Why To Invest In Mahindra Finance Fd?

Mahindra Finance – Why To Invest In Company FD?

Presented By Shreyas D Laste Roll No 28

Objective • To study where the people are interested in investing their money. • My main aim in this project was to compare MMFS fixed deposit scheme over the other fixed deposit schemes offered by other financial institutions • To find out how MMFS fixed deposit are better than bank deposits.

Company Profile About MMFS  One of The Leading NBFC  Main Goal & Strategy  Seeking Position

Company Profile Line of Business

Fixed Deposit  Meaning  Interest Income  Effective Return  Pros & Cons  Reasons To Invest In FD’s

Advantages & Disadvantages of FD’s Advantages  Safe Investment  Receiving Regular Income  Longer The Investment Better The Investment Disadvantages  Not Safe As Bank FD’s  Wont Give Returns As Compared To Stock Mkt  No Protection Against Inflation

Research Methodology  Primary Research  Secondary Research Method Used - Questionnaire

Analysis MMFS Fixed Deposit Non Cumulative Half Yearly Scheme

Minimum Amount Rs 25000

Period (Months)

Interest p.a.

12

8.75%

24

9.25%

36

9.75%

Analysis Cumulative Scheme Minimum Period Amount (Months) 12 Rs 1000 18 24 36

Amount Effective Payable Interest p.a. Yield p.a. Rs 10900 9.00% 9.00% Rs 11430 9.25% 9.53% Rs 11990 9.50% 9.95% Rs 13310 10.00% 11.03%

Comparison of MMFS With Private Banks Amount: 10,000 INR Tenure: 1 Years MMFS

AXIS

HDFC Bank

ICICI

Interest type

Compound Interest

Compound Interest

Compound Interest

Compound Interest

Product name

Fixed Deposit

Fixed Deposit

Fixed Deposit

Fixed Deposit

Compounding frequency

Yearly

Yearly

Yearly

Yearly

Interest rate Annual yield Maturity amount Mode of interest paid Deposit Features

9% 9% Rs. 10900 ECS, By Cheque

7.30% 7.50% Rs. 10,750 ECS, By Cheque

6.00% 7.45% Rs. 10,745 ECS, By Cheque

6.25% 7.45% Rs. 10,745 ECS, By Cheque

Recurring , Reinvestment Corporate Rs. 10,000 0.00%

Recurring , Reinvestment Private Bank Rs. 10,000 0.00%

Key Features

Type Provider type Minimum Balance Penalty for early closure Eligibility Eligibility

Resident Indian, HUF, NRI

Reinvestment Private Bank Rs. 10,000 0.00%

Resident Indian, HUF, Resident Indian, HUF, NRI NRI

Recurring , Reinvestment Private Bank Rs. 10,000 1.00% Resident Indian, HUF, NRI

Cumulative Deposit Plan of NBFC’s MMFS Period Min Amt (Rs.) Rate Of Interest Maturity Value (Rs.) Yield(p.a .) Addl to Senior Citizen

TATA Motors Jindal Steel & Power Godrej Industries Ltd

3 year

3 year

3 year

3 year

10000

20000

10000

10000

10.00%

11.00%

11.00%

8.50%

13310

27696

13849

12596

11.03%

12.83%

12.83%

11.83%

0.25%

0.50%

0.25%

0.25%

Graphical Report Interest Rate Interest rate

MMFS

AXIS

HDFC Bank

ICICI

9%

7.30%

6.00%

6.25%

Graphical Report Annual Yield Annual yield

MMFS 9%

AXIS 7.50%

HDFC Bank 7.45%

ICICI 7.45%

Graphical Report Maturity Amount MMFS AXIS Maturity amount (Rs)

10900

10,750

HDFC Bank 10,745

ICICI 10,745

Findings & Observation  The benefit of fixed deposit offered by MMFS is more beneficial than the other private banks under study.  MMFS offers various schemes which gives the investor large options to chose from.  MMFS focuses not only on the urban areas but also on the rural areas which makes them well known all over the country.  The scheme offered by MMFS is not only easy and convenient but also very beneficial.

Conclusion  Most of the business group people invest majority of their earnings into securities and shares rather than fixed return investments plans.  The service class people mostly believe in depositing in fixed deposit schemes rather than investing in other risky investments.  My aim of comparing MMFS fixed deposit scheme over the other fixed deposit schemes offered by other financial institutions is completed to an extent.

Limitations  Some of the websites did not provide updated interest rates which led to many complications and confusions.  Due to the time constraint it was not possible to show other fixed deposit comparisons.  Adequate proofs were not provided by the clients required for opening FD account with MMFS.

Suggestions & Recommendations  MMFS should undertake different promotional strategies in order to create awareness among the public at large.  Television and door to door advertising should be adopted apart from telephonic marketing.

THANK YOU