Head Of Project

Performance Evaluation for Managerial Personnel at JM Financial, Jaipur By: Mr. Rahul Purswani MBA Part-I (2008-2010) Project report Submitted To Jagannath University in partial fulfillment of MBA program

Rampura, Tehsil Chaksu, Jaipur. Website: www.jagannathuniversity.org

Student’s undertaking

I have been undertaking that this is my original work and have never been submitted elsewhere.

Project Guides: • Faculty- Dr. Kapil Khatter

(By Rahul Purswani)

Acknowledgement The success behind the completion of any good job is the support and the joint team effort of a number of people. There are many persons, whose help & cooperation, made this project successful. Sometimes words fall short to show gratitude, the same happened with me during this project. The immense help and support received from JM Financial Asset Management Private Ltd. overwhelmed me during the project. First and foremost I would like to express gratitude to Mr. Vikas Agarwal (senior relationship manager) and other staffs for their support and guidance in the Project work. I am extremely grateful to my guide, Mr. Ashutosh Shahi (Distribution Head) His continuous interaction and support made it possible for the successful completion of the project. He always had the answers to my queries, be it regarding any concept related to mutual funds. His warmth support, practical guidance and easy

explanations not only regarding the project matters but others too add to the success of my project. I would like to thank all members of JM Financial Asset Management Pvt. Ltd. for the valuable guidance & support. I would like to thanks to my director Dr. R. K. Agarwal, MBA coordinator Ms. Tulsi Goswami and to Dr. kapil Khatter. my faculty guide, for his valuable assistance, keen interest and constant motivation at each step of the project. It would not have been possible for me to reach this stage without his support & guidance. I would also like to thank my parents and my friends for all their time-to-time assistance. Last but not the least I would like to thank God because without his divine grace nothing would have been possible.

Rahul Purswani Abstract If size is the measure of dominance, then the Indian mutual fund industry can now boast on that. With the total Asset Under Management (AUM) increasing from Rs.25 Crores in march 1965 to Rs.4,17,300 Crores by march 2009, according to the Association of Mutual Funds in India (AMFI), the industry’s growth has been nothing but exceptional. It has indeed come a long way from being a single player, single scheme (US-64) industry to having 34 players and more than 480 schemes. What has driven the growth? Numbers of factors have contributed to the surge in the industry’s growth. First and foremost, a buoyant domestic economy coupled with a booming stock market has been one of the major drivers of the growth in recent times particularly in the last five-year. Another significant factor

facilitating this growth has been a conducive regulatory regime, thanks to increased effort by SEBI to improve market surveillance and protect investor’s interests. Further, incentives, such as making dividend tax free in the hands of investors have also provided strong impetus to the growth. This research covers various aspect of mutual funds industry in India. Starting with basic concept of mutual fund and its advantages it would give detail about the growth of mutual fund industry in India, its present scenario. It also throws some light on major mutual fund companies in India, the different types of mutual funds on the basis of structure, investment, load and schemes and also it covers the different phases of growth of mutual fund industry. Then it covers the calculation of NAV, the various investment plans, factor’s that help in calculating the mutual fund performance. In the end mutual fund analysis have been done on the basis of Standard Deviation, Beta, Alpha and R Squared on various schemes like Equity based Funds, Debt based Funds, Income Plans, Gilt Funds & Tax Shield Schemes.

Executive Summary In few years Mutual Fund has emerged as a tool for ensuring one’s financial well being. Mutual Funds have not only contributed to the India growth story but have also helped families tap into the success of Indian Industry. As information and awareness is rising more and more people are enjoying the benefits of investing in mutual funds. The main reason the number of retail mutual fund investors remains small is that nine in ten people with incomes in India do not know that mutual funds exist. But

once people are aware of mutual fund investment opportunities, the number who decide to invest in mutual funds increases to as many as one in five people. The trick for converting a person with no knowledge of mutual funds to a new Mutual Fund customer is to understand which of the potential investors are more likely to buy mutual funds and to use the right arguments in the sales process that customers will accept as important and relevant to their decision. This Project gave me a great learning experience and at the same time it gave me enough scope to implement my analytical ability. The analysis and advice presented in this Project Report is based on market research on the saving and investment practices of the investors and preferences of the investors for investment in Mutual Funds. This Report will help to know about the investors’ Preferences in Mutual Fund means Are they prefer any particular Asset Management Company (AMC), Which type of Product they prefer, Which Option (Growth or Dividend) they prefer or Which Investment Strategy they follow (Systematic Investment Plan or One time Plan). This Project as a whole can be divided into two parts. The first part gives an insight about Mutual Fund and its various aspects, the Company Profile, Objectives of the study, Research Methodology. One can have a brief knowledge about Mutual Fund and its basics through the Project.

The second part of the Project consists of data and its analysis collected through survey done on 200 people. For the collection of Primary data I made a questionnaire and surveyed of 200 people. I also took interview of many People. I visited other AMCs in Jaipur

to get some knowledge related to my topic. I studied about the products and strategies of other AMCs in Jaipur to know why people prefer to invest in those AMCs. This Project covers the topic “Comparative analysis of different mutual funds”. The data collected has been well organized and presented. I hope the research findings and conclusion will be of use.

Table of Content Student’s undertaking

Acknowledgement Abstract Executive Summary 1.

2.

3.

Objectives 1 Research Methodology 2 Chapter – 1 Introduction 4 a. b. c.

Concept History of Indian mutual funds 10 Major mutual fund Companies of India

5

13 d.

Mutual Fund Operation

20 e.

Organization of a mutual fund

21 f.

Types of a mutual fund schemes

22 g.

Advertisement of mutual fund

27 h. i.

Distribution channel Offer Document

34 j.

Regulation regarding cut-off Timings

37 k.

NAV (Net Asset Value)

38

30

l.

Investment plans

39 m.

Asset allocation principle

45 n.

Comparison of investment product

47 o.

Recent trends in mutual fund industry

54 p.

Impact on the mutual fund industry of the Union Budget

57 q.

Decision of SEBI for mutual fund industry

58

4.

Chapter – 2 Company Profile 59 a.

Vision

60 b. c.

Profile Corporate profile

60

61 d. e.

Awards CSR (Corporate Social Responsibility)

62

65

5.

f.

Market Share

66

g.

SWOT analysis

67

Chapter – 3 Main chapter (Comparative Analysis) 68 a.

Funds which have been compared

69

b. c.

Risk Measurement of mutual fund performance

72

73 d.

6.

7.

8.

Comparison of the schemes on the basis of Risk & Return 77

Chapter – 4 Analysis & Findings 89 Chapter – 5 Conclusion & Recommendations 108 Appendices 111 a. Questionnaire 112 b. List of Tables 116 c. Glossary 117 d.

Bibliography

118