NEW DELHI INSTITUTE OF MANAGEMENT

SUMMER TRAINING REPORT ON

MUTUAL FUND INDUSTRY

For

MASTER CAPITAL SERVICES LTD.

By

MOHIT CHAUHAN393

In partial fulfillment for the award ofPost Graduate Diploma In Management

2013-15

1

New Delhi Institute of Management50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062E-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)

2

CERTIFICATE

3

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

4

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 Mentor’s Comments :

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

5

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

6

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.

The main constraint faced was the low awareness among people regarding the

mutual funds investments. People’s long build perception of losing money in share

market. Also the contacts provided were of trading customers of Master Capital

7

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.

Industry Overview

8

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

9

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.

10

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

11

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.

12

Growth in AUM

FY10 FY11 FY12 FY130

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

7,486 7,0376,709

8,232

YEARS

INR

bn

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

13

Major Players and their shares

HDFC Mutual fund13% Reliance Mutual

fund12%

ICICI Mutual fund10%

Birla Sun Life Mu-tual fund

9%

UTI Mutual fund9%

SBI Mutual fund7%

Franklin Temple-ton Mutual fund

5%

IDFC Mutual fund5%

Kotak Mahindra Mutual Fund

4%

DSP Blackrock Mutual fund

4%

Axis Mutual fund2%

Others20%

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

14

Market Share: Folio-Wise

UTI Reliance HDFC SBI DSP Blackrock

ICICI Birla Sun Life

0

2000000

4000000

6000000

8000000

10000000

12000000

9557700

54633674508477 4117882

2892620 26779542019704

Mutual Fund Companies

Num

ber o

f Fol

ios

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

15

AUM Composition by Product Category

FY11 FY12 FY130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

13% 14% 13%1% 1% 1%

50% 50% 57%

33% 31% 25%

3% 3% 2%1% 2% 2%

Gold ETFsBalancedEquity OrientedDebt OrientedGiltLiquid/ Money Market

Financial Year

Perc

enta

ge

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

16

AUM Composition by Geography

Mumbai42.04%

Delhi15.32%

Banagalore5.87%

Kolkata5.07%

Chennai4.62%

Others27.08%

Percentage of AUM

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

17

Category-Wise AUM

Corporates81.30%

Banks/FIs6.33%

FIIs0.66%

High Networth Individ-uals

9.98%

Retails1.73%

Liquid/ Money Market Schemes

Corporates58.43%

Banks/FIs0.68%

FIIs0.12%

High Networth Indi-viduals35.26%

Retails5.50%

Gilt Schemes

18

Corporates57.12%

Banks/FIs0.92%

FIIs0.58%

High Networth Indi-viduals34.72%

Retails6.66%

Debt Oriented Schemes

Corporates9.93% Banks/FIs

0.65%

FIIs1.64%

High Networth In-dividuals21.26%

Retails66.51%

Equity Oriented Schemes

19

Corporates10.99% Banks/FIs

0.18%FIIs

0.02%

High Networth Indi-viduals32.99%

Retails55.83%

Balanced Schemes

Corporates48.65%

Banks/FIs0.05%

FIIs0.04%

High Networth Indi-viduals15.91%

Retails35.35%

Gold ETF Schemes

20

Corporates23.74%

Banks/FIs39.92%

FIIs11.98%

High Networth Indi-viduals13.54%

Retails10.81%

ETFs(Other than Gold)

Corporates19.07%

Banks/FIs0.02%

High Networth Individuals56.80%

Retails24.11%

Fund Of Funds Investing Overseas

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

21

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. Long‐term 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. Long‐term 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 long‐term 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.

22

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

23

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.

24

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.

25

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%

26

Company Locations

Head Office Ludhiana

Zonal Offices New Delhi

Mumbai

Chandigarh

Regional Offices Mumbai

Ahmedabad

Allahabad

Bhuvaneshwar

Indore

Jaipur

Hyderabad

Luckhnow

Kolkata

27

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.  

Company Results

28

Net worth

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-130

2000

4000

6000

8000

10000

12000

14000

16000

3488.35

4868.7

6858.378140.89

10461.03

14244.4915076.45

Year

Net

Wor

th in

Lacs

29

Turnover

Mar '09 Mar '10 Mar '11 Mar '12 Mar '130

10

20

30

40

50

60

70

80

90

100

46.13

61.42

77.26

92.84 92.65

Year

Turn

over

in R

s Cro

res

30

Net Profit

Mar '09 Mar '10 Mar '11 Mar '12 Mar '130

2

4

6

8

10

12

14

8.79

13.27 13.06

11.66

10.03

Year

Net

Pro

fit in

Rs C

rore

s

31

Earnings Per share

2009 2010 2011 2012 20130

0.5

1

1.5

2

2.5

3

2.18

1.66

2.47

2.19 2.27

Year

Earn

ings

Per

Sha

re(E

PS)

32

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.

33

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

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

34

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 customer’s 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 customer’s 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.

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

35

Public Liability Insurance

Group Mediclaim Insurance

b. Life Insurance Products

Unit Linked Insurance Plans

Endowment Plans

Term Plans

Money Back

Child Plans

Retirement Solutions

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. 

36

Mutual Fund Screeners: The customers can look for top funds based on category

performance and category rankings. Also can analyze each fund’s 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 child’s future expenses at college

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

37

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

 

 

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.

38

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.

39

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.

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.

40

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.

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.

41

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 customer’s premises and was able to get two more interested

customers.

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.

42

Visited customer premises for scheme documentation work.

Key Observations and Findings

A majority of people are not aware of the mutual funds and don’t know how

it works.

Many feel hesitated in investing in mutual funds as they believe it is too

risky.

Most of the people don’t know how to invest in mutual funds.

Mutual Fund investment is most popular in Mumbai city of country India.

43

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.

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.

44

Mailed the Factsheets and comparison charts of various schemes to the

interested persons.

Limitations/ Constrained Faced

The main constraint faced was the low awareness among people regarding

the mutual funds investments.

People’s 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.

45

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.

Recommendations and Suggestions

As most of the people don’t 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

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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 customer’s

needs and risk taking capacity and should not sell the schemes for their own

benefits.

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.

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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.

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

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