Project Proposal No.

_______________
(To be assigned by the School) MBA

School of Management Studies INDIRA GANDHI NATIONAL OPEN

UNIVERSITY Proforma for Approval of Project Proposal (MS-100)

Enrolment No. : 199284844 Study Centre Code : 0784

Regional Centre Code :
Name of the Student : Diksha Nagpal

Address of the Student : 142/3 Insar Bazar Panipat, Near Veer photo studio Panipat,132103

E-mail Address : Nagpaldiksha2@gmail.com

Title of the Project : NFO PROCESS IN MUTUAL FUNDS AT INDIA INFOLINE

Subject Area : Finance Management

Name of the Guide : Mr. Raj Sharma

Address of the Guide : 207B Shri Ram Nagar Shahdara Delhi -110032
Is the Guide an Academic Counsellor of Management Programme of IGNOU? No
If Yes, Name and Code of :
Study _________________________________________________________
Centre, the courses s/he is __________________________________________________________
counselling, and period __________________________________________________________

No. of Students currently working : 2

under the guide for MS-100

Signature of Student Signature of Guide

Date: Date :

Please do not forget to enclose the Project Proposal and signed Bio-data of the guide.

For Office Use only

Proposal Guide
(SIGNATURE OF MANAGEMENT FACULTY)
Approved Approved
Date ..........................................
Not Approved Not Approved
 PROJECT SYNOPSIS

NFO PROCESS IN MUTUAL FUNDS

AT INDIA INFOLINE

Submitted By:

Diksha Nagpal

Enrollment No: 199284844

Under The Guidance Of:

Mr. Raj Sharma

Submitted To:

INDIRA Gandhi National Open University

In partial fulfillment for the award of the Master’s Degree in Business

Administration (Finance)
 INTRODUCTION

Mutual Fund Industry which is a relatively of a post-economic reforms phenomena

in India, has been expanding during this period in branch and bound Many
commercial banks, insurance companies entered into mutual fund industry apart
from foreign players. In the early years of evolution of mutual fund industry in the
Indian financial market it was a monopoly and continued to be the same till very
recent time. Then many players both foreign and Indian entered in the Mutual
Fund Industry.

The competitions had given raise to demand for specialized products

and skills of various individuals who can contribute towards the containment and
growth of individual firms in the mutual firm industry. This gave rise to various
related organizations and individuals working as specialized teams in the various
areas of mutual funds. One such organization is INDIA INFO LINE PVT LTD it
comes into pictures where the investors apply for the units in a Mutual Fund
schemes and verify the validity and eligibility of the investor and allots the units.

It is therefore felt expedient to examine the various intricacies involved in the new
fund offer (NFO). Specifically the various documents that are being processed, the
parameters evolve either customarily or by legal mandate to scrutinize the
applications. Various stages involved in the scrutiny, the rejection criteria, the
creation of human organization to monitor the activities, the communication
channel and the structure of the organized activities and the legal environment of
NFO to some extent. Such a dissertation would help to come out with a
comprehensive report which may serve as a guide for the prospective entrants into
mutual fund investment and to the existing mutual fund investors to some extent.

New fund offer (NFO):

When a mutual fund asset management company announces Public issue of units
of a new fund/scheme it is called a New Fund Offer (NFO).

When a mutual fund company plans for a new fund offer it first informs to the
registrar or the back office functions provider like INDIA INFO LINE through
email. This is called as “NFO Launching Information Mail” send by the fund
manager of the asset management company to the NFO coordinator of the INDIA
INFOLINE. In this Mail the fund manager will ask the NFO coordinator to get
ready for the new fund with the required man power and software.

Mutual fund:

Mutual fund is a mechanism for pooling the resources by issuing to the investors
and investing funds in securities in accordance with objectives as disclosed in offer
document.

Investments in securities are spread across a wide cross-section of industries and

sectors and thus the risk is reduced, Diversification reduces the risk because all
stocks may not move in the same direction in the same proportion at the same time.
Mutual fund issues units to the investors in accordance with quantum of money
invested by them. Investors of mutual funds are known as unit holders.
 Introduction of the organization

Circa1995, A group of professional formed a company called Probity Research &

Services Pvt Ltd. The name was later changed to India Info line Ltd. The
Objective was to provide unbiased and independent information to market
intermediaries and investors. The quality of research soon caught the imagination
of all major participants in the financial market. In a span of 2 to 3 years the client
list read like the who’s who of Indian Financial market. The list included
consulting firms like Mc Kinsey, companies like Hindustan Lever, Banks like
Citibank, Rating agencies like CRISIL, D&B, FIS, foreign brokers as well as
leading Indian brokers.

 Incorporated on October 18, 1995 as Probity Research & Services.

 Launched Internet portal www.indianinfoline.com in May 1999.
 Commenced distribution of personal financial products like Mutual Funds
and RBI Bonds in April 2000.
 Launched online trading in shares and securities branded as
www.5paisa.com in July 2000.
 Started life insurance agency business in December 2000 as a Corporate
Agent of ICICI Prudential Life Insurance.
 Became a depository participant of NSDL in September 2001.
 Launched stock messaging service in May 2003.
 Acquired commodities broking license in March 2004.
 Launched portfolio management services in August 2004.
 Listed on NSE and BSE on May 17, 2005.
  Acquired 75% stake holding in Money tree Consultancy services, which is a
distributor of Mortgages and other Loan products, in October 2005.
 Acquired 100% equity of March Mont Capital Advisors Pvt Ltd in
December 2005 through which they have ventured into Merchant Banking.
 DSP Merrill Lynch Capital subscribed to convertible bonds aggregating
Rs.80crores in December 2005.
 Bennett Coleman & Co Ltd (BCCL) invested Rs.20crores in India Info line
by way of preferential allotment in December 2005.
 Became a depository participant of CDSL in June 2006.
 Merger of India Info line Securities Private Limited with India Info line
Limited in January 2007.
 Entered into an alliance with Bank of Baroda for Baroda e-trading in
February 2012.
 IRDA license for Insurance Broking April 2018.

Service:

Our customer service is warm, friendly and responsive that media cannot help but
rave about. Today, service is the key driver for growth in financial services. We
take pride in our ability to add value that our customers can feel and appreciate.

Remember we have to always ensure that simple things like ensuring customer
problems are solved, requests are catered to, giving him investment ideas etc.
Basically, whatever it takes to keep him served.
 RATIONALE OF THE STUDY

Indian Mutual Funds industry offers a plethora of schemes and serves broadly all
tupe of investors. The range of products includes equity funds, debt, liquid, gilt and
balanced funds. There are also funds meant exclusively for young and old, small
and large investors. Moreover, the setup of a legal structure, which has enough
teeth to safeguard investors intersts, ensures that the investors are not cheated out
of their hard earned money. All in all, benefits provided by them cut across the
boundaries of investor category and thus create for them, a universal appeal.

In view of the growing competition in the Mutual Funds industry, it was felt
necessary to study the investors orientation towards Mutual Funds i.e. their pattern
of risk apetite and preferences in various schemes, plans and options in order to
provide a better service, the study is an attempt in that direction.

The purpose of this project creates a design in relation to process of NFO (NEW
FUND OFFER) and how this process is carried out till the end.

To schoolwork the technical procedure, legal dimensions of NFO at

India info line and examine briefly the organizational structure, communication
network, resource, requirements to launch a new fund.

It is therefore felt expedient to examine the various intricacies involved in the new
fund offer (NFO). Specifically the various documents that are being processed, the
parameters evolve either customarily or by legal mandate to scrutinize the
applications. Various stages involved in the scrutiny, the rejection criteria, the
creation of human organization to monitor the activities, the communication
channel and the structure of the organized activities and the legal environment of
NFO to some extent. Such a dissertation would help to come out with a
comprehensive report which may serve as a guide for the prospective entrants into
mutual fund investment and to the existing mutual fund investors to some extent.

PROBLEM STATEMENT

NEW FUND OFFER (NFO) PROCESS IN MUTUAL FUNDS AT INDIA

INFOLINE.
 OBJECTIVES OF THE STUDY

 To study the technical, procedural & legal dimensions of the NFO (NEW
FUND OFFER).
 To examine briefly the organizational structure, communication network,
resource requirements to launch a new fund offer.
 Procedure takes place in India infoline while going through the NFO
 RESEARCH METHODOLOGY
To fulfill the objective of the study both primary and secondary data has been
collected. Primary data is the data collected specifically for the study. Data is
collected directly from people and organizations via questionnaires or surveys
before being analyzed to reach conclusions concerning the issues covered in the
questionnaire or survey.

NATURE OF DATA: In research methodology data must be collected and there

are two sources of collection of data i.e.

PRIMARY DATA:

OBSERVATIONS - It is the methods of nothing and recording information

without asking specific question from the respondents.

PERSONAL INTERVIEWS - In this method I asks the question to the concerned

persons in the order questions are listed and record the replies.

SECONDARY DATA: Secondary data is the data collected previously by

someone else for some other purpose which can be analyzed and interpreted
according to requirements. For example, sources of secondary data are
government publications, newspapers, worldwide web etc.

INTERNAL SOURCE OF DATA: It originates from the specific field of study

like published brochures, official reports, etc.
EXTERNAL SOURCE OF DATA: It originates outside the field of study like
books, periodicals, journals, newspapers and internet.

SAMPLE DESIGN:

SAMPLING UNIT: NFO applicants & respondents of India Infoline.

SAMPLE SIZE: Approx 120 (may vary during actual study)

RESEARCH LOCATION: Delhi, NCR

RESEARCH PERIOD: Up to 1 month

SAMPLING PROCEDURE: Random sampling

 LIMITATIONS OF THE STUDY

Efforts will be made to make the study as accurate as possible, 100% accuracy
cannot be claimed because of the following reasons:

 The inspection of applications will be done on the basis of a sample of 120

applications. Though the sample is drawn randomly, the possibility of

sampling fluctuations affecting the findings cannot be ruled out.

 NFO process may not be same for all mutual funds that are released. It may

differ from one fund to other depending upon the size like the no. of

applications received, subscription amount received, etc.

 Only single organization will be studied i.e India Infoline.

 Time constraint of the study.

 Bio-Data of Guide

Name: RAJ SHARMA

Phone: +91-8750785343

E-mail: rajs8243@gmail.com

Father’s Name: Mr. Lekhraj Sharma

Date of Birth: 10TH July 1988
Address: 207B Shri Ram Nagar Shahdara Delhi -110032

Working experience:

Designation Organisation Duration

SBK INFOTECH PVT. LTD.
April 2018 – till
Senior Accountant Office no-1/3098, Mandoli road,
now
Shahdara, Delhi -110032
ANKIT ENTERPRISES (MESLEEP) Mar 2012– Mar
Accountant
Sahibabad Ghaziabad 2018

Educational Qualifications:
YEAR OF
Percen
INSTITUTION COMPLETIO
t
PROGRAM N
Swami Vivekanand Subharti University
MBA (Finance) 70 2011
(Meerut Bypass Road, Meerut, Uttar Pradesh)
Deshbandhu College ,University of Delhi
B.com 52 2008
(Kalkaji Main Rd, Block E, Delhi 110019)

RAJ SHARMA