1

NEW DELHI INSTITUTE OF MANAGEMENT

SUMMER TRAINING REPORT ON

MUTUAL FUND INDUSTRY

For
MASTER CAPITAL SERVICES LTD.
By
MOHIT CHAUHAN
393
In partial fulfillment for the award of
Post Graduate Diploma In Management
2013-15




2


New Delhi Institute of Management
50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062
E-mail : placement@ndimdelhi.org Website : www.ndimdelhi.org



SUMMER TRAINING REPORT ON

MUTUAL FUND INDUSTRY

For

MASTER CAPITAL SERVICES LTD.

Under the supervision
of

MR. AJAY PRADHAN

Submitted By- Submitted to-
MOHIT CHAUHAN DR. ARATI BASU
(393)
3



CERTIFICATE

4



ACKNOWLEDGEMENT



I take the opportunity to express my gratitude to all of them who in some or the
other way helped me to accomplish this project. I wish to express my indebted
gratitude and special thanks to Mr. Ajay Pradhan, Senior Manager, Master Trust,
who in spite of being extraordinarily busy with his duties, took time out to hear,
guide and keep me on the correct path and allowing me to carry out my industrial
project work at their esteemed organization and extending during the training.
I express my deepest thanks to Prof. Dr. Arati Basu for her guidance and support.
She supported me by showing different method of information collection about the
company. She helped me all the time and gave right direction toward completion
of the project.






Mohit Chauhan




5



DECLARATION


I MOHIT CHAUHAN student of New Delhi Institute of Management Batch
(2013-2015) declares that every part of the Project Report MUTUAL FUND
INDUSTRY submitted by me is original.
I was in regular contact with my faculty guide and contacted her once in every
week for discussing the project.


Date of project submission:______________


Faculty Mentors Comments :
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________







6


Table of Contents
S.No. Topic Page No.
1. Executive Summary 1
2. Industry Overview 3
3. Company Background 17
4. Company Executives 19
5. Company Locations 21
6. Business Partners 22
7. Company Results 23
8. Products and Services 27
9. On the Job Training- Objectives 33
10. Details of Work Assigned 34
11. Week Wise Descriptions 35
12. Key Observations & Findings 38
13. Conclusion 39
14. Limitations 40
15. Recommendations/ Suggestions 41
16. Major Learning 42
17. References 43



7


Executive Summary

The basic objective of the training was to convince people to buy mutual fund
schemes and also to bring the contacts of people interested in mutual fund
investments to the industry mentor. To attain deep knowledge of the concept of
mutual funds and get learning of various major players in the Indian mutual fund
industry and to learn about the working of a company.
This on-the-job training was basically based on convincing people for investment
in mutual funds. For this a telephone set was provided to me to make calls on
contact lists given by the company. Various study materials like scheme
information booklet were provided to me to gain knowledge of various mutual
fund schemes. I was also assigned one computer system to compile the status of
calling activity in Excel format and to mail the same to the industry mentor at the
end of each day and also to visit different websites related to mutual funds to gain
knowledge and to prepare presentation on comparison of different mutual fund
schemes to email that to interested people.
A majority of people are not aware of the mutual fund investments whereas many
feel hesitated in investing in mutual funds. Mutual Fund investment is most
popular in Mumbai city of country India. Corporate has a major share in Liquid/
Money market schemes whereas retailers were more tilted towards balanced and
equity schemes. Debt oriented schemes has the major share in the total AUM by
product category. HDFC Mutual Fund is the biggest mutual fund in India.
8

The main constraint faced was the low awareness among people regarding the
mutual funds investments. Peoples long build perception of losing money in share
market. Also the contacts provided were of trading customers of Master Capital
who were generally not interested in mutual funds. The people whose contacts
were provided were clients of the employees of Master Capital who had target of
selling mutual fund schemes so the clients were more interested in buying schemes
through their trading partner with whom they were interacting for a long time.
The project was relevant as it gave me understanding of mutual funds and helped
me understanding different financial concepts like AUM and NAV etc. I was able
to sell four mutual fund schemes and was able to get the contacts of many people
interested in mutual funds through cold call.










9


Industry Overview

The Indian mutual fund industry is one of the fastest growing and most competitive
segments of the financial sector. As of June 2014, the total AUM stood at Rs. 9.87
trillion. The Top 5 cities contributing to total AUM as on 31st march 2013 as per
AMFI were Mumbai(42.04%), Delhi(15.32%), Bangalore(5.87%), Kolkata(5.07%)
and Chennai(4.62%). Indian mutual fund industry has evolved over the years. It
has grown at a Compound Annual Growth Rate (CAGR) of 15 per cent from FY07
to FY13. Assets Under Management (AUM) as a per cent of GDP for India is
about 5 to 6 per cent, significantly lower than some other emerging economies, for
example, 40 per cent for Brazil and around 33 per cent for South Africa. This
indicates significant headroom for growth. However, the industry growth will
continue to be characterized by external factors such as volatility and performance
of the capital markets, and macro-economic drivers such as GDP growth, inflation
and interest rates. Industry recorded an AUM of INR 8,800 billion. The highest
AUM was recorded in August 2013 as INR 9,580 billion. Though on the whole,
the mutual fund industry witnessed a decline in AUM in December 2013, the
AUM of equity funds increased by 4.5 percent on account of rising stock prices.
The Indian mutual fund industry has shown relatively slow growth in the period
FY 10-13 growing at a CAGR of approximately 3.2 per cent. Average (AUM)
stood at INR 8,140 billion as of September 2013. However, AUM increased to
INR 8,800 billion as of December 2013. There are total of 46 Asset Management
Companies registered with SEBI in India. Despite the relatively low penetration of
mutual

10


funds in India, the market is highly concentrated. Though, there are 44 AMCs
operating in the sector, approximately 80 per cent of the AUM is concentrated with
8 of the leading players in the market. There have been recent instances of
consolidation in the market and market concentration is expected to remain in the
near-term.

11



History of Mutual Funds in India

The mutual fund industry in India started in 1963 with the formation of Unit Trust
of India, at the initiative of the Government of India and Reserve Bank of India.
The history of mutual funds in India can be broadly divided into four distinct
phases
1. First Phase - 1964-1987
Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was
set up by the Reserve Bank of India and functioned under the Regulatory and
administrative control of the Reserve Bank of India. The first scheme launched by
UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs. 6,700 crores of assets
under management.
2. Second Phase - 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non-UTI, public sector mutual funds set up by public -
sector banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC).
SBI Mutual Fund was the first non-UTI Mutual Fund established in June 1987
followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund
(Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of
Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while
GIC had set up its mutual fund in December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs.
47,004 crores.
3. Third Phase - 1993-2003 (Entry of Private Sector Funds)
Year 1993 marked as the entry of private players in the Indian mutual fund
industry. The erstwhile Kothari Pioneer (now merged with Franklin Templeton)
was the first private sector mutual fund registered in July 1993.
The industry now functions under the SEBI (Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual
funds setting up funds in India and also the industry has witnessed several mergers
and acquisitions. As at the end of January 2003, there were 33 mutual funds with
12

total assets under measurement of Rs. 1,21,805 crores. The Unit Trust of India with
Rs. 44,541 crores of assets under management was way ahead of other mutual
funds.


4. Fourth Phase - since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI
was bifurcated into two separate entities. One is the Specified Undertaking of the
Unit Trust of India with assets under management of Rs. 29,835 crores as at the
end of January 2003, representing broadly, the assets of US 64 scheme, assured
return and certain other schemes. The Specified Undertaking of Unit Trust of
India, functioning under an administrator and under the rules framed by
Government of India and does not come under the purview of the Mutual Fund
Regulations.
The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs. 76,000
crores of assets under management and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking
place among different private sector funds, the mutual fund industry has entered its
current phase of consolidation and growth.








13




Growth in AUM


Source: The Association of Mutual Funds in India (AMFI); Data as of September 2013





7,486
7,037
6,709
8,232
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
FY10 FY11 FY12 FY13
I
N
R

b
n

YEARS

14




Major Players and their shares


Source: The Association of Mutual Funds in India (AMFI); Data as of September-2013




HDFC Mutual fund
13%
Reliance Mutual fund
12%
ICICI Mutual fund
10%
Birla Sun Life Mutual
fund
9%
UTI Mutual fund
9%
SBI Mutual fund
7%
Franklin Templeton
Mutual fund
5%
IDFC Mutual fund
5%
Kotak Mahindra
Mutual Fund
4%
DSP Blackrock
Mutual fund
4%
Axis Mutual fund
2%
Others
20%
15



Market Share: Folio-Wise


Source: The Association of Mutual Funds in India (AMFI); Data as of March 2014







9557700
5463367
4508477
4117882
2892620
2677954
2019704
0
2000000
4000000
6000000
8000000
10000000
12000000
UTI Reliance HDFC SBI DSP
Blackrock
ICICI Birla Sun
Life
N
u
m
b
e
r

o
f

F
o
l
i
o
s

Mutual Fund Companies
16



AUM Composition by Product Category


Source: The Association of Mutual Funds in India (AMFI); Data as of September 2013







13%
14% 13%
1% 1%
1%
50% 50% 57%
33% 31% 25%
3%
3%
2%
1% 2% 2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY11 FY12 FY13
P
e
r
c
e
n
t
a
g
e

Financial Year
Gold ETFs
Balanced
Equity Oriented
Debt Oriented
Gilt
Liquid/ Money Market
17



AUM Composition by Geography


Source: The Association of Mutual Funds in India (AMFI); Data as of 31-Mar-2014









Mumbai
42.04%
Delhi
15.32%
Banagalore
5.87%
Kolkata
5.07%
Chennai
4.62%
Others
27.08%
Percentage of AUM
18


Category-Wise AUM




Corporates
81.30%
Banks/FIs
6.33%
FIIs
0.66%
High Networth
Individuals
9.98%
Retails
1.73%
Liquid/ Money Market Schemes

Corporates
58.43%
Banks/FIs
0.68%
FIIs
0.12%
High Networth
Individuals
35.26%
Retails
5.50%
Gilt Schemes
19







Corporates
57.12%
Banks/FIs
0.92%
FIIs
0.58%
High Networth
Individuals
34.72%
Retails
6.66%
Debt Oriented Schemes
Corporates
9.93%
Banks/FIs
0.65%
FIIs
1.64%
High Networth
Individuals
21.26%
Retails
66.51%
Equity Oriented Schemes
20







Corporates
10.99%
Banks/FIs
0.18%
FIIs
0.02%
High Networth
Individuals
32.99%
Retails
55.83%
Balanced Schemes
Corporates
48.65%
Banks/FIs
0.05%
FIIs
0.04%
High Networth
Individuals
15.91%
Retails
35.35%
Gold ETF Schemes
21






Source: The Association of Mutual Funds in India (AMFI); Data as of 31-Mar-2014
Corporates
23.74%
Banks/FIs
39.92%
FIIs
11.98%
High Networth
Individuals
13.54%
Retails
10.81%
ETFs(Other than Gold)
Corporates
19.07%
Banks/FIs
0.02%
High Networth
Individuals
56.80%
Retails
24.11%
Fund Of Funds Investing Overseas
22



Union Budget 2014- 2015- Impact on Mutual funds

1. In order to remove tax arbitrage, rate of tax on long term capital gains
increased from 10 percent to 20 percent on transfer of units of Debt Mutual
Funds, other than equity oriented funds.

2. Further, period of holding in respect of such units increased from 12 months
to 36 months for this purpose. Longterm capital gain is applicable if the
units of Debt funds are kept for more than 3 years. It will impact the
investors who have investment horizon between one to three years. It has
reduced the tax arbitrage between Fixed Deposit and Debt mutual funds
making FMPs less attractive.

3. Longterm capital gain is chargeable to tax at the rate of 20.6% with
indexation benefit. (10.3% without indexation is removed). Now investors
will offer longterm capital gain tax after three years at the rate of 20% with
indexation. (10% with indexation is removed). So debt mutual funds
including FMPs with the time horizon or maturity period below three years
become unattractive.



23



About the Organization

1985: Company was incorporated by the name of Arora Financial
Consultants Limited
1993: Acquired status of SEBI accredited Category-I Merchant Bankers
under the name Master Trust Limited
1994: Master Capital Services Ltd. acquired membership of NSE
1995: Master Trust Ltd. came out with an IPO
1997: Became RBI approved Full Fledged Money Changers.
1999: Launched Depository Services as a Depository participant of NSDL.
2001: Launched Depository Services as depository participant of CDSL
2002: Entered into insurance business as advisor for Life & General
Insurance
2004: Became member of NCDEX and MCX
Became Insurance Broker under the name of
M/s Master Insurance Brokers
2005: Acquired the membership of Bombay Stock Exchange Limited
Commenced Internet Trading
Became SEBI Registered Portfolio Manager
2007: Set up regional offices at Baroda, Kolkata, Hyderabad, Allahabad,
Hissar, Bhubneshwar & Ahmedabad
2008: Introduced Currency Derivatives trading through MCX-SX & NSE

24



2009: Established an arbitrage desk
Implemented Master Swift
Established CRM
2010: Trading turnover peaks US$1billion/day of group companies
Became members of NSEL and ACE
Arbitrage desk activated in spot commodity
Rebranding exercise of retail services
2011: Launched its flagship PMS product named Master Quant 10
Started algorithmic trading solutions to its trading clients named
Master Pulse/ Master Trader
Opened branches in Jaipur, Patna and Mumbai
2012: Launched Integrated Amibroker and Metatrader charting platform for
clients
Declared India's best Derivatives Broker by BSE
Crossed 10,000 clients in currency segment on NSE
Acquired membership of MCX-SX India's new stock exchange in both
equity as well as derivatives segment
Activated SLBM segment on NSE as a new asset class for customers.

The Company Master Capital Services (P) Ltd. is a subsidiary of Master Trust to
carry out the activities of Stock broking and other financial services. This company
was incorporated on 25.04.1994 and had a paid up capital of Rs.101.40 Lakh as on
31.08.94.

25


Company Executives

Board of Directors

1. Mr. Harjeet Singh Arora (Founder)- Managing Director
2. Mr. R.K. Singhania (Co Promoter)
3. Mr. Pawan Chhabra
4. Mr. G.S. Chawla
5. Mr. Harinder Singh
6. Mr. Puneet Singhania
7. Mr. Jashan Arora

Company Secretary - Mr. Honey Ahuja

Registrar and Share Transfer Agent - Skyline Financial Services (P) Ltd.








26


Promoters

Name Shareholding
Prime Industries Ltd.

5.46%
Harjeet Singh Arora


12.93%
R.K. Singhania 23.72%
Harneesh Kaur Arora

10.34%
Jashanjyot Arora

5.01%
Palka Arora

2.3%
Puneet Singhania


0.94%
Chirag Singhania

0.92%
Parveen Singhania

5.02%
Total 66.64%

27



Company Locations

Head Office Ludhiana
Zonal Offices New Delhi
Mumbai
Chandigarh

Regional Offices Mumbai
Ahmedabad
Allahabad
Bhuvaneshwar
Indore
Jaipur
Hyderabad
Luckhnow
Kolkata







28


Business Partners

1. Quantitative Learning Private Limited
Mastertrust & Quantitative Learning Pvt. Ltd. provide a scholarship which waives
up to 50% of the course fees in the form of brokerage credit for students
successfully completing the course and trading with Master Capital Services
Limited.
QI is the pioneer institution in providing dedicated algorithmic trading training
program in Asia. Course Executive Program in Algorithmic Trading, is a
practically oriented program with knowledge imparted from industry
experts/professionals.

2. Global Financial Datafeeds
Master Trust - one of the leading end-to-end brokerage solutions company, has
joined hands with GFDL - Authorized Realtime data vendor of Indian Exchanges,
to give Indian Stock/Commodity Market Traders real time data of Indian
Exchanges.
GFDL is Authorized Realtime Data Vendor of NSE and MCX. It disseminates
authentic, accurate & affordable real time data with low latency which integrates
with multiple charting platforms (AmiBroker, MetaStock Professional, Advanced
Get, NinjaTrader, Ensign, Elwave, SierraChart, BullsEyeBroker, MetaTrader).
GFDL is a sister concern of tradinganalysis.co.in the authorized and only
distributor of AmiBroker for India.
29

Company Results


Net worth










3488.35
4868.7
6858.37
8140.89
10461.03
14244.49
15076.45
0
2000
4000
6000
8000
10000
12000
14000
16000
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
N
e
t

W
o
r
t
h

i
n

L
a
c
s

Year
30




Turnover










46.13
61.42
77.26
92.84
92.65
0
10
20
30
40
50
60
70
80
90
100
Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
T
u
r
n
o
v
e
r

i
n

R
s

C
r
o
r
e
s

Year
31




Net Profit










8.79
13.27 13.06
11.66
10.03
0
2
4
6
8
10
12
14
Mar '09 Mar '10 Mar '11 Mar '12 Mar '13
N
e
t

P
r
o
f
i
t

i
n

R
s

C
r
o
r
e
s

Year
32




Earnings Per share










2.18
1.66
2.47
2.19
2.27
0
0.5
1
1.5
2
2.5
3
2009 2010 2011 2012 2013
E
a
r
n
i
n
g
s

P
e
r

S
h
a
r
e
(
E
P
S
)

Year
33


Products

1. Equity Investments
Master Trust Group offers broker assisted trade execution and automated
online investing on all the stocks in BSE and NSE. Company provides
valuable advice with the help of seasoned investment advisors to help
customers invest in stocks.
Master Trust provide variety of options to trade in stocks:
Delivery Trades: Through this the customers can attain the stock for long
term by Taking delivery he can wait for the gains.
Intra-day trades: Company provides customers with facility of trading up to
8 times of their trade deposits for Intra-day i.e. for buying and selling on
the same day.
Loan Against Shares: Company facilitates customers by offering you LAS at
nominal interest rates through Master Trust Limited. Customers can take
delivery in the stock and pay the company only a part of the purchase
value.
MTF: Popularly known as Margin Trade Finance. Allows customers to buy
stocks for the T+5 settlement cycle by paying only a part of the purchase
consideration. Good for swing trade positions for an expert investor.
Derivatives Trading: Master Trust provides a variety of Futures and Options
strategies and offer seamless trading in Futures and Options on NSE.
34


2. IPO
Mastertrust provides complete transaction support to investors for
investments in primary markets through IPO's. The advisory team offers
advice to investors to invest only in fundamentally sound IPOs.
3. Mutual Fund
The Company Master Trust offer Mutual fund investment across more
than 1000 schemes and more than 22 fund houses out of total 44 Asset
Management Companies through dedicated advisors. It also offers
seamless investing experience through online MF investment platform.
4. Commodity Futures
Master Trust offers precious metal futures through any of its trading
platforms and investing in these commodities without bothering
customers for safety of their precious metals. Customers can trade in
almost all metals, agri and non-agri commodities seamlessly.
5. Depository Particpants
Master Capital Services Ltd. boasts of an ever-growing customer base of
over 95,000 account holders under its retail brand - Mastertrust. It is
depository participants with the National Securities Depositories Limited
(NSDL) and Central Depository Services Limited (CDSL) for trading and
settlement of dematerialized shares. It performs clearing services for all
securities transactions through their accounts. It offer depository services
35

to create a seamless transaction platform execute trades and settle these
transactions.
6. DEMAT services
In their continuous endeavor to offer best of the class services to the
customers it offers the following features:
Speed & Easiest: Transfer of securities 24 hours a day, 7 days a week
through Internet
Consolidation Demat Account: Dematerialize customers physical shares
in various holding patterns and consolidate all such scattered holdings
into their primary demat account at reduced cost.
Corporate Benefit Tracking: Provide features to track dividend, interest,
bonus through customers account statement.
Mobile Alerts: SMS alerts service for customers for all debits/credits
Dedicated customer care: Specially trained Executives to handle all
queries.

7. Insurance
Master Trust company provides a wide range of both life and non life
insurance products to choose from hence make itself one stop shop for its
valuable customers.
36

Some of the insurance products are:-
a. General Insurance Products
Mediclaim Insurance
Householder Policy
Personal Accident Policy
Motor Insurance
Overseas Mediclaim Policy
Shop Keeper Insurance Policy
Fire & Loss Of Profit Insurance
Public Liability Insurance
Group Mediclaim Insurance





b. Life Insurance Products
Unit Linked Insurance Plans
Endowment Plans
Term Plans
Money Back
Child Plans
Retirement Solutions



37


Other services
Tools and Calculators
Stock Screeners: The company provides information of nearly 5000 companies at a
click of a mouse button to analyze the company across various parameters like
quarterly trends and annual trends in sales, profits, ROE,EPS, P/E, Market Cap etc.
Customers can also do an in-depth analysis of the Balance Sheet.

IPO Tracker: It provides the facility of Tracking latest IPOs and their performance
based on current prices with an exchange-wise view.

Mutual Fund Screeners: The customers can look for top funds based on category
performance and category rankings. Also can analyze each funds performance
map and even compare their performance and portfolio with other funds easily.

Charting: Provides easy-to-use interface flexible charting that let customer zoom
from long- to short-term views, add technical indicators, compare to indices, draw
trend lines, make candlesticks or bar charts.

Retirement Planning : Provides a calculator to understand how customers can
maintain their current lifestyle taking into consideration the inflation rate and the
average life expectancy of an Indian which is around 78 years.

Education Calculator: The education calculator lets customers calculate the current
saving required by them in order to meet their childs future expenses at college
38

taking the current inflation rate and accordingly calculate the savings required
today.

News & Market Commentary: It provides up to the minute news across various
categories including company, industry, commodity, market , IPO, Mutual fund
news from an Indian perspective. Customers can browse through breaking news
and stories to find out the reason behind the big movers.

Forex Services
With its dedicated Forex bureaus it offers travel related foreign exchange
services from special counters even beyond banking hours, it offer one of the
largest bouquet of FX Services at very competitive prices. These forex bureau
also offer door delivery of foreign exchange to corporate and other specified
customers.

Services Offered

Retail Foreign Exchange
Sale & Purchase of Currency Notes & Travellers Cheques
Encashment of Travellers Cheques
Western Union Money Transfer




39



Objectives of the Training/ Internship

The basic objective of the training was to convince people to buy mutual
fund schemes.
To bring the contacts of people interested in mutual fund investments to the
industry mentor.
To attain deep knowledge of the concept of mutual funds and get learning of
various major players in the Indian mutual fund industry.
To learn about the working of a company.










40



Details of Work Assigned

To make calls to people to aware them about the different mutual fund
schemes and to convince them to buy through the company Master Capital.
To make cold call to people inside the bank premises to aware them about
mutual funds and to get the contacts of interested people.
To compile the calling data in proper excel format with status of each call at
the end of the day and send it to the industry mentor.
To go deeply through the different websites related to mutual funds
investments like AMFI, SEBI and also websites and scheme information
booklets of various players in mutual fund industry.
To visit the premises of people interested in mutual fund schemes and to
personally explain them various benefits of investing in mutual funds and
furnish all documents of people interested in mutual fund investments.






41


Week- Wise Description

Week 1:
Read various booklets provided by the industry mentor to gain the
knowledge of mutual funds concepts like NAV, AUM etc.
Go through various websites related to mutual funds and websites of major
players to gain basic understanding of the process of investment and to learn
about the elements that influence an investment decision like CAGR,
Holdings, Benchmark Index etc.
Go through various scheme information booklets and to make a presentation
including information of schemes of big mutual fund players in categories
like Wealth Creation Solutions, Tax Saving Solutions, Regular Income
Solutions, Saving Solutions.

Week 2:
One day training under Mr. Vikram Chauhan at the Birla Sun life Mutual
Funds Company located at Barakhamba Road covering major aspects like
Basic mutual fund concepts, Schemes information, Approach a customer,
Form Filling, Documentation Requirement etc.
Cold call inside the premises of nearby banks to make them aware of mutual
funds investment and to get the contact numbers of interested people and of
them one person was converted into customer.
42


Week 3:
Transferred to Rohini branch. Got the list of contact numbers of trading
customers of Master Capital.
Almost 118 calls to people were made all over the week to convince them to
buy mutual fund schemes.
Visited premises of people to explain them personally and able to
successfully sell one scheme with monthly SIP amount of 1500 rupees in
Birla Sun Life Infrastructure Fund (Growth).
Compiled the status of each call in proper excel format and send to industry
mentor at end of each day.

Week 4:
Continued with the calling task and over 150 calls were made during the
whole fourth week.
One day training at Birla Sun Life Mutual Fund Company regarding Tax
Saving schemes of BSLAMC.
Made visit to customers premises and was able to get two more interested
customers.




43


Week 5:
Mailed the detailed presentation to interested customers regarding
comparison chart of one scheme with other and also latest fact sheets of
various major schemes.
Made calls to almost 150 people in the fifth week of my training.

Week 6:
Continued with the calling work and called nearly 170 people in the last
week.
Visited customer premises for scheme documentation work.










44



Key Observations and Findings

A majority of people are not aware of the mutual funds and dont know how
it works.
Many feel hesitated in investing in mutual funds as they believe it is too
risky.
Most of the people dont know how to invest in mutual funds.
Mutual Fund investment is most popular in Mumbai city of country India.
Corporate has a major share in Liquid/ Money market schemes whereas
retailers were more tilted towards balanced and equity schemes.
Debt oriented schemes has the major share in the total AUM by product
category.
HDFC Mutual Fund is the biggest mutual fund in India.







45



Conclusions

Interacted with people in order to aware them about mutual fund investment
and persuading them to invest through the company Master Capital.
Made cold call to people inside the nearby banks to generate leads.
Nearly 550-600 people were phoned to persuade them to invest in mutual
funds of various big players of mutual fund industry.
Mailed the Factsheets and comparison charts of various schemes to the
interested persons.










46



Limitations/ Constrained Faced

The main constraint faced was the low awareness among people regarding
the mutual funds investments.
Peoples long build perception of losing money in share market.
The contacts provided were of trading customers of Master Capital who
were generally not interested in mutual funds.
The people whose contacts were provided were clients of the employees of
Master Capital who had target of selling mutual fund schemes so the clients
were more interested in buying schemes through their trading partner with
whom they were interacting for a long time.








47



Recommendations and Suggestions

As most of the people dont know how to invest in mutual funds, the
company can conduct awareness programs in order to make people aware
regarding mutual fund investment.
The company should focus on selling the mutual fund schemes of other
Asset Manufacturing Companies also apart from selling Birla Sun life
Company schemes only so that it can offer wide range of schemes to its
customers.
The company should sell the mutual fund schemes according to the
preference of people by recommending schemes according to customers
needs and risk taking capacity and should not sell the schemes for their own
benefits.







48



Major Learning

Learned about the investment patterns of household i.e. what factors they
consider before investing their money.
Learned about the working of Depository Participants- how does buying and
selling takes place and mechanism of exchange of shares and money from
one party to another and also working of online trading account.
Got an immense understanding of practical implications of various
management theoretical concepts.
Learned about the formation and working of an Asset Management
Company (AMC), its operations etc.
Got a practical experience of professional conduct- how to present one in
front of customers and how to behave in an organization.
I learned how to approach a customer and how to come over with their
doubts by clarifying them.





49



References/ Bibliography

Gomez, Clifford. (2013). Financial Markets, Institutions and Financial
Services. Delhi: PHI Learning Pvt. Ltd.
https://www.amfiindia.com/research-information/mf-history
https://www.amfiindia.com/research-information/aum-data
www.mastertrust.com
www.wikipedia.org
www.crisil.com
www.moneycontrol.com