A

Project Report

On

AT

Mehasana

Under the Guidance of (in Company)

Mr. Ronit raval

Under the Guidance of (College)

Arprita vaghela

Institution

Submitted to;

Gujarat Technological University - Ahmedabad

Prepared By:

SHAHIN MANSURI

M.B.A. Sem. II, Seat No 13896

J U L Y 2 0 1 0- 1 1
 Dr.Jivraj Mehta Vidhya Vihar Campus Lathi road – Amreli

Ph: (02792) 223509 fax: (02792) 223509

E-mail: kkpimsa@yahoo.com

Web: kkpimsamreli.com

DIRECTOR’S RECOMMENDATION

TO,

The Registrar

Gujarat Technological University

Ahmedabad

Subject: MBA Summer Training Project Report

Respected Sir,

I am recommending the Summer Training Project entitled-“ Scope for mutual

funds advisory business in India.” prepared by SHAHIN MANSURI at NJ FUNDZ

NETWORK. MEHASANA. As the partial fulfillment of the University requirement for
the award of MBA degree of Gujarat Technology University –Ahmedabad.

Date: - Thanking You,

Place: - Amreli Yours Faithfully

Director
 STUDENT DECLARATION

I the undersigned student Mansuri shahinmahammad.B of K. K. Parekh

Institute of Management Studies – Amreli M.B.A. II Semester, hereby declare
that, the project on –scope of for mutual funds advisory business in India -is
my own work.

In the partial fulfillment of Master Degree of Business Administration, I had

undergone project work at NJFUNDZ NETWORK in MEHASANA under the
guidance of Arprita Vaghela K. K. Parekh Institute of Management Studies –
Amreli and submitted to Gujarat Technological University, Ahmedabad.

This project work is my original work and has not been submitted to any where
earlier.
 Preface

India is one of the fastest growing economies in the world due to which the income level
of people in India is increasing and along with it the savings and investments are also
growing. Due to liberalization and deregulation, which was announced in New Industrial
Policy 1991, has dismantled barriers in the financial market, allowed the entry of new
players and created environment for efficient allocation of resources. One of the
important industries in emerging financial market is the mutual fund industry.

The mutual fund industry has played a significant role in the development of capital
market, growth of corporate sectors and financial intermediation. As mutual fund
industry in India is relatively new, the level of awareness among the people is less but
with the increase in level of awareness, the mutual fund industry is also growing. The
government has also announced the regulatory measures for the growth of mutual fund
industry and protection of investors in mutual funds. Here we have attempted to study
scope of mutual fund advisory business in India and investment behavior of consumers.
 Acknowledgment

We are indebted to senior executive RONIT RAVAL of NJ INDIA LTD. for providing
an opportunity of preparing “Scope for mutual funds advisory business in India.” and
allowing us to use the resources of the institution during this project.

We are extremely thankful to our Project Guide Prof. ARPITA VAGHELA for her
precious guidance regarding the preparation format of the project report. Her guidance
has proved to be very useful and without which the preparation of this report might not
had been possible.

We are also thankful to the other faculty members of the K.K.I.M.S in amreli for
extending their valuable support for this project.

Finally, we would also like to thank our family members, who are always a source for
inspiration for us, for showing their understanding, patience and for all their possible help
for the preparation of this project.
 Executive summary

The Indian mutual fund industry came into existence with the establishment of Unit Trust
of India in 1964. Unit Trust of India was not efficient enough to expand the mutual fund
market. In late 1980’s nationalized bank sponsored mutual funds came into existence
which helped mutual fund industry to expand its market.

The private sector mutual fund entered the industry during early 1990’s with greater
variety of products and better services. They introduced different kinds of products
satisfying the needs of the different classes of investors.

The major limitation of mutual fund industry in India is the lack of awareness among the
investors. Most of the investors are not at all aware about what is mutual fund? How it
functions? How money collected from investors are invested, etc against which in
America more than eighty million people or one half of the households invest in mutual
funds. That means that, in the United States alone, trillions of dollars are invested in
mutual funds.

Mutual fund industry depends on gaining the trust of investors. Once the investors trust is
gained it is easy to convince them to invest in mutual funds. The investors are attracted
based on the performance of the mutual funds rather than winning the trust of investors.
The performance of mutual funds is variable, sometimes it may go up and sometimes it
may come down. It is also not sure that the past performance will be repeated in the
current period. Still the investors are attracted based on the past performance of mutual
funds. The Indian mutual fund industry should come out of this limitation. They should
try to attract the investors by gaining their trust rather than showing the past performance
of mutual fund

Most of the investors are not aware about the professional fund managers of the mutual
funds. They invest in the mutual funds based of the returns which mutual fund yields.
The investors are not aware that the fund managers of mutual funds do systematic
analysis of the companies in which they are going to invest; they give suggestions to the
companies which are not performing well. Therefore the mutual fund industry should try
to promote about their professional fund managers, which would help the industry to
attract the investors and expand its market.

The mutual fund industry in India is still in the developing stage. Many of the mutual
fund companies are presently functioning in the urban area, but in country like India
where the substantial part of total population lives in the rural area, also the mutual fund
companies needs to expand their business in the unexplored rural areas which will lead to
the substantial increase in the total amount which is invested in mutual funds

The basic functioning of mutual fund depends on the equity and debt market. The
portfolio of different mutual funds companies constitutes of the investments in any of
these markets depending upon the type and scheme of mutual fund.

Whenever any of the above mentioned market goes down the respective fund is affected.
For example if the market has gone down by 30% but the mutual fund’s NAV has gone
down only by 10% than the investor should understand that the fund manager of such
scheme is really efficient. But rather than having such a long view the investors thought
is limited to short run and they think that the scheme in which they have invested is not
good and they withdraw their money by incurring losses which is one of the major
limitation of the investors investing in mutual funds, which the mutual fund company
must try to overcome by increasing the awareness regarding the basic functioning of
mutual funds and making the customers aware regarding the difference between the
absolute and relative returns.
 INDEX

Sr no. Subject Page no.

1 Industry Profile
2 Company Profile

3 Study of four functional area

3.1 Marketing Department
3.2 Operational Department
3.3 Financial Department

3.4 Human resource Department

4 Research methodology

4.1 Introduction

4.2 Define the problem

4.3 Objectives of the study
4.4 Rational of the study
4.5 Limitations of the study
4.6
Data collection

4.7 Data Analysis & interpretation

4.8 Finding

4.9 Suggestions
4.10 Conclusion
4.11 Bibliography