A Case Study On

THE MUTUAL FUND MARKETING AND SALES STRATEGIES

AT NJ INDIA INVEST

Submitted in partial fulfillment of the requirements for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
Of
Bangalore University

By
KRISHNARADDI B NAVALLI
Reg. No. 15SKCMD074

Under the guidance of

DR. BIKASH RANJAN DEBATA

AIMS INSTITUTE OF HIGHER EDUCATUON

Bangalore University
2015-2017

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 DECLARATION BY THE STUDENT

I hereby declare that CASE STUDY ON THE MUTUAL FUND MARKETING AND
SALES STRATEGIES AT NJ INDIA INVEST is the result of the project work carried out
by me under the guidance of DR.BIKASH in partial fulfillment for the award of Masters
Degree in Business Administration by Bangalore University.

I also declare that this case study is the outcome of my own efforts and that it has not been
submitted to any other university or Institute for the award of any other degree or Diploma or
Certificate.

Place: BANGALORE Name :KRISHNARADDI B NAVALLI

Date: Register Number: 15SKCMD074

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 CERTIFICATE OF ORIGINALITY

Date:

This is to certify that the case study titled THE MUTUAL FUND MARKETING AND
SALES STRATEGIES AT NJ INDIA INVEST is an original work of Mr./Ms.
KRISHNARADDI B NAVALLI; bearing University Register Number 15SKCMD074 and is
being submitted in partial fulfillment for the award of the Masters Degree in Business
Administration of Bangalore University. The report has not been submitted earlier either to
this University /Institution for the fulfillment of the requirement of a course of study. Mr/Ms
KRISHNARADDI B NAVALLI is guided by Mr. /Ms. /Dr.BIKASH who is the Faculty
Guide as per the regulations of Bangalore University.

Signature of Faculty Guide Signature of Director / Principal /HOD

Date Date

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1.3 EXECUTIVE SUMMARY:

Indian mutual fund industry is one of the quickest growing and competitive segments in
financial services. Now a days mutual fund is the ideal investment option for modern
financial scenario. NJ IndiaInvest Pvt. Ltd. Company is one of the leading advisors and
distributors of financial products and services like mutual funds, ETFs, portfolio
management services Capital market-direct equity and real estate. NJ India was established in
the year of 1994 which is headquartered in Surat, Gujarat and presently has 100+ locations in
India and has over 1200+ employees.

Mutual funds are recent phenomenon in India; investors dont have clarity about this mutual
fund concept. Currently mutual funds are not the first choice for investors, with having only
10% of urban Indian households capitalizing in mutual funds. Presently NJ India Company is
facing the problem of marketing of financial products in the market. This case concentrates
mostly on the need of marketing strategies for Mutual Fund in NJ India Invest Company so;
the study Mutual fund marketing and sales strategies at NJ India emphasize to explore
marketing and sales strategies which helps to branding of mutual fund and also the marketing
strategies that are attracting the investors. This study can be a helping tool for NJ India
Company in trading mutual funds.

Key words: marketing, sales strategies, branding, mutual funds

1.4 INTRODUCTION

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A mutual fund is type of Investment Company that collects assets from investors and jointly
invests in bonds, stocks, or money market instruments. Mutual fund is one of the best ways to
invest our savings. In mutual fund there is a pooling of money in one place after that it will
manage by the portfolio system. But people think that mutual fund is purely based on the
market risk so that people far from this mutual fund. First we need to understand the
customers needs and wants and meet those desires. The money related organizations are
fundamental for the better administration of the community and monetary arrangement of any
general public. The financial and standardized savings can be upgraded by right venture to
produce the cash and resources to the economy. Mutual assets have innovative throughout the
years keeping in perspective the adjustments in the monetary and money related frameworks,
and in addition the lawful environment of the nation. As indicated by the prerequisites and
changes in the financial specialists' discernments and desires, new products are driven. The
key region of enthusiasm of Mutual asset marketing specialists is understood the investor's
desires and meeting those desires. Since its initiation in the mid-60s with the arrangement of
UTI Mutual asset in India as an investment road is developing. Past studies exposed that
mutual asset in India is becoming the business is as yet attempting to win the financial
specialists' certainty. The business need to recognize the desire of the investors and meet their
desire severely by beating the difficulties the Mutual asset Industry is confronting.

The mutual fund segment is one of the fastest developing parts in Indian Economy and has
great potential for managed future development. Mutual assets make saving and contributing
simple, available, and affordable for clients. Also, strict government direction and full
disclosure makes the investment more secure. The competency of mutual fund in India with
all issues, difficulties, variables, and recommended methods for meeting the difficulties for
building up the mutual funds with its capability of economic development. Mutual funds are
among the most favored investment instruments. The mutual fund is controlled by an fund
manager who is in charge of the purchasing and offering of securities as per the investment
targets of the fund. The majority of the funds are organized as trusts and supervised by
trustees or executives. These are respondent of the management of the asset, as to serve to the
greatest advantage of financial experts.
Mutual fund Marketing is not the same as promoting of different merchandise like FDs,
insurance they need to deliver great quality at a sensible expense, however the managements
can't make any guarantees about the future execution of the investment since a mutual fund is
not a customer product with consistency of execution. The past execution of the fixed
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deposits and general desires can be told, no execution surety can be given in the event of
mutual fund. Thusly, the Mutual fund is unique in relation to advertising of different
products.
In light of this background this case tries to achieve the following objectives:
1) To study the preferred distribution channels of mutual funds industry,
2) To study methods adopted by mutual funds for the promotion and advertisement in the
company
3) To study the challenges faced by the mutual fund industry related to Marketing strategy.

There are various studies, which examine the execution of mutual funds, conduct of financial
specialists towards mutual fund as Investment Avenue and risk return components.
Advertising is essential issue now a days and service marketing is accepted and fundamental
for all the service business participants. Mutual funds are not far from this truth. So there is a
need to study the marketing strategies involved by mutual funds. Mutual funds are not totally
allowed to pick their material from advertisement or promotion, as SEBI has issued some
compulsory rules for the fund houses.

The mutual fund industry in about the previous five years is obviously illusionary. The
majority of the development in the advantages under administration has come not because of
the expanded retail investment. Because of the higher corporate interests in liquid plans of the
market. The little development that has been accounted for in the value plan is been
conceivable because of the appreciation about the capital markets. Marketing support must be
developed and augmented as early as possible. The regulators and the policy makers need to
find a way to help the marketing support in the mutual fund industry. A strong mutual fund
industry can contribute to strength of the Indian money markets.
Probably the Mutual funds offer lot of advantages to the financial specialists like professional
management, Regulatory oversight, Convenience, minimal charge, Affordability, liquidity
and have part of chances like lot of undiscovered market, yet they are having numerous
difficulties to cope up with for example, no sureties of profits, expenses and commission
charged, charges on benefit, management risk, Regulatory structure and the general
population in India are still unaware and risk unwilling. In light of these difficulties and the
bottlenecks the mutual fund in Industry is threatening, the fund houses require a forceful
mutual fund marketing strategies. Urban investors, as well as a significant number of the
small financial specialists in rural and semi urban places are additionally putting resources
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into financial markets. In addition Investors are more worried about growth and safety as
general profile of financial specialists is evolving. A strong marketing of mutual funds system
is required.

Servicing shows a crucial part in Mutual assets. It is the nature of management that will have
any kind of effect between various common assets, since the normal rate of return stays pretty
much the same for every one of the players. Services can be given by inside through
management or external agencies. The business must understand the financial consultants'
desire from the products and attempt to overcome any issues between the level of desires and
encounters saw.

1.5 BACKGROUND

Mutual fund industry in India

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INTRODUCTION OF MUTUAL FUND
A mutual fund is a pool of cash that is put resources into different securities and
professionally supervised by an investment supervisor. The cash in this manner gathered is
put by the asset supervisor in various sorts of securities relying on the targets of the plan.
These could extend from value to debentures to money market instruments. The income
earned through these investments and the capital acknowledged by the plan is shared by its
unit holder. Hence a mutual fund is the most reasonable investment for the basic man as it
offers a chance to put resources into an expanded.

Mutual fund is similarly called unit trust or open ended trust an organization that puts the
assets of its customers in broadened securities and thus speak to those holding. They make
nonstop offering of new shares at NAV (Net Asset Value) decided day by day by the business
sector estimations of the securities they hold.
The below flow chart defines broadly the working of a Mutual Fund.

The securities & exchange Board of India (mutual fund) Regulation, 1993 defines a mutual
fund as a fund established in the form of trust by a sponsor to increase money by the
trustees through the sale of units for the public, under one or more schemes, for investing in
securities in accordance with these regulations.

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HISTORY OF MUTUAL FUND INDIA
The mutual fund industry in India began in 1963 with the development of Unit Trust of India
from the activity of the legislature of India and Reserve Bank. The historical backdrop of
mutual funds in India can be extensively arranged into five stages
Stage 1: July 1964 November 1987
The Unit Trust of India was the sole player in the business. It was made by an Act of
Parliament in 1963; UTI dispatched its first product, the Unit Scheme 1964, which even
today is the single biggest mutual
fund plan. UTI made various products, for example, month to month wage plan, children's
plan, equity situated plans and seaward supports amid this period. UTI managed assets of
6710 Cr RS.

Stage 2: 1987-1993 (Entrance of Public Sector Funds)

In 1987 public banks and monetary organizations entered the mutual funds industry. SBI
mutual fund was the main non UTI asset to be set up in 1987. Noteworthy movement of
financial specialists from deposits to mutual fund industry happened during this period. Most
funds were developed closed ended funds. Before the end of this period, resources under
UTI's administration developed to RS. 38,247 Cr and op
en division stores oversaw Rs. 8750 Cr.

Stage 3 - 1993-1996: Emergence of Private Funds

In 1993, mutual funds industry was interested in private segment players, both Indian and
outside. SEBIs first arrangement of directions for the business were planned in 1993, and
significantly overhauled in 1996. Critical developments in overhauling, product plan and data
revelation happened in this stage, for the most part started by private division players.

Stage 4 - 1996-99: Growth and SEBI Regulation

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The executions of the new SEBI directions and the rebuilding of the mutual funds industry
prompted quick asset development. Bank mutual funds were re-cast by SEBI suggestion
structure, and UTI went under intentional SEBI supervision.

Stage 5 - 1999 - 2004: Emergence of an expansive and uniform industry

This stage was set apart by extremely fast development in industry, and noteworthy
increment in pieces of the overall industry of private area players. Resources crossed RS.
1,00,000 Cr. The tax cut offered to mutual funds in 1999 made arbitrage open doors for
various institutional players. Bond and liquid assets enrolled the most noteworthy
development in this period, representing almost 60% of the benefits. UTI's offer of the
business dropped 50%.
Stage 6 - from 2004 onwards: Consolidation and Growth
The business has of late seen a spate of mergers and acquisitions, latest ones being the
procurement of plans of Alliance Mutual Fund by Birla Sun Life, Sun F&C Mutual Fund
by Principal and PNB Mutual Fund by Principal. In the meantime, more universal players
keep on entering India, including Fidelity, one of the biggest assets on the world. The stage is
set now for development through combination and passage of new universal and private
division players. As toward the end of March 2006, there were 29 stores

Types of Mutual fund

There are many types of "plans" of mutual funds accessible to the Indian financial specialist.
Be that as it may, these diverse sorts of plans can be gathered into certain characterization for
better understanding. From the financial specialists' point of view, we would take after three
fundamental orders.

Firstly, plans are normally grouped as per their structure as close end or open-end.
Plans can similarly be gathered as far as whether the asset gather from financial specialists
any charges at the season of section or exit or both.
Plans are additionally be delegated being assessment excluded or non-charge absolved.
Under every wide grouping, we may them recognize a few sorts of assets (plans) on the
premise of the structure of their portfolios.

Open-end Vs. close end Funds:

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An open-end asset is one that offers and repurchases units at all times. At the point when the
asset offers units, the speculator purchases them from the asset. At the point when the
financial specialist reclaims the units, the asset repurchases the units from the speculator. A
financial specialist can purchase units or recover units from the asset itself at a cost in view of
the net resource esteem (NAV) per unit.

Close end asset is settled, as it makes a one-time offer of an altered number of units. After the
offer closes, close end assets of not permit financial specialists to purchase or reclaim units
specifically from the assets. In any case, to give the genuinely necessary liquidity to
investors, closeend supports a rundown on a stock trade.

Load and No-heap Funds:

Advertising of another mutual fund plan includes introductory costs. These costs might be
recouped from the financial specialists in various courses at various times. Three valuable
routes in which an asset's advertising costs might be recuperated from the investors are:

Tax-absolved versus Non-Tax-excluded Funds:

For the most part, when an asset puts resources into duty absolved securities, it is known as
an expense excluded reserve. In the U.S.A., for instance, city bonds pay intrigue that is tax-
exempt. After the 1999 Union Government Budget, the majority of the profit pay got from
any of the mutual funds is tax-exempt in the hands of the disseminating salary to investors

Money Market/Liquid Funds:

Fluid Funds are regularly thought to be the most minimal rung in the request of risk level.
Fluid assets put resources into obligation securities of a transient nature, which for the most
part means securities of short of what one-year development.

Gilt Funds:
Gilts are government securities with medium to long haul developments, commonly of more
than one year (under one-year instruments being currency market securities). In India, we
have Government Securities or Gilt Funds that put resources into government paper called
dated securities (not at all like Treasury Bills that full grown in under one year).
Debt Funds (or Income Funds):

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Next in the request of risk level, we have the general classification Debt Funds. Obligation
stores put resources into obligation instruments issued by governments, as well as by
privately owned businesses, banks and money related establishments and different
substances, for example, framework organizations/utilities.

Equity Funds:
As financial specialists move from Debt Fund class to Equity Funds, they confront expanded
risk. In any case, there is an expansive variety of Equity Funds each with a somewhat diverse
risk profile. Financial specialists and their guides need to deal with and select the right value
subsidize that suits their risk longing. In the accompanying segment, we have introduced the
sorts of Equity Funds going from the most astounding risk level to the least level inside this
classification.
Mutual Fund structure

In India mutual funds are governed by the SEBI Regulations, 1996. These regulations make
it compulsory for mutual fund to have a 3-tier structure of Sponsors Trustee -AMC.

Support
Supporter is the individual who acting alone or in blend with another body corporate builds
up a mutual asset. Support must contribute no less than 40% of the total assets of the
Investment Managed and meet the qualification criteria endorsed under the Securities and
Exchange Board of India Regulations, 1996.

Trust

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The Mutual Fund is constituted as a trust as per the arrangements of the Indian Trusts Act,
1882 by the Sponsor. The trust deed is enrolled under the Indian Registration Act, 1908.

Trustee
Trustee is normally an organization (corporate body) or a Board of Trustees (assemblage of
people). The fundamental obligation of the Trustee is to protect the enthusiasm of the unit
holders and between guarantee that the AMC capacities in light of a legitimate concern for
financial specialists and as per the Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996, the arrangements of the Trust Deed and the Offer Documents of the
individual Schemes. No less than 2/third chiefs of the Trustee are free executives who are not
connected with the Sponsor in any way.

Asset Management Company/AMC

The AMC is designated by the Trustee as the Investment Manager of the Mutual Fund. The
AMC is mandatory to be endorsed by the Securities and Exchange Board of India (SEBI) to
go about as an advantage administration organization of the Mutual Fund. No less than half
of the executives of the AMC are autonomous chiefs who are not connected with the Sponsor
in sany way. The AMC must have total assets of no less than 10cr at all times.

Recorder and Transfer Agent

The AMC if so accepted by the Trust Deed designates the Registrar and Transfer Agent to the
Mutual Fund. The Registrar forms the application structure, recovery asks for and dispatches
account explanations to the unit holders.
Overseer
An overseer handles the venture back office of a common asset. Its duties incorporate receipt
and conveyance of securities, accumulation of salary, appropriation of profits, and isolation
of advantages between plans.

Expense Structure
Overseer charges range between 0.15% - 0.20% on the net estimation of the client's holding
for caretaker administrations space is one essential element which has altered cost
components

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ABOUT COMPANY: NJ INDIA INVEST PVT. LTD.

"NJ" stands, N for Neeraj Choksi and J for Jignesh Desai the originator chiefs of NJ India
Invest. Seeing the developing extent of the money related administration segment these two
element young fellows, subsequent to finishing their instruction, began their profession with
this segment. The two chose to hop into the same field and turned out with the dynamic idea
of NJ Capital stock, which is known as NJ India Invest now.
This business was begun in the year 1994; it was the period when privately owned businesses
were entering the field of monetary administrations. This was the time when NJ India Invest
developed as a customer centered need based investment consultative firm. NJ India Invest
has accomplished skill in need based investment of customers.
At NJ India Invest we see Mutual Fund as one of the best venture avenues accessible to fulfill
any sort of assumption need. NJ India Invest has exceptionally very much prepared men
energy to address the issue of the customers and business sector. With exceptionally very
much qualified work power we have picked up skill in dividing Mutual Fund plans and we
even have accomplished ability in doing top to bottom study on different parameters of these
diverse Mutual Fund plans.
NJ India Invest is an organization, which is advanced in this business from recent years as a
customer centered need based investment consultative firm. It has built up its own particular
IT industry known as Fin rationale India Pvt. Ltd. i.e. Innovation to strengthen customers and

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 in addition its representatives in their day by day routine work. The organization has its site
named "www.NJIndia Invest.com" which gives an important backing to customers.

NJ INDIA INVEST FOCUS

At NJ the general population is instruction driven, the association chiefs will help you in
recognizing and comprehension your requirements and help you build up a portfolio
crosswise over various resource classes similar to your necessities. This practice is just
performed at NJ and this is the thing that makes it better than other rivalry in this same field.
There are very much prepared specialists who give an atmosphere on the different resource
classes and clarify you the risk connected with each in a straightforward and clear way to put
you at quiet. Once the venture is arranged and done we don't leave our customer in the
middle of yet we back them by occasional valuation report and consistent data through
bulletins, mailer, and email, street indicates and so forth.
The prime center of the general population at NJ is to help you achieve genuine feelings of
serenity on the investment front.

PRODUCTS & SERVICES

Mutual fund
Asset management
Real estate
Insurance broking
Global wealth advisor
Information technology

The above are the core investment in which we deal and where we have developed our
competency. But mutual funds are where the eyes of NJ are focused the most.

MISSION AND VISION:

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Vision:
To be the frontrunner in our field of business through,
Customer Satisfaction
Commitment to Excellence
Determination to Succeed with strict adherence to compliance
Successful Wealth Creation of our Customers

Mission:
Ensure creation of the wanted value for our customers, associates and employees, through
constant improvement, innovation and commitment to service & quality. To provide
solutions which meet expectations and maintain high professional & ethical standards along
with the adherence to the service commitments.

4.6 COMPETITORS OF NJ INDIA INVEST:

Prudent
Karvy
Bajaj
ICICI Prudential
Birla Sun life
Anand Rathi
India Info line
Bonaza

ORGANIZATION STRUCTURE OF NJ INDIA INVEST

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 1.6 CASE CONTEXT

This case concentrates mostly on the need of marketing strategies for Mutual Fund in NJ
India Invest Company. The main problem of the company is marketing of the financial
products in the market. This case will help to overcome from the challenges which company
facing. Currently company is creating awareness about the mutual funds in semi urban areas
by conducting the awareness programs in the semi urban areas. And also company is
promoting the financial products through conducting the business opportunity program
(BOP). By this program company is going create awareness among the financial advisors.
company is dealing with only through the financial advisors means NJ is recruiting the
financial advisors like LIC agents and tax consultants and train them to how to advise
customer to invest in mutual funds. These are the existing marketing strategies which
company is doing.

Marketing is vital issue now a days and administration advertising is approved and
fundamental for all the administration business members. Mutual funds are not far from this
truth. So there is a need to think about the promoting procedures received by mutual funds.
The focused prospect of the Mutual asset industry has experienced huge advancement
recently. Mutual Fund houses compete with each other either by fulfilling varied financial

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capacities or by presenting a marginal effort or different products. The primary explanation
behind confinement of mutual funds interest in Top areas or Urban areas is the absence of
awareness level in the rural and semi urban areas. Furthermore individuals are not interested
by mutual funds why since they will get regular income from the other investment choices
and mutual funds are liable to market risk.

Probably the mutual asset organizations are putting preferences to the financial specialists
like professional management, Regulatory oversight, Convenience, minimal effort,
Affordability, liquidity and have lot of chances like part of untapped business sector, yet they
are additionally having numerous difficulties to adapt up to, for example, no assurances of
profits, expenses and commission charged, charges on benefit, administration risk,
Regulatory system and the general population in India are still unaware and risk averse. As a
result of these difficulties and the bottlenecks the mutual fund Industry is facing, the fund
houses require a powerful mutual fund promoting strategy.

Mutual fund have not been observed and acknowledged in the rural and semi urban markets.
The role of mutual asset operators or merchants is to educate the financial specialist group.
Recently NJ India is starting distinctive steps through monetary consideration. Along these
lines helping in advancement of venture conduct by spreading awareness among forthcoming
clients in urban and rural regions. Indian Mutual assets have remained focused around a
constrained scope of products. Efforts to create and extend the business sector through
innovative products have been negligible. This might be recognized to the funds inability to
take and to predict the future advancements in the business. In this manner the spread of
Mutual Fund market has been restricted. The absence of product diversification and
confusion in the market has been developed by the absence of advertising activities for
Mutual Funds.

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 1.7 CASE STUDY

This case will help to find out the problems in marketing of mutual funds and solutions to the
same. Presently NJ India Company is facing the problem of marketing of financial products.
Advisors and clients have negative attitude towards mutual fund industry as mutual funds are
volatile and market risk products. Even though companies are trying to reach the customers
needs they fail to understand the need, want and requirements of customers. In rural and semi
urban areas people are not aware of the mutual funds and the benefits of investing in mutual
funds. Hence, there is an opportunity to penetrate in rural and semi-urban market. The
companies shall also brief the potential customers about the various benefits of mutual funds,
one being investment as savings. Currently NJ India is using different means in creating
awareness about the mutual funds in semi urban areas. They conduct several awareness
programs in the semi urban areas. The company has initiated the business opportunity
program (BOP) for the financial advisors. This program contains information about various
NJ financial products, benefits of the products, benefits for the NJ advisors and company
regime. NJ is aggressive in recruiting the financial advisors like LIC agents and tax
consultants and train them to associate with NJ as a stakeholder. This is one of the marketing
strategies, that NJ is positive to enhance the financial advisors and also increase its market
share.

NJs financial products provide with various options to the customers. This includes savings,
easy and systematic investment option, accessibility, and affordability. . Moreover, strict
government regulation and mandatory disclosure from government and financial institutions

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makes the investments safe and secure in India. In addition, strict government regime and full
divulgence of data makes the investments secure in India. Many companies had advertised
the mutual fund products to create enthusiasm amongst the potential customers. One of the
very common advertisements is of BAJAJ mutual fund, where the orderly has been depicted.
There is a paradigm shift in the approach of marketing strategies for promoting financial
products, specially the mutual funds. With the advancement of globalization, privatization
and technological advancement, many developments have occurred with contual changes in
demographic, social, political and channel management. This means an effective channel
with skilled and experienced personal is the crux of the hour for NJ India. In such context,
NJ India needs to recruit high skilled mutual fund advisors, empower them, caters to their
common and individual interests.

NJ India also provided extensive training to support the newly recruited advisors. NJ
Gurukula started in the year 2007; with vide existence in major Indian cities. The vision of
NJ Gurukula is to transform the advisors into competent employees. During the case
investigation, I met with postal agents, retired officials, school teachers, tax consultants and
other insurance agents and clients from different financial service providers and persuade
them to become NJ wealth advisors. After persuading and development of relationship with
them, an invitation was given to participate in the BOP, during the training program, they
have been provided with hand on experience on client management, new client/account
development, Relationship strategies and various marketing strategies.
The case study is related to explanatory type. In the first phase, we have highlighted few of
the interaction took place between the front line employee of NJ India with potential mutual
fund advisors. The same has been depicted below. Later, based on their response an
explanatory approach has been implemented to enhance the existing strategies and derive at
the scope for future effective strategies.

Prospect agent-1:
The NJ employee (being myself) had interacted with LIC agent at Malleshwaram, he is
working for LIC since 5 years. He is found very honest and humble. And also found he is
aware about the mutual fund industry and NJ funds. He knew about the various promotional
tools for marketing of mutual funds in different areas. He suggested some promotional tools
like advertisement through billboards, television, newspapers, awareness programs etc.

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Prospect agent -2:
In Vijayanagar, the NJ employee (being myself) had interacted with a financial advisor, I
started my conversation about mutual fund but he didnt know about the mutual fund and
even he has given negative opinion about the mutual fund. However, I convinced him about
the mutual fund market and various benefits associated with the industry.

Prospect agent -3:

I had conversation with an insurance agent at Yeshawantpur. He knew about the NJ mutual
funds and he is interested to become wealth advisor in the company. After that I convinced
him to attend the BOP program.

Prospect agent -4:

I met with one of the financial advisor at Matthikere. He told that there is no return on
investment, sometimes we will lose invested amount also. It is very risky to advise people to
invest in mutual fund. He has negative opinion on the mutual fund industry.

Prospect agent -5:

One of the clients in Malleshwaram said that in mutual fund there is less commission and
brokerage charges as compare to other financial products such as insurance policies, hence he
doesnt want to deal with mutual funds. He also said that there is no regular income from the
mutual fund business.

Result of exploratory case study:

The result indicated that NJ India is keen in meeting with different segment of potential
advisors and persuade them to become NJ wealth advisors. However, it is also found that
during the initial conversation most of the people are not aware of the mutual fund products
and about the mutual fund industry. Insurance agents also perceive that mutual funds are very
risky. Hence, NJ India need to create awareness programs such as BOP regularly. The below
mentioned infers the awareness of NJ India amongst the sampled population.

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Figure: Awareness of NJ mutual fund

It depicts that only 15% of people know about NJ India funds. Hence there is a wide
opportunity for NJ India in creating awareness among the financial advisors like tax
consultants, insurance agents, chartered accountants etc. So that financial advisors will be
persuaded and later convince the potential customers to invest in mutual funds.

In the below mentioned figure we found that the financial advisors who are interested in
mutual fund. It is found that only 40% of the people are willing to work as advisor for
mutual fund products at NJ India. . Hence there is a prospect to understand why majority of
the people are not interested; this would be very useful to the company.

Advisors who are interested in dealing with NJ mutual funds

Various Advertisement Strategies of Mutual Funds:

Advertisement is the first avenue for the marketing of companys financial products.
Company has to advertise their mutual funds through indoor and outdoor advertisements
company can advertise mutual fund through television, radio, newspaper etc. Nowadays the
Advertising content has changed. Now advertisements are concept selling ads which used to
be selling specific schemes that defined objectives /goals. So an advertising campaign should
have the following elements present:
Creating awareness of the companys product,

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 Comparative advantage of the product,
Future potential of the product,
Past performance of similar products,
Superiority of the fund in relation to others in the area of asset management and
performance servicing.

1. Campaigning of Mutual Fund:

Company can adopt Campaigning of Mutual Fund through Advertisements like Television,
Radio, Print media, Hoardings.
2. Online Blogs: company can promote their product through online blogs. They can
advertise their product on various online sites.

3. Telephonic Calls:
NJ India Company can promote the Mutual Fund with the help of telephone. They have the
phone numbers of existing clients and financial advisors. A well trained person can makes a
call to the agents & customers and promotes the Mutual Fund.

4. By Providing More Commission to Agents:

The agent gets a variable commission from the AMC when they sell the particular Mutual
Funds to customers. The commission varies from 0.5% to 5%. Thus by giving more
commission to the agent, the company can influence the agents to promote their products
only.

5. Putting Canopies: This method is helpful to both distributor and agents in order to
campaign for the product. Company executives can put canopy at a place where they could
interact with maximum number of customers

Sponsorship and exhibit opportunities:

Company can promote through sponsoring a special event or exhibiting their product at this
event. Company promotes their products through by providing sponsorship to the big
business events or sports events. We can plan custom sponsorship packages tailored to
marketing wants, like cocktail reception or a custom designed networking event.

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Increasing the rural footprints:
In rural areas they dont aware about the mutual funds they are very familiar with insurance
and bank fixed deposits. So company need to create awareness about mutual funds in rural
areas. Company needs to encounter success in reaching out to customers at the bottom of the
pyramid. Company have concentrate on increase access to savings and credit in rural and
semi urban areas and have demonstrate the feasibility of providing banking services to
customers through self-help groups

Technology mix:
To overcome from the operational challenges, measures need to be taken to improve the
existing infrastructure and to bring in more efficiency while increasing the scale of operations
This process is not possible without the back-up of a good technology mix. It is also a key
facilitator to break down underpenetrated markets Servicing the customers and guiding them
to achieve financial goals over a period of time will lead the industry towards sustainability
and asset retention

Webinars:

If the company has regular interaction with agents and clients the customer will prefer to buy
mutual funds in the same company. The art of marketing and selling lies in communicating.
And what better way to do it than to use webinars to interact with people. It will generate
more trust in mutual funds. Webinars are a great way to understand customer challenges and
address them. Become a trusted financial advisor to your customer and he will buy from the
company.

Online Reputation Management:

According to Google data, more than 60% of the people look at what is spoken about a brand
online before they make a purchase decision. This data shows how important it is for brands
to manage not only their online reputation, but to proactively engage with people even when
they are not in the purchase mode. How about using Twitter, Facebook and Quora to discover
what people are discussing about on Mutual Funds, and providing a helpful relevant answer
to them? It will win their trust.

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EMAIL MARKETING:
Through Email marketing Company can regular touch with the clients. Company can send
information, announcements, newsletters, short videos on mutual fund concepts series of
videos to bring forth investment planners perceptive. The company should respond to this
changing customer preference and make their emails easily readable on every device
available. Email will help in different elements to educate the investors and webinar
invitations. Email marketing is the cost effective marketing channel and also influences to
purchase decision by consistent and personalized communications.

1.8 Theoretical background

Marketing mix of mutual funds:
1. Product:
Mutual fund is the companys main product; mainly they are concentrating on the mutual
funds. If the company understood the customer needs and when they create confidence
among the clients then only company will achieve the success in marketing products. In
marketing mix product is one of the main component. Company should sell different products
they should not strict with one financial product. Company will sell different mutual funds to
the customers. Mutual asset as an product is the investment, which the financial specialists
hold. The means, which are included in the definition of the plans or product planning, are
conceptualization, drafting, test marketing, endorsement and approval of the plan. Mutual

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asset is an administration there is a little component of physicality. The product offering of
the mutual asset houses ranges from 30 to 300 plans in India as business sector segmentation
is done to take into account all the particular investment requests of the clients. Market
segmentation builds product separation, constraining rivalry to the assets having a place with
the same classification, while store expansion expands market scope It is seen that Mutual
assets in India have been quite successfully in brand policy and brand identification.
2. Place:
Place is the very important to the company the business is depend on the located and targeted
area. So company needs to promote their products in different places. Company should
concentrate not only urban cities and also concentrate on the rural areas.Place or the
advertising channel explains the gatherings of people and organizations, which are included
in channelizing the stream and offer of product and administrations from the supplier to the
possible client.. Direct channels include the development and offer of products specifically
between the supplier and the client as in the conventional branch system, while on account of
round about channels product streams by means of intermediaries and mediators.

3. Promotion:
This tool will help us to how to promote our products in the market, This tool includes
promotional activities like advertisement of products, commission to the agents, publicity,
corporate social activities etc.so promotion help us to promote financial products. As there
are such a large number of players in the Mutual asset Industry, to pick one mutual asset over
alternate turns out to be extremely troublesome for the investors. This has driven the mutual
fund to take after forceful limited time systems. Other than driving National Dailies, finances
frequently promote in business daily papers and magazines.

4. Price:
Price segmentation is the important tool for customer. If the companys product has fewer
prices as compare to other products then obviously customer will buy the products from the
same company. Company should fix reasonable price and brokerage charges. As the cost of
the mutual asset is reliant upon the cost of the fundamental shares. Hence it is the conveyance
cost not the assembling cost in Mutual asset that separates one competitor with another. One
of the upsides of Mutual assets that it reveals its whole expense charged.

5.people:
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In marketing mix concept of people includes workers, targeted customers, competitors etc.
Company should target the customers and based on targeted people company can conduct
promotional activities for the targeted customers because company cannot target whole
population. All workers in the mutual fund house affect the offer of the products. This is valid
for cutting edge a staff that has direct control with clients; they give the connection between
the Mutual asset and the financial specialists. To the financial specialist they speak to the
Mutual fund organization. Achievement of mutual asset is exceptionally needy upon the
relationship of the financial specialists with the workers.

6. Physical evidence: The allocation of greater amount of space in a mutual fund company is
liable to have a positive relationship between the organization and the investors. Physical
evidence also implies the offer records and Mutual asset proclamations that the investors are
given. Keeping in mind the end goal to have a superior association with the investors, the
announcements ought to be consistent, effectively reasonable and every one of the realities
ought to be specified in it.

7. Process: Process implies the procedure through which the investors' cash is put resources
into various plans and the profits are given to them. The procedure ought to be less
unpredictable. The update of plans ought not to be an exceptionally visit assignment as it
prompts increment in expense. The mutual asset organization tries to take actions for
institutionalize the procedure.
1.9 Discussion

Findings:
Majority of the marketing strategies are fail to promote the mutual fund in market
because mutual fund has negative impact on the clients.
Majority of the financial advisors are dealing with only insurance policies and they
dont aware about mutual funds.
financial advisors and customers are believe that mutual fund is risky product
There is lack of interest in Young financial advisors to become an mutual fund
advisors

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Recommendations/Suggested actions:
Company needs to conduct promotional activities which help to build
brand awareness among clients
Company should mainly concentrate on rural and semi urban areas. and
motivate them to invest their savings in mutual funds.
Company should provide their best service to the NJ partner for growth of the
business.
Company should recruit Young financial advisors in this segment because they easy
to accept new technology and change.

1.10 REFLECTION

Learning:
Working on the case study at NJ INDIA INVEST PVT LTD, Bangalore has benefited us as
follows

Application of academic aspects:-

This is a great opportunity for me to apply the academic aspects in real time experience. Up
to till now whatever we have learnt at the institute has come really versatile. Further came to
learn new dimensions in these fields while working on the project with our guide.

Experience of practical workings:-

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 There is a difference between the theoretical and practical life. After 45 days of working at
the internship, we have really come to understand the difference we have really improved our
skill to think practically and judge what can be the practical problem faced by various
institution of finance.

Corporate experience:-
During this internship period of 45 days, we got sample work exposure to corporate work
environment. And Also came to know how various decision are taken out & how various
activities are conducted for marketing point of views.

Improving our communication skills:-

We meet clients and spend time with them; it is a great experience to interact with them
because of their knowledge sharing on the topic. And some are willing to give the required
information for the case study. This process has really given a chance to improve our oral
communication skills.

Relationship with Financial Advisors:-

During my internship period I interacted with many financial advisors and I come to know
how to communicate with strangers. Few financial advisors are very humble and few are
aggressive by this I come to know how to interact with people.

1.11 REFERENCE

Websites:
www.mutualfundindia.com
www.NJfundz.com
http://www.NJgroup.in/index.php

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