as your attorney or accountant and ask whom they
would recommend. Contact professional organizations and ask them to send you the names of
planners in your geographical area (see back panel).

Next, interview several planners before you decide to become a client. Many planners offer a
free introductory consultation—take advantage of this opportunity to find out about the planner
and the firm. Don’t be afraid to ask tough questions (see side panel). Remember, this is your
money.
 P a g e | 32

TYPES OF ADVISORS
Listed below are three general types of advisors, their respective credentials and the credential
training requirements:

1. Certified Financial Planner.

If you decide to use a financial planner, the preferred credential is the Certified Financial Planner
(CFP®) designation. This designation is earned after the successful completion of financial
planning coursework that often takes two or three years to complete, after which the advisor
must pass a rigorous ten-hour exam. An advisor with the CFP® designation should be able to
help you craft an overall financial and investment plan, but may or may not be someone you
would use to manage your money.

2. Full-Service Broker.

A broker typically holds a general securities license achieved through coursework covering a
variety of investment topics and regulations, and by passing a six-hour exam. Many brokers
obtain additional licenses that extend to the supervision of other brokers, the use of options and
futures, research report writing, and insurance. Those brokers who are interested in managing
money in a fee-based environment often obtain the Certified Investment Management Analyst
(CIMA®) designation, and those who become more active in the planning role earn the CFP®
designation noted above.

3. Professional Money Manager.

A money manager is often called a portfolio manager or investment manager and typically holds
a Chartered Financial Analyst (CFA®) charter. To hold a CFA® designation, the individual must
have at least three years of investment management or investment analysis experience, and pass
three levels of examinations.
 P a g e | 33

REGULATORY COMPLIANCE

Persons and firms who hold themselves out as providing investment advice must be registered
with either the Securities & Exchange Commission or the Massachusetts Secretary of State’s
office. Individuals may be covered under blanket registration of the firms they work for.
 Are you registered with the Securities & Exchange Commission (SEC)? If not, is
your firm registered?
 Are you registered with the Massachusetts Secretary of State’s office? If not, is
your firm registered?

BACKGROUND AND EXPERIENCE

Registered financial planners must file a form listing their education and experience with the
SEC and Secretary of State (form ADV part II). Ask for a copy of this form, too.

 What credentials have you earned?

 What is your educational background?
 How long have you been practicing financial planning?
 May I have a list of references

SERVICES
 What kind of services do you offer?
 Will you prepare a complete or partial financial plan after listening to my goals?
 Do you sell financial products?
 Do you manage investments for a fee?
 Do you review a client’s taxes?
 What kind of client do you generally service?
 Do you have a minimum account size?
 What continuing service will I receive after the initial plan?
 How often do you send out portfolio reports?
 What are your research methods and sources?
 P a g e | 34

HOW FINANCIAL PLANNERS ARE COMPENSATED

It is important to understand how the financial planner will be compensated for his or her
services. Planners generally charge using one of these four methods

Fee-only: This can be an hourly fee, a flat fee for a comprehensive plan or an annual retainer
amount. Fee-only planners do not earn any compensation from the investments they
recommend; they may not be able to charge on a commission basis because they may not be
licensed to sell financial products.

Commission-only: A commission-only planner earns his or her compensation when you actually
purchase an insurance or financial product, such as a mutual fund, from him or her. When
dealing with commission-only planners, exercise caution because their only source of income is
the revenues generated from selling.

Fee and commission: Also known as fee-based planning, this is the most popular form of
financial planning compensation. The planner earns an hourly fee for meeting with you and
providing advice as well as commissions on financial products you may purchase.

Money management: Some planners manage your investments for you and charge you a
percentage of the assets under management as their fee (usually around 1%). Again, exercise
caution when choosing a money manager especially if you are giving someone discretionary
power over your money.
 P a g e | 35

WHAT TO EXPECT FROM A ADVISOR

A good financial planner will n assess your existing financial situation (review your tax returns,
income sources, assets, debts, savings and investments, wills, insurance policies, estate and
retirement planning documents); n identify your personal and financial needs and goals in order
to develop a plan that’s right for you; n explain the pros and cons of various options and
products (stocks, bonds, mutual funds, IRAs); n assist you in carrying out your plan by referring
you to other professionals as necessary (investment brokers, accountants, lawyers); and, n
periodically evaluate your plan with you to be sure that it is still in line with your current goals.
What all those letters mean
 AICPAPFP—American Institute of Certified Public
Accountants/Personal Financial Planning Specialist. A Personal Financial Planning Specialist is
a CPA who haspassed a financial planning exam, has practical experience in financial planning
and is a member of the AICPA.

 CFA—Chartered Financial Analyst

CFA is a designation awarded by the Institute of Chartered Financial Analysts to experienced
financial analysts who have passed exams in economics, financial accounting, portfolio
management, security analysis and standards of conduct.

 CFP—Certified Financial Planner

A CFP is a planner who has met educational and experience requirements, agreed to abide by a
code of ethics and passed a national test administered by the CFP Board of Standards. The
exam covers insurance, investments, taxation, employee benefits, retirement planning and estate
planning.

 ChFC—Chartered Financial Consultant

ChFC is a designation awarded by the American College of Bryn Mawr and is the insurance
industry’s financial planning designation. Consultants must meet experience requirements and
pass exams covering finance and investing.
 P a g e | 36

 CLU—Chartered Life Underwriter

CLU is a designation awarded by the American College of Bryn Mawr. Recipients must pass
national examinations in insurance and related subjects as well as have business experience in
these areas.

 CPA—Certified Public Accountant

A CPA is an experienced accountant who has met the educational, statutory and licensing
requirements of the state in which they reside. CPAs perform audits and prepare tax returns they
leave the financial planning advising to the Personal Financial Planning Specialists in their field.

 RIA—Registered Investment Advisor

An RIA is an individual who has registered with the Securities & Exchange Commission (SEC)
and holds himself or herself out to be an investment advisor. Registration is required of anyone
who, for compensation and as part of a business, gives advice, makes recommendations, issues
reports or furnishes analysis on securities either directly or through publications. If a planner is
an employee of an advisory firm such as a brokerage house, the brokerage house will have a
blanket registration with the SEC for all employees
 P a g e | 37

Review of Literature
 P a g e | 38

1. “historians were blinded to the importance of the growth of professions before the
industrial revolution”
O'Day (1986)
A profession was defined as an occupation which exhibited certain traits including a collegial
and hierarchical organization, group control of recruitment, entry qualifications and training, a
self-imposed code of behavior, and a claim to monopoly over the a defined body of knowledge
and practical service.

2. “Nature of professionalization”
Lee (1995),
where he reviewed the nature of professionalization; the birth of the accountancy profession; the
establishment and defense of professionalization; and a retrospect and prospect. The most
obvious feature of early UK professionalization is the pursuit by accountants and their
institutions of economic self-interest in the name of a public interest. Use of entry, examination
and training requirements, lobbying over legislative matters, defending the exclusive use of
professional designations and attempting statutory registration each illustrate this point. A similar
pattern emerged in the USA in the late 1880s, although the specific rationale for
professionalization was different from that of the Scots chartered accountants.

3. “Investigated perceptions of professionalism in medicine”

Jha et al (2006).
This was an interview study of medical educators, medical students, doctors, allied health
professionals and lay professionals to assess views and experiences of professionalism in
medicine. It involved thematic content analysis of the interview transcripts (Jha et al. 2006). The
present study therefore is similar in that it offers an understanding of the professionalism of
financial planners from different stakeholder perspectives. Instead of thematic content analysis,
this present study will employ phenomena graphic methods in attempting to understand the
phenomenon of the professionalism of financial planners through an investigation of how
financial planners, lecturers and professional association managers make meaning of
professionalism from their own awareness (should be „experience‟) of the phenomenon
 P a g e | 39

4. “Parameter zing Interest Rate Models,”

Ahlgrim, D'Arcy and Gorvett, 1999,
Uses simulation to develop future scenarios for various applications. Wilkie’s Provides a review
of historical interest rate movements from 1953-1999, summarizes the key elements of several
interest rate models and describes how to select parameters of the models to fit historical
movements.

5. “Do Interest Rates Really Follow Continuous-Time Markov Diffusions?”

Ait-Sahalia, 1999,
Examines whether interest rates follow a diffusion process (continuous time Markov process),
given that only discrete-time interest rates are available. Based on the extended period 1857 to
1995, this work finds that neither short-term interest rates nor long-term interest rates follow
Markov processes, but the slope of the yield curve is a univariate Markov process and a diffusion
process.

6. “An Empirical Comparison of Alternative Models of the Short-Term Interest Rate

Chan, Karolyi, Longstaff, and Schwartz, 1992,
CKLS estimate the parameters of a class of term structure models using the generalized method
of moments technique and the time series of monthly interest rate data from 1964-1989. They
find that the volatility of interest rates is extremely sensitive to the level of the rate.

7. “What Can Be Learned from Recent Advances in Estimating Models of the Term
Structure,”
Chapman and Pearson, 2001,
Provides a comprehensive review of term structure models. They conclude that volatility
increases with the level of the short term interest rate and, within normal interest rate ranges,
mean reversion is weak. They also point out that the appropriate measure for volatility depends
on whether the period 1979-1982 (when the Federal Reserve shifted policy from focusing on
interest rates to inflation rates) is treated as an aberration or included in the sample period. They
also conclude that more research is needed to determine which interest rate model is best.
 P a g e | 40

8. “Recent Advances in Estimating Term-Structure Models,”

Chapman and Pearson, 2001,
Provides a summary of term structure literature and contrasts the issues that have been resolved
with those areas that require further research. They point out that mean reversion of interest rates
is weak and that absolute volatility appears to be related to rate levels. Unfortunately, the specific
nature of volatility is currently unresolved.

9. “A Theory of the Term Structure of Interest Rates,”

Cox, Ingersoll, and Ross, 1985,
Using a general equilibrium framework, CIR develop a process for the short-term interest rate.
The CIR term structure model is:
t t t t dr =κ (θ − r )dt +σ r dB

10. “The Information in the Term Structure,”

Fama, 1984
Examines the ability of forward rates to forecast future spot rates. Based on data for 1974 and
subsequent, he finds evidence that very short-term (one-month) forward rates can forecast spot
rates one month ahead. Data prior to 1974 indicate that this predictive power extends five months
into the future.

11. “The Information in Long-Maturity Forward Rates,”

Fama and Bliss, 1987
Examines expected returns on U.S. Treasury securities with maturities of up to five years. They
find that the one-year interest rate has a mean-reverting tendency, which results in one-year
forward rates having some forecasting power two to four years ahead. Thus, the paper provides
evidence that, while forward rates are not good forecasters of very near-term changes in interest
rates, they are better at forecasting long-term changes.
 P a g e | 41

12. “A Regime-Switching Model of Long-Term Stock Returns,”

Hardy, 2001, North American
Using monthly data from the S&P 500 and the Toronto Stock Exchange, a regime switching
lognormal model is parameterized and compared with other models. The author finds the
performance of the regime-switching model to be favorable.

13. “Bond Pricing and the Term Structure of Interest Rates: A New Methodology for
Contingent Claims Valuation,”
Heath, Jarrow, and Morton, 1992,
Rather than developing a process for the short rate, HJM model the movements of the entire term
structure through a family of forward rate processes.

df (t,T) = µ (t,T, f (t,T))dt +σ (t,T, f (t,T))dBt where

T
ftTPtT
∂
∂
( , ) = − ln ( , )
HJM find that the drift in forward rates can be restated in terms of the volatilities,
implying that the market price of risk is unimportant in contingent claims
valuation.

14. “A Stochastic Asset Model & Calibration for Long Term Financial Planning Purposes,”
Hibbert, Mowbray, and Turnbull, 2001,
This paper describes a model that generates consistent values for the term structure of interest
rates, both real and nominal, inflation rates, equity returns and dividend payouts. The model can
be used to generate multiple potential paths for each of these variables for use in financial
modeling. The paper provides an excellent review of interest rates, inflation rates and equity
returns over the last 100 years, or longer, as well as for more recent periods.
 P a g e | 42

RESEARCH
METHODOLOGY
 P a g e | 43

INTRODUCTION TO RESEARCH

“ALL PROGRESS IS BORN OF INQUIRY”

Research inculcates scientific and inductive thinking and it promotes the Development of logical
habits of thinking and organization. The research Methodology has gone through which path to
solve the research problem and which tools have been adopted to achieve the desired objective
and more Importantly it tells why only that path or tools have been chosen and not other?

DEFINITION OF RESEARCH

The simple definition laid down in the Advanced Learner’s Dictionary of Current English is “a
careful investigation or inquiry especially through search for new facts in any branch of
knowledge.”

“Research is the manipulation of things, concepts or symbols for the purpose of Generalizing to
extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in
the practice of an art.”
- D. Slesinger and M. Stephenson

“Research is an endeavor to discover, develop and verify knowledge. It is an intellectual process

that has developed over hundreds of years, ever changing in purpose and form and always
searching for truth.”
- C. Francies Rummel
 P a g e | 44

MEANING OF RESEARCH
Research is an ORGANISED and SYSTEMATIC way of FINDING ANSWERS to
QUESTIONS

SYSTEMATIC because there is a definite set of procedures and steps which you will follow.
There are certain things in the research process which are always done in order to get the most
accurate results.

ORGANIZED means that there is a structure or method in going about doing research. It is a
planned procedure, not a spontaneous one. It is focused and limited to a specific scope.

FINDING ANSWERS is the end of all research. Whether it is the answer to a hypothesis or even
a simple question, research is successful when we find answers. Sometimes the answer is no, but
it is still an answer

QUESTIONS are central to research. If there is no question, then the answer is of no use.
Research is focused on relevant, useful, and important questions. Without a question, research
has no focus, drive, or purpose. Actually, research is simply the process of arriving as
dependable solution to a problem through the planned and systematic collection, analysis and
interpretation of data.
 P a g e | 45

STATEMENT OF THE PROBLEM

roblem Statement is a clear concise description of the issues that need to be addressed by a
problem solving team and should be presented to them before they try to solve the problem.
When bringing together a team to achieve a particular purpose efficiently provide them with a
problem statement. The problem statement in this research study is “FACTORS CONSIDERIED
BY FINANCIAL ADVISORY IN SELECTION OF FINANCIAL COMPANY.”

SIGNIFICANCE OF RESEARCH

“All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry,
and inquiry leads to invention” is a famous Hudson Maxim in context of which the significance
of research can well be understood. Increased amounts of research make progress possible.
Research inculcates scientific and inductive thinking and it promotes the development of logical
habits of thinking and organization.

The role of research in several fields of applied economics, whether related to business or to the
economy as a whole, has greatly increased in modern times. The increasingly complex nature of
business and government has focused attention on the use of research in solving operational
problems. Research, as an aid to economic policy, has gained added importance, both for
government and business
 P a g e | 46

OBJECTIVES OF RESEARCH
People enlist the help of a financial Advisor because of the complexity of performing the
following:

 Study about the financial advisor recommended the financial product to investors.
 Understanding how financial advisor are communicate their investors
 Understanding the behavior of an investor shown for investing in Mutual Fund.
 Providing financial security and ensuring that all goals of personal finance are met
 Understanding how each financial decision affects other areas of finance;

NEED FOR RESEARCH DESIGN

Research design is needed because it facilitates the smooth sailing of the various research
operations, thereby making research as efficient as possible yielding maximal information with
minimal expenditure of effort, time and money. Just as for better, economical and attractive
construction of a house, we need a blueprint (or what is commonly called the map of the house)
well thought out and prepared by an expert architect, similarly we need a research design or a
plan in advance of data collection and analysis for our research project. Research design stands
for advance planning of the methods to be adopted for collecting the relevant data and the
techniques to be used in their analysis, keeping in view the objective of the research and the
availability of staff, time and money.

SCOPE OF THE STUDY

The research study “FACTORS CONSIDERIED BY FINANCIAL ADVISORY IN

SELECTION OF FINANCIAL COMPANY”, has been carried out with an objective to evaluate
the performance of mutual funds in terms of risk and return. The scope of this study has been
limited to 15 schemes chosen as per the priority given by the respondents of Gujarat state. This
research study includes 14 selected Indian mutual fund schemes. The study has been kept limited
to only two fund categories namely equity fund and income fund. Thus, scope of the research
study is limited to the information collected through secondary data to evaluate the investment
performance of sample mutual fund schemes.
 P a g e | 47

TYPES OF RESEARCH

The basic types of research are as follows:

(i) Descriptive vs. Analytical: Descriptive research includes surveys and fact-finding enquiries of
different kinds. The major purpose of descriptive research is description of the state of affairs as
it exists at present. In social science and business research we quite often use the term Ex post
facto research for descriptive research studies. The main characteristic of this method is that the
researcher has no control over the variables; he can only report what has happened or what is
happening.

(ii) Applied vs. Fundamental: Research can either be applied research or fundamental research.
Applied research aims at finding a solution for an immediate problem facing a society or an
industrial/business organization, whereas fundamental research is mainly concerned with
generalizations and with the formulation of a theory. “Gathering knowledge for knowledge’s
sake is termed ‘pure’ or ‘basic’ research.” Research concerning some natural phenomenon or
relating to pure mathematics are examples of fundamental research.

(iii) Quantitative vs. Qualitative: Quantitative research is based on the measurement of quantity
or amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative
research, on the other hand, is concerned with qualitative phenomenon.
 P a g e | 48

DATA COLLECTION
Type of data collection: -

1. Primary data:

Primary data are those, which are collected afresh and for the first time, and thus happen to be
original in character. We collect primary data during the course of doing experiments in an
experimental research but in case we do research of the descriptive type and perform surveys,
whether sample surveys or census surveys, then we can obtain primary data either through
observation or through direct communication with respondents in one form or through personal
interviews. There are several methods of primary data:
 Observation method
 Interview method
 Through questionnaires
 Through schedules
In these methods, we select questionnaires method for our survey because questionnaires method
helps to study the expression of an individual and during that period we observe the situation of
working culture also. So according to me questionnaires method is more beneficial in our
research. JVIMS- encouraging Curiosity & creativity
 Questionnaires

Quite often questionnaire is considered as the heart of a survey operation. Hence, it should be
very carefully constructed. This method of data collection is quite popular. For workers we
prepare questionnaires in printed form and for employees we prepare online questionnaires. For
both the parties questions are same. All the questions are closed ended so that we got particular
and exact answer.

2. Secondary data: -

Secondary data means data that are already available i.e., they refer to the data which have
already been collected and analyzed by someone else. Secondary data has been collected through
library and previous research report.
 P a g e | 49

LIMITAITION OF THE STUDY

Most stock investors do not invest with risk management as their number one priority. A typical
stock investor does some kind of research, whether it is fundamental analysis, technical analysis,
or sentiment analysis or even all three. After the analysis is done, then the individual places the
order and buys the stock. After the stock is purchased, then the individual decides if they should
place a stop order to help manage risk or place an order to sell all or a portion of their stock. This
typical investor has gone about their risk management strategy backwards in that they are
managing their risk after the fact.

1. The time constraint is the major limitation of this research study.

2. As no work has been done earlier in this regard so scarcity of secondary data is also there.
3. The sample taken for the study is also small i.e. only 143 so an accurate research cannot be
done.
4. The improper response of the respondents affects the findings of the study.
5. Geographical aspect also affected the research.
 P a g e | 50

Data Analysis
&
Interpretation
 P a g e | 51

Table A
Question 1 What is your monthly income? percentage Total
A up to 10000 23.77 34
B 10000 to 15000 31.47 45
C 15000 to20000 19.58 28
D 20000 to 30000 18.18 26
E 30000 and above 7 10
Total 100 143

Chart A

The above graph if interpreted that highest percentage income group of the advisors are having
mothly income 10000 to 15000 second highest earning group of the advisors having income of
up to 10000, third , fourth , fifth,are having income of 15000 to 2000 ,20000 to 30000 and above
30000 recpetively.
 P a g e | 52

Table B
Question 2 What is your monthly Expense? Percentage Total
A Up to 5000 28 40
B 5000 to 10000 33.56 48
C 10000 to 12000 24.47 35
D 12000 to 15000 7.69 11
E 15000 to 20000` 4.19 6
F More than 20000 2.09 3
Total 100 143

Chart B

From the above graph it can be interpreted that the highest percentage(33.56%) group of the
advisors having monthly expenses of 5000 to 10000. Second highest expence group of the
advisors are having 28% up to 5000
 P a g e | 53

Table C
Question 3 Being a financial advisory. How many years of experience you are having?
percentage Total
A Less then 1 year 30.77 44
B 1 to 3 year 31.47 45
C 3 to 5 year 17.48 25
D 5 to 10 year 15.38 22
E More than 10 year 4.9 7
Total 100 143

Chart C

from the above graph it can be interpreted that highest number of advisors (45) having
experience of 1-3 years. Then less no of the advisors are moare then 10 year expereyancce.
Second , third ,forth are having a expereyance advisors less then 1 year ,3 to 5 year , 5 to 10 year
respectively.
 P a g e | 54

Table D
Question 4 In which financial segment you are working?
Percentage Total
A Mutual Fund 11.18 16
B Tax Advisory 8.39 12
C Equity 9.8 14
D Post Agent 13.29 19
E Insurance 54.55 78
F Other, Specify____________. 2.79 4
Total 100 143

Chart D

From the above graph interpreted that highest percentage (54.55) group advosrs is working in a
insurance segment. Secong highest percentage(13.29) group of the advisors is working in post
office. Then third, fourth, fifth and, six are working in a mutual funds, equity, tax advisory, other
respectively .
 P a g e | 55

Table E
Question 5 What kind of investment prefers most?
Percentage Total
A Saving Account 19.31 62
B Fixed Deposit 17.13 55
C Insurance 18.07 58
D Mutual Funds 6.54 21
E Post Office 10.9 35
F Share /Debt 3.73 12
G Gold/Silver 11.21 36
H Real Assets 6.23 20
I Public Provident Funds 4.98 16
J Provident Fund 1.9 6
Total 100 321
 P a g e | 56

Chart E

From the above graph interpreted that highest percentage(19.31) group of the customer is invest
in saving account. Second highest investment in a insurance segment is having 18.67%.
third,fourth , fifth, six… are investing in fixed deposit, gold/silver, post office and mutual funds..
respectively
 P a g e | 57

Table F
Question 6 How will you recommend the financial products to investor?
Percentage Total
A Knowledge based selling 36.36 52
B Based on financial planning 28.67 41
C Need based selling 18.9 27
D Revenue based\ 16.07 23
Total 100 143

Chart F

From the above graph interpreted that the taking a first renk of 57 financial advisors are sell
theire product base on knowledge. Then the second renk was 41 advisor are sell theire product
based on financial planning. third and fourth renk are sell theire product are need based and
revenue respectively.
 P a g e | 58

Tabel G
Question 7 While investing in money which factor you most ?
Percentage Total
A Liquidity 17.48 25
B Low Price 23.78 34
C High Return 34.97 50
D Company Reputation 23.77 34
Total 100 143

Graph G

From the above graph interpreted that Highest 34.97 percentage advisors are selected factor of
high return , second 23.78 percentage advisors are selected factors of Low Price then 23.77%
and 17.48% group of the advisoare selected company reputation and liquidity .
 P a g e | 59

Tabel H
Question 8 Are you aware about Mutual Fund?
Percentage Total
A Yes 55.94 80
B No 44.06 63
Total 100 143

Graph H

From the above gra\ph interpreted that the 56.94% advisors are aware about the
Mutual Fund and then the 44.06% advisors are not aware about The Mutul Funds.
 P a g e | 60

Table I
Question 9 According to you investors are investing in MF for which of the following reason?
Percentage Total
A High Return 26.23 53
B Tax Saving 15.35 51
C Wealth Creation 11.88 24
D Liquidity 12.88 26
E Profession Management 9.9 20
F Safety 15.34 31
G Goal Achievement 7.42 15
H Other Specify______ 1 2

Total 100 222

Graph I

The above table and chart shows different investor are selected mf for following reasion. The
data in table and chart shows that 26.23 are of high return, 15.35 are of tax saving, 15.34 are of
safety, 12.88 aer of liquidity, 11.88 are of wealth creation ,9.99 are of profession management,
7.42 are of goal achivement and 1.00 are of other .
 P a g e | 61

Table J
Question Do you think that MF gives better risk adjusted return compared to other financial
10 instruments?
Percentage Total
A Yes 56.65 81
B No 43.35 62

Total 100 143

Graph J

From the above graph it can be interpreted that advisor are think highest
percentage 65.65 mutual fund gives better risk adjustment as compare to other
financial product and 43.35 % is think that mutual funds is not gives better risk
adjustment as compare to other financial product.
 P a g e | 62

Table K
Question 11 Will you recommend investment in MF to investors?
Percentage Total
A Yes 46.15 66
B No 53.85 77

Total 100 143

Graph K

From the above graph interpreted that the lowest percentage 46.15 advisors are
recommend investment in mutual funds to investors and highest percentage 53.85
advisors are not recommend investment in murual funds to investors.
 P a g e | 63

Table L
Do you know that earnings in MF advisory business are higher than in any other
Question 12 investment instruments in long term?
Percentage Total
A Yes 45.45 65
B No 54.55 78

Total 100 143

Graph L

From the above graph we found that most of (55%)the advisors don’t know that earnings in MF
advisory business are higher than in any other investment instruments in long term
 P a g e | 64

Table M
Question 13 Have you passed-out AMFI Examination?
Percentage Total
A Yes 16.09 23
B No 83.91 120

Total 100 143

Graph M

From the above graph interoreted that 23 out of 143 advisors are passed out AMFI exam and
120 out of 143 adviosrs are not passed out AMFI exam.
 P a g e | 65

Tabel N
Question 14 If no would you like to appear for AMFI Examination?
Percentage Total
A Yes 27.97 40
B No 72.03 103

Total 100 143

Graph M

From the above graph it can interpreted that 28 percentage advisors are like to appear for AMFI
exmination. And 72 percentage are does not like to appeare for AMFI examination
 P a g e | 66

Tabel O
Question 15 Have you heard about NJ India investment which is leading MF distributor in India?
Percentage Total
A Yes 29.37 42
B No 70.63 101

Total 100 143

Graph M

From the above Table and Graph interpreted that 29.37 % of advisors are heard about NJ india
invest and 70.63% of advisors are do not know about NJ india invest. Which is leading Mutual
Funds distribute in india.
 P a g e | 67

Tabel P

Do you think that investors will be more satisfied by having all the financial products
Question 16 at the same place with same expertise?
Percentage Total
A Yes 49.65 71
B No 50.35 72

Total 100 143

Graph P

From the above graph it can be interpreted that 50 % are think that investors will be more
satisfied by having all the financial products at the same place with same expertise.
 P a g e | 68

Tabel Q
Question 17 Do you think which of the following products are offered by NJ funds to investors?
Percentage Total
A Mutual Fund 30.29 73
B Real Estate 12.86 31
C Insurance 20.34 49
D Training & Education 13.28 32
E PMs 4.15 10
F Financial Planning Software 13.27 32
G FD/Bonds 5.81 14
Total 100 241

Graph Q

From the above grafe it can be iterpreted thet following products are offered by NJ funds to
investors .the tabel and chart are shows that 30.29% are of think that mutual fund, 20.34% are of
think that insurance , 13.28% are of think that training & education, 13.27 are of think that
financial planning softwere, 12.86% are of think that real estet, 5.81% are of think that FD/Bond,
and 4.15 are the lovest percent of advisors are think that PMS.
 P a g e | 69

Tabel R
Question 18 which mode of invested will you recommend to you customer?
Percentage Total
A One time Investment 30.77 44
B Systematic Investment Planning(SIP) 69.23 99
Total 100 143

Graph R

From the above chart we can intepreted that 69.23% of advisors are recommend customer to
invest in SIP mode and 30.77% of advisors are recommend customer to invest in one time
investment mode.
 P a g e | 70

Tabel S
Question 19 Would you like to be a channel partner with NJ India invest?
Percentage Total
A Yes 11.89 17
B No 88.11 126

Total 100 143

Graph S

From the above table and chart we can interpreted that 11.89% of advisors would not like to be a
chanel part of NJ india investment and 88.11% of advisors are like to be a chanel part of NJ india
investment.

\
 P a g e | 71

FINDINGS
&
SUGGESTIONS
 P a g e | 72

FINDINGS
 From the study it can be derivd that highest percentage (54.55) group advosrs is working
in a insurance segment.
 From the survery it has been found that most of the investors (35%) are investing for high
return and 25% of investors making investment because of the low price.
 Only 30% of investors are aware about the mutual funds schemes provided by the N J
India, 70% of people are unaware about the mutual funds schemes of N J India.
 Most of the investors like to invest in the Savings account, Insurance and Fixed deposites
 Financial advisors mostly advises knowledge based selling and financial planning
schemes.
 Majority of the investors are falling in the income class of 10000-15000.
 At the time of investing in money the investor is giving more preference to highest
returns and lowest preference to liquidity.
 Out of our total research around 54 % investors are aware of mutual fund.
 At the timmig of investing in murual fund invewstors gives more preference to high
return.
 Most of the investors prefer SIP plan rather than one time return. i.e most of the investors
would like to leveraging their investment mode.
 Out of total study 56 % advisors gives opinion that mutual fund gives more risk adjusted
return than other financial instrument but still 53 % advisors not recommending mutual
fund to investors.
 P a g e | 73

SUGGESTIONS
On the basis of above described market analysis and some other facts which I realized during
summer training there are some recommendation for the company which can be beneficial for
the growth of company. They are:

 Customer interactive session should be organised on a regular basis so that they could
have a better learning about mutual fund & its product because there are many people
who do not have a clear idea about all mutual fund products & how the mutual fund
industry works.
By doing so it can attract more investment into this sector.
 The company have to make the people understand the benefits if they make their
investment through NJ INDIA INVEST PVT. LTD. & it should develop a good customer
service cell where grievances of a customer can be solved because a satisfied customer
will bring more number of customers
 Company should make awareness in the investors about the schemes provided by N J
India.
 A special BPO should be made to do core calling & problem solving over the phone.
Problem solving over the phone require special skilled BPO employees. So, it is required
to develop the business of NJ INDIA INVEST PVT. LTD.
 P a g e | 74

OWN EXPERIENCE
I have joined NJ INDIA INVEST PVT .Ltd on 15th Junel, 2012 as summer trainee. I was under
the mentorship of Mr Ravindra Pansara (Branch Manager) & Mr Vipul Trivedy (Agency
Manager). I have gained a real working experience & learned many valuable things by joining
this company. I started my work by collecting data of Advisors from the field by visiting various
Insurance office of Jamnagar. I got a good response from people from the day 1ast they were
giving their contact details. Every day I used to collect 10 contact details by way of normal
questionnaire and phone no. I had developed the questionnaire to differentiate me as a MBA
student from others. On the very next day, I used to call them up, fix up an appointment over the
phone & went to their offices to give a presentation & convince them to buy mutual fund
products. Sometimes in the beginning my mentor Mr. Vipul Trivedy took me to joint calls to
teach me how to convince a new client & how to talk with them. As soon as I got the
appointment I went to the respective person’s office/desired place on time and started with the
conversation with casual talks, make that person be friendly with me & then start the
presentation. What I used to do is to literate the customers about mutual fund industry & then
create a need for Mutual Fund in them. As soon as the need was felt I used to get business from
them.
 The summer internship is a valuable learning experience. It gives an insight about the
organization, the kind of work and the people involved in it and how business work.
 During internship I have initially faced a lot of different tasks which helps a person build
good relationship at the workplace. It helped in developing my team building skills.
 To know about the company and its work culture.
 I improved my communication skills by learning how to talk to different kind of people
as it requires the different approach to handle each person.
 I have gained good knowledge about mutual fund which is very necessary being a finance
student. Now my base about mutual fund is totally clear.
 I have learnt how to handle and convince people when they are totally new to me.
Patience was the thing I learnt the most as I have to approach the clients who were to be
explained same things again and again while approaching or calling them at regular
intervals.
 P a g e | 75

CONCLUSION

On the basis of my experience during the 45 Days summer training, analyzing the data that was
collected through a questionnaire and face-to-face conversation with the people I conclude this
project work with the words that-

In spite of the bleak and grim outlook the future of capital market is growing at a very high pace.
Taking these things into consideration there are lots of opportunity for the Investment advisory
service providers which already exist and which are due to enter in the Indian market.The fund
managers of the schmes of mutual fund are also trying their best in giving more return to the
investors by allocating the fund in a most suitable way. There is little awareness about Equity
and Mutual funds in India. People have accepted it as one of the major investment avenue. As
people have entered in this particular investment avenue they have lost money because of
movement in the market which is below the par value and this has shaken the faith of investors in
this particular avenue.

NJ has emerged a very strong player in the field of distribution of financial product it is giving
stiff competition to all players. If the progress of NJ goes in the same way then it will emerge as
a major player in the Capital market. They have much more potential to expand their business.
Comparing to other investment avenues, investing in mutual fund is lot more profitable. So,
everybody should invest a part of their income in this avenue for creation of wealth.
 P a g e | 76

BIBLIOGRAPHY

REFERENCES
Following are the sources from where the Primary data has been gathered:

JOURNALS/MAGAZINES

Fundz Watch

Mutual Fund Insight

INTERNET WEBSITES
www.njindiainvest.com

www.amfiindia.com

www.valueresearchonline.com

www.scribd.com

www.moneycontrol.com

www.sebi.gov.in

www.nseindia.com
 P a g e | 77

Appendix

LIST OF THE TABLE

Sir No. Particular Question s

1. Table A Question 1 45
2. Table B Question 2 46
3. Table C Question 3 47
4. Table D Question 4 48
5. Table E Question 5 49
6. Table F Question 6 51
7. Table G Question 7 52
8. Table H Question 8 53
9. Table I Question 9 54
10. Table J Question 10 55
11. Table K Question 10 56
12. Table L Question 12 57
13. Table M Question 13 58
14. Table N Question 14 59
15. Table O Question 15 60
16. Table P Question 16 61
17. Table Q Question 17 62
18. Table R Question 18 63
19. Table S Question 19 64
 P a g e | 78

LIST OF THE GRAPH

Sir No. Particular Question Page No.

1. Graph A Question 1 45
2. Graph B Question 2 46
3. Graph C Question 3 47
4. Graph D Question 4 48
5. Graph E Question 5 49
6. Graph F Question 6 51
7. Graph G Question 7 52
8. Graph H Question 8 53
9. Graph I Question 9 54
10. Graph J Question 10 55
11. Graph K Question 10 56
12. Graph L Question 12 57
13. Graph M Question 13 58
14. Graph N Question 14 59
15. Graph O Question 15 60
16. Graph P Question 16 61
17. Graph Q Question 17 62
18. Graph R Question 18 63
19. Graph S Question 19 64
 P a g e | 79

QUESTIONNAIRE

I am Nakum Harish conducting a survey research on FACTORS CONSIDERIED BY

FINANCIAL ADVISORY IN SELECTION OF FINANCIAL COMPANY with N J
India invest Pvt. Ltd. I assure you that the data given by you will be used on for academic
purpose.

 Name:-__________________________________________________________________
 Address:-________________________________________________________________
________________________________________________________________________
_____________________________________________________.
 Contact no.:-_________________.
 Email Id:-_____________________________.
 Qualification
Under graduate Graduate
Post graduate professional

1. What is your monthly income?

up to 10000 10000 to 15000

15000 to20000 20000 to 30000
30000 and above

2. What is your monthly Expense?

Up to 5000 5000 to 10000

10000 to 12000 12000 to 15000
15000 to 20000 More than 20000
 P a g e | 80

3. Being a financial advisory. How many years of experience you are having?

Less then 1 year 1 to 3 year

3 to 5 year 5 to 10 year
More than 10 year

4. In which financial segment you are working?

Mutual Fund Tax Advisory

Equity Post Agent
Insurance Other, Specify______________________.

5. What kind of investment prefers most?

Saving Account Fixed Deposit

Insurance Mutual Funds
Post Office Share /Debt
Gold/Silver Real Assets
Public Provident Funds Provident Fund

6. How will you recommend the financial products to investor?

Knowledge based selling Based on financial planning

Need based selling Revenue based\

7. While investing in money which factor you most ?

Liquidity Low Price

High Return Company Reputation
 P a g e | 81

8. Are you aware about Mutual Fund?

Yes No

9. According to you investors are investing in MF for which of the following reason?

High Return Tax Saving

Wealth Creation Liquidity
Profession Management Safety
Goal Achievement Other Specify_____________

10. Do you think that MF gives better risk adjusted return compared to other financial
instruments?
Yes No

11. Will you recommend investment in MF to investors?

Yes No

If no specific reason,__________________________.

12. Do you know that earnings in MF advisory business are higher than in any other
investment instruments in long term?
Yes No

13. Have you passed-out AMFI Examination?

Yes No

14. If no would you like to appear for AMFI Examination?

Yes No

15. Have you heard about NJ India investment which is leading MF distributor in India?
Yes No
 P a g e | 82

16. Do you think that investors will be more satisfied by having all the financial products at
the same place with same expertise?
Yes No

17. Do you think which of the following products are offered by NJ funds to investors?

Mutual Fund Real Estate

Insurance Training & Education
PMs Financial Planning Software
FD/Bonds

18. which mode of invested will you recommend to you customer?

One time invest systematic investment planning

19. Would you like to be a channel partner with NJ India invest?

Yes No

If No, specific reason,______________________________.