A

Summer Internship Project

On
“NEED OF FINANCIAL ADVISOR FOR MUTUAL FUND INVESTORS"

Submitted To:
S. K. School of Business Management,
Hemchandracharya North Gujarat University, Patan.

In the partial fulfillment of the

Requirement of the award for the Degree of
Master of Business Administration

Under the Guidance of:

Dr. N. H. Bhatt
Prof. & Head,
S. K. School of Business Management

Submitted By:
Name of Student: Bhatiya Ritu BharatKumar
Exam Seat No. 24

(July-2019)

i
 PREFACE

Experience is the best teacher the saying has played a guiding role in the preparation of the
project report. As a part of the curriculum, after the completion of the first year of MBA, the
students are required to work in an organization as a trainee and analyze its operations
through research based project. It allows students to have an exposure to the real business
world.

Management learning remains incomplete without an experience of corporate world. Thus,

theoretical knowledge is not enough for management students; practical study holds an
important place. So, the objective behind preparing this project report is to relate the
management theories taught in the classroom to their practical application.

In this project recruitment and selection is analyzed with the help of survey of employees
who work in organization. It is an image of deep practical studies to whatever observed and
analyzed in the organization.

My work in this project report is, therefore, a humble attempt. Best efforts have been made to
derive feasible conclusion towards the objectives of this project, yet there could be some
errors, I take the responsibility for such errors.

ii
 ACKNOWLEDGEMENT

Preparing a project of this nature is an important task and we are fortunate enough to get
support from a large numbers of persons to whom we shall always remain grateful. I thankful
to S. K. School of Business Management, Hemchandracharya North Gujarat University,
Patan for giving golden opportunity to MBA students for summer internship project report.

I would like to gratitude of “ADITYA BIRLA SUN LIFE MUTUAL FUND” for allowing
us to undertake this report. I take an opportunity to thanks gave us an opportunity to work.

I am also desirous of placing on records profound indebtedness to Dr. Nishith Bhatt,

professor & Head, S. K. School of Business Management, H.N.G.U., Patan, for the valuable
advice, guidance, precious time and support that he had offered.

I would like to show my greatest admiration to “ADITYA BIRLA SUN LIFE MUTUAL
FUND”, for allowing us to practice a project. I would like to show a feel of gratitude
towards. “Mr. SAVAN MEVADA Relationship Manager” for guiding me in throughout
the project, I would like to thank other staff members who rendered their help during the
period of my project work.

iii
 EXECUTIVE SUMMARY

This Project has been a great Learning Experience for me; at the same time it gave me
enough Scope to implement my Analytical Ability. This project as a whole can be divided
into Two Parts:

The First Part gives an insight about the mutual funds and its various aspects. It is purely
based on whatever I learned at Birla Sun Life Mutual Fund. One can have a brief knowledge
about mutual funds and all its basics through the project. Other than that the real servings
come when one moves ahead. Some of the most interesting questions regarding mutual funds
have been covered. Some of them are: why has it become one of the largest financial
intermediaries? How investors do chose between funds? Most popular stocks among fund
managers, most lucrative sectors for fund managers, a special report on Systematic
Investment Plan, does fund performance persists and the topping of all the servings in the
form of portfolio analysis tool and its application.

All the topics have been covered in a very systematic way. The language has been kept
simple so that even a layman could understand. All the data have been well analyzed with the
help of charts and graphs.

The second part consists of data and their analysis, collected through a survey done on 200
people. It covers the topic “need of financial advisors for mutual fund investors”. The data
collected has been well organized and presented. Hope the research findings and conclusions
will be of use. It has also covered why people don‟t want to go for financial advisors? The
advisors can take further steps to approach more and more people and indulge them for
taking their advices.

iv
 CANDIDATE’S STATEMENT

I Ritu Bharatkumar Bhatiya, hereby declare that the report for Summer
Internship Project entitled “NEED OF FINANCIAL ADVISOR FOR
MUTUAL FUND INVESTORS” is the outcome of original study undertaken
by me and it has not been submitted earlier to any other University or Institution
for the award of any Degree or Diploma.

Name Ritu B. Bhatiya Signature of Student

Exam Seat No. 24

Date:
Place:

v
 INSTITUTE CERTIFICATE

This is to certify that the contents of this report entitled “NEED OF

FINANCIAL ADVISOR FOR MUTUAL FUND INVESTORS” by Ritu
Bharatkumar Bhatiya submitted to S. K. School of Business Management for
the Award of Master of Business Administration (MBA Semester -III) who
carried out the research under my supervision. I also certify further, that to the
best of my knowledge the work reported herein does not form part of any other
project report or dissertation on the basis of which a degree or award was
conferred on an earlier occasion on this or any other candidate.

Dr. N. H. Bhatt
Prof. & Head,
S. K. School of Business Management.
Hemchandracharya North Gujarat University,
Patan.

Date :
Place

vi
TABLE OF CONTENT

1. Introduction of Mutual Fund……………………………………1

1.1. About A Financial Advisor……………………………………………….2
1.1.1. How it Works………………………………………………………..2
1.1.2. Why it Matters……………………………………………………….2
1.2. About Mutual Funds……………………………………………………...3
1.2.1. What is Mutual Funds………………………………………………3
1.2.2. The Mutual Fund Industry in India………………………………..4
1.2.3. Performance of Mutual Fund in India……………………………..4
1.2.4. Structure of Mutual Fund In India…………………………………

vii
viii
Table 1 .............................................................................................................................................................. 25
Table 2 .............................................................................................................................................................. 26
Table 3 .............................................................................................................................................................. 27
Table 4 .............................................................................................................................................................. 28
Table 5 .............................................................................................................................................................. 29
Table 6 .............................................................................................................................................................. 30
Table 7 .............................................................................................................................................................. 31
Table 8 .............................................................................................................................................................. 32
Table 9 .............................................................................................................................................................. 33
Table 10 ............................................................................................................................................................ 34
Table 11 ............................................................................................................................................................ 35
Table 12 ............................................................................................................................................................ 36
Table 13 ............................................................................................................................................................ 37
Table 14 ............................................................................................................................................................ 38

Figure 1 Mutual fund ..................................................................................................................................... 3

ix
Figure 2 Aditya birla group/sun life financial ...................................................................................... 9

Chart 1 .............................................................................................................................................................. 25
Chart 2 .............................................................................................................................................................. 26
Chart 3 .............................................................................................................................................................. 27
Chart 4 .............................................................................................................................................................. 28
Chart 5 .............................................................................................................................................................. 29
Chart 6 .............................................................................................................................................................. 30
Chart 7 .............................................................................................................................................................. 31
Chart 8 .............................................................................................................................................................. 32
Chart 9 .............................................................................................................................................................. 33
Chart 10............................................................................................................................................................ 34
Chart 11............................................................................................................................................................ 35
Chart 12............................................................................................................................................................ 36
Chart 13............................................................................................................................................................ 37
Chart 14............................................................................................................................................................ 38

x
xi
CHAPTER 1

INTRRODUCTION OF MUTUAL FUNDS

xii
1.1 ABOUT A FINANCIAL ADVISOR

Financial advisor is an Educated Investment Professional who helps people and businesses
set and meet Long-Term Financial Goals or Investment Consultant.

1.1.1 HOW IT WORKS

A financial advisor analyzes a client's current financial status and helps the client set
reasonable, achievable financial goals. He or she can address a broad array of questions
competently. Financial advisors also make investment recommendations, provide objective
advice and help clients weigh the financial consequences of life decisions. They also help
clients stay organized.

Financial advisors must have expertise in Tax Planning, Asset Allocation, Risk
Management, Retirement Planning and Estate Planning in order to help clients at all
stages of life and in a variety of circumstances. In some cases a client will let his or her
financial advisor act as that the client gives the financial advisor permission to make
decisions on the client's behalf without consulting the client for approval beforehand.
Financial advisors often either charge by the hour or they charge the client a percentage of the
assets under management.

1.1.2 WHY IT MATTERS

Financial advisors help millions of people get financially organized and help them make
educated life decisions. In most states, anyone can call himself a financial advisor because
there are few licensing requirements and little regulation. There are several credentials that
financial advisors can obtain, however, and the most common is the Certified Financial
Planner (CFP) designation. An advisor must pass the CFP test, have an appropriate level of
prior education, sign a code of ethics, and have several years of actual planning experience
before obtaining the right to use the CFP designation. CFPs must also obtain a certain number
of hours of continuing education every year to keep the designation.

Several organizations help people find qualified financial advisors, including the National
Association of Financial Advisors (NAPFA), the Financial Planning Association (FPA) and
the Certified Financial Planner Board of Standards.

1
1.2 ABOUT MUTUAL FUNDS

There are various investment avenues available to an investor such as real estate, bank
deposits, post office deposits, shares, debentures, bonds etc. A mutual fund is one more type
of Investment Avenue available to investors.

1.2.1 WHAT IS MUTUAL FUNDS

A Mutual Fund is a professionally managed type of collective investment scheme that pools
money from many investors and invests it in Stocks, Bonds, Short-Term Money Market
Instruments and Other Securities. Mutual funds have a Fund Manager who invests the
money on behalf of the investors by buying / selling stocks, bonds etc.

Investments in securities are spread across a wide cross section of industries and sectors and
thereby reduce the risk. Asset Management Companies (AMCs) normally come out with a
number of schemes with different investment objectives from time to time. A mutual fund is
required to be registered with the Securities and Exchange Board of India (SEBI), which
regulates securities markets before it can collect funds from the public.

The value of each unit of the mutual fund, known as the Net Asset Value (NAV), is mostly
calculated daily based on the total value of the fund divided by the number of shares
currently issued and outstanding.

NAV = Total value of the fund

Number of shares currently issued and outstanding

2
 Figure 1 Mutual fund

1.2.2 THE MUTUAL FUND INDUSTRY IN INDIA

The Mutual Fund Industry in India started in 1963 with the formation of Unit Trust of India
(UTI) at the initiative of the Reserve Bank of India (RBI) and the Government of India. The
objective then was to attract small investors and introduce them to market investments. Since
then, the history Of Mutual Funds in India can be broadly divided into Six Distinct Phases.

Phase I (1964-87): Growth of UTI

In 1963, UTI was established by an Act of Parliament. As it was the only entity offering
mutual funds in India, it had a monopoly. Operationally, UTI was set up by the Reserve Bank
of India (RBI), but was later delinked from the RBI. The first scheme, and for long one of the
largest launched by UTI, was Unit Scheme 1964.

Later in the 1970s and 80s, UTI started innovating and offering different schemes to suit the
needs of different classes of investors. Unit Linked Insurance Plan (ULIP) was launched in
1971. The first Indian offshore fund, India Fund was launched in August 1986. In absolute
terms, the investible funds corpus of UTI was about Rs 600 crores in 1984. By 1987-88, the
assets under management (AUM) of UTI had grown 10 times to Rs 6,700 crores.

Phase II (1987-93): Entry of Public Sector Funds

The year 1987 marked the entry of other public sector mutual funds. With the opening up of
the economy, many public sector banks and institutions were allowed to establish mutual
funds. The State Bank of India established the first non-UTI Mutual Fund, SBI Mutual Fund
in November 1987. This was followed by Canbank Mutual Fund, LIC Mutual Fund, Indian
Bank Mutual Fund, Bank of India Mutual Fund, GIC Mutual Fund and PNB Mutual Fund.

3
From 1987-88 to 1992-93, the AUM increased from Rs 6,700 crores to Rs 47,004 crores,
nearly seven times. During this period, investors showed a marked interest in mutual funds,
allocating a larger part of their savings to investments in the funds.

Phase III (1993-96): Emergence of Private Funds

A new era in the mutual fund industry began in 1993 with the permission granted for the
entry of private sector funds. This gave the Indian investors a broader choice of 'fund
families' and increasing competition to the existing public sector funds. Quite significantly
foreign fund management companies were also allowed to operate mutual funds, most of
them coming into India through their joint ventures with Indian promoters.

Phase IV (1996-99): Growth and SEBI Regulation

Since 1996, the mutual fund industry scaled newer heights in terms of mobilization of funds
and number of players. Deregulation and liberalization of the Indian economy had introduced
competition and provided impetus to the growth of the industry.

A comprehensive set of regulations for all mutual funds operating in India was introduced
with SEBI (Mutual Fund) Regulations, 1996. These regulations set uniform standards for all
funds. Erstwhile UTI voluntarily adopted SEBI guidelines for its new schemes. Similarly, the
budget of the Union government in 1999 took a big step in exempting all mutual fund
dividends from income tax in the hands of the investors. During this phase, both SEBI and
Association of Mutual Funds of India (AMFI) launched Investor Awareness Programmers
aimed at educating the investors about investing through MFs.

Phase V (1999-2004): Emergence of a Large and Uniform Industry

The year 1999 marked the beginning of a new phase in the history of the mutual fund
industry in India, a phase of significant growth in terms of both amount mobilized from
investors and assets under management. In February 2003, the UTI Act was repealed. UTI no
longer has a special legal status as a trust established by an act of Parliament. Instead it has
adopted the same structure as any other fund in India - a trust and an AMC.

UTI Mutual Fund is the present name of the erstwhile Unit Trust of India (UTI). While UTI
functioned under a separate law of the Indian Parliament earlier, UTI Mutual Fund is now
under the SEBI's (Mutual Funds) Regulations, 1996 like all other mutual funds in India.

Phase VI (From 2004 Onwards): Consolidation and Growth

4
The industry has lately witnessed a spate of mergers and acquisitions, most recent ones being
the acquisition of schemes of Allianz Mutual Fund by Birla Sun Life, PNB Mutual Fund by
Principal, among others. At the same time, more international players continue to enter India
including Fidelity, one of the largest funds in the world.

1.2.3 PERFORMANCE OF MUTUAL FUND IN INDIA

Let us start the discussion of the performance of mutual funds in India from the concept of
mutual fund took Birth in India. The year was 1963, Unit Trust of India invited investors
or rather to those who believed in savings, to park their money in UTI mutual fund. And
their idea of this investment was good.

For 30 years it goaled without a single second player. Though the 1988 year saw some new
mutual fund companies, but UTI remained in a Monopoly Position. The performance of
mutual funds in India in the Initial Phase was not even closer to Satisfactory Level. People
rarely understood, and of course investing was out of question. But yes, some 24 million
shareholders were accustomed with guaranteed high returns by the beginning of
liberalization of the industry in 1992. This good record of UTI became marketing tool for
new entrants. The expectations of investors touched the sky in profitability factor. However,
people were miles away from the preparedness of risks factor after the Liberalization.

The Assets under Management of UTI was Rs. 67bn. by the end of 1987. Let me
concentrate about the performance of mutual funds in India through figures. From Rs. 67bn.
the Assets under Management rose to Rs. 470 bn. in March 1993 and the figure had a three
times higher performance by April 2004. It rose as high as Rs. 1,540bn.
The Net Asset Value (NAV) of mutual funds in India declined when stock prices started
falling in the year 1992. Those days, the market regulations did not allow Portfolio Shifts
into alternative investments. There were rather no choices apart from holding the cash or to
further continue investing in shares. One more thing to be noted, since Only Closed-End
Funds were floated in the market, the investors disinvested by selling at a loss in the
secondary market.

5
The Supervisory Authority adopted a set of measures to create a transparent and
competitive environment in mutual funds. Some of them were like relaxing investment
restrictions into the market, introduction of open-ended funds, and paving the gateway for
mutual funds to launch pension schemes. The measure was taken to make mutual funds the
key instrument for long-term saving. The more the variety offered, the quantitative will be
investors.

1.2.4 STRUCTURE OF MUTUAL FUNDS IN INDIA

In India, The Mutual Fund Industry is Highly Regulated with a view to imparting Operational
Transparency and protecting the investor's interest. The structure of a mutual fund is
determined by SEBI regulations. The four parties that are required to be involved are a
sponsor, Board of Trustees, an asset management company and a custodian.

Sponsor

A sponsor is a body corporate who establishes a mutual fund. It may be one person acting
alone or together with another corporate body. Additionally, the sponsor is expected to
contribute at least 40% to the net worth of the AMC. However, if any person holds 40% or
more of the net worth of an AMC, he shall be deemed to be a sponsor and will be required to
fulfil the eligibility criteria specified in the mutual fund regulation.

Board of Trustees

A mutual fund house must have an independent Board of Trustees, where two-thirds of the
trustees are independent persons who are not associated with the sponsor in any manner. The
Board of Trustees of the trustee company holds the property of the mutual fund in trust for
the benefit of the unit-holders. They are responsible for protecting the unit-holder's interest.

Asset Management Company

The role of an AMC is highly significant in the mutual fund operation. They are the fund
managers i.e. they invest investors' money in various securities (equity, debt and money
market instruments) after proper research of market conditions and the financial performance
of individual companies and specific securities in the effort to meet or beat average market

6
return and analysis. They also look after the administrative functions of a mutual fund for
which they charge management fee.

Custodian

The mutual fund is required by law to protect their portfolio securities by placing them with a
custodian. Nearly all mutual funds use qualified bank custodians. Only a registered custodian
under the SEBI regulation can act as a custodian to a mutual fund.
Over the years, with the involvement of the RBI and SEBI, the mutual fund industry has
evolved in a big way giving investors an opportunity to make the most of this investment
avenue.

CHAPTER 2

PROFILE OF ADITYA BIRLA SUNLIFE ASSET

MANAGEMENT COMPANY

7
2.1 ADITYA BIRLA GROUP

The Aditya Birla Group is one of India's Largest Business Houses. Global in vision, rooted
in Indian values, the Group is driven by a performance ethic pegged on value creation for its
multiple stakeholders.

The Group's operations span 66 State Of The Art, straddling India, Thailand, Malaysia,
Indonesia, Egypt, Philippines, Canada, Australia and China. A US $28 billion
corporation with a market cap. Of US $31.5 billion and in the League of Fortune 500, the
Aditya Birla Group is anchored by an extraordinary force of 100,000 employees, belonging
to 25 Different Nationalities. Over 50 per cent of its Revenues flow from its operations
across the world.

The Aditya Birla Group is a Dominant Player in all its areas of operations vizAluminum,
Copper, Cement, Viscose Staple Fiber, Carbon Black, Viscose Filament Yarn,
Fertilizers, Insulators, Sponge Iron, Chemicals, Branded Apparels, Insurance, Mutual
Funds, Software and Telecom. The Group has strategic joint ventures with global majors
such as Sun Life (Canada), AT&T (USA), the Tata Group and NGK Insulators (Japan), and
has ventured into the BPO sector with the acquisition of Trans Works, a leading ITES/BPO
company.

2.2 SUN LIFE FINANCIAL

Sun Life Financial is a Leading International Financial Services Organization providing a

diverse range of wealth accumulation and protection products and services to individuals and

8
corporate customers. Chartered in 1865, Sun Life Financial and its partners today have
operations in key markets worldwide, including Canada, the United States, the United
Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.

Figure 2 Aditya birla group/sun life financial

2.3 BIRLA SUN LIFE ASSET MANAGEMENT COMPANY

Aditya Birla Sun Life AMC Limited (formerly known as Birla Sun Life Asset Management
Company Limited), the investment manager of Aditya Birla Sun Life Mutual Fund (formerly
known as Birla Sun Life Mutual Fund), is a joint venture between the Aditya Birla Group and
the Sun Life Financial Inc. of Canada. The joint venture brings together the Aditya Birla
Group's experience in the Indian market and Sun Life's global experience.

Since its inception in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading
Mutual Funds managing assets of a large investor base. The fund offers a range of investment
options, which include diversified and sector specific equity schemes, fund of fund schemes,
hybrid and monthly income funds, a wide range of debt and treasury products and offshore
funds.

2.3.1 Vision
To be the most trusted name in investment and wealth management, to be the preferred
employer in the industry and to be a catalyst for growth and excellence of the asset
management business in India

2.3.2 Mission

 Achieving superior and consistent investment results.

 Creating a conducive environment to hone and retain talent.
 Providing customer delight.
 Institutionalizing system-approach in all aspects of functioning.

9
  Upholding highest standards of ethical values at all times.

2.3.3 Values

 Integrity
 Commitment
 Passion
 Seamlessness
 Speed

2.3.4 Key Personnel

 Donald Stewart (Chairman)

 A Balasubramanian (CEO)
 Ashok Suvarna (COO)
 AbhayPalnitkar (CFO)
 Sanjay Singal(CMO)
 Bhavdeep Bhatt ( Head Products)
 ChandrashekharChavan (Head HRD),
 Rama Vasantharajan (Hd Compliance & Risk)

2.3.5 Track Record

With a proven track record of over 14 years, Birla Sun Life Mutual Fund has been a catalyst
towards the growth of the private sector asset management business.

2.3.6 Investment Philosophy

Birla Sun Life Mutual Fund follows a Long-Term, Fundamental Research Based
Approach to Investment. The approach is to identify companies, which have excellent
credit-worthiness and strong fundamentals. The fundamentals include the quality of the
company's management, sustainability of its business model and its competitive position,
amongst other factors. Birla Sun Life Asset Management Company (BSLAMC) has one of
the largest team of research analysts in the industry, dedicated to tracking down the best

10
companies to invest in. BSLAMC will always strive to provide transparent, ethical and
research-based investments and wealth management services.

2.3.7 Geographical Reach

Today, BSLAMC is present in 111 locations, including 74 branches.

2.3.8 Product Offerings

Birla Sun Life Mutual Fund offers a range of investment options, which include diversified
and sector specific equity schemes, fund-of-fund schemes, hybrid and monthly income funds,
a wide range of debt and treasury products and offshore funds. BSLAMC also provides
Private Wealth Management services.

DIFFERENT SCHEMEs

EQUITY SCHEMES DEBT SCHEMES

Birla Sun Life Advantage Fund Birla Sun Life Short Term Opportunities Fund

Birla Sun Life Dividend Yield Plus Birla Sun Life Dynamic Bond fund

Birla Sun Life Tax Plan Birla Sun Life Gilt Plus- liquid Plan

Birla Sun Life Index Fund Birla Sun Life Gilt Plus-PF Plan

Birla Sun Life India GenNect Fund Birla Sun Life Gilt Plus- Regular Plan

Birla Sun Life India Opportunities Fund Birla Sun Life Income Plus

Birla Sun Life Midcap Fund Birla Sun Life Govt. Securities(Long Term)

Birla Sun Life MNC Fund Birla Sun Life Govt. Securities(Short Term)

Birla Sun Life Income Fund- Half Yearly

Birla Sun Life Basic Industries fund
Dividend

Birla Sun Life Income Fund- Quarterly

Birla Sun Life Buy India Fund
Dividend

Birla Sun Life Equity Fund Birla Sun Life Liquid Plus-Institutional

11
 Monthly Dividend

Birla Sun Life Liquid Plus-Retail Monthly

Birla Sun Life Frontline Equity Fund
Dividend

Birla Sun Life Short Term Fund- Monthly

Birla Sun Life New Millennium fund
Dividend

CHAPTER 3

INTRODUCTION OF NEED OF FINANCIAL ADVISORS FOR

MUTUAL FUND INVESTORS

12
3.1 DISTRIBUTION OF MUTUAL FUNDS

There have been dramatic changes in the manner in which mutual funds are sold abroad.
Before 1980, most funds were vended through a broker, who provided advice, assistance and
ongoing service to the buyer. The unit holder paid for these distribution services through a
front-end sales charge when he bought the fund.

Funds sold through finance professionals such as brokers have since adopted alternatives to
the front-end sales charge. The alternative payment methods typically include a fee based on
assets that may also be in combination with a front-end or back-end sales charge. In many
cases, funds offer several different share classes, all of which invest in the same underlying
portfolio of assets, but each share class may offer shareholders different methods of paying
for broker services. With the expansion in distribution channels, many fund sponsors have
moved from single-channel distribution strategies in favor of multi-channel distribution.

The changes in fund distribution have been accompanied by a significant decrease in the
average cost of distribution services incurred by mutual fund buyers. The decline in
distribution costs reflects a variety of developments, including competition between funds,
expansion of the 401(k) plan market and other markets with low distribution costs, and
increased availability of lower-cost advice to investors.

3.2 ESSENTIALS OF A GOOD DISTRIBUTION SYSTEM

13
Distribution success for mutual funds or any financial product is dependent on certain key
elements. These are:

• Careful product selection

• A Careful Selection of Internal Sales Staff (who will sell)

• Right Targeting of Customers - a Properly Graded Geographical Strategy based on a

Demographic Study will Propel A Smooth, Seamless Customer Penetration and Sales
Volumes

• Proper training - Training is the axle on which the entire distribution revolves. Continuous
training of the sales force is essential in this dynamic environment

• Educating / counseling the customer about products, keeping in mind rising customer
expectations and increasing buyer expertise.

3.3 ROLE OF MUTUAL FUND DISTRIBUTORS

A mutual fund distributor is an entity responsible for marketing and selling the shares of a
mutual fund company. These mutual fund distributors are also known as underwriters for the
fund. The distributor is responsible for the following:

 Creating prospectus for the mutual fund

 Develop extensive marketing campaigns (TV, internet, magazine)
 Sell the shares directly to the public
 Provide a wholesale market to reach a larger number of investors
 Portfolio Advisory
 Timely delivery of A/c Statements & Valuations
 Regularly updating about markets

3.4 ROLE OF VARIOUS CHANNELS

All distribution channels have played a pivotal role in increasing Mutual Fund penetration.

Direct Selling

Direct selling is the least significant element today. Normally, only very big ticket items are
done through this. Alternatively, it derives its inflows mainly from online sales. However,
recent changes in regulation are all set to give this channel a fillip. MFs are gearing up by

14
opening their own offices in more places. Also R&T Agents are expanding their
infrastructure to facilitate this.

Organized Distributors

Organized distributors are the backbone of MF distribution. They have infrastructure and
flexibility to adapt to the need of the hour. They too have realized the importance of going to
smaller centre and are establishing offices in urban and semi-urban locations. This is the
sector which needs to be nurtured to expand.

Banks as Distributors

Mutual fund distribution by banks is emerging a key element. Banks have huge potential to
build and improve the retail segment, which needs to become as strong as its institutional
counterpart. Even among banks there are two major types of distributors. There are those that
handle wealth management of their clients and, on their behalf, manage portfolios wherein
investment in mutual funds is one asset class. Such banks have sophisticated wealth
management practices with qualified staff and well-heeled clients. MNC banks, private banks
and a few niche players (like HSBC, City, ICICI, HDFC, and Kotaketc) are examples. Then
there are banks that use their networks to sell MFs as just another financial service. Most of
the PSBs and other commercial banks including large cooperative banks fall under this
category. For the banks the existing customer base serves as a captive prospective investor
base for marketing mutual funds. They have the advantage of having already won the trust of
the customer. There is no other distribution channel that can have a more effective retail

Independent Financial Advisor

Independent Financial Advisors or IFAs are professionals who offer independent advice on
financial matters to their clients and recommend suitable financial products from the whole of
the market. Typically an Independent Financial Advisor will conduct a detailed survey of
their client„s financial position, preferences and objectives; this is sometimes known as a
‗fact find„. They will then advise appropriate action to meet the client's objectives; and if

15
necessary recommend a suitable financial product to match the client„s needs. Presently the
IFA is the friendly neighborhood guy – one who is very effective in selling the product.
However, he has to manage his costs from the commission he gets. Advisory services are
today given gratis. The scenario is changing and the space in advisory services will undergo a
rapid change in the next few years.

Paying for Advice

Traditionally IFAs have relied upon commission paid by product providers to pay for their
services. In recent years there has been a shift towards fee based advice as this is perceived as
fairer toward the client. However, due to under-capitalization in the advice sector and
consumer reluctance to pay for something they perceived as getting for free, the transition to
fee based advice has been slow and concentrated in the 'high net worth sector.

Commission

Traditionally the most common way to pay for advice is for the IFA to receive a commission
from the product provider. The amount of commission must be disclosed, and some IFAs will
rebate a portion of their commission, particularly in Execution-Only cases. The amount of
commission and whether it is deducted from the amount you actually invest or is included in
the cost of the investment varies from product to product. The client pays for commission
from product charges so it does not represent 'free advice'. As well as the initial commission,
the adviser is likely to be also paid an annual "trail" commission by the product provider. Not
all products offer the same rate of trail commission and therefore a potential conflict of
interest may arise. The products making the highest management charges usually offer the
adviser the highest trail commission.

Fees

Less common than commission, all IFAs must offer the option of working for a fee.
Depending on the size and type of the investment, and the complexity of the advice, this can
work out cheaper than paying commission. Paying a fee for advice is the best way to ensure
that the advice is impartial and there is no incentive for the IFA to recommend a product
solution.

Combination

16
It is also possible to pay a combination of fees and commission. In this situation the IFA will
rebate a proportion of the commission they would have been due in a commission-only
scenario.

17
 CHAPTER 4
LITERATURE REVIEW

18
Gaurav Chhabra, Ankesh Mundra (2014)

The study state various invest options available with the investors. In earlier time because of
non availability of banking system investors use to keep hard cash, gold and silver ornament,
precious stones etc as savings. Now investment is made through bank, insurance policies,
mutual funds, pension funds, collective investment schemes, and investment clubs.

T. N. Murty, P. V. S. H Sastry (2014)

Investor‟s choice with the objective of return optimization is investment in the stock market
instruments or securities. Stock market securities are affected by various internal and external
factors. Study examines the perception of small investment investors towards returns on
investment.

A. N. Paunikar (2014)
Equity Linked Saving Schemes are similar to equity diversification schemes with tax saving
benefit under section 80C. The study aims at understanding scheme- wise benefits under
Equity Linked Saving Schemes for tax saving. Data analysis shows that Equity Linked
Saving Schemes has better returns on investments.

Avinsah N (2014)
The study analyses the investment behavior by examining various invest avenues. Data
analyses reveal that Most of the respondents have selected bank deposit as their first option
for investment followed by real estate. Below 30 years respondents invest more in real estate
whereas above 60 years preferred LIC policies. Full time salaried people are more aware
about different investment avenues.

M. Nandhini, D. Sivasakth (2013)

Mutual Fund is the most likely investment for the common man as it provides an opportunity
to invest in diversified, professionally managed securities at a relatively low cost. Main
objective of investment is wealth accumulation for investor according to this study. Mutual
funds provides moderate rate of returns on investment with minimum risk.

J. Paul Sundar Kirubakaran (2013)

The Study analyses the behavior of an investor. This study brings out the relationship
between risk of investment and protection of investment. Nearly 59 percent respondents stick
to the protection of investment rather risk for good returns. Respondents have protecting
investment as a main priority.

19
Ananth (2013)
This study analyses the investor‟s attitude towards various forms of investment. Investments
are classified as marketable and non marketable, high risk and low risk investments. Share
market is high risk investment with high returns, Commodity market has no risk. Mutual
funds are risk investment with good returns.

S. Umambheswari, M. Ashok Kumar (2013)

When one knows the existence of a new thing is known as awareness. External sources are
responsible for creating, modifying and shaping investment decision of investors. Television,
Radio, Print media, personal consultation for expert, relatives, friends etc is responsible for
decision investment decision.

R. Sreepriya, P. Gurusamy (2013)

Additional income or growth in value can be achieved by investment. Waiting for rewards is
the main characteristic of investment. Investment is allocation monetary resources to get
returns over given period. Surplus funds are invested with different channels by salaried class
people. This research analyses the different investment avenues. 81 percent respondents faced
problem at the time of investment.

Dr Surender Kumar Gupta and Dr. Sandeep Bansal (Jul 2012)

Have done a Comparative Study on Debt Scheme of Mutual Fund of Reliance and Birla
Sunlife. This study provides an overview of the performance of debt scheme of mutual fund
of Reliance, and Birla Sun life with the help of Sharpe Index after calculating Net Asset
Values and Standard Deviation. This study reveals that returns on Debt Schemes are close to
Benchmark return (Crisil Composite Debt Fund Index: 4.34%) and Risk Free Return: 6%
(average adjusted for last five year).

Ravi Vyas (2012)

This study finds the form of investments preferred by investors. Mutual fund investment is a
secured investment with good returns on investments. Data analyses shows that maximum
respondent invest in Gold followed by bank deposits and Insurance schemes. Mutual fund
investments are very limited. For Safety, Liquidity, Reliability, Tax benefits and high returns
Mutual fund has average score among investors.

20
 CHAPTER 5

RESEARCH METHODOLOGY

21
RESEARCH METHODOLOGY

Research Methodology is a Methodology for collecting all sorts of Information and data to
the subjects in the Question. The Objective is to examine all the Issue Involved and
conducted Situational Analysis. The Methodology Included the overall Research design
Sampling Processor and filed work done and Final Analysis Processor. The Methodology
used in the study constant of sample using both Primary data and Secondary data.

5.1 RESEARCH OBJECTIVE

 The Main Objective of this Project is concerned with getting the opinion of people
regarding mutual funds and what they feel about availing the services of financial
advisors.
 I have tried to explore the general opinion about mutual funds. It also covers why/ why
not investors are availing the services of financial advisors.
 Along with it a brief introduction to India‟s largest financial intermediary, BIRLA has
been given and it is shown that how they operate in mutual fund department

5.2 RESEARCH DESIGN

Descriptive studies are used to describe various aspects of the phenomenon. In its
popular format, descriptive research is used to describe characteristics and behaviour of
sample population. so Descriptive Research Design has been used in this Research.

5.3 DATA COLLECTION

Data collection methods can be divided into two categories: secondary methods of data
collection and primary methods of data collection.

5.3.1 Primary Data

Research has been done by primary data collection, and the Primary data will be
collected using survey as a mode of data collection. To conduct surveys separate
sets of structured questionnaire would be prepared for Investors.

5.3.2 Secondary Data

Secondary data are the data collected by a party not related to the research study but
collected these data for some other purpose and at different time in the past. In this
Research Project the facts, figures and statistics on the secondary data has been
through various websites and some special publications of BIRLA.

22
5.4 SAMPLING METHOD

In this Research Project data collected through Non Probability Judgmental Sampling Method
because there are only a restricted number of people in a population who own qualities that a
expects from the target population.

5.5 SAMPLING SIZE

The sample size of my project is limited to 120 only because Samples are used in statistical
testing in population sizes are too large for the test to include all possible members or
observations.

5.6 SAMPLING FRAME

In this Project, a sampling frame is the source derived from Ahmadabad city only. It is a list
of all those within a population who can be sampled, include Investors.

5.7 DATA COLLECTION TOOLS

The Data is collected through Questionnaire Method. In this method a questionnaire is given
to the persons concerned with a request to answer the questions and return the questionnaire.
A questionnaire consists of a number of questions typed in a definite order on a form.

5.8 LIMITATION OF THE STUDY CHAPTER 6

 The Report has been Conduct within a Limited time Frame.

 The Study is Limited to the Investors of Ahmadabad City only.

 The Sample of Size is Limited to 60 only and the Sample Size may not represent

whole Market.

 Sample was Selected Conveniently.

23
 CHAPTER 6
DATA ANALYSIS
AND
INTERPRETATION

24
6.1 Are you invested/ interested to invest in Mutual funds?

Frequency Percent Valid Percent Cumulative

Percent

Valid 1=Yes 120 100.0 100.0 100.0

Table 1

Chart 1

Interpretation

The Main Objective of this Project is concerned with getting the opinion of people regarding
mutual funds and what they feel about availing the services of financial advisors. At the
survey conducted upon 120 people, interested to invest in future. So there is enough scope for
the advisors to convert those participants into investors through their convincing power and
great communication skills.

25
6.2 What is the most important reason for not investing in mutual funds?

Frequency Percent Valid Percent Cumulative

Percent

1=Lack of knowledge about

39 32.5 32.5 32.5
mutual funds

2= Enjoys investing in other

31 25.8 25.8 58.3
options

Valid 3=Its benefits are not enough to

23 19.2 19.2 77.5
drive you for investment

4= No trust over the fund

27 22.5 22.5 100.0
managers

Total 120 100.0 100.0

Table 2

Chart 2

Interpretation

When those people were asked about the reason of not investing in mutual funds, then most
of the people held their ignorance responsible for that. They lacked knowledge and
information about the mutual funds. Whereas just 31 people enjoyed investing in other
option. people expressed no trust over the fund managers‟ decision.

26
6.3 Where do you find yourself as a mutual fund investor?

Frequency Percent Valid Percent Cumulative Percent

1= Totally ignorant 28 23.3 23.3 23.3

2= Partial knowledge of mutual

29 24.2 24.2 47.5
funds

Valid 3= Aware only of any specific

44 36.7 36.7 84.2
scheme in which you invested

4= Fully aware 19 15.8 15.8 100.0

Total 120 100.0 100.0

Table 3

Chart 3

Interpretation

Out of the 120 persons who already have invested in mutual funds are interested to invest,
only 19 investors have sound knowledge of MFs, 44 people are aware of only the schemes in
which they have invested. 29 stands partial knowledge whereas 28 stands nowhere in
knowledge about MFs.

27
6.4 From where you purchase mutual funds?

Frequency Percent Valid Percent Cumulative Percent

1=Directly from the AMCs 28 23.3 23.3 23.3

2=Brokers only 35 29.2 29.2 52.5

Valid 3=Brokers/ sub-brokers 52 43.3 43.3 95.8

4=Other sources 5 4.2 4.2 100.0

Total 120 100.0 100.0

Table 4

Chart 4

Interpretation

As Per Research, the above Table and Graphs shows that 28 participants buy forms directly
from the AMCs, 35 from brokers only, 52 from brokers and sub-brokers even then 5 people
buy from other sources.

28
6.5 Which Feature of the Mutual Funds attracts you most?

Frequency Percent Valid Percent Cumulative Percent

1=Diversification 42 35.0 35.0 35.0

2=Professional management 20 16.7 16.7 51.7

3=Reduction in risk and

29 24.2 24.2 75.8
Valid transaction cost

4=Helps in achieving long

29 24.2 24.2 100.0
term goals

Total 120 100.0 100.0

Table 5

Chart 5

Interpretation

As per the Research the above table and graph shows that 42 investors attracts from
diversification in mutual fund which is 35% whereas 29 investors attracts from Reduction in
risk and transaction cost And also Helps in achieving long term goals.

29
6.6 According to you which are the most suitable stage to invest in
mutual funds?

Frequency Percent Valid Percent Cumulative Percent

1= Young unmarried stage 54 45.0 45.0 45.0

2= Young Married with

28 23.3 23.3 68.3
children stage

Valid 3= Married with older

20 16.7 16.7 85.0
children stage

4= Pre-retirement stage 18 15.0 15.0 100.0

Total 120 100.0 100.0

Table 6

Chart 6

Interpretation

It is observed from the above table and graphs 45% investors are those who invest their
money in mutual funds at young married stage whereas Remaining 68% are those who invest
at young married with children stage and only 15% investors believe invest money at pre-
retirement stage.

30
6.7 Are you availing (take) the services of personal financial advisors?

Frequency Percent Valid Percent Cumulative Percent

1= Yes 77 64.2 64.2 64.2

Valid 2= No 43 35.8 35.8 100.0

Total 120 100.0 100.0

Table 7

Chart 7

Interpretation

As per the Research, the above table and Graph shows that 77 Respondents taking the
services of personal financial advisors which is 64.2% whereas 43 Respondents aren‟t taking
the services of personal financial advisors which is 35.8% Its shown that Majorly Investors
are taking the services of Personal Financial Advisors.

31
6.8 Which expertise of the personal financial advisor is demanded most?

Frequency Percent Valid Cumulative Percent

Percent

1= Portfolio review &

43 35.8 35.8 35.8
investment recommendation

2= Planning to achieve
27 22.5 22.5 58.3
specific financial goals

Valid 3= Managing assets in

31 25.8 25.8 84.2
retirement

4= Access to specialist in areas

19 15.8 15.8 100.0
such as tax planning

Total 120 100.0 100.0

Table 8

Chart 8

Interpretation

It is observed from the above table and graphs that the expertise of the Portfolio review&
Investment recommendation from the personal financial advisor demanded most from 43
investors out of 120 investors.

32
6.9 What is the major reason for using Financial Advisors?

Frequency Percent Valid Percent Cumulative Percent

1= Want help with asset

40 33.3 33.3 33.3
allocation

2= Don‟t have time to make

21 17.5 17.5 50.8
my own investment decision

3= To explain various
Valid 28 23.3 23.3 74.2
investment options

4= Want to make sure I am

investing enough to meet my 31 25.8 25.8 100.0
financial goals

Total 120 100.0 100.0

Table 9

Chart 9

Interpretation

As per the Research, the above table and graphs shows that the major reason for using
financial advisors is to want help with assets allocation which is 33.3%.whereas only 25%
investors using financial advisors want to make sure they are investing enough to meet my
Financial Goals whereas only 17% Investors don‟t have time to make own investment
decision.

33
6.10 What is the major reason for not using financial advisor?

Frequency Percent Valid Percent Cumulative Percent

1= Have access to all resources

21 17.5 17.5 17.5
needed to invest on o

2= Believe advisors are too

47 39.2 39.2 56.7
expensive

Valid 3= Unsure how to find a

19 15.8 15.8 72.5
trustworthy advisor

4= Want to be in control of
33 27.5 27.5 100.0
own investment

Total 120 100.0 100.0

Table 10

Chart 10

Interpretation

It is observed from the above table and graph that Believe advisors are too expensive is the
major reason for not using financial advisor which is 39.2% whereas 33 investors states that
went to be in control of own investment which is 27.5%.

34
6.11 GENDER FREQUENCY

Frequency Percent Valid Percent Cumulative

Percent

1= Male 114 95.0 95.0 95.0

Valid 2= Female 6 5.0 5.0 100.0

Total 120 100.0 100.0

Table 11

Chart 11

Interpretation

The Above Table and Graph represents the Profile of the Respondents in terms of their
Gender Frequency. Its shows that 95% male investors are invest more into the mutual funds
whereas only 5% female who are invest in mutual funds.

35
6.12 AGE FREQUENCY

Frequency Percent Valid Percent Cumulative Percent

1= Below 30 29 24.2 24.2 24.2

2= 31-40 68 56.7 56.7 80.8

Valid 3= 41-50 20 16.7 16.7 97.5

4= Above 50 3 2.5 2.5 100.0

Total 120 100.0 100.0

Table 12

Chart 12

Interpretation

The Above Table and Graph represents the Profile of the Respondents in terms of their age
Frequency There are 68 Investors, 56.7% Who are in the age of 31-40 Years are more invest
in mutual fund. Whereas only 3 Respondents, 2.5% who are in the age of above 50 Years are
rarely invest in mutual fund.

36
6.13 OCCUPATION FREQUENCY

Frequency Percent Valid Percent Cumulative

Percent

1=Self Employed 37 30.8 30.8 30.8

2=Salaried 68 56.7 56.7 87.5

Valid 3= Retired 3 2.5 2.5 90.0

4= Own Profession 12 10.0 10.0 100.0

Total 120 100.0 100.0

Table 13

Chart 13

Interpretation

As per the Research Project, the data collected shows that the maximum number of 68
investors belongs to salaried category which is 56.7% whereas the 37 Investors belongs to
self employed category and only 3 Investors belongs to retired category.

37
6.14 ANNUAL SAVING

Frequency Percent Valid Percent Cumulative

Percent

1= Upto 10000 20 16.7 16.7 16.7

2= 10001 - 25000 37 30.8 30.8 47.5

3= 25001 - 50000 44 36.7 36.7 84.2

Valid
4= 50001 - 100000 16 13.3 13.3 97.5

5= Above 100000 3 2.5 2.5 100.0

Total 120 100.0 100.0

Table 14

Chart 14

Interpretation

It is observed from the above table and graph that the maximum number of 44 Investors has
their annual Savings up to Rs.25001-500000 which is 36.7%. The second highest number of
37 Investors has their annual Savings between Rs.10001 to 25000 which is 30.8%.

38
 CHAPTER 7

TESTING OF HYPOTHESIS

39
7.1 ANOVA TEST

Following table shows the number as well as percentages of people who are availing the
service of personal Financial Advisor for invent in mutual fund and gender. 64.2% of the
people are taking the service of personal Financial Advisor for invent in mutual fund and rest
of 35.8% people not taking the service of personal Financial Advisor for invest in mutual
fund.

NULL HYPOTHESIS

H0: There is a Significance Difference between the People who are taking the service of
personal Financial advisor for invest in mutual fund and Gender.

ALTERNATIVE HYPOTHESIS

H1: There is no Significance Difference between the People who are taking the service of
personal Financial advisor for invest in mutual fund and Gender.

ANOVA
Gender

Sum of df Mean Square F Sig.

Squares

Between Groups .168 1 .168 3.573 .061

Within Groups 5.532 118 .047
Total 5.700 119
Table 15

Interpretation

This is the table that shows the output of the ANOVA analysis and whether there is a
statistically significance difference between our group means. We can see that the
significance value is 0.061 which is Greater than 0.05 and therefore, Null Hypothesis will
accept. So, There is significance Difference between the people who are taking the service of
personal Financial advisor for invest in mutual fund and Gender.

40
 CHAPTER 8
FINDINGS AND RECOMMDATIONS

41
 FINDINGS

 At the survey conducted upon 120 people, interested to invest in future. So there is
enough scope for the advisors to convert those participants into investors through their
convincing power and great communication skills.

 Now, when those people were asked about the reason of not investing in mutual
funds, then most of the people held their ignorance responsible for that. They lacked
knowledge and information about the mutual funds. Whereas just 31 people enjoyed
investing in other option. For 23 people, the benefits around from these investments
were not enough to drive them for investment in MFs and 27 people expressed no
trust over the fund managers‟ decision. Again the financial advisors can tap upon
these people by educating them about mutual funds.

 Out of the 120 persons who already have invested in mutual funds are interested to
invest, only 19 investors have sound knowledge of MFs, 44 people are aware of only
the schemes in which they have invested. 29 stands partial knowledge whereas 28
stands nowhere in knowledge about MFs.

 28 participants buy forms directly from the AMCs, 35 from brokers only, 52 from
brokers and sub-brokers even then 5 people buy from other sources. The brokers and
sub brokers have the maximum reach so they should try to make those investors
aware f the happenings, even the AMCs should follow it.

 When asked about the most attractive feature of MFs, most of them opted for
diversification, followed by reduction in risk, helps in achieving long term goals and
helps in achieving long term goals respectively.

 Most of the investor preferred to invest at a young unmarried stage. Even 28 persons
were ready to invest at a stage of young married with children but person with older
children avoid investing due to increased expenses. But again the number rose to 18 at
pre-retirement stage.

42
 Out of them 77 were already taking the services of financial advisors whereas 43
didn‟t. When asked about the expertise of financial advisors which they liked most?
43 of them favored portfolio review and investment recommendation, followed by
planning to achieve long term goals, managing assets in retirement and access to
specialists in area such as tax planning.

 40 participants regarded asset allocation as the major reason for going for financial
advisors.28 of them needed them to explain them the various investment options
available.31 of them wanted to make sure that they were saving enough to meet their
financial goals. While just 23 gave the reason- lack of time.

 When asked about one reason for not availing the services of financial advisors, about
47 of them pointed the advisors as expensive. 33 of them wished to be in control of
their own assets.19 of them said that they find it difficult to get Trustworthy Advisors,
Whereas 21 of them said they have access to all the necessary resources required.

43
 RECOMMDATIONS

 The Most Vital Problem is of Ignorance. Investors should be made aware of the
benefits. Nobody will invest until and unless he is fully convinced. Investors should
be made to realize that ignorance is no longer and what they are losing by not
investing.

 Mutual funds offer a lot of benefit which no other single option could offer. But most
of the people are not even aware of what actually a mutual fund is? They only see it as
just another investment option. So the advisors should try to change their mindsets.
The advisors should target for more and more young investors. Young investors as
well as persons at the height of their career would like to go for advisors due to lack
of expertise and time.

 The advisors may try to highlight some of the value added benefits of MFs such as tax
benefit, and systematic transfer plan, rebalancing etc. these benefits are not offered by
other options singlehandedly. So these are enough to drive the investors towards
mutual funds.

 Now the most important reason for not availing the services of advisors was spotted
was being expensive. The advisors should try to charge a nominal fee at the
beginning. But if not possible then they could go for offering more services and
benefits at the existing rate. They should also maintain their decency and follow the
code of ethics so that the investors could trust upon them. Thus the advisors should try
to attract more and more persons and turn them into investors and finally their clients.

44
CHAPTER 9

CONCLUSION

45
 CONCLUSION

 Every person does not have all skills. Some are good at someplace but fail at another
place. So we do work in area where we have core competence.

 The Mutual Fund has great scope but it still not as much famous as Stock Market. The
people don‟t know how to invest in it and what is the benefit from it.

 So, the work of financial advisor is too aware the client for the different schemes of
mutual fund for they work. Without the financial advisor the investor cannot easily
convince to invest in mutual fund. Financial advisor are the backbone of the Mutual
Fund Organization in this competition time.

 I also conclude that from this SIP I learn so many things like Self-discipline,
Leadership Quality, regularity at work, innovation on consistent basis, how to survive
in competition, etc.

 This SIP gives me great platform for applying my theoretical knowledge which I
learned in 1st year of MBA.

 At last I say that this SIP is very important for the current as well as future carrier
prospective.

46
 BIBLIOGRAPHY

 https://www.thefinapolis.com/

 https://mutualfund.adityabirlacapital.com/

 https://www.moneycontrol.com/mutual-funds/amc-details/BS

 https://en.wikipedia.org/wiki/Mutual_funds_in_India

 https://www.mutualfundindia.com/

 https://www.valueresearchonline.com/ads/splash.asp?ref=%2F%3F

 https://en.wikipedia.org/wiki/Sun_Life_Financial

 https://www.investopedia.com/terms/f/financial-advisor.asp

 https://www.nseindia.com/

 https://www.morningstar.in/posts/35579/how-fund-distribution-is-evolving-in-

india.aspx

 https://cleartax.in/s/mutual-fund-advisor

 https://shodhgangotri.inflibnet.ac.in/bitstream/123456789/2774/3/03_%20literatur

e%20review.pdf

47
 ANNEXURE

QUESTIONNAIRE

I, Ritu Bhatiya student of S.K. School of Business Management, Hemchandracharya

North Gujarat University, Patan, Master of Business Administration (MBA) Program are
undergoing summer internship project on “Need of financial advisor for Mutual Fund
Investors” The Information provided by you is Only use for Academic Purpose Only.

1) Are you interested to invest in mutual funds?

• Yes [ ] • No [ ]

2) What is the most important reason for not investing in mutual funds?

• Lack of knowledge about mutual funds [ ]

• Enjoys investing in other options [ ]

• Its benefits are not enough to drive you for investment [ ]

• No trust over the fund managers [ ]

3) Where did you find yourself as a mutual fund investor?

• Totally ignorant [ ]

• Partial knowledge of mutual funds [ ]

• Aware only of any specific scheme in which you invested [ ]

• Fully aware [ ]

48
4) From where you purchase mutual funds?

• Directly from the AMCs [ ]

• Brokers only [ ]

• Brokers/ sub-brokers [ ]

• Other sources [ ]

5) Which feature of the mutual funds attracts you most?

• Diversification [ ]

• Professional management [ ]

• Reduction in risk and transaction cost [ ]

• Helps in achieving long term goals [ ]

6) According to you which are the most suitable stage to invest in mutual funds?

• Young unmarried stage [ ]

• Young Married with children stage [ ]

• Married with older children stage [ ]

• Pre-retirement stage [ ]

7) Are you availing (taking) the services of personal financial advisors?

• Yes [ ] • No [ ]

8) Which expertise of the personal financial advisor is demanded most?

• Portfolio review & investment recommendation [ ]

• Planning to achieve specific financial goals [ ]

• Managing assets in retirement [ ]

• Access to specialist in areas such as tax planning [ ]

49
9) What is the major reason for using financial advisors?

• Want help with asset allocation [ ]

• Don‟t have time to make my own investment decision [ ]

• To explain various investment options [ ]

• Want to make sure I am investing enough to meet my financial goals [ ]

10) What is the major reason for not using financial advisor?

• Have access to all resources needed to invest on own [ ]

• Believe advisors are too expensive [ ]

• Unsure how to find a trustworthy advisor [ ]

• Want to be in control of own investment [ ]

Demographic Profile of Respondents

1) Name: ______________________________________________________

2) City or Village: ______________________________________________

3) Contact No.: ________________________________________________

Note: Put “√” in the box of your answer.

4) Gender: (a) Male ( ) (b) Female ( )

5) Age (in years): (a) Below 30 ( ) (c) 41-50 ( )

(b) 31-40 ( ) (d) Above 50 ( )

6) Occupation: (a) Self employed ( ) (c) Retired ( )

(b) Salaried ( ) (d) Own Profession ( )

50
7) Annual Savings: (a) Up to 10,000 ( ) (d) 50,001- 1, 00,000 ( )

(b) 10,001-25000 ( ) (e) Above 1, 00,000 ( )

(c) 25001-50000 ( )

Thank you So much for your response.

51