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Project Guide:-

Prepared By:-

Prof. Prakash Chawla

Anaghan Pragnesh L Roll no. : 2 MBA: 2010-12

S.K.Patel Institute of Management and Computer Studies, Gandhinagar

The world does not even respect gods without wealth

- Chanakya

Research methodology Introduction


About company About summer work About title

Graphical data presentation Statistical Tools Research findings Recommendations Conclusion References

In this life, always, everywhere, it is the rich who power bear, Wealth is at the root, its clear, even of the kings dominion - The Hitopadesa

The world does not even respect gods without wealth

- Chanakya

Research Objectives:

Primary Objective: To know the role of financial advisors in creating wealth for investors for Gandhinagar District. Secondary Objectives:

To study the perception of financial advisors about different investment options available in the market.
To know priority level between different criteria of investment like safety level, retunes, liquidity, tax benefit, maturity of investment. To study about different type of services provided by financial advisors to their clients.

First, wealth is difficult to obtain, then guarding it is then a strain, Losing it is a bit like death, its better not to think of it - The Hitopadesa

The world does not even respect gods without wealth

- Chanakya

Scope of the study: 1) This report is conducted for Gandhinagar district only. 2)This report is on basis of financial advisors not investors. Sampling Design:

Sampling Method: convenient sampling method. Sample size: 150 Sampling Frame: Gandhinagar, Kadi, Kalol, Dahegam, and Manasa

Time period: 2 months (from 15th may, 2011 to 15th July, 2011) Data collection: Primary Data:- Questionnaire Secondary Data:- Internet, Magazines, Newspaper, Periodicals and Fact sheets of different AMCs and NJ India Invest.

Money is troublesome to earn And more troublesome to guard. Getting it or spending it, brings unhappiness. Money is a curse - Panchatantra

The world does not even respect gods without wealth

- Chanakya

Limitations of Study: As sampling technique is convenient sampling so it may result in personal bias and even respondents may give bias answer. This research reflects the role of financial advisors in creating wealth for investors in Gandhinagar district only. It cannot be generalized for other cities/districts. This project has mostly catered to the advisor of LIC and not of other insurance companies. Insufficient knowledge of every kind of investment sometimes sticks a respondent at particular answer, which inversely affect towards the objective of study.
After creating wealth , turn your attention to charity and integrity. Wealth is like us. Transitory perishable in a moment - Chanakya

The world does not even respect gods without wealth

- Chanakya

NJ FUNDZ NETWORK
A division of NJ IndiaInvest Pvt. Ltd., one of the leading advisors & distributors of financial products & services in India. NJ, established in 1994, has rich experience in the concerned domain Current Strength

Head Office : No. of Branches :No. of Certified Advisors :No. of Client Through Partners :Assets Under Advice :No Of Employees :-

Surat 110 15000+ 12+ Lac Rs.10,000cr. 850+

Largest Mutual Fund Distributor across India in terms of Retail Mutual Fund Business.
In this life, always, everywhere, it is the rich who power bear, Wealth is at the root, its clear, even of the kings dominion - The Hitopadesa

The world does not even respect gods without wealth

- Chanakya

My project work is to meet Financial Advisor such as Insurance Agents, Mutual Fund Advisor, Broker, Tax Planner, and Charted Accountant and convince them towards to sell Mutual Fund under NJ Fundz. In simple my target is to search Financial Advisor and convert them in to NJ Partner. To convert Financial Advisors in to NJ Partner we held 3 BOP (Business Opportunity Programme on Mutual Fund) at our Gandhinagar Branch. These programmes were conducted by Mr. Raviraj Khatri, Senior sales-executive, NJ India Invest.
There is nothing in this world that wealth cannot accomplish, So let the sole aim of men be, making money -Panchtantra Wealth is unmatched beauty, wealth is auspicious, wealth is bursting youth, wealth is life itself
- Chanakya

The world does not even respect gods without wealth

- Chanakya

INDIA A Growth Story for Long Term


Indian GDP expected to Grow at 6% + rate for coming years due to following reasons :

Favorable Demographics Half the Indian Population is below 25

years of age.
Massive Infrastructure Spending- Development of Roads, Ports, Telecom

( About $50 Billion to be spended during 2007-12)


Reforms FDI, Tax Reforms. Expected to be Second Largest Economy in the world by 2050
Seek wealth with indifference to it and for good causes. It is better to stay away from mud than to clean its stains - The Hitopadesa

The world does not even respect gods without wealth

- Chanakya

PENETRATION OF FINANCIAL PRODUCTS


Investor Base Across Various Financial Products

* Source: AMFI, CBDT, RBI, SEBI, NSDL, CDSL Dataworks Survey 2010

Wealth gives in life a mighty stature, with it one is both strong and wise - The Hitopadesa

The world does not even respect gods without wealth

- Chanakya

Investors Looking for Products with following Features Excellent Returns that can beat Inflation Liquidity of the money Tax Efficient Returns Tax Deduction benefits under Section 80 C Professionally Managed Transparent Easily Understood Looking for products which help in Wealth Creation in long term Low Cost
Prosperity will leave those who are satisfied with the wealth they have - Chanakya

The world does not even respect gods without wealth

- Chanakya

PROFILE OF RESPONDENTS
Mutua l Fund Adviso r 6%

CLIENTS RELATIONSHIP
Less than 200 15%

Broker 21%

Insura nce Adviso Charte d r 52% Accou ntant 4%

Wealth Adviso rs 12%


Tax Planne r 5%

800 and above 33% 600 to 800 21%

200 to 400 13%

400 to 600 18%

Wealth on her own accord seeks as home a man of mettle, brave, prompt and expedient, firm in friendships and unfazed by misfortune - Panchtantra

The world does not even respect gods without wealth

- Chanakya

EXPERIENCE
1 year to 3 years 13% 3 years to 5 years 10% 5 years to 7 years 30%

MONTHLY INCOME

More than 7 years 47%

72 33 20

25

Rs. Rs. Rs. More 10000 to 20000 to 30000 to than Rs. Rs. Rs. Rs. 40000 20000 30000 40000

Nothing in this world there is that wealth cannot accomplish, So let the sole aim of men be, making money - Panchtantra

The world does not even respect gods without wealth


INVESTMENT OBJECTIVES BY CLIENTS Secure Future of Depend ents, 39 Capital Appreci ation, 56 Reason able Return with Safety, 86 68 59 22 26 13

- Chanakya
PRODUCTS PREFERED BY CLIENTS 93 72 52 18 21

Others, 41

High Return, 31 Tax Saving Benefit, 37

Retirem ent Benefit, 51

Savings A/c Post-office NSC Share/Debent Fix Deposit Public Statutory Insurance Gold/Silver Mutual Fund Real Estates

Wealth accumulated through illegal or unethical means lasts for ten years. In the eleventh year it is completely lost - Chanakya

The world does not even respect gods without wealth

- Chanakya
U/S 80 C AVENUES USE BY FIA TO CREATE 80 72 WEALTH 70 56 60 50 40 30 22 20 10 0 0 0 0 0

PRODUCTS SUGGESTED BY FIA TO CLIENTS


90 80 70 60 50 40 30 20 10 0

77

33

12 3

Life Pension Statutor Public NSC ULIPs ELSS

23

Virtues and pleasures are depend on wealth. Wealth enriches and enhances life - Chanakya

The world does not even respect gods without wealth

- Chanakya

FACTORS CONSIDERED BY FINANCIAL ADVISORS


80 70 60 50 40 30 20 10 0

FACTORS CONSIDERED BY CLIENTS


70 47

51
41

46

73 53

56

42

42

11

The world does not even respect gods without wealth


ANOVA for Monthly Income and Years of Experience: Ho: variation in mean Monthly Income of Financial Advisors is not due to years of experience in financial advisory business

- Chanakya

H1: variation in mean Monthly Income of Financial Advisors is due to years of experience in financial advisory business Table value of F for V1 = 3 & V2 = 9 at 5% significant level is 3.86

As F calculated(2.01) is < the F table value, Ho is accepted.


There are some other factors also influence Monthly Income of financial advisors. Number of clients Invested investment volume

Consulting charge / Commission / Brokerage / Premium


Location i.e. Gandhinagar FIA have more income as compare to Mansa or Dahegam. The prey of animals lives on land and of birds in the sky, Fish fall prey in water, the rich are preyed on everywhere - The Hitopadesa

The world does not even respect gods without wealth

- Chanakya

Rank Correlation between Risk and Return for various financial products: R is 0.943 so it indicates highly positive correlation between Risk and Return for various financial products. Two way correlation between monthly income and years of experience in financial advisory business

There is a perfect or highly positive correlation between monthly income of financial advisors and years of experience in industry
Correlation and ANOVA between monthly income and years of experience in financial advisory business give opposite results ANOVA gives more reliable result because experience is not only one factor which affects monthly income.
Where does it come? Where does it go? It is impossible to figure our wealths path - Chanakya

The world does not even respect gods without wealth

- Chanakya

Chi-square test for various financial products


PRODUCTS X2 Calculated X2 Table value Accept

Real Estates
Mutual Funds PMS Fix Deposits

30.937
47.12 25.48 59.03

9.488
3.84 3.84 3.84

H1
H1 H1 H1

There is significant difference between Risk and Return for all four products Risk and Return for all produsts are dependent
If you are satisfied with whatever wealth you have and consider it as large as a treasure trove, Then you already have all you deserve and will get no more - Hitopdesa

The world does not even respect gods without wealth

- Chanakya

SWOT Analysis of NJ Fundz Network


Strength: Large Networks Strong brand name NJ India Invest All product under one roof Many years experience in mutual fund market. Dedicated and responsive workforce/staff. Strong Research Support
Opportunities: Scope for opening of new branches in country Increasing income of people will leads to increase in investment To tap the untapped market. To spared awareness of its brand name. To increase markets share

Weakness: Less awareness about mutual fund in market Low advertising Focus only on urban segments Sales promotion is not effective

Threats: Market uncertainty Consumers do not invest easily Consumer perception about NJ Funds is purely private company. Competitor develops a superior portal

The world does not even respect gods without wealth

- Chanakya

More than half of respondents suggest insurance to their clients Portfolio Management Service is best option because it has relatively less risk and high return. Safety-low risk is considered by clients at time of investments There are at some extent positive correlation between years of experience and monthly income of financial advisors. Most of respondents mean half consider Income as important factor to give advice to client
Wealth requires pain to acquire and in troubled times, anxiety, In affluence, it causes some strange delusion, can it really be a cause for comfort? - The Hitopadesa

The world does not even respect gods without wealth


They have already good clients base

- Chanakya

For Insurance Agents recommendation is to become Mutual Fund Advisor because they have great earning opportunity without much more efforts, They had secured life of their clients to through insurance, now give Mutual Fund to increase their wealth. Now-a-days people are seeking to take calculated risk and earn more with systematically. For short term investment bonds, debts, etc. and for long term investment stock, SIP (Mutual Funds), Gold, Real Estates etc. Prefer Companys Fix deposits for investment as compare to Bank Fix Deposits and Post-Saving.

In financial advisory business at initial stage you have to sustain only because,
At this stage you have less clients Public are not aware of you You have less contacts with your respective suppliers

So, monthly income will be definitely low up to 5 years.

The world does not even respect gods without wealth

- Chanakya

Smart work is appreciated and not the hard work


Maintaining relation with customer Good and satisfactory service to the investors Practical aspect of learning Team work and cooperation with subordinate
To succeed, men need wealth. Elephants are needed to capture more wild elephants - Chanakya

The world does not even respect gods without wealth

The people are basically of conservative nature and hence are very precautious about their hard earned money. Hence they would like to play it safe when it comes to spending of their money. Security and returns are the two main reasons that are taken into consideration before making an investment.

- Chanakya

Bank fixed deposits and post office savings seem to be most preferred one among the investors because it is considered to be the most secured one. Shares and mutual funds were considered to be very risky and hence that seemed to be the last choice of the general mass. Amongst mutual fund and shares people preferred shares because the possessed complete knowledge about the shares but had very little knowledge about the mutual fund industry.
Where does it come? Where does it go? It is impossible to figure our wealths path - Chanakya

The world does not even respect gods without wealth


Book References

- Chanakya

Bhalia V.K., 2004, Investment Manafement Eleventh Edition ,New Delhi, Sultan chand & company ltd. Prasanna Chandra, 2009, Investment Analysis and Portfolio Management, Third Edition, New Delhi, Tata McGraw-Hill Publishing company ltd. H.R.Ramanath, Research Methodology and Operation Research, Bombay/New Delhi/Ahmedabad, Himalaya Publishing House

Websites References

http://www.pwc.com/gx/en/financial-services/pdf/pwc_ma_india.pdf www.nseindia.com www.moneycontrol.com www.njfundz.com http://www.itrust.in/ http://www.itrust.in/content/tax-planning/How-Can-I-Save-Taxes-This-Year-India http://www.itrust.in/content/mutual-funds/mutual-funds-process-of-investing http://www.itrust.in/content/mutual-funds/mutual-funds-and-taxes-in-india http://www.itrust.in/content/mutual-funds/mutual-funds-fivetips http://www.itrust.in/fixed-deposit.action http://www.wealthcareindia.com/fixed_deposit.htm http://faculty.ed.umuc.edu/.../A%20Chi%20Square%20Test%20for%20Goodness%20of%20Fit www.dpo.uab.edu/~guswatte/py214/lectures/ch14_factorialANOVA www.swlearning.com/finance/ehrhardt/focused/sg03 www.posterous.com/getfile/files.posterous.com/.../SWOT_Analysis www.altadynamics.com/.../Porter%205%20forces%20analysis

The world does not even respect gods without wealth

- Chanakya